MIRA
INFORM REPORT
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Report Date : |
23.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
ZVI PRIEL |
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Registered Office : |
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Country : |
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Legal Form : |
Sole Proprietorship |
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Line of Business : |
Dealer in Diamonds. |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Status : |
Small Company |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & Address
ZVI PRIEL
Telephone 972
54 397 71 82 (cellular)
P.O. Box 3263
Diamond Exchange
RAMAT GAN 52132
ISRAEL
HISTORY
& LEGAL FORMATION
A sole
proprietorship (date of establishment not forthcoming).
Operating under
License Dealer No. 70198031. Listed at the Tax Authorities files under the name
“PRIEL ZVI”.
OWNERSHIP
Zvi Priel.
GENERAL
MANAGER
Zvi Priel, born 1943.
BUSINESS
Dealer in diamonds.
Operating from the
Diamond Exchange halls, 52 Bezalel Street, Ramat Gan.
Subject does not
maintain a permanent office, and according to the Diamond Exchange secretary
subject does not have a fixed telephone/fax line.
Number of
employees, if any, not forthcoming.
MEANS
Financial data not forthcoming.
ANNUAL
SALES
Sales figures not forthcoming.
BANKERS
Bank data not forthcoming.
CHARACTER AND REPUTATION
We found nothing
detrimental on subject and its owner.
Mr. Zvi Priel, subject's owner, refused
categorically to disclose any data on his business.
This appears to be
a relatively very small business.
Local diamond
companies have been facing some depression in business in general in recent
period due to the recession in the U.S. markets, which worsened with the
collapse in the financial markets in the U.S.A. and the world in
September-October 2008. The American market has been the No. 1 export market
and the crisis in the U.S. market affects directly many Israeli diamond
companies, as purchasing has gone down dramatically. There have been reports on
delays in payments from clients, causing a cash flow problem to some local
companies.
Yet, in the first
9 months of 2008 there was an overall increase trend in all money parameters of
import and export: export of cut diamonds (net) from Israel rose by 2.7%
comparing to parallel period in 2007, reaching US$ 5.48 billion. However carat
value fell by 16%, as in all other sections. Export of rough diamonds (net)
from Israel also increased by 20.3% to US$ 3.02 billion (1.3% fall in carat
value).
Import of rough
diamonds (net) rose 8.2% in the first 9 months of 2008 (from 2007) to US$ 3.96
billion (though carat value fell by 6%), while import of cut diamonds (net)
also increased in 2008 by 16.2% reaching US$ 3.51 billion (carat value fell by
3.53%).
Year 2007 marked a
record in the export of cut diamonds from Israel, with net sales for export of
US$ 7.076 billion, 7% rise from 2006 (US$ 6.611 billion). Exports (net) of
rough diamonds were US$ 3.386 billion, a 25.5% increase from 2006 (US$ 2.701
billion, which was a 23.2% decrease from 2005).
Import of rough diamonds (net) rose 8% in 2007 by (from 2006) to
US$ 5.084 billion, while import of cut diamonds (net) also increased in 2007 by
13.3% reaching US$ 4.558 billion.
The USA is the
main market for Israel’s export of cut diamonds, although its portion has been
decreasing in view of the economic situation – the export rate was 44% during
2008, comparing to 60%-65% in past years. The secondary markets are Hong Kong
(24%), Belgium (9%), U.K (3%), followed by China, Switzerland and India.
According to the
President of the Israeli Diamonds Association, local banks are expected to
contract credit given to local diamond firms, in view of the global financial
crisis. However, he believes the local diamond sector is healthy, as trade in
the sector rolls annual turnover of US$ 25 billion whereas total debt to the
banks stands on US$ 2.5 billion.
SUMMARY
Considering the refusal
to disclose any data, dealing are recommended on a secure basis.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.79 |
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UK Pound |
1 |
Rs.81.27 |
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Euro |
1 |
Rs.63.91 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)