MIRA
INFORM REPORT
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Report Date : |
30.08.2011 |
IDENTIFICATION DETAILS
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Name : |
MARK ANDY INC |
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Registered Office : |
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Country : |
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Year of Establishment : |
1946 |
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Legal Form : |
Private Subsidiary |
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Line of Business : |
Manufacturer of Narrow Web Printing Equipment. |
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 |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
$10,000 (USD) |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
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Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name and address
MARK ANDY INC
Tel: 636-532-4433
Fax:636-530-9089
Employees: 350
Company Type: Private Subsidiary
Corporate Family: 17 Companies
Ultimate Parent: Morgenthaler Partners
Incorporation Date: 1946
Financials in: USD (mil)
Reporting Currency: US Dollar
Annual Sales: 2.5
Total Assets: NA
Business Description
Mark Andy, based in
industry
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Industry |
Office Supplies |
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ANZSIC 2006: |
3736 - Paper Product Wholesaling |
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NACE 2002: |
5156 - Wholesale of other intermediate products |
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NAICS 2002: |
42411 - Printing and Writing Paper Merchant Wholesalers |
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5156 - Wholesale of other intermediate products |
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US SIC 1987: |
5111 - Printing and Writing Paper |
Key Executives
(Emails Available)
Name Title
Paul Brauss Chief Executive Officer
James H. Lambright Chairman & President
Mike Howard Chief Financial Officer
Mary Gavach Marketing Project Coordinator
David Loop Information Technology
News
Title
Research and Markets: The Market for Printed PV Is Expected
To Grow From $0.23 Billion in 2008 to $3.93 Billion in 2015 at an Estimated
CAGR Of 52.1% from 2010 To 2015
Business Wire (715 Words)
28-Mar-2011
ABI Number: 001646363
1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1
2 - Balance Sheet Item Exchange Rate:
USD 1 = USD 1
Incorporation Date: 1946
Company Type: Private
Subsidiary
Quoted Status: Not Quoted
Chief Executive Officer: Paul Brauss
Sales USD(mil): 2.5
Assets USD(mil): NA
Employees: 350
KeyIDSM: 45218564
Industry: Office Supplies
Contents
ANZSIC 2006 Codes:
3736 - Paper
Product Wholesaling
NACE 2002 Codes:
5156 - Wholesale
of other intermediate products
NAICS 2002 Codes:
42411 - Printing
and Writing Paper Merchant Wholesalers
US SIC 1987:
5111 - Printing
and Writing Paper
5156 - Wholesale
of other intermediate products
Establishments primarily engaged in manufacturing machinery and equipment used by the printing and bookbinding trades.
More Business Descriptions
Mark Andy, based in 
Manufacturer of lexographic and narrow web printers. Products are sold to multiple industries.
Product Code Product Description
COM-OU-PS Web flexographic printers - Proglide MSP, Mark Andy
Financials in: USD(mil) 1 Year Growth
Revenue: 2.5 NA
Key Corporate Relationships
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Bank: |
Agricredit Acceptance LLC, Cincinnati Belting & Transmission, Consumer Credit Inc, Kubota Tractor Corp, Matco Tools Inc, RBC Bank, Sheffield Financial, Suntrust Bank, Tower Loan, Mazak Corp, Muleshoe State Bank, Nashua Bank, Palm Loan Services, R S Electronics, USA Discounters Limited, Madison Capital Funding LLC, 21st Mortgage Corp, Carlson Systems LLC, GMAC Commercial Finance LLC, Greater Bay Capital, Internatl Financial Services, John Deere Credit Co, EMJ Metals, Fidelity Bank |
ABI Number: 001646363
Location
18081 Chesterfield Airport Rd,
Phone:636-532-4433Fax:636-530-9089
ABI©:001646363
Employees:300 Facility
Size(ft2):40,000+Facility
Own/Lease: Own Business
Type: Private Location
Type: Subsidiary Corp.
Affiliation: American Industrial Partners
RECOMMENDED CREDIT LIMIT * $10,000 (USD)
Primary Line of Business
SIC:3555-02 - Printing Equipment-Manufacturers
NAICS:333293 - Printing Machinery & Equip Mfg
Secondary Lines of
Business:
NAICS:
541613 - Marketing Consulting Svcs333518 - Other Metalworking Machinery Mfg
333291 - Paper Industry Machinery Mfg
333999 - Misc General Purpose Machinery Mfg
811310 - Commercial Machinery Repair & Maintenance
423990 - All Other Durable Goods Merchant Whols
SICs:
3549-98 - Metalworking Machinery NEC (Mfrs)
3554-01 - Paper Mill Machinery-Manufacturers
3569-98 - General Ind Machinery/Equip NEC (Mfrs)
5099-05 - Importers (Whls)5099-01 - Exporters (Whls)
7699-21 - Printing Equipment-Repairing
8742-13 - Marketing Programs & Services
Profile
Links
Similar Businesses in the Area
External
Links
Decatur Blue Printer Inc
Industrial Roller Co
Chambers Equipment Services Inc
Oldham Group
2056 N Republic St
SIM Products
J G Technologies
4573 S
High Ridge
Fix Your Own Bindery
Mid America Graphics
* Similar Businesses are defined as the closest businesses sharing the same six-digit primary SIC code ( 3555-02 - Printing Equipment-Manufacturers) regardless of size.
Stone Trends LLC
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Cass Commercial Bank
702 Spirit 40 Park Dr Ste: 100
Customer Direct
714 Spirit 40 Park Dr Ste: 100
Corporate
Structure News
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Company
Name |
Company
Type |
Location |
Country |
Industry |
Sales |
Employees |
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Parent |
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Miscellaneous Financial Services |
|
40 |
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Subsidiary |
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Textiles - Non Apparel |
75.0 |
400 |
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Branch |
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Apparel and Accessories |
24.2 |
135 |
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Subsidiary |
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Auto and Truck Parts |
45.1 |
97 |
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Subsidiary |
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Office Supplies |
2.5 |
350 |
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Branch |
|
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Miscellaneous Capital Goods |
36.4 |
130 |
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Subsidiary |
|
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Miscellaneous Capital Goods |
83.3 |
160 |
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Subsidiary |
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Software and Programming |
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148 |
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Subsidiary |
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Communications Services |
82.0 |
100 |
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Subsidiary |
|
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Retail (Technology) |
24.2 |
75 |
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|
Subsidiary |
|
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Auto and Truck Parts |
75.0 |
100 |
|
|
Branch |
|
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Auto and Truck Parts |
88.5 |
186 |
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|
Subsidiary |
|
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Oil Well Services and Equipment |
200.0 |
75 |
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Branch |
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Construction Services |
50.0 |
200 |
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Branch |
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Iron and Steel |
23.4 |
100 |
Executives Report
Board of Directors
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Chairman & President |
Chairman |
Executives
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Chief Executive Officer |
Chief Executive Officer |
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Chairman & President |
President |
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Chief Financial Officer |
Finance Executive |
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Accounts Payable |
Accounting Executive |
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Vice President-Customer Support |
Customer Service Executive |
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Latin American Sales Manager |
Sales Executive |
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Manager-Sales, Finishing Equipment |
Sales Executive |
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Vice President-Sales & Marketing |
Sales Executive |
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Manager-Regional Sales |
Sales Executive |
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Director-Global Marketing |
International Executive |
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Marketing Project Coordinator |
Marketing Executive |
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Information Technology |
Information Executive |
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Process Engineer |
Engineering/Technical Executive |
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Vice President-Engineering |
Engineering/Technical Executive |
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Mechanical Engineer, Project Manager |
Engineering/Technical Executive |
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Applications Engineer |
Engineering/Technical Executive |
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Director Engineering |
Engineering/Technical Executive |
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Manufacturing Engineer |
Engineering/Technical Executive |
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Director-Product Management |
Product Management Executive |
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Manager-Parts |
Manufacturing Executive |
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Vice President-Manufacturing |
Manufacturing Executive |
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Plant Manager |
Facilities Executive |
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Director-Purchasing |
Purchasing Executive |
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Project Leader |
Other |
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Cad Designer |
Other |
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Cad Designer |
Other |
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Cad Designer |
Other |
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Retrofit Department Manager |
Other |
Press Release
Research and Markets: The Market for Printed PV Is Expected To Grow From
$0.23 Billion in 2008 to $3.93 Billion in 2015 at an Estimated CAGR Of 52.1%
from 2010 To 2015
Business Wire: 28 March 2011
[What follows is the full text of the news story.]
The benefits offered by printed electronics technology such as low
manufacturing cost incurred and ability to use wide variety of substrates are
driving the global printed electronics market. The global printed electronics
market is expected to grow from $2.8 billion in 2008 to $24.25 billion in 2015,
at an estimated CAGR of 38.4% from 2010 to 2015.
Amongst all the printing techniques, screen printing commands the
largest share owing to its wide deployment in the development of products like sensors,
RFID, and displays. Printed displays form the largest application market;
whereas printed photovoltaic (PV) form the fastest growing application due to
the globally increasing demand for alternative sources of energy. The market
for printed PV is expected to grow from $0.23 billion in 2008 to $3.93 billion
in 2015 at an estimated CAGR of 52.1% from 2010 to 2015.
Scope of the report:
This research report categorizes the global market for printed
electronics on the basis of applications, materials, printing technologies and
geography; forecasting revenues, and analyzing trends in each of the following
submarkets:
On the basis of applications: Display, lighting, and others (Sensors,
RFID, photovoltaic, memories, and batteries)
On the basis of materials:
Inks and substrates
On the basis of printing technologies:
Inkjet printing, screen printing, flexography, gravure, and others
On the basis of geography:
North America, Europe,
Each section will provide market data, market drivers, trends and
opportunities, top-selling products, key players, and competitive outlook. This
report will also provide market tables for covering the sub-segments and
micro-markets. In addition, the report also provides more than 20 company profiles
covering all the sub-segments.
What makes our reports unique?
We provide the longest market segmentation chain in this industry.
We provide 10% customization. Our customization will ensure that you
necessarily get the market intelligence you are looking for and we get a loyal
customer.
We conduct detailed market positioning, product positioning, and
competitive positioning. Entry strategies, gaps, and opportunities are
identified for all the stakeholders.
Comprehensive market analysis for the following sectors:
Pharmaceuticals, Medical Devices, Biotechnology, Semiconductor and
Electronics, Energy and Power Supplies, Food and Beverages, Chemicals, Advanced
Materials, Industrial Automation, and Telecom and IT. We also analyze retailers
and super-retailers, technology providers, and research and development
(R&D) companies.
Key questions answered
Which are the high-growth segments/cash cows and how is the market
segmented in terms of applications and materials?
What are market estimates and forecasts; which markets are doing well
and which are not?
Where are the gaps and opportunities; what is driving the market?
Which are the key playing fields? Which are the winning edge
imperatives?
How is the competitive outlook; who are the main players in each of the
segments; what are the key selling products; what are their strategic
directives, operational strengths and product pipelines? Who is doing what?
Companies Mentioned:
Aveso Displays
Basf Se
Blue Spark Technologies
Conductive Inkjet Technology
E Ink Holdings, Inc.
Emagin Corp.
Enfucell Oy Ltd
Kovio Inc.
Lg Display Co. Ltd.
Man Roland Druckmaschinen Gmbh
Mark Andy Inc.
Merck Kgaa
Nanosolar, Inc.
Novacentrix Corporation
Novaled Ag
Ntera, Inc.
Osram Opto Semiconductors Gmbh
Polyic Gmbh & Co. Kg
Printechnologics Gmbh
Sipix Imaging, Inc.
Smartkem Limited
Toppan Forms
Universal Display Corporation (Udc)
Vorbeck Materials Corp.
Xaar Plc
Xennia
Key Topics Covered:
Executive Summary
1 Introduction
2 Summary
3 Market Overview
4 Global Materials Market
5 Printing Technology Market
6 Applications Market
7 Geographic Analysis
8 Competitive Landscape
9 Company Profiles
Appendix
List of Tables
List of Figures
For more information visit
http://www.researchandmarkets.com/research/e31bd9/global_printed_ele
Research and Markets
Laura Wood, Senior Manager
press@researchandmarkets.com
Fax (outside
Turnout high for Harper event at Mark Andy
Label & Narrow Web
01 April 2011
[What follows is the full text of the article.]
Seventy converters and suppliers from across the Midwest US
packed the house at Mark Andy's headquarters in
Presentations were provided by Harper, Actega WIT, FLXON, RotoMetrics, 3M, and DuPont, all with valuable technical information for converters on how to efficiently increase short run productivity throughout the inline flexo press workflow. After the presentations, attendees witnessed a press demonstration in which the Mark Andy Performance Series ran three different jobs, highlighting the press design and emphasizing its short-run capabilities.
Elimination of waste was a message for the press demonstration with material being pulled off the rewind to show a 7' (2.1 m) material requirement for initial set up of a four-color wine label job on 80T print cylinders. After a version change on the wine label, a health and beauty label run was started, demonstrating a four-color full job changeover in three minutes and changeover waste of 20' (6.1 m) from the first job to the next, Ease and efficiency of repeat changes were then demonstrated with the changeover to a third job run on 96T cylinders.
In addition to the press demonstration, attendees were guided on a manufacturing floor tour to observe Mark Andy's progress in its Lean transformation. Lead times have been reduced and output quality increased by focusing on elimination of waste, adoption of standard work and incorporation of visual management tools.
"We are honored that Harper Corporation chose Mark Andy as its inaugural stop in the 2011 Road Show tour. We are always excited to see converters taking an interest in flexo issues and by hosting this tour we have played a role in furthering the education of our existing and future customers," says Paul Brauss, president of Mark Andy.
Macaran invests in Mark Andy P7 press
Label & Narrow Web
01 March 2011
[What follows is the full text of the article.]
* Macaran Printing Products, a label converter in
The combination hot air/UV, eight-color, 17" (430 mm) press includes a film package, multiple die stations, delam/relam, and rail-mounted web turnbar and constant tension laminator. The P7, scheduled for delivery in March, complements the existing Mark Andv LP3000 purchased in 2007. currently being upgraded with screen capability.
In addition to the P7, Macaran Printing Products has also invested in a Rotoflex VLI440 finishing system for inspection of film substrates. The unit is equipped with the recently launched Genesis advanced control system, which provides increased accuracy and processing speeds.
The system not only can identify defects within a stream of a single label or image shape, but independent lane configuration provides the converter the ability to run multiple sizes and shapes of labels on one roll, detecting defects regardless of label con tour, size or color.
Label & Narrow Web
01 March 2011
[What follows is the full text of the article.]
MARK ANDY INC.
Tel: +1 636 532 4433
Fax: +1 636 532 1510
Emai: info@markandy.com
Web: www.markandy.com
WHO WE ARE
Mark Andy Inc. is a world leader in narrow and mid web
printing and converting and continues to set the industry standard with
complete, innovative solutions. Providing leading global brands including Comco
and Mark Andy printing equipment, Rotoflex finishing solutions and UVT curing
systems, Mark Andy offers a full spectrum of web flexo-graplnc solutions for
the tag and label industry, as well as the folding carton and flexible
packaging markets. Headquartered in
PRESSES
Mark Andy has enjoyed great success with its most recent press introduction, the Performance Series. Designed and engineered from extensive converter research, this press has changed the way printers look at their bottom line. With a single station changeover in 30 seconds, it is the ultimate in workflow acceleration, driving higher margins and slashing waste.
Featuring the patented I-Drive[TM] (
FINISHING SOLUTIONS
Rotoflex equipment continues to lead the way in providing high quality inspection, slitter/rewinder, diecutting and security machines. The expansive product offering includes the well known DLI, DSI, VLI, VSI and Vericut machines, offering the right solution for virtually any finishing requirement. Rototlex recently introduced Genesis, the most powerful control system available. With fast processing speeds, simple operator interface and fast, accurate fault placement, Genesis gives converters control of their roll quality, speed, workflow and bottom line.
ADVANCED CURE TECHNOLOGY
Designers refuse to be bound by substrate or ink limitations, and print buyers demand more flexibility and higher quality graphics. UVT fulfills those requirements and more. UVT products are premier, affordable, high-volume curing systems for new press installations, upgrades, and retrofitted installations. For consistent performance, reliability, expandability, and the automated power control that comes from customer-focused, engineered solutions, UVT is the answer.
COMPREHENSIVE CUSTOMER SUPPORT
Comco, Mark Andy, Rotoflex and UVT are all backed by MAX, the most complete and thorough customer service and support in the industry. A complete service provider, MAX is by your side from installation to technical support/service, product enhancements and upgrades, preventive maintenance and OEM quality replacement parts, including certified Arpeco parts. Staffed by the largest team of engineers, technicians and parts specialists dedicated to post-sale service, MAX is committed to customer satisfaction.
Label & Narrow Web
01 January 2011
[What follows is the full text of the article.]
The Performance Series P5, the latest addition to press
manufacturer Mark Andy's new flexo press line, is already surpassing company
expectations. The model P5 was officially launched to the marketplace at
Labelexpo Americas in September. Since then, 12 Performance Series P5 machines
have already been sold to converters around the world including
As part of the launch of the model P5 at Labelexpo, Mark Andy demonstrated the key features that allow an operator to set up and changeover four different print jobs in six minutes. According to Mark Andy, the machine's design "confirms a new reality about short run printing--digital is not the only solution to be considered to maintain a competitive advantage in today's market."
The Performance Series is capable of running jobs as short as 800 feet or 250 meters; as well as any longer run demands. Its print platform reduces tools and operator steps while maintaining high level of consistency, quality and repeatability.
"This new Performance Series is a game changer. Not only for Mark Andy, but for the converters who aim to remain competitive today and into the future," says Jeff Feltz, director of product management for Mark Andy.
Following Labelexpo
Barcom Industries, a producer of pressure sensitive labels
and tags in
Astron Packaging, located in Ahmedabad, has also invested in a Performance Series P5. The company is a supplier of corrugated boxes and self-adhesive labels. The 10" (250 mm) wide, 8-color press is outfitted with extensive options including chilled impression rolls, a rail system to house a web turnbar, cold foil unit and a rotary screen head, and a rotary hot foil stamp unit.
Label & Narrow Web
01 January 2011
[What follows is the full text of the article.]
The Harper Roadshow, a traveling seminar series produced by
anilox manufacturer Harper Corporation of
The second seminar will be held March 24 at the headquarters
of Nilpeter
Wide web printing techniques will be the focus of the April
12 event when PCMC/Aquaflex hosts the Harper Roadshow at its
The second half of this year's schedule will include four roadshows starting in late summer and ending in October. Those seminars, featuring technical professionals from Harper and other companies, will focus on anilox and other technologies, advice on printing troubleshooting, prepress and print-room problem-solving, and more.
Dates and locations for the remaining four seminars are
August 25,
To register, contact Jazmin Kluttz at 704-588-3371, via email at jkluttz@harperimage.com, or register online at www.harperimage.com/Information-Center/Roadshows.
Label & Narrow Web
01 September 2010
[What follows is the full text of the article.]
Mark Andy, the
Eighteen have been installed in the
The two top models, P5 and P7 of the Performance Series
press line, are on display at Labelexpo Americas 2010 in
The flexo press has a highly accessible printhead design, and the company says that a four-color changeover can be completed in three minutes. It also features repeatable settings and limited operator steps for job setup, according to Mark Andy.
"The Performance Series marks a milestone for the Mark Andy brand," says Mark Andy CEO Paul Brauss. "Our in-depth customer research has resulted in a press design that has proven to meet the true needs of the customer. Our product development team hit the mark, and I'm very excited for converters. They have a great new product to take advantage of."
Standard & Poor’s
|
|
|
Publication
date: 05-Aug-2011 20:13:14 EST |
·
We have lowered our long-term
sovereign credit rating on the United States of America to 'AA+' from 'AAA' and
affirmed the 'A-1+' short-term rating.
·
We have also removed both the short- and long-term ratings
from CreditWatch negative.
·
The downgrade reflects our
opinion that the fiscal consolidation plan that Congress and the Administration
recently agreed to falls short of what, in our view, would be necessary to
stabilize the government's medium-term debt dynamics.
·
More broadly, the downgrade
reflects our view that the effectiveness, stability, and predictability of
American policymaking and political institutions have weakened at a time of
ongoing fiscal and economic challenges to a degree more than we envisioned when
we assigned a negative outlook to the rating on April 18, 2011.
·
Since then, we have changed our
view of the difficulties in bridging the gulf between the political parties
over fiscal policy, which makes us pessimistic about the capacity of Congress
and the Administration to be able to leverage their agreement this week into a
broader fiscal consolidation plan that stabilizes the government's debt
dynamics any time soon.
·
The outlook on the long-term
rating is negative. We could lower the long-term rating to 'AA' within the next
two years if we see that less reduction in spending than agreed to, higher
interest rates, or new fiscal pressures during the period result in a higher
general government debt trajectory than we currently assume in our base case.
The transfer and
convertibility (T&C) assessment of the
debt service--remains
'AAA'.
We lowered our long-term
rating on the U.S. because we believe that the prolonged controversy over
raising the statutory debt ceiling and the related fiscal policy debate
indicate that further near-term progress containing the growth in public
spending, especially on entitlements, or on reaching an agreement on raising
revenues is less likely than we previously assumed and will remain a
contentious and fitful process. We also believe that the fiscal consolidation
plan that Congress and the Administration agreed to this week falls short of
the amount that we believe is necessary to stabilize the general government
debt burden by the middle of the decade.
Our lowering of the
rating was prompted by our view on the rising public debt burden and our
perception of greater policymaking uncertainty, consistent with our criteria
(see "Sovereign Government Rating Methodology and
Assumptions ," June 30, 2011, especially Paragraphs 36-41).
Nevertheless, we view the
We have taken the ratings
off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment
of 2011 has removed any perceived immediate threat of payment default posed by
delays to raising the government's debt ceiling. In addition, we believe that
the act provides sufficient clarity to allow us to evaluate the likely course
of
The political
brinksmanship of recent months highlights what we see as
the containment of which
we and most other independent observers regard as key to long-term fiscal
sustainability.
Our opinion is that
elected officials remain wary of tackling the structural issues required to
effectively address the rising U.S. public debt burden in a manner consistent
with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and
Assumptions," June 30, 2011, especially Paragraphs 36-41). In
our view, the difficulty in framing a consensus on fiscal policy weakens the
government's ability to manage public finances and diverts attention from the
debate over how to achieve more balanced and dynamic economic growth in an era
of fiscal stringency and private-sector deleveraging (ibid). A new political
consensus might (or might not) emerge after the 2012 elections, but we believe
that by then, the government debt burden will likely be higher, the needed
medium-term fiscal adjustment potentially greater, and the inflection point on
the U.S. population's demographics and other age-related spending drivers
closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely
Cost Even More Green, Now," June 21, 2011).
Standard & Poor's
takes no position on the mix of spending and revenue measures that Congress and
the Administration might conclude is appropriate for putting the
The act calls for as much
as $2.4 trillion of reductions in expenditure growth over the 10 years through
2021. These cuts will be implemented in two steps: the $917 billion agreed to
initially, followed by an additional $1.5 trillion that the newly formed
Congressional Joint Select Committee on Deficit Reduction is supposed to
recommend by November 2011. The act contains no measures to raise taxes or
otherwise enhance revenues, though the committee could recommend them.
The act further provides
that if Congress does not enact the committee's recommendations, cuts of $1.2
trillion will be implemented over the same time period. The reductions would
mainly affect outlays for civilian discretionary spending, defense, and
Medicare. We understand that this fall-back mechanism is designed to encourage
Congress to embrace a more balanced mix of expenditure savings, as the
committee might recommend.
We note that in a letter
to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated
total budgetary savings under the act to be at least $2.1 trillion over the
next 10 years relative to its baseline assumptions. In updating our own fiscal
projections, with certain modifications outlined below, we have relied on the
CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to
include the CBO assumptions contained in its Aug. 1 letter to Congress. In
general, the CBO's "Alternate Fiscal Scenario" assumes a continuation
of recent Congressional action overriding existing law.
We view the act's
measures as a step toward fiscal consolidation. However, this is within the
framework of a legislative mechanism that leaves open the details of what is
finally agreed to until the end of 2011, and Congress and the Administration
could modify any agreement in the future. Even assuming that at least $2.1
trillion of the spending reductions the act envisages are implemented, we
maintain our view that the
Compared with previous
projections, our revised base case scenario now assumes that the 2001 and 2003
tax cuts, due to expire by the end of 2012, remain in place. We have changed
our assumption on this because the majority of Republicans in Congress continue
to resist any measure that would raise revenues, a position we believe Congress
reinforced by passing the act. Key macroeconomic assumptions in the base case
scenario include trend real GDP growth of 3% and consumer price inflation near
2% annually over the decade.
Our revised upside
scenario--which, other things being equal, we view as consistent with the
outlook on the 'AA+' long-term rating being revised to stable--retains these
same macroeconomic assumptions. In addition, it incorporates $950 billion of
new revenues on the assumption that the 2001 and 2003 tax cuts for high earners
lapse from 2013 onwards, as the Administration is advocating. In this scenario,
we project that the net general government debt would rise from an estimated
74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.
Our revised downside
scenario--which, other things being equal, we view as being consistent with a
possible further downgrade to a 'AA' long-term rating--features less-favorable
macroeconomic assumptions, as outlined below and also assumes that the second
round of spending cuts (at least $1.2 trillion) that the act calls for does not
occur. This scenario also assumes somewhat higher nominal interest rates for
U.S. Treasuries. We still believe that the role of the U.S. dollar as the key
reserve currency confers a government funding advantage, one that could change
only slowly over time, and that Fed policy might lean toward continued loose
monetary policy at a time of fiscal tightening. Nonetheless, it is possible
that interest rates could rise if investors re-price relative risks. As a
result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in
10-year bond yields relative to the base and upside cases from 2013 onwards. In
this scenario, we project the net public debt burden would rise from 74% of GDP
in 2011 to 90% in 2015 and to 101% by 2021.
Our revised scenarios
also take into account the significant negative revisions to historical GDP
data that the Bureau of Economic Analysis announced on July 29. From our
perspective, the effect of these revisions underscores two related points when
evaluating the likely debt trajectory of the
When comparing the U.S.
to sovereigns with 'AAA' long-term ratings that we view as relevant
peers--Canada, France, Germany, and the U.K.--we also observe, based on our
base case scenarios for each, that the trajectory of the U.S.'s net public debt
is diverging from the others. Including the
Standard & Poor's
transfer T&C assessment of the
The outlook on the long-term
rating is negative. As our downside alternate fiscal scenario illustrates, a
higher public debt trajectory than we currently assume could lead us to lower
the long-term rating again. On the other hand, as our upside scenario
highlights, if the recommendations of the Congressional Joint Select Committee
on Deficit Reduction--independently or coupled with other initiatives, such as
the lapsing of the 2001 and 2003 tax cuts for high earners--lead to fiscal
consolidation measures beyond the minimum mandated, and we believe they are
likely to slow the deterioration of the government's debt dynamics, the
long-term rating could stabilize at 'AA+'.
On Monday, we
will issue separate releases concerning affected ratings in the funds,
government-related entities, financial institutions, insurance, public finance,
and structured finance sectors.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.87 |
|
|
1 |
Rs.75.14 |
|
Euro |
1 |
Rs.66.67 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.