MIRA INFORM REPORT

Report Date :

07.03.2011

IDENTIFICATION DETAILS

Correct Name :	GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS CANADA INC.

Registered Office :	5, Montee des Arsenaux, Le Gardeur, Quebec

Country :	Canada

Year of Establishment :	1941

Legal Form :	Corporation for Profit

Line of Business :	Developer and manufacturer of ammunition

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	1,000,000 USD
Status :	Satisfactory
Payment Behaviour :	Regular
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 – December 31, 2010

Country Name

Previous Rating

(30.09.2010)

Current Rating

(31.12.2010)

Canada

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

GEOPOLITICS - CANADA

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal

Economic Risk: Nil

Currency: 100 USD = 73 EUR

Branch Situation: Stable

IDENTIFICATION

Ordered as:	General Dynamics
Address in the order:	Produits De Defense Et Systeme Tactiques-Canada Inc 30 Rue De Rotterdam St-Augustin De Desmaures QC Gea 1S4
Comments on data supplied:	The company's correct and complete name is listed below. The address you provided is one of the company's plants.
Legal Name:	General Dynamics Ordnance and Tactical Systems Canada Inc.
Trade Name:	GD OTS Canada
Legal Address	5, Montee des Arsenaux Le Gardeur, Quebec, Canada

Telephone:	+ 1 (450) 581-3080	Document Number :	NA
Fax:	+ 1 (450) 585 7302	Legal Form:	Corporation for Profit
Email:	info@can.gd-ots.com	Registered in:	Quebec
Website:	http://www.gd-otscanada.com	Date Created:	1941
Manager:	Andre Falardeaux, President	Date Incorporated:	NA
Staff:	1,800 employees	Stock:	NA
		Value:	NA
Activity:	Developer and manufacturer of ammunition

BANKS

Name of the Bank

JP Morgan Bank

BUSINESS

History:
	Residents of Shannon, Que., a 4,000-person town north of Quebec City, won the right in 2007 to seek damages in a class-action lawsuit against General Dynamics Ordnance and Tactical Systems Canada Inc. and the Department of National Defence over tainted water in local wells. The trial - expected to last six months - will seek damages that could be worth "hundreds of millions" for 2,300 of the town's current and past residents, according to the lawyer representing those involved in the suit. Between 1940 and 1980, trichloroethylene, or TCE, a known carcinogen, was used as a solvent to clean cannons and other ordnance at CFB Valcartier. It was also used in an ammunition plant on the base originally run by Canadian Arsenals, a Crown corporation, but operated by SNC Technologies Inc., in 1991, when it closed. General Dynamics acquired SNC Technologies in 2007, after the class-action was authorized. TCE was found in Shannon's wells in early 2000 and residents began collecting evidence of abnormally high rates of cancer and other diseases in the town, located just kilometres from the military base. The federal government has provided Shannon with $26.5 million to ensure an alternate, safe source of drinking water, but the town chose to fight the class-action over the health issues linked to the water supply. PRINCIPAL ACTIVITY: General Dynamics Ordnance and Tactical Systems-Canada Inc. (GD-OTS Canada) is a world-class developer and manufacturer of ammunition adapted to the needs of the armed forces and law enforcement agencies. The company has an important work force. As prime contractor and ammunition system integrator, GD-OTS Canada is designated by the Canadian government as the centre of excellence for the maintenance and further development of an industrial defence capability in production, technical know-how and research relating to ammunition products. The company is headquartered in Le Gardeur, Québec and is wholly owned by General Dynamics Corporation.
Products/Services description:
	Small-caliber ammunition Medium-caliber ammunition Large-caliber ammunition Reduced-energy ammunition Short-range ammunition Target simulation Non-toxic projectile Non-toxic primer Frangible ammunition Infra-red technology Insensitive munition (IM) Long-range accuracy Propellants Propelling Charges Fuzes Brass cartridge cases Demolition devices Grenades Pyrotechnics and Simunition® product line
Sales are:
	Wholesale
Operations area:
	National, International
Trade References:
	The staff was unwilling to provide any trade references.
The subject employs 1,800 employee(s)
PAYMENTS
	regular
Branches:
	•GD-OTS Canada Load, Assemble and Pack Plant in Le Gardeur •GD-OTS Canada Metal Forming Plant in St-Augustin-de-Desmaures •GD-OTS Canada Valleyfield Energetic Materials Plant in Valleyfield •GD-OTS Canada Proofing, Testing and Evaluating Site in Nicolet

Shareholders - Manager - Related Companies

Management:
	General Dynamics Corp. 2941 Fairview Park Drive Suite 100 Falls Church, VA 22042-4153 United States - Map Phone: 703-876-3000 Fax: 703-876-3125 Website: http://www.generaldynamics.com 90,000 employees
Management:
	Andre Falardeau, President. Josee Fillion, Controller.

Financials - COMMERCIAL TRENDS AND FORECAST

As a private company the subject does not publish any financial statements.

However our financial sources could provide us with the following data.

Those figures are estimates provided by confidential banking and financial institutions working with the company.

Currency	DATE
USD	2009
Turnover	400,000,000

Legal Fillings

The sources consulted record no detrimental legal or labor court information.

Rating

Local credit bureau gave a good credit rate.

The company is in Good Standing. This means that all local and federal taxes were paid on due date.

Final Opinion

This is an established company.

The structure is evolving in a profitable sector.

The company's length of payment is regular.

Its income is correct.

The staff appeared very confident during the interview.

This is a large size company with numerous years in the business.

The company’s current legal history raises nevertheless some concerns and must be followed.

The entity can still bear a credit line.

A business connection can be conducted.

SUMMARY

FINANCIAL SUMMARY		DEBT COLLECTIONS AND PAYMENTS
Profitability	CORRECT	Public	YES
Indebtedness	CONTROLLED	Payments	REGULAR
Cash	GOOD

ADVISED CREDIT

1,000,000 USD

APPENDIX

Person Interviewed
	Josee Fillion
Position
	Controller
Comments
	She confirmed all the information included in the report.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.99
UK Pound	1	Rs.73.24
Euro	1	Rs.62.80

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

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%)

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