MIRA INFORM REPORT

Report Date :

07.11.2011

IDENTIFICATION DETAILS

Name :	CST INDUSTRIES INC
Registered Office :	9701 Renner Blvd, Ste 150, Lenexa, KS 66219-8116
Country :	United States
Date of Incorporation :	Not Available
Legal Form :	Private Subsidiary Company
Line of Business :	Design, Supply and Erection of pre-engineered sectional-bolted and factory-welded tanks, as well as aluminum geodesic domes

RATING & COMMENTS

MIRA’s Rating :

Ba

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

Status :	Satisfactory
Payment Behaviour :	No Complaints
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 – September 30^th, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
United States	a1	a1

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

Company name & address

CST Industries Inc

9701 Renner Blvd

Ste 150

Lenexa, KS 66219-8116

United States

Tel: 913-621-3700

Fax: 913-621-4071

Web: www.tanks.com

Synthesis

Employees: 70

Company Type: Private Subsidiary

Corporate Family: 85 Companies

Ultimate Parent: Sterling Group LP

Financials in: USD (Millions)

Reporting Currency: US Dollar

Annual Sales: 30.3

Total Assets: NA

Business Description

CST Industries specializes in the design, supply and erection of pre-engineered sectional-bolted and factory-welded tanks, as well as aluminum geodesic domes. Its tanks are used in a variety of applications, including the industrial water and wastewater, power, pulp and paper, petrochemical, plastics, oil and gas, fire protection and desalination industries. CST Industries has achieved its ISO 9000 certification from the International Organization for Standardization. Its products also have application in processed food, municipal water and wastewater, minerals, chemicals, edible oils, agricultural waste, anaerobic digesters and gas holders. The company specializes in providing a variety of coating systems for the storage tank industry. CST Industries also offers custom-designed ovens and furnaces for precise coating application and cure.

Industry

Industry Miscellaneous Capital Goods

ANZSIC 2006: 2231 - Boiler, Tank and Other Heavy Gauge Metal Container Manufacturing

NACE 2002: 2821 - Manufacture of tanks, reservoirs and containers of metal

NAICS 2002: 33242 - Metal Tank (Heavy Gauge) Manufacturing

UK SIC 2003: 2821 - Manufacture of tanks, reservoirs and containers of metal

US SIC 1987: 3443 - Fabricated Plate Work (Boiler Shops)

Key Executives

(Emails Available)

Name	Title
Brian Bauerbach	Chief Executive Officer
Chris Bridgenell	Chief Financial Officer
Eric Carson	Vice President-Sales
Celeste Neibarger	Management Information Systems Manager
Tom Dedonder	Director-Customer Service

news

Title	Date
ApplicantStack Applicant Tracking Software Streamlines Hiring Process for Construction and Engineering Firms PR Web (689 Words)	1-Nov-2011
Express Group Holdings, LLC Names John Matheson Chief Executive Officer Canada Newswire (526 Words)	30-Aug-2011
The Sterling Group Acquires Stackpole International From Gates Canada PR Newswire US (528 Words)	2-Aug-2011
B&G Crane Service Acquires the Texas Assets of Ray Anthony International PR Newswire US (610 Words)	28-Jun-2011
Roofing Supply Group LLC, a Portfolio Company of The Sterling Group, Announces Acquisition of Construction Resource, Inc. PR Newswire US (418 Words)	15-Apr-2011

1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1

2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1

Corporate Overview

Location

9701 Renner Blvd

Ste 150

Lenexa, KS, 66219-8116

Johnson County

United States

Tel: 913-621-3700

Fax: 913-621-4071

Web: www.tanks.com

Sales USD(mil): 30.3

Assets USD(mil): NA

Employees: 70

Industry: Miscellaneous Capital Goods

Company Type: Private Subsidiary

Quoted Status: Not Quoted

Chief Executive Officer: Brian Bauerbach

Contents

· Industry Codes

· Business Description

· Financial Data

· Additional Information

Industry Codes

ANZSIC 2006 Codes:

2231 - Boiler, Tank and Other Heavy Gauge Metal Container Manufacturing

3299 - Other Construction Services Not Elsewhere Classified

NACE 2002 Codes:

2821 - Manufacture of tanks, reservoirs and containers of metal

4525 - Other construction work involving special trades

NAICS 2002 Codes:

23819 - Other Foundation, Structure, and Building Exterior Contractors

33242 - Metal Tank (Heavy Gauge) Manufacturing

US SIC 1987:

1799 - Special Trade Contractors, Not Elsewhere Classified

3443 - Fabricated Plate Work (Boiler Shops)

UK SIC 2003:

4525 - Other construction work involving special trades

2821 - Manufacture of tanks, reservoirs and containers of metal

Business Description

Establishments primarily engaged in rolling, drawing, and other operations resulting in the production of aluminum ingot, including extrusion ingot, and aluminum and aluminum-base alloy basic shapes, not elsewhere classified, such as rolled and continuous cast rod and bar.

More Business Descriptions

CST Industries specializes in the design, supply and erection of pre-engineered sectional-bolted and factory-welded tanks, as well as aluminum geodesic domes. Its tanks are used in a variety of applications, including the industrial water and wastewater, power, pulp and paper, petrochemical, plastics, oil and gas, fire protection and desalination industries. CST Industries has achieved its ISO 9000 certification from the International Organization for Standardization. Its products also have application in processed food, municipal water and wastewater, minerals, chemicals, edible oils, agricultural waste, anaerobic digesters and gas holders. The company specializes in providing a variety of coating systems for the storage tank industry. CST Industries also offers custom-designed ovens and furnaces for precise coating application and cure.

Financial Data

Financials in:	USD(mil)
Revenue:	30.3

1 Year Growth

NA

Additional Information
ABI Number:	614466217

Credit Report as of 02/01/2011

Location
9701 Renner Blvd Ste: 150 Lenexa, KS 66219-8116 United States
County:		Johnson
MSA:		Kansas City, MO
Phone:		913-621-3700
Fax:		913-621-4071
URL:		http://tanks.com
ABI Number: 614466217
Facility Size(ft^2):		2,500 - 9,999
Business Type:		Private
Location Type:		Subsidiary
Corp. Affiliation:		Sterling Group LP
Recommended Credit Limit *
N/A
Primary Line Of Business:
SIC:	3355-01 - Aluminum Fabricators (Mfrs)
NAICS:	331319 - Other Aluminum Rolling & Drawing
Secondary Lines Of Business:
NAICS:	423860 - Other Transportation Goods Merchant Whols
SICs:	3443-05 - Tanks-Manufacturers
	5088-06 - Tanks-Metal (Whls)
	9999-66 - Federal Government Contractors
	332420 - Metal Tank, Heavy Gauge, Mfg

Table of Contents

Profile Links

Similar Businesses in the Area

Closest Neighbors

External Links

http://tanks.com

Parent OneSource Profile

Similar Businesses in the Area *

Springfield Aluminum Co

1093 N Cynthia Dr Ste: 1

Nixa, MO 65714-7911

Kawneer

600 Kawneer

Springdale, AR 72764-3754

Hart Machine & Metal Fabrication Inc

4111 N 25th St

Omaha, NE 68111-2401

D-J Extruding

723 E Spring Ave

Conway Springs, KS 67031-8128

TMX Aerospace

3001 E 11th Ave

Hutchinson, KS 67501-2143

Kaiser Chemical Corp

7311 E 41st St

Tulsa, OK 74145-4505

Tach-It Fabrication & Machine

64505 E 240 Rd

Grove, OK 74344-4462

Midwest Metal Works

4824 S 135th St

Omaha, NE 68137-1603

Prairie View Industries

2620 Industrial Ave

Fairbury, NE 68352-1355

Judd Performance Welding

2520 N 84th St

Omaha, NE 68134-6318

* Similar Businesses are defined as the closest businesses sharing the same six-digit primary SIC code ( 3355-01 - Aluminum Fabricators (Mfrs)) regardless of size.

Closest Neighbors

Phoenix Fabrication

5440 Kansas Ave

Kansas City, KS 66106-1143

Price Truck Line

5510 Kansas Ave

Kansas City, KS 66106-1145

Truck Utilities Kansas City

5320 Kansas Ave

Kansas City, KS 66106-1141

Mdm Horticultural Supplies

5420 Kansas Ave

Kansas City, KS 66106-1143

CST Storage

9701 Renner Blvd Ste: 150

Lenexa, KS 66219-8116

Norco

5500 Kansas Ave

Kansas City, KS 66106

Kaw Valley Drainage District

55th & Kansas Ave

Kansas City, KS 66106

Display Studios

5420 Kansas Ave

Kansas City, KS 66106-1143

Corporate Family	Corporate Structure News:
	Sterling Group LP CST Industries Inc
Total Corporate Family Members: 85 Excluded Small Branches and/or Trading Addresses: 46 (Available via export)

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees
Sterling Group LP	Parent	Houston, TX	United States	Miscellaneous Financial Services		30
Universal Fibers Systems LLC	Subsidiary	Bristol, VA	United States	Textiles - Non Apparel	181.7	450
Express Metal Fabricators Inc	Subsidiary	Locust Grove, OK	United States	Miscellaneous Fabricated Products	2.2	225
St George Steel Fabrication	Branch	St George, UT	United States	Construction - Supplies and Fixtures	32.6	118
Express Metal Fabricators Inc	Branch	Big Cabin, OK	United States	Miscellaneous Capital Goods	38.1	70
St George Steel Fabrication	Branch	Murray, UT	United States	Construction - Supplies and Fixtures	12.4	45
B&G Crane Svc LLC	Subsidiary	Jefferson, LA	United States	Rental and Leasing	95.2	175
B&G Crane Services LLC	Branch	Metairie, LA	United States	Construction Services	6.5	35
CST Industries Inc	Subsidiary	Lenexa, KS	United States	Miscellaneous Capital Goods	30.3	70
Conservatek Industries Inc	Subsidiary	Houston, TX	United States	Miscellaneous Fabricated Products		700
CST Storage	Subsidiary	Lenexa, KS	United States	Miscellaneous Capital Goods	12.9	50
CST Storage	Branch	Parsons, KS	United States	Miscellaneous Capital Goods	32.8	140
CST Storage	Subsidiary	Dekalb, IL	United States	Miscellaneous Capital Goods	28.1	120
CST Storage	Branch	Winchester, TN	United States	Miscellaneous Capital Goods	19.9	85
Temcor	Subsidiary	Gardena, CA	United States	Miscellaneous Fabricated Products	9.9	45
Roofing Supply Group LLC	Subsidiary	Dallas, TX	United States	Construction - Supplies and Fixtures		59
Roofing Supply Group	Branch	Charlotte, NC	United States	Construction - Supplies and Fixtures	22.1	35
Roofing Supply Of Arizona LLC	Branch	Glendale, AZ	United States	Construction - Supplies and Fixtures	19.0	30
Roofing Supply	Branch	Kennesaw, GA	United States	Construction - Supplies and Fixtures	19.0	30
Roofing Supply Group	Branch	Oklahoma City, OK	United States	Construction - Supplies and Fixtures	19.0	30
Roofing Supply Group	Branch	Austin, TX	United States	Construction - Supplies and Fixtures	26.0	28
Roofing Supply Group	Branch	Nashville, TN	United States	Construction - Supplies and Fixtures	15.8	25
Roofing Supply Group	Branch	Cleveland, OH	United States	Construction - Supplies and Fixtures	15.8	25
Roofing Supply Group	Branch	Memphis, TN	United States	Construction - Supplies and Fixtures	15.8	25
Roofing Supply Group	Branch	San Leandro, CA	United States	Construction - Supplies and Fixtures	15.2	24
Roofing Supply Group	Branch	San Antonio, TX	United States	Construction - Supplies and Fixtures	14.5	23
Roofing Supply Of Columbia Inc	Branch	Columbia, SC	United States	Construction - Supplies and Fixtures	12.6	20
Roofing Supply Of Colorado Inc	Branch	Denver, CO	United States	Construction - Supplies and Fixtures	12.6	20
Roofing Supply Inc	Branch	Webster, TX	United States	Construction - Supplies and Fixtures	12.6	20
Roofing Supply Of Atlanta	Branch	Morrow, GA	United States	Construction - Supplies and Fixtures	12.6	20
Roofing Supply	Branch	New Orleans, LA	United States	Construction - Supplies and Fixtures	12.6	20
Roofing Supply Group	Branch	Omaha, NE	United States	Construction - Supplies and Fixtures	12.6	20
Express Integrated Technologies LLC	Subsidiary	Tulsa, OK	United States	Miscellaneous Capital Goods		50
Velcon Filters LLC	Subsidiary	Colorado Springs, CO	United States	Miscellaneous Capital Goods	40.0	40
Velcon Filters	Branch	Sylacauga, AL	United States	Chemicals - Plastics and Rubber	108.8	101
Twin Filter B.V.	Subsidiary	Zaandam, Noord-Holland	Netherlands	Construction and Agriculture Machinery
B&G Crane Services LLC	Subsidiary	Baton Rouge, LA	United States	Construction Services	6.5	35
Saxco International Inc	Subsidiary	Horsham, PA	United States	Miscellaneous Capital Goods		10
Demptos Glass Co	Branch	Fairfield, CA	United States	Miscellaneous Fabricated Products	14.3	25

Executive report

Executives

Name	Title	Function
Brian Bauerbach	Chief Executive Officer	Chief Executive Officer
Chris Bridgenell	Chief Financial Officer	Finance Executive
Gary Crutcher	Director-Human Resources	Human Resources Executive
Tom Dedonder	Director-Customer Service	Customer Service Executive
Eric Carson	Vice President-Sales	Sales Executive
Tom Renich	Information Technology, Marketing	Marketing Executive
Tony Till	Director-Marketing	Marketing Executive
Celeste Neibarger	Management Information Systems Manager	Information Executive
Robert Newkirk	Director-Purchasing	Purchasing Executive
Robert Cooper	Region Manager Latin America	Other

Standard & Poor’s

United States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative

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.

TORONTO (Standard & Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'. Standard & Poor's also said that the outlook on the long-term rating is negative. At the same time, Standard & Poor's affirmed its 'A-1+' short-term rating on the U.S. In addition, Standard & Poor's removed both ratings from CreditWatch, where they were placed on July 14, 2011, with negative implications.

The transfer and convertibility (T&C) assessment of the U.S.--our assessment of the likelihood of official interference in the ability of U.S.-based public- and private-sector issuers to secure foreign exchange for

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 U.S. federal government's other economic, external, and monetary credit attributes, which form the basis for the sovereign rating, as broadly unchanged.

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 U.S. fiscal policy for the next few years.

The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements,

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 U.S.'s finances on a sustainable footing.

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 U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow. Under our revised base case fiscal scenario--which we consider to be consistent with a 'AA+' long-term rating and a negative outlook--we now project that net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of sovereign indebtedness is high in relation to those of peer credits and, as noted, would continue to rise under the act's revised policy settings.

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 U.S. government. First, the revisions show that the recent recession was deeper than previously assumed, so the GDP this year is lower than previously thought in both nominal and real terms. Consequently, the debt burden is slightly higher. Second, the revised data highlight the sub-par path of the current economic recovery when compared with rebounds following previous post-war recessions. We believe the sluggish pace of the current economic recovery could be consistent with the experiences of countries that have had financial crises in which the slow process of debt deleveraging in the private sector leads to a persistent drag on demand. As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward.

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 U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%. However, in contrast with the U.S., we project that the net public debt burdens of these other sovereigns will begin to decline, either before or by 2015.

Standard & Poor's transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment reflects our view of the likelihood of the sovereign restricting other public and private issuers' access to foreign exchange needed to meet debt service. Although in our view the credit standing of the U.S. government has deteriorated modestly, we see little indication that official interference of this kind is entering onto the policy agenda of either Congress or the Administration. Consequently, we continue to view this risk as being highly remote.

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.49.08
UK Pound	1	Rs.78.65
Euro	1	Rs.67.79

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%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.