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Report Date : |
04.12.2012 |
IDENTIFICATION DETAILS
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Name : |
MEXICHEM RESINAS VINÍLICAS S.A. DE C.V. |
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Registered Office : |
Km. 4.5 Autopista Altamira S/N, Puerto Industrial Altamira 89608 Altamira Tamaulipas |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
28.08.1986 |
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Legal Form : |
Stock Company of Variable Capital |
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Line of Business : |
Production and marketing of PVC resins. |
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No. of Employees : |
2,230 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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Mexico |
A2 |
A2 |
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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 |
MEXICO - ECONOMIC OVERVIEW
Mexico has a free market economy in the trillion dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is roughly one-third that of the US; income distribution remains highly unequal. Since the implementation of the North American Free Trade Agreement (NAFTA) in 1994, Mexico's share of US imports has increased from 7% to 12%, and its share of Canadian imports has doubled to 5%. Mexico has free trade agreements with over 50 countries including Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan - putting more than 90% of trade under free trade agreements. In 2007, during its first year in office, the Felipe CALDERON administration was able to garner support from the opposition to successfully pass pension and fiscal reforms. The administration passed an energy reform measure in 2008 and another fiscal reform in 2009. Mexico''s GDP plunged 6.2% in 2009 as world demand for exports dropped, asset prices tumbled, and remittances and investment declined. GDP posted positive growth of 5.4% in 2010 and 3.8% in 2011, with exports - particularly to the United States - leading the way. The administration continues to face many economic challenges, including improving the public education system, upgrading infrastructure, modernizing labor laws, and fostering private investment in the energy sector. CALDERON has stated that his top economic priorities remain reducing poverty and creating jobs.
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Source
: CIA |
IDENTIFICATION
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CORRECT COMPANY NAME |
MEXICHEM RESINAS
VINÍLICAS S.A. DE C.V. |
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TRADE NAME |
MEXICHEM RESINAS
VINÍLICAS |
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TAXPAYER REGISTRATION |
RFC MRV860828GS0 |
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MAIN ADDRESS |
Km. 4.5 Autopista Altamira S/N, Puerto
Industrial Altamira |
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POSTAL CODE |
89608 |
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PROVINCE / DEPARTAMENT |
Altamira |
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STATE / REGION |
Tamaulipas |
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COUNTRY |
MEXICO |
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TELEPHONE |
(52833) 2290100 |
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E-MAIL |
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WEB |
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LEGAL BACKGROUNDS
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LEGAL STATUS |
Stock Company of Variable Capital |
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DATE OF INCORPORATION |
28AUG1986 |
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PLACE OF REGISTRY |
México D.F. |
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DURATION |
99 years |
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CURRENT PAID-IN CAPITAL |
No specified |
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SHAREHOLDERS EQUITY |
6,441,122,000.00 Pesos (31DEC2011) |
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LISTED AT STOCK EXCHANGE |
No |
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CURRENT EXCHANGE RATE (US$) |
Ps$13.45 per US$1.= Dollar |
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MEMBERSHIP |
National Association of the Chemical
Industry |
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COMMENTS |
-The company was founded on August 28, 1986 under the name of Grupo Primex S.A. de C.V. -In December 2004, Mexichem acquired all the shares representing the capital stock of Grupo Primex SA de CV -By deed No. 33,303, issued December 15, 2006 before the faith of Jorge Alfredo Ruiz del Rio Escalante, Notary Public No. 168 of the Federal District, it was decided to change the company name to Mexichem Resinas Vinílicas S.A. de C.V. -In October 2010, Policyd S.A. de C.V. merged with Mexichem Resinas Vinílicas S.A. de C.V.-Mexichem Resinas Vinílicas S.A. de C.V. is a company of Mexichem group dedicated to production and marketing of PVC resins. Manage the integrated operation of three plants, located in Altamira and Tlaxcala (Mexico) and Cartagena (Colombia), with a total production capacity of 750,000 tons per year. -About 50% of its production is exported, mainly to the Latin American market, Europe and the United States. Also covers most of the domestic market in the countries hosting its production plants. -The company has advanced technology for the manufacture of PVC and has all the knowledge and experience (developed by Primex and Petco - incorporated into Mexichem group in 2004 and 2007, respectively ) of over 40 years of successful performance in production and marketing of this polymer. -The quality tradition of brands Primex and Pecto, internationally recognized , builds continuity of leadership of Mexichem Resinas Vinílicas in the region and its vision to be recognized as the best supplier of PVC in Latin America. |
DIRECTORS - EXECUTIVES –
SHAREHOLDERS
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WHO IS WHO?
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MANRIQUE ROCHA,
CARLOS |
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NATIONALITY |
Mexican |
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PROFESSION |
Eng. |
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MEXICHEM S.A.B.
DE C.V. |
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BUSINESS
BACKGROUND Mexichem is a Mexican holding company of a group of companies in the American continent and in the United Kingdom, Japan and Taiwan, which are engaged in production and sale of chemicals and petrochemicals. Main products include chlorine, caustic soda, resins, polyvinyl chloride compounds (PVC), fluorite extraction, fluorhydric acid, cooling gases, as well as PVC and geosynthetic pipes and connections. Today, this company's strategic position is focused on chemical sector through three productive chains: chlorine-vinyl, fluorine, and integral solutions. |
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BUSINESS HISTORY
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The subject company is a member of the Production Chain "chlorine-vinyl chain" one of the three Productive Chains of "Mexichem S.A.B. de C.V." a company leading global chemical and petrochemical industry. It has over 50 years experience in the industry and nearly 30 years listing on the Stock Exchange of Mexico. Today it operates in 15 countries, with about 10,000 employees. Its products are marketed worldwide and generate annual revenues of over $3 billion dollars. Is recognized as a provider of a wide variety of raw materials and finished products. Its operation involves subsidiaries located in three continents, efficiently integrated production chains of chlorine-vinyl, fluorine, and integral solutions. In the international market, where quality, efficiency and cost competitiveness are key factors for success, "Mexichem S.A.B. de C.V. "and its products comply with the requirements of social investment in areas such as water supply, power transmission, construction, housing and civil infrastructure, communications and healthcare, among other fundamental improving the quality of life.Production Chain "chlorine-vinyl chain" is composed of companies engaged in the production and sale of chemicals, such as:-Mexichem Derivados S.A. de C.V.-Mexichem Compuestos S.A. de C.V.-Mexihem America, Inc. (United States)-Alphagary Corporation (United States)-Alphagary Limited (United Kingdom)-Mexichem Resinas Colombia S.A.S. (Colombia)-C.I. Mexichem Compuestos Colombia S.A.S. |
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RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER
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BUSINESS
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Main activity |
This is a company dedicated to the production and marketing of PVC resins.The company produces and provides general purpose resins such as:PVC Suspension Type (The portfolio of PVC resins type suspension, include homopolymers, in a variety of degrees that respond to virtually all known uses. The company is capable of delivering up to 678,000 tons per year of this type of resin).Emulsion type PVC (The variety of available references of emulsion type PVC meets the application requirements and most demanding users. The installed production capacity for emulsion resin is 72,000 metric tons per year).Processed products The company also provides the following services:Technical AssistanceTechnical Assistance differentiates its offer by providing the customer the assurance of using a product with the best support. Mexichem Resinas Vinílicas contributes to the success of its customers by providing updated information and experiences relevant to:. Development of new applications. Optimize formulations, processes and products. Take advantage of opportunities in different markets. Facilitate trade. Establish best practices in quality, safety and environmental protection.This work is supported by laboratories, equipped with advanced technology and operated in accordance with international protocols of metrological assurance.The Centre for Research and Development of Mexichem, CRD, and the Technical Support team of Mexichem Resinas Vinílicas are available to the client to assist in all these aspects.Operational Planning / LogisticsThe operative planning system of Mexichem integrally relates demands of the various markets served by the company with its production capacity, purchasing and logistics, in order to ensure supply and timely enough to meet production orders.Mexichem Resinas Vinilicas has delivery infrastructure required to meet its delivery commitments worldwide . The strategic location of its port facilities and the great frequency of ships available facilitates the mobilization of cargo by sea on all trade routes. To meet the demand by land, the product is shipped by truck from plants or from satellite warehouses located in major cities in each country where they operate.The commercial terms of delivery are according to international definitions known as Incoterms. The products can be released in various types of packaging, according to the preferences and needs of each client:. Loose bags, weighing 25 kilograms. The packaging material may be paper or plastic, in accordance with the order. The bags are mobilized on pallets and can be protected further by a film.. supersacks with capacity between 800 and 1000 kilograms.. Bulk, car-hopper or container.The company has warehouses in zones with sales agents and distributors in different countries to expedite the fulfillment of orders wherever these facilities are justified.Mexichem Resinas Vinílicas is part of BASC (Business Anti-Smuggling Coalition), a cooperative program between the private sector and international organizations, which promotes and supports the establishment of rules and safety procedures for world trade, in order to control risks associated with drug trafficking, smuggling and terrorism into legitimate business. Linking to this program helps ensure that the cargo shipped from the company has been rigorously inspected and verified at each stage of loading, both in plant and in port.BRANDS: Primex and Iztavil, product brands of Vinyl Resins, registered in Mexico. |
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Import |
Yes |
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Country |
United States, Italy, etc.., Through
direct credit. |
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Export |
Yes |
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COUNTRY |
Latin American market, Europe and the
United States through direct credit |
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% CASH SALES / METHOD |
10% |
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% Credit SALES / Terms |
90% 30 days |
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% Ventas exterior (Paises) |
50% |
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% DOMESTIC PURCHASES |
20% |
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% FOREIGN PURCHASES |
80% |
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SELLING TerritorY |
50% (Domestic market) |
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EMPLOYEES |
2,230 |
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Comments |
Comments on Staff: The company has a workforce of 229 employees in Altamira plant I; 120 employees in Altamira plant II, and 74 people in the Tlaxcala plant.CLIENTS: The company serves the construction industry as well as upholstery, flexible films and rigid bottles, containers and footwear.
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FINANCIAL INFORMATION
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Interviewee(s) |
Third parties |
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Disposition |
Poor.- Only general information without
figures. |
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Information provided |
Be advised all information in this report was obtained using various external sources, like public official, databases, etc. because our request for information was declined on grounds of confidentiality.It should be noted although we disclosed the requesting client's name, no favourable response was elicited. |
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FINANCIAL SITUATION |
A-: SATISFACTORYIt was not found any adverse during our investigations that may affect Subject Company's performance. Also, it should be noted it is supported by its parent company, Mexichem S.A.B. de C.V., whose sales turnover in year 2010 amounted to Ps$36,471,649,000.= Pesos. |
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Insurance Comments |
We could not access updated information. |
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TRADE REFERENCES, CREDIT
BUREAU, LAWSUITS, BANKS
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TRADE REFERENCES |
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Note : Other
suppliers did not provide information or could not be consulted |
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CREDIT HISTORY Pemex Gas y Petroquímica Básico : This parastatal company has a long term contract with Subject for supply of natural gas, with periodic reviews, good customer. |
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BANKERS Nacional de México S.A.BBVA Bancomer S.A.The subject is a customer of those banks, which when consulted told us that in compliance with current legal regulations, can not provide data on their customer movements out of respect to banking secrecy. |
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GENERAL INFORMATION
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Based on prevention
as a fundamental principle, Mexichem produces its PVC Vinyl Resins in
accordance with environmental regulations in the countries where its plants
operate, both mandatory and by voluntary adoption. -The environmental
objectives and programs of the Company are designed to minimize consumption
of natural resources and control emissions and discharges through
eco-efficient systems. In compliance with the Cleaner Production agreements
signed by their production units over the past decades, have implemented and
continue to invest in projects to minimize resource consumption - water,
energy, gas and raw materials and to limit the discharges and emissions. The
results have been recognized by the environmental authorities in Mexico and
Colombia. -The closed-loop processes characteristic of the available
production technologies have the capacity to prevent and limit potential
negative impacts of their operations on the environment. Virtually all
residual materials of the operation are recovered and reused or utilized,
being of special interest internal recycling of waste PVC, used in the
production of pallets. . Certification of Environmental Management System -
ISO 14001:2004 - Plant Cartagena . Certification of Environmental Management
System - ISO 14001:2004 - Altamira Management of the Occupational Safety and
Health addresses the requirements of the standard OHSAS 18,000. -Established
security systems in all plants of Mexichem Resinas Vinilicas are based on
rigorous employee training and prevention activities to control all hazards,
both within plants and in their respective geographic areas of influence.
-Epidemiological surveillance and preventive controls to protect the health
of their staff are part of established occupational health program. Have safety
devices, safe operating procedures, emergency plans, fire control systems,
additional power plants and other resources to meet the target. The excellent
historic safety record that shows each of their production units demonstrates
the effectiveness of efforts invested to achieve an accident-free operation.
-The modern production processes that use closed-loop systems have the
stripping, recovery and reuse of the fraction of unreacted monomer during
polymerization. Mexichem Resinas Vinílicas sees to their product performance
throughout the life cycle, from procurement of raw materials that constitute
it, its manufacture, processing and use, to disposal or recycling at the end
of its useful life. -It has the best available technologies for the
manufacture of PVC, which incorporate efficient closed-loop processes capable
of meeting the parameters on emissions and discharges internationally
recognized as safe for their type of industry. Accompanying the product
during processing to consumer goods and in the use stage is supported by the
wide distribution of Safety Data Sheets (MSDS) of PVC. |
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REPUTATION |
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NOTHING AGAINST COMPANY |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.56 |
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UK Pound |
1 |
Rs.87.46 |
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Euro |
1 |
Rs.71.08 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.