|
Report Date : |
16.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
BIOMET, INC. |
|
|
|
|
Registered Office : |
56 E. Bell Drive, Warsaw, IN 46582 |
|
|
|
|
Country : |
United States |
|
|
|
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Date of Incorporation : |
30.11.1977 |
|
|
|
|
Legal Form : |
Corporation – Profit |
|
|
|
|
Line of Business : |
Designs, manufactures, and markets various surgical and non-surgical products used primarily by orthopedic surgeons and other musculoskeletal medical specialists. |
|
|
|
|
No. of Employees : |
3,500 |
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 : |
Usually Correct |
|
Litigation : |
Exist |
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
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
United States |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
UNITED STATES - ECONOMIC OVERVIEW
The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $48,100. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices increased another 50% between 2006 and 2008. In 2008, soaring oil prices threatened inflation and caused a deterioration in the US merchandise trade deficit, which peaked at $840 billion. In 2009, with the global recession deepening, oil prices dropped 40% and the US trade deficit shrank, as US domestic demand declined, but in 2011 the trade deficit ramped back up to $803 billion, as oil prices climbed once more. The global economic downturn, the sub-prime mortgage crisis, investment bank failures, falling home prices, and tight credit pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP; total government revenues from taxes and other sources are lower, as a percentage of GDP, than that of most other developed countries. The wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the US budget deficit and public debt - through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform bill that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. Long-term problems include inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, sizable current account and budget deficits - including significant budget shortages for state governments - energy shortages, and stagnation of wages for lower-income families.
Source
: CIA
BIOMET INTERNATIONAL
The corporate name is:
Company name: BIOMET, INC.
Address: 56 E. Bell Drive, Warsaw, IN 46582 - USA
Telephone: +1
574-267-6639
Fax: +1 574-267-8137
Website: www.biomet.com
Corporate ID#: 19771-684
State: Indiana
Judicial form: Corporation – Profit
Date incorporated:
11-30-1977
Stock: -
Value: -
Name of manager: Jeffrey
R. BINDER
Business:
Biomet, Inc., together with its subsidiaries, designs, manufactures, and
markets various surgical and non-surgical products used primarily by orthopedic
surgeons and other musculoskeletal medical specialists.
It offers joint reconstructive products for knees and hips, associated
instruments, bone cements, and cement delivery systems; sports medicine;
reconstructive implants that are used to replace joints, other than hips and
knees; trauma products, including internal fixation devices comprising nails,
plates, screws, pins, and wires to stabilize traumatic bone injuries; and
external fixation devices utilized to stabilize fractures when alternative
methods of fixation are not suitable.
The company also provides spinal fixation systems for cervical,
thoracolumbar, deformity correction, and spacer applications; implantable and
non-invasive electrical stimulation devices for spinal applications;
osteobiologics, such as bone substitute materials, as well as allograft
services for spinal applications; bone healing products, including electrical
stimulation devices used for trauma indications, offering implantable and
non-invasive options to stimulate bone growth; dental reconstructive devices
and associated instrumentation that are used for oral rehabilitation through
the replacement of teeth, and repair of hard and soft tissues; and crown and
bridge products. In addition, it offers microfixation products, autologous
therapies, operating room supplies, casting materials, general surgical
instruments, wound care products, and other surgical products.
The company sells its products directly to healthcare institutions,
dental practices, and dental laboratories; and indirectly through insurance
companies, as well as through stocking distributors and healthcare dealers.
It markets its products in the United States, Europe, and
internationally.
The company was founded in 1977 and is headquartered in Warsaw, Indiana.
Biomet, Inc. is a subsidiary of LVB Acquisition, Inc.
EIN: 35-1418342
Staff: 3,500
Operations & branches:
At the headquarters, we
find a factory, warehouse and office, owned.
Shareholders:
LVB Acquisition, Inc.
c/o The Corporation Trust Company
1209 Orange Street, Wilmington, DE 19801 – USA
Incorporated in Delaware on 12-14-2006
ID# 4262579
Management:
Jeffrey R. BINDER, Chairman, President and CEO.
He has been Chief Executive Officer and President of Biomet Inc. since
February 26, 2007. Mr. Binder has been the Chief Executive Officer and
President of LVB Acquisition Inc. and Biolectron Inc. since February 2007. He
serves as the Manager and Secretary at Biomet Sports Medicine, LLC. He serves
as the Principal Executive Officer and President of Biomet Orthopedics Inc.,
Meridew Medical Inc., Blue Moon Diagnostics Inc., Biomet Fair Lawn L.P. and
Biomet Travel Inc. He serves as a Principal Executive Officer and President of
Biomet Orthopedics LLC. He serves as a Manager of Biomet Microfixation Inc.,
Biomet Orthopedics Inc., BIOMET 3i Inc., EBI, LLC, Cross Medical Products Inc.,
EBI Medical Systems LLC, Biomet Biologics Inc., Biomet Fair Lawn L.P.,
Interpore Cross International LLC and EBI Holdings, Inc.
He served as the President and Chief Executive Officer of Biomet Manufacturing
Corp. He served as Senior Vice President of Diagnostic Operations for Abbott
Laboratories from January 2006 to February 2007. Mr. Binder served as the
President of Abbott Spine Inc. from June 2003 to January 2006. Mr. Binder
served as a Corporate Officer and Vice President of Abbott Laboratories since
2004. He served as the Chief Executive Officer of Cross Medical Products, Inc.
He served as the Chief Executive Officer and President of Abbott Spine Inc.
(formerly, Spinal Concepts Inc.), which is acquired by Abbott Laboratories from
2000 to June 2003. Mr. Binder has nine years of orthopedic medical device
management experience, most recently as the President of De Puy Orthopedics
Inc., a Johnson & Johnson company from 1999 to 2000. He also spent four
years in various senior positions with Howmedica Orthopedics, and five years
with the Boston Consulting Group. Mr. Binder serves as the Chairman of Biomet
Inc. He has been an Executive Director of
Biomet Inc. since February 26, 2007.
He has been a Director of LVB Acquisition, Inc. since 2007. He serves as
a Director of Biomet International Ltd., BIOMET 3i, Inc. He serves as a
Director of Biomet Leasing Inc., Biomet Europe Ltd., Biolectron Inc., Interpore
Spine, Ltd., Blue Moon Diagnostics Inc., Biomet Manufacturing Corp., Biomet
Travel Inc. and Meridew Medical Inc. He serves as a Director of Kirschner
Medical Corporation. He served as a Director of Abbott Spine, Inc.
He holds a master's degree in public affairs from the Woodrow Wilson
School at Princeton University. and a bachelor's degree in applied mathematics
from Yale University.
Daniel P. FLORIN is Sr. Vice President and CFO.
Subsidiaries
And partnership:
Biomet Orthopedics, Inc.
Biomet Microfixation Inc.
BIOMET 3i Inc.
EBI, LLC
Cross Medical Products Inc.
EBI Medical Systems LLC
Biomet Biologics Inc.
Biomet Fair Lawn L.P.
Interpore Cross International LLC
EBI Holdings, Inc.
In United States, privately
held corporations are not required to publish any financials.
On April 9, 2013, Biomet Inc. reported unaudited consolidated earnings
results for the third quarter and nine months ended February 28, 2013.
For the quarter, the company's net sales increased 9% to $771.5 million
compared to net sales of $708.9 million during the third quarter of fiscal year
2012. Excluding the effect of foreign currency, net sales increased 9% during
the third quarter.
U.S. net sales increased 9% to $472.9 million during the third quarter,
while Europe net sales increased 5% (4% constant currency) to $184.7 million
and International (primarily Canada, South America, Mexico and the Pacific Rim)
net sales increased 15% (20% constant currency) to $113.9 million. There were
two fewer selling days during the quarter compared to the prior year quarter.
Operating loss was $237.4 million compared to operating income of $108.1
million during the third quarter of fiscal year 2012. Excluding special items,
adjusted operating income totaled $225.0 million compared to $216.1 million for
the third quarter of fiscal year 2012. Net loss was $304.5 million compared to
a net loss of $16.5 million during the third quarter of fiscal year 2012.
Excluding special items, adjusted net income totaled $80.4 million compared to
$55.1 million for the third quarter of fiscal year 2012. Excluding special
items, adjusted EBITDA was $275.4 million compared to $260.5 million for the
third quarter of fiscal year 2012. Cash flow from operations was $145.2 million
compared to cash flow from operations of $157.5 million for the third quarter
of fiscal year 2012. Free cash flow was $102.4 million compared to free cash
flow of $116.0 million during the third quarter of fiscal year 2012. At
February 28, 2013, net debt was $5,761.0 million compared to $5,335.4 million
at May 31, 2012, reflecting the impact of the Trauma Acquisition. Loss before
income taxes was $337.1 million compared to $6.3 million reported a year ago.
Capital expenditures were $42.8 million compared to $41.5 million reported a
year ago.
For the nine months, the company reported operating loss of $25.2
million, loss before income taxes of $508.4 million and net loss of $402.2
million on net sales of $2,269.0 million compared to operating income of $284.6
million, loss before income taxes of $88.1 million and net loss of $69.7
million on net sales of $2,098.6 million reported a year ago. Adjusted
operating income was $656.7 million compared to $618.1 million reported a year
ago. Adjusted EBITDA was $801.4 million compared to $753.4 million reported a
year ago. Adjusted net income was $235.0 million compared to $146.7 million
reported a year ago. Net cash provided by operating activities was $273.8
million compared to $291.3 million reported a year ago. Capital expenditures
were $149.7 million compared to $122.7 million reported a year ago. For the
quarter, the company reported goodwill and intangible assets impairment charge
of $334.1 million. Non-cash goodwill and intangible asset impairment charge
related to its dental reconstructive reporting unit due to evidence of continued
declining industry market growth rates in certain European and Asia Pacific
markets and corresponding unfavorable margin trends.
Banks: JPMorgan Chase Bank
...
Legal filings & complaints:
As of today date, there are several legal filing pending with various
Courts involving the Company as plaintiff or defendant.
Secured debts summary (UCC):
Several UCC
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+'.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.62 |
|
|
1 |
Rs.83.69 |
|
Euro |
1 |
Rs.71.41 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.