|
Report Date : |
13.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
E.I. DUPONT DE NEMOURS AND COMPANY |
|
|
|
|
Registered Office : |
1007 Market Street, Wilmington, Delaware 19898 |
|
|
|
|
Country : |
United States |
|
|
|
|
Financials (as on) : |
31.12.2011 (Consolidated) |
|
|
|
|
Date of Incorporation : |
04.09.1915 |
|
|
|
|
Legal Form : |
Public Company (NYSE = DD) |
|
|
|
|
Line of Business : |
Operates as a science and technology based company worldwide. |
|
|
|
|
No. of Employees : |
70,000 |
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 : |
Slow but correct |
|
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
|
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
Company name: E.I. DUPONT DE NEMOURS AND COMPANY
Headquarters: 1007 Market Street, Wilmington,
Delaware 19898 - USA
Telephone: +1
302-774-1000
Fax: +1 302-773-2631
Website: www2.dupont.com
Corporate ID#: 0049306
State: Delaware
Judicial form: Public Company (NYSE = DD)
Date incorporated: 09-04-1915
Stock value: 932,471,000 shares
(excludes 87,041,000 shares of
treasury stock) of common
stock, $0.30 par value,
outstanding at October 15,
2012.
Name of manager: Mrs. Ellen J.
KULLMAN
Business:
E. I. du Pont de Nemours and Company operates as a science and
technology based company worldwide.
Its Agriculture segment provides hybrid corn and soybean seeds, and
grains under the Pioneer brand name; and herbicides, fungicides, and
insecticides. The company’s Electronics & Communications segment supplies
materials and systems for photovoltaic products, consumer electronics,
displays, and advanced printing. The Industrial Biosciences segment provides a
range of enzymes.
The Nutrition & Health segment offers cultures, emulsifiers, gums,
natural sweeteners, and soy-based food ingredients. The Performance Chemicals
segment offers fluorochemicals, fluoropolymers, specialty and industrial
chemicals, and white pigments for various markets, such as plastics and
coatings, textiles, mining, pulp and paper, water treatment, and healthcare.
The Performance Coatings segment supplies high performance liquid and
powder coatings for motor vehicle original equipment manufacturers (OEM); the
motor vehicle after-market; and general industrial applications, such as such
as coatings for heavy equipment, pipes and appliances, and electrical
insulation.
The Performance Materials segment provides engineering polymers,
packaging and industrial polymers, elastomers, films, parts, and systems and
solutions for the automotive OEM and associated after-market industries, as
well as electrical, electronics, packaging, construction, oil, photovoltaics,
aerospace, chemical processing, and consumer durable goods. The Safety &
Protection segment primarily offers nonwovens, aramids, and solid surfaces for
the construction, transportation, communications, industrial chemicals, oil and
gas, electric utilities, automotive, manufacturing, defense, homeland security,
and safety consulting industries.
The Pharmaceuticals segment represents its interest in the collaboration
relating to Cozaar/Hyzaar antihypertensive drugs.
The company was founded in 1802 and is headquartered in Wilmington,
Delaware.
EIN: 51-0014090
Staff: 70,000
Operations & branches:
At above address, we find
the corporate headquarters.
The Company maintains several
branches in the U.S.
Shareholders:
The Company is listed with the NYSE under symbol DD.
65% of the stock is held by institutional and mutual fund owners,
including:
|
STATE STREET
CORPORATION |
4.73% |
|
VANGUARD GROUP,
INC. (THE) |
4.52% |
|
CAPITAL WORLD
INVESTORS |
3.88% |
|
BLACKROCK
INSTITUTIONAL TRUST COMPANY, N.A. |
2.62% |
|
INCOME FUND OF
AMERICA INC |
2.02% |
Management:
Mrs. Ellen J. KULLMAN, Chairman and CEO
Mrs. Kullman has been the Chief Executive Officer of EI DuPont de
Nemours & Co. since January 1, 2009. She served as the President of EI
DuPont de Nemours & Co., from October 1, 2008 to December 31, 2008.
Mrs. Kullman served as Vice President of DuPont Coatings & Color
Technologies Group. She served as Executive Vice President of Dupont Safety
& Protection, DuPont Coatings & Color Technologies Group, Marketing
& Sales and Safety and Sustainability of Ei Dupont De Nemours & Co. and
DuPont Automotive Co. since June 2006. Mrs. Kullman served as Group Vice
President of Dupont Safety & Protection of Ei Dupont De Nemours & Co.
from February 2002 to 2006 and served as its Group Vice President and General
Manager from 2000 to 2002. She served as Executive Vice President of Safety and
Sustainability, Pharmaceuticals and Risk Management of Ei Dupont De Nemours
& Co. from February 2002 to June 2006. Mrs. Kullman began her career at
DuPont in 1988 as Marketing Manager in the medical imaging business. Following
two years as Business Director for the x-ray film business, she moved to
Printing & Publishing as Global Business Director of electronic imaging. In
1994, she joined White Pigment & Mineral Products as Global Business
Director and served as its Vice President and General Manager since 1995. She
assumed leadership of two high growth businesses, DuPont Safety Resources in
1998 and Bio-Based Materials in 1999. Mrs.
Kullman served as Group Vice President and General Manager since 2000
with the addition of Corporate New Business Development and Intellectual Assets
Licensing. She later assumed responsibility for DuPont Flooring Systems and
DuPont Surfaces in 2001. She has been Chairman of the Board of EI DuPont de
Nemours & Co. since December 31, 2009. She serves as a Director of Catalyst
Inc. She has been a Director of EI DuPont de Nemours & Co. since October 1,
2008 and United Technologies Corp. since January 3, 2011. She serves as a
Member of the Board of Overseers at Tufts University School of Engineering and
a Member of the Board of Directors at National Safety Council.
She is a Member of the Tufts University Board of Trustees. She served as
a Member of the Board of Directors at General Motors Corporation (formerly Motors
Liquidation Company) from October 5, 2004 to December 11, 2008.
She served as Director of General Motors Company until December 11,
2008. She is a member of the U.S.-India CEO Forum, the Business Council and
co-chair of the National Academy of Engineering Committee on Changing the
Conversation. In 2005, Fortune Magazine named Mrs. Kullman to its 50 Most
Powerful Women in Business List. She is the winner of the prestigious 2004
Aiming High Award and a member of the Committee of 200.
Mrs. Kullman holds a Bachelor of Science degree in Mechanical
Engineering from Tufts University and an MBA from Northwestern University.
Nicholas C. FANANDAKIS, CFO
Subsidiaries &
Partnership:
On attachment:
- 10K 2011
- 3rd 10Q 2012
Third-quarter sales 2012 from continuing operations were $7.4 billion or
9 percent below last year, primarily reflecting volume declines in Electronics
& Communications and Performance Chemicals, particularly in Asia Pacific.
Company sales reflect 5 percent lower volume, 4 percent negative currency
impact and a 1 percent net reduction from portfolio changes, which were partly
offset by 1 percent higher local prices.
Agriculture sales increased 4 percent on higher volume and prices,
inclusive of a 10 percent currency headwind. Performance Materials and
Nutrition & Health delivered strong earnings growth in the quarter.
The company has commenced a restructuring plan to increase productivity,
enhance competitiveness and accelerate growth. The plan will deliver pre-tax
cost savings of about $450 million ($300 million in 2013) by eliminating
corporate costs supporting Performance Coatings and taking additional cost-cutting
actions to improve competitiveness. The restructuring plan includes eliminating
about 1,500 positions globally in the next 12-18 months.
In addition, the company remains on track to achieve its full-year 2012
productivity targets for both fixed costs and working capital.
DuPont expects its full-year 2012 earnings from continuing operations,
excluding significant items, to be in a range of $3.25 to $3.30 per
share. Prior-year earnings were $3.55 per share on a comparable basis.
Banks: US Bank
...
Legal filings & complaints:
As of today date, there are several legal filing pending with the
various Courts.
Secured debts summary (UCC):
Several
Trade references:
Date reported: December 2012
High credit: USD 60,000
Now owing: 0
Past due: 0
Last purchase: November 2012
Line of business: Office supply
Paying status: 10 days beyond terms
Date reported: December 2012
High credit: USD 100,000,000+
Now owing: 0
Past due: 0
Last purchase: November 2012
Line of business: Payroll
Paying status: As agreed
Date reported: December 2012
High credit: USD 18,000
Now owing: 0
Past due: 0
Last purchase: November 2012
Line of business: Telecommunications
Paying status: 6 days beyond terms
Domestic credit history:
Domestic credit history
appears as follow:
|
Monthly Payment Trends - Recent Activity |
|
National Credit Bureaus
gave a medium credit rating.
According to our credit analysts, during the last 6 months, 75% of trade
experience indicates a regular payment.
Domestic payments are usually made with an average of 10 to 15 days beyond
terms.
International credit history:
Payments of imports are currently made with an average of 5+ days beyond
terms.
The Company is improving
its payments, but the cash is low, due to high inventories and bad conditions
of the market.
Other comments:
The bank confirmed late
payments but remains confident.
The Company is in good
standing.
This means that all local
and federal taxes were paid on due date.
The risk is medium.
Our opinion:
A business connection may be
conducted but we suggest you to check regularly the way of payments.
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.53.96 |
|
|
1 |
Rs.84.49 |
|
Euro |
1 |
Rs.72.23 |
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.