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Report Date : |
25.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
LOVE BROTHERS CO. |
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|
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Registered Office : |
2nd |
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Country : |
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|
|
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Date of Incorporation : |
Not Available |
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Legal Form : |
Legal Structure Not Ascertained |
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Line of Business : |
Non‑specialised wholesale trade |
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No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
Status : |
Poor |
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Payment Behaviour : |
-- |
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Litigation : |
-- |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Iraq |
C1 |
C1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
IRAQ - ECONOMIC OVERVIEW
An improving security environment and foreign investment are
helping to spur economic activity, particularly in the energy, construction, and
retail sectors. Broader economic development, long-term fiscal health, and
sustained improvements in the overall standard of living still depend on the
central government passing major policy reforms. Iraq's largely state-run
economy is dominated by the oil sector, which provides more than 90% of
government revenue and 80% of foreign exchange earnings. Iraq in 2012 boosted
oil exports to a 30-year high of 2.6 million barrels per day, a significant
increase from Iraq's average of 2.2 million in 2011. Government revenues
increased as global oil prices remained persistently high for much of 2012.
Iraq's contracts with major oil companies have the potential to further expand
oil exports and revenues, but Iraq will need to make significant upgrades to
its oil processing, pipeline, and export infrastructure to enable these deals
to reach their economic potential. The Iraqi Kurdistan Region's (IKR)
autonomous Kurdistan Regional Government (KRG) passed its own oil law in 2007,
and has directly signed about 50 contracts to develop IKR energy reserves. The
federal government has disputed the legal authority of the KRG to conclude most
of these contracts, some of which are also in areas with unresolved
administrative boundaries in dispute between the federal and regional
government. Iraq is making slow progress enacting laws and developing the
institutions needed to implement economic policy, and political reforms are
still needed to assuage investors' concerns regarding the uncertain business
climate, which may have been harmed by the November 2012 standoff between
Baghdad and Erbil and the removal of the Central Bank Governor in October 2012.
The government of Iraq is eager to attract additional foreign direct
investment, but it faces a number of obstacles including a tenuous political
system and concerns about security and societal stability. Rampant corruption,
outdated infrastructure, insufficient essential services, skilled labor
shortages, and antiquated commercial laws stifle investment and continue to
constrain growth of private, nonoil sectors. Iraq is considering a package of
laws to establish a modern legal framework for the oil sector and a mechanism
to equitably divide oil revenues within the nation, although these reforms are
still under contentious and sporadic negotiation. Under the Iraqi Constitution,
some competencies relevant to the overall investment climate are either shared
by the federal government and the regions or are devolved entirely to the
regions. Investment in the IKR operates within the framework of the Kurdistan
Region Investment Law (Law 4 of 2006) and the Kurdistan Board of Investment,
which is designed to provide incentives to help economic development in areas
under the authority of the KRG. Inflation has remained under control since 2006
as security improved. However, Iraqi leaders remain hard pressed to translate
macroeconomic gains into an improved standard of living for the Iraqi populace.
Unemployment remains a problem throughout the country despite a bloated public
sector. Encouraging private enterprise through deregulation would make it
easier for Iraqi citizens and foreign investors to start new businesses.
Rooting out corruption and implementing reforms - such as restructuring banks
and developing the private sector - would be important steps in this direction
Source
: CIA
Love Brothers Co.
Current
Recommended Credit:
Payment
Record: UNDETERMINED
This
rating is based on available data. In the event of additional information a possibility
for a different rating applies.
Registration
Number: N/A
Registration
Date: N/A
Legal
Form: LEGAL
STRUCTURE NOT ASCERTAINED
Latest
Financials: N/A
Nominal
Capital: N/A
Issued
Capital: N/A
Turnover: N/A
Net
Profit: N/A
Net
Worth: N/A
Company
Name: Love
Brothers Co.
Headquarter
Address: 2nd
Sheikh Umar Street, Bus Garage,
Baghdad,
Iraq
Postal
Address: P.O.Box
53319
Telephone: +964
163206
+964780
2216747
+964790
1939047
Fax: +964790
1939047
Current
Legal Form: LEGAL
STRUCTURE NOT ASCERTAINED
Registration
Address: 2nd
Sheikh Umar Street, Bus Garage,
Baghdad
Capital
is NOT disclosed.
Information
on Shareholders is not available/applicable
Name: Mr
Abu Muhannad Abdul Ameer A Hussen
Position
within the company: General
manager
Country
of Birth: Iraq
Nationality: Iraqi
Can
fluently speak: Arabic
& English
Education: Graduate
University
NACE
Codes: 4690 Non‑specialised wholesale trade
HQ Premises Location: Central
Business Area
Subsidiaries
Affiliates
Information on Related
Companies is not available/applicable
Information
on Bankers is not available/applicable
Subject's
payments reported to be: UNDETERMINED
Name/Title: Mr. Abu Muhannad Abdul Ameer A Hussen General manager
Comment: Company Officials have refused to co‑operate with local reporters in
confirming/providing information.
Reporter Comment: Registration/ legal and financial information is not publicly available. Thus all data stated in the report was obtained directly from the Subject Company and/ or other publicly available
information. Therefore it should be used as a point of reference as it is not possible to verify
such data with official sources.
In the interview conducted with Mr. Abu Muhannad Abdul Ameer A Hussen, General Manager,
he declined any information citing the ground of company's confidentiality.
It was confirmed that the company name is "Love Brothers Co.".
It was confirmed that the company address is as mentioned above.
Conclusions
Local Reputation: Local informants have not adequate information to assess the Subject's local
reputation.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.73 |
|
|
1 |
Rs.91.82 |
|
Euro |
1 |
Rs.78.23 |
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.