MIRA INFORM REPORT

 

 

Report Date :

25.06.2013

 

IDENTIFICATION DETAILS

 

Name :

LOVE BROTHERS CO.

 

 

Registered Office :

2nd Sheikh Umar Street, Bus Garage, Baghdad

 

 

Country :

Iraq

 

 

Date of Incorporation :

Not Available

 

 

Legal Form :

Legal Structure Not Ascertained

 

 

Line of Business :

Non‑specialised wholesale trade

 

 

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

Payment Behaviour :

--

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


Company name

 

Love Brothers Co.

 

 

Rating Briefing

 

 

 

      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 Briefing

 

      Registration Number:                       N/A

 

      Registration Date:                            N/A

 

      Legal Form:                                     LEGAL STRUCTURE NOT ASCERTAINED

 

      Latest Financials:                            N/A

 

 

Financial Briefing

 

      Nominal Capital:                              N/A

 

      Issued Capital:                                 N/A

 

      Turnover:                                         N/A

 

      Net Profit:                                        N/A

 

      Net Worth:                                       N/A

 

 

Company Details

 

      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

 

 

Registration & Legal Details

 

      Current Legal Form:                             LEGAL STRUCTURE NOT ASCERTAINED

      Registration Address:                           2nd Sheikh Umar Street, Bus Garage,

                                                                Baghdad

 

 

Capital

 

      Capital is NOT disclosed.

 

Shareholders / Owners

 

 

          Information on Shareholders is not available/applicable

 

 

 

Principals

 

        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

 

Company Activities

 

        NACE Codes:  4690           Non‑specialised wholesale trade

 

 

Operations

 

         HQ Premises       Location:           Central Business Area

 

Related Companies

 

         Subsidiaries

         Affiliates             Information on Related Companies is not available/applicable

 

 

Bankers

 

        Information on Bankers is not available/applicable

 

Payments

 

       Subject's payments reported to be: UNDETERMINED

 

 

Interview & Reporter Comments

 

            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

UK Pound

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%)

 

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