|
Report Date : |
06.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
BOSTON SCIENTIFIC CORPORATION |
|
|
|
|
Registered Office : |
One Boston Scientific Place, Natick, MA 01760 |
|
|
|
|
Country : |
United States |
|
|
|
|
Date of Incorporation : |
22.06.1979 |
|
|
|
|
Legal Form : |
Public Company |
|
|
|
|
Line of Business : |
Develops, Manufactures, and Markets Medical Devices Used in Various
Interventional Medical Specialties Worldwide. |
|
|
|
|
No. of Employees : |
24,000 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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: BOSTON
SCIENTIFIC CORPORATION
Address: One Boston Scientific Place, Natick,
MA 01760 - USA
Telephone: +1
508-650-8000
Fax: +1 508-650-8923
Website: www.bostonscientific.com
Corporate ID#: 0874815
State: Delaware
Judicial form: Public Company (NYSE = BSX)
Date incorporated: 06-22-1979
Stock: 2,000,000,000
shares common
(1,521,006,390 shares issued and outstanding)
50,000 shares preferred (none issued)
Value: USD
0.01= par value
Name of manager: Michael
F. MAHONEY
Business:
Boston Scientific Corporation develops, manufactures, and markets
medical devices used in various interventional medical specialties worldwide.
The company offers interventional cardiology products, including
coronary stent systems used in the treatment of coronary artery disease;
coronary technology products, such as balloon catheters, rotational atherectomy
systems, guide wires, guide catheters, embolic protection devices, and
diagnostic catheters used in percutaneous transluminal coronary angioplasty;
intraluminal ultrasound imaging catheters and systems for use in coronary
arteries and heart chambers, as well as peripheral vessels; and structural
heart therapy systems.
It also provides cardiac rhythm management devices consisting of
implantable cardioverter defibrillator systems to detect and treat abnormally
fast heart rhythms; and implantable pacemaker systems, including implantable
cardiac resynchronization therapy pacemaker systems to treat heart failure.
In addition, the company offers endoscopy products, such as devices to
treat diseases of the digestive and pulmonary systems; and peripheral
interventions to diagnose and treat peripheral vascular disease.
Further, it provides stone management products comprising ureteral
stents, wires, lithotripsy devices, stone retrieval devices, sheaths, balloons,
and catheters to treat urinary stone disease and benign prostatic hyperplasia;
and mid-urethral sling products, sling materials, graft materials, pelvic floor
reconstruction kits, and suturing devices for women's health.
Additionally, it provides neuromodulation products used for the
management of chronic pain; and medical technologies used in the diagnosis and
treatment of rate and rhythm disorders of the heart, such as radio frequency
(RF) generators, steerable RF ablation catheters, intracardiac ultrasound
catheters, diagnostic catheters, delivery sheaths, and other accessories.
The company was founded in 1979 and is headquartered in Natick,
Massachusetts.
EIN: 04-2695240
Staff: 24,000
Operations & branches:
At the headquarters, we
find the corporate office, on lease.
The Company maintains
several branches in the U.S. and worldwide.
Shareholders:
This Company is listed with
the NYSE under symbol BSX.
86% of the stock is held by
institutional and mutual fund owners, including:
|
Dodge & Cox Inc |
7.22% |
|
Vanguard Group, Inc. (The) |
5.97% |
|
Wellington Management Company, LLP |
5.27% |
|
State Street Corporation |
4.23% |
|
Dodge & Cox Stock Fund |
4.21% |
Management:
Michael F. MAHONEY is the President and CEO.
He is the Chief Executive Officer of Boston Scientific
Corporation since November 1, 2012 and as its President since October 17, 2011.
At Boston Scientific Corporation, Mr. Mahoney is responsible for Boston
Scientific's Cardiac Rhythm Management (CRM) and Endoscopy (GI and Pulmonary)
businesses, as well as certain corporate functions. He joined Boston Scientific
in October 2011, having established a track record of more than 22 years of healthcare experience in building
market leading global businesses in medical devices, capital equipment, and healthcare
IT service businesses at best-in-class companies. Prior to joining Boston
Scientific, he served as Worldwide Chairman of Medical Device and Diagnostics
Group (MD&D) at Johnson & Johnson since January 3, 2011. He served as a
Group Chairman, DePuy Franchise of Johnson & Johnson until January 3, 2011.
In this role, he successfully drove a growth strategy via product innovation,
multiple acquisitions, and International expansion, particularly in China and
India. Prior to joining Johnson & Johnson, Mr. Mahoney served as the
President and Chief Executive Officer of Global Healthcare Exchange (GHX). He
built Global Healthcare Exchange through organic development and strategic
acquisitions, successfully integrating seven acquisitions and expanding the business
into Europe and Canada.
He built his early career at General Electric
Medical Systems, where he spent 12 years, in a variety of advancing leadership
roles for domestic and global businesses in CT, MRI, X-ray, Healthcare IT, and
Nuclear Medicine, culminating in the role of General Manager of the Healthcare
Information Technology business. He serves as a Director of Boston Scientific
Corporation.
Mr. Mahoney earned a B.B.A. in Finance from the
University of Iowa and a M.B.A. from Wake Forest University.
Jeffrey CAPELLO is the CFO.
Subsidiaries
And partnership: Numerous
in the U.S. and worldwide.
On April 25, 2013, Boston Scientific Corporation reported unaudited
consolidated earnings results for the first quarter ended March 31, 2013.
For the quarter, the company reported net sales of $1,761 million
compared to $1,866 million a year ago. Operating loss was $330 million compared
to operating income of $196 million a year ago. Loss before income taxes was
$394 million compared to income before income taxes of $123 million a year ago.
Net loss was $354 million or $0.26 per basic and diluted share compared
to net income of $113 million or $0.08 per basic and diluted share a year ago.
Adjusted net income was $224 million or $0.16 per diluted share compared to
$220 million or $0.15 per diluted share a year ago. The company generated
operating cash flow of $163 million. The company reported a GAAP loss of $0.26
per share, primarily due to the impact of an estimated $422 million ($423
million pre-tax) goodwill impairment charge. Capital expenditures were $53
million in the first quarter 2013 compared to $66 million in the first quarter
of last year.
The company provided earnings guidance for the second quarter and full
year 2013. For the quarter, the company estimates sales in a range of $1.740
billion to $1.800 billion. The company estimates earnings on a GAAP basis in a
range of $0.07 to $0.10 per share. Adjusted earnings, excluding acquisition-
and restructuring-related charges; and amortization expense, are estimated in a
range of $0.14 to $0.17 per share. The company expects reported GAAP EPS to be
in the range of $0.07 to $0.10 per share, which includes an estimated $0.07 per
share impact from amortization expense. For the full year, the company
estimates sales in a range of $6.950 billion to $7.150 billion. The company
estimates losses on a GAAP basis in a range of $0.06 to earnings $0.01 per
share. Adjusted earnings, excluding goodwill impairment charges, acquisition-,
restructuring-, and litigation-related charges, divestiture-related net credits
and amortization expense; are estimated in a range of $0.65 to $0.70 per share.
The company estimates full year tax -- adjusted tax rate to be between 10% to
12%. This excludes any of the discrete tax items that may arise during the
year. On a reported GAAP basis, the company now expects EPS for the year to be
in the range of $0.01 per share to a net loss of $0.06 per share. The company
continues to expect full year 2013 adjusted free cash flow to be approximately
$1.2 billion. The company reported goodwill impairment charge of $423 million
for the first quarter ended March 31, 2013.
On attachment:
- 10K 2012
Banks: JPMorgan Chase Bank
Legal filings
& complaints:
There are several cases pending with various Courts, including the
following:
On April 30, 2013, OrbusNeich Medical Inc. and its unit, OrbusNeich
Medical GmbH together announced that they gained a preliminary injunction from
the Dusseldorf Regional Court in the stent patent infringement proceedings
against Boston Scientific Corporation (BSX) and its German distribution unit.
OrbusNeich had filed suit in the German Court in February, charging Boston
Scientific with infringing two patents covering certain novel stent designs
developed by OrbusNeich. Now, the court found that the stent design of Boston
Scientific's Small Vessel, Small Workhorse and Workhorse stents of the affected
product lines, those used in vessels of 4.0 mm or less in diameter, infringe
the German part of the '482 Patent. OrbusNeich can now prevent Boston
Scientific from selling the affected stent lines in Germany.
The court decision also allows the seizure
of stents Boston Scientific Medizintechnik GmbH sold in Germany, but not used.
Secured
debts summary (UCC):
File number: 201200208720
Date filed: 11-30-2012
Secured Party: GW PLASTICS, INC.
239 PLEASANT STREET, BETHEL VT 05032
File number: 200866688020
Date filed: 06-27-2008
Secured Party: GENERAL ELECTRIC CAPITAL CORPORATION
44 OLD RIDGEBURY ROAD, DANBURY CT 06810
Haut du formulaire
Trade references:
Date reported: March 2013
High credit: USD 50,000
Now owing: 0
Past due: 0
Last purchase: February 2013
Line of business: Office supply
Paying status: 10 days beyond terms
Date reported: March 2013
High credit: USD 30,000,000+
Now owing: 0
Past due: 0
Last purchase: February 2013
Line of business: Payroll
Paying status: As agreed
Date reported: March 2013
High credit: USD 15,000
Now owing: 0
Past due: 0
Last purchase: February 2013
Line of business: Telecommunications
Paying status: On terms
Domestic credit history:
Domestic credit history
appears as follow:
Monthly Payment Trends - Recent Activity
|
Date |
Up to 30 DBT |
31-60 DBT |
61-90 DBT |
>90 DBT |
||
|
11/12 |
$4,345,900 |
75% |
3% |
9% |
5% |
8% |
|
12/12 |
$7,124,300 |
64% |
26% |
3% |
3% |
4% |
|
01/13 |
$5,035,500 |
72% |
10% |
4% |
3% |
11% |
|
02/13 |
$5,331,700 |
61% |
26% |
4% |
1% |
8% |
|
03/13 |
$5,041,700 |
63% |
26% |
4% |
1% |
6% |
|
04/13 |
$5,217,700 |
79% |
12% |
5% |
1% |
3% |
National Credit Bureaus
gave a medium credit rating.
According to our credit analysts, during the last 6 months, payments
were made with an average of 10 to 20 days beyond terms.
International
credit history:
Payments of imports are currently made with an average of 5+ days beyond
terms.
Other comments:
The Company maintains a
regular business.
The bank confirmed late
payments and a low cash.
The Company is in good
standing.
This means that all local
and federal taxes were paid on due date.
The risk is medium/high.
Our opinion:
We suggest you to be
careful.
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 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.53.95 |
|
|
1 |
Rs.83.80 |
|
Euro |
1 |
Rs.70.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.