MIRA INFORM REPORT

Report Date :

08.11.2013

IDENTIFICATION DETAILS

Name :	SUEZ STEEL CO (SSC)

Registered Office :	Adabeya Port, Ataka, P O Box 35, Suez

Country :	Egypt

Financials (as on) :	31.12.2012

Year of Establishment :	1997

Com. Reg. No.:	31285, Suez

Legal Form :	Egyptian Joint Stock Company

Line of Business :	Production and export of steel billets

No. of Employees :	2,000

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Good

Payment Behaviour :	Regular

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 – March 31^st, 2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Egypt

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

EGYPT - ECONOMIC OVERVIEW

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 aggressively pursued economic reforms to attract foreign investment and facilitate GDP growth. Despite the relatively high levels of economic growth in recent years, living conditions for the average Egyptian remained poor and contributed to public discontent. After unrest erupted in January 2011, the Egyptian Government backtracked on economic reforms, drastically increasing social spending to address public dissatisfaction, but political uncertainty at the same time caused economic growth to slow significantly, reducing the government's revenues. Tourism, manufacturing, and construction were among the hardest hit sectors of the Egyptian economy, and economic growth is likely to remain slow during the next several years. The government drew down foreign exchange reserves by more than 50% in 2011 and 2012 to support the Egyptian pound and the dearth of foreign financial assistance - as a result of unsuccessful negotiations with the International Monetary Fund over a multi-billion dollar loan agreement which have dragged on more than 20 months - could precipitate fiscal and balance of payments crises in 2013.

Source : CIA

SUMMARY

Company Name : SUEZ STEEL CO (SSC)

Country of Origin : Egypt

Legal Form : Egyptian Joint Stock Company

Registration Date : 1997

Commercial Registration Number : 31285, Suez

Issued Capital : £E 1,400,000,000

Paid up Capital : £E 1,400,000,000

Total Workforce : 2,000

Activities : Production and export of steel billets

Financial Condition : Good

Payments : Nothing detrimental uncovered

Operating Trend : Steady

Person Interviewed : Hassan El Gamasy, Finance Manager

COMPANY NAME

SUEZ STEEL CO (SSC)

ADDRESS

Registered & Physical Address

Location : Adabeya Port

Area : Ataka

PO Box : 35

Town : Suez

Country : Egypt

Telephone : (20-62) 3230811 / 3230803 / 3230805 / 3230807 / 3230806 / 3230808

Facsimile : (20-62) 3230804 / 3230816 / 3230800 / 3230802

Mobile : (20-100) 5439739

Email : info@suezsteel.com / Hassan.elgamasy@suezsteel.com

Premises

Subject operates from a large suite of offices and production facilities that are owned and located in the Industrial Area of Suez.

Branch Office (s)

Location Description

· 34 Syria Street Rented office premises

3^rd Floor, Flat No. 7

Mohandessin

Cairo

Tel: (20-2) 23744108 / 3747109

Fax: (20-2) 37497692

· 112 26^th July Street Rented office premises

Zamalek

Cairo

Tel: (20-2) 27360715

Fax: (20-2) 27360017

KEY PRINCIPALS

Name Position

· Gamal El Garhy Chairman

· Rafik El Daw Managing Director

· Abdel Karim Mohamed El Rafaie Director

· Ashraf Abdel Hamid Abdel Rehim Director

· Medhat Kabary Abdel Tawab Director

· Hesham Bolous El Daw Director

· Hassan El Gamasy Finance Manager

· Wael Fathi Accounts Manager

· Mohamed Omara Administration Manager

· Fouda Zaki Purchasing Manager

· Tarek Darwish Commercial Manager

· Sayed Abdel Rahman Human Resources Manager

· Rony Assaf Factory Manager

· Samir Naga Consultant

LEGAL FORM & OWNERS

Date of Establishment : 1997

Legal Form : Egyptian Joint Stock Company

Commercial Reg. No. : 31285, Suez

Authorised Capital : £E 4,000,000,000

Issued Capital : £E 1,400,000,000

Paid up Capital : £E 1,400,000,000

Name of Shareholder (s) Percentage

· Solb Misr 99.9%

Cairo

Tel: (20-2) 37497108

Fax: (20-2) 37497109

· Private investors and businessmen 0.1%

OPERATIONS

Activities: Engaged in the production and export of steel billets. The reinforcing steel rolling mill has an annual

production capacity of 550,000 mt of long products. In 2011, subject inaugurated a new rolling mill which was part of Suez Steel's comprehensive development plan, which also included also the construction of a new direct reduction mill with an annual capacity of 1.95 million mt, and the construction of a new steel billets mill with a capacity of 2.06 million mt, both of which came on stream in 2011. The total cost of the company's expansion project amounted to £E 6 billion.

Production Capacity: 50,000 tonnes per month

Import Countries: Turkey, Italy, China, South Korea, United States, Canada, Australia, Switzerland and Germany

Export Countries: Jordan, United Arab Emirates, Sudan. Lebanon, Argentina and Saudi Arabia

Operating Trend: Steady

Subject has a workforce of approximately 2,000 employees.

FINANCIAL DATA

Financial highlights provided by local sources are given below:

Currency: Egyptian Pounds (£E)

Year Ending 31/12/11: Year Ending 31/12/12: Period Ending 31/09/2013:

Total Sales £E 2,916,161,610 £E 2,728,123,620 £E 3,500,000,000

Local sources consider subject’s financial condition to be Good.

The above figures were provided by Mr Hassan El Gamasy, Finance Manager

BANKERS

· National Bank of Egypt

24 Sherif Street

Cairo

Tel: (20-2) 23924175

Fax: (20-2) 23924143

· Banque du Caire SAE

22 Adly Street

PO Box: 1495

Cairo

Tel: (20-2) 23904554

Fax: (20-2) 23908992

· BNP Paribas Egypt

4A Ibn Zinky Street

Zamalek

Cairo

Tel: (20-2) 27377791 / 27377792

Fax: (20-2) 27377793

PAYMENT HISTORY

No complaints regarding subject’s payments have been reported.

Date of transaction January 2006 October 2007

Credit amount 69,000 100,000

Amount overdue 0 0

Payment terms 90 days 60 days

Payment Method Letters of Credit Letters of Credit

Paying record No Complaints No Complaints

Currency Pounds Sterling US Dollars

GENERAL COMMENTS

Please note that Mr. Hassan El Gamasy, Finance Manager, confirmed the subject’s shareholders and line of business but would not comment on their payment track record.

According to local sources, subject enjoys a good reputation for the quality of its products with nothing detrimental uncovered regarding the manner in which operations are conducted. As such the company is considered to be a fair trade risk.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.57
UK Pound	1	Rs.100.63
Euro	1	Rs.84.62

INFORMATION DETAILS

Report Prepared by :

NIT

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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