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Report Date : |
10.09.2013 |
IDENTIFICATION DETAILS
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Name : |
SUEZ STEEL CO (SSC) |
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Registered Office : |
Adabeya Port, Ataka, PO Box : 35 Suez |
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Country : |
Egypt |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
1997 |
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Com. Reg. No.: |
31285 |
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Legal Form : |
Egyptian Joint Stock Company |
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Line of Business : |
Production and export of steel billets |
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No. of Employees : |
1,500 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Egypt |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
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 :
1,500
Activities :
Production and export of steel billets
Financial Condition :
Good
Payments :
Nothing detrimental uncovered
Operating Trend :
Steady
SUEZ STEEL CO (SSC)
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 : (20-10) 5439739
Email : info@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
3rd Floor, Flat No. 7
Mohandessin
Cairo
Tel: (20-2) 23744108 / 3747109
Fax: (20-2) 37497692
112 26th July Street Rented
office premises
Zamalek
Cairo
Tel: (20-2) 27360715
Fax: (20-2) 27360017
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
Adel Ahmed El Sebahy 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
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
Steel Egypt 99.9%
Egypt
Private investors and businessmen 0.1%
Activities: Engaged in the production and export of steel billets.
It is reported that the Egyptian steelmaker Suez Steel Co has started
the test run of its new reinforcing steel rolling mill with an annual
production capacity of 550,000 mt of long products.
The construction of the new reinforcing steel rolling mill, located in
Ataka industrial zone in Suez, amounted
to £E 620 million and is expected to provide 500 new jobs. The mill's
production will be directed to the Egyptian domestic market, which sees
a strong demand for reinforcing steel products.
The new rolling mill is part of the Suez Steel's comprehensive developments plan, which includes also the construction of a new direct reduction mill with an annual capacity of 1.95 million mt, expected to start production in 2011, and the construction of a new steel billets mill with a capacity of 2.06 million mt, which will also come on stream in 2011. The total cost of the company's expansion project will amount 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
1,500 employees.
Financial highlights provided by local sources are given below:
Currency: Egyptian Pounds (£E)
Year Ending 31/12/11: Year Ending 31/12/12:
Total Sales £E
2,916,161,610 £E
3,264,740,346
Local sources consider subject’s financial condition to be Good.
The above financial figures are based on estimations by our local
sources.
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
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
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.65.96 |
|
|
1 |
Rs.102.91 |
|
Euro |
1 |
Rs.86.58 |
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.