MIRA INFORM REPORT

Report Date :

02.12.2014

IDENTIFICATION DETAILS

Name :	RAIL MEX INDUSTRIES S.A. DE C.V.
Registered Office :	Dr. Roberto Michel No. 825, Colonia San Carlos, C.P. 44460, Guadalajara, Jalisco
Country :	Mexico
Date of Incorporation :	September, 2002
Legal Form :	Sociedad Anonima de Capital Variable
Line of Business :	Subject is engaged in providing Automotive Repair & Maintenance Services
No of Employees :	14

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 :	Unknown
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 – June 1, 2014

Country Name	Previous Rating (31.03.2014)	Current Rating (01.06.2014)
Mexico	A2	A2

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

MEXICO - ECONOMIC OVERVIEW

Mexico's $1.3 trillion economy has become increasingly oriented toward manufacturing in the 20 years since the North American Free Trade Agreement (NAFTA) entered into force. Per capita income is roughly one-third that of the US; income distribution remains highly unequal. Mexico has become the United States' second-largest export market and third-largest source of imports. In 2013, two-way merchandise trade reached nearly $507 billion. Mexico has free trade agreements with over 50 countries including Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan - putting more than 90% of trade under free trade agreements. In 2012 Mexico formally joined the Trans-Pacific Partnership negotiations and formed the Pacific Alliance with Peru, Colombia and Chile. Mexico's current government, led by President Enrique PENA NIETO, emphasized economic reforms during its first year in office, passing education, energy, financial, fiscal and telecommunications reform legislation. The three-party "Pact for Mexico" reform agenda aims to improve competitiveness and economic growth across the Mexican economy.

Source : CIA

STATUTORY INFORMATION
Legal Name:	RAIL MEX INDUSTRIES S.A. DE C.V.
Trade Name:	RAIL MEX INDUSTRIES
RFC:	RMI-020920-7F5
Date Created:	2000
Date Incorporated:	September, 2002
Legal Address:	Dr. Roberto Michel No. 825, Colonia San Carlos, C.P. 44460, Guadalajara, Jalisco
Operative Address:	Dr. Roberto Michel No. 825, Colonia San Carlos, C.P. 44460, Guadalajara, Jalisco
Telephone:	0133 31 22 24 01
Fax:	0133 31 22 24 01
Legal Form:	Sociedad Anonima de Capital Variable
Email:	administracion@railmex.com.mx
Registered in:	468: CANACO SERVYTUR GUADALAJARA, Mexico
Website:	www.railmex.com.mx
Manager:	Victor Trejo
Staff:	14
Activity:	Automotive Repair & Maintenance Services
SIC CODE:	7532
BANKS
Name of the Bank:	Banco de Mexico
The company does not make its banking information public.
HISTORY
In year 2000, Victor Trejo represented Harsco Track Technologies (now Harsco Rail). On Septmber 2002, in Mexico City, Rail Mex Industries S.A de C.V. is formed, still representing Harsco Rail. Due to mexican laws, it's allowed to provide all type of services. Experience in the automotive industry from 1987 to 2000, developing its activities in Ford brand agencies as Sales Manager, Fleet Manager and Special Sales Manger. By the beginning of year 2000, he initiated in the railway branch as representative of the firm Harsco Track Technologies (now Harsco Rail), which is engaged in the manufacture of machinery and equipment for the conservation of railways. Given this experience is how the company Rail Mex Industries, SA of C.V. is formed
PRINCIPAL ACTIVITY
Mex Rail Industries has been established, in the railway field, as an integrator of automotive services for units which maintain conservation railroads, with the provision of value added services on the place where the unit is developing its work. Such maintenance is composed of two stages: Automotive Unit. Hy Rail Unit.
Products/Services description:	To mileages: 5,000, 15,000, 25,000, 35,000 and 45,000 Change engine oil and filter lubrication Brakes Review Review tire wear, rotate and adjust tire pressure. Review of levels and leaks. Multipoint review. Hy-Rai Manual Alignment Adjust. Weight. Lubrication of components. Hy Rail Electric Revision of electrical system Switch engines Connection and facilities. Amperage.
Brands:	Ford Motor Co. Mexpasa Harsco Track Technologies
Sales are:	Retail
Clients:	FERROMEX
Suppliers:	Ford Motor Co. Harsco Track Technologies
Operations area:	Local
The company imports from	USA
The company does not export
The subject employs	14 employees
Payments:	Unknown
LOCATION
Headquarters :	Dr. Roberto Michel No. 825, Colonia San Carlos, C.P. 44460, Guadalajara, Jalisco
Branches:	The company has a workshop in Guadalajara
Business Overview:	Companies in this industry provide repair and maintenance services for passenger cars and light trucks. Demand depends on car usage and the number of cars on the road. The profitability of individual companies depends on convenient location and good marketing. Large companies can maximize use of expensive diagnostic equipment and have advantages in purchasing, distribution, and marketing. Small companies can compete effectively by providing superior customer service or offering specialized services Major services include mechanical repair (about 50 percent of US industry revenue), collision repair (30 percent) car washes (10 percent), and oil change and lube (10 percent). Mechanical jobs are classified as repairs to undercar systems (mufflers and exhausts, transmissions, brakes, and shock absorbers) or underhood systems (engines, electrical systems, radiators). Body work includes exterior and interior repair and glass replacement. Companies may also sell parts for do-it-yourselfers (DIY).
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	NA
Shareholders %:	This is a private company. The main shareholder is: Lic. Victor Trejo Elizalde
Management:	Lic. Victor Trejo Elizalde, Owner Lic. Grabiela Jaimes, Administrative
Subsidiary Companies:	No subsidiary companies
FINANCIAL INFORMATION
This is a private company which does not make its financial statements public- the following information has been provided by outside sources.
Year	2013
Currency	Pesos Mexicanos
Revenue	19 500 000
Cash flow	Normal
LEGAL FILINGS
The company does not show legal/crimminal
SUMMARY
Rail Mex Industries is a Mexican company dedicated to provide maintenance and repair automotive services. The company works mainly with Ford Motor Co. & Harsco Track Technologies tools and its main client is Ferromex. The company has 14 years of experience in the market with a small sized structure. We have tried to contact the company several times but received no response. We suggest working with a medium credit line and monitoring the company for the following 12 months.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	Unknown
CASH FLOW	Normal
ENTERVIEW
NAME	NA
POSITION	NA
COMMENTS	Despite our several tries, we coould not contact the company since we received no answer.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.14
UK Pound	1	Rs.97.05
Euro	1	Rs.77.37

INFORMATION DETAILS

Analysis Done by :	DIV
Report Prepared by :	SMN

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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