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Report Date : |
15.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
ZALE DELAWARE INC. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
14.02.1986 |
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Legal Form : |
Corporation – Profit |
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Line of Business : |
Subject is operates as a specialty retailer of fine jewelry |
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No. of Employees : |
12,500 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
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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 |
UNITED STATES - ECONOMIC OVERVIEW
The
|
Source
: CIA |
ZALES DELAWARE INC.
The correct name is: ZALE DELAWARE INC.
Company name: ZALE DELAWARE INC.
Address:
Telephone: +1 972-580-4000
Fax: +1 972-580-5547
Website: www.zalecorp.com
Corporate ID#: 2083487
State:
Judicial form: Corporation – Profit
Date incorporated: 02-14-1986
Stock: -
Value: -
Name of
manager: Theophlius KILLION
Business:
Zale
The group operates through three segments: Fine Jewelry, Kiosk Jewelry, and All Other.
The Fine Jewelry segment operates 614 stores and 127 Zales Outlet stores that offer bridal designs, branded watches, gemstones, gold merchandise, diamond fashion, and solitaire products under the Zales Jewelers brand; and 146 stores in 9 provinces providing gold jewelry, gemstone jewelry, and watches under the Peoples Jewellers brand.
It also operates 122 stores in 24 states and Puerto Rico that offer bridal designs, branded watches, gemstones, gold merchandise, and diamond fashion and solitaire products under the Gordon's Jewelers brand; and 55 stores in 6 provinces providing bridal assortment and branded jewelry under the Mappins Jewellers brand, as well as operates e-commerce sites, including zales.com, zalesoutlet.com, peoplesjewellers.com, pagoda.com, and gordonsjewelers.com. This segment also provides repair services to customers.
The Kiosk Jewelry segment offers bracelets, earrings, charms, rings, non-precious metal products, and gold chains, as well as silver and diamond jewelry under the Piercing Pagoda and Plumb Gold brands through 630 mall-based kiosks. This segment also provides ear-piercing services.
The All Other segment offers insurance and reinsurance services for a range of insurance coverage, such as merchandise replacement coverage, group life insurance coverage, and credit insurance coverage.
The company was founded in 1924 and is based in
Office of the Foreign Assets Control (OFAC):
The company is not listed on the OFAC list.
The Specially Designated Nationals (SDN) List is a
publication of OFAC which lists individuals and organizations with whom
The Company imports mainly from
EIN: 75-2080834
Staff: 12,500 (for the group)
Operations
& branches:
At the
headquarters, we find the corporate office.
Shareholders:
ZALE CORPORATION
Incorporated
in
ID# 2261333
As of May 29, 2014, Zale Corporation operates as a subsidiary of:
Signet Jewelers Limited.
Clarendon
House
Management:
Theophlius KILLION is the President, Director and CEO
Mr. Theophlius Killion, Theo has been the Chief Executive Officer of Zale Corporation at Piercing Pagoda, Inc. since September 23, 2010 and has been its President since August 2008. Mr. Killion served as an Interim Chief Executive Officer of Zale Corporation from January 13, 2010 to September 23, 2010.
He served as an Executive Vice President of Human Resources, Legal and Corporate Strategy for Zale Corporation from January 2008 to August 2008.
He worked at executive recruiting firm Berglass+Associates, focused on companies in the retail, consumer goods and fashion industries.
He served as an Executive Vice President of Human Resources
Division of Tommy Hilfiger B.V. since January 2005 and for its subsidiary,
Tommy Hilfiger
His responsibilities entailed worldwide HR strategies and initiatives that included recruitment and retention, training and development, compensation and benefits and performance management.
Mr. Killion served as the Vice President of Human Resources of The Limited Brands from January 1996 to March 2004 and also served as its Corporate Vice President of HR for Merchandising and Design.
Mr. Killion served senior human resource roles at Macy's East and The Home Shopping Network. He has 30 years of Leadership experience. He has been a Director at Express Inc. since April 2012. He has been a Director at Zale Corporation since September 23, 2010.
Mr. Killion holds a graduate degree in Marketing from
Mr. Thomas A. HAUBENSTRICKER is the Chief Financial Officer and Senior Vice President.
Subsidiaries
And partnership:
Zale Puerto Rico, Inc.
Dobbins Jewelers, Inc.
Zale Life Insurance Company
Zale Indemnity Company
Jewel Re-Insurance Ltd.
Zale Employees Child Care Association, Inc.
ZAP, Inc.
TXDC, LP (ZCGO, LLC Limited Partner)
ZCGO, LLC Virginia
ZCSC, LLC
In
On a direct
call, a financial assistant controlled the present report and confirmed that
all financials are consolidated into the parent company.
Banks: Citibank
...
Legal filings & complaints:
As of today date, there are several legal filing pending with various Courts.
Secured debts summary (UCC): None
Haut du formulaire
Trade
references:
Date
reported: November 2014
High
credit: USD 30,000
Now owing: 0
Past due: 0
Last
purchase: October 2014
Line of
business: Office supply
Paying
status: 5 days terms
Date
reported: November 2014
High
credit: USD 18,000,000+
Now owing: 0
Past due: 0
Last
purchase: October 2014
Line of
business: Payroll
Paying
status: As agreed
Date
reported: November 2014
High
credit: USD 20,000+
Now owing: 0
Past due: 0
Last
purchase: October 2014
Line of
business: Telecommunications
Paying
status: 5 days beyond terms
Domestic
credit history:
Domestic credit
history appears as follow:
|
Monthly Payment
Trends - Recent Activity |
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|
|
|
National
Credit Bureaus gave a medium credit rating.
According to our credit analysts, during the last 6 months, domestic payments were made with an average of 5 days beyond terms.
International credit history:
Payments of imports are currently made with an average of 2 to 5 days beyond terms.
Other
comments:
The bank
confirmed late payments.
The Company
is in good standing.
This means
that all local and federal taxes were paid on due date.
The risk is
medium.
Our
opinion:
A business connection
may be conducted but we suggest you to check regularly the way of payments.
However, we
suggest you a report on the parent company.
DIAMOND INDUSTRY –
-
From
time immemorial,
-
The
achievement of the Indian diamond industry was possible only due to combination
of the manufacturing skills of the Indian workforce and the untiring and
unflagging efforts of the Indian diamantaires, supported by progressive
Government policies.
-
The
area of study of family owned diamond businesses derives its importance from
the huge conglomerate of family run organizations which operate in the diamond
industry since many generations.
-
Some
of the basic traits of family run business enterprises include spirit of
entrepreneurship, mutual trust lowers transaction costs, small, nimble and
quick to react, information as a source of advantage and philanthropy.
-
Family
owned diamond businesses need to improve on many fronts including higher
standard of corporate governance, long-term performance – focused strategies,
modern management and technology.
-
Utmost
caution is to be exercised while dealing with some medium and large diamond
traders which are usually engaged in fictitious import – export, inter-company
transactions, financially assisted by banks. In the process, several public
sector banks lost several hundred million rupees. They mostly diverted borrowed
money for diamond business into real estate and capital markets.
-
Excerpts
from Times of India dated 30th October 2010 is as under –
-
Gem
& Jewellery Export Promotion Council in its statistical data has shown the
export of polished diamonds to have increase by 28 % in February 2013. Compared
to $ 1.4 bn worth of polished diamond export in February, 2012,
-
The
banking sector has started exercising restraint while following prudent risk
management norms when lending money to gems and jewellery sector. This follows
the implementation of Basel III accord – a global voluntary regulatory standard
on bank capital adequacy, stress testing and market liquidity.
Standard & Poor’s
|
|
|
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.
The
transfer and convertibility (T&C) assessment of the
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
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
The
political brinksmanship of recent months highlights what we see as
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
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
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
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
Standard & Poor's
transfer T&C assessment of the
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.62.44 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
|
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.