|
Report Date : |
03.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
PARKER-HANNIFIN CORPORATION |
|
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|
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Registered Office : |
6035 Parkland Blvd, Cleveland, OH 44124 |
|
|
|
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Country : |
United States |
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|
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Financials (as on) : |
30.09.2013 (Unaudited - Consolidated) |
|
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Date of Incorporation : |
31.12.1938 |
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Legal Form : |
Public Company |
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Line of Business : |
Manufacturer of motion and
control technologies and systems, providing precision-engineered solutions
for a wide variety of mobile, industrial and aerospace markets |
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No. of Employees : |
58,000 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Exists |
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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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 $49,800. 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. Crude
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 climbed another 50% between 2006 and 2008,
and bank foreclosures more than doubled in the same period. Besides dampening
the housing market, soaring oil prices caused a drop in the value of the dollar
and a deterioration in the US merchandise trade deficit, which peaked at $840
billion in 2008. The sub-prime mortgage crisis, falling home prices, investment
bank failures, tight credit, and the global economic downturn 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. In 2012 the federal government reduced the growth of
spending and the deficit shrank to 7.6% of GDP. Wars in Iraq and Afghanistan
required major shifts in national resources from civilian to military purposes
and contributed to the growth of the budget deficit and public debt. Through
2011, the direct costs of the wars totaled nearly $900 billion, according to US
government figures. US revenues from taxes and other sources are lower, as a
percentage of GDP, than those of most other countries. In March 2010, President
OBAMA signed into law the Patient Protection and Affordable Care Act, a health
insurance reform 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. In December 2012, the Federal
Reserve Board announced plans to purchase $85 billion per month of
mortgage-backed and Treasury securities in an effort to hold down long-term
interest rates, and to keep short term rates near zero until unemployment drops
to 6.5% from the December rate of 7.8%, or until inflation rises above 2.5%.
Long-term problems include stagnation of wages for lower-income families,
inadequate investment in deteriorating infrastructure, rapidly rising medical
and pension costs of an aging population, energy shortages, and sizable current
account and budget deficits - including significant budget shortages for state
governments.
|
Source : CIA |
Company name: PARKER-HANNIFIN CORPORATION
Address: 6035 Parkland Blvd, Cleveland, OH
44124 - USA
Telephone: +1
216-896-3000
Fax: +1 216-896-4000
Website: www.parker.com
Corporate ID#: 175411
State: Ohio
Judicial form: Public Company (NYSE = PH)
Date founded: 12-31-1938
Stock: As
of 09-30-2013, 149,235,808 shares issued outstanding
Value: USD
0.50= par value
Name of manager: Donald
E. WASHKEWICZ
Business:
Parker-Hannifin Corporation manufactures
of motion and control technologies and systems, providing precision-engineered
solutions for a wide variety of mobile, industrial and aerospace markets
Its Industrial segment provides pneumatic and electromechanical
components and systems; filters, systems, and instruments to monitor and remove
contaminants from fuel, air, oil, water, and other liquids and gases;
connectors, which control, transmit, and contain fluid; hydraulic components
and systems for builders and users of industrial and mobile machinery and
equipment; critical flow components for process instrumentation, healthcare,
and ultra-high-purity applications; and static and dynamic sealing devices.
This segment sells its products to original equipment manufacturers and
their replacement markets in manufacturing, transportation, and processing
industries. The company’s Aerospace segment offers flight control, hydraulic,
fuel, fluid conveyance, and engine systems and components for commercial and
military airframe and engine programs.
It also provides electronics thermal management heat rejection systems,
and single-phase and two-phase heat collection systems for radar, ISAR, and
power electronics. This segment markets its products directly to original
equipment manufacturers and end users in the commercial and military aerospace
markets. Its Climate & Industrial Controls segment offers systems and
components primarily for use in the mobile and stationary refrigeration, and
air conditioning industry; and in fluid control applications in various
industries, such as processing, fuel dispensing, beverage dispensing, and
mobile emissions. This segment serves original equipment manufacturers and
their replacement markets.
The company markets its products through direct-sales employees,
independent distributors, and sales representatives.
Parker-Hannifin Corporation was founded in 1918 and is headquartered in
Cleveland, Ohio.
Staff: 58,000
Operations & branches:
At the headquarters, we
find a large factory, warehouse and office, owned.
The Company maintains numerous
branches in the U.S. including the one located:
30240 Lakeland Blvd
Wickliffe, OH 44092
Shareholders:
As of 09-30-2013, 84% of
the stock is held by institutional and mutual fund owners including:
|
Capital World Investors |
10.66% |
|
Vanguard Group, Inc. (The) |
5.30% |
|
Fundamental Investors Inc |
4.93% |
|
Harris Associates L.P. |
3.45% |
|
State Street Corporation |
4.27% |
Management:
Donald E. WASHKEWICZ is the
Chairman, President and CEO.
Born in 1949.
Donald E. Washkewicz, Don has been Chairman of Parker Hannifin
Corporation since October 27, 2004 and its President since January 1, 2007 and
Chief Executive Officer since July 2001.
Mr. Washkewicz served as President of Parker Hannifin Corporation from February
2000 to October 2004 and its Chief Operating Officer from February 2000 to July
2001.
He served as Vice President of Parker Hannifin Corporation and President
of the Hydraulics Group of Parker Hannifin Corporation from October 1997 to
February 2000.
Mr. Washkewicz also served as Vice President-Operations of the Fluid
Connectors Group of Parker Hannifin Corporation from October 1994 to October
1997. He has 31-year career with Parker Hannifin Corporation.
He has been Director of Parker Hannifin Corporation since February 2000.
He serves as Member of the Board of Directors and Trustee of
Manufacturers Alliance/MAPI Inc.
Mr. Washkewicz graduated from Cleveland State University, where he
earned a degree in Mechanical Engineering. He also holds a Masters of Business
Administration from Case Western Reserve.
Jon P. MARTEN is Vice
President and CFO.
Subsidiaries & Partnership:
Numerous subsidiaries in
the U.S. and worldwide.
On attachment:
10K for year ending June
2013.
10Q for quarter ending
September 2013
On January 22, 2014, Parker-Hannifin Corporation reported unaudited
consolidated earnings for the second quarter and six months ended December 31,
2013. For the quarter, net sales were $3,106,006,000 against $3,065,495,000 for
the same period in the last year. Income before income taxes was $495,316,000
against $262,629,000 for the same period in the last year. Net income
attributable to common shareholders was $253,288,000 or $1.66 per diluted share
against $180,962,000 or $1.19 per diluted share for the same period in the last
year. Adjusted net income was $189,940,000 or $1.24 per diluted share against
$181,114,000 or $1.19 per diluted share for the same period in the last year.
Income before interest and other was $333,041,000 against $322,249,000 for the
same period in the last year. Fiscal 2014 second quarter adjusted net income
and earnings per diluted share exclude asset write downs and a previously
announced gain associated with a joint venture agreement between Parker Aerospace
and GE Aviation.
For the six months, net sales were $6,332,150,000 against $6,280,430,000
for the same period in the last year. Income before income taxes was
$819,406,000 against $598,687,000 for the same period in the last year.
Net income attributable to common shareholders was $497,604,000 or $3.28
per diluted share against $420,703,000 or $2.77 per diluted share for the same
period in the last year. Adjusted net income was $434,260,000 or $2.86 per
diluted share against $421,062,000 or $2.77 per diluted share for the same
period in the last year. Income before interest and other was $750,737,000
against $745,053,000 for the same period in the last year.
Net cash provided by operating activities was $540,109,000 against
$347,338,000 for the same period in the last year. Capital expenditures were
$111,847,000 against $140,221,000 for the same period in the last year.
Goodwill and intangible asset impairment for the second quarter of fiscal 2014
was $188,870,000.
For the fiscal year ending June 30, 2014, the company has provided
guidance for adjusted earnings per diluted share in the range of $6.20 to
$6.60. Fiscal 2014 adjusted earnings guidance includes previously announced
restructuring expenses of approximately $0.47 per diluted share, but does not
include the following non-recurring items: a gain of $1.68 per diluted share
associated with the previously announced joint venture agreement between Parker
Aerospace and GE Aviation and asset write downs of $1.26 earnings per diluted
share recorded in the quarter ended December 31, 2013.
Restructuring expenses were $0.07 per diluted share in the second
quarter of fiscal 2014 and $0.13 per diluted share year-to-date. The company
expects earnings per diluted share to be in the range of $6.62 - $7.02. The
full year tax rate is now at 34.4%.
Banks: JP Morgan Chase Bank
Legal filings & complaints: Several
cases pending in various Courts
Secured debts summary (UCC):
Several
Trade references:
Date reported: December 2013
High credit: USD 200,000
Now owing: 0
Past due: 0
Last purchase: November 2013
Line of business: Office supply
Paying status: On terms
Date reported: December 2013
High credit: USD 60,000,000+
Now owing: 0
Past due: 0
Last purchase: November 2013
Line of business: Payroll
Paying status: As agreed
Date reported: December 2013
High credit: USD 12,000
Now owing: 0
Past due: 0
Last purchase: November 2013
Line of business: Telecommunications
Paying status: On terms
Domestic credit history:
National Credit Bureaus
gave a satisfying credit rating.
According to our credit analysts, during the last 6 months, domestic
payments were made on due date.
International
credit history:
Payments of imports are currently on days beyond terms.
Other comments:
The Company maintains a
regular business.
The Company is in good
standing.
This means that all local
and federal taxes were paid on due date.
The risk is low.
Our opinion:
A business connection may
be conducted.
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 lowered our long-term sovereign
credit rating on the United States of America to 'AA+' from 'AAA' and affirmed
the 'A-1+' short-term rating.
·
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.62.48 |
|
UK Pound |
1 |
Rs.102.95 |
|
Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.