|
Report Date : |
12.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
THE DOW CHEMICAL COMPANY |
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Registered Office : |
2030 |
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Country : |
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|
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Financials (as on) : |
30.09.2014 |
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Date of Incorporation : |
11.06.1947 |
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Legal Form : |
Public Company (NYSE = DOW) |
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Line of Business : |
Manufactures and supplies chemical products for use as raw materials in
the manufacture of customer products and services worldwide. |
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No of Employees : |
52,186 |
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 : |
Exist |
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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
UNITED STATES - ECONOMIC OVERVIEW
The
|
Source
: CIA |
THE DOW CHEMICAL
COMPANY
Headquarters: 2030
Telephone: +1
989-636-1000
Fax: +1 989-832-1556
Website: www.dow.com
Corporate ID#: 0414128
State:
Judicial form: Public Company (NYSE = DOW)
Date incorporated: June 11,
1947
Date founded: 1897
Stock: 1,750,000,000
shares
(1,178,650,144 shares issued and outstanding
as of
09-30-2014)
Value: USD
2.50= par value
Name of manager: Andrew
LIVERIS
Business:
The Dow Chemical Company manufactures and supplies chemical products for
use as raw materials in the manufacture of customer products and services
worldwide.
The Electronic and Functional Materials segment produces materials for
chemical mechanical planarization; materials used in the production of electronic
displays, including films and filters; metalorganic precursors for
light-emitting diodes; organic light-emitting diode materials; materials used
in the fabrication of printed circuit boards; integrated metallization
processes for metal finishing and decorative applications; semiconductor design
products; and materials for industrial applications. The Coatings and
Infrastructure Solutions segment provides insulation, air sealing and
weatherization products and systems, construction chemical solutions, building-integrated
photovoltaics, water resistance and lower systems; purification and separation
technologies; and acrylates, methacrylates, and vinyl acetate monomers.
The Agricultural Sciences segment offers crop protection and plant
biotechnology products, urban pest management solutions, seeds, traits, and
oils.
The Performance Materials segment produces amines; chlorinated organics;
materials for automotive systems, formulated systems, and oil and gas, and
mining industrial applications; plastic additives; epoxies; oxygenated
solvents; polyglycols, surfactants, and fluids; polyurethanes; and propylene
oxide/glycol.
The Performance Plastics segment offers elastomers; wire and cable
insulation, semiconductive and jacketing compound solutions, and bio-based
plasticizers; and acrylics, polyethylene, polyethylene, polyolefin emulsions,
and polyolefin plastomers.
The Feedstocks and Energy segment provides ethylene, chlorine, caustic
soda, and purified ethylene oxide.
The Dow Chemical Company was founded in 1897 and is headquartered 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
EIN: 38-1285128
Staff: 52,186
Operations & branches:
At the headquarters, we
find a large manufacture, warehouse and office.
The Company maintains
several branches in the
Shareholders:
The Company is listed with the NYSE under symbol DOW.
As of 06-30-2014, 72% of
the stock was held by institutional and mutual fund owners, including:
|
Vanguard Group, Inc. (The) |
5.52% |
|
Capital World Investors |
5.05% |
|
State Street Corporation |
4.63% |
|
BlackRock Institutional Trust Company, N.A. |
2.61% |
|
Capital Research Global Investors |
2.56% |
Management:
Andrew N. LIVERIS has been an Executive Chairman of The Dow Chemical
Company since April 1, 2006, Chief Executive Officer since November 1, 2004 and
its President since November 11, 2003.
Mr. Liveris served as Chief Executive Officer of Dow AgroSciences LLC.
He served as Chief Operating Officer of The Dow Chemical Company from November
11, 2003 to November 2004. He has spent 33 years at Dow in manufacturing,
engineering, sales, marketing, and business and general management, with
responsibility for all of Dow's businesses. He has spent the majority of his
career in
He serves as the Chairman of the U.S.-China Business Council.
He serves as Vice Chair of The Business Roundtable. He serves as a
Director of US-China Business Council, Inc.; American Chemistry Council, Inc.,
and of CDW Corporation. He has been a Director of The Dow Chemical Company
since February 2004. He has been a Director of International Business Machines
Corporation since February 2010. He serves as a Director of Business Leaders
for
Mr. Liveris received his B.S. degree in chemical engineering from the
Howard I. UNGERLEIDER has been the Chief Financial Officer of The Dow
Chemical Company since October 1, 2014 and serves as its Executive Vice
President.
(list of Directors and officers on attachment)
Subsidiaries &
Partnership: Numerous in the
On attachment
- 10K 2013
- 3rd 10Q 2014
On October 22, 2014, The Dow Chemical Company announced unaudited consolidated
earnings results for the third quarter and nine months ended September 30,
2014.
For the quarter, the company reported net sales of $14,405 million
against $13,734 million a year ago. Income before income taxes was $1,342
million against $916 million a year ago. Net income attributable to parent
company was $937 million against $679 million a year ago. Diluted earnings per
share were $0.72 against $0.49 a year ago. Capital expenditures were $930
million against $566 million a year ago. EBITDA was $2,271 million against
$1,834 million a year ago. Cash flow from operations was $1.8 billion.
For the nine months, the company reported net sales of $43,783 million
against $42,694 million a year ago. Income before income taxes was $4,147
million against $5,418 million a year ago. Net income attributable to parent
company was $2,953 million against $3,739 million a year ago. Diluted earnings
per share were $2.24 against $2.88 a year ago. Capital expenditures were $2,466
million against $1,418 million a year ago.
EBITDA was $6,891 million against $8,220 million a year ago.
Cash flow from operations was $3.7 billion.
Banks: JP Morgan Chase Bank
...
Legal filings & complaints: Several
cases pending
Secured debts summary (UCC):
Several in various States
Trade references:
Date reported: October 2014
High credit: USD 100,000
Now owing: 0
Past due: 0
Last purchase: September 2014
Line of business: Office supply
Paying status: 4 days beyond terms
Date reported: October 2014
High credit: USD 70,000,000
Now owing: 0
Past due: 0
Last purchase: September 2014
Line of business: Payroll
Paying status: As agreed
Date reported: October 2014
High credit: USD 12,000
Now owing: 0
Past due: 0
Last purchase: September 2014
Line of business: Telecommunications
Paying status: 3 days beyond terms
Domestic credit history:
Domestic credit history
appears as follow:
|
Monthly Payment Trends - Recent Activity |
|
|
|
National Credit Bureaus
gave a correct credit rating.
According to our credit analysts, during the last 6 months, domestic payments
were made with an average of 2 to 5 days beyond terms.
International credit history:
Payments of imports are currently made on terms.
Other comments:
The Company is developing a
strong business worlfwide.
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
|
|
|
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.61.55 |
|
|
1 |
Rs.97.53 |
|
Euro |
1 |
Rs.76.48 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.