MIRA INFORM REPORT
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Report No. : |
316524 |
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Report Date : |
14.04.2015 |
IDENTIFICATION DETAILS
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Name : |
POLYMER GROUP, INC. |
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Registered Office : |
9335 Harris Corners Parkway, Suite 300, Charlotte, NC 28269 |
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Country : |
United State |
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Date of Incorporation : |
16.06.1994 |
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Legal Form : |
Corporation - Profit |
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Line of Business : |
Subject develops, produces, and markets engineered materials |
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No. of Employee : |
4,400 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
United State |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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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 STATE 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 was designed to 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 (Fed) 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
below 6.5% or inflation rises above 2.5%. In late 2013, the Fed announced that
it would begin scaling back long-term bond purchases to $75 billion per month
in January 2014 and reduce them further as conditions warranted; the Fed,
however, would keep short-term rates near zero so long as unemployment and
inflation had not crossed the previously stated thresholds. 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.
|
Source
: CIA |
Company
name and address
POLYMER GROUP,
INC.
Headquarters: 9335 Harris Corners Parkway, Suite
300,
Charlotte,
NC 28269 - USA
Telephone: +1
704-697-5100
Fax: +1 704-697-5116
Website: www.polymergroupinc.com
Corporate ID#: 2411526
State: Delaware
Judicial form: Corporation - Profit
Date incorporated: 06-16-1994
Stock: 1,000
shares common
Value: No
par value
Name of manager: Jesse
Joel HACKNEY
ACTIVITIES & OPERATIONS
Business:
Polymer Group, Inc. develops, produces, and markets engineered materials
in the United States, Canada, Europe, Asia, and Latin America.
The company operates through Americas Nonwovens, Europe Nonwovens, Asia
Nonwovens, and Oriented Polymers segments.
The company offers nonwoven products, including top sheets, transfer layers, backsheet
fabrics, leg cuff fabrics, sanitary protective facings, and absorbent pads for
hygiene applications, such as incontinence guard, panty shield, and absorbent
core applications; and nonwoven healthcare products for use in disposable
surgical packs, surgical gowns and drapes, face masks, shoe covers, and wound
care sponges and dressings.
It also produces nonwoven products for consumer wipes applications,
comprising personal care and facial wipes, baby wipes, and household cleaning
wipes, as well as nonwovens for use as substrates for dryer sheets.
In addition, the company markets various packaged wipes under its Chix
brand to industrial, foodservice, and janitorial customers.
Further, it provides nonwovens, such as various specialty materials for
industrial applications in the building and construction markets; and nonwovens
for specialty industrial end product applications consisting of filtration,
home furnishings, agriculture, cable wrap, composites, and industrial packaging
markets. Additionally, the company produces various products for industrial
packaging, building, and agriculture applications. Polymer Group, Inc. was
founded in 1994 and is headquartered in Charlotte, North Carolina.
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 United States citizens and
permanent residents are prohibited from doing business.
EIN: 57-1003983
Staff: 4,400
Operations & branches:
At the headquarters, we
find a factory, warehouse and office, owned.
The company
operates 14 manufacturing and converting facilities in
9 countries
throughout the world, including the one located:
SHAREHOLDERS
& MANAGERS
Shareholders:
On January 28, 2011, Scorpio Acquisition Corporation, an affiliate of
Blackstone Capital Partners V L.P., completed its acquisition of Polymer Group,
Inc.
Management:
Jesse Joel HACKNEY, Jr. has been Chief Executive Officer and President
of PGI Specialty Materials, Inc. since June 2013.
Mr. Hackney has been the Chief Executive Officer and President of
Polymer Group, Inc., since June 19, 2013.
He served as Senior Vice President and General Manager of Avaya Cloud
Solutions at Avaya Inc. from January 11, 2013 to June 19, 2013. He served as
the President of Field Operations and Senior Vice President of Global Sales and
Marketing at Avaya Inc. since June 14, 2010 until January 11, 2013. He served
as Senior Vice President of Global Sales & Marketing and President of Field
Operations at Avaya India Private Limited.
He led global sales as well as field marketing, an alignment of
resources to drive demand and serve Avaya customers with excellence. He served
as Senior Vice President and President of Government and Data Solutions at
Avaya Inc. from December 19, 2009 to June 14, 2010.
Prior to joining Avaya in December 2009, he served as President of
Enterprise Solutions at Nortel Networks Corporation from September 19, 2007 to
December 2009 and served as its Senior Vice President of Global Operations and
Quality from December 2005 to September 2007.
He was responsible for accelerating the strong momentum in Nortel's
global Enterprise business by leveraging world-class partnerships with
companies like Microsoft and IBM, as well as leading technology innovations
that are gaining rapid traction in the market.
He served as President of Enterprise Solutions of Nortel Networks Ltd.
since September 19, 2007. He has more than 14 years of global leadership
experience. He has a world-class background in general management, supply
chain, leadership skills, and Six Sigma expertise. Mr. Hackney served as Senior
Vice President of Global Supply Chain and Quality at Nortel Networks
Corporation from December 9, 2005 to September 19, 2007 and Nortel Networks
Ltd., from December 9, 2005 to April 2006. He also served as Senior Vice
President of Global Operations and Quality at Nortel Networks Ltd., from April
2006 to September 2007. He was charged with driving world-class results in
Nortel Networks Corp.'s Supply Chain and Global Quality efforts. Prior to
joining Nortel in 2005, he worked at GE (General Electric) for 14 years and
worked for a wide variety of its family businesses including GE Lighting (North
America and Europe), GE Aircraft Engines, GE Power Systems, GE Investments, and
GE Mergers and Acquisitions, and his leadership roles have spanned audit,
supply chain, operations, product management, and general management. Most
recently, he served as Division General Manager for GE Consumer and Industrial,
based in Barcelona, Spain from 2001 to 2006. He was responsible for the growth
and profitability of the Global IEC Electrical Components and Systems Division.
Mr. Hackney is a high-energy and results-oriented leader with a proven track
record of leading and growing businesses. He has been a Director of Polymer
Group, Inc., since June 19, 2013. He has been a Director of PGI Specialty
Materials, Inc. since June 2013.
He has been a Director of Companhia Providęncia Indústria e Comércio
S.A., since June 11, 2014.
He is widely recognized for operational excellence and speed of
execution. He holds a B.S. in Business Administration degree from the
University of North Carolina.
Dennis E. NORMAN is Executive Vice President and CFO.
Daniel L. RIKARD is Secretary.
As far as we know, they are
not involved in other local business.
Subsidiaries &
Partnership: Several in the U.S. and
worldwide.
FINANCIALS
On April 1, 2015, POLYMER GROUP, INC. reported consolidated unaudited earnings
results for the full year ended December 31, 2014.
For the full year, the company reported net sales of $1,859,914,000
compared with $1,214,862,000 for the same period last year.
Operating income was $18,198,000 compared with $7,168,000 for the same
period last year. Loss before income taxes was $120,763,000 compared with
$60,991,000 for the same period last year.
Loss attributable to the company was $115,297,000 compared with
$24,933,000 for the same period last year. Adjusted EBITDA was $218,771,000
compared with $136,749,000 for the same period last year.
Operating income overall increase was primarily driven by the
contributions from its acquisitions of Fiberweb and Providencia, offset by
higher special charges.
Net debt was $1,304.3 million compared with $810.6 million as of
December 28, 2013. Capital expenditures for the fiscal year ended December 31,
2014 and December 28, 2013 were $82.5 million and $54.6 million, respectively.
Banks: Bank of America
...
LEGAL
FILINGS
Legal filings
& complaints:
As of today date, there is no legal filing pending with the District
Courts.
Secured debts
summary (UCC):
File number: 20130054642J
Date filed: 06-06-2013
Lapse date: 06-06-2018
Secured Party: IKON FINANCIAL SVCS
1738 Bass Rd, Macon,
GA 31210
COMPANY CREDIT HISTORY
Trade references:
Date reported: March 2015
High credit: USD 35,000
Now owing: 0
Past due: 0
Last purchase: February 2015
Line of business: Office supply
Paying status: 15 days beyond terms
Date reported: March 2015
High credit: USD 6,000,000
Now owing: 0
Past due: 0
Last purchase: February 2015
Line of business: Payroll
Paying status: As agreed
Date reported: March 2015
High credit: USD 2,200
Now owing: 0
Past due: 0
Last purchase: February 2015
Line of business: Telecommunications
Paying status: 10 days beyond terms
Domestic credit history:
Domestic credit history
appears as follow:
|
Monthly Payment Trends - Recent Activity |
|
Date |
Up to 30 DBT |
31-60 DBT |
61-90 DBT |
>90 DBT |
||
|
10/14 |
$105,500 |
48% |
42% |
9% |
1% |
0% |
|
11/14 |
$152,700 |
83% |
6% |
9% |
1% |
1% |
|
12/14 |
$210,400 |
67% |
27% |
6% |
0% |
0% |
|
01/15 |
$194,200 |
45% |
41% |
14% |
0% |
0% |
|
02/15 |
$228,600 |
39% |
29% |
25% |
7% |
0% |
|
03/15 |
$249,000 |
40% |
48% |
2% |
7% |
3% |
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 15 to 20+ days beyond terms.
Other comments:
The Company is reporting
losses.
The Company is in good
standing.
This means that all local and
federal taxes were paid on due date.
Last report was filed on
03-25-2015.
The risk is medium/high.
Our opinion:
We suggest you to be
careful.
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.62.39 |
|
|
1 |
Rs.91.06 |
|
Euro |
1 |
Rs.66.16 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
ANK |
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.