MIRA INFORM REPORT

Report No. :	337995
Report Date :	26.08.2015

IDENTIFICATION DETAILS

Name :	APERAM STAINLESS SERVICES & SOLUTIONS ARGENTINA S A
Registered Office :	Av. Descartes 4200, Parque Industrial Tortuguitas, Malvinas Argentinas; Buenos Aires
Country :	Argentina
Date of Incorporation :	03.07.1970
Legal Form :	Public Company
Line of Business :	Subject is wholesalers of steel service centers & other metal
No. of Employee :	55

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
Payment Behaviour :	No complaints
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 – March 31, 2015

Country Name	Previous Rating (31.12.2014)	Current Rating (31.03.2015)
Argentina	C1	C1

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

ARGENTINA - ECONOMIC OVERVIEW

Argentina benefits from rich natural resources, a highly literate population, an export-oriented agricultural sector, and a diversified industrial base. Although one of the world's wealthiest countries 100 years ago, Argentina suffered during most of the 20th century from recurring economic crises, persistent fiscal and current account deficits, high inflation, mounting external debt, and capital flight.

A severe depression, growing public and external indebtedness, and an unprecedented bank run culminated in 2001 in the most serious economic, social, and political crisis in the country's turbulent history. Interim President Adolfo RODRIGUEZ SAA declared a default - at the time the largest ever - on the government's foreign debt in December of that year, and abruptly resigned only a few days after taking office. His successor, Eduardo DUHALDE, announced an end to the peso's decade-long 1-to-1 peg to the US dollar in early 2002. The economy bottomed out that year, with real GDP 18% smaller than in 1998 and almost 60% of Argentines under the poverty line. Real GDP rebounded to grow by an average 8.5% annually over the subsequent six years, taking advantage of previously idled industrial capacity and labor, an audacious debt restructuring and reduced debt burden, excellent international financial conditions, and expansionary monetary and fiscal policies. Inflation also increased, however, during the administration of President Nestor KIRCHNER, which responded with price restraints on businesses, as well as export taxes and restraints, and beginning in 2007, with understating inflation data.

Cristina FERNANDEZ DE KIRCHNER succeeded her husband as President in late 2007, and the rapid economic growth of previous years began to slow sharply the following year as government policies held back exports and the world economy fell into recession. The economy in 2010 rebounded strongly from the 2009 recession, but has slowed since late 2011 even as the government continued to rely on expansionary fiscal and monetary policies, which have kept inflation in the double digits.

The government expanded state intervention in the economy throughout 2012. In May 2012 the Congress approved the nationalization of the oil company YPF from Spain's Repsol. The government expanded formal and informal measures to restrict imports during the year, including a requirement for pre-registration and pre-approval of all imports. In July 2012 the government also further tightened currency controls in an effort to bolster foreign reserves and stem capital flight. In October 2013, the government settled long-standing international arbitral disputes dating back to before and following the 2001 Argentine financial crisis. During 2014, the government continued with expansionary fiscal and monetary policies and foreign exchange and imports controls. Between 2011 and 2013, Central Bank foreign reserves had dropped $21.3 billion from a high of $52.7 billion. In July 2014, Argentina and China agreed on an $11 billion currency swap; the Argentine Central Bank has received the equivalent of $3.2 billion in Chinese yuan, which it counts as international reserves.

In 2014, the government also took some measures to mend ties with the international financial community, including engaging with the IMF to improve its economic data reporting, reaching a compensation agreement with Repsol for the expropriation of YPF, and agreeing to pay $9.7 billion in arrears to the Paris Club over five years, including $606 million owed to the United States. In July 2014, Argentina made its first payment to Paris Club creditors since the country’s 2001 financial crisis. At the same time, the Argentine government in July 2014 entered a technical default on its external debt after it failed to reach an agreement with holdout creditors in the US. The government’s delay in reaching a settlement and the continuation of interventionist and populist policies are contributing to high inflation and a prolonged recession, according to private analysts.

Source : CIA

STATUTORY INFORMATION
Legal Name:		APERAM STAINLESS SERVICES & SOLUTIONS ARGENTINA S A
Trade Name:		Aperam S.S.S. Argentina
CUIT:		30-54179576-2
Date Created:		1970
Date Incorporated:		03/07/1970
Legal Address:		Av. Descartes 4200, Parque Industrial Tortuguitas
		Malvinas Argentinas; Buenos Aires;
Operative Address:		Av. Descartes 4200, Parque Industrial Tortuguitas
		Malvinas Argentinas; Buenos Aires;
Telephone:		54-2320-55-5555
Fax:		54-02320- 55-5500
Legal Form:		Sociedad Anónima
Email:		ventas.argentina@aperam.com
Registered in:		DIV. REC. GRANDES CONTRIB. NACIONALES
		HIPOLITO YRIGOYEN N°370 PLANTA BAJA
		1086 CIUDAD AUTONOMA BUENOS AIRES
Website:		www.aperam.com
Contact:		Timoteo Di Maulo, President
Staff:		55
Activity:		Steel Service Centers & Other Metal Wholesalers
BANKS
According to Argentinian Central Bank, the company maintains credit lines with the following banks:
BANK		AMOUNT IN AR$
BANCO SANTANDER RIO S.A.		2939,9
INDUSTRIAL AND COMMERCIAL BANK OF CHINA		1265,4
BBVA BANCO FRANCES S.A.		33,2
HSBC BANK ARGENTINA S.A.		0,6
According to the classification of banking relations of Argentina,
the company operates with level: 1.
This is the highest classification in the system. It means that the company/person is fulfilling correctly its current Credit
obligations.
Rejected Checks:		No rejected checks
History
The company was previously named M. T. Majdalani y Cía S.A.
It was established in 1970. It was aacquired by Apertura ArcelorMittal (APERAM).
PRINCIPAL ACTIVITY
Aperam Stainless Services & Solutions Argentina specializes in the production and distribution of stainless flat products (sheets, strips and coils), welded pipes, seamless tubes, bars, flat bars, angles, electrodes and fittings.
Products/Services description:		Stainless flat products (sheets, strips and coils), welded pipes, seamless tubes, bars, flat bars, angles, electrodes and fittings.
Brands:		Aperam
Sales are:		Wholesale
Clients:		SIMECO S.R.L.
		Paraguay
Suppliers:		Aperam
Operations area:		National and International
The company imports from		Germany
The company exports to		Paraguay
The subject employs		55 employees
Payments:		No Complaints
LOCATION
Headquarters :		Av. Descartes 4200, Parque Industrial Tortuguitas
		Malvinas Argentinas; Buenos Aires;
Equipment:		One polishing line
		Three slitting lines for coils. Production range: coils from 0, 3 to 3 mm thick and widths of up to 1500 mm
		One cut-to-length line for blanks (small dimensions)
		One cut-to-length line for coils. Production range: coils from 0, 3 to 4 mm thick and widths of up to 1500 mm
		One tube welder
		One tube polishing
Branches:		The company does not have branches. Instead, it has commercial representatives based in Tucumán, Córdoba, Rosario, Mendoza, Mar del Plata, Tandil and Bahía Blanca.
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:		NO
Capital:		$ 3.836.000
Shareholders:		Aperam AG
		12C, rue Guillaume Kroll
		L-1882 Luxembourg
		Grand Duchy of Luxembourg
Management:		Timoteo Di Maulo, President
		Miguel Tufik Majdalani, Vicepresident
		Cecilia Rubio, Fiduciary
		Sebastián Adolfo Riccheri, Director
		José María Carusso
Related Companies:		Acindar Grupo ArcelorMittalArgentina
		(sister company)
		The group has locations at:
		France
		Benelux
		Turkey
		Germany
		Poland
		Hungary
		Czech Republic
		Italy
		Iberica
		Luxembourg
		Switzerland
		United Kingdom
		South America
FINANCIAL INFORMATION
This is a private company which does not make its financial public. The following information has been provided by private sources.
USD 2014
Revenue	52 028 000
Net Income	92 000
Total Equity	11 184 400
Exports FOB DOLLAR
2015	5.224
2014	40.518
2013	73.358
2012	52.053
2010	1.868.764
LEGAL FILINGS
There are no legal for the subject
SUMMARY
Aperam Stainless Services & Solutions Argentina specializes in the production and distribution of stainless flat products
The company has a médium sized structure and is part of a group with international presence.
It maintains regular open Credit lines with national financial institutions and shows good payment behaviour.
There are no negative.
RISK INFORMATION
DEBTS		Controlled
PAYMENTS		No Complaints
CASH FLOW		Normal
STATUS		This Corporation is in Good Standing
INTERVIEW
NAME		Bárbara
POSITION		Human Resources
COMMENTS		She confirmed history, group, owners, president, staff.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.66.71
UK Pound	1	Rs.105.10
Euro	1	Rs.77.11

INFORMATION DETAILS

Analysis Done by :	RAS
Report Prepared by :	ASH

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
--	NB	New Business	--

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.