MIRA INFORM REPORT

 

 

Report No. :

308876

Report Date :

25.02.2015

 

IDENTIFICATION DETAILS

 

Name :

SOLUTIA INC.

 

 

Registered Office :

575 Maryville Centre Drive, St Louis, MO 63141

 

 

Country :

United State

 

 

Date of Incorporation :

01.04.1997

 

 

Legal Form :

Corporation – Profit 

 

 

Line of Business :

The company’s Advanced Interlayers segment provides polyvinyl butyral (PVB) sheet that is used in the manufacture of laminated glass for automotive and architectural applications, and as an encapsulant in photovoltaic applications

 

 

No. of Employees :

3,400+

 

 

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 :

Slow but correct

 

 

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 – 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

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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

 

Company name:            SOLUTIA INC.

 

Address:                                   575 Maryville Centre Drive, St Louis, MO 63141 - USA

 

Telephone:                    +1 314-674-1000

 

Fax:                              +1 314-674-1585

 

Website:                                   www.solutia.com

 

 

Corporate ID#:               2735025

 

State:                           Delaware

 

 

Judicial form:                 Corporation – Profit 

 

Date incorporated:          April 1, 1997

 

Stock:                           610,000,000 shares

 

Value:                           USD 0.01= par value

 

 

Name of manager:          B. Travis SMITH

 

 

ACTIVITIES & OPERATIONS

 

IST

 

Business:

 

Solutia Inc. and its subsidiaries manufacture performance materials and specialty chemicals used in various consumer and industrial applications.

 

The company’s Advanced Interlayers segment provides polyvinyl butyral (PVB) sheet that is used in the manufacture of laminated glass for automotive and architectural applications, and as an encapsulant in photovoltaic applications primarily under the SAFLEX name; ethyl vinyl acetate films under the VISTASOLAR name for photovoltaic module encapsulation; and specialty intermediate PVB resin and plasticizer products under the BUTVAR name.

 

Its Performance Films segment manufactures solar control, decorative, safety and security window films for aftermarket automotive and architectural applications under the LLUMAR, V-KOOL, HÜPER OPTIK, VISTA, GILA, and FORMULA ONE HIGH PERFORMANCE AUTOMOTIVE TINT names; and advanced film components that are used in electronics and energy industrial products under the FLEXVUE name.

 

 

The company’s Technical Specialties segment manufactures and sells chemicals for the rubber, solar energy, process manufacturing, and aviation industries. This segment offers insoluble sulfur under the CRYSTEX name; and antidegradants, which are used in pneumatic tire components, solid tires, belts, hoses, cables, automotive mounts, bushings, and general mechanical products under the SANTOFLEX name. This segment also provides heat transfer fluids that are used for indirect heating or cooling of chemical processes in various types of industrial equipment and in solar energy power systems under the THERMINOL name; and aviation hydraulic fluids for airline airframe manufacturers and aviation maintenance facilities under the SKYDROL name.

 

The company sells its products to end users in various industries through distributors and franchisees, as well as through its sales force in the United States, Europe, the Asia Pacific, and internationally.

 

Solutia Inc. was founded in 1901 and is headquartered in St. Louis, Missouri. As of July 2, 2012, Solutia Inc. operates as a subsidiary of Eastman Chemical Co.

 

Eastman Chemical Co. purchased the Company for USD 4.8 billion.

 

 

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.

 

 

No name of foreign suppliers available.

 

 

EIN:                  43-1781797

 

Staff:                 3,400+

 

 

Operations & branches:

 

At the headquarters, we find a large factory, warehouse and office, owned.

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

Eastman Chemical Co.

200 South Wilcox Drive

Kingsport, TN 37662

United States

 

Eastman Chemical Company, a specialty chemical company, engages in the manufacture and sale of chemicals, plastics, and fibers in the United States and internationally.

Revenue 2014: USD 9,527,000,000=

Net profit:   USD   751,000,000=

 

Management:

 

B. Travis SMITH is the President.

 

Michael A. BERRY, Eric NICHOLS, Vince McMULLIN, Michael J.3 HUMBY, Vice Presidents.

 

Mary D. HALL, Treasurer

David A. WOODMANSEE, Secretary

 

 

Subsidiaries

And partnership:

 

CPFilms Inc.

 

100

%

 

Delaware

Flexsys America L.P.

 

100

%

 

Delaware

Flexsys Chemicals (M) Sdn Bhd

 

100

%

 

Malaysia

Flexsys Coordination Centre SA/NV

 

100

%

 

Belgium

Flexsys Holding B.V.

 

100

%

 

Netherlands

Flexsys SA/NV

 

100

%

 

Belgium

Flexsys Verkauf GmbH

 

100

%

 

Germany

Flexsys Verwaltungs- und Beteiligungsgesellschaft GmbH

 

100

%

 

Germany

Monchem International, Inc.

 

100

%

 

Delaware

Solchem Netherlands C.V.

 

100

%

 

Netherlands

Solutia Brasil Ltda.

 

100

%

 

Brazil

Solutia Europe SPRL/BVBA

 

100

%

 

Belgium

Solutia Greater China, Inc.

 

100

%

 

Delaware

Solutia Performance Products Solutia, Ltd.

 

100

%

 

Mauritius

Solutia Performance Products (Suzhou) Co., Ltd.

 

100

%

 

China

Solutia Services International SCA/Comm.VA

 

100

%

 

Belgium

Solutia Solar GmbH

 

100

%

 

Germany

Solutia Therminol Co., Ltd., Suzhou

 

60

%

 

China

Solutia U.K. Limited

 

100

%

 

South Wales

 

 

FINANCIALS

 

The Company was listed with the NYSE held and delisted on 07-16-2012.

 

In United States, privately held corporations are not required to publish any financials.

 

On a direct call, nobody accepted to answer our questions.

We sent a fax but no answer received.

 

However, sales estimate for fiscal year ending September 2013 is in the range of USD 2.5 billion verse USD 2.3 billion in 2012 and 2.097 billion in 2011.

 

The business is profitable.

 

 

Banks:  Citibank

                        JPMorgan Chase Bank

                        ...

 

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there are several legal filing pending with various Courts, involving the Company as plaintiff or defendant.

 

 

Secured debts summary (UCC):   Several

 

 

COMPANY CREDIT HISTORY

 

Trade references:

 

Date reported:                January 2015

High credit:                    USD 100,000+

Now owing:                    0

Past due:                      0

Last purchase:   December 2014

Line of business:            Office supply

Paying status:               12 days beyond terms

 

Date reported:                January 2015

High credit:                    USD 4,500,000+

Now owing:                    0

Past due:                      0

Last purchase:   December 2014

Line of business:            Payroll

Paying status:               As agreed

 

Date reported:                January 2015

High credit:                    USD 1,500

Now owing:                    0

Past due:                      0

Last purchase:   December 2014

Line of business:            Telecommunications

Paying status:               8 days beyond terms

 

Domestic credit history:

 

Domestic credit history appears as follow:

 

Monthly Payment Trends - Recent Activity

 

Date

Balance

Current

Up to 30 DBT

31-60 DBT

61-90 DBT

>90 DBT

10/13

$703,400

54%

22%

1%

1%

22%

11/13

$498,200

63%

13%

3%

1%

20%

12/13

$1,015,000

69%

18%

2%

1%

10%

01/14

$988,900

63%

24%

5%

1%

7%

02/14

$1,056,600

75%

5%

10%

4%

6%

03/14

$902,200

88%

3%

1%

1%

7%

 

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 10 to 15 days beyond terms.

 

 

Other comments:

 

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

 

The risk is medium.

 

 

Our opinion:

 

A business connection may be conducted but we suggest you to check regularly the way of payments.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.28

UK Pound

1

Rs.96.21

Euro

1

Rs.70.60

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

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