MIRA INFORM REPORT

Report No. :	325164
Report Date :	08.06.2015

IDENTIFICATION DETAILS

Name :	TENAX S.A.
Registered Office :	Pinto 4836 Piso: Pb Dpto:001, 1429-Ciudad Autonoma Buenos Aires
Country :	Argentina
Date of Incorporation :	1960
Legal Form :	Sociedad Anónima
Line of Business :	Primary Metals Manufacturing Industry.
No. of Employees :	16

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Small Company
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES:

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ECGC Country Risk Classification List – December 31, 2014

Country Name	Previous Rating (30.09.2014)	Current Rating (31.12.2014)
Argentina	B1	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. During 2013, the government continued with a mix expansionary fiscal and monetary policies and foreign exchange and imports controls to limit the drain in Central Bank foreign reserves, which nevertheless dropped US $12 billion during the year. GDP grew 3% and inflation remained steady at 25%, according to private estimates. In October 2013, the government settled long-standing international arbitral disputes (including with three US firms) dating back to before and following the 2001-02 Argentine financial crisis. In early 2014, the government embraced some orthodox economic policies. It devalued the peso 20%, substantially tightened monetary and fiscal policies, and took 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 presenting a proposal to pay its arrears to the Paris Club. Nevertheless, the government in July 2014 defaulted again on its external debt after it failed to reach an agreement with US holdout creditors. The government’s delay in reaching a settlement and the continuation of interventionist policies are contributing to a prolonged recession.

Source : CIA

STATUTORY INFORMATION
Legal Name:	TENAX S.A.
Trade Name:	TENAX
CUIT:	30-67707599-2
Date Created:	1960
Date Incorporated:	05/04/1994
Legal Address:	Pinto 4836 Piso: Pb Dpto:001 1429-Ciudad Autonoma Buenos Aires
Operative Address:	Pinto 4836 Piso: Pb Dpto:001 1429-Ciudad Autonoma Buenos Aires
Telephone:	114 542-7304
Fax:	114 542-7304
Legal Form:	Sociedad Anónima
Email:	info@tenax.com.ar
Registered in:	AGENCIA LA RIOJA BELGRANO n°77 5300 LA RIOJA
Website:	www.tenax.com.ar
Contact:	HéCtor Jorge Dobalo, President
Staff:	16
Activity:	Primary Metals Manufacturing Industry
BANK DATA	According to Argentinian Central Bank, the company maintains credit lines with the following banks:
BANK	AMOUNT IN THOUSANDS AR$
BANCO CREDICOOP COOPERATIVO LIMITADO	702,3
	According to the classification of banking relations of Argentina, the company operates with the following level: 1.
	This is the highest classification in the system. It means that the company/person is fulfilling correctly its current Credit obligations. This is therefore positive information that will enable the granting of any line of credit.
	There are no rejected checks for the company.
HISTORY
	Tenax S.A. is a company with roots in agriculture business since the '60s.
PRINCIPAL ACTIVITY	Tenax SA is a family company founded in the production, distribution and commercialization of supplies (minerals, metals and others) for the industry: mainly those processes involved in metal fusion, but also in productive areas like automotive parts, paints and coatings, petroleum, mining, chemicals, etc. Since its founding, it operates the farm Establecimiento Don Pedro, which produces organic raspberries and blueberries, exporting the entire production mainly to Europe and Canada.
Products/Services description:	Minerals Metals y Ferroalloys Graphites Specialties Machineries
	Delivery of materials in Buenos Aires and GBA with connections throughout the country and neighboring countries. Development of insulating and/or refractory coatings of molds and tooling. Development of covering powders, insulation and / or exothermic mixes. Classification and milling of minerals or metallic materials. Technical assistance. Advice on machinery updating. Technical support in export and import operations.
Brands:	TENAX
Clients:	FERROTECNICA PARAGUAYA SA FERPAR Paraguay
Suppliers:	Zorin Industries Ltd. UK
Operations area:	National and International
The company imports from	UK, China
The company exports to	Paraguay
The subject employs	16 employees
Payments:	Regular-made on a 30-45 day basis
LOCATION
Headquarters :	PINTO 4836 Piso: pb Dpto:001 1429-CIUDAD AUTONOMA BUENOS AIRES
Branches:	The company does not have branches
Industry:	Companies in this industry engage in smelting and refining of ferrous and nonferrous metals and include iron and steel mills, rolled steel shape manufacturers, aluminum producers, and copper foundries. . Demand comes largely from manufacturers of durable goods such as motor vehicles, machinery, containers, and construction steel. The profitability of individual companies depends largely on efficient operations, because most products are commodities sold based on price. Large companies enjoy economies of scale in purchasing and production. Accordingly, most producers of secondary products buy raw metal from the large producers. Small companies can compete by serving regional markets or producing specialty products. Major sources of revenue for the industry include steel mill products such as sheets, bars, and plates. Other activities include aluminum sheet, plate, and foil manufacturing; copper rolling, drawing, and extruding; and the production of shapes from iron, steel, and specialty metals such as titanium, molybdenum, and beryllium. Iron and steel mills account for about 40 percent of industry revenue.
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	NA
Shareholders %:	This is a private company. Hector Jorge Dobalo would be the major holder.
Management:	HéCtor Jorge Dobalo, President Elva Silvia Marinangeli, Subdirector Oscar Riva
Related Companies:	There are no subsidiary companies
FINANCIAL INFORMATION
	The company does not make its financial statements public.
USD 2014
Revenue	120 000
Cash Flow	Medium-Low
Exports Anual FOB USD
2014	152.909
2013	186.871
2012	178.632
2011	269.198
2010	199.534
LEGAL FILINGS
	There are no legal connected to the subject
SUMMARY
	Tenax SA is a family company founded in the production, distribution and commercialization of supplies The company has  19 years of experience as an incorporated company in Argentina, with a small sized structure. The company shows an open credit line of approximately USD 79 000 with a local bank and shows good payment behaviour. There are no negative for the subject.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	Regular
CASH FLOW	Normal
STATUS	Active
INTERVIEW
NAME	NA
POSITION	Administrative
COMMENTS	The person contacted confirmed address and activity. She was reluctant to cooperate.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.90
UK Pound	1	Rs.71.82
Euro	1	Rs.97.97

INFORMATION DETAILS

Analysis Done by :	KAR
Report Prepared by :	TPT

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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