MIRA INFORM REPORT
|
Report No. : |
339365 |
|
Report Date : |
09.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
AMETEK, INC. |
|
|
|
|
Registered Office : |
1100 Cassatt Road, Berwyn, PA 19312 |
|
|
|
|
Country : |
United State |
|
|
|
|
Financials (as on) : |
30.06.2015 (Consolidated Statement) |
|
|
|
|
Date of Incorporation : |
08.05.1986 |
|
|
|
|
Legal Form : |
Public Company (NYSE = AME) |
|
|
|
|
Line of Business : |
Manufactures and sells electronic instruments and electromechanical
devices. |
|
|
|
|
No. of Employee : |
15,400 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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 most technologically powerful
economy in the world, with a per capita GDP of $54,800. US firms are at or near
the forefront in technological advances, especially in computers, pharmaceuticals,
and medical, aerospace, and military equipment; however, their advantage has
narrowed since the end of World War II. Based on a comparison of GDP measured
at Purchasing Power Parity conversion rates, the US economy in 2014, having
stood as the largest in the world for more than a century, slipped into second
place behind China, which has more than tripled the US growth rate for each
year of the past four decades.
In the US, 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.
Long-term problems for the US 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.
The onrush of technology has been a driving
factor in the gradual development of a "two-tier" laborMARKET
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. But the globalization of
trade, and especially the rise of low-wage producers such as China, has put
additional downward pressure on wages and upward pressure on the return to
capital. 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 and oil has a major impact on the overall health of the economy.
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, the US
Congress established a $700 billion Troubled Asset Relief Program (TARP) in
October 2008. 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 2014, the direct
costs of the wars totaled more than $1.5 trillion, 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 inMARKETS 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 dropped below 6.5% or
inflation rose 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 ended the purchases
during the summer of 2014. In 2014, the unemployment rate dropped to 6.2%, and
continued to fall to 5.5% by mid-2015, the lowest rate of joblessness since
before the global recession began; inflation stood at 1.7%, and public debt as
a share of GDP continued to decline, following several years of increase
|
Source
: CIA |
Company
name and address
AMETEK, INC.
Your order on:
AMETEK PROCESS AND ANALYTICAL INSTRUMENTS
This is a business name used by:
Address: 1100 Cassatt
Road, Berwyn, PA 19312 – USA
Pittsburgh Address : 150
Freeport Road Pitsburgh PA 15238 USA
Telephone: +1
610-647-2121
Fax: +1 215-323-9337
Website: www.ametek.com
Corporate ID#: 2090570
State: Delaware
Judicial form: Public
Company (NYSE = AME)
Date incorporated: May
8, 1986
Stock: 241,068,392 shares
issued and outstanding
(as of 01-31-2015)
Value: USD
0.01= par value
Name of manager: Frank
S. HERMANCE
ACTIVITIES & OPERATIONS
Business:
AMETEK, Inc. manufactures and sells electronic instruments and
electromechanical devices in North America, Europe, Asia, and South America.
The company operates in two segments, Electronic Instruments Group and
Electromechanical Group.
The Electronic Instruments Group segment produces instrumentation for
various electronic applications used in transportation industries, including aircraft
cockpit instruments and displays; airborne electronics systems; and pressure,
temperature, flow, and liquid-level sensors for commercial airlines and
aircraft, and jet engine manufacturers.
This segment also provides analytical instrumentation for the medical,
laboratory, and research markets, as well as instruments for food service
equipment and measurement and monitoring instrumentation for various process
industries; instruments and instrument panels for heavy trucks,
heavy construction, and agricultural vehicles; and ultraprecise
measurement instrumentation and thermoplastic compounds for automotive,
appliance, and telecommunications applications.
The Electromechanical Group segment produces brushless air-moving motors
for aerospace, mass transit, medical equipment, computer, and business machine
applications. It also offers metal powders and alloys in powder, strip, and
wire forms for electronic components, aircraft, and automotive products, as
well as heat exchangers and thermal management subsystems. In addition, this
segment supplies hermetically sealed connectors, terminals, and headers, as
well as offers air-moving electric motors and motor-blower systems for floor
care appliances and outdoor power equipment manufacturers.
The company markets its products through direct sales force, sales
representatives, and distributors.
AMETEK, Inc. was founded in 1930 and is based in Berwyn, Pennsylvania.
EIN: 14-1682544
Staff: 15,400
Operations & branches:
At above address, we find
the corporate headquarters.
The Company maintains
numerous factories and offices in the U.S. and worldwide, including the one
located:
150 Freeport Road
Pittsburgh, PA 15238
Ph: +1 412-828-9040
SHAREHOLDERS
& MANAGERS
Shareholders:
The Company is listed with the NYSE under symbol AME.
As of 06-30-2015, 87% of the stock was held by institutional and mutual
fund owners, including:
|
FMR, LLC |
8.57% |
|
Vanguard Group, Inc. (The) |
8.03% |
|
Price (T.Rowe) Associates Inc |
7.42% |
|
Artisan Partners Limited Partnership |
4.30% |
|
State Street Corporation |
3.83% |
Management:
Frank S. HERMANCE is the Chairman and CEO
Mr. Frank S. Hermance serves as the Chairman and Chief Executive Officer
of Ametek Aerospace & Defense Inc.
Mr. Hermance serves as the Chief Executive Officer of Drake Air, Inc.
Mr. Hermance serves as the Chief Executive Officer of Ametek Specialty
Metal Products. He has been Chief Executive Officer of AMETEK Inc., a Holding
Company of Penn Engineering Motion Technologies since September 1999 and served
as Chief Executive officer of Southern Aeroparts, Inc. since January 1, 2001.
(AMETEK Inc. Accquired HCC Industries in 2005). He served in different roles at
AMETEK Inc. Where he served as the President from November 1996 to December
2000, Chief Executive Officer from September 1999 to December 2000, Chief
Operating Officer from January 1996 to September 1999 and Executive Vice
President from January 1996 to November 1996.
Mr. Hermance served as President of Precision Instruments Group of
AMETEK Inc. from 1994 to November 1996 and Group Vice President from 1990 to
1994. Prior to AMETEK, he served as General Manager of Tektronix's Waveform
Measurement division. He served as Senior Vice President for Operations of
Combustion Engineering's Taylor Instrument Company, a producer of analytical
instruments. Mr. Hermance serves as Chairman of Ametek Specialty Metal Products
and Drake Air, Inc. He serves as Chairman of Greater Philadelphia Alliance for
Capital and Technologies. He serves as Chairman of the Board and Director of
Manufacturers Alliance/MAPI, Inc. He has been Chairman of the Board of AMETEK
Inc. at Atlas Material Testing Technology LLC. since January 1, 2001. He serves
as a Trustee of Manufacturers Alliance/MAPI, Inc. He has been a Director of
IDEX Corp. since January 5, 2004. Mr. Hermance serves as a Trustee of the
Rochester Institute of Technology. He serves as a Director of Ametek Specialty
Metal Products, UGI Corp. and Drake Air, Inc. He has been a Director of CTB
International Corp. since 1997. He has been a Director of Ametek Inc. since
1999. He has both a Master of Science in Electrical Engineering and a Bachelor
of Science in Electrical Engineering from the Rochester Institute of
Technology.
Robert MANDOS is Executive Vice President and CFO.
David ZAPICO is Executive Vice President and COO.
Subsidiaries &
Partnership: Numerous in the U.S. and worldwide.
FINANCIALS
On attachment:
- 10K 2014
- 2nd 10Q 2015
On August 4, 2015, Ametek Inc. reported unaudited consolidated earnings
results for the second quarter and six months ended June 30, 2015.
Sales in the quarter were up 1% to $1 billion compared to $0.991 billion
a year ago. Operating income for the quarter was very strong. It increased 4%
to a record $240.3 million compared to $231.7 million a year ago.
Net income rose 4% to $155.5 million and diluted earnings per share were
$0.64 compared to $150.1 million or $0.61 per diluted share a year ago. Capital
expenditures were $12 million for the quarter. Operating cash flow was
$163million in the second quarter, up 5% over last year's second quarter. The
free cash flow was $152 million in the quarter, up 8% over last year's second
quarter.
For the six months period, the company reported net sales of
$1,987,785,000 compared to $1,966,010,000 a year ago. Operating income was
$461,271,000 compared to $453,359,000 a year ago.
Income before income taxes was $411,934,000 compared to $407,337,000 a
year ago. Net income was $297,620,000 or $1.22 per diluted share compared to
$290,649,000 or $1.18 per diluted share a year ago. The company anticipates
2015 revenue to be up low-single digits on a percentage basis from 2014. The
company continues to expect adjusted earnings for 2015 to be in the range of
$2.58 to $2.63 per diluted share, up 7% to 9% over last year's adjusted
earnings per share. For 2015, the company expects tax rate to be between 28%
and 28.5%. Full year 2015 capital expenditures are expected to be approximately
$75 million. For the full year, the company expects free cash flow, excluding
the $50 million pension contribution made in the first quarter, to be
approximately 115% of net income. Depreciation and amortization is expected to
be approximately $150 million.
Third quarter 2015 sales are expected to be approximately flat versus
the third quarter of 2014. The company estimate earnings to be approximately
$0.64 to $0.65 per diluted share in the third quarter, up 3% to 5% over last
year's third quarter.
Banks: JPMorgan Chase Bank
Bank of America
PNC Bank
SunTrust Bank
Wells Fargo Bank
LEGAL
FILINGS
Legal filings
& complaints:
As of today date, there are several legal filings pending with various
Courts.
Secured debts summary (UCC):
Several
COMPANY CREDIT HISTORY
Trade references:
Date reported: August 2015
High credit: USD 100,000+
Now owing: 0
Past due: 0
Last purchase: July 2015
Line of business: Office supply
Paying status: On terms
Date reported: August 2015
High credit: USD 15,000,000+
Now owing: 0
Past due: 0
Last purchase: July 2015
Line of business: Payroll
Paying status: As agreed
Date reported: August 2015
High credit: USD 6,000
Now owing: 0
Past due: 0
Last purchase: July 2015
Line of business: Telecommunications
Paying status: On terms
Domestic credit history:
National Credit Bureaus
gave a satisfying credit rating.
According to our credit analysts, during the last 6 months, domestic payments
were made on terms.
Other comments:
The Company maintains a
strong business.
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
|
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.66.61 |
|
|
1 |
Rs.102.30 |
|
Euro |
1 |
Rs.74.61 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
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.