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MIRA INFORM REPORT
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Report No. : |
503335 |
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Report Date : |
13.04.2018 |
IDENTIFICATION DETAILS
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Name : |
WASEELA BAHRAIN
SPC |
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Registered Office : |
Building 2080,
Block 428, Suite 131, Seff Tower, Road 2825, Manama |
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Country : |
Bahrain |
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Date of Incorporation : |
22.03.2010 |
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Com. Reg. No.: |
74503-1 |
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Legal Form : |
Single Person
Company - SPC |
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Line of Business : |
Subject is
engaged in the import and rental of aircraft and air transport equipment |
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No. of Employees : |
5 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Bahrain |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
BAHRAIN - ECONOMIC OVERVIEW
Low oil prices have generated a budget deficit of at least a $4 billion deficit in 2016, nearly 14% of GDP. Bahrain has few options for covering this deficit, with meager foreign assets and fewer oil resources compared to its GCC neighbors. In 2016 the three major US credit agencies downgraded Bahrain’s sovereign debt rating to “junk” status, citing persistently low oil prices and the government’s inability to more effectively cut spending. Nevertheless, Bahrain in 2017 was able to raise about $3 billion by issuing international debt.
Oil comprises 86% of Bahraini budget revenues, despite past efforts to diversify its economy and to build communication and transport facilities for multinational firms with business in the Gulf. As part of its diversification plans, Bahrain implemented a Free Trade Agreement (FTA) with the US in August 2006, the first FTA between the US and a Gulf state.
Other major economic activities are production of aluminum - Bahrain's second biggest export after oil - finance, and construction. Bahrain continues to seek new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries.
In 2011, Bahrain experienced economic setbacks as a result of domestic unrest driven by the majority Shia population; however, the economy recovered in 2012-15, partly as a result of improved tourism. In addition to addressing its current fiscal woes, Bahraini authorities face the long-term challenge of boosting Bahrain’s regional competitiveness — especially regarding industry, finance, and tourism — and reconciling revenue constraints with popular pressure to maintain generous state subsidies and a large public sector. Since 2015, the government lifted subsidies on meat, diesel, kerosene, and gasoline and announced new higher prices for electricity and water, although it plans to roll these increases out more gradually than previous subsidy cuts.
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Source
: CIA |
SUMMARY
Company Name : WASEELA
BAHRAIN SPC
Country of Origin :
Bahrain
Legal Form :
Single Person Company - SPC
Registration Date :
22nd March 2010
Commercial Registration Number : 74503-1
Issued Capital :
BD 8,572,800
Paid up Capital :
BD 8,572,800
Total Workforce :
5
Activities :
Rental of aircraft and air transport equipment
Financial Condition :
Undetermined
Payments :
No Complaints
COMPANY
NAME
WASEELA BAHRAIN SPC
ADDRESS
Registered & Physical Address
Building :
Building 2080, Block 428, Suite 131, Seff Tower
Street : Road 2825
Town : Manama
Country : Bahrain
Telephone : (973-17) 214462
Email : khalid.asheer@bahrainedb.com
Premises
Subject operates from a small suite of offices that are rented and
located in the Central Business Area of Manama
KEY
PRINCIPALS
Name Nationality Position
Dr Saud Abdullah A Al Ammari Saudi
Managing
Director
LEGAL
FORM & OWNERS
Date of Establishment : 22nd
March 2010
Legal Form : Single Person
Company - SPC
Commercial Reg. No. : 74503-1
Issued Capital : BD 8,572,800
Paid up Capital : BD 8,572,800
Name of Shareholder (s)
Percentage Holding
Capitalist Tull Investment Complex 100%
Cayman Islands
Notes to the legal Form A single
person company (SPC) is a company the capital of which is fully owned by a
single natural or corporate person. The owner is liable for the company's debts
and obligations only to the extent of the value of his capital investment in
the company. The minimum share capital required is BHD50,000. There must be at
least one director. Foreign and non-GCC nationals can set up an SPC if there
are no restrictions on the business activity. There is no requirement of local
sponsorship. One of the advantages of an SPC is that there is no requirement to
hold annual or extraordinary general meetings of the company; the
company must simply file its audited financial reports with the Ministry of Trade
and Commerce.
OPERATIONS
Activities: Engaged in the import and rental of aircraft and air transport
equipment.
Import Countries: Europe and the Far East
Subject has a workforce of 5 employees.
FINANCIAL
DATA
Companies registered in Bahrain are not legally required to make their
accounts public and no financial information was released by the company or
submitted by outside sources.
BANKERS
Bank of Bahrain & Kuwait
43 Government Avenue
PO Box: 597
Manama
Tel: (973-17) 253388
Fax: (973-17) 275785
PAYMENT
HISTORY
No complaints regarding subject’s payments have been reported.
SANCTION
LIST CHECKS
The subject and its shareholders have been checked in the following
sanctions list databases:
Sanctions list Results
United Nations Sanctions No
matches
Australian Sanctions No
matches
Bureau of Industry and Security (US) No
matches
EU Financial Sanctions No
matches
Office of the Superintendent of Financial
Institutions (Canada) No
matches
OFAC - Specially Designated Nationals (SDN) No
matches
UK Financial Sanctions (HMT) No
matches
US Consolidated Sanctions No matches
GENERAL
COMMENTS
During the course of this investigation the following sources were consulted:
- Internal database
- Journals, directories, media
& web searches
- Local Registry office
According to local sources, subject meets its payment obligations in a
timely manner and the company is considered to be a fair trade risk.
COUNTRY
OUTLOOK
Recent Developments
Cheap oil continues to test Bahrain’s
economic resilience. Bahrain maintained an expansionary fiscal stance since
2009 resulting in general government deficits. The situation worsened in 2015
with a decline in oil revenues by about 10 percent of GDP and a general fiscal
deficit estimated at 12.8 percent of GDP (from 3.4 percent in 2014). The
deficit spending helped maintain economic growth at 2.9 percent, but brought
reserves down to a low level at 2.6 months of imports and increased public debt
to 62 percent of GDP. Bahrain has introduced some initiatives for fiscal
consolidation. Revenue enhancing measures such as higher tobacco and alcohol
taxes and government services
fees were introduced over the past year. A
cost-cutting program entailed the raising of petrol prices by up to 60 percent
in January 2016(likely to create savings worth US$148.4 million), the gradual
phasing-in of price increases for electricity, water, diesel, and kerosene by
2019, an increase and unification of natural gas prices for industrial users,
and the removal of meat subsidies. Inflation has gradually picked up in 2016
mainly as a result of the subsidy reform: the headline CPI rose by 3 percent,
but it will remain subdued in 2017 as one-off measures affect the current year
only. 2016 outcomes demonstrate, however,
that the authorities’ emphasis on growth comes at the expense of fiscal
deterioration.
The Bahraini economy grew by an estimated 3.4
percent in 2016. While the hydrocarbon sector grew by an estimated 2 percent,
the non-hydrocarbon sectors grew by an average estimated rate of 3.7 percent, a
figure that reflects the continued emphasis on public investments, some of
which were funded by the GCC. The downside of this approach, however, has been manifested
in persistently high fiscal deficits, estimated at 12.6 percent of GDP in 2016.
A large portion of the 2016 deficit was covered by debt issuances, despite the
sovereign downgrade reflecting increasing pressures on government finances.
Bahrain issued a US$600 million bond just before the downgrade and the
authorities raised the public debt ceiling to BD 10 billion (around 80 percent
of GDP) to enable additional borrowing. Bahrain’s external position faces
growing vulnerabilities. The current account surplus of the past 12 years
turned into a deficit in 2015, following the drop in oil prices and further
deteriorated in 2016 to 4.6 percent of GDP. Reserve adjustments reflect the
growing external imbalances. The exchange rate peg has come under significant
pressure: external imbalances were reflected in a decline in reserves to 2.6
months of imports in the same time
frame. The real effective exchange rate has
also appreciated by 17 percent since mid-2014, complicating adjustments to the
adverse terms of trade shock that Bahrain is facing.
Little comprehensive welfare analysis is
available due to restricted access to household survey data, limited capacity,
and the sensitivities involved. Among Bahraini nationals’, labour force
participation is low, and people work predominantly in the public sector, where
wages are high and productivity low. Immigrant workers constitute about a half
of the resident population and command much lower incomes. Key elements of the
social contract - public employment and subsidies - are becoming less
affordable in the context of subdued oil prices. Bahrain aims to gain from
upgrading its capacity for welfare measurement that would support the design of
policies aimed at mitigating the impact of the necessary adjustment. Results
from a new household survey in 2015 have not yet been published.
Outlook
Economic growth is expected to decline in the
forecast period. Real GDP growth projections have been revised downwards to 1.9
percent in 2017 and 2018, as continuing low oil prices depress private and
government consumption. Some infrastructure investments are also likely to be
put on hold. In the absence of significant upfront
fiscal adjustments, Bahrain will remain
vulnerable to fiscal risks. Average inflation is expected to decrease to 2.1
percent in 2017 reflecting the cooling off in economic activity and phasing out
of temporary price-boosting effects of subsidy reforms. The current account
deficit will partially narrow to 3.8 percent of GDP in 2017 and remain about
there for the years to come, with the exception of small adjustments.
International reserves are expected to follow a declining trend, and reach 1.5
months of imports in 2018. Public debt is projected to exceed 90 percent of GDP
in 2017, and reach about 100 percent in 2018.
Risks and Challenges
Ensuring fiscal sustainability while
preserving a healthy growth rate has become an important challenge in Bahrain.
Real GDP growth is expected to slow and fiscal and external balances are
expected to remain under pressure in 2017 due to oil prices remaining well
below fiscal break-even levels. Despite efforts to diversify and boost non-oil
fiscal revenues, hydrocarbons account for about 80 percent of government
revenues in Bahrain. In addition, subsidies still absorb more than 20 percent
of the fiscal budget. The fiscal break-even price for Bahrain was estimated at
US$110 per barrel in 2016, the highest amongst the GCC. Thus, Bahrain is
expected to continue to run significant general fiscal deficits in the forecast
period - 9.8 percent of GDP in 2017. Delays in implementing fiscal
consolidation or a
further decline in oil prices could trigger
additional sovereign rating downgrades making access to external financing
harder, and intensifying pressure on reserves and the peg. Fiscal solvency and
liquidity risks are high, and outcomes remain vulnerable to shocks to growth,
commodity prices, and interest rates.
Key Economic Indicators 2014 2015 2016* 2017* 2018* 2019*
Real GDP Growth (%)
4.4 2.9 3.4
1.9 1.9 2.3
Inflation Rate (%)
2.7 1.8 3.0
2.1 2.0 2.0
Current Account Balance (% of GDP)
4.6
-2.4 -4.6 -3.8 -3.5
3.5
Fiscal Balance (% of GDP) -3.4 -12.8 -12.6 -9.8 -8.9 -7.6
* forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.35 |
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1 |
INR 92.70 |
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Euro |
1 |
INR 80.80 |
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BHD |
1 |
INR 172.96 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRA |
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Report Prepared
by : |
KET |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
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Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.