MIRA INFORM REPORT

Report No. :	491326
Report Date :	10.02.2018

IDENTIFICATION DETAILS

Name :	SOLUTIA INC.
Registered Office :	251 Little Falls Drive, Wilmington, New Castle, De, 19808
Country :	United States
Year of Establishment :	1901
Legal Form :	Corporation
Line of Business :	Manufactures of performance materials and specialty chemicals used in various consumer and industrial applications.
No. of Employees :	3400

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

Status :	Good
Payment Behaviour :	Regular
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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
United States	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

UNITED STATES - ECONOMIC OVERVIEW

The US has the most technologically powerful economy in the world, with a per capita GDP of $57,300. 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, businesses 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" 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. 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. Because the US economy is energy-intensive, falling oil prices since 2013 have alleviated many of the problems the earlier increases had created.

The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the US 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, 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. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries.

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.

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 Americans by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on healthcare - 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 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 further reduce them 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 increases. In December 2015, the Fed raised its target for the benchmark federal funds rate by 0.25%, the first increase since the recession began. With US GDP growth below 2%, the Fed opted to raise rates three times since then, and in mid-June 2017, the range for the target rate stood at 1% to 1.25%.

Source : CIA

STATUTORY INFORMATION
Legal Name:	SOLUTIA INC.
Trade Names:	SOLUTIA INC.
ID:	2735025
Date Created:	1901
Date Incorporated:	4/1/1997
Legal Address:	251 LITTLE FALLS DRIVE, WILMINGTON, NEW CASTLE, DE, 19808, USA
Operative Address:	575 Maryville Centre Drive PO Box 66760 St Louis, MO 63141 United States
Telephone:	314-674-1000
Fax:	314-674-1585
Legal Form:	CORPORATION
Email:	-
Registered in:	DELAWARE
Website:	www.eastman.com/Pages/Solutia.aspx
Contact:	Mr. Brad A. Lich - President
Staff:	3400
Activity:	NAICS 1: Artificial and Synthetic Fibers and Filaments Manufacturing NAICS 2: Plastics Material and Resin Manufacturing NAICS 3: Unlaminated Plastics Film and Sheet (except Packaging) Manufacturing NAICS 4: All Other Basic Organic Chemical Manufacturing SIC 1: Organic Fibers, Noncellulosic SIC 2: Plastics Materials And Resins SIC 3: Unsupported Plastics Film And Sheet SIC 4: Industrial Organic Chemicals, Nec
Banks BANK OF AMERICA
History Solutia Inc. was founded in 1901 and is headquartered in St. Louis, Missouri.
Parent Company:	As of July 2, 2012, Solutia Inc. operates as a subsidiary of: Eastman Chemical Co. 200 South Wilcox Drive Kingsport, TN 37662 United States
PRINCIPAL ACTIVITY
Solutia Inc. manufactures performance materials and specialty chemicals used in various consumer and industrial applications.
Products/Services description:	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. It also provides heat transfer fluids, used for indirect heating or cooling of chemical processes in various 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.
Brands:	VISTASOLAR, BUTVAR, LLUMAR, V-KOOL, HÜPER OPTIK, VISTA, FLEXVUE , CRYSTEX, SANTOFLEX, THERMINOL, GILA, SKYDROL, FORMULA ONE HIGH PERFORMANCE AUTOMOTIVE TINT
Sales are:	Wholesale
Clients:	Aerovias De Integracion Regional S.A. M & V Asociados Limitada Estafeta Carga Aerea Sa De Cv Solutia Tlaxcala S.A. De C.V. Concesionaria Vuela CompaÐia De Aviacionsa De Cv Solutia Tlaxcala S.A. De C.V. Basf Mexicana S.A. De C.V. Biofactor S.A. (Ecuador) Ecuabarnices S.A. Solutia Brasil Ltda
Suppliers:	Solutia Australia Pty Ltd
Operations area:	National and International
The company imports from	AUSTRALIA
The company exports to	COLOMBIA MEXICO ECUADOR BRAZIL
The subject employs	3,400 Employees
Payments:	Regular
LOCATION
Headquarters :	575 Maryville Centre Drive PO Box 66760 St Louis, MO 63141 United States
Comments on Address:	This business is located at 575 Maryville Centre Dr, a commercial address in Saint Louis, MO. The office building was last sold on June 25, 2013. The office building has an estimated value of $8.93 million USD, which places it among the most valuable 10% of office buildings in the area. When the building was last assessed in 2012, the assessment value was $8.41 million USD. With 272,522 square feet of space, this building is one of the largest office buildings in the 63141 zip code. The average office building in the area has around 2,956 square feet.
Branches:	The company has several branches. Some of them are: Solutia Inc. (Branch Location) 5100 W Jefferson Ave Trenton, Michigan 48183-4729 United States Solutia Inc. (Branch Location) 702 Clydesdale Ave Anniston, Alabama 36201-5328 United States Solutia Inc. (Branch Location) 260 Springside Dr Akron, Ohio 44333-2433 United States
Related Companies:	Solutia Australia Pty Ltd 832 HIGH STREET, EAST KEW VI3102 AUSTRALIA Solutia Europe Sprl Bvba WERK NIENBURG, GROSSE DRAKENBURGER STRASSE 93-97, TEDE 31582 NIENBURG / WESER GERMANY Solutia Tlaxcala, S.A. de C.V. Mexico City Comercial Office Taine 229, Despacho 901 Colonia Chapultepec Morales Delegación Miguel Hidalgo Mexico City, DF 11570 Mexico
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	NA
Shareholders:	The company does not disclose information on shareholders. The following information has been obtained through private sources: As of July 2, 2012, Solutia Inc. operates as a subsidiary of: Eastman Chemical Co. 200 South Wilcox Drive Kingsport, TN 37662 United States This information was confirmed by the company.
Management:	Mr. Brad A. Lich - President Brian L. Henry - Secretary Mr. Christopher J. Bray - Corporate Controller Ms. Victoria M. Holt - Other Professional
FINANCIAL INFORMATION
The company does not make its financial statements public. The following information has been provided by private sources:
USD 2016
Revenue	$200.000.000
Cash flow	Normal
LEGAL FILINGS
PATENTS	High Impact Polymer Layers Publication number: 20130075949 Abstract: Multiple poly(vinyl butyral) layer interlayers that can be used in multiple layer glass panel type applications that require a high level of impact protection, for example in hurricane protection applications or in bullet proof glass applications. This effect is achieved by forming a poly(vinyl butyral) interlayer that has a relatively stiff poly(vinyl butyral) inner layer disposed between two relatively soft outer poly(vinyl butyral) layers, where the stiffness difference is achieved by a plasticizer differential that is achieved at least in substantial part by a residual hydroxyl content difference among the poly(vinyl butyral) layers. Type: Application Filed: November 21, 2012 Publication date: March 28, 2013 Applicant: SOLUTIA INC. Inventor: SOLUTIA INC. Forming crosslinked polysuccinimide Patent number: 5834568 Abstract: A process for crosslinking polysuccinimide (PSI) by reacting dry PSI with an N-containing crosslinker. Type: Grant Filed: March 17, 1997 Date of Patent: November 10, 1998 Assignee: Solutia, Inc. Inventor: Yueting Chou Use of dihydroxyquinoline to aid in increasing milk production and feed utilization Publication number: 20030162809 Abstract: Milk production and feed efficiency are improved by feeding the animal producing the milk a diet of feed comprising a substituted 1,2-dihydroxyquinoline compound. Type: Application Filed: February 27, 2003 Publication date: August 28, 2003 Applicant: Solutia, Inc. Inventors: Thomas J. Selm, Dana H. Saylor POLYMER INTERLAYERS COMPRISING UV ABSORBERS Publication number: 20150158276 Abstract: A UV stable polymer composition comprising a poly(vinyl acetal) resin, a plasticizer and at least one UV absorber, wherein the ultraviolet absorber comprises structure (1) Type: Application Filed: December 10, 2014 Publication date: June 11, 2015 Applicant: SOLUTIA INC. Inventors: Benjamin Bristol Thompson, John Joseph D'Errico
GOVERNMENT CONTRACTS	Government Contractor: SOLUTIA INC Name & Address: 575 MARYVILLE CENTRE DR SAINT LOUIS, MO 63141 Number of Defense Contracts Awarded:8 Dollar Amount of Defense Contracts Awarded:$575,304
CASES	Fink v. Solutia Inc. Disability Income Plan et al Plaintiff: Michelle Fink Defendant: Solutia Inc. Disability Income Plan and Reliance Standard Life Insurance Company Inc Case Number: 3:2018cv00130 Filed: January 23, 2018 Court: Illinois Southern District Court Office: East St. Louis Office County: Adams Nature of Suit: Labor: E.R.I.S.A. Cause of Action: 29:1001 E.R.I.S.A.: Employee Retirement Jury Demanded By: None Jackson v. Monsanto Company et al Plaintiff: Gary Jackson Defendant: Monsanto Company, Solutia Inc., Pharmacia LLC, Pfizer, Inc., Texas Eastern Transportation Corporation, Texas Eastern Transmission, LP, Panenergy Corp, Duke Energy Corporation, Spectra Energy Corporation and John Does 1-100 Case Number: 5:2018cv00013 Filed: February 5, 2018 Court: Mississippi Southern District Court Office: Western Office County: Lincoln Referring Judge: Michael T. Parker Presiding Judge: David C. Bramlette Nature of Suit: Personal Injury- Product Liability Cause of Action: 28:1332 Jury Demanded By: Plaintiff State of Washington v. Monsanto Company, et al Plaintiff - Appellee,: STATE OF WASHINGTON Defendant - Appellant,: MONSANTO COMPANY, PHARMACIA CORPORATION and SOLUTIA, INC. Defendant,: DOES, 1-100 Case Number: 17-35641 Filed: August 11, 2017 Court: U.S. Court of Appeals, Ninth Circuit Nature of Suit: Environmental Matters
TRADEMARKS	SAFLEX Plastic Interliner for Safety Glass Owned by: SOLUTIA INC. Serial Number: 71433019 SANTOWAX Solid Waxy Materials for Use as Substitutes for Animal, Mineral, and Vegetable Waxes Sold to the Trade for Use in the Industrial… Owned by: SOLUTIA INC. Serial Number: 71449463 SKYDROL FUNCTIONAL CHEMICAL FLUIDS-NAMELY, HYDRAULIC FLUIDS FOR USE IN HYDRAULIC POWER TRANSMISSION SYSTEMS AND HAVING GENERAL USE… Owned by: SOLUTIA INC. Serial Number: 71568111 H B-4 0 HIGH-BOILING LIQUID HYDROCARBONS WHETHER SOLD FOR USE AS PLASTICIZERS FOR SYNTHETIC OR NATURAL RESINS, SOFTENERS FOR RUBBER… Owned by: SOLUTIA INC. Serial Number: 71620896 BUTVAR SYNTHETIC RESINOUS PLASTIC MATERIALS IN THE FORM OF POWDERS, GRANULES, EMULSIONS, SOLUTIONS FOR USE IN THE INDUSTRIAL ARTS… Owned by: SOLUTIA INC. Serial Number: 71631316 PHOSGARD Organophosphorus Compound Owned by: SOLUTIA INC. Serial Number: 72111809
RENEWAL HISTORY	No records found.
UCC	No records found.
OFAC Sanctions List Search	The company is not listed in the OFAC list.
SUMMARY Founded in 1901, Solutia Inc. is a large-sized organization in the organic fiber manufacturers industry located in Saint Louis, MO. It has 3,400 full time employees and generates an estimated $232.3 million in annual revenue. The company operates nationally and internationally, mainly importing from Australia. It is ACTIVE in business with no negative records.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	Regular
CASH FLOW	Normal
STATUS	Active
INTERVIEW
NAME	Karen
POSITION	Operator
COMMENTS	She confirmed the name of the parent company, the address of the headquarters and location, the date of creation of the company, the number of employees and the name of the President.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.37
UK Pound	1	INR 89.71
Euro	1	INR 78.89
USD	1	INR 64.22

Note: Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
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

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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.