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MIRA INFORM REPORT
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Report No. : |
484029 |
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Report Date : |
09.01.2018 |
IDENTIFICATION DETAILS
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Name : |
IBN AL HYTHAM ISLAMIC SCHOOL |
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Registered Office : |
Building 30, Avenue 26, Block 450 PO Box 594 & 11980 Manama |
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Country : |
Bahrain |
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Date of Incorporation : |
1989 |
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Com. Reg. No.: |
710124-01 |
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Legal Form : |
Not Available |
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Line of Business : |
Subject is engaged as operators of a private school with 250
teachers and over 2,500 students. |
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No. of Employees : |
300 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 (30.06.2017) |
Current Rating (30.09.2017) |
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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 a constrained borrowing ability. In the last year 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.
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. Over the past year, 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 : IBN AL HYTHAM ISLAMIC SCHOOL
Country of Origin : Bahrain
Registration Date : 1989
Commercial Registration Number : 710124-01
Total Workforce : 300
Activities : Operators of a private school
Financial Condition : Undetermined
Payments : Regular
Person Interviewed : Shakil Ahmed Azmi, Chairman
COMPANY
NAME
IBN AL HYTHAM ISLAMIC SCHOOL
ADDRESS
Registered &
Physical Address
Location :
Building 30, Avenue 26, Block 450
PO Box :
594 & 11980
Town :
Manama
Country : Bahrain
Telephone :
(973-17) 271694
Facsimile :
(973-17) 256546
Email : chairman@ihis.bh
/ principal@ihis.bh
/ secretary@ihis.bh
/ info@ihisbahrain.com
Premises
Subject operates from a school that is located in the
Central Business Area of Manama.
Branch Office (s)
Location Description
· Al
Maqsha Campus
premises
Tel:
(973-17) 591449
Fax:
(973-17) 595422
KEY
PRINCIPALS
Name Position
· Shakil
Ahmed Azmi Chairman
· Dr Wahib Ahmed Al Khaja President
of the Board of Trustees
· Dr Muhammad
Tayyab Principal
LEGAL
FORM & OWNERS
Date
of Establishment : 1989
Commercial
Reg. No. : 710124-01
Subject
is a non-profit entity and managed by a board of
trustees funded by private initiative. It works within the framework of the Ministry
of Education.
OPERATIONS
Activities: Engaged as operators of a private
school with 250 teachers and over 2,500 students.
Subject has a workforce of approximately 300 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
·
Arab Bank Plc
Government
Avenue
PO
Box: 395
Manama
Tel:
(973-17) 229988
Fax:
(973-17) 210443
PAYMENT
HISTORY
Regular
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
- Interview with
Shakil Ahmed Azmi, Chairman, on 08/01/2018
The subject and its shareholders/owners have been searched
in the following databases; Office of Foreign Assets Control (OFAC), United
Nations Security Council Sanctions, Australian Sanctions List, US Consolidated
Sanctions List, EU Financial Sanctions List and UK Financial Sanctions List and
nothing adverse could be found on the exact names listed within the report.
During the course of this investigation nothing detrimental
was uncovered regarding subject’s operating history or the manner in which
payments are fulfilled. As such 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 63.67 |
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1 |
INR 86.11 |
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Euro |
1 |
INR 76.59 |
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BHD |
1 |
INR 168.44 |
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 : |
TRU |
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.