MIRA INFORM REPORT

Report No. :	497643
Report Date :	17.03.2018

IDENTIFICATION DETAILS

Name :	J. C. PENNEY PURCHASING CORPORATION
Registered Office :	1999 Bryan St., Ste. 900 Dallas, TX 75201, USA
Country :	United States
Financials (as on) :	2016 [Summarized]
Date of Incorporation :	1959
Legal Form :	Corporation
Line of Business :	The company's line of business includes the wholesale distribution of women, children, and infants clothing and accessories.
No. of Employees :	560

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 (30.09.2017)	Current Rating (31.12.2017)
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:	J. C. PENNEY PURCHASING CORPORATION
Trade Name:	J. C. PENNEY PURCHASING CORPORATION
ID:	11361143032 (Texas Taxpayer Number) 0008005506 (Texas SOS File Number)
Date Created:	1959
Date Incorporated:	05/16/1989
Legal Address:	1999 Bryan St., Ste. 900 Dallas, TX 75201, USA
Operative Address:	6501 Legacy Drive, Plano, TX 75024-3612, USA
Telephone:	1-972-431-1000
Fax:	1-972-431-2320
Legal Form:	Corporation
Email:	-
Registered in:	TEXAS
Website:	www.jcpenney.com
Contact:	Michael Robbins – Executive Vice President
Staff:	560
Activity:	NAICS 1: Women's, Children's, and Infants' Clothing and Accessories Merchant Wholesalers NAICS 2: Men's and Boys' Clothing and Furnishings Merchant Wholesalers NAICS 3: Home Furnishing Merchant Wholesalers SIC 1: Women's And Children's Clothing SIC 2: Men's And Boy's Clothing SIC 3: Homefurnishings
Banks:	BANK OF AMERICA
History:	J. C. Penney Purchasing Corporation was founded in 1959.
Parent Company	The company operates as a subsidiary of: J. C. Penney Company, Inc. 6501 Legacy Drive Plano, TX 75024 United States
PRINCIPAL ACTIVITY
	The company's line of business includes the wholesale distribution of women, children, and infants clothing and accessories.
Products/Services description:	It sells family apparel, footwear, accessories, fine and fashion jewelry, and beauty products.
Brands:	J. C. Penney
Sales are:	Wholesale
Clients:	Retailers
Suppliers:	Katmandu Apparel Pvt Ltd Pt Sam Kyung Jaya Busana
Operations area:	National
The company imports from	INDIA SOUTH KOREA
The subject employs	560 employees
Payments:	Regular
LOCATION
Headquarters :	6501 LEGACY DRIVE, PLANO, TX 75024-3612, USA
Comments on Address:	This business is located at 6501 Legacy Dr, a commercial address in Plano, TX. The office building was last sold on August 31, 1987. The office building has an estimated value of $158 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 $156 million USD. With 1,897,984 square feet of space, this building is one of the largest office buildings in the 75024 zip code. The average office building in the area has around 2,956 square feet.
Branches:	J. C. Penney Purchasing Corporation (Branch Location) 40640 Winchester Rd Temecula, California 92591-5504 United States J. C. Penney Purchasing Corporation (Branch Location) 700 Darcy Pkwy Lathrop, California 95330-8755 United States
Related Companies:	J. C. Penney Purchasing Corporation 139/1 Juhu Road Santacruz Mumbai, Maharashtra 400049 India J. C. Penney Purchasing Corporation 28/F Skyline Twr Kowloon Bay Hong Kong
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 provided by private sources and could not be confirmed: The company operates as a subsidiary of: J. C. Penney Company, Inc. 6501 Legacy Drive Plano, TX 75024 United States
Management:	Michael Robbins – Executive Vice President David Bullington – Vice President David Shipley – Securities and Corporate Governance Attorney Gary Piper- Senior Director Brandy L Treadway - Secretary Hani Eideh – Assistant John Rosman – Director Kathy Mertz – Controller L. C Tucker – Vice President Lourdes Chang – Regional Vice President Sandra Fallgatter – Vice President Valerie J. Harris – Senior Vice President of Product development
FINANCIAL INFORMATION
	The company does not make its financial statements public. The following information has been provided by private sources:
USD 2016
Sales	70.000.000
Cash flow	Normal
LEGAL FILINGS
PATENTS	High efficiency oven and method of use Patent number: 8929724 Abstract: A high efficiency oven is disclosed. An exemplary high efficiency oven includes two or more infrared heating elements selected to generate different wavelengths in an oven cavity, a temperature sensor, and a system controller. Type: Grant Filed: February 6, 2012 Date of Patent: January 6, 2015 Assignee: J.C. Penney Purchasing Corporation, Inc. Inventor: Shawki H. Mograbi
GOVERNMENT CONTRACTS	No records found.
CASES	J. C. Penney Purchasing Corporation et al v. Welco, Inc. Plaintiff: J. C. Penney Corporation Inc. and J. C. Penney Purchasing Corporation Defendant: Welco, Inc. Case Number: 4:2013cv00684 Filed: November 19, 2013 Court: Texas Eastern District Court Office: Sherman Office County: Collin Presiding Judge: Ron Clark Referring Judge: Amos L. Mazzant Nature of Suit: Contract Product Liability Cause of Action: 28:1332 Jury Demanded By: None totes Isotoner Corporation v. J.C. Penney Corporation, Inc. et al Plaintiff: totes Isotoner Corporation Defendant: J.C. Penney Company, Inc., J.C. Penney Corporation, Inc. and J.C. Penney Purchasing Corporation Case Number: 1:2014cv00789 Filed: October 7, 2014 Court: Ohio Southern District Court Office: Cincinnati Office County: BUTLER Presiding Judge: Sandra S Beckwith Referring Judge: Karen L. Litkovitz Nature of Suit: Trademark Cause of Action: 15:1051 Jury Demanded By: Plaintiff
TRADEMARKS	BIG MAC MEN'S WORK SUITS, OVERALLS, JEANS, PANTS, JACKETS, RAINWEAR,[ BELTS, SUSPENDERS,] CAPS,[ SOCKS, ]AND BANDANAS Owned by: JC PENNEY PRIVATE BRANDS, INC. Serial Number: 72243012 LISETTE curtains, pinch pleated draperies and fabric valances Owned by: J.C. PENNEY PRIVATE BRANDS, INC. Serial Number: 75323165 MONET Handbags, wallets, clutch purses, luggage, tote bags, briefcases, cosmetic cases sold empty Owned by: J. C. PENNEY PURCHASING CORPORATION Serial Number: 78975603 THE FOUNDRY SUPPLY CO. Sunglasses Owned by: J. C. PENNEY PURCHASING CORPORATION Serial Number: 85171412 THE FOUNDRY SUPPLY CO. Sunglasses Owned by: J. C. PENNEY PURCHASING CORPORATION Serial Number: 85171702 THE FOUNDRY Sunglasses Owned by: J. C. PENNEY PURCHASING CORPORATION Serial Number: 85173366 THE FOUNDRY Sunglasses Owned by: J. C. PENNEY PURCHASING CORPORATION Serial Number: 85173481
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 1959, J. C. Penney Purchasing Corporation is a large-sized organization in the women's and children's clothing company’s industry located in Plano, TX. It has 560 full time employees and generates an estimated $70 million in annual revenue. The company operates nationally, mainly importing form India and South Korea. It is ACTIVE in business with no negative records.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	Regular
CASH FLOW	Normal
STATUS	Active
INTERVIEW
NAME	Denise
POSITION	Operator
COMMENTS	She confirmed the name of the company, the address of the headquarters and location, the date of creation of the company, the number of employees and the name of the Executive Vice President.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.87
UK Pound	1	INR 90.49
Euro	1	INR 79.91
US Dollar	1	INR 65.08

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

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	TPT

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)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.