|
|
BIIA Informs Users of Information
Equifax Inc. (NYSE: EFX) announced the launch of its Small Business initiative with services to help businesses understand, monitor and strengthen their own credit performance as well as the credit health of the companies they're doing business with.
The reports, available via credit card individually or in discounted multi-packs of five, help customers evaluate a potential partner or supplier as well as gain valuable insight into their own business credit score. Unlike others in the industry, Equifax has an exclusive partnership with the Small Business Financial Exchange (SBFE), an organization made up of more than 400 small business financial institutions with a database on more than 24 million companies. This exclusive relationship allows Equifax to combine this unique information with its own distinctive data to offer the most comprehensive, relevant and predictive industry information in the United States.
"Equifax is dedicated to supporting this important segment of the business population by giving them easy access to the same comprehensive business credit data available to larger corporations," said Dan Csont, Chief Marketing Officer, Equifax Commercial Information Solutions. "With a minor investment, a small business can prepare itself for large opportunities and mitigate risk."
Equifax Business Credit Reports which are simple to obtain, easy to use and interpret include:
- A trade and lending summary showing a company's financial and non-financial obligations.
- A public records summary detailing any judgments, liens, or business registration with secretaries of state.
- Three scores to help evaluate a company's credit risk, payment history and likelihood of business failure.
To help keep an ongoing, watchful eye on critical partner, supplier and customer relationships, Equifax also offers Business Credit Monitoring and Alert services. This service tracks a company's credit report and sends a daily email if significant changes occur to it. Businesses also use the service to monitor their own business credit scores to help manage their own commercial credit.
Equifax Commercial Information Solutions provides the information and expertise necessary for companies to best understand and manage their dealings with business customers, prospects and suppliers. The company's exclusive relationship with the Small Business Financial Exchange, along with other proprietary sources, provides the best-in-class commercial credit risk data. Combined with highly predictive scoring and innovative technology, businesses can leverage this information to make quick, confident credit decisions and minimize potential losses.
Source: Equifax a member of BIIA
|
|
|
|
Advanced new system arms credit professionals with the industry's best credit practices and top analytical intelligence
COSTA MESA, Calif., July 12 /PRNewswire/ -- Experian®, announced BusinessIQ(SM), a new system that provides one-stop access to its full line of business credit services in an easy-to-use, Web-based platform. From application review and account management to preventing fraud and debt collection, BusinessIQ gives credit professionals the tools and information they need to enhance their portfolio management practices. Additionally, BusinessIQ provides users with deep insight into their credit portfolios, enabling them to become smarter about their customers and make better business decisions.
"Finding a simple and more efficient way to manage risk and improve profitability is mission-critical for today's credit professionals," said Allen Anderson, president, Experian's Business Information Services.
"We designed BusinessIQ by listening to the feedback of our clients and working closely with members of the credit community. By pairing an easy-to-use interface with Experian's leading business information, data integrity and award-winning customer service, we have created a complete system that outperforms competitive offerings and gives credit professionals the resources they need to make their businesses smarter and more profitable."
A unique feature of BusinessIQ is the industry-leading Quick Search technology. This allows credit professionals to save valuable time by accelerating their research, which enables them to more quickly pull credit reports and scores to assess risk. With the new system, credit professionals have access to both positive and negative alerts across their customer base, allowing them to receive immediate notification of potential problems and prime opportunities for business growth. This capability is completely customizable so that only alerts that are meaningful and actionable to the organization are delivered.
BusinessIQ also enables credit professionals to:
- Leverage advanced analysis tools for further insight into a portfolio's health
- Elevate decisions by creating credit policies that combine a company's risk tolerance with advanced statistical expertise
- Prioritize workflow with intelligent, event-driven alerts
- Develop focused collections strategies by profitably locating, segmenting and prioritizing debtor accounts
With flexible subscription options, credit professionals can customize a plan that best suits their business's needs.
To learn more about BusinessIQ or Experian's other advanced business-to-business products and services, visit http://www.experian.com/b2b.
About Experian's Business Information Services
Experian's Business Information Services partners with organizations to establish and strengthen customer relationships, enabling them to mitigate risk and improve profitability. The company's business database provides comprehensive, third-party-verified information on U.S. companies of all sizes, with the industry's most extensive data on the broad spectrum of small and midsize businesses. By leveraging state-of-the-art technology and superior data compilation techniques, Experian is able to provide market-leading tools that assist clients in processing new applications, managing customer relationships and collecting on delinquent accounts.
For more information about Experian's advanced business-to-business products and services, visit http://www.experian.com/b2b or call 1 800 520 1221.
|
|
|
|
Dagong Global Credit Rating issued its own sovereign debt ratings, downgrading many Western countries, including the USA, UK, Germany etc.
Dagong’s CEO stated in an interview with the Financial Times: "Western credit rating agencies were politicized, highly ideological and try not to adhere to objective standards" adding "China as the biggest creditor nation should have a greater say in how credit risks are judged."
Dagong has applied for NRSRO status in the USA and claims that the SEC is withholding certification unfairly. The SEC however seems to have difficulties in assessing the objectivity of Dagong’s methodology because it has no offices in the US, does not rate US companies and has no US customers. The SEC suggested to visiting Dagong’s China offices; however that idea was rejected by Dagong because it would impinge on China’s sovereignty. Since Dagong does not disclose its methodology it hardly can expect international investors to trust Dagong’s objectivity.
BIIA has asked its country risk expert Dr. Hans Belcsak, President of S. J. Rundt & Associates, and a Director of BIIA to comment on Dagong’s rating concept:
"I am, in principle, very much in favor of seeing a new global rating agency emerge, since the big established ones have certainly not always done the best possible job and have all too frequently been reactive rather than proactive, hitting countries with ratings downgrades when they were already on their knees and when the revision did nothing to help existing creditors.
This said, however, I find Dagong's approach to be too simplistic to be very useful. Granted, I know nothing about their methodology, but extrapolating from the results it would seem to me that their focus is mainly on the difference between the money a country’s public sector owes and the hard-currency assets it has available. That is, of course, an important facet for any meaningful analysis, but it lacks hugely important components.
For instance, a country’s past history in debt management should not be ignored. Nor should “ideology,” since it goes a long way in determining whether a nation has not only the means but also the will to service what it owes. By Dagong’s standards, Ecuador, for instance, would have had to have a fairly high rating just before its recent default, because it easily had the wherewithal to pay its debts. That the government decided not to do so was a decision that on objective standards alone would not have been predictable (it was for all those who took a close look at the regime’s ideology).
Also, the rating for the United States seems to overlook totally that the US, as the country with the world’s reserve currency, incurs all its foreign debts in US dollars, which it can print, so that objectively it will never have a real need to default. While I do believe that the US debt, even at the current USD 13.5 trillion, is unsustainable in real terms, this will ultimately be resolved by inflation and currency depreciation, not by default. These are, to me, extremely important nuances that Dagong appears to ignore. I would love to see a company with a better rating system emerge, not just one with a different one."
Dr. Hans Belcsak
|
|
|
|
The latest Dun & Bradstreet Consumer Credit Expectations Survey reveals that one in five households expect their debt levels to increase in the coming months, 23 percent expect to apply for new credit and 13 percent intend to make an application for a limit increase on a current account. Meanwhile, 49 percent of households are indicating that an increase in interest rates would negatively impact household finances.
The survey found that certain demographics (18-49 years and those families with children) are more likely to experience financial stress, with these two groups having significantly higher proportions of people anticipating a need to use credit to pay for otherwise unaffordable expenses and indicating that another interest rate rise would negatively impact their household finances. Of concern, these are the same groups that are intending to make major purchases in the months ahead and they are more likely than others to fund their purchase using an interest free deal.
A full media release is attached.
For further information contact Danielle Woods on 02 8270 2926 or woodsd@dnb.com.au
|
|
|
The Financial Services Authority (FSA) in the UK has today outlined proposals to ensure all mortgages are carefully assessed to make sure borrowers can afford them.
Reflecting the FSA's enhanced consumer protection strategy and intensive day-to-day supervision, the proposed changes aim to ensure all lenders get back to the basics of responsible lending and that problems are prevented before they can develop or get out of control.
Some of the key proposals include:
- Imposing affordability tests for all mortgages and making lenders ultimately responsible for assessing a consumer's ability to pay;
- Requiring verification of borrowers' income in every case to prevent over inflation of income and to prevent mortgage fraud;
- Extra protection for vulnerable customers with a credit-impaired history.
The tough new proposals, published in the consultation paper, form part of a major review by the FSA into the UK mortgage market and are based on detailed analysis of past lending decisions, looking at the causes of arrears and repossessions since 2005.
The FSA found that:
- 46% of households either had no money left, or had a shortfall after mortgage payments and living costs were deducted from their income;
- Almost half of new mortgages between 2007 and the first quarter of 2010 were provided without a customer having to verify their income;
- The share of interest-only mortgages has been increasing. At the peak of the market, over 30% of all mortgages were interest-only;
- Many consumers with no repayment vehicle count on future house price rises or uncertain life events to repay their mortgage and some have no plan at all;
- Borrowers with a credit-impaired history are particularly vulnerable.
Lesley Titcomb, FSA director responsible for the mortgage market, said: “There is a clear link between financial overstretch and mortgage arrears and repossessions, and we are determined to protect vulnerable consumers by making sure that everyone who takes on a mortgage can afford to pay it back.
"While it is clear the mortgage market has worked well for many, we need to build a strong new framework to protect mortgage customers and to ensure that the problems we have seen in the past do not happen again, particularly as the mortgage market recovers."
Today's report also includes the key findings from the FSA's review into arrears charges, which indicated significant variation in the level of arrears fees across the market.
The mortgage rules require arrears charges to be based on a reasonable estimate of the cost of the additional administration required as a result of the customer being in arrears. The FSA is actively seeking views from consumer groups and industry and invites responses by 16 November 2010.
Source: FT
The proposals of the FSA reflect the age old maxim that information and credit are intertwined, one does not go without the other. For bankers and consumers it will be a return to common sense.
|
|
|
|
Company Watch announces new features to become available on its Risk Management system starting from July 2010.
Company Watch is based in London, United Kingdom and specialises in producing and marketing a powerful and flexible analytical tool for measuring the corporate financial health of corporations worldwide, using a unique proprietary methodology.
The proprietary measures, the H-Score® and the PoD® (the percentage Probability of Distress) are based on proven and powerful mathematical models that are built and maintained in-house.
To read the full story click on the attachment
|
|
|
Atlanta, 28/05/2010: As part of its continued expansion, CRIF, a global leader in credit services, announced today the opening of its North American headquarters office in Atlanta, Georgia. The office – located at 280 Interstate North Parkway Circle, Suite 400 – will serve as the operational hub for the CRIF Lending Solutions family of companies that includes Teres, Magnum, FLS Services, APPRO CRIF and Aimbridge. The companies will each maintain their respective regional offices.
Hundreds of the nation's top financial institutions and lending organizations now rely on loan origination technology, outsourced loan processing services, and analytics solutions offered by CRIF. Key product and service offerings include:
Loan Origination - From highly configurable, customizable loan origination systems to ‘plug and play’ lending solutions, Teres, Magnum and APPRO cover the spectrum. Over 500 financial institutions and lending organizations around the country depend on these products for their lending automation and loan origination needs
Outsourced Loan Processing - Over 150 financial institutions throughout the United States rely on Aimbridge and FLS Services to provide outsourced loan processing services, including turn-key individual and aggregated lending programs, document image management, market consultation, dealer management, and custom-branded online auto shopping and financing portals
Analytics - The nation’s largest financial institutions and credit card processors rely on the data aggregation and automated decision technologies offered by Magnum. These leading technologies in concert with the expertise of CRIF’s scorecard development and business process re-engineering services result in a single stop comprehensive analytics solution.
Over the past several years, CRIF has acquired leading technology and service providers to build and expand the CRIF Lending Solutions product suite.
Source: CRIF Press Release
For more information: http://www.crif.com
CRIF is a member of BIIA
|
|
|
Casablanca, Morocco & Bologna, Italy, 21/04/2010 SALAFIN, the financial services company of the BMCE Bank Group based in Casablanca, chose CRIF Decision Solutions as partner for the optimization of its risk assessment and management performance. SALAFIN offers retail credit products, including personal loans, auto finance and revolving credit in Morocco, through a wide network made up of 14 SALAFIN-branded branches, 170 car dealerships, 20 insurance brokers as well as 520 BMCE Bank branches. The main objective of the project was to improve the risk management techniques and methodology used in SALAFIN, by focusing on personal loans.
SALAFIN issued a tender to 3 major European decision solutions companies for the auditing and evaluation of the gap analysis between its methodologies based on decisional systems and best practices in Europe. The company was also interested in developing a propensity model to implement appropriate marketing strategies.
Source: CRIF Press Release
For more information: http://www.crif.com
CRIF is a member of BIIA
|
|
|
21st May 2010: Veda Advantage's Business Credit Demand Index, released today, shows business credit enquiries grew steadily in the first three months of 2010, with business credit applications for the January to March quarter increasing by an average of 3% over the same period in 2009.
The January to March quarter saw the first consecutive monthly increases year-on-year since 2007, with January up by 5%, February up by 13%, and March up by 2% year-on-year. However, inquiries fell in April with a drop of 4.4% compared to April 2009 and a 1.9% decline compared to the previous month of March 2010. Comparisons between the January to March 2010 quarter and the previous September to December quarter of 2009 also reveal a 14% fall in business credit enquiries.
Chris Gration, Head of External Relations at Veda Advantage said: "The long-term outlook appears to be positive with the small and medium enterprise business sector showing more robust demand than 12 months ago. However some caution clearly remains in the market, with SME credit demand flattening and even starting to decline again.
To read the full story click on the attachment
Veda Advantage is a member of BIIA
|
|
|
A Survey by COFACE reveals companies in China see no improvement in payment behaviour despite stimulus package and return to strong growth
Companies in China face increased overdue payments in both length and amount
The seventh annual survey of corporate credit risk management in China – conducted in the fourth quarter of 2009 by Coface, the leading international credit insurance and credit management services group – has revealed that 36.9 percent of respondents consider there will not be an improvement in overdue payments by the end of 2010, with 7.8 percent indicating the situation will not improve for some time. This shows companies in China are yet to develop confidence regarding upcoming payment performances.
Although about 60 percent of respondents reported having benefited from the Chinese government’s large-scale economic stimulus package in 2009, they are unsure how to minimize non-payment risks in China. According to the survey, household electrical appliances, transportation, construction, agriculture, industrial machinery, steel and metals are the top six industries to have benefited from the stimulus package. Yet these sectors, with the exceptions of agriculture and transportation, also include the highest numbers of companies reporting long overdue payments accounting for over 2 percent of their total sales.
The key highlights are:
36.9 percent of respondents consider there will not be an improvement in overdue payments by the end of 2010, with 7.8 percent indicating the situation will not improve for some time.
Companies in China face overdue payments with more average days overdue and greater weight in total domestic sales than in 2008. The number of respondents experiencing payments overdue for over 60 days has increased by 55 percent.
Among respondents offering credit sales, 56 percent more companies offered longer credit terms – of at least 90 days – in 2009 than in the previous year.
Source: Coface Press Release
Relevant charts about the survey results are included in the press release, please click on the attachment
|
|
|
Moody's Corp. received a Wells notice from the Securities and Exchange Commission alleging that it had made "false and misleading" statements. The Wells notice, which is an official notification from the SEC that a company is being investigated, relates to an issue it disclosed in 2008, when members of one European constant proportion debt obligations monitoring committee may have violated its code of professional conduct.
Moody's acknowledged that it had an error in the way it rated constant proportion debt obligations, or CPDOs, that would have lowered AAA ratings given to the 11 CPDOs to AA territory--or a reduction of one to three notches. But this didn't take into account "qualitative factors" that Moody's committees also consider in the firm's ratings. Moody's found that some members of its CPDO monitoring committee in Europe considered factors other than credit--namely whether changing the rating would be embarrassing to Moody's or affect another market participant.
Source: Marketwatch.com
|
|
|
|
Close to 80,000 Australian firms had their risk profile downgraded in the first three months of 2010 and are now more likely to experience financial distress over the coming year despite the strength of the economic recovery.
The latest risk research from Dun & Bradstreet reveals the number of firms downgraded has risen by close to 15,000 compared to the same time last year, a period when the local and global economy was continuing to face significant pressures from the global credit crisis. The research also reveals that downgrades have resulted in more than 36,000 Australian firms being classified as a high risk of experiencing financial distress in the coming 12 months.
A full media release is attached for your interest. If you have questions or would like to organise an interview with Damian Karmelich, D&B’s Director of Corporate Affairs, please contact Danielle Woods at 02 8270 2926 / woodsd@dnb.com.au
To read the full story click on the attachment
|
|
|
SHORT HILLS, N.J., May 17, 2010 (BUSINESS WIRE - D&B (NYSE: DNB), has joined forces with TransUnion, a global leader in consumer credit and information management, to integrate consumer and business credit information to improve the predictiveness on small and micro business credit risk. Data and score enhancements, which utilize D&B's proprietary DUNSRight(R) Quality Process giving customers unmatched business information, are being previewed at D&B's booth #422 at the annual National Association of Credit Managers Credit Congress in Las Vegas today through May 18.
"With D&B's high-quality global database of over 150 million business records and TransUnion's 500 million global consumer credit histories, we will provide powerful analytic tools to boost our customers' ability to assess credit-worthiness. This demonstrates our commitment to innovation, providing customer value and helping our customers decide with confidence," said Byron Vielehr, president, D&B Global Risk and Analytics.
D&B's Commercial Credit Score 8.0, which will be launched in August, incorporates aggregated consumer credit attributes for geographic areas with business risk information. This provides increased predictability for the credit risk assessment of small businesses that have fewer than 15 employees and often have minimal established trade credit. "Small businesses' credit-worthiness can be correlated to consumer credit history," noted Vielehr. "By merging the credit data from two leading companies, we elevate the predictive power of our scores and are able to help our customers make better risk decisions." The enhancements to the Commercial Credit Score 8.0 are the first planned innovation to improve D&B's commercial information and insight with consumer credit data. Further enhancements to D&B data and scores are being planned for late 2010 and 2011. "The economic decline of the last two years has made improved analytics more important than ever to our customers," said Vielehr. "Our goal is always to give our customers unique insights to make confident decisions about their risk."
About D&B: D&B (NYSE:DNB) is the world's leading source of commercial information and insight on businesses, enabling companies to Decide with Confidence(R) for 168 years. D&B's global commercial database contains more than 150 million business records. The database is enhanced by D&B's proprietary DUNSRight(R) Quality Process, which provides our customers with quality business information. This quality information is the foundation of our global solutions that customers rely on to make critical business decisions. http://www.dnb.com
About TransUnion: As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion employs associates in more than 25 countries on five continents. http://www.transunion.com/business
SOURCE: D&B Press Release
D&B and TransUnion are members of BIIA
|
|
|
|
Beijing, April 22, 2010----China Economic Monitoring Center of China National Bureau of Statistics and Sinotrust International Information & Consulting (Beijing) jointly release the "2010 Q1 China Automotive Industry Climate Index."
The Comprehensive China Automotive Industry Climate Index registers 105.8 points
The Pre-warning Index of China Automotive Industry records 133.3 points
The Entrepreneur Expectation Index of China Automotive Industry registers 115.6 points
The Dealer Manager Index of the China Automotive Industry registers 97.9 points
Forecast of the China Automotive Industry Climate Index in Q2 of 2010
According to the survey of automakers and dealers, we should pay attention to the following three issues. Firstly, automakers predict that a possible surge in raw material and energy prices will add to cost pressure. 60.0% of automakers report that the prices of the raw materials and energy they purchased in 2010 Q1 are higher than those purchased in 2009 Q4, and 80.0% think the prices will go further up in 2010 Q2. Secondly, dealers' sales close rates show a decline. According to the survey, 71.5% of the respondents report that in 2010 Q1 their sales close rate experienced a decline from 2009 Q4. However, when asked to predict their sales close rate in 2010 Q2, 41.8% think the rate will rise. The figure (41.8%) is nearly 20 percent points higher than the proportion of the people who think the situation will deteriorate. Thirdly, dealers are a bit overstocked. Nearly 40% of the dealers report they are somewhat overstocked and more than 50% think their inventories will continue to increase in 2010 Q2.
To read the full story click on the attachment
|
|
|
Providing greater access and insight into the performance of international commodity markets, Standard & Poor's, the world's leading index provider, announced today the launch of the S&P World Commodity Index ("S&P WCI"). The S&P WCI is the first index to consist solely of listed commodity futures contracts that trade outside of the U.S.
The S&P WCI is a rules-based, world-production-weighted commodity index. It includes 22 commodities covering the Agriculture, Energy and Metals sectors, listed on eight international exchanges and traded in six currencies in Asia, Europe, and North America. While the S&P GSCI is comprised of only U.S. dollar based commodities, the S&P WCI is multi-currency.
Source: S&P Press Release
|
|
|
|
Coface issued a press release regarding its payment survey results of the first quarter of 2010. The key highlights are:
Among respondents that have reviewed credit terms in the past six months, 82.7 percent have reduced credit terms to buyers – sharply increased 40.2 percent from the previous quarter (59.0 percent).
Of the respondents who anticipate their company’s credit terms will become even tighter in the next six months, 37.5 percent regarded reduced customer confidence as the main cause. This figure is 46.5 percent higher than for the previous quarter (25.6 percent).
Though both late and default payments have improved for four consecutive quarters, market uncertainties concern enterprises and affect their confidence regarding the future.
To read the entire survey document click on the attachment
|
|
|
Credit insurers lived up to their obligations during the financial crisis by insuring tradecredit risks (+/- 20 million credit limits) and paying out claims at a ratio of around 84% in 2009 (pre-crisis +/- 40%) the International Credit Insurance and Surety Association (ICISA) said in a press release.
Cost of capital and tightened risk environment will continue to challenge the industry. In view of severe criticism by customers during the financial crisis about sudden cancellations of credit insurance coverage, the credit insurance industry promises increased information sharing and transparency.
To read the full story please click on the attachment
|
|
|
Business Bankruptcy Filings Increased by 40% in 2009 according to statistics released by the American Bankruptcy Institute.
Business bankruptcies increased to 60,837 filings in 2009 which represents a 40% increase from the 43,533 filings during the 12-month period ending Dec. 31, 2008. The 12-month business filing total for 2009 was the highest since the 62,304 filings that were recorded for the 1993 calendar year.
"These figures confirm the economic stress that businesses continue to endure," said ABI Executive Director Samuel J. Gerdano. "As more businesses seek the financial relief of bankruptcy, the filing totals for 2010 are likely to surpass last year .
Source: Bernard Sands LLC http://smythsolutions.com/index.asp
|
|
|
|
Acording the findings of the latest business-to-business trade payments figures released by Dun & Bradstreet Australia the payment behaviours of Australian firms could de-rail the economic recovery, with terms deteriorating for the third consecutive quarter despite improving business conditions.
The findings reveal that payment terms in the March 2010 quarter rose to 54.1 days. Although this is an improvement of around three days from the height of the Global Financial Crisis, payment terms remain more than two weeks above the standard 30 day term. In addition, the latest results come at a time when 27 percent of firms continue to face difficulties accessing credit. This inability to access funds to cover shortfalls makes a strong cash flow even more critical to survival and growth.
For further information contact:
Danielle Woods | Corporate Affairs Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
Mumbai, Mar 18, 2010: Credit Information Bureau (India) Limited (CIBIL) has inked partnership with 31 leading Microfinance Institutions in India to start a Microfinance Credit Information Bureau. These 31 MFI’s are part of the Microfinance Institutions Network (MFIN), a self regulatory organization of NBFC MFIs that aims to work with regulators to promote microfinance to achieve larger financial inclusion goals.
This revolutionary initiative by the MFIs is set to change the current scenario of lending in the Indian microfinance sector by enabling informed credit decisions through information sharing. Speaking at this announcement, Mr. Arun Thukral, Managing Director, CIBIL said, "The establishment of Microfinance Credit Information Bureau is a vital step towards inculcating financial discipline among the borrowers of micro-loans and will increase credit penetration. It will help promote responsible lending and enable MFIs to assess the credit worthiness and current exposure levels of loan applicants".
Currently, the Indian microfinance sector is estimated at around 120 million households which translate into a credit demand of Rs 1.2 trillion at an average per household credit demand of Rs 10,000/-.* Having a huge potential to strengthen India’s economy further, this sector has grown steadily, but issues over multiple lending and overexposure could become a concern. As a welcome step to mitigate this concern, the MFIs now have decided to join hands with CIBIL to set up a credit information bureau with the view to improving the credit risk management and to help keep over-indebtedness under check.
"Microfinance Institutions already serve over 25 million customers who have no documented credit history. The task of tracking the credit history of such large numbers is challenging. By supporting this initiative, Cibil will be participating in a nation-building effort that will go a long way in reducing the risks caused by multiple lending and help maintain the 99% plus performing assets record of the sector," said Mr. Vijay Mahajan, Chairman, Microfinance Institutions' Network (MFIN).
“Being in this industry for over five years as the only functional credit information company, CIBIL has had an extensive understanding of the uniqueness of the Indian market in terms of its fragmented nature, its diversity and the magnitude of the credit information that could be stored. The global expertise of our technology partner, TransUnion, will be another reason to fully support a credit bureau for the MFI’s sector. Moreover, our technology architecture is scalable and will be geared to handle the challenges and uniqueness of the microfinance industry in India” added Mr. Thukral.
CIBIL pioneered credit information sharing in India, and has contributed significantly to helping improve the functionality and stability of the Indian financial system. Today CIBIL’s database has grown to over 155 million records and a member base that exceeds 200 financial institutions. CIBIL’s partnership with the two leading global credit information companies- TransUnion and Dun & Bradstreet will continue to support the quest to help the credit industry mitigate risk and maximize profitability while allowing access to credit at better terms and conditions for the Indian consumer.
About CIBIL
CIBIL is India’s first credit information company. CIBIL creates immense value for financial institutions by providing objective data and tools to help them manage risk, and devise appropriate lending strategies thus reducing cost and maximizing portfolio profitability. CIBIL benefits both credit grantors and consumers by collecting, analyzing, and delivering information on credit histories of millions of borrowers. CIBIL provides its members with information on both consumer and commercial borrowers, thus enabling them make sound credit decisions across both individuals and corporates.
http://www.cibil.com/press_room.htm#
|
|
|
|
Country Risk once again takes center stage in risk assessment:
Sixteen countries around the globe have had their country ratings downgraded since the start of 2010, demonstrating that economic and commercial risk are still prevalent despite the global recovery. However, the continuing improvement in the local macroeconomic environment has resulted in Australia’s risk trend being upgraded – the nation has also been rated one of the safest countries in which to invest globally.
Dun & Bradstreet's latest Economic & Risk Outlook Report reveals the global recovery now underway will continue throughout 2010 however, rates of recovery will be markedly different across regions and countries. Asian growth is likely to remain much faster than the United States and Europe as continued high levels of unemployment undermine consumer confidence despite demand being supported by continued fiscal and monetary measures in these markets. On the corporate side, considerable spare capacity in many developed economies could result in a reluctance to invest and take on more workers.
Regardless, conditions have improved markedly from early 2009. Global growth is expected to reach 2.4 percent in 2010, while the US (2.0 percent), Europe (0.7 percent) and Japan (0.2 percent) will lag behind China (9.8 percent).
A full media release is attached. For further information or to arrange an interview with Damian Karmelich, please don’t hesitate to contact me on 02 8270 2926 / woodsd@dnb.com.au
Danielle Woods | Corporate Affairs Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
A new business tool is expected to improve access to finance for small and medium-size enterprises (SMEs) in Singapore.
Credit Bureau Singapore (CBS) officially launched a 'blended' credit score aimed at SMEs last week. First announced in December last year, the new score is a collaboration with FICO, an American provider of analytics and decision management solutions. The Small Business Administration in the US uses a similar tool in collaboration with the same vendors.
At the cost of $25-35 per report, the new score will merge CBS's existing consumer credit information with commercial data from CBS's sister company Dun & Bradstreet Singapore to produce a score of between 100 and 400. The higher the score, the lower the risk of loan default by the SME.
Access to finance is a major hindrance for SMEs. They have had less time than bigger businesses to build up a track record, and are therefore less likely to get loans. A credit score is a proven risk assessment tool that banks can use to assess creditworthiness. CBS's blended score considers not just commercial data from the business, but also the business owner's personal credit behaviour. This is more reflective of an SME's creditworthiness, as SME owners often inject personal cash into their company.
A reliable credit score will also cut paperwork for SMEs and banks. Tony Lythgoe, head of the Global Credit Bureau Programme of the World Bank's International Financial Corporation, said the score will enable banks to assess more quickly if a SME is likely to get a loan from them, so the SME will not waste time applying for a loan it will not get. 'This is work that is not productive to the business,' said Mr Lythgoe.
Teng Theng Dar, CEO of the Singapore Business Federation, expects the blended score to improve trade financing opportunities for SMEs looking to push overseas.
Source: Singapore Business Times April 20th 2010
In most countries outside the UK, US and Australia, consumer and corporate credit bureaus operate separately and do not share information. The blended score will thus be the first of its kind in Asia. BIIA welcomes this development. The Singapore SME credit bureau is a role model in information sharing to help SMEs to obtain access to credit.
To read the CBS’s FICO® SME Score Fact Sheet click on the attachment
|
|
|
Credit ratings are systemically important; relied upon by individual and institutional investors and regulators; and central to capital formation, investor confidence and economic efficiency. Credit rating agencies play a gatekeeper role in financial markets that justifies the same level of oversight and accountability that applies to securities analysts, auditors, and investment banks.
The attachment is a summary of provisions S 3217 – the Restoring American Financial Stability Act - Title IX, Subtitle C – “Improvements to the Regulation of Credit Rating Agencies (excerpted from USA Senate Banking Committee Report)
Source: BIIA research
To read the full story click on the attachment
|
|
|
Goldman CEO Blankfein stated some months ago: “We participated in things that were clearly wrong and have reason to regret.” According the SEC’s allegations the investors now learning more specifically what Mr. Blankfein was referring to.
The Securities and Exchange commission SEC alleges that just before the subprime bubble burst in 2007, Goldman worked with a hedge fund manager to market certain subprime mortgage-related securities. Goldman did not tell the purchasers that they were buying an interest in loans hand-picked by the hedge fund, who took a very bearish view of the subprime market. Or that he had chosen them for their high likelihood of default. The buyers were also not informed that the hedge fund manager’s purpose in structuring the deal was to take a short position against the investments they were making. This trade ultimately netted him roughly $1bn in profits, while the buyers lost their investment.
Implications: If the allegations are correct, the SEC should throw the book at Goldman and its executives. Of course, the bank rejects the complaint, but in any case it will leave a sour taste for investors.
Source: Financial Times
2010-04-17
|
|
|
|
It is happening again and the country is angry already. Food prices have been skyrocketing in recent weeks and there is no sign that this will end anytime soon. The official rate is about 9% and that is higher than it has been in years but most agree that the government data is not to be trusted and assert that the rate will be close to 30% by the end of the year.
The cycle is well under way as some unions have already forced pay hikes of 25% to 35%. The inflation crisis has placed almost 40% of the country in dire straits and made it impossible for people to afford the normal basket of goods they once bought. Conditions are very rapidly deteriorating and the government looks to be
without a clue.
Source: Dr. Chris Kuehl Armada Corporate Intelligence 2010-04-09
4/9/2010 2:34:53 AM
|
|
|
|
Tuesday 6 April 2010 - Veda Advantage's bi-annual Australian Debt Study reveals the level of debt stress is on the rise, back to September 2008 levels, with one in five (19%) Australians with debt finding it difficult to make repayments, or unsure how they will make their next repayment.
The study, conducted by Galaxy research, found four in five (82%) Australians worry about the ability to repay debt over the next 12 months - up from 76% of Australians in September 2009. This is the highest level of debt stress in the past two-and-a-half years of this study.
Also of concern is the finding that one in seven (14%) Australians have missed a minimum bill repayment in the past three months - up from 12% in September 2009. Of those who had missed a repayment, one in ten (11%) are looking to take on more debt in the next six months.
Chris Gration, Head of external relations at Veda Advantage, said the Government needs to act quickly to protect Australian families experiencing stress from falling into a debt trap. "The Government is dragging its feet delivering on its promised changes to the credit reporting system. "Our research indicates 13% of Australians who are currently struggling to repay their bills, are looking to take on yet more credit when they should be paying down debts they currently have.
"Helping lenders prevent Australians from falling into a debt trap should be a high priority. Debt stress is rising again - back to 2008 levels when concern about the impact of the global financial crisis on Australia was highest.
"Implementing promised credit reporting reforms will assist lenders to more easily identify when a borrower is overcommitted.
"It gives credit providers the tools they need to implement new responsible lending laws," Mr Gration said. "The addition of positive data will make credit reporting balanced and fairer for all Australians and would protect vulnerable families from taking on more debt than they can handle, and from falling into a debt spiral," he said.
Credit reporting, which falls under the Privacy Act, has been under review since January 2006.
Comprehensive, or positive, reporting was recommended by the Australian Law Reform Commission in August 2008, with then Special Minister of State John Faulkner committing to having legislation in place within 12-18 month.
Positive reporting records additional information including if you have been struggling to make minimum repayments on existing credit lines.
Other Australian Debt Study findings include:
- Younger Australians are the most likely to have missed bill payments, with 26% of Australians who have missed a bill payment in the last three months aged between 25 and 34.
- The study showed a higher proportion (16%) of Australians aged between 18 and 24 are likely to apply for credit in the next 12 months compared to 8% overall.
- The 18-24 demographic has also been driving credit card growth, with one third (34%) of the 18 to 24 demographic having a credit card.
- Of those Australians who missed a repayment, 17% owed more money now than 12 months ago,
- 14% of Australians with some type of credit owe more now than they did 12 months ago,
- Higher interest rates were identified as one of the main reasons many Australians owe more than they did 12 months ago.
The Australian Debt Study Report is conducted bi-annually by Galaxy Research Omnibus telephone study. This is the sixth indexed report in the nationally represented series, which interviewed 1042 Australians.
Source: Veda Advantage Press Release http://www.vedaadvantage.com
|
|
|
|
It is happening again and the Argentina's population is angry already. Food prices have been skyrocketing in recent weeks and there is no sign that this will end anytime soon. The official rate is about 9% and that is higher than it has been in years but most agree that the government data is not to be trusted and assert that the rate will be close to 30% by the end of the year. The cycle is well under way as some unions have already forced pay hikes of 25% to 35%. The inflation crisis has placed almost 40% of the country in dire straits and made it impossible for people to afford the normal basket of goods they once bought. Conditions are very rapidly deteriorating and the government looks to be without a clue.
Source: Chris Kuehl Armada Corporate Intelligence 2010-04-09
|
|
|
|
Strong employment and selling price expectations point to capacity constraints
The latest D&B Australia National Business Expectations Survey for the June quarter 2010 shows
- Sales expectations are up five points to an index of 33 – the highest level in six years and
- profits expectations have risen again – up seven points to 17, the highest level in five
years
- Capital investment expectations have risen to the highest level in almost seven years –
an index of 16
- Expectations for growth in inventories in the June quarter are at the highest level in more
than five years
However executives still voice concerns over credit access, debt levels and lagging trade payments:
- Twenty seven percent of firms had less access to credit in the last quarter and 18 percent
had much greater or moderately better access
- Twenty six percent of firms expect to reduce debt in the next three months, while 17
percent expect to increase debt and 50 percent plan to maintain current levels
- Forty three percent of executives are being negatively impacted by lagging business to
business payment terms, an eight percent rise since January
To read the full story click on the attachment.
For further information contact: Nathan Williams Corporate Affairs Manager
Dun & Bradstreet Australia | Level 2, 143 Coronation Drive, Milton, QLD 4064
t +61 7 3360 0635 | f +61 7 3360 0639 | m + 61 414 569 380 | e williamsnt@dnb.com.au | w http://www.dnb.com.au
|
|
|
Liquidity Risk was brought sharply to the attention of the business community when Lehman Brothers failed in 2008.
Hedging future physical positions should largely eliminate risks arising from price changes over time but it simultaneously gives rise to other risks. The risks that arise can present a real threat to the future viability of a business, unless they are carefully managed.
Whether you are a producer of a commodity or a consumer of wholesale quantities of natural gas, electricity, coal, aviation fuel, diesel or aluminium (for example) the prospect of fixing the future price at which to sell or source such commodity is very attractive. However Liquidity Risk is one of the risks that often arises from hedging transactions, so the outcome could damage a company’s liquidity.
In the attached article Ron Wells has tried to explain the risks that attend hedging and how they can be managed.
Source: Ron Wells http://www.barrettwells.com
|
|
|
TransUnion Launches Credit Monitoring Service, Opens New Customer Centre to Help Consumers Combat Identity Theft and Manage Credit Health
HONG KONG, March 24 /PRNewswire-Asia/ -- TransUnion announced the launch of a new service called "Credit Monitoring," the first tool of its kind in Hong Kong capable of proactively alerting consumers when key changes occur to their credit information. The announcement came at the unveiling of the company's new customer centre, which features additional staff and resources to further assist consumers in managing their credit health and addressing issues pertaining to fraud and identity theft.
TransUnion Credit Monitoring provides consumers with added peace of mind by notifying them via SMS and email when important changes to their credit information occur. These changes, provided to TransUnion by banks and financial institutions who are the company's members, may range from the opening of a new credit account, reporting of a address or phone number or even a new credit application enquiry at a bank or financial institution, using the identity of the consumer. The service is available directly at http://www.transunion.hk for a subscription fee of HK$180 per year. Consumers may also schedule a visit to the Customer Centre located at 9 Canton Road, Tsim Sha Tsui, Kowloon Hong Kong to enroll.
"With the growing threat of identity theft in Hong Kong and around the world, it has never been more important for consumers to keep a close eye on their personal data," said Lawrence Tsong, TransUnion's managing director.
"TransUnion Credit Monitoring is the only tool capable of alerting consumers to key changes in their credit information, allowing them to quickly detect and investigate unauthorized activity that may indicate fraud." As Hong Kong's first and only consumer credit reporting company, TransUnion currently maintains the credit information of over 4.2 million consumers in Hong Kong. TransUnion's credit reports, which contain information about consumers' credit accounts, current credit usage, account repayment history and their credit scores, are now widely used by Hong Kong banks and financial institutions as a major reference when reviewing consumer loan and credit applications. This new service will supplement the credit reporting service provided by TransUnion.
"Over the years, the credit reporting process has played an important role in helping consumers gain access to the credit they deserve for loans, mortgages and other forms of credit," explained Mr. Tsong, "Now, with TransUnion credit monitoring, area consumers are empowered by access to a level of protection and peace of mind never before possible."
A large-scale consumer education campaign, featuring print, online and outdoor TV advertisements will support the launch beginning end of March.
About TransUnion
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decision-making. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion has employees in more than 25 countries on five continents.
For more information, please visit: http://www.transunion.hk .
Contact:
Shirley Yuen
TransUnion
Email: shirleyyuen@transunion.hk Tel: +852-2979-3005
Charlotte Fan
GolinHarris
Email: charlotte.fan@golinharris.com Tel: +852-2501-7978
|
|
|
|
CHICAGO, IL--(Marketwire - March 22, 2010) - New TransUnion data finds that its proprietary Insurance Risk Index declined for the second straight quarter at the end of 2009, possibly pointing towards a moderation in risk for the U.S. insurance industry. Developed as a risk barometer specifically for the insurance industry, the Insurance Risk Index is designed to show the relative expected loss ratio for market segments throughout the country.
The Insurance Risk Index decreased by 14 basis points in the fourth quarter of 2009, falling from 99.46 in the third quarter of 2009 to the current 99.32 level. The last time the Insurance Risk Index decreased two consecutive quarters was prior to the current recession between the fourth quarter of 2006 and the first quarter of 2007.
The key ingredient in the Insurance Risk Index is TransUnion's insurance risk models, which are influenced by the length and stability of responsible credit performance. Benchmarked to the U.S. national average of 100 as of March 31, 2001, the Insurance Risk Index facilitates comparisons across geographies and demographic segments. For example, a state with an index of 110 is 10 percent riskier than a state with an index of 100.
"The drop in the Insurance Index is encouraging news for the industry and consumers," said Geoff Hakel, group vice president in TransUnion's insurance business unit. "Allowing the insurance industry to compare the risk level of states in which they operate to their own portfolios creates an environment where more informed risk decisions can be made. Better portfolio management has the potential to lead to better insurance pricing for consumers."
TransUnion's Insurance Risk Index - Statistics
From an insurance risk perspective, the Insurance Risk Index posted its second noticeable decrease since the fourth quarter of 2007. More importantly, every state, except Connecticut, Minnesota and Mississippi, exhibited a decline from the previous quarter. Year over year, the Insurance Risk Index has increased only 0.14 percent since the fourth quarter of 2008.
Montana continues to rank as the riskiest state with an index of 109.33. It is followed by Washington (105.56), Mississippi (103.02) and Arkansas (101.78). The states demonstrating the least risk from an insurance risk perspective are Alaska (94.80), Minnesota (95.34), Massachusetts (95.41) and Hawaii (95.82).
Analysis
"The Insurance Risk Index, which today stands below 100, should continue to drift slightly lower and then flatten out over the next few quarters as employment conditions across the U.S. improve. Improving employment conditions enable more consumers to remain current on their existing credit obligations, as the timely repayment of credit obligations is an important component within TransUnion's insurance risk models," said Chet Wiermanski, global chief scientist at TransUnion. "In particular, the second consecutive quarterly decline in the Insurance Risk Index within more than 47 states is very encouraging."
TransUnion's Trend Data database
The source of the underlying data used for this analysis is TransUnion's Trend Data, a one-of-a-kind database consisting of 27 million anonymous consumer records randomly sampled every quarter from TransUnion's national consumer credit database. Each record contains more than 200 credit variables that illustrate consumer credit usage and performance. Since 1992, TransUnion has been aggregating this information at the county, Metropolitan Statistical Area (MSA), state and national levels.
http://www.transunion.com/trenddata
About TransUnion
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion employs associates in more than 25 countries on five continents.
http://www.transunion.com/business
Graphics and/or photographs to accompany this release can be obtained by members of the media by contacting Cliff O'Neal at 312-985-2540 or coneal@transunion.com or Dave Blumberg at 312-972-6646 or dblumbe@transunion.com.
Contact
Dave Blumberg
TransUnion
E-mail dblumbe@transunion.com
Telephone 312 972 6646
|
|
|
|
Joachim C Bartels spoke recently at two RISK 2010 credit management conferences organized by D&B Australia in Sydney and Melbourne. In a three part presentation Bartels examined the origins of the global financial crisis, the lessons learned, the role of information in the crisis and the implications on credit management and credit information services moving forward.
Part One: “Lessons learned." Bartels identified the various actors in the value chain of bringing structured financial instruments to market and their particular failures. People still wonder how structured finance, in particular in the consumer mortgage sector can have such an impact on trade credit. Trade credit was really an innocent bi-stander when the subprime crisis erupted. Trade credit in the end became a victim of the crisis.
Part Two: “The role of information in the crisis.” Many people seem to blame, at least in part, the information industry. Bartels explained the different information services involved and how they performed during the crisis.
Part Three: “Implications on credit management and credit information services.” The implications are still severe. It certainly made the task of credit managers more difficult, but at the same time credit management became much more visible and more appreciated in a company’s hierarchy. However credit managers are still in a defensive mode. This trend is expected to continue for at least 12 to 18 months based on a BIIA survey of credit managers.
When the 'credit freeze' hit trade credit the emphasis switched quickly from credit granting to risk mitigation and liquidity management. Sixty-one percent of respondents stated that the trend is expected to continue for at least 12 to 18 months. Twenty-one percent said the trend may last at least twenty-four months. Difficulties in obtaining bank financing by their clients was given as a primary reason.
To manage credit during the heat of the crisis companies invoked shorter credit terms, reduced lines of credit and engaged in active workout on the due date. Credit managers indicated there were more intensive uses of alert services and more frequent uses of credit reports. While the going got tough for many, others took the position that the credit crunch served as a valuable learning curve.
The implications of the current crisis for credit management are that credit managers will continue to be defensive for some time, as they are the custodians of a valuable asset: trade receivables. Some credit managers see the necessity to automate lower risk assessment in order to focus on higher value added activities. Credit managers would also like to see more transparency in banking relationships of their customers, such as loan exposure and lines of credit.
To manage the crisis, credit management relied, as in the past, on a range of external information tools, such as credit reports, alert services, credit ratings, supplier information, financial statements and industry credit groups. External information services were used in greater intervals and its contents analyzed more diligently than previously practiced.
External information services were used in greater intervals and its contents analyzed more diligently than previously practiced. Since financial statements are relatively static, credit managers made more frequent visits to clients to obtain interim financial statements in order to determine their liquidity status. Monitoring and alert services became an important element in liquidity management.
Given the severity of the credit freeze and speed in which it happened exposed the current inertia in keeping credit information up to date. In this volatile environment the reliability and freshness of information is more important than ever. The real and perceive time lag has become a sensitive issue and needs to be addressed by the industry.
To view the presentation click on the attachment
Author: Joachim C Bartels, Managing Director
Business Information Industry Association
|
|
|
Australian firms face the prospects of renewed cash flow pressures in the months ahead according to the latest business-to-business trade payments data received by Dun & Bradstreet Australia. The findings reveal that the deterioration of payment days (21 days) in the December 2009 quarter has taken terms to 53.9 days and largely reversed the gains made in the September quarter 2009. See attached chart.
A further deterioration of the size recorded in the December 2009 quarter could put payment days back near the levels back experienced during the global financial crisis.
Christine Christian, CEO of D&B Australia believes the latest data is a warning sign for executives not to take their eyes off the fundamentals of liquidity management and business survival.
Source: D&B Australia, a member of BIIA
|
|
|
CRISIL Issues 10,000th SME Rating - a Significant Milestone in Helping Indian Companies Gain Access to Capital
Underscores The McGraw-Hill Companies' Commitment to Helping India Drive Economic Growth, Job Creation and Market Development
SME Ratings from India's Largest Credit Rating Agency Will Help Small- and Medium-Sized Enterprises (SMEs) Save More Than US$125 Million in Interest Costs
MUMBAI, India, March 15, 2010 /PRNewswire via COMTEX/ -- Harold McGraw III, chairman, president and chief executive officer of The McGraw-Hill Companies, today presented CRISIL's 10,000th SME rating certificate to Vardhaman Technology Private Limited, a computer hardware company. The event was hosted by Ms. Roopa Kudva, managing director and chief executive officer of CRISIL Ltd.
CRISIL's SME ratings help Small and Medium Enterprises (SMEs) gain affordable access to the capital they need to grow their businesses and create jobs. The McGraw-Hill Companies owns Standard & Poor's (S&P), the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research, data and valuations, and is the majority stakeholder of CRISIL, India's largest credit rating agency.
SMEs have played a vital role in the growth of the Indian economy, contributing almost half of the country's industrial output while creating one million new jobs each year. In 2005, CRISIL began rating the creditworthiness of SMEs, and today's 10,000th SME credit rating marks a significant milestone in the company's commitment to helping empower these companies with the resources they need to advance their entrepreneurial endeavors.
At the event, Mr. McGraw and Ms. Kudva also launched a CRISIL publication titled "Transforming Potential into Achievement: CRISIL's Analysis of 50 Leading SMEs." The publication aims to serve as an inspiration for SMEs looking to grow into stronger enterprises.
"India's entrepreneurial spirit continues to fuel the country's robust growth by creating new jobs and markets," said Mr. McGraw. "SMEs are an important growth engine for India, and we are proud to play a role in helping them capture the immense opportunities being created by the 21st century global economy. Part of McGraw-Hill's mission is to help markets and societies reach their full potential, and we will continue to expand our ratings coverage so more Indian companies can gain access to capital to fund business investment and growth."
Most SMEs are managed by first-generation entrepreneurs and often struggle to obtain affordable funding for their businesses. CRISIL's SME ratings program has helped thousands of these companies gain credibility with lenders, customers and partners. Instead of benchmarking SMEs against large corporate houses, CRISIL uses a customized rating scale for SMEs. Using innovative delivery mechanisms and leveraging technology to the fullest, CRISIL has evolved a robust framework for the credit assessment of SMEs that reflects the learning gained from two decades of ratings and research experience. CRISIL's reach in more than a hundred Indian cities ensures easy access to SMEs across the country.
"Highly affordable ratings and easy access through CRISIL's wide network have been key to rapid expansion of the rated SME population," said Ms. Kudva. "SME ratings are helping the market make better-informed decisions. Bankers find CRISIL's reports insightful and valuable, and use the additional insights to support their lending and pricing decisions. We estimate that rated SMEs have already saved more than a billion rupees in interest costs alone, and will save a total of Rs.5.6 billion (US$125 million) by 2013."
CRISIL's SME ratings are steadily embedding themselves in banks' SME lending decisions: more than 30 public and private sector banks endorse CRISIL SME ratings, and use them as part of their internal credit evaluation processes. Furthermore, 13 banks provide interest rate incentives of up to 1.25% to enterprises with good SME ratings from CRISIL.
"At Vardhaman Technology, we are pleased to be the recipients of CRISIL's 10,000th SME rating, and wish the initiative all success," said Mr. Amit Rambhia, CEO and Joint Managing Director of Vardhaman Technology, the 10,000th SME rated by CRISIL. "This rating has benefited us greatly as we look to grow our business. Our bankers have reduced both the interest rate we pay on our loans and the collateral that we need to post. Internally, it has helped us better assess our strengths and weaknesses, and we believe that being rated might also help us raise equity in the future. We would like to see these ratings gain greater prominence."
SME ratings also are bringing about an important structural and cultural shift in Indian industry, with SMEs gaining a deeper understanding of the transparency and disclosure standards that are expected of them as they scale up their businesses. Today's 10,000th rating demonstrates the power of the collaboration between the Ministry of Micro, Small, and Medium Enterprises (MSME) of the Government of India, and rating agencies. CRISIL's SME ratings are valid for one year, and the first rating for any SME is subsidized by the government through the National Small Industries Corporation, an arm of MSME. The full cost of subsequent ratings has to be borne by the SME concerned, and approximately 40% of SMEs rated by CRISIL have opted for a follow-up rating, indicating the value that these companies place on the rating.
About CRISIL:
CRISIL is India's leading ratings, research, and risk and policy advisory company. CRISIL's majority shareholder is Standard & Poor's. CRISIL offers domestic and international customers a unique combination of local insights and global perspectives, delivering independent information, opinions and solutions that help them make better informed business and investment decisions, improve the efficiency of markets and market participants, and help shape infrastructure policy and projects. Our integrated range of capabilities includes credit ratings and risk assessment; research on India's economy, industries and companies; investment research outsourcing; fund services; risk management and infrastructure advisory services.
About S&P:
Standard & Poor's, a subsidiary of The McGraw-Hill Companies (NYSE: MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With offices in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for 150 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit
http://www.standardandpoors.com/.
Source: McGraw-Hill Companies Press Release
|
|
|
|
According to the latest Business Expectations Survey from Dun & Bradstreet Australia the economic and risk climate is improving. Key findings of the business expectation survey include:
- Sales expectations are up five points to an index of 33 – the highest in six years and profits expectations have risen again – up eight points to 18, the highest in five years
- Capital investment expectations have risen to the highest level in almost seven years – an index of 15
- Expectations for growth in inventories in the June quarter are at the highest level in more than five years
- Employment expectations are back in positive territory to an index of nine, rising nine points since the March quarter
- Selling price expectations have risen nine points from the March quarter index of nine – the lowest level ever recorded in the survey
To read the full story click on the attachment.
To obtain further information please contact:
Nathan Williams | Corporate Affairs Manager
Dun & Bradstreet Australia | Level 2, 143 Coronation Drive, Milton, QLD 4064
t +61 7 3360 0635 | f +61 7 3360 0639 | m + 61 414 569 380 | e williamsnt@dnb.com.au | w http://www.dnb.com.au
3/7/2010 9:28:17 PM
|
|
|
Credit managers are still in a defensive mode. Trends expected to continue for at least 12 to 18 months based on a BIIA survey of credit managers
When the ‘credit freeze’ hit trade credit the emphasis switched quickly from credit granting to risk mitigation and liquidity management. Sixty-one percent of respondents stated that the trend is expected to continue for at least 12 to 18 months. Twenty-one percent said the trend may last at least twenty-four months. Difficulties in obtaining bank financing by their clients was given as a primary reason.
To manage credit during the heat of the crisis companies invoked shorter credit terms, reduced lines of credit and engaged in active workout on the due date. Credit managers indicated there were more intensive uses of alert services and more frequent uses of credit reports. While the going got tough for many, others took the position that the credit crunch served as a valuable learning curve.
The implications of the current crisis for credit management are that credit managers will continue to be defensive for some time, as they are the custodians of a valuable asset: trade receivables. Some credit managers see the necessity to automate lower risk assessment in order to focus on higher value added activities. Credit managers would also like to see more transparency in banking relationships of their customers, such as loan exposure and lines of credit.
To manage the crisis, credit management relied, as in the past, on a range of external information tools, such as credit reports, alert services, credit ratings, supplier information, financial statements and industry credit groups. External information services were used in greater intervals and its contents analyzed more diligently than previously practiced.
External information services were used in greater intervals and its contents analyzed more diligently than previously practiced. Since financial statements are relatively static, credit managers made more frequent visits to clients to obtain interim financial statements in order to determine their liquidity status. Monitoring and alert services became an important element in liquidity management.
Given the severity of the credit freeze and speed in which it happened exposed the current inertia in keeping credit information up to date. In this volatile environment the reliability and freshness of information is more important than ever. The real and perceive time lag has become a sensitive issue and needs to be addressed by the industry.
Source: FCIB; ICISA and BIIA interviews
BIIA expresses its gratitude to the FCIB (An Association of Executives in Credit, Finance and International Business) and ICISA (International Credit Insurance and Surety Association) and their members for providing their valuable insights and opinions.
March 01, 2010
To get a copy of the full survey results contact: biiainfo@biia.com
BIIA Members click on the link: http://www.biia.com/memberNewsPW.php
|
|
|
|
CHICAGO, IL--(Marketwire - February 22, 2010) - TransUnion's quarterly analysis of trends in the credit card industry revealed that the national credit card delinquency rate (the ratio of bankcard borrowers 90 days or more delinquent on one or more of their credit cards) increased to 1.21 percent in the fourth quarter of 2009, up 10 percent over the previous quarter. Year over year, credit card delinquencies remained flat.
The report is part of an ongoing series of quarterly consumer lending sector analyses focusing on credit card, auto loan and mortgage data available on TransUnion's Web site. Information for this analysis is culled quarterly from approximately 27 million anonymous, randomly sampled, individual credit files, representing approximately 10 percent of credit-active U.S. consumers and providing a real-life perspective on how they are managing their credit health.
Source: TransUnion
To read the full release please click on the attachment
|
|
|
The Europeans are as dependent on the small business community as the US and in some respects the business need is even greater than in the US given the way that most companies have been financed over the last few years.
Companies that employ fewer than 250 employees account for 65% of the jobs in Europe as compared to 55% of them in the US. The region as a whole differs from the US in some significant ways but especially when the subject is finance. It is far harder for companies in Europe to turn to the capital markets than it is in the US as there are fewer private investment funds and fewer venture capitalists willing to risk their money on small companies. There is also a challenge for companies that want to invest their own money back into the business as taxes tend to discriminate against that kind of action.
Instead the average small business has turned to the bank for the money it needs to expand and to handle its business seasonality. In the small business community that seasonality is a major issue as most of the companies have very distinct periods of expansion and equally distinct periods of slow growth. It is the bank loan that smoothes that process out a little. In the last year that access has been highly restricted. Banks have soaked up a great deal of liquidity from the European Central Bank and from various government schemes but just as in the US, the bulk of that money has not made it out of the banks. The same process is at work. The rhetoric that pours from the European capitals is all about the evils of banks and the need to tax and regulate and impose fees of epic proportion. In the end many of these proposals will probably die a quiet death but not all of them and that makes banks far more cautious than they have been in the past. They don’t know what those taxes and fees will amount to and they don’t know what will be required of them as far as those “living wills” are concerned. That essentially paralyzes them and reinforces the new conservatism that grew out of the debacle in the first place.
The profligate banks have been driven from the scene to a significant extent and what has been left behind is the cautious and careful bank that lends only to those it knows and trusts. The banks are also hiking their interest rates to levels not seen in some time. The rates of 5% and 6% have been replaced by rates in the 12% to 15% range. Perhaps this is where they should always have been but after many years of cheap money this new range is causing a real shock to many a small company.
ANALYSIS: The engine of European job growth is creaking to a halt and just as in the US the solution lies with getting the small business back in gear. There is demand for the output and there is the opportunity to expand in many markets but without the access to capital these companies are stalled and unable to respond. The banks will need a clear set of rules and sooner than later. The rhetoric of punishment has to be replaced with a set of instructions that recognizes that not all banks were guilty of the idiocy that permeated some parts of the financial world.
IT IS PAST THE POINT WHERE POLITICIANS NEED TO MAKE STATEMENTS ABOUT THEIR OUTRAGE AND HIGH TIME FOR THESE SAME LEADERS TO RECOGNIZE THAT THE SMALL COMPANIES THEY ARE COUNTING ON FOR THE RECOVERY ARE DESPERATE.
Courtesy of Dr. Chris Kuehl, Armada Corporate Intelligence
BIIA Comment:
The implications on commercial credit information are that businesses are in liquidity management mode and will require information services that assist them in managing receivables and conserve cash, rather than business information services for marketing and new business development.
|
|
|
|
Dun & Bradstreet Australia issued today its latest Business Expectations Survey
Capacity issues and fierce competition for skilled labour looks set to return as a feature of the Australian economy as firms report their strongest expectations in many years for inventory and employment growth. These findings from the latest Dun & Bradstreet Business Expectations Survey for the June quarter follow what have already been record low unemployment levels amongst the developed world during the Global Financial Crisis.
Key findings include:
- Employment expectations are back in positive territory to an index of five, rising five points since the March 2010 quarter
- Capital investment expectations have risen to the highest level in the last seven years – an index of 10
- Expectations for growth in inventories in the December, March and June quarters are at the highest levels in more than four years
- Selling price expectations have risen eight points from the March quarter index of nine – the lowest level ever recorded in the survey
- Profits expectations have risen again – up five points to 15 but sales expectations have made a small drop of three points to an index of 25
To read the full story click on the attachment
For further information contact:
Nathan Williams | Corporate Affairs Manager
Dun & Bradstreet Australia | Level 2, 143 Coronation Drive, Milton, QLD 4064
t +61 7 3360 0635 | f +61 7 3360 0639 | m + 61 414 569 380 | e williamsnt@dnb.com.au | w http://www.dnb.com.au
2/8/2010
|
|
|
Some people in the investment community appear to have decided that Greece, Spain, Italy and Portugal are headed for a sovereign debt default and are now assuming that this will cripple much of Europe.
Dr. Chris Kuehl, Armada Corporate Intelligence opines that halting the investor retreat will take more than some soothing noises from the EU Central Bank’s Trichet.
As with the markets in the US, a significant part of the sell off is investor reaction to the assertion that markets in general have become overvalued and this response has been building for weeks.
It started with the weaker than expected earnings reports but the decisions on the part of China to cool off its economy has had an impact as well. The fact that China has followed through on this decision to some extent has meant that commodities prices have fallen a little and it has altered expectations about the level of demand coming from Asia. The fact is that nobody is all that convinced they know what is coming in the short term although there is still pretty solid confidence about the rest of the year. Demand is expected to return and growth along with it but just when that may manifest is anybody’s supposition.
Source: Courtesy Armada Corporate Intelligence
© 2007 Armada Corporate Intelligence - P.O. Box 733 Lawrence, Kansas 66044
|
|
|
|
Beijing, January 28, 2010----The China Economic Monitoring Center of the China National Bureau of Statistics and Sinotrust jointly release the "2009 Q4 China Automotive Industry Climate Index."
Accordingly the Comprehensive China Automotive Industry Climate Index registers 102.0 points. The Pre-warning Index of China Automotive Industry records 116.7 points. The Entrepreneur Expectation Index of China Automotive Industry registers 127.0 points and the Dealer Manager Index of China Automotive Industry registers 114.4 points
About China Automotive Industry Climate Index
The China Automotive Industry Climate Index is developed jointly by the China Economic Climate Monitor Center of the National Bureau of Statistics of China and Sinotrust at the beginning of 2009. The index gives a quantitative description of the development trends of the auto market in China.
To read the full SINOTRUST release click on the attachment
For further information contact:
Yumei HUI
Research Manager
Sinotrust-Automotive Industry Research
Tel: 8610-5926 7560 / 5926 7608
Email: huiyumei@sinotrust.cn
|
|
|
Coface, the leading international credit insurance and credit management services group, announces 20 upgrades in country ratings, including for Hong Kong and Taiwan.
Having been placed on negative watch list in April 2009, Hong Kong is now removed from the watch list.
"The credit crisis, which has lasted two years since being announced in January 2008, has been of an unprecedented magnitude for the past 60 years," said Richard Burton, Regional Managing Director, Greater China, of Coface. Since the second half of 2009, Coface has recorded a net reduction in payment defaults. Though payment defaults were still up 19 percent in the first half of 2009, they declined 40 percent in the second half.
"Growth will be positive but weak in industrialized countries because of the constraints on private demand,” said Burton. “Consumers and corporates were impacted by the crisis, and in a way 2010 is a year of convalescence. For emerging markets the rebound will be stronger. Asian economies will benefit from the rebound of international trade; this is especially true for an open economy like Hong Kong. This is why we have withdrawn the negative watch on Hong Kong’s A2 rating. However, attention will be focused on bubbles which may form or are already be forming, e.g. for asset prices, commodities, government debt, and - in China, overheating in some sectors.”
End of the first “globalisation crisis”
This credit crisis has lasted two years, like previous crisis and as Coface predicted at the beginning of 2008 when it recorded the initial increase in companies’ payment defaults. But it has been the most violent credit crisis in the past 60 years: the world growth differential between the beginning and end of the crisis was 6.1 points. Compared to previous crises, the magnitude of the shock is explained by the increasing globalisation of economies: a confidence shock spread everywhere following Lehman Brothers’ bankruptcy, with the seism reaching both finance and industry, Europe or Asia. Even yet in countries not characterised by debt bubbles the record contraction in world trade had a brutal impact on companies.
Nevertheless, the decrease in payment defaults clearly indicates that the credit crisis is over. This correlates with the end of the recession in most major industrialised countries at the end of the third quarter 2009. Thus, after having implemented several waves of rating downgrades throughout the crisis, Coface is easing the rating outlooks for almost all industrialised countries.
The dynamism of emerging countries rebalances world growth. The decoupling of emerging countries / developed countries has finally occurred, but in a specific and new way. As stakeholders in the world economy, emerging countries couldn’t escape being affected: where companies were too heavily indebted, the growth contraction brought on credit crises (i.e.: significant increases in payment defaults). But in most cases, the emerging countries managed this crisis independently. Thus they demonstrated their ability to learn the lessons from previous crises and to rely on solid fundamentals, which allowed them implement recovery policies.
Yes to recovery, but look out for bubbles
If the end of the credit crisis is confirmed, the 2010 recovery in industrialised countries is of high risk because of threatening bubbles
Source: Coface Press Release
|
|
|
|
Australian firms face the prospect of renewed cash flow pressures in the months ahead, according to the latest business-to-business trade payments figures released today by credit reporting agency Dun & Bradstreet.
The findings reveal that a deterioration in payment terms (2.1 days) in the December 2009 quarter has taken terms to 53.9 days and largely reversed the gains made in the September quarter 2009. A further deterioration of the size recorded in the December 2009 quarter could put payment days back near the levels experienced during the height of the global crisis. In addition, D&B’s analysis shows that over the past three years, payment terms have increased in quarter-on-quarter terms in the March quarter, indicating that further increases could be on the horizon.
A full media release is attached for your reference. For further information please contact me on +61 2 8270 2926 / woodsd@dnb.com.au
Danielle Woods | Corporate Affairs Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
The risk of sluggish and weak growth this year is becoming increasingly apparent despite the healthy pace of expansion that is occurring in the global economy entering 2010.
Dun & Bradstreet's 2010 Economic & Risk Outlook Report, released today, reveals that major emerging markets such as China and India continue to experience rapid economic expansion and both the US and Europe have pulled out of recession. However, the winding down of stimulus programs around the globe, high unemployment and a continuation of subdued bank lending are likely to result in a slowdown during the course of 2010. Consequently, more than 60 countries around the world are expected to record lower output in real terms in 2010 than they did prior to the crisis. Those countries most closely integrated with the US economy in particular, are expected to continue to suffer from the effects of muted US demand.
Despite predicting a global slowdown, the D&B report forecasts positive economic growth at a global level and a promising outlook for Australia. World economic growth is expected to hit 2.0 percent this year and 2.3 percent in 2011. This comes on the back of estimates which indicate that the global economy contracted by 2.2 percent in 2009. Meanwhile, Australia is expected to track Chinese demand which is forecast to continue at a relatively rapid pace this year. In addition, Australia’s key trading partners are expected to record positive economic growth this year however, Japan is expected to face a contraction in 2011.
A full media release is attached
For further information contact: Danielle Woods | Corporate Affairs Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
JAPAN: D&B downgrades Japan’s country risk rating as a series of factors threaten the outlook.
INDIA: Economic growth is set to ease as monetary policy tightens and agricultural output falls
UNITED ARAB EMIRATES: D&B downgrades the UAE’s country risk rating in the light of debt repayment difficulties afflicting Dubai
Source: D&B International Risk and Payment Review January 2010 Issue: http://www.dnbcountryrisk.com
|
|
|
|
D&B Australia published its latest Business Expectations Survey.
Outlook for the March quarter 2010 include:
- Expectations for growth in inventories are at the highest level in more than four years – up one point to an index of five
- Selling price expectations have fallen to the lowest level ever recorded in the survey - reaching an index of nine
- Sales and profits expectations have risen again - with a rise of two for sales and a rise of three for profits expectations
- Capital investment expectations are at the second highest level in ten quarters - at an index of seven
- Employment expectations fell from positive territory to an index of zero.
Credit market conditions, debt levels and lagging trade payments:
- Thirty one percent of firms reported a negative impact from credit market conditions
(down six percent), while 7 percent experienced a positive impact (down four percent)
- Nineteen percent of firms expect to reduce debt in the next three months, while seven
percent expect to increase debt and 70 percent plan to maintain current levels of debt
- Forty percent of executives are being negatively impacted by lagging business to
business payment terms, a nine percent fall since July
To read the full release click on the attachment
For further information contact:
Nathan Williams | Corporate Affairs Manager
Dun & Bradstreet Australia | Level 2, 143 Coronation Drive, Milton, QLD 4064
t +61 7 3360 0635 | f +61 7 3360 0639 | m + 61 414 569 380 | e williamsnt@dnb.com.au | w http://www.dnb.com.au
|
|
|
ATLANTA, GA, December 8, 2009 – Equifax Inc. (NYSE: EFX) announced the expansion of its suite of solutions available to help credit issuers and lenders assess consumers ability to pay.
As a result of its ongoing investment in adding capabilities that provide a more complete picture of a consumer’s financial capacity, Equifax is uniquely positioned with a full suite of income, spending, credit, and wealth solutions that help issuers assess consumers' ability to pay across the entire customer lifecycle. With its recent acquisition of IXI Corporation, Equifax has further deepened its insights into consumer wealth, spending capacity and behavior and the ability to meet financial obligations.
With a wide range of financial capacity products, Equifax aids lenders in designing a custom program that leverages a combination of Equifax's solutions and the issuer’s own data to evaluate their current and prospective customers’ ability to pay. As credit issuers evaluate their options to comply with the amendments to Regulation Z, they may want to consider which tools offer the highest level of knowledge of consumer’s behavior to meet the specific needs of their firm.
To read the full story click on the attachment
|
|
|
16 December 2009: vedaauto.com's monthly Automotive Credit Demand Index*, released today, reveals an overall 2.2% increase in credit demand for the automotive market in November compared to October 2009.
However, credit enquiries for used vehicle purchases in November dropped 8.4% over the previous month, and also saw a year-on-year decline of 23.3% over November 2008. The vedaauto.com Credit Demand Index provides details on monthly automotive credit applications made by consumers and businesses, offering insights into auto demand in Australia.
Overall growth in credit demand during November was driven by an increase in commercial loan applications for new cars, which were up 13.4% over the previous month and up 33.4% over November 2008.
Head of Veda Auto, David Scognamiglio said credit demand for used cars has been impacted by consumers and businesses taking advantage of the Government's stimulus package for new cars. "The next few months will provide a significant bellwether for the automotive industry. The intense activity around new vehicle purchases is likely to soften once the Government's stimulus package ends on December 31, which could deliver the automotive industry a soft start to 2010. On the other hand, the interest in used vehicles may rebound in January 2010, which is consistently the peak month for used vehicle credit demand," said Mr Scognamiglio.
To read the full story click on the link:
http://www.vedaadvantage.com/news-and-media/article.dot?id=508723
VedaAdvantage is a member of BIIA
|
|
|
|
TransUnion Enhances Express Portfolio Review Solution with New Scores and Credit Attributes
CHICAGO, Nov. 12 /PRNewswire/ -- In its continuing effort to meet the changing needs of mid-tier financial institutions, TransUnion released its newly enhanced Express Portfolio Review solution. Already an industry leader in self-service portfolio reviews, TransUnion now offers users of Express Portfolio Review a choice of 17 scores and more than 200 credit attributes.
In addition, TransUnion has increased capacity for this application to 300,000 records per job while continuing to return results within 48 hours. Together, these enhancements provide businesses with more information to improve risk management.
To read the full story click on the attachment
|
|
|
TransUnion.com: National Auto Loan Delinquency Rates Rose In Third Quarter 2009
CHICAGO, Dec. 1 /PRNewswire/ -- TransUnion.com released today the results of its analysis of trends in the auto lending industry for the third quarter of 2009. The report is part of an ongoing series of quarterly consumer lending sector analyses focusing on credit card, auto loan and mortgage data available on TransUnion's Web site http://www.transunion.com/trenddata. Information for this analysis is culled quarterly from approximately 27 million anonymous, randomly sampled, individual credit files, representing approximately 10 percent of credit-active U.S. consumers and providing a real-life perspective on how they are managing their credit health.
To read the full story click on the attachment
|
|
|
TRANSUNION.COM: AVERAGE CREDIT CARD DELINQUENCY RATES CONTINUE TO FALL IN THIRD QUARTER FROM PREVIOUS DECLINE IN SECOND - BUCKING HISTORICAL TREND
CHICAGO, Nov. 23 /PRNewswire/ -- TransUnion.com released today the results of its analysis of trends in the credit card lending industry for the third quarter of 2009. The report is part of an ongoing series of quarterly consumer lending sector analyses focusing on credit card, auto loan and mortgage data available on TransUnion's Web site at http://www.transunion.com/trenddata. Information for this analysis is culled quarterly from approximately 27 million anonymous, randomly sampled, individual credit files, representing approximately 10 percent of credit-active U.S. consumers and providing a real-life perspective on how they are managing their credit health. Source: TransUnion
To read the full story click on the attachment
|
|
|
TransUnion.com: Mortgage Loan Delinquency Rates on Course to Hit Record in 2009 - Deceleration in Rate Climb Continues for Third Consecutive Quarter
CHICAGO, Nov. 17 /PRNewswire/ -- TransUnion.com released the results of its analysis of trends in the mortgage industry for the third quarter of 2009 and the associated impact on the U.S. consumer. The report is part of an ongoing series of quarterly consumer lending sector analyses focusing on credit card, auto loan and mortgage data available on TransUnion's Web site at http://www.transunion.com/trenddata. Information for this analysis is culled quarterly from approximately 27 million anonymous, randomly sampled, individual credit files, representing approximately 10 percent of credit-active U.S. consumers and providing a real-life perspective on how they are managing their credit health.
To read the full story click on the attachment
|
|
|
Key Highlights:
Composite Business Optimism Index increases
by 3% (y-o-y) – after declining for 7 consecutive quarters (y-o-y)
Optimism Index for Volume of Sales registers an increase of 14 percentage points (q-o-q)
All six Optimism Indices register increases
To read the full story click on the link: http://www.dnb.co.in/Business_Optimism_Index/Dun_&_Bradstreet_Business_Optimism_Index_Q4_2009.pdf
D&B INDIA is a member of BIIA
|
|
|
|
Bankruptcy petitions filed in fiscal year 2009 jumped by 34.5% over 2008's numbers.
The most recent report released by the Administrative Office of U.S. Courts showed that a total of 1,402,816 cases were filed in the 12-month period ending September 30, 2009, compared to 1,042,993 cases in the same period ending in 2008.
Business filings experienced an even larger percentage increase, jumping 52% in FY09 to 58,721 from 38,561 in 2008. Non-business filings increased by 34% from 1,004,342 in 2008 to 1,344,095 in 2009. Chapter-wise, the largest increase was seen in Chapter 11, becoming increasingly popular with filings rising by 68% between FY08 and FY09. Chapter 7 filings, the most common Chapter filed, increased by 45% from 679,982 in 2008 to 989,227 in 2009.
Much of the blame for the increase in bankruptcies can be attributed to an overall shortness of credit nationwide. Over the last year, executives and congressional leaders have continually searched for ways to loosen up the country's credit markets, and while many indicators have shown signs of economic life, banks still remain reluctant to lend to consumers and businesses, especially those in the nation's struggling construction sector.
Courtesy of Jacob Barron, NACM staff writer
|
|
|
|
D&B Australia has just released its latest Australian National Business Expectation Survey
Outlook for the March quarter 2010
- Selling price expectations have fallen to the lowest level ever recorded in the survey - reaching an index of seven
- Capital investment expectations are at the second highest level in ten quarters - also at an index of seven
- Employment expectations fell into negative territory reaching an index of -1
- Expectations for growth in inventories are at the highest level in more than four years – unchanged on the December quarter index of four
- Sales and profits expectations have risen again – with a rise of four for sales and a rise of two for profits expectations
Credit market conditions, debt levels and lagging trade payments
- Thirty seven percent of firms reported a negative impact from credit market conditions (down one percent), while 11 percent experienced a positive impact (up one percent)
- Twenty percent of firms expect to reduce debt in the next three months, while nine
percent expect to increase debt and 68 percent plan to maintain current levels of debt
- Forty one percent of executives are being negatively impacted by lagging business to business payment terms, a three percent fall since last month
To read the full story click on the attachment!
Should you wish to clarify any points, or interview D&B’s CEO Ms Christine Christian please contact:
Nathan Williams | Corporate Affairs Manager
Dun & Bradstreet Australia | Level 2, 143 Coronation Drive, Milton, QLD 4064
t +61 7 3360 0635 | f +61 7 3360 0639 | m + 61 414 569 380 | e williamsnt@dnb.com.au | w http://www.dnb.com.au
D&B Australia is a BIIA Member
|
|
|
Equifax Inc. (NYSE: EFX) today announced the launch of a new solution that gives companies increased control over the risk management of business customers as well as suppliers. Business Credit Monitoring(TM) provides companies with early warning alerts when business customers or vendors may be facing financial challenges. With this solution, businesses can improve their risk assessment processes and reduce losses by identifying customers and suppliers before they become delinquent on financial obligations and impact profitability.
Business Credit Monitoring is the latest addition to Equifax's comprehensive suite of portfolio management solutions. From account monitoring to benchmarking, Equifax solutions help businesses track industry and portfolio trends, identify areas of risk and market opportunity and modify strategies based on a deeper understanding of commercial accounts and their financial status.
One user of the portfolio management services is NewAlliance Bank, Connecticut's largest state-chartered bank. NewAlliance implemented Equifax's account management solutions to monitor accounts and detect signs of impending financial trouble within its customer portfolio and has seen significant improvement in its collections productivity.
"We have validated the alerts on our commercial portfolio and found that triggered loans are three times more likely to go delinquent than loans without trigger alerts," said Evan Kass, Director, Credit Portfolio Analytics, NewAlliance Bank. "It is an important and valuable service."
According to Equifax Commercial Information Solutions, commercial bankruptcies increased by 69 percentage points (27 percent) in September 2009 year over year. Equifax research has also shown that commercial bankruptcies continue to rise across all industry sectors, with transportation, construction and retail showing significant increases year to date.
"The need to proactively manage risk has shifted from 'important' to 'essential' for businesses navigating tough economic conditions in a soft economy, " said Michael Shannon, president, Equifax Commercial Information Solutions. "Our portfolio management solutions help businesses to detect early distress signals and act quickly to mitigate risk and drive stronger performance from commercial and supplier relationships."
A web-based solution, Business Credit Monitoring can be seamlessly integrated into a company's existing account management processes. This highly flexible solution allows companies to monitor their entire portfolio of business customers and suppliers or flag only those accounts that require close attention. By matching the list of selected accounts against the Equifax commercial credit database, the solution monitors and notifies customers of any key adverse account developments.
Businesses benefit from:
- Minimized manual account review and increased efficiency
- Timely alerts resulting from changes in Equifax's Small Business Credit Risk Score, Business Failure Risk Score and newly reported public record/bankruptcy information
- Potentially fewer write-offs based on improved risk assessment and decisioning
- Real-time insights into portfolio segments requiring customized strategies based on risk level
- Greater flexibility in setting monitoring preferences and managing accounts
Businesses that leverage Equifax portfolio management solutions gain access to the Equifax Commercial Credit Report, market-leading risk scores and Equifax's commercial credit database, the industry's largest source of small business information. Equifax currently provides credit grantors with information on more than 25 million small businesses.
Equifax Commercial Information Solutions provides the information and expertise necessary for companies to best understand and manage their dealings with business customers, prospects and suppliers. Our exclusive partnership with the Small Business Financial Exchange, along with other proprietary sources, provides the best-in-class commercial credit risk data. Combined with highly predictive scoring and innovative technology, businesses can leverage this information to make quick, confident credit decisions and minimize potential losses.
Equifax also offer business linkage and firmographics to help companies gain greater visibility into their supply chain as well as improve the precision of their sales and marketing efforts - from customer acquisition to retention and expansion.
To learn more about Business Credit Monitoring and other Equifax Commercial Information Solutions, visit http://www.equifax.com/commercial.
About Equifax (http://www.equifax.com)
Equifax empowers businesses and consumers with information they can trust. A global leader in information solutions, we leverage one of the largest sources of consumer and commercial data, along with advanced analytics and proprietary technology, to create customized insights that enrich both the performance of businesses and the lives of consumers.
With a strong heritage of innovation and leadership, Equifax continuously delivers innovative solutions with the highest integrity and reliability. Businesses - large and small - rely on us for consumer and business credit intelligence, portfolio management, fraud detection, decisioning technology, marketing tools, and much more. We empower individual consumers to manage their personal credit information, protect their identity, and maximize their financial well-being.
Headquartered in Atlanta, Georgia, Equifax Inc. operates in the U.S. and 14 other countries throughout North America, Latin America and Europe. Equifax is a member of Standard & Poor's (S&P) 500® Index. Our common stock is traded on the New York Stock Exchange under the symbol EFX.
Source: Equifax Inc. - A Member of BIIA
|
|
|
|
Dubai World, is asking creditors for a standstill on its US$ 60 bn debt, which is technically a default. The entire portfolio of Dubai World is affected: Dubai Port World, the investment vehicle Istithmar and the property developer Nakheel.
The restructuring of $60 bn of debt at the emirate's core holding company will be the toughest ever in the Gulf. The few precedents, in Kuwait and Saudi, will give lenders little comfort. Creditors have found the law unfriendly and claims on collateral difficult to enforce. All in all, Dubai World's creditors have weak hand.
Global stock markets endured heavy selling on Thursday, Nov 26, 2009 as investors were spooked by the spectre of a default by Dubai and after a febrile foreign exchange market saw the yen surge to a 14-year high against the dollar. The turmoil caused a flight to less risky assets. Gold, which had challenged $1,200 in Asian trading, fell back from its highs and money flowed into havens such as German government bonds. Dubai World's difficulties that had hit a particular nerve because it reminded investors of the lingering damage wrought by the financial crisis.
Source: Financial Times and Breakingviews
|
|
|
|
TransUnion Enhances Express Portfolio Review Solution with New Scores and Credit Attributes
CHICAGO, Nov. 12 /PRNewswire/ -- In its continuing effort to meet the changing needs of mid-tier financial institutions, TransUnion today released its newly enhanced Express Portfolio Review solution. Already an industry leader in self-service portfolio reviews, TransUnion now offers users of Express Portfolio Review a choice of 17 scores and more than 200 credit attributes. In addition, TransUnion has increased capacity for this application to 300,000 records per job while continuing to return results within 48 hours. Together, these enhancements provide businesses with more information to improve risk management.
"TransUnion's Express Portfolio Review now offers financial institutions of every size access to a full spectrum of credit scores and attributes needed to control risk in today's economy," said Steve Sassaman, executive vice president in TransUnion's financial services group. "Whether evaluating credit limits on open-ended credit lines or prioritizing collections, TransUnion's clients now have a secure tool that enables them to quickly obtain the most up-to-date credit data on their customers by using the Internet and a spreadsheet."
The newly enhanced Express Portfolio Review is easily accessed via the Web-based TransUnion Direct platform (https://direct.transunion.com). Through the platform, customers may choose from 17 scores, including three TransUnion Risk Scores, VantageScore(SM), six FICO® scores including Classic 08, Classic 04 and Classic 98, five TransUnion Collection Recovery Models and TransUnion Income Estimator and Debt-to-Income Estimator.
TransUnion Express Portfolio Review now also offers more than 200 credit attributes to supplement its expanded offering of risk scores. When used in combination with risk scores, TransUnion's credit attributes allow risk managers to further segment their portfolios. These attributes are pre-configured into packages designed to meet specific needs, including credit card, mortgage and collections. Express Portfolio Review users can also create their own custom attributes packages.
"The solution gives TransUnion's self-service customers the largest number of pre-configured attribute packages and the greatest ability to append scores and attributes in the industry," added Sassaman.
TransUnion Direct has also introduced a real-time file validation feature that will automatically check for input file formatting errors and allow for corrections before processing begins. The maximum input file has increased to 300,000 subjects, and processing is completed within 48 hours. The output is provided in a standard comma separated file, which can then be uploaded into a spreadsheet, database or other financial institution system.
"If a financial institution needs to quickly obtain current credit data for risk management, collections or portfolio valuation," said Sassaman, "then Express Portfolio Review is the only solution in the market with this combination of available data, ease of use and processing speed."
More information about Express Portfolio Review may be found at http://www.transunion.com/business or by contacting Mike Jones of TransUnion's financial services group at mjones@transunion.com.
About TransUnion:
As a global leader in credit and information management, TransUnion creates advantages for millions of people around the world by gathering, analyzing and delivering information. For businesses, TransUnion helps improve efficiency, manage risk, reduce costs and increase revenue by delivering comprehensive data and advanced analytics and decisioning. For consumers, TransUnion provides the tools, resources and education to help manage their credit health and achieve their financial goals. Through these and other efforts, TransUnion is working to build stronger economies worldwide. Founded in 1968 and headquartered in Chicago, TransUnion has employees in more than 25 countries on five continents.
http://www.transunion.com/business
SOURCE: TransUnion Web site: http://www.transunion.com/
TRANSUNION IS A MEMBER OF BIIA
|
|
|
|
Nottingham, UK, 6 October 2009 - Experian announced the launch of its Portfolio Management Package, a new hosted collections service. Experian’s latest innovation means that for the first time, creditors of all sizes in the UK can benefit from Experian’s sophisticated pre-delinquency and collections strategy tools, priced according to the size of their portfolio.
Delivered as an integrated, hosted service, Portfolio Management Package requires minimal set-up costs and time and no infrastructure investment. It uses Experian’s market leading data, software and analytics to accurately assess risk and the likelihood of collections success across customer accounts. Portfolio Management Package then finely segments the portfolios to determine the most appropriate actions for the creditor to take.
Portfolio Management Package determines actions based on a range of best practice treatment strategies developed by Experian’s collections consultancy team. These strategies guide the timing and manner of interactions with customers in arrears, to ensure that they are appropriate to their circumstances. The service also provides detailed reporting on collections performance and provides users with the ability to test new strategies alongside existing approaches to drive further improvements.
Simon Waller, Head of Collections, Experian UK & Ireland comments: “With the launch of Portfolio Management Package, we are continuing to drive even greater innovation in collections by creating a service that can be implemented with zero capital investment, and offer immediate improvements in recovery rates and collections efficiencies.
"Today's economic climate means that creditors, from banks through to telecoms providers, utilities, debt buyers and public sector organisations, are all facing significant collections challenges that need to be addressed. Portfolio Management Package's pay-per-use pricing and rapid implementation offers a compelling proposition for companies of all sizes.'
About Experian
Experian is the leading global information services company, providing data and analytical tools to clients in more than 65 countries. The company helps businesses to manage credit risk, prevent fraud, target marketing offers and automate decision making. Experian also helps individuals to check their credit report and credit score, and protect against identity theft.
Experian plc is listed on the London Stock Exchange (EXPN) and is a constituent of the FTSE 100 index. Total revenue for the year ended 31 March 2009 was $3.9 billion. Experian employs approximately 15,000 people in 40 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; Costa Mesa, California; and São Paulo, Brazil.
For more information, visit http://www.experianplc.com.
Contact:
James Taylor
Experian
Tel: + 44 (0)115 99 22650
Email: james.taylor2@uk.experian.com
|
|
|
|
Attached is the latest Business Expectations Survey from Dun & Bradstreet Australia. Key findings include:
- Capital investment expectations are at the highest level in ten quarters – at an index of eight
- Selling price expectations have fallen to the lowest level ever recorded in the survey – also reaching an index of eight
- Employment expectations fell into negative territory reaching an index of -1
- Expectations for growth in inventories have reached the highest level in six years – reaching an index of 11
- Sales and profits expectations have risen again – with an index of 11 in sales and an index of nine for profits expectations
Australian firms are expecting a positive start to the New Year with improved expectations for sales, profits, capital investment and inventory levels as broader signs of a strengthening economic recovery take hold. However, employment expectations have deteriorated slightly as firms deal with rising wages costs and interest rate rises.
Credit market conditions, debt levels and lagging trade payments are still of concern:
- Thirty eight percent of firms reported a negative impact from credit market conditions
(down one percent), while 10 percent experienced a positive impact (down 8 percent)
- Thirty percent of firms expect to reduce debt in the next three months, while nine percent
expect to increase debt and 58 percent plan to maintain current levels of debt
- Forty four percent of executives are being negatively impacted by lagging business to business payment terms, a one percent rise since last month
To read the full story click on the attachment
Should you wish to clarify any points, or interview an executive from Dun & Bradstreet please contact:
Nathan Williams | Corporate Affairs Manager
Dun & Bradstreet Australia | Level 2, 143 Coronation Drive, Milton, QLD 4064
t +61 7 3360 0635 | f +61 7 3360 0639 | m + 61 414 569 380 | e williamsnt@dnb.com.au | w http://www.dnb.com.au
|
|
|
LATE BREAKING NEWS ON CHINA'S INTENT TO REGULATE CREDIT INFORMATION
EXPERTS ANTICIPATE A NEGATIVE IMPACT ON TRADE CREDIT DEVELOPMENT; LACK OF AVAILABILITY OF CREDIT INFORMATION WITH A COMMENSURATE INCREASE IN CREDIT RISK
The Chinese Legislative Affairs Office of the State Council has issued a consultation paper outlining the basis of proposed legislation on credit information agencies. If the proposed legislation on credit information becomes law, the task of granting trade credit in China will become more difficult and risky due to the potential limited availability of reliable credit information. Notwithstanding the world wide practice of leaving the business of commercial credit information to self-regulation (legal framework for commercial credit information), Chinese regulators believe that regulating commercial credit information would facilitate the development of the credit information industry. Credit and information experts are of the opinion that potentially the opposite effect would be the case.
What are the implications for credit managers who manage trade credit risk in China?
- Fewer sources of credit information: There seems to be a consensus among regulators that there are too many unqualified credit information companies operating in China. A minimum threshold of RMB 50 million capital requirement is proposed. Many of the current credit information businesses will not be able to raise such an amount in capital and will be forced out of business
- Consent is required from a business to collect relevant information about them: This will impair the ability to collect information in a timely manner and the completeness of information required to make an informed credit decision. As a result some companies may choose not to do business in China
- Consent is required from the subject company of an inquiry to be able to distribute the information. This will impair the availability of timely credit information
- Disclosure of the source of and recipient of information: Business relationships between buyers and sellers of information as well as relationships with sources of information become transparent. In mature credit markets such relationships are confidential. The pooling of trade information has become a common practice for decades. Credit managers rely on trade information to make informed decisions concerning the credit risk they are going to assume. As a result of the disclosure of the source of information trade information will no longer be available as a valuable resource for credit managers.
- Liability: Regulators seem to think that quality norms can be regulated by imposing criminal sanctions of violations. Criminal sanctions would cause many information companies to withdraw from the market. Unreasonable regulations and compliance thereof will increase the cost of information.
Unintended consequences:
In the desire to bring some order into the Chinese credit information infrastructure, regulators are trying to impose regulations that can potentially be detrimental to the economy. Credit and information experts are of the opinion that the above requirements will limit information availability and hinder the development of trade credit, increasing the risk of trading between companies, with potentially negative consequences for the Chinese economy.
Trade credit is said to be the largest source for short term capital of an enterprise. While direct investment provides the start up capital, it is trade credit that provides a significant part of working capital. Trade credit is also described as the largest uninsured short term asset of a firm. Granting trade credit is not without risks and risk is not a constant. Risk has a tendency to shift over time, therefore to measure and monitor risk a credit manager requires accurate, reliable and timely information about buyers of goods and services. Commercial credit information performs a critical function in the process of granting and monitoring Trade Credit.
In essence Trade Credit and Credit Information are intertwined, which means that if there is no information there will be no trade credit granted.
BIIA invites comments from the user community: biiainfo@biia.com
|
|
|
|
The combined CMI for September rose to 49.8, bouncing back from a nearly stagnant August on the strength of some dramatic improvements in dollar collections and in reductions in accounts placed for collection and dollar amount beyond terms. September saw the biggest improvement in these sectors in almost a year and that bodes very well for this quarter. Throughout the last year, the most distressing numbers seemed to be in these categories, which is expected in the middle of a recession. Even companies surviving the downturn were likely falling behind in bills or choosing to delay payments in an attempt to preserve cash flow. Now there is some sense that customers are starting to catch up and get current with their creditors.
The rate of dollar collections has not been this positive since September 2008, just as the economy started to seriously bottom out. The number of accounts placed for collection has declined and is lower than any point since last summer. Dollar exposure is also the lowest since summer 2008. These index readings suggest that there is a marked improvement in credit performance. "In order for the CMI to move into expansion territory—above 50—it will take the coalescing of three trends in credit: more credit availability, more sales that require the acquisition of credit and more prompt and regular payments on credit granted," said Dr. Chris Kuehl, NACM's economic analyst. "There has been some movement in sales and some positive movement in terms of credit availability, but up to this point there hadn't really been positive news regarding payment on that debt. Now all three factors seem to be moving in a generally positive direction."
This development is consistent with some of the general economic observations made over the last few weeks. The Federal Reserve's Open Market Committee (FOMC) made it clear that they thought the recession had reached an end and that the focus could now shift to recovery. Although recent Conference Board data showed a reduction in consumer optimism, a recovery of some consumer confidence as reported by the University of Michigan may have influenced the FOMC opinion. There has also been good news in the housing sector in addition to data showing that some manufacturing industries have started to grow. Still, there remains plenty to worry about: from high unemployment to the state of commercial realty to future threats of inflation.
The CMI was expected to crest 50 in this month's survey, but the availability of credit was not quite what was hoped and the final number was just a fraction under the point that signals expansion. With the combined index now at 49.8, Kuehl is confident that the fabled 50 point will be reached and reported in October's survey.
This report, complete with tables and graphs, and the CMI archives may be viewed: http://web.nacm.org/cmi/cmi.asp
Source: National Association of Credit Management
|
|
|
|
15 October 2009 - Veda Advantage welcomes the decision to amend the Privacy Act as an important step in achieving the government's new responsible lending legislation.
These changes are essential to stop struggling families falling further into debt.
Our most recent data tells us around 16% of Australians are currently having difficulty repaying debts. Of these Australians who are already in financial difficulty, 21% are likely to apply for credit over the next six months.
These changes ensure lenders also know the full extent of a person's credit commitments - a critical part of responsible lending.
People who have suffered a period of financial difficulty, typically during a relationship breakdown or period of unemployment, will now be able to show they have returned to financial stability and are paying credit commitments on time. Currently defaults are included on your credit history and remain for five years - only the bad news counts.
Borrowers and lenders must be protected by complete information if we want responsible lending.
Knowing what is on your credit file is an important part of managing your finances. You can get a copy of your business or company credit file at http://www.mycreditfile.com.au
Media Information:
Sally Robertson (02) 9270 0289 or mobile: 0400 927 003.
VEDAADVANTAGE IS A MEMBER OF BIIA
|
|
|
|
The announcement by the Commonwealth Government that they have accepted the Australian Law Reform Commission (ALRC) recommendations to introduce comprehensive credit reporting has the potential to dramatically change consumer lending in Australia, according to leading credit reporting agency Dun & Bradstreet.
The Government has accepted ALRC recommendations to allow additional data elements to be included in consumer credit reports, which will provide lenders with a clear picture of a borrowers' true financial position. In particular, the Government proposals will allow credit reports to record: whether a credit application has been approved and accepted and if so, what type of credit is involved (i.e. credit card, persona loan, mortgage); the date the account was opened; the current limit of the account; and the date the account was closed.
In addition the Government has accepted proposals to allow repayment performance history, subject to compliance with responsible lending provisions. Historically, credit reports in Australia have only been allowed to record basic identification details, credit applications (but not whether they had been approved) and negative events such as defaults and bankruptcies.
Dun & Bradstreet CEO, Christine Christian, says the Government's decision will have significant implications for the quality of consumer credit in Australia, including increased competition and improved prices for consumers, and a greater capacity for lenders to adequately assess whether consumers can afford the credit they seeking.
"This decision brings Australia into line with most of the developed world and is a significant financial services reform for Australia," said Ms Christian.
"Around the world comprehensive credit reporting has been shown to increase competition, reduce prices and improve access to mainstream credit for sections of the community that have been forced to seek funds from marginal providers because of a lack of official information about their credit history."
"Australia now has the same opportunity to realise these benefits and the proposals demonstrate a real commitment to a sophisticated consumer credit market that improves the quality of products and strengthens responsible lending objectives."
Research conducted by the world's leading expert on consumer credit reporting, Dr Michael Turner of the Political & Economic Research Council in the United States, for Dun & Bradstreet Australia identified both the benefits and pitfalls that can arise from this reform. The benefits include: improved access and pricing; enhanced protection against identity fraud; and an uplift in lending to small businesses that are particularly reliant on the credit history of the owner for business credit.
One pitfall experienced in other countries has been an initial contraction in lending as access to new information has revealed the true extent of consumer indebtedness. However, Dr Turner is currently working with Dun & Bradstreet Australia to help lenders understand how this additional information will impact lending systems and prepare for what the new information will tell them.
Ms Christian believes the next critical step in the reform process is ensuring the legislative and regulatory framework adequately identifies and responds to the opportunities and challenges of this reform.
"This is a significant reform that has been several years in the making. Each country manages the process differently however Australia can learn a lot from global experiences to maximise the benefits of this reform. Dun & Bradstreet looks forward to assisting the Government in anyway possible to ensure world class legislation and regulation," said Ms Christian.
The Government announcement follows a recent report by the APEC Business Advisory Council Working Group on APEC Financial System Capacity Building that has also recommended all APEC member countries adopt a comprehensive credit reporting system. This decision followed a series of presentations by Dun & Bradstreet and the Asia Pacific Credit Coalition, headed by Dr Turner, on the benefits of reform and how the issue has progressed in Australia.
To read the full D&B press release click on the attachment.
For further information please contact:
Danielle Woods
D&B Corporate Affairs Manager
02 8270 2926
D&B AUSTRALIA IS A MEMBER OF BIIA
|
|
|
ID Analytics' scores offer alternative data sources and advanced analytics to fine tune decision making
CHICAGO and SAN DIEGO, Oct. 5 /CHICAGO and SAN DIEGO, Oct. 5 /PRNewswire/ -- TransUnion and ID Analytics, the leader in on-demand identity intelligence, announced TransUnion will include ID Analytics' collections, credit, and identity risk solutions in TransUnion's portfolio of service offerings. ID Analytics' scores provide TransUnion customers with unique, real-time insight into consumers' fraud risk and creditworthiness across the entire lifecycle including origination, portfolio management and collections.
The two companies are jointly delivering a suite of solutions that reduce credit losses, improve collection efforts, and reduce costs associated with fraudulent transactions.
To read the full release click on the attachment
|
|
|
Close to 38,000 Australian firms are a high risk of distress this financial year, despite signs the Australian economy is on the mend.
The latest data from Dun & Bradstreet (D&B) shows that the number of firms at risk has continued to rise over the past fifteen months, from around 34,000 in Q2 2008 to almost 38,000 in the June quarter of 2009. This increase leaves one in ten (10.2 percent) firms at risk of financial distress in the 12 months to the end of June 2010.
Coming on the back of more positive news from D&B’s latest Economic & Risk Outlook Report and Business Expectations Survey, this research highlights that despite improving economic and business conditions, the risk of Australian firms continues to shift. The Economic Report showed that Australia is set to ride out the crisis relatively well compared to other developed nations, while the Business Expectations Survey revealed that 44 percent of firms are expecting an increase in sales and one third are expecting an increase in profits in the December quarter.
To read the full story click on the attachment
|
|
|
CHICAGO, Sept. 15 /PRNewswire/ -- The TransUnion Credit Risk Index, a statistic developed to measure the changes in average consumer credit risk within various geographies, increased 0.83 percent from 127.26 in the first quarter of 2009 to 128.32 in the second quarter of 2009.
While 13 states experienced quarterly declines in the Credit Risk Index, this measure at a national level reached an all-time high for the third consecutive quarter. The Credit Risk Index (CRI) is defined as the weighted average probability of 90-day delinquency or worse among consumers in a given region relative to the nation as a whole.
To read the full story click on the attachment
|
|
|
TransUnion.com: National Auto Loan Delinquency Rates Continued To Fall In Second Quarter 2009
CHICAGO, Sept. 1 /PRNewswire/ -- TransUnion.com released today the results of its analysis of trends in the auto lending industry for the second quarter of 2009. The report is part of an ongoing series of quarterly consumer lending sector analyses focusing on credit card, auto loan and mortgage data available on TransUnion's Web site at http://www.transunion.com/trenddata. Information for this analysis is culled quarterly from approximately 27 million anonymous, randomly sampled, individual credit files, representing approximately 10 percent of credit-active U.S. consumers and providing a real-life perspective on how they are managing their credit health.
To read the full release click on the attachment
|
|
|
CHICAGO, Aug. 17 /PRNewswire/ -- TransUnion.com released today the results of its analysis of trends in the mortgage industry for the second quarter of 2009 and the associated impact on the U.S. consumer. The report is part of an ongoing series of quarterly consumer lending sector analyses focusing on credit card, auto loan and mortgage data available on TransUnion's Web site at http://www.transunion.com/trenddata. Information for this analysis is culled quarterly from approximately 27 million anonymous, randomly sampled, individual credit files, representing approximately 10 percent of credit-active U.S. consumers and providing a real-life perspective on how they are managing their credit health.
To read the full story click on the news release
|
|
|
Attached are the latest findings of the Business Expectations Survey from Dun & Bradstreet Australia. Key findings include:
- Expectations for growth in inventories have reached the highest level in five years – 20 percent of firms plan to increase stock while 12 percent expect to decrease inventories
- Selling price expectations have fallen to the lowest level in more than four years – 30 percent of firms expect to increase prices and 9 percent intend to cut prices
- Capital investment expectations are at the highest level in two years – 16 percent of firms expect an increase in this area and seven percent expect a decrease
- Sixteen percent of businesses are expecting to increase and 9 percent decrease staff
Sales and profits expectations have risen significantly– 46 percent of respondents expect an increase in sales and 31 percent expect an increase in profits.
Should you wish to clarify any points, or interview Dun & Bradstreet’s CEO Ms Christine Christian, please contact:
Nathan Williams | Corporate Affairs Manager
Dun & Bradstreet Australia | Level 2, 143 Coronation Drive, Milton, QLD 4064
t +61 7 3360 0635 | f +61 7 3360 0639 | m + 61 414 569 380 | e williamsnt@dnb.com.au | w http://www.dnb.com.au
To read the full story click on the attachment
|
|
|
Situation: There had been expectations that India would be joining China in a rapid economic recovery from the recession that has gripped the world in general over the past couple of years. The sense had been that India was poised to take advantage of the growth in the region as well as the nascent growth in the US and Europe.
Manufacturing seemed to be booming and the service sector was holding its own. The elections turned out much better than many had expected as the Congress Party had gained control over its fractious coalition and no longer seemed to be stymied when it came to reforms. Then the all-important monsoon season fizzled and India was reminded of its dependence on the vagaries of weather.
The expectation is that growth will be reduced from 7.5% to less than 6% on the basis of a decline in farm sector and the fact that India will have social issues to contend with.
There are fears that India will fall far short of the food production it needs to sustain the population this year. The monsoon rains have been considerably less impressive as normal and areas of maximum production in the past are facing droughts. The government is already attacking those they accuse of hoarding food commodities as these entities are expecting to see prices double, triple and quadruple in the months ahead. The rural communities are starting to panic already as the rains have been 25% below normal. The price of food is already climbing with sugar at 30-year highs. The expectation is that food prices will be between 20% and 30% higher than last year. Given that the majority of the population still depends on the farm for their survival this is a disaster in the making. Food has also accounted for 17%
of the nation’s GDP and in the past there has been some income earned from exports. That will vanish this year. The drought has been worsened in areas where there has been political tension – such as in the Kashmir.
Analysis: India will be forced to do things they have not engaged in for some time. There will be no opportunities to export staples to other Asian states and that will compromise growth as well as political ties. Sri Lanka and China had learned to become dependent on Indian food and they will now have to find it somewhere else. India will be in the food buying category this year and may well ask for food aid. The budget of the nation was not expecting this hit and that will comprise some other initiatives.
The country has been trying to develop alternatives for the rural communities with more manufacturing and service opportunities but this has been a slow process at best. The government has been forced back into crisis mode and there will be little work one on the reforms until the food situation has been addressed.
Courtesy: Dr. Chris Kuehl, Armada Corporate Intelligence
D&B Country risk rating for India is a DB 3d (slight risk – trend: stable) Source: D&B Country Risk and Payment Review
|
|
|
|
Australia is considered one of the world’s safest countries in which to invest, due to
the relatively mild economic slowdown experienced as a result of the global credit
crisis. Dun & Bradstreet’s Global Risk Indicator places Australia in the top four countries, with a ranking in line with Canada, Norway and Switzerland.
<To read the full story click on the attachment
|
|
|
To better understand the financial condition of small business in the United States and develop an accurate snapshot of risk, Experian® examined the rate of new derogatory events (incidence of a new lien, judgment, collection, bankruptcy or severe payment delinquency) for small businesses that were healthy near the beginning of 2007.
Experian tracked more than 300,000 small businesses in the United States from April 2007 to April 2009 to examine the emergent trends.
The purpose of this Experian study was to examine the rate of new derogatory events for small businesses in the United States that were healthy at the start of 2007. Experian tracked more than 300,000 small businesses in the United States from April 2007 to April 2009 to determine
the rate of risk trends on multiple measures. Experian applied its definition of a small business — businesses that have fewer than 25 employees and generate less than $10 million in annual sales — to establish the study sample population. To determine the trend of newly derogatory events for small businesses, Experian started with a “clean” population that did not have, at April 2007, any liens, judgments, bankruptcies, collections or any trade line more than 91 days delinquent, or overall delinquency average beyond 30 days late.
This was a longitudinal study following these specific businesses over a two-year window, and, as such, the results of this study do not necessarily represent the overall risk trend of all businesses in the United States over the study period.
To read the full story click on the attachment
For more information or to speak with a subject matter expert, please contact:
Roslyn Whitehurst
Experian Public Relations
1 714 830 5578
roslyn.whitehurst@experian.com
|
|
|
28 July 2009: Veda Advantage's Business Credit Demand Index, released today, reveals business credit applications for the second April to June quarter of 2009, fell by 2.1%. Although credit applications were still down, this was a steady improvement from the January to March quarter, which fell by 8.3% compared to the same quarter in 2008.
In comparison to the previous January to March quarter 2009, business applications for credit were up more than 22% in the April to June quarter. The month of June recorded the first positive credit growth since December 2007.
Veda Advantage general manager, Russell Evans, said the quarter on quarter analysis was a sign business credit demand is increasing, albeit slowly, as business starts to re-gain confidence in the economy. "Our credit bureau data indicates some healthy signs suggesting Australian businesses are starting to regain confidence and are now considering taking on a little more debt.
"The month of June recorded the first positive year-on-year increase for 18 months with a 2.4% increase in credit demand. Historically there is a trend for increasing business credit demand in June each year.
We also saw credit applications were most notably driven by car financing. The recent Government car rebate has helped spike the demand for new auto financing, a 12% increase from this time last year.
"We will be watching to see if credit applications pick up throughout the start of the 2009/10 financial year, and hopefully the month of June will set the tone for the start of the next financial year," Mr Evans said.
Business credit applications for the July 1 2008 to June 30 2009 financial year ended down 6.6% compared to the previous 2007/2008 financial year.
http://www.vedaadvantage.com
|
|
|
|
Coface’s new growth forecasts published July 13, 2009 take into account a growth contraction of 6.6 points between 2007 and 2009.
Coface projects the 2009 recession at -2.5% and sees growth recovering in 2010, settling at 1.7%. After having downgraded 22 countries in January and then 47 in April, Coface is now downgrading 13 country ratings, primarily for small or medium-size economies highly dependent on international trade. Perceptible signs of the end of the recession, and the scenario of a weak and slow “L-shaped” recovery remains the most likely.
To read the full story click on the attachment
|
|
|
Please see attached the latest findings from the Business Expectations Survey from Dun & Bradstreet for the December quarter.
Key points for the survey include:
- Sales and profits expectations have recorded the greatest one-quarter rises since the survey began – 44 percent of respondents expect an increase in sales and 31 percent expect an increase in profits
- The employment indicator has also risen sharply with 15 percent of businesses expecting to increase staff in the December quarter and 8 percent anticipating a decrease
- Capital investment expectations are at the highest level in six years – 17 percent of firms expect an increase in this area and five percent expect a decrease
- Expectations for growth in inventories has reached the highest level in five years – 18 percent of firms plan to increase stock while 10 percent expect to decrease inventories
- Selling price expectations have fallen to the lowest level in more than four years – 35 percent of firms expect to increase prices and 8 percent intend to cut prices.
To read the full story click on the attachment. For further information contact:
Nathan Williams | Corporate Affairs Manager
Dun & Bradstreet Australia | Level 2, 143 Coronation Drive, Milton, QLD 4064
t +61 7 3360 0635 | f +61 7 3360 0639 | m + 61 414 569 380 | e williamsnt@dnb.com.au | w http://www.dnb.com.au
|
|
|
D&B has rated more than 25,000 Australian firms a higher risk of paying their trade accounts in a severely delinquent manner since April 1, 2009, signalling that despite the improvement in payment terms in the June quarter, there could be more cash flow pain to come for many businesses.
Australian firms have improved payment terms for the first time in many months, with a drop of 2.6 days since the previous quarter reducing terms to an average of 54.8 days. However despite the improvement, business-to-business payments remain significantly above the standard 30 day term and there are warnings that a further blow-out in terms could be on the horizon.
D&B's latest quarterly trade payment analysis reveals that payment terms have improved across the board however big business, public firms, companies in the electric, gas and sanitary services sector and those based in New South Wales are the worst payers.
A full media release is attached.
For additional information contact:
Danielle Woods | Corporate Affairs Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
SEATTLE, June 15 /PRNewswire/ -- As the slumping economy continues to pressure healthcare organizations, more emphasis has been placed on streamlining costs and creating additional efficiencies while continuing to verify patient identity and insurance eligibility and to qualify those in need for charity care or self-pay discounts. To meet the demands of the changing healthcare landscape, TransUnion announced new enhancements to its patented Revenue Manager(SM) solution at the HFMA's Annual National Institute (ANI) Healthcare Financing Conference.
To read the full story click on the the attachment
|
|
|
Four in ten (thirty nine percent) working Australians could only survive 30 days on their current savings if they lost their job and thirty eight percent will be forced to use their credit card to cover expenses in the months ahead, indicating that local economic conditions continue to impact household budgets.
These findings are from Dun & Bradstreet's Consumer Credit Expectations Survey*,which focused on Australians' expectations for savings, credit usage, spending and debt performance over the September 2009 quarter. The survey found that Australians are feeling challenged by current economic conditions, with middle income households ($30,000-69,999) and the two younger age groups (18-34 and 35-49 year olds) in particular, demonstrating signs of financial stress.
For more information on the survey, or to organise an interview with Dun & Bradstreet CEO, Ms Christine Christian please contact:
Nathan Williams | Corporate Affairs Manager
Dun & Bradstreet Australia | Level 2, 143 Coronation Drive, Milton, QLD 4064
t +61 7 3360 0635 | f +61 7 3360 0639 | m + 61 414 569 380 | e williamsnt@dnb.com.au | w http://www.dnb.com.au
To read the full story click on the attachment
|
|
|
Please note the latest findings from the Business Expectations Survey from Dun & Bradstreet for the September quarter.
Key points for the survey include:
The employment indicator has risen slightly but remains deep in negative territory, 31 percent of businesses expect to decrease staff in the September quarter
Forty three percent of firms expect a decrease in sales and forty eight expect a decrease in profits
Three in five businesses (60 percent) expect to raise prices in the September quarter
Capital investment expectations have improved slightly, but 16 percent of firms expect to decrease spending in this area
Twenty two percent of firms plan to decrease inventories in the September quarter
To read the full story click on the attachment
For further information contact:
Nathan Williams | Corporate Affairs Manager
Dun & Bradstreet Australia | Level 2, 143 Coronation Drive, Milton, QLD 4064
t +61 7 3360 0635 | f +61 7 3360 0639 | m + 61 414 569 380 | e williamsnt@dnb.com.au | w http://www.dnb.com.au
|
|
|
CHICAGO, July 9 /PRNewswire/ -- The TransUnion Credit Risk Index, a statistic developed to measure the changes in average consumer credit risk within various geographies, increased 1.98 percent from 124.79 in the fourth quarter of 2008 to 127.26 in the first quarter of 2009.
On a year-over-year basis, the Credit Risk Index increased 7.10 percent (from 118.83 in the first quarter of 2008), the largest increase for that time period in this decade. The Credit Risk Index is defined as the weighted average probability of 90-day delinquency or worse among consumers in a given region relative to the nation as a whole.
To read the full story click on the attachment
Source: http://www.transunion.com
|
|
|
CHICAGO, July 1 /PRNewswire/ -- With auto loan delinquencies rising more than 27 percent in the last year and with the already highly competitive auto industry enduring bankruptcy issues, auto dealerships and lending institutions face challenges to keep a steady flow of customers.
To assist the industry in today's dynamic economic climate, TransUnion announces the launch and availability of Auto Summary and APR Estimator, new solutions to provide insight when evaluating a customer for financing. These solutions will help finance managers, captive lenders, bank lenders and credit union managers streamline the auto financing process and provide them with a competitive edge.
To read the full story click on the attachment
|
|
|
CHICAGO, June 22 /PRNewswire/ -- TransUnion announced that it will utilize data from FDCPA Case Listing Service LLC to provide an added feature for batch records delivered via TransUnion's Collections Prioritization Engine.
The new solution is named FDCPA Case Search and allows TransUnion to alert collectors about accounts that may have previously been involved in FDCPA litigation to assist collectors in determining strategy.
To read the full story click on the attachment.
|
|
|
CHICAGO, June 15 /PRNewswire/ -- TransUnion.com released today the results of its analysis of trends in the auto lending industry for the first quarter of 2009. The report is part of an ongoing series of quarterly consumer lending sector analyses focusing on credit card, auto loan and mortgage data that may be found on TransUnion's Web site.
Information for this analysis is culled quarterly from approximately 27 million anonymous, individual credit files, providing a real-life perspective on how U.S. consumers are managing their credit health.
To read the full story click on the attachment
|
|
|
BIIA member D&B Australia published its latest Business Expectations Survey for the September quarter.
Key points for the survey include:
- The employment growth indicator has risen slightly but remains deep in negative territory
- Sales and profits expectations have improved but remain in negative territory. The sales index is up 16 points to -32 and the profits index is up 17 points to -40
- Selling price expectations have eased significantly, but nearly two in three businesses (63%) still expect to raise prices in the September quarter
- Capital investment expectations are down again, with 17% of firms expecting to decrease capital investment
To read the full story click on the attachment.
For further information contact:
Nathan Williams | Corporate Affairs Manager
Dun & Bradstreet Australia | Level 2, 143 Coronation Drive, Milton QLD 4064
t +61 7 3360 0635 | m +61 414 569 380 | e williamsnt@dnb.com.au | w http://www.dnb.com.au
|
|
|
The number of business-to-business debts referred for collection has increased by close to twenty percent year-on-year and their dollar value is up by almost fifty percent, according to figures released today by Dun & Bradstreet (D&B).
These findings come on the back of further research by D&B which reveals that almost 150,000 firms are now more likely to pay their trade accounts in a delinquent manner and that business-to-business payment days have reached close to double the standard term (57.6 days).
D&B's research reveals that cash flow issues are prevalent in the economy, however the latest figures show that Australian firms are taking steps to improve their cash position and ensure their sustainability against the challenging economic backdrop.
For further information contact:
Danielle Woods | Corporate Affairs Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
Survey Finds Americans Could Use a Crash Course in Financial Basics
TrueCredit.com Challenges Consumers to Test Their Own Financial Knowledge. To read the full story click on the attachment
|
|
|
Attached is the latest findings from the Business Expectations Survey from Dun & Bradstreet for the September quarter.
Key points for the survey include:
- The employment indicator has dropped to the lowest level recorded by the survey
- Sales and profits expectations have improved slightly but remain in negative territory. The sales index is up 10 points to -38 and the profits index is up 11 points to -46
- Selling price expectations have eased significantly, but two in three businesses (66%) still expect to raise prices in the September quarter
- Capital investment expectations are down again, with 17% of firms expecting to decrease capital investment
Nathan Williams | Corporate Affairs Manager
Dun & Bradstreet Australia | Level 2, 143 Coronation Drive, Milton QLD 4064
t +61 7 3360 0635 | m +61 414 569 380 | e williamsnt@dnb.com.au | w http://www.dnb.com.au
To read the full story please click on the attachment
|
|
|
CHICAGO and SANTA ANA, Calif., April 13 /PRNewswire/ -- To improve visibility into the hidden risk of many of the mortgage assets currently plaguing the financial system and capital markets, TransUnion has developed a new solution called TransUnion Consumer Risk Indicators.
This solution, developed in cooperation with First American CoreLogic, a member of The First American Corporation family of companies , makes available previously missing information for Mortgage Secondary Market risk analysis and modeling.
To read the full story click on the attachment
|
|
|
CHICAGO, March 3 /PRNewswire/ -- TransUnion.com released today the results of its analysis of trends in the mortgage industry for the fourth quarter of 2008 and the associated impact on the U.S. consumer. To read the full story click on the attachment
http://www.transunion.com
|
|
|
CHICAGO, March 17 /PRNewswire/ -- TransUnion.com released today the results of its analysis of trends in the auto lending industry for the fourth quarter of 2008. The report is part of an ongoing series of quarterly consumer lending sector analyses focusing on credit card, auto loan and mortgage data that may be found on TransUnion's Web site. Information for this analysis is culled quarterly from approximately 27 million anonymous, individual credit files, providing a real-life perspective on how U.S. consumers are managing their credit health.
To read the full analysis click on the attachment
http://www.transunion.com
|
|
|
Year-Over-Year Delinquency Rates See Double-Digit Decline
CHICAGO, March 9 /PRNewswire/ -- TransUnion.com released today the results of its analysis of trends in the credit card lending industry for the fourth quarter of 2008. The report is part of an ongoing series of quarterly consumer lending sector analyses focusing on credit card, auto loan and mortgage data that may be found on TransUnion's Web site. Information for this analysis is culled quarterly from approximately 27 million anonymous, individual credit files, providing a real-life perspective on how U.S. consumers are managing their credit health.
To read the full story click on the attachment
http://www.transunion.com
|
|
|
Nearly 130,000 Australian businesses have had their risk profile downgraded since
October 1, 2008 (the beginning of Australia’s first quarter of negative economic growth in 17 years) and are now a higher risk of experiencing financial distress over the next twelve months, according to Australia’s leading credit reporting agency Dun & Bradstreet. This is the largest number of businesses that Dun & Bradstreet has ever downgraded in a six month period.
In a further sign of stress in the economy Dun & Bradstreet has also rated nearly 150,000 businesses as being at a higher risk of paying their bills in a delinquent manner since October 1, 2008. This re-rating follows recent Dun & Bradstreet trade payments analysis revealing that business-to-business payment terms reached their highest level in seven years during the March 2009 quarter, showing that cash flow pressures are prevalent in the economy.
To read the full story click on the attachment
Danielle Woods | Corporate Affairs Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
Mumbai, April 7, 2009: The Dun & Bradstreet Composite Business Optimism Index for Q2 2009 fell to a new low of 93.8, after touching 95.7 in Q1 2009.
As compared to the previous quarter, the Composite Optimism Index declined by around 2%. However, the pace of contraction is lower as compared to the previous quarter; in Q1 2009 the Composite Optimism Index fell by 31% (q-o-q). On a y-o-y basis, the BOI for Q2 2009 recorded a decrease of 39% as against a decline of 43% in Q1 2009. Based on the responses received, it was observed that five out of the six optimism indices – namely, volume of sales, net profits, selling prices, new orders, and employee levels have registered a decline as compared to the previous quarter. Only one out of the six optimism indices – inventory levels – increased by seven percentage point as compared to the previous quarter.
To read the full story click on the following link: http://www.dnb.co.in/News_Press.asp?mid=171
|
|
|
|
D&B National Business Expectations Survey – April 2009 Results: Business adopts wait and see approach on stimulus. Employment & inventory expectations drop to new lows
D&B Australia (BIIA Full Member)released its latest findings from the Business Expectations Survey for the June quarter. Key points for the survey include:
- Sales and profits expectations continue to dive, 57% of firms anticipate declining sales and 64% expect declining profits
- Selling price expectations have eased slightly however three in four businesses (74%) expect to raise prices in the June quarter
- The employment growth indicator has dropped to the lowest level recorded by the survey
- Capital investment expectations have declined further, with 12% of firms expecting to decrease capital investment
To read the full story click on the attachment.
Nathan Williams | Corporate Affairs Manager
Dun & Bradstreet Australia | Level 2, 143 Coronation Drive, Milton QLD 4064
t +61 7 3360 0635 | m +61 414 569 380 | e williamsnt@dnb.com.au | w http://www.dnb.com.au
|
|
|
Q1 2009 : D&B Business Optimism Index drops to 95.7 - the lowest since its introduction in Q4 2002
Dun & Bradstreet INDIA has published its Optimism Index for India. It is recognized as a product, which measures the pulse of the business community and serves as a reliable benchmark for investors. The D&B Optimism Index is arrived at on the basis of a quarterly survey of business expectations. Over
time, this quarterly survey has emerged as a leading indicator of turning points in economic activity.
Outlook for Q1 2009 - Key Highlights
Composite Business Optimism Index at a record low
Optimism Index for Net Profits at six and a half year low
All the six optimism indices register decreases
To read the full story click on the attachment
http://www.dnb.com/in
|
|
|
A collapse in world trade, particularly in the Asia-Pacific region, and a sharp drop in economic growth for China have significantly heightened the downside risk to Australia’s outlook, according to a new report released today by leading credit reporting and business intelligence firm Dun & Bradstreet (D&B).
The quarterly Global Economic & Risk Outlook Report states that recent months have seen an outright collapse in world trade, particularly in the emerging markets of East Asia. This has resulted in a further downgrading of world economic growth for 2009 to -1.2% led in large part by further deterioration in China and Japan. Those economies are now forecast by D&B to post growth of 3.5% and -3.8% respectively for 2009. Australia's growth for 2009 is now forecast by D&B at -0.2%.
As a consequence of these challenges 70 countries have had their risk rating downgraded over the last 6 months and more are expected to suffer the same fate as 2009 progresses. The number of risk downgrades peaked in November, before dropping off over following months, but have begun to rise again in February and March 2009.
To read the full story click on the attachment
|
|
|
A collapse in world trade, particularly in the Asia-Pacific region, and a sharp drop in economic growth for China have significantly heightened the downside risk to Australia’s outlook, according to a new report released today by leading credit reporting and business intelligence firm Dun & Bradstreet (D&B).
To read the full story click on the attachment.
|
|
|
How do best-in-class credit risk management teams minimize the impact of changing economic environments and help their organizations not only survive unscathed, but
maintain and improve profitability? By leveraging their extensive knowledge of their
customers and applying it to every stage of the customer lifecycle.
A D&B While Paper produced by:
William F. Balduino
Leader Ð Risk Management Practices, D&B
David M. Earickson
Leader Ð Risk Management Applications, D&B
To learn more about how D&B can assist you in implementing a customer lifecycle strategy, please call the authors at 973.921 5500
http://www.dnb.com
|
|
|
Dun & Bradstreet Australia predicts 27% of firms plan to cut back on staff based on its latest business expectation survey
Australia’s economic outlook continues to worsen as executives' expect a further deterioration in business conditions and performance in the forthcoming June quarter.
The results of the latest Dun & Bradstreet Business Expectations Survey, following the latest national accounts and GDP data from the ABS, provide further evidence that Australia will experience a difficult downturn as a result of the global economic and financial crisis.
The impact of the crisis is evident in executives' expectations for the June quarter, with 57% of firms anticipating declining sales and 65% having the same expectation for profits.
Expectations for employment and capital investment are following the same downward trend,
with 27% of firms expecting to cut back on staff and 12% anticipating a need to decrease
capital investment.
To read the full release click on the attachment
Damian Karmelich | Director - Marketing & Corporate Affairs Dun & Bradstreet Australia | Level 7, 479 St Kilda Rd, Melbourne, 3000
t +61 3 9828 3233 | m +61 407 772 548 | e karmelichd@dnb.com.au karmelichd@dnb.com.au> w http://www.dnb.com.au <http://www.dnb.com.au/>
|
|
|
Australian firms have had a difficult start to the New Year and executives are anticipating the quarter ahead will be the most challenging yet.
The latest Dun & Bradstreet (D&B) Business Expectations Survey reveals that an increasing number of firms expect sales, profits, employment and capital investment to weaken further in the June 2009 quarter.
A full media release is attached for your interest and an overview of the outlook for the June 2009 quarter follows:
- Sales and profits expectations continue to dive, 53% of firms anticipate declining sales and 60% expect declining profits
- Selling price expectations have eased slightly however three in four businesses (74%) expect to raise prices in the June quarter
- The employment growth indicator has dropped to the lowest level recorded by the survey
- Capital investment expectations have declined further, with 10% of firms expecting to decrease capital investment
For further information contact Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
Many of BIIA members are the largest suppliers of CREDIT INFORMATION SOLUTIONS in Asia. These members maintain the largest credit information databases in Asia and subscribe to a 'Code of Conduct'.
Key elements of the 'Code of Conduct' are data security, quality standards, confidentiality of source and the rights of data subjects concerning access to their report and the right to corrections of errors.
To read more click on: http://www.biia.com/code_of_conduct.php
|
|
|
|
With China being the world's fastest growing economy that's increasingly opening up to the West, the demand by Western companies for quick and reliable information on potential Chinese partners is on the increase.
Graydon has responded to this demand with the launch of its China credit reports database.
Graydon prides itself on being a provider of high-quality credit reports and has partnered with a leading in-country Chinese credit information provider to deliver an easy to access, English language database of 300,000 Chinese corporations known to be of interest to overseas trading partners and exporters.
This new service will make available the financials of over 90% of these Chinese corporations as well as providing recommended credit limits. Graydon offers competitive pricing.
China is the latest country to be added to Graydon's fast expanding International credit reports service which provides instant access to millions of online credit reports in over 130 countries.
Graydon International is one of the leading database information providers specialising in credit risk management. The company helps clients reduce the uncertainty of doing business by providing a complete, differentiated and high-quality package of credit risk management services. Graydon provides access to credit information and reports on companies in more than 130 countries worldwide.
The Graydon group is owned by Atradius, Coface and Euler Hermes, three of Europe's leading credit insurance organisations. http://www.graydoninternational.com
To find out more – call Graydon International +44 (0)20 8515 1482 or email info@graydoninternational.com
|
|
|
|
SHOCKING NEWS: The chairman of India’s Satyam Computer Services resigned on Wednesday (January 6th, 2009) after confessing to fixing the IT outsourcing company’s books for the past “several” years, the country’s first major fraud case to emerge following the global financial crisis.
The financial services industry of the world has entrusted many Indian outsourcing companies to manage systems and confidential data of their clients. In view of the Satyam case why should they? Trust is the key element here and Satyam has violated that trust. However, India has decided not to trust foreign credit information companies either by restricting their involvement of owning and managing consumer credit information in India. The global financial crisis has brought the virtues of transparency to the forefront of the regulatory agenda. Unfortunately both cases show that India is heading in the wrong direction as far as transparency and reliability of financial information is concerned.
To read the full story, click on the attachment!
|
|
|
Australian businesses are preparing for a challenging year, with executives anticipating further declines in sales, profits, employment and capital investment in the March 2009 quarter.
The latest Dun & Bradstreet (D&B) Business Expectations Survey reveals that 54% of firms anticipate declining sales in the March 2009 quarter, while 59% have the same expectation for profits. Meanwhile 20% of executives expect to have fewer staff in the March quarter than they did a year ago and 10% of firms expect to decrease capital investment.
A full media release is attached for your review and an outline of the outlook for the March 2009 quarter follows:
- Sales and profits expectations have dived further into negative territory, both down 59 points from the highs of the December quarter 2007
- Selling price expectations have climbed to the highest figure ever recorded by the survey
- The employment indicator is at an index of -14
- Capital investment expectations are down one point to an index of minus seven
For further information contact:
Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
The Financial Times reported today that the world’s three leading credit insurance firms: Atradius, Coface and Euler-Hermes are no longer covering credit risk of suppliers to GM and Ford. It is a vote of no confidence and the refusal to cover credit risks has usually hastened the demise of companies. Atradius, Coface and Euler-Hermes control over 80% of the credit insurance market.
This puts the heat on credit managers of suppliers and heightens the importance of credit information services as credit insurers bow out!
|
|
|
|
FCIB CHINA will be holding an Executive Trade Risk Management Workshop on December 11 - 12, 2007 in Shanghai, China. To find out more about the event click on the attachment.
http://www.fcibglobal.com.cn
|
|
|
The Department of Industry predicts that there would be 8,000 micro, small and medium size businesses which may have to shut down production as cost of credit increases.
Source: http://www.dnb.co.id/news_detail.asp?news_id=1774
|
|
|
|
Veda Advantage survey finds 79% of Australians worried about their ability to repay debt over the next 12 months.
A national survey conducted on behalf of Veda Advantage has found that less than one in ten Australians say they intend to apply for new credit over the next 12 months (3% very likely, 5% quite likely). The survey also found that 79% of Australians with debt are worried about their ability to repay debt in the next twelve months – up from 75% in March 2008.
Source: http://www.vedaadvantage.com
|
|
|
|
The business optimism index of Dun and Bradstreet Information Services India Pvt Ltd, for the October-December quarter of 2008 recorded a 28.1% drop to 138.9 from 193.2 in the corresponding quarter of the previous year Q4 2007. This is the sharpest fall ever witnessed in the index.
All six sub-indices have fallen significantly compared with the corresponding period last year, a Dun and Bradstreet release said. The optimism index for net profits has experienced a decline of as much as 21 percentage points while the optimism index for volume of sales has declined by as much as 17 percentage points on a y-o-y basis indicating subdued demand conditions. The optimism index for new orders stood at 68%,- a decline of 18 percentage points.
"The crisis of confidence being witnessed across the world's financial markets is reflected in the deteriorating sentiment of the Indian business community.
The moderation in economic growth, high inflation and deepening global financial crisis have adversely affected corporate sentiment," said Kaushal Sampat, chief operating officer, Dun and Bradstreet. The index measures the pulse of the business community and serves as a reliable benchmark for investors.
http://www.dnb.co.in
|
|
|
|
Outlook for December Quarter 2008 from the D&B National Business Expectations Survey – October 2008 Results
- All indexes except selling prices remain in negative territory
- Selling price expectations have climbed 11 points to an index of 62, the highest figure
recorded since June 1988
- Sales and profits expectations continue to fall, down 42 and 43 points respectively from
the highs of the December quarter 2007
- Employment growth expectations are at the lowest point since June 1991
- Capital investment expectations are up one point an index of minus six
Tightening credit market: Seven in ten (69%) executives anticipate that a tightening credit market will have a negative impact on operations
To read the full release click on the attachment.
For further information please contact:
Damian Karmelich – D&B Director of Corporate Affairs
P: 03 9828 3233 / 0407 772 548
|
|
|
UNITED TECHNOLOGIES CASE STUDY ON MANAGING GLOBAL SUPPLY CHAIN RISK
United Technologies Corp. (NYSE:UTX) is the US$43 billion manufacturer working with more than 25,000 suppliers worldwide. UTC implemented a revolutionary initiative to ensure peak performance from its global supply bases.
Supplier failure can ripple through the entire value chain of a corporation, which is an important reason for UTC wanting to know if a supplier heads for a crisis long before its impacts its business.
Open Ratings (a D&B Company) helps UTC invest in the health of its suppliers, improving the value stream and enabling lean practices – while minimizing exposure to risk. http://www.dnb.com
To read the full case study click on the attachment.
|
|
|
In the hunt for culprits of the credit crunch the lack of information, perhaps even imperfect information, and the rating agencies have been unfairly singled out as prime suspects.
What received scant attention is the fact that in the value chain of capital markets there are many players, some of which acted irresponsibly, got paid up front, while the FED (or tax payer) is now picking up the pieces.
To read the full story click on the attachment.
September 20, 2008
|
|
|
"KNOW YOUR CLIENTS AND SUPPLIERS": IN TIME OF CRISIS THE ROLE OF INFORMATION SOLUTIONS IN RISK ASSESSMENT IS ONCE AGAIN THE PRIMARY ELEMENT IN STAYING SOLVENT!
Local banks in Asia may tighten lending to businesses and consumers
Exporters expect orders to be cut
Consumer sentiments are expected to take a hit
India expects growth in automobile industry to fall from 15% to 5%. Cement and steel profit margins to take a hit with rising cost of capital and fall of commodity prices
According to the Indian publication BUSINESS STANDARD, S&P Chief Economist, David Wyss stated: "The losses of the subprime directly appear to be in line with the US$ 400bn anticipated. However there are derivative losses down the line and I believe the US$ one trillion estimate should probably hold. There is some pain left and it will take time a while before things are back to normal."
BIIA has repeatedly alerted during the past 12 months users of information and BIIA members that the credit crunch would eventually hit Main Street affecting all businesses. The impact of the credit crunch has now reached every corner of the globe.
Last week's meltdown in the financial services sector serves as a severe warning for businesses to conserve working capital, to lay off risk, be more vigilant in assessing new risk and to monitor consistently existing credit lines.
September 20th, 2008
|
|
|
|
Forensic accountants in India are reported to work on several cases of senior management fraud. Many of these cases relate to increasing profits through unethical and fraudulent practices. The culprit is variable compensation, especially in cases where variable compensation is a multiple of fixed compensation. According to accountants and lawyers interviewed by the Business Standard indicated that more of such cases will emerge as the economic climate worsens. Cooking the books in the past was linked to stock option schemes, now it seems to be variable compensation. Most experts agreed that these cases will become public because Indian companies are not transparent and firings are often masked as ‘resignations’.
Common practices for shoring up profits are: transferring expenses to subsidiaries and pushing finished goods to dealers. In most cases, the whistle is blown by disgruntled employees, and audit committees of directors. Private equity firms also often launch their own investigation.
Source: Business Standard India Sept. 13, 2008
|
|
|
|
Executives anticipate further economic challenges ahead
Australia’s business executives are anticipating a further decline in economic conditions in the December quarter as high fuel prices, continued inflationary pressures and a cut back in consumer spending hurt sales and profit margins.
A full media release is attached for your review and an overview of the outlook for the December quarter follows:
- All indexes except selling prices remain in negative territory
- Sales and profits growth expectations continue to fall, down 42 and 41 points respectively from the highs of the December quarter 2007
- Employment growth expectations are at the lowest point since June 1991
- Capital investment expectations are unchanged at an index of minus seven
- Selling price expectations have climbed six points to an index of 57
For further information or to organize a time to speak with Christine Christian, D&B’s CEO, please contact:
Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
A record of court actions against a company or its directors should be seen as an important indicator of likely business failure, according to new research by leading credit reporting agency Dun & Bradstreet (D&B).
D&B’s research, which reveals that a company is eleven times more likely to fail if it has a court action against it and eight times more likely to fail if one of its directors has a court action against them, comes as business failures data for first half of 2008 shows an eleven per cent increase on the same period in 2007.
A full media release is attached for your review and an overview of key findings follows:
- a business is 8.3 times more likely to fail when a director court action is present – the llikelihood of failure escalates to 11.1 times if the value of the court action is more than $10,000
- the risk of a business venture failing doubles for companies with a director who has been on the board of a previously failed company
- a company is eleven times more likely to fail if it has a court action against it - the likelihood of failure escalates to 15.2 times if the value of that court action is more than $5,000
For further information or to organize a time to speak with Christine Christian, D&B’s CEO, please contact Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
One year into the credit crunch, BIIA member Hugo Dixon, Editor-in-Chief and Founder of Breakingviews.com wrote his commentary called 'A System run Amok'. The contents of this book has been made available to BIIA members and readers courtesy of Breakingviews.com . We thank Hugo Dixon for this wonderful gift.
Preface
One year after the onset of the credit crisis, it has become more clear than ever that the financial system has run amok. The crisis has revealed how bankers have too often taken massive bets – normally with other people’s money – without paying adequate attention to the risks. When trouble hit, the regulators have rushed to the rescue, cutting interest rates and bailing outbanks. Ordinary savers have lost out, taxpayers may end up footing the bill and the evil of inflation has been allowed to seep back into the global economy.
The old Marxist critique that, in capitalism, the profits are privatised and the losses are socialised is telling. The solution, however, is not to kill the financial system. Warts and all, the modern world of finance still does create value. But the other extreme – do nothing – isn’t the solution either. The answer is to remove as many warts as possible while still accepting there will be blemishes. This book – which contains articles written as the crisis unfolded – suggests a series of ways of doing just that.
Hugo Dixon,
Editor-in-Chief
breakingviews.com
July 2008
CLICK ON THE LINK TO READ THE FULL STORY: : http://www.breakingviews.com/~/media/Files/ebooks/Asystemrunamok.ashx
|
|
|
|
Dun & Bradstreet’s latest Business Expectations Survey shows that economic conditions are expected to deteriorate further in the December quarter as continually escalating costs and poor sales results hurt the profits of Australian companies.
A full media release is attached for review and an overview of the outlook for the December 2008 quarter follows:
- All indexes except selling prices remain in negative territory
- Sales and profits growth expectations continue to fall, down 43 and 41 points respectively from the highs of the December quarter 2007
- Employment growth expectations are at the lowest point since June 1991
- Capital investment expectations are up one point to an index of minus six
- Selling price expectations have climbed four points to an index of 54
For further information contact:
Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
The pressure on Australian businesses continues with payment terms at a seven year high and almost four weeks past the standard term.
The latest figures in Dun & Bradstreet's (D&B's) quarterly trade payment analysis reveal that payment terms across all industries are at 55.6 days, an increase of three days since the June 2007 quarter.
A media release is attached for your review and an overview of key findings follows:
Private companies are now slower to pay than their public counterparts however the difference between the two groups has narrowed. Private companies averaged 60.9 days to settle accounts in the June quarter (double the standard term) while public companies took 58.0 days
Suppliers of big business are facing the greatest burden as those companies with 500+ employees continue to be the worst payers – they averaged 60.7 days to settle accounts in the June 2008 quarter
Electricity, Gas and Sanitary Services is slowest to pay at 58.7 days, following an increase of more than three days on the same period last year. Meanwhile the Agriculture sector continues to be quickest to pay and is the only industry to pay its bills in less than 50 days
At a state level NSW has been joined by Victoria in taking the longest time to pay bills. Tasmania continues to be the quickest paying state however its 3.5 day increase on last year has pushed it above the 50 day mark.
For further information contact:
Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
Australia’s business executives are anticipating a bleak September quarter as high fuel prices, continued inflationary pressures and slowing consumer spending hurt sales and profit margins. D&B's latest Business Expectations Survey is attached for your review.
The following is a summary of the outlook for the September quarter:
- All indexes except selling prices have entered negative territory
- Sales and profits growth expectations have fallen sharply, down 33 and 29 points respectively from December quarter highs
- Employment growth expectations are at the lowest point since June 1991
- Capital investment expectations have dropped 11 points to an index of minus six
- Selling price expectations have climbed five points to an index of 50
For additional information contact Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
Australian consumers are facing debt troubles with young people and those living in outer metropolitan regions in particular showing signs of severe debt stress.
A full media release including regional analysis is attached for review and an overview of key findings follows:
- More than half of all debtors are younger than 35
- More than 60% of consumers are defaulting on low value amounts ($400 or less)
- Males have higher average debt values than females and are less likely to repay their bills
- Debt stress is most evident in outer metropolitan areas
- NSW and Victoria account for the highest proportions of debt referred for collection.
For additional information contact:
Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
Economic conditions are expected to deteriorate with a rapid slowdown in activity in the September quarter as global turbulence and domestic inflationary pressures buffet Australian businesses. The latest Dun & Bradstreet (D&B) Business Expectations Survey is showing a steep decline in expectations for sales, profits, employment growth and capital investment, with all of these indexes now in negative territory.
A full media release is attached for your review and an overview of the outlook for the September quarter follows:
- All indexes except selling prices have moved to negative territory
- Expectations for sales and profits growth have fallen sharply, down 31 and 27 points respectively from December quarter highs
- Reaching the lowest point since the December quarter 1992 the outlook for employment growth is down 16 points
- The outlook for capital investment has dropped 11 points since the previous quarter to an overall index of minus five
- Expectations for selling prices have risen slightly but remain lower than four of the last five quarters
For additional information contact:
Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
Business-to-business payment terms have blown out to their highest level since 2001, increasing cash flow pressure on Australian businesses already buffeted by a shakier economic outlook.
The latest figures in Dun & Bradstreet’s (D&B’s) quarterly trade payments analysis reveal that the average payment period across all industries has reached 55.8 days.
A full media release is attached.
Key findings follows:
Sector:
- The Communications sector was the slowest to pay at 62.2 days
- Despite an increase of 2.5 days, the Agriculture sector was the quickest to pay
Business size:
- Businesses with 500+ employees were the slowest to pay, reaching a level more than double the standard term (62.7 days)
- Small businesses were the quickest to pay, with companies up to 50 employees taking just under 55 days to settle accounts
Public vs.. Private:
- Taking almost five weeks longer than the standard term, public companies averaged 64.5 days to pay bills in the March quarter
- Private companies added 3.2 days to reach payments terms of 55.6 days
State:
- NSW is the slowest state to pay and Tasmania the quickest at 57.6 and 52.2 days respectively
For additional information or to organise an interview please contact:
Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
Mumbai, April 10, 2008: The Dun & Bradstreet Composite Business Optimism Index for Q2 2008 recorded a decrease of 9% to 153.7 from 168.9 in the previous quarter. On a y-o-y basis, the BOI recorded a decrease of 23.6%; however this is, in part, due to the high base of the previous year. Five out of the six optimism indices, namely volume of sales, net profits, new orders, inventory levels and selling prices have registered decreases as compared with the previous quarter. The optimism index for employees remains almost unchanged from the previous quarter. Amongst the sectors surveyed, the services sector and the capital goods sector were the least optimistic with respect to expectations for the Apr-Jun 08 quarter. The intermediate goods sector seemed more optimistic amongst the sectors surveyed.
Highlights of the survey:
- Composite Business Optimism Index for Q2 2008 recorded a decrease of 9% to 153.7 from 168.9 in the previous quarter
- On a y-o-y basis, the BOI recorded a decrease of 23.6%. High base effect at play
- Optimism Index for Volume of Sales for Q2 2008 stands at 63% as compared to 82% in the previous quarter
- Optimism Index for Net Profits for Q2 2008 stands at 55%, a decrease of 21 percentage points over the previous quarter
- Optimism Index for Selling Prices for Q2 2008 stands at 45%, which is a decrease of 5 percentage points from the previous quarter
- Optimism Index for New Orders for Q2 2008 stands at 65%, a decrease of 18 percentage points over the previous quarter
To read the full story go to: http://www.dnb.co.in click on press releases or contact Metabelle Lobo E-mail: LoboM@mail.dnb.co.in
|
|
|
|
The latest Dun & Bradstreet (D&B) Business Expectations Survey showing signs of success in the fight against inflation.
Meanwhile the combination of high interest rates and market turmoil has fuelled executive concerns regarding the impact of the credit market on operations. With a fifteen per cent increase since the previous survey, more than two thirds (71%) of executives now expect a tightening of credit will have a negative impact on operations.
- Expectations for selling prices are at their lowest level in 18 months, following an eight point decrease since the March quarter
- The outlook for capital investment has improved, up four per cent since the previous survey to an overall index of 6 per cent
- The outlook for employment growth is in positive territory and stronger than the March quarter
- Expectations for sales and profits growth have fallen, sales are down five points and profits have dropped nine points from December quarter highs
Please click on the media release to read the full story or contact Danielle Woods for further information.
Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
There has been a jump in the number of Australian households expecting to have higher levels of debt in three months time and young people are showing increasing signs of severe debt stress according to the latest Dun & Bradstreet Consumer Credit Expectations Survey. The survey shows:
- Young people are showing signs of severe debt stress with 18-34 year olds having the highest expectations for problematic credit card use and missed payments over the June quarter
- A clear gap is starting to emerge between the credit expectations of Australians earning less than $30,000 per annum and those earning between $30,000 and $70,000
- Credit demand remains strong with a steady number of Australian’s expecting to apply for new credit facilities over the next three months
- There has been a jump in the number of households expecting to have higher debt levels in three months time.
For further information contact:
Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
To read the entire story please click on the attachment
|
|
|
D&B Australia reports a dramatic jump in the number and value of corporate defaults:
- A twelve per cent jump in the number of debts referred for collection between January and December of 2007
- A 300% spike to more than A$26,000 in the value of debt referred in the Banking, Insurance and Finance sector
- A 23% jump in the number of low value debts referred for collection
"The increase in the value of debt being referred suggests that some businesses are facing significant cash flow difficulties", stated Ms Christian, Managing Director of D&B Australia
To read the full story please click on the attachment http://www.dnb.com.au
|
|
|
The latest Dun & Bradstreet Business Expectations Survey is showing early signs of success in the fight against inflation. A full media release is attached. Here are the key findings:
Outlook for June quarter 2008
- Expectations for selling prices are down five points on last months survey
- The outlook for capital investment remains weak with the overall index at 2 per cent
- Expectations for sales and profits growth have fallen, sales are down five points and profits have dropped 12 points from December quarter highs
- The outlook for employment growth has returned to negative territory
Issues expected to influence operations in the June quarter 2008
- Concerns regarding interest rates remain unchanged since the previous survey. Thirty nine per cent of executives expect interest rates to be the most important influence on their business in the quarter ahead
- Wages growth concerns have overtaken fuel prices, with twenty seven per cent of executives expecting wages growth to be the most important influence on their business in the quarter ahead. An increase of 14 per cent since December, this index has reached its highest level in eight months
- Twenty six per cent of executives expect fuel prices to be the most significant influence on operations in the coming quarter, down 5 per cent on the previous survey
For further information or to arrange an interview with D&B CEO, Christine Christian or economic consultant, Dr Duncan Ironmonger please contact me on 02 8270 2926 / 0417 270 130.
Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
Institute Senior Fellow Dr. Joseph Duncan has released his “Economic Outlook for 2008 – Driven by Credit Conditions” in the Credit and Financial Management Review. Dr. Duncan predicts slower growth because of the housing crisis and a loss of confidence in the public and financial institutions, but points to the overall strength of the U.S. economy in suggesting that a recession is not the most likely forecast. He predicts a year-over-year growth of at least 2%, compared to 2.7% in 2007.
Dr. Duncan is on the advisory board of the Political and Economic Research Council, as well as a Senior Fellow. Formerly, he served as chief economist at Dun & Bradstreet, Chief Statistician of the United States at the OMB, and senior economist at the Battelle Institute. He has authored two books, and has published hundreds of articles and reports. Dr. Duncan is widely cited in the mainstream and trade media, is a frequent public speaker, and expert witness.
The Political and Economic Research Council is a non-profit, nonpartisan organization devoted to research, public education and outreach on public policy matters. PERC's goal is to educate and engage policy makers, consumers, the financial/economic community and the larger public, in the firm belief that a better informed public makes better decisions. Areas of expertise include information policy, credit access and the global information economy. The Council is funded by both for profit and not-for-profit organizations that support the Institute's general mission and agenda.
The full article can be viewed on our website at http://www.infopolicy.org/pdf/DuncanEconomicOutlook.pdf. All of our studies can be viewed on our website at http://www.infopolicy.org.
|
|
|
|
WWW.VEDAADVANTAGE.COM
|
|
|
Corporate Governance and Related Credit Issues for Indian Family-Controlled Companies
In its report Moody's and ICRA India outline a number of important characteristics when dealing with family-controlled companies in India:
The Indian corporate sector is dominated by companies controlled and managed by family groups. For example, 17 of the 30 Sensex1 companies are family-controlled.
Moody’s has observed globally that family-controlled companies can face specific corporate governance challenges. These include:
- Comparatively fewer checks and balances on their actions
- Leadership transition risks, and the emergence of conflicting visions and strategies
- Limited transparency on matters such as ownership, control and related party transactions
- Slowness to adapt, or respond to emerging business challenges
- Propensity towards higher leverage.
Many Indian family-controlled groups have complex corporate structures. Furthermore, it is common to see inter-group cross-holdings of shares. In such cases and despite regulatory requirements to disclose promoter2 shareholding, it can be difficult to assess ownership and control – which factors potentially impact credit quality – on the basis of public information.
Pyramid structures – where control of substantial operating companies can be achieved through ownership of 51% of a chain of holding companies – are not commonly observed in India. In addition, companies have generally not issued different classes of shares with differential voting rights.
Summary opinion
Family-controlled firms often have specific characteristics. Their strengths can include a long-term management perspective and a cautious approach to risk to avoid destroying family wealth – as well as an ability to act quickly. However, family control can also raise specific corporate governance concerns in areas including adaptability, leadership transition, checks and balances and transparency.
Family companies dominate India’s corporate landscape. Moody’s and ICRA have surveyed certain corporate governance practices of 32 Indian companies in 16 prominent family groups, covering a broad cross-section of Indian industries. These companies have responded well to the opportunities available in the fast-growing and liberalizing economy of modern India. However, the lack of a meaningful “control group” of non-family controlled companies means that the survey has not been able to draw conclusions on how the family controlled-business model in India compares against one based on more widespread share ownership.
Although Indian corporate governance practices continue to improve, this largely reflects regulation of listed companies, particularly with regard to certain “checks and balances”. These include the composition of the board of directors and the operations of audit committees. Although there are material residual issues regarding checks and balances, these are generic to corporate India and not isolated to family companies – for example, the lack of activist shareholders and a business and cultural environment that does not permit hostile mergers and acquisitions.
October 2007
For further information contact: http://www.icra.in/aspx/Corporate-Governance.pdf
ICRA Contacts:
Mumbai 91.22.3047.0006
Anjan Ghosh, General Manager
Gurgaon 91.124.4545.370
Naresh Takkar, Managing Director
|
|
|
|
Inflationary pressure persists and interest rate and petrol price concerns continue to increase according to figures from the latest Dun & Bradstreet (D&B) Business Expectations survey.
A full media release is attached for your review and a summary of key findings follows:
expectations for selling prices have increased, with 62 per cent of firms anticipating their prices will be higher in the June quarter than a year earlier
expectations for sales and profits growth have fallen, 36 and 33 per cent of executives respectively expect increases in these indexes
thirty nine per cent of executives expect interest rates to be the most important influence on their business in the quarter ahead, an increase of 13% per cent since the previous survey
executive concerns regarding the credit market remain high, with 60 per cent expecting a tightening market will have a negative impact on operations
thirty one per cent of executives expect fuel prices to be the most significant influence on operations in the coming quarter, up 4 per cent since the previous survey.
For further information or to organise a time to speak with Christine Christian, D&B's CEO, contact Danielle Woods on 02 8270 2926 / 0417 270 130.
Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | http://www.dnb.com.au
|
|
|
Attached are the comments of Ms. Christine Christian, Managing Director of D&B Australia and Director of BIIA at the recent BIIA Credit Management & Information Forum 2008. She spoke about the following issues:
The current credit climate in Australia and New Zealand
The information needs of exporters to assess cross border risk from an Australian and New Zealand perspective
Current quality issues with information from emerging markets.
Ms. Christian can be reached at christianc@dnb.com.au
http://www.dnb.com.au
|
|
|
Over 70% of three of the oldest manufacturing segments of Mumbai, viz., Chemicals, Pharmaceuticals and Textiles, have firm plans for future growth
Mumbai, November 30, 2007: Dun & Bradstreet India is launching a series of publications dedicated to the SME clusters in India. The first publication in the series dedicated to the Mumbai cluster titled ‘Emerging SMEs: Mumbai 2007’ whichcovers three sectors - Pharmaceuticals, Textiles and Chemicals was launched today.
Speaking at the launch, Dr. Manoj Vaish, President & CEO – India, Dun & Bradstreet said, “Driven by the knowledge, skills, low costs, improved quality and demand, the pharmaceutical, textile and chemical sectors have witnessed tremendous growth over the past few years. The Government has envisioned increasing India’s share in the global textile market from the current 3% to 10% by end of 2015. The Indian pharmaceutical industry, whose products are exported to more than 200 countries, has been growing at 9% annually. The Indian chemical industry, one of the oldest sectors in the country, accounts for about 14% of the total exports and 9% of total imports of the country. The contribution of the SMEs to these three sectors, especially by adopting the cluster model, is well recognized.”
“With the SME segment poised to play an important role in the growing economy, D&B India is confident that Emerging SMEs: Mumbai 2007 will provide the right platform for SMEs to tap global opportunities and tackle emerging business challenges”, added Dr. Vaish.
The publication was released by Dr A K Khandelwal, Chairman & Managing Director, Bank of Baroda, Mr Ramesh Narasimhan, Director, Global Mid-Market Business, IBM India / South Asia was the Guest of Honour at the occasion. Dignitaries from the Indian SMEs segment and major stake holders in their growth process, financial institutions, industry bodies, corporates, banks etc. participated in a panel discussion on “Role of clusters in promoting Indian SMEs and meeting future challenges” that followed thereafter.
About D&B’s Cluster Publication Series
D&B’s Cluster Publication series is dedicated to the SME clusters in India. It will cover six geographical clusters - Mumbai, Pune, Chennai, Hyderabad, Gurgaon and Kolkata. These geographical areas have proven effective in incubating industrial clusters, thus allowing SMEs to flourish there-in. The cluster approach has proved efficient in terms of gaining credit facility, risk sharing, policy and institutional development and technical & marketing assistance. Globally, as well as in India, SMEs have used the cluster based approach to garner support through collective bargaining power, governmental policy, regulatory and institutional reforms, capacity building and initiatives for supporting efficient SME financing and business development services. It was in consonance with this philosophy that D&B has launched this publication series.
About D&B’s ‘Emerging SMEs: Mumbai 2007’:
Over the last decade, Mumbai has proved to be a viable option for setting up of SMEs in terms of infrastructure, financing and technology. Emerging SMEs: Mumbai 2007 focuses on SMEs whose manufacturing units are situated in Mumbai and nearby areas. The publication covers three prominent sectors in terms of number of units and employment - Chemicals, Pharmaceuticals and Textiles.
A total of 300 companies (turnover Rs.40 million – 1000 million), 100 from each sector, have been covered and profiled in the publication. The publication also includes the cluster insights that have been collated from the responses highlighting their various activities and the cluster related benefits and hindrances.
Highlights:
Private limited companies formed the dominant category in all the three sectors accounting for 50% of the textile sector; 69% from the chemical sector and 63% from the pharmaceutical industry.
Organic chemical manufacturing was the most popular product category in the chemical sector with around 34% of the companies involved in organic chemicals segment.
In the pharmaceutical sector, 68% of the profiled companies are involved in the allopathic medicines segment while in the case of textiles, 73% of the sampled companies were engaged in cotton and cotton related products segment.
A majority of the companies profiled were pursuing or interested in deploying various growth strategies in the near future. Likewise, with respect to future growth plans, 82% of the chemical companies envisaged strategies for future growth with 31% interested in capacity expansion.70% of the companies from the pharmaceutical segment and 76% from textile sector have future expansion plans.
In terms of the benefits derived from being part of a cluster, quality up gradation, manpower training and technology availability were the top three elements for all three sectors combined.
In terms of quality up gradation, 44% of the chemical companies, 25% of the pharmaceutical companies and 44% of the textile companies claim to have benefited from being in a cluster.
About Dun & Bradstreet India: http://www.dnb.co.in/default.asp
|
|
|
|
The latest D&B National Business Expectations Survey shows…
Outlook for March quarter 2008
- Sales and profits growth expectations have fallen for the first time in four quarters
- The outlook for employment growth has returned to positive territory following negative
expectations for the December quarter
- The capital investment outlook is just inside positive territory
- Expectations for selling prices remain high – 60 per cent of firms expect selling prices to
be higher in the March 2008 quarter than a year earlier
Interest Rates
- Interest rate concerns remain high with 25 per cent of executives expecting rates to be
the most important influence on their business in the quarter ahead
Tightening Credit Market
- Executive concerns regarding the tightening credit market remain unchanged, with 57
per cent expecting it will have a negative impact on operations
Pre-Christmas Spending
- Pre-Christmas spending is expected to have a greater positive impact than in 2006, with
19 per cent expecting a small positive impact – this compares to an expected 8 per cent
positive impact in 2006
Petrol Prices
- Recent movements in petrol prices have had a negative impact on 64% of businesses
- Nineteen per cent of executives expect fuel prices to be the most significant influence
on operations in the coming quarter
Actual for September quarter 2007
Growth in sales was the highest in three and a half years
Profits growth entered positive territory after six negative quarters
Despite being four points below expectations, capital investment growth was positive
Employment growth returned to positive territory after one negative quarter
Selling price rises were four points below expectations
For further information click on the attachment or contact:
Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e: woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
Almost ten per cent of Australian companies are rated a very high risk of experiencing financial distress or insolvency in the next twelve months, according to research released today by leading credit reporting and collections agency Dun & Bradstreet (D&B).
To read the full story please click on the attachment.
For further information please contact:
Danielle Woods
PR Manager
D&B Australia
W: +61 (0)2 8270 2926
|
|
|
BIIA INFORMS USERS:
- BUSINESS CONDITIONS DETERIORATE IN THE USA: The October member survey by the National Association for Business Economics (NABE) found a disheartening trend for the third quarter as business activity and capital spending slowed. The outlook for the near-term remains sour as the disintegration of the housing and subprime markets continues to make everyone nervous. (Courtesy NACM)
- CREDIT CRUNCH SLOWS GROWTH IN EUROZONE: The combination of the credit squeeze and the strength of the Euro have affected growth in the Eurozone nations and by most accounts the impact will be felt through at least the early part of 2008. The index of purchasing manager’s output has been released and shows a fourth straight month of decline. The service sector seems to have been especially hard hit by the credit squeeze as the large finance sector in Europe has been in a very cautious mode since the debacle started in late summer. Manufacturing seems to have been hit hard by the loss of export opportunities. (Courtesy NACM)
- TIGHTENING OF CREDIT MARKETS will have negative impact on Australian businesses. (D&B Australia
- AUSTRALIA'S LATE PAYMENT PROBLEM continues with the latest figures in Dun & Bradstreet’s (D&B’s) quarterly Trade Payments Analysis revealing that on average companies are paying their bills more than three weeks past the due date. The average payment period across all sectors in the September quarter was 51.6 days. (D&B Australia)
To read both stories from Australia scroll down on this page until you see same headlines
- CREDIT CRUNCH impacts pre-Christmas credit plans of Australians. Low-income and young Australians will feel the credit squeeze in particular.
To read the full story click on menu item >Press<
THE CURRENT DEVELOPMENTS ON THE TRADE CREDIT FRONT SERVE AS AN IMPERATIVE TO ATTEND THE BIIA CREDIT MANAGEMENT AND INFORMATION FORUM 2008 - JANUARY 23, 2008; MARRIOTT HOTEL HONG KONG
THE SUBPRIME MORTGAGE CREDIT CRUNCH SAGA CONTINUES AND IS IMPACTING COMMERCIAL LENDING AND TRADE CREDIT AS BANKS TIGHTEN RISK ASSESSMENT. BUSINESS AND CREDIT CONDITIONS ARE DETERIORATING IN ASIAS EXPORT DESTINATIONS
New risk factors and impact of this crisis on commercial lending, trade credit and credit information will be discussed at the BIIA Forum 2008, which will take place on January 23rd 2008 in Hong Kong. BIIA will inform about trends in credit management, the state of information infrastructures, the availability and reliability of information in Asia and Asia's primary export destinations.
Who should attend: Users of information in trade finance, commercial lending, trade credit and credit insurance as well as executives from the credit information and rating industry, government officials, regulators and members of academia.
For further information contact: Joachim C. Bartels: ieijcb@attglobal.net
or click on the banner ad >BIIA Forum 2008< on the home page of http://www.biia.com
|
|
|
|
Australia’s late payment problem continues with the latest figures in Dun & Bradstreet’s (D&B’s) quarterly Trade Payments Analysis revealing that on average companies are paying their bills more than three weeks past the due date.
The average payment period across all sectors in the September quarter was 51.6 days.
Big businesses (500+ employees) and public companies are the worst offenders, averaging 56.1 and 55.5 days respectively to pay their debts in the September quarter.
To read the full story, please click on the attachment.
For further information please contact:
Danielle Woods
D&B PR Manager
Dun & Bradstreet Australia
W: +61 2 8270 2926
http://www.dnb.com.au
|
|
|
The outlook for the New Year is set to be influenced by key decisions this month, with the impact of interest rates and the outcome of the Federal election the central concerns of business executives for the quarter ahead.
For full media release iplease click on the attachement.
The following is an overview of key findings follows:
Outlook for March quarter 2008:
Sales and profits growth expectations have fallen for the first time in four quarters
The outlook for employment growth has returned to positive territory following negative expectations for the December quarter
The capital investment outlook is negative for the first time in four quarters
Expectations for selling prices have dropped 5 per cent but remain high, with 59 per cent of firms expecting prices to be higher in the March 2008 quarter than a year earlier
Tightening Credit Market
Fifty seven per cent of executives expect the tightening credit market will have a negative impact on their business
Interest Rates
Twenty nine per cent of executives consider interest rates to be the most important influence on their business in the quarter ahead
Election Outcome
Twenty nine per cent of executives expect the outcome of the election to be the most important influence on their business in the quarter ahead
For further informaton please contact: Danielle Woods | PR Manager Australia & New Zealand
woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
Exporta's second annual Turkey Trade & Export Finance Forum in Istanbul (October 2007) was attended by over 120 delegates and received rave reviews from all participants. Dr. Selim Seval, CEO of Finar, Turkey (D&B) provided a review of available rating and credit scoring services in Turkey, which included a distribution of current Turkish Risk Ratings.
It is interesting to note that 66% of companies rated in Turkey are in the high and average risk categories, 28% of which are in the high risk quartile.
Dr. Seval also stressed the need to support SMEs in Turkey and to train SMEs in practicing good risk behavior and to become good risk managers themselves. His comments are highlighted in the attached presentation.
http://www.finar.com.tr
|
|
|
The US sub-prime crisis is a concern for India's growth outlook as several export-oriented companies may get affectod, according to international and Indian business information provider Dun & Bradstreet India.
To read more click on the file below.
http://www.econonomictimes.indiatimes.com
|
|
|
THE SUBPRIME MORTGAGE CREDIT CRUNCH STARTS TO IMPACT COMMERCIAL LENDING AND TRADE CREDIT AS BANKS TIGHTEN RISK ASSESSMENT. Central Banks are examining causes of the Subprime Mortage crisis pointing the finger at the lack of information and rating agencies.
The impact of this crisis on commercial lending, trade credit and credit information will be discussed at the BIIA Forum 2008, which will take place on January 23rd 2008 in Hong Kong. BIIA will inform about trends in credit management, the state of information infrastructures, the availability and reliability of information in Asia and Asia's primary export destinations.
Who should attend: Users of information in trade finance, commercial lending, trade credit and credit insurance as well as executives from the credit information and rating industry, government officials, regulators and members of academia.
For further information contact: Joachim C. Bartels: ieijcb@attglobal.net
|
|
|
Dun & Bradstreet’s latest Business Expectations Survey shows that the outlook for the quarter ahead is negatively affected by signs of inflationary pressure and concerns regarding interest rate rises.
A full media release is attached.
The outlook for December quarter 2007 can be summarized as follows:
Sales growth expectations have surged to the highest level in almost three years
Profits growth expectations are the best in more than two years
The outlook for capital investment and employment growth is weaker than the previous quarter
Expectations for selling prices are up 4% from the previous quarter. 62% of firms expect their prices to be higher than in the December 2006 quarter, while 4% expect them to be lower
Interest Rates
Thirty nine per cent of executives now consider interest rates to be the most important influence on their business in the quarter ahead
This is an increase of 24% since June, to the highest level of concern since December 2005
For additional information contact:
Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
The Center for Competitive Credit, an applied studies center at the Political and Economic Research Council (PERC), has released a full-length report combining results from a survey of over 1,000 Gulf Coast small business owners with extensive small business credit and profile information that details the extent of small business recovery in the areas most directly affected by hurricanes Katrina and Rita.
Click on the attachment for the full press release.
http://www.www.infopolicy.org
|
|
|
Enhancing the depth and quality of credit reporting information for millions of credit active consumers in Hong Kong, TransUnion today announced the new analytical tool bureau credit characteristics, which will help Hong Kong financial institutions and businesses in determining credit risk. The use of credit characteristics is the next analytical step for financial institutions to further maximize the benefits of both positive and negative credit information for effective portfolio management.
To read the full story click on the attachment.
http://www.transunion.com
|
|
|
Dun & Bradstreet Australia latest Business Expectations Survey
Dun & Bradstreet’s latest Business Expectations Survey finds that interest rate and petrol price concerns are dampening an otherwise positive outlook for the quarter ahead. The outlook for the December quarter is outlined below and a full media release is attached for your review:
Sales growth expectations have surged to the highest level in three years
Profits growth expectations are at their strongest level in more than two years
The outlook for capital investment is down two points but remains strong
The employment outlook is flat, with equal numbers (13%) of executives expecting an increase or decrease
Expectations for selling prices have risen 4% from the previous quarter – 63% of firms now expect prices to be higher than the December 2006 quarter
If you would like additional information, or would be interested in speaking with Dr Duncan Ironmonger, D&B’s Economic Consultant, please contact me on 02 8270 2926 / 0417 270 130.
Danielle Woods | PR Manager Australia & New Zealand
Dun & Bradstreet Australia | Level 16, 383 Kent Street, Sydney NSW 2000 |
t +61 2 8270 2926| m +61 417 270 130 | e woodsd@dnb.com.au | w http://www.dnb.com.au
|
|
|
To read the full story please click on the attachment.
For further information on FCIB-China, please contact fcib_global@fcibglobal.com.
|
|
|
Dun & Bradstreet has today released the findings of its latest study, Risk & Performance: Characteristics of Australia’s leading public & private companies, which examines the characteristics of Australia’s top 50 public and private companies as defined by annual sales. The study reveals that Australia’s top 50 public and private companies rate favourably on a measure of long term viability but differ significantly in a range of other measures. The study’s findings are outlined in the attached media release.
To obtain a copy of the report or arrange an interview with Christine Christian, CEO of D&B Australia please contact me on 02 8270 2926 / 0417 270 130.
http://www.dnb.com.au
|
|
|
On June 20 to 21, 2007 the People's Bank of China and the IFC organized a symposium on credit reporting and Retail & SME Finance.
More than 300 representatives from banks participated in a debate with international experts about latest practices and business models in risk assessment.
BIIA management presented a paper on "How Trade Credit Data Can Complement the Bankers' View of Credit History". BIIA raised the issue about the lack of bank information for general risk assessment and why banks should contribute to loan performance information for risk assessment process of trade credit. At the same time banks should use trade information in addition to financial statements to be able to monitor the credit performance of borrowers.
In essence bankers and trade credit managers have one common interest: To know the total exposure and credit performance of a client. Unfortunately very often there is a dichotomy when both parties assess credit. The banker relies on financial statements and the performance history of loans. Unfortunately the majority of banks do not us trade credit information in risk assessment. However in the US and parts of Europe banks are beginning to use trade information as an early warning system, largely because trade information is collected and processed monthly, while balance sheets are only available annually or quarterly at best.
Trade information is highly dynamic. A steady flow of trade information provides an accurate picture of how companies pay their trading liabilities. There is hardly any time lag, which is not the case with financial statements; therefore trade information is the most predictive indicator for potential business failures and payment delays. For example approximately 90% of bankrupt companies exhibited delayed, fluctuating or below industry average payment behavior. Since trade information is a lead indicator in terms of potential payment delinquencies and business failures, some scoring experts even believe that one could dispense with financial statements in terms of failure prediction.
While bankers have access to trade information by using credit information from information companies, trade credit managers have generally no access to bank information, particularly in emerging markets. Trade managers are often at a disadvantage, because in these markets there is no broad requirement to disclose financial statements. More pronounced is the information deficit on smaller firms, because they do not disclose their financial statements at all. To overcome this information deficit, trade credit managers contribute to trade information pools operated by credit information companies or to credit circles.
The issue about non co-operation of the banking sector concerning the sharing of loan performance leads to the question, why should trade managers share trade information with banks when banks do not share loan performance information with trade credit managers? Both parties have a common interest: To know about the total exposure and credit performance of a client, to more accurately assess risk and to make profitable credit decisions. Therefore they should have all the incentives in working together.
For further information please click on the attachment. The attached presentation is an English version. The Chinese version is attached to the documentation in the next heading below.
http://www.biia.com
|
|
|
This is the 4th International Credit and Risk Management conference of FCIB China. For program details please click on the attachment.
Conference Highlights:
To understand the current situation and developing trends of China's construction of a social credit system, and learn the latest developments in the China economy and credit environment.
Discuss the basic issues companies face while operating in this continually growing global market.
Hear experts from different industries share their experience of managing credit in China's changing environment.
Explore the new credit and receivable management tools, techniques and resources for achieving competitive advantages in the China market
Network with executives of multinational Chinese companies and multinational Western companies.
Venue: Shenzhen Wuzhou Guest House
6001 Shennan Road
Shenzhen 518034
China
http://www.fcibglobal.com
|
|
|
Highlights of the Indian Composite Business Optimism Index:
Composite Business Optimism Index for Q2 2007 recorded an increase of 3.4% to 201.2 from 194.6 in the previous quarter
On a y-o-y basis, the BOI recorded an increase of 13.3%.
Optimism Index for Volume of Sales for Q2 2007 stands at 90% as compared to 93% in the previous quarter
Optimism Index for Net Profits for Q2 2007 stands at 88%, indicating a decrease of 4 percentage points over the previous quarter
Optimism Index for Selling Prices for Q2 2007 stands at 54%, which is a decrease of 3 percentage points from the previous quarter
Optimism Index for New Orders for Q2 2007 stands at 90%, a decrease of 5 percentage points over the previous quarter
Optimism Index for Inventory Levels for Q2 2007 stands at 70%, a substantial increase of 20 percentage points over the previous quarter
Optimism Index for Employees for Q2 2007 stands at 71% as compared to 62% in the previous quarter
Mumbai, April 18, 2007:Dun & Bradstreet India today released its Business Optimism Index (BOI) for India for the period Apr-Jun (Q2) 2007. The Business Expectations Survey for Q2 2007 was conducted in the month of March, at a time when the Indian economy was looking optimistic, despite a trend of rising inflation and an appreciating rupee. The Survey for Q2 2007 reveals that business confidence has increased as compared to Q1 2007, albeit at a lower rate as compared with the observed growth the preceding two quarters.
The Composite Business Optimism Index for Q2 2007 recorded an increase of 3.4% to 201.2 from 194.6 in the previous quarter. On a y-o-y basis, the BOI recorded an increase of 13.3%. Four of the six optimism indices, namely volume of sales, net profits, selling prices and new orders have decreased as compared to the previous quarter.
Demand conditions are expected to remain strong in Q2 2007 with approximately 91% of the respondents expecting sales volumes to increase. While 8% of respondents expect sales conditions to remain stagnant during the quarter under review, a marginal 1% expect a decline in sales. The resultant Optimism Index for Volume of Sales for Q2 2007 stands at 90% as compared to 93% in the previous quarter
About 89% of the respondents expect an increase in profitability, while just 1% anticipate a decline in profits during the forthcoming quarter. The resultant Optimism Index for Net Profits for Q2 2007 stands at 88%, indicating a decrease of 4 percentage points over the previous quarter.
Approximately 57% of the respondents anticipate selling prices to go up during the forthcoming quarter, while 3% expect prices to decline. The resultant Optimism Index for Selling Prices for Q2 2007 stands at 54%, which is a decrease of 3 percentage points from the previous quarter.
About 92% of the respondents expect their order book position to improve, while only 2% anticipate a decline in the number of orders. The resultant Optimism Index for New Orders for Q2 2007 stands at 90%, a decrease of 5 percentage points over the previous quarter.
About 74% of the respondents intend to increase their inventory levels while about 4% expect to witness a decline in stock levels during the Apr-Jun 07 quarter. The resultant Optimism Index for Inventory Levels for Q2 2007 stands at 70%, a substantial increase of 20 percentage points over the previous quarter. The capital goods sector, in particular, is highly optimistic on this parameter.
Also, about 73% of the respondents anticipate an increase in the size of their staff, while a marginal 2% of the respondents expect a decline in the number of employees. The resultant Optimism Index for Employees for Q2 2007 stands at 71% as compared to 62% in the previous quarter.
“The survey, conducted at a time when the RBI anno unced a rate hike, reveals a slight dampening of business sentiment over the previous quarter”, said Kaushal Sampat, Chief Operating Officer, Dun & Bradstreet – India. “On a year-on-year basis, business confidence continues to remain high. Going forward, the monetary policy stance of the central bank will play a key role in determining business expectations.”
About the D&B Optimism Index
The D&B Optimism Index is widely recognised as an indicator, which measures the pulse of the business community and serves as a reliable benchmark for investors. The index is arrived at on the basis of a quarterly survey of business expectations.
The survey is conducted on a sample of companies that are selected randomly from D&B’s commercial credit file. The sample selected is a microcosmic representation of the country’s business community and includes companies from several sectors including basic goods, capital goods, intermediate goods, consumer durables, consumer non-durables and service sectors. Respondents to the survey are asked six standard questions regarding whether specified parameters viz., net sales, net profits, selling prices, new orders, inventories and employee levels, will register an increase, decline or show no change in the ensuing quarter as compared to the corresponding quarter of the previous year. The indices are then calculated by subtracting the percentage of respondents expecting decreases from those expecting increases.
For calculating the Composite Business Optimism Index, each of the six parameters is assigned a weight. The positive responses for every parameter for the period under review are expressed as a proportion of positive responses in the base period (Q2 1999). The parameter weights are then applied to these ratios and the results aggregated to arrive at the Composite Business Optimism Index
Contact: Metabelle Lobo
LoboM@mail.dnb.co.in
URL : http://www.dnb.co.in
|
|
|
|
The pressure on Australian businesses continues as Trade Payment periods increase to levels close to 26 days above the standard 30 day payment term. The latest figures in the Dun & Bradstreet Trade Payments Analysis reveal that the average trade payment period in the March quarter across all industries increased by 2.2 days from the December quarter to almost 56 days.
According to Christine Christian, D&B Australasia CEO, the latest results counteract the positive improvements made in the previous quarter. “The December quarter saw a decrease in trade payment periods which was a positive sign for business, but the results from the March quarter offset any impact that would have flowed through to business owners.
“Businesses are already facing tough conditions, with inflation remaining in the economy and the constant threat of another interest rate rise. The additional burden of cash flow problems created by late business-to-business trade payments will place additional pressure on business and may result in an increase in company insolvencies, particularly in the SME market,” said Ms Christian.
http://www.dnb.com.au
Danielle Woods
Hill & Knowlton
W: +61 2 9286 1258
M: +61 417 270 130
|
|
|
Germany is on its way to become a role model for electronic Public Sector Information availability and compliance through new initiatives taken by the Ministry of Justice and the Bundesanzeiger Verlag, publisher of the official Federal Gazette. The focus is on migrating traditional printed content into electronic format deliverable in various forms over the Internet.
Transparency has always taken a back seat in Germany as businesses were notoriously non-compliant in filing balance sheets. This is about to change. The intent of the Justice Ministry to enforce compliance in the filing of financial statements will eventually help to overcome negative attitudes towards disclosure, mandatory and voluntary. Thus the rigorous enforcement of compliance will be a significant step towards greater transparency in Germany.
In the case of Germany the primary sources for public sector information was the print based Federal Gazette and value added information providers had to contact registers, which were dispersed to more than 400 localities. Therefore, the recent initiatives to migrate from print to a centralized system to deliver structured register data is a significant improvement in public sector information availability. Furthermore, the creation of an electronic database of structured financial statements and the ease of integrating such data in end-users systems can be regarded as a major milestone in public sector user friendliness and a significant improvement in transparency. Essentially the BDS is a public sector utility for transporting legal and register information to end-users. It is seeking partnerships to augment public data with value added data. It is also seeking partnerships with resellers, data aggregators and value added information providers.
To read the full story, please click on the attachment
Prepared by BIIA - Business Information Industry Association Asia Pacific – Middle East Ltd, Hong Kong as part of its ongoing program to inform users of information, governments, regulators, members and the general public about the value of information in business decisions.
For further information contact Joachim C. Bartels info@biia.com
|
|
|
SINGAPORE 2007-04-13: 3RD CREDIT BUREAU CONFERENCE:
Navigating Globalization: The Opportunities, Risks and Challenges
D&B Singapore and ASME, The Association of Small and Medium Size Enterprises, held a 3rd SME Credit Bureau Conference on April 13, 2007 at the Raffles Convention Center in Singapore. The conference aims were to equip local SMEs with the tools and resources they need for business readiness and for minimizing the risk of globalization. Attendees heard from a panel of experts as they discussed case studies and share success stories on key issues in globalization – the opportunities, risks and challenges. The globalization theme for this year’s SME Credit Bureau conference reinforced the government’s call for SMEs to venture abroad for sustained growth in the long term and aims to give SMEs a leg up in penetrating international markets.
During the conference D&B Singapore launched a publication: “The Top 1000 Performing Companies in Asia Pacific”. The publication, which ranks the top 1,000 companies in 12 countries based on their ROE, serves as a basis to benchmark your profitability metrics and to develop a strategy to achieve overall efficiency in utilizing the funds invested by investors / shareholders. In addition the conference organizers presented awards to the top 10 best performing companies in Singapore.
In her opening speech, Mrs. Lim Hwee Hua, Minister of State for Finance and Transport stressed the fact that the Singapore SME community is a key pillar of the local economy. It contributes 42% of our GDP, and employs more than half of Singapore’s workforce. SMEs are generally doing well. As a group, the top 500 SMEs here have increased total turnover by 30% to $13.5 billion and almost doubled net profits to $630 million over the past 5 years. SMEs, however, face strong challenges, in the context of an increasingly globalised economy. While the rapid growth of trade links and the increase in global financial integration have provided greater opportunities, this has also widened the field of competition for all businesses. To stay competitive, SMEs have to keep up with innovation and technology changes; they also have to develop capabilities to expand into overseas markets. Minister Lim Hwee Hua cited several key initiatives which are designed to better enable SMEs to launch and grow their business in Singapore. These initiatives to include: improving access to financing for SMEs; creating a business-friendly tax regime; tapping on business ideas from abroad; and providing broad support for businesses.
The Singapore SME Credit Bureau is one of the most advanced business models for serving the needs of SMEs.
To read the full speech, please click on the attachment: OPENING REMARKS
Sources: http://www.dnb.com.sg – http://www.asme.org.sg
|
|
|
THE OUTLOOK FOR THE JUNE QUARTER IS SET TO REMAIN UNCERTAIN
According to D&B Australia’s latest business expectation survey, the outlook for the June quarter is set to remain uncertain despite a decision by the Reserve Bank (RBA) to keep interest rates on hold for the fourth straight time.
A full media release is attached. The key findings are as follows:
• 62% of business executives expect selling prices to be higher in the June quarter than the corresponding quarter in 2006
• Expectations for growth in profits have improved but remain in negative territory
• Growth in sales is predicted for the first time in four quarters
• The influence of fuel prices on business operations continues to be significant despite a decrease of 14% since January (now at 50%)
• Almost one third (30%) of firms surveyed have been negatively impacted by the one quarter per cent increases in interest rates in May, August and November, up from 22% in the February survey
• The drought has had a negative impact on almost one third (29%) of firms surveyed, up 3% from February but down 4% since January
For further information contact:
Danielle Woods
Manager
Hill & Knowlton Sydney
t: +61 (2) 9286 1258
m: +61 0417 270 130
f: +61 (2) 9268 024
dwoods@hillandknowlton.com.au
April 9, 2007
|
|
|
BIIA INFORMS CREDIT MANAGEMENT
As part of an ongoing dialog with major users, BIIA debates on a regular basis with FCIB members important issues concerning the availability, reliability and timeliness of credit information.
Business intelligence is important during every phase of establishing and maintaining a relationship, especially when that relationship includes a cross-border party and the transaction takes place in another country.
Emerging market countries are developing business intelligence networks that are making the process of gathering information easier. However, it takes experience to tap into the right network and assess the available information for transparency, limits and applicability. In terms of the effectiveness of information to be used in investment and credit decisions one has to consider the state of information in the respective markets which are under scrutiny.
There are five key factors that drive information availability: Public sector information, mandatory disclosure, regulatory framework, access to bank information and trade information are considered to be the most critical success factors for providing accurate, reliable and timely credit information. All of these factors are outside the control of an information supplier. While decision makers demand uniform decision support and information services across the globe, credit information and rating services levels are still asymmetric due to a fragmented information industry, underdeveloped public sector information, lack of access to bank information and negative attitudes towards mandatory and voluntary disclosure.
“Imperfect information makes imperfect markets”, is an often quoted comment by Joseph Stiglitz, the former Chief Economist of the World Bank. In many emerging market countries we are faced with the dilemma of ‘Imperfect Information’, notwithstanding the advances made in information technology (ICT) and the Internet. The attached presentation illustrates current conditions concerning business intelligence, investment and credit information, trends and what needs to be done to overcome ‘Imperfect Information’.
Joachim C. Bartels is Managing Director of BIIA – Business Information Industry Association Asia Pacific – Middle East Ltd. He can be reached at ieijcb@attglobal.net
FCIB is an association of executives in Finance, Credit and International Business http://www.fcibglobal.com
http://www.biia.com
|
|
|
www.dnbcountryrisk.com
|
|
|
Source: http://www.dnbcountryrisk.com
|
|
|
MARCH 2007 D&B AUSTRALIAN BUSINESS EXPECTATIONS SURVEY
Key Findings of the D&B Australian Business Expectation Survey:
64% of business executives expect selling prices to be higher in the June quarter than the corresponding quarter in 2006
Despite improvements, expectations for growth in profits remains in negative territory
Business executives are predicting growth in sales for the first time in four quarters
More than one quarter (26%) of firms surveyed indicated that the drought had negatively impacted business operations, a decrease of 7% since January
22% of firms surveyed have been negatively impacted by the one quarter per cent increases in interest rates in May, August and November
The influence of fuel prices on business operations continues to be significant despite a decrease of 11% since January (now at 53%
Recent falls in petrol prices have positively impacted 19% of firms, this is an increase of 2% from January but is down from 51% and 31% in November and December respectively
Danielle Woods
Manager
Hill & Knowlton Sydney
t: +61 (2) 9286 1258
m: +61 0417 270 130
f: +61 (2) 9268 024
dwoods@hillandknowlton.com.au
|
|
|
Since the BIIA Shanghai Forum 2005 the BIIA has begun to mobilize allies such as the World Bank, the United Nations Conference on Trade and Development (UNCTAD), credit management circles such as the FCIB* and others to create awareness in government institutions about the need for improvement in public sector information services. BIIA is seeking funding for a study which compares different public sector institutions and their impact on national economies. The purpose of the study is to prompt governments into action and to create opportunities for public sector / private sector information partnerships.
For further information contact Joachim C. Bartels ieijcb@attglobal.net
* FCIB = An Association for Finance, Credit and International Business http://www.fcibglobal.com
|
|
|
|
