Monday, 02 April 2012
PINNACLE AIRLINES CORP.
MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
Company name
PINNACLE AIRLINES CORP.
Identification number If you want to know more, ASKMORE modeFinance’s credit report.
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United States of America
ZIP code and city
38132 - MEMPHIS
Address
Suite 111 +1 901 348 4100 www.pncl.com
Legal form Account
Consolidated
Incorporation date
2003
NACE 2 Sector
5110 - Passenger air transport
TM
ASKMORE is the modeFinance product which gives the chance to evaluate the credit risk for every company from all around the world.
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Country
Listed Status
Active
MORE Credit limit
3,500,000 e
plans 3 types of reports:
Turnover (th e)
31/12/2010
31/12/2009
31/12/2008
763,534
586,914
621,388
Rating s-peek
Plus
Basic TM
ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making. It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis. This report type is ideally suited for decisions on transactions with each level of credit risk.
B
B
CCC
Probability of default
3.80%
3.80%
16.00%
Confidence Level
100%
100%
100%
11.54
11.61
19.23
1.09
1.09
1.05
Current Ratio
0.83
1.14
0.98
Quick Ratio
0.69
1.03
0.88
TM
Solvency ratios Leverage ratio Total asset/Total liabilities Liquidity ratios
Profitability and economic equilibrium ratios Return on investement ROI (%)
4.12
6.75
3.19
10.69
40.94
-19.73
Asset turnover
0.68
0.66
0.77
Interest paid weight
0.66
0.52
1.24
Gross Profit/Operating revenue
0.23
0.25
0.24
1.51
1.80
1.02
Return on equity ROE (%)
Interest Coverage ratios EBIT interest coverage ratio
Analysis and trend of financial strength
modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM
key askMORETM is a registered mark of modeFinanceTM
MORE Credit Rating
D not available
non return
C
CC
extremly pathological pathological
CCC
B
BB
BBB
A
AA
AAA
high danger
weak
sufficient
adequate
good
very strong
extremely strong
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Sector Analysis Company
Healthy
Balanced
Vulnerable
Risky
Solvency ratios Leverage ratio
11.54
0.54
2.59
4.35
-2.31
Total asset/Total liabilities
1.09
2.85
1.39
1.15
0.89
Current Ratio
0.83
2.35
1.14
0.99
0.65
Quick Ratio
0.69
1.96
1.05
0.85
0.56
Return on investement ROI (%)
4.12
18.34
6.97
0.26
-15.69
Return on equity ROE (%)
10.69
21.21
10.10
-4.02
-100.70
Asset turnover
0.68
1.99
1.24
1.48
1.84
Interest paid weight
0.66
0.00
0.17
0.02
-0.06
Gross Profit/Operating revenue
0.23
0.20
0.20
0.09
0.02
1.51
391.30
5.07
0.05
-11.25
Liquidity ratios
Profitability and economic equilibrium ratios
Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days) Days Sales Of Inventory (DIO)
12
12
9
10
8
Days Sales Outstanding (DSO)
14
31
32
28
34
Days Payable Outstanding (DPO)
16
15
29
27
45
Cash Conversion Cycle (DIO + DSO - DPO)
10
19
15
6
-5
-
83
249
171
108
B
A
BB
B
C
Numer of analyzed companies (Average) Rating
The sector has been chosen according to: international companies in the sector NACE 2 5110 with financial data of year 2010.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Sector Analysis - Graphs
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
Balance Sheet BALANCE SHEET (th e)
31/12/2010
31/12/2009
31/12/2008
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.748
0.69416
0.71855
1,121,101
895,057
810,306
968,558
753,869
681,268
33,352
21,524
23,717
Tangible fixed assets
699,483
507,478
517,304
Other fixed assets
235,723
224,867
140,247
152,543
141,188
129,038
Stocks
25,578
13,517
12,291
Debtors
29,472
23,961
22,720
Other current assets
97,493
103,711
94,027
74,863
63,567
49,917
89,381
70,968
40,047
173
158
162
89,208
70,810
39,886
Exchange rate USD - EUR Total assets Fixed assets Intangible fixed assets
Current assets
Cash & cash equivalent Shareholders funds Capital Other shareholders funds Total liabilities
1,031,720
824,089
770,258
Non current liabilities
847,458
700,538
637,923
Long term debt
496,889
360,429
431,432
Other non-current liabilities
350,569
340,110
206,491
Current liabilities
184,262
123,551
132,335
Loans
57,998
27,245
26,741
Creditors
33,203
16,872
21,866
Other current liabilities
93,061
79,434
83,728
1,121,101
895,057
810,306
31/12/2010
31/12/2009
31/12/2008
Total shareh. funds & liab. NET DEBT (th e) Short term debts
57,998
27,245
26,741
Long term debt
496,889
360,429
431,432
Cash & cash equivalent Net debt
74,863
63,567
49,917
480,024
324,107
408,257
31/12/2010 Working capital Net Current Assets
31/12/2009
31/12/2008
21,847
20,605
13,145
-31,720
17,638
-3,297
31/12/2010
31/12/2009
31/12/2008
Days Sales Of Inventory (DIO)
12
8
7
Days Sales Outstanding (DSO)
14
15
13
Days Payable Outstanding (DPO)
16
10
13
Cash Conversion Cycle (DIO + DSO - DPO)
10
13
7
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
Income Statement INCOME STATEMENT (th e)
31/12/2010
31/12/2009
31/12/2008
Accounting practice
Local GAAP
Local GAAP
Local GAAP
0.748
0.69416
0.71855
751,363
580,486
614,830
29.4
-5.6
-
12,171
6,427
6,557
Operating revenue / turnover
763,534
586,914
621,388
Total operating costs
717,507
530,889
588,617
Costs growth (%)
35
-10
-
Service costs
-
-
-
Material costs
-
-
-
Costs of employees
-
-
-
EBITDA
75,309
81,971
61,560
Depreciation
29,282
25,947
28,789
Exchange rate USD - EUR Sales Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized
EBIT Financial P/L
46,027
56,025
32,771
-30,406
-26,705
-38,942
Financial revenue
1,378
4,043
-7,135
Financial expenses
31,784
30,748
31,807
30,527
31,141
32,009
15,620
29,320
-6,172
-
-
-
Extr. and other revenue
-
-
-
Extr. and other expenses
-
-
-
-
-
-
Taxation
6,069
265
1,730
P/L for period
9,552
29,055
-7,902
Interest paid P/L before tax Extr. and other P/L
P/L before tax + Extr. and other P/L
31/12/2010
31/12/2009
31/12/2008
Costs of Good Sold
584,344
437,252
473,597
Gross Profit
179,190
149,661
147,791
Other Operating Expenses
133,163
93,637
115,020
31/12/2010
31/12/2009
31/12/2008
38,834
55,001
20,887
-
-
-
Cash flow Added value
31/12/2010 Number of employees
7,619
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
31/12/2009 5,106
31/12/2008 4,204
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
key
Evolutions and trends
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
AA AAA
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Qualitative information Full overview
Pinnacle Airlines Corporation is an airline holding company primarily engaged in the management and administration of its subsidiaries. It is publicly - held and trades on the NASDAQ under the symbol PNCL. The company’s corporate headquarters is located in Memphis, Tennessee in the United States of America. As a holding company, Pinnacle Airlines Corporation provides group planning and strategy. In particular, the company also exercises financial control over its subsidiaries, settles their general policy and appoints their top managements, and as well as provides central services. Pinnacle Airlines Corporation operates through its two wholly owned subsidiaries: Pinnacle Airlines Inc. and Colgan Air Inc. Pinnacle Airlines Inc., the jet - based operating subsidiary of Pinnacle Airlines Corporation. Pinnacle Airlines Inc., operates as Northwest Airlink, flies more than 700 daily Northwest Airlink flights to more than 100 cities in the United States and Canada on its modern fleet of 139 Canadair Regional Jets. Colgan Air Inc. operates 39 Saab 340 and 11 Beech 1900 regional airliners and operates more than 350 daily flights. Colgan Air is affiliated with three major airlines and operates as Continental Connection, United Express and US Airways Express. The company’s subsidiaries operate as independent entities with separate missions. Each day, the company’s operating units flies more than 1,000 daily flights, transporting in excess of 27,000 customers to 134 cities and towns in North America.
History
Not available.
Primary business line
Airline holding company primarily engaged in the management and administration of its subsidiaries.
Secondary business line
Not available.
Main activity
Services.
Secondary activity
Not available.
Main products and services
Not available.
Size estimate
Not available.
Strategy, organization and policy
Not available.
Strategic alliances
Not available.
Membership of a network
Not available.
Main brand names
Not available.
Main domestic country
United States Of America.
Main foreign countries or regions
Not available.
Main production sites
Not available.
Main distribution sites
Not available.
Main sales representation sites
Not available.
Main customers
Not available.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Auditor/Advisor/Bank name
type
address
ERNST & YOUNG LLP
Auditor
-
Computershare Investor Services
Transfer Agent
-
Board name
date of birth
nationality
function
Ms Susan M Coughlin Mr Ian Massey Mr James E Mcgehee Mr Sean E Menke
-
-
Independent Director Independent Director Independent Director President, Chief Executive Officer, Director
Mr Thomas S Schreier Mrs R. Philip Shannon Mr Alfred T Spain Mr Nicholas R Tomassetti
-
-
Independent Director Independent Director Independent Director Independent Director
Sharehoders (the first twenty shareholders ordered by Direct %)) Rating:
MOHNISH PABRAI Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
15.26 -
Total Assets (MIL $) Number of Employees Information date
Total % Address: Not available
US 14.64
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
3,591 41,050
Information date
2011/09
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
2009/03
Rating:
FMR LLC via its funds Country ISO code NACE Rev. 2, Core code Direct %
-
Operating revenue (MIL $)
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
DALAL STREET, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
US 10.37
Information date
Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US -
Operating revenue (MIL $) Total Assets (MIL $)
Rating:
172 7,976 548 2011/09
-
8.39 -
Number of Employees Information date
US 4.50
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US
Operating revenue (MIL $)
2009/03
Rating:
DIMENSIONAL FUND ADVISORS LP via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
D
US 8.56
APOLLO CAPITAL MANAGEMENT LP
5 2 2011/09
Rating:
APOLLO GLOBAL MANAGEMENT LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
A 37 2,187 260 2011/09
Address: Not available
Rating:
CATALYST CAPITAL ADVISORS LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
3.94
Total Assets (MIL $) Number of Employees Information date
Total % Address: Not available
US -
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
2,018 1,830 9,500
2.82
Information date
2011/12
Rating:
BB
US 2.49
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
9,081 179,896 10,100 2011/09
BLACKROCK, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
0 2 2011/09
Rating:
VANGUARD GROUP, INC. THE via its funds Country ISO code NACE Rev. 2, Core code Direct %
-
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
MESON CAPITAL PARTNERS LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
US 2.09
Information date
US 1.82
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
2012/01
-
THE INDEPENDENT ORDER OF FORESTERS via its funds
Rating:
Country ISO code NACE Rev. 2, Core code
Operating revenue (MIL $) Total Assets (MIL $)
Direct % Total % Address: Not available
-
Rating:
RENAISSANCE TECHNOLOGIES LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
CA 0.67
1,245 948 42 2011/12
-
Number of Employees Information date
2011/09
BRIDGEWAY CAPITAL MANAGEMENT INC via its funds
Rating:
Country ISO code NACE Rev. 2, Core code Direct % Total %
US 0.56
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US
Operating revenue (MIL $)
2011/09
Address: Not available
Rating:
RBF CAPITAL, LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
0.42
Total % Address: Not available
3 2011/09
Rating: US -
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
0.34
Information date
US 0.34
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
79,635 1,873,878 266,000 2011/09
Rating:
WHITEBOX ADVISORS LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
0
Total Assets (MIL $) Number of Employees Information date
CITIGROUP INC via its funds Country ISO code NACE Rev. 2, Core code Direct %
-
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
-
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
6 84 2011/09
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating:
WILLIAMS FINANCIAL GROUP, INC via its funds Country ISO code NACE Rev. 2, Core code Direct %
US -
Total % Address: Not available
0.33
Information date
US 0.31
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US -
Operating revenue (MIL $) Total Assets (MIL $)
Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
0 2 2011/12
-
0.24
Number of Employees Information date
US 0.22
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
1 10 2011/12
Rating:
CHARLES SCHWAB CORPORATION via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %
-
Rating:
SPARK LP via its funds
1 5 2011/09
Rating:
GEODE CAPITAL MANAGEMENT, LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address: Not available
-
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees
4,740 108,553 14,100 2011/12
Address: Not available
Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:
MESABA AVIATION, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
US MO -
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
95 1,300 2011/04
Rating:
BB
Operating revenue (MIL $) Total Assets (MIL $) Number of Employees Information date
846 1,289 54 2011/07
Rating:
COLGAN AIR, INC. Country ISO code NACE Rev. 2, Core code Direct % Total % PINNACLE AIRLINES, INC. Country ISO code NACE Rev. 2, Core code Direct % Total %
-
US 100.00 100.00
US MO -
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
292 3,700 2010/07 -
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
ASKMORE rating guide General vision
A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors. The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements. The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm. The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge. The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating. This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Rating scale Rating class
Rating macro class
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
AAA
AA
Assessment
economic and financial flow and fund equilibrium. Healthy
The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight. The company has a high solvency. The company is however more susceptible to the adverse effects of changes in
A
circumstances and economic conditions than companies in higher rated categories. Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.
BBB Balanced
A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.
BB
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
B
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments. Vulnerable
CCC
A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.
CC
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase. Risky
C
The company shows considerable pathological situations. commitments is very low.
D
The company has not any longer the capacity to meet its financial commitments.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
The company’s capacity to meet its financial
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Fundamental Credit Rating Ratios Analysis area
Ratio
Assessment This measures the level of total liabilities of the company in comparison
Leverage ratio
with equity.
Solvency ratios
Financial ratios
Assets to debt
This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.
Fixed Assets coverage ratio
This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.
Current ratio
This measures whether a company has sufficient short-term assets to cover its short-term liabilities.
Liquidity ratios This compares current liabilities only to those assets that can be readily
Quick ratio
turned into cash.
Return on Investement(ROI)
This measures the profitability of company investments without regard to the way the investment is financed.
Return on Equity(ROE)
This measures the profitability of the equity.
Asset turnover
This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.
Profit margin
This indicates the profitability of sales.
Interest Paid coverage
This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.
Profitability and economic ratios
Interest coverage ratio
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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit
MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:
• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).
The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.
Probability of default e Confidence Level
In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default. As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default. The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:
Confidence =
P Available Information P Total Information
The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company. For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741
PINNACLE AIRLINES CORP.
Monday, 02 April 2012 MORE Credit Rating
D
C
CC CCC
B
BB BBB
A
AA AAA
key
Notes and disclaimer NOTES
modeFinance has based the present analysis on the company available financial statements, coming from one or more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s database etc.
DISCLAIMER
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
Contacts
Info web
modeFinance MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com
Phone
+39 040 3755337
Company Products Where
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741