TCRAP_Public/080605.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

            Thursday, June 5, 2008, Vol. 11, No. 111

                            Headlines

A U S T R A L I A

ASSOCIATED INVESTMENTS: Appoints New Liquidators
BUNDALE PTY: Liquidator Gives Wind-Up Report
CAPRICE DEVELOPMENTS: Liquidator Presents Wind-Up Report
DASCOM (RHQ): Liquidator Presents Wind-Up Report
EDWARDS RESTAURANT: Liquidator Presents Wind-Up Report

EMERALD HAULAGE: Liquidator Presents Wind-Up Report
G R & PL HOLDINGS: Liquidator Presents Wind-Up Report
G R & P L HOLDINGS: Declares Dividend for Creditors
GASHLEY PTY: Declares Dividend for Creditors
MCG ENTERPRISES: Placed Under Voluntary Liquidation

MATCRETE PTY: Appoints New Liquidators
MOBIUS NCM-04 TRUST: S&P Puts 2 Low-B Ratings on Negative Watch
MONTESSORI PRIMARY: Appoints Bettles and Carter as Liquidators
POWER TRANSMISSION: Declares Dividend for Creditors
SCARGLEN PTY: Appoints Peter Anthony Lucas as Liquidator


C H I N A

CHINA EASTERN: To Cut Back Flights on Loss-Making Int'l Routes
CHINA MERCHANTS: Moody's Affirms D+ BFSR on Acquisition of WLB
CHINA SOUTHERN: To Suspend Eight Int'l Flights This Month
CHINA SOUTHERN: Proposes Issue of RMB1.5 Bil. Medium Term Notes
WING LUNG: Moody's Holds C+ BRSR on China Merchant's Acquisition


H O N G  K O N G

ASIA TELEMEDIA: Members & Creditors to Meet on June 6
FLYING DRAGON Members & Creditors to Meet on June 6
MODERN FUND: Members & Creditors to Meet on June 27
NOBLE HOPE: Members & Creditors to Meet on June 27


I N D I A

BSL LTD: CARE Assigns ‘PR4’ & ‘BB+’ Bank Loan Ratings
ICICI BANK: Fixes Book Closure for Dividend & AGM
PUNJAB STATE: CARE Assigns ‘BB+’ Bank Loan Rating
SAHARA INDIA: RBI Bars Firm from Accepting Deposits
VEDANTA RESOURCES: India Unit Inks $2.6 Bil. Deal With ASARCO

VEDANTA RESOURCES: Asarco Deal Cues Moody's to Hold Ba1 Rating
* INDIA: Growth Slowed to 8.5% in 4th Qtr 2007
* Moody's Reports: Indian Banking System Challenges Remain


I N D O N E S I A

PT LIPPO BANK: S&P Upgrades Counterparty Credit Ratings to BB-/B


J A P A N

ASAHI MUTUAL: Puts Two Officials in New Positions
CAPCOM CO: To Distribute Bonus Dividends
CAPCOM CO: Acquires Osaka-Based Company Through Stock Swap
SHINGINKO TOKYO: Plans to Cut JPY101.6 Bil. Cumulative Losses


K O R E A

HYUNDAI MOTOR: U.S. Unit Reports 6% Sales Increase in May
HYUNDAI MOTOR: Canada Unit's May Sales Highest in 25 Years


M A L A Y S I A

LIQUA HEALTH: Names Encik Kamarul Arifin Bin Ahmad as President
LIQUA HEALTH: To Hold Seventh Annual Meeting on June 26
MERGE ENERGY: To Hold 11th Annual Meeting on June 26
SELOGA HOLDINGS: To Hold 12th Annual Meeting on June 23

SYARIKAT KAYU: Names Hoe Thean Sun as Member of Audit Committee
TECHVENTURE BERHAD: To Hold 15th Annual Meeting on June 26
WEMBLEY INDUSTRIES: To Hold 32nd Annual Meeting on June 26


N E W  Z E A L A N D

AIR NEW ZEALAND: Targets 10% Annual Fuel Use by 2013
B.K & F.S: Claims Filing Deadline is June 16
CARROLL LOGGING: Creditors Have Until June 27 to File Claims
EIGHT WALLACE: Court Sets June 27 Liquidation Hearing
JOSEPH PRODUCTIONS: Liquidation Hearing Set on June 27

PHOENIX PARK: Liquidator Sets June 20 Claims Bar Date
SEALEGS CORP: Posts NZ$1.7MM Deficit for Year Ended March 31


P H I L I P P I N E S

MANILA ELECTRIC: Tags GSIS' Accusation as 'Irresponsible'
* S&P Affirms Philippines' B Short-Term Currency Ratings


T A I W A N

CHANG HWA BANK: Moody's Changes Outlook on D BFSR to Stable
TAISHIN FINANCIAL: Moody's Holds Unit's D+ BFSR; Outlook Stable


V I E T N A M

ASIA COMMERCIAL: Moody's Changes Outlook to Negative
BANK FOR INVESTMENT: Moody's Changes Outlook to Negative
VIETNAM TECHNOLOGICAL: Moody's Changes Outlook to Negative
* Moody's Changes Vietnam's Ba3 Rating Outlook to Negative


                         - - - - -


=================
A U S T R A L I A
=================

ASSOCIATED INVESTMENTS: Appoints New Liquidators
------------------------------------------------
During a meeting held on April 7, 2008, the members of
Associated Investments (Queensland) Pty Ltd. resolved to
voluntarily liquidate the company's business.

Peter Dinoris was appointed as liquidator.

The Liquidator can be reached at:

          Peter Dinoris
          Vincents Chartered Accountants
          Level 27, 239 George Street
          Brisbane QLD 4000
          Australia
          Telephone: (07) 3854 4555
          Facsimile: (07) 3236 2452
          Web site: www.vincents.com.au


BUNDALE PTY: Liquidator Gives Wind-Up Report
--------------------------------------------
Bundale Pty. Ltd. held a final meeting for its members and
creditors on May 16, 2008. At the meeting, the company's
liquidator, I. A. Currie at Currie Biazos Insolvency
Accountants, provided the attendees with property disposal and
winding-up reports.

The liquidator can be reached at:

          I. A. Currie
          Currie Biazos Insolvency Accountants
          Level 5
          99 Creek Street
          Brisbane, Queensland
          Australia


CAPRICE DEVELOPMENTS: Liquidator Presents Wind-Up Report
--------------------------------------------------------
Caprice Developments Pty. Ltd. held a meeting for its members
and creditors on May 9, 2008. At the meeting, the company's
liquidator, Jason Bettles at Worrells Solvency & Forensic
Accountants, provided the attendees with property disposal and
winding-up reports.

The liquidator can be reached at:

          Worrells Solvency & Forensic Accountants
          Level 6, 50 Cavill Avenue
          Surfers Paradise Qld 4217
          Australia
          Web site: www.worrells.net.au


DASCOM (RHQ): Liquidator Presents Wind-Up Report
------------------------------------------------
Morgan Lane, Dascom (RHQ) Pty. Ltd.'s estate liquidator, met
with the company's members on May 13, 2008, and provided them
with property disposal and winding-up reports.

The liquidator can be reached at:

          Morgan Lane
          Worrells Solvency & Forensic Accountants
          8th Floor
          102 Adelaide Street
          Brisbane Qld 4000
          Australia


EDWARDS RESTAURANT: Liquidator Presents Wind-Up Report
------------------------------------------------------
Morgan Lane, Edwards Restaurant Pty. Ltd.'s estate liquidator,
met with the company's members on May 12, 2008, and provided
them with property disposal and winding-up reports.

The liquidator can be reached at:

          Morgan Lane
          Worrells Solvency & Forensic Accountants
          8th Floor
          102 Adelaide Street
          Brisbane Qld 4000
          Australia


EMERALD HAULAGE: Liquidator Presents Wind-Up Report
---------------------------------------------------
Morgan Lane, Emerald Haulage Queensland Pty. Ltd.'s estate
liquidator, met with the company's members on May 9, 2008, and
provided them with property disposal and winding-up reports.

The liquidator can be reached at:

          Morgan Lane
          Worrells Solvency & Forensic Accountants
          8th Floor
          102 Adelaide Street
          Brisbane Qld 4000
          Australia


G R & PL HOLDINGS: Liquidator Presents Wind-Up Report
-----------------------------------------------------
Ian Richard Hall, G R & PL Holdings Pty. Ltd.'s estate
liquidator, met with the company's members on May 19, 2008, and
provided them with property disposal and winding-up reports.

The liquidator can be reached at:

          Ian Richard Hall
          PricewaterhouseCoopers
          Riverside Centre
          123 Eagle Street
          Brisbane QLD 4001
          Australia


G R & P L HOLDINGS: Declares Dividend for Creditors
---------------------------------------------------
G R & P L Holdings Pty Ltd, which is in liquidation, declared
its dividend for its creditors.

Only creditors who were able to file their proof of debt by
May 6, 2008, were included in the company's dividend
distribution.

The company's liquidator is:

          Ian Richard Hall
          PricewaterhouseCoopers
          Riverside Centre
          123 Eagle Street
          Brisbane QLD 4001
          Australia


GASHLEY PTY: Declares Dividend for Creditors
--------------------------------------------
Gashley Pty Ltd, which is in liquidation, declared its dividend
for its creditors.

Only creditors who were able to file their proof of debt by
May 9, 2008, were included in the company's dividend
distribution.

The company's liquidators are:

          Terry Grant Van Der Velde
          Paul Desmond Sweeney
          SV Partners
          SV House, 138 Mary Street
          Brisbane QLD 4000
          Australia


MCG ENTERPRISES: Placed Under Voluntary Liquidation
---------------------------------------------------
MCG Enterprises (FNQ) Pty. Ltd.'s members agreed on April 4,
2008, to voluntarily liquidate the company's business.  Gerry
Mier and Tony Jonsson were appointed to facilitate the sale of
its assets.

The liquidators can be reached at:

          Tony Jonsson
          KPMG
          Level 13, Cairns Corporate Tower
          15 Lake Street
          Cairns QLD 4870
          Australia
          Telephone: (07) 4046 8888


MATCRETE PTY: Appoints New Liquidators
--------------------------------------
Matcrete Pty. Ltd.'s members agreed on March 28, 2008, to
voluntarily liquidate the company's business.  Gerard John Mier
and Anthony James Jonsson were appointed to facilitate the sale
of its assets.

The liquidators can be reached at:

          Anthony James Jonsson
          KPMG
          Level 13, Cairns Corporate Tower
          15 Lake Street
          Cairns QLD 4870
          Australia


MOBIUS NCM-04 TRUST: S&P Puts 2 Low-B Ratings on Negative Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it has placed the
ratings assigned to the Class D, Class M, Class E, and Class F
notes issued by Mobius NCM-04 Trust on CreditWatch with negative
implications (see list). This CreditWatch action follows recent
losses in the transaction, which have resulted in charge-offs to
the unrated note, and the worsening of the asset quality of the
pool, which has weakened the credit support position of the
Class D, M, E, and F notes.

Arrears in the pool are high; loans that are more than 90 days
in arrears constitute approximately 20% of the total portfolio.
Furthermore, losses on defaulted loans are increasing. This
resulted in charge-offs to the unrated note in the previous
month.

The Class A1, A2, Z, B, and C notes benefit from increased
credit enhancement, which has built-up due to the sequential pay
structure, and from high prepayment rates, which provide a
buffer against future losses.

The CreditWatch negative action is expected to be resolved
within 90 days.

Ratings Placed on CreditWatch Negative

   Transaction     Class   Rating to       Rating from
   -----------     -----   ---------       -----------
   Mobius NCM-04   D       BBB/Watch Neg   BBB
   Mobius NCM-04   M       BBB/Watch Neg   BBB
   Mobius NCM-04   E       BB/Watch Neg    BB
   Mobius NCM-04   F       B/Watch Neg     B

Ratings Affirmed

   Transaction     Class   Rating
   -----------     -----   ------
   Mobius NCM-04   A1      AAA
   Mobius NCM-04   A2      AAA
   Mobius NCM-04   Z       AAA
   Mobius NCM-04   B       AA
   Mobius NCM-04   C       A


MONTESSORI PRIMARY: Appoints Bettles and Carter as Liquidators
--------------------------------------------------------------
The Montessori Primary School Association Incorporated's members
agreed on April 4, 2008, to voluntarily liquidate the company's
business.  Jason Bettles and Susan Carter were appointed to
facilitate the sale of its assets.

The liquidators can be reached at:

          Jason Bettles
          Worrells Solvency & Forensic Accountants, Level 6
          50 Cavill Avenue
          Surfers Paradise, Qld 4217
          Australia


POWER TRANSMISSION: Declares Dividend for Creditors
---------------------------------------------------
Power Transmission Drives Australia Pty Ltd, which is in
liquidation, declared its dividend for its creditors.

Only creditors who were able to file their proof of debt by
May 15, 2008, were included in the company's dividend
distribution.

The company's liquidator is:

          P. A. Lucas
          P.A. Lucas & Co
          Chartered Accountants
          GPO Box 2910
          Brisbane QLD 4001
          Australia


SCARGLEN PTY: Appoints Peter Anthony Lucas as Liquidator
--------------------------------------------------------
Scarglen Pty. Ltd.'s members agreed on March 29, 2008, to
voluntarily liquidate the company's business.  Peter Anthony
Lucas was appointed to facilitate the sale of its assets.

The liquidator can be reached at:

          Peter Anthony Lucas
          P. A. Lucas & Co.
          Chartered Accountants
          Level 8, ING Building
          100 Edward Street
          Brisbane, Queensland, 4000
          Australia



=========
C H I N A
=========

CHINA EASTERN: To Cut Back Flights on Loss-Making Int'l Routes
--------------------------------------------------------------
China Eastern Airlines Corp. Limited plans to cut back flights
on certain loss-making long-haul international routes as it
moves to reduce costs, Fang Yan of Reuters reports, citing an
unnamed senior executive.

"Demand on some long-haul international routes has been weak and
it is difficult not to lose money," Reuters cited the executive
as saying.

According to the report, the carrier would execute the plan
gradually to avoid a significant reduction of flights on any
individual routes.

Analysts, the report relates, said that the airline has been
losing money on many long-haul routes due to a lack of global
networks and inadequate cost controls, compounded by surging oil
prices.

                      About China Southern

Headquartered in Guangzhou, China, China Southern Airlines Co.
Ltd. -- http://www.cs-air.com-- engages in the operation of
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally.  It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.

                          *    *    *

As reported in the Troubled Company Reporter-Asia Pacific on
March 3, 2008, Fitch Ratings affirmed China Southern Airlines
Co. Ltd.'s Long-term Foreign Currency and Local Currency Issuer
Default Ratings at 'B+'.  The Outlook on the ratings is Stable.


CHINA MERCHANTS: Moody's Affirms D+ BFSR on Acquisition of WLB
--------------------------------------------------------------
Moody's Investors Service has affirmed China Merchants Bank's
Baa3/P-3 long-term/short-term foreign currency deposit ratings
and D+ bank financial strength rating. The affirmation follows
CMB's planned purchase of Wing Lung Bank ("WLB", C+/A2). The
ratings' outlook remains stable.

"The affirmation of CMB's ratings reflects the small scale of
the transaction, the healthy condition of WLB, and CMB's strong
earnings. We expect CMB management to use its net income to
restore CMB's capital level after the acquisition," says Leo
Wah, a Moody's VP/Senior Analyst. "The affirmation also
incorporates Moody's expectation that CMB will continue to
perform well and integrate WLB into its business scope
successfully, given the lack of overlap between two banks."

Moody's will however monitor CMB's performance in case it should
become acquisitive or not slow loan growth, either of which
could delay capital replenishment," says Wah. CMB recently
announced its intention to purchase 50% of Cigna & CMC Life
Insurance, a joint venture between Cigna Group and the parent of
CMB, albeit a small-sized operation.

As CMB will make the proposed acquisition at a premium to WLB's
book value, its capital adequacy ratio will decline after the
purchase. Moody's expects CMB to tap either the domestic or
overseas debt capital market to issue subordinated debts or
overseas convertible bonds to boost its Tier II Supplementary
Capital to its pre-acquisition level of more than 10% later this
year.

"Without any capital increase, CMB's capital adequacy ratio
would fall to a level that could limit further organic or
acquisition-based expansion, and possibly exert pressure on its
stable rating outlook," says Wah, adding, "If CMB grows
aggressively and, at the same time, fails to boost its capital
through capital-raising exercises and profit retention, Moody's
is likely to look at the ratings again," says Wah.

The acquisition will give CMB a larger presence in Hong Kong as
WLB has a market share of about 1.5% in terms of loans, but CMB
itself has a relatively limited exposure in this market. WLB has
one of the most underutilized balance sheets among banks in Hong
Kong. It currently has a capital adequacy ratio of 14.7% and a
loan-to-deposit ratio of just 58%. Hence, there is room for CMB
to further increase its presence in Hong Kong and improve WLB's
profitability. WLB's 35-strong branch network in Hong Kong
serves as a solid distribution channel.

CMB will purchase 53.1% of WLB from the Wu family which owns
WLB. Upon the completion of the sale and purchase agreements and
the subsequent receipt of regulatory approval, CMB will make a
general offer for the remaining 46.9% of WLB. The transaction is
expected to be completed by August 2008.

Established in 1987 and headquartered in Shenzhen, China
Merchants Bank was the first commercial bank in China wholly
owned by corporate shareholders. It was listed on the Shanghai
Stock Exchange in 2002 and the Hong Kong Stock Exchange in 2006.
The bank had total assets of RMB1,311 billion (US$ 180 billion)
as of December 31, 2007.

Established in 1933 and headquartered in Hong Kong, Wing Lung
Bank Ltd. is one of the oldest domestic Chinese banks in Hong
Kong. It was listed on the Hong Kong Stock Exchange in early
1980. As at December 31, 2007, the bank had total assets of
HK$93 billion (US$12 billion).

These ratings of CMB are affirmed:

  * Long-term foreign currency deposit ratings:
    Baa3, stable outlook

  * Short-term foreign currency deposit ratings:
    P-3, stable outlook

  * Bank financial strength rating:
    D+, stable outlook


CHINA SOUTHERN: To Suspend Eight Int'l Flights This Month
--------------------------------------------------------
China Southern Airlines will suspend eight international flights
from Guangzhou to Southeast Asia countries this month until
October due to an adjustment in transport capacity, Xin Dingding
of China Daily reports, citing Nanfang Daily.

The flights involve are Ho Chi Minh City and Hanoi, Vietnam;
Angkor, Cambodia; and Phuket, Thailand.

According to China Daily, Nangfang Daily said that the airline
will also adjust 14 other international flights that connect
Guangzhou with 11 destinations including Los Angeles, Paris,
Sydney and Singapore.  The flight schedules will be changed or
reduced.

Insiders, China Daily relates, said cost reduction was more
likely to be the prime reason.

Carriers everywhere are seeking to cut expenses due to soaring
fuel costs, according to Bloomberg News.

Bloomberg says the International Air Transport Association,
whose members account for 93 percent of international traffic,
cut its forecast for the fourth time in nine months at a meeting
in Istanbul after oil prices rose 42 percent in six months.
Airlines may report combined losses of US$6.1 billion this year,
the worst since 2003, as spiraling fuel costs and slowing
economies wipe out earnings, Bloomberg relates.

“Just as we start to recover we face another crisis of
potentially even greater dimension,” IATA Chief Executive
Officer Giovanni Bisignani was cited by Bloomberg as saying.
“Skyrocketing oil prices are changing everything.  The situation
is desperate and potentially more destructive than our recent
battles with all the horsemen of the apocalypse combined.”

                       About China Southern

Headquartered in Guangzhou, China, China Southern Airlines Co.
Ltd. -- http://www.cs-air.com-- engages in the operation of
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally.  It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.

                           *    *    *

As reported in the Troubled Company Reporter-Asia Pacific on
March 3, 2008, Fitch Ratings affirmed China Southern Airlines
Co. Ltd.'s Long-term Foreign Currency and Local Currency Issuer
Default Ratings at 'B+'.  The Outlook on the ratings is Stable.


CHINA SOUTHERN: Proposes Issue of RMB1.5 Bil. Medium Term Notes
---------------------------------------------------------------
China Southern Airlines Co. Limited's board proposed the issue
of medium term notes by the company in the principal amount of
up to RMB1.5 billion and the submission of such proposal to the
shareholders for their consideration and approval, in accordance
with the relevant procedural requirements under applicable PRC
laws and regulations and Article 76(10) of the Articles of
Association.

The board approved the proposed issue of medium term notes in
the PRC and the submission of this proposal to the general
meeting for the shareholders' approval in accordance with the
relevant procedural requirements under applicable PRC laws and
regulations and the Articles of Association.

Particulars of the medium term notes:

(i)Place of Issue:       within the PRC (by one single issue or
                         more);

(ii)Principal amount:    up to RMB1.5 billion

(iii)Maturity:           3 years

(iv)Interest rate:       to be determined according to market
                         conditions

(v)Target subscribers:   institutional investors in the PRC's
                         inter-bank bond market (and not the
                         general public)

(vi)Use of proceeds:     to be used as the working capital of
                         the company and fund the capital
                         expenditure of the company

Subject to the shareholders' consideration and approval, the
executive directors authorized by the board shall be authorized
to determine and finalize the terms and conditions of and any
relevant matters in relation to the proposed issue of medium
term notes based on the needs of the company and the market
conditions at the time of issue, including to determine and
finalize the final principal amount and interest rate of such
medium term notes.

The board believes that the proposed issue of medium term notes
will provide the company with a further source of medium to long
term funding at an interest rate lower than the best lending
rate for loans from commercial bank.  The board considers that
the issue of the medium term notes will lower the finance costs
of borrowings for the company and improve the debt structure of
the company.

                      About China Southern

Headquartered in Guangzhou, China, China Southern Airlines Co.
Ltd. -- http://www.cs-air.com-- engages in the operation of
airlines, as well as in aircraft maintenance and air catering
operations in the People's Republic of China and
internationally.  It provides commercial airlines, cargo
services, logistics operations, air catering, utility service,
hotel operation, travel services, aircraft leasing, and Internet
services.

                           *    *    *

As reported in the Troubled Company Reporter-Asia Pacific on
March 3, 2008, Fitch Ratings affirmed China Southern Airlines
Co. Ltd.'s Long-term Foreign Currency and Local Currency Issuer
Default Ratings at 'B+'.  The Outlook on the ratings is Stable.


WING LUNG: Moody's Holds C+ BRSR on China Merchant's Acquisition
----------------------------------------------------------------
Moody's Investors Service has affirmed the A2 / Prime-1 deposit
ratings of Wing Lung Bank (WLB), as well as its C+ bank
financial strength rating (BFSR). The outlook for all ratings is
stable.

The rating affirmation follows the news that China Merchants
Bank (CMB) (Baa3/P-3/D+ BFSR) has agreed to acquire WLB.

"The stable outlook on WLB's BFSR reflects its strong balance
sheet and risk-adjusted earnings," says Patrick Winsbury, a
Moody's Senior Vice President.

"These characteristics provide a substantial cushion for CMB --
once the acquisition is complete -- to build its Hong Kong
operations, and which Moody's expects may include a greater
focus on building risk-weighted assets," says Winsbury.

"At the same time, the potential for support from the new parent
is not viewed as sufficient -- under Moody's joint default
framework -- to create any rating lift for Wing Lung Bank's
deposits," says Winsbury. " Although Moody's believes CMB could
be very willing to support WLB, CMB's ratings (BFSR of D+),
which are lower than WLB's, is not strong enough to move WLB's
ratings."

CMB will purchase 53.1% of WLB from the Wu family. Upon the
completion of the sale and purchase agreements and the
subsequent receipt of the regulatory approval, CMB will make a
general offer for the remaining 46.9% of WLB. The transaction is
expected to be completed by August 2008.

Established in 1987 and headquartered in Shenzhen, China
Merchants Bank is the first commercial bank in China wholly
owned by corporate shareholders. It listed on the Shanghai Stock
Exchange ("SSE") in 2002 and Hong Kong Stock Exchange ("HKSE")
in 2006. The bank had total assets of RMB1,311 billion (US$180
billion) at December 31, 2007.

Established in 1933 and headquartered in Hong Kong, Wing Lung
Bank Ltd. is one of the oldest domestic Chinese banks in Hong
Kong. It listed on the Hong Kong Stock Exchange ("HKSE") in
early 1980. As at December 31, 2007, the bank had total assets
of HK$93 billion (US$12 billion).

These ratings of WLB are affirmed:

   * Long-term local and foreign currency deposit ratings:
     A2, stable outlook

   * Short-term local and foreign currency deposit ratings:
     P-1, stable outlook

   * Bank financial strength rating:
     C+, stable outlook



================
H O N G  K O N G
================

ASIA TELEMEDIA: Members & Creditors to Meet on June 6
-----------------------------------------------------
Asia Telemedia Limited will hold a joint meeting for its
creditors and contributors at 9:30 p.m. and 10:30, respectively
on June 6, 2008.  During the meeting, the company's liquidator,
E.T. O'Connell will provide the attendees with property disposal
and winding-up reports.

The company's liquidator can be reached at:

            E.T. O'Connell
            Duke of Windsor Social Service Building
            Auditorium, 1st Floor
            No. 15 Hennesy Road, Wanchai
            Hong Kong


FLYING DRAGON Members & Creditors to Meet on June 6
---------------------------------------------------
Flying Dragon Group Limited will hold a joint meeting for its
creditors and contributors at 3:00 p.m. and 3:30, respectively
on June 6, 2008.  During the meeting, the company's liquidator,
Simon Blade will provide the attendees with property disposal
and winding-up reports.

The company's liquidator can be reached at:

            Simon Blade
            China Merchants Tower
            12th Floor, Shun Tak Centre
            168-200 Connaught Road, Central
            Hong Kong


MODERN FUND: Members & Creditors to Meet on June 27
---------------------------------------------------
Modern Fund Limited will hold a joint meeting for its members
and creditors at 2:30 p.m. on June 27, 2008.  During the
meeting, the company's liquidator, Yuen Shu Tong will provide
the attendees with property disposal and winding-up reports.

The company's liquidator can be reached at:

            Yuen Shu Tong
            Malaysia Building, 3rd Floor
            Unit 3, 50 Gloucester Road
            Wanchai, Hong Kong


NOBLE HOPE: Members & Creditors to Meet on June 27
---------------------------------------------------
Noble Hope Limited will hold a joint meeting for its members and
creditors at 2:30 p.m. on June 27, 2008.  During the meeting,
the company's liquidator, Yuen Shu Tong will provide the
attendees with property disposal and winding-up reports.

The company's liquidator can be reached at:

            Yuen Shu Tong
            Malaysia Building, 3rd Floor
            Unit 3, 50 Gloucester Road
            Wanchai, Hong Kong



=========
I N D I A
=========

BSL LTD: CARE Assigns ‘PR4’ & ‘BB+’ Bank Loan Ratings
-----------------------------------------------------
Credit Analysis and Research Ltd. assigned a ‘CARE BB+’ (Double
B Plus) rating to the long-term bank facilities of BSL Ltd.
This rating is applicable for the bank facilities having tenure
of over one year.  Instruments with this rating are considered
to offer inadequate safety for timely servicing of debt
obligations. Such instruments carry high credit risk.

Also, CARE assigned a ‘PR 4’ (PR Four) rating to the short-term
bank facilities of BSL Ltd.  This rating is applicable for the
bank facilities having tenure up to one year.  Instruments with
this rating would have inadequate capacity for timely payment of
short-term debt obligations and carry very high credit risk.
Such Instruments are susceptible to default.

The ratings are assigned to both short-term and long-term bank
facilities aggregating Rs 161.07 cr.

The ratings factor in BSL’s position as an integrated textile
manufacturer, experienced promoters and management and
diversified product range.  However, the ratings are constrained
by high levels of export thereby exposing the company to
currency risks, declining profitability margins, stressed
financial position and increased competition in domestic and
export market.

BSL, one of the group companies of the LNJ Bhilwara group was
incorporated in 1970. It is promoted by Mr. L N Jhunjhunwala,
Chairman emeritus of the group and managed by Mr. A.K. Churiwal,
chairman and managing director, having long experience in
textile industry.  BSL is primarily engaged in manufacturing of
woolen/worsted yarn, synthetic polyester yarn, synthetics
blended viscose fabrics and premium range of worsted suitings,
readymade and silk garments.  BSL markets its products under
various brand names such as BSL suitings, Geoffrey Hammonds and
La Italia. BSL enjoys export house status and is an ISO-9001
certified company.

BSL started its operation with the manufacturing of Grey fabric
from 1971.  Over the years it has integrated its manufacturing
facilities for spinning, weaving and processing and has been
undertaking modernization programs in the past.  BSL has present
installed capacity of around 25,900 spindles for yarn
manufacturing, 126 looms for fabric weaving with fabric
manufacturing capacity of 102 lakhs metre supported by in-house
design studio and new product development center, 8 Dornier
looms for silk weaving.

In 2004 BSL has set up a 2.40 MW Wind Power Mill at Jaisalmer
(Rajasthan) for captive consumption resulting in saving of power
and fuel cost.  BSL has entered in to high margin silk weaving
sector in FY07 with installation of 8 Dornier looms at a project
cost of Rs 14.7 cr. BSL installed 8448 spindles in its Synthetic
spinning unit (PV) during the year FY07 with a capital
expenditure Rs25 cr.  Over the years the fabric division has
been the primary contributor to the overall turnover of the
company with approx. 95% share and the balance is contributed by
yarn division, readymade garments & job processing work.

Exports sales have increased to more than 50% of net sales since
FY06 on account of increase in turnover and company policy to
increase its overseas presence.  However domestic sales have
decreased as a result of increase competition from branded and
unbranded suppliers.  Currently BSL exports to over 40 countries
across the world mainly to Gulf countries, Syria, Egypt,
Indonesia, Singapore and Latin America.  However the
profitability in FY07 in exports has also been affected due to
higher raw material prices, reduction in DEPB rates and reversal
of Target plus incentive, higher finance cost ,higher fuel cost
and strengthening of rupee vis-a via dollar.

Over the last four years total income has exhibited restricted
growth mainly on account low growth in the fabric sales (9.5%
CAGR), decrease in average sales realization in both domestic
and export market, increased competition from branded as well as
unbranded players, increase supply and capacity addition by
other players.  The interest cost has increased in FY07 on
account of capital expenditure incurred on setting up of silk
weaving unit and Unit-II (Synthetic-PV spinning unit) and
hardening of interest rates.  Interest coverage FY07 has
decreased to 0.96 from 1.16 during FY06 reflecting the stressed
financial position.  Overall gearing has increased to 2.65 times
as on March 31, 2007 from 1.69 times as on March 13, 2006 on
account of the long term borrowing to finance the fresh capacity
additions, increase in working capital borrowing and decline in
net-worth.


ICICI BANK: Fixes Book Closure for Dividend & AGM
-------------------------------------------------
ICICI Bank Ltd disclosed in a regulatory filing with the
Bombay Stock Exchange Limited that the Register of Members
& Share Transfer Books of the Bank will remain closed
from July 12, 2008 to July 26, 2008 (both days inclusive)
for the purpose of payment of dividend & 14th Annual
General Meeting (AGM) of the Bank to be held on July 26, 2008.

                     About ICICI Bank Limited

Headquartered in Mumbai, India, ICICI Bank Limited (NYSE:IBN) --
http://www.icicibank.com/-- is a private sector bank with
consolidated total assets of US$121 billion as of March 31,
2008.  ICICI Bank’s subsidiaries include India’s leading private
sector insurance companies and among its largest securities
brokerage firms, mutual funds and private equity firms.  ICICI
Bank’s presence currently spans 19 countries, including India.

                          *     *     *

As of May 17, 2008,  ICICI Bank Limited continues to carry
Moody's Investors Service's "Ba2" Foreign Long Term Bank
Deposits rating, which was placed on Feb. 5, 2003.

In addition, the bank still carries a "BB" Subordinated
Debt rating placed by Fitch Ratings on Feb. 5, 2007.


PUNJAB STATE: CARE Assigns ‘BB+’ Bank Loan Rating
-------------------------------------------------
Credit Analysis and Research Ltd. assigned ‘CARE BB+’ (double B
plus) rating to the long-term bank facility of Punjab State
Electricity Board (PSEB).  This rating is applicable for
facilities having tenure of over than one year.  Instruments
with this rating are considered to offer inadequate safety for
timely servicing of debt obligations. Such instruments carry
high credit risk.

Also, CARE assigned ‘PR4’ (PR four) rating to the short-term
bank facilities of PSEB.  This rating is applicable for
facilities having tenure up to one year. Instruments with this
rating would have inadequate capacity for timely payment of
short-term debt obligations and carry very high credit risk.
Such Instruments are susceptible to default.

The ratings are assigned to the long-term and short term bank
facilities aggregating to Rs.5580 cr (inclusive of outstanding
and sanctioned loan facilities).

The rating takes into account, PSEB’s status of regulated
monopoly for generation, transmission and distribution of power
in the state of Punjab, own generation plants, favorable hydel:
thermal mix coupled with wide T & D (transmission &
distribution) network.

The rating is constrained by continual decline in financial
performance, high level of cross subsidization, increasing
dependence on power purchase, high T & D losses,
stagnant capacities, high financial leverage coupled with high
reliance on short term financing and no progress in status of
reforms in the state.

Punjab State Electricity Board (PSEB) constituted on May 1, 1967
under the Electricity Supply Act (ESA),1948.  PSEB is wholly
owned by GoP and enjoys the status of a regulated monopoly for
generation, transmission and distribution of power in the state
of Punjab.  The consumption pattern and tariff structure of PSEB
has traditionally been skewed towards the industrial sector,
which therefore, helps in cross-subsidizing the agricultural and
domestic sectors.  The contribution to revenue has been
primarily from non-domestic and non-agricultural consumers. PSEB
has not witnessed any increase in the installed capacity during
2006-07 and T & D losses also remained by and large at same
levels of 24%-25%.

Revenue from sale of power improved by 5% in FY07 over previous
year to Rs 7030 crore.  Higher demand for power coupled with
stagnant capacity addition led to significant rise in the power
purchase from outside during 2006-07, which added to the cost of
supply during the year under review.  The Board registered a
deficit of Rs 1626 crore during 2006-07.


SAHARA INDIA: RBI Bars Firm from Accepting Deposits
---------------------------------------------------
The Reserve Bank of India prohibited with immediate effect
Sahara India Financial Corporation Ltd. from accepting public
deposits from any person in any form whether by way of fresh
deposits or renewal of the deposits or otherwise.

SIFCL was issued a Show Cause Notice (SCN).  In response to the
SCN, the company had sought a personal hearing, which was
granted.  The company also requested for extension of time for
giving its written submissions, which was granted.  The
submissions received were carefully examined.  The Reserve Bank
of India has come to the conclusion that the SIFCL had
continuously violated these directions/guidelines:

   (i) Maintenance of directed investments in
       violation of para 6(1)RNBC (RB) Directions, 1987.

  (ii) Payment of minimum rate of interest prescribed
       under para 5 of RNBC (RB) Directions, 1987.

(iii) ALM guidelines stipulated in Company Circular 15
       dated June 27, 2001.

  (iv) KYC norms stipulated for opening of deposit accounts
       and the details on the agents of the company
       deployed for deposit mobilisation, in Company Circular
       No. 48 dated February 21, 2005 and 46 dated
       December 30, 2004.

   (v) Intimating depositors in time of maturity of their
       deposits and repayment of  deposits on maturity in
       terms of directions in para 5A of RNBC (RB)
       Directions, 1987.

Accordingly, to protect the interests of depositors and in
public interest, RBI passes the following order:

   (i) SIFCL is prohibited with immediate effect from
       accepting any deposit in any manner including
       installments under any running daily deposit or
       other recurring deposit  schemes or otherwise,
       either from its existing depositors or new
       depositors whether by way of renewal or otherwise.

  (ii) SIFCL shall repay the deposits as and when they
       mature.

(iii) SIFCL shall not treat non-payment of installments
       under any running daily deposit or other
       recurring deposit schemes by depositors, as a
       default by depositor and SIFCL shall be liable
       to pay the agreed rate of interest on the
       amounts actually held by it for the entire term
       of the deposit as if there was no default.

  (iv) SIFCL shall lodge all securities held in its
       custody with  the designated bank for custody

   (v) SIFCL subject to (i) (ii) (iii) above shall
       strictly comply with the requirements of all
       the applicable provisions of the RBI Act, the
       directions, guidelines, instructions and circulars
       issued by RBI there-under from time to time until
       such time as all the deposits are repaid with interest
       in full.  For repaying the depositors, SIFCL shall
       first apply its income and investments other than the
       investments it is required to maintain under
       paragraph 6 of RNBC Directions.  SIFCL shall ensure
       that the investments as directed in paragraph 6 of
       RNBC Directions are maintained with respect to its
       aggregate liability to depositors both towards
       principal and interest.

  (vi) SIFCL shall forthwith notify all its agents and
       employees that it has been prohibited from accepting
       deposits and shall paste a copy of the operative
       portion of the order in a conspicuous place at each
       of its branches and offices.

(vii) SIFCL shall, without prejudice to the above, be
       entitled to carry on its other business activities
       in accordance with law.

                          SIFCL Responds

The Times of India reports that a spokesman for SIFCL was
scathing in his attack on the RBI, saying that SIFCL would
challenge the order in court.

In a statement cited by the Times of India, the company said
RBI, which has frequently changed guidelines for finance
companies taking deposits, arbitrarily brushed aside SIFCL's
justified plea for a window to adapt to the new rules.

"Without giving due consideration to the demand regarding the
time limit, RBI has passed an order stopping the acceptance of
deposits in a most vindictive and arbitrary manner," the cited
statement said.  "The order is is not in conformity with the
provisions contained in the Reserve Bank of India Act inasmuch
as it completely ignores the interest of the depositors."

According to the report, the company asserted that it would
prevail in court, even as it assured depositors the safety of
their money and urged them not to panic.

The company further stressed that the activities related to life
insurance, mutual funds, real estate, media & entertainment,
consumer products, Sahara Care House and tourism did not fall
under the purview of RBI's prohibitory order, the report says.

                          About SIFCL

Sahara India Financial Corporation Ltd. is a residuary non-
banking company.  Its registered office is at 1, Sahara Bhavan,
Kapoorthala Complex, in Aliganj, Lucknow-226024.


VEDANTA RESOURCES: India Unit Inks $2.6 Bil. Deal With ASARCO
-------------------------------------------------------------
Sterlite Industries (India) Limited, a subsidiary of Vedanta
Resources plc, the London-based FTSE 100 metal and mining group,
and ASARCO LLC, a Tucson based mining, smelting and refining
company, have signed a definitive agreement for the sale to
Sterlite of substantially all the operating assets of Asarco for
US$2.6 billion in cash.

The agreement is subject to the approval of the U.S. Bankruptcy
Court for the Southern District of Texas, Corpus Christi
Division, and the sale will conclude Asarco’s Chapter 11 case.

Asarco, formerly known as American Smelting and Refining
Company, is an over 100 year old company and is currently the
third largest copper producer in the United States of America.
It produced 235,000 tonnes of refined copper in 2007.  Asarco’s
mines currently have estimated reserves of approximately 5
million tonnes of contained copper.  For the year ended 31
December 2007, Asarco had total revenues of approximately US$1.9
billion.

The asset acquisition will be financed by Sterlite through a mix
of debt and existing cash resources.

The integrated assets to be acquired include three open-pit
copper mines and a copper smelter in Arizona, US and a copper
refinery, rod and cake plant and precious metals plant in Texas,
US.  The asset acquisition is on a cash free and debt free
basis.  Sterlite will assume operating liabilities but not
legacy liabilities for asbestos and environmental claims for
ceased operations.

“We are delighted to have reached agreement on this important
acquisition, which is a significant milestone for our Group,”
said Mr. Anil Agarwal, Chairman, Sterlite. “This is in line with
our stated strategy of leveraging our established skills.”

“We are extremely pleased with this agreement,” said Asarco’s
President and Chief Executive Officer, Joseph F. Lapinsky.
“Reaching this agreement with a world class mining company is a
giant step forward in our quest to successfully emerge from
Chapter 11,” he said.  “The sale will achieve the overall best
value for Asarco, its employees, creditors and the local
communities in which we operate.”

Asarco is expected to create significant long term value for all
stakeholders through:

   -- Leveraging Sterlite’s proven operational and project
      skills to develop and optimise Asarco’s mines and plants;
   -- Access to attractive mining assets with long life;
   -- Geographic diversification in the North American market;
      and
   -- Stable operating and financial platform for Asarco.

The sale agreement resulted from a plan sponsor selection
process in which Sterlite and several other entities
participated over many months.  Bidders submitted offers in late
April and the selection of the highest and best bid occurred on
May 23, 2008.  The selection process carefully followed a
procedure supported by Asarco’s creditors and approved by the
U.S. Bankruptcy Court for the Southern District of Texas.  An
independent court-appointed examiner also closely observed the
bidding process.

ABN AMRO Corporate Finance, a part of the RBS Group, acted as
financial advisor and Shearman & Sterling acted as legal advisor
to Sterlite in the transaction.  Lehman Brothers acted as
financial advisor and Baker Botts acted as legal advisor to
Asarco in this transaction.

                   About Vedanta Resources plc

Vedanta Resources plc – http://www.vedantaresources.com/-- is a
London listed FTSE 100 diversified metals and mining major.  The
group produces aluminium, copper, zinc, lead, iron ore and
commercial energy.  Vedanta has operations in India, Zambia and
Australia and a strong organic growth pipeline of projects.
With an empowered talent pool of 29,000 employees globally,
Vedanta places strong emphasis on partnering with all its
stakeholders based on the core values of entrepreneurship,
excellence, trust, inclusiveness and growth.


VEDANTA RESOURCES: Asarco Deal Cues Moody's to Hold Ba1 Rating
--------------------------------------------------------------
Moody's Investors Service has affirmed the Baa3 corporate family
rating and the Ba1 senior unsecured rating of Vedanta Resources
plc ("Vedanta") following the announcement that it has reached
definitive agreement to purchase the operating assets of
American Smelting and Refining Company ("Asarco") for US$2.6
billion. The transaction will be funded by combination of debt
and existing cash reserves. Outlook on the ratings remain
stable.

"The proposed acquisition is manageable within Vedanta's ratings
in view of its financial flexibility, highlighted by strong debt
coverage measures and high level of liquid assets", says Moody's
Ivan Palacios, Assistant Vice President and lead analyst for the
company.

"However, this transaction could weaken Vedanta's position
within the rating, leaving it with limited cushion to withstand
incremental operating challenges or further sustained weaknesses
in base metal prices", Palacios adds.

Moody's notes that the proposed acquisition provides a degree of
operating diversity for Vedanta, albeit there is execution risk
with respect to the ability to manage the operations and extract
the planned cash flows.

Vedanta has an active capital expenditure program, mainly
revolving around its phase II expansion that includes
construction of a greenfield aluminum smelter and commercial
power generation capacity. Projected capex is around $3.3
billion over the next 3-4 years.

"Further large expansionary plans, including acquisitions, would
pressure the rating if they are materially debt funded" says
Palacios.

Asarco is currently the third largest copper producer in the US,
with total revenues of approximately US$1.9 billion in 2007. The
agreement is subject to the approval of the U.S. Bankruptcy
Court for the Southern District of Texas, Corpus Christi
Division. According to Vedanta, the closure of this transaction
is expected to take around 4 to 6 months, and the company will
not assume any legacy liabilities for asbestos and environmental
claims for ceased operations as part of the transaction.

Over the long term, positive rating pressure could emerge if
Vedanta demonstrates a strong financial profile, including
Operating Cash Flow (less Dividends)/Adjusted Debt of at least
35%-40%, Adjusted Debt to EBITDA falling below 2.0x, and EBIT
interest coverage of at least 8x.

On the other hand, the rating could be downgraded if Vedanta 1)
experiences an extended decline in profitability due to further
sustained weaknesses in base metals price, 2) undertakes further
acquisitions or investments that include large incremental debt,
or 3) faces material disappointments in executing its expansion
projects.

Credit metrics that Moody's would consider for a rating
downgrade include OCF (less dividends)/Adjusted Debt falling
below 20%, Adjusted Debt to EBITDA exceeding 3.5x, or EBIT
interest coverage declining to 4.5x or less on a sustained
basis.

Headquartered in London, UK, Vedanta Resources plc is a metals
and mining company focused on integrated zinc and
alumina/aluminum as well as copper smelting and refining
operations predominantly located in India. The company is listed
on the London Stock Exchange and is 54% owned by Volcan
Investments Ltd.


* INDIA: Growth Slowed to 8.5% in 4th Qtr 2007
----------------------------------------------
India's growth slackened over the course of 2007, to 8.5% by the
fourth quarter of the year, partly as a result of tighter
monetary policy, the Organization for Economic Cooperation and
Development said Wednesday.  It would have eased more but for
strong farm output.  Even so, OECD said, consumer and wholesale
price inflation picked up, reaching nearly 8% by the spring of
2008.

According to OECD, with a more restrictive monetary policy
stance and a more normal harvest, output growth is projected to
gradually slow to below 8% in 2008 and then to recover slightly
in 2009.  Higher oil and commodity prices are likely to push the
current account deficit to 2% of GDP this year.  With world food
prices stabilising, the rise in the consumer price index is
expected to ease back to 5.5% in 2009.

OECD noted that the current budget does not take into account
likely pay increases for public employees nor debt write-offs
for small farmers.

“These measures need to be phased in gradually if a significant
fiscal shock is to be avoided.  A new system for determining
government employee pay is needed that avoids once-per-decade
pay hikes.  Elsewhere, the lowering of tariffs, halted in this
budget, needs to continue and progress is called for in moving
towards a national value-added tax, consolidating state and
union indirect taxes, while oil subsidies should be brought on
to the budget and then be phased out,” OECD said.

On May 28, 2008, the Troubled Company Reporter-Asia Pacific,
citing Amy Yee of the Financial Times, reported that India will
increase its budget to write off bad loans by farmers by about
20 percent to US$18 billion from the original US$15 billion
package unveiled in February,

"Both in terms of scope, coverage and the financial cost, this
is the most ambitious scheme ever undertaken by any government
in India," Finance Minister Palaniappan Chidambaram was quoted
by FT as saying.

The scheme will be implemented by June 30, the report said.

Earlier, Joe Leahy of the Financial Times reported that
India's state-owned banks reported a sharp rise in defaults by
rural lenders since the government implemented its plan to waive
loans granted to farmers.

According to the report, the State Bank of India has been forced
to suspend loans for tractors and other machinery after many
farmers stopped paying their debts on news of the waiver.

The Financial Times relates that in the year ended March, the
bad loans at India's biggest bank rose by about INR29 billion,
of which about INR9 billion came in the final quarter largely
from farmers.

The report said the increase in non-performing assets from
agriculture is not an immediate threat to the health of most
banks, however, the trend could worsen until the government
releases details of the new scheme.

"The scheme was meant to be limited to the very small and
marginal farmers,"  Mangesh Kulkarni, banking analyst with
Almondz Global Securities told the Financial Times.  "But the
farmers have taken it wrongly.  Everybody thinks everybody will
get the benefit and they have stopped repayments."


* Moody's Reports: Indian Banking System Challenges Remain
----------------------------------------------------------
India's banks have benefited from the strong economic cycle
driving a surge in loans and providing considerable growth
potential. The consequent increase in competition -- with the
public sector banks (PSBs) losing some market share to private
sector institutions and, to a lesser extent, foreign banks --
should also result in a more efficient and transparent banking
system, says Moody's Investors Service in its new Banking System
Outlook report for India.

The fundamental credit outlook for the Indian banking system is
stable, according to Moody's. This outlook expresses the rating
agency's view on the likely future direction of fundamental
credit conditions in the industry over the next 12 to 18 months.
It does not represent a projection of rating upgrades versus
downgrades.

"For many rated PSBs, a key challenge -- and rating constraint
-- remains their ability to modernise by upgrading their
technological platforms and capabilities through branch
computerisation and implementation of a core banking solution.
Outdated human resource structures and rigid and inefficient
labour forces also limit the PSBs' ability to attract talent and
compete on equal terms with their more modern counterparts,"
explains Nondas Nicolaides, a Moody's Vice President / Senior
Analyst and author of the report.

Overall loan growth in the Indian banking system remains robust
but has slowed somewhat, largely due to a significantly lower
increase in retail loans, the driving force of growth for many
banks in recent years. Moody's cautions that the retail loans
have yet to be fully tested in a negative credit cycle and that
certain banks may not have the comprehensive credit scoring and
monitoring systems and tools in place for closely screening
retail loans, which could prove challenging as delinquency rates
have started rising in recent months.

"A positive and important rating driver for all the rated Indian
banks, in particular the PSBs, is their robust deposit
franchises, assuring them of a relatively cheap and stable
source of funding and a comfortable liquidity profile. In terms
of efficiency, Indian commercial banks boast a cost-to-income
ratio of around 50% that compares favourably with the ratios of
other international banks," Mr Nicolaides says. The recent
global credit crisis and liquidity crunch in the financial
markets has had very limited to no impact on Indian banks. Only
certain large banks with international operations have been
mildly affected by asset price adjustments and have taken some
minimal write-downs because of the widening of spreads.

The profitability ratios of Indian commercial banks are
relatively moderate but their core recurring income and profits
are on a rising trend. PSBs display marginally lower
profitability than their private sector counterparts, while
foreign banks in India appear to be the most profitable. Going
forward, the increasing disintermediation and competition for
good-quality credits could exert some pressure on revenue
streams. A focus on increasing fee-based income will be key to
improving quality of earnings and maintaining future
profitability.

Most Indian banks demonstrate healthy capital adequacy ratios.
The key concern remains the ability of the weaker PSBs and those
PSBs that are close to the threshold of minimum government
shareholding as well as small private sector banks to raise
fresh capital, especially in view of the adoption of the Basel
II accord. This could induce some level of consolidation in the
market going forward.

The banking system's steady improvement in asset quality in
recent years has been exerting upward pressure on the BFSRs of
the rated banks despite the sharp rise in credit growth.
However, loan restructuring carried out in recent years across
the system and the seasoning of the relatively new lending could
indicate that the actual level of NPLs may be higher, just as
the March 2008 year-end results suggest for a number of rated
banks. Looking ahead, any rapid material deterioration in banks'
asset quality that placed pressure on their profitability and
solvency positions could prompt Moody's to change the rating
outlook for the affected banks to negative from stable.



=================
I N D O N E S I A
=================

PT LIPPO BANK: S&P Upgrades Counterparty Credit Ratings to BB-/B
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised its
counterparty credit ratings on PT Lippo Bank Tbk (Bank Lippo) to
'BB-/B' from 'B+/B'. At the same time, Standard & Poor's
affirmed its 'BBB-/A-3' counterparty credit ratings on
Bumiputra-Commerce Holdings Bhd (BCHB), 'BBB+/A-2' on CIMB Bank
Bhd (CIMB Bank) and 'BBB/A-2' on CIMB Investment Bank Bhd (CIMB
IB) following the announcement that the group is to pursue a
plan by the Malaysian government's investment holding company,
Khazanah Nasional Bhd (not rated), to merge PT Bank Niaga and PT
Bank Lippo. The outlook on the ratings is stable.

"The upgrade takes into account Bank Lippo's expected post-
merger status as a strategically important entity within the
CIMB group and the integral role it would play in the group's
overseas strategy," said Standard & Poor's credit analyst Ritesh
Maheshwari.

The CIMB group would become the majority owner of the merged
bank, which will adopt the CIMB brand name (which will be known
as "PT Bank CIMB Niaga Tbk"). In Standard & Poor's view, the
merger is likely to go through since it is likely to receive
approval from the central bank, Bank Indonesia, without
having to fulfill the general acquisition process for banks.

The proposed merger enables Khazanah to adjust its ownership
structure in Bank Niaga and Bank Lippo in order to comply with
Bank Indonesia's single presence policy. In addition, it offers
opportunities for CIMB Group to enhance its presence in the
Indonesia banking sector through greater scale and a wider
distribution network, and is expected to contribute positively
to the future consolidated earnings of BCHB.

BCHB is a well-diversified financial holdings company listed on
the Malaysian stock exchange, Bursa Malaysia, and wholly owns
CIMB Bank and CIMB IB.

This unsolicited rating(s) was initiated by Standard & Poor's.
It may be based solely on publicly available information and may
or may not involve the participation of the issuer's management.
Standard & Poor's has used information from sources believed to
be reliable, but does not guarantee the accuracy, adequacy, or
completeness of any information used.



=========
J A P A N
=========

ASAHI MUTUAL: Puts Two Officials in New Positions
-------------------------------------------------
Asahi Mutual Life Insurance Co. will appoint managing director
Yoshiki Sato as its new president and Incumbent President Yuzuru
Fujita as chairman with rights to represent the company, Jiji
Press reports, citing company officials.

According to the report, Mr. Sato, 58, has a long career in the
field of marketing and sales promotion, while Mr. Fujita, 66,
carried out bold business restructuring measures during his 12-
year leadership so the company could survive after the collapse
of the economic bubble.

The company will formalize the appointments at a board meeting
to be held after an annual meeting of representatives of
policyholders scheduled for July 1, the report says.

                     About Asahi Mutual

Headquartered in Tokyo, Japan, Asahi Mutual Life Insurance
Company -- http://www.asahi-life.co.jp/-- is a Japanese life
insurance Company that focuses on individual life insurance.
The Group also sells non-insurance products provided by its
partners and provides investment trust products.

                       *     *     *

On Oct. 18, 2007, the Troubled Company Reporter - Asia Pacific
reported that Japan Credit Rating Agency Ltd. affirmed its
BB+/Stable ratings on both senior debts and ability to pay
insurance claims of Asahi Mutual Life Insurance Company.

On November 11, 2005, TCR-AP reported that Standard & Poor's
Ratings Services raised by three notches its long-term
counterparty and financial strength ratings on Asahi Mutual to
'BB-' from 'B-'.


CAPCOM CO: To Distribute Bonus Dividends
----------------------------------------
Capcom Co. Ltd. will to distribute a bonus dividend in
commemoration of the 25th anniversary of its foundation, Reuters
reports.

Accordingly, the report says, the company decided to issue
interim dividend forecast of JPY20 per share (JPY15 per share of
a common dividend and JPY5 per share of a bonus dividend), and
year-end dividend forecast of JPY15 per share for the fiscal
year ending March 2009.

                         About Capcom Co.

Headquartered in Osaka, Japan, Capcom Co., Ltd. --
http://www.capcom.co.jp--is one of Japan's leading developers
of home video-game software.  The company also engages in arcade
operations and arcade games sales businesses.  Its consolidated
sales in FYE3/2006 were JPY70.3 billion.

The Troubled Company Reporter-Asia Pacific reported on Feb. 14,
2007, that Moody's Investors Service placed Capcom Co. Ltd.'s
Ba2 senior unsecured long-term debt rating under review for
possible upgrade.


CAPCOM CO: Acquires Osaka-Based Company Through Stock Swap
----------------------------------------------------------
Capcom Co. Ltd. fully acquired an Osaka-based company, through a
stock swap last May 1, 2008, Reuters reports.

According to the report, through the stock swap, one share of
the Osaka-based company's common stock was exchanged for 3,362
shares of the Capcom's common stock.

A total of 201,720 shares of the Capcom's common stock was
exchanged through the stock swap.

The Osaka-based company is now the wholly owned subsidiary of
the Capcom, the report notes.

                         About Capcom Co.

Headquartered in Osaka, Japan, Capcom Co., Ltd. --
http://www.capcom.co.jp--is one of Japan's leading developers
of home video-game software.  The company also engages in arcade
operations and arcade games sales businesses.  Its consolidated
sales in FYE3/2006 were JPY70.3 billion.

The Troubled Company Reporter-Asia Pacific reported on Feb. 14,
2007, that Moody's Investors Service placed Capcom Co. Ltd.'s
Ba2 senior unsecured long-term debt rating under review for
possible upgrade.


SHINGINKO TOKYO: Plans to Cut JPY101.6 Bil. Cumulative Losses
-------------------------------------------------------------
ShinGinko Tokyo plans to reduce its capital to wipe off
cumulative losses that totaled JPY101.6 billion at the
March 31 end of fiscal 2007, informed sources told Jiji Press.

According to the report, the bank said it incurred a net
loss of JPY16,731 million in fiscal 2007 after the previous
year's loss of JPY54,715 million.

The Associated Press relates that the decrease in net loss
was due largely to a decline in asset impairment losses to
JPY258 million from JPY10.92 billion yen.

The bank intends to finalize the capital reduction at a
general shareholders' meeting scheduled for June 30,
Jiji Press' sources said.

AP says Shinginko Tokyo also booked a pretax loss of
JPY14.91 billion, down from the previous year's loss of
JPY40.18 billion, on an 11.2 percent fall in operating
revenues to JPY10.32 billion.

Additionally, AP says the bank's operating losses from
core banking operations came to JPY2.04 billion, down from
JPY20.65 billion, while its outstanding balance of bad
loans grew from JPY20.64 billion to JPY30.58 billion.

Jiji Press says ShinGinko Tokyo expects a net loss of
JPY12.6 billion for fiscal 2008, but it may face a
greater loss depending on the outcome of the Financial
Services Agency's first inspections of the bank since
the bank's launch in April 2005.

The FSA's assessment of its assets may force the bank to
increase its loan-loss reserves and revise down its
earnings projections, Jiji Press states.

Last month, Kinki Sangyo Shinyo Kumiai expressed intention
to support the troubled bank.

Kinki Sangyo is a South Korean-affiliated credit union
based in the western Japan city of Osaka.

In addition to Kinki Sangyo, ShinGinko Tokyo also received
informal offers on business transfers and capital tie-ups
from two to three foreign and domestic firms, Jiji Press
says.

On May 19, 2008, the Troubled Company Reporter-Asia Pacific,
citing Kyodo News, reported that the Financial Services Agency
has began inspecting Shinginko Tokyo in the first examination of
the quality of its assets.

The FSA examination focused on the quality of the bank's
outstanding loans and the bank's compliance system as well
as the bank's system for examining the creditworthiness of
borrowers and for supervising employees' lending activities.

According to Kyodo News, the bank provided loans without
requiring borrowers to put up collateral or obliging them to
find guarantors.

The bank's lax examination of borrowers resulted in cumulative
losses of JPY101.6 billion at the end of March with its capital
adequacy ratio falling to around 16 percent from 21 percent in
September 2006, Kyodo News said.

In April 2008, the Tokyo Metropolitan Government injected
JPY40 billion in new funds to the bank in order to shore up its
finances.

Reiji Yoshida of The Japan Times said in a report dated
March 25, 2008, that few experts believe the government's rescue
plan will solve the problems of the money-losing bank.

In an interview, Rikkyo University professor Yoshiyuki Yamaguchi
told The Japan Times that many expect that even with the
emergency capital injection, the bank will soon fall into
financial straits again and impose further burdens on the
taxpayers of the capital.

                      About Shinginko Tokyo

Shinginko Tokyo was founded in April 2005 by the Tokyo
Metropolitan Government at the initiative of Tokyo Governor
Shintaro Ishihara with an investment of JPY100 billion.  The
bank provides loans mainly to struggling small firms based in
Tokyo.  The bank was Mr. Ishihara's promise during his 2003
gubernatorial election campaign.

                         *     *     *

As of May 17, 2008, Shinginko Tokyo continues to carry a "BB+"
Subordinated Debt rating placed by Japan Credit Rating Agency on
March 28, 2008.



=========
K O R E A
=========

HYUNDAI MOTOR: U.S. Unit Reports 6% Sales Increase in May
---------------------------------------------------------
Hyundai Motor America, a subsidiary of Hyundai Motor Co.,
posted a 6% increase in May sales to 46,415 from same period
last year.

"We are very pleased with our results for May and the fact we
were able to break the record set in 2007 for the month during a
period of record-setting oil prices and a sluggish economy,"
said Dave Zuchowski, Hyundai Motor America's vice president of
national sales.  "Our more fuel-efficient vehicles -- Accent,
Elantra and Sonata -- continued their strong momentum with
increases of 89%, 46% and 12%, respectively, over last year."

                 About Hyundai Motor America

Hyundai Motor America, headquartered in Fountain Valley, Calif.,
is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles
are distributed throughout the United States by Hyundai Motor
America and are sold and serviced through almost 800 dealerships
nationwide.


                      About Hyundai Motor

Headquartered in Seoul, South Korea, Hyundai Motor Company
-- http://www.hyundai-motor.com/-- has been selling cars in the
US since 1986, but it only started selling its heavy trucks
stateside in 1998.  Hyundai produces 14 models of cars, SUVs,
and minivans, as well as trucks, buses, and other commercial
vehicles.  The company reestablished itself as South Korea's
leading carmaker in 1998 by acquiring a 51% stake in Kia Motors
(since reduced to about 43%).  Hyundai's models for the North
American market include the Accent and Sonata; models sold
elsewhere include the GRD and Equus.  The company also
manufactures machine tools for factory automation and material-
handling equipment.

The Troubled Company Reporter-Asia Pacific reported that the
Hyundai Automotive Group is facing its deepest crisis since
chairman Chung Mong-koo took over in 1999, with problems like
the falling United States dollar, high oil prices and union
demands aggravated by a sweeping criminal investigation
regarding the carmaker's alleged creation of slush funds that
were used by at least two lobbyists to bribe government
officials for business favors, including having KRW55 billion of
Hyundai's bad debts written off.

Chairman Chung was indicted early in May 2006 for fraud charges.

Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning.

On Feb. 5, 2007, a South Korean court handed down the sentence
to Mr. Chung for illegally raising US$110 million in slush funds
and bribing government officials.  Mr. Chung was released on
bond and continues to run the auto conglomerate.

In May 2008, Yonhap News reported that a group of the company's
shareholders filed a civil case against Mr. Chung to claim
damages for heavy losses allegedly suffered through his
mismanagement and other corporate shenanigans.

According to the report, the shareholders, led by a civic group
called Solidarity for Economic Reform, filed the lawsuit with
the Seoul Central District Court, asking Mr. Chung to pay
KRW563 billion (US$537 million) in damages to Hyundai Motor.

The lawsuit came a day after prosecutors again demanded a six-
year jail term for Mr. Chung for embezzlement and breach of
trust, Yonhap said.


HYUNDAI MOTOR: Canada Unit's May Sales Highest in 25 Years
----------------------------------------------------------
Hyundai Auto Canada Corp., a subsidiary of Hyundai Motor
Company, achieved its best month of sales in the company's 25-
year history.  May 2008 represents Hyundai Canada's best
month on record with over 9,500 vehicles sold.

"Our 25th anniversary year has been a remarkable one for Hyundai
Canada," said John Vernile, vice president, sales and marketing,
Hyundai Auto Canada Corp.  "So far in 2008, we've outsold some
of our toughest competition, we've sold our one millionth
vehicle, we've recorded back-to-back record-breaking months of
sales, and thanks to our Anniversary Pricing, we are running out
of 2008, product faster than we planned. We are delighted to see
Canadians taking advantage of our great products and unbeatable
prices."

    May Sales highlights:

    -   9,508 vehicles sold nationally, beating previous record
        by 96 units or 1%

    -   Accent reports best month in history with 4,182 units
        sold, more than double May 2007 results

    -   Tiburon sales increase over 28% compared to May, 2007

    -   Increase of over 10% in Veracruz sales compared to May,
        2007

    -   Overall sales increase of 22.3% year over year

    -   Calendar year to date sales up 16% over 2007

                    About Hyundai Auto

Hyundai Auto Canada Corp., a subsidiary of Hyundai Motor Company
of Korea established in 1983 and headquartered in Markham,
Ontario, is celebrating its 25th anniversary in Canada.  Hyundai
vehicles are distributed throughout Canada by Hyundai Auto
Canada and are sold and serviced through more than 165
dealerships nationwide.

                   About Hyundai Motor

Headquartered in Seoul, South Korea, Hyundai Motor Company
-- http://www.hyundai-motor.com/-- has been selling cars in the
US since 1986, but it only started selling its heavy trucks
stateside in 1998.  Hyundai produces 14 models of cars, SUVs,
and minivans, as well as trucks, buses, and other commercial
vehicles.  The company reestablished itself as South Korea's
leading carmaker in 1998 by acquiring a 51% stake in Kia Motors
(since reduced to about 43%).  Hyundai's models for the North
American market include the Accent and Sonata; models sold
elsewhere include the GRD and Equus.  The company also
manufactures machine tools for factory automation and material-
handling equipment.

The Troubled Company Reporter-Asia Pacific reported that the
Hyundai Automotive Group is facing its deepest crisis since
chairman Chung Mong-koo took over in 1999, with problems like
the falling United States dollar, high oil prices and union
demands aggravated by a sweeping criminal investigation
regarding the carmaker's alleged creation of slush funds that
were used by at least two lobbyists to bribe government
officials for business favors, including having KRW55 billion of
Hyundai's bad debts written off.

Chairman Chung was indicted early in May 2006 for fraud charges.

Some of the group's official business has been on hold since the
probe on the slush fund started and several top executives were
summoned for questioning.

On Feb. 5, 2007, a South Korean court handed down the sentence
to Mr. Chung for illegally raising US$110 million in slush funds
and bribing government officials.  Mr. Chung was released on
bond and continues to run the auto conglomerate.

In May 2008, Yonhap News reported that a group of the company's
shareholders filed a civil case against Mr. Chung to claim
damages for heavy losses allegedly suffered through his
mismanagement and other corporate shenanigans.

According to the report, the shareholders, led by a civic group
called Solidarity for Economic Reform, filed the lawsuit with
the Seoul Central District Court, asking Mr. Chung to pay
KRW563 billion (US$537 million) in damages to Hyundai Motor.

The lawsuit came a day after prosecutors again demanded a six-
year jail term for Mr. Chung for embezzlement and breach of
trust, Yonhap said.



===============
M A L A Y S I A
===============

LIQUA HEALTH: Names Encik Kamarul Arifin Bin Ahmad as President
---------------------------------------------------------------
Encik Kamarul Arifin Bin Ahmad was appointed as the president of
Liqua Health Corporation Berhad effective on June 2, 2008.

Mr. Encik Kamarul's previous working posts include positions
with logistics and food distribution companies, mainly in supply
chain management.

Moreover, Azihani Binti Dato' Ali was appointed as the company's
chairman.  She replaces Ahmad Fuad Bin Abdul Wahab who was
redesignated to the company's Deputy Chairman position.

Liqua Health Corporation Berhad is principally engaged in the
businesses of investment holding and provision of management
services.  Its core business is direct selling of health food
and related products, through its subsidiaries.  Liqua Health
and Liqua Spirulina are the two core health products of the
company.  The company�s subsidiaries include Liqua Health
Marketing (M) Sdn. Bhd., which is engaged in direct selling of
health food and general merchandise; Packcon (Asia) Sdn. Bhd,
which is engaged in marketing packaging materials and general
trading; Liqua Biotech Sdn. Bhd formerly known as Liqua Heath
Dairy Marketing & Supplies Sdn. Bhd.), which is engaged in
research and development; Quantum Healing Centre Sdn. Bhd
(dormant), which is engaged in the trading and marketing of
health food and general merchandise.  In February 2007, Liqua
Health Marketing acquired the remaining 51% interest in Liqua
Health Chain.

                         *     *     *

The company was classified as an Affected Listed Issuer as it
has triggered Paragraph 2.1 of the Amended PN17 as the
consolidated shareholders' fund has dropped to approximately
MYR5.9 million which is below the 25% of the paid-up share
capital which stands at MYR144.3 million and the minimum issued
and paid up capital of MYR60 million required under paragraph
8.16A(1) of the Listing Requirements.


LIQUA HEALTH: To Hold Seventh Annual Meeting on June 26
-------------------------------------------------------
Liqua Health Corporation Berhad will hold its seventh annual
general meeting at 9.30 a.m. on June 26, 2008, at Angsana Room,
2nd Floor, Perangsang Templer Golf Club, No.1, in Templer Park
Resort, 48000 Rawang, Selangor Darul Ehsan.

At the meeting, the members will be asked to:

   -- receive the Audited Financial Statements for the financial
      year ended December 31, 2007, and the Reports of Directors
      and Auditors thereon;

   -- approve the payment of Directors’ fees;

   -- re-elect these Directors retiring in accordance with
      Article 91 of the Company’s Articles of Association:

   (a) Ahmad Fuad Bin Abdul Wahab;
   (b) Rohaya Binti Hashim;
   (c) Goh Song Leong;
   (d) Ahmad Feisal Bin Ahmad Tajuddin;
   (e) Nur Zarina Binti Ghazali; and
   (f) Mohd Zahir Bin Zahur Hussain

   -- re-appoint Messrs. Horwath as the company's Auditors and
      to authorise the Directors to determine their
      remuneration

Liqua Health Corporation Berhad is principally engaged in the
businesses of investment holding and provision of management
services.  Its core business is direct selling of health food
and related products, through its subsidiaries.  Liqua Health
and Liqua Spirulina are the two core health products of the
company.  The company�s subsidiaries include Liqua Health
Marketing (M) Sdn. Bhd., which is engaged in direct selling of
health food and general merchandise; Packcon (Asia) Sdn. Bhd,
which is engaged in marketing packaging materials and general
trading; Liqua Biotech Sdn. Bhd formerly known as Liqua Heath
Dairy Marketing & Supplies Sdn. Bhd.), which is engaged in
research and development; Quantum Healing Centre Sdn. Bhd
(dormant), which is engaged in the trading and marketing of
health food and general merchandise.  In February 2007, Liqua
Health Marketing acquired the remaining 51% interest in Liqua
Health Chain.

                         *     *     *

The company was classified as an Affected Listed Issuer as it
has triggered Paragraph 2.1 of the Amended PN17 as the
consolidated shareholders' fund has dropped to approximately
MYR5.9 million which is below the 25% of the paid-up share
capital which stands at MYR144.3 million and the minimum issued
and paid up capital of MYR60 million required under paragraph
8.16A(1) of the Listing Requirements.


MERGE ENERGY: To Hold 11th Annual Meeting on June 26
----------------------------------------------------
Merge Energy Bhd. will hold its 11th Annual General Meeting at
10:00 a.m. on June 26, 2008, at Putra Room, 1st Floor, Kelab
Golf Sultan Abdul Aziz Shah, No. 1 Rumah Kelab, in Jalan Kelab
Golf 13/6, 40100 Shah Alam, Selangor Darul Ehsan.

At the meeting, the members will be asked to:

   -- receive the company's Audited Financial Statements for the
      financial year ended January 31, 2008, together with the
      Reports of the Directors and Auditors thereon;

   -- approve the payment of Directors’ fees for the financial
      year ended January 31, 2008;

   -- re-elect these Directors retiring pursuant to Article 105
      of the Company’s Articles of Association; and

   (a) Dato’ Muhammad Azaham bin Abdul Wahab; and
   (b) Dr Mohd Soib bin Mustakim.

   -- appoint Messrs. Baker Tilly Monteiro Heng as the company's
      Auditors and to authorise the Directors to fix their
      remuneration.

                        About Merge Energy

Merge Energy Berhad's principal activities involve building
construction, structural, infrastructure and civil engineering
works.  Other activity includes property investment and
investment holding.  Operations of the company are carried out
predominantly in Malaysia.

On May 8, 2006, the company was classified as an affected listed
issuer pursuant to the Amended Practice Note No. 17/2005 whereby
the company's shareholders' equity on consolidated basis is less
than 25% of its issued and paid-up share capital of MYR67.00
million.


SELOGA HOLDINGS: To Hold 12th Annual Meeting on June 23
-------------------------------------------------------
Seloga Holdings Berhad will hold its 12th annual meeting at
10:00 a.m. on June 23, 2008, at Sheraton Subang Hotel & Towers,
Subang 1, in Jalan SS12/1, 47500 Subang Jaya, Selangor Darul
Ehsan.

At the meeting, the members will be asked to:

   -- receive the audited Financial Statements for the financial
      year ended December 31, 2007, and the reports of the
      Directors and Auditors;

   -- re-elect Dato' Lim Git Hooi@ Robert Lim retiring in
      accordance with Article 87 of the Company's Articles of
      Association:

   -- re-elect these Directors retiring in accordance with
      Article 93 of Company's Articles of Association:

   (a) Dato' samsudin Bin Abu Hassan;
   (b) Encik Anuar Bin Adam; and
   (c) Encik Aldillan Bin Anuar

   -- re-appoint Messrs. SJ Grant Thornton as the company's
      Auditors and authorize the Directors to determine their
      renumeration.


   -- subject to the Companies Act, 1965, the Memorandum and
      Articles of Association of the company and the Listing
      Requirements of the Bursa Malaysia Securities Berhad,
      approval will be given to the company and its subsidiaries
      to enter into all transactions involving the Related
      Parties as specified in Section 2.2.2. of the
      Shareholders' Circular dated May 30, 2008, provided that
      transactions are:

   (a) recurrent transactions of a revenue or trading nature;
   (b) necessary for the day-to-day operations;
   (c) carried out in the ordinary course of business on normal
       commercial terms which are not more favorable to the
       related parties than those generally available to the
       public; and
   (d) are not detriment to the minority shareholders

Headquartered in Selangor Darul Ehsan, Malaysia, Seloga Holdings
Berhad's -- http://www.seloga.com.my/-- principal activities
are the provision of civil engineering contracting services,
property development, provision of insurance agency services and
investment holding.  Other activities include mechanical and
electrical engineering contracting services and manufacture of
timber moldings.  The Group operates predominantly in Malaysia.

                         *     *     *

The company is currently classified under the PN-17 list of
Companies under the Bursa Malaysia Securities Bhd.


SYARIKAT KAYU: Names Hoe Thean Sun as Member of Audit Committee
---------------------------------------------------------------
Hoe Thean Sun was appointed as a member of Syarikat Kayu Wangi
Berhad's Audit Committee.

On the other hand, Khalid Bin Sufat quit his position as the
member of the company's Audit Committe.

Thus, the company's Audit Committe composes now of:

   * Yap Soon Hin – Chairman;
   * Cheng Lai Hock – Member; and
   * Hoe Thean Sun – Member

Headquartered in Johor, Malaysia, Syarikat Kayu Wangi Berhad is
principally involved in the development of residential and
commercial projects.  Its other activities include housing
construction, production of sawn timber, manufacture of
prefabricated timber rooftrusses and timber trading.  The
Company first made a loss in 1999 when it defaulted on its first
bond payment.  The Company has failed to turn its finances
around and has been suffering continuous losses since then.

The company was classified as an affected listed issuer of the
Amended PN17/2005 on May 8, 2006, since its latest audited
financial statements for the year ended Nov. 30, 2005, showed
that the company's shareholders' equity is MYR7,189,000, which
is less than 25% of the company's issued and paid up capital.

Syarikat Kayu is currently in the process of preparing its
Regularization Plan.  Once completed, the Requisite Announcement
outlining the Regularization Plan will be made to the Bursa
Securities.


TECHVENTURE BERHAD: To Hold 15th Annual Meeting on June 26
----------------------------------------------------------
Techventure Berhad will hold its 15th annual general meeting at
10:00 a.m., on June 26, 2008, at the Perdana Ballroom, Bukit
Kiara Equestrian & Country Resort, Jalan Bukit Kiara, in Off
Jalan Damansara, 60000 Kuala Lumpur.

At the meeting, the members will be asked to:

   -- receive the Audited Financial Statements for the year
      ended December 31, 2007, together with the Reports of the
      Directors and the Auditors thereon;

   -- approve the Directors’ fees of MYR216,000.00
      (2006: MYR216,000) in respect of the year ended Dec. 31,
       2007;


   -- re-elect some Directors who retire pursuant to Article
      100(1) of the Company’s Articles of Association and, being
      eligible, offer themselves for re-election;

   -- appoint Messrs. Sha, Tan & Co. as the company's Auditors
      in place of the retiring Auditors, Messrs. Leou &
      Associates and to authorise the Directors to fix their
      remuneration.

Techventure Berhad is based in Selangor, Malaysia. Apart from
being a corrugated cartons manufacturer, the Group is also
involved in the production of rubber insulation materials and
roto-molded plastic products like septic tanks, playground
equipment, traffic barriers, and water tanks. It markets its
entire corrugated cartons and plastic products locally while
about 80% of the rubber insulation materials are exported. In
addition, the Group also manufactures ice cream.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on May 10,
2006, that Bursa Malaysia Securities Berhad identified
Techventure Berhad as an affected listed issuer having triggered
two of the criteria of the Amended Practice Note 17 category.

The company fell under the category because:

-- the auditors have expressed a modified opinion with
   emphasis on Techven's going concern status in the latest
   audited accounts for the financial year ended Dec. 31, 2005,
   and

-- there are defaults in payment by Techven and its major
   subsidiaries as announced pursuant to Practice Note
   No. 1 and Techven is unable to provide a solvency
   declaration to Bursa Malaysia Securities Berhad.


WEMBLEY INDUSTRIES: To Hold 32nd Annual Meeting on June 26
----------------------------------------------------------
Wembley Industries Holdings Berhad will hold its 32nd annual
meeting at 11:30 a.m. on June 26, 2008, at the Conference Room,
Lobby Floor, Lot 5428-5429, Block 16, KCLD, in Lorong Lapangan
Terbang Baru 1, 93350 Kuching, Sarawak.

At the meeting, the members will be asked to:

   -- receive the Audited Financial Statements for the year
      ended December 31, 2007, together with the Reports of the
      Directors and Auditors thereon;

   -- approve the payment of Directors’ Remuneration for the
      year ended December 31, 2007;

   -- re-elect Mr. Liew Chie Chung who retires in accordance
      with Article 91 of the Company’s Articles of Association
      and being eligible, has offered himself for re-election;

   -- consider and, if thought fit, to pass this resolution
      pursuant to Section 129(6) of the Companies Act, 1965; and

   (a) that pursuant to Section 129(6) of the Companies Act,
       1965, Dato’ Mohammed Shukor bin Hj Abdullah, who has
       exceeded the age of seventy years, be re-appointed as
       the company's Director and to hold office until the
       conclusion of the next Annual General Meeting.

   -- re-appoint Messrs. Ernst & Young as the company's Auditors
      until the conclusion of the next Annual General Meeting
      and to authorise the Directors to fix their remuneration.

Headquartered in Petaling Jaya, Malaysia, Sunway Infrastructure
Berhad -- http://www.sunway.com.my/-- is an investment holding
company in Malaysia.  The Company's wholly owned subsidiary,
Sistem Lingkaran-Lebuhraya Kajang Sdn. Bhd. (SILK), is
responsible for the construction of the Kajang Traffic Dispersal
Ring Road.  Silk's activities are the upgrading and widening of
existing roads; the design and construction of a new alignment,
and the operation of the Kajang Traffic Dispersal Ring Road,
including toll operations and maintenance.  Through SILK, the
Company owned Salient Million Sdn. Bhd. Salient Million Sdn. Bhd
mainly focuses on undertaking housing development for residents
whose dwellings are located on the land, on which the Kajang
Traffic Dispersal Ring Road is constructed or who are affected
by the construction of the Kajang Traffic Dispersal ring road.
On November 22, 2005, SILK disposed of Salient Million Sdn. Bhd.

The company is an affected listed issuer pursuant to the Amended
PN17 since its auditors have expressed a modified opinion with
emphasis on the company's going concern in the company's audited
financial statements for the year ended June 30, 2006, and since
the unaudited shareholders' equity of approximately MYR26.702
million based on its quarterly results for the period ended
September 30, 2006, is less than 50% of its issued and paid up
capital of MYR90 million.

In addition, the Troubled Company Reporter-Asia Pacific
reported on March 20, 2007, that its shareholders' equity on a
consolidated basis based on the unaudited results for the
quarter ended Dec. 31, 2006, of MYR7.173 million, is less than
25% of the company's issued and paid-up capital of MYR90 million
and such shareholders' equity is less than the minimum issued
and paid-up capital as required under Paragraph 8.16A(1)
of the Listing Requirements of MYR60 million, triggering another
listing criteria under Amended PN17 listing requirements.



====================
N E W  Z E A L A N D
====================

AIR NEW ZEALAND: Targets 10% Annual Fuel Use by 2013
----------------------------------------------------
Air New Zealand Ltd. targets at least 10% of its annual fuel
needs from biofuels by 2013, various reports say.

As reported by the Troubled Company Reporter - Asia Pacific on
June 3, 2008, the airline is accelerating its research process
for the use of biofuels as alternative for jetfule as means to
cut cost.  The airline previously started the research as part
of its "green" image, however, skyrocketing fuel prices have led
the company to hasten the project.

Deputy Chief Executive Norm Thompson said the airline will use
the second generation biofuel, Jatropha, as the chosen biofuel
for the test flight at Auckland Airport later this year.

The development of a substitute fuel source has been a
cooperative process between Air New Zealand, Boeing and
Rolls Royce.

"Jatropha satisfies all our criteria and furthermore it is
likely to be available in the necessary commercial quantities to
meet our needs within five years,"  The National Business Review
cited Chief Executive Officer Rob Fye as saying.

The National relates that Mr. Fye said the challenge in the next
phase is to develop a robust supply chain model and they are
quite open to working with like-minded partners, including the
New Zealand Government, on the development of refinery and
delivery opportunities.

Moreover, Mr. Fye, Bloomberg News relates, said that the
development of alternative fuels is accelerating and the company
expects to be using at least one million barrels of it a year by
2013.

According to Bloomberg, Air New Zealand promotes the country's
clean environmental image to fill international services that
account for about two-thirds of its revenue.  It is buying fuel-
efficient jetliners to cut emissions and fuel costs and earlier
this year offered customers carbon credits to offset pollution
from their travel, Bloomberg says.

The airline said its programme of emissions savings had resulted
in a reduction of 91,000 tonnes of carbon dioxide in the past
three years, Adrian Bathgate of Reuters reports.

                     About Air New Zealand

Based in Auckland, New Zealand, Air New Zealand Ltd is the
country's flag air carrier, with domestic and international
passenger and freight operations, and an aviation engineering
business.  Air New Zealand flies to the United States, United
Kingdom, Canada, Europe and other Asian cities.

                          *     *     *

Moody's Investors Service, on Sept. 4, 2007, affirmed Air New
Zealand Limited's Ba1 senior unsecured issuer rating.  At the
same time, it has changed the outlook on the rating to positive
from stable.

ANZ carries Standard & Poor's Ratings Services' 'BB' corporate
credit rating, with stable outlook.


B.K & F.S: Claims Filing Deadline is June 16
--------------------------------------------
The liquidators of B.K & F.S Silver Limited (trading as
Guthrie Bowron Takanini) fixed June 16, 2008, as the last
day for creditors of the company to make their claims
and to establish any priority their claims may have.

Jeffrey Philip Meltzer and Karen Betty Mason, insolvency
practitioners, were appointed as joint and several
liquidators of B.K & F.S Silver Limited on May 13, 2008.

They can be reached at:

          Meltzer Mason Heath
          Chartered Accountants
          Attn: Rachel Mason
          PO Box 6302, Wellesley Street,
          Auckland 1141 New Zealand
          Telephone: (09) 357 6150
          Facsimile: (09) 357 6152.


CARROLL LOGGING: Creditors Have Until June 27 to File Claims
------------------------------------------------------------
The liquidators of Carroll Logging Limited fixed Friday,
June 27, 2008, as the last day for creditors to prove their
debts or claims and to establish any title they may have.

Peri Micaela Finnigan and Boris van Delden, insolvency
practitioners of Auckland, appointed on May 15,
2008, by the shareholders of Carroll Logging Limited,
can be reached at:

          PERI FINNIGAN
          McDonald Vague, PO Box 6092,
          Wellesley Street Post Office,
          Auckland, New Zealand
          Telephone: (09) 303 0506
          Facsimile: (09) 303 0508


EIGHT WALLACE: Court Sets June 27 Liquidation Hearing
-----------------------------------------------------
On April 9, 2008, an application for putting Eight
Wallace Holdings Limited into liquidation by the High
Court was filed in the High Court at Auckland.

The application is to be heard before the High Court
at Auckland on Friday, June 27, 2008 at 10:45 a.m.

Any person, other than the defendant company, who
wishes to appear on the hearing of the application
must file an appearance not later than the second
working day before that day.

The plaintiff, the Commissioner of Inland Revenue,
can be reached through Michael Kinlim Yan, solicitor,
at:

          Inland Revenue Department
          Legal and Technical Services
          5-7 Byron Avenue (PO Box 33150)
          Takapuna, Auckland
          Telephone: (09) 984 1514
          Facsimile: (09) 984 3116.


JOSEPH PRODUCTIONS: Liquidation Hearing Set on June 27
------------------------------------------------------
On April 2, 2008, an application for putting Joseph
Productions No 20 Limited into liquidation by the High
Court was filed in the High Court at Auckland.

The application is to be heard before the High Court
at Auckland on Friday, June 27, 2008 at 10:00 a.m.

Any person, other than the defendant company, who wishes
to appear on the hearing of the application must file
an appearance not later than the second working day before
that day.

The plaintiff, the Commissioner of Inland Revenue,
can be reached through Michael Kinlim Yan, solicitor,
at:

          Inland Revenue Department
          Legal and Technical Services
          5-7 Byron Avenue (PO Box 33150)
          Takapuna, Auckland
          Telephone: (09) 984 1514
          Facsimile: (09) 984 3116.


PHOENIX PARK: Liquidator Sets June 20 Claims Bar Date
-----------------------------------------------------
The liquidator of Phoenix Park Farm Limited fixed June 20,
2008, as the last day for creditors of the company to
make their claims and to establish any priority their
claims may have under section 312 of the Companies Act 1993.

Hamish John Pryde, of Brumby Simpson Partners Limited,
Chartered Accountants, Palmerston North, was appointed
liquidator of Phoenix Park Farm Limited by special
resolution of the company's shareholders on May 12, 2008.

The liquidator can be reached at:

          HAMISH PRYDE
          Brumby Simpson Partners Limited
          PO Box 1245, Palmerston North
          Telephone: (06) 356 4808
          Facsimile: (06) 356 8525


SEALEGS CORP: Posts NZ$1.7MM Deficit for Year Ended March 31
------------------------------------------------------------
Sealegs Corporation Limited posted total deficit of NZ$1.7
million for the year ended March 31, 2008, compared with NZ$1.05
million for the same period last year, CEO David McKee Wright
says was attributable to the newly adopted International
Financial Reporting Standards (IFRS) which require staff share
options to be valued and expensed.

Due to the grant date of the options and the period of share
trading at that time (July 2007) the options expense valued up
to in excess of NZ$4 million, which needs to be recorded over
the vesting period.  Should the scheme be valued at today’s
market values, then the expense would be half of what has
actually been recorded.  Timing and an inequitable accounting
standard (IFRS) will mean the next three years of operating
profit will have a theoretical expense booked against it.  This
expense will not affect cash flow.

The company reported operating revenue for the full year of
NZ$9.6 million, an increase of 92% on last year’s figure of
NZ$5 million.  Operating deficit (before options expense) for
the year was $278,000 compared with NZ$976,000 for the previous
year – a 72% improvement.

Mr. Wright said he was most happy with the fact the company had
doubled its staff, taken on another 1000 sq meter factory,
delivered 112 boats and was within 3% of profit breakeven
(before options expense).

Mr. Wright reported that the company found shipping 112 boats
and revenues of NZ$9.6 million provides sufficient margin to
market, develop and support the Sealegs business model.  "Sales
beyond these numbers should provide profits that will vary
according to how fast the company develops new markets, new
products and sales territories," he said.

The board and management of Sealegs intend to continue to grow
the business at a controlled rate in line with the projections
included in this release.  At this rate, the company is
confident of achieving the targeted margins and not compromising
the quality of product that Sealegs is renowned for.

A second 1000 sq meter factory has recently come on-line which
is dedicated to the fabrication of hulls.  The new factory and
the investment around it will ensure the consistent supply of
hulls to the high quality Sealegs expects, thus speeding up the
time to market and lowering the cost of new model development.

The business plan for 2009 provides for an investment in
development of up to NZ$1.3 million for the year ending 31st
March 2009.  This investment will be capitalized in accordance
with the company’s development policy and amortized over the
period of expected benefit of the new development.  This
development will go into the design of new models, improved
technology, new accessories and market led initiatives.

Sealegs enters its new financial year with orders for 102 boats
already pre-sold, representing approximately NZ$10 million in
future revenue and is ramping up to invest in development by
next financial year.

The company is expecting to grow revenue to NZ$18 million by
this time next year lifting to NZ$35 million by March 2011.
Based on a growing order book, a larger work force and increased
controls over the production processes; as successfully achieved
in previous years, the targets seem realistic and achievable.

                   About Sealegs Corporation

Headquartered in Albany, New Zealand, Sealegs Corporation
Limited -- http://www.sealegs.com/-- is engaged in the
manufacture of amphibious marine craft.  The company's wholly
owned subsidiaries are Sealegs International Limited, Sealegs
Middle East Limited, and Sealegs Australia Pty Limited.  Sealegs
International Limited manufactures amphibious marine craft.

Sealegs Middle East Limited and Sealegs Australia Pty Limited
are dormant.  Sealegs are motorized, retractable and steerable
boat wheels, which are fitted to a customized 5.6-meter rigid
inflatable boat.  Sealegs amphibious boats are used by customers
in New Zealand, Australia, the United States, the United Arab
Emirates, France and the United Kingdom.

The group and parent posted consecutive net deficits after
taxation for the years ended March 31, 2006, and 2005, with the
group suffering net losses of NZ$1,211,061 and NZ$1,063,354 for
2006 and 2005 (company: NZ$209,582 and NZ$3,575,464),
respectively.  In FY2007, the company booked a net loss of
NZ$1.05 million.



=====================
P H I L I P P I N E S
=====================

MANILA ELECTRIC: Tags GSIS' Accusation as 'Irresponsible'
--------------------------------------------------------
In a filing with the Philippine Stock Exchange, the Manila
Electric Company branded the statement of GSIS spokesperson as
'irresponsible' after she accused Meralco of admitting before
the Congress that Meralco committed highway robbery.

Meralco Vice President for Corporate Communication Elpi Cuna
said, " No such admission was made by the company.  We have
nothing of that sort to admit.  It is not true that Meralco
engages in "highway robbery".  If she would just look at the
cost of power from our different suppliers, transmission costs
included, she would see that Meralco's independent power
producers provide our customers low rates, especially if they
are dispatched at contract or Minimum Energy Quantity levels".

Mr. Cuna added, " On the issue of ghost power deliveries', may I
suggets that Atty. Elamparo study the facts first before simply
repeating the accusations of some congressman".  Mr. Cuna
pointed out the fact that the period from Nov. 2000 to
December 2001 when the alleged "ghost deliveries" were made, was
covered by a Letter of Agreement (LOA) between NPC and Meralco.
The LOA was the solution offered by the Department of Energy and
NPC to address the issue of "access to NPC's transmission
system" and in order to provide the "least cost to the
consumers".  Under the LOA, NPC will not dispatch the First Gas
Sta. Rita plant unless extremely necessary and instead, the
energy that Meralco would need from Sta. Rita would be supplied
by NPC at a discounted rate.

Since the plant's full 1000 MW capacity was already available by
August 17, 2000, per the contract, the fixed cost payments to
Sta. Rita would have to be paid, thus fixed cost payments of
PHP9.58 billion.  Energy fees, based on actual dispatch by NPC
of Sta. Rita, of PHP3.34 billion were also paid to First Gas.
"As a lawyer, Atty. Elamparo should be familiar with the terms
of these IPP contracts, either entered into by NPC or by the
distribution utilities like Meralco, which ERB approved and
which ERC, subsequently, in an Order dated February 24, 2003,
found no "valid reasons nor legal basis to invalidate",
continued Mr. Cuna.

He added, "Our customers can rest assured that all the company's
dealings are aboveboard.  Meralco has even recently received an
award from the Institute of Corporate Directors citing the
company for good governance."

Cuna added that as attested by the awards received by Meralco,
the company cannot be judged as a mismanaged corporation.  He
stressed that Meralco has been keen on abiding by the rules and
regulations set by R.A. 9136 or Electric Power Industry Reform
Act of 2001 (EPIRA) and by the Energy Regulatory Commission.

                    About Manila Electric Co.

Headquartered in Ortigas, Pasig City, the Manila Electric
Company aka Meralco -- http://www.meralco.com.ph/-- is
engaged in the distribution and sale of electric energy through
its distribution network facilities in its franchise area.  The
franchise area of Meralco covers specific areas in Luzon,
consisting of 25 cities and 86 municipalities, with a size
of approximately 9,337 square kilometers.  This includes
Metro Manila, industrial estates and urban and suburban areas
of adjacent provinces.  The principal sources of power of
Meralco include the National Power Corporation, First Gas Power,
Quezon Power and the Wholesale Electricity Spot Market.

Meralco's subsidiaries are Meralco Industrial Engineering
Services Corporation, Corporate Information Solutions Inc.,
Rockwell Land Corporation, Meralco Energy Inc., e-Meralco
Ventures Inc., and Meralco Financial Services Corporation.
These companies are engaged in various businesses such as
engineering and construction services, information technology
services, integrated business solutions and property
development.

                         *     *     *

The Troubled Company Reporter-Asia Pacific reported on
Dec. 14, 2007, that Standard & Poor's Ratings Services revised
the outlook on its ratings on Meralco to stable from negative.
The 'B-' long-term issuer credit rating on Meralco was affirmed.


* S&P Affirms Philippines' B Short-Term Currency Ratings
--------------------------------------------------------
Standard & Poor's Ratings Services said that its '3' recovery
rating (representing 50%-70% recovery in net present value
terms) on the Republic of Philippines' foreign currency debt
remained unchanged following the government's second issuance of
debt-exchange warrants. At the same time, Standard & Poor's
affirmed its 'BB-' long-term foreign currency and issue level
ratings, its 'BB+' long-term local currency rating, and its 'B'
short-term foreign and local currency sovereign ratings on
the Philippines. In addition, the 'BB+' transfer and
convertibility assessment on the sovereign is affirmed. The
outlook on both the foreign and local currency ratings is
stable.

The new debt-exchange warrants being issued by the Philippine
government have a notional amount of US$2.25 billion. These
warrants refer to eligible foreign currency bonds maturing
between 2017 and 2032, amounting to a face value of US$10
billion. They follow an initial issue in February 2008 of
warrants with a notional amount of US$2 billion referring to
eligible foreign currency bonds with a face value of US$11
billion, with tenors up to 10 years.

In the event of a government default on the eligible bonds, the
warrants grant the right, but not the obligation, to exchange
the defaulted foreign currency bond against a local currency
government bond at the currency exchange rate prevailing post-
default.

"We do not believe that the issuance of these debt-exchange
warrants, in their current volume, provides an incentive for the
government to offer different terms on default on eligible
foreign currency bonds that are not paired with a warrant versus
ineligible foreign currency government bonds," said Standard &
Poor's credit analyst Christian Esters. "Should issuance of
debt-exchange warrants increase to more significant levels,
however, Standard & Poor's would consider that the foreign
currency recovery prospects could be harmed, particularly on
those eligible bonds that are not paired with a warrant."

Under a foreign currency default scenario in which many of the
debt exchange warrants are exercised, the government's
incentives to offer restructuring terms with high recovery
values to creditors of the rump foreign currency debt might be
diminished below a level consistent with a '3' recovery
rating.



===========
T A I W A N
===========

CHANG HWA BANK: Moody's Changes Outlook on D BFSR to Stable
-----------------------------------------------------------
Moody's Investors Service has changed to stable from positive
the outlook of Chang Hwa Commercial Bank's (CHCB) D bank
financial strength rating (BFSR). The bank's D BFSR and A3
foreign currency deposit rating remain unchanged. At the same
time, A3/Prime-1 local currency long-term/short-term deposit
ratings are assigned. The outlook for all ratings is stable.

"The change in outlook reflects ongoing uncertainty -- evident
for the last 2.5 years -- over whether Taishin International
Bank (TIB) will finally merge with Chang Hwa Commercial Bank,"
says Cherry Huang, a Moody's VP/Senior Analyst. TIB is part of
Taishin Financial Holding Company (TFHC).

So far, TFHC has yet reached an agreement with the government,
the second largest owner of CHCB, on a share-swap proposal. A
change in government in May has further heightened the
uncertainty surrounding the proposed merger.

Moody's had originally changed to positive from stable the
outlook for CHCB's BFSR in 2005, or when TFHC announced a
strategic investment in the bank. In addition, TFHC said at the
time that it would pursue a full merger between TIB, one of its
subsidiaries, and CHCB.

"Moreover, CHCB's D BFSR remains unchanged, reflecting the
bank's significant franchise, but relatively moderate and still
only slowly improving credit fundamentals," says Huang.

"Profitability and asset quality have both improved over the
last few years and following significant write-offs in 2005,"
says Huang. "But it remains to be seen whether the bank's
earnings momentum and low non-performing loan ratio (less than
2% as of March) will prove sustainable."

"A certain portion of the bank's earnings derive from bad debt
recovery gains, and which are non-recurring in nature," adds
Huang.

Meanwhile, the satisfactory state of CHCB's asset quality is
underpinned by the benign credit cycle prevalent in both the
corporate sector and mortgages.

Since 2005, the bank has implemented a new risk management
structure which aims to comply with Basel II; however, the
effectiveness of this new infrastructure will require a
transition period before it is able to foster a risk-based
pricing mechanism and so help the bank weather any economic
down-cycle.

Chang Hwa Commercial Bank was Taiwan's eighth largest bank by
total assets as of end-March, 2008. Until Taishin Financial
Holding Company successfully bid for 1.4 billion of its
preferred shares (equivalent to 22.5% ownership) in 2005, it was
entirely government-controlled. It reported assets of NTD1.3
trillion (USD42.9 billion) at end-2007.

Updated Rating List:

   Long-term Local/Foreign Currency Bank Deposits -- A3

   Short-term Local/Foreign Currency Bank Deposits -- Prime-1

   Bank Financial Strength Rating -- D

   Long-Term/Short-Term Taiwan National Scale Deposit Ratings
   -— Aa2.tw/TW-1

   The outlook for all ratings is stable.


TAISHIN FINANCIAL: Moody's Holds Unit's D+ BFSR; Outlook Stable
---------------------------------------------------------------
Moody's Investors Service has changed to stable from positive
the outlook for the Baa3 issuer rating of Taishin Financial
Holding Company (TFHC) and the Baa1 deposit rating of its
subsidiary, Taishin International Bank (TIB).

"The change in outlook reflects ongoing uncertainty -- evident
for the last 2.5 years -- over whether TIB will finally merge
with Chang Hwa Commercial Bank (CHCB)," says Cherry Huang, a
Moody's VP/Senior Analyst.

So far, TFHC has yet reached an agreement with the government,
the second largest owner of CHCB, on a share-swap proposal. A
change in government in May has further heightened the
uncertainty surrounding the proposed merger.

Moody's had originally changed the outlook to positive from
stable for the issuer rating of TFHC and deposit ratings of TIB
in 2005 when TFHC announced a strategic investment in CHCB.

In addition, TFHC said at the time that it would pursue a full
merger between TIB and CHCB.

Meanwhile, TIB's D+ BFSR remains unchanged with stable outlook,
reflecting the gradual rebuilding of its capital position in the
aftermath of Taiwan's card crisis of 2006.

The D+ rating also reflects the bank's modest but swiftly
evolving franchise, as evident in its aggressive growth strategy
in the area of consumer finance. While its non-card core
earnings have helped alleviate the burden accruing from its card
losses, a renewed deterioration of earnings power or evidence of
unreasonable risk-rewarded return may warrant a rating review.

TFHC is a bank-dominated financial group and it controls six
operating subsidiaries: TIB, Taishin Securities Company, Taishin
Bills Finance, Taishin Asset Management Ltd, Taishin Marketing
Consulting Company Ltd, and Taishin Venture Capital Company Ltd.

TFHC spent NTD36.5 billion to acquire 1.4 billion of CHCB's
preferred shares, or 22.5% ownership, in 2005, and which
increased to 25% during 2006 with regulatory approval.

As TIB suffered substantial card losses in 2006 and failed to
meet the capital requirement of 10% BIS (against a legal minimum
of 8%) at TIB and 105% CAR (against a legal minimum of 100%) at
TFHC, TFHC reduced its ownership in CHCB to 22.5% from 25% in
1H2007. However, TFHC is still the largest shareholder of CHCB.

Both Taishin Financial Holding Company and Taishin International
Bank are headquartered in Taipei, Taiwan. On a consolidated
basis, the holding company reported assets of NTD2.3 trillion
(USD72.1 billion) and the bank NTD893.6 billion (USD27.5
billion) at end-2007.

Updated Rating List:

   * Taishin Financial Holding Company:

        Long-term Issuer Rating -- Baa3

        Long-Term Taiwan National Scale Deposit Ratings -- A2.tw

        Local Currency Subordinated Debt Taiwan National Scale
        Rating -- Baa1.tw

        The outlook for all ratings is stable.

   * Taishin International Bank:

        Long-term Local/Foreign Currency Bank Deposits -- Baa1

        Long-term Foreign Currency Issuer Rating -- Baa1

        Short-term Local/Foreign Currency Bank Deposits --
        Prime-2

        Bank Financial Strength Rating -- D+

        Long-Term/Short-Term Taiwan National Scale Deposit
        Ratings -- Aa3.tw/TW-1

        The outlook for all ratings is stable.



=============
V I E T N A M
=============

ASIA COMMERCIAL: Moody's Changes Outlook to Negative
----------------------------------------------------
Moody's Investors Service has revised to negative from positive
the rating outlooks for the B1 foreign currency deposits of
three Vietnamese banks. The three banks are the Bank for
Investment & Development of Vietnam ("BIDV"), Asia Commercial
Bank ("ACB") and Vietnam Technological and Commercial Joint
Stock Bank ("Techcombank").

"The move follows the revision of the outlook for the country's
B1 foreign currency deposit ceiling to negative from positive,"
says Karolyn Seet, a Moody's AVP/Analyst.

BIDV's foreign currency deposits are rated at the B1 sovereign
ceiling due to the bank's state ownership. Its bank financial
strength rating (BFSR) is E+.

ACB's foreign currency deposit rating is constrained by the B1
sovereign ceiling, as its BFSR of D equates to a baseline credit
assessment of Ba2.

Techombank's foreign currency deposit rating is constrained by
the B1 sovereign ceiling, as its BFSR of D-, which remains on a
positive outlook, equates to a baseline credit assessment of
Ba3.

None of the three banks' other ratings were affected.

ACB is the largest joint-stock commercial bank in Vietnam.
Headquartered in Ho Chi Minh City, the bank reported total
assets of VND85 trillion (approximately USD 5.3 billion) at the
end of 2007.


BANK FOR INVESTMENT: Moody's Changes Outlook to Negative
--------------------------------------------------------
Moody's Investors Service has revised to negative from positive
the rating outlooks for the B1 foreign currency deposits of
three Vietnamese banks. The three banks are the Bank for
Investment & Development of Vietnam ("BIDV"), Asia Commercial
Bank ("ACB") and Vietnam Technological and Commercial Joint
Stock Bank ("Techcombank").

"The move follows the revision of the outlook for the country's
B1 foreign currency deposit ceiling to negative from positive,"
says Karolyn Seet, a Moody's AVP/Analyst.

BIDV's foreign currency deposits are rated at the B1 sovereign
ceiling due to the bank's state ownership. Its bank financial
strength rating (BFSR) is E+.

ACB's foreign currency deposit rating is constrained by the B1
sovereign ceiling, as its BFSR of D equates to a baseline credit
assessment of Ba2.

Techombank's foreign currency deposit rating is constrained by
the B1 sovereign ceiling, as its BFSR of D-, which remains on a
positive outlook, equates to a baseline credit assessment of
Ba3.

None of the three banks' other ratings were affected.

BIDV is one of four state-owned commercial banks and the second-
largest bank in Vietnam. It is headquartered in Hanoi, Vietnam.
The bank reported assets of VND 201 trillion at the end of 2007
(approximately USD 12.4 billion).


VIETNAM TECHNOLOGICAL: Moody's Changes Outlook to Negative
----------------------------------------------------------
Moody's Investors Service has revised to negative from positive
the rating outlooks for the B1 foreign currency deposits of
three Vietnamese banks. The three banks are the Bank for
Investment & Development of Vietnam ("BIDV"), Asia Commercial
Bank ("ACB") and Vietnam Technological and Commercial Joint
Stock Bank ("Techcombank").

"The move follows the revision of the outlook for the country's
B1 foreign currency deposit ceiling to negative from positive,"
says Karolyn Seet, a Moody's AVP/Analyst.

BIDV's foreign currency deposits are rated at the B1 sovereign
ceiling due to the bank's state ownership. Its bank financial
strength rating (BFSR) is E+.

ACB's foreign currency deposit rating is constrained by the B1
sovereign ceiling, as its BFSR of D equates to a baseline credit
assessment of Ba2.

Techombank's foreign currency deposit rating is constrained by
the B1 sovereign ceiling, as its BFSR of D-, which remains on a
positive outlook, equates to a baseline credit assessment of
Ba3.

None of the three banks' other ratings were affected.

Techcombank is headquartered in Hanoi, Vietnam. It reported
assets of VND40 trillion (approximately USD 2.4 billion) at the
end of 2007.


* Moody's Changes Vietnam's Ba3 Rating Outlook to Negative
----------------------------------------------------------
Moody's Investors Service has changed to negative from positive
the outlook on Vietnam's key ratings owing to policy
shortcomings in addressing inflationary and balance-of-payments
pressures.

The changed outlooks are for the Ba3 long-term government
foreign- and local-currency ratings and the B1 foreign-currency
bank deposit ceiling.

"The economic imbalances now emerging are greater than
anticipated, thereby derailing the improving trend previously
evident in the country's credit fundamentals," says Tom Byrne, a
Moody's Senior Vice President. "Rising inflation is proving very
difficult to control, and pressures have rapidly built up on the
balance of payments."

Moody's further notes the government is facing greater-than-
expected difficulty in ratcheting down inflation because
overheated growth -- due to excessive credit expansion and large
"off-budget" development spending, and not just rising commodity
prices -- is also a contributing factor.

"For the authorities, the dilemma now is how to dampen growth
without throwing the economy into recession or damaging the
environment for FDI," says Byrne.

The measured policy response originally taken was strengthened
in May, especially towards reining in credit growth and
stabilizing the deposit base of the banking system. The
authorities recognize the challenges they face, and have
expressed their intent to tighten further, if necessary.

"The months ahead will test their resolve in dealing more
effectively with inflation and the gaping current account
deficit, but for now macroeconomic and balance-of-payments
trends are unsustainable," adds Byrne.

"Although Vietnam's apparently high level of official foreign
exchange reserves is providing a buffer to the abrupt shift now
seen in foreign portfolio investor sentiment, surging trade and
current account deficits threaten to overwhelm the availability
of more stable, long-term financing for the balance of payments,
and may put substantial pressure on reserves and the exchange
rate," says Byrne.

However, Moody's notes Vietnam is facing these challenges
against the backdrop of several strengths. Its accession to the
WTO last year and the achievement of Permanent Normal Trade
Relations with the US have led to a surge in exports and foreign
direct investment. Overall export growth this year actually
accelerated during January-April to 28% year on year, despite
the slowdown in the US, Vietnam's largest market.

Meanwhile, FDI amounted to more than 9% of GDP in 2007,
essentially financing the country's current account deficit of
that year. So far for 2008, during January-May, licensed
approvals for investments more than doubled to $15 billion, but
realized inflows lagged the sharper rise in the trade and
current account deficits in the first quarter.

In some respects Vietnam's credit fundamentals still compare
favorably with those of other rated peers, and its long-term
prospects will be favorable, if a stronger policy framework is
put into place.

"For the rating outlook to improve, we would need to see an end
to high inflation, demonstrated stability in the banking system,
and a decline in the current account deficit towards a level
which can be financed by stable long-term capital inflows," says
Byrne.

"However, the unusual secrecy prevalent in the release on a
timely basis of the international liquidity position of the
State Bank of Vietnam adds difficulty in the assessment of
Vietnam's external payments position, and undermines confidence
in analyzing current credit conditions," adds Byrne.

"Conversely, although ratings in the Ba category do not suggest
any clear-and-present debt repayment concerns, the persistence
of very high inflation and large current account deficits may
overwhelm Vietnam's shock absorption capacity, and would likely
add to downward pressure on the government's rating," says
Byrne.

                         *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


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S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  Rousel Elaine C. Tumanda, Valerie C. Udtuhan,
Marie Therese V. Profetana, Frauline S. Abangan, and Peter A.
Chapman, Editors.

Copyright 2008.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.





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