TCRAP_Public/090921.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

           Monday, September 21, 2009, Vol. 12, No. 186

                            Headlines

A U S T R A L I A

BABCOCK & BROWN: CIMB Acquires Firm's Interest in Asian Fund
BABCOCK & BROWN INFRA: Gets Alternative Offer from Big Funds
GREAT SOUTHERN: Pulpwood Plantations Urge Contenders to Go Public
NYLEX LTD: Creditors Vote on Deed of Company Arrangement
TIMBERCORP LTD: Sells Almond Plantations to Olam Int'l. for $128MM

TZ LIMITED: Prepares to Lodge Claim Against Former Chairman


C H I N A

COUNTRY GARDEN: US$75 Mil. Notes Won't Affect S&P's 'BB' Rating
COUNTRY GARDEN: US$75 Mil. Bonds Won't Affect Moody's 'Ba2' Rating
DATANG INTERNATIONAL: Fitch Cuts Issuer Default Rating to 'BB+'
HUADIAN POWER: Fitch Downgrades Issuer Default Ratings to 'BB'
HUANENG POWER: Fitch Downgrades Issuer Default Rating to 'BB+'


H O N G  K O N G

CALPA AURAL: Members' Meeting Set for October 12
CARRYRICH INDUSTRIAL: Court to Hear Wind-Up Petition on October 14
CENTRE RISE: Appoints Rainier and Victor as Liquidators
CHAT HAY: Court to Hear Wind-Up Petition on November 4
CHINA RAILWAY: Court to Hear Wind-Up Petition on October 21

ECO SWISS: Creditors' Meeting Set for October 14
FAMEAST LIMITED: Court Enters Wind-Up Order
FLANNEL LIMITED: Releases Hill as Liquidator
GOOD CLEVER: Court to Hear Wind-Up Petition on October 14
GRANDSUIT MACHINERY: Members and Creditors to Meet on October 17

INFIELD LIMITED: Court Enters Wind-Up Order
JDC CORPORATION: Pays Third and Final Dividend
JUMBO MERIT: Court Enters Wind-Up Order
KAM LUNG: Court to Hear Wind-Up Petition on October 14
KI DA: Court to Hear Wind-Up Petition on October 28

NEWLINK INVESTMENT: Court to Hear Wind-Up Petition on October 14
PACIFIC MARBLE: Releases Hill as Liquidator
PEAK QUALITY: Court Enters Wind-Up Order
PREMIER DRAGON: Court to Hear Wind-Up Petition on October 28
SURE TALENT: Court to Hear Wind-Up Petition on October 7


I N D I A

AIR INDIA: Aviation Ministry to Seek Gov't OK for Capital Infusion
CMM INFRAPROJECTS: ICRA Assigns 'LBB-' Rating to Bank Debt
DY UPPAR: ICRA Assigns 'LB+' Rating on INR350MM Fund Based Limits
KANDAGIRI SPINNING: CARE Assigns 'CARE BB' Rating on Bank Debts
NAGAR KOPARGAON: ICRA Places 'LB+' Rating on LT Bank Facilities

TATA MOTORS: May Sell Up to 15% Stake in Vehicle Financing Unit
TATA STEEL: May Refinance Around US$900-Mln Corus Debt
VASANTHA SPINNERS: ICRA Rates INR327 Million Term Loans at 'LBB'


I N D O N E S I A

BANK CENTRAL: Moody's Raises Foreign Cur. Deposit Rating to Ba3
BANK CIMB-NIAGA: Moody's Raises Foreign Cur. Deposit rating to Ba3
BANK DANAMON: Moody's Raises Foreign Cur. Deposit Rating to Ba3
BANK INTERNASIONAL: Moody's Raises For. Cur. Deposit Rating to Ba3
BANK MANDIRI: Moody's Raises Foreign Cur. Deposit Rating to Ba3

BANK NEGARA: Moody's Raises Foreign Cur. Deposit Rating to Ba3
BANK PERMATA: Moody's Raises Foreign Cur. Deposit Rating to Ba3
BANK RAKYAT: Moody's Raises Foreign Cur. Deposit Rating to Ba3
PT INDIKA: Consent Solicitation Won't Affect Fitch's 'B' Ratings
PT INDIKA: Consent Solicitation Won't Affect Moody's 'B2' Rating


J A P A N

AIFUL CORP: Seeks to Reschedule Loan Payments
HUIS TEN: Nomura Principal in Talks with HMI on Capital Infusion
JAPAN AIRLINES: Bankruptcy Not An Option for JAL, Minister Says
MAZDA MOTOR: China Sales May Rise 40% in July-September, CFO Says
SANYO ELECTRIC: Expects to Post Second Annual Loss in FY2010


N E W  Z E A L A N D

WINDFLOW TECHNOLOGY: Annual Loss Narrows to NZ$1.23 Million


                         - - - - -


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


BABCOCK & BROWN: CIMB Acquires Firm's Interest in Asian Fund
------------------------------------------------------------
The South East Asian Strategic Assets Fund, advised and managed by
CIMB Standard, has completed the acquisition of Babcock & Brown
Ltd.’s interest in the Babcock & Brown Asia Infrastructure Fund,
The Star reports.

The Star quoted CIMB Standard chief executive officer Dr. Johan
Bastin as saying that “With the acquisition, we effectively take
over BBAIF’s office in Bangkok and this immediately gives us a
presence in Thailand, one of SEASAF’s main markets.”

Headquartered in Sydney, Australia, Babcock & Brown Limited
(ASX:BNB) -- http://www.babcockbrown.com/-- is a global
alternative asset manager specializing in the origination and
management of asset in sectors, where the company has a franchise
and proven track record, and where there are opportunities to add
scale, infrastructure, air operating leasing and selected real
estate.  Babcock & Brown operates from 31 offices across
Australia, North America, Europe, Asia and the United Arab
Emirates.  The company has established a specialized funds and
asset management platform across the operating divisions that have
resulted in the establishment of a number of listed and unlisted
focused investment vehicles in areas, including real estate,
renewable energy and infrastructure.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
March 13, 2009, Babcock & Brown appointed voluntary administrators
after investors in the company's subordinated notes listed in
New Zealand voted on March 13 against a special resolution to
restructure the terms of the notes.  Under the special resolution,
the company's equity and subordinated note holders won't receive
any return.  Babcock & Brown appointed David Lombe and Simon
Cathro of Deloitte Touche Tohmatsu as Voluntary Administrators.

The TCR-AP reported on Aug. 25, 2009, that Babcock & Brown Ltd
creditors voted to liquidate the assets of the company.  Deloitte
said the vote empowers it to investigate matters surrounding the
collapse of the group, including potential conflicts of interest
between the boards of Babcock & Brown and affiliated company
Babcock & Brown International Pty. Ltd. which held most of the
group's assets.


BABCOCK & BROWN INFRA: Gets Alternative Offer from Big Funds
------------------------------------------------------------
Adele Ferguson at The Australian reports that Babcock & Brown
Infrastructure has received an alternative recapitalization
proposal from a group of international hedge funds.

Citing a letter sent to the two BBI independent directors, The
Australian discloses that the global investment bank, acting on
behalf of eight investors, said that it had structured a new
recapitalization proposal which was at least $500 million better
than an existing deal now being discussed by the board , which
involves a new cornerstone investor.

The eight investors proposed to support $800 million of a $1
billion convertible bond and equity issue and a $350 million bank
facility backed by existing lenders, and no asset sales at
firesale prices, The Australian relates, citing the letter,
addressed to BBI chairman and former Queensland treasurer David
Hamill and former AMP executive Leigh Hall.

The Troubled Company Reporter-Asia Pacific reported on Sept. 4,
2009, that Babcock & Brown Infrastructure said it is talks with a
potential cornerstone investor.  The board believed that the
participation of a well-capitalized investor would significantly
increase the likelihood of a transaction being successfully
completed prior to the group’s debt facilities maturing.

"The terms of a transaction with the potential cornerstone
investor have been discussed (although the structure and details
of any such transaction are not yet finalized)," BBI said in a
statement September 4.

"A comprehensive recapitalization on the terms discussed requires
the consent of existing lenders and BBI has approached the lenders
to obtain their consent to the recapitalization.  To assist its
recapitalization objectives, BBI has appointed financial advisors
to the proposed recapitalization, and Gresham Advisory Partners
have been appointed as financial advisors to the BBI Boards."

                About Babcock & Brown Infrastructure

Based in Australian, Babcock & Brown Infrastructure Group
(ASX:BBI) -- http://www.bbinfrastructure.com/-- is a specialist
infrastructure company, which provides investors access
to a diversified portfolio of quality infrastructure assets.
BBI's investment focuses on acquiring, managing and operating
quality infrastructure assets in Australia and internationally.
BBI's portfolio is diversified across two asset class segments:
Energy Transmission and Distribution, and Transport
Infrastructure.  The company comprises of Babcock & Brown
Infrastructure Trust (BBIT) and Babcock & Brown Infrastructure
Limited (BBIL).  On July 12, 2007, Benelux Port Holdings S.A,
which is a 75% subsidiary of BBIL, acquired Manuport Group NV. On
August 2, 2007, Babcock & Brown Italian Port Holdings S.r.l, a
wholly owned subsidiary of BBIL, acquired an 80% interest in the
TRI (Estate) S.p.A group of companies.  On October 11, 2007, BBI
Finnish Ports Oy, a wholly owned subsidiary of BBIL, acquired the
companies Rauma Stevedoring and Botnia Shipping.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
March 3, 2009, Moody's Investors Service confirmed Babcock & Brown
Infrastructure Group's B1 corporate family rating and B2 senior
secured rating.  The outlook on the ratings is stable.


GREAT SOUTHERN: Pulpwood Plantations Urge Contenders to Go Public
-----------------------------------------------------------------
Sara Rich at The Australian reports that one of the frontrunners
in the bidding race for Great Southern's forestry assets has
called for the other contenders to make their offers public.

According to the report, Pulpwood Plantations, headed by Perth
businessman Gordon Martin, said it was concerned growers would
only have a short amount of time to make a decision if the other
promoters did not come forward soon with the details of their
offers.

"Great Southern's receiver will stop funding on September 30,
leaving growers with a narrow window of time in which to decide
how to protect their investment," the report quoted Mr. Martin as
saying.  "We are concerned that growers will be delayed in their
consideration by the hope of offers (by groups) that have yet to
confirm any detail, including their source of funding."

The Australian says written expressions of interest for purchasing
all or some of Great Southern's assets and to replace Great
Southern Asset Management as responsible entity close on
September 23.

Receiver McGrathNicol, according to The Australian, confirmed
there were a number of interested parties, but Pulpwood
Plantations said it was the only contender that had released the
details of its offer.

The Troubled Company Reporter-Asia Pacific reported on
September 18, that Perth businessman John Poynton and forester
Tony Jack have emerged as major new bidders for the timber assets
of failed agribusiness company Great Southern.  Mr. Poynton, a
former stockbroker and now head of Azure Capital, a boutique
corporate adviser, is backing Mr. Jack's Black Tree group, the
Herald said.  The new group is a competitor to the frontrunner,
Pulpwood Plantations.

A TCR-AP report on Aug. 17, 2009, said that Mr. Martin set up
Pulpwood Plantations to put between AU$10 million and AU$20
million into the Great Southern schemes.

Mr. Martin said that a group called Primary Securities, which has
experience with Managed Investment Schemes and was independent of
his organization, was willing to be nominated as Responsible
Entity to act as manager of the six schemes, which appear to
account for around half of Great Southern's timber schemes.

As reported in the TCR-AP on September 9, 2009, The Australian
Associated Press said the receivers of Great Southern have started
selling all, or parts, of the failed agricultural projects
operator.

Receiver McGrathNicol have called for interest from third
parties to buy all or part of the company: the land owned by Great
Southern entities and other of its assets, including assets
associated with Great Southern's managed investment schemes, the
AAP said.

According to the AAP, McGrathNicol has also called for expressions
of interest from parties who may be interested in replacing Great
Southern Managers Australia Ltd (GSMAL) as the responsible entity
for all or some of the managed investment schemes, in combination
with the sales process or separately.

                       About Great Southern

Based in West Perth, Australia, Great Southern Limited (ASX:GTP)
-- http://www.great-southern.com.au/-- is engaged in the
development, marketing, establishment and management of
agribusiness-based projects.  The Company provides finance,
directly and through third party financiers, to approved investors
who wish to invest in the Company's projects.  The Company also
acquires and manages farmland and other agribusiness related
properties which are held for long term investment.  It operates
an agricultural investment services business offering two key
products: agricultural managed investment schemes, which is
provision of MIS products in the forestry and agribusiness sector,
and agricultural funds management, which are agricultural
investment funds providing investors exposure to a portfolio of
agricultural assets.  Great Southern manages about 43,000
investors through 45 managed investment schemes.  The group owns
and leases approximately 240,000 hectares of land.  It also owns
more than 150,000 cattle across approximately 1.5 million hectares
of owned and leased land.

Great Southern entered into voluntary administration in May.  The
directors of Great Southern Limited and Great Southern Managers
Australia Limited appointed Martin Jones, Andrew Saker, Darren
Weaver and James Stewart of Ferrier Hodgson as administrators of
the two companies and majority of their units.  McGrathNicol was
appointed receivers to the company and certain of its subsidiaries
by a security trustee on behalf of a group of secured creditors.

As of April 30, 2009, Great Southern had total liabilities of
AU$996.4 million, including loans and borrowings of AU$833.9
million.  The loans and borrowings included AU$375 million from
the group banks.  The secured creditors include ANZ, Commonwealth
Bank and BankWest.


NYLEX LTD: Creditors Vote on Deed of Company Arrangement
--------------------------------------------------------
The creditors of Nylex Limited have opted to place the company
under a Deed of Company Arrangement to enable the recapitalization
of the corporate shell to take place, George Georges, the
company's administrator, said in a filing to the Australian
Securities Exchange.

The Troubled Company Reporter-Asia Pacific reported on Feb. 13,
2009, that Nylex Limited has appointed George Georges and John
Lindholm at Ferrier Hogson as voluntary administrators.

The company's secured creditors, Australia and New Zealand Banking
Group Limited and Westpac Banking Corporation, also appointed
Colin Nicol, Johan Vorster and Sam Davies of McGrath Nicol as
receivers and managers of the assets of the Nylex Limited group --
excluding Nylex Properties Pty Ltd and Champion Environmental
Technologies Pty Ltd.

Nylex Limited's principal activities are carried out through three
segments: Lifestyle, Solutions and Automotive.  Nylex Lifestyle
distribute Nylex, Gardena, Esky, Ajax Fasteners, Senco, Melded,
Colorino and Frontrunner branded products.  Nylex Solutions supply
plastic based solutions including water tanks, garbage bins,
communications pits and plastic containment solutions.  Nylex
Automotive supply plastic based products and interior carpets to
the car manufacturers and their suppliers including fuel tank.
Nylex operates in Australia and New Zealand.


TIMBERCORP LTD: Sells Almond Plantations to Olam Int'l. for $128MM
------------------------------------------------------------------
The Sydney Morning Herald reports that Timbercorp Limited's almond
plantations have been sold to Singapore-based multinational food
giant Olam International for $128 million.

According to the report, Timbercorp liquidator KordaMentha said
the agreement was subject to regulatory approvals and might take
up to two months to complete.

The Herald says the sale involves 8096 hectares of almond groves
near the Murray River around Robinvale in north-west Victoria, and
represents about 30% of the Australian almond crop.  It also
includes 40,825 megalitres of water rights, the report notes.

About 7,000 growers invested in the almond plantings under managed
investment schemes, but the proceeds growers and other
stakeholders will receive from the transaction are yet to be
negotiated, according to the Herald.

Based in Melbourne, Australia, Timbercorp Limited (ASX:TIM) --
http://www.timbercorp.com.au/-- is engaged in the establishment,
development, marketing and management of primary industry-based
projects, the acquisition of land, water rights and infrastructure
to support these projects, and the provision of finance to growers
in these projects.  The company is also involved in eucalypt and
olive oil processing operations, asset development, asset
management, the sale of agricultural assets and holding
investments in agricultural-related enterprises.

As reported in the Troubled Company Reporter-Asia Pacific on
April 24, 2009, Timbercorp called in voluntary administrators to
the company and its subsidiaries.  The company appointed Mark
Korda and Leanne Chesser of KordaMentha as voluntary
administrators.  "The company had been hurt by the combined impact
of declining global asset values, tightening credit, the economic
downturn and drought," according to a statement issued by
Kordamentha.

On June 29, 2009, the creditors voted unanimously to wind up
the 41 companies in the Timbercorp Group and put them into
liquidation.


TZ LIMITED: Prepares to Lodge Claim Against Former Chairman
-----------------------------------------------------------
TZ Limited is preparing a statement of claim detailing allegations
against its former chairman, Andrew Sigalla, after court
proceedings in Sydney last week, Rebecca Urban at The Australian

The Australian says the technology company, together with the
Australian Securities & Investments Commission, was in the Supreme
Court of NSW last week in relation to complaints against
Mr. Sigalla, his private company ZMS Investments and four
unidentified parties.

It follows a forensic accounting investigation conducted by TZ
recently that revealed that its cash reserves, as disclosed to
investors at the end of March, had been inflated by more than
AU$6 million, The Australian notes.  According to the report, the
company has since issued letters of demand to certain previous
directors of the company, including Mr. Sigalla, seeking the
return of significant sums of money.

ASIC and the company last month obtained freezing orders over the
assets of Mr. Sigalla and several associates, according to The
Australian.

As reported in The Troubled Company Reporter-Asia Pacific on
Aug. 7, 2009, The Australian disclosed that shares in the Company
have been suspended as a new board of directors, led by Wizard
Home Loans founder Mark Bouris, investigates alleged discrepancies
in the financial accounts discovered following its appointment on
June 18.  The board is also trying to broker a deal with TZ's main
financier, US-based hedge fund QVT, after discovering that the
Company had defaulted on the terms of a AU$24 million convertible
note agreement.

                         About TZ Limited

TZ Limited (ASX:TZL) -- http://www.tzlimited.com/-- is an
Australia-based company engaged in the development and licensing
of intellectual property particularly, Intelligent Fastening,
Assembly Enabling and FutureWall technologies through
Telezygology, Inc.  The Company provides a full service capability
in product development and engineering services through PDT Group.
The Company's operations are based in Illinois, United States.  It
operates in two segments: engineering and design, and investment.
The Company's subsidiaries include Telezygology, Inc., PDT
Holdings, Inc., Product Development Technologies, Inc., PDT
Tooling, Inc., PDT Southeast Limited Liability Company (LLC) and
CJSC PDT Ukraine.


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


COUNTRY GARDEN: US$75 Mil. Notes Won't Affect S&P's 'BB' Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services said that the corporate credit
rating and outlook on Country Garden Holdings Co. Ltd.
(BB/Stable/--) and the 'BB-' issue rating on the company's
US$300 million 11.75% senior unsecured are not affected by the
announcement that Country Garden has issued another US$75 million
in notes.  S&P continue to expect Country Garden's financial
metrics to remain in line with its peers' and the 'BB' rating
category for the next 12 months.

The terms and conditions of the additional issuance are the same
as those of the US$300 million bond issued on Sept. 2, 2009, with
the exception that the offer price is 100.915% of the principal
amount rather than 100%.  The effective yield to maturity of the
additional issuance is 11.5%.


COUNTRY GARDEN: US$75 Mil. Bonds Won't Affect Moody's 'Ba2' Rating
------------------------------------------------------------------
Moody's Investors Service sees no impact on Country Garden
Holdings Company Ltd.'s Ba2 corporate family rating or on its
senior unsecured rating of Ba3 following the company's
announcement that it was issuing an additional US$75 million of
its 5-year senior unsecured 144A/Regulation S bonds.  The outlook
on the ratings remains negative.

The additional bonds, which are rated Ba3, have the same terms and
conditions as the US$300 million bonds issued on 10 September
2009.  The bond rating has been lowered by one notch from the
Corporate Family Rating of Ba2 to reflect the risks of legal and
structural subordination, as subsidiary and secured debts are
expected to remain above 20% of the company's total assets.

Proceeds from the bonds will be used for funding property
projects, and general corporate purposes.

"The increase in the size of the bond issuance from US$300 million
to US$375 million does not result in any material change to the
company's credit profile," says Peter Choy, a Moody's Vice
President and Senior Credit Officer, adding, "In fact, it will
further enhance Country Garden's liquidity."

The key rating drivers for Country Garden remain its large scale
and extensive experience in suburban property development in
Guangdong Province, China.  In addition, its low land costs,
strong sales, and pricing flexibility have also resulted in stable
sales through the down cycle.  At the same time, however, the
rating is tempered by the challenge facing the company to raise
additional capital to fund its rapid growth model, and by its
reliance on cash flow contributions from Guangdong Province.

The last rating action on Country Garden was taken on 1 September
2009, when Moody's assigned a Ba3 rating to the company's
US$300 million 144A Regulation S, bonds with a negative outlook.

Founded in 1997 in China and listed in Hong Kong in April 2007,
Country Garden Holdings Company Ltd is one of the leading
integrated property developers in China.


DATANG INTERNATIONAL: Fitch Cuts Issuer Default Rating to 'BB+'
---------------------------------------------------------------
Fitch Ratings has downgraded Datang International Power Generation
Co., Ltd's Long-term foreign and local currency Issuer Default
Ratings and senior unsecured ratings to 'BB+' from 'BBB-' and its
Short-term foreign and local currency IDRs to 'B' from 'F3'.  The
Outlook is Stable.

"The downgrades reflect Fitch's reassessment of DTP's linkages
with controlling shareholder China Datang Corporation," says Simon
Wong, Director in Fitch's Asia-Pacific energy and utilities team.
"The downgrades also reflect DTP's and China Datang's aggressive,
largely debt-funded capex programs and weakened domestic
electricity demand, which are expected to delay the companies'
ability to reduce their high leverage," adds Mr. Wong.

Fitch applied the Parent and Subsidiary rating Linkage methodology
to assess the linkages between DTP and its parent China Datang.
The parent's consolidated credit profile is weaker than DTP's
stand-alone 'BB+' rating by one notch and given the lack of ring
fencing of DTP from its parent, DTP's rating, before any
consideration of State support, is constrained at 'BB'.  In
addition, Fitch has applied a "bottom-up" approach as set out in
the same methodology to notch up the final rating to 'BB+' from
the constrained 'BB', reflecting DTP and China Datang's strategic
importance to the country and the tangible support extended by the
Chinese government.

DTP's ratings also reflect its position as the second-largest
Chinese independent power producer, with diversified fuel mix,
above-average efficient coal-fired power plants, lowest unit fuel
costs and strong EBITDAR margins.  Its vertical integration
strategy, in the agency's view, will enhance its long term
competitive advantage through securing controllable long-term coal
supplies and improving margin erosion protection against a surge
in fuel costs.  DTP also benefits from good access to domestic
banks and capital markets, which is expected to mitigate its
liquidity risk.

The Stable Outlook reflects Fitch's expectation that the Chinese
government will continue to provide support to the Chinese
Independent Power Producers and that coal prices are likely to
remain largely stable.  Fitch expects DTP's total adjusted
debt/operating EBITDAR to fall to 7x by 2011.  A prolonged
suspension of the tariff mechanism during periods of substantial
coal price increase and/or significant debt-funded capex and
acquisitions would be likely to lead to negative rating action.

DTP had an installed capacity of 27.8 gigawatts at end June 2009.
The company's 2009-2015 capex plans include the development of
renewable energy capacity and the entry into nuclear power
generation, while reducing the proportion of coal-fired capacity
to 70% by 2015 from 87.6%.  The company also hopes to secure
controllable coal supplies to increase coal self-sufficiency to
40% by 2015, to construct railways and to acquire coal shipping
capabilities to enhance its vertical integration.


HUADIAN POWER: Fitch Downgrades Issuer Default Ratings to 'BB'
-------------------------------------------------------------
Fitch Ratings has downgraded Huadian Power International
Corporation Limited's Long-term foreign and local currency Issuer
Default Ratings to 'BB' from 'BBB-', its Short-term foreign and
local currency IDRs to 'B' from 'F3' and revised the ratings
Outlook to Stable from Negative.

"The downgrades reflect Fitch's reassessment of HDPI's linkages
with controlling shareholder China Huadian Corporation," says
Simon Wong, Director in Fitch's Asia-Pacific energy and utilities
team.

Fitch applied the Parent and Subsidiary rating Linkage methodology
to assess the linkages between HDPI and its parent China Huadian.
The parent's consolidated credit profile is weaker than HDPI's
stand-alone 'BB+' rating by two notches and given the lack of ring
fencing of HDPI from its parent, HDPI 's rating, before any
consideration of State support, is constrained at 'BB-'.  In
addition, Fitch has applied a "bottom-up" approach as set out in
the same methodology to notch up the final rating to 'BB' from the
constrained 'BB-', reflecting HDPI and China Huadian's strategic
importance to the country and the tangible support extended by the
Chinese government.

"HDPI's higher-than-average sensitivity to coal price volatility
and its on-going aggressive capital expenditure program is
expected to continue constraining its standalone rating," adds Mr.
Wong.  Although HDPI's operating EBITDAR margin rebounded to 24.7%
in H109 from 10.4% in FY08, benefiting from two on-grid tariff
adjustments implemented during Q308 and lower unit fuel costs,
Fitch notes it remains vulnerable to coal price volatility.

HDPI and China Huadian's ongoing aggressive capital expenditure
program which are largely debt-funded as well as weakened
electricity demand is expected to delay both companies' ability to
reduce their high leverage.  As at June 30, 2009, HDPI have
thermal, hydro and wind power projects totalling 5.6GW under
construction, while a further 4.4GW obtained preliminary approval
during H109.  HDPI and China Huadian target to increase their
respectively installed capacity to 40GW and 100GW by 2013 (from
23GW and 69GW as at end 2008), and at the same time accelerate
investments in coal mines to reduce exposure to coal price
volatility.

HDPI's ratings also take into account its position as a leading
Chinese IPP with large-scale and above-average-efficiency
generating assets and improved utilization hours; most notably in
Shandong Province where 50% of HDPI's installed capacity is
located.  Fitch notes that HDPI's liquidity risk has moderated,
with the successful domestic bond issuance during H109 of
CNY3 billion and available credit facilities from domestic banks
totalling CNY37.2 billion as at June 30, 2009.

The Stable Outlook reflects Fitch's expectation that the Chinese
government will continue to provide support to Chinese IPPs and
that coal prices are to remain largely stable.  Fitch expects
HDPI's total adjusted debt/operating EBITDAR to fall below 7x by
2011.  A prolonged suspension of the tariff mechanism during
periods of substantial coal price increases and/or significant
debt-funded capex and acquisitions would be likely lead to a
negative rating action.


HUANENG POWER: Fitch Downgrades Issuer Default Rating to 'BB+'
--------------------------------------------------------------
Fitch Ratings has downgraded Huaneng Power International, Inc's
Long-term foreign and local currency Issuer Default Ratings and
senior unsecured debt rating to 'BB+' from 'BBB', and its Short-
term foreign and local currency IDRs to 'B' from 'F3'.  The
Outlook is Stable.

"The downgrades reflect HNP's weakened standalone credit profile
as well as Fitch's reassessment of HNP's linkages with controlling
shareholder China Huaneng Group," notes Simon Wong, Director in
Fitch's Asia-Pacific energy and utilities team.

HNP's total borrowings rose by 181% to CNY109 billion during FY08
as an unprecedented surge in coal prices significantly reduced its
funds from operations, while its large capital expenditure program
and acquisition of SinoSing Power widened its negative free cash
flow to record levels.  "Furthermore, weakened domestic
electricity demand and a largely debt-funded capital expenditure
program in 2009-2010 is expected to delay HNP's ability to de-
leverage, leading to the downgrade of its stand-alone rating, that
is, its rating excluding any influence from its parent or the
government, its ultimate owner," adds Mr. Wong.  The company has
an aggressive capex program to increase its capacity from 40
gigawatts to 60GW by 2010 to maintain its market share and
leadership position.

"HNP's H109 unit fuel costs declined 12.9% compared to FY08 and
the company benefited from two tariff adjustments implemented
during H208.  However, HNP's operating EBITDAR margin is unlikely
to return to FY07 levels as Fitch does not expect thermal coal
prices to decline significantly in H209 and 2010," adds Mr.  Wong.

The ratings reflect HNP's position as the largest Chinese
independent power producer, with a good geographic diversification
of generating assets and above-average efficient coal-fired
plants.  Fitch notes that HNP's good access to domestic banks and
capital market largely mitigates its liquidity risk despite
substantial debt maturing within the next 12 months totalling
CNY44.8 billion (as at June 30, 2009) and aggressive capital-
expenditure plans.

Fitch applied the Parent and Subsidiary rating Linkage methodology
to assess the linkages between HNP and its parent China Huaneng.
The parent's consolidated credit profile is weaker than HNP's
stand-alone 'BB+' rating by one notch and given the lack of ring
fencing of HNP from its parent, HNP's rating, before any
consideration of State support, is constrained at 'BB'.  In
addition, Fitch has applied a "bottom-up" approach as set out in
the same methodology to notch up the final rating to 'BB+' from
the constrained 'BB', reflecting HNP's and China Huaneng's
strategic importance to the country and the tangible support
extended by the Chinese government.

The Stable Outlook reflects Fitch's expectation that the Chinese
government will continue to provide support to the Chinese IPPs
and that coal prices are likely to remain largely stable.  Fitch
expects HNP's total adjusted debt/operating EBITDAR to fall below
7x by 2011.  A prolonged suspension of the tariff mechanism during
periods of substantial coal price increase and/or significant
debt-funded capex and acquisition would be likely to lead to a
negative rating action.


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


CALPA AURAL: Members' Meeting Set for October 12
------------------------------------------------
The members of Calpa Aural-Laserpuncture Consultants Limited will
hold their meeting on October 12, 2009, at 10:00 a.m., at 2201,
Hong Kong Trade, 161 Des Voeux Road central, Hong Kong.

At the meeting, Lau Yui Wing, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.


CARRYRICH INDUSTRIAL: Court to Hear Wind-Up Petition on October 14
------------------------------------------------------------------
A petition to wind up the operations of Carryrich Industrial
Limited will be heard before the High Court of Hong Kong on
October 14, 2009, at 9:30 a.m.

Ching Kam Chan filed the petition against the company on Aug. 11,
2009.

The Petitioner's solicitor is:

          Paul W. Tse
          World-Wide House, Room 2302
          19 Des Voeux Road
          Central, Hong Kong


CENTRE RISE: Appoints Rainier and Victor as Liquidators
-------------------------------------------------------
On August 28, 2009, Lam Hok Chung Rainier and Jong Yat Kit Victor
were appointed as liquidators of Centre Rise Trading Limited.

The Liquidators can be reached at:

          Lam Hok Chung Rainier
          Jong Yat Kit Victor
          Pricewaterhouse-Coopers
          Prince's Building, 22nd Floor
          Central, Hong Kong


CHAT HAY: Court to Hear Wind-Up Petition on November 4
------------------------------------------------------
A petition to wind up the operations of Chat Hay Inter-United
(Asia) Limited will be heard before the High Court of Hong Kong on
November 4, 2009, at 9:30 a.m.

Standard Chartered Bank (Hong Kong) Limited filed the petition
against the company on August 28, 2009.

The Petitioner's solicitors are:

          Tsang, Chan & Wong
          Wing On House, 16th Floor
          No. 71 Des Voeux Road Central
          Hong Kong


CHINA RAILWAY: Court to Hear Wind-Up Petition on October 21
-----------------------------------------------------------
A petition to wind up the operations of China Railway Mall &
Properties Development Limited will be heard before the High Court
of Hong Kong on October 21, 2009, at 9:30 a.m.

The petitioner's solicitor is:

          Lovells
          One Pacific Place, 11th Floor
          88 Queensway, Hong Kong


ECO SWISS: Creditors' Meeting Set for October 14
------------------------------------------------
The creditors of Eco Swiss China Time Limited will hold their
meeting on October 14, 2009, at 3:30 p.m., for the purposes
provided in Sections 241, 242, 243, 244 and 255A of the Companies
Ordinance.

The meeting will be held at the 27th Floor of Alexandra House, 18
Chater Road, in Central, Hong Kong.


FAMEAST LIMITED: Court Enters Wind-Up Order
-------------------------------------------
On May 7, 2009, the High Court of Hong Kong entered an order to
have Fameast Limited's operations wound up.

Mat Ng is the company's liquidator.


FLANNEL LIMITED: Releases Hill as Liquidator
--------------------------------------------
On August 8, 2009, Nicholas Timothy Cornforth Hill was released as
liquidator of Flannel Limited.


GOOD CLEVER: Court to Hear Wind-Up Petition on October 14
---------------------------------------------------------
A petition to wind up the operations of Good Clever Development
Limited will be heard before the High Court of Hong Kong on
October 14, 2009, at 9:30 a.m.

Bank of China (Hong Kong) Limited filed the petition against the
company on August 10, 2009.

The Petitioner's solicitors are:

          Ford Kwan and Company
          Chinachem Golden Plaza, Suites 1505-1508
          77 Mody Road, Tshimshatsui East
          Kowloon, Hong Kong
          Telephone: 2366-0688
          Facsimile: 2722-0736


GRANDSUIT MACHINERY: Members and Creditors to Meet on October 17
----------------------------------------------------------------
The members and creditors of Grandsuit Machinery (H.K.) Limited
will hold their meeting on October 17, 2009, at 10:00 a.m. and
11:00 a.m., respectively, at Room 1103 of Hang Seng Mongkok
Building, 677 Nathan Road, in Mongkok, Kowloon.

At the meeting, Chan Man Chung, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.


INFIELD LIMITED: Court Enters Wind-Up Order
-------------------------------------------
On August 3, 2009, the High Court of Hong Kong entered an order to
have Infield Limited's operations wound up.

Mat Ng is the company's liquidator.


JDC CORPORATION: Pays Third and Final Dividend
----------------------------------------------
JDC Corporation, which is in compulsory liquidation, paid the
third and final dividend on September 11, 2009.

The company paid 2.11% to all received claims.

The company's liquidator is:

          Kong Chi How, Johnson
          Wing On Centre
          Room 1302, 13th Floor
          111 Connaught Road
          Central, Hong Kong


JUMBO MERIT: Court Enters Wind-Up Order
---------------------------------------
On July 28, 2009, the High Court of Hong Kong entered an order to
have Jumbo Merit International Limited's operations wound up.

Mat Ng is the company's liquidator.


KAM LUNG: Court to Hear Wind-Up Petition on October 14
------------------------------------------------------
A petition to wind up the operations of Kam Lung Enterprises
Limited will be heard before the High Court of Hong Kong on
October 14, 2009, at 9:30 a.m.

Bank of China (Hong Kong) Limited filed the petition against the
company on August 10, 2009.

The Petitioner's solicitors are:

          Ford Kwan and Company
          Chinachem Golden Plaza, Suites 1505-1508
          77 Mody Road, Tshimshatsui East
          Kowloon, Hong Kong
          Telephone: 2366-0688
          Facsimile: 2722-0736


KI DA: Court to Hear Wind-Up Petition on October 28
---------------------------------------------------
A petition to wind up the operations of Ki Da Construction Company
Limited will be heard before the High Court of Hong Kong on
October 28, 2009, at 9:30 a.m.

Ho Yun Shing filed the petition against the company on August 26,
2009.

The Petitioner's solicitors are:

          W.K. To & Co.
          Wheelock House, 11th Floor
          20 Pedder Street
          Central, Hong Kong


NEWLINK INVESTMENT: Court to Hear Wind-Up Petition on October 14
----------------------------------------------------------------
A petition to wind up the operations of Newlink Investment Limited
will be heard before the High Court of Hong Kong on October 14,
2009, at 9:30 a.m.

Bank of China (Hong Kong) Limited filed the petition against the
company on August 10, 2009.

The Petitioner's solicitors are:

          Ford Kwan and Company
          Chinachem Golden Plaza, Suites 1505-1508
          77 Mody Road, Tshimshatsui East
          Kowloon, Hong Kong
          Telephone: 2366-0688
          Facsimile: 2722-0736


PACIFIC MARBLE: Releases Hill as Liquidator
-------------------------------------------
On August 28, 2009, Nicholas Timothy Cornforth Hill was released
as liquidator of Pacific Marble & Granite (China) Limited.


PEAK QUALITY: Court Enters Wind-Up Order
----------------------------------------
On August 13, 2009, the High Court of Hong Kong entered an order
to have Peak Quality Limited's operations wound up.

Mat Ng is the company's liquidator.


PREMIER DRAGON: Court to Hear Wind-Up Petition on October 28
------------------------------------------------------------
A petition to wind up the operations of Premier Dragon Investment
Limited will be heard before the High Court of Hong Kong on
October 28, 2009, at 9:30 a.m.

Bank of China (Hong Kong) Limited filed the petition against the
company on August 20, 2009.

The Petitioner's solicitors are:

          Tony Kan & Co.
          World-Wide House, Suite 1808
          No. 19 Des Voeux Road Central
          Hong Kong


SURE TALENT: Court to Hear Wind-Up Petition on October 7
--------------------------------------------------------
A petition to wind up the operations of Sure Talent Development
Limited will be heard before the High Court of Hong Kong on
October 7, 2009, at 9:30 a.m.

Meso Limited filed the petition against the company on August 6,
2009.

The Petitioner's solicitors are:

          Messrs. Kelvin Cheung & Co.
          Hong Kong Trade Centre
          Unit 101, 1st Floor
          161-167 Des Voeux Road Central
          Hong Kong


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


AIR INDIA: Aviation Ministry to Seek Gov't OK for Capital Infusion
------------------------------------------------------------------
The civil aviation ministry will shortly seek cabinet's approval
to infuse equity into state-run carrier Air India, The Economic
Times reported citing Civil Aviation Minister Praful Patel.

The Times notes Mr. Patel told reporters on the sidelines of an
industry conference that the carrier was looking to reduce its
high-cost debt.

Mr. Patel, the Times says, did not specify a time frame for taking
the proposal to cabinet.

                        Staff Incentive Cut

The Hindu Business Line reports that the Air India management
plans to temporarily push back its planned reduction in the
productivity linked incentive scheme being paid to its 31,500
employees.

According to the Business Line, sources said the decision was
being considered in view of the festival season ahead.  The
Chairman and Managing Director has also been advised to look at
taking the workforce along right now, they added, pointing out
that the forthcoming elections to three State assemblies could
also be a consideration, the Business Line relates.

As reported in the TCR-AP on June 10, 2009, the National Aviation
Company of India Ltd., the holding company for the carrier, was
seeking INR14,000 crore in equity infusion, soft loans and grants.
The TCR-AP reported on June 19, 2009, that Air India has been
bleeding due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown.  Air India's losses have almost doubled to over INR4,000
crore in 2008-09 (INR2,226 crore in 2007-08), according to the
Hindustan Times.

A TCR-AP report on July 10, 2009, said NACIL is working overtime
to prepare by the month-end a business plan and a financial
restructuring plan.  NACIL is also expected to come up with plans
for the next six months, 12 months and 18 months for bringing in
cost reduction and improving revenue generation.

                          About Air India

Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world.  Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle East,
and Air India Cargo provides freight transportation.  The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on domestic
routes.  The combined airline, part of a new holding company
called National Aviation Company of India, uses the Air India
brand.  The new Air India and its affiliates have a fleet of more
than 110 aircraft altogether.


CMM INFRAPROJECTS: ICRA Assigns 'LBB-' Rating to Bank Debt
----------------------------------------------------------
ICRA has assigned an LBB- rating to the INR250 million bank lines
of CMM Infraprojects Limited.

The rating takes into account CIL's experienced management and its
reputed and diversified client base. The rating is, however,
constrained by competitive nature of the industry and CIL's
relatively low operating margins as compared to its peers.  This
coupled with CIL's relatively high gearing levels (gearing of 2.34
times as on March 31, 2009) has resulted in weak debt protection
indicators.  Further, CIL's modest scale of operations and low
net-worth limits its ability to bid for larger and more complex
projects. Going forward, ICRA expects CIL's profitability to
remain under pressure owing to intense competition which is likely
to lead to modest cash accruals in the medium term.

CMM Infraprojects Limited is a public limited company engaged in
construction of office buildings, school buildings, staff
quarters, residential complexes, commercial complexes, group
housing societies, hostels etc. for various clients in public and
private sectors.  CIL was promoted by Mr. Kishan Mundra, who has
been carrying out the construction business since 1997, under a
partnership firm.  CIL began operations in FY2006 when all the
assets and liabilities of the partnership firm were transferred in
the books of CIL.  In FY2009 as per provisional numbers provided
by the company, it achieved a turnover of INR 290.9 million and a
PAT of INR 0.94 million.


DY UPPAR: ICRA Assigns 'LB+' Rating on INR350MM Fund Based Limits
-----------------------------------------------------------------
ICRA has assigned an LB+ rating to the INR350 million fund based
limits of DY Uppar.

ICRA's rating takes into account the relatively high business
risks arising out of the high competitive intensity of the
construction industry and high sectoral, geographical and client
concentration risks of DYU.  The rating also takes into account
DYU's high gearing on account of the debt funded capital
expenditure and high working capital intensity and its stretched
liquidity profile.  DYU is largely involved in executing
irrigation projects in the state of Karnataka for water utilities
namely Karnataka Neeravari Nigam Ltd., Krishna Bhagya Jala Nigam
Ltd. and Cauvery Neeravari Nigam Ltd. and this exposes the firm to
any slowdown in new orders by these departments.  Further, due to
erratic payment by these agencies, the firm has lumpy cash flows
which leads to tight liquidity conditions.  This has also caused
delays by the firm in meeting its debt obligations towards the
lenders in the past.  High working capital intensity, the debt
funded capital expenditure in FY2008, and regular drawings by the
proprietor have together led to high gearing for the firm (3.6
times as on March 31, 2009).  Further, the rating takes into
account the limited number of projects in the current order book
which increases the revenue volatility on account of any possible
delays in these projects.  However, the rating draws comfort from
long track record of the proprietor in the business of civil
construction in Karnataka, robust profitability of DYU and lower
possibility of execution delays and geographical surprises given
the short execution cycle of the projects.

                          About DY Uppar

DY Uppar is a sole proprietorship with more than 36 years of
experience in civil construction in Karnataka.  The firm is
promoted by Mr. D. Y. Uppar, age 65 years, who has long experience
in the construction space, mainly in irrigation segment in the
state of Karnataka.  The firm is a registered Class I contractor
with the Karnataka PWD, which allows the firm to bid for the
largest projects of the Karnataka PWD.


KANDAGIRI SPINNING: CARE Assigns 'CARE BB' Rating on Bank Debts
---------------------------------------------------------------
CARE has assigned 'CARE BB' rating to the Long-term Bank
Facilities of Kandagiri Spinning Mills Limited aggregating
INR110.06 crore.  Facilities with this rating are considered to
offer inadequate safety for timely servicing of debt obligations.
Such facilities carry high credit risk.

Further, CARE has assigned a 'PR4' rating to the Short-term Bank
Facilities of KSL aggregating INR9.40 crore.  This rating is
applicable for facilities having tenure up to one year.
Facilities with this rating would have inadequate capacity for
timely repayment of short-term debt obligations at the time of
rating and carry very high credit risk.  Such facilities are
susceptible to default.

CARE assigns '+' or '-' signs to be shown after the assigned
rating (wherever necessary) to indicate the relative position
within the band covered by the rating symbol.

Rating Rationale

The ratings are constrained by weak financial risk profile as
evidenced by high gearing, tight liquidity and low RoCE,
unfavorable industry scenario and consequent losses in FY09, KSL's
presence solely in the spinning segment which leads to volatile
earnings, and poor power supply situation in Tamil Nadu, where the
company's facilities are located.  The rating also takes into
account the reschedulement of loan and the circumstances which
necessitated the same.  The rating also factors in KSL's
established track record along with promoter's vast experience in
the cotton spinning industry, its diverse products which offer
various counts of yarn and value additions, synergies of
operations with group firm (Sambandam Spinning Mills Ltd) and the
longstanding relationship with customers and ginners.

                     About Kandagiri Spinning

KSL was originally incorporated in 1976 and became public limited
company in 1992.  The company belongs to 'Sambandam' Group of
Salem, Tamil Nadu and is engaged in textile spinning with an
aggregate capacity of 67388 spindles and 552 rotors spread
among three units manufacturing cotton yarn of various counts.
For the year ended March 31, 2008, KSL posted a PAT of INR4.58 cr
on a total income of INR82.20 cr.  The company reported a net loss
of INR2.51 cr on a total income of INR85.85 cr as per provisional
financials for the year ended March 31, 2009.  With poor cash
generation from operations in FY09 and tight liquidity position as
a result, the company had to approach its bankers for
reschedulement of the loans.  Though reschedulement has offered
some respite in the short term, continuation of adverse market
conditions would be challenging.  At the same time, promoter's
vast experience and the diverse product offering is expected to
help the company reclaim the margins and generate sufficient cash
flow to effect an improvement in its financial risk profile.


NAGAR KOPARGAON: ICRA Places 'LB+' Rating on LT Bank Facilities
---------------------------------------------------------------
ICRA has assigned an LB+ rating to the long term sanctioned bank
limits of Nagar Kopargaon Infrastructure Private Limited.

The rating is constrained, among other factors, by the funding
risk arising out of a delay in disbursement of funds due to a
delay in securing debt tie-up for the project and potential cash
flow mismatches associated with debt repayment.  Ram
Infrastructure Limited (rated LB+ by ICRA), the parent company of
NKIPL, has provided a corporate guarantee for the debt availed by
NKIPL.  The rating also takes into account a certain provision in
the concession agreement which allows for the downward revision in
toll rates by 10% by Government of Maharashtra (GoM) once during
the concession period.  The rating, however, draws comfort from
the limited execution risk of the project and the fact that the
project corridor is an important route with substantial
established traffic without any significant alternate routes.

Nagar Kopargaon Infrastructure Private Limited is a Special
Purpose Vehicle formed by RIL in May 2007 to undertake the project
of four laning of a stretch of State Highway (S.H.) No. 10 in
Maharashtra from Kolhar to Ahmednagar. Currently, RIL has a 99.97%
shareholding in NKIPL.  The project was awarded by GoM, Public
Works Department (PWD) on a Build Operate and Transfer (BOT) basis
with a concession period of 10 years 4 months and 3 days
commencing from May 2007.  As per the 30 month construction period
of the project, the scheduled Commercial Operation Date (COD) is
November 2009.  The length of the project corridor is 55.50 km.
The total project cost is estimated as INR1.49 billion which is to
be funded by INR932 million of debt and INR564 million of equity
i.e. in a debt to equity ratio of 1.65:1.


TATA MOTORS: May Sell Up to 15% Stake in Vehicle Financing Unit
---------------------------------------------------------------
Tata Motors Ltd may sell about 10% to 15% equity stake in its
subsidiary Tata Motors Finance to raise funds for reducing its
debt, The Economic Times reports citing two persons familiar with
the development.  The Times said the stake sale in its vehicle
financing unit could likely fetch Tata Motors about INR200 crore,
which would value the wholly-owned subsidiary at about INR1,300
crore to INR2,000 crore.

Tata Capital, the group's finance arm, could buy the stake from
Tata Motors, the report said.

According to the Times, Tata Motors said it would sell equity
stakes in various subsidiaries as part of a plan to reduce the
company's INR24,000-crore debt.

Separately, the Business Standard reports that Tata Motors raised
INR236.5 crore on September 14 by selling nearly half of its
current investment in group firm Tata Steel Ltd.

The Standard says the company sold five million shares of Tata
Steel to group holding firm Tata Sons for INR473 a share.

Tata Motors earlier in June sold 11 million shares of Tata Steel
to Tata Sons for INR457 crore, the Standard relates.  Tata Motors
now holds 5.44 million shares of Tata Steel.

                         About Tata Motors

India's largest automobile company, Tata Motors Limited --
http://www.tatamotors.com/-- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the company.  The company's operating segments consists of
Automotive and Others.  In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations.  TML is listed on the Bombay Stock
Exchange, the National Stock Exchange of India and New York
Stock Exchange.  It was ultimately 33.4% owned by the Tata Group
as of December 2007.

Tata Motors has operations in Russia and the United Kingdom.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 6, 2009, Standard & Poor's Ratings Services said that it had
lowered its long term corporate credit rating on India-based Tata
Motors Ltd. to 'B' from 'B+'.  The outlook is negative.  At the
same time, Standard & Poor's lowered the issue rating on the
company's senior unsecured notes to 'B' from 'B+'.  Both ratings
were removed from CreditWatch, where they were placed with
negative implications on December 18, 2009, and refreshed in
March 2009.


TATA STEEL: May Refinance Around US$900-Mln Corus Debt
------------------------------------------------------
Tata Steel Ltd may refinance around US$900 million that it had
raised to partly fund its acquisition of Anglo-Dutch steel maker
Corus in 2007, Dow Jones Newswires reports citing a person
familiar with the matter.

"The company is yet to decide on the modalities of the
refinancing," the person told Dow Jones Newswires, asking not to
be named.

Dow Jones relates that Tata Steel had raised US$875 million via a
foreign currency convertible alternative reference securities
offering, or CARS, for its US$12 billion Corus acquisition.  The
CARS expires in 2012, the report notes.

At the time of issuance in 2007, says Dow Jones, the Tata Group
company had said that the CARS will be convertible into either
qualifying securities or ordinary shares at an initial conversion
price of 876.6225 rupees (US$18.225) a share.

On May 15, 2009, the Troubled Company Reporter-Europe, citing
Times of India, reported Tata Steel UK, a wholly owned subsidiary
of Tata Steel Ltd, sought an easing on the terms of the loans as
the economic slowdown could hit its earnings, straining its
ability to service the loan.

The TCR-Europe reported June 2, 2009, that Tata Steel UK got
approval from banks to ease conditions on GBP3.7 billion of loans
it took to buy Corus.  The revised covenant did not include any
additional finance from the lenders or rescheduling of debt
servicing commitments.

                   About Tata Steel UK Limited

Tata Steel UK Limited is the 100% subsidiary of Tata Steel Ltd,
and is the holding company for its European steel operations,
which principally consists of the Corus group.

                     About Tata Steel Limited

Headquartered in Mumbai, India, Tata Steel Limited --
http://www.tatasteel.com/-- is a diversified steel producer.  It
has operations in 24 countries and commercial presence in over 50
countries.  Its operations predominantly relate to manufacture of
steel and ferro alloys and minerals business. Other business
segments comprises of tubes and bearings.  On April 2, 2007, Tata
Steel UK Limited (TSUK), a subsidiary of Tulip UK Holding No.1,
which in turn is a subsidiary of Tata Steel completed the
acquisition of Corus Group plc.  Tata Metaliks Limited, which is
engaged in the business of manufacturing and selling pig iron,
became a subsidiary of the Company with effect from February 1,
2008.  In September 2008, the Company acquired a 7.3% interest in
Riversdale Mining Ltd.

                          *     *     *

As reported in the Troubled Company Reporter-Asia on June 10,
2009, Moody's Investors Service downgraded the corporate family
rating of Tata Steel Ltd to Ba3 from Ba2.  Moody's said the rating
outlook is stable.


VASANTHA SPINNERS: ICRA Rates INR327 Million Term Loans at 'LBB'
----------------------------------------------------------------
ICRA has assigned an LBB rating to the INR327 million term loans
and INR 165 million cash credit facilities of Vasantha Spinners
Limited indicating inadequate-credit-quality.  ICRA has also
assigned an A4 rating to the INR20 million fund based facilities
and INR14 million non-fund based facilities of VSL indicating
risk-prone-credit-quality in the short term.

The ratings are constrained by the modest scale of operations of
the company, stretched capital structure, sluggish demand for yarn
on account of economic slowdown, volatility in raw material costs
affecting operating margins and surplus capacities in a fragmented
industry structure restricting pricing flexibility. The ratings
favorably factors in the experience of promoters and management in
cotton trading/procurement activities and spinning businesses,
proximity to cotton growing areas and low power and labor costs.

                      About Vasantha Spinners

Vasantha Spinners Limited, incorporated in 2005, is primarily
engaged in production of cotton yarn.  VSL has spinning facilities
located in Guntur District; project was set up with the support of
the Technology Upgradation Fund Scheme (TUFS) of the Central
Government.  Commercial production started from Jan 29th, 2007
with capacity of 26,400 spindles and the company started operating
at full capacity from August, 2007 onwards.  The company enhanced
its production capacity by 25% i.e. it added 6,720 spindles from
April, 2009 onwards. Hence current capacity stands at 33,120
spindles. The company produces cotton yarn in counts ranging from
38s to 60s for both knitting as well as weaving segments with 70%
in combed and 30% in carded variety. The Company"s objective is to
set up an integrated textile unit with backward integration into
ginning and forward integration into processing and weaving
activities.

As per unaudited results for FY 2009, company had sales of
INR429.6 million with operating margin at 21.2 % with Profit
before tax of INR 34.3 million.


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


BANK CENTRAL: Moody's Raises Foreign Cur. Deposit Rating to Ba3
---------------------------------------------------------------
Moody's Investors Service has changed the credit ratings of 10
Indonesian banks.

Specifically, Moody's has lowered the global local currency
deposit ratings to Baa3 from Baa2 for the four state-owned banks -
Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia and
Bank Tabungan Negara.  The revised ratings carry stable outlooks.

At the same time, Moody's has confirmed the Baa3 GLC deposit
ratings for six banks - Bank Central Asia, Bank CIMB-Niaga, Bank
Danamon Indonesia, Bank Internasional Indonesia, Bank Permata and
Pan Indonesia Bank -- with stable outlooks.

In addition, Moody's has raised the foreign currency long-term
deposit ratings to Ba3 from B1 for all 10 banks.  The revised
ratings carry stable outlooks.

The banks are Bank Central Asia, Bank CIMB-Niaga, Bank Danamon
Indonesia, Bank Internasional Indonesia, Bank Mandiri, Bank Negara
Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan
Negara and Pan Indonesia Bank.

Furthermore, Moody's has raised the foreign currency issuer
ratings for Bank Central Asia, Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2 and the foreign currency
subordinated debt ratings for Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2.  The revised ratings
carry stable outlooks.

The rating actions are attributable to two factors.

First, to conclude the review initiated on May 20, 2009 to examine
the systemic support assumption used in Moody's Joint-Default
Analysis application.  These actions are part of a Moody's global
initiative and therefore do not reflect any deterioration in
Indonesia's macro-fundamentals nor any change in the government's
behavior towards the banking system.

Second, the rating changes also incorporate similar actions taken
on Indonesia's sovereign ratings on September 16, 2009.
Specifically, these ratings were raised: foreign currency and
local currency government bond to Ba2 from Ba3; foreign currency
deposit ceiling to Ba3 from B1 and the foreign currency bond
ceiling to Ba1 from Ba2.  See press release of September 16, 2009,
for greater discussion on sovereign issues.

Beatrice Woo, Moody's Vice President and Senior Credit Officer,
explains the rating actions below.

           Change in Systemic Support Indicator for JDA

In May 2009, Moody's commented on its global review of the support
capacity of a government and a central bank for its banking system
in the special comment titled "Financial Crisis More Closely
Aligns Bank Credit Risk and Government Ratings in Non-Aaa
Countries."

Consistent with the analytical criteria specified in that report
and in light of Indonesia's current situation and future
prospects, Moody's has concluded that the systemic support input
for Indonesian bank ratings be changed to Baa3 from Baa2, the
former being two notches above Indonesia's local currency
government debt rating of Ba2.  Accordingly, Indonesian bank
ratings are affected as the input is applied in the JDA
application.

In Moody's view, Indonesia has a highly supportive banking
framework, evidenced by government behavior towards the banks
during the 1997 Asian financial crisis as well as during this
current downturn.  As early as September 2008, the government had
been proactive in establishing support measures to stabilize and
provide liquidity to the banking system.

Among its programs are an increase in the maximum amount of
deposits insured to IDR2 billion from IDR100 million, the
eligibility of current credits as collateral for short-term
liquidity facilities, and the lowering of minimum reserve
requirements for Indonesian rupiah and foreign currency.  In
addition, the government has secured USD5.5 billion in contingent
lines of support from the Asian Development Bank, World Bank and
others.

In the Special Comment, Moody's points out that the appropriate
reference rating for the capacity of a national government to
provide support to banks in a prolonged and widespread crisis
would be aligned with or constrained by the government's own debt
rating.  However, Moody's also believes that this rating could be
adjusted, usually positively, to reflect the non-fiscally
dependent measures that many central banks and governments can
deploy to support banks.

In deciding whether the local currency-denominated deposits of a
bank can be rated higher than the local currency-denominated debt
issued by the national government due to systemic support, Moody's
considers a number of factors for each banking system.  These are
the size of the banking sector relative to the government's
resources, the level of stress in the banking system and in the
economy, the foreign currency obligations of the banking system
relative to the government's own foreign currency resources,
political and historical patterns, and the possibility of any
drastic shift in government priorities.

With regard to Indonesia, the banking system is not large, as
shown by the ratio of banking assets equaling 47% of GDP.  This
ratio has halved from that during the 1997 crisis.  For the 10
Moody's rated banks, their creditworthiness is modest, as measured
by their weighted average bank financial strength rating (BFSR) of
D.  These banks account for close to two thirds of system
deposits.

At the same time, the level of credit stress in the banking system
has increased moderately following the worldwide recession.  The
system non-performing loans ratio inched up to 4.06% at July 2009
from 3.2% at end-2008.  Furthermore, rapid loan growth --
averaging 20% annually over the past five years -- could be a
potential source of higher credit costs.

However, the banks have adequate capital buffer for their rating
ranges; system capital adequacy ratio was 17.34% at July 2009.  In
addition, the foreign currency obligations of the banking system
-- 14% of liabilities -- are not stretched.  As 99% of this
funding comprises deposits, this source is regarded as more
stable.

Finally, the political and historical patterns for assessing
Indonesia as a highly supportive banking framework are compelling.
During the 1997 crisis, the government issued a blanket guarantee
which covered banks' liabilities in Indonesian rupiah and foreign
currency for both depositors and creditors.  Since 2004, small
banks have been closed and one bank recently liquidated, but they
are insufficiently significant to cause a systemic stress.

Furthermore, the banking landscape is concentrated at the large
end, with the top 10 banks -- out of a total of 122 players --
controlling nearly two thirds of system deposits.  In Moody's
opinion, this structure provides huge incentives for the
government to support the banks.

In conclusion, the Baa3 systemic support input for Indonesian
banks is two notches above the Ba2 local currency government debt
rating.  The uplift is predicated on Moody's view that the risk of
a system-wide banking crisis is low and that the likelihood of the
government "ring-fencing" its own fiscal position from the banking
system is medium.

The last rating actions on all 10 banks were taken on May 20, 2009
when their global local currency deposit ratings were placed on
review for possible downgrade.  At the same time, the Ba2 foreign
currency subordinated debt ratings of Bank CIMB-Niaga and Bank
Internasional Indonesia were placed on review for possible
downgrade.

Bank Central Asia, headquartered in Jakarta, had assets of
IDR255.1 trillion at June 2009.

Bank CIMB-Niaga, headquartered in Jakarta, had assets of IDR102.1
trillion at June 2009.

Bank Danamon Indonesia, headquartered in Jakarta, had assets of
IDR98.9 trillion at June 2009.

Bank Internasional Indonesia, headquartered in Jakarta, had assets
of IDR52.0 trillion at June 2009.

Bank Mandiri, headquartered in Jakarta, had assets of
IDR358.9 trillion at June 2009.

Bank Negara Indonesia, headquartered in Jakarta, had assets of
IDR203.6 trillion at June 2009.

Bank Permata, headquartered in Jakarta, had assets of IDR54.0
trillion at June 2009.

Bank Rakyat Indonesia, headquartered in Jakarta, had assets of
IDR268.0 trillion at June 2009.

Bank Tabungan Negara headquartered in Jakarta, had assets of
IDR48.7 trillion at June 2009.

Pan Indonesia Bank, headquartered in Jakarta, had assets of
IDR71.2 trillion at June 2009.

                    Detailed Ratings And Actions

* Bank Central Asia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  These ratings were raised: foreign currency
  long-term deposit rating to Ba3 from B1 and issuer to Ba1 from
  Ba2.  The revised ratings carry stable outlooks.  All other
  ratings are unaffected and carry stable outlooks: foreign
  currency short-term deposit of Not Prime and BFSR of D+;

* Bank CIMB-Niaga: GLC deposit of Baa3 was confirmed with a stable
  outlook.  These ratings were raised: foreign currency long-term
  deposit rating to Ba3 from B1 and foreign currency issuer/
  subordinated debt to Ba1 from Ba2.  The revised ratings carry
  stable outlooks.  All other ratings are unaffected and carry
  stable outlooks: foreign currency short-term deposit of Not
  Prime and BFSR of D;

* Bank Danamon Indonesia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D;

* Bank Internasional Indonesia: GLC deposit of Baa3 was confirmed
  with a stable outlook.  These ratings were raised: foreign
  currency long-term deposit rating to Ba3 from B1 and foreign
  currency issuer/ subordinated debt to Ba1 from Ba2.  The revised
  ratings carry stable outlooks.  All other ratings are unaffected
  and carry stable outlooks: foreign currency short-term deposit
  of Not Prime and BFSR of D;

* Bank Mandiri: GLC deposit was lowered to Baa3 from Baa2.  The
  revised rating carries a stable outlook.  The foreign currency
  long-term deposit rating was raised to Ba3 from B1.  The revised
  rating carries a stable outlook.  All other ratings are
  unaffected and carry stable outlooks: foreign currency short-
  term deposit of Not Prime and BFSR of D-;

* Bank Negara Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-;

* Bank Permata: GLC deposit of Baa3 was confirmed with a stable
  outlook.  The foreign currency long-term deposit rating was
  raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D-;

* Bank Rakyat Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D+;

* Bank Tabungan Negara: GLC deposit was lowered to Baa3 from Baa2.
  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-; and

* Pan Indonesia Bank: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D.


BANK CIMB-NIAGA: Moody's Raises Foreign Cur. Deposit rating to Ba3
------------------------------------------------------------------
Moody's Investors Service has changed the credit ratings of 10
Indonesian banks.

Specifically, Moody's has lowered the global local currency
deposit ratings to Baa3 from Baa2 for the four state-owned banks -
Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia and
Bank Tabungan Negara.  The revised ratings carry stable outlooks.

At the same time, Moody's has confirmed the Baa3 GLC deposit
ratings for six banks - Bank Central Asia, Bank CIMB-Niaga, Bank
Danamon Indonesia, Bank Internasional Indonesia, Bank Permata and
Pan Indonesia Bank -- with stable outlooks.

In addition, Moody's has raised the foreign currency long-term
deposit ratings to Ba3 from B1 for all 10 banks.  The revised
ratings carry stable outlooks.

The banks are Bank Central Asia, Bank CIMB-Niaga, Bank Danamon
Indonesia, Bank Internasional Indonesia, Bank Mandiri, Bank Negara
Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan
Negara and Pan Indonesia Bank.

Furthermore, Moody's has raised the foreign currency issuer
ratings for Bank Central Asia, Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2 and the foreign currency
subordinated debt ratings for Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2.  The revised ratings
carry stable outlooks.

The rating actions are attributable to two factors.

First, to conclude the review initiated on May 20, 2009 to examine
the systemic support assumption used in Moody's Joint-Default
Analysis application.  These actions are part of a Moody's global
initiative and therefore do not reflect any deterioration in
Indonesia's macro-fundamentals nor any change in the government's
behavior towards the banking system.

Second, the rating changes also incorporate similar actions taken
on Indonesia's sovereign ratings on September 16, 2009.
Specifically, these ratings were raised: foreign currency and
local currency government bond to Ba2 from Ba3; foreign currency
deposit ceiling to Ba3 from B1 and the foreign currency bond
ceiling to Ba1 from Ba2.  See press release of September 16, 2009,
for greater discussion on sovereign issues.

Beatrice Woo, Moody's Vice President and Senior Credit Officer,
explains the rating actions below.

           Change in Systemic Support Indicator for JDA

In May 2009, Moody's commented on its global review of the support
capacity of a government and a central bank for its banking system
in the special comment titled "Financial Crisis More Closely
Aligns Bank Credit Risk and Government Ratings in Non-Aaa
Countries."

Consistent with the analytical criteria specified in that report
and in light of Indonesia's current situation and future
prospects, Moody's has concluded that the systemic support input
for Indonesian bank ratings be changed to Baa3 from Baa2, the
former being two notches above Indonesia's local currency
government debt rating of Ba2.  Accordingly, Indonesian bank
ratings are affected as the input is applied in the JDA
application.

In Moody's view, Indonesia has a highly supportive banking
framework, evidenced by government behavior towards the banks
during the 1997 Asian financial crisis as well as during this
current downturn.  As early as September 2008, the government had
been proactive in establishing support measures to stabilize and
provide liquidity to the banking system.

Among its programs are an increase in the maximum amount of
deposits insured to IDR2 billion from IDR100 million, the
eligibility of current credits as collateral for short-term
liquidity facilities, and the lowering of minimum reserve
requirements for Indonesian rupiah and foreign currency.  In
addition, the government has secured USD5.5 billion in contingent
lines of support from the Asian Development Bank, World Bank and
others.

In the Special Comment, Moody's points out that the appropriate
reference rating for the capacity of a national government to
provide support to banks in a prolonged and widespread crisis
would be aligned with or constrained by the government's own debt
rating.  However, Moody's also believes that this rating could be
adjusted, usually positively, to reflect the non-fiscally
dependent measures that many central banks and governments can
deploy to support banks.

In deciding whether the local currency-denominated deposits of a
bank can be rated higher than the local currency-denominated debt
issued by the national government due to systemic support, Moody's
considers a number of factors for each banking system.  These are
the size of the banking sector relative to the government's
resources, the level of stress in the banking system and in the
economy, the foreign currency obligations of the banking system
relative to the government's own foreign currency resources,
political and historical patterns, and the possibility of any
drastic shift in government priorities.

With regard to Indonesia, the banking system is not large, as
shown by the ratio of banking assets equaling 47% of GDP.  This
ratio has halved from that during the 1997 crisis.  For the 10
Moody's rated banks, their creditworthiness is modest, as measured
by their weighted average bank financial strength rating (BFSR) of
D.  These banks account for close to two thirds of system
deposits.

At the same time, the level of credit stress in the banking system
has increased moderately following the worldwide recession.  The
system non-performing loans ratio inched up to 4.06% at July 2009
from 3.2% at end-2008.  Furthermore, rapid loan growth --
averaging 20% annually over the past five years -- could be a
potential source of higher credit costs.

However, the banks have adequate capital buffer for their rating
ranges; system capital adequacy ratio was 17.34% at July 2009.  In
addition, the foreign currency obligations of the banking system
-- 14% of liabilities -- are not stretched.  As 99% of this
funding comprises deposits, this source is regarded as more
stable.

Finally, the political and historical patterns for assessing
Indonesia as a highly supportive banking framework are compelling.
During the 1997 crisis, the government issued a blanket guarantee
which covered banks' liabilities in Indonesian rupiah and foreign
currency for both depositors and creditors.  Since 2004, small
banks have been closed and one bank recently liquidated, but they
are insufficiently significant to cause a systemic stress.

Furthermore, the banking landscape is concentrated at the large
end, with the top 10 banks -- out of a total of 122 players --
controlling nearly two thirds of system deposits.  In Moody's
opinion, this structure provides huge incentives for the
government to support the banks.

In conclusion, the Baa3 systemic support input for Indonesian
banks is two notches above the Ba2 local currency government debt
rating.  The uplift is predicated on Moody's view that the risk of
a system-wide banking crisis is low and that the likelihood of the
government "ring-fencing" its own fiscal position from the banking
system is medium.

The last rating actions on all 10 banks were taken on May 20, 2009
when their global local currency deposit ratings were placed on
review for possible downgrade.  At the same time, the Ba2 foreign
currency subordinated debt ratings of Bank CIMB-Niaga and Bank
Internasional Indonesia were placed on review for possible
downgrade.

Bank Central Asia, headquartered in Jakarta, had assets of
IDR255.1 trillion at June 2009.

Bank CIMB-Niaga, headquartered in Jakarta, had assets of IDR102.1
trillion at June 2009.

Bank Danamon Indonesia, headquartered in Jakarta, had assets of
IDR98.9 trillion at June 2009.

Bank Internasional Indonesia, headquartered in Jakarta, had assets
of IDR52.0 trillion at June 2009.

Bank Mandiri, headquartered in Jakarta, had assets of
IDR358.9 trillion at June 2009.

Bank Negara Indonesia, headquartered in Jakarta, had assets of
IDR203.6 trillion at June 2009.

Bank Permata, headquartered in Jakarta, had assets of IDR54.0
trillion at June 2009.

Bank Rakyat Indonesia, headquartered in Jakarta, had assets of
IDR268.0 trillion at June 2009.

Bank Tabungan Negara headquartered in Jakarta, had assets of
IDR48.7 trillion at June 2009.

Pan Indonesia Bank, headquartered in Jakarta, had assets of
IDR71.2 trillion at June 2009.

                    Detailed Ratings And Actions

* Bank Central Asia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  These ratings were raised: foreign currency
  long-term deposit rating to Ba3 from B1 and issuer to Ba1 from
  Ba2.  The revised ratings carry stable outlooks.  All other
  ratings are unaffected and carry stable outlooks: foreign
  currency short-term deposit of Not Prime and BFSR of D+;

* Bank CIMB-Niaga: GLC deposit of Baa3 was confirmed with a stable
  outlook.  These ratings were raised: foreign currency long-term
  deposit rating to Ba3 from B1 and foreign currency issuer/
  subordinated debt to Ba1 from Ba2.  The revised ratings carry
  stable outlooks.  All other ratings are unaffected and carry
  stable outlooks: foreign currency short-term deposit of Not
  Prime and BFSR of D;

* Bank Danamon Indonesia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D;

* Bank Internasional Indonesia: GLC deposit of Baa3 was confirmed
  with a stable outlook.  These ratings were raised: foreign
  currency long-term deposit rating to Ba3 from B1 and foreign
  currency issuer/ subordinated debt to Ba1 from Ba2.  The revised
  ratings carry stable outlooks.  All other ratings are unaffected
  and carry stable outlooks: foreign currency short-term deposit
  of Not Prime and BFSR of D;

* Bank Mandiri: GLC deposit was lowered to Baa3 from Baa2.  The
  revised rating carries a stable outlook.  The foreign currency
  long-term deposit rating was raised to Ba3 from B1.  The revised
  rating carries a stable outlook.  All other ratings are
  unaffected and carry stable outlooks: foreign currency short-
  term deposit of Not Prime and BFSR of D-;

* Bank Negara Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-;

* Bank Permata: GLC deposit of Baa3 was confirmed with a stable
  outlook.  The foreign currency long-term deposit rating was
  raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D-;

* Bank Rakyat Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D+;

* Bank Tabungan Negara: GLC deposit was lowered to Baa3 from Baa2.
  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-; and

* Pan Indonesia Bank: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D.


BANK DANAMON: Moody's Raises Foreign Cur. Deposit Rating to Ba3
---------------------------------------------------------------
Moody's Investors Service has changed the credit ratings of 10
Indonesian banks.

Specifically, Moody's has lowered the global local currency
deposit ratings to Baa3 from Baa2 for the four state-owned banks -
Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia and
Bank Tabungan Negara.  The revised ratings carry stable outlooks.

At the same time, Moody's has confirmed the Baa3 GLC deposit
ratings for six banks - Bank Central Asia, Bank CIMB-Niaga, Bank
Danamon Indonesia, Bank Internasional Indonesia, Bank Permata and
Pan Indonesia Bank -- with stable outlooks.

In addition, Moody's has raised the foreign currency long-term
deposit ratings to Ba3 from B1 for all 10 banks.  The revised
ratings carry stable outlooks.

The banks are Bank Central Asia, Bank CIMB-Niaga, Bank Danamon
Indonesia, Bank Internasional Indonesia, Bank Mandiri, Bank Negara
Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan
Negara and Pan Indonesia Bank.

Furthermore, Moody's has raised the foreign currency issuer
ratings for Bank Central Asia, Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2 and the foreign currency
subordinated debt ratings for Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2.  The revised ratings
carry stable outlooks.

The rating actions are attributable to two factors.

First, to conclude the review initiated on May 20, 2009 to examine
the systemic support assumption used in Moody's Joint-Default
Analysis application.  These actions are part of a Moody's global
initiative and therefore do not reflect any deterioration in
Indonesia's macro-fundamentals nor any change in the government's
behavior towards the banking system.

Second, the rating changes also incorporate similar actions taken
on Indonesia's sovereign ratings on September 16, 2009.
Specifically, these ratings were raised: foreign currency and
local currency government bond to Ba2 from Ba3; foreign currency
deposit ceiling to Ba3 from B1 and the foreign currency bond
ceiling to Ba1 from Ba2.  See press release of September 16, 2009,
for greater discussion on sovereign issues.

Beatrice Woo, Moody's Vice President and Senior Credit Officer,
explains the rating actions below.

           Change in Systemic Support Indicator for JDA

In May 2009, Moody's commented on its global review of the support
capacity of a government and a central bank for its banking system
in the special comment titled "Financial Crisis More Closely
Aligns Bank Credit Risk and Government Ratings in Non-Aaa
Countries."

Consistent with the analytical criteria specified in that report
and in light of Indonesia's current situation and future
prospects, Moody's has concluded that the systemic support input
for Indonesian bank ratings be changed to Baa3 from Baa2, the
former being two notches above Indonesia's local currency
government debt rating of Ba2.  Accordingly, Indonesian bank
ratings are affected as the input is applied in the JDA
application.

In Moody's view, Indonesia has a highly supportive banking
framework, evidenced by government behavior towards the banks
during the 1997 Asian financial crisis as well as during this
current downturn.  As early as September 2008, the government had
been proactive in establishing support measures to stabilize and
provide liquidity to the banking system.

Among its programs are an increase in the maximum amount of
deposits insured to IDR2 billion from IDR100 million, the
eligibility of current credits as collateral for short-term
liquidity facilities, and the lowering of minimum reserve
requirements for Indonesian rupiah and foreign currency.  In
addition, the government has secured USD5.5 billion in contingent
lines of support from the Asian Development Bank, World Bank and
others.

In the Special Comment, Moody's points out that the appropriate
reference rating for the capacity of a national government to
provide support to banks in a prolonged and widespread crisis
would be aligned with or constrained by the government's own debt
rating.  However, Moody's also believes that this rating could be
adjusted, usually positively, to reflect the non-fiscally
dependent measures that many central banks and governments can
deploy to support banks.

In deciding whether the local currency-denominated deposits of a
bank can be rated higher than the local currency-denominated debt
issued by the national government due to systemic support, Moody's
considers a number of factors for each banking system.  These are
the size of the banking sector relative to the government's
resources, the level of stress in the banking system and in the
economy, the foreign currency obligations of the banking system
relative to the government's own foreign currency resources,
political and historical patterns, and the possibility of any
drastic shift in government priorities.

With regard to Indonesia, the banking system is not large, as
shown by the ratio of banking assets equaling 47% of GDP.  This
ratio has halved from that during the 1997 crisis.  For the 10
Moody's rated banks, their creditworthiness is modest, as measured
by their weighted average bank financial strength rating (BFSR) of
D.  These banks account for close to two thirds of system
deposits.

At the same time, the level of credit stress in the banking system
has increased moderately following the worldwide recession.  The
system non-performing loans ratio inched up to 4.06% at July 2009
from 3.2% at end-2008.  Furthermore, rapid loan growth --
averaging 20% annually over the past five years -- could be a
potential source of higher credit costs.

However, the banks have adequate capital buffer for their rating
ranges; system capital adequacy ratio was 17.34% at July 2009.  In
addition, the foreign currency obligations of the banking system
-- 14% of liabilities -- are not stretched.  As 99% of this
funding comprises deposits, this source is regarded as more
stable.

Finally, the political and historical patterns for assessing
Indonesia as a highly supportive banking framework are compelling.
During the 1997 crisis, the government issued a blanket guarantee
which covered banks' liabilities in Indonesian rupiah and foreign
currency for both depositors and creditors.  Since 2004, small
banks have been closed and one bank recently liquidated, but they
are insufficiently significant to cause a systemic stress.

Furthermore, the banking landscape is concentrated at the large
end, with the top 10 banks -- out of a total of 122 players --
controlling nearly two thirds of system deposits.  In Moody's
opinion, this structure provides huge incentives for the
government to support the banks.

In conclusion, the Baa3 systemic support input for Indonesian
banks is two notches above the Ba2 local currency government debt
rating.  The uplift is predicated on Moody's view that the risk of
a system-wide banking crisis is low and that the likelihood of the
government "ring-fencing" its own fiscal position from the banking
system is medium.

The last rating actions on all 10 banks were taken on May 20, 2009
when their global local currency deposit ratings were placed on
review for possible downgrade.  At the same time, the Ba2 foreign
currency subordinated debt ratings of Bank CIMB-Niaga and Bank
Internasional Indonesia were placed on review for possible
downgrade.

Bank Central Asia, headquartered in Jakarta, had assets of
IDR255.1 trillion at June 2009.

Bank CIMB-Niaga, headquartered in Jakarta, had assets of IDR102.1
trillion at June 2009.

Bank Danamon Indonesia, headquartered in Jakarta, had assets of
IDR98.9 trillion at June 2009.

Bank Internasional Indonesia, headquartered in Jakarta, had assets
of IDR52.0 trillion at June 2009.

Bank Mandiri, headquartered in Jakarta, had assets of
IDR358.9 trillion at June 2009.

Bank Negara Indonesia, headquartered in Jakarta, had assets of
IDR203.6 trillion at June 2009.

Bank Permata, headquartered in Jakarta, had assets of IDR54.0
trillion at June 2009.

Bank Rakyat Indonesia, headquartered in Jakarta, had assets of
IDR268.0 trillion at June 2009.

Bank Tabungan Negara headquartered in Jakarta, had assets of
IDR48.7 trillion at June 2009.

Pan Indonesia Bank, headquartered in Jakarta, had assets of
IDR71.2 trillion at June 2009.

                    Detailed Ratings And Actions

* Bank Central Asia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  These ratings were raised: foreign currency
  long-term deposit rating to Ba3 from B1 and issuer to Ba1 from
  Ba2.  The revised ratings carry stable outlooks.  All other
  ratings are unaffected and carry stable outlooks: foreign
  currency short-term deposit of Not Prime and BFSR of D+;

* Bank CIMB-Niaga: GLC deposit of Baa3 was confirmed with a stable
  outlook.  These ratings were raised: foreign currency long-term
  deposit rating to Ba3 from B1 and foreign currency issuer/
  subordinated debt to Ba1 from Ba2.  The revised ratings carry
  stable outlooks.  All other ratings are unaffected and carry
  stable outlooks: foreign currency short-term deposit of Not
  Prime and BFSR of D;

* Bank Danamon Indonesia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D;

* Bank Internasional Indonesia: GLC deposit of Baa3 was confirmed
  with a stable outlook.  These ratings were raised: foreign
  currency long-term deposit rating to Ba3 from B1 and foreign
  currency issuer/ subordinated debt to Ba1 from Ba2.  The revised
  ratings carry stable outlooks.  All other ratings are unaffected
  and carry stable outlooks: foreign currency short-term deposit
  of Not Prime and BFSR of D;

* Bank Mandiri: GLC deposit was lowered to Baa3 from Baa2.  The
  revised rating carries a stable outlook.  The foreign currency
  long-term deposit rating was raised to Ba3 from B1.  The revised
  rating carries a stable outlook.  All other ratings are
  unaffected and carry stable outlooks: foreign currency short-
  term deposit of Not Prime and BFSR of D-;

* Bank Negara Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-;

* Bank Permata: GLC deposit of Baa3 was confirmed with a stable
  outlook.  The foreign currency long-term deposit rating was
  raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D-;

* Bank Rakyat Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D+;

* Bank Tabungan Negara: GLC deposit was lowered to Baa3 from Baa2.
  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-; and

* Pan Indonesia Bank: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D.


BANK INTERNASIONAL: Moody's Raises For. Cur. Deposit Rating to Ba3
------------------------------------------------------------------
Moody's Investors Service has changed the credit ratings of 10
Indonesian banks.

Specifically, Moody's has lowered the global local currency
deposit ratings to Baa3 from Baa2 for the four state-owned banks -
Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia and
Bank Tabungan Negara.  The revised ratings carry stable outlooks.

At the same time, Moody's has confirmed the Baa3 GLC deposit
ratings for six banks - Bank Central Asia, Bank CIMB-Niaga, Bank
Danamon Indonesia, Bank Internasional Indonesia, Bank Permata and
Pan Indonesia Bank -- with stable outlooks.

In addition, Moody's has raised the foreign currency long-term
deposit ratings to Ba3 from B1 for all 10 banks.  The revised
ratings carry stable outlooks.

The banks are Bank Central Asia, Bank CIMB-Niaga, Bank Danamon
Indonesia, Bank Internasional Indonesia, Bank Mandiri, Bank Negara
Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan
Negara and Pan Indonesia Bank.

Furthermore, Moody's has raised the foreign currency issuer
ratings for Bank Central Asia, Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2 and the foreign currency
subordinated debt ratings for Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2.  The revised ratings
carry stable outlooks.

The rating actions are attributable to two factors.

First, to conclude the review initiated on May 20, 2009 to examine
the systemic support assumption used in Moody's Joint-Default
Analysis application.  These actions are part of a Moody's global
initiative and therefore do not reflect any deterioration in
Indonesia's macro-fundamentals nor any change in the government's
behavior towards the banking system.

Second, the rating changes also incorporate similar actions taken
on Indonesia's sovereign ratings on September 16, 2009.
Specifically, these ratings were raised: foreign currency and
local currency government bond to Ba2 from Ba3; foreign currency
deposit ceiling to Ba3 from B1 and the foreign currency bond
ceiling to Ba1 from Ba2.  See press release of September 16, 2009,
for greater discussion on sovereign issues.

Beatrice Woo, Moody's Vice President and Senior Credit Officer,
explains the rating actions below.

           Change in Systemic Support Indicator for JDA

In May 2009, Moody's commented on its global review of the support
capacity of a government and a central bank for its banking system
in the special comment titled "Financial Crisis More Closely
Aligns Bank Credit Risk and Government Ratings in Non-Aaa
Countries."

Consistent with the analytical criteria specified in that report
and in light of Indonesia's current situation and future
prospects, Moody's has concluded that the systemic support input
for Indonesian bank ratings be changed to Baa3 from Baa2, the
former being two notches above Indonesia's local currency
government debt rating of Ba2.  Accordingly, Indonesian bank
ratings are affected as the input is applied in the JDA
application.

In Moody's view, Indonesia has a highly supportive banking
framework, evidenced by government behavior towards the banks
during the 1997 Asian financial crisis as well as during this
current downturn.  As early as September 2008, the government had
been proactive in establishing support measures to stabilize and
provide liquidity to the banking system.

Among its programs are an increase in the maximum amount of
deposits insured to IDR2 billion from IDR100 million, the
eligibility of current credits as collateral for short-term
liquidity facilities, and the lowering of minimum reserve
requirements for Indonesian rupiah and foreign currency.  In
addition, the government has secured USD5.5 billion in contingent
lines of support from the Asian Development Bank, World Bank and
others.

In the Special Comment, Moody's points out that the appropriate
reference rating for the capacity of a national government to
provide support to banks in a prolonged and widespread crisis
would be aligned with or constrained by the government's own debt
rating.  However, Moody's also believes that this rating could be
adjusted, usually positively, to reflect the non-fiscally
dependent measures that many central banks and governments can
deploy to support banks.

In deciding whether the local currency-denominated deposits of a
bank can be rated higher than the local currency-denominated debt
issued by the national government due to systemic support, Moody's
considers a number of factors for each banking system.  These are
the size of the banking sector relative to the government's
resources, the level of stress in the banking system and in the
economy, the foreign currency obligations of the banking system
relative to the government's own foreign currency resources,
political and historical patterns, and the possibility of any
drastic shift in government priorities.

With regard to Indonesia, the banking system is not large, as
shown by the ratio of banking assets equaling 47% of GDP.  This
ratio has halved from that during the 1997 crisis.  For the 10
Moody's rated banks, their creditworthiness is modest, as measured
by their weighted average bank financial strength rating (BFSR) of
D.  These banks account for close to two thirds of system
deposits.

At the same time, the level of credit stress in the banking system
has increased moderately following the worldwide recession.  The
system non-performing loans ratio inched up to 4.06% at July 2009
from 3.2% at end-2008.  Furthermore, rapid loan growth --
averaging 20% annually over the past five years -- could be a
potential source of higher credit costs.

However, the banks have adequate capital buffer for their rating
ranges; system capital adequacy ratio was 17.34% at July 2009.  In
addition, the foreign currency obligations of the banking system
-- 14% of liabilities -- are not stretched.  As 99% of this
funding comprises deposits, this source is regarded as more
stable.

Finally, the political and historical patterns for assessing
Indonesia as a highly supportive banking framework are compelling.
During the 1997 crisis, the government issued a blanket guarantee
which covered banks' liabilities in Indonesian rupiah and foreign
currency for both depositors and creditors.  Since 2004, small
banks have been closed and one bank recently liquidated, but they
are insufficiently significant to cause a systemic stress.

Furthermore, the banking landscape is concentrated at the large
end, with the top 10 banks -- out of a total of 122 players --
controlling nearly two thirds of system deposits.  In Moody's
opinion, this structure provides huge incentives for the
government to support the banks.

In conclusion, the Baa3 systemic support input for Indonesian
banks is two notches above the Ba2 local currency government debt
rating.  The uplift is predicated on Moody's view that the risk of
a system-wide banking crisis is low and that the likelihood of the
government "ring-fencing" its own fiscal position from the banking
system is medium.

The last rating actions on all 10 banks were taken on May 20, 2009
when their global local currency deposit ratings were placed on
review for possible downgrade.  At the same time, the Ba2 foreign
currency subordinated debt ratings of Bank CIMB-Niaga and Bank
Internasional Indonesia were placed on review for possible
downgrade.

Bank Central Asia, headquartered in Jakarta, had assets of
IDR255.1 trillion at June 2009.

Bank CIMB-Niaga, headquartered in Jakarta, had assets of IDR102.1
trillion at June 2009.

Bank Danamon Indonesia, headquartered in Jakarta, had assets of
IDR98.9 trillion at June 2009.

Bank Internasional Indonesia, headquartered in Jakarta, had assets
of IDR52.0 trillion at June 2009.

Bank Mandiri, headquartered in Jakarta, had assets of
IDR358.9 trillion at June 2009.

Bank Negara Indonesia, headquartered in Jakarta, had assets of
IDR203.6 trillion at June 2009.

Bank Permata, headquartered in Jakarta, had assets of IDR54.0
trillion at June 2009.

Bank Rakyat Indonesia, headquartered in Jakarta, had assets of
IDR268.0 trillion at June 2009.

Bank Tabungan Negara headquartered in Jakarta, had assets of
IDR48.7 trillion at June 2009.

Pan Indonesia Bank, headquartered in Jakarta, had assets of
IDR71.2 trillion at June 2009.

                    Detailed Ratings And Actions

* Bank Central Asia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  These ratings were raised: foreign currency
  long-term deposit rating to Ba3 from B1 and issuer to Ba1 from
  Ba2.  The revised ratings carry stable outlooks.  All other
  ratings are unaffected and carry stable outlooks: foreign
  currency short-term deposit of Not Prime and BFSR of D+;

* Bank CIMB-Niaga: GLC deposit of Baa3 was confirmed with a stable
  outlook.  These ratings were raised: foreign currency long-term
  deposit rating to Ba3 from B1 and foreign currency issuer/
  subordinated debt to Ba1 from Ba2.  The revised ratings carry
  stable outlooks.  All other ratings are unaffected and carry
  stable outlooks: foreign currency short-term deposit of Not
  Prime and BFSR of D;

* Bank Danamon Indonesia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D;

* Bank Internasional Indonesia: GLC deposit of Baa3 was confirmed
  with a stable outlook.  These ratings were raised: foreign
  currency long-term deposit rating to Ba3 from B1 and foreign
  currency issuer/ subordinated debt to Ba1 from Ba2.  The revised
  ratings carry stable outlooks.  All other ratings are unaffected
  and carry stable outlooks: foreign currency short-term deposit
  of Not Prime and BFSR of D;

* Bank Mandiri: GLC deposit was lowered to Baa3 from Baa2.  The
  revised rating carries a stable outlook.  The foreign currency
  long-term deposit rating was raised to Ba3 from B1.  The revised
  rating carries a stable outlook.  All other ratings are
  unaffected and carry stable outlooks: foreign currency short-
  term deposit of Not Prime and BFSR of D-;

* Bank Negara Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-;

* Bank Permata: GLC deposit of Baa3 was confirmed with a stable
  outlook.  The foreign currency long-term deposit rating was
  raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D-;

* Bank Rakyat Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D+;

* Bank Tabungan Negara: GLC deposit was lowered to Baa3 from Baa2.
  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-; and

* Pan Indonesia Bank: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D.


BANK MANDIRI: Moody's Raises Foreign Cur. Deposit Rating to Ba3
---------------------------------------------------------------
Moody's Investors Service has changed the credit ratings of 10
Indonesian banks.

Specifically, Moody's has lowered the global local currency
deposit ratings to Baa3 from Baa2 for the four state-owned banks -
Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia and
Bank Tabungan Negara.  The revised ratings carry stable outlooks.

At the same time, Moody's has confirmed the Baa3 GLC deposit
ratings for six banks - Bank Central Asia, Bank CIMB-Niaga, Bank
Danamon Indonesia, Bank Internasional Indonesia, Bank Permata and
Pan Indonesia Bank -- with stable outlooks.

In addition, Moody's has raised the foreign currency long-term
deposit ratings to Ba3 from B1 for all 10 banks.  The revised
ratings carry stable outlooks.

The banks are Bank Central Asia, Bank CIMB-Niaga, Bank Danamon
Indonesia, Bank Internasional Indonesia, Bank Mandiri, Bank Negara
Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan
Negara and Pan Indonesia Bank.

Furthermore, Moody's has raised the foreign currency issuer
ratings for Bank Central Asia, Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2 and the foreign currency
subordinated debt ratings for Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2.  The revised ratings
carry stable outlooks.

The rating actions are attributable to two factors.

First, to conclude the review initiated on May 20, 2009 to examine
the systemic support assumption used in Moody's Joint-Default
Analysis application.  These actions are part of a Moody's global
initiative and therefore do not reflect any deterioration in
Indonesia's macro-fundamentals nor any change in the government's
behavior towards the banking system.

Second, the rating changes also incorporate similar actions taken
on Indonesia's sovereign ratings on September 16, 2009.
Specifically, these ratings were raised: foreign currency and
local currency government bond to Ba2 from Ba3; foreign currency
deposit ceiling to Ba3 from B1 and the foreign currency bond
ceiling to Ba1 from Ba2.  See press release of September 16, 2009,
for greater discussion on sovereign issues.

Beatrice Woo, Moody's Vice President and Senior Credit Officer,
explains the rating actions below.

           Change in Systemic Support Indicator for JDA

In May 2009, Moody's commented on its global review of the support
capacity of a government and a central bank for its banking system
in the special comment titled "Financial Crisis More Closely
Aligns Bank Credit Risk and Government Ratings in Non-Aaa
Countries."

Consistent with the analytical criteria specified in that report
and in light of Indonesia's current situation and future
prospects, Moody's has concluded that the systemic support input
for Indonesian bank ratings be changed to Baa3 from Baa2, the
former being two notches above Indonesia's local currency
government debt rating of Ba2.  Accordingly, Indonesian bank
ratings are affected as the input is applied in the JDA
application.

In Moody's view, Indonesia has a highly supportive banking
framework, evidenced by government behavior towards the banks
during the 1997 Asian financial crisis as well as during this
current downturn.  As early as September 2008, the government had
been proactive in establishing support measures to stabilize and
provide liquidity to the banking system.

Among its programs are an increase in the maximum amount of
deposits insured to IDR2 billion from IDR100 million, the
eligibility of current credits as collateral for short-term
liquidity facilities, and the lowering of minimum reserve
requirements for Indonesian rupiah and foreign currency.  In
addition, the government has secured USD5.5 billion in contingent
lines of support from the Asian Development Bank, World Bank and
others.

In the Special Comment, Moody's points out that the appropriate
reference rating for the capacity of a national government to
provide support to banks in a prolonged and widespread crisis
would be aligned with or constrained by the government's own debt
rating.  However, Moody's also believes that this rating could be
adjusted, usually positively, to reflect the non-fiscally
dependent measures that many central banks and governments can
deploy to support banks.

In deciding whether the local currency-denominated deposits of a
bank can be rated higher than the local currency-denominated debt
issued by the national government due to systemic support, Moody's
considers a number of factors for each banking system.  These are
the size of the banking sector relative to the government's
resources, the level of stress in the banking system and in the
economy, the foreign currency obligations of the banking system
relative to the government's own foreign currency resources,
political and historical patterns, and the possibility of any
drastic shift in government priorities.

With regard to Indonesia, the banking system is not large, as
shown by the ratio of banking assets equaling 47% of GDP.  This
ratio has halved from that during the 1997 crisis.  For the 10
Moody's rated banks, their creditworthiness is modest, as measured
by their weighted average bank financial strength rating (BFSR) of
D.  These banks account for close to two thirds of system
deposits.

At the same time, the level of credit stress in the banking system
has increased moderately following the worldwide recession.  The
system non-performing loans ratio inched up to 4.06% at July 2009
from 3.2% at end-2008.  Furthermore, rapid loan growth --
averaging 20% annually over the past five years -- could be a
potential source of higher credit costs.

However, the banks have adequate capital buffer for their rating
ranges; system capital adequacy ratio was 17.34% at July 2009.  In
addition, the foreign currency obligations of the banking system
-- 14% of liabilities -- are not stretched.  As 99% of this
funding comprises deposits, this source is regarded as more
stable.

Finally, the political and historical patterns for assessing
Indonesia as a highly supportive banking framework are compelling.
During the 1997 crisis, the government issued a blanket guarantee
which covered banks' liabilities in Indonesian rupiah and foreign
currency for both depositors and creditors.  Since 2004, small
banks have been closed and one bank recently liquidated, but they
are insufficiently significant to cause a systemic stress.

Furthermore, the banking landscape is concentrated at the large
end, with the top 10 banks -- out of a total of 122 players --
controlling nearly two thirds of system deposits.  In Moody's
opinion, this structure provides huge incentives for the
government to support the banks.

In conclusion, the Baa3 systemic support input for Indonesian
banks is two notches above the Ba2 local currency government debt
rating.  The uplift is predicated on Moody's view that the risk of
a system-wide banking crisis is low and that the likelihood of the
government "ring-fencing" its own fiscal position from the banking
system is medium.

The last rating actions on all 10 banks were taken on May 20, 2009
when their global local currency deposit ratings were placed on
review for possible downgrade.  At the same time, the Ba2 foreign
currency subordinated debt ratings of Bank CIMB-Niaga and Bank
Internasional Indonesia were placed on review for possible
downgrade.

Bank Central Asia, headquartered in Jakarta, had assets of
IDR255.1 trillion at June 2009.

Bank CIMB-Niaga, headquartered in Jakarta, had assets of IDR102.1
trillion at June 2009.

Bank Danamon Indonesia, headquartered in Jakarta, had assets of
IDR98.9 trillion at June 2009.

Bank Internasional Indonesia, headquartered in Jakarta, had assets
of IDR52.0 trillion at June 2009.

Bank Mandiri, headquartered in Jakarta, had assets of
IDR358.9 trillion at June 2009.

Bank Negara Indonesia, headquartered in Jakarta, had assets of
IDR203.6 trillion at June 2009.

Bank Permata, headquartered in Jakarta, had assets of IDR54.0
trillion at June 2009.

Bank Rakyat Indonesia, headquartered in Jakarta, had assets of
IDR268.0 trillion at June 2009.

Bank Tabungan Negara headquartered in Jakarta, had assets of
IDR48.7 trillion at June 2009.

Pan Indonesia Bank, headquartered in Jakarta, had assets of
IDR71.2 trillion at June 2009.

                    Detailed Ratings And Actions

* Bank Central Asia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  These ratings were raised: foreign currency
  long-term deposit rating to Ba3 from B1 and issuer to Ba1 from
  Ba2.  The revised ratings carry stable outlooks.  All other
  ratings are unaffected and carry stable outlooks: foreign
  currency short-term deposit of Not Prime and BFSR of D+;

* Bank CIMB-Niaga: GLC deposit of Baa3 was confirmed with a stable
  outlook.  These ratings were raised: foreign currency long-term
  deposit rating to Ba3 from B1 and foreign currency issuer/
  subordinated debt to Ba1 from Ba2.  The revised ratings carry
  stable outlooks.  All other ratings are unaffected and carry
  stable outlooks: foreign currency short-term deposit of Not
  Prime and BFSR of D;

* Bank Danamon Indonesia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D;

* Bank Internasional Indonesia: GLC deposit of Baa3 was confirmed
  with a stable outlook.  These ratings were raised: foreign
  currency long-term deposit rating to Ba3 from B1 and foreign
  currency issuer/ subordinated debt to Ba1 from Ba2.  The revised
  ratings carry stable outlooks.  All other ratings are unaffected
  and carry stable outlooks: foreign currency short-term deposit
  of Not Prime and BFSR of D;

* Bank Mandiri: GLC deposit was lowered to Baa3 from Baa2.  The
  revised rating carries a stable outlook.  The foreign currency
  long-term deposit rating was raised to Ba3 from B1.  The revised
  rating carries a stable outlook.  All other ratings are
  unaffected and carry stable outlooks: foreign currency short-
  term deposit of Not Prime and BFSR of D-;

* Bank Negara Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-;

* Bank Permata: GLC deposit of Baa3 was confirmed with a stable
  outlook.  The foreign currency long-term deposit rating was
  raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D-;

* Bank Rakyat Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D+;

* Bank Tabungan Negara: GLC deposit was lowered to Baa3 from Baa2.
  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-; and

* Pan Indonesia Bank: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D.


BANK NEGARA: Moody's Raises Foreign Cur. Deposit Rating to Ba3
--------------------------------------------------------------
Moody's Investors Service has changed the credit ratings of 10
Indonesian banks.

Specifically, Moody's has lowered the global local currency
deposit ratings to Baa3 from Baa2 for the four state-owned banks -
Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia and
Bank Tabungan Negara.  The revised ratings carry stable outlooks.

At the same time, Moody's has confirmed the Baa3 GLC deposit
ratings for six banks - Bank Central Asia, Bank CIMB-Niaga, Bank
Danamon Indonesia, Bank Internasional Indonesia, Bank Permata and
Pan Indonesia Bank -- with stable outlooks.

In addition, Moody's has raised the foreign currency long-term
deposit ratings to Ba3 from B1 for all 10 banks.  The revised
ratings carry stable outlooks.

The banks are Bank Central Asia, Bank CIMB-Niaga, Bank Danamon
Indonesia, Bank Internasional Indonesia, Bank Mandiri, Bank Negara
Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan
Negara and Pan Indonesia Bank.

Furthermore, Moody's has raised the foreign currency issuer
ratings for Bank Central Asia, Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2 and the foreign currency
subordinated debt ratings for Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2.  The revised ratings
carry stable outlooks.

The rating actions are attributable to two factors.

First, to conclude the review initiated on May 20, 2009 to examine
the systemic support assumption used in Moody's Joint-Default
Analysis application.  These actions are part of a Moody's global
initiative and therefore do not reflect any deterioration in
Indonesia's macro-fundamentals nor any change in the government's
behavior towards the banking system.

Second, the rating changes also incorporate similar actions taken
on Indonesia's sovereign ratings on September 16, 2009.
Specifically, these ratings were raised: foreign currency and
local currency government bond to Ba2 from Ba3; foreign currency
deposit ceiling to Ba3 from B1 and the foreign currency bond
ceiling to Ba1 from Ba2.  See press release of September 16, 2009,
for greater discussion on sovereign issues.

Beatrice Woo, Moody's Vice President and Senior Credit Officer,
explains the rating actions below.

           Change in Systemic Support Indicator for JDA

In May 2009, Moody's commented on its global review of the support
capacity of a government and a central bank for its banking system
in the special comment titled "Financial Crisis More Closely
Aligns Bank Credit Risk and Government Ratings in Non-Aaa
Countries."

Consistent with the analytical criteria specified in that report
and in light of Indonesia's current situation and future
prospects, Moody's has concluded that the systemic support input
for Indonesian bank ratings be changed to Baa3 from Baa2, the
former being two notches above Indonesia's local currency
government debt rating of Ba2.  Accordingly, Indonesian bank
ratings are affected as the input is applied in the JDA
application.

In Moody's view, Indonesia has a highly supportive banking
framework, evidenced by government behavior towards the banks
during the 1997 Asian financial crisis as well as during this
current downturn.  As early as September 2008, the government had
been proactive in establishing support measures to stabilize and
provide liquidity to the banking system.

Among its programs are an increase in the maximum amount of
deposits insured to IDR2 billion from IDR100 million, the
eligibility of current credits as collateral for short-term
liquidity facilities, and the lowering of minimum reserve
requirements for Indonesian rupiah and foreign currency.  In
addition, the government has secured USD5.5 billion in contingent
lines of support from the Asian Development Bank, World Bank and
others.

In the Special Comment, Moody's points out that the appropriate
reference rating for the capacity of a national government to
provide support to banks in a prolonged and widespread crisis
would be aligned with or constrained by the government's own debt
rating.  However, Moody's also believes that this rating could be
adjusted, usually positively, to reflect the non-fiscally
dependent measures that many central banks and governments can
deploy to support banks.

In deciding whether the local currency-denominated deposits of a
bank can be rated higher than the local currency-denominated debt
issued by the national government due to systemic support, Moody's
considers a number of factors for each banking system.  These are
the size of the banking sector relative to the government's
resources, the level of stress in the banking system and in the
economy, the foreign currency obligations of the banking system
relative to the government's own foreign currency resources,
political and historical patterns, and the possibility of any
drastic shift in government priorities.

With regard to Indonesia, the banking system is not large, as
shown by the ratio of banking assets equaling 47% of GDP.  This
ratio has halved from that during the 1997 crisis.  For the 10
Moody's rated banks, their creditworthiness is modest, as measured
by their weighted average bank financial strength rating (BFSR) of
D.  These banks account for close to two thirds of system
deposits.

At the same time, the level of credit stress in the banking system
has increased moderately following the worldwide recession.  The
system non-performing loans ratio inched up to 4.06% at July 2009
from 3.2% at end-2008.  Furthermore, rapid loan growth --
averaging 20% annually over the past five years -- could be a
potential source of higher credit costs.

However, the banks have adequate capital buffer for their rating
ranges; system capital adequacy ratio was 17.34% at July 2009.  In
addition, the foreign currency obligations of the banking system
-- 14% of liabilities -- are not stretched.  As 99% of this
funding comprises deposits, this source is regarded as more
stable.

Finally, the political and historical patterns for assessing
Indonesia as a highly supportive banking framework are compelling.
During the 1997 crisis, the government issued a blanket guarantee
which covered banks' liabilities in Indonesian rupiah and foreign
currency for both depositors and creditors.  Since 2004, small
banks have been closed and one bank recently liquidated, but they
are insufficiently significant to cause a systemic stress.

Furthermore, the banking landscape is concentrated at the large
end, with the top 10 banks -- out of a total of 122 players --
controlling nearly two thirds of system deposits.  In Moody's
opinion, this structure provides huge incentives for the
government to support the banks.

In conclusion, the Baa3 systemic support input for Indonesian
banks is two notches above the Ba2 local currency government debt
rating.  The uplift is predicated on Moody's view that the risk of
a system-wide banking crisis is low and that the likelihood of the
government "ring-fencing" its own fiscal position from the banking
system is medium.

The last rating actions on all 10 banks were taken on May 20, 2009
when their global local currency deposit ratings were placed on
review for possible downgrade.  At the same time, the Ba2 foreign
currency subordinated debt ratings of Bank CIMB-Niaga and Bank
Internasional Indonesia were placed on review for possible
downgrade.

Bank Central Asia, headquartered in Jakarta, had assets of
IDR255.1 trillion at June 2009.

Bank CIMB-Niaga, headquartered in Jakarta, had assets of IDR102.1
trillion at June 2009.

Bank Danamon Indonesia, headquartered in Jakarta, had assets of
IDR98.9 trillion at June 2009.

Bank Internasional Indonesia, headquartered in Jakarta, had assets
of IDR52.0 trillion at June 2009.

Bank Mandiri, headquartered in Jakarta, had assets of
IDR358.9 trillion at June 2009.

Bank Negara Indonesia, headquartered in Jakarta, had assets of
IDR203.6 trillion at June 2009.

Bank Permata, headquartered in Jakarta, had assets of IDR54.0
trillion at June 2009.

Bank Rakyat Indonesia, headquartered in Jakarta, had assets of
IDR268.0 trillion at June 2009.

Bank Tabungan Negara headquartered in Jakarta, had assets of
IDR48.7 trillion at June 2009.

Pan Indonesia Bank, headquartered in Jakarta, had assets of
IDR71.2 trillion at June 2009.

                    Detailed Ratings And Actions

* Bank Central Asia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  These ratings were raised: foreign currency
  long-term deposit rating to Ba3 from B1 and issuer to Ba1 from
  Ba2.  The revised ratings carry stable outlooks.  All other
  ratings are unaffected and carry stable outlooks: foreign
  currency short-term deposit of Not Prime and BFSR of D+;

* Bank CIMB-Niaga: GLC deposit of Baa3 was confirmed with a stable
  outlook.  These ratings were raised: foreign currency long-term
  deposit rating to Ba3 from B1 and foreign currency issuer/
  subordinated debt to Ba1 from Ba2.  The revised ratings carry
  stable outlooks.  All other ratings are unaffected and carry
  stable outlooks: foreign currency short-term deposit of Not
  Prime and BFSR of D;

* Bank Danamon Indonesia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D;

* Bank Internasional Indonesia: GLC deposit of Baa3 was confirmed
  with a stable outlook.  These ratings were raised: foreign
  currency long-term deposit rating to Ba3 from B1 and foreign
  currency issuer/ subordinated debt to Ba1 from Ba2.  The revised
  ratings carry stable outlooks.  All other ratings are unaffected
  and carry stable outlooks: foreign currency short-term deposit
  of Not Prime and BFSR of D;

* Bank Mandiri: GLC deposit was lowered to Baa3 from Baa2.  The
  revised rating carries a stable outlook.  The foreign currency
  long-term deposit rating was raised to Ba3 from B1.  The revised
  rating carries a stable outlook.  All other ratings are
  unaffected and carry stable outlooks: foreign currency short-
  term deposit of Not Prime and BFSR of D-;

* Bank Negara Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-;

* Bank Permata: GLC deposit of Baa3 was confirmed with a stable
  outlook.  The foreign currency long-term deposit rating was
  raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D-;

* Bank Rakyat Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D+;

* Bank Tabungan Negara: GLC deposit was lowered to Baa3 from Baa2.
  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-; and

* Pan Indonesia Bank: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D.


BANK PERMATA: Moody's Raises Foreign Cur. Deposit Rating to Ba3
---------------------------------------------------------------
Moody's Investors Service has changed the credit ratings of 10
Indonesian banks.

Specifically, Moody's has lowered the global local currency
deposit ratings to Baa3 from Baa2 for the four state-owned banks -
Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia and
Bank Tabungan Negara.  The revised ratings carry stable outlooks.

At the same time, Moody's has confirmed the Baa3 GLC deposit
ratings for six banks - Bank Central Asia, Bank CIMB-Niaga, Bank
Danamon Indonesia, Bank Internasional Indonesia, Bank Permata and
Pan Indonesia Bank -- with stable outlooks.

In addition, Moody's has raised the foreign currency long-term
deposit ratings to Ba3 from B1 for all 10 banks.  The revised
ratings carry stable outlooks.

The banks are Bank Central Asia, Bank CIMB-Niaga, Bank Danamon
Indonesia, Bank Internasional Indonesia, Bank Mandiri, Bank Negara
Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan
Negara and Pan Indonesia Bank.

Furthermore, Moody's has raised the foreign currency issuer
ratings for Bank Central Asia, Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2 and the foreign currency
subordinated debt ratings for Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2.  The revised ratings
carry stable outlooks.

The rating actions are attributable to two factors.

First, to conclude the review initiated on May 20, 2009 to examine
the systemic support assumption used in Moody's Joint-Default
Analysis application.  These actions are part of a Moody's global
initiative and therefore do not reflect any deterioration in
Indonesia's macro-fundamentals nor any change in the government's
behavior towards the banking system.

Second, the rating changes also incorporate similar actions taken
on Indonesia's sovereign ratings on September 16, 2009.
Specifically, these ratings were raised: foreign currency and
local currency government bond to Ba2 from Ba3; foreign currency
deposit ceiling to Ba3 from B1 and the foreign currency bond
ceiling to Ba1 from Ba2.  See press release of September 16, 2009,
for greater discussion on sovereign issues.

Beatrice Woo, Moody's Vice President and Senior Credit Officer,
explains the rating actions below.

           Change in Systemic Support Indicator for JDA

In May 2009, Moody's commented on its global review of the support
capacity of a government and a central bank for its banking system
in the special comment titled "Financial Crisis More Closely
Aligns Bank Credit Risk and Government Ratings in Non-Aaa
Countries."

Consistent with the analytical criteria specified in that report
and in light of Indonesia's current situation and future
prospects, Moody's has concluded that the systemic support input
for Indonesian bank ratings be changed to Baa3 from Baa2, the
former being two notches above Indonesia's local currency
government debt rating of Ba2.  Accordingly, Indonesian bank
ratings are affected as the input is applied in the JDA
application.

In Moody's view, Indonesia has a highly supportive banking
framework, evidenced by government behavior towards the banks
during the 1997 Asian financial crisis as well as during this
current downturn.  As early as September 2008, the government had
been proactive in establishing support measures to stabilize and
provide liquidity to the banking system.

Among its programs are an increase in the maximum amount of
deposits insured to IDR2 billion from IDR100 million, the
eligibility of current credits as collateral for short-term
liquidity facilities, and the lowering of minimum reserve
requirements for Indonesian rupiah and foreign currency.  In
addition, the government has secured USD5.5 billion in contingent
lines of support from the Asian Development Bank, World Bank and
others.

In the Special Comment, Moody's points out that the appropriate
reference rating for the capacity of a national government to
provide support to banks in a prolonged and widespread crisis
would be aligned with or constrained by the government's own debt
rating.  However, Moody's also believes that this rating could be
adjusted, usually positively, to reflect the non-fiscally
dependent measures that many central banks and governments can
deploy to support banks.

In deciding whether the local currency-denominated deposits of a
bank can be rated higher than the local currency-denominated debt
issued by the national government due to systemic support, Moody's
considers a number of factors for each banking system.  These are
the size of the banking sector relative to the government's
resources, the level of stress in the banking system and in the
economy, the foreign currency obligations of the banking system
relative to the government's own foreign currency resources,
political and historical patterns, and the possibility of any
drastic shift in government priorities.

With regard to Indonesia, the banking system is not large, as
shown by the ratio of banking assets equaling 47% of GDP.  This
ratio has halved from that during the 1997 crisis.  For the 10
Moody's rated banks, their creditworthiness is modest, as measured
by their weighted average bank financial strength rating (BFSR) of
D.  These banks account for close to two thirds of system
deposits.

At the same time, the level of credit stress in the banking system
has increased moderately following the worldwide recession.  The
system non-performing loans ratio inched up to 4.06% at July 2009
from 3.2% at end-2008.  Furthermore, rapid loan growth --
averaging 20% annually over the past five years -- could be a
potential source of higher credit costs.

However, the banks have adequate capital buffer for their rating
ranges; system capital adequacy ratio was 17.34% at July 2009.  In
addition, the foreign currency obligations of the banking system
-- 14% of liabilities -- are not stretched.  As 99% of this
funding comprises deposits, this source is regarded as more
stable.

Finally, the political and historical patterns for assessing
Indonesia as a highly supportive banking framework are compelling.
During the 1997 crisis, the government issued a blanket guarantee
which covered banks' liabilities in Indonesian rupiah and foreign
currency for both depositors and creditors.  Since 2004, small
banks have been closed and one bank recently liquidated, but they
are insufficiently significant to cause a systemic stress.

Furthermore, the banking landscape is concentrated at the large
end, with the top 10 banks -- out of a total of 122 players --
controlling nearly two thirds of system deposits.  In Moody's
opinion, this structure provides huge incentives for the
government to support the banks.

In conclusion, the Baa3 systemic support input for Indonesian
banks is two notches above the Ba2 local currency government debt
rating.  The uplift is predicated on Moody's view that the risk of
a system-wide banking crisis is low and that the likelihood of the
government "ring-fencing" its own fiscal position from the banking
system is medium.

The last rating actions on all 10 banks were taken on May 20, 2009
when their global local currency deposit ratings were placed on
review for possible downgrade.  At the same time, the Ba2 foreign
currency subordinated debt ratings of Bank CIMB-Niaga and Bank
Internasional Indonesia were placed on review for possible
downgrade.

Bank Central Asia, headquartered in Jakarta, had assets of
IDR255.1 trillion at June 2009.

Bank CIMB-Niaga, headquartered in Jakarta, had assets of IDR102.1
trillion at June 2009.

Bank Danamon Indonesia, headquartered in Jakarta, had assets of
IDR98.9 trillion at June 2009.

Bank Internasional Indonesia, headquartered in Jakarta, had assets
of IDR52.0 trillion at June 2009.

Bank Mandiri, headquartered in Jakarta, had assets of
IDR358.9 trillion at June 2009.

Bank Negara Indonesia, headquartered in Jakarta, had assets of
IDR203.6 trillion at June 2009.

Bank Permata, headquartered in Jakarta, had assets of IDR54.0
trillion at June 2009.

Bank Rakyat Indonesia, headquartered in Jakarta, had assets of
IDR268.0 trillion at June 2009.

Bank Tabungan Negara headquartered in Jakarta, had assets of
IDR48.7 trillion at June 2009.

Pan Indonesia Bank, headquartered in Jakarta, had assets of
IDR71.2 trillion at June 2009.

                    Detailed Ratings And Actions

* Bank Central Asia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  These ratings were raised: foreign currency
  long-term deposit rating to Ba3 from B1 and issuer to Ba1 from
  Ba2.  The revised ratings carry stable outlooks.  All other
  ratings are unaffected and carry stable outlooks: foreign
  currency short-term deposit of Not Prime and BFSR of D+;

* Bank CIMB-Niaga: GLC deposit of Baa3 was confirmed with a stable
  outlook.  These ratings were raised: foreign currency long-term
  deposit rating to Ba3 from B1 and foreign currency issuer/
  subordinated debt to Ba1 from Ba2.  The revised ratings carry
  stable outlooks.  All other ratings are unaffected and carry
  stable outlooks: foreign currency short-term deposit of Not
  Prime and BFSR of D;

* Bank Danamon Indonesia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D;

* Bank Internasional Indonesia: GLC deposit of Baa3 was confirmed
  with a stable outlook.  These ratings were raised: foreign
  currency long-term deposit rating to Ba3 from B1 and foreign
  currency issuer/ subordinated debt to Ba1 from Ba2.  The revised
  ratings carry stable outlooks.  All other ratings are unaffected
  and carry stable outlooks: foreign currency short-term deposit
  of Not Prime and BFSR of D;

* Bank Mandiri: GLC deposit was lowered to Baa3 from Baa2.  The
  revised rating carries a stable outlook.  The foreign currency
  long-term deposit rating was raised to Ba3 from B1.  The revised
  rating carries a stable outlook.  All other ratings are
  unaffected and carry stable outlooks: foreign currency short-
  term deposit of Not Prime and BFSR of D-;

* Bank Negara Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-;

* Bank Permata: GLC deposit of Baa3 was confirmed with a stable
  outlook.  The foreign currency long-term deposit rating was
  raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D-;

* Bank Rakyat Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D+;

* Bank Tabungan Negara: GLC deposit was lowered to Baa3 from Baa2.
  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-; and

* Pan Indonesia Bank: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D.


BANK RAKYAT: Moody's Raises Foreign Cur. Deposit Rating to Ba3
--------------------------------------------------------------
Moody's Investors Service has changed the credit ratings of 10
Indonesian banks.

Specifically, Moody's has lowered the global local currency
deposit ratings to Baa3 from Baa2 for the four state-owned banks -
Bank Mandiri, Bank Negara Indonesia, Bank Rakyat Indonesia and
Bank Tabungan Negara.  The revised ratings carry stable outlooks.

At the same time, Moody's has confirmed the Baa3 GLC deposit
ratings for six banks - Bank Central Asia, Bank CIMB-Niaga, Bank
Danamon Indonesia, Bank Internasional Indonesia, Bank Permata and
Pan Indonesia Bank -- with stable outlooks.

In addition, Moody's has raised the foreign currency long-term
deposit ratings to Ba3 from B1 for all 10 banks.  The revised
ratings carry stable outlooks.

The banks are Bank Central Asia, Bank CIMB-Niaga, Bank Danamon
Indonesia, Bank Internasional Indonesia, Bank Mandiri, Bank Negara
Indonesia, Bank Permata, Bank Rakyat Indonesia, Bank Tabungan
Negara and Pan Indonesia Bank.

Furthermore, Moody's has raised the foreign currency issuer
ratings for Bank Central Asia, Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2 and the foreign currency
subordinated debt ratings for Bank CIMB-Niaga and Bank
Internasional Indonesia to Ba1 from Ba2.  The revised ratings
carry stable outlooks.

The rating actions are attributable to two factors.

First, to conclude the review initiated on May 20, 2009 to examine
the systemic support assumption used in Moody's Joint-Default
Analysis application.  These actions are part of a Moody's global
initiative and therefore do not reflect any deterioration in
Indonesia's macro-fundamentals nor any change in the government's
behavior towards the banking system.

Second, the rating changes also incorporate similar actions taken
on Indonesia's sovereign ratings on September 16, 2009.
Specifically, these ratings were raised: foreign currency and
local currency government bond to Ba2 from Ba3; foreign currency
deposit ceiling to Ba3 from B1 and the foreign currency bond
ceiling to Ba1 from Ba2.  See press release of September 16, 2009,
for greater discussion on sovereign issues.

Beatrice Woo, Moody's Vice President and Senior Credit Officer,
explains the rating actions below.

           Change in Systemic Support Indicator for JDA

In May 2009, Moody's commented on its global review of the support
capacity of a government and a central bank for its banking system
in the special comment titled "Financial Crisis More Closely
Aligns Bank Credit Risk and Government Ratings in Non-Aaa
Countries."

Consistent with the analytical criteria specified in that report
and in light of Indonesia's current situation and future
prospects, Moody's has concluded that the systemic support input
for Indonesian bank ratings be changed to Baa3 from Baa2, the
former being two notches above Indonesia's local currency
government debt rating of Ba2.  Accordingly, Indonesian bank
ratings are affected as the input is applied in the JDA
application.

In Moody's view, Indonesia has a highly supportive banking
framework, evidenced by government behavior towards the banks
during the 1997 Asian financial crisis as well as during this
current downturn.  As early as September 2008, the government had
been proactive in establishing support measures to stabilize and
provide liquidity to the banking system.

Among its programs are an increase in the maximum amount of
deposits insured to IDR2 billion from IDR100 million, the
eligibility of current credits as collateral for short-term
liquidity facilities, and the lowering of minimum reserve
requirements for Indonesian rupiah and foreign currency.  In
addition, the government has secured USD5.5 billion in contingent
lines of support from the Asian Development Bank, World Bank and
others.

In the Special Comment, Moody's points out that the appropriate
reference rating for the capacity of a national government to
provide support to banks in a prolonged and widespread crisis
would be aligned with or constrained by the government's own debt
rating.  However, Moody's also believes that this rating could be
adjusted, usually positively, to reflect the non-fiscally
dependent measures that many central banks and governments can
deploy to support banks.

In deciding whether the local currency-denominated deposits of a
bank can be rated higher than the local currency-denominated debt
issued by the national government due to systemic support, Moody's
considers a number of factors for each banking system.  These are
the size of the banking sector relative to the government's
resources, the level of stress in the banking system and in the
economy, the foreign currency obligations of the banking system
relative to the government's own foreign currency resources,
political and historical patterns, and the possibility of any
drastic shift in government priorities.

With regard to Indonesia, the banking system is not large, as
shown by the ratio of banking assets equaling 47% of GDP.  This
ratio has halved from that during the 1997 crisis.  For the 10
Moody's rated banks, their creditworthiness is modest, as measured
by their weighted average bank financial strength rating (BFSR) of
D.  These banks account for close to two thirds of system
deposits.

At the same time, the level of credit stress in the banking system
has increased moderately following the worldwide recession.  The
system non-performing loans ratio inched up to 4.06% at July 2009
from 3.2% at end-2008.  Furthermore, rapid loan growth --
averaging 20% annually over the past five years -- could be a
potential source of higher credit costs.

However, the banks have adequate capital buffer for their rating
ranges; system capital adequacy ratio was 17.34% at July 2009.  In
addition, the foreign currency obligations of the banking system
-- 14% of liabilities -- are not stretched.  As 99% of this
funding comprises deposits, this source is regarded as more
stable.

Finally, the political and historical patterns for assessing
Indonesia as a highly supportive banking framework are compelling.
During the 1997 crisis, the government issued a blanket guarantee
which covered banks' liabilities in Indonesian rupiah and foreign
currency for both depositors and creditors.  Since 2004, small
banks have been closed and one bank recently liquidated, but they
are insufficiently significant to cause a systemic stress.

Furthermore, the banking landscape is concentrated at the large
end, with the top 10 banks -- out of a total of 122 players --
controlling nearly two thirds of system deposits.  In Moody's
opinion, this structure provides huge incentives for the
government to support the banks.

In conclusion, the Baa3 systemic support input for Indonesian
banks is two notches above the Ba2 local currency government debt
rating.  The uplift is predicated on Moody's view that the risk of
a system-wide banking crisis is low and that the likelihood of the
government "ring-fencing" its own fiscal position from the banking
system is medium.

The last rating actions on all 10 banks were taken on May 20, 2009
when their global local currency deposit ratings were placed on
review for possible downgrade.  At the same time, the Ba2 foreign
currency subordinated debt ratings of Bank CIMB-Niaga and Bank
Internasional Indonesia were placed on review for possible
downgrade.

Bank Central Asia, headquartered in Jakarta, had assets of
IDR255.1 trillion at June 2009.

Bank CIMB-Niaga, headquartered in Jakarta, had assets of IDR102.1
trillion at June 2009.

Bank Danamon Indonesia, headquartered in Jakarta, had assets of
IDR98.9 trillion at June 2009.

Bank Internasional Indonesia, headquartered in Jakarta, had assets
of IDR52.0 trillion at June 2009.

Bank Mandiri, headquartered in Jakarta, had assets of
IDR358.9 trillion at June 2009.

Bank Negara Indonesia, headquartered in Jakarta, had assets of
IDR203.6 trillion at June 2009.

Bank Permata, headquartered in Jakarta, had assets of IDR54.0
trillion at June 2009.

Bank Rakyat Indonesia, headquartered in Jakarta, had assets of
IDR268.0 trillion at June 2009.

Bank Tabungan Negara headquartered in Jakarta, had assets of
IDR48.7 trillion at June 2009.

Pan Indonesia Bank, headquartered in Jakarta, had assets of
IDR71.2 trillion at June 2009.

                    Detailed Ratings And Actions

* Bank Central Asia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  These ratings were raised: foreign currency
  long-term deposit rating to Ba3 from B1 and issuer to Ba1 from
  Ba2.  The revised ratings carry stable outlooks.  All other
  ratings are unaffected and carry stable outlooks: foreign
  currency short-term deposit of Not Prime and BFSR of D+;

* Bank CIMB-Niaga: GLC deposit of Baa3 was confirmed with a stable
  outlook.  These ratings were raised: foreign currency long-term
  deposit rating to Ba3 from B1 and foreign currency issuer/
  subordinated debt to Ba1 from Ba2.  The revised ratings carry
  stable outlooks.  All other ratings are unaffected and carry
  stable outlooks: foreign currency short-term deposit of Not
  Prime and BFSR of D;

* Bank Danamon Indonesia: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D;

* Bank Internasional Indonesia: GLC deposit of Baa3 was confirmed
  with a stable outlook.  These ratings were raised: foreign
  currency long-term deposit rating to Ba3 from B1 and foreign
  currency issuer/ subordinated debt to Ba1 from Ba2.  The revised
  ratings carry stable outlooks.  All other ratings are unaffected
  and carry stable outlooks: foreign currency short-term deposit
  of Not Prime and BFSR of D;

* Bank Mandiri: GLC deposit was lowered to Baa3 from Baa2.  The
  revised rating carries a stable outlook.  The foreign currency
  long-term deposit rating was raised to Ba3 from B1.  The revised
  rating carries a stable outlook.  All other ratings are
  unaffected and carry stable outlooks: foreign currency short-
  term deposit of Not Prime and BFSR of D-;

* Bank Negara Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-;

* Bank Permata: GLC deposit of Baa3 was confirmed with a stable
  outlook.  The foreign currency long-term deposit rating was
  raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D-;

* Bank Rakyat Indonesia: GLC deposit was lowered to Baa3 from
  Baa2.  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D+;

* Bank Tabungan Negara: GLC deposit was lowered to Baa3 from Baa2.
  The revised rating carries a stable outlook.  The foreign
  currency long-term deposit rating was raised to Ba3 from B1.
  The revised rating carries a stable outlook.  All other ratings
  are unaffected and carry stable outlooks: foreign currency
  short-term deposit of Not Prime and BFSR of D-; and

* Pan Indonesia Bank: GLC deposit of Baa3 was confirmed with a
  stable outlook.  The foreign currency long-term deposit rating
  was raised to Ba3 from B1.  The revised rating carries a stable
  outlook.  All other ratings are unaffected and carry stable
  outlooks: foreign currency short-term deposit of Not Prime and
  BFSR of D.


PT INDIKA: Consent Solicitation Won't Affect Fitch's 'B' Ratings
----------------------------------------------------------------
Fitch Ratings has said that the bondholder consent solicitation
process launched by PT Indika Energy Tbk., if accepted by
noteholders of the US$250 million notes due 2012 issued by Indo
Integrated Energy BV and guaranteed by Indika, does not
immediately affect its Issuer Default Rating of 'B' with Positive
Outlook and the notes' issue rating of 'B'.

A key amendment proposed by the company is to allow the use of
US$60 million earmarked previously for the purchase of a majority
stake in a restricted coal-related subsidiary can also be used now
to purchase a majority stake in a coal related company that could
be unrestricted.  However, the ratings impact of these amendments
can be only assessed once there is greater clarity on Indika's
future investment plans.  Indika had a cash balance (excluding
short-term investments and restricted cash) of IDR 2.5 trillion
(approx. US$244 million) at end June 2009 and intends to continue
expanding in the energy sector.

Indika's ratings are supported primarily by the strength of its
46% stake in PT Kideco Jaya Agung, a leading coal mining company
in Indonesia, which provides it with a strong dividend inflow
(US$96.6 million in 2008).


PT INDIKA: Consent Solicitation Won't Affect Moody's 'B2' Rating
----------------------------------------------------------------
Moody's Investors Service sees no immediate impact on PT Indika
Energy Tbk's B2 corporate family rating and the senior secured
bond issued by Indo Integrated Energy BV and guaranteed by Indika
-- or its stable ratings outlook, as a result of the recently
announced consent solicitation.

Indika has proposed to amend certain terms in its bond indenture
to allow it to, inter alia, to make a potential investment in a
coal company; remove ambiguity regarding dividend flows from
Kideco and calculations under the restricted basket calculations;
as well as address a technical breach surrounding its investment
in PT Cotrans Asia.

"For the time being, Moody's does not foresee any material adverse
impact on operating or financial metrics as a result of the
proposed amendment to the bond indenture," says Laura Acres, a
Moody's Vice President.

"However, the amendment paves the way for Indika to look for
investment opportunities which will provide synergies with its
existing business.  The potential acquisition may have an impact
on Indika's credit profile if it requires substantial equity and
debt financing.  Moody's will only be able to assess the final
impact on Indika's ratings when the target coal company has been
identified and the terms and funding structure of the transaction
have been incorporated into Indika's consolidated financial
profile," adds Acres, also Moody's lead analyst for Indika.

Indika's ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
i) the business risk and competitive position of the company
versus others within its industry, ii) the capital structure and
financial risk of the company, iii) the projected performance of
the company over the near to intermediate term, and iv)
management's track record and tolerance for risk.  These
attributes were compared against other issuers both within and
outside of Indika's core industry and Indika's ratings are
believed to be comparable to those of other issuers of similar
credit risk.

The last rating action was taken on 27th February 2009 when
Moody's affirmed Indika's corporate family and senior secured bond
ratings at B2 following the announcement of the proposed
acquisition of Petrosea.

Indika is an integrated energy group based in Indonesia listed on
the Jakarta Stock Exchange.  Its principal investment is its 46%
shareholding in PT Kideco Jaya Agung, Indonesia's third largest
domestic coal producer and one of the world's lowest-cost
producers and exporters of coal.

In addition, Indika is involved in Engineering, Procurement and
the Construction and Operation and Maintenance businesses through
its wholly-owned subsidiary Tripatra.  Tripatra is an established
EPC and O&M contractor with a long track record of successfully
completed projects for major international oil companies within
Indonesia.  Indika has also recently acquired a 98.55% stake in
Petrosea, a mining services operator based in Kalimantan.


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


AIFUL CORP: Seeks to Reschedule Loan Payments
---------------------------------------------
Bloomberg News reports that Aiful Corp. said it will try to
reschedule loan payments after the financial crisis hurt its
ability to raise money.

Citing Aiful in a statement to the Tokyo Stock Exchange on Friday,
Bloomberg says the company had difficulty raising funds following
the credit squeeze.  Stricter regulation of consumer lenders is
also likely to hurt the company, Bloomberg notes.

                      Credit Ratings Downgrade

As reported in the Troubled Company Reporter-Asia Pacific on
September 16, 2009, Standard & Poor's Ratings Services placed its
'BB' long-term counterparty credit and senior unsecured debt
ratings on Aiful Corp. and its 'BB+' long-term counterparty credit
and senior unsecured debt ratings on Takefuji Corp. on CreditWatch
with negative implications.  The CreditWatch listing reflects
S&P's view that the financial cash flows of both companies have
been squeezed due to the severe financing environment.  In
addition, the companies' operating cash flows have deteriorated
due to reduced operating assets and refunds of overpaid interest,
which remain at an elevated level.  At the same time, Standard &
Poor's affirmed its 'B' short-term counterparty credit rating on
Aiful.

As of June 30, 2009, Aiful's consolidated debt amounted to
JPY826.6 billion, of which JPY415.3 billion was scheduled to be
repaid within one year.  The financing environment remains
difficult due to refunds of overpaid interest and uncertainty
surrounding the implementation of the revised Money Lending
Business Law in mid-2010.  Although the company's debt has been
decreasing, Standard & Poor's believes that Aiful needs to reduce
its operating assets so that it can accelerate debt repayments.
Consequently, the company's operating cash flow may decline
further as earnings from assets could decline.

The TCR-AP reported on July 14, 2009, that Fitch Ratings
downgraded Aiful Corporation's Long-Term foreign and local
currency Issuer Default Ratings to 'BB' from 'BBB-', and
its Short-term foreign and local currency IDRs to 'B' from 'F3'.
The Outlooks remain Negative.  The ratings on Aiful's senior
unsecured notes have also been downgraded to 'BB' from 'BBB-'.

                           About Aiful

Aiful Corporation (TYO:8515) -- http://www.ir-aiful.com/--  is
a Japan-based financial service provider.  The company is
engaged in the provision of small-lot uncollateralized loan for
individual consumers, business loan for individuals, as well as
mortgage collateral and credit card services, in addition to the
collection and management of debts.  Other business activities
the Company is involved in include the development, investment
and nurture of venture companies, as well as the leasing of real
estates.  Headquartered in Kyoto, the Company has 29
subsidiaries and two associated companies.


HUIS TEN: Nomura Principal in Talks with HMI on Capital Infusion
----------------------------------------------------------------
Nomura Principal Finance Co. is in talks with Hotel Management
International Co. to seek financial assistance for its struggling
subsidiary Huis Ten Bosch Co., Kyodo News reports citing sources
close to the matter.

Kyodo notes the sources said the investment arm of Nomura Holdings
Inc and HMI are seeking to reach an agreement by the end of this
month on capital subscription for Huis Ten.

Nomura Principal is also eying the transfer of operations of Huis
Ten Bosch in Sasebo, Nagasaki Prefecture, Kyodo relates.

Headquartered in Nagasaki Japan, Huis Ten Bosch is a popular
theme park, which imitates Holland villages.  It is located in
Kyushu.  It is a fun place for travelers to experience the
exotic culture and atmosphere of Europe.

The Troubled Company Reporter - Asia Pacific reported on July 5,
2004, that The Tokyo District Court approved Huis Ten Bosch Co.'s
rehabilitation plan under the support of Nomura Principal Finance
Co., an investment firm controlled by Nomura Holdings Inc.  Huis
Ten Bosch inked a rehabilitation sponsorship contract with Nomura
Principal in December 2003.


JAPAN AIRLINES: Bankruptcy Not An Option for JAL, Minister Says
---------------------------------------------------------------
Kyodo News reports that Japan's new transport minister Seiji
Maehara on Thursday said that bankruptcy is not an option for
struggling Japan Airlines Corp., which is currently under a state-
supervised rehabilitation process.

Kyodo News relates Mr. Maehara said in a news conference that JAL
and All Nippon Airways Co. must remain as the two pillars of
Japan's aviation industry.

According to the report, Mr. Maehara also indicated that the new
government led by the Democratic Party of Japan would accelerate
efforts to rehabilitate JAL, saying, "The time left for us for the
rehabilitation of JAL is limited."

The Troubled Company Reporter said on Sept. 15, 2009, that AMR
Corp. and Delta Air are reportedly in separate talks with Japan
Airlines to forge an expansive joint venture with the carrier.
The Wall Street Journal said that American Airlines would also
consider taking a minority stake in JAL, although any such
investment would likely be capped at hundreds of millions of
dollars.  Delta is also negotiating to acquire a minority stake of
around US$300 million in JAL.  The Journal related that Delta
wants JAL to join its rival SkyTeam alliance.

                       About Japan Airlines

Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan-
based holding company that is active in five business segments
through its 225 subsidiaries and 82 associated companies.  The Air
Transportation segment is engaged in the operation of passenger
and cargo planes.  The Air Transportation-Related segment is
engaged in the transportation of passengers and cargoes, the
preparation of in-flight food catering, the maintenance of
aircraft and land equipment, as well as the fueling business.  The
Travel Planning and Marketing segment is involved in the planning
and sale of travel packages.  The Card and Leasing segment is
engaged in the provision of finance, cards and leasing services.
The Others segment is involved in businesses related to hotels,
resorts, logistics, wholesale, retail, real estate, printing,
construction, manpower dispatch, as well as information and
communication.  The Company has numerous global operating
locations.

JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
February 11, 2009, Moody's Investors Service changed the outlook
on the Ba3 long-term debt rating and issuer rating of Japan
Airlines International Co. Ltd. to negative from positive.  The
outlook change reflects Moody's view that JALI's profitability is
likely to remain pressured amid the recent sharp decline in
airline passenger demand.

Japan Airlines continues to carry Standard & Poor's Ratings 'B+'
LT Foreign & Local Issuer Credit.  The outlook is positive.


MAZDA MOTOR: China Sales May Rise 40% in July-September, CFO Says
-----------------------------------------------------------------
Bloomberg News, citing the Nikkei newspaper, reported that Mazda
Motor Corp.'s Chief Financial Officer Kiyoshi Ozaki said the
company' vehicle sales in China may increase 40% during the July-
September period from the year before.

According to Bloomberg, the newspaper said company sold about
70,000 vehicles in the country during the April- August period, up
29% on the year.

Headquartered in Hiroshima Prefecture, in Japan, Mazda Motor
Corporation -- http://www.mazda.co.jp/-- together with its
subsidiaries and associates, is primarily involved in the
manufacture and distribution of automobiles.  The company
manufactures passenger cars and commercial vehicles.  Mazda
Motor distributes its products in both domestic and overseas
markets.  The company has 58 subsidiaries.  It has overseas
operations in the United States, Canada, Mexico, Germany,
Belgium, France, the United Kingdom, Switzerland, Portugal,
Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand,
Indonesia and China.  The company has a global network.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
March 23, 2009, Standard & Poor's Ratings Services revised to
negative from stable the outlook on its 'BB' long-term corporate
credit rating on Mazda Motor Corp., reflecting increased pressure
on the company's profitability and cash flow amid ongoing
turbulence in global auto markets.  At the same time, Standard &
Poor's affirmed its long-term corporate credit and 'BB+' senior
unsecured debt ratings on Mazda.


SANYO ELECTRIC: Expects to Post Second Annual Loss in FY2010
------------------------------------------------------------
Sanyo Electric Co. will have a second straight group net loss for
the year ending March 2010 because of costs to repair washing
machines and to restructure the company, Bloomberg News reports
citing Nikkei English News.

The Troubled Company Reporter-Asia Pacific reported on May 18,
2009, that Sanyo Electric is expecting a breakeven in fiscal year
ending March 31, 2010, after posting a net loss of JPY93.2 billion
in the 12 months ended March 31, 2009.

According to Bloomberg, the company was hurt by the JPY10 billion
cost of an inspection and repair program for washing machines
after one caught fire.

Headquartered in Osaka, Japan, Sanyo Electric Co. Ltd. --
http://www.sanyo.com/-- is one of the world's leading
manufacturers of consumer electronics products.  The company has
global operations in Brazil, Germany, India, Ireland, Spain, the
United States and the United Kingdom, among others.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
November 14, 2008, Fitch Ratings placed Sanyo Electric Co. Ltd.'s
'BB+' Long-term foreign and local currency IDRs and senior
unsecured ratings on Rating Watch Positive.


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


WINDFLOW TECHNOLOGY: Annual Loss Narrows to NZ$1.23 Million
-----------------------------------------------------------
Windflow Technology reported a net loss of NZ$1.23 million for the
year ended June 30, 2009, compared with a net loss of NZ$2.04
million in the prior year.

Consolidated revenue for the year was NZ$29.52 million, compared
with NZ$10.991 million for the year ended June 30, 2008.

The net result for the parent company for the second six months of
the year was a net loss of NZ$0.372 million compared to a net loss
of NZ$1.082 million for the first six months.

The preliminary announcement has been based on financial
statements for the year to June 2009 that are in the process of
being audited.  There are two issues that are currently
unresolved, which have the potential to raise matters of
Fundamental Uncertainty:

   * Windflow's main customer, NZ Windfarms Ltd, has placed
     unconditional orders for turbines but has recently
     withheld payments and asserts it has a contractual right
     to do so (an assertion which Windflow does not accept).
     If NZ Windfarms were to continue to withhold payments,
     then Windflow could have major cash flow issues.

   * NZ Windfarms has released its own preliminary announcement
     in which it stated that “while the [NZ Windfarms] Board is
     confident in the Company's ability to continue as a going
     concern, there is uncertainty with respect to achieving the
     operational cash flows predicted and the raising of
     additional funding prior to utilisation of available cash
     resources.  Accordingly, there is uncertainty as to whether
     the Company can continue as a going concern and therefore
     whether it will be able to pay its debts as and when they
     become due and payable”.  If NZ Windfarms can not raise
     additional funding then Windflow could have major cash
     flow issues.

Windflow's financial statements have been prepared using the
assumption that Windflow is a going concern.  If the going concern
assumption were not appropriate, then the amounts at which items
are recorded in the financial statements could change
significantly.  Windflow's directors believe that the going
concern assumption is appropriate because:

   (a) Windflow has obtained an independent review of the
       contractual position with NZ Windfarms which review
       has given the directors comfort over Windflow's
       position; and

   (b) The NZ Windfarms Board has expressed confidence in NZ
       Windfarms' ability to continue as a going concern.

                              Outlook

Total revenue in the year to June 30, 2010, is expected to exceed
the revenue for the year to June 30, 2009, based on confirmed
orders for the remainder of the Te Rere Hau project.  In addition
there are prospects for further turbine sales.  However, it is
uncertain as to whether the revenue will reach Windflow's general
target for healthy profitability.  This is because of a number of
factors which have created uncertainty about the immediate
prospects for turbine sales.

The factors include:

   a) Delays in obtaining resource consents for a number of
      prospective sites for the Windflow 500, including
      Mt Cass (declined by Hurunui District Council but
      currently being appealed), Long Gully and the Te Rere
      Hau extension;

   b) Delays in completing the final documentation for IEC
      Type Certification;

   c) Policy uncertainty about the price of carbon in the
      New Zealand economy;

   d) Electricity market uncertainty as the industry faces
      another round of structural reforms; and

   e) General economic uncertainty because of the current
      recession.

A full-text copy of the Company's Preliminary Full Year Report is
available for free at http://ResearchArchives.com/t/s?450d

                          About Windflow

Christchurch, New Zealand-based Windflow Technology Limited --
http://www.windflow.co.nz/-- is engaged in wind power
development.  As of June 30, 2006, the company held a 20%
shareholding in Windpower Otago Limited.  The principal activity
of Windpower Otago Limited is the development of wind farms.
During the fiscal year ended June 30, 2006 (fiscal 2006),
Windflow Technology Limited, held a 42.99% shareholding in NZ
Windfarms Limited.  The principal activity of NZ Windfarms
Limited is the development of wind farms.  Its other
subsidiaries and associates include Pacific Windfarms Limited,
Wind Blades Limited and Windpower Maungatua Limited.

                          *     *     *

Windflow Technology incurred a net loss of NZ$3.28 million in
the financial year ended June 30, 2007, compared with the
INR2.22-million loss booked in the prior financial year.  The
company posted a net loss of NZ$2.04 million for the year ended
June 30, 2008.


                         *********

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.


                            *********


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.  Valerie C. Udtuhan, Marites O. Claro,
Rousel Elaine C. Tumanda, Joy A. Agravante, Frauline S. Abangan,
and Peter A. Chapman, Editors.

Copyright 2009.  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.





                 *** End of Transmission ***