TCRAP_Public/101101.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, November 1, 2010, Vol. 13, No. 215

                            Headlines



A U S T R A L I A

BENDIGO AND ADELAIDE: Fitch Affirms 'BB' Support Rating Floor
CENTRO PROPERTIES: Seeks Buyers for AU$4 Billion of Assets
SUNCORP-METWAY: Restructuring Won't Affect Fitch's Ratings


H O N G  K O N G

INNOVATIONS WORLDWIDE: Briscoe and Wong Step Down as Liquidators
INTERDEAN (FAR EAST): Lai and Haughey Step Down as Liquidators
JARDINE M&E: Members' Final Meeting Set for November 23
JAUNTWALL LIMITED: Creditors' Proofs of Debt Due November 12
KANA SOFTWARE: Members' Final General Meeting Set for November 23

KOMATSU HUANAN: Lai and Haughey Step Down as Liquidators
L & E: Creditors' Proofs of Debt Due November 12
LEAD TEAM: Members' Final Meeting Set for November 12
MANIVEST CORPORATE: Ho and Kong Step Down as Liquidators
METRO CONSOLIDATORS: Members' Final Meeting Set for November 29

MONTBLANC-SIMPLO FAR: Court Enters Wind-Up Order
MORGAN - CHINA: Members' Final Meeting Set for November 22
MYG INTERNATIONAL: Creditors' Proofs of Debt Due November 11
OIKOS INT'L: Members and Creditors' Final Meeting Set for Nov. 22
PARKER TECHNOLOGY: Creditors' Proofs of Debt Due November 29

PLEXXOR CO: Creditors' Proofs of Debt Due November 22
REAL INTEGRITY: Ho and Kong Step Down as Liquidators
RIDGE LUCK: Chan Sek Kwan Rays Steps Down as Liquidator
SEBOD FOUNDATION: Ip Chung Yuen Steps Down as Liquidator
SINO PUBLISHING: Members' and Creditors Meetings Set for Nov. 3


I N D I A

ADVANCED MINING: CRISIL Puts 'BB-' Rating on INR120MM LT Loan
BHARAT CARRIERS: ICRA Places 'LB-' Rating on INR15cr Cash Credit
BKS TEXTILES: CRISIL Assigns 'B+' Rating to INR16.5MM LT Loan
COSMAS RESEARCH: ICRA Places 'LBB-' Rating on INR82cr Loan
ENCORE NATURAL: CRISIL Places 'BB+' Rating on INR120MM Cash Credit

MADHUSALA DRINKS: CRISIL Puts 'BB' Rating on INR140MM Cash Credit
PREMIUM CHICK: CRISIL Assigns 'BB+' Rating to INR60MM Cash Credit
RAVI GRAPHICS: CRISIL Assigns 'BB-' Rating to INR66.5MM Term Loan
SHRI LAKSHMI: CRISILS Assigns 'BB-' Rating to INR110MM Term Loan
SIDDHI VINAYAK: CRISIL Reaffirms 'BB-' Rating on INR2.7MM Loan

SM ROLLING: ICRA Assigns 'LBB+' Rating to INR4.49cr Cash Credit
SRS REAL: CRISIL Assigns 'BB+' Rating to INR662.2MM Term Loan
SRS REAL ESTATE: CRISIL Places 'BB+' Rating on INR2.23BB Term Loan
TATA MOTORS: S&P Raises Corporate Credit Rating to 'BB-'
VEEKAY POLYCOATS: CRISIL Reaffirms 'BB+' Ratings on Various Debts

VTC ENGINEERING: CRISIL Assigns 'B' Rating to INR50MM Cash Credit
WORLD RESORTS: ICRA Assigns 'LB-' Rating to INR57.91cr Bank Debt


J A P A N

J-CORE16 TRUST: S&P Downgrades Ratings on Various Certificates
TAKEFUJI CORP: Credit Swaps Traders Agree on 14.75% Recovery Rate
THE MLOX4 TRANSACTION: S&P Cuts Ratings on Various Certificates
* JAPAN: BOJ to Buy Low-Rated Corporate Debt to Support Economy


K O R E A

SSANGYONG MOTOR: South Korea Board Approves Mahindra Purchase


N E W  Z E A L A N D

DOMINION FINANCE: Under SFO Probe Over Related Party Deals
WENSLEY DEVELOPMENTS: Placed in Liquidation by IRD


S I N G A P O R E

FIRST SHIP: S&P Affirms 'BB-' Long-Term Corporate Credit Rating


T A I W A N

TACHING BILLS: Fitch Affirms Individual Rating at 'C/D'
WATERLAND FINANCIAL: Fitch Affirms All Outstanding Ratings




                         - - - - -


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


BENDIGO AND ADELAIDE: Fitch Affirms 'BB' Support Rating Floor
-------------------------------------------------------------
Fitch Ratings has affirmed the ratings of Bendigo and Adelaide
Bank Limited following its announcement that it would take its
shareholding in Rural Bank Limited to 100% by purchasing Elders
Limited's 40% stake in the bank.

The affirmation of BEN's ratings reflects the relatively modest
impact the acquisition is expected to have on its credit profile;
RBL is already consolidated into BEN's financial accounts as a
majority owned subsidiary.  The purchase price of AUD165m for the
40% stake is to be funded through the issuance of Lower Tier 2
subordinated debt.  As a result, BEN's June 30, 2010, Tier 1 ratio
would decline by about 65bps to 7.9% on a pro-forma basis,
although the bank's total capital position would remain unchanged.
While the Tier 1 ratio would be at the lower end of those reported
by other Australian banks, the bank's equity/assets ratio would
remain solid at 6.5-7.0% after the acquisition; Fitch views this
as adequate, given the relatively low risk nature of BEN's lending
activities.

From a governance perspective, RBL's policies and procedures are
already largely aligned with those of BEN, which should lower
integration risk.  RBL will continue to partner with Elders
Limited to distribute products through the latter's branches
throughout Australia.

RBL is a specialist agribusiness lender, with total assets of
AUD4.2 billion at June 30, 2010.  Funding is almost entirely
sourced through retail.  BEN is one of Australia's regional
banking groups, with consolidated total assets of AUD52.1 billion
at June 30, 2010.  While it provides a broad range of financial
services, its core strength is its retail banking franchise.

These rating actions only consider the rating implications of
BEN's acquisition of RBL.  More specific group credit issues will
be discussed in Fitch's annual review of the institution.  It is
anticipated that this review will be finalised in early 2011.

This is a list of actions taken on Bendigo and Adelaide Bank
Limited's ratings:

  -- Long-term Issuer Default Rating: affirmed at 'BBB+'; Outlook
     Positive;

  -- Short-term IDR: affirmed at 'F2';

  -- Individual Rating: affirmed at 'B/C';

  -- Support Rating: affirmed at '3';

  -- Support Rating Floor: affirmed at 'BB';

  -- Commercial Paper: affirmed at 'BBB+'/ 'F2';

  -- Senior Unsecured Debt: affirmed at 'BBB+';

  -- Short-term Debt: affirmed at 'F2'; and

  -- Subordinated Debt: affirmed at 'BBB'.


CENTRO PROPERTIES: Seeks Buyers for AU$4 Billion of Assets
----------------------------------------------------------
Centro Properties Group is seeking buyers for more than
AU$4 billion of assets, Angus Whitley and Nichola Saminather at
Bloomberg News reported, citing a person with knowledge of the
matter.

The person, who declined to be identified because the plans aren't
public, told Bloomberg that Centro has set a Dec. 25 deadline for
indicative bids for more than 40 properties, including the
Galleria in Perth and The Glen in Melbourne.  Prospective buyers
will be given access to financial information on the assets in the
next few weeks, the person told Bloomberg News.

                      About Centro Properties

Centro Properties Group (ASX:CNP)-- http://www.centro.com.au/--
is a retail investment organization specializing in the ownership,
management and development of retail shopping centres.  Centro
manages both listed and unlisted retail property and has an
extensive portfolio of shopping centres across Australia, New
Zealand and the United States.  Centro has funds under management
of US$24.9 billion.

                           *     *     *

Centro Properties Group owes its creditors as much as AU$6.6
billion and its deadline to repay these debts has been extended
four times since December 2007, when the company's market value
plunged.

The Troubled Company Reporter-Asia Pacific reported on July 30,
2010, CNP secured a one-year extension from December 31, 2010, to
December 31, 2011, for US$2.3 billion of debt within Super LLC (a
joint venture of CNP, Centro Retail Trust and Centro MCS 40).  The
extension includes Super LLC's US$1.7 billion bridge term loan
(US$1.2 billion CNP, US$0.5 billion CER) and US$580.0 million of
additional debt.


SUNCORP-METWAY: Restructuring Won't Affect Fitch's Ratings
----------------------------------------------------------
Fitch Ratings has stated that the ratings of Suncorp-Metway
Limited, Suncorp Metway Insurance Ltd and Vero Insurance Limited
are unlikely to be impacted by the proposed group restructure
announced by SML.  The current ratings of these entities can be
found at the end of this release.

Under the restructure, a non-operating holding company would
replace SML as the listed parent of the Suncorp group, under which
would sit three operating groups -- banking, general insurance and
wealth management.  "The proposed structure appears to be neutral
to mildly positive from a credit perspective," said Tim Roche,
Director in Fitch's Financial Institutions group.  "Importantly,
it increases transparency within the group while better aligning
the legal entities with Suncorp's current management framework,"
noted Mr Roche.

These views are based on a review of information provided by SML
and may change if there are material alterations to the
restructure plan.  Critically, the views only incorporate the
credit impact of the proposed restructure and not broader credit
issues related to SML, SMIL and VIL.  These issues, including the
Negative Outlook currently assigned to SML's Long-term Issuer
Default Rating, will be considered in Fitch's annual review of the
Suncorp group which is expected to be completed by early 2011.

The current ratings of the Suncorp group entities are:

Suncorp-Metway Limited:

  -- Long-term Issuer Default Rating: 'A+' with a Negative
     Outlook;

  -- Short-term IDR: 'F1';

  -- Individual Rating: 'B';

  -- Support Rating: '3';

  -- Support Rating Floor: 'BB+'

  -- AUD Government Guaranteed Debt: 'AAA'

  -- Non-AUD Government Guaranteed Debt: 'AA+'

  -- Senior Unsecured Debt: 'A+';

  -- Short-term Debt: 'F1'; and

  -- Subordinated Debt: 'A'.

Suncorp Metway Insurance Ltd:

  -- Insurer Financial Strength: 'A+' with a Stable Outlook.

Vero Insurance Limited:

  -- Insurer Financial Strength: 'A+' with a Stable Outlook.


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


INNOVATIONS WORLDWIDE: Briscoe and Wong Step Down as Liquidators
----------------------------------------------------------------
Stephen Briscoe and Wong teck Meng stepped down as liquidators of
Innovations Worldwide Limited on October 13, 2010.


INTERDEAN (FAR EAST): Lai and Haughey Step Down as Liquidators
--------------------------------------------------------------
Lai Kar Yan (Derek) and Darach E. Haughey stepped down as
liquidators of Interdean (Far East) Limited on October 18, 2010.


JARDINE M&E: Members' Final Meeting Set for November 23
-------------------------------------------------------
Members of Jardine M&E Contracting (China) Limited will hold their
final meeting on November 23, 2010, at 10:00 a.m., at Level 28,
Three Pacific Place, 1 Queen's Road East, in Hong Kong.

At the meeting, Ying Hing Chiu and Chan Mi Har, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.


JAUNTWALL LIMITED: Creditors' Proofs of Debt Due November 12
------------------------------------------------------------
Creditors of Jauntwall Limited, which is in creditors' voluntary
liquidation, are required to file their proofs of debt by November
12, 2010, to be included in the company's dividend distribution.

The company's liquidators are:

         Roderick John Sutton
         Desmond Chung Seng Chiong
         c/o FTI Consulting (Hong Kong) Limited
         14/F The Hong Kong Club Building
         3A Chater Road
         Central, Hong Kong


KANA SOFTWARE: Members' Final General Meeting Set for November 23
-----------------------------------------------------------------
Members of Kana Software Hong Kong Limited will hold their final
general meeting on November 23, 2010, at Room 1307-8 Dominion
Centre, 43-59 Queen's Road East, Wanchai, in Hong Kong.

At the meeting, Poon Chi Woo, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.


KOMATSU HUANAN: Lai and Haughey Step Down as Liquidators
--------------------------------------------------------
Lai Kar Yan (Derek) and Darach E. Haughey stepped down as
liquidators of Komatsu Huanan Limited on October 13, 2010.


L & E: Creditors' Proofs of Debt Due November 12
------------------------------------------------
Creditors of L & E Packaging Far East Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by November 12, 2010, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on October 15, 2010.

The company's liquidators are:

         Ying Hing Chiu
         Chan Mi Har
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


LEAD TEAM: Members' Final Meeting Set for November 12
-----------------------------------------------------
Members of Lead Team Limited will hold their final general meeting
on November 12, 2010, at registered office.

At the meeting, Chim Fun Lung, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.


MANIVEST CORPORATE: Ho and Kong Step Down as Liquidators
--------------------------------------------------------
Ho Man Kit and Kong Sau Wai stepped down as liquidators of
Manivest Corporate (Nominees) Limited on October 6, 2010.


METRO CONSOLIDATORS: Members' Final Meeting Set for November 29
---------------------------------------------------------------
Members of Metro Consolidators Limited will hold their final
meeting on November 29, 2010, at 10:00 a.m., at 18/F, C C Wu
Building, 302-8 Hennessy Road, Wanchai, in Hong Kong.

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


MONTBLANC-SIMPLO FAR: Court Enters Wind-Up Order
------------------------------------------------
The High Court of Hong Kong entered an order on October 15, 2010,
to wind up the operations of Montblanc-Simplo Far East Limited.

The company's liquidators are:

         Betty Yuen Yeung
         Paul David Stuart Moyes
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


MORGAN - CHINA: Members' Final Meeting Set for November 22
----------------------------------------------------------
Members of Morgan - China Limited will hold their final meeting on
November 22, 2010, at 10:00 a.m., 8th Floor, Gloucester Tower, The
Landmark, 15 Queen's Road Central, in Hong Kong.

At the meeting, Iain Ferguson Bruce, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


MYG INTERNATIONAL: Creditors' Proofs of Debt Due November 11
------------------------------------------------------------
Creditors of MYG International Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by November 11, 2010, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on October 11, 2010.

The company's liquidator is:

         Tso Kwai Ping
         807 Fortress Tower
         250 King's Road
         North Point, Hong Kong


OIKOS INT'L: Members and Creditors' Final Meeting Set for Nov. 22
-----------------------------------------------------------------
Members and creditors of Oikos International Limited will hold
their final meetings on November 22, 2010, at 3:00 p.m., and 3:30
p.m., respectively at Unit A, 2/F., Trust Tower, 68 Johnston Road,
Wanchai, in Hong Kong.

At the meeting, So Yin Wai, alex and Wong Chak Lun Alan, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.


PARKER TECHNOLOGY: Creditors' Proofs of Debt Due November 29
------------------------------------------------------------
Creditors of Parker Technology Development Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by November 29, 2010, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on October 14, 2010.

The company's liquidator is:

         Chiu Fan Wa
         Unit A, 5/F., CKK commercial Centre
         289 Hennessy Road
         Wanchai, Hong Kong


PLEXXOR CO: Creditors' Proofs of Debt Due November 22
-----------------------------------------------------
Creditors of Plexxor Co., Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by November
22, 2010, to be included in the company's dividend distribution.

The company's liquidators are:

         Chan Suk Kam Ida
         Lee Che Keung
         8th Floor, 22-28 Cheung Tat Road
         Tsing Yi, Hong Kong


REAL INTEGRITY: Ho and Kong Step Down as Liquidators
----------------------------------------------------
Ho Man Kit and Kong Sau Wai stepped down as liquidators of Real
Integrity Limited on October 6, 2010.


RIDGE LUCK: Chan Sek Kwan Rays Steps Down as Liquidator
-------------------------------------------------------
Chan Sek Kwan Rays stepped down as liquidator of Ridge Luck
Limited on October 15, 2010.


SEBOD FOUNDATION: Ip Chung Yuen Steps Down as Liquidator
--------------------------------------------------------
Ip Chung Yuen stepped down as liquidator of Sebod Foundation
Limited on October 18, 2010.


SINO PUBLISHING: Members' and Creditors Meetings Set for Nov. 3
---------------------------------------------------------------
Members and creditors of Sino Publishing House Limited will hold
their annual meetings on November 3, 2010, at 4:00 p.m., at 21/F,
Chinachem Tower, 34-37 Connaught Road Central, in Hong Kong.

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


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I N D I A
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ADVANCED MINING: CRISIL Puts 'BB-' Rating on INR120MM LT Loan
-------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to Advanced
Mining Technologies Pvt Ltd's bank facilities.

   Facilities                            Ratings
   ----------                            -------
   INR120.00 Million Long-Term Loan      BB-/Stable (Assigned)
   INR730.00 Million Proposed Long-Term  BB-/Stable (Assigned)
                     Bank Loan Facility
   INR480.00 Million Bank Guarantee      P4+ (Assigned)

The ratings reflect AMTL's exposure to risk related to timely &
successful commencement and stabilization of its coal mining
operations.  This rating weakness is partially offset by the
benefits that AMTL derives from its promoters' overall business
experience, and its established relationship with its key client,
Singareni Collieries Company Ltd.

Outlook: Stable

CRISIL believes that AMTL would benefit over the medium term from
its promoters' business experience, and established relationship
with its customer, SCCL.  The outlook may be revised to 'Positive'
if AMTL stabilizes its operations as per schedule and without any
significant cost overrun, and generates more-than-expected net
cash accruals, leading to comfortable debt servicing metrics.
Conversely, the outlook may be revised to 'Negative' if AMTL
reports lower-than expected revenues, profitability or debt
servicing metrics, either because of time or cost overruns in
commercializing and stabilizing its operations, or lower-than-
expected production.

                      About Advanced Mining

AMTL was formed in 2005 by Mr. N Venkata Subba Rao along with his
family and friends; the company was set up with an objective of
providing coal mining services through Highwall mining technology.
It is based in Hyderabad, and is currently in the process of
setting up its operations.  The company is expected to commence
its operations in October 2010.


BHARAT CARRIERS: ICRA Places 'LB-' Rating on INR15cr Cash Credit
----------------------------------------------------------------
ICRA has assigned an 'LB-' rating to the INR15 crore cash credit
facility of Bharat Carriers Limited.  ICRA has also assigned an
'A5' rating to the INR1.0 crore bank guarantee facility of BCL.

The ratings take into account the delay in servicing of BCL's debt
obligation, high working capital intensity in the business and the
inherent cyclicality  and competitive pressures in the highly
fragmented road transportation business.  The ratings also factor
in the moderate scale of operations of the company, high customer
concentration risk, a high gearing and low profits earned by BCL.
The ratings also take into account the high fixed cost on account
of a high proportion of owned fleet, which to a certain extent is
mitigated by the company's own workshops at its regional offices.
However, ICRA derives comfort from the experience of promoters in
the transportation business and long standing relationship of BCL
with reputed clients.

BCL was started as a partnership firm in 1992 at Bhubneshwar
(Orissa) by Mr. Om Praksah Didwania and Mr. Jay Prakash Didwania.
In 2002, the company was incorporated as a public limited company.
The company is primarily engaged in road transportation of
vehicles of various Original Equipment Manufacturers (OEM's).  The
company operates through a fleet of 292 trucks and trailers of
which 267 vehicles are own and the remaining are rented from group
companies. BCL has regional offices at Bhubaneswar, Chennai,
Gurgaon and Pune.  The company also has workshop facility at
Bhubaneswar (Orissa), Balasore (Orissa), Chennai (Tamil Nadu),
Gurgaon (Haryana) and Pune (Maharashtra).

Recent Results

The company reported a net profit of INR0.21 crores in FY10
(provisional) on an operating income of INR66.97 crores, as
compared to a net profit of INR0.08 crores on an operating income
of INR92.67 crores during FY09.


BKS TEXTILES: CRISIL Assigns 'B+' Rating to INR16.5MM LT Loan
-------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to B.K.S. Textiles
Pvt Ltd's bank facilities.

   Facilities                          Ratings
   ----------                          -------
   INR16.50 Million Long-Term Loan     B+/Stable (Assigned)
   INR10.00 Million Cash Credit        B+/Stable (Assigned)
   INR55.00 Million Packing Credit     P4 (Assigned)
   INR100.00 Million Bill Purchase     P4 (Assigned)
                       Discounting
   INR20.00 Million Letter of Credit   P4 (Assigned)

The ratings reflect BKS's exposure to risks related to
geographical concentration in its revenue profile, and its below-
average financial risk profile. These rating weaknesses are
partially offset by the benefits that BKS derives from its
established position, and promoters' experience, in the textile
industry.

Outlook: Stable

CRISIL believes that BKS will continue to benefit from its
promoters' industry experience and established relationships with
customers.  The outlook may be revised to 'Positive' if BKS
diversifies its revenue base or generates more-than-expected cash
accruals leading to an improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case of
higher-than-expected debt levels, or deterioration in BKS's
revenues and cash accruals, thereby weakening its financial risk
profile.

                       About B.K.S. Textiles

Based in Palladam (Tamil Nadu), BKS was set up in 2004 by Mr. M
Senthil Kumar.  The company manufactures and exports made-ups and
cotton fabric.  BKS has 32 looms, 140 sewing machines, and
chemical coating capacity for 2.5 million metres per annum. Around
94 per cent of the company's revenues come from exports to the
European and US markets.

BKS, on a provisional basis, posted a profit after tax (PAT) of
INR5.6 million on net sales of INR428 million for 2009-10 (refers
to financial year, April 1 to March 31), against a reported PAT of
INR12 million on net sales of INR405 million for 2008-09.


COSMAS RESEARCH: ICRA Places 'LBB-' Rating on INR82cr Loan
----------------------------------------------------------
ICRA has assigned the long term rating of "LBB-" to INR82 Crore
fund based facilities of Cosmas Research Lab Limited with a
"Stable" outlook.  ICRA has also assigned the short term rating of
"A4" to INR8 Crore non fund based bank facilities of CRL.

The ratings factor in the demand potential in the contract
manufacturing business and the promoters' long standing experience
in similar business. However, the ratings are constrained by the
group's limited past experience in the oncology segment, lack of
proven track record in executing a project of similar scale; and
high leverage levels at a consolidated level. Moreover, with high
debt servicing obligations, the company's liquidity is likely to
remain stretched in the medium term.

Cosmas group, set up in 1994 is engaged in the manufacturing and
marketing of pharmaceutical products.  The group was founded by
Mr. Punit Jain, a pharmacist along with his family.  Mr. Jain had
started the business by setting up a small drug formulation unit
in Ludhiana.  Under CRL, the group is setting up USFDA and MHRA
approvable Betalactum and Oncology facilities in Ludhiana.


ENCORE NATURAL: CRISIL Places 'BB+' Rating on INR120MM Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Encore Natural Polymers Pvt Ltd.

   Facilities                          Ratings
   ----------                          -------
   INR120.0 Million Cash Credit        BB+/Stable (Assigned)
   INR13.5 Million Letter of Credit    P4+ (Assigned)
   INR1.5 Million Bank Guarantee       P4+ (Assigned)

The ratings reflect ENPL's susceptibility to volatility in raw
material prices and exposure to intense competition in the guar
gum business.  These rating weaknesses are partially offset by the
extensive experience of ENPL's promoters in the industry.

Outlook: Stable

CRISIL believes that ENPL will continue to benefit from its
promoters' experience in the guar gum industry. The outlook may be
revised to 'Positive' if ENPL significantly increases its
operating revenues and margin, while maintaining its debt
protection metrics.  Conversely, the outlook may be revised to
'Negative' if ENPL's profitability and debt protection metrics
decline significantly, its business risk profile weakens because
of disruptions in supply of raw materials or emergence of new
substitutes affecting the offtake for its products or its capital
structure weakens because of larger-than-expected debt-funded
capital expenditure.

                        About Encore Natural

ENPL was formed in 1999 by Mr. Sudhir Merchant and his brother,
Mr. Viren Merchant, by restructuring Indian Gum Industries Ltd,
which was promoted by Mr. C G Merchant.  The company manufactures
guar gum powder and guar gum derivatives.  The company's
manufacturing unit in Ahmedabad (Gujarat) has an installed
capacity of 10,000 tonnes per annum. Exports formed majority of
the sales of the company's sales in 2009-10 (refers to financial
year, April 1 to March 31).  The company is actively managed by
Mr. Sudhir Merchant and Mr. Viren Merchant.

ENPL reported on provisional basis a profit after tax (PAT) of
INR2.4 million on net sales of INR253.0 million for 2009-10,
against a PAT of INR2.0 million on net sales of INR284.2 million
for 2008-09.


MADHUSALA DRINKS: CRISIL Puts 'BB' Rating on INR140MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to Madhusala
Drinks Pvt Ltd's bank facilities.

   Facilities                       Ratings
   ----------                       -------
   INR140 Million Cash Credit       BB/Stable (Assigned)
   INR50.5 Million Term Loan        BB/Stable (Assigned)
   INR207 Million Proposed LT
          Bank Loan Facility        BB/Stable (Assigned)
   INR2.5 Million Bank Guarantee    P4+ (Assigned)

The ratings reflect MDPL's moderate financial risk profile, marked
by weak debt protection metrics; the ratings also factor in MDPL's
exposure to risks related to working-capital-intensive operations
and implementation of projects.  These rating weaknesses are
partially offset by the benefits that MDPL derives from its
promoters' experience and from its established position in the
liquor distribution business.

For arriving at its ratings, CRISIL has combined the financial
risk profiles of Johal & Co (Wine sales) Pvt Ltd, Madhusala Drinks
Pvt Ltd, R G Shaw and Sons Pvt Ltd and Madan Wine Stores Pvt Ltd.
This is because these entities, collectively referred to as the
Johal group, are under a common management, and have strong
operational and financial linkages among them.

Outlook: Stable

CRISIL believes that the Johal group will continue to benefit over
the medium term from its healthy distribution network and its
promoters' experience in the Indian-manufactured foreign liquor
(IMFL) distribution business.  The outlook may be revised to
'Positive' if the group scales up its operations, and improves its
profitability sustainably.  Conversely the outlook may be revised
to 'Negative' if the group's profitability declines considerably,
or if significant project implementation delays result in
deterioration in the group's financial risk profile.

                        About Madhusala Drinks

The Kolkata-based Johal group primarily manufactures and trades in
IMFL, exclusively for United Spirits Ltd and United Breweries Ltd
and accounts for almost 45 per cent of sales of UB Group's sales
in West Bengal. Mr. Joginder Singh Johal and his brothers, Mr.
Surjit Johal and Mr. Devinder Johal, founded the group in Dhanbad
in 1971 in the form of a partnership concern, Johal & Co.  In
1979, the firm was converted into a private limited company, JCPL,
and the operations were shifted to Kolkata.  In 2007, MDPL was
acquired to undertake contract manufacturing of IMFL.  Currently,
the business is looked after by the second generation of
promoters, Mr. Sarbjit Johal and Mr. Maninder Johal.  Other group
companies, RGSSPL and MWSPL also trade in IMFL.

The group reported a provisional profit after tax (PAT) of
INR71 million on net sales of INR5282 million for 2009-10 (refers
to financial year, April 1 to March 31) against a PAT of
INR48 million on net sales of INR4156 million for 2008-09.


PREMIUM CHICK: CRISIL Assigns 'BB+' Rating to INR60MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable' rating to the bank facilities
of Premium Chick Feeds Pvt Ltd, which is part of the PCFPL-PHFPL
combine.

   Facilities                       Ratings
   ----------                       -------
   INR60.0 Million Cash Credit      BB+/Stable (Assigned)
   INR13.2 Million Long Term Loan   BB+/Stable (Assigned)
   INR10.5 Million Proposed Long    BB+/Stable (Assigned)
         Term Bank Loan Facility

The ratings reflect the PCFPL-PHFPL combine's small scale of
operations, low operating margin, and vulnerability of its
operating profitability to risks inherent in the poultry industry.
These rating weaknesses are partially offset by the improvement in
the combine's profitability because of the strong growth in the
poultry industry over the past one year.  The combine also
benefits from its highly integrated operations.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of PCFPL and its group company, Premium
Hatcheries & Farms Pvt Ltd, together referred to as the PCFPL-
PHFPL combine.  PHFPL is integral to the value chain of PCFPL's
poultry business as it supplies day-old chicks (DOC) to broiler
farms operated by PCFPL.  Furthermore, PCFPL provides operational
support to PHFPL.

Outlook: Stable

CRISIL believes that the PCFPL-PHFPL combine will maintain a
steady growth in operating income over the medium term, supported
by its highly integrated operations.  The outlook may be revised
to 'Positive' if there is a greater-than-expected improvement in
the combine's profitability.  Conversely, the outlook maybe
revised to 'Negative' if the combine contracts more debt than
expected for its capital expenditure plans.

                        About Premium Chick

PCFPL was set up in 1991 by Mr. Arun Gulati, Mr. Girish Kulvankar,
Mr. Shyam Dhawan, and Mr. Neil Talgado. All the promoters have
equal ownership in PCFPL.  The company was set up primarily to
manufacture poultry feed.  In 2001, PCFPL commenced broiler
farming operations in addition to its existing poultry feed
manufacturing activities.  The rearing and selling of broiler
chicks has now become the main business of the company. The
company operates broiler farms on contract basis across
Maharashtra.

In 1996, the promoters of PCFPL set up PHFPL to start hatchery
business. Initially, PHFPL sold its DOCs to third-party broiler
farms. With the commencement of broiler farm operations in PCFPL
in 2001, PHFPL started selling DOCs entirely to PCFPL.

The PCFPL-PHFPL combine reported a profit after tax (PAT) of INR27
million (consolidated) on net sales of INR1.27 billion
(consolidated) for 2009-10 (refers to financial year, April 1 to
March 31), against a PAT of INR 5 million (consolidated) on net
sales of INR 884 million (consolidated) for 2008-09.


RAVI GRAPHICS: CRISIL Assigns 'BB-' Rating to INR66.5MM Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to Ravi Graphics'
bank facilities.

   Facilities                         Ratings
   ----------                         -------
   INR17.50 Million Cash Credit       BB-/Stable (Assigned)
   INR66.50 Million Term Loan         BB-/Stable (Assigned)
   INR3.00 Million Bank Guarantee     P4+ (Assigned)
   INR3.00 Million Letter of Credit   P4+ (Assigned)

The ratings reflect RG's large working capital requirements,
geographically concentrated revenue profile, and small scale of
operations.  These rating weaknesses are partially offset by RG's
above-average financial risk profile, marked by a healthy
operating margin and moderate debt protection metrics, and the
experience of its promoters in the printing industry.

Outlook: Stable

CRISIL believes that RG will continue to benefit from its
promoters' industry experience and its healthy operating
efficiencies, over the medium term.  The outlook may be revised to
'Positive' if RG increases its scale of operations, while
sustaining its profitability.  Conversely, the outlook may be
revised to 'Negative' if the firm undertakes a larger-than-
expected, debt-funded capital expenditure programme, its
profitability and revenues decline significantly, or in case of
significant withdrawal of capital by the partners, thereby
weakening its financial risk profile.

                         About Ravi Graphics

RG, a registered partnership firm set up in 1990, was promoted by
Mr. V R Nath and his family members; it undertakes offset printing
orders and also offers post-printing facilities such as quality
check, collating, and binding.  It undertakes printing of books,
booklets, leaflets, flyers, brochures, posters, tags, labels, and
also digital printing orders. The firm has its facility at
Bengaluru (Karnataka).

RG, on a provisional basis, reported a profit after tax (PAT) of
INR10 million on net sales of INR72 million for 2009-10 (refers to
financial year, April 1 to March 31); it had reported a PAT of
INR6 million on net sales of INR71 million for 2008-09.


SHRI LAKSHMI: CRISILS Assigns 'BB-' Rating to INR110MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to Shri Lakshmi
Defence Solutions Ltd's bank facilities.

   Facilities                           Ratings
   ----------                           -------
   INR130.0 Million Cash Credit Limit   BB-/Stable (Assigned)
   INR110.0 Million Term Loan           BB-/Stable (Assigned)
   INR50.0 Million Bank Guarantee       P4+ (Assigned)

The ratings reflect SLDSL's limited track record and
susceptibility to adverse regulatory changes.  These rating
weaknesses are partially offset by SLDSL's moderate financial risk
profile, marked by moderate gearing, healthy debt protection
metrics, and the financial support it derives from its parent,
Shri Lakshmi Cotsyn Ltd.

Outlook: Stable

CRISIL believes that Shri Lakshmi Defence Solutions Ltd's business
risk profile will remain modest over the medium term owing to the
company's limited track record of operations.  The outlook may be
revised to 'Positive' if the company's operating income or cash
accruals increase substantially, driven by significant increase in
its order book position and the timely execution of orders, while
maintaining its operating margin and capital structure.
Conversely, the rating may be revised to 'Negative' in case of a
decline in the cash accruals or if the company undertakes a
larger-than-expected debt-funded capex programme, resulting in
deterioration in the company's capital structure.

                     About Shri Lakshmi Defence

SLDSL was set up in 2006 by Dr. M P Agarwal, chairman of the Shri
Lakshmi group of companies.  The company, which is a wholly owned
subsidiary of SLCL, manufactures armoured vehicles used by defence
forces. SLDSL also sells bullet-proof jackets, helmets, and other
defence-related fabrics to Indian paramilitary forces, police
establishments, and military forces. The company's name was
changed to the current one from Armet Armoured Vehicles (India)
Ltd on September 11, 2009, following the exit of one of its
promoter, Armet Armoured Vehicles Ltd (AAVL, UK).  SLDSL's
production unit in Kanpur (Uttar Pradesh) has a manufacturing
capacity of 300 armoured vehicles per year.  SLDSL started
commercial production in FY 2009-10.

SLDSL reported a profit after tax (PAT) of INR23.2 million on net
sales of INR114.7 million for 2009-10 (refers to the period of 12
months from July 1 to June 30).


SIDDHI VINAYAK: CRISIL Reaffirms 'BB-' Rating on INR2.7MM Loan
--------------------------------------------------------------
CRISIL's rating on Siddhi Vinayak Industries' bank facilities
continue to reflect SVI's weak financial risk profile marked by
weak debt protection indicators and high gearing, small scale of
operations in the intensely competitive edible oil industry, and
exposure to risks relating to vagaries in the monsoons. These
weaknesses are partially offset by SVI's comfortable working-
capital management and established relationships with customers.

   Facilities                            Ratings
   ----------                            -------
   INR70.0 Million Cash Credit Limit     BB-/Stable (Reaffirmed)
   INR2.7 Million Term Loan              BB-/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that SVI will continue to benefit from its
established relationships with customers, over the medium term.
The outlook may be revised to 'Positive' if SVI's operating margin
increases, or its capital structure improves, most likely due to a
stronger capital base.  Conversely, the outlook may be revised to
'Negative' if the firm contracts large debt to fund capital
expenditure (capex), weakening its financial risk profile.

Update
SVI maintained its business risk profile in 2009-10 (refers to
financial year, April 1 to March 31), with turnover and operating
margin in line with CRISIL's expectations.  The gearing was also
as per CRISIL's expectations, at 2.4 times as on March 31, 2010,
primarily driven by high working capital requirements. Towards the
end of 2009-10, the firm undertook a capex programme of INR20
million, funded in a debt-to-equity ratio of 3:1, for setting up
five new expellers; the project is expected to be completed by
October 2010.  SVI also has plans for setting up a 30-tonnes-per-
day refinery unit during the current year at a total cost of INR10
million to INR15 million, to be funded by promoters' funds and
internal accruals.  With the increase in capacity, the firm's
working capital requirements will increase further, which would
lead to high gearing in the near future.

SVI is estimated to report a profit before tax of INR6 million on
net sales of INR806.6 million for 2009-10, against a profit after
tax of INR4.3 million on net sales of INR658.2 million for 2008-
09.

                        About Siddhi Vinayak

Set up in 2004 as a partnership firm by six partners, led by Mr.
Mukesh D Maheshwari, SVI manufactures mustard oil and its by-
products.  The firm has a capacity to process 136 tonnes of
mustard seed per day at its plant in Radhanpur (Gujarat).


SM ROLLING: ICRA Assigns 'LBB+' Rating to INR4.49cr Cash Credit
---------------------------------------------------------------
ICRA has assigned an 'LBB+' rating with stable outlook to the
INR4.49 crore cash credit facility of S M Rolling Works.  ICRA has
also assigned an 'A4+' rating to the INR3.00 crore short term fund
based facilities and INR16.50 crore short term non fund fased
facilities of SMRW.

The ratings draw comfort from company's long established
relationship with TML for supplying press metal components to
commercial vehicles.  While SMRW's client concentration with TML
is high, the risks are mitigated to an extent by the high share of
business it enjoys for most components it supplies to TML. The
assigned ratings also take into consideration long standing
experience of promoters in auto ancillary business and the healthy
scale of operations of the group. The ratings are however
constrained by stretched liquidity position of the company during
FY10 which was primarily on account of mismatch of payment cycles
with customer and suppliers.  The pressure on liquidity has been
released and the risk is mitigated to a certain extent due to
healthy growth of TML during FY11.  The company also has plans of
client diversification and revenue share from other clients is
expected to increase moving forward.

SMRW is one of the companies of Wadhokar Group of Companies
primarily engaged in manufacturing of auto press components for
commercial vehicles of TML. The company manufactures heavy sheet
metal body parts for  popular commercial vehicle models like 407,
709, 909 and other trucks and buses.

                         About S M Rolling

SMRW is a partnership entity incorporated in 1983 and it is
primarily engaged in manufacturing of auto press components for
commercial vehicles.  The company supplies only to automobile
industry and primarily to TML.  SMRW manufactures heavy sheet
metal body parts for various automobiles.  The company supplies to
commercial vehicles of TML like 407, 709, 909 and other trucks and
buses etc.  The company is ISO-TS-16949 certified which is an
international quality standard for design, development and
production of automotive related products.

Recent Results

SMRW has reported a profit before tax (PBT) of INR0.99 crore in
FY10 on an operating income of INR84.11 crore. The company has
reported operating profit before depreciation, interest,
amortization and tax (OPBDITA) of 3.37 crore in the same period.


SRS REAL: CRISIL Assigns 'BB+' Rating to INR662.2MM Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of SRS Real Infrastructure Ltd.

   Facilities                          Ratings
   ----------                          ------
   INR700.0 Million Cash Credit        BB+/Stable (Assigned)
   INR662.2 Million Term Loan          BB+/Stable (Assigned)
   INR100.0 Million Letter of Credit   P4+ (Assigned)

The ratings reflect SRSRIL's limited track record in real estate
development business, exposure to risks related to concentration
of its projects in and around Faridabad, large debt repayment
obligations compared with its cash accruals, and susceptibility to
downturns in the real estate sector.  These rating weaknesses are
partially offset by the healthy saleability of SRSRIL's
residential projects and the support the company receives from SRS
group (of which it is a part), and SRSRIL's promoters' experience
in the real estate business.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of SRSRIL and its wholly owned subsidiary,
SRS Real Estate Ltd.

Outlook: Stable

CRISIL believes that the SRS group, through its real estate arms
SRSRIL and SRSREL, will continue to invest in real estate in
Faridabad as it has achieved healthy saleability for its existing
project.  SRSRIL's financial risk profile is expected to remain
average, marked by moderate debt protection metrics, over the
medium term.  The outlook may be revised to 'Positive' if SRSRIL
generates substantial sales from its ongoing projects and
generates large cash accruals, thereby improving its financial
risk profile.  Conversely, the outlook may be revised to
'Negative' if saleability of the company's projects decline or the
company undertakes large, debt-funded projects without achieving
adequate sales, thereby adversely affecting its cash accruals.

                   About SRS Real Infrastructure

SRSRIL is the real estate arm of the SRS group.  The SRS group was
promoted by the Jindal family of Faridabad.  The group's other
real estate arm is SRSREL.  The group is also into jewellery,
retail, and entertainment businesses through its flagship company,
SRS Ltd, and into trading and finance business through its other
constituent companies and investment companies.

SRSRIL develops residential and commercial projects under its own
brand and that of SRSREL. SRSRIL is also trades in building
materials.  The company is currently executing two residential
projects, SRS Farm House and SRS Group Housing in Faridabad and
Rewari respectively, and one commercial project, SRS IT Tower, in
Faridabad; all the projects are in Haryana.  SRS Farm House is
spread over 65.5 acres. SRS Group Housing spread over 6.6 acres,
is a group housing project in Rewari.  Both the residential
projects are under construction and none of the units have been
occupied.  SRS IT tower is spread over 5.3 acres and is also under
construction.

For 2009-10 (refers to financial year, April 1 to March 31),
SRSRIL (on standalone basis) reported an operating income of
INR3079.8 million and a net profit of INR65.7 million, against an
operating income of INR1394.5 million and a net profit of INR31.9
million for 2008-09.


SRS REAL ESTATE: CRISIL Places 'BB+' Rating on INR2.23BB Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of SRS Real Estate Ltd.

   Facilities                           Ratings
   ----------                           -------
   INR2238.1 Million Term Loan          BB+/Stable (Assigned)
   INR202.1 Million Letter of Credit    P4+ (Assigned)

The ratings reflect SRSREL's limited track record in real estate
development business, exposure to risks related to concentration
of its projects in and around Faridabad, large debt repayment
obligations compared with its cash accruals, and susceptibility to
downturns in the real estate sector.  These rating weaknesses are
partially offset by the healthy saleability of SRSREL's
residential projects and the support the company receives from SRS
group (of which it is a part), and SRSREL's promoters' experience
in the real estate business.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of SRS Real Infrastructure Ltd and its
wholly owned subsidiary SRSREL.

Outlook: Stable

CRISIL believes that the SRS group, through its real estate arms
SRSRIL and SRSREL, will continue to invest in real estate in
Faridabad as it has achieved healthy saleability for its existing
project.  SRSREL's financial risk profile is expected to remain
average, marked by moderate debt protection metrics, over the
medium term.  The outlook may be revised to 'Positive' if SRSREL
generates substantial sales from its ongoing projects and
generates large cash accruals, thereby improving its financial
risk profile.  Conversely, the outlook may be revised to
'Negative' if saleability of the company's projects decline, or if
the company undertakes large, debt-funded projects without
achieving adequate sales, thereby adversely affecting its cash
accruals.

                      About SRS Real Estate

SRSREL is the real estate arm of the SRS group.  The SRS group was
promoted by the Jindal family of Faridabad.  The group's other
real estate arm is SRSREL's parent, SRSRIL.  The group is also
into jewellery, retail, and entertainment businesses through its
flagship company, SRS Ltd, and into trading and finance business
through its other constituent companies and investment companies.

SRSREL and SRSRIL, are develops residential projects. SRSREL is
currently executing four residential projects.  Its projects in
Faridabad (Haryana), SRS Residency, SRS Royal Hills, and SRS Pearl
Floors, are spread over 16 acres, 19 acres, and 20 acres
respectively; the project in Palwal (Haryana), SRS Mini Township,
is spread over 52 acres.  All the projects are under construction
and none of the units have been occupied yet.

For 2009-10 (refers to financial year, April 1 to March 31),
SRSREL (on standalone basis) reported an operating income of
INR1799.4 million and a net profit of INR6.7 million, against an
operating income of INR782.3 million and a net profit of INR5.7
million for 2008-09.


TATA MOTORS: S&P Raises Corporate Credit Rating to 'BB-'
--------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised its
long-term corporate credit rating on India-based Tata Motors Ltd.
to 'BB-' from 'B+'.  The outlook is stable.  At the same time, it
raised the issue rating on the company's senior unsecured notes to
'BB-' from 'B+'.

S&P raised the rating on Tata Motors to reflect the improvement in
the company's capital structure following the recent equity
issuance of US$750 million.  S&P believes that the equity issuance
also improves the company's financial flexibility.  Tata Motors
recently issued US$550 million of 'A' shares with differential
voting rights and US$200 million of ordinary shares to qualified
institutional buyers.  The company intends to use the proceeds
from the equity issuance to reduce short-term debt maturities.
This is in line with the company's stated intent of improving
capital structure through debt reduction.

"S&P expects Tata Motors to largely maintain its improved
operating performance," said Standard & Poor's credit analyst
Mehul Sukkawala.  "India operations remain robust and stable given
the company's dominant position in the commercial vehicle segment
and increasing sales in the passenger car segment.  Sales at
Jaguar Land Rover's operations have also increased due to better
demand across most regions, particularly the U.K., China, and
North America."

S&P expects Tata Motors' financial metrics to improve as a result
of the equity issuance and sustained operating performance.  S&P
anticipate that the company's ratio of adjusted debt to capital
will reduce significantly to about 55% for fiscal year ending
March 31, 2011, from 75% for fiscal 2010.  In addition, S&P
expects the company's cash flow protection measures to improve.

Tata Motors' liquidity is adequate, in S&P's opinion.  As at
June 30, 2010, the company had cash balance of Indian rupee 84
billion and unused credit facilities of about INR135 billion.  The
company subsequently also raised INR33.5 billion from the recent
equity issuance.  S&P believes that the company has sufficient
funds to meet its short-term debt maturities of INR152 billion.

The stable outlook reflects S&P's expectation that the company
will sustain its improved operating performance and its improved
capital structure.


VEEKAY POLYCOATS: CRISIL Reaffirms 'BB+' Ratings on Various Debts
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Veekay Polycoats Ltd
continue to reflect Veekay's limited financial flexibility owing
to significant capex plans and working capital intensive nature of
operations and exposure to intense competition in the highly
fragmented synthetic leather industry.  These weaknesses are
partially offset by Veekay's established market position in the
synthetic leather industry in India.

   Facilities                             Ratings
   ----------                             -------
   INR266.0 Million Cash Credit Limit     BB+/Stable (Reaffirmed)
   INR155.0 Million Term Loan             BB+/Stable (Reaffirmed)
   INR39.0 Million Proposed Long-Term     BB+/Stable (Reaffirmed)
                   Bank Loan Facility
   INR440.0 Million Letter of Credit      P4+ (Reaffirmed)
   INR100.0 Million Proposed Short-Term   P4+ (Reaffirmed)
                     Bank Loan Facility

Outlook: Stable

CRISIL believes that Veekay will continue to benefit over the
medium term from its established market position and decade-old
relationships with suppliers and customers.  The outlook may be
revised to 'Positive' if Veekay generates more-than-expected cash
accruals and profits, while stabilizing operations at its Haridwar
facility on time and/ or the company is able to reduce the
receivable cycle leading to improvement in its financial
flexibility.  Conversely, the outlook may be revised to 'Negative'
if Veekay undertakes larger-than-expected debt-funded capital
expenditure programme, generates less-than-expected cash accruals
and profits, or if the company's liquidity remains under pressure
because of persistent delays in receivables.

                        About Veekay Polycoats

Veekay was established by Mr. Vinod Garg in 1992.  The company
manufactures synthetic leather at its unit in New Delhi which has
installed capacity to manufacture 7.2 million metres per annum of
synthetic leather (which contributes around 70 per cent of its
operating income).  In 2006, Veekay commenced manufacturing non-
woven fabrics (around 30% of operating income), and has installed
capacity of 3000 tonnes per annum in this segment.  Veekay has set
up a unit in Haridwar in 2009-10 (refers to financial year,
April 1 to March 31) for manufacturing non-woven spun-
bounded/spun-lace fabric; this unit, with capacity to manufacture
3000 tonne of fabric per annum, commenced operations (small in
scale) in March, 2010.  Veekay has distributors across India. The
company is also setting up a new unit for manufacturing synthetic
leather at a cost of approx INR95 crore in Bhiwadi (Rajasthan)
which is likely to start operations from February, 2011.

Veekay reported profit after tax (PAT) of INR44.4 million on net
sales of INR1820 million for 2009-10, against INR16.5 million and
INR1390.0 million, respectively, for 2008-09.


VTC ENGINEERING: CRISIL Assigns 'B' Rating to INR50MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to VTC Engineering
Pvt Ltd's bank facilities.

   Facilities                       Ratings
   ----------                       -------
   INR50.0 Million Cash Credit      B/Stable (Assigned)
   INR30.0 Million Proposed LT      B/Stable (Assigned)
            Bank Loan Facility
   INR120.0 Million Bank Guarantee  P4 (Assigned)

The ratings reflect VTC's small scale of operations, large working
capital requirements, and exposure to risks related to
geographical and segmental concentration in revenue profile, and
intense competition in the civil construction activities; the
ratings also reflect VTC's below-average financial risk profile,
marked by average gearing, weak debt protection metrics, and small
net worth.  These rating weaknesses are partially offset by VTC's
strong track record in the civil construction industry and healthy
order book.

Outlook: Stable

CRISIL believes that VTC will maintain its business risk profile,
supported by its established track record in the civil
construction industry and strong order book.  The outlook may be
revised to 'Positive' if VTC successfully scales up and
diversifies its operations, while maintaining healthy
profitability and comfortable gearing.  Conversely, the outlook
may be revised to 'Negative' if there are cost and time overruns
in completion of the company's ongoing projects, or if the company
undertakes any large, debt-funded capital expenditure programme.

                        About VTC Engineering

Set up in 1987, VTC is based at Visakhapatnam (Andhra Pradesh).
The company provides turnkey solutions that include civil,
electrical and structural works.  VTC is managed by Mr. V
Nageshwar Rao, along with his brothers.  The company mainly
operates within Andhra Pradesh and undertakes building projects
for Government of Andhra Pradesh or public sector undertakings.

VTC reported an estimated profit after tax (PAT) of INR1.06
million on estimated net sales of INR45.27 million for 2009-10
(refers to financial year, April 1 to March 31), against a PAT of
INR6.77 million on net sales of INR163.37 million for 2008-09.


WORLD RESORTS: ICRA Assigns 'LB-' Rating to INR57.91cr Bank Debt
----------------------------------------------------------------
ICRA has assigned an 'LB-' rating to the INR57.91 crore bank
facilities and INR9.22 crore Convertible Debentures of World
Resorts Limited.

The rating reflects the delays in debt servicing by the company in
the past and the weak credit risk profile of WRL characterised by
highly leveraged capital structure, net losses over the last 4
years and poor debt protection ratios.  The company's operating
performance has been impacted by decline in Average Room Rate
(ARR) and occupancy ratios due to increasingly competitively
Bangalore hospitality market and ongoing construction work at
Tumkur Road, the main road connecting the hotel.  ICRA however
draws comfort from the established positioning of the hotel in the
MICE (meeting, incentive, conference and exhibition) and leisure
segment in Bangalore.

Recent Results

In 2009-10, WRL has posted a net loss of INR13.20 crore on an
operating income of INR22.86 crore as compared to a net loss of
INR8.71 crore on an operating income of INR24.23 crore.

                         About World Resorts

World Resorts Ltd was incorporated on April 27, 1995 by Mr. Sanjay
Khan to develop a luxurious Spa and 5 Star Deluxe Hotel in
Bangalore.  The hotel named 'The Golden Palms Hotel & Spa' is
spread across 14 acres of land at Nagarur village, Dasanapura
hobli off Tumkur Road on the outskirts of Bangalore.  The hotel is
located about 25 kms from MG Road, providing a tranquil
environment in the lush foliage. The hotel has total of 150 rooms
comprising of 132 deluxe rooms, 16 deluxe suites and 2
Presidential suites.  Destined as an ideal place for meetings and
conference, the hotel has total of seven meeting rooms, comprising
a ballroom that can be divided into two sections; one conference
hall and two smaller spa meeting rooms that can be combined, 2
meeting rooms, and 2 board rooms.  Besides for the leisure
travelers, the hotel has a 70,000 square feet Spa Building, along
with a fully equipped Gymnasium.  The hotel also has four
Restaurants and 3 Bars, a 135 metres swimming pool, sports
facilities including Clay Court Tennis, Badminton court, Squash,
Billiards and Pool.


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


J-CORE16 TRUST: S&P Downgrades Ratings on Various Certificates
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class A to D trust certificates issued under the J-CORE16 Trust
Certificates transaction and removed the ratings from CreditWatch
with negative implications, where they were placed on Oct. 7,
2010.  At the same time, Standard & Poor's affirmed its rating on
class X issued under the same transaction.

J-CORE16 is a property sales-type CMBS transaction.  The trust
certificates issued under this transaction are secured by one
specified bond, which was originally backed by the real estate in
a portfolio of 18 properties.  Although seven out of the 18
properties have already been sold, the liquidation of the real
estate properties has fallen behind schedule and the early
redemption target amount trigger has been hit.

The downgrades and CreditWatch resolutions are based on (1) a
review of S&P's initial liquidation scenarios and (2) a lowering
of its assumption with regard to the recovery prospect from the
properties backing the specified bond.

S&P currently assume the value of the properties that S&P revised
this time to be about 71% of its initial underwriting value.

Standard & Poor's ratings address the full and timely payment of
interest and ultimate repayment of principal by the transaction's
legal final maturity date in May 2015 for the class A
certificates, the full payment of interest and ultimate repayment
of principal by the legal maturity date for the class B to D
certificates, and the timely payment of available interest for the
interest-only class X certificates.  The transaction was arranged
by Deutsche Bank AG Tokyo Branch, and ORIX Asset Management & Loan
Services Corp. is the transaction servicer.

            Ratings Lowered, Off Creditwatch Negative

                   J-CORE16 Trust Certificates
          JPY21.9 billion trust certificates due May 2015

Class   To        From                Initial Issue Amount  Coupon Type
-----   --        ----                --------------------  -----------
A       AA+ (sf)  AAA (sf)/Watch Neg  JPY15.5 bil.          Floating Rate
B       A (sf)    AA (sf)/Watch Neg   JPY 2.9 bil.          Floating Rate
C       BB (sf)   A (sf)/Watch Neg    JPY 2.5 bil.          Floating Rate
D       B (sf)    A- (sf)/Watch Neg   JPY 1.0 bil.          Floating Rate

                        Ratings Affirmed

   Class          Rating            Initial Notional Principal
   -----          ------            --------------------------
   X              AAA (sf)          JPY 21.9 bil.


TAKEFUJI CORP: Credit Swaps Traders Agree on 14.75% Recovery Rate
-----------------------------------------------------------------
Yusuke Miyazawa at Bloomberg News reports that traders settling
credit-default swaps linked to Takefuji Corp. agreed on a 14.75%
recovery rate for the failed Japanese consumer lender's debt.

Bloomberg, citing a statement posted on creditfixings.com, relates
that the price means sellers of swaps on Takefuji would pay 85.25%
of face value to settle the contracts.  The price was the result
of bidding at auction by 15 dealers including Goldman Sachs Group
Inc. and Barclays Plc, Bloomberg notes.

According to Bloomberg, Moody's Japan K.K. said in an e-mailed
statement on October 28 that Takefuji's bankruptcy, combined with
loan caps enforced under new lending rules, may increase defaults
linked to consumer finance loans and credit card advances.

Contracts protecting a net US$810.1 million of Takefuji's debt
were outstanding as of Oct. 22, according to the Depository Trust
Clearing Corp., which runs a central repository for the credit
swaps market, Bloomberg adds.

Takefuji Corp. filed a bankruptcy petition with the Tokyo
District Court on September 28, 2010, with debts of
JPY433.6 billion.  Bloomberg News said the company has become the
biggest casualty of Japan's four-year crackdown on coercive
lending practices by consumer finance companies.  The lender is
seeking to restructure as borrower claims of overpaid interest are
estimated to exceed JPY1 trillion.

                         About Takefuji

Takefuji Corporation (TYO:8564) -- http://www.takefuji.co.jp/--
is a Japan-based company mainly engaged in the consumer finance
business.  The Company operates in two business segments.  The
Consumer Finance segment covers the loan and credit card
businesses.  The Others segment is involved in the operation of
golf courses, the development, management and leasing of real
estate, the venture capital business, as well as the investment
business, among others. The Company has eight subsidiaries.


THE MLOX4 TRANSACTION: S&P Cuts Ratings on Various Certificates
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class A to D trust certificates issued under the MLOX4 transaction
and removed the ratings from CreditWatch with negative
implications, where they were placed on Oct. 4, 2010.  At the same
time, S&P withdrew its rating on class X in accordance with its
updated criteria for rating interest-only securities, which S&P
published on April 15, 2010.

The four loans that initially secured the transaction remain in
place.  S&P downgraded classes A to D because:

With regard to one of the transaction's four remaining loans
(liquidation-type loan maturing in Feb. 2012; the loan originally
represented about 30% of the total initial issuance amount of the
trust certificates), S&P assumed that there would be no partial
loan repayment through the sale of remaining properties by the
asset manager after considering the progress of the sales of the
related collateral properties.  In September 2009, S&P lowered its
assumption with regard to the likely collection amount from the
properties in question.  Under its revised assumption, S&P
estimated the combined value of the properties to be about 68% of
its initial underwriting value.  This time S&P has again lowered
S&P's assumption with respect to the likely collection amount from
the properties after considering a number of factors, including
the performances of the properties.  S&P currently assume the
combined value of the properties to be about 60% of its initial
underwriting value.

In December 2009, S&P lowered its assumptions with regard to the
likely collection amounts from the properties backing the other
three remaining loans (the loans originally represented about 37%,
about 30%, and about 5%, respectively, of the total initial
issuance amount of the trust certificates), which are due to
mature in May 2012.  Under its revised assumptions, S&P estimated
the values of properties backing each loan to be about 63%, about
67%, and about 73%, respectively, of its initial underwriting
values.  This time S&P has again lowered its assumption with
regard to the likely collection amounts from the properties given
the current situation regarding real estate deals involving
similar asset types.  S&P currently assume the values of the
properties backing each loan to be about 59%, about 62%, and about
70%, respectively, of S&P's initial underwriting values.

Under the transaction agreement, loan principal is set to be
repaid pro-rata provided the loans do not default.  As the four
loans have not defaulted, S&P see a risk of nonrepayment of the
aforementioned liquidation-type loan with the lowest credit
quality, with the other three loans being redeemed pro-rata.  In
reviewing S&P's ratings, S&P assumed that the three loans (three
loans other than the liquidation-type loan) would be redeemed and
the liquidation-type loan would not be repaid.

S&P has withdrawn its rating on class X in accordance with its
updated criteria for rating IO securities.

MLOX4 is a multiborrower CMBS transaction.  The trust certificates
were initially secured by four loans extended to four obligors.
The loans were originally backed by 22 real estate trust
certificates held by the four borrowers.  The transaction was
arranged by Merrill Lynch Japan Securities Co. Ltd., and ORIX
Asset Management & Loan Services is the transaction servicer.

The ratings address the full and timely payment of interest and
the ultimate repayment of principal by the transaction's legal
final maturity date in May 2014 for the class A trust
certificates, and the full payment of interest and ultimate
repayment of principal by the legal final maturity date for the
class B to D trust certificates.

            Ratings Lowered, Off Creditwatch Negative

                              MLOX4
  JPY42.6 billion floating-rate trust certificates due May 2014

Class   To        From                Initial issue amount  Coupon type
-----   --        ----                --------------------  -----------
A       A- (sf)   AA+ (sf)/Watch Neg  JPY25.0 bil.          Floating rate
B       BB- (SF)  A- (sf)/Watch Neg   JPY6.7 bil.           Floating rate
C       B- (sf)   BB (sf)/Watch Neg   JPY6.7 bil.           Floating rate
D       CCC (sf)  B (sf)/Watch Neg    JPY4.2 bil.           Floating rate

                        Rating Withdrawn

Class       Rating                      Initial Notional Principal
-----       ------                      --------------------------
X*          AAA (sf)                    JPY42.6 bil.

                          * Interest only


* JAPAN: BOJ to Buy Low-Rated Corporate Debt to Support Economy
---------------------------------------------------------------
The Bank of Japan will purchase corporate debt with lower credit
ratings than it accepted before, as part of its latest easing
program that attempts to support the economy by helping companies
borrow, Bloomberg News reports.

Bloomberg relates the BOJ said October 8 the bank will buy BBB
rated corporate bonds and A-2 commercial paper.  According to
Bloomberg, board members will meet again on Nov. 4-5 to discuss
purchases of exchange-traded funds and Japanese real-estate
investment trusts, bringing forward its policy meeting by more
than a week.

At its last meeting on Oct. 5, Bloomberg relates, the BOJ policy
board unveiled "comprehensive monetary easing" steps including a
JPY5 trillion fund to buy more assets.  Bloomberg, citing Izuru
Kato, chief market economist at Totan Research Co. in Tokyo,
reports Governor Masaaki Shirakawa may feel pressure to loosen
credit further should yen gains threaten exports and if the U.S.
Federal Reserve this week embarks on a second round of
quantitative easing.

The bank had only accepted bonds rated A or higher and a-1
commercial paper when it was buying corporate debt in 2009 in the
wake of the global credit crisis, according to Bloomberg.


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


SSANGYONG MOTOR: South Korea Board Approves Mahindra Purchase
-------------------------------------------------------------
South Korea's Fair Trade Commission has approved the sale of
Ssangyong Motor to Mahindra and Mahindra, Agence France-Presse
reports.  The approval, the AFP relates, followed Mahindra's due
diligence on the Korean firm.

According to the AFP, the commission said the deal would enhance
competition in the domestic market and increase Ssangyong's
exports.

The AFP relates Mahindra signed a preliminary agreement to buy a
controlling stake in Ssangyong in August.  A Mahindra executive
had said a final agreement was expected in November, the AFP adds.

                        About Ssangyong Motor

Headquartered in Kyeonggi-Do, South Korea, Ssangyong Motor Co.
Ltd. -- http://www.smotor.com/-- is a manufacturer of automobiles
primarily engaged in production of sports utility vehicles (SUVs)
and recreational vehicles (RVs).  The company's production is
grouped into four lines: SUVs under brand names REXTON, KYRON and
ACTYON; sports utility trucks (SUTs) under the brand name ACTYON
Sports; passenger cars under brand name Chairman, and multi-
purpose vehicles (MPVs) under the brand name Rodius.  It also
provides automobile parts such as coolers, diesel engines and
others.

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 12, 2009, Ssangyong Motor Co. filed for receivership with the
Seoul Central District Court to stave off a complete collapse.  In
February, the Seoul Central District Court accepted Ssangyong's
application to rehabilitate under court protection.  The court
named former Hyundai Motor Co. executive Lee Yoo-il and Ssangyong
executive Park Young-tae to run the automaker.

A TCR-AP report on Sept. 16, 2009, said Ssangyong Motor submitted
a revival plans to the Seoul Central District Court seeking
capital reduction and a debt-for-equity swap by creditor.  A South
Korean bankruptcy court approved in December Ssangyong Motor's
restructuring plan despite opposition by some bondholders, the
TCR-AP reported on Dec. 18, 2009.


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


DOMINION FINANCE: Under SFO Probe Over Related Party Deals
----------------------------------------------------------
The Serious Fraud Office has launched an investigation into
related party transactions by Dominion Finance Group and North
South Finance before their collapse in 2008, BusinessDay reports.

BusinessDay relates Chief executive Adam Feeley said the matter
had been the subject of an extensive inquiry prior to starting a
formal investigation.

"We have concluded a number of cases which now enable us to
address issues identified in the preliminary inquiry.  The
investigation will focus on a small number of related party
transactions which will ensure we complete the investigation in a
timely manner," BusinessDay quotes Mr. Feeley as saying.

Mr. Feeley said the SFO would co-ordinate its efforts with the
Registrar of Companies and the Securities Commission, the report
notes.  "We have already worked closely with the Securities
Commission in relation to this matter, and continue to do so."

In July, BusinessDay relates, the Securities Commission laid
criminal charges and issued civil proceedings under the Securities
Act against former Dominion Finance Group Limited and North South
Finance Limited directors.

                       About Dominion Finance

Based in Auckland, New Zealand, Dominion Finance Holdings
Limited (DFH:NZX) -- http://www.dominionfinance.co.nz/--engages
in the provision of financial services through the raising of
debenture stock.  The company operates through its wholly owned
subsidiaries Dominion Finance Group Limited and North South
Finance Limited, and investment vehicle Dominion Investment Fund
Limited.  Both Dominion Finance Group Limited and North South
Finance Limited accept debenture stock investments and apply
them (in conjunction with its own funds) towards the provision
of certain loans and other financial accommodation.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 11, 2008, the company's trustee Perpetual Trust Limited
appointed Rodney Gane Pardington and Barry Phillip Jordan, both
Chartered Accountants of Deloitte, as receivers and managers of
Dominion Finance Holdings' subsidiary Dominion Finance Group
(DFG), rather than allow DFG to put its moratorium proposal to
stockholders for approval.  Dominion Finance Group owes 6,055
debenture holders NZ$224 million.

A TCR-AP report on Oct. 17, 2008, said Dominion Finance Holdings
Limited appointed John Joseph Cregten and Andrew John McKay of
Corporate Finance Limited as the company's voluntary
administrators.  According to The National Business Review:
"Dominion Finance Holding went into voluntary administration after
it was fined NZ$65,000 by NZX Discipline for filing its annual
report late.  At that time, directors said the holding company had
little cash to its own name."

In addition, the TCR-AP on Dec. 3, 2008, reported that the debt
moratorium for Dominion Finance Holding's other subsidiary North
South Finance Ltd was approved by the stockholders on Dec. 2,
2008.


WENSLEY DEVELOPMENTS: Placed in Liquidation by IRD
--------------------------------------------------
The Southland Times reports that Associate Judge Osborne at the
High Court at Invercargill has placed Wensley Developments The
Marina Ltd into liquidation.  Associate Judge Osborne appointed
David Crichton and Keiran Horne as liquidators.

According to the Southland Times, the application for liquidation
was lodged by the Inland Revenue Department in an attempt to
recoup NZ$564,212.15 owed in GST, late payment penalties and
interest.  The Southland Times relates the application was
supported in court by Tulloch Marina Ltd.

At a hearing on October 28, the Southland Times relates, counsel
for the Inland Revenue Department, David Tasker, said the
department wished to proceed with the liquidation and called for
the appointment of liquidators.

Wensley Developments The Marina Ltd is the company behind the
NZ$37 million, 28-unit Marina Baches at the Frankton Marina in
Queenstown.


=================
S I N G A P O R E
=================


FIRST SHIP: S&P Affirms 'BB-' Long-Term Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' long-term
corporate credit rating on Singapore-based ship leasing company,
First Ship Lease Trust, and removed it from CreditWatch, where it
was placed with negative implications on June 8, 2010.  The
outlook is stable.

The rating affirmation and outlook reflect the resilience of FSL's
credit protection measures despite Groda Shipping & Transportation
Ltd. reneging on two long-term vessel leases; lower debt than
expected due to the cancellation of a planned bond issuance, and;
the low likelihood of FSL's remaining customers breaking their
fixed-rate contracts due to corporate guarantees on their leases
with FSL.

"The rating on FSL reflects the company's weak cash flow measures,
its exposure to the capital intensive, highly cyclical, and
volatile nature of the shipping industry, and the weak
creditworthiness of its counterparties," said Standard & Poor's
credit analyst Manuel Guerena.

These risks are partially offset by these strengths: (1) FSL's
long-term leases, which protect it from some of the industry's
volatility; (2) having corporate guarantees in all its existing
lease contracts, and; (3) a young fleet (5.4 years on a weighted
average) and experienced management and main sponsors.

The industry's downturn exposed FSL to volatility in vessel
values--an important factor in its credit covenants--and to the
weakening credit profile of its seven lessees, the largest of them
accounting for 23% of FSL's revenues.  This risk materialized in
May 2010 when Groda Shipping returned two tankers--the reason S&P
placed the rating on CreditWatch with negative implications.  FSL
has redeployed these ships in the spot market, but the rates are
lower than those in the previous leases.

"S&P expects FSL's credit protection measures to remain
appropriate for the current rating, considering the fixed-rate
revenues from the remaining 21 ships, and the cancellation of the
planned senior notes offering.  In Standard & Poor's view, FSL's
debt is likely to remain level in the next 12 months," Mr.
Guerena said.

The stable rating outlook reflects FSL's cash flow resilience amid
the industry downturn, despite Groda Shipping reneging on the
leases for the two ships.  S&P may lower the rating should there
be additional problems with lessees that further weaken cash
flows.  Rating upgrade potential is unlikely before the company
refinances its April 2012 debt maturities.


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


TACHING BILLS: Fitch Affirms Individual Rating at 'C/D'
-------------------------------------------------------
Fitch Ratings has assigned Taiwan's Taching Bills Finance
Corporation a 'BBB-' Long-term foreign currency Issuer Default
Rating, an 'F3' Short-term foreign currency IDR and an 'NF'
Support Rating Floor.  The Outlook is Stable.  Simultaneously, the
agency has affirmed TCBF's National Long-term rating at 'A(twn)',
National Short-term rating at 'F1(twn)', Individual rating at
'C/D' and Support rating at '5'.  The Outlook is Stable.

TCBF's IDRs and National Ratings are driven by its reasonable
credit profile (as manifested through a 'C/D' Individual rating).
TCBF's ratings reflect its satisfactory capital, and its track
record of good profits and asset quality.  Offsetting factors are
its small franchise, its limited business scope, funding
weaknesses and susceptibility to interest rate changes, relative
to banks.

TCBF continued to report reasonably good profitability with an
(unaudited) annualized ROE of 10.6% in 9M10 (2008-2009: average of
9.5%).  Fitch expects TCBF to maintain its satisfactory capital,
liquidity, and asset quality given its cautious growth strategy.
Its capital adequacy ratio remained good at 14.1% at end-Q310
(end-2008: 15.2%).  The impaired guarantees, at 0.4% of the
guarantee portfolio, were predominantly legacy issues and fully
covered by reserves at end-Q310.

TCBF is one of the smaller bills finance firms in Taiwan, trading
mostly on fixed-income securities and providing corporate
commercial paper guarantee services.  The Ta Ching Group remains
TCBF's largest shareholder with a 55% stake and majority control
of the board.


WATERLAND FINANCIAL: Fitch Affirms All Outstanding Ratings
----------------------------------------------------------
Fitch Ratings has affirmed all the ratings for Waterland Financial
Holdings and its subsidiaries, International Bills Finance
Corporation and Waterland Securities Corporation.  The agency
simultaneously removed the Rating Watch Negative status on the
ratings placed on 23 April 2010.  The rating actions follow the
regulatory authority's repeal of WFH's application to acquire
MetLife Taiwan, the Taiwan operations of U.S. life insurer MetLife
Inc., as well as Fitch's review of Waterland Group's credit
profile.  A detailed list of the rating actions follows at the end
of this commentary.

The rating actions reflect reduced uncertainties surrounding the
group's capital deployment and risk profile with the suspension of
the acquisition plan.  The group's IDRs are driven by the
financial strength of its principal operating subsidiary, IBF (87%
of the group's consolidated assets and 80% of equity).  IBF's
Individual rating and IDRs take into account its leading position
in the Taiwanese money markets and satisfactory capital strength.
Nevertheless, they are constrained by its limited business scope,
heavy reliance on wholesale funding and susceptibility to interest
rate volatility relative to banks.

WFH's IDRs and Individual rating reflect the group's consolidated
credit profile and, on a stand-alone basis, its low leverage and
adequate liquidity.  Like other non-operating holding companies in
Taiwan, Fitch expects little prospect of the government supporting
WFH as indicated by its Support Rating of '5'.  Meanwhile, WSC's
IDRs are primarily driven by the obligatory support of its parent
company, WFH.  Its Individual rating reflects its relatively small
brokerage franchise, limited business diversity, risk to earnings
volatility, while also considering its adequate capital position
and liquidity.

Waterland Group reported a moderate profit in H110 (annualized
return on average assets: 0.7%), underpinned by IBF's favorable
money market spreads and improved fees from underwriting
commercial papers and offering guarantees.  The agency expects the
group's earnings to be under pressure in H210 and 2011, given
rising short-term interest rates and funding costs, as well as
heightened stock market volatility.  That said, large losses are
unlikely due to IBF's much reduced fixed-income investment
portfolio and the reasonably good credit quality of its guarantees
and investment portfolio.

WFH and its subsidiaries are strongly capitalized.  WFH's sum-of-
parts capital ratio was 162.28% at end-H110, indicating excess
capital of about TWD7bn above the minimum regulatory floor at
100%.  IBF's capital adequacy ratio (all core capital, no hybrid)
compares favorably with local peers and was 14.16% at end-June
2010.  WSC had a CAR of 321% at end-June 2010, much higher than
the regulatory minimum requirement of 150%.

WFH, IBF and WSC have an adequate liquidity profile.  Cash
dividend inflows from subsidiaries comfortably cover the holding
company's standalone operating expenses and interest payments.
Moreover, funding weakness arising from IBF's reliance on bills
and bond repurchase agreements is mitigated by its notable
deleveraging in recent years, holding of high-quality fixed-income
investments as well as new contingent funding source from state-
owned Bank of Taiwan (National Long-term rating 'AAA(twn)').  WSC
also has a very liquid balance sheet.

Waterland Group's rating changes are most likely to be triggered
by future acquisitions as the agency anticipates WFH to remain
acquisitive with a stated intention to diversify.  Barring the
potential impact of an acquisition, the agency does not anticipate
any material changes in the group's credit profile in the near-
term.  While the rating agency envisage IBF's Individual rating to
remain stable in the short and medium term, a sustained
improvement in IBF's earnings quality, aided by an expanded
business scope could, in time, benefit Waterland Group's IDRs.  On
the other hand, a severe weakening in core capital and/or a sharp
rise in leverage arising from an increased appetite for risks by
IBF could cause downward pressure on the group's IDRs.

Established in March 2002, WFH is the only financial group with a
principal operating subsidiary in bills finance.  IBF is a wholly-
owned subsidiary of WFH and is the second largest bills finance
company by assets (22% of the sector, including guarantees, at
end-June 2010) in Taiwan.  WSC had a 2.4% market share of equity
brokerage in Taiwan in H110.

Waterland Financial Holdings:

  -- Long-term foreign currency IDR affirmed at 'BBB-', removed
     from RWN, assigned Stable Outlook;

  -- Short-term foreign currency IDR affirmed at 'F3', removed
     from RWN;

  -- National Long-term rating affirmed at 'A(twn)', removed from
     RWN, assigned Stable Outlook;

  -- National Short-term rating affirmed at 'F1(twn)', removed
     from RWN;

  -- Individual Rating affirmed at 'C';

  -- Support Rating affirmed at '5';

  -- Support Rating Floor affirmed at 'NF'.

International Bills Finance Corporation:

  -- Long-term foreign currency IDR affirmed at 'BBB', removed
     from RWN, assigned Stable Outlook;

  -- Short-term foreign currency IDR affirmed at 'F3', removed
     from RWN;

  -- National Long-term rating affirmed at 'A+(twn)', removed from
     RWN, assigned Stable Outlook;

  -- National Short-term rating affirmed at 'F1(twn)', removed
     from RWN;

  -- Individual Rating affirmed at 'C';

  -- Support Rating affirmed at '4'; and

  -- Support Rating Floor affirmed at 'B+'.

Waterland Securities Corporation:

  -- Long-term foreign currency IDR affirmed at 'BBB-', removed
     from RWN, assigned Stable Outlook;

  -- Short-term foreign currency IDR affirmed at 'F3', removed
     from RWN;

  -- National Long-term rating affirmed at 'A(twn)', removed from
     RWN, assigned Stable Outlook;

  -- National Short-term rating affirmed at 'F1(twn)', removed
     from RWN;

  -- Individual Rating affirmed at 'D'; and

  -- Support Rating affirmed at '2'.



                             *********

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 T.
Fernandez, Joy A. Agravante, Frauline S. Abangan, and Peter A.
Chapman, Editors.

Copyright 2010.  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 ***