/raid1/www/Hosts/bankrupt/TCRAP_Public/101206.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, December 6, 2010, Vol. 13, No. 240
Headlines
A U S T R A L I A
ALLIED BRANDS: Mrs. Fields Acquires Cookie Man Franchise Chain
SOUVLAKI HUT: Administrator Expects to Finalize Sale Deal Soon
STORM FINANCIAL: Founder Appeals Against FPA's Guilty Finding
C H I N A
BENDA PHARMACEUTICAL: Reports US$283,600 Net Income in Q3 2010
CHINA BROADBAND: Posts US$7.4 Million Net Loss in Q3 2010
CHINA YOUTH: Posts US$545,700 Net Loss in September 30 Quarter
CYBRDI INC: Posts US$150,700 Net Loss in September 30 Quarter
H O N G K O N G
B J COLLECTION: Court Enters Wind-Up Order
CARDTEL EUROPE: Court to Hear Wind-Up Petition on December 29
CHINA HK: Court Enters Wind-Up Order
CREATION & DECORATION: Court to Hear Wind-Up Petition on Dec. 22
DCDC (HK): Court to Hear Wind-Up Petition on January 19
ELCON INDUSTRIAL: Court Enters Wind-Up Order
FRANCE DECOR: Court to Hear Wind-Up Petition on December 22
GUANGDONG LI: Court Enters Wind-Up Order
HILL DRAGON: Court to Hear Wind-Up Petition on December 22
HINGFAT INDUSTRIES: Court to Hear Wind-Up Petition on January 12
HONEST KING: Court Enters Wind-Up Order
HOSEDER INTERNATIONAL: Court Enters Wind-Up Order
IMPERIAL WORLD: Members and Creditors' Meetings Set for Dec. 20
INTERNATIONAL CHINESE: Final Meetings Set for December 24
JET HK: Court to Hear Wind-Up Petition on January 5
KANDARA LIMITED: Members' Final Meeting Set for December 31
LANECOURT LIMITED: Members' Final Meeting Set for December 29
LEE SUN: Creditors Get HK$22.63 Per Share Recovery on Claims
LOYAL BEST: Court Enters Wind-Up Order
PLATINUM FINANCE: Members' Final Meeting Set for December 28
POLYGRACE INT'L: Members and Creditors' Meetings Set for Dec. 24
SHANGHAI YUYUAN: Members' Final General Meeting Set for Dec. 29
SUZUTAN FASHION: Members' Final Meeting Set for December 28
I N D I A
CASTWEL INDUSTRIES: CRISIL Assigns 'B+' Rating to INR5.5MM Loan
ENN TEE: Fitch Assigns 'B+' National Long-Term Rating
FILTERATION ENGINEERS: CRISIL Assigns 'B' Rating to INR20MM Debt
GAYATRI DAIRY: CRISIL Upgrades Rating on INR53MM Loan to 'BB+'
GENESIS MOTORS: CRISIL Places 'B+' Rating on INR80 Mil. Term Loan
HARIOM INGOTS: CRISIL Reaffirms 'B+' Rating on INR100MM Term Loan
HIND POLYFABS: CRISIL Assigns 'BB-' Rating to INR22MM Cash Credit
KOCHAR OVERSEAS: CRISIL Reaffirms 'B+' Rating on INR35MM Term Loan
KOHINOOR STEEL: CRISIL Upgrades Rating on INR750MM Debt to 'BB'
KRISHNA STONE: CRISIL Assigns 'B-' Rating to INR16.8MM Term Loan
M.E.J. ALLOYS: CRISIL Assigns 'D' Rating to INR14.4 Mil. LT Loan
MALLIKARJUN AGRO: CRISIL Assigns 'B+' Rating to INR185.3MM LT Loan
MIRACLE CABLES: CRISIL Assigns 'BB' Rating to INR16.7MM LT Loan
QMAX TEST: CRISIL Places 'BB+' Rating on INR10 Million Cash Credit
RANBA CASTINGS: CRISIL Assigns 'B' Rating to INR19.3 Mil. LT Loan
SALONA COTSPIN: CRISIL Upgrades Ratings on Various Debts to 'BB-'
SHAILY ENGINEERING: CRISIL Places 'BB-' Rating on INR85.6MM Loan
SRI BAJRANG: CRISIL Rates INR60 Million Cash Credit at 'B'
SRI PRIYANKA: CRISIL Assigns 'D' Rating to INR38.6MM Term Loan
SRI RAMADAS: CRISIL Assigns 'BB-' Rating to INR250MM Term Loan
TRIMEX INDUSTRIES: CRISIL Cuts Rating on INR54 Mil. Loan to 'B+'
I N D O N E S I A
BANK DANAMON: S&P Gives Stable Outlook; Affirms 'BB-/B' Rating
BERLIAN LAJU: S&P Keeps 'B-' Long-Term Corporate Credit Rating
PERUSAHAAN GAS: Moody's Reviews 'Ba2' Corporate Family Rating
PERUSAHAAN LISTRIK: Moody's Reviews 'Ba2' Corporate Family Rating
* Moody's Reviews 'Ba2' Ratings on Indonesian Government's Bonds
* Moody's Reviews 'Ba3' Rating on 10 Indonesian Banks
J A P A N
CSTR-1 TRUST: Moody's Confirms Ratings on Various Classes
J-CORE FL1: Moody's Downgrades Ratings on Two Certificates
MIZUHO FINANCIAL: Fitch Affirms 'C/D' Individual Rating
OMEGA CAPITAL: S&P Downgrades Rating on Class A1 Notes to 'D'
TOSHIBA CORPORATION: Moody's Gives Stable Outlook on 'Ba1' Rating
K O R E A
HANA BANK: Fitch Puts Ratings on Securities on Negative Watch
M A L A Y S I A
HOCK SIN: Unit to Sell Six Pieces of Land for MYR9 Million
IBRACO BERHAD: Posts MYR2.42MM Net Loss in Qtr. Ended September 30
OILCORP BERHAD: Posts MYR14.92MM Net Loss for Qtr. Ended Sept. 30
STAMFORD COLLEGE: Posts MYR528,000 Net Loss in September 30 Qtr.
S I N G A P O R E
INTELLIGENT COMMUNICATION: Posts US$1.7-Mil. Net Loss in Q3 2010
T A I W A N
PACIFIC SECURITIES: Fitch Gives Stable Outlook; Affirms Ratings
V I E T N A M
VIETNAM NATIONAL: Moody's Reviews 'Ba3' Corporate Family Rating
- - - - -
=================
A U S T R A L I A
=================
ALLIED BRANDS: Mrs. Fields Acquires Cookie Man Franchise Chain
--------------------------------------------------------------
SmartCompany reports that franchise chain Cookie Man has been
rescued from liquidation, with former rival Mrs. Fields acquiring
the brand.
SmartCompany says Cookie Corporation, which owns the Australian
master franchise for Mrs. Fields, will buy the business and tip it
into a new subsidiary called Cookie Man Australia. SmartCompany
relates that the Cookie Man chain has 43 stores, which are
supplied cookies from a manufacturing plant and warehouse in
Sydney.
Cookie Corporation will continue to separately operate the Mrs.
Fields chain, which has 27 stores, the report notes.
According to SmartCompany, Cookie Corp. managing director Andrew
Benefield said Mrs. Fields will continue to import its trademark
cookies from the United States, although Mrs. Fields will have
some access to the Cookie Man manufacturing facility and
warehouse, allowing it to develop new products for the Australian
market.
As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 28, 2010, Allied Brands Ltd. was placed in voluntary
administration on October 27, 2010. Peter Dinoris and Peter
Biazos of Vincents Chartered Accountants have been appointed
as joint administrators. Allied Brands, which saw its Cookie
Man chain placed in liquidation in September and then in October
lost the Australian franchise rights to the Baskin-Robbins brand,
has only a few remaining brands: Villa & Hut, which founder Franz
Madlener is trying to buy back; Kenny's Cardiology, which is also
close to being sold; and Awesome Water, which is still operating.
Allied Brands's major lender, Westpac, also last month appointed
receivers and managers from McGrath Nicol to two Allied Brands
subsidiaries -- Allied Brands Service and Allied Brands Finance.
About Allied Brands
Allied Brands Limited (ASX:ABQ) -- http://www.alliedbrands.com.au/
-- is engaged in food and retail franchising in Australia. The
Company operates in two segments: food and non food. The food
segment includes the sale of ice-cream, cookie-related products
and dry goods to franchisees, receipt of royalties and
construction of new stores and sale of coffee, general provision
of meals, and rental income earned on baking ovens. The non food
segment includes the receipt of royalties and rental income in
respect of furniture, fixtures homewares and equipment from
franchisees and other parties, and the sale of franchised areas
for the sale and servicing of water coolers, televisions and water
filters.
SOUVLAKI HUT: Administrator Expects to Finalize Sale Deal Soon
--------------------------------------------------------------
Souvlaki Hut administrator Laurie Fitzgerald of BDO said that he
is confident of finding a buyer for the firm and finalizing an
agreement within the next few weeks, SmartCompany reports.
"We have found a buyer, and hopefully over the course of the next
two or three weeks we will be able to finalize an agreement and
get contracts signed and so on," Mr. Fitzgerald told SmartCompany
in an interview.
As reported in the Troubled Company Reporter-Asia Pacific on
December 3, 2010, Souvlaki was placed into voluntary
administration. SmartCompany said that individual franchisees
appear to be still trading and sources suggest at least one party
is interested in buying the company, which has more than 50
locations on the eastern seaboard.
According to SmartCompany, Franchised Food Company Chief Executive
Stan Gordon said that the company is a good fit alongside its
existing holdings and that it can deliver value for Souvlaki Hut
franchisees. Sources, SmartCompany notes, have also indicated the
Tasmania master franchisor has expressed a desire to buy the
company, but it is understood that no final decision or
negotiations have been entered into. Mr. Fitzgerald, the report
notes, said that the company has been looking for a buyer over the
past six months, but was unable to complete a sale before
financial pressures started growing.
Founded in 2005, Souvlaki Hut is a fast food franchise.
STORM FINANCIAL: Founder Appeals Against FPA's Guilty Finding
-------------------------------------------------------------
Anthony Marx at The Courier-Mail reports that Storm Financial
founder Emmanuel Cassimatis has lodged an appeal with the
Financial Planning Association, which cancelled his membership
after finding him guilty of four conduct breaches and fining him
AU$20,000 in October.
Another unidentified former Storm adviser has also appealed
against adverse findings as the FPA prepares to examine evidence
in relation to another six financial planners who worked for the
firm, The Courier-Mail says.
According to The Courier-Mail, an FPA spokeswoman said complaints
against three other members tied to Storm have been dismissed due
to insufficient evidence.
The Courier-Mail states that an FPA review panel determined that
Mr. Cassimatis made "misleading representations" to a retiree
couple, issued recommendations without a suitable strategy, sent
out a general letter urging clients to switch to cash and engaged
in "unprofessional conduct".
The Courier-Mail reports that Mr. Cassimatis also faces
allegations by the Australian Securities and Investments
Commission that he and his wife, Julie, improperly promoted "one
size fits all" advice to clients. They could be fined, banned
from managing corporations and prevented from providing financial
advice, The Courier-Mail notes.
The Courier-Mail says ASIC's move against the Cassimatises came as
it announced plans to sue the Commonwealth Bank, Macquarie Bank
and Bank of Queensland over alleged corporate violations. The
regulator, according to The Courier-Mail, hopes to recover
compensation for 3,000 Storm victims who lost AU$3 billion worth
of investments in the market crash of 2008.
About Storm Financial
Storm Financial Limited -- http://www.stormfinancial.com.au/--
operates in the Australian wealth management industry. The
company manages over one trillion dollars in investment fund
assets for over nine million investors, distributed through
investment administration providers and financial adviser. The
funds are invested through different investment products and
structures, including superannuation, nonsuperannuation managed
funds and life insurance products. Non-superannuation managed
funds, which form the majority of Storm's products, total
approximately 26.5% of total investment fund assets in Australia,
as of June 30, 2007.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 14, 2009, Storm Financial Ltd. appointed Worrells Solvency &
Forensic Accountants as voluntary administrators after the
Commonwealth Bank of Australia demanded debt repayment of around
AU$20 million.
Storm later closed its business and fired all of its 115 staff.
The closure, the company's administrators said, was due to the
significant reduction in Storm's income resulting in trading
losses being incurred "at a rate which the company could no longer
absorb."
The TCR-AP reported on Jan. 22, 2009, that the CBA, Storm's
largest creditor, lodged a AU$27.09 million debt claim at a first
meeting of the company's creditors on Jan. 20, 2010. The group's
remaining creditors are owed AU$51 million, plus a provision for
dividends of AU$10 million.
In March 2009, the Australian Securities and Investments
Commission won its bid to liquidate Storm Financial after the
Federal Court ruled that the Company be wound up. Federal court
Justice John Logan appointed Ivor Worrell and Raj Khatri of
Worrells Solvency and Forensic Accountants as liquidators for the
Company.
=========
C H I N A
=========
BENDA PHARMACEUTICAL: Reports US$283,600 Net Income in Q3 2010
--------------------------------------------------------------
Benda Pharmaceutical, Inc., filed its quarterly report on Form
10-Q., reporting net income of $283,592 on $6.70 million of
revenue for the three months ended September 30, 2010, compared
with a net loss of $148,732 on $5.90 million of revenue for the
same period last year.
The Company's balance sheet at September 30, 2010, showed
$68.56 million in total assets, $52.08 million in total
liabilities, and stockholders' equity of $16.48 million.
The Company has an accumulated deficit of $18.35 million and a
working capital deficit of $26.10 million as of September 30,
2010.
As reported in the Troubled Company Reporter on May 25, 2010,
MaloneBailey, LLP, in Houston, expressed substantial doubt about
Benda Pharmaceutical, Inc.'s ability to continue as a going
concern, following the Company's results for 2009. The
independent auditors noted that the Company has incurred losses
for the year ended December 31, 2009, and had a working capital
deficiency at December 31, 2009.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?704f
About Benda Pharmaceutical
Based in Wuhan, Hubei Province, in the People's Republic of China,
Benda Pharmaceutical, Inc. (OTC: BPMA) is engaged principally in
the business of identifying, discovering, developing, and
manufacturing conventional medicines, active pharmaceuticals, bulk
chemicals (or pharmaceutical immediates), and Traditional Chinese
Medicines for the treatment of some of the most widespread common
ailments and diseases.
CHINA BROADBAND: Posts US$7.4 Million Net Loss in Q3 2010
---------------------------------------------------------
China Broadband, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $7.44 million on $2.05 million of revenue
for the three months ended September 30, 2010, compared with a net
loss of $1.25 million on $2.11 million of revenue for the three
months ended September 30, 2009.
The Company has an accumulated deficit of $28.98 million as of
September 30, 2010.
The Company's balance sheet at September 30, 2010, showed
$33.84 million in total assets, $9.65 million in total
liabilities, $4.21 million in convertible redeemable preferred
stock, and stockholders' equity of $18.97 million.
UHY LLP, in Albany, New York, expressed substantial doubt about
China Broadband, Inc.'s ability to continue as a going concern,
following the Company's 2009 results. The independent auditors
noted that the Company has incurred significant losses during 2009
and 2008, has a working capital deficit at December 31, 2009, and
has relied on debt and equity financings to fund their operations.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?7051
Headquartered in New York, China Broadband, Inc. (OTC BB: CBBD)
-- http://www.chinabroadband.tv/-- is a Nevada corporation. The
Company owns and operates in the media segment through its Chinese
subsidiaries and variable interest entities, (1) an integrated
value-added service solutions business for the delivery of pay-
per-view, video-on-demand, and enhanced premium content for cable
providers, Sino Top Scope Technology Co., Ltd., (2) a cable
broadband business, Beijing China Broadband Network Technology Co.
Ltd,, and 3) a print based media and television programming guide
publication, Shandong Lushi Media Co., Ltd.
CHINA YOUTH: Posts US$545,700 Net Loss in September 30 Quarter
--------------------------------------------------------------
China Youth Media, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $545,762 on $10 of revenue for the three
months ended September 30, 2010, compared with a net loss of of
$1.32 million on $5,000 of revenue for the same period last year.
As of September 30, 2010, the Company has an accumulated deficit
of $22.32 million and a working capital deficit of $1.31 million.
During the nine months ended September 30, 2010,
The Company's balance sheet at September 30, 2010, showed
$4.38 million in total assets, $4.00 million in total liabilities,
and stockholders' equity of $379,959.
Tarvaran Askelson & Company, LLP, in Laguna Niguel, Calif.,
expressed substantial doubt about China Youth Media, Inc.'s
ability to continue as a going concern, following the Company's
2009 results. The independent auditors noted that the Company has
incurred significant losses.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?7050
About China Youth
Headquartered in Marina Del Rey, Calif., China Youth Media, Inc.
(OTC BB: CHYU) -- http://www.chinayouthmedia.com/-- is a China
focused youth marketing and media company whose business is to
provide advertisers and corporations with direct and centralized
access to China's massive but difficult to reach student
population. The cornerstone of the Company's China youth
marketing strategy is Koobee, a large scale, advertising supported
Intranet Television Network (ITVN) media portal that is initially
targeting China's campus-based college students, estimated to
total more than 30 million young people.
CYBRDI INC: Posts US$150,700 Net Loss in September 30 Quarter
-------------------------------------------------------------
Cybrdi, Inc., filed its quarterly report on Form 10-Q, reporting a
net loss of $150,662 on $268,475 of revenue for the three months
ended September 30, 2010, compared with a net loss of $129,531 on
$115,463 of revenue for the same period of 2009.
The Company's balance sheet at September 30, 2010, showed
$10.02 million in total assets, $5.03 million in total
liabilities, and stockholders' equity of $4.99 million.
The Company had an accumulated deficit of $1.74 million as of
September 30, 2010, including net loss of $648,828 for the nine
months ended September 30, 2010. In addition, current liabilities
exceeded current assets by $2.10 million at September 30, 2010.
KCCW Accountancy Corp., in Diamond Bar, Calif., expressed
substantial doubt about Cybrdi, Inc.'s ability to continue as a
going concern, following the Company's 2009 results. The
independent auditors noted that the Company has incurred recurring
losses, accumulated deficit, and working capital deficit at
December 31, 2009, and 2008.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?7044
Based in Xi'an Shaanxi, the People's Republic of China, Cybrdi,
Inc. (OTC: CYDI) -- http://www.cybrdi.com/-- was incorporated on
August 1, 1966, under the laws of the State of California. The
Company, through its subsidiary, Shaanxi Chao Ying Biotechnology
Co., Ltd., engages in the research, development, and manufacture
of biotechnology products in the People's Republic of China. It
exports its products to the United States, Canada, Germany, Italy,
Belgium, Japan, and Taiwan.
================
H O N G K O N G
================
B J COLLECTION: Court Enters Wind-Up Order
------------------------------------------
The High Court of Hong Kong entered an order on October 8, 2010,
to wind up the operations of B J Collection (MFR) Limited.
The company's liquidator is Pui Chiu Wing.
CARDTEL EUROPE: Court to Hear Wind-Up Petition on December 29
-------------------------------------------------------------
A petition to wind up the operations of Cardtel Europe Limited
will be heard before the High Court of Hong Kong on December 29,
2010, at 9:30 a.m.
Verizon UK Limited filed the petition against the company.
The Petitioner's Solicitors are:
DLA Piper Hong Kong
17th Floor, Edinburgh Tower
The Landmark
15 Queen's Road
Central, Hong Kong
CHINA HK: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on October 7, 2010,
to wind up the operations of China Hong Kong Textile Company
Limited.
The company's liquidator is Pui Chiu Wing.
CREATION & DECORATION: Court to Hear Wind-Up Petition on Dec. 22
----------------------------------------------------------------
A petition to wind up the operations of Creation & Decoration
Manufacturing Limited will be heard before the High Court of Hong
Kong on December 22, 2010, at 9:30 a.m.
Bank of china (Hong Kong) Limited filed the petition against the
company.
The Petitioner's Solicitors are:
Tsang, Chang & Wong
16th Floor, Wing On House
No. 71 Des Voeux Road
Central, Hong Kong
DCDC (HK): Court to Hear Wind-Up Petition on January 19
-------------------------------------------------------
A petition to wind up the operations of DCDC (HK) Limited will be
heard before the High Court of Hong Kong on January 19, 2011, at
9:30 a.m.
Tang Chiu Kit filed the petition against the company.
ELCON INDUSTRIAL: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Hong Kong entered an order on November 17, 2010,
to wind up the operations of Elcon Industrial Co Limited.
The official receiver is E T O'Connell.
FRANCE DECOR: Court to Hear Wind-Up Petition on December 22
-----------------------------------------------------------
A petition to wind up the operations of France Decor Limited will
be heard before the High Court of Hong Kong on December 22, 2010,
at 9:30 a.m.
Cheng Kin Chuen filed the petition against the company.
GUANGDONG LI: Court Enters Wind-Up Order
----------------------------------------
The High Court of Hong Kong entered an order on October 7, 2010,
to wind up the operations of Guangdong Li Feng Food Limited.
The company's liquidator is Pui Chiu Wing.
HILL DRAGON: Court to Hear Wind-Up Petition on December 22
----------------------------------------------------------
A petition to wind up the operations of Hill Dragon Limited will
be heard before the High Court of Hong Kong on December 22, 2010,
at 9:30 a.m.
Cheung Lok Lam filed the petition against the company.
HINGFAT INDUSTRIES: Court to Hear Wind-Up Petition on January 12
----------------------------------------------------------------
A petition to wind up the operations of Hingfat Industries (Far
East) Co Limited will be heard before the High Court of Hong Kong
on January 12, 2011, at 9:30 a.m.
Standard Chartered Bank (Hong Kong) filed the petition against the
company.
The Petitioner's Solicitors are:
Tsang, Chan & Wong
16th Floor, Wing On House
No. 71 Des Voeux Road
Central, Hong Kong
HONEST KING: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on October 8, 2010,
to wind up the operations of Honest King enterprises Limited.
The company's liquidator is Pui Chiu Wing.
HOSEDER INTERNATIONAL: Court Enters Wind-Up Order
-------------------------------------------------
The High Court of Hong Kong entered an order on September 30,
2010, to wind up the operations of Hoseder International Limited.
The company's liquidator is Pui Chiu Wing.
IMPERIAL WORLD: Members and Creditors' Meetings Set for Dec. 20
---------------------------------------------------------------
Members and creditors of Imperial World Company Limited will hold
their meetings on December 20, 2010, at 10:15 a.m., and 10:30
a.m., respectively at Room 203, Duke of Windsor Social Service
Building, 15 Hennessy Road, Wan Chai, in Hong Kong.
At the meeting, Kam Chi Kan Elson, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
INTERNATIONAL CHINESE: Final Meetings Set for December 24
---------------------------------------------------------
Members and Creditors of International Chinese Dental Aid Limited
will hold their final meeting on December 24, 2010, at 11:00 a.m.,
and 11:30 a.m., respectively at Suites 1303-06, 13/F., Asian
House, 1 Hennessy Road, Wanchai, in Hong Kong.
At the meeting, Pui Chiu Wing, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
JET HK: Court to Hear Wind-Up Petition on January 5
----------------------------------------------------
A petition to wind up the operations of Jet Hong Kong Trading
Limited will be heard before the High Court of Hong Kong on
January 5, 2011, at 9:30 a.m.
Pun Sik Keung Tom filed the petition against the company.
The Petitioner's Solicitors are:
Eli K. K. Tsui & Co
Rooms 1202A & B, 12th Floor
Ginza square
Nos. 565-567 Nathan Road
Kowloon, Hong Kong
KANDARA LIMITED: Members' Final Meeting Set for December 31
-----------------------------------------------------------
Members of Kandara Limited will hold their final meeting on
December 31, 2010, at 10:00 a.m., at Luen On Building, 2nd Floor
6-7 Wo On Lane, Centra, in Hong Kong.
At the meeting, Lam Wai Ping Gordon and Lam Tsz Ying Geoffrey, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.
LANECOURT LIMITED: Members' Final Meeting Set for December 29
-------------------------------------------------------------
Members of Lanecourt Limited will hold their final general meeting
on December 29, 2010, at 10:00 a.m., at Level 28, Three Pacific
Place, 1 Queens's Road East, in Hong Kong.
At the meeting, Seng Sze Ka Mee Natalia and Cheng Pik Yuk, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.
LEE SUN: Creditors Get HK$22.63 Per Share Recovery on Claims
------------------------------------------------------------
Lee Sun Lan Tobacco Company Limited, which is in compulsory
liquidation, will pay the final dividend to its contributories on
December 10, 2010.
The company will pay HK$22.63 per share for ordinary claims.
The company's liquidator is:
Desmond Chung Seng Chiong
FTI Consulting (Hong Kong) Limited
14/F The Hong Kong Club Building
3A Chater Road
Hong Kong
LOYAL BEST: Court Enters Wind-Up Order
--------------------------------------
The High Court of Hong Kong entered an order on October 7, 2010,
to wind up the operations of Loyal Best Enterprises Limited.
The company's liquidator is Pui Chiu Wing.
PLATINUM FINANCE: Members' Final Meeting Set for December 28
------------------------------------------------------------
Members of Platinum Finance Company Limited will hold their final
general meeting on December 28, 2010, at 11:30 a.m., at 8th Floor,
Henley Building, 5 Queen's Road Central, in Hong Kong.
At the meeting, Nicholas William Burton, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
POLYGRACE INT'L: Members and Creditors' Meetings Set for Dec. 24
----------------------------------------------------------------
Members and creditors of Polygrace International Limited will hold
their annual meetings on December 24, 2010, at 11:00 a.m., and
11:30 a.m., respectively at Suites 1303-06, 13/F., Asian House, 1
hennessy Road, Wanchai, in Hong Kong.
At the meeting, Pui Chiu Wing, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
SHANGHAI YUYUAN: Members' Final General Meeting Set for Dec. 29
---------------------------------------------------------------
Members of Shanghai Yuyuan Mart Co (HK) Limited will hold their
final general meeting on December 29, 2010, at 5:30 p.m., at Level
28, Three Pacific Place, 1 Queen's Road East, in Hong Kong.
At the meeting, Pan Donghui, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
SUZUTAN FASHION: Members' Final Meeting Set for December 28
-----------------------------------------------------------
Members of Suzutan Fashion Company Limited will hold their final
meeting on December 28, 2010, at 10:00 a.m., at 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.
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I N D I A
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CASTWEL INDUSTRIES: CRISIL Assigns 'B+' Rating to INR5.5MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to Castwel
Industries' bank facilities.
Facilities Ratings
---------- -------
INR42.5 Million Cash Credit B+/Stable (Assigned)
INR11.0 Million Standby Line B+/Stable (Assigned)
of Credit
INR5.5 Million Rupee Term Loan B+/Stable (Assigned)
INR8.5 Million Proposed LT Bank B+/Stable (Assigned)
Loan Facility
INR10.0 Million Bank Guarantee P4 (Assigned)
INR12.5 Million Letter of Credit P4 (Assigned)
The ratings reflect Castwel's average financial risk profile,
marked by high gearing, weak debt protection metrics, and small
net worth, and exposure to risks related to the firm's small scale
and working capital intensive nature of operations. These rating
weaknesses are partially offset by Castwel's established market
position and its promoter's experience in the refractory products
business, and wide customer base.
Outlook: Stable
CRISIL believes that the Castwel will maintain its business risk
profile over the medium term, backed by an established customer
base and its promoter's extensive industry experience. The
outlook may be revised to 'Positive' if the firm's financial risk
profile improves, most likely through a significant increase in
operating margin and large equity infusions leading to
substantially lower gearing level. Conversely, the outlook may be
revised to 'Negative' if Castwel undertakes a large, debt-funded
capital expenditure programme, or if its cash accruals decline due
to further pressure on its operating margins.
About Castwel Industries
Set up in 1982, Castwel is a Nagpur (Maharashtra)-based
partnership firm. Mr. M Shiv Kumar and his mother Ms. M Bala Kumar
are its present partners. The day-to-day operations of the firm
are primarily managed by Mr. Shiv Kumar. The firm manufactures
various refractory products such as high alumina cement,
castables, and pre-cast pre-fired shapes used in the cement,
steel, energy, hydrocarbon, and other industries. The firm also
undertakes product installation and commissioning.
Castwel reported an estimated profit after tax (PAT) of INR2.39
million on estimated net sales of INR201.45 million for 2009-10
(refers to financial year, April 1 to March 31), against a PAT of
INR2.42 million on net sales of INR179.83 million for 2008-09.
ENN TEE: Fitch Assigns 'B+' National Long-Term Rating
-----------------------------------------------------
Fitch Ratings has assigned India's Enn Tee International Private
Limited a National Long-term rating of 'B+(ind)'. The Outlook is
Stable. At the same time, the agency has assigned ratings to Enn
Tee's bank loans:
-- Long-term bank loans of INR75m: 'B+(ind)'; and
-- Fund-based working capital limits of INR33.6m:
'B+(ind)'/'F4(ind)'.
Enn Tee's ratings are supported by the long-standing experience of
its promoters in the domestic textile industry. The ratings are
also supported by the company's comfortable market share in the
niche crimp polypropylene market. The company also benefits from
the locational advantage as its manufacturing unit is at Sidkul,
Haridwar, leading to proximity to its client base, which is
concentrated in and around Delhi (nearly 50% polypropylene market
is based in this region).
The ratings, however, reflect Enn Tee's small scale of operations
coupled with a track record of revenue de-growth. The company
began manufacturing polyester texturised yarn in 1999.
Experiencing declining sales to INR41m in FY07 (FY04: INR192m),
the plant was shut down in 2007, due to exhaustion of the sales
tax exemption and high power costs which made the business
unviable. There were no operations in FY08 and FY09. The new
plant at Haridwar (manufacturing polypropylene partially oriented
yarn (PP-POY) and crimp yarn) became operational in October 2009.
The ratings factor in the margin volatility from raw material
price movements (mainly polypropylene chips - derivatives of crude
oil). However, these are partially offset by Enn Tee's
comfortable market position, offering some protection against the
margins. The ratings are constrained by the commoditized and
somewhat seasonal nature of the end-product.
Enn Tee has completed a capex of INR26m for FY10-FY11 - to
increase the production capacity of the existing unit by
installing an additional POY machine and texturising machines at
its Haridwar plant. The additional capacity commenced operations
by October 2010. Enn Tee has high financial leverage and gearing
as well as outstanding corporate guarantees (INR370m) issued for
banking facilities of its associate company, Him Chem Limited (Enn
Tee's networth as at end-September 2010 was INR35.38m).
Positive rating triggers include EnnTee's ability to improve
capacity utilization and operating margins while deleveraging.
Negative rating triggers include any further debt-led capex and/or
a fall in operating profitability that would adversely impact its
credit metrics.
Enn Tee manufactures PP-POY and dope-dyed crimp yarn, which is
used mainly in the manufacturing of socks. In FY10 (with
operations of six months ended March 2010), EnnTee had sales of
INR58.9m, operating EBITDA of INR2.97m and net income of INR0.4m.
During H1FY11, the company reported (unaudited) net sales of
INR129m, operating EBITDA margin of 8.5% and net income of
INR4.7m.
The above rating action resulted from an appeal committee. The
outcome of the original committee, held on 22 September 2010, was
to assign a 'B(ind)/F4(ind)' ratings to the bank loans of the
issuer. The original committee decision was the subject of an
external appeal raised by the issuer. Under the appeal, the
issuer provided new information to Fitch, namely data on the
market positioning and its half-yearly results (unaudited) ended
September 2010. In accordance with its external appeal process,
Fitch deemed the new information as material, and therefore
convened an appeal committee to review the impact upon the
original rating committee outcome, in which the ratings got
revised/upgraded by a notch to 'B+(ind)/F4(ind)'.
FILTERATION ENGINEERS: CRISIL Assigns 'B' Rating to INR20MM Debt
----------------------------------------------------------------
CRISIL has assigned its ratings of 'B/Stable/P4' to Filteration
Engineers India Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR20.0 Million Cash Credit B/Stable (Assigned)
INR5.0 Million Letter of Credit P4 (Assigned)
INR40.0 Million Bank Guarantee P4 (Assigned)
The ratings reflect Filteration's low net worth, average scale of
operations, and weak financial risk profile. These rating
weaknesses are partially offset by Filteration's established
relationships with its customers.
Outlook: Stable
CRISIL believes that Filteration will maintain a moderate business
risk profile, on the back of established relationships with key
customers, and a weak financial risk profile, because of low
profitability, over the medium term. The outlook may be revised
to 'Positive' if Filteration increases its scale of operations
substantially and also improves its profitability, and if the
company receives substantial equity, thereby improving its capital
structure. The outlook may be revised to 'Negative' if any large
debt-funded capital expenditure programmes, or the invocation by
performance guarantees by customers, leads to deterioration in
Filteration's financial risk profile.
About Filteration Engineers
Set up in 1994 by Mr. Sunil Agarwal, Filteration manufactures and
trades in filters and strainers for various industrial
applications. The company has a strong clientele that includes
Essar Constructions Limited, Alstom Projects India Ltd, Tata Steel
Ltd, Reliance Industries Ltd, Indian Oil Corporation Ltd, and
Steel Authority of India Ltd. Filteration derives around 80 per
cent of its revenue from the sale of filters and strainers, and
the remainder from trading in cyclone separators and other
products procured from Timex Filtration and Water Systems
(Turkey).
Filteration Engineers India Private Limited (Filteration) reported
a profit after tax (PAT) of INR5.7 million on net sales of
INR106.4 million for 2009-10 (refers to financial year, April 1 to
March 31), as against a PAT of INR2.9 million on net sales of
INR110.0 million for 2008-09.
GAYATRI DAIRY: CRISIL Upgrades Rating on INR53MM Loan to 'BB+'
--------------------------------------------------------------
CRISIL has upgraded the rating on the long-term bank facilities of
Gayatri Dairy Products Pvt Ltd to 'BB+/Stable' from 'BB/Stable'.
Facilities Ratings
---------- -------
INR35.0 Million Cash Credit Limit BB+/Stable (Upgraded from
BB/Stable)
INR53.0 Million Rupee Term Loan BB+/Stable (Upgraded from
BB/Stable)
INR37.0 Million Proposed Long Term BB+/Stable (Upgraded from
Bank Loan Facility BB/Stable)
The upgrade reflects improvement in the business risk profile of
the Gayatri group, marked by the sustainable improvement in its
operating margin. Since the company commenced commercial
operations at its SMP and butter plants in 2009-10 (refers to
financial year, April 1 to March 31), implementation risks
associated with the capital expenditure undertaken cease to exist.
The ratings reflect the Gayatri group's exposure to risks related
to its ability to increase milk procurement, average financial
risk profile, marked by high gearing, and its susceptibility to
adverse government regulations and risk of epidemics. These
weaknesses are partially offset by the group's promoters'
experience in the dairy industry, healthy revenue visibility and
the sustainable improvement in its operating margin.
Analytical Approach
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Gayatri and its group company, Prisha
Foods and Dairy Products Ltd. This is because the two companies,
together referred to as the Gayatri group, are engaged in the same
line of business, and have strong business linkages; Gayatri
supplies liquid skimmed milk to Prisha. Also, the management has
clearly indicated that both the companies will support each other
in case of financial exigencies.
Outlook: Stable
CRISIL believes that Gayatri will continue to benefit from its
established presence in the dairy business, its track record of
efficient operations, and increase in proportion of value-added
products in total revenues, driven by higher utilization of the
new capacity. The outlook might be revised to 'Positive' if the
group stabilizes the new capacity, leading to a sustainable
improvement in profitability, and reports more-than-expected
improvement in its gearing. Conversely, the outlook may be
revised to 'Negative' in case of any delay in increasing sales
from the new capacity, a decline in profitability, or more-than-
expected increase in working capital requirements, leading to
higher debt, adversely affecting the group's financial risk
profile.
About Gayatri Dairy
Incorporated in 1985 and promoted by Mr. Kanaiyalal R Patel,
Gayatri is a dairy products company based in Ahmedabad with milk
processing capacity of around 200,000 litres per day. Its plant
uses buffalo milk, primarily for producing pasteurised milk, and
also value-added products such as skimmed milk powder (SMP), ghee,
butter, and buttermilk. Most of the retail sales of the company
are in and around Ahmedabad.
Prisha was floated by the promoters in 2008-09 and is primarily an
SMP-manufacturing unit with capacity of 10 tonnes per day. The
plant became operational in November 2009. Typically, Prisha will
undertake job-work for companies such as Mother Dairy India
Limited and Heritage Foods (India) Ltd.
Gayatri is estimated to report a profit after tax (PAT) of INR8.9
million on net sales of INR534.5 million for 2009-10, against a
PAT of INR5.6 million on net sales of INR401.4 million for
2008-09.
GENESIS MOTORS: CRISIL Places 'B+' Rating on INR80 Mil. Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the bank facilities
of Genesis Motors Pvt Ltd.
Facilities Ratings
---------- -------
INR100.0 Million Cash Credit B+/Stable (Assigned)
INR80.0 Million Term Loan B+/Stable (Assigned)
INR120.0 Million Proposed LT B+/Stable (Assigned)
Bank Loan Facility
The rating reflects GMPL's exposure to intense competition in the
automotive dealership market and lack of track record as a dealer
of passenger vehicles. The rating weaknesses are offset by the
benefits GMPL is expected to reap from the robust expected growth
in the passenger car market in India.
Outlook: Stable
CRISIL believes that GMPL's sales will be adequate and cash
accruals from its dealership business will be sufficient over the
medium term. The outlook may be revised to 'Positive' if GMPL
generates more-than-expected sales and revenue growth and
increases profitability. Conversely, the outlook may be revised
to 'Negative' if the company's financial risk profile
deteriorates, most likely because of lesser-than-expected sales,
or if it undertakes a large, debt-funded capital expenditure
programme, thereby weakening its debt protection metrics.
About Genesis Motors
GMPL was established by Mr. S S Munshi (a first-generation
entrepreneur) as General Can Pvt Ltd in 1985; its name was changed
to the current one in July 2010. The company is yet to commence
commercial operations. GMPL will be dealing in Nissan India Ltd's
passenger vehicles. GMPL has set up a showroom and workshop in
Vashi (Mumbai). Operations at the showroom are scheduled to begin
in December 2010. Moreover, GMPL's group company, Shamvik
Glasstech Pvt Ltd is a dealer in Tata Motors Ltd's vehicles;
Shamik's dealership business is expected to be transferred to GMPL
in March 2011. GMPL and Shamvik are owned and managed by Mr.
Vickram Munshi (son of Mr. S S Munshi).
HARIOM INGOTS: CRISIL Reaffirms 'B+' Rating on INR100MM Term Loan
-----------------------------------------------------------------
CRISIL has re-affirmed its ratings of 'B+/Stable/P4' to the bank
facilities of Hariom Ingots & Power Pvt Ltd.
Facilities Ratings
---------- -------
INR170 Million Cash Credit Limits B+/Stable (Reaffirmed)
INR100 Million Term Loan B+/Stable (Reaffirmed)
INR30 Million Letter of Credit P4 (Reaffirmed)
The ratings reflect HIPL's weak financial risk profile marked by
low net worth and high gearing, and exposure to risks relating to
cyclicality in the steel industry. These weaknesses are, however,
partially offset by HIPL's average business risk profile, backed
by increasing operating efficiencies.
Outlook: Stable
CRISIL believes that HIPL will maintain an average business risk
profile over the medium term, backed by improving operating
efficiencies. The outlook may be revised to 'Positive' if the
company reports higher growth in revenues resulting in significant
improvement in its financial profile. Conversely, the outlook may
be revised to 'Negative' if the company under-utilizes its
capacity, or undertakes large, debt-funded capital expenditure
thereby deteriorating its financial profile.
Update
HIPL's revenues have dropped by -4 per cent to around INR1 billion
in 2009-10 (refers to financial year, April 1 to March 31) from
around INR1.04 billion in 2008-09. The decline was primarily
driven by lower realizations. The company's operating margins
have increased from 4.7% in 2008-09 to 6.7% in 2009-10 on the back
of higher capacity utilization (~60% capacity utilization in 2009-
10 vis-…-vis 35% in 2008-09), resulting into better economies of
scale, and a savings in raw material costs. As on March 31, 2010,
the company had a gearing of 2.6 times as compared with 3.9 times
the previous year. The improvement can be attributed to the
improved collections from customers reducing its dependence on
short term borrowing. CRISIL expects the company's gearing to
remain at similar levels on the back of maturing term debt
obligations of -Rs.30 million, offset by expected increase in
working capital requirements which move in tandem with the level
of activities in the company. The company's liquidity has
remained under stress; the bank sanctioned an adhoc limit of
INR2.5 cr in June 2010 for a two month period, which was re-
sanctioned in August 2010. Also, the company had net cash
accruals (NCA) of INR3 cr in 2009-10, the company's NCA is
expected to be barely sufficient to meet its term debt obligations
of INR3.02 cr in 2010-11.
About Hariom Ingots
HIPL is part of the Agarwal group of companies. The company was
promoted by Mr. Satyanarayan Agarwal in 2004, and is currently
managed by his son, Mr. Sandeep Agarwal. The company began
commercial operations with capacity to produce 28,800 tonnes of
ingots per annum in 2005. In 2007-08 (refers to financial year,
April 1 to March 31), the company integrated its operations
forwards into the manufacture of thermo-mechanically treated (TMT)
bars, for which it has a capacity of 60,000 tonnes per annum.
HIPL reported a profit after tax (PAT) of INR5.6 million on net
sales of INR 1 billion for 2009-10, as against a loss of INR2.18
million on net sales of INR1.04 billion for 2008-09.
HIND POLYFABS: CRISIL Assigns 'BB-' Rating to INR22MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable' rating to the bank facilities
of Hind Polyfabs Pvt Ltd.
Facilities Ratings
---------- -------
INR22.0 Million Cash Credit BB-/Stable (Assigned)
INR52.0 Million Rupee Term Loan BB-/Stable (Assigned)
The rating reflects the HPPL group's weak financial risk profile,
marked by high gearing, weak debt protection measures, and small
net worth, and its large working capital requirements. These
strengths are partially offset by the experience of the group's
promoters in the polymer trading industry.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of HPPL, Maruti Packagers Pvt Ltd, Rateria
Laminators Pvt Ltd, and Jupax Vanichay Pvt Ltd (Jupax, CRISIL
rated 'BB-/Stable'). This is because all these companies,
together referred to as the HPPL group, are under a common
management, operate in similar lines of business, and have
operational and financial linkages.
Outlook: Stable
CRISIL believes that the HPPL group will continue to benefit over
the medium term from its promoters' experience in the polymer-
trading industry. The outlook may be revised to 'Positive' if the
HPPL group increases its scale of operations and improves its
operating margin significantly. Conversely, the outlook may be
revised to 'Negative' if the group's revenues decline sharply, or
if it undertakes a larger-than-expected debt-funded capital
expenditure programme, further weakening its financial risk
profile.
About Hind Polyfabs
The HPPL group began its operations in the 1990s with one of its
companies, Rateria, being appointed as consignee stockist of GAIL
(India) Ltd for eastern India. The group now has four major
companies. On an average, the group handles sales of around 2000
tonnes of plastic granules per month.
HPPL was incorporated in 1982 and acquired by the current
promoters in 2006. The promoters were initially in the business
of trading in jute-based hessian cloth. In 1996, they began
trading in plastic granules and gradually increased the share of
plastic products and exited the jute business. HPPL manufactures
high-density poly ethylene and poly propylene sacks and fabrics,
besides trading in plastic granules. The company currently has
manufacturing capacities of about 900 tonnes per annum.
The HPPL group reported a profit after tax (PAT) of INR2.56
million on net sales of INR729.25 million for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of INR1.96
million on net sales of INR540.71 million for 2008-09.
KOCHAR OVERSEAS: CRISIL Reaffirms 'B+' Rating on INR35MM Term Loan
------------------------------------------------------------------
CRISIL's ratings on the bank facilities of Kochar Overseas Pvt Ltd
continue to reflect KOPL's weak financial risk profile marked by
high gearing and weak debt protection metrics, working-capital-
intensive and small scale of operations, and susceptibility to
adverse regulatory changes in the rice industry. These rating
weaknesses are partially offset by the benefits that KOPL is
likely to reap from the healthy prospects for the basmati rice
industry, and the longstanding track record of the company's
promoters.
Facilities Ratings
---------- -------
INR35.0 Million Term Loan B+/Stable (Reaffirmed)
INR150.0 Million Cash Credit/ B+/Stable (Reaffirmed)
Book Debt
INR250.0 Million Packing Credit P4 (Reaffirmed)
INR250.0 Million FOBP/FOUBP P4 (Reaffirmed)
Outlook: Stable
CRISIL believes that KOPL will maintain its business risk profile
over the medium term, supported by its established relationships
with suppliers and clients. The company's financial risk profile,
however, is expected to remain under pressure because of its high
gearing and weak debt protection metrics. The outlook may be
revised to 'Positive' if KOPL improves its capital structure and
generates high growth in turnover, while maintaining stable
profitability. Conversely, the outlook may be revised to
'Negative' if the company undertakes a large, debt-funded capital
expenditure (capex) programme, thereby weakening its capital
structure, or if its profitability declines.
Update
KOPL's revenues increased to INR1505 million in 2009-10 (refers to
financial year, April 1 to March 31) from INR876 million in 2008-
09, largely driven by robust demand from the export market.
However, the company's operating margin was around 3.5 per cent,
in line with the previous year's level. KOPL is expected to
benefit from increased offtake in 2010-11, driven by strong demand
from importing counties in the Middle East. Its financial risk
profile is weak, marked by high gearing and weak debt protection
metrics; gearing was 6.01 times as on March 31, 2010, and interest
coverage ratio and net cash accruals to total debt ratio for 2009-
10 were 1.61 times and 0.03 times respectively. KOPL's financial
risk profile is expected to remain constrained over the medium
because of its large working capital requirements. KOPL reported a
profit after tax (PAT) of INR5.90 million on net sales of
INR1505.11 million for 2009-10, against a PAT of INR7.60 million
on net sales of INR875.70 million for 2008-09.
About Kochar Overseas
Established in 2006 by Mr. Ajit Singh Kochar and Mr. Rajinder
Singh Kochar, KOPL is engaged in milling and processing of basmati
and non-basmati rice. It also produces parboiled rice. The
company sells its products both in the overseas and domestic
markets. In 2009-10, exports contributed nearly 60 per cent of
its total sales. The company's exports are to the Middle-East,
Canada, and Europe. In the domestic market, the company sells
through distributors. KOPL's plant, located at Amritsar (Punjab)
has a milling capacity of 8 tonnes per hour; it also has three
sorting plants. The company procures paddy through its 14
purchase offices in Haryana and Punjab.
KOHINOOR STEEL: CRISIL Upgrades Rating on INR750MM Debt to 'BB'
---------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of Kohinoor
Steel Pvt Ltd to 'BB/Stable' from 'BB-/Stable'.
Facilities Ratings
---------- -------
INR750.0 Million Cash Credit BB/Stable (Upgraded from
BB-/Stable)
INR1000 Million Term Loan BB/Stable (Upgraded from
BB-/Stable)
The rating upgrade reflects the improvement in KSPL's business
risk profile, driven by improvement in the company's operating
margin to over 25 per cent in 2009-10 (refers to financial year,
April 1 to March 31) from less than 12 per cent in the past. This
has led to improvement in KSPL's debt protection measures and,
subsequently, financial risk profile. The upgrade also reflects
CRISIL's belief that KSPL will maintain its average financial risk
profile, in the absence of large debt-funded capital expenditure
(capex), and business risk profile, backed by continued topline
growth and sustained margins, over the near term.
The rating reflects KSPL's average financial risk profile, marked
by moderate gearing and debt protection measures, and marginal
market share in the steel industry. These rating weaknesses are
partially offset by the benefits that KSPL derives from its
improving operating efficiencies.
Outlook: Stable
CRISIL believes that KSPL will maintain its average financial risk
profile, in the absence of a large debt-funded capex, and business
risk profile, on the back of continued topline growth and
sustained margins, over the near term. The outlook may be revised
to 'Positive' if KSPL's improves its liquidity over the medium
term, backed by efficient working capital management while
sustaining topline growth and improves financial risk profile.
Conversely, the outlook may be revised 'Negative' in case of large
debt-funded capex, or deterioration in liquidity and lower-than-
expected margins.
About Kohinoor Steel
Incorporated in 2005, KSPL manufactures sponge iron, billets, and
thermo mechanically treated (TMT) bars. It also has a 17-megawatt
(MW) captive power plant, and a coal washery with capacity of 150
tonnes per hour (tph). The company's plant in Saraikela
(Jharkhand) has capacity to produce 132,000 tonnes per annum (tpa)
of sponge iron, 132,000 tpa of billets, and 400 tonnes per day
(tpd) of TMT bars.
KSPL has formed a 20:80 joint venture company with Rungta Mines
named Mednirai Coal Mining Pvt Ltd (MCMPL), with 20 per cent being
KSPL's share. MCMPL has taken a 30-year lease of the Mednirai coal
block at Hutar coalfields (Bihar). The 10.5-square kilometre coal
block is estimated to have 80 million tonnes of coal reserve. The
development work on the coal block commenced in 2010-11; the coal
block is expected to be operational within the next two years.
KSPL reported a profit after tax (PAT) of INR98.7 million on net
sales of INR1.79 billion for 2009-10, against a PAT of INR16.7
million on net sales of INR1.69 billion for 2008-09.
KRISHNA STONE: CRISIL Assigns 'B-' Rating to INR16.8MM Term Loan
----------------------------------------------------------------
CRISIL has assigned its 'B-/Stable' ratings to the bank facilities
of Krishna Stone Industries Pvt Ltd.
Facilities Ratings
---------- -------
INR53.2 Million Cash Credit Limit B-/Stable (Assigned)
INR16.8 Million Term Loan B-/Stable (Assigned)
The ratings reflect the KSIPL's weak liquidity leading to
instances of overdrawn bank limits in the recent past, due to
large inventory build up prior to the rainy season, and extended
rainfall leading to lower than expected accruals from business.
The ratings also reflect the company's weak financial risk
profile. These rating weaknesses are partially offset by KSIPL's
moderate business risk profile, marked by promoters' industry
experience, increased capacities, and the benefits the company is
expected to reap from healthy demand prospects from the
construction sector.
Outlook: Stable
CRISIL believes that KSIPL's liquidity will remain constrained,
which in turn will keep its bank limit utilization extremely high,
over the medium term. The company, nevertheless, will benefit
from the healthy business prospects for the construction industry.
The outlook may be revised to 'Positive' if KSIPL improves its
liquidity, either by generating more cash accruals or by infusing
funds. Conversely, the outlook may be revised to 'Negative' if
the company's liquidity deteriorates further, most likely because
of less-than-expected cash accruals or if the company undertakes
larger-than-expected debt-funded capital expenditure programme.
About Krishna St
Incorporated in 1989 by the late Mr. R S Bhatnagar, KSIPL is the
business of processing various sizes of boulders and crushed sand.
The company's directors, Mr. Aseem Bhatnagar and Mr. Arpan
Bhatnagar, joined the company in 2000 and 2002 respectively. The
company has two stone crushing units in Haldwani (Uttarakhand) -
the unit with installed capacity of 60,000 tonnes per annum (tpa)
is in Lalkuan and the other with capacity of 180,000 tpa
(commenced operations in April 2010) is in Sitarganj. KSIPL
markets its products, either directly or through transporters, to
public work department contractors.
KSIPL reported a profit after tax (PAT) of INR8.0 million on net
sales of INR157.2 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR2.3 million on net sales
of INR146.3 million for 2008-09.
M.E.J. ALLOYS: CRISIL Assigns 'D' Rating to INR14.4 Mil. LT Loan
----------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to the bank facilities of
M.E.J. Alloys, which is part of the JBA group. The ratings
reflect the delay by the JBA group in servicing its term loan; the
delay has been because of the group's weak liquidity.
Facilities Ratings
---------- -------
INR14.40 Million Long-Term Loan D (Assigned)
INR25.00 Million Overdraft Facility D (Assigned)
INR15.00 Million Letter of Credit P5 (Assigned)
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of JBA Steels and MEJ Alloys. This is
because both the firms, together referred to as the JBA group, are
in the same line of business, are under a common management, and
have fungible cash flows.
About the Group
The JBA group is promoted by Mr. M E Jamaludden and his family.
JBA Steels, set up in 1998, manufactures mild steel ingots,
billets, and thermo-mechanically-treated (TMT) bars. The firm
sells its TMT bars under the JBA TMT brand. Its plants, located
in Puducherry and Kuppam (Andhra Pradesh), have an installed
capacity of 80 tonnes per day (tpd) of TMT bars and 70 tpd of mild
steel ingots. MEJ Alloys, set up in 2004, manufactures angles,
squares, and pipes, which are primarily used in the engineering
construction industry. MEJ Alloys' plant, located in Puducherry,
has an installed capacity of 40 tpd; the firm procures its key raw
materials -- ingots and billets -- from JBA Steels. MEJ Alloys is
currently expanding its capacity by 20 to 30 tpd at a cost of
INR17.5 million; the capacity addition is likely to be completed
by March 2010.
The JBA group reported a profit after tax (PAT) of INR3.3 million
on net sales of INR531.5 million for 2008-09 (refers to financial
year, April 1 to March 31), against a PAT of INR13.9 million on
net sales of INR647.7 million for 2007-08.
MALLIKARJUN AGRO: CRISIL Assigns 'B+' Rating to INR185.3MM LT Loan
------------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the bank facilities
of Mallikarjun Agro Plants & Industries Pvt Ltd.
Facilities Ratings
---------- -------
INR185.30 Million Long-Term Loan B+/Stable (Assigned)
INR110.00 Million Cash Credit B+/Stable (Assigned)
The rating reflects Mallikarjun's below-average financial risk
profile marked by high gearing and weak debt protection metrics as
the company is yet to commence commercial production. The rating
also factors in its exposure to adverse regulatory changes
regarding pricing of paddy. These rating weaknesses are partially
offset by the benefits that Mallikarjun derives from its
promoters' experience in the agriculture and cold-storage
industries.
Outlook: Stable
CRISIL believes that Mallikarjun will commence commercial
operations in January 2011 without any time or cost overruns.
Mallikarjun will continue to benefit from its promoters'
experience in the agriculture and cold storage industries. The
outlook may be revised to 'Positive' if operations at
Mallikarjun's operations stabilizes, and the company's capacity
utilization is more than expected and it generates sizeable cash
accruals, thereby improving its capital structure. Conversely,
the outlook may be revised to 'Negative' if Mallikarjun delays
stabilizing operations at the upcoming rice mill, leading to lower
capacity utilization, and if there is deterioration in its capital
structure.
About Mallikarjun Agro
Mallikarjun was established in July 2008 by Mr. Gurupada Sinha and
his son Mr. Gautam Sinha. The company is setting up a rice mill
with capacity of 192 tonnes per day (tpd), a solvent extraction
plant to produce rice bran oil with a capacity of 200 tpd, with a
husk fed co-generation power plant with a capacity to generate 800
kilowatts per hour. The facilities will be located in Paschim
Medinipur (West Bengal). The total cost of the project is
INR265.3 million, funded with term debt of INR185.3 million and
balance by unsecured loans and equity capital from the promoters.
The project is scheduled to commence commercial production in
January 2011. The promoters have other business interests, mainly
cold storage and agricultural products.
MIRACLE CABLES: CRISIL Assigns 'BB' Rating to INR16.7MM LT Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Miracle Cables (India) Pvt Ltd.
Facilities Ratings
---------- -------
INR55.0 Million Cash Credit BB/Stable (Assigned)
INR16.7 Million Long-Term Loan BB/Stable (Assigned)
INR24.3 Million Proposed LT BB/Stable (Assigned)
Bank Loan Facility
INR2.5 Million Letter of Credit P4+ (Assigned)
INR0.5 Million Bank Guarantee P4+ (Assigned)
The ratings reflect Miracle Cables's small scale of operations,
high customer concentration risks, large working capital
requirements, and constrained financial risk profile, marked by
moderate gearing and weak liquidity. These weaknesses are
partially offset by Miracle Cables's established customer
relations, resulting in a stable operating margin.
Outlook: Stable
CRISIL believes that Miracle Cables will maintain its position in
the power cables market, supported by established relations with
key customers such as Emersons Network Power (India) Pvt Ltd,
Eaton Power Quality Pvt Ltd, Delta Power Solutions (India) Pvt Ltd
and Kirloskar Electric Company Ltd. The outlook may be revised to
'Positive' in case the company generates more-than-expected net
cash accruals, its scale of operations increases, or it
diversifies its customer base. Conversely, the outlook may be
revised to 'Negative' in case of larger-than-expected debt-funded
capital expenditure, a decline in the profitability margin or if
its liquidity profile deteriorates.
About Miracle Cables
Miracle Cables was incorporated in 2005 by Mr. M Yesudhason and
his wife, Mrs. Latha Yesudhason. Until 2005, the company operated
as a sole proprietary firm. The company manufactures various
types of cables, such as uninyvin, control and instrumentation
cables, and wiring harnesses. The company's manufacturing
facilities are at Bhandup (Mumbai), Mahape (Thane, Maharashtra)
and Ambernath (Thane, Maharashtra).
Miracle Cables reported a profit after tax (PAT) of INR8 million
on net sales of INR216 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR 9 million on net
sales of INR209 million for 2008-09.
QMAX TEST: CRISIL Places 'BB+' Rating on INR10 Million Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Qmax Test Equipments Pvt Ltd.
Facilities Ratings
---------- -------
INR10.00 Million Cash Credit BB+/Stable (Assigned)
INR25.00 Million Packing Credit P4+ (Assigned)
INR30.00 Million Foreign Bill P4+ (Assigned)
Discounting
INR50.00 Million Bank Guarantee P4+ (Assigned)
INR2.00 Million Letter of Credit P4+ (Assigned)
INR3.20 Million Foreign Bank P4+ (Assigned)
Guarantee
The ratings reflect the Qmax group's working-capital-intensive
operations, customer concentration in revenue profile, small scale
of operations, and susceptibility to risks related to
technological obsolescence of its products. These weaknesses are
partially offset by the Qmax group's above-average financial risk
profile, marked by comfortable capital structure and debt
protection metrics, and its established position in the printed
circuit board (PCB) test equipment market.
To arrive at its ratings, CRISIL has combined the business and
financial risk profiles of QTEPL and Qmax Test Technologies Pvt
Ltd (QTTPL), together referred to as the Qmax group. This is
because both these companies are managed by common promoters, are
in the same line of business, and have significant operational
linkages. QTEPL has also provided a corporate guarantee for
QTTPL's bank borrowings.
Outlook: Stable
CRISIL believes that the Qmax group will continue to benefit from
its established track record of operations in the test equipment
business, over the medium term. The outlook may be revised to
'Positive' if the Qmax group's working capital management
improves, or if the group diversifies its customer segment and
increases its scale of operations, resulting in stable and
sustained high margins. Conversely, the outlook may be revised to
'Negative' if there is a decline in the group's cash accruals due
to cancellation of orders or technological obsolescence of its
products, or if it faces any undue delays in the realization of
its receivables, or undertakes any large, debt-funded capital
expenditure programme, thereby significantly deteriorating its
financial risk profile.
About the Group
Incorporated in 1992, QTEPL is in the business of manufacturing
equipment for testing PCBs and semi-conductors. The company
currently has six branches across India, and has its headquarters
at Sholinganallur (Chennai). It has a manufacturing capacity of
300 to 400 units of test equipment per annum.
QTTPL trades in allied test equipment. The company is an
authorised dealer for international electronic devices
manufacturers such as Denon (Japan). Apart from trading in
electronic devices, QTTPL also customises test solutions offered
by QTEPL for its domestic sales, and offers training and
maintenance services to QTEPL's clients.
The group mainly caters to the defence industry, and supplies test
equipment to the Indian Army, Bangladesh Navy, and the US Army.
Both the companies are promoted by Mr. S R Sabapathi, who manages
their day-to-day operations.
The Qmax group reported a profit after tax (PAT) of INR18.7
million on net sales of INR191.2 million for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of INR36.9
million on net sales of INR258.3 million for 2008-09.
RANBA CASTINGS: CRISIL Assigns 'B' Rating to INR19.3 Mil. LT Loan
-----------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' rating to the bank
facilities of Ranba Castings Ltd.
Facilities Ratings
---------- -------
INR19.30 Million Long Term Loan B/Stable (Assigned)
INR45.00 Million Cash Credit B/Stable (Assigned)
INR15.00 Million Letter of Credit P4 (Assigned)
INR1.70 Million Bank Guarantee P4 (Assigned)
The rating reflects RCL's below-average financial risk profile
marked by high gearing, and exposure to risks related to a small
scale of operations in the intensely competitive castings industry
and revenue concentration. These rating weaknesses are partially
offset by the benefits that RCL derives from the experience of its
management and strong customer relationships.
Outlook: Stable
CRISIL believes that RCL will continue to benefit from the
experience of its management and its established relations with
its major customers. The outlook may be revised to 'Positive' if
RCL's financial risk profile improves, with a sustained increase
in its scale of operations and profitability or if the company
improves its capital structure. Conversely, the outlook may be
revised to 'Negative' if RCL's financial risk profile deteriorates
because of lower-than-expected cash accruals, larger-than-expected
debt-funded capital expenditure, or any significant cost or time
overrun in its ongoing capacity expansion project.
About Ranba Castings
Set up in 1995 by Mr. V Rajendran, the family-owned, Coimbatore-
based RCL manufactures rough iron castings; it has a capacity of
18,000 tonnes per annum (tpa). Around 80 per cent of RCL's
revenues are derived from the textile industry, 18 per cent from
the pumps industry, and the remainder from other sectors. The
company is enhancing its installed casting capacity to 24,000 tpa;
the expansion project cost is estimated to be around INR150
million, to be funded with a term loan of INR115.20 million and
unsecured loans from promoters.
RCL reported a profit after tax (PAT) of INR2.28 million on net
sales of INR359.80 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR2.34 million on net
sales of INR389.20 million for 2008-09.
SALONA COTSPIN: CRISIL Upgrades Ratings on Various Debts to 'BB-'
-----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Salona
Cotspin Ltd, part of the Salona group, to 'BB-/Stable/P4+' from
'B+/Stable/P4'.
Facilities Ratings
---------- -------
INR178.3 Million Rupee Term Loan BB-/Stable (Upgraded from
'B+/Stable')
INR106.6 Million Cash Credit BB-/Stable (Upgraded from
'B+/Stable')
INR14.7 Million Overdraft Facility BB-/Stable (Upgraded from
'B+/Stable')
INR10.0 Million Bill Discounting P4+ (Upgraded from 'P4')
INR29.3 Million Letter of Credit P4+ (Upgraded from 'P4')
INR13.2 Million Bank Guarantee P4+ (Upgraded from 'P4')
The rating upgrade has been driven by CRISIL's belief that the
Salona group will maintain its improved profitability and
liquidity over the medium term. Operating margin of the group
improved to 18 per cent in 2009-10 (refers to financial year,
April 1 to March 31) from 15 per cent in the previous year.
Although the group's gearing was high at around 3 times in
2009-10, the debt protection measures were comfortable with
interest coverage ratio and net cash accruals to debt ratio at
around 3 times and 13 per cent respectively. The group generated
a turnover of INR500 million in the first six months of 2010-
11(refers to financial year, April 1 to March 31), driven by
increase in capacity utilization. The upgrade also reflects
CRISIL's belief that despite large capital expenditure (capex) of
INR430 million (funded with debt of INR340 million) during 2009-10
and 2010-11, the Salona group will generate sufficient cash
accruals to meet its maturing debt obligations over the medium
term.
The ratings reflect the Salona group's below-average financial
risk profile marked by high gearing and susceptibility of its
margins to adverse changes in cotton prices and power shortages.
These rating weaknesses are partially offset by the group's
efficient working capital management and from its promoters'
experience in the textile business.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Salona and Preeti Cotspin Pvt Ltd.
This is because the two companies, together referred to as the
Salona group, have a common management and are in the same line of
business.
Outlook: Stable
CRISIL believes that the Salona group will maintain its business
risk profile, supported by steady growth in revenues and accruals,
over the medium term. The outlook may be revised to 'Positive' if
the group's financial risk profile improves considerably, driven
by improvement in capital structure. Conversely, the outlook may
be revised to 'Negative' if the group's realization and margins
decline significantly, or the group undertakes any large debt-
funded capital expenditure programme, leading to deterioration in
its capital structure.
About the Group
Salona, promoted by Mr. Shyamlal Agarwal, is listed on the Bombay
Stock Exchange (BSE). The company has 24,336 spindles and eight
knitting machines. It manufactures grey hosiery yarn in counts
ranging from 20 to 40, and grey knit fabric. It sells its
products in the export-oriented Tirupur (Tamil Nadu) market.
Direct exports contribute 15 to 20 per cent to its total revenues.
Preeti, incorporated in 1995, manufactures cotton yarn of counts
in the range of 40 to 80. The company's mill has 16,800 spindles.
Its main customers include innerwear manufacturers in India.
The Salona group reported a profit after tax (PAT) of INR 32.7
million on net sales of INR746.0 million for 2009-10, against a
PAT of INR5.0 million on net sales of INR661.0 million for
2008-09.
SHAILY ENGINEERING: CRISIL Places 'BB-' Rating on INR85.6MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'BB-/Negative/P4' ratings to Shaily
Engineering Plastics Ltd's bank facilities.
Facilities Ratings
---------- -------
INR247.0 Million Cash Credit BB-/Negative (Assigned)
Facility
INR85.6 Million Proposed Long BB-/Negative (Assigned)
Term Bank Loan Facility
INR326.4 Million Term Loan BB-/Negative (Assigned)
INR75.0 Million Packing Credit P4 (Assigned)
INR120.0 Million Bank Guarantee P4 (Assigned)
INR25.0 Million Letter of Credit P4 (Assigned)
The ratings reflect SEP's large working capital requirements,
moderate financial risk profile marked by high gearing and
moderate debt protection metrics, and susceptibility to volatility
in the value of the Indian rupee. These rating weaknesses are
partially offset by SEP's promoters' experience in the plastic
products industry and its strong customer base.
Outlook: Negative
CRISIL expects Shaily Engineering Plastics Ltd to have a
'Negative' outlook driven by high debt repayments of about
Rs.80 million and INR90 million for 2010-11 and 2011-12,
respectively, as well as stretching of its liquidity owing to
increase in its working capital requirements. The outlook may be
revised to 'Stable' if SEP is able to generate more-than-expected
revenue and record better margins, thereby improving its
liquidity. The outlook may be changed to 'Positive' if SEP further
improves its capital structure by infusion of funds in the form of
equity.
About Shaily Engineering
SEP, set up in 1987, manufactures plastic products, such as
plastic kitchenware, stools, lipstick cases, medicine-tablet
cases, inhalers, switchgear components, and automotive parts. SEP
has currently has four manufacturing facilities in Gujarat, one in
Halol and three in Rania (Gujarat). One of the facilities in Rania
is an export-oriented unit, while the other units cater to both
domestic as well as international markets.
SEP reported a profit after tax (PAT) of INR21 million on net
sales of INR939 million for 2009-10 (refers to financial year,
April 1 to March 31) against a loss after tax of INR24 million on
net sales of INR626 million for 2008-09.
SRI BAJRANG: CRISIL Rates INR60 Million Cash Credit at 'B'
----------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to the cash credit
facility of Sri Bajrang Seeds.
Facilities Ratings
---------- -------
INR60.00 Million Cash Credit B/Stable (Assigned)
The rating reflects SBS's weak financial risk profile, resulting
from working-capital-intensive operations, and small scale of
operations in the highly competitive seed industry. These rating
weaknesses are partially offset by SBS' promoters' extensive
industry experience and the firm's well-established distribution
network.
Outlook: Stable
CRISIL believes that SBS's financial risk profile will remain weak
over the medium term, as the firm's operations are expected to
remain working-capital-intensive and its scale of operations,
small. The outlook may be revised to 'Positive' if the firm
improves its financial risk profile through fresh equity infusion
and increase in scale of operations. Conversely, the outlook may
be revised to 'Negative' if the firm's margins deteriorate because
of volatility in raw material prices.
About Sri Bajrang
SBS was established as a partnership firm in 1997 by the Kumar
family of Uttarakhand. The firm is into production and processing
of certified seeds. It sells its products under the Sri Bajrang
Seeds brand through a network of distributors, and also direct-
markets through Chambal Fertilizers and Chemicals Ltd in
Uttarakhand, Punjab, Haryana, Uttar Pradesh, and Rajasthan.
SBS reported a profit after tax (PAT) of INR59,000 on net sales of
INR65 million for 2009-10 (refers to financial year, April 1 to
March 31), against a PAT of INR35,000 on net sales of INR56
million for 2008-09.
SRI PRIYANKA: CRISIL Assigns 'D' Rating to INR38.6MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its 'D' rating to the bank facilities of Sri
Priyanka Agro Enterprises Pvt Ltd. The ratings reflect delays by
SPAEPL in servicing its debt; the delays have been on account of
the company's weak liquidity.
Facilities Ratings
---------- -------
INR38.60 Million Term Loan D (Assigned)
INR50.00 Million Cash Credit D (Assigned)
SPAEPL also has a below-average financial risk profile, marked by
high gearing, and weak debt protection metrics, and is exposed to
risks related to small scale of operations and intense competition
in the edible oil industry. These weaknesses are partially offset
by the established track record of SPAEPL's promoters in the
industry.
Incorporated in 1990 by Mr. N V S Shiv Prasad and his family,
SPAEPL is engaged in solvent extraction and refining of rice bran
oil. Its manufacturing facilities, in the Nellore district of
Andhra Pradesh, have an installed solvent extraction capacity of
200 tonnes per day (tpd) and refining capacity of 50 tpd.
SPAEPL reported a profit after tax (PAT) of INR1.03 million on net
sales of INR238.34 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR1.52 million on net
sales of INR262.18 million for 2008-09.
SRI RAMADAS: CRISIL Assigns 'BB-' Rating to INR250MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Sri Ramadas Paper Boards Pvt Ltd.
Facilities Ratings
---------- -------
INR80 Million Cash Credit BB-/Stable (Assigned)
INR250 Million Term Loan BB-/Stable (Assigned)
INR10 Million Letter of Credit P4+ (Assigned)
The ratings reflect SRPBPL's below average financial risk profile,
marked by high gearing and below-average debt protection measures,
high client concentration risks though moderated by long standing
relations, and the susceptibility of its operating margin to
fluctuating raw material prices and intense competition in the
paper industry. These weaknesses are partially offset by the
longstanding experience of SRPBPL's promoters in the business.
Outlook: Stable
CRISIL believes that SRPBPL will benefit from its promoters'
industry experience over the medium term. The outlook may be
revised to 'Positive' in case of significant improvement in
SRPBPL's scale of operations, profitability and capital structure.
Conversely, the outlook may be revised to 'Negative' if SRPBPL
undertakes any large, debt-funded capital expenditure, or its
profitability declines significantly, thereby deteriorating its
financial risk profile.
About Sri Ramadas
SRPBPL has been manufacturing writing and printing paper,
newsprint paper and kraft paper since 1994. The company has a
capacity of 165 tonnes per day (tpd), increased from 65 tpd in
2009. Currently, the plant, which is located in Jagurupadu
Village,Kadiyam Mandal, Andhra Pradesh is running at capacity
utilisation levels of 60 to 70 per cent. The company recycles
waste paper to manufacture its products.
SRPBPL reported a profit after tax (PAT) of INR4.2 million on net
sales of INR668.5 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR7.5 million on net sales
of INR463.4 million for 2008-09.
TRIMEX INDUSTRIES: CRISIL Cuts Rating on INR54 Mil. Loan to 'B+'
----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities Trimex
Industries Pvt Ltd to 'B+/Negative/P4' from 'BB/Negative/P4+'.
Facilities Ratings
---------- -------
INR600 Million Cash Credit B+/Negative (Downgraded from
'BB/Negative')
INR54 Million Term Loan B+/Negative (Downgraded from
'BB/Negative')
INR250 Million Letter of Credit P4 (Downgraded from 'P4+')
and Bank Guarantee
INR400 Million Export Packing P4 (Downgraded from 'P4+')
Credit
The downgrade reflects deterioration in TIPL's financial risk
profile, particularly liquidity. The company reported a netloss
of INR141.0 million for 2009-10 (refers to financial year, April 1
to March 31) and INR22.5 million for the first quarter of 2010-11.
The losses have been caused by more than 55 per cent decline in
revenues in 2009-10. Revenues have remained depressed in 2010-11
as a result of delay of more than a year in commencement of TIPL's
mining project (in joint venture [JV] with Narayana Mines Pvt Ltd)
in Hospet (Karnataka) because of delayed environmental clearances.
The downgrade also reflects CRISIL's belief that TIPL's liquidity
will deteriorate further because of its large debt obligations of
around INR45 million in 2010-11 vis-…-vis negative cash accruals;
however, the repayments are expected to bet met in a timely manner
with infusion of funds from the promoters.
The ratings reflect TIPL's weak financial risk profile marked by
high gearing and weak debt protection metrics, and exposure to
risks inherent in the iron-ore trading industry. These rating
weaknesses are offset by TIPL's established market position in the
mining industry, and healthy supplier and customer relationships.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of TIPL and its wholly owned subsidiary,
Pradeep Shipping and Logistics Pvt Ltd, collectively referred to
as TIPL. CRISIL has not combined the business and financial risk
profiles of TIPL's group company Trimex Sands Pvt Ltd (TSPL; rated
BB/Stable/P4+ by CRISIL) as CRISIL does not expect any support
from TIPL to TSPL because of TIPL's weak financial profile.
Outlook: Negative
CRISIL expects TIPL's liquidity to remain under pressure following
the ban on export of iron ore from Karnataka and delays by TIPL in
commencing commercial operations in iron ore mining, resulting in
negative cash accruals. The ratings may be downgraded if the ban
on export of iron ore continues for long and TIPL is unable to
commence iron mining operations over the next few months.
Conversely, the outlook may be revised to 'Stable' if the company
starts generating adequate cash accruals thus improving the
liquidty.
About Trimex Industries
TIPL, formerly Trimex Industries Ltd, was established in 1984 as
Trimex Agencies Ltd; the name was changed to the current one in
January 2009. TIPL is engaged in mining and selling of industrial
minerals. Founded by Mr. Rajendra Prasad Koneru, the company's
operations are managed by his son Mr. Pradeep Koneru. The company
has long-term agreements with mine owners and suppliers for
sourcing various minerals.
TIPL reported a net loss of INR141.00 million on net sales of
INR1.34 billion for 2009-10, against a net loss of INR56.00
million on net sales of INR3.15 billion for 2008-09.
=================
I N D O N E S I A
=================
BANK DANAMON: S&P Gives Stable Outlook; Affirms 'BB-/B' Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it has revised its
outlook on PT Bank Danamon Indonesia Tbk. to stable from positive,
and affirmed the 'BB-/B' counterparty credit ratings on the bank.
At the same time, S&P affirmed the 'D+' Bank Fundamental Strength
Rating on the bank.
"S&P revised the outlook on Bank Danamon to stable from positive
to reflect S&P's view that the potential upside to the bank's
credit profile had reduced because the bank's funding profile did
not improve as S&P had earlier expected," said Standard & Poor's
credit analyst Terry Sham.
Bank Danamon's funding profile is fair, in S&P's view. The bank's
loan-to-deposit ratio, on a consolidated basis, was higher than
S&P's forecast of about 90% for 2010. Loan growth of 21% outpaced
deposit growth of 2% in the first nine months of 2010, causing the
bank's loan-to-deposit ratio to rise to over 110% as at Sept. 30,
2010, from less than 100% at the end of 2009. That said, S&P
expects the bank's loan book to remain wholly funded by its
customer deposits and other long-term funds, including equity and
long-term debt securities.
The ratings on Bank Danamon reflect the latent risk associated
with operating in the high-risk and developing economic
environment in Indonesia. The bank's funding and liquidity
profile also constrains the ratings. Nevertheless, the ratings
continue to be supported by the bank's sound capitalization and
satisfactory profitability. They also acknowledge Bank Danamon's
position as the sixth-largest bank in Indonesia, with a strong
franchise in the microfinance and consumer segments.
The stable outlook reflects S&P's expectation that Bank Danamon
will remain largely focused on its niche market and maintain its
financial profile. S&P expects the bank's capitalization to
remain a positive rating factor, even though its capital ratios
are likely to moderate as its loan book continues to expand. In
addition, despite the increasing competition, S&P expects the bank
to maintain strong net interest margin, and, hence, satisfactory
profitability.
BERLIAN LAJU: S&P Keeps 'B-' Long-Term Corporate Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services kept its 'B-' long-term
corporate credit rating on Indonesia-based shipping company PT
Berlian Laju Tanker Tbk. on CreditWatch, where it was placed with
negative implications on Aug. 26, 2010.
The 'CCC' issue rating on the US$400 million senior unsecured
notes due 2014 and on the US$125 million five-year convertible
bonds due 2012, both issued by wholly owned subsidiary BLT Finance
B.V., and guaranteed by BLT, also remains on CreditWatch with
negative implications.
"S&P had placed BLT on CreditWatch based on its view that BLT's
financial performance may not improve enough to avoid breaching
its EBITDA-related debt covenants, given the prospects of softer
margins during the second half of this year and BLT's very tight
headroom for covenant compliance," said Standard & Poor's credit
analyst Manuel Guerena.
"Although the company remained close to breaching its debt
covenants as of Sept. 30, 2010, BLT has told us that it is still
in compliance. Despite the considerable likelihood of a breach by
Dec. 31, 2010, BLT is working on alternatives that may help
alleviate this pressure and provide additional headroom," he
added.
In S&P's view, BLT's liquidity is weak. Cash and short-term
investments amounted to about US$161 million as at Sept. 30, 2010,
compared with debt due in one year of US$231 million. The company
is trying to manage the shortfall with new loans and debt
refinancing. Aside from the company's debt covenant pressure, S&P
believes BLT's volatile funds from operations and high capital
expenditures will keep its liquidity weak, Mr. Guerena said.
Resolution of the CreditWatch will depend on how BLT deals with
covenant pressure. A failure to address the potential covenant
breach could trigger a further downgrade. However, if the company
increases the headroom in its covenant compliance and it has no
near-term refinancing difficulties, Standard & Poor's will remove
the ratings from CreditWatch and revise the outlook to negative or
stable, depending on BLT's credit profile and S&P's outlook for
the shipping industry.
PERUSAHAAN GAS: Moody's Reviews 'Ba2' Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service has placed PT Perusahaan Gas Negara's
Ba2 corporate family rating on review for possible upgrade.
The rating action follows Moody's decision to place the Indonesian
government's Ba2 rating on review for possible upgrade.
"Driven by its solid operating profile, strong market position,
favorable trends in gas demand, and the relatively stable nature
of the transmission and distribution business, PGN's credit rating
is strongly positioned at the Ba2 level." says Jennifer Wong, a
Moody's AVP/Analyst.
"The rating also considers PGN's very high dependence and strong
support from the Indonesian Government, given the Ministry of
State Owned Enterprises' 57% ownership, and its strategic
importance as the country's main distributor of natural gas. As
such, the potential upgrade in Indonesian Government's rating will
impact PGN's rating as well," says Wong.
The last rating action on PGN was on June 21, 2010, when Moody's
changed the outlook of PGN's corporate family rating from stable
to positive.
Established in 1965, Perusahaan Gas Negara is primarily engaged in
the transmission and distribution of natural gas. Its
transmission business mainly operates under its 60%-owned
subsidiary, PT Transportasi Gas Indonesia, while its distribution
business has a strong market share of over 87%.
PERUSAHAAN LISTRIK: Moody's Reviews 'Ba2' Corporate Family Rating
-----------------------------------------------------------------
Moody's Investors Service has placed Perusahaan Listrik Negara's
Ba2 corporate family rating and senior unsecured bond rating on
review for possible upgrade.
This rating action follows Moody's decision to place the
Indonesian Government's Ba2 rating on review for possible upgrade.
"Given PLN's 100% ownership by the Ministry of State-Owned
Enterprises, its strategic importance as Indonesia's only
vertically integrated electricity utility, as well as the ongoing
government support through subsidies to ensure its financial
viability and operational soundness, Moody's considers PLN's
rating to be closely integrated with, and strongly linked to, the
government's credit quality," says Moody's lead analyst for the
company, Jennifer Wong.
"Accordingly, a change in Indonesian government's rating could
lead to a change in PLN's rating," says Wong.
Moody's last rating action with regard to PLN occurred on June 21,
2010, when the outlook on the company's Ba2 corporate family and
senior unsecured ratings was changed to positive from stable.
PT Perusahaan Listrik Negara is an Indonesian state-owned
vertically integrated electricity utility with a generation
capacity of over 22,000MW. It is a monopoly operator of
transmission and distribution networks and is the country's
largest electricity producer. The government -- represented by
the Ministry of State-Owned Enterprises -- has complete ownership.
* Moody's Reviews 'Ba2' Ratings on Indonesian Government's Bonds
----------------------------------------------------------------
Moody's Investors Service has placed on review for upgrade the
Indonesian government's Ba2 foreign and local-currency bond
ratings.
The main reasons for the decision are:
(1) Indonesia's economic resilience is accompanied by sustained
macroeconomic balance;
(2) the government's debt position and the central bank's foreign
currency reserve adequacy are improving; and
(3) the economic policy framework remains increasingly well
positioned to deal with evolving macroeconomic challenges and
potential shocks.
The rating review also applies to Indonesia's Ba1 country ceiling
for foreign currency bonds and Ba3 ceiling for FC bank deposits.
The country ceiling for short-term FC debt is "Not Prime" and
remains unaffected by this action.
These ceilings act as a cap on ratings that can be assigned to the
foreign currency obligations of other entities domiciled in the
country.
Rationale For The Review For Possible Upgrade:
Moody's had placed Indonesia's Ba2 sovereign ratings on positive
outlook in June 2010, after a one-notch upgrade in September 2009,
on account of the country's resilience to the global financial
crisis, improving government credit-metrics, and its ability to
manage domestic political challenges to the reform agenda without
damaging key policy institutions' credibility or effectiveness.
"We have now placed the sovereign credit ratings and country
ceilings on 'Review for Possible Upgrade' as the economic recovery
is being sustained alongside well managed external accounts and
reasonably good inflation fundamentals," said Mr. Aninda Mitra, a
Vice-President at Moody's and its lead sovereign analyst for
Indonesia.
"Moreover, the recent improvement in Bank Indonesia's foreign
currency reserve position coupled with continuing reduction in the
government's debt burden are reducing risk perceptions and
encouraging greater inflows of foreign direct investment and long-
term capital," he added.
"Additionally, amidst growing inflows of foreign portfolio
investment, monetary stability alongside ongoing policy
flexibility are enabling Indonesian authorities' to gradually
deepen money markets and heighten financial absorption
capabilities," says Mr. Mitra.
Risks To The Rating And Economic Outlook
Moody's considers key risks to the rating outlook to be embedded
in the country's political system.
Opposition from coalition partners have slowed the government's
drive to institute economic reforms, however, this has not yet
impacted overall policy management capabilities or near-term
economic prospects.
Indonesia's banking sector prudential ratios are well positioned.
However, if bank supervision is constrained by political
interference or poor governance, the risk of a shock to the real
economy or to the government's contingent liabilities could rise.
Credit Triggers For A Possible Upgrade:
These would include assessments during the review of whether:
(1) market deepening prospects and the ongoing development of the
domestic institutional investor base will continue to lend
more stability to the government's onshore debt "finance-
ability";
(2) ongoing monetary management will continue to anchor medium-
term inflation expectations as well as investor confidence
amidst lingering global financial market uncertainty --derived
from, but not limited to, quantitative easing in the U.S. and
Japan, banking and sovereign debt problems in the Eurozone;
and
(3) the durability of the greatly strengthened balance of payments
and external payments position.
Moody's last rating action on Indonesia was on June 21, 2010 at
which time the outlook on the Ba2 sovereign rating was shifted to
positive, from stable.
* Moody's Reviews 'Ba3' Rating on 10 Indonesian Banks
-----------------------------------------------------
Moody's Investors Service has placed the Ba3 foreign currency
long-term deposit ratings of 10 Indonesian banks on review for
possible upgrade.
The 10 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.
The reviews are in line with the reviews for possible upgrade on
December 1, 2010 for Indonesia's Ba2 foreign currency and local
currency government bond ratings; Ba3 foreign currency deposit
ceiling, and Ba1 foreign currency bond ceiling. See press release
of December 1, 2010 for more details on sovereign issues.
Previous Rating Action And Principal Methodologies
The last rating actions on eight banks (excluding Bank Mandiri and
Bank Negara Indonesia) were taken on June 21, 2010 when the
outlooks for their Ba3 foreign currency long-term deposit ratings
were changed to positive from stable. The revisions in the
outlooks were in line with the changes in outlooks to positive
from stable on June 21, 2010 for Indonesia's Ba2 foreign currency
and local currency government bond ratings; Ba3 foreign currency
deposit ceiling, and Ba1 foreign currency bond ceiling.
The last rating action on Bank Mandiri was taken on July 20, 2010
when its BFSR was raised to D from D- which mapped to a BCA of Ba2
from Ba3. The upgrade reflected the marked and sustained
improvements in the bank's financial performance -- particularly
in profitability and asset quality -- as a result of its
transformation since 2005.
The last rating action on Bank Negara Indonesia was taken on
July 21, 2010, when the outlook for its D- BFSR, which maps to a
BCA of Ba3, was changed to positive from stable. The revision
anticipated that the positive trajectory of changes in the bank
over the past two years will continue, thereby strengthening and
raising the bank's risk profile into a higher BFSR band.
All 10 banks are headquartered in Jakarta. Below are details of
their assets at September 2010:
Bank Central Asia IDR310.20 trillion; Bank CIMB-Niaga IDR129.14
trillion; Bank Danamon Indonesia IDR105.22 trillion; Bank
Internasional Indonesia IDR72.20 trillion; Bank Mandiri IDR409.37
trillion; Bank Negara Indonesia IDR224.81 trillion; Bank Permata
IDR66.88 trillion; Bank Rakyat Indonesia IDR325.94 trillion; Bank
Tabungan Negara IDR63.50 trillion; and Pan Indonesia Bank IDR95.73
trillion.
The detailed ratings and actions are:
* Bank Central Asia: The Ba3 foreign currency long-term deposit
rating was placed on review for possible upgrade. All other
ratings were unaffected and have stable outlooks: Baa3 global
local currency deposit; Ba1 foreign issuer; Not Prime foreign
currency short-term deposit; and D+ bank financial strength,
which maps to a Ba1 baseline credit assessment.
* Bank CIMB-Niaga: The Ba3 foreign currency long-term deposit
rating was placed on review for possible upgrade. All other
ratings were unaffected and have stable outlooks: Baa3 GLC
deposit; Ba1/Ba1 foreign currency issuer/subordinated debt; Not
Prime foreign currency short-term deposit; and D BFSR, which
maps to a Ba2 BCA.
* Bank Danamon Indonesia: The Ba3 foreign currency long-term
deposit rating was placed on review for possible upgrade. All
other ratings were unaffected and have stable outlooks: Baa3 GLC
deposit; Not Prime foreign currency short-term deposit; and D
BFSR, which maps to a Ba2 BCA.
* Bank Internasional Indonesia: The Ba3 foreign currency long-term
deposit rating was placed on review for possible upgrade. All
other ratings were unaffected and have stable outlooks: Baa3 GLC
deposit; Ba1/Ba1 foreign currency issuer/subordinated debt; Not
Prime foreign currency short-term deposit; and D BFSR, which
maps to a Ba2 BCA.
* Bank Mandiri: The Ba3 foreign currency long-term deposit rating
was placed on review for possible upgrade. All other ratings
were unaffected and have stable outlooks: Baa3 GLC deposit; Not
Prime foreign currency short-term deposit and D BFSR, which maps
to a Ba2 BCA.
* Bank Negara Indonesia: The Ba3 foreign currency long-term
deposit rating was placed on review for possible upgrade. All
other ratings were unaffected: Baa3 GLC deposit; Not Prime
foreign currency short-term deposit and D- BFSR, which maps to a
Ba3 BCA. All carry stable outlooks except the BFSR which has a
positive outlook.
* Bank Permata: The Ba3 foreign currency long-term deposit rating
was placed on review for possible upgrade. All other ratings
were unaffected and have stable outlooks: Baa3 GLC deposit; Not
Prime foreign currency short-term deposit; and D- BFSR, which
maps to a Ba3 BCA.
* Bank Rakyat Indonesia: The Ba3 foreign currency long-term
deposit rating was placed on review for possible upgrade. All
other ratings were unaffected and have stable outlooks: Baa3 GLC
deposit; Not Prime foreign currency short-term deposit and D+
BFSR, which maps to a Ba1 BCA.
* Bank Tabungan Negara: The Ba3 foreign currency long-term deposit
rating was placed on review for possible upgrade. All other
ratings were unaffected and have stable outlooks: Baa3 GLC
deposit; Not Prime foreign currency short-term deposit and D-
BFSR, which maps to a Ba3 BCA.
* Pan Indonesia Bank: The Ba3 foreign currency long-term deposit
rating was placed on review for possible upgrade. All other
ratings were unaffected and have stable outlooks: Baa3 GLC
deposit; Not Prime foreign currency short-term deposit; and D
BFSR, which maps to a Ba3 BCA.
=========
J A P A N
=========
CSTR-1 TRUST: Moody's Confirms Ratings on Various Classes
---------------------------------------------------------
Moody's Japan K.K has confirmed its ratings on the Class A through
B and Class X trust certificates and downgraded its rating on the
Class C through Class F trust certificate issued by CSTR-1 and
CSTR-2 Trusts.
The complete rating actions is:
CSTR-1 Trust
-- Class A, confirmed at Aaa (sf); previously on September 28,
2010 Aaa (sf) placed under review for possible downgrade
-- Class B, confirmed at Aa2 (sf); previously on September 28,
2010 Aa2 (sf) placed under review for possible downgrade
-- Class C, downgraded to Ba2 (sf) from Baa2 (sf); previously on
September 28, 2010 Baa2 (sf) placed under review for possible
downgrade
-- Class D, downgraded to Caa1 (sf) from B1 (sf); previously on
September 28, 2010 B1 (sf) placed under review for possible
downgrade
-- Class X, confirmed at Aaa (sf); previously on September 28,
2010 Aaa (sf) placed under review for possible downgrade
CSTR-2 Trust
-- Class E, downgraded to Caa2 (sf) from B2 (sf); previously on
September 28, 2010 B2 (sf) placed under review for possible
downgrade
-- Class F, downgraded to Caa3 (sf) from B3 (sf); previously on
September 28, 2010 B3 (sf) placed under review for possible
downgrade
* Deal Name: CSTR-1 Trust and CSTR-2 Trust
-- Class: Class A through D and Class X Trust Certificates
(CSTR-1 Trust)
-- Class E and F Trust Certificates (CSTR-2 Trust)
-- Issue Amount (initial): JPY 12.55 billion (CSTR-1 Trust), JPY
4.0 billion (CSTR-2 Trust)
-- Dividend: Floating
-- Issue Date (initial): July 4, 2006
-- Final Maturity Date: July, 2012
-- Underlying Asset (initial): Four senior/subordinate non-
recourse loans backed by five property trust certificates
-- Originator/Entrustor: Credit Suisse First Boston Principal \
Investments Limited, Tokyo (as of the issue date)
-- Arranger: Credit Suisse Securities (Japan) Limited
CSTR-1 Trust and CSTR-2 Trust, effected in July 2006, represent
the securitization of four non-recourse loans.
The Originator entrusted the loans to the Asset Trustee and
received the Class A through D and X trust certificates (CSTR-1
Trust) and Class E and F trust certificates (CSTR-2 Trust), and
then sold them to investors through the Arranger. The trust
certificates are rated by Moody's.
In this transaction, any principal payments at maturity, or
through amortizations, prepayments resulting from the sale of the
underlying properties, or refinancing of the loans are allocated
pro-rata based on the balance of CSTR-1 and CSTR-2 first.
Sequential payments are then applied to the CSTR-1 Trust and the
pro-rata payments to the CSTR-2. Sequential payments from the
most senior class are applied; recovery collection, in the event
of default; and fast pay, in the event of a breach of the DSCR
trigger. The losses incurred by defaulted loans are allocated in
reverse sequential order from the most subordinate class of the
trust certificates.
Two of the loans have been prepaid, and the two outstanding loans
-- which are senior and subordinated -- are backed by a retail
property in Sendai in northern Honshu. The maturity of the loans
has been extended twice, until the end of December 2010.
Rating Rationale
The current rating action reflects the fact that the two maturity
extensions have shortened the two-year tail period at the CMBS
level initially assumed by Moody's, in which case the special-
servicing period in the event of a loan default will be shorter,
which could (1) hamper special servicing and (2) result in higher
losses.
Moody's did not receive or take into account any third party due
diligence reports on the underlying assets or financial
instruments related to the monitoring of this transaction in the
past six months.
J-CORE FL1: Moody's Downgrades Ratings on Two Certificates
----------------------------------------------------------
Moody's Japan K.K. has downgraded its rating on the Class D and E
Trust Certificates issued by J-CORE FL1 Trust.
The complete rating actions is:
-- Class D, downgraded to Caa1 (sf) from B1 (sf); previously on
November 1, 2010 B1 (sf) placed under review for possible
downgrade
-- Class E, downgraded to Caa3 (sf) from B3 (sf); previously on
November 1, 2010 B3 (sf) placed under review for possible
downgrade
-- Deal Name: J-CORE FL1 Trust
-- Issue Amount (initial): JPY 16.6 billion
-- Dividend: Floating
-- Transfer Date of Trust Certificates: December 27, 2006
-- Final Maturity Date: April 2012
-- Underlying Asset (initial): Three specified bonds and a non-
recourse loan backed by commercial real estate
-- Originator: Deutsche Bank, Tokyo Branch
-- Arranger: Deutsche Securities Inc
-- Asset Trustee: The Sumitomo Trust and Banking Co., Ltd.
J-CORE FL1 Trust, effected in December 2006, represents the
securitization of three TMK bonds and one non-recourse loan.
The Originator entrusted the three specified bonds and the non-
recourse loan to the Asset Trustee, and received the Class A
through E and X Trust Certificates, which it then sold to
investors. The trust certificates are rated by Moody's.
Two of the bonds and the loan have been paid down in full, and the
transaction is currently secured by a bond (backed by a retail
property outside Tokyo) that has been under special servicing
since March 2010.
In this transaction, payments from refinancing and collateral
disposition before the maturity of bonds or loans will be
distributed on a modified pro-rata basis for the trust
certificates. Payments on the recovery of any defaulting bond or
loan or amortization will be made on a sequential basis.
Moody's has reviewed its ratings in light of the implementation of
a new collection strategy (according to the special servicing
report of October 13, 2010), and has re-assessed its recovery
assumptions for the property, taking into account its operating
status, as well as the progress of special servicing.
Rating Rationale
The current rating action reflects the increasing likelihood that,
given the new collection strategy, the Class D and E trust
certificates will suffer losses in the event of the sale of the
property.
Moody's did not receive or take into account a third party due
diligence report on the underlying assets or financial instruments
related to the monitoring of this transaction in the past six
months.
MIZUHO FINANCIAL: Fitch Affirms 'C/D' Individual Rating
-------------------------------------------------------
Fitch Ratings affirmed all ratings of Mizuho Financial Group, Inc.
and its subsidiary banks, Mizuho Bank, Mizuho Corporate Bank and
Mizuho Trust and Banking. A complete list of rating actions is
provided at the end of this release.
The ratings of the three subsidiary banks have been affirmed to
reflect their good capital level (although of modest quality) and
stable, albeit modest profitability, underpinned by its very
strong domestic franchise. The Individual ratings also take into
account its unchanged advantages, compared to its global peers, in
funding and liquidity.
MHFG's JPY752 billion fund raising in common stock in July 2010
helped the group strengthen its capital, respond to the revision
of capital regulations and establish a capital base for growth.
At end-September 2010 (H1FYE11), MHFG's Tier 1 capital ratio was
11.8% (end-March 2010: 9.1%) with its Fitch core capital ratio at
6.1% (end-March 2010: 4.0%).
In H1FYE11, MHFG's net profit was JPY341.7 billion, up 289% yoy.
MHFG's profit recovery in H1FYE11 was a result of high market-
related gains and low loan loss charges, while its subsidiary
banks' fee business recovered through a bottoming-out of its
customer businesses (such as investment trust sales). Fitch notes
the recovery in customer business as positive, while recognizing
that the momentum of market-related gains and very low LLCs are
not likely to be sustainable. The agency will carefully monitor
the continuity of the group's profit recovery, but notes that its
relatively weaker capital quality (which hinders the banks from
increasing risk assets), and its large stock portfolio
(JPY2.5 trillion, 40% of Tier 1 capital) has potential to
constrain future profit growth.
Thanks to MHBK's ample customer deposits, mainly from its retail
branch network, the dependence on market funding, including
securitization, is limited, while liquidity risk for MHFG as a
whole is very low. MHFG's loan to deposit ratio continued to
remain adequate at 83% at end H1FYE11, with its retail deposits
remaining a stable funding source.
An upgrade of the Individual Ratings could come from sustainable
core profit recovery (notably in its customer business) while
maintaining core capitalization; however, Fitch sees little
prospect of such action at least in the near term. Longer term, a
material decline in holdings across the domestic stock portfolio
could also have positive implications, but in the meantime such
exposures currently serve to constrain the Individual Ratings,
owing to the potentially negative impact of domestic stock price
declines.
Meanwhile, the banks' Issuer Default Ratings are driven by the
expectation of state support, given their systemic importance.
The Support Ratings of MHBK, MHCB and MHTB have been affirmed at
the highest level of '1' and their Support floor at 'A' to reflect
their significant systemic importance, given the size of their
banking and trust assets, as well as their role in the short-term
money market.
Fitch takes the view that there is an extremely high probability
of state support to MHFG, if needed, as it is one of Japan's
largest banking groups.
The ratings on all Tier 1 preferred securities are consistent with
criteria and Fitch's standard practice for rating performing
instruments. The lower Tier 2 subordinated debt is notched once
from the support-driven IDR, while the Tier 1 preferred
securities, which exhibit going concern loss-absorption features,
are notched twice from the unsupported IDRs on the basis of low
expectation of triggers being activated.
MHFG:
-- Long-term foreign and local currency Issuer Default Ratings
affirmed at 'A'; Outlook Stable;
-- Short-term foreign and local currency IDRs affirmed at 'F1';
-- Individual rating affirmed at 'C/D';
-- Support rating affirmed at '1';
-- Support Rating Floor affirmed at 'A';
-- Lower Tier II Subordinated debts (Mizuho Financial Group
(Cayman) Limited) affirmed at 'A-'; and
-- Preferred securities ratings (Mizuho Capital Investment (EUR)
1 Limited, and Mizuho Capital Investment (US$) 1 Limited):
affirmed at 'BB'.
MHBK:
-- Long-term foreign and local currency Issuer Default Ratings
affirmed at 'A'; Outlook Stable;
-- Short-term foreign and local currency IDRs affirmed at 'F1';
-- Individual rating affirmed at 'C/D';
-- Support rating affirmed at '1'; and
-- Support Rating Floor affirmed at 'A'.
MHCB:
-- Long-term foreign and local currency Issuer Default Ratings
affirmed at 'A'; Outlook Stable;
-- Short-term foreign and local currency IDRs affirmed at 'F1';
-- Individual rating affirmed at 'C/D';
-- Support rating affirmed at '1'; and
-- Support Rating Floor affirmed at 'A'.
MHTB:
-- Long-term foreign and local currency Issuer Default Ratings
affirmed at 'A'; Outlook Stable;
-- Short-term foreign and local currency IDRs affirmed at 'F1';
-- Individual rating affirmed at 'C/D';
-- Support rating affirmed at '1'; and
-- Support Rating Floor affirmed at 'A'.
OMEGA CAPITAL: S&P Downgrades Rating on Class A1 Notes to 'D'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' from 'CC
(sf)' its rating on the class A1 secured fixed rate notes, due
2012, issued under Omega Capital Investments PLC's series 29
transaction.
S&P lowered the rating on the aforementioned notes because the
amount of accumulated loss for the transaction has exceeded its
loss threshold amount.
Rating Lowered
Omega Capital Investments PLC
Series 29 secured fixed rate notes
Class To From Issue Amount
----- -- ---- ------------
A1 D (sf) CC (sf) JPY2.3 bil.
TOSHIBA CORPORATION: Moody's Gives Stable Outlook on 'Ba1' Rating
-----------------------------------------------------------------
Moody's Japan K.K. has changed the outlook for the Baa2 long-term
debt ratings and Ba1 subordinated bond rating of Toshiba
Corporation to stable from negative. The change in outlook
reflects Moody's acknowledgement that Toshiba's overall credit
metrics will continue to improve, given the company's recovered
profitability and restructured business portfolio.
Moody's notes that Toshiba recovered positive operating profits in
all its four major businesses -- Digital Products, Electronic
Devices, Social Infrastructure and Home Appliances -- in the first
six months (April -- September) of FYE 3/2011.
As a result, Toshiba posted a consolidated operating profit of
JPY104.8 billion for this period, which is the highest in the last
ten years.
Toshiba recovered its operating profit by cutting costs and
restructuring its business, in addition to recovering operation
volumes, which offset the negative impact of price decreases and
unfavorable foreign exchange rates.
Moody's believes that Toshiba can maintain its profitability,
given the company's enhanced cost structure and streamlined
business structure.
Moody's has had concern about the profit volatility of Toshiba's
Electronic Devices business, which mainly comprises semiconductor
manufacturing. In an effort to improve and stabilize this
segment's profitability, Toshiba implemented cost reductions as
well as business restructuring.
Toshiba has sharpened its strategy to concentrate its capital
expenditure in the Memory sub-segment, which has competitive
advantages, while reducing its exposure to System LSI sub-segment
by implementing a "fab-lite" (outsourcing) strategy.
As a result of these measures, Toshiba's Electronic Devices
segment recorded JPY65.5 billion of operating profit in the six
months (April - September 2010) of FYE2/2011, up JPY100.8 billion
from a year earlier.
Moody's considers that Toshiba will be able to control the profit
volatility of the segment, given the company's latest strategy and
its strong market position in the Memory sub-segment.
Moody's also notes that Toshiba's Social Infrastructure business,
another major profit source, is generating stable operating
profits.
The segment's operating profit for the six months (April --
September 2010) was JPY32.2 billion, which increased from JPY24.2
billion for the same period in 2008, just before the global
recession.
Toshiba's financial profile has therefore improved with the
recovery in profitability. The booked external debt of Toshiba at
end-September 2010 was JPY1,194.8 billion, a decrease of JPY205.2
billion compared to a year earlier.
Finally, Moody's Baa2 rating on Toshiba also reflects the
company's stable relationship with its main banks, in addition to
its strong ability to access the capital markets. This provides a
two-notch uplift from its fundamental creditworthiness.
The current Baa2 rating incorporates gradual improvement in credit
metrics over the next few years -- such that adjusted debt/EBITDA
at around 4.0x and adjusted debt/capitalization at around 70%.
Upward rating pressure could emerge if Toshiba increased and
stabilized its overall profitability by further enhancing each
segment's competitiveness, evidenced by a booked operating profit
margin at around 4.0%, and/or adjusted debt/EBITDA at around 3.5x,
both at sustained levels.
On the other hand, downward rating pressure could emerge if the
company's earnings weaken due to a significant decline in its
market position, evidenced by adjusted debt/EBITDA over 4.5x,
and/or adjusted debt/capitalization over 75%. Also, aggressive
use of financial leverage for acquisitions or any drastic changes
in financial policy would put downward pressure on the rating.
The last rating action with respect to Toshiba was on April 27,
2009, when the company's long-term debt ratings were downgraded
from Baa1 to Baa2 with a negative outlook.
Toshiba Corporation, headquartered in Tokyo, is a leading
integrated electronics company in Japan. Its consolidated sales
in FYE 3/2010 were JPY6.4 trillion. The main business segments of
the company are Digital Products, Electronic Devices, Social
Infrastructure, Home Appliances, and others.
=========
K O R E A
=========
HANA BANK: Fitch Puts Ratings on Securities on Negative Watch
-------------------------------------------------------------
Fitch Ratings has placed Hana Bank's hybrid securities on Rating
Watch Negative. The agency simultaneously affirmed all the
ratings of Hana and Korea Exchange Bank including the Long-term
foreign currency Issuer Default Ratings ('A-'/Stable) and
Individual ratings ('C') of the banks. A full list of rating
actions can be found at the end of this release.
The rating actions follow Hana's parent Hana Financial Group's
share purchase agreement for Lone Star Fund's 51.02% stake in KEB
for KRW4.7trn on 25 November 2010. The acquisition cost will
increase to KRW5.3trn should Export and Import Bank of Korea
exercise its tag-along right to sell its 6.25% stake in KEB. No
details of the funding plan have been released to date.
The agency views the deal as potentially having a short-term
negative effect on Hana's own financial profile, but having
potentially positive long-term implications. The agency notes
that the acquisition may be a catalyst for Hana, which has a
comparative advantage in retail banking, to develop itself into an
international bank in the long-term. KEB has the strongest
franchise in FX operations and trade finance among South Korea's
banks. Synergies from the scale would likely only be gradual,
given that HFG plans to keep both banks separate with the current
brands for a few years rather than merging them into one in the
short term.
The RWN considers the risk that the mainly debt-financed
acquisition could have a material negative impact on Hana's
standalone credit strength (i.e. intrinsic unsupported Long-term
IDR) on which its hybrid securities rating is dependent. The
agency will closely monitor the development of the acquisition,
including any specific funding plans for the deal which HFG will
arrange over the next few months and any additional stake
acquisition, in order to decide the level of impact on Hana's
unsupported credit profile and also the potential effect on KEB's.
Fitch views the acquisition as relatively large compared to HFG's
current debt-servicing capability. HFG's double leverage ratio
may rise to 162% if HFG funds it all in debt, assuming KEXIM
exercises the tag-along right. The ratio may increase further if
HFG decides to acquire a complete stake in KEB. That said, the
agency notes that HFG would find programmatic solutions to deal
with the challenges with a discussion with Korea's regulator.
Some of the concerns on Hana that the agency has are the potential
of a significant dividend upstream to finance HFG's acquisition
which may weaken the bank's capitalization and liquidity;
weakening profitability due to an increase in personnel costs to
resolve the salary gap as Hana's employees are paid about 30% less
in average than KEB's; and an aggressive loan growth to help the
debt-servicing ability at HFG, which may weaken the bank's
capitalization and loan quality. HFG has a vision to double its
capitalization in 2015 through organic growth and M&A in overseas
and insurance sector.
The affirmation of KEB's Individual rating reflects that any
potential impact of the acquisition on KEB's standalone credit
profile would not be significant enough to trigger a downgrade.
Indeed the potential of a sizable dividend upstream from KEB is
more remote than in Hana's case, unless HFG accelerates its plan
to gain complete control of KEB. The agency also notes that the
labor union of KEB is against KEB being acquired by HFG and may
cause various issues including a labor strike that may potentially
weaken the franchise of KEB. That said, the social support in
Korea for an aggressive labour movement is much weaker than in the
past. The agency expects HFG and KEB's labor would agree on an
accommodative resolution that may include a one-off bonus to
appease labor.
The affirmation of the IDRs, senior unsecured debts, and
subordinated debts of Hana and KEB reflects that the acquisition
does not have a material bearing on their respective Support
Ratings and Support Rating Floors which in turn reflect their
systemic importance in the agency's belief. The Long-term foreign
currency IDRs of the two banks are currently at their respective
Support Rating Floors ('A-'). Even if the two banks become
integrated into a one bank in the future, the likelihood of an
upgrade of the Support Rating Floor for the combined bank would be
low given that the agency assigns the same 'A-' Support Rating
Floor for Kookmin Bank whose market share (15.4%) in terms of
total assets is greater than that of the combined bank (14.1%).
Hana and KEB account for 8.2% and 5.9% of the system's assets in
South Korea, respectively.
The full list of rating actions is:
Hana Bank:
-- Long-term foreign currency IDR: affirmed at 'A-' with Stable
Outlook;
-- Short-term foreign currency IDR: affirmed at 'F2';
-- Individual Rating: affirmed at 'C';
-- Support Rating: affirmed at '1';
-- Support Rating Floor: affirmed at 'A-';
-- Senior (government) guaranteed debts: 'A+';
-- Senior unsecured debts: affirmed at 'A-';
-- Subordinated debts: affirmed at 'BBB+'; and
-- Hybrid securities: affirmed at 'BB+' with Negative Watch.
Korea Exchange Bank:
-- Long-term foreign currency IDR: affirmed at 'A-' with Stable
Outlook;
-- Short-term foreign currency IDR: affirmed at 'F2';
-- Individual Rating: affirmed at 'C';
-- Support Rating: affirmed at '1';
-- Support Rating Floor: affirmed at 'A-';
-- Senior Unsecured debts: affirmed at 'A-'; and
-- Subordinated debts: affirmed at 'BBB+'.
===============
M A L A Y S I A
===============
HOCK SIN: Unit to Sell Six Pieces of Land for MYR9 Million
----------------------------------------------------------
Hock Sin Leong Group Berhad disclosed that Delta Park Sdn Bhd, a
wholly-owned subsidiary of the Company, has entered into a
conditional sale and purchase agreement with Masera Realty Sdn Bhd
for the proposed disposal of six pieces of land, together with six
units of 5-storey industrial building, for MYR9 million.
The property encompasses six pieces of land held under titles
HS(M) 26574-26579, Lot Nos. 16933-16938, Taman Kencana, Mukim of
Empang, District of Hulu Langat, in Selangor Darul Ehsan, with a
total land area of approximately 1,327.36 square metres, together
with six units of 5-storey industrial building erected thereon.
The Land is a leasehold land of 99 years expiring on June 21,
2089.
"The Board is of the opinion that the Proposed Disposal is in the
best interest of HSLGB Group in view that that the proceeds raised
will be utilized to finance the group's working capital and
to pare down the group's short-term borrowings. The proceeds will
strengthen HSLGB Group's cash flow position," the Company said.
"The repayment of short-term bank borrowings will enable HSLGB to
lower its gearing level and is in line with HSLGB Group's efforts
to address its net current liabilities position which gave rise to
HSLGB being classified as a PN17 Company."
The Board also noted that the Disposal Price is at a premium of
MYR1,465,000 (19%) above the market value of the Property as
assessed by KGV-Lambert Smith Hampton (M) Sdn Bhd on November 24,
2010.
About Hock Sin
Hock Sin Leong Group Berhad -- http://www.hslg.com.my/-- is an
investment holding company. It also provides management services
to its subsidiary companies. The Company, through its
subsidiaries, is engaged in consumer electrical and electronics
industry in Malaysia.
Hock Sin Leong Group Berhad is now listed as an Amended Practice
Note 17 company based on the criteria set by the Bursa Malaysia
Securities Bhd.
According to a disclosure statement with the bourse, the company
triggered the PN17 listing as its external auditors have
expressed, albeit, an unqualified opinion and have emphasized that
the Group incurred a net loss of MYR26,587,834 during the year
ended September 30, 2009, and as of that date, the Group's current
liabilities exceeded its current assets by MYR28,172,442.
IBRACO BERHAD: Posts MYR2.42MM Net Loss in Qtr. Ended September 30
------------------------------------------------------------------
Ibraco Berhad posted a MYR2.42 million net loss on MYR72,000 of
revenues in the quarter ended September 30, 2010, compared to a
MYR1.11 million net loss on MYR40,000 of revenues in the same
quarter of 2009.
The Company's balance sheet as of September 30, 2010, showed
MYR153.86 million in total assets, MYR21.82 million in total
liabilities, and stockholders' equity of MYR132.04 million.
A full-text copy of the Company's Quarterly Results is available
for free at http://ResearchArchives.com/t/s?7073
About Ibraco Bhd
Ibraco Berhad is engaged in property development and investment
holding. The Company is specializing in real estate and property
development comprising mainly residential, commercial and
industrial properties. Some of the Company's subsidiaries are
specializing in the development of industrial estate, residential
schemes and social housing. The Company operates in Malaysia.
The Company's subsidiaries include Ibraco-LCDA Sdn. Bhd., Ibraco
Shine Sdn. Bhd., Syarikat-Ibraco Peremba Sdn. Bhd., Foso One Sdn.
Bhd., Ibraco Construction Sdn. Bhd. and Ibraco Shine Sdn. Bhd.
* * *
Ibraco Berhad has been considered a PN17 Company based on the
criteria set by the Bursa Malaysia Securities Bhd. The company
triggered Paragraph 2.1(h) of the Listing Requirements as a result
of low revenue on a consolidated basis that represents 5% or less
of the issued and paid-up capital of the Company for the year
ended December 31, 2009.
OILCORP BERHAD: Posts MYR14.92MM Net Loss for Qtr. Ended Sept. 30
-----------------------------------------------------------------
Oilcorp Berhad disclosed with the Bursa Malaysia Securities its
unaudited financial results for the quarter ended September 30,
2010.
The Company reported a MYR14.92 million net loss on MYR5.47
million of revenues in the quarter ended September 30, 2010,
compared with a MYR235.28 million net loss on MYR50.41 million of
revenues in the same quarter of 2009.
At September 30, 2010, the Company's consolidated balance sheet
showed MYR287.40 million in total assets and MYR504.60 million in
total liabilities, resulting in a stockholders' deficit of
MYR217.20 million.
The Company's consolidated balance sheets at September 30, 2010,
also showed strained liquidity with MYR67.56 million in total
current assets available to pay MYR498.06 million in total current
liabilities.
A full-text copy of the Company's quarterly report is available
for free at http://ResearchArchives.com/t/s?7071
About Oilcorp Berhad
Oilcorp Berhad is a Malaysia-based investment holding company.
The Company operates in five segments: oil and gas and
engineering, which includes engineering, procurement, construction
and contract-related services in oil and gas related industries;
property investment/resort, which includes property and resort
operations and related activities and services; investment
holding, which includes investment holding; fisheries, which
includes deep sea fishing operations and related activities, and
overseas special project (construction), which includes
engineering, procurement, construction and contract-related
sources in non oil and gas industries related industries. Its
wholly owned subsidiaries include Oil-Line Engineering &
Associates Sdn. Bhd., D'Tiara Corp Sdn. Bhd., Layar Visi Sdn. Bhd.
and D'Tiara Corp Limited.
Oilcorp Berhad has been classified as an Affected Listed Issuer
under Practice Note 17/2005 of Bursa Malaysia Securities Berhad
as the Company is unable to provide a solvency declaration to
Bursa Securities following a default in its interest payments
pursuant to Practice Note 1/2001.
STAMFORD COLLEGE: Posts MYR528,000 Net Loss in September 30 Qtr.
----------------------------------------------------------------
Stamford College Berhad posted a net loss of MYR528,000 on
revenues of MYR7.73 million for the three months ended Sept. 30,
2010, compared with net income of MYR1.67 million on revenues of
MYR5.53 million in the same quarter of 2009.
As of September 30, 2010, the Company's consolidated balance sheet
showed MYR44.54 million in total assets, MYR24.22 million in total
liabilities and shareholders' equity of MYR20.32 million.
The Company's consolidated balance sheet at September 30, 2010,
showed strained liquidity with MYR9.14 million in total current
assets available to pay MYR20.83 million in total current
liabilities.
A full-text copy of the Company's quarterly report is available
for free at http://ResearchArchives.com/t/s?7072
About Stamford College
Based in Malaysia, Stamford College Berhad (KUL:STAMCOL) --
http://www.stamford.edu.my/-- is an investment holding and
management company. It principally engaged in the provision of
executive training. The Company offers over 50 courses of study,
which include full Undergraduate Degrees, Masters Degrees and
North American Degree Program. The disciplines offered by
Stamford range from Accounting to Business Administration,
Engineering, Computer Science, Hospitality Management and
Executive Secretaryship. Foreign students have also been part of
Stamford's landscape, and Stamford has more than 1,500 foreign
students from over 40 countries pursuing their higher education.
Stamford College Berhad has been considered as an Affected Listed
Issuer under Practice Note No. 17/2005 of the Bursa Malaysia
Securities Berhad as it has triggered Paragraph 2.1(e) of
PN 17/2005.
According to the Company's disclosure statement with the bourse,
it triggered the PN 17/2005 listing since auditors have expressed
a modified opinion with emphasis on the Company's going concern
status in the latest audited accounts for the financial year ended
December 31, 2008, and the Company's shareholders equity on a
consolidated basis is equal to or less than 50% of the issued and
paid-up capital of the company.
=================
S I N G A P O R E
=================
INTELLIGENT COMMUNICATION: Posts US$1.7-Mil. Net Loss in Q3 2010
----------------------------------------------------------------
Intelligent Communication Enterprise Corporation filed its
quarterly report on Form 10-Q, reporting a net loss of
$1.70 million on $2.11 million of revenue for the three months
ended September 30, 2010, compared with a net loss of $322,460 on
$2.82 million of revenue for the same period last year.
The Company's balance sheet at September 30, 2010, showed
$8.64 million in total assets, $3.78 million in total liabilities,
all current, and stockholders' equity of $4.86 million.
The Company has an accumulated deficit of $21.41 million at
September 30, 2010.
Peterson Sullivan LLP, in Seattle, Washington, expressed
substantial doubt about Intelligent Communication's ability to
continue as a going concern, following the Company's results for
2009. The independent auditors noted that the Company has not
generated revenues or positive cash flows from operations and has
an accumulated deficit at December 31, 2009.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?7045
About Intelligent Communication
Headquartered in Singapore, Intelligent Communication Enterprise
Corporation (OTC BB: ICMC) -- http://www.icecorpasia.com/--
was incorporated in the State of Pennsylvania. The Company offers
a range of innovative enterprise and consumer solutions over the
mobile phone. The Company operates in three business segments --
iCEmms or Mobile Messaging Services, iCEsync or Multimedia
Solutions to Mobile Communities, and iCEmat or Mobile
Authentication Technologies.
===========
T A I W A N
===========
PACIFIC SECURITIES: Fitch Gives Stable Outlook; Affirms Ratings
---------------------------------------------------------------
Fitch Ratings has revised the rating Outlook of Pacific Securities
Corporation to Stable from Negative. At the same time, Fitch has
affirmed all its ratings. A detailed list of the rating actions
follows at the end of this commentary.
The Outlook revision to Stable reflects Fitch's view that the
downside risk of PSC should be manageable given the company's
substantially reduced balance sheet risk exposures. Furthermore,
the company has a valuable commercial building located in a prime
district of Taipei city. Fitch notes that this latter property is
of high liquidity and could boost PSC's capital level upon
disposal.
PSC's National Long-term and Individual rating reflect its small
and concentrated business profile, weak liquidity and rather low
but acceptable capitalization, which is understood to be
understated due to capital deduction applied to its property
holdings. The agency considers any notable increase of its risk-
taking behavior, and/ or any material weakening of liquidity or
core capital to have an adverse effect on its long-term ratings.
On the other hand, the injection of fresh capital to bolster
capitalization to a more healthy level (mostly likely through
property disposals), and/or a sustained improvement in earnings
and liquidity are viewed as positive factors for its long-term
ratings.
PSC reported a net loss in 9M10, with an annualized return on
equity of negative 6.5%, due mainly to stock valuations and
trading losses. Meanwhile, PSC's brokerage business remained
loss-making due to its scale disadvantages. In light of PSC's
high dependence on proprietary trading for profits, Fitch expects
PSC's earnings to remain volatile and subject to the swings of the
stock market.
Despite years of operating losses, PSC managed to report an
acceptable capital adequacy ratio of 194% at end-Q310 (above the
regulatory minimum of 150%) by trimming down its trading
activities. Fitch considers the risk from PSC's trading portfolio
to be manageable, as stocks exposure only accounted for 30.2% of
the company's equity at end-H110, while its bond portfolio
consisted mainly of low-risk government bonds (65.5%) and some
locally traded less-liquid convertible bonds.
Fitch deems PSC's funding and liquidity profile to be weak. The
company's rather aggressive approach to funding its reverse repos
with repos could render it vulnerable to a liquidity gap should
there be sudden liquidity withdrawals by its counterparties.
However, PSC's liquid assets were sufficient to cover its short-
term obligations. PSC has a weak capital position, evidenced by
its relatively low equity/assets ratio of 35.7%, which is
substantially lower than the industry average of 44.6% at end-
H110. Fitch's recovery analysis indicates that the potential
recovery rates for PSC's creditors and counterparties are high in
stress conditions due to the company's holdings of valuable
commercial properties.
PSC, founded in 1988, is a small securities firm with a 0.6%
market share in Taiwan. Local entrepreneur Alex Ho and his
investment associates own 9.6% of PSC's shares and control its
board.
Full list of rating actions for Pacific Securities Corporation:
-- National Long-term rating affirmed at 'BBB-(twn)'; Outlook
revised to Stable from Negative;
-- National Short-term rating affirmed at 'F3(twn)';
-- Individual rating affirmed at 'D/E'; and
-- Support rating affirmed at '5'.
=============
V I E T N A M
=============
VIETNAM NATIONAL: Moody's Reviews 'Ba3' Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service has placed on review for possible
downgrade the Ba3 corporate family rating of Vietnam National
Coal-Mineral Industries Holding Corporation Limited.
At the same time, Moody's has withdrawn the provisional (P)Ba3
rating assigned to Vinacomin's proposed senior unsecured US$notes
following the postponement of the issuance.
This review has been prompted by the reported potential
restructuring of Vietnam Shipbuilding Industry Group (Vinashin),
and its chairman's comment on a possible delay in the repayment of
a foreign currency loan in December, and the implications that
such a possible default by Vinashin may hold for Moody's
expectations of government support for Vietnam's other state-owned
enterprises, such as Vinacomin.
Vinacomin's Ba3 rating factors in a 2-notch uplift based on
Moody's expectation of a high support from its 100%-owned parent,
the Vietnamese government (Ba3/Negative), under the joint default
analysis approach for government related issuers.
"However, Moody's expectations of such high support for Vinacomin
have been tempered by the developments at Vinashin, the state-
owned shipyard. While Moody's views Vinacomin as more important
to Vietnam, when compared with Vinashin, the review will need to
consider whether the situation at Vinashin is company-specific, or
reflective of a more commercial approach to the control and
support of the state-owned businesses in Vietnam," says Alan
Greene, a Moody's Vice President and Senior Credit Officer.
The review will predominantly address the levels of sovereign
support, and the rating impact on Vinacomin. In addition, Moody's
will continue to monitor the restructuring process underway at
Vinashin and consider the implications for other state- owned
enterprises, including Vinacomin.
The last rating action on Vinacomin was taken on November 12, 2010
when a provisional bond rating was assigned.
Vinacomin is the largest coal producer in Vietnam, accounting for
over 95% of total domestic coal production. The company is also
engaged in power generation, mineral exploration and smelting, and
other operations related to its core coal and minerals business.
*********
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.
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