/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/110718.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, July 18, 2011, Vol. 14, No. 140 Headlines A U S T R A L I A SMART SERIES: Fitch Assigns 'BB(EXP)sf' to AUD13.38M Class E Notes SMART SERIES: Moody's Rates AUD13.38MM Class E Notes at 'Ba2' C H I N A CHINA CONSTRUCTION: Fitch Withdraws Ratings * CHINA: Starts Forming Bankruptcy Rules for Lenders H O N G K O N G 139 MOBILE: Ho and Kong Step Down as Liquidators BAYLIS & HARDING: Members' Final Meeting Set for August 15 CENTALIC TRADING: Placed Under Voluntary Wind-Up Proceedings CHINA EAST: Ngan Lin Chun Esther Steps Down as Liquidator CROCKETT INTERNATIONAL: Creditors' Proofs of Debt Due August 15 CRYSTAL CHANT: Members' Final Meeting Set for August 16 EDWIN CHENG: Creditors' Proofs of Debt Due August 15 EXCESSWAY INVESTMENT: Members' Final Meeting Set for August 16 GRAND SILVER: Creditors' Proofs of Debt Due August 15 HK DIGESTIVE: Placed Under Voluntary Wind-Up Proceedings KASON DEVELOPMENT: Creditors' Meeting Set for July 26 MF ASSET: Briscoe and Wong Step Down as Liquidators NORTHERN STAR: Members' Final Meeting Set for August 15 ORIENT KING: Members' Final Meeting Set for August 22 SAN SHAN: Kenny King Ching Tam Steps Down as Liquidator I N D I A AB&CO GLOBAL: CRISIL Puts 'BB-' Rating on INR50MM Letter of Credit ADMACH AUTO: CRISIL Assigns 'BB+' Rating to INR40.4MM Term Loan EMERGENCY MEDICAL: CRISIL Puts 'D' Rating on INR25MM Cash Credit FASTLANE DISTRIPARKS: CRISIL Cuts Rating on INR1.1BB LT Loan GREEN VALLIEY: CRISIL Assigns 'D' Rating to INR1.3BB Term Loan HUMA ENTERPRISES: CRISIL Places 'BB-' Rating on INR50M Cash Credit INDIAN BANK: Fitch Assigns 'C/D' Individual Rating INDIAN BANK: S&P Rates Upper Tier II & Hybrid Tier I Notes 'BB' JINDAL INDIA: Fitch Rates INR1.55B LT Bank Loans at 'BB(ind)' KALYANPUR CEMENT: Fitch Downgrades INR1.17B NCDs to 'D(ind)(exp)' KHARVEL SALES: CRISIL Rates INR70MM Cash Credit at 'B' NORTECH POWER: CRISIL Assigns 'C' Rating to INR70MM Cash Credit PADMAVATI PULP: CRISIL Assigns ' B+' Rating to INR58.4MM Term Loan RASAA FOODS: CRISIL Assigns 'D' Rating to INR60 Million LT Loan SOVEREIGN DIAMONDS: CRISIL Assigns 'BB-' Rating to INR135MM Credit SUCHI FASTENERS: CRISIL Rates INR28.8MM Term Loan at 'BB-' * INDIA: Fitch Affirms, Withdraws Ratings of Select Banks I N D O N E S I A * INDONESIA: Fitch Withdraws Individual Ratings of 7 Banks N E W Z E A L A N D HURLSTONE GROUP: Appoints Ferrier Hodgson as Receivers STEVE ROUT: Owes More Than NZ$11 Million to Creditors S I N G A P O R E CELESTIAL NUTRIFOODS: Provisional Liquidator Starts Probe T A I W A N AMERICAN INTERNATIONAL: FSC Gives Final Approval to Nan Shan Sale V I E T N A M BANK FOR INVESTMENT: Fitch Affirms, Withdraws Ratings - - - - - ================= A U S T R A L I A ================= SMART SERIES: Fitch Assigns 'BB(EXP)sf' to AUD13.38M Class E Notes ------------------------------------------------------------------ Fitch Ratings has assigned SMART Series 2011-2US Trust notes expected ratings. The transaction is an asset-backed securitization backed by automotive lease receivables originated by Macquarie Leasing Pty Limited (Macquarie Leasing). -- USD90.00 million Class A-1 notes: 'F1+(EXP)sf'; -- USD140.00 million Class A-2 (a & b) notes: 'AAA(EXP)sf'; Outlook Stable; Loss Severity rating at 'LS1'; -- USD142.00 million Class A-3 (a & b) notes: 'AAA(EXP)sf'; Outlook Stable; Loss Severity rating at 'LS1'; -- USD128.00 million Class A-4 (a & b) notes: 'AAA(EXP)sf'; Outlook Stable; Loss Severity rating at 'LS1'; -- AUD12.04 million Class B notes: 'AA(EXP)sf'; Outlook Stable; Loss Severity rating at 'LS3'; -- AUD14.71 million Class C notes: 'A(EXP)sf'; Outlook Stable; Loss Severity rating at 'LS3'; -- AUD13.38 million Class D notes: 'BBB(EXP)sf'; Outlook Stable; Loss Severity rating at 'LS3'; -- AUD13.38 million Class E notes: 'BB(EXP)sf'; Outlook Stable; Loss Severity rating at 'LS3'; and -- AUD5.35 million seller notes: not rated. The final ratings are contingent on receipt of final documents conforming to information already received. "This transaction marks Macquarie Leasing's second foray into the US market for 2011," said James Leung, Associate Director in Fitch's Structured Finance team. "While predominantly very similar to previous SMART deals, this transaction is notable for its lower levels of seasoning." The notes have been issued by Perpetual Trustee Company Limited as trustee for SMART Series 2011-1US Trust. SMART Series 2011-2US Trust is a legally distinct trust established pursuant to a master trust and security trust deed. At the cut-off date, the Macquarie Leasing's representative collateral portfolio consisted of 32,258 automotive lease receivables totaling approximately AUD1,150.6 million, with an average size of AUD35,670. The pool comprises passenger and light commercial vehicle lease receivables from Australian residents across the country, consisting of amortizing principal and interest leases with varying balloon amounts payable at maturity. The weighted average balloon payment for the portfolio is 26.1% (percentage of leases' original balance). The majority of leases consist of novated contracts (54.1%), where the lease is novated to the employer in salary packaging arrangements. Historical gross loss rates by quarterly vintage on passenger vehicle leases originated by Macquarie Leasing ranged between 0.6% and 1.5%, and from 0.5% to 4.0% for light commercial. The expected Short-Term 'F1+(EXP)sf' Rating assigned to the Class A-1 notes and the expected Long-Term 'AAA(EXP)sf' Rating with Stable Outlook assigned to the Class A-2a, A-2b, A-3a, A-3b, A-4a and A-4b notes, are based on: the quality of the collateral; the 11.0% credit enhancement provided by the subordinate Class B, C, D and E notes and the unrated seller notes and excess spread; the liquidity reserve account sized at 1.0% of the aggregate invested amount of the notes at closing; the interest rate swap arrangements the trustee has entered into with Macquarie Bank Ltd ('A+'/Outlook Stable/'F1'); and Macquarie Leasing Pty Ltd's lease underwriting and servicing capabilities. The expected ratings assigned to the other classes of notes are based on all the strengths supporting the Class A notes, excluding their credit enhancement levels, but including the credit enhancement provided by each class of notes' respective subordinate notes. SMART SERIES: Moody's Rates AUD13.38MM Class E Notes at 'Ba2' ------------------------------------------------------------- Moody's Investors Service has assigned provisional ratings to notes issued by Perpetual Trustee Company Limited in its capacity as trustee of the SMART Series 2011-2US Trust. Issuer: SMART Series 2011-2US Trust -- USD90.0 million Class A-1 Notes, Assigned (P)P-1 (sf); -- USD140.0 million Class A-2 Notes, Assigned (P)Aaa (sf); -- USD142.0 million Class A-3 Notes, Assigned (P)Aaa (sf); -- USD128.0 million Class A-4 Notes, Assigned (P)Aaa (sf); -- AUD12.04 million Class B Notes, Assigned (P)Aa2 (sf); -- AUD14.71 million Class C Notes, Assigned (P)A2 (sf); -- AUD13.38 million Class D Notes, Assigned (P)Baa2 (sf); -- AUD13.38 million Class E Notes, Assigned (P)Ba2 (sf). The AUD 5.35 million Seller Notes are not rated by Moody's. The Class A-1 Notes will be fixed rate notes. The Class A-2, Class A-3 and Class A-4 Notes may be offered as either fixed or floating rate notes. Where the Class A-2, Class A-3 fixed and floating rate notes are offered, the notes will be issued as Class A-2a, Class A-2b, Class A-3a, Class A-3b, Class A-4a and Class A-4b respectively. The transaction is a securitization of a portfolio of Australian novated leases, commercial hire purchase agreements, chattel mortgages and finance leases secured by motor vehicles, originated by Macquarie Leasing Pty Limited ("Macquarie"). "This is the third Australian ABS transaction targeted at the US market, following Macquarie's previous USD deals in July 2010 and March 2011", says Treasa Boyle, Moody's lead analyst for the transaction. "Whilst to date Macquarie has been the only Australian ABS issuer to go to the US, CFAL issued a GBP deal in June 2011, indicating that offshore markets are becoming more important in the long-run", she adds. Ratings Rationale In broad terms SMART Series 2011-2US Trust replicates structures seen in previous SMART transactions sponsored by Macquarie, and closely follows the structure seen in SMART Series 2011-1US Trust. Notable features of the transaction include the conservative composition of the receivables pool backing the transaction, the USD-denominated senior notes and the pro-rata principal repayment profile. The pool includes a relatively high percentage of novated leases (54%). Moody's considers novated leases to have a lower level of risk than other contract types and this is a positive feature of the transaction. At the same time, the deal is exclusively backed by motor vehicles, predominantly cars. Past non-US SMART transactions and other Australian ABS transactions typically include 10-15% of other equipment types. In Moody's opinion, motor vehicles exhibit less pro-cyclical default patterns and, on average, higher recovery rates. As a result, Moody's views the SMART 2011-2US Trust pool as more conservatively structured than peer portfolios. In order to fund the purchase price of the portfolio, the Trust will issue up to twelve classes of notes. The notes will be repaid on a sequential basis in the initial stages (until the subordination percentage increases from the initial 11.0% to 18.9%, and from 12.0% to 19.9% including the liquidity reserve) and during the tail end of the transaction. At all other times, the structure will follow a pro rata repayment profile. This principal paydown structure is comparable to other structures in the Australian ABS market in recent years. The deal will include a minimum of four (and up to seven in the event both fixed and floating rate notes are issued) senior, USD- denominated tranches. The Class A-1 Notes are fast-pay money- market notes, rated P-1. The Class A Notes will be repaid sequentially within the Class A Note allocation. The ratings are based on the credit enhancement provided by the subordinated notes and the liquidity reserve, in total equal to 12% for the Class A Notes. An unusual feature of the transaction is that the maturity dates of the Class A Notes were set not with reference to the maturity of the longest dated receivable but rather with reference to the scheduled principal amortisation profile (with a certain buffer to allow for defaults and delinquencies). Moody's has accounted for the possibility of losses and delinquencies during the term of the Class A notes in its assessment of the likelihood of their repayment and believes scheduled principal amortization to be sufficient to repay the Class A Notes by the maturity dates in full. Moody's base case assumptions are a default rate of 1.80% and a recovery rate of 40%. These imply a expected (net) loss of 1.08%. Both the default rate and the recovery rate have been stressed relative to observed historical levels of 1.26% and 50-55% respectively. The ratings address the expected loss posed to investors by the legal final maturity. The structure allows for timely payment of interest and ultimate payment of principal by the legal final maturity. Volatility Assumption Scores and Parameter Sensitivities The V Score for this transaction is Low/Medium, which is in line with the score assigned for the Australian ABS sector. Among other factors, we note the availability of a substantial amount of historical performance data in the Australian ABS market as well as on an issuer-by-issuer basis. Here, for instance, we have been provided with detailed vintage and individual default data for the 1998-2010 period. In addition, we observe that Australian auto ABS, and specifically past SMART transactions, have to date been performing stably. This allows Moody's to have a material degree of comfort with regard to assumptions made in rating the SMART Series 2011-2US Trust. V Scores are a relative assessment of the quality of available credit information and of the degree of uncertainty around various assumptions used in determining the rating. High variability in key assumptions could expose a rating to more likelihood of rating changes. The V Score has been assigned accordingly to the report "V Scores and Parameter Sensitivities in the Asia/Pacific RMBS Sector", published in March 2009. Parameter Sensitivities are designed to provide a quantitative calculation of how the initial rating might change if key input parameters used in the initial rating process - here, the expected loss and the Aaa credit enhancement - differed. The analysis assumes that the deal has not aged. Parameter Sensitivities only reflect the ratings impact of each scenario from a quantitative/model-indicated standpoint. In the case of SMART Series 2011-2US Trust, the Class A Notes remain strongly investment grade and typically Aa when the default rate rises to 3.60% (double of Moody's assumption of 1.80%). Similarly, high investment grade ratings are maintained when the base recovery rate is stressed from the assumed 40% to 20% (holding other factors, including the assumed default rate of 1.80% constant). Where the default rate assumption doubles and the recovery rate assumption halves, the rating drops to A2. The principal methodology used in this rating was "Moody's Approach to Rating Australian Asset-Backed Securities", published in July 2009. Please see the Credit Policy page on www.moodys.com for a copy of this methodology. ========= C H I N A ========= CHINA CONSTRUCTION: Fitch Withdraws Ratings ------------------------------------------- Fitch Ratings has withdrawn China Construction Bank (Asia) Finance Limited's ratings. The withdrawal follows a reorganization of the rated entity involving the transfer of a majority of CCBAF's assets and liabilities to its parent, China Construction Bank (Asia) Corporation Limited, and, consequently, its effective cessation of business. The ratings of CCBAF at the time of withdrawal were: -- Long-Term Local Currency Issuer Default Rating of 'BBB', Outlook Positive -- Short-Term Local Currency Issuer Default Rating of 'F2' -- Individual Rating of 'D' -- Support Rating of '2' * CHINA: Starts Forming Bankruptcy Rules for Lenders ---------------------------------------------------- According to Bloomberg News, Caixin online, citing an unidentified official at the China Banking Regulatory Commission, reported that the commission has began working on bankruptcy rules for domestic banks. Bloomberg relates that Caixin said early work on the rules includes a study of framework principles and articles for the rules by using bankruptcy scenarios from other countries as reference. Caixin, as cited by Bloomberg, said it's still too early to seek opinions on the rules from other government departments. Bloomberg notes that Caixin, citing the official as saying, reported that there isn't a time frame for the introduction of the rules and it hasn't been decided if the rules will be introduced at the same time as deposit insurance regulations. ================ H O N G K O N G ================ 139 MOBILE: Ho and Kong Step Down as Liquidators ------------------------------------------------ Ho Man Kit and Kong Sau Wai stepped down as liquidators of 139 Mobile Internet (Hong Kong) Limited on July 6, 2011. BAYLIS & HARDING: Members' Final Meeting Set for August 15 ---------------------------------------------------------- Members of Baylis & Harding (Asia) Limited will hold their final general meeting on Aug. 15, 2011, at 2:30 p.m., at Unit 1618, 16th Floor, Miramar Tower, 132 Nathan Road Tsim Sha Tsui, in Kowloon. At the meeting, Vettoretti Alberto, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CENTALIC TRADING: Placed Under Voluntary Wind-Up Proceedings ------------------------------------------------------------ At an extraordinary general meeting held on July 11, 2011, creditors of Centalic Trading Company Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Au Wing Ip 6B, Cameron Plaza 23 Cameron Road Tsimshatsui, Kowloon Hong Kong CHINA EAST: Ngan Lin Chun Esther Steps Down as Liquidator --------------------------------------------------------- Ngan Lin Chun Esther stepped down as liquidator of China East Shipping Limited on July 11, 2011. CROCKETT INTERNATIONAL: Creditors' Proofs of Debt Due August 15 --------------------------------------------------------------- Creditors of Crockett International Asia Pacific Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Aug. 15, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 8, 2011. The company's liquidators are: James T. Fulton Cordelia Tang 905 Silvercord Tower 2, 30 Canton Road Tsimshatsui, Kowloon Hong Kong CRYSTAL CHANT: Members' Final Meeting Set for August 16 ------------------------------------------------------- Members of Crystal Chant Limited will hold their final meeting on Aug. 16, 2011, at 2:30 p.m., at Unit 511, 5/F, Tower 1, Silvercord, at 30 Canton Road, Tsimshatsui, in Kowloon, Hong Kong. At the meeting, Ho Man Kit and Kong Sau Wai, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. EDWIN CHENG: Creditors' Proofs of Debt Due August 15 ---------------------------------------------------- Creditors of Edwin Cheng Foundation Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Aug. 15, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 27, 2011. The company's liquidator is: Ng Kin Yung Tony 6/F., Greenwich Centre 260 King's Road North Point, Hong Kong EXCESSWAY INVESTMENT: Members' Final Meeting Set for August 16 -------------------------------------------------------------- Members of Excessway Investment Limited will hold their final general meeting on Aug. 16, 2011, at 11:00 a.m., at 62/F, One Island East, 18 Westlands Road, Island East, in Hong Kong. At the meeting, Stephen Liu Yiu Keung and David Yen Ching Wai, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. GRAND SILVER: Creditors' Proofs of Debt Due August 15 ----------------------------------------------------- Creditors of Grand Silver International Management Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Aug. 15, 2011, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 5, 2011. The company's liquidator is: Sung Mi Yin Suite No. A, 11th Floor Ritz Plaza, 122 Austin Road Tsimshatsui, Kowloon Hong Kong HK DIGESTIVE: Placed Under Voluntary Wind-Up Proceedings -------------------------------------------------------- At an extraordinary general meeting held on June 24, 2011, creditors of The Hong Kong Digestive Foundation resolved to voluntarily wind up the company's operations. The company's liquidator is: Chu King Hei Victor Rooms 905-909, Yu To Sang Building 37 Queen's Road Central, Hong Kong KASON DEVELOPMENT: Creditors' Meeting Set for July 26 ----------------------------------------------------- Creditors of Kason Development Limited will hold their meeting on July 26, 2011, at 11:00 a.m., for the purposes provided for in Sections 241, 242, 243, 244, 251 and 255A of the Companies Ordinance. The meeting will be held at 602 The Chinese Bank Building, 61-65 Des Voeux Road, Central, in Hong Kong. MF ASSET: Briscoe and Wong Step Down as Liquidators --------------------------------------------------- Stephen Briscoe and Wong Teck Meng stepped down as liquidators of MF Asset Management Hong Kong Limited on July 5, 2011. NORTHERN STAR: Members' Final Meeting Set for August 15 ------------------------------------------------------- Members of Northern Star International Group Hong Kong Limited will hold their final meeting on Aug. 15, 2011, at 11:00 a.m., at Rooms 1801-05, Hua Qin International Building, 340 Queen's Road, Central, in Hong Kong. At the meeting, Lee Robin Miao, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ORIENT KING: Members' Final Meeting Set for August 22 ----------------------------------------------------- Members of Orient King Limited will hold their final meeting on Aug. 22, 2011, at 11:30 a.m., at 17th Floor, Shun Kwong Commercial Building, No. 8 Des Voeux Road West, Sheung Wan, in Hong Kong. At the meeting, Liu, Wing ting, Stephen, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SAN SHAN: Kenny King Ching Tam Steps Down as Liquidator ------------------------------------------------------- Kenny King Ching Tam stepped down as liquidator of San Shan Rhone Group Limited on June 28, 2011. ========= I N D I A ========= AB&CO GLOBAL: CRISIL Puts 'BB-' Rating on INR50MM Letter of Credit ------------------------------------------------------------------ CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to the bank facilities of AB&Co Global Pvt Ltd. Facilities Ratings ---------- ------- INR50-Mil. Letter of Credit CRISIL BB-/Stable (Assigned) INR300-Mil. Letter of Credit CRISIL A4+ (Assigned) INR150-Mil. Proposed Short-Term CRISIL A4+ (Assigned) Bank Loan Facility The ratings reflect ABC's moderate financial risk profile, marked by small net worth and high dependence on external funding. This weakness is partially offset by ABC's established supplier and customer relationship. Outlook: Stable CRISIL expects ABC to maintain stable business and financial risk profiles in the medium term, on the back of experience of promoters along with established relations with suppliers & customers. The outlook may be revised to 'Positive' if the company reports higher than expected growth in revenues and profitability while maintaining its debt protection metrics. The outlook may be revised to 'Negative' in case of slowdown in ABC revenue growth or significant deterioration in its debt protection metrics. About AB&Co Global ABC incorporated in 2007,is a private limited company that trades in various products such as mild steel ingots, angles, plates, rounds, cotton fabrics, yarn, vitrified tiles, and copper, depending on demand and customer requirement. The company imports the products from suppliers in China, Turkey, and the UAE and sells in the domestic market. Its customers mainly comprise domestic engineering, chemical and textile companies. The company is managed by Mr. Natwar Agarwal and his brother Mr. Sunil Agarwal. The company's registered office is in Mumbai. ABC reported profit after tax (PAT) of INR5.43 million on sales of INR854.7 million for 2010-11 on provisional basis (refers to financial year, April 1 to March 31), against a PAT of INR3.44 million on sales of INR587.5 million for 2009-10. ADMACH AUTO: CRISIL Assigns 'BB+' Rating to INR40.4MM Term Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB+/Stable' rating to the bank facilities of Admach Auto Industries (I) Pvt Ltd. Facilities Ratings ---------- ------- INR40.4 Million Medium Term Loan CRISIL BB+/Stable (Assigned) INR50.0 Million Cash Credit CRISIL BB+/Stable (Assigned) INR7.5-Mil. Standby Line of Credit CRISIL BB+/Stable (Assigned) INR22.1 Million Proposed LT Bank CRISIL BB+/Stable (Assigned) Loan Facility The ratings reflect Admach's established presence in the brakes system components business supported by extensive experience of promoters and moderate financial risk profile. These strengths are partially offset by susceptibility of its margins to pricing pressures and volatility in raw material prices and moderate scale of operations in the highly fragmented automotive components industry. Outlook: Stable CRISIL believes that Admach will benefit over the medium term from its promoters' extensive experience and established relationships with suppliers and customers. The outlook may be revised to 'Positive' if the company is able to increase its scale of operations while maintaining its operating margin, or in case of significant improvement in net worth, on the back of equity infusion by promoters. Conversely, the outlook may be revised to 'Negative' if larger-than-expected working capital requirements or lower-than-expected off-take from the proposed capex, adversely affects the company's financial risk and liquidity profile. About Admach Auto Incorporated in 1993, Admach was promoted by Mr. Manoj Tantia and Mr. S S Jain. It manufactures backing plates, brake shoes, and drum back plates for two wheelers, passenger cars, and commercial vehicles. The company's two manufacturing plants in Faridabad (Haryana) and Chennai have the capacity to manufacture 25 million pieces per annum. The company plans to increase its manufacturing capacity by 4.5 million pieces per day in Chennai by installing six new machines for an estimated cost of INR40 million; 75 per cent of the cost would be funded by debt while the remainder will be funded by the promoters . The incremental capacity is expected to be operational by December 2011. Admach, on a provisional basis, reported a profit after tax (PAT) of INR14.6 million on sales of INR344.2 million for 2010-11 (refers to financial year, April 1 to March 31), against a PAT of INR8.9 million on sales of INR231.9 million for 2009-10. EMERGENCY MEDICAL: CRISIL Puts 'D' Rating on INR25MM Cash Credit ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL D' rating to the bank facilities of Emergency Medical Care Hospital. Facilities Ratings ---------- ------- INR25.0 Million Cash Credit CRISIL D (Assigned) INR58.8 Million Rupee Term Loan CRISIL D (Assigned) The rating reflects instances of delay by EMCH in servicing its debt; the delays have been caused the hospital's weak liquidity. EMCH also has a weak financial risk profile, marked by small net worth and high gearing, small scale of operations, and geographic concentration. These rating weaknesses are partially offset by EMCH's comfortable operating margin and moderate debt protection metrics. EMCH was set up in 2003 by Mr. Pawan Arora. The firm has set up a 235-bed (210 operational) multi-speciality hospital in Amritsar (Punjab). It has three units; all are multi-speciality hospitals and in Amritsar. EMCH provides tertiary healthcare services in multi-speciality areas with a focus on gastroenterology, neurology, orthopaedics, and general surgery in the first two units. In May 2008, the management acquired the third unit on lease with a focus on cardiology. EMCH has also bagged an approval for providing a Diploma in National Board (DNB). The eight-seat medical college proposes to commence the diploma in 2011-12. EMCH reported a profit after tax (PAT) of INR3.3 million on net sales of INR100 million for 2009-10 (refers to financial year, April 1 to March 31), as against a PAT of INR2.7 million on net sales of INR61 million for 2008-09. FASTLANE DISTRIPARKS: CRISIL Cuts Rating on INR1.1BB LT Loan ------------------------------------------------------------ CRISIL has downgraded its rating on Fastlane Distriparks & Logistics Ltd's long-term bank facilities to 'CRISIL D' from 'CRISIL BB/Stable'. Facilities Ratings ---------- ------- INR1100 Million Long-Term Loans CRISIL D (Downgraded from 'CRISIL BB/Stable') The downgrade follows the delays by Fastlane in servicing its interest payment obligations. The company's ongoing Container Freight Station (CFS) project near Jawaharlal Nehru Port in Navi Mumbai (Maharashtra) has not been completed as scheduled, affecting cash flow generation and hence the company's liquidity. However, the company has started generating small revenues through warehousing activity since January 2011. Fastlane is currently rescheduling its term loan repayments; these are pending approval from lenders. Fastlane remains exposed to volatility in export-import trade, to intense competition among CFS operators at JN Port, and to competition from other ports to JNPT. Fastlane, however, benefits from its parent, SKIL infrastructure Ltd's experience in setting up infrastructure projects. About Fastlane Distriparks Fastlane is developing the CFS at a distance of 12.5 kilometres from JNPT. Spread over 73 acres, the CFS includes a covered warehousing area, and will have a capacity of handling 400,000 twenty-foot-equivalent units per annum. The CFS activities, which were expected to commence by June 2010 is delayed and expected to start by June 2012. The company has however started generating small revenues through warehousing activity since January 2011. Horizon Country Wide Logistics Ltd (Horizon) holds a 52 per cent stake in Fastlane. Horizon, in turn, is a subsidiary of SKIL, promoted by Mr. Nikhil Gandhi. SKIL's principal business is infrastructure development. SKIL developed India's first private sector port at Pipavav in 1990, Pipavav Railway Corporation Ltd as a joint venture with the Ministry of Railways in 1999, and Pipavav Shipyard Ltd in 1997. The project cost for developing the CFS is estimated at INR1.86 billion, to be funded in a debt-to-equity ratio of 1.5:1. The promoters and other financial investors have brought in INR741.8 million of equity and raised INR 660.0 million of term loans for the project as on March 31, 2011. GREEN VALLIEY: CRISIL Assigns 'D' Rating to INR1.3BB Term Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL D' rating to the long-term bank facilities of Green Valliey Industries Ltd. Facilities Ratings ---------- ------- INR1.3 Billion Term Loan CRISIL D (Assigned) INR250 Million Cash Credit CRISIL D (Assigned) The rating reflects instances of delay by GVIL in servicing its debt obligations; the delays have been caused by the company's weak liquidity. GVIL is also exposed to vulnerability to cyclicality in cement industry. This rating weakness is partially offset by benefits that GVIL derives from the high demand and fiscal incentives offered to players operating in North East India. About Green Valliey GVIL is a part of the GNG group based in Kolkata (West Bengal) that trades minerals such as iron ore fines, chrome, manganese, and limestone. GVIL manufactures ordinary portland cement (OPC) and portland pozzolana cement (PPC) grade cement in Nongsning Village, Meghalaya. The plant started commercial operations from February 2011 and has total installed capacity of 0.5 million tonnes per annum, including a 12-megawatt DG power set. The total project cost was around INR2520 million, funded through term loan of INR1300 million, promoter's equity of INR580 million, and unsecured loans of INR640 million. HUMA ENTERPRISES: CRISIL Places 'BB-' Rating on INR50M Cash Credit ------------------------------------------------------------------ CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to the bank facilities of Huma Enterprises & Consultants Pvt Ltd. Facilities Ratings ---------- ------- INR50.0 Million Cash Credit CRISIL BB-/Stable (Assigned) INR50.0 Million Proposed Cash CRISIL BB-/Stable (Assigned) Credit Limit INR150.0 Million Bank Guarantee CRISIL A4+ (Assigned) INR50.0 Million Proposed Bank CRISIL A4+ (Assigned) Guarantee INR100.0 Million Proposed Letter CRISIL A4+ (Assigned) of Credit The ratings reflect the benefits that Huma derives from its promoter's industry experience, moderate order book position, and above-average financial risk profile, marked by low gearing and strong debt protection metrics. These strengths are partially offset by Huma's large working capital requirements and the vulnerability of its margins to volatility in raw material prices. Outlook: Stable CRISIL believes that Huma will maintain its business risk profile over the medium term, supported by its promoters' industry experience and moderate order book. Its large working capital requirements will, however, constrain its liquidity. The outlook may be revised to 'Positive' in case the company substantially improves its scale of operations and profitability while maintaining its comfortable capital structure, or if there is improvement in its liquidity, due to improvement in its working capital management. Conversely, the outlook may be revised to 'Negative' in case Huma's order flow is impacted by a decline in its topline and cash accruals, or in case of a further stretch in its receivables, resulting in deterioration in its financial risk profile, particularly its liquidity. About Huma Enterprises Huma was incorporated in 2002, promoted by Mr. Niyaz Ahmed Khan. The company undertakes turnkey erection and commission of structures for power transmission and distribution lines and sub- stations. The company, located in Guwahati (Assam), was initially a sub-contractor executing similar small size projects in North East India. It began participating in large contracts in 2007. The company is also into power trading, but on a small scale. Huma is expected to report a profit after tax (PAT) of INR44 million on net sales of INR1002 million for 2010-11 (refers to financial year, April 1 to March 31), against a PAT of INR35 million on net sales of INR793 million for 2009-10. INDIAN BANK: Fitch Assigns 'C/D' Individual Rating -------------------------------------------------- Fitch Ratings has assigned Indian Bank's foreign currency senior unsecured notes, to be issued under its proposed USD1 billion medium term notes (MTN) programme, an expected rating of 'BBB- (exp)'. The final rating is contingent on the receipt of final documents conforming to information already received. IB is a government bank with over 1,860 branches across India, one branch in Singapore and two in Sri Lanka. It has a particularly strong presence in Tamil Nadu. IB's other ratings are: -- Long-Term Foreign Currency Issuer Default Rating: 'BBB-'; Outlook Stable -- Short-term Foreign Currency Issuer Default Rating: 'F3' -- Support Rating Floor: 'BB+' -- National Long-term rating: 'AA+(ind)'; Outlook Stable -- National Short-term rating: 'F1+(ind)'. -- Individual rating: 'C/D' -- Support rating: '3' -- INR80bn certificate of deposit programme: 'F1+(ind)' -- INR3bn lower tier 2 subordinated debt programme: 'AA+(ind)' INDIAN BANK: S&P Rates Upper Tier II & Hybrid Tier I Notes 'BB' --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its issue ratings to the proposed notes under the $1 billion medium-term notes (MTN) program by Indian Bank (BBB-/Stable/A-3): 'BBB-' to the senior unsecured notes. 'BB+' to the lower Tier II subordinated notes. 'BB' to the upper Tier II subordinated notes. 'BB' to the perpetual hybrid Tier I notes. The lower Tier II subordinated notes will have a minimum maturity of five years unless issued between Jan. 1 and March 31 of any year, in which case the maturity will be 63 months. The upper Tier II subordinated notes will have a minimum maturity of 15 years. The senior unsecured notes will constitute direct, unconditional, unsecured, and unsubordinated obligations of Indian Bank. They will rank pari passu with all of the bank's unsecured and unsubordinated obligations. The subordinated notes will rank below the senior notes. The upper Tier II notes will be further subordinated to the lower Tier II notes. The hybrid Tier I notes will rank below the senior and subordinated notes but above the claims of preference and equity shareholders. "We equalized the rating on the program's senior unsecured debt to the counterparty credit rating on Indian Bank. The rating differential between the senior unsecured notes and the lower Tier II subordinated notes reflects the subordinated nature of the notes. The 'BB' rating on the upper Tier II subordinated notes and the hybrid Tier I notes reflects the subordinated nature of these notes and the embedded interest deferral option on these notes," S&P related. The interest deferral feature is linked to Indian Bank complying with the capital to risk (weighted) assets ratio (CRAR) requirement and passing a profit test. The profit test is, in turn, linked to the balance in the profit and loss account in the reserves and surplus section of a bank's balance sheet. A net loss is defined as a negative balance in this account. Indian Bank will require the Reserve Bank of India's permission to pay interest on the upper Tier II and hybrid Tier I notes if it meets the CRAR requirement but reports a net loss. On the other hand, skipping interest payments is mandatory for the upper Tier II notes and optional for hybrid Tier I notes if the bank doesn't meet the CRAR requirement and reports a net loss. "We consider the hybrid Tier I notes to have intermediate-strong equity content. We will, therefore, give the notes equity credit up to 33% of the bank's adjusted common equity," S&P said. Index-linked notes may be issued from the program. Under Standard & Poor's rating criteria, it does not rate the bonds if principal payments are linked to fluctuations in equity or commodity prices, or equity or commodity indices. JINDAL INDIA: Fitch Rates INR1.55B LT Bank Loans at 'BB(ind)' ------------------------------------------------------------- Fitch Ratings has assigned India-based Jindal India Thermal Power Ltd's additional sub debt these ratings: -- Phase II INR1,550m long-term subordinated bank loans: 'BB(ind)'; Outlook Stable; and -- Phase III INR1,580m long term subordinated bank loans: 'BB(ind)'; Outlook Stable. The rating reflects the subordinated status of the junior loans, however the differential to the senior loans is limited to one notch as the size of the junior tranche is small. KALYANPUR CEMENT: Fitch Downgrades INR1.17B NCDs to 'D(ind)(exp)' ----------------------------------------------------------------- Fitch Ratings has downgraded India-based Kalyanpur Cement Limited's INR1,173 million zero coupon NCDs to 'D(ind)(exp)' from 'C(ind)(exp)' to reflect the agency's assessment that the company has undergone a coercive debt exchange. Simultaneously, the agency has re-assigned KCL a final rating of 'C(ind)' to reflect its post-restructuring credit profile. The downgrade reflects Fitch's treatment of KCL's financial restructuring with its lender -- Vivid Colors Limited (VCL, a strategic investor and shareholder of the company) as "coercive" in line with its criteria on treatment of such restructurings. The agency notes that the restructuring has not resulted in a significant impairment of contractual terms for the creditors, with the revised terms envisaging an extension in maturity. However, in Fitch's view the restructuring was essential for KCL to avoid a liquidity crunch and would have otherwise resulted in a default on its debt obligations. The agency has therefore treated the restructuring as an effective default. Fitch has simultaneously re-assigned KCL a 'C(ind)' rating to reflect that post the successful restructuring KCL's credit profile benefits from an extended repayment schedule. The restructuring reflects the deterioration in KCL's operating performance during the financial year ended March 31, 2011 (FY11). The company incurred operating losses in FY11 due to pressure on its realizations and increased input cost. Its realization per tonne declined to INR3,100 in FY11 from INR3,438 in FY10. Further, Fitch expects KCL's operating performance to be under pressure due to capacity additions and rising input costs. Positive rating guidelines include an improvement in KCL's liquidity position and/ or in its operating performance. KCL is into manufacturing of cement with annual capacity of 1MT. In FY11, KCL has earned revenue of INR2,376 million (FY10: INR2,324 million), with EBITDA of INR19.6 million (FY10: INR197.5 million). The total liabilities on its books were INR2,291 million at end-FY11. KHARVEL SALES: CRISIL Rates INR70MM Cash Credit at 'B' ------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable/ CRISIL A4' ratings to the bank facilities of Kharvel Sales Pvt Ltd. Facilities Ratings ---------- ------- INR70 Million Cash Credit CRISIL B/Stable (Assigned) INR18 Million Letter of Credit CRISIL A4 (Assigned) The ratings reflect KSPL's weak financial risk profile, marked by a small net worth, high gearing, low profitability, and weak debt protection metrics, and working-capital-intensive operations. These rating weaknesses are partially offset by the extensive experience of KSPL's promoters in trading spare parts of water pump sets, diesel engines, and generators. Outlook: Stable CRISIL believes that KSPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company's liquidity improves - along with sustained improvement in financial risk profile - through better inventory management or infusion of equity by its promoters. Conversely, the outlook may be revised to 'Negative' in case of further deterioration in KSPL's liquidity, driven by increasing working capital requirements or significant debt-funded capital expenditure plans. About Kharvel Sales Incorporated in 2008, KSPL trades spare parts of pump sets, diesel engines, and generator sets. The company's promoters have been in a similar line of business since 2000. KSPL purchases spares parts from around 20 traders, importers, and manufacturers and sells the same to around 40 dealers in West Bengal. On an average, the company maintains inventory of around three months. KSPL also gets spare parts manufactured on jobwork basis. The company's day-to- day operations are managed by its promoter-directors Mr. Bhupendra Kamdar and Mr. Bhaven Kamdar. KSPL reported a profit after tax (PAT) of INR0.53 million on net sales of INR435 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR0.46 million on net sales of INR309 million for 2009-10. NORTECH POWER: CRISIL Assigns 'C' Rating to INR70MM Cash Credit --------------------------------------------------------------- CRISIL has assigned its 'CRISIL C/CRISIL A4' ratings to the bank facilities of Nortech Power Projects Pvt Ltd. Facilities Ratings ---------- ------- INR70 Million Cash Credit CRISIL C (Assigned) INR750 Million Bank Guarantee CRISIL A4 (Assigned) The ratings reflect Nortech's poor liquidity, which have led to delays in servicing of its debt (facility not rated by CRISIL), geographic concentration in its revenue profile, small scale of operations, and limited project diversity. These weaknesses are partially offset by the extensive experience of Nortech's promoters in the hydroelectric power industry. About Nortech Power Nortech is part of the Kolkata-based GNG group, which trades in minerals such as iron ore fines, chrome, manganese, and limestone. It undertakes engineering, procurement, and commissioning contracts in the power and infrastructure sectors of north eastern India. The company focuses on hydropower generation projects of different ranges. These projects range from 5 to 10,000 kilowatts. Nortech reported a profit after tax (PAT) of INR13.7 million on sales of INR595.6 for 2009-10 (refers to financial year, April 1 to March 31), against a PAT of INR5.2 million on sales of INR145.7 for 2008-09. PADMAVATI PULP: CRISIL Assigns ' B+' Rating to INR58.4MM Term Loan ------------------------------------------------------------------ CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank facilities of Padmavati Pulp and Paper Mills. Facilities Ratings ---------- ------- INR58.4 Million Term Loan CRISIL B+/Stable (Assigned) INR40 Million Cash Credit CRISIL B+/Stable (Assigned) INR91.6 Million Proposed LT CRISIL B+/Stable (Assigned) Bank Loan Facility The rating reflect Padmavati Pulp and Paper Mills' modest financial risk profile which is partially offset by the extensive experience of Padmavati Pulp and Paper Mills' promoters in the kraft paper manufacturing business. Outlook: Stable CRISIL expects Padmavati Pulp and Paper Mills to maintain its business and financial risk profiles in the medium term, on the back of extensive experience of promoters in the kraft paper manufacturing industry. The outlook may be revised to 'Positive' if the company reports substantial growth in scale of operations while maintaining its profitability, capital structure and debt protection indicators. Conversely, the outlook may be revised to 'Negative' in case of slowdown in Padmavati Pulp and Paper Mills' revenue or significant deterioration in its profitability, capital structure and debt protection indicators. About Padmavati Pulp Padmavati Pulp and Paper Mills is a partnership firm engaged in manufacturing of kraft paper which is used for making corrugated boxes. The firm was established in 2007 by Mr. Jayantilal Dedhia and his family. Mr. Jayantilal Dedhia currently looks after the overall operations of the company. The firm's manufacturing facility is located at Ambernath, Maharashtra. The manufacturing capacity is 100 MT per day. Padmavati Pulp and Paper Mills reported a profit after tax (PAT) of INR 3.47 million on net sales of INR 415 million (provisional figures) for 2010-11 (refers to financial year, April 1 to March 31), against a PAT of INR 2.64 million on net sales of INR 240 million for 2009-10. RASAA FOODS: CRISIL Assigns 'D' Rating to INR60 Million LT Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL D' rating to the long-term bank facilities of Rasaa Foods Pvt Ltd. Facilities Ratings ---------- ------- INR20.00 Million Cash Credit CRISIL D (Assigned) INR60.00 Million Long-Term Loan CRISIL D (Assigned) The rating reflects instances of delay by RFPL in servicing its debt; the delays have been caused by the company's weak liquidity. RFPL also has limited revenue diversity, small scale of operations, and is susceptible to variation in fruit yields. However, RFPL has a stable business risk profile, supported by tie-ups with Parle Agro Pvt Ltd (Parle) and other key customers for offtake of its products. RFPL was incorporated in 2005 and promoted by Mr. Venkataramana Reddy. The company is based in Tamil Nadu. RFPL makes mango pulp on job-work basis, primarily for Parle and Capricorn Food Products Pvt Ltd. RFPL has installed capacity of 18,000 tonnes per annum. The company plans to set up a bottling unit (for manufacturing ready-to-drink items) for a total cost of about INR50 million by April 2012. The company's promoter also owns two concerns, SVR Fruit Company and Indian Shipping Services, which trade in mangoes, and provide clearing and forwarding services to bulk exporters of mangoes. RFPL's profit after tax (PAT) and net sales for 2010-11 (refers to financial year, April 1 to March 31) are estimated at INR19 million and INR50 million respectively. RFPL reported a PAT of INR20 million on net sales of INR69 million for 2009-10, as against a PAT of INR2 million on net sales of INR16 million for 2008-09. SOVEREIGN DIAMONDS: CRISIL Assigns 'BB-' Rating to INR135MM Credit ------------------------------------------------------------------ CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to the bank facilities of Sovereign Diamonds Ltd. Facilities Ratings ---------- ------- INR135 Million Cash Credit CRISIL BB-/Stable (Assigned) INR5 Million Bill Discounting CRISIL A4+ (Assigned) The ratings reflect SDL's modest financial risk profile, marked by moderate net worth and average debt protection metrics and modest scale of operations. This rating weakness is partially offset by the established position of the company's promoters in the diamond trading and jewellery business. Outlook: Stable CRISIL believes that Sovereign Diamonds Ltd. (SDL), will continue to benefit over the medium term from its promoters' extensive experience in the studded diamond jewellery business. The outlook may be revised to 'Positive' if SDL reports significantly higher than-expected growth in revenues and margins, while maintaining its debt protection metrics. Conversely, the outlook may be revised to 'Negative' if the company's debt protection metrics deteriorate or the company faces significant deterioration in its working capital cycle or a sharp decline in margins. About Sovereign Diamonds SDL, listed on Bombay Stock Exchange (BSE), was set up in 1974 by the Mumbai-based Gehani family. SDL manufactures 18-carat diamond studded jewellery. Its customer base includes jewellery houses such as Tribhovandas Bhimji Zaveri, Notandas Jewellers Pvt Ltd and Prince Jewellers. SDL's manufacturing facilities are located at Andheri (Mumbai, Maharashtra). Mr. Ajay Gehani is Managing Director of SDL. SDL reported a profit after tax (PAT) of INR2.1 million on net sales of INR195.4 million for 2010-11 on provisional basis (refers to financial year, April 1 to March 31), as against a PAT of INR0.2 million on net sales of INR127.8 million for 2009-10. SUCHI FASTENERS: CRISIL Rates INR28.8MM Term Loan at 'BB-' ---------------------------------------------------------- CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to the bank facilities of Suchi Fasteners Pvt Ltd, part of Suchi group. Facilities Ratings ---------- ------- INR28.8 Million Term Loan CRISIL BB-/Stable (Assigned) INR74.0 Million Cash Credit CRISIL BB-/Stable (Assigned) INR85.0 Million Letter of Credit CRISIL A4+ (Assigned) INR1.50 Million Bank Guarantee CRISIL A4+ (Assigned) The ratings reflect Suchi group's established track record in the fasteners industry and its satisfactory management of receivables. These strengths are partially offset by the group's below-average financial risk profile, marked by moderate debt protection metrics and small net worth, its large working capital requirements, and small scale of operations. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of SFPL and Suchi Specialty Fasteners (SSF), together referred to as the Suchi group. This is because the companies have common promoters and management, are in the same line of business, and the management intends to merge them over the near term. Outlook: Stable CRISIL believes that Suchi group will maintain its credit risk profile over the medium term, backed by its established track record in the fasteners' industry. The outlook may be revised to 'Positive' in case of any significant equity infusion, leading to improvement in its liquidity. Conversely, the outlook may be revised to 'Negative' in case of a larger-than-expected, debt- funded capex or/and significant decline in its operating margin, leading to further deterioration in its debt protection metrics. About the Group SFPL was founded in 1971 as Nandkarni Metasint Pvt Ltd. It was promoted by Mr. Sadashiv M Nadkarni. In 1980, the company was taken over by Mr. Surendra C Shah. It got its current name in 1985. SFPL is currently managed by Mr. Surendra C Shah and his family. SFPL manufactures and exports stainless steel washers, fasteners, nuts, and bolts. Stainless steel washers account for around 90 per cent of its revenues, while nuts, bolts, and other fasteners account for the remainder. These products find application in a wide range of industries, including automobile, aerospace, power, infrastructure, and furniture. The company has two manufacturing units, one in Dabhoi (Gujarat) and another in a Special Economic Zone in Surat (Gujarat). Both the units have an installed capacity of 150 tonnes per month. SSF, a 100-per-cent export-oriented unit in SEZ in Surat is in similar line of business. SFPL is expected to report a profit after tax (PAT) of INR5.1 million on operating income of INR361 million for 2010-11 (refers to financial year, April 1 to March 31), as against loss of INR7.2 million on operating income of INR259 million for 2009-10. * INDIA: Fitch Affirms, Withdraws Ratings of Select Banks --------------------------------------------------------- Fitch Ratings has affirmed and simultaneously withdrawn the Individual and Support Ratings of select Indian banks. These ratings are no longer considered by Fitch to be relevant to its coverage. The agency will however continue to maintain National ratings of these banks. Union Bank of India's 'BBB-' Long-Term Issuer Default Rating (IDR) and Support Rating Floor have also been affirmed and withdrawn. Fitch will no longer provide ratings or analytical coverage of Corporation Bank. A full list of all ratings actions is provided below. Allahabad Bank (ALLB) -- National Long-term Rating: 'AA(ind)'; Outlook Positive -- Subordinated lower tier 2 debt rating: 'AA(ind)' -- Individual Rating affirmed at 'C/D'; rating withdrawn -- Support Rating affirmed at '3'; rating withdrawn Andhra Bank (ANBA) -- National Long-Term rating: 'AA+(ind)'; Outlook Stable -- National Short-Term rating: 'F1+(ind)' -- Subordinated lower Tier 2 debt rating: 'AA+(ind)' -- Short-term certificates of deposit rating: 'F1+(ind)' -- Individual Rating affirmed at 'C/D'; rating withdrawn -- Support Rating affirmed at '3'; rating withdrawn Catholic Syrian Bank Ltd. (CSB) -- National Long-Term rating: 'BBB(ind)'; Outlook Stable -- Subordinated lower tier 2 debt rating: 'BBB(ind)' -- Individual Rating affirmed at 'D/E'; rating withdrawn -- Support Rating affirmed at '5'; rating withdrawn City Union Bank Ltd. (CUB) -- National Long-Term rating: 'A(ind)'; Outlook Positive -- Subordinated lower tier 2 debt rating: 'A(ind)' -- Individual Rating affirmed at 'D'; rating withdrawn -- Support Rating affirmed at '5'; rating withdrawn Corporation Bank (CORP) -- Individual Rating affirmed at 'C/D'; rating withdrawn -- Support Rating affirmed at '3'; rating withdrawn Dena Bank (DENA) -- National Long-Term rating: 'AA-(ind)'; Outlook Stable -- National Short-Term rating: 'F1+(ind)' -- Subordinated lower tier 2 debt rating: 'AA-(ind)' -- Subordinated upper tier 2 debt rating: 'A-(ind)' -- Perpetual tier 1 debt rating: 'A-(ind)' -- Short-term certificates of deposit rating: 'F1+(ind)' -- Individual Rating affirmed at 'D'; rating withdrawn -- Support Rating affirmed at '3'; rating withdrawn Development Credit Bank Limited (DCB) -- National Long-Term rating: 'BBB(ind)'; Outlook Stable -- Subordinated lower tier 2 debt rating: 'BBB(ind)' -- Individual Rating affirmed at 'D/E'; rating withdrawn -- Support Rating affirmed at '5'; rating withdrawn Dhanlaxmi Bank (DHAN) -- National Long-Term rating: 'BBB(ind)'; Outlook Positive -- Subordinated lower tier 2 debt rating: 'BBB(ind)' -- Individual Rating affirmed at 'D/E'; rating withdrawn -- Support Rating affirmed at '5'; rating withdrawn Federal Bank Limited (The) (FEDB) -- National Long-Term rating: 'AA-(ind)'; Outlook Stable -- Subordinated lower tier 2 debt rating: 'AA-(ind)' -- Individual Rating affirmed at 'D'; rating withdrawn -- Support Rating affirmed at '5'; rating withdrawn HDFC Bank Ltd. (HDFCB) -- National Long-Term rating: 'AAA(ind)'; Outlook Stable -- National Short-Term rating: 'F1+(ind)' -- Subordinated lower tier 2 debt rating: 'AAA(ind)' -- Short-term certificates of deposit rating: 'F1+(ind)' -- Individual Rating affirmed at 'C'; rating withdrawn -- Support Rating affirmed at '3'; rating withdrawn Indusind Bank Limited (INDB) -- National Long-Term rating: 'AA-(ind)'; Outlook Stable -- National Short-Term rating: 'F1+(ind)' -- Subordinated lower tier 2 debt rating: 'AA-(ind)' -- Subordinated upper tier 2 debt rating: 'A(ind)' -- Individual Rating affirmed at 'D'; rating withdrawn -- Support Rating affirmed at '5'; rating withdrawn ING Vysya Bank (INGV) -- National Long-Term rating: 'AA-(ind)'; Outlook Stable -- Subordinated lower tier 2 debt rating: 'AA-(ind)' -- Individual Rating affirmed at 'D'; rating withdrawn -- Support Rating affirmed at '3'; rating withdrawn Jammu and Kashmir Bank Ltd. (JKB) -- National Long-Term rating: 'AA(ind)'; Outlook Stable -- Subordinated lower tier 2 debt rating: 'AA(ind)' -- Individual Rating affirmed at 'D'; rating withdrawn -- Support Rating affirmed at '3'; rating withdrawn Karur Vysya Bank Limited (The) (KVB) -- National Long-Term rating: 'A+(ind)'; Outlook Stable -- Subordinated lower tier 2 debt rating: 'A+(ind)' -- Individual Rating affirmed at 'D'; rating withdrawn -- Support Rating affirmed at '5'; rating withdrawn Kotak Mahindra Bank Ltd. (KOTAK) -- National Long-Term rating: 'AA+(ind)'; Outlook Stable -- National Short-Term rating: 'F1+(ind)' -- Subordinated lower tier 2 debt rating: 'AA+(ind)' -- Subordinated upper tier 2 debt rating: 'AA(ind)' -- Individual Rating affirmed at 'C/D'; rating withdrawn -- Support Rating affirmed at '5'; rating withdrawn Lakshmi Vilas Bank (LVB) -- National Long-Term rating: 'BBB+(ind)'; Outlook Stable -- National Short-Term rating: 'F2+(ind)' -- Subordinated lower tier 2 debt rating: 'BBB+(ind)' -- Individual Rating affirmed at 'D/E'; rating withdrawn -- Support Rating affirmed at '5'; rating withdrawn South Indian Bank (The) (SIB) -- National Long-Term rating: 'A+ (ind)'; Outlook Stable -- Subordinated lower tier 2 debt rating: 'A+(ind)' -- Individual Rating affirmed at 'D'; rating withdrawn -- Support Rating affirmed at '5'; rating withdrawn Union Bank of India (UNION) -- National Long-Term rating: 'AA+(ind)'; Outlook Stable -- Subordinated lower tier 2 debt rating: 'AA+(ind)' -- Subordinated upper tier 2 debt rating: 'AA(ind)' -- Perpetual tier 1 debt rating: 'AA(ind)' -- Long-term Issuer Default Rating affirmed at 'BBB-'; Outlook Stable; rating withdrawn -- Individual Rating affirmed at 'C/D'; rating withdrawn -- Support Rating affirmed at '2'; rating withdrawn -- Support Rating Floor affirmed at 'BBB-'; rating withdrawn UCO Bank (UCO) -- National Long-Term rating: 'AA(ind)'; Outlook Stable -- Subordinated lower tier 2 debt rating: 'AA(ind)' -- Subordinated upper tier 2 debt rating: 'A(ind)' -- Perpetual tier 1 debt rating: 'A(ind)' -- Individual Rating affirmed at 'D'; rating withdrawn -- Support Rating affirmed at '3'; rating withdrawn Vijaya Bank (VIJ) -- National Long-Term rating: 'AA(ind)'; Outlook Negative -- Subordinated lower tier 2 debt rating: 'AA(ind)' -- Subordinated upper tier 2 debt rating: 'AA-(ind)' -- Individual Rating affirmed at 'C/D'; rating withdrawn -- Support Rating affirmed at '3'; rating withdrawn ================= I N D O N E S I A ================= * INDONESIA: Fitch Withdraws Individual Ratings of 7 Banks ---------------------------------------------------------- Fitch Ratings has affirmed and simultaneously withdrawn eight Indonesian banks' Support ratings and seven Individual ratings. This is because these ratings are no longer considered by Fitch to be relevant to the agency's coverage. Fitch continues to maintain National Long-Term ratings of these banks. PT Bank Commonwealth: -- Individual rating affirmed at 'D'; rating withdrawn -- Support rating affirmed at '3'; rating withdrawn PT ANZ Panin Bank: -- Individual rating affirmed at 'D'; rating withdrawn -- Support rating affirmed at '3'; rating withdrawn PT Bank Mayapada Internasional Tbk: -- Individual rating affirmed at 'D/E'; rating withdrawn -- Support rating affirmed at '5'; rating withdrawn PT Bank Victoria International Tbk: -- Individual rating affirmed at 'D/E'; rating withdrawn -- Support rating affirmed at '5'; rating withdrawn PT Bank Pembangunan Daerah Riau Kepri: -- Support rating affirmed at '4'; rating withdrawn PT Bank Mega Tbk: -- Individual rating affirmed at 'D'; rating withdrawn -- Support rating affirmed at '4'; rating withdrawn PT Bank Tabungan Negara Tbk: -- Individual rating affirmed at 'D'; rating withdrawn -- Support rating affirmed at '3'; rating withdrawn PT Bank Tabungan Pensiunan Nasional Tbk: -- Individual rating affirmed at 'D'; rating withdrawn -- Support rating affirmed at '4'; rating withdrawn ==================== N E W Z E A L A N D ==================== HURLSTONE GROUP: Appoints Ferrier Hodgson as Receivers ------------------------------------------------------ On July 13, 2011, Peter Gothard and Ryan Eagle of Ferrier Hodgson were appointed receivers and managers of Hurlstone Earthmoving Limited, Hayes Earthmoving Services Limited, New Zealand Pollution Engineering Limited and River Island Shingle Company Limited pursuant to the provisions contained in a general security agreement granted by the Companies in favor of GE Finance and Insurance. Following an assessment of the viability of the Companies' operations, the receivers and managers decided to cease trading effective from July 13, 2011. Hurlstone Earthmoving Limited -- http://www.hurlstone.co.nz/-- is a New Zealand-based contracting company. The company provides bulk earthworks and land development; construction of pipelines, roads and pavements; underground cabling; mobile crushing; land clearing; quarry stripping and heavy transport services. STEVE ROUT: Owes More Than NZ$11 Million to Creditors ----------------------------------------------------- Tracey Roxburgh at Otago Daily Times reports that Steve Rout Contracting Ltd owes more than NZ$11 million to known creditors, with it being "unlikely" any funds would be available for unsecured creditors, according to the first receivers' report from BDO Christchurch. Otago Daily relates that receivers Stephen Tubbs and Colin Gower, in a report dated May 3 to July 2, 2011, said the Frankton-based company was placed in receivership "following default in terms of a demand" and at the request of the director, Steve Rout. Unsecured trade creditors were owed NZ$2,120,138, the report notes. According to Otago Daily, the receivers' report said the company's principal assets were earthmoving plant and machinery, a commercial truck and motor vehicle fleet and all ancillary parts required to operate a civil engineering and earthmoving business in the Lakes district. The value of the assets had been withheld as it was "commercially sensitive given the current public tender for their sale," Otago Daily notes. Otago Daily adds that the residual assets were offered for sale by public tender, which closed on July 8. "The business and assets of the company were offered for sale as a going concern prior to the receivers' appointment," Otago Daily relates citing the receivers report. "The receivers were able to conclude a sale for the business and a part of the company's fleet to Blue 9 Ltd at market value. This allowed the receivers to maximise the value of all work in progress, to facilitate completion of contracts." Based in Frankton, New Zealand, Steve Rout Contracting Ltd is an earthmoving contractor, materials supplier and digger hirer. ================= S I N G A P O R E ================= CELESTIAL NUTRIFOODS: Provisional Liquidator Starts Probe --------------------------------------------------------- Yit Chee Wah, the Provisional Liquidator of Celestial Nutrifoods Limited, has taken steps to assert control over the Company's subsidiaries in the British Virgin Islands and the People's Republic of China and commence investigations into the affairs of the subsidiaries. The Company has three immediate wholly owned subsidiaries in the BVI, namely Clear Faith Holdings Limited, Giant Fortune Group Limited and Max Dragon Investments Limited. "Initially, the registered agent of the BVI Subsidiaries refused to recognize the appointment of the Provisional Liquidator pursuant to the Order of the High Court of the Republic of Singapore dated Dec. 24, 2010, and refused to accede to the instructions of the Provisional Liquidator to register a change in the board of directors of the BVI Subsidiaries," the Provisional Liquidator said in a statement to the Singapore Stock Exchange. "In turn, this prevented the Provisional Liquidator from immediately taking action, through the BVI Subsidiaries, to gain control of the subsidiaries located in China. "In order to resolve the situation, the Provisional Liquidator had no alternative but to seek recognition of the Appointment Order from the Supreme Court of Bermuda. The Supreme Court of Bermuda duly recognised the appointment of the Provisional Liquidator on Jan. 31, 2011. "Having changed the composition of the boards of directors of the BVI Subsidiaries, the Provisional Liquidator sought to exercise the powers of the BVI Subsidiaries to change the board of directors and the legal representatives of their Chinese subsidiaries, Daqing Sun Moon Star Co., Ltd, Daqing Celestial Sun Moon Star Protein Co., Ltd and Daqing Weitian Energy Co., Ltd. The Daqing branch of the Administration for Industry & Commerce refused to register the proposed changes on the basis that the PRC Subsidiaries are no longer owned by the BVI Subsidiaries," the Provisional Liquidator explained. In this regard, investigations since undertaken suggest that these share transfers have been registered by the Daqing AIC: * Shares representing 2% of the issued shares of each of the PRC Subsidiaries were transferred to Weihai Zhuozhan Import & Export Co. Ltd. on or around Aug. 11, 2010; * Shares representing 73% of the issued shares of each of the PRC Subsidiaries were transferred to Weihai Guosheng Real Property Development Co. Ltd. on or around Dec. 4, 2010; and * Shares representing 25% of the issued shares of each of the PRC Subsidiaries were transferred to Rui Feng Group Limited on or around Dec. 4, 2010. None of these share transfers have previously been disclosed to the Singapore Exchange by the Company's directors. The Company's Chairman has, upon enquiry by the Provisional Liquidator, since advised that the transfers occurring on or around Dec. 4, 2010, arose as a result of China Construction Bank (the PRC Subsidiaries' primary banker) exercising their collateral rights with respect to the shares in the PRC Subsidiaries upon becoming aware that the Company was to be delisted from the SGX. In this regard, the Provisional Liquidator notes that the existence of share pledges over the shares in the PRC Subsidiaries was also not previously disclosed to the SGX, nor was any default under the loan facilities of China Construction Bank or the enforcement action taken by China Construction Bank. The Provisional Liquidator is currently investigating these share transfers. The Chairman of the Company has commenced communicating information to the Provisional Liquidator in relation to these transfers. The Provisional Liquidator will continue to investigate in this regard and take such action as he deems expedient. The Provisional Liquidator's investigations have also revealed significant transfers to external parties of the Company's cash holdings in the year, and in particular in the six months preceding the appointment of the Provisional Liquidator, at a time when the Company, in the Provisional Liquidator's view, appeared to be insolvent (given the indebtedness to bondholders which was immediately due and payable). In this regard, approximately SGD16.7 million was paid to a company incorporated in the BVI who has not responded to the Provisional Liquidator's correspondence but who, based on the advice of the Company's Chairman, is a supplier to one of the Company's PRC Subsidiaries. The Provisional Liquidator is currently inquiring into these transfers. At this point in time the Provisional Liquidator considers it extremely unlikely that any dividend will be paid to the Company's shareholders. About Celestial Nutrifoods Celestial Nutrifoods Limited, an investment holding company, primarily engages in the manufacture and sale of soybean based food products in the People's Republic of China. On Dec. 24, 2010, the Honourable Justice Lai Siu Chiu appointed Yit Chee Wah of FTI Consulting as provisional liquidator of Celestial Nutrifoods Limited. =========== T A I W A N =========== AMERICAN INTERNATIONAL: FSC Gives Final Approval to Nan Shan Sale ------------------------------------------------------------------ The Taipei Times reports that the Financial Supervisory Commission has approved the purchase of Nan Shan Life Insurance Co by Ruen Chen Investment Holding Co, one month after the regulator gave its conditional approval to the deal. The FSC said in a statement that Ruen Chen, which won the bid in January to acquire American International Group Inc.'s 97.57% stake in Nan Shan for US$2.16 billion, has met the commission's requirements to demonstrate its financial adequacy and long-term commitment, according to the Taipei Times. Last month, The Taipei Times recalls, the commission gave its conditional green light and asked the buyer group to put an extra NT$6 billion (US$208.14 million) in a custodial account, given Nan Shan's weight in the domestic life insurance industry. The commission, according to The Taipei Times, demanded the buyer meet the requirements within 60 days and said the deal would take effect only after the commission had certified that all the requirements had been met. The Taipei Times relates that the FSC said Ruen Chen should put 70% of its Nan Shan shares into trust for 10 years. The buyer group must not terminate or alter the terms of the trust without FSC consent, the commission said. The FSC said Ruen Chen's major stakeholders -- Samuel Yin, chairman of Ruentex Group, Tsai Chi-jui of Pou Chen, and others -- must not borrow from Nan Shan or make the insurer buy equities or real estate from their firms, The Taipei Times notes. In addition, The Taipei Times says, Ruen Chen has to cap its debt ratio at 48% of the acquisition price and lower the debt figure year-by-year, the commission said. It must not enter joint land development ventures with Nan Shan either, the report adds. The Taipei Times says the financial regulator's final approval of the deal brings to an end the US insurer's second bid to sell off its local subsidiary, after AIG failed to sell Nan Shan to a Hong Kong consortium last year due to FSC concerns about the possible involvement of Chinese investors. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 14, 2011, American International Group, Inc. unveiled an agreement to sell its 97.57% interest in Nan Shan Life Insurance Company, Ltd., for $2.16 billion in cash to Ruen Chen Investment Holding Co., Ltd. The purchase agreement includes a number of commitments that offer important protections for employees and agents, including an agreement to maintain the existing compensation and benefits package for employees and the existing agency organizational and commission structure following the closing of the transaction. Ruen Chen has also expressed its intention to retain the current Nan Shan management team, as well as its long-term commitment to maintain both its majority ownership in Nan Shan and the Nan Shan brand. Debevoise & Plimpton LLP and Lee & Li, Attorneys-At-Law served as legal advisors to AIG on this transaction. The transaction is subject to the receipt of regulatory approval. About AIG American International Group, Inc. -- http://www.aig.com/-- is an international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services around the world. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. In September 2008, AIG experienced a liquidity crunch when its credit ratings were downgraded below "AA" levels by Standard & Poor's, Moody's Investors Service and Fitch Ratings. AIG almost collapsed under the weight of bad bets it made insuring mortgage- backed securities. The Company, however, was bailed out by the Federal Reserve, but even after an initial infusion of $85 billion, losses continued to grow. The later rescue packages brought the total to $182 billion, making it the biggest federal bailout in U.S. history. AIG has been working to protect and enhance the value of its key businesses, execute an orderly asset disposition plan, and position itself for the future. AIG has sold a number of its subsidiaries and other assets to pay down loans received from the U.S. government, and continues to seek buyers of its assets. ============= V I E T N A M ============= BANK FOR INVESTMENT: Fitch Affirms, Withdraws Ratings -------------------------------------------------------- Fitch Ratings has affirmed and withdrawn Bank for Investment and Development of Vietnam's (BIDV) Individual 'D/E' Rating and Support '4' Rating. The ratings have been withdrawn because Fitch no longer considers their ratings to be relevant to its coverage. The agency will no longer provide analytical coverage or ratings on the issuer. ********* 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 U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Psyche A. Castillon, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2011. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***