TCRAP_Public/110721.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

            Thursday, July 21, 2011, Vol. 14, No. 143

                            Headlines



A U S T R A L I A

360 CAPITAL: S&P Lowers Ratings on 5 Tranches of Notes to 'CCC'
KALAE PTY: Collapses Amid Underpayment Complains, Fine


C H I N A

CITIC PACIFIC: S&P Cuts Corp. Credit Rating to 'BB+'; Outlook Neg.
SHANGHAI INDUSTRIAL: Moody's Reviews 'B2' CFR For Possible Upgrade
SHANGHAI INDUSTRIAL: S&P Keeps 'B-' Corporate Credit Rating
ZHONG AN: S&P Affirms CCR at 'B+'; Outlook Revised to Negative


H O N G  K O N G

ASIA FOCUS: Lai and Haughey Step Down as Liquidators
C.B.S. INVESTMENT: Court Enters Wind-Up Order
CHEONG THAI: Court Enters Wind-Up Order
CHIU HOI: Court Enters Wind-Up Order
FAME STRONG: Court Enters Wind-Up Order

FOREST VIEW: Court to Hear Wind-Up Petition on August 24
FORTUNE WORLD: Court Enters Wind-Up Order
FULLY INDUSTRIAL: Creditors' Proofs of Debt Due July 29
GBF MANAGEMENT: Court Enters Wind-Up Order
HON KEE: Court Enters Wind-Up Order


I N D I A

AVANTI FEEDS: CRISIL Raises Rating on INR250MM Loan to CRISIL BB-
ALL SERVICES: Fitch Affirms Nat'l. Long-Term Rating at 'BB+(ind)'
B&A PACKAGING: Fitch Affirms National Long-Term Rating at 'BB-'
BAFNA HOSPITAL: CRISIL Rates INR480 Mil. Term Loan at 'CRISIL B'
GAURISHANKER BIHANI: CRISIL Rates INR80MM Cash Credit at CRISIL B+

FLOWER KNITTING: CARE Rates INR8.8cr Bank Loan at 'CARE B'
GHASIRAM GOKALCHAND: CARE Assigns 'CARE BB' Rating to INR60cr Loan
KEDIA STEELS: CRISIL Rates INR65MM Cash Credit at 'CRISIL BB+'
KUNDIL ALLOYS: CRISIL Cuts Rating on INR18.3MM Loan to 'CRISIL D'
KUNDIL INFRA: CRISIL Reaffirms 'CRISIL D' Rating on INR90MM Loan

KUNDIL ISPAT: CRISIL Reaffirms 'CRISIL B-' Cash Credit Rating
KUNDIL ROLLING: CRISIL Reaffirms 'CRISIL B-' Cash Credit Rating
KUNDIL SPONGE: CRISIL Reaffirms 'CRISIL D' Term Loan Rating
RAMESH CO: CRISIL Assigns 'CRISIL B+' Rating to INR5MM LT Loan
S. S. B. METAL: CRISIL Assigns 'CRISIL B' Rating to INR24MM Loan

SAILEELA SYNTHETICS: CARE Rates INR22.34cr LT Loan at 'CARE BB'
SHRADHA AGENCIES: CRISIL Reaffirms 'CRISIL BB-' Cash Credit Rating
SHREE GAJANAN: CARE Rates INR16.79cr Long-Term Loan at 'CARE BB'
SHREE GIRIVAR: CARE Rates INR4.5cr Long-Term Loan at 'CARE BB'
TRINITY BEVERAGES: CARE Rates INR33.32cr LT Loan at 'CARE BB+'

WATERLINE HOTELS: CRISIL Puts 'CRISIL B+' Rating on INR220MM Loan


I N D O N E S I A

BAKRIE TELECOM: Fitch Affirms Long-Term Currency IDRs at 'B'


N E W  Z E A L A N D

FOR EVERYONE: Fails to File Financial Reports; May Be Struck Off
RMB TRUSTEE: Fitch Cuts Rating on NZD18.5MM Notes to 'Bsf'


P H I L I P P I N E S

PHILIPPINE AIRLINES: Sees Tougher Times Ahead as Fuel Prices Rise


S R I  L A N K A

* SRI LANKA: Fitch Upgrades Issuer Default Ratings to 'BB-'
* SRI LANKA: Moody's Assigns Positive Outlook on Sovereign Rating


T A I W A N

NANYA TECHNOLOGY: 2nd-Quarter Net Loss Widens to NT$7.9 Billion


T H A I L A N D

PICNIC CORP: Three Sixty Five Joins Srivikorn in Takeover Bid


                            - - - - -


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


360 CAPITAL: S&P Lowers Ratings on 5 Tranches of Notes to 'CCC'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered the ratings on five
classes of commercial mortgage-backed securities (CMBS) issued by
360 Capital CMBS Pty Ltd. "At the same time, the ratings on all
classes of notes were removed from CreditWatch with negative
implications.  The downgrades reflect our view of the
vulnerability of the notes to nonpayment of principal in full on
or before the legal final maturity date on Jan 18. 2012. We
consider that the transaction's planned sale of assets may not be
completed until beyond Jan. 18, 2012," S&P stated.

The issuer was renamed from Becton CMBS No. 1 Pty Ltd. following
the sale of Becton Property Group's funds management business to
360 Capital Group in December 2010. The transaction is a single-
borrower, CMBS program ultimately supported by interests in three
Australian office buildings located in New South Wales,
Queensland, and the Australian Capital Territory.  "The remaining
properties are at various stages of being marketed for sale and,
in our view, could experience further downward pressure on their
values. The size and composition of the remaining asset pool
remain a key consideration in our rating analysis. While the
ultimate recovery from the assets remains likely, with the loan-
to-value ratio currently reported at 56.1%, the timing of any
sales could extend beyond Jan. 2012, in our opinion," S&P related.

"In addition, we consider that it is unlikely that the class A
note balance of AUD1.524 million will be repaid from rental
collections over the remaining term," S&P said.

Ratings Lowered And Removed From Creditwatch
             Rating
Class        To         From
A            CCC (sf)   BB+ (sf)/Watch Neg
B            CCC (sf)   BB (sf)/Watch Neg
C            CCC (sf)   BB- (sf)/Watch Neg
D            CCC (sf)   B (sf)/Watch Neg
E            CCC (sf)   B- (sf)/Watch Neg


KALAE PTY: Collapses Amid Underpayment Complains, Fine
------------------------------------------------------
SmartCompany reports that Kalae Pty Ltd, a New South Wales freight
company, has collapsed, after being slapped with a AUD290,000
safety fine and amid employee complaints of underpayment by the
company's owner trucking giant Bob Ruttley.

In April, Kalae, the Ruttley company in whose name the vehicles
were registered, received a AUD290,000 fine after the Roads and
Traffic Authority of New South Wales investigation found it had
breached weight requirements 82 times and dimension requirements
twice over an eight-month period, SmartCompany reports.

SmartCompany relates that the company also received a 12-month
supervisory order, in what was the largest penalty ever given in
the New South Wales under chain of responsibility heavy vehicle
legislation.

According to SmartCompany, BRI Ferrier principal Peter Krejci was
appointed late last week and said he'd been informed by management
that the company hasn't traded for at least 12 months.

Mr. Krejci said there would be investigations into whether the
collapse was related to the fine earlier this year and the reports
of underpayments, SmartCompany relates.

A meeting of creditors will be held on July 27.

Kalae Pty Ltd has a fleet of about 160 heavy vehicles which moves
freight in Queensland, New South Wales, and Victoria.


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C H I N A
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CITIC PACIFIC: S&P Cuts Corp. Credit Rating to 'BB+'; Outlook Neg.
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on CITIC Pacific Ltd. to 'BB+' from 'BBB-'. The
outlook is negative. "We also lowered the rating on the company's
outstanding senior unsecured notes to 'BB+' from 'BBB-'.  At the
same time, we lowered the Greater China scale rating on CITIC
Pacific and the notes to 'cnBBB' from 'cnBBB+'," S&P stated.

"We lowered the rating on CITIC Pacific to reflect our view that
further delays and cost overruns at the Sino Iron project will
pressure the company's already weak credit metrics, particularly
its highly leveraged capital structure. Delays and cost overruns
have also weakened the project's economics. In addition, the
project delay means that the cash flow generation from the
project will be pushed back. It is, therefore, unlikely that CITIC
Pacific will reduce its debt in the next 12 to 18 months," S&P
related.

"Our rating action follows CITIC Pacific's announcement of a
further delay in production and higher costs for its Sino Iron
project in Australia," S&P said.

"CITIC Pacific's 2010 results were broadly in line with our
expectation. But rising raw material costs (for special steel) and
policy tightening in China (for property development) could put
pressure on the company's financial performance in 2011," said
Standard & Poor's credit analyst Lawrence Lu. "We expect total
debt to rise in 2011 because CITIC Pacific raised $1.25 billion
in debt and hybrid securities in April 2011. The company could
also fund part of the additional costs of the project through
debt."

"As a result, its leverage--as measured by the ratio of total debt
to total capital -- will likely deteriorate to more than 55% and
remain there for the next 12 to 18 months at least, until
meaningful contribution from the Sino Iron project materializes,"
Mr. Lu said.

"The corporate credit rating is based on the company's stand-alone
credit profile, which we now assess at 'b+' from 'bb-', and strong
parent support. CITIC Pacific's stand-alone credit profile
reflects our opinion of the company's highly leveraged financial
risk profile and its exposure to industry risks. We view CITIC
Pacific as a strategically important subsidiary of the CITIC Group
(foreign currency BBB+/Stable/A-2; cnA+/cnA-1), and believe timely
and sufficient extraordinary government support for CITIC Group
could flow to CITIC Pacific -- to some extent. We have, therefore,
factored in three notches of parent support in the rating on CITIC
Pacific," S&P said.

"The negative outlook reflects our view of the commissioning risks
associated with the Sino Iron project. In addition, the cost
overruns and project delays have reduced the buffer in the rating;
CITIC Pacific's EBITDA interest coverage was just above 2x by the
end of 2010," S&P said.

"We may lower the rating if: (1) cost overruns at the Sino Iron
project drain CITIC Pacific's liquidity; (2) we believe the
project will likely incur losses due to cost overruns or delays in
commissioning; (3) the company's ratio of total debt to total
capital rises to more than 60% on a sustainable basis; or
(3) in an unlikely scenario, support from CITIC Group weakens,"
S&P said.

"In our view, the rating upside potential is limited.
Nevertheless, we could consider revising the outlook to stable if:
(1) the first production line of the Sino Iron project starts
exporting iron ore according to the revised schedule and
generating satisfactory cash flow while the possibility of cost
overruns on the other phases of the project is low; or (2) the
company improves its financial strength such that its ratio of
total debt to total capital drops to about 50% and EBITDA interest
coverage recovers to above 2.5x," S&P added.


SHANGHAI INDUSTRIAL: Moody's Reviews 'B2' CFR For Possible Upgrade
------------------------------------------------------------------
Moody's Investors Service says it will continue to review for
possible upgrade Shanghai Industrial Urban Development Group Ltd's
("SIUD", formerly Neo-China Land Group (Holdings) Ltd) B2
corporate family and senior unsecured ratings.

The review, initiated on April 19, was prompted by the company's
announcement that it would acquire from Shanghai Industrial
Holdings Limited (SIH; unrated), SIUD's controlling shareholder
with a 45% stake, 1) its entire 59% stake in Shanghai Urban
Development, 2) its interests in dividend receivables, and 3) a
shareholder's loan due to SIH, for a total consideration of HK$6.1
billion. The transaction is subject to the approvals of the
minority shareholders and the regulatory authority.

"The extension of the review is driven by the delay in the
completion of the proposed acquisition," says Kaven Tsang, a
Moody's AVP/Analyst.

"Moody's foresees SIUD's credit profile improving -- upon
completion of the transaction -- with a stronger asset base and
stronger capacity for cash generation," adds Mr. Tsang.

"The resultant increase in SIH's level of ownership will also
benefit SIUD in its ability to access funding in both the onshore
and offshore markets," says Mr. Tsang.

The review will continue to focus on SIUD's future business and
funding strategies. It will also assess the strategic importance
of SIUD to the SIH group, as well as the benefits of the latter's
ownership and support for SIUD's operating and financial
positions.

The principal methodology used in rating SIUD was the Global
Homebuilding Industry Methodology, published March 2009.

Shanghai Industrial Urban Development Group Ltd is a Chinese
property developer engaged in residential and mixed-use
developments. It had 15 major projects under development in 11
cities in China and a land bank of around 12.7 million square
meters in gross floor area as of December 2010.

Shanghai Industrial Holdings Ltd is a Chinese conglomerate
majority owned by the Shanghai municipal government. Listed on the
Stock Exchange of Hong Kong in 1996, its main business interests
are in real estate, infrastructure facilities, and consumer
products.


SHANGHAI INDUSTRIAL: S&P Keeps 'B-' Corporate Credit Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services kept its 'B' long-term
corporate credit rating on Shanghai Industrial Urban Development
Group Ltd. and the 'B-' issue rating on the company's US$400
million senior unsecured notes on CreditWatch, where they were
placed with positive implications on April 19, 2011.  "We also
put our 'cnBB-' Greater China scale rating on SIUD and the 'cnB+'
issue rating on the notes on CreditWatch with positive
implications," S&P said.

"We maintained the rating on SIUD on CreditWatch with positive
implications because the company's proposed acquisition of the 59%
stake of Shanghai Industrial Holdings Ltd. (SIH; not rated) in
Shanghai Urban Development (Holdings) Co. Ltd. (SUD; not rated) is
still pending approval from the Hong Kong Stock Exchange and the
company's shareholders," said Standard & Poor's credit analyst Bei
Fu. "SIUD expects to obtain the approvals in three months."

"We placed the ratings on CreditWatch Positive after SIUD
announced the proposed acquisition on April 14, 2011. The total
consideration of the transaction is Hong Kong dollar (HK$) 6.11
billion, including SIH's shareholders' loan," S&P related.

If the transaction, which involves the issue of new shares, is
successful, SIH would increase its stake in SIUD to 70% from 45%
now. "In our view, the deal would make SIUD more strategically and
financially integrated with its parent and would likely have a
positive impact on its credit profile," S&P said.

"We aim to resolve the CreditWatch action within the next three
months. The proposed acquisition is subject to approval from (1)
shareholders; (2) the Hong Kong Stock Exchange; and (3) if
required, bond holders. If all the approvals are granted, we are
likely to raise the rating on SIUD by one or two notches. We will
assess SIUD's future growth strategy and group support as a
subsidiary of SIH, as well as pro-forma financial performance
after consolidating SUD," S&P added.


ZHONG AN: S&P Affirms CCR at 'B+'; Outlook Revised to Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Hangzhou-based Zhong An Real Estate Ltd. to negative from stable.
"At the same time, we affirmed the 'B+' long-term corporate credit
rating on the property developer. As a result of our outlook
revision, we have lowered our Greater China scale rating on
Zhong An to 'cnBB-' from 'cnBB'," S&P related.

"We revised our rating outlook to reflect our expectation that
Zhong An's property sales are likely to remain weak in the next 12
months due to the company's small scale and high project and
geographic concentration. We believe the deepening property sector
correction in China increases the uncertainty to Zhong An's sales
prospects. In our view, Zhong An's contracted sales will continue
to be materially affected by the government's policy tightening to
cool the property market in China," said Standard & Poor's
credit analyst Frank Lu. "If the weak sales continue, the
company's credit profile, including cash flow adequacy and
liquidity, which is currently adequate, could weaken materially."

"Zhong An's contracted sales of about Chinese renminbi (RMB) 1.1
billion in the first half of 2011 were materially below our
expectation. In addition, some of its high-end projects and
commercial projects may face significant challenges due to
weakening investment demand amid the tightening policy
environment. We expect Zhong An to have limited pricing
flexibility to boost sales in the second half of 2011 because the
majority of its properties on sale are from the later phases of
existing projects," S&P related.

The rating on Zhong An reflects the company's execution risk
associated with its expansion. The company's record of relatively
conservative financial and risk management, good local knowledge,
low-cost land bank, and established regional market position in
Hangzhou temper the above weaknesses.

"In our view, Zhong An's liquidity is adequate for the next 12
months. In our base-case scenario, we estimate its liquidity
source to be more than 1.2x of its liquidity use in the next one
year. However, Zhong An's liquidity will be sensitive to its
contract sales and spending on construction and land acquisitions
in 2012. Continued weak sales are likely to materially weaken its
liquidity if the company doesn't scale back its construction.
Zhong An has no outstanding land premium due in 2012. We expect
the company to manage its construction and land acquisition with
caution," S&P stated.

"The negative outlook reflects our expectation that Zhong An's
property sales are likely to remain weak in the next one year due
to its high project and geographic concentration in cities heavily
affected by the Chinese government's tightened policies to cool
the property market. Zhong An's credit profile, including cash
flow adequacy and liquidity, may weaken in 2012," S&P related.

"We may revise our outlook to stable if Zhong An's contract sales
improve significantly to about RMB4.0 billion in the next one year
and the company maintains an EBITDA margin of at least 30%-35%,
while managing its growth and leverage with discipline, and
maintaining or improving its capital structure," S&P said.

"We may lower the rating if Zhong An's liquidity deteriorates and
becomes less than adequate. We may also lower the rating if the
company's debt-funded growth is more aggressive than we expected
or its sales or margins are much lower than our projections, such
that its EBITDA interest coverage ratio is below 2x and its debt-
to-EBITDA ratio is above 5x on a sustained basis," S&P added.


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


ASIA FOCUS: Lai and Haughey Step Down as Liquidators
----------------------------------------------------
Lai Kar Yan (Derek) and Darach E. Haughey stepped down as
liquidators of Asia Focus International Holdings Limited on
June 29, 2011.


C.B.S. INVESTMENT: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Hong Kong entered an order on May 13, 2011, to
wind up the operations of C.B.S. Investment Limited.

The company's liquidator is Lau Siu Hung.


CHEONG THAI: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on July 6, 2011, to
wind up the operations of Cheong Thai Food Limited.

The official receiver is Teresa S W Wong.


CHIU HOI: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on April 29, 2011, to
wind up the operations of Chiu Hoi Trading Company Limited.

The company's liquidator is Lau Siu Hung.


FAME STRONG: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on June 8, 2011, to
wind up the operations of Fame Strong (China) Limited.

The company's liquidator is Lau Siu Hung.


FOREST VIEW: Court to Hear Wind-Up Petition on August 24
--------------------------------------------------------
A petition to wind up the operations of Forest View Investment
Limited will be heard before the High Court of Hong Kong on
Aug. 24, 2011, at 9:30 a.m.

Bank of China (Hong Kong) Limited filed the petition against the
company on June 21, 2011.

The Petitioner's solicitors are:

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


FORTUNE WORLD: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on June 23, 2011, to
wind up the operations of Fortune World International Limited.

The company's liquidator is Lau Siu Hung.


FULLY INDUSTRIAL: Creditors' Proofs of Debt Due July 29
-------------------------------------------------------
Creditors of Fully Industrial Company Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by July 29, 2011, to be included in the company's dividend
distribution.

The company's liquidator is:

         Kenny King Ching Tam
         Room 908, 9/F
         Nan Fung Tower
         173 Des Voeux Road
         Central, Hong Kong


GBF MANAGEMENT: Court Enters Wind-Up Order
------------------------------------------
The High Court of Hong Kong entered an order on May 6, 2011, to
wind up the operations of GBF Management Group Limited.

The company's liquidator is Lau Siu Hung.


HON KEE: Court Enters Wind-Up Order
-----------------------------------
The High Court of Hong Kong entered an order on July 6, 2011, to
wind up the operations of Hon Kee Scaffolding Company Limited.

The official receiver is Teresa S W Wong.


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AVANTI FEEDS: CRISIL Raises Rating on INR250MM Loan to CRISIL BB-
-----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Avanti
Feeds Ltd to 'CRISIL BB-/Stable/CRISIL A4+' from 'CRISIL
B+/Negative/CRISIL A4'.

   Facilities                        Ratings
   ----------                        -------
   INR250 Million Cash Credit        CRISIL BB-/Stable (Upgraded
                                       from 'CRISIL B+/Negative')

   INR58.2 Million Long-Term Loan    CRISIL BB-/Stable (Upgraded
                                       from 'CRISIL B+/Negative')

   INR43.8 Million Proposed LT Bank  CRISIL BB-/Stable (Upgraded
                      Loan Facility    from 'CRISIL B+/Negative')

   INR250 Million Letter of Credit   CRISIL A4+ (Upgraded from
                  & Bank Guarantee                'CRISIL A4')

The upgrade reflects revival of AFL's revenues in 2010-11 (refers
to financial year, April 1 to March 31) after a consistent decline
for six years through 2009-10; its revenues had declined to around
INR1.0 billion in 2009-10 from around INR2.4 billion in 2003-04.
AFL's operating revenues, however, increased by more than 100% to
INR2.1 billion in 2010-11 from INR1.0 billion in the previous
year. The upgrade also reflects improvement in AFL's financial
risk profile, driven by generation of sizeable cash accruals,
leading to improvement in debt protection metrics; its cash
accruals increased to INR55 million in 2010-11 from INR16 million
in the preceding year. AFL is expected to sustain its business
risk profile over the medium term, supported by healthy growth in
the shrimp industry and increasing penetration for vanamei culture
(which is relatively disease resistant vis-a-vis black tiger
shrimp) in India.

The ratings reflect AFL's established position in the seafood
industry and healthy operating capability. These rating strengths
are partially offset by AFL's average financial risk profile,
marked by average debt protection metrics, and susceptibility to
risks inherent in the seafood industry.

Outlook: Stable

CRISIL believes that AFL will maintain its moderate business risk
profile over the medium term, supported by promoter's extensive
experience in the seafood industry and healthy demand for Indian
shrimp in the export market and seafood feed in the domestic
market. The outlook may be revised to 'Positive' if the company
can sustain its scale of operations, while maintaining its
profitability. Conversely, the outlook may be revised to
'Negative' if there is any sharp decline in the company's revenues
or profitability, or if it generates less-than-expected cash
accruals or undertakes a larger-than-expected, debt-funded capital
expenditure, leading to deterioration in its financial risk
profile.

                      About Avanti Feeds

Incorporated in 1993, the Hyderabad-based AFL is engaged in shrimp
processing and manufacture of shrimp and fish feed. The company
has a shrimp and fish feed manufacturing capacity of about 42,000
tonnes per annum (tpa). It has shrimp processing capacity of
around 2720 tpa and windmill power generation capacity of 3.2
megawatts (MW).

AFL, along with Thai Union Feed Mill Company Ltd (Thai Union), is
setting up a 10,000-tpa feed manufacturing plant at Gujarat; the
unit is being setup under Avanti-Thai Aqua Feeds Pvt Ltd, a joint
venture company in the ratio of 51:49 between AFL and Thai Union.
The total cost of the facility is around INR170 million, which is
expected to be funded by a term loan of around INR93 million and
equity infusion. The unit is expected to be ready for commercial
operations by the end of July 31, 2011.

Furthermore, AFL has plans to increase the shrimp processing
capacity by about 1500 tpa at an estimated cost of INR40 million;
it is expected to be operational by the end of 2011-12.

AFL reported a profit after tax (PAT) of INR35.6 million on net
sales of INR2.0 billion for 2010-11, as against a loss after tax
of INR12.0 million on net sales of INR0.9 billion for 2009-10.


ALL SERVICES: Fitch Affirms Nat'l. Long-Term Rating at 'BB+(ind)'
-----------------------------------------------------------------
Fitch Ratings has affirmed India-based All Services Global Pvt
Ltd's National Long-Term rating at 'BB+(ind)'.  The Outlook is
Stable. Fitch has also affirmed ASGPL's bank loans:

   -- INR132.5m long-term loans; 'BB+(ind)';

   -- INR230m fund-based facility (increased from INR130m):
      'BB+(ind)'; and

   -- INR120m non fund-based facility (increased from INR60m):
      'F4(ind)'.

The affirmation reflects the ASGPL's strong revenue growth over
FY10-FY11 coupled with its margin expansions, which led to a
decline in its financial leverage (total debt/operating EBITDA).
In the financial year ended March 31, 2011 (FY11), the company's
operating EBITDA improved to 15.8% from 13.9% in FY10 and its
financial leverage declined to 2.1x from 2.8x in FY10. Its
interest coverage remained 4.3x in the same period. However, Fitch
notes that the company's cash flow from operation were negative
over FY10-FY11, and are expected to remain negative given the high
level of receivables (around 200 days).

The ratings continue to factor in ASGPL's leadership position in
the janitorial and housekeeping segments despite intense
competition. Fitch notes that this along with its long-standing
relationships with its customers will help the company in its new
venture into laundry services and the hospitality services.

The ratings are however constrained by the company's customer
concentration and its increasing level of receivable days to 214
days in FY11 (FY10: 187 days). Fitch notes that the Uttar Pradesh
government's Family Welfare programme (FWP), which accounted for
around 25% of ASGPL's FY11 revenues, now accounts for 10% of the
company's current order book. Further, FWP forms a large part
(30%) of the receivables, with a significant portion of the
receivables outstanding over six months. The agency also notes
that out of the company's total receivables, 66% were outstanding
over six months at end-FY11.

A positive rating action may result from a significant, sustained
improvement in ASGPL's liquidity position, overall working capital
cycle and its financial leverage to below 2.5x. Conversely, a
negative rating action may result from deterioration in the
company's working capital cycle on account of a sustained,
substantial increase in its receivable days.

ASGPL (formerly known as A.L.L. Services Under 1 Roof (India) Ltd)
is an integrated facilities management service provider. It was
started as a partnership firm by Mrs. Sonal Chitroda and Mr.
Suresh Verma in 1990, and later converted to a private limited
company in 2004.. In FY11 (provisional), the company had revenues
of INR1,154 million (FY10: INR769.4 million), EBITDA of INR182.5
million (FY10: INR107.6 million) and net profit of INR86 million
(FY10: INR46.1 million).


B&A PACKAGING: Fitch Affirms National Long-Term Rating at 'BB-'
---------------------------------------------------------------
Fitch Ratings has affirmed B & A Packaging India Limited's
National Long-Term rating at 'BB-(ind)' with a Stable Outlook.
The agency has also affirmed BAPIL's bank loans:

   -- INR69m long-term loans (increased from INR5.9m): 'BB-(ind)';

   -- INR60m fund-based limits: 'BB-(ind)'; and

   -- INR42m non-fund based limits (increased from INR32m):
      'F4(ind)'.

BAPIL's ratings continue to reflect its small scale of operations
and its dependence on the volatile tea industry which exposes it
to high business risks. Fitch continues to draw comfort from the
long experience of the company's promoters, its market leadership
position in supplying tea paper sacks, and its plans to diversify
its product base into the flexible-packaging sector. The capex was
earlier scheduled for FY11 (financial year ended March 31, 2011),
but has been delayed to FY12 due to delays in achieving financial
closure. Fitch expects the company's gross financial leverage
(total adjusted debt/EBITDA) to be stretched in the short term due
to its ongoing capex program.

The ratings may be upgraded if there is a sustained increase in
BAPIL's operating margins with its total adjusted debt/operating
EBITDA falling below 4.0x, and/or if there is a timely
implementation of its capex program. A negative rating action may
result from a significant decline in the company's operating
margins along with an increase in its total adjusted
debt/operating EBITDA to over 6.0x.

BAPIL (previously known as B & A Multiwall Packaging Limited) is a
Kolkata-based paper sack manufacturer. The company changed its
financial year-end to March from December from FY11 onwards, as a
result its FY11 was an extended year of 15 months. In FY11, BAPIL
reported revenues of INR273.2 million, a significant increase of
46.4% yoy, mainly because of the extended year, although its
EBITDA margins reduced slightly to 12.3% (FY09: 15.0%). The
company' total adjusted debt at FYE11 was INR81.4 million along
with comfortable gross financial leverage of 3.0x (annualized) and
gross interest coverage of 3.2x.


BAFNA HOSPITAL: CRISIL Rates INR480 Mil. Term Loan at 'CRISIL B'
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Bafna Hospital and Orthopaedic Research Centre
Pvt Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR480 Million Rupee Term Loan   CRISIL B/Stable (Assigned)

The rating reflects Bafna's susceptibility to risks related to
implementation and demand off-take risks for its ongoing project,
and its small scale of existing operations. These weaknesses are
partially offset by the promoters' long standing experience in the
health care delivery sector.

Outlook: Stable

CRISIL believes that Bafna will maintain its credit risk profile
backed by the promoter's long standing experience in the health
care delivery sector. The outlook may be revised to 'Positive'
once the new hospital project is commissioned as per schedule, and
it stabilises its operations. Conversely, the outlook may be
revised to 'Negative' if there are significant delays in
commissioning the project and/or if there are significant cost
overruns in the project.

                         About Bafna Hospital

Incorporated in 1999, Bafna runs a 30-bed hospital for orthopaedic
and trauma cases in Indore (Madhya Pradesh). Bafna also provides
services in the Ilizarov technique and undertakes microvascular
plastic surgery of the hand.

Bafna is developing a 230-bed multi-speciality hospital in the
western part of Indore at a total estimated cost of INR760
million. The new hospital is expected to become operational by
October 2011.

Bafna reported a profit after tax (PAT) of INR2.5 million on net
sales of INR18 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR2 million on net
sales of INR15 million for 2008-09.


GAURISHANKER BIHANI: CRISIL Rates INR80MM Cash Credit at CRISIL B+
------------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Gaurishanker Bihani (GSB, part of the GSB
group).

   Facilities                      Ratings
   ----------                      -------
   INR80 Million Cash Credit       CRISIL B+/Stable (Assigned)
   INR5 Million Bank Guarantee     CRISIL A4 (Assigned)
   INR5 Million Bill Purchase-     CRISIL A4 (Assigned)
         Discounting Facility

The ratings reflect the GSB group's weak financial risk profile,
marked by a small net worth, high gearing, high total outside
liabilities to tangible net worth ratio, weak debt protection
metrics, and low profitability margins, commodity nature of its
product, and susceptibility to volatility in prices of steel
products. These rating weaknesses are partially offset by the GSB
group's long standing association with Tata Steel Ltd (TSL; rated
CRISIL AA/FAA+/Stable by CRISIL) and partner's extensive
experience in steel trading industry.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of GSB and Ramesh Co. (RC), together
referred to as the GSB group, as both the entities have a common
management and are in a similar line of operations. Moreover, GSB
and RC have provided corporate guarantees for each other's working
capital borrowings from Bank of Baroda. CRISIL has also treated
unsecured loans extended by the partners as neither debt nor
equity. This is based on an undertaking from the management shared
with its bankers that these funds will be maintained in the
business till the expiry of the loans.

Outlook: Stable

CRISIL believes that the GSB group will continue to benefit from
its partners' extensive experience in the steel industry and its
long-standing association with Tata Steel, over the medium term.
The outlook may be revised to 'Positive' in case there is more-
than-expected increase in the group's revenues and profitability,
thereby improving its financial risk profile. Conversely, the
outlook may be revised to 'Negative' if the GSB group reports
lower-than-expected revenues and profitability, or in case of any
significant debt-funded capital expenditure, leading to further
weakening in the group's financial risk profile.

                        About the Group

Based in Kolkata (West Bengal [WB]), GSB was set up as a
proprietorship firm in 1936 by the late Mr. Gaurishanker Bihani to
undertake distributorship of Tata Steel's various products. The
firm was reconstituted as a partnership firm in 1974. Currently,
Mr. Hari Narayan Bihani (son of Mr. Gaurishanker Bihani), and his
sons, Mr. Rajesh Bihani and Mr. Tarun Bihani, are partners in the
firm. GSB deals in hot roll (HR) flats and thermo mechanically
treated (TMT) steel bars. It has the exclusive project
distributorship for Tata Steel's TISCON TMT bars in WB.
Furthermore, the firm is also an authorised dealer of Tata Steel's
HR flat products. Moreover, GSB also deals in HR flat products of
Essar Steel and Jindal Steel, although in small quantities.

RC is also a partnership firm that trades steel. The firm is also
an authorised dealer of Tata Steel's HR flat products in WB. RC
also deals in HR flat products of Essar Steel and Jindal Steel,
although in small quantities.

The GSB group is expected to report a provisional profit after tax
(PAT) of INR5.56 million on net sales of INR1.97 billion in 2010-
11 (refers to financial year, April 1 to March 31). The GSB group
reported a PAT of INR3.75 million on net sales of INR1.40 billion
for 2009-10, as against a PAT of INR1.64 million on net sales of
INR1.29 billion for 2008-09.


FLOWER KNITTING: CARE Rates INR8.8cr Bank Loan at 'CARE B'
----------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities
of Flower Knitting Mills.

                               Amount
   Facilities                (INR crore)     Ratings
   -----------               -----------     -------
   Long/Short-term Bank         8.80         'CARE B'/'CARE A4'
   Facilities                                 Assigned

The ratings assigned by CARE are based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo change in case of withdrawal of capital or
the unsecured loans brought in by the partners in addition to the
financial performance and other relevant factors.

Rating Rationale

The ratings are constrained by the small size of operations of
FKM, volatile sales, low and declining profitability margins and
poor quality of MIS maintained leading to less than satisfactory
accounting disclosures. The ratings also factor in the promoters'
experience in textile industry and group's integrated presence in
spinning, dyeing and garment manufacturing.  Going forward,
ability of FKM to achieve higher operating margins through
streamlining of operations and improvement in accounting
practices, MIS systems etc. will be key rating sensitivities.

Flower Knitting Mills is a partnership firm established in the
year 1988 by Mr. S. Subramani and is involved in the manufacturing
of knitted cotton garments. The firm belongs to the 'Flower' group
which has been in textile business since 1972 with presence in
spinning, dyeing and manufacturing of readymade garments.  For the
year ended March 2010, FKM reported a PBT of INR0.5cr on a total
income of INR34cr.


GHASIRAM GOKALCHAND: CARE Assigns 'CARE BB' Rating to INR60cr Loan
------------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Ghasiram Gokalchand Ship Breaking Yard.

                                  Amount
   Facilities                   (INR crore)     Ratings
   -----------                  -----------     -------
   Long-term Bank Facilities       60.00        'CARE BB' Assigned
   Short-term Bank Facilities      70.00        'CARE A4' Assigned

Rating Rationale

The ratings are constrained by low and volatile profitability
margins, long operating cycle as well as relatively higher overall
gearing of GGSBY. The ratings are further constrained by the
constitution of the entity as a partnership firm, small scale of
operations and competition from the large number of unorganized
players. The ratings also take into consideration the cyclical
nature of the industry.  However, the ratings derive strength from
the relevant long experience of the partners in the area of ship
breaking and related steel manufacturing industry. The ratings
also factor in the current oversupply scenario in the shipping
sector and International Maritime Organization regulations
stipulating the maximum age of the tankers to carry petroleum
products.  Ability of GGSBY to procure ships at reasonable prices
and timely completion of the scrapping activities in the volatile
market scenario remains the key rating sensitivity.

Founded in 1989, GGSBY is engaged in the business of ship breaking
since inception. At present, Mr. Vishnu Kumar Gupta, one of the
partners, manages the firm.  The firm operates on a 3645 sq mtr
yard at Alang near Bhavnagar (Gujarat) taken on a lease basis from
Gujarat Maritime Board (GMB), which normally gets renewed every
five years. The firm has dismantled more than 50 ships so far
with the capabilities to dismantle all types of vessels, i.e.
tankers, dry bulk carriers and container vessels.


KEDIA STEELS: CRISIL Rates INR65MM Cash Credit at 'CRISIL BB+'
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable' rating to the cash
credit facility of Kedia Steels (Proprietor GND Ispat Pvt Ltd).

   Facilities                     Ratings
   ----------                     -------
   INR65 Million Cash Credit      CRISIL BB+/Stable (Assigned)

The rating reflects Kedia Steels' promoter's extensive experience
in the steel industry and its comfortable working capital
management. These strengths are partially offset by Kedia Steels'
constrained financial risk profile, and its exposure to intense
competition in the highly fragmented Indian steel industry.

For arriving at its rating, CRISIL has treated the unsecured loan
provided by the promoter-directors of Kedia Steels as neither debt
nor equity. This is because the promoters of Kedia Steels have
provided an undertaking to the bank stating that the unsecured
loans will not be withdrawn from the business until the settlement
of all bank facilities. As on March 31, 2011, the unsecured loan
balance stood at INR15.8 million.

Outlook: Stable

CRISIL believes that Kedia Steels will continue to benefit over
the medium term from its established customer base and its
promoters' considerable experience in the steel industry. The
outlook may be revised to 'Positive' in case of higher-than-
expected increase in the firm's revenues and profitability, or in
case of equity infusion by the promoters, leading to improvement
in its financial profile. Conversely, the outlook may be revised
to 'Negative' if Kedia Steels reports lower-than-expected revenues
and profitability, or undertakes any large debt-funded capital
expenditure programme, leading to deterioration in its financial
risk profile.

                         About Kedia Steels

Kedia Steels (proprietorship firm) was formed in 1995 by the
Raipur (Chhattisgarh)-based Kedia family as a proprietorship firm.
In 2005, the Kedia family promoted GND Ispat Pvt Ltd which became
the proprietor of Kedia Steels (proprietorship firm) in 2007-08
(refers to financial year, April 1 to March 31). Kedia Steels
trades in steel products.  The company is an authorised dealer of
Steel Authority of India Ltd in Raipur for galvanised sheets,
corrugated sheets, plain sheets, plates, and thermo-mechanically
treated bars. Around 30% of the company's revenues in 2010-11 were
from trading in products manufactured by SAIL.  The company also
trades in various steel long products manufactured by rolling
mills based in Chhattisgarh and Orissa. Around 70% of the total
sales are order-based.


KUNDIL ALLOYS: CRISIL Cuts Rating on INR18.3MM Loan to 'CRISIL D'
-----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Kundil
Alloys Pvt Ltd, part of the Kundil group, to 'CRISIL D' from
'CRISIL B-/Negative/ CRISIL A4', while assigning its 'CRISIL D'
rating to the company's proposed long-term bank facility.

   Facilities                         Ratings
   ----------                         -------
   INR100.0 Million Cash Credit       CRISIL D (Downgraded from
   (Enhanced from INR95.0 Million)        'CRISIL B-/Negative')

   INR18.3 Million Term Loan
   (Enhanced from INR1.6 Million)     CRISIL D (Downgraded from
                                          'CRISIL B-/Negative')

   INR8.7 Million Proposed LT         CRISIL D (Assigned)
        Bank Loan facilities

   INR9.0 Million Letter of Credit    CRISIL D (Downgraded from
                                                'CRISIL A4')

   INR29.0 Million Bank Guarantee     CRISIL D (Downgraded from
                                                'CRISIL A4')

The rating downgrade reflects instances of delay by Kundil Alloys
in servicing its debt; the delays have been caused by the Kundil
group's weak liquidity.

The Kundil group is also exposed to competition in the thermo-
mechanically treated (TMT) steel bar industry, and is susceptible
to downturns in the end-user industries and to volatility in steel
prices; moreover, the group has a weak financial risk profile
marked by high gearing. The Kundil group, however, benefits from
its moderate operating efficiency because of its semi-integrated
operations, and its promoters' industry experience.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Kundil Sponge Iron Ltd (manufactures
sponge iron), Kundil Alloys and Mandovi Metals Pvt Ltd (both
manufacture mild-steel [MS] ingots), Kundil Rolling Mills Pvt Ltd
and Kundil Ispat Ltd (both manufacture TMT bars), and Kundil
Infrastructure Co Ltd (setting up a railway siding). This is
because these entities, herein collectively referred to as the
Kundil group, have fungible cash flows, and common promoters and
management. Furthermore, all the group entities, except Kundil
Infrastructure Co Ltd, are engaged in the same line of business
and have strong operational linkages with each other.

                      About the Group

The Kundil group is a family-run business, set up by Mr. Surajit
Baruah. The group is currently managed by Mr. Surajit Baruah and
Mr. Vijay Kashyap (executive director). Kundil Alloys was set up
in 1998. The company primarily manufactures MS ingots.


KUNDIL INFRA: CRISIL Reaffirms 'CRISIL D' Rating on INR90MM Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Kundil Infrastructure
Company Ltd, part of the Kundil group, continue to reflect delays
by KICL in servicing its debt; the delay has been caused by the
Kundil group's weak liquidity.

   Facilities                      Ratings
   ----------                      -------
   INR90.0 Million Term Loan       CRISIL D (Reaffirmed)

The Kundil group is also exposed to competition in the thermo-
mechanically treated (TMT) steel bar industry, and is susceptible
to downturns in the end-user industries and to volatility in steel
prices; moreover, the group has a weak financial risk profile
marked by high gearing. The Kundil group, however, benefits from
its moderate operating efficiency because of its semi-integrated
operations, and its promoters' industry experience.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Kundil Sponge Iron Ltd (manufactures
sponge iron), Kundil Alloys and Mandovi Metals Pvt Ltd (both
manufacture mild-steel [MS] ingots), Kundil Rolling Mills Pvt Ltd
and Kundil Ispat Ltd (both manufacture TMT bars), and Kundil
Infrastructure Co Ltd (setting up a railway siding). This is
because these entities, herein collectively referred to as the
Kundil group, have fungible cash flows, and common promoters and
management.

                         About the Group

The Kundil group is a family-run business, set up by Mr. Surajit
Baruah. The group is currently managed by Mr. Surajit Baruah and
Mr. Vijay Kashyap (executive director). KICL was set up in 2005.
The company is setting up a railway siding, with approved carriage
capacity of 1 million tonnes; of this, around 100,000 tonnes will
be used for Kundil Sponge's requirements and the rest will be let
out.


KUNDIL ISPAT: CRISIL Reaffirms 'CRISIL B-' Cash Credit Rating
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Kundil Ispat Ltd, part
of the Kundil group, continue to reflect the Kundil group's weak
liquidity -- there have been instances of delays in debt servicing
by the group companies.

   Facilities                        Ratings
   ----------                        -------
   INR102.5 Million Cash Credit      CRISIL B-/Negative
   (Enhanced from INR87.5 Million)  
   INR3.0 Million Letter of Credit   CRISIL A4 (Reaffirmed)
   INR4.0 Million Bank Guarantee     CRISIL A4 (Reaffirmed)

The ratings also factor in the group's exposure to competition in
the thermo-mechanically treated (TMT) steel bar industry,
susceptibility to downturns in end-user industries and to
volatility in steel prices, and weak financial risk profile. These
rating weaknesses are partially offset by the group's moderate
operating efficiency because of its semi-integrated operations,
and industry experience of its promoters.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Kundil Sponge Iron Ltd (manufactures
sponge iron), Kundil Alloys and Mandovi Metals Pvt Ltd (both
manufacture mild-steel [MS] ingots), Kundil Rolling Mills Pvt Ltd
and Kundil Ispat Ltd (both manufacture TMT bars), and Kundil
Infrastructure Co Ltd (setting up a railway siding). This is
because these entities, herein collectively referred to as the
Kundil group, have fungible cash flows, and common promoters and
management. Furthermore, all the group entities, except Kundil
Infrastructure Co Ltd, are engaged in the same line of business
and have strong operational linkages with each other.

Outlook: Negative

CRISIL believes that the Kundil group's liquidity will remain weak
over the medium term because of large working capital requirements
and large debt repayment obligations. The rating may be downgraded
if there is more-than-expected weakening in the group's liquidity,
leading to continuously overdrawn bank lines. Conversely, the
outlook may be revised to 'Stable' if the group's liquidity
improves significantly.

                         About the Group

The Kundil group is a family-run business, set up by Mr. Surajit
Baruah. The group is currently managed by Mr. Surajit Baruah and
Mr. Vijay Kashyap (executive director). Kundil Ispat was purchased
as a sick unit in 2004. The company sells its product under the
brand name of Kamdhenu.


KUNDIL ROLLING: CRISIL Reaffirms 'CRISIL B-' Cash Credit Rating
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Kundil Rolling Mills
Pvt Ltd, part of the Kundil group, continue to reflect the Kundil
group's weak liquidity -- there have been instances of delays in
debt servicing by the group companies.

   Facilities                        Ratings
   ----------                        -------
   INR105.0 Million Cash Credit      CRISIL B-/Negative
   (Enhanced from INR90.0 Million)  
   INR3.0 Million Letter of Credit   CRISIL A4 (Reaffirmed)
   INR3.0 Million Bank Guarantee     CRISIL A4 (Reaffirmed)

The ratings also factor in the group's exposure to competition in
the thermo-mechanically treated (TMT) steel bar industry,
susceptibility to downturns in end-user industries and to
volatility in steel prices, and weak financial risk profile. These
rating weaknesses are partially offset by the group's moderate
operating efficiency because of its semi-integrated operations,
and industry experience of its promoters.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Kundil Sponge Iron Ltd (manufactures
sponge iron), Kundil Alloys and Mandovi Metals Pvt Ltd (both
manufacture mild-steel [MS] ingots), Kundil Rolling Mills Pvt Ltd
and Kundil Ispat Ltd (both manufacture TMT bars), and Kundil
Infrastructure Co Ltd (setting up a railway siding). This is
because these entities, herein collectively referred to as the
Kundil group, have fungible cash flows, and common promoters and
management. Furthermore, all the group entities, except Kundil
Infrastructure Co Ltd, are engaged in the same line of business
and have strong operational linkages with each other.

Outlook: Negative

CRISIL believes that the Kundil group's liquidity will remain weak
over the medium term because of large working capital requirements
and large debt repayment obligations. The rating may be downgraded
if there is more-than-expected weakening in the group's liquidity,
leading to continuously overdrawn bank lines. Conversely, the
outlook may be revised to 'Stable' if the group's liquidity
improves significantly.

                         About the Group

The Kundil group is a family-run business, set up by Mr. Surajit
Baruah. The group is currently managed by Mr. Surajit Baruah and
Mr. Vijay Kashyap (executive director). Kundil Rolling was set up
in 1998. It primarily manufactures TMT bars and rods for sale
under the Kamadhenu brand.


KUNDIL SPONGE: CRISIL Reaffirms 'CRISIL D' Term Loan Rating
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Kundil Sponge Iron Ltd,
part of the Kundil group, continue to reflect delays by Kundil
Sponge in servicing its debt; the delay has been caused by the
Kundil group's weak liquidity.

   Facilities                         Ratings
   ----------                         -------
   INR162.5 Million Cash Credit       CRISIL D (Reaffirmed)
   INR168.5 Million Term Loan         CRISIL D (Reaffirmed)
   INR50.0 Million Letter of Credit   CRISIL D (Reaffirmed)

The Kundil group is also exposed to competition in the thermo-
mechanically treated (TMT) steel bar industry, and is susceptible
to downturns in the end-user industries and to volatility in steel
prices; moreover, the group has a weak financial risk profile
marked by high gearing. The Kundil group, however, benefits from
its moderate operating efficiency because of its semi-integrated
operations, and its promoters' industry experience.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Kundil Sponge Iron Ltd (manufactures
sponge iron), Kundil Alloys and Mandovi Metals Pvt Ltd (both
manufacture mild-steel [MS] ingots), Kundil Rolling Mills Pvt Ltd
and Kundil Ispat Ltd (both manufacture TMT bars), and Kundil
Infrastructure Co Ltd (setting up a railway siding). This is
because these entities, herein collectively referred to as the
Kundil group, have fungible cash flows, and common promoters and
management. Furthermore, all the group entities, except Kundil
Infrastructure Co Ltd, are engaged in the same line of business
and have strong operational linkages with each other.

                        About the Group

The Kundil group is a family-run business, set up by Mr. Surajit
Baruah. The group is currently managed by Mr. Surajit Baruah and
Mr. Vijay Kashyap (executive director). Kundil Sponge was set up
in 2006, and primarily manufactures sponge iron.


RAMESH CO: CRISIL Assigns 'CRISIL B+' Rating to INR5MM LT Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Ramesh Co.

   Facilities                      Ratings
   ----------                      -------
   INR80 Million Cash Credit       CRISIL B+/Stable (Assigned)
   INR5 Million Proposed LT
         Bank Loan Facility        CRISIL B+/Stable (Assigned)
   INR5 Million Bill Discounting   CRISIL A4 (Assigned)

The ratings reflect the GSB group's weak financial risk profile,
marked by a small net worth, high gearing, high total outside
liabilities to tangible net worth ratio, weak debt protection
metrics, and low profitability margins, commodity nature of its
product, and susceptibility to volatility in prices of steel
products. These rating weaknesses are partially offset by the GSB
group's long standing association with Tata Steel Ltd (TSL; rated
CRISIL AA/FAA+/Stable by CRISIL) and partner's extensive
experience in steel trading industry.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Gaurishankar Bihani and RC, together
referred to as the GSB group, as both the entities have a common
management and are in a similar line of operations. Moreover, GSB
and RC have provided corporate guarantees for each other's working
capital borrowings from Bank of Baroda. CRISIL has also treated
unsecured loans extended by the partners as neither debt nor
equity. This is based on an undertaking from the management shared
with its bankers that these funds will be maintained in the
business till the expiry of the loans.

Outlook: Stable

CRISIL believes that the GSB group will continue to benefit from
its partners' extensive experience in the steel industry and its
long-standing association with Tata Steel, over the medium term.
The outlook may be revised to 'Positive' in case there is more-
than-expected increase in the group's revenues and profitability,
thereby improving its financial risk profile. Conversely, the
outlook may be revised to 'Negative' if the GSB group reports
lower-than-expected revenues and profitability, or in case of any
significant debt-funded capital expenditure, leading to further
weakening in the group's financial risk profile.

                         About the Group

Based in Kolkata (West Bengal [WB]), GSB was set up as a
proprietorship firm in 1936 by the late Mr. Gaurishankar Bihani to
undertake distributorship of Tata Steel's various products. The
firm was reconstituted as a partnership firm in 1974. Currently,
Mr. Hari Narayan Bihani (son of Mr. Gaurishankar Bihani), and his
sons, Mr. Rajesh Bihani and Mr. Tarun Bihani, are partners in the
firm. GSB deals in hot roll (HR) flats and thermo mechanically
treated (TMT) steel bars. It has the exclusive project
distributorship for Tata Steel's TISCON TMT bars in WB.
Furthermore, the firm is also an authorised dealer of Tata Steel's
HR flat products. Moreover, GSB also deals in HR flat products of
Essar Steel and Jindal Steel, although in small quantities.

RC is also a partnership firm that trades steel. The firm is also
an authorised dealer of Tata Steel's HR flat products in WB. RC
also deals in HR flat products of Essar Steel and Jindal Steel,
although in small quantities.

The GSB group is expected to report a provisional profit after tax
(PAT) of INR5.56 million on net sales of INR1.97 billion in 2010-
11 (refers to financial year, April 1 to March 31). The GSB group
reported a PAT of INR3.75 million on net sales of INR1.40 billion
for 2009-10, as against a PAT of INR1.64 million on net sales of
INR1.29 billion for 2008-09.


S. S. B. METAL: CRISIL Assigns 'CRISIL B' Rating to INR24MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of S. S. B. Metal Works.

   Facilities                      Ratings
   ----------                      -------
   INR11 Million Cash Credit       CRISIL B/Stable (Assigned)
   INR24 Million Proposed LT       CRISIL B/Stable (Assigned)
          Bank Loan Facility
   INR5 Million Letter of Credit   CRISIL A4 (Assigned)
   INR5 Million Bank Guarantee     CRISIL A4 (Assigned)
   INR35 Million Packing Credit    CRISIL A4 (Assigned)

The ratings reflect SSB's small scale of operations, below-average
financial risk profile, marked by a small net worth and low net
cash accruals to total debt ratio, and working-capital-intensive
operations. These rating weaknesses are partially offset by SSB's
long and established track record in the writing instruments
industry.

Outlook: Stable

CRISIL believes that SSB will continue to benefit over the medium
term from its long and established track record in the writing
instruments industry. The outlook may be revised to 'Positive' in
case of improvement in the firm's liquidity driven by infusion of
long term funds in the company. Conversely, the outlook may be
revised to 'Negative' in case of larger-than-expected, debt-funded
capital expenditure by SSB or/and significant decline in operating
margin, leading to further deterioration in the debt protection
metrics of the firm.

                       About S. S. B. Metal

Set up as a sole proprietorship in 1989, SSB was reconstituted as
a partnership firm in 1994 with three partners, Mr. Pravin Lunia,
Mr. Bharat Lunia, and Mrs. Chandravati Lunia. In 2003, two more
partners were added - Mr. Pravin Lunia and Mr. Bharat Lunia (HUF).
In 2009, Mrs. Chandravati Lunia resigned as a partner. SSB
manufactures and exports writing instruments including metal ball
point pen, plastic ball point pen, gift sets, multifunction pen,
fountain pen, roller pen, pencils, and pen parts for corporate
gifts.

SSB's profit after tax (PAT) is estimated at INR1.4 million on net
sales of INR166 million for 2010-11 (refers to financial year,
April 1 to March 31), against a PAT of INR3.1 million on net sales
of INR149 million for 2009-10.


SAILEELA SYNTHETICS: CARE Rates INR22.34cr LT Loan at 'CARE BB'
---------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Saileela Synthetics Pvt. Ltd.

                                Amount
   Facilities                 (INR crore)     Ratings
   -----------                -----------     -------
   Long-term Bank Facilities      22.34       'CARE BB' Assigned
   Short-term Bank Facilities      0.51       'CARE A4' Assigned

Rating Rationale

The ratings are primarily constrained by the small scale of
operations of Saileela Synthetics Pvt. Ltd (SSPL) with weak
financial risk profile marked by low and declining profit margins,
high gearing, weak debt protection indicators and below-average
liquidity position. The ratings are also constrained due to highly
fragmented and working capital intensive nature of the industry.
The ratings, however, favorably take in to account the vast
experience of the promoters and established track record of SSPL
of more than 15 years.  Improvement in the overall financial risk
profile and increase in the scale of operations are the key
rating sensitivities.

Bhilwara (Rajasthan) based SSPL was incorporated on Jan. 20, 1995,
by Mr. Nand Lal Jalan and Mr. Jagdish Jariwal. Subsequently Mr.
Jagdish Jariwal resigned from directorship on May 25, 1998, and
was replaced by Mrs. Renu Devi Jalan. SSPL was engaged in the
trading of yarn and synthetics fabrics till 1996 and then it
shifted into the manufacturing of the synthetics fabrics from
polyester and polyester viscose.

SSPL's operations are looked after by Mr. Nand Lal Jalan, Managing
Director, and Mr. Navin Jalan, Director, both having significant
experience in the textile business.


SHRADHA AGENCIES: CRISIL Reaffirms 'CRISIL BB-' Cash Credit Rating
------------------------------------------------------------------
CRISIL's ratings on the bank facilities of Shradha Agencies Pvt.
Ltd. continue to reflect SAPL's relatively low-risk business
model, wide distribution network, and its promoters' extensive
experience in selling fast-moving consumer goods.  These rating
strengths are partially offset by SAPL's below-average financial
risk profile, marked by high gearing, small net worth, and weak
debt protection metrics, and large working capital requirements.

   Facilities                     Ratings
   ----------                     -------
   INR150 Million Cash Credit     CRISIL BB-/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that SAPL will continue to benefit over the medium
term from its wide market reach and low-risk business model. The
outlook may be revised to 'Positive' if the company's
profitability improves considerably from current levels or if
equity infusion by promoters enhances its net worth, thereby
improving gearing and debt protection metrics. Conversely, the
outlook may be revised to 'Negative' if SAPL increases its
reliance on debt to fund its incremental working capital
requirements, thereby constraining its liquidity.

                      About Shradha Agencies

SAPL was set up in 1974 as a proprietorship firm that traded
cigarettes. It was reconstituted as a private limited company in
1995. SAPL is a stockist for many FMCG brands, including Procter
and Gamble, Nokia, Heinz, and Reynolds, and caters to various
districts of West Bengal. The company is managed by Mr. Rajeev
Arora and his son, Mr. Ankit Arora.

SAPL is estimated to report a profit after tax (PAT) of INR6.0
million on net sales of INR2.07 billion for 2010-11 (refers to
financial year, April 1 to March 31), as against a PAT of INR3.5
million on net sales of INR1.55 billion for 2009-10.


SHREE GAJANAN: CARE Rates INR16.79cr Long-Term Loan at 'CARE BB'
----------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Shree Gajanan Paper & Boards Pvt Ltd.

                                 Amount
   Facilities                 (INR crore)    Ratings
   -----------                -----------    -------
   Long-term Bank Facilities     16.79       'CARE BB' Assigned
   Short-term Bank Facilities     6.00       'CARE A4' Assigned

Rating Rationale

The ratings of Shree Gajanan Paper & Boards Pvt Ltd (SGPBPL) are
constrained by its modest scale of operations in Kraft paper
segment which has limited value addition, vulnerability of its
profitability to raw material price volatility and presence in a
highly competitive paper industry.  The ratings are further
constrained by weak financial risk profile marked by very low
profitability, highly leveraged capital structure and moderately
stressed liquidity position.  The ratings, however, take into
account the long track record of SGPBPL in the business and stable
demand indicators from the packaging industry.  SGPBPL's ability
to diversify its product base, improve its operating efficiency
yielding better profitability margins and improvement in debt
protection metrics are the key rating sensitivities.

SGPBPL was incorporated in 1995 as a private limited company to
make Kraft Paper at Vapi. It was promoted by Mr. Madanlal Agrawal
& his family and it started commercial production with an
installed capacity of 40 MT per day in 1998. SGPBPL has upgraded
and expanded its facility over a period of time to reach capacity
of 43,800 MTPA in Dec 2009. SGPBPL has group concerns which
are also engaged in the paper industry namely, M/s Paper Sales
Corporation (trading of waste paper), M/s Nidhi Sales Corporation
(trading of waste paper) and M/s Sudha Paper Box Pvt Ltd
(manufacturing of corrugated paper boxes).

As against a PAT of INR0.12 crore on a total operating income of
INR37.92 crore in FY09, SGPBPL earned a PAT of INR0.04 crore on a
total operating income of INR39.83 crore. Further, as per
Unaudited result for FY11, SGPBPL reported total income of
INR51.80 crore with PAT margin of 0.85%.


SHREE GIRIVAR: CARE Rates INR4.5cr Long-Term Loan at 'CARE BB'
--------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Shree Girivar Enterprises Pvt. Ltd.

                                 Amount
   Facilities                 (INR crore)     Ratings
   -----------                -----------     -------
   Long-term Bank Facilities      4.50        'CARE BB' Assigned
   Short-term Bank Facilities     1.00        'CARE A4' Assigned


Rating Rationale

The ratings are constrained by SGEPL's relatively small size of
operations, very low profitability margins due to trading nature
of operations, customer and supplier concentration risk, high
utilization of working capital related borrowings and cyclical
nature of steel industry.  The ratings derive strength from the
reasonable experience of promoters in steel trading business,
moderate interest coverage ratio and support from promoters
through fund infusion into SGEPL.  SGEPL's ability to efficiently
manage the working capital requirement and control price and
credit risk are the key rating sensitivities.

Incorporated in 1980, Shree Girivar Enterprises Pvt. Ltd. is a
closely held company which is engaged in business of trading of
various steel products, iron ore fines and coal in and around
Nagpur (Maharashtra). Mr. Prashant Agrawal, Managing Director, has
10 years of experience in trading business while he is in steel
and coal trading business since FY07.  SGEPL procures and supplies
various traded steel products mainly from and to steel
manufacturers. In coal trading, it procures and supplies to
traders.  SGEPL achieved net sales of INR117.64 crore in FY11 with
PBILDT of INR1.59 crore and PAT of INR0.52 crore.


TRINITY BEVERAGES: CARE Rates INR33.32cr LT Loan at 'CARE BB+'
--------------------------------------------------------------
CARE assigns 'CARE BB+ and CARE A4+' ratings to the bank
facilities of Trinity Beverages Pvt. Ltd.

                                  Amount
   Facilities                  (INR crore)    Ratings
   -----------                 -----------    -------
   Long-term Bank Facilities      33.32       'CARE BB+' Assigned
   Short-term Bank Facilities      0.90       'CARE A4+' Assigned

Rating Rationale

The rating is constrained by the small size of operations, limited
brand presence of 'Royal Crown' in Indian domestic market
resulting in saleability risk associated with the proposed large
capacities, large expansion programme which is predominantly debt
funded and time overrun in the same. The ratings have also taken
into account the low corporate governance levels with family
centric management and highly competitive and seasonal beverage
industry. The rating is however underpinned by the experience of
promoters and management team, existing franchisee
agreements and moderate marketing and distribution network.
Ability of the company to increase the market share of 'Royal
Crown' brand, complete the ongoing capacity expansion without
further time overrun, within the budgeted cost and further the
stabilization of project capacities are the key rating
sensitivities.

Trinity Beverages Pvt. Ltd. was incorporated in July 2002. In
2006, Mr. Kishore Agarwal (Present M.D.) took over the entire
management of the company. The company is engaged in the
business of manufacturing beverages and also deals in packaged
drinking water and soda. TBPL is part of the Iceberg Group of
companies. TBPL has its manufacturing unit located at Hyderabad
and is presently setting up a new manufacturing unit in Bengaluru.
The production capacity of TBPL as on March 31, 2011 was 60
Bottles per minute (BPM) for packaged drinking water, 200 Jars per
hour (JPH) for 20 litre jars of packaged drinking water and 200
BPM for CSD/FD/Soda.  The company along with its group company is
the sole franchisee for Royal Crown brand, USA for sale of
flavoured drinks (Carbonated/Non carbonated) in India. Further
TBPL has franchisee agreement with United Breweries Limited for
Kingfisher brand for sale of packaged drinking water and soda in
the state of Andhra Pradesh.


WATERLINE HOTELS: CRISIL Puts 'CRISIL B+' Rating on INR220MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Waterline Hotels Pvt Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR220 Million Long-Term Loan    CRISIL B+/Stable (Assigned)
   INR50 Million Proposed LT Bank   CRISIL B+/Stable (Assigned)
                    Loan Facility

The rating reflects WHPL's exposure to risks related to funding,
implementation, and commercialization of its ongoing projects and
the company's vulnerability to downturns in economic cycles. These
rating weaknesses are partially offset by the strategic location
of WHPL's projects, its strategic agreement with Alila Hotels and
Resorts, Singapore for hospitality projects, and the benefits it
derives from the extensive experience of its parent, UKN
Properties Pvt Ltd (UKN), in the real estate industry.

Outlook: Stable

CRISIL believes that WHPL will continue to benefit over the medium
term from its promoter's extensive experience in the construction
industry and the support it receives from UKN. CRISIL does not
expect any significant cost or time overrun in WHPL's ongoing
projects. The outlook may be revised to 'Positive' if WHPL
generates larger-than-expected cash flows resulting from faster-
than-expected completion of its ongoing projects, or if the
company's liquidity improves following higher-than-expected
occupancy or sales realizations from its ongoing projects.
Conversely, the outlook may be revised to 'Negative' if there are
significant time and cost overruns in WHPL's ongoing projects,
resulting in delays in commercialization of operations or
deferment of receipts from customers, or if there is a significant
fall in realizations, thereby weakening the company's financial
risk profile, especially liquidity.

                        About Waterline Hotels

Incorporated in 2008, WHPL is engaged in developing two projects -
Alila Hotel in Bangalore (Karnataka) and resort-cum-luxurious
villas under the venture, Feroke Project in Kozhikode (Kerala).
The company is promoted by the UKN and Kshema Geo Holdings Pvt
Ltd.

Alila Hotel is being developed as a 120-key five-star hotel,
wherein WHPL is carrying out the interior work. The project is
expected to become operational by July 2011. The operational
management is being undertaken by the Alila group. Feroke Project
comprises 35 luxury villas and a holiday resort with over 120
keys. The project is being developed on a 27-acre waterfront
property on the banks of Chaliar river in Feroke, near Kozhikode
in Kerala. The project is coming up in three phases -- the first
phase involves construction of 20 villas, the second phase
involves construction of 15 villas, and the third involves the
development of the resort. Construction work for the first phase
is expected to commence in July 2011. The day-to-day operations of
the project are managed by WHPL's promoter-director, Mr. Gautam
Nambisan.

Established in 1997 by Mr. Nambisan, UKN is engaged in real estate
development, primarily commercial, and has developed nearly 3
million square feet of commercial, retail and hospitality spaces.

Kshema Geo Holdings Pvt Ltd, the other major shareholder in WHPL,
is a part of the Vesco group, which has business interests in
metals and mining industry and operates in the Sandur-Hospet-
Bellary mining belt.


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


BAKRIE TELECOM: Fitch Affirms Long-Term Currency IDRs at 'B'
------------------------------------------------------------
Fitch Ratings has revised Indonesia-based P.T. Bakrie Telecom's
Outlook to Negative from Stable. Its Long Term Foreign and Local
Currency IDRs (LTLC) have been affirmed at 'B'.  At the same time,
the agency has affirmed BTEL's senior unsecured rating at 'B'.

The Negative Outlook reflects the risk that BTEL's leverage and
coverage ratios may remain in breach of the agency's negative
rating action guidelines, particularly if management's guidance
for strong revenue growth during FY11 does not materialize. Lower
than expected revenue growth caused BTEL's net adjusted debt to
EBITDAR leverage to increase to 4.1x at FYE10 from 3.6x at FYE09,
slightly above the agency's negative rating guidance of 4.0x, and
its funds from operations interest coverage to fall to 3.1x from
3.9x during the same period.

Despite BTEL's subscriber count growing by a robust 23% during
FY10, revenue only grew 0.8% yoy, before falling 1.3% yoy in
Q1/11. Management is expecting a significant improvement in FY11,
guiding for its gross revenues to grow by 30% to approximate
IDR4.5trn. However, Fitch's Negative Outlook takes into
consideration the ongoing downward pressure on BTEL's average
revenue per user (ARPU) due to competitive pressures in the
Indonesian Telecom market, as well as the high capital expenditure
requirements BTEL is facing during FY11 and FY12. While Fitch
expects that BTEL's subscriber base will continue to grow in FY11,
the extent of revenue growth is likely to be limited if ARPUs
continue to fall, and the company's EBITDA margins (FY10: 48.3%)
could also come under pressure.

The ratings may be downgraded if adjusted net debt to EBITDAR
leverage remains above 4x, and operating EBITDA to gross interest
expense coverage falls below 2.5x over the next two years.
Conversely, the Outlook may be revised to Stable if the reverse of
these measures takes place.

The ratings reflect BTEL's position as Indonesia's second-largest
operator of code division multiple access (CDMA) technology and
the fifth-largest cellular operator by subscriber market share.
BTEL's subscribers totalled over 13 million at FYE10, representing
5.5% of the Indonesian cellular market. Following the receipt of
full mobility from the regulator in April 2011, BTEL's subscribers
will be able to receive network coverage island-wide, allowing the
company to compete on a more equal footing with GSM operators that
dominate the Indonesian telecom market.

Fitch notes that during FY10 BTEL launched broadband wireless
access (BWA) data services based on its CDMA EVDO technology.
Strong growth from a low base is likely during FY11 and FY12, and
BTEL expects this service to contribute 13% of total gross
revenues during FY12.

Notwithstanding its attractive EBITDAR margin above 45%, BTEL's
rating is constrained by its position as a sub-scale operator in a
highly competitive market, high interest payments and high capex
requirements that may result in negative free cash flow generation
(FCF). Compared to actual capex of IDR 1.8tn in FY10, and budgeted
capex of IDR 1.6tn in FY11, the company is projecting capex to
fall to about 50% of 2011's level from 2012 onwards. Fitch notes
that this is in contrast to most other telecom companies
worldwide, which are expecting capex to remain stable or increase
to maintain product competitiveness and service value. Accordingly
there is a risk that BTEL's capex reduction plan could decelerate
the company's growth compared to the industry over the medium
term.

BTEL's ratings are a notch below its standalone rating of 'B+',
due to corporate governance issues and the weak financial and
liquidity position of its parent, PT Bakrie Brother Tbk (BNBR),
which has a 45.05% direct and indirect interest in BTEL. BTEL's
dividend payout policy is to distribute 15%-25% of net income
after tax, but debt covenants have prevented the company from
distributing dividends whilst FCF generation remains negative.
Deterioration in the financial and liquidity position of BNBR, or
worsening corporate governance, may lead to negative rating
action. Conversely, a significant weakening of the linkage between
BNBR and BTEL may result in BTEL being rated at its standalone
level.


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


FOR EVERYONE: Fails to File Financial Reports; May Be Struck Off
----------------------------------------------------------------
The New Zealand Press Association reports that For Everyone, a
company owned by All Blacks trio Dan Carter, Richie McCaw and Ali
Williams, has been given a warning for not filing financial
documents.

NZPA, citing Fairfax's BusinessDay.co.nz, relates that For
Everyone, also the brand name for the trio's bottled water and
flavored milk products, has been warned that it could be struck
off the registrar of companies after it failed to file an annual
return at the Companies Office by the end of June.

For Everyone is owned by Premium New Zealand Trading Co, of which
Messrs. McCaw, Carter and Williams are shareholders.

According to NZPA, the warning from the registrar of companies
comes after Mr. Williams, the sole director of Premium New Zealand
Trading Co, told the New Zealand Herald the three had lost money
in the business.


RMB TRUSTEE: Fitch Cuts Rating on NZD18.5MM Notes to 'Bsf'
----------------------------------------------------------
Fitch Ratings has downgraded RMB Trustee Limited's NZD18.5m Rated
Mortgage CM 2006-1 Trust floating-rate notes to 'Bsf' from 'BBsf'.
The Outlook is Negative and the Loss Severity Rating is 'LS3'.

The underlying assets of the transaction are 'Bsf' rated mortgage-
backed securities issued through a securitization program,
established by Propertyfinance Securities Limited. The downgrade
reflects the recent deterioration in the performance of the
underlying notes, due to weak performance of the underlying
commercial mortgages.

"Fitch expects the crystallization of losses to undermine the
performance of the mortgage portfolio in the coming months. This
is likely to have an adverse impact on the level of subordination
available to the underlying junior notes," said Spencer Wilson,
Associate Director in Fitch's Structured Finance team.

The Negative Outlook reflects the potential impact of those loans
that are pending foreclosure, while the underlying portfolio is
vulnerable to further deterioration due to foreseeable slow
prepayment rates.


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


PHILIPPINE AIRLINES: Sees Tougher Times Ahead as Fuel Prices Rise
-----------------------------------------------------------------
Philippine Daily Inquirer reports that flag carrier Philippine
Airlines sees more dark clouds ahead as high fuel prices and
challenging industry conditions pose risks to the company's growth
this year.

PAL, however, noted several bright spots in the industry that had
all local airlines post healthy gains in the first quarter of the
year, the Inquirer relates.

The carrier said government data showed the PAL remained the
country's top international airline based on passenger volumes and
revenues.

According to the Inquirer, PAL said it "bested its local
competitors in international passenger traffic" as it flew a total
of 1.06 million passengers, up 7% from 942,144 passengers in the
same period last year.  First-quarter figures from the Civil
Aeronautics Board (CAB) show that PAL's inbound passengers stood
at 477,039 and outbound, 529,212, the Inquirer notes.

Translated into Revenue Passenger Kilometers (RPK) or number of
passengers multiplied by distance traveled, PAL registered 5
billion RPKs for the first three months of 2011, according to the
Inquirer.

Of this number, 4.25 billion RPKs represented PAL's international
traffic, while the domestic sector accounted for the balance, the
Inquirer discloses.

The Inquirer adds that PAL attributed the first-quarter
performance to enhanced marketing and promotional strategies and
the market's renewed appetite for travel.

As reported in the Troubled Company Reporter-Asia Pacific on
April 21, 2010, the Manila Bulletin said PAL is to spin off three
of its non-core units as a last resort to avoid bankruptcy.  These
units are the inflight catering services; the airport services,
including ground handling, cargo handling and ramp handling; and
the call center reservations services.  The PAL Employees Union
estimated that 2,000 to 4,000 employees assigned to those
departments could be retired.  PAL said competition from overseas
carriers, slower global economic growth, and higher oil prices had
prompted the airline to slash its non-core businesses.  The
carrier had approached several investors but failed to secure
financial help, and equity had dropped to US$1.1 million as of
Feb. 2010, according to the Manila Standard.

The TCR-AP, citing BusinessWorld Online, reported on July 28,
2010, that PAL announced a narrower loss for the fiscal year
ended March 2010 to $14.3 million, from the previous year's
$297.8 million, but warned of still weak demand for international
flights.

                    About Philippine Airlines

Philippine Airlines -- http://www.philippineairlines.com/-- is
the Philippines' national airline.  It was the first airline in
Asia and the oldest of those currently in operation.  With its
corporate headquarters in Makati City, Philippine Airlines flies
both domestic and international flights.  First taking off in
1941, the carrier has grown into a fleet of about 40 aircraft
(including five Boeing 747-400s) flying to more than 20 domestic
points and about 30 foreign destinations.


================
S R I  L A N K A
================


* SRI LANKA: Fitch Upgrades Issuer Default Ratings to 'BB-'
-----------------------------------------------------------
Fitch Ratings has upgraded Sri Lanka's Long-Term Foreign and Local
Currency Issuer Default Ratings to 'BB-' from 'B+'.  The Outlooks
on both ratings are Stable. At the same time, the agency upgraded
the Country Ceiling to 'BB-' from 'B+' and affirmed the Short-Term
Foreign-Currency IDR at 'B'.

"The upgrade reflects the stabilization and recovery of the
economy under the country's IMF programme and increased efforts to
address the chronic budget deficit position," said Art Woo,
Director in Fitch's Asia Sovereign Ratings group.

Real GDP grew an impressive 8% in 2010, up from a 3.5% rise in
2009 as Sri Lanka's post-war economic transformation, particularly
the integration of the war-torn northern and eastern provinces,
continued to gain traction. In tandem, the current account
position has held up well, with a deficit of 2.9% of GDP in 2010,
compared with the peak shortfall of 9.5% in 2008. Moreover, the
positive economic momentum extended into 2011: GDP rose 7.9% yoy
in the first quarter due in part to strong demand for exports,
particularly garments and textiles. As a consequence, Fitch
forecasts real GDP to grow 7.5%-8% in 2011 and 2012.

Consumer price inflation, which has historically proven to be both
high and volatile, has been relatively well behaved, rising 7.5%
yoy in H111, compared with a 6.2% rise in 2010. The benign outcome
is especially encouraging given that the domestic agriculture
sector suffered a sharp downturn in output earlier in the year and
global food and energy prices remain elevated. Fitch forecasts CPI
to be 7.5% in 2011 and 6.8% in 2012.

Sri Lanka has also made some important headway in consolidating
its fiscal deficit, which is one of the sovereign's key rating
weaknesses, particularly when compared with 'BB' rating category
peers. The budget deficit was brought down to 8% of GDP in 2010,
from 9.9% in 2009. Moreover, many recommendations by the
Presidential Commission on Taxation, which was formed in mid-2009
to review the country's tax system, were implemented in the 2011
budget. This should enable the authorities to achieve, or at least
come close to, the budget deficit targets of 6.8% of GDP for 2011
and 5.2% for 2012.

If Sri Lanka is able to continue consolidating the fiscal
position, its public debt dynamics should be placed on a more
sustainable path. Fitch notes that Sri Lanka's public debt-to-GDP
ratio stood at 82% of GDP in 2010, which is well above the 'B' and
'BB' peer rating group medians of 40% and 41% respectively.

Weak external finances also weigh on Sri Lanka's ratings. Net
external debt was 30% of GDP in 2010, which is well above the 'B'
and 'BB' range medians of 9.4% and 7.4% respectively. However,
official foreign exchange reserves have recovered to USD7.2bn in
April 2011, from a trough of USD1.3bn in March 2009 before Sri
Lanka entered into a USD2.6bn stand-by arrangement with the IMF.
The ability to attract non-debt capital inflows, specifically
foreign direct investment (FDI), would not only help reduce Sri
Lanka's reliance on external debt but could also improve the
overall competitiveness of the economy. However, FDI following the
end of the civil war has been surprisingly weak, totalling just
USD478m (or 1% of GDP) in 2010.

Fitch would view the authorities' ability to continue
consolidating the budget deficit, by both enhancing the tax
revenue base and rationalizing expenditures, and in tandem
lowering the level of public debt as supportive for Sri Lanka's
ratings. A sustained period of strong economic growth,
particularly if accompanied by an improvement in the investment
climate and private sector capital spending, would also be
supportive for the ratings. In contrast, continued double-digit
inflation or deterioration in political stability would put
downward pressure on Sri Lanka's ratings.


* SRI LANKA: Moody's Assigns Positive Outlook on Sovereign Rating
-----------------------------------------------------------------
Moody's Investors Service has changed the outlook on Sri Lanka's
B1 foreign currency sovereign rating to positive from stable.

The key drivers for the decision are:

  1. An increasingly evident peace dividend reflected in greater
     macroeconomic and financial stability;

  2. A policy orientation of fiscal reform and economic growth,
     supported by a successful IMF program;

  3. An improving external payments position; and

  4. A reduction in political event risk following the end of the
     civil war in 2009.

Rationale for the Outlook Change to Positive

After the long-running civil war ended two years ago, Sri Lanka
has started to reap a peace dividend that has accrued to the
economy and the security environment. The economy is expected to
grow sustainably at around 8 to 9 percent over the medium-term as
confidence is further bolstered and investment picks up.

Greater macroeconomic stability is seen in a downward trend in
inflation from very high levels evident during the civil war. The
re-integration of the northeastern part of the country formerly
controlled by the separatist Tamil movement is helping to raise
food supply.

Although the government budget has not directly gained from the
end of the conflict as defense mobilization remains high, a
benefit is being realized by the sharp tightening in yields on
government bonds. Nevertheless, the budget deficit is gradually
declining in line with annual targets set out in the government's
IMF program.

External vulnerabilities are also expected to ease in the near
term. Relatively moderate current account deficits should continue
to be easily financed, in part by rising inflows of foreign direct
investment, as reflected in small balance of payment surpluses
that have led to a steady rise in foreign exchange reserves.
Merchandise export performance and tourism receipts have been
especially buoyant early this year. In addition, Sri Lanka is
rapidly building up its port cargo capacity, exploiting its
strategic location astride the main shipping lane between the
Middle East, South Asia, and Southeast Asia.

Rating Constraints

The main challenge facing the government is the reduction of its
large debt overhang and the consequently large debt servicing
costs. Among non-investment grade credits, only Lebanon, Jamaica,
Ireland, and Portugal surpass Sri Lanka in terms of general
government debt as a share of GDP. On a net present value basis,
however, the debt burden is lower owing to a considerable share of
concessional debt. Nonetheless, Sri Lanka is well-placed to grow
out of its debt given its robust outlook for growth.

Re-integration of the Tamil minority in the war-torn northeast
region is progressing, namely in the provision of humanitarian
assistance and supporting development projects. However, the
process of political reconciliation is at an early stage and will
need to advance further to ease persisting concerns about
political risk. As such, Moody's assessment of event risk remains
somewhat elevated, but at a moderate level in our global bond
methodology framework.

Future Rating Triggers

Continued deficit reduction as targeted by the government coupled
with the containment of inflation amidst sustained high rates of
growth would be credit positive developments over the 12-18 month
rating horizon. Such developments would lead to a steady reduction
in the government's debt burden and would enlarge the government's
fiscal space to cope with future contingencies or shocks.

In other words, a longer track record in effective policy
management by the post-civil war government would be viewed as
credit positive.

Methodology

The principal methodology used in this rating was Sovereign Bond
Ratings published in September 2008.


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


NANYA TECHNOLOGY: 2nd-Quarter Net Loss Widens to NT$7.9 Billion
---------------------------------------------------------------
Tim Culpan at Bloomberg News reports that Nanya Technology Corp.
posted a sixth consecutive quarter of losses on slowing demand for
computers.

Nanya said second-quarter loss widened to NT$7.9 billion (US$273
million) from an NT$1.1 billion loss a year earlier.  The average
of seven analysts' estimates compiled by Bloomberg was for a
NT$5.3 billion loss. Inotera Memories Inc. (3474), Nanya's
Taoyuan-based venture with Micron Technology Inc., had a
NT$3.9 billion loss, also worse than estimates.

Global computer shipments climbed 2.3% in the second quarter, less
than an expected 6.7%, researcher Gartner Inc. said July 13.  A
10% increase in the quarter for prices of dynamic random-access
memory, the most common chip in computers, wasn't enough to return
the companies to profitability.

Nanya's second-quarter revenue dropped 27% from a year earlier to
NT$11.5 billion, while Inotera's fell 10% from a year earlier to
NT$10.1 billion. Inotera's loss is its sixth in row on a quarterly
basis.

                       About Nanya Technology

Based in Taiwan, Nanya Technology Corp. (TPE:2408) --
http://www.nanya.com/-- is principally engaged in the
manufacture, development and sale of memory products.  The company
primarily offers dynamic random access memory (DRAM) chips,
including double data rate (DDR) DRAM chips, DDR2 DRAM chips and
DDR3 DRAM chips; DRAM modules, such as 200-pin DDR small outline
(SO) dual in-line memory modules (DIMMs), 184-pin registered and
unbuffered DDR synchronous dynamic random access memory (SDRAM)
DIMMs, 200-pin DDR2 SODIMMs, 240-pin unbuffered and registered
DDR2 SDRAM DIMMs and others.  DRAMs are used as data storage units
for computer, communications and consumer (3C) products.

Nanya Technology posted a net loss of NT$35.23 billion, or NT$7.54
per diluted share, for the 2008 fiscal year, compared with a
net loss of NT$12.46 billion in the prior year.

In the fiscal year of 2009, the company posted unaudited sales
revenue of NT$42.456 billion with an operating loss of NT$16.076
billion and a net loss of NT$20.74 billion.


===============
T H A I L A N D
===============


PICNIC CORP: Three Sixty Five Joins Srivikorn in Takeover Bid
-------------------------------------------------------------
Bangkok Post reports that Three Sixty Five Plc, a small media
agency, is joining property tycoon Pimol Srivikorn in a bid take
over the debt-ridden Picnic Corp.

According to Bangkok Post, Mr. Pimol said earlier this year that
he was seeking a partner to take over 85% of Picnic after
creditors approved the company's debt restructuring plan.

Bangkok Post discloses that Mr. Pimol was a former director of the
Thai Rak Thai Party and served as secretary to Somkid
Jatusripitak, the finance minister under Thaksin.  The Srivikorn
family's property holdings include the InterContinental Hotel at
the Ratchaprasong intersection in central Bangkok.

TSF, which is listed on the Market for Alternative Investment,
used to be the public-relations agency 124 Communications until it
was acquired by new investors and renamed.

Bangkok Post relates that TSF told the Stock Exchange of Thailand
on July 19 that its board had approved a plan to acquire at least
51% of the shares in Picnic, pending approval by TSF shareholders,
Picnic's debt rehabilitation planner and creditors.

Wittawat Wetchabutsakorn, assistant director of Avantgarde
Capital, the financial adviser to TSF, said the media firm would
have to raise THB2.1 billion if the acquisition is approved,
Bangkok Post notes.

The funds, according to Bangkok Post, would be used to purchase
THB1.7 billion worth of new shares, another 100 million worth of
shares offered to creditors in a debt-equity swap, 100 million for
working capital and the rest to shares from minority shareholders
through a tender offer.

As reported in the Troubled Company Reporter-Asia Pacific on
Feb. 2, 2011, Bangkok Post said Srivikorn and other investors will
take an 85% stake in Picnic Corp. after creditors approved the
company's debt restructuring plan.  Creditors holding THB7.396
billion in debt, including Krung Thai Bank and United Overseas
Bank (Thai), voted 79.56% to keep the cooking gas distributor
afloat.  Under the plan, creditors will accept a haircut of more
than 75% of their obligations, to THB1.8 billion.  Shareholders
will also accept a capital writedown to help clear losses of THB11
billion.  Creditors will hold 5% of the restructured company, with
former shareholders, who include 10,000 retail investors as well
as the founding Lapvisuthisin family, holding the remaining 10%,
Bangkok Post added.

                           About Picnic

Picnic Corporation Public Company Limited is a Thailand-based
company engaged in the distribution of liquefied petroleum gas
(LPG) under the name Picnic Gas.  It also provides installation
services for electrical systems, water supplies and air
conditioners.

Picnic Corp entered into court-supervised restructuring in
December 2009.

Picnic's last reported result was a loss of THB946.3 million for
the first half of 2009.  Its LPG market share has fallen by half
to just 4-5% in recent years.

According to Bangkok Post, the company has been the subject of
numerous investigations since 2004.  The SEC accused Picnic and
members of the Lapvisuthisin family of accounting fraud in 2005,
but the case was dismissed in 2007 for lack of evidence.
Regulators filed a new complaint in 2009 against Suriya
Lapvisuthisin, a deputy commerce minister in the Thaksin
government, for colluding to defraud Picnic in the transfer of
holdings in World Gas to another company prior to entering
rehabilitation.


                             *********

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.





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