TCRAP_Public/110829.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R  

                      A S I A   P A C I F I C  

            Monday, August 29, 2011, Vol. 14, No. 170

                            Headlines


A U S T R A L I A

MERIDIEN MARINAS: Government Couldn't Stop Receivership Process
SYDNEY OPERA: Falls Into Receivership
* AUSTRALIA: ASIC Cancels John Lord's Liquidator Registration


C H I N A

FRANSHION PROPERTIES: Moody's Says 1H Results No Impact on Rating
LDK SOLAR: S&P Puts 'B+' Corp. Credit Rating on Watch Negative
SHENGDATECH INC: CEO Can't Interfere With Internal Fraud Probe


H O N G  K O N G

BAYLIS & HARDING: Vettoretti Alberto Steps Down as Liquidator
BLS (HK): Commences Wind-Up Proceedings
BOXWOOD COMPANY: Creditors' Proofs of Debt Due Sept. 26
DEEPER LIMITED: Ng Kim Ming Steps Down as Liquidator
FAN WAH: Commences Wind-Up Proceedings

GLOBE JOY: Lau Hin Chi Steps Down as Liquidator
HENTELL LIMITED: Members' Meeting Set for Sept. 26
MERIT HONEST: Members' Final Meeting Set for Sept. 28
NEC INFRONTIA: Commences Wind-Up Proceedings
R&F TRADING: Park Soon Il Steps Down as Liquidator

SKYNET LIMITED: Ho Wai Ip Steps Down as Liquidator
SWINTON GROUP: Creditors' Proofs of Debt Due Sept. 30
TESSILFORM ASIA: Creditors' Proofs of Debt Due Sept. 26
TULLETT LIBERTY: Seng and Lo Step Down as Liquidators
WIDE GLOBE: Creditors' Proofs of Debt Due Sept. 30


I N D I A

BLUES CLOTHING: Fitch Assigns 'Fitch BB+(ind)' National LT Rating
CHIRAYU CHARITABLE: CRISIL Cuts Rating on INR330MM Loan to 'B+'
DATA PATTERNS: CRISIL Reaffirms 'CRISIL BB' Cash Credit Rating
DIEHARD DIES: CRISIL Reaffirms 'CRISIL D' Rating on INR160MM Loan
FRANCO LEOME: CRISIL Ups Rating on INR2.7MM Loan to 'CRISIL BB+'

GAYATRI TRADERS: CRISIL Rates INR27MM LT Loan at 'CRISIL BB-'
GLOBAL PHARMATECH: CRISIL Cuts INR45MM Loan Rating to 'CRISIL B'
JAI BHARAT: CRISIL Raises Rating on INR480MM Loan to 'CRISIL BB+'
KANAK EXPORTS: CRISIL Cuts Rating on INR43.5MM Loan to 'CRISIL D'
KHAYATI STEEL: CRISIL Puts 'CRISIL B+' Rating on INR163.5MM Loan

LOHIA ALLOYS: CRISIL Rates INR31.7MM Term Loan at 'CRISIL BB'
LORD CHAITANYA: CRISIL Rates INR68MM Term Loan at 'CRISIL B+'
MAHABIR TECHNO: CRISIL Reaffirms 'CRISIL B+' Cash Credit Rating
MEERA COTTON: CRISIL Ups Rating on INR84.2MM Loan to 'CRISIL BB+'
NARAYAN POLYURETHANE: CRISIL Rates INR9MM Loan at 'CRISIL B+'

PRAKASH GLASS: CRISIL Assigns 'CRISIL BB' Rating to INR5MM Loan
RIDDHI ENTERPRISES: CRISIL Rates INR10MM Term Loan at CRISIL BB-
SHAKO FLEXIPACK: CRISIL Puts 'CRISIL BB' Rating on INR45.5MM Loan
SHIVALIK POLYADD: CRISIL Rates INR8.6MM Loan at 'CRISIL BB-'
SHIVPRIYA FABRICS: CRISIL Rates INR5MM LT Loan at 'CRISIL B+'

SHREE SAI: CRISIL Cuts Rating on INR55.2MM Loan to 'CRISIL BB-'
SIGMA PACKAGING: CRISIL Puts CRISIL B+ Rating on INR150.4MM Loan
SREE MURALI: CRISIL Reaffirms CRISL BB Rating on INR60MM LT Loan
UMA CONVERTER: CRISIL Reaffirms 'CRISIL BB-' Cash Credit Rating
VALSON POLYESTER: CRISIL Reaffirms INR196.1MM Loan at 'CRISIL B+'

VINTECH INDUSTRIES: CRISIL Rates INR122MM Loan at 'CRISIL BB'
WEST COAST: CRISIL Reaffirms 'CRISIL B-' on INR35MM Cash Credit


J A P A N

TOKYO ELECTRIC: Personnel Costs Higher V. Other Firms, Says Panel
* JAPAN: Moody's Takes Negative Rating Actions on Banks


K O R E A

* SOUTH KOREA: Most Large Builders on Verge of Bankruptcy, KSERI


N E W  Z E A L A N D

KIA KAHA: Placed in Liquidation Over Unpaid Tax Bill
MOOREHOUSE CONSTRUCTION: In Liquidation; Blames Insurance Woes
PIKE RIVER: Mine Sale Process Could Continue Until Next Year


P H I L I P P I N E S
PHILIPPINE AIRLINES: Sends Termination Letters to 2,600 Workers
RURAL BANK OF INDANG: BSP Places Bank Under Receivership


                            - - - - -


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


MERIDIEN MARINAS: Government Couldn't Stop Receivership Process
---------------------------------------------------------------
Josh Bavas and Jennifer Huxley at ABC News report that the
Queensland government said there was nothing it could do to
prevent the AU$200 million Meridien Marinas Port of Airlie project
from going into receivership.  The report relates that
administrators took control of the project last week.

Meridien Marinas said the project moved into receivership because
of a combination of the global financial crisis, cyclones, the
strong Australian dollar, and the tourism downturn, according to
ABC News.

Receivers McGrathNicol said that all of the Airlie Beach
businesses, including a retail and dining precinct, will continue
trading as usual, ABC News notes.

The report discloses that the company said it is working closely
with Meridien Marinas to determine the Port of Airlie's financial
position.  It said steps will be taken to stabilize the company,
the report adds.


SYDNEY OPERA: Falls Into Receivership
-------------------------------------
SmartCompany reports that the Sydney Opera House car park has
fallen into receivership, reportedly after lower numbers of
executives in surrounding office buildings opted to use the
property.

The Australian Financial Review reported that the car park has
fallen into the hands of receivers KordaMentha, according to
SmartCompany.  David Merryweather and Martin Madden were appointed
to the property, the report relates.

SmartCompany notes that the receivership was sparked by the Royal
Bank of Scotland, which is owed AU$70 million and wants to make
the facility profitable.  However, SmartCompany notes that it is
reported that various investors may not receive their money back.

SmartCompany recalls that the facility was purchased by Mariner
Financial in 2004 from Mulpha Australia for about AU$75 million.

However, SmartCompany discloses that according to a Mariner
Financial report, this was sold to the Real Estate Capital
Partners Property Trust in 2009 -- that trust continues to claim
the car park as its main asset on its website.

That deal came as Mariner Financial changed its name to Mariner
Corporation and moved away from real estate investment into being
a more "diversified investment company," SmartCompany says.

SmartCompany relays that earlier this year, Real Estate Capital
Partners told investors that its two most viable options for the
asset were to either sell it entirely, or refinance the existing
debt facility.  It also referenced AU$75 million of debt owed to
the Royal Bank of Scotland, SmartCompany adds.


* AUSTRALIA: ASIC Cancels John Lord's Liquidator Registration
-------------------------------------------------------------
The Australian Securities and Investments Commission has cancelled
the registration of one New South Wales-based liquidator and
required a second to enter into an undertaking, under section 1291
of the Corporations Act 2001 (the Act), after the liquidators
consistently failed to disclose conflicts of interest in more than
100 administrations to which they were appointed.

John Frederick Lord, 59, a former partner of accounting firm PKF
Chartered Accountants and Business Advisers (PKF), had his
official liquidator registration cancelled because, from April 8,
2004, to March 6, 2009, he did not disclose to the Supreme Court
of New South Wales that he had a commercial relationship with the
petitioning creditor of 225 companies in respect of which he
consented to act as official liquidator.

Atle Crowe-Maxwell, a current partner of PKF, also failed to
disclose the same information to the Court for 105 administrations
in which he consented to act as official liquidator, over the
period from July 19, 2007, to March 6, 2009.  As a result, ASIC
has required Mr. Crowe-Maxwell to enter into an undertaking with
ASIC.

Following its investigations, ASIC formed the view that Mr. Lord
and Mr. Crowe-Maxwell's acceptance and maintenance of the role of
official liquidator in these circumstances while at the same time
both being indirect shareholders -- and in the case of Mr. Lord,
being a director as well -- of debt collector, Premium Collections
Pty Limited (Premium Collections), was a breach of their duties as
fiduciaries to reveal potential conflicts of interest.

Mr. Lord's de-registration as an official liquidator comes into
effect immediately.

ASIC Commissioner Michael Dwyer said ASIC considered it in the
public interest to take action against Mr. Lord and Mr. Crowe-
Maxwell.

"ASIC's decisions highlight the need for practitioners to be aware
of their overriding obligation to both be and be seen to be
independent," Mr. Dwyer said.

"The independence of liquidators underpins, and is the foundation
of, an effective and efficient system of corporate insolvency."

Mr. Lord and Mr. Crowe-Maxwell have the right to appeal to the
Administrative Appeals Tribunal for a review of ASIC's decision.

Background

Mr. Lord was a director and indirect shareholder of Premium
Collections, a company that went into voluntary administration on
April 22, 2009. A liquidator was appointed to Premium Collections
on May 27, 2009.  Mr. Crowe-Maxwell was an indirect shareholder of
the same company.

Premium Collections provided debt collections services for workers
compensation insurers who were nominees of WorkCover. Two of those
insurers were the largest clients of Premium Collections.

Premium Collections issued demands on behalf of the insurers to
company policyholders whose workers compensation insurance
premiums were unpaid. If the premiums continued to remain unpaid,
Premium Collections recommended that their client, the relevant
workers compensation insurer, make an application to wind up the
debtor company.

From February 2008, Premium Advisory Pty Limited and PC Legal Pty
Limited provided legal services to the insurers in respect of the
winding up proceedings. Mr. Lord was an indirect shareholder of
both Premium Advisory and PC Legal. Mr. Crowe-Maxwell was an
indirect shareholder of Premium Advisory.

For the purpose of the winding up applications, Mr. Lord and
Mr. Crowe-Maxwell consented to act as official liquidators to the
debtor company. Each consent to act provided to the Court did not
refer to the existing commercial relationship with the insurer
that was the petitioning creditor.

The liquidator of Premium Collections lodged a supplementary
report with ASIC on April 19, 2010, under section 533(2) of the
Act.  ASIC undertook its own investigations which resulted in the
decisions to cancel Mr. Lord's registration and require an
undertaking from Mr. Crowe-Maxwell.


=========
C H I N A
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FRANSHION PROPERTIES: Moody's Says 1H Results No Impact on Rating
-----------------------------------------------------------------
Moody's Investors Service says that the 1H2011 results of
Franshion Properties (China) Limited were broadly in line with
Moody's expectations, and sees no immediate impact on its Baa3
corporate family rating and Ba1 bond rating.  The ratings outlook
remains stable.

"Franshion reported a 55% Y-o-Y decrease in turnover to HKD1.8
billion, as the sale of Block 1 at Shanghai Port International
Cruise Terminal was not reported as turnover according to the
accounting standards," says Kaven Tsang, a Moody's Assistant Vice
President and Analyst.

"After including this sale, the company's EBITDA rose 10% Y-o-Y to
HKD2.1 billion," adds Tsang, who is also Moody's Lead Analyst for
Franshion.

Meanwhile, Franshion achieved HKD5.4 billion in contract sales,
which is consistent with Moody's expectations. The recent sale of
Block 7 at Shanghai Port International Cruise Terminal for between
HKD2.5 billion and HKD3 billion will further support Franshion's
cash flow and turnover in 2H2011.

The performance of Franshion's investment properties have also met
Moody's expectations, supporting a stable and recurring EBITDA. In
1H2011, Franshion's adjusted recurring EBITDA, comprising net
rental income and 50% of hotel EBITDA, stood at HKD690 million,
which can fully cover its gross interest expenses of HKD629
million.

Franshion's three office buildings maintained their high occupancy
rates of over 95% in 1H2011, recording a 14.7% Y-o-Y increase in
gross rental income to HKD492 million from HKD429 million a year
ago. Meanwhile, the company's hotel revenues increased slightly to
HKD1,084 million from HKD1,007 million. Improvements in the
operations of the Westin in Beijing, JW Marriot in Shenzhen, and
the two hotels in Sanya, have more than offset a lower
contribution from the Grand Hyatt in Shanghai, which recorded a
strong year in 2010 due to the World Expo.

Franshion's adjusted debt, which includes 75% of perpetual
convertible securities (Basket B under Moody's Hybrid Assessment)
but excludes the company's entrustment loans, increased to HKD28.9
billion as of June 2011 from HKD19.6 billion a year ago, as the
company raised debt to fund its investment in the Changsha
project, and preserved liquidity due to China's tight bank credit
environment.

As a result, Franshion's financial metrics for 1H 2011 --
including adjusted debt/capitalization at 51% and EBITDA/interest
at 3.4x -- were positioned at the weaker end of its rating level.

As the company's total cash holdings also increased to HKD19.3
billion as of June 2011 from HKD13.3 billion as of end-2010, its
adjusted net debt/net capitalization increased moderately to 35%
from 25%. This level of net leverage is considered appropriate for
its Baa3 corporate family rating.

Moody's anticipates Franshion's financial profile will
progressively improve in the next 12-18 months as the current
contracted sales will be recognized over time and its recurring
income will increase when new investment properties are completed
between 2012 and 2013. These investment properties include the
Shanghai Port International Cruise Terminal, Shanghai
International Shipping Service Center, as well as hotels in
Lijiang and Shanghai.

Franshion has adequate liquidity. Its internal reserves, including
total cash holdings of HKD19.3 billion (HKD13.6 billion as
unrestricted cash), will be sufficient to cover its short-term
debt, planned construction expenditures, and unpaid land premiums
over the next 12 months. The potential sales of a portion of its
equity interests in the Changsha project would also provide some
funding for Franshion.

Additionally, as Franshion is a state-owned enterprise (SOE) and
subsidiary of Sinochem Hong Kong (Group) Company Limited
(Baa1/stable), Moody's expects that this will support the company
in accessing funding in both on- and offshore markets.

Nevertheless, a rating upgrade in the near term would be unlikely,
as Franshion's financial ratios will stay at the weak end of its
rating level against the high operating and regulatory
uncertainties in China's property market.

On the other hand, the rating could be downgraded if Franshion 1)
fails to implement its business plan, or China's property market
experiences a significant downturn, such that cash flow is weaker
than anticipated; 2) accelerates its development plans or performs
aggressive land acquisitions without a corresponding increase in
cash inflow; or 3) significantly increases its investments in
residential properties, materially altering its risk exposure and
credit profile.

Moody's would regard the following financial metrics as signals
for downward rating pressure: 1) adjusted debt/capitalization
above 45-50%; 2) EBITDA interest coverage less than 4-5x; or 3)
adjusted recurring EBITDA to interest coverage ratio less than 1x
on a sustained basis.

The principal methodology used in rating Franshion Properties
(China) Limited was the Global Homebuilding Industry Methodology
published in March 2009.

Listed on the Stock Exchange of Hong Kong in 2007, Franshion
Properties (China) Limited is a 62.87%-owned subsidiary of
Sinochem Hong Kong (Group) Company Limited, which in turn is 98%-
owned by Sinochem Group, a state-owned enterprise under State-
Owned Assets Supervision and Administration Commission. Franshion
develops commercial and integrated properties in first-tier and
major second-tier cities in China. As at June 30, 2011, Franshion
had a total land bank of approximately 3.46 million sq.m. of gross
floor area.


LDK SOLAR: S&P Puts 'B+' Corp. Credit Rating on Watch Negative
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B+' corporate
credit rating on China-based LDK Solar Co., Ltd., on CreditWatch
with negative implications. Standard & Poor's also placed its
'cnBB' Greater China credit scale rating on LDK on
CreditWatch with negative implications.

"We took the rating action after LDK lowered its financial
guidance for the second quarter and full year of 2011," said
Standard & Poor's credit analyst Jerry Fang. "We believe the
company is likely to attribute the revision largely to the drop in
market prices and worse-than-expected demand since the second
quarter."

"In our view, LDK's leverage may rise and remain high in 2011 if
the company's profitability is weaker than our expectation and if
the company's debt does not decline over the next two quarters,"
S&P related.

For full-year 2011, LDK lowered its revenue guidance to
$2.5 billion-$2.7 billion from $3.5 billion-$3.7 billion
previously, and gross margin to between 15% and 20%, from 24%-29%
previously. In our projection, these revisions are likely to lead
to a debt-to-EBITDA ratio of more than 5x and debt-to-capital
ratio of above 60% for full-year 2011, Mr. Fang said.

Standard & Poor's aims to resolve the CreditWatch placement within
the next three months when more information is available. The
information includes a detailed analysis of the company's first-
half results and an update on LDK's expected capital expenditures
under dampened market conditions, its liquidity, and financing
plan in next six to 18 months.

"We may lower the rating on LDK by one notch if we believe the
company's leverage may remain high in next 12 months. We may also
lower the rating if LDK's liquidity deteriorates or refinancing
risk heightens," S&P related.

"We may affirm the rating if we expect the company's leverage to
improve to within our previous expectation in next six to 12
months. We had previously expected LDK's debt-to-EBITDA ratio to
stay below 4x and its ratio of total debt to capital under 60%,"
S&P added.


SHENGDATECH INC: CEO Can't Interfere With Internal Fraud Probe
--------------------------------------------------------------
Michael Bathon at Bloomberg News reports that the chief executive
of ShengdaTech Inc., a Chinese chemical company that gained access
to U.S. investors through a reverse merger, was ordered by a judge
not to obstruct an internal probe.  

U.S. Bankruptcy Judge Bruce T. Beesley in Reno, Nevada, on Aug. 23
ordered the company's management and directors not to interfere
with a special committee's probe of fraud claims, according to
court papers.  The panel, comprised of independent directors on
the audit committee, was formed in March after KPMG LLP reported
"unexplained issues" in ShengdaTech's books.

Bloomberg recounts that the audit committee sued Chief Executive
Officer Chen Xiangzhi, the owner of about 42.2% of the company's
shares, and some of the company's directors on Aug. 20. The
complaint seeks to prevent Chen from regaining control of the
company and quashing the investigation of its finances.

The ruling also bars the defendants from trying to change the
composition of the committee, ShengdaTech said in a statement
Aug. 24.  The judge's restraining order will stay in effect until
a Sept. 2 hearing.  The Company said in a statement that it's
cooperating with the U.S. Securities and Exchange Commission,
which requested documents on Aug. 22.

                       About ShengdaTech

Headquartered in Shanghai, China, ShengdaTech, Inc., makes nano
precipitated calcium carbonate for the tire industry.  
ShengdaTech converts limestone into nano-precipitated calcium
carbonate (NPCC) using its proprietary and patent-protected
technology.  NPCC products are increasingly used in tires, paper,
paints, building materials, and other chemical products.  In
addition to its broad customer base in China, the Company
currently exports to Singapore, Thailand, South Korea, Malaysia,
India, Latvia and Italy.

ShengdaTech Inc. sought Chapter 11 bankruptcy protection from
creditors (Bankr. D. Nev. Case No. 11-52649) on Aug. 19, 2011, in
Reno, Nevada, in the United States.

The Shanghai-China based company said in its bankruptcy filing it
would fire all of its officers and restructure to try to recover
from an accounting scandal.

The Company disclosed $295.4 million in assets and $180.9 million
in debt as of Sept. 30, 2011.

The Company's legal representative in its Chapter 11 case is
Greenberg Traurig, LLP. The Board of Directors Special Committee's
legal representative is Skadden, Arps, Slate, Meagher & Flom LLP.


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


BAYLIS & HARDING: Vettoretti Alberto Steps Down as Liquidator
-------------------------------------------------------------
Vettoretti Alberto stepped down as liquidator of Baylis & Harding
(Asia) Limited on Aug. 16, 2011.


BLS (HK): Commences Wind-Up Proceedings
---------------------------------------
Members of BLS (HK) Limited, on Aug. 19, 2011, passed a resolution
to voluntarily wind up the company's operations.

The company's liquidators are:

         Rainier Hok Chung Lam
         Anthony David Kenneth Boswell
         22/F, Prince's Building
         Central, Hong Kong


BOXWOOD COMPANY: Creditors' Proofs of Debt Due Sept. 26
-------------------------------------------------------
Creditors of Boxwood Company Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Sept. 26, 2011, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on Aug. 18, 2011.

The company's liquidators are:

         Chan Shu Kin
         Chow Chi Tong
         9th Floor, Tung Ning Building
         249-253 Des Voeux Road
         Central, Hong Kong


DEEPER LIMITED: Ng Kim Ming Steps Down as Liquidator
----------------------------------------------------
Ng Kim Ming stepped down as liquidator of Deeper Limited on
Aug. 19, 2011.


FAN WAH: Commences Wind-Up Proceedings
--------------------------------------
Members of Fan Wah Engineering Co., Limited, on Aug. 19, 2011,
passed a resolution to voluntarily wind up the company's
operations.

The company's liquidator is:

         Daniel Chun-chiu Ng
         Suite 607, Star House
         3 Salisbury Road
         Tsimshatsui, Kowloon
         Hong Kong


GLOBE JOY: Lau Hin Chi Steps Down as Liquidator
-----------------------------------------------
Lau Hin Chi stepped down as liquidator of Globe Joy Limited on
Aug. 10, 2011.


HENTELL LIMITED: Members' Meeting Set for Sept. 26
--------------------------------------------------
Members of Hentell Limited will hold a meeting on Sept. 26, 2011,
at 10:00 a.m., at 27/F Alexandra House, at 18 Chater Road,
Central, in Hong Kong.

At the meeting, Patrick Cowley and Paul Edward Mitchell, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.


MERIT HONEST: Members' Final Meeting Set for Sept. 28
-----------------------------------------------------
Members of Merit Honest Limited will hold their final general
meeting on Sept. 28, 2011, at 10:00 a.m., at 13A, Tak Lee
Commercial Building, at 113-117 Wanchai Road, Wanchai, in Hong
Kong.

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


NEC INFRONTIA: Commences Wind-Up Proceedings
--------------------------------------------
Members of NEC Infrontia (H.K.) Company Limited, on July 22, 2011,
passed a resolution to voluntarily wind up the company's
operations.

The company's liquidator is:

         Chong Shi Ming John
         21/F, Tin On Sing Commercial Building
         41-43 Graham Street
         Central, Hong Kong


R&F TRADING: Park Soon Il Steps Down as Liquidator
--------------------------------------------------
Park Soon Il stepped down as liquidator of R&F Trading Limited on
Aug. 18, 2011.


SKYNET LIMITED: Ho Wai Ip Steps Down as Liquidator
--------------------------------------------------
Ho Wai Ip stepped down as liquidator of Skynet Limited on
Aug. 18, 2011.


SWINTON GROUP: Creditors' Proofs of Debt Due Sept. 30
-----------------------------------------------------
Creditors of Swinton Group Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
Sept. 30, 2011, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on Aug. 19, 2011.

The company's liquidators are:

         Andrew C.C. Ma
         Felix K.L. Lee
         19th Floor, Seaview Commercial Building
         21-24 Connaught Road West
         Hong Kong


TESSILFORM ASIA: Creditors' Proofs of Debt Due Sept. 26
-------------------------------------------------------
Creditors of Tessilform Asia Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Sept. 26, 2011, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on Aug. 18, 2011.

The company's liquidator is:

         Leung Mei Fan
         Room 1005, Allied Kajima Building
         138 Gloucester Road
         Wanchai, Hong Kong


TULLETT LIBERTY: Seng and Lo Step Down as Liquidators
-----------------------------------------------------
Natalia K M Seng and Susan Y H Lo stepped down as liquidators of
Tullett Liberty (Hong Kong) Limited on Aug. 16, 2011.


WIDE GLOBE: Creditors' Proofs of Debt Due Sept. 30
--------------------------------------------------
Creditors of Wide Globe Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
Sept. 30, 2011, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on Aug. 19, 2011.

The company's liquidators are:

         Andrew C.C. Ma
         Felix K.L. Lee
         19th Floor, Seaview Commercial Building
         21-24 Connaught Road West
         Hong Kong


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BLUES CLOTHING: Fitch Assigns 'Fitch BB+(ind)' National LT Rating
-----------------------------------------------------------------
Fitch Ratings has assigned India's Blues Clothing Company Limited
a National Long-Term rating of 'Fitch BB+(ind)'.  The Outlook is
Stable.  The list of additional rating actions is provided at the
end of this commentary.

The ratings reflect BCCL's tie-ups with international hi-end
luxury brands such as Versace, Versace Collection, and Corneliani
for their exclusive marketing and distribution rights in India.  
The ratings also reflect the company's rights to manufacture
apparel under the Cadini brand, which helped drive operating
EBITDA margin expansion to 12.5% in FY11 from 8.6% in FY08.  The
ratings benefit from BCCL's track record of rapidly increasing top
line and growing operating EBITDAR margin over FY08-FY11.

Fitch notes that the luxury industry is a niche business, fairly
insulated from pricing pressure.  However, due to rising
competition amongst brands, key success factors for any company in
this industry include perception of consumer preferences and
effective working capital management.

The ratings are constrained by BCCL's lengthy cash conversion
cycle (characteristic of the retail business) that keeps its
liquidity under pressure.  Moreover, its working capital
requirements rose significantly in FY11 (net cash conversion cycle
255 days) as the company opened 20 new stores during the year,
which are expected to break-even in a year. However, BCCL has
obtained additional fund-based working capital bank lines of
INR270m to enhance its liquidity.  During FY12, BCCL would largely
remain in the consolidation mode.

The ratings are also constrained by BCCL's high net financial
leverage (net debt adjusted for off-balance sheet leases/operating
EBITDAR ratio) of 5.3x in FY11.  Fitch notes that the company's
ability to maintain same-store sales growth and operating margin
at current levels as well as to effectively manage its working
capital cycle would be critical to its credit profile.

Positive rating guidelines include a sustained improvement in
BCCL's net financial leverage coupled with its ability to generate
positive cash flow from operations.  Negative rating guidelines
include a sustained increase in the company's net financial
leverage lead by any material debt-led expansion or drop in
margins.

BCCL is engaged in the retail trading of international luxury
brands of apparel and home decor through company-operated retail
outlets.  The company is also involved in wholesale/retail sale of
imported premium branded fabrics.  In FY11, the company reported
revenue growth of 52% yoy to INR1,631 million, with operating
EBITDAR of INR448 million and net income of INR70 million.

BCCL's bank loan facilities have been assigned ratings as follows:

  -- INR720m total fund-based limits: 'Fitch BB+(ind)'/'Fitch A4+
     (ind)';
  -- INR355m total non-fund-based limits: 'Fitch BB+(ind)'/' Fitch
     A4+(ind)'; and
  -- INR208.9m long-term loans: 'Fitch BB+(ind)'.


CHIRAYU CHARITABLE: CRISIL Cuts Rating on INR330MM Loan to 'B+'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Chirayu Charitable Foundation to 'CRISIL B+/Stable/CRISIL A4' from
'CRISIL BB-/Stable/CRISIL A4+'.

   Facilities                    Ratings
   ----------                    -------
   INR330 Million Term Loan      CRISIL B+/Stable
                                 (Downgraded from
                                 'CRISIL BB-/Stable')

   INR95 Mil. Bank Guarantee     CRISIL A4
                                 (Downgraded from
                                 'CRISIL A4+')

The downgrade reflects sharp deterioration in Chirayu's credit
risk profile because of significantly more-than-expected losses
incurred by the society and its increased debt-funded capital
expenditure (capex) toward its upcoming hospital and medical
college in 2010-11 (refers to financial year, April 1 to
March 31). The society's net loss for 2010-11 is estimated at
about INR80 million. The losses resulted from low occupancy levels
at the society's hospital, leading to sizeable erosion in its net
worth. The society enhanced its capex to about INR790 million from
INR550 million during the year. Its capex till March 31, 2011 was
about INR660 million and it plans to undertake capex programme of
INR130 million over the near term. The increase in capex has been
caused by cost overruns and increase in scale of the project.
While a substantial portion of the enhanced costs and losses have
been funded by unsecured loans from Chirayu's trustees (about
INR210 million, which CRISIL has considered as neither debt nor
equity), the society is likely to contract fresh bank loans of
about INR130 million to fund its remaining capex. CRISIL believes
that a weak and depleting net worth and increasing debt are likely
to lead to deterioration in Chirayu's credit risk profile over the
medium term.

The ratings reflect Chirayu's weak financial risk profile, marked
by very small net worth, high gearing, and weak debt protection
indicators, because of its large, ongoing, debt-funded capex and
the start-up stage of its operations. These rating weaknesses are
partially offset by the healthy demand prospects for medical
colleges and Chirayu's trustees' experience in the healthcare
segment.

Outlook: Stable

CRISIL believes Chirayu's financial risk profile will remain
constrained over the medium term because of large, ongoing, debt-
funded capex and expected continuation of losses. The outlook may
be revised to 'Positive' if Chirayu stabilises operations at its
hospital and medical college sooner than expected. Conversely, the
outlook may be revised to 'Negative' if there is any further cost
or time overrun in completion of the second phase of the project,
if operations take longer-than-expected to stabilise, leading to
more-than-expected losses, or if the society's net worth turns
negative.

Chirayu, set up in 2001, is a society registered under Madhya
Pradesh Societies Registration Act, 1973. Chirayu is promoted by
Dr. Ajay Goenka and family, who are also the promoters of Chirayu
Hospital in Bhopal. The society has set up a 750-bed multi-
speciality hospital in 2010-11; currently, 300 beds are
operational. Its medical college (capacity for 150 students) is
expected to commence operations in the next few weeks. The society
plans to enhance the seats at the college to accommodate 250
students by end of 2011-12.

For 2010-11, Chirayu reported, on provisional basis, a net loss of
INR153 million on net revenues of INR38.6 million; the society
reported a net profit of INR0.1 million on net sales of INR0.1
million for the preceding year.


DATA PATTERNS: CRISIL Reaffirms 'CRISIL BB' Cash Credit Rating
--------------------------------------------------------------
CRISIL has revised its rating outlook on the long-term bank
facilities Data Patterns India Pvt. Ltd., part of the Indus group,
to 'Stable' from 'Negative', while reaffirming the rating at
'CRISIL BB'; the rating on ITPL's short-term bank facilities has
been reaffirmed at 'CRISIL A4+'.

   Facilities                        Ratings
   ----------                        -------
   INR65 Million Cash Credit         CRISIL BB/Stable (Reaffirmed;
                                            Outlook Revised from
                                            'Negative')

   INR75 Million Bill Purchase-      CRISIL BB/Stable (Reaffirmed;
   Discounting Facility                     Outlook Revised from
                                            'Negative')

   INR150 Million Letter of credit   CRISIL A4+ (Reaffirmed)
   & Bank Guarantee                

The outlook revision reflects expected steady growth in the Indus
group's revenues, while the group maintains its margins at the
current levels, on the strength of its sizeable order book and
demonstrated execution capabilities. The outlook revision also
reflects the group's ability to maintain improvement in its
liquidity, supported by increase in its customers advances toward
repeat orders for certain products, which were earlier in the
development stage but are now being commercially produced.

The ratings continue to reflect the benefits that the Indus group
derives from its established track record, promoters' longstanding
experience in supply of indigenously developed defence equipment
to government organizations, and moderate financial risk profile.
These rating strengths are partially offset by susceptibility of
the Indus group's business risk profile to adverse changes in
sourcing policies of its key customers.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Indus Teqsite Pvt. Ltd. and its wholly
owned subsidiary, DPIPL. This is because the two companies,
together referred to as the Indus group, have significant
operational linkages with each other and have common promoters.
Moreover, both ITPL and DPIPL have extended corporate guarantees
to each other's bank facilities.

Outlook: Stable

CRISIL believes that Indus group will maintain its stable business
risk profile, supported by its established market position in the
indigenous defence equipment industry and promoters' longstanding
experience in this line of activity. The outlook may be revised to
'Positive' in case of significant increase in the group's revenues
and net cash accruals, coupled with improvement in its debt
protection metrics. Conversely, the outlook may be revised to
'Negative' in case of deterioration in the group's operating
margin or debt protection metrics, or a stretch in its working
capital cycle.

                          About the Group

ITPL, set up in 1998 by Mr. Rangarajan, a Chennai (Tamil Nadu)-
based technocrat and a first-generation entrepreneur, is engaged
in development and production of mission-critical products and
instrumentation for the defence and aerospace industries. DPIPL
provides system integration services for the products manufactured
by ITPL.

The Indus group designs, develops, and manufactures electronic
hardware; it also develops complementary software applications for
electronic systems and subsystems used by the defence and
aerospace industries. Its key customers include government
organizations, such as Defence Research and Development
Organization, the Ministry of Defence, Hindustan Aeronautics Ltd,
and the armed forces. The group's manufacturing units are located
at Siruseri Information Technology Park in Tamil Nadu.

DPIPL (standalone) reported a PAT of INR8.5 million on net sales
of INR496.9 million for 2010-11, against a PAT of INR5.2 million
on net sales of INR282.2 million for 2009-10.


DIEHARD DIES: CRISIL Reaffirms 'CRISIL D' Rating on INR160MM Loan
-----------------------------------------------------------------
CRISIL's rating on the bank facilities of Diehard Dies Pvt Ltd
continue to reflect DDPL's delays in servicing its term loan; the
delays are being caused by its weak liquidity.

   Facilities                         Ratings
   ----------                         -------
   INR20.6 Million Cash Credit        CRISIL D (Reaffirmed)
   INR160.0 Million Long-Term Loan    CRISIL D (Reaffirmed)
   INR20.0 Million Letter of Credit   CRISIL D (Reaffirmed)

DDPL also has a weak financial risk profile, marked by high
gearing and weak debt protection metrics; the rating also factors
in DDPL's small scale of operations in the dies industry. However,
the company benefits from access to superior technology of, and
support from, its group companies.

Update

DDPL has been delaying servicing its debt by one-two months
through May 2011; the delay in servicing has been caused by small
scale of operations and small cash accruals leading to weak
liquidity. The company's cash accruals are estimated at about INR3
million against principal repayment of about INR30 million for
2010-11 (refers to financial year, April 1 to March 31).

DDPL's revenues for 2010-11 are estimated at INR27.9 million,
which is below CRISIL's earlier expectation; less-than-expected
revenues were a result of delay in commercialization of its new
product, Flexible Die. Furthermore, against an initial estimated
capital expenditure (capex) of about INR230 million, the company's
total capex has been about INR360 million. The incremental capex,
toward addition of machinery for new product lines, was funded
entirely by unsecured loans from promoters. Also, DDPL's
management has plans to set up a new die manufacturing unit in
Gujarat; it is expected to cost about INR120 million and is
proposed to be funded in a debt-to-equity ratio of 3:1. The
project construction is expected to take about 12 months, and the
facility has been planned to cater to the markets in Maharashtra
and Gujarat.

The financial risk profile of DDPL is weak, with an estimated
gearing of about 7 times as on March 31, 2011. CRISIL believes
that DDPL's financial risk profile will remain weak over the
medium term due to large debt-funded capex plans and small scale
of operations. Furthermore, DDPL's liquidity is weak because of
its less-than-expected cash accruals, high bank limit utilization,
and delay in debt servicing.

DDPL reported, on provisional basis, a profit after tax of
INR2.2 million on net sales of INR27.9 million for 2010-11.

                       About Diehard Dies

DDPL is part of the Tulasi group of companies, headed by Mr.
Tulasi Ramachandra Prabhu. The group was set up in the 1970s with
the establishment of Coastal Packaging. DDPL was set up in 2007-08
for manufacturing flat-steel-rule-cutting-creasing-stripping dies,
rotary-steel-cutting dies, and steel-line-label-cutting dies
(flexible dies). The company's major production units have become
operational during January 2011-full-fledged operations are
expected to commence by October 2011.


FRANCO LEOME: CRISIL Ups Rating on INR2.7MM Loan to 'CRISIL BB+'
----------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of Franco
Leome Shoes Pvt Ltd to 'CRISIL BB+/Stable' from CRISIL BB/Stable',
while reaffirming the rating on the company's short-term bank
facility at 'CRISIL A4+'.

   Facilities                     Ratings
   ----------                     -------
   INR60 Million Cash Credit      CRISIL BB+/Stable
                                  (Upgraded from
                                  'CRISIL BB/ Stable')

   INR2.7 Million Proposed LT     CRISIL BB+/Stable
           Bank Loan Facility     (Upgraded from
                                  'CRISIL BB/Stable')

   INR10 Million Packing Credit   CRISIL A4+ (Reaffirmed)

The upgrade reflects sustained increase in Franco's scale of
operations and operating margin, backed by increased offtake from
the company's key customers. Franco's operating margin is
estimated to have improved to 13.6% in 2010-11 (refers to
financial year, April 1 to March 31) from 8.4% in 2008-09 on the
back of improving realizations.  The upgrade also reflects
CRISIL's belief that Franco's revenue growth and operating margin
will remain healthy over the medium term, and the company's debt-
funded capital expenditure (capex) plans will not have a sharp
adverse impact on its financial risk profile.

The ratings reflect the benefits that Franco derives from its
promoters' extensive experience in the men's footwear industry,
its geographically diversified revenue profile, its improving
brand image, and its established customer base. These rating
strengths are partially offset by Franco's average financial risk
profile marked by future debt-funded capex and large working
capital requirements.

Outlook: Stable

CRISIL believes that Franco will continue to benefit over the
medium term from its improving brand image and its reputed
customer base. The outlook may be revised to 'Positive' if Franco
reports sustained revenue growth and margins, along with
improvement in its capital structure. Conversely, the outlook may
be revised to 'Negative' if the company faces delays in
stabilisation of the operations of its planned retail stores, or
if its working capital requirements increase considerably, or if
Franco undertakes a larger-than-expected, debt-funded capex
programme.

                       About Franco Leome

Incorporated in 1995, Franco manufactures leather and non-leather
footwear for men. It sells its products in the domestic market to
reputed retail chains under its own Franco Leone, Gunuchi,
Carlopini, and F.L.Y. brands.

Franco has two manufacturing units in Baddi (Himachal Pradesh) to
cater to the domestic market, and one in Greater Noida (Uttar
Pradesh) to cater to the export market; the units have a combined
manufacturing capacity of 4800 pairs per day (ppd). The Greater
Noida unit commenced operations in 2008-09 (refers to financial
year, April 1 to March 31). Franco recently set up a unit in
Bahadurgarh (Haryana), which will have capacity of 4000 ppd
exclusively for the manufacture of women's footwear. The company's
manufacturing capacity will eventually increase to 8800 ppd by the
end of 2011-12. The Bahadurgarh unit commenced production on July
1, 2011. Franco has forayed into the branded retail segment with
its first store in Rajouri Garden (New Delhi). The company plans
to open around 10 stores in 2011-12, of which, 3 will be opened in
July 2011. Franco is expected to expend a total capital of INR170
million (including debt of INR95 million) in 2011-12 and 2012-13
towards expansion of manufacturing capacities and retail stores.

Franco reported a provisional profit after tax (PAT) of INR40
million on net sales of INR590 million for 2010-11, against a PAT
of INR20 million on net sales of INR360 million for 2009-10.


GAYATRI TRADERS: CRISIL Rates INR27MM LT Loan at 'CRISIL BB-'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Gayatri Traders.

   Facilities                        Ratings
   ----------                        -------
   INR0.5 Mil. Overdraft Facility    CRISIL BB-/Stable (Assigned)

   INR27.0 Million Proposed LT       CRISIL BB-/Stable (Assigned)
            Bank Loan Facility       

   INR70.0 Million Bank Guarantee    CRISIL A4+ (Assigned)

The ratings reflect GT's exposure to risks related to the tender-
based nature of its business, and small scale of operations in the
intensely competitive civil construction industry. These rating
weaknesses are partially offset by the benefits the firm derives
from its promoters' experience and established presence in the
civil construction business.

Outlook: Stable

CRISIL believes that GT will continue to benefit over the medium
term from its established relations with its customers, such as
Uttar Pradesh Public Works Department (PWD), Uttar Pradesh Rajkiya
Nirman Nigam(UPRNN) and its suppliers. The outlook may be revised
to 'Positive' in case of a significant increase in GT's order
book, along with maintenance of its profitability, capital
structure, and debt protection metrics. Conversely, a slowdown in
orders, or deterioration in the capital structure and debt
protection metrics, may result in the outlook being revised to
'Negative'.

                      About Gayatri Traders

Setup in 1999, by Mr. Devender Singh, GT is a Lucknow (Uttar
Pradesh)-based proprietorship engaged in the civil construction
business. The firm predominantly takes up buildings and road
construction projects. It is registered with various government
agencies such as PWD, UPRNN, and Uttar Pradesh Irrigation
Department.

GT reported a profit after tax (PAT) of INR11.4 million on net
sales of INR365.2 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR14.6 million on net
sales of INR455.5 million for 2008-09. It is estimated to report
net sales of INR 411 million for 2010-11.


GLOBAL PHARMATECH: CRISIL Cuts INR45MM Loan Rating to 'CRISIL B'
----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Global PharmaTech Pvt Ltd to 'CRISIL B/Negative' from 'CRISIL
B+/Stable'.

   Facilities                      Ratings
   ----------                      -------
   INR45 Million Long-Term Loan    CRISIL B/Negative(Downgraded
                                       from 'CRISIL B+/Stable')

   INR23 Million Cash Credit       CRISIL B/Negative(Downgraded
                                       from 'CRISIL B+/Stable')

The downgrade reflects deterioration in Global Pharma's financial
risk profile because of sustained operating losses since the four
years through 2010-11 (refers to financial year, April 1 to
March 31). During this period, Global Pharma's plant has remained
shut for a few months each year, as the company has been
undergoing significant capacity expansion in order to become
internationally certified as per the standard of World Health
Organisation and thereby enter the export market. Hence, the
company has also been incurring losses because of high fixed and
interest costs. Moreover, since Global Pharma's net cash accruals
have been negative, the company's term debt obligations have been
solely dependent on the promoter's support. The downgrade also
factors in CRISIL's belief losses will continue over the medium
term till the operations of the company stabilise. Also, Global
Pharma's additional debt-funded capacity expansion plan in 2011-12
and 2012-13 is expected to further constrain the company's
financial risk profile, particularly its liquidity.

The rating also reflects Global Pharma's small scale of
operations. These rating weaknesses are partially offset by the
company's highly qualified and experienced management, and
established relationship with its main customer GlaxoSmithKline
Pharmaceuticals Ltd (GSK).

Outlook: Negative

CRISIL believes that the Global Pharma's financial risk profile,
particularly its liquidity, will remain weak over the medium term
because of negative cash accruals resulting from sustained
operating losses. The rating may be downgraded if the promoter's
support is not received in a timely manner leading to a delay in
repayment of term debt obligations, or if the company undertakes a
larger-than-expected, debt-funded capital expenditure programme
thereby further weakening its financial risk profile. Conversely,
the outlook may be revised to 'Stable' if the there is a
substantial improvement in its operating margin and scale of
operations, leading to positive cash accruals sufficient to meet
its debt obligations.

                      About Global PharmaTech

Global Pharma, set up in 1994, undertakes contract manufacturing
for GSK and currently derives about 70% revenues from the same.
Global Pharma also undertakes contract manufacturing for other
clients such as Pfizer Inc., Wockhardt Ltd, and Universal Medicare
Pvt Ltd. The company has the capacity of manufacturing 11 million
ampoules per month and 6 million vials per month which are used in
ear nose throat drugs.

Global Pharma reported a profit after tax (PAT) of INR (31.9)
million on net sales of INR127.9 million for 2010-11 (refers to
financial year, April 1 to March 31), as against a PAT of INR
(21.5) million on net sales of INR121.5 million for 2009-10.


JAI BHARAT: CRISIL Raises Rating on INR480MM Loan to 'CRISIL BB+'
-----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Jai Bharat Gum & Chemicals Ltd to 'CRISIL BB+/Stable' from 'CRISIL
BB/Stable', while reaffirming the rating on the short-term
facilities at 'CRISIL A4+'.

   Facilities                      Ratings
   ----------                      -------
   INR480 Million Cash Credit      CRISIL BB+/Stable (Upgraded
                                      from 'CRISIL BB/Stable')
   INR5.1 Million LT Loans         CRISIL BB+/Stable (Assigned)
   INR14.9 Million Proposed LT     CRISIL BB+/Stable (Assigned)
                 Bank Facility     
   INR2.5 Million Bank Guarantee   CRISIL A4+ (Reaffirmed)
   INR2.5 Mil. Letter of Credit    CRISIL A4+ (Reaffirmed)

The upgrade reflects significant improvement in JBGCL's business
and financial risk profiles, driven by higher-than-expected
increase in turnover and cash accruals, in 2010-11 (refers to
financial year, April 1 to March 31). The upgrade also reflects
CRISIL's belief that JBGCL will maintain its financial risk
profile over the medium term, despite part debt-funding of its
capacity expansion project, supported by steady cash accruals.
CRISIL also believes that JBGCL will fund its incremental working
capital requirements in a prudent manner such that its liquidity
remains adequate over the medium term.

The ratings continue to reflect JBGCL's healthy track record in
the guar gum business, supported by extensive industry experience
of promoters, and its healthy operating efficiency with adequate
risk mitigation practices. Partly offsetting these rating
strengths are the company's highly working-capital-intensive
operations, moderate susceptibility to shortage of raw materials,
and susceptibility to intensifying competition in the domestic
guar gum industry.

Outlook: Stable

CRISIL believes that JBGCL will maintain its business risk profile
over the medium term, supported by increased demand and prices of
guar gum, and enhancement in the company's gum powder capacity.
The financial risk profile is also expected to be maintained over
the medium term, supported by increased cash accruals,
notwithstanding the partial debt-funding of its proposed capital
expenditure (capex). The outlook may be revised to 'Positive' if
there is higher-than-expected improvement in JBGCL's business
performance or capital structure. Conversely, the outlook may be
revised to 'Negative' if JBGCL's business performance is weaker-
than-expected or if the company undertakes a larger-than-expected
debt-funded capex or there is a sharp increase in working capital
borrowings, leading to weakening in its capital structure.

                        About Jai Bharat

JBGCL is a closely held public limited company, incorporated in
1982. It manufactures guar gum products. The company has three
units in Shiwani Mandi (Haryana)-Unit 1 being used as warehouse;
Unit 2 manufactures guar gum splits and its by-products such as
guar meal and churi; and the Chimique unit manufactures guar gum
powder and other derivatives by using guar gum splits as raw
material. JBGCL has capacity to manufacture 33,600 tonnes per
annum (tpa) of guar gum splits and 10,800 tpa of guar gum powder
and other derivatives. JBGCL plans to set up a unit in Gandhidham
(Gujarat), with capacity to manufacture 20,000 tpa of guar gum
powder; this plant is expected to be operational from February
2012 onwards.

For 2010-11, JBGCL reported a net profit of INR96.9 million on net
sales of INR3095.6 million, against a net profit of INR12.7
million on net sales of INR1297.1 million for 2009-10.


KANAK EXPORTS: CRISIL Cuts Rating on INR43.5MM Loan to 'CRISIL D'
-----------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Kanak
Exports to 'CRISIL D' from 'CRISIL B+/Stable' and further
'Suspended' the rating.

   Facilities                           Ratings
   ----------                           -------
   INR43.5 Mil. Export Packing Credit   CRISIL D (Downgraded from
                                        'CRISIL B+/Stable' and
                                         Suspended)

   INR172.5 Million Post-Shipment       CRISIL D (Downgraded from
                           Credit       'CRISIL B+/Stable' and
                                         Suspended)

The downgrade is driven by the delays by the firm in payment of
its bills because of weak liquidity. The aforementioned rating on
the bank facilities has also been suspended. This is because Kanak
Exports has not been providing information on its operations and
financials to CRISIL. The suspension reflects CRISIL's inability
to maintain a valid rating in the absence of information from the
firm.

                       About Kanak Exports

Set up in 1986 as a partnership firm by Mr. Muljibhai Dhameliya
and his family, Kanak Exports exports cut and polished diamonds.
Mr. Dhameliya has more than 40 years of experience in the diamond
industry. Currently, one of the partners, Mr. Kanak Dhameliya (son
of Mr. Muljibhai Dhameliya) looks after the entire marketing and
finance operations. Mr. Kanak Dhameliya has more than 15 years of
experience in the diamond industry.


KHAYATI STEEL: CRISIL Puts 'CRISIL B+' Rating on INR163.5MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Khayati Steel Industries Pvt Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR110 Million Cash Credit       CRISIL B+/Stable (Assigned)
   INR163.5 Million LT Loan         CRISIL B+/Stable (Assigned)
   INR80 Million Proposed Cash      CRISIL B+/Stable (Assigned)
                  Credit Limit      
   INR15.3 Million Working Capital  CRISIL B+/Stable (Assigned)
                         Term Loan

The rating reflects KSIPL's below-average financial risk profile,
marked by high gearing and weak debt protection metrics, its
limited track record of operations, and exposure to risks related
to intense competition and fragmentation in the steel industry.
These weaknesses are partially offset by the extensive experience
of KSIPL's promoters in the steel industry.

Outlook: Stable

CRISIL believes that KSIPL will continue to benefit from its
promoters' extensive experience in the steel industry, over the
medium term. The outlook may be revised to 'Positive' if the
company successfully scales up its operations and fetches better
realizations, resulting in significant improvement in its cash
accruals. Conversely, the outlook may be revised to 'Negative' if
KSIPL operates at lower-than-expected capacity utilization, its
operating margin declines, or if it undertakes a larger-than-
expected debt-funded capital expenditure programme.

                        About Khayati Steel

Incorporated in April 2008, KSIPL is a semi-integrated steel
manufacturer of Thermex bars. The company manufactures billets
(steel intermediaries) for in-house consumption of Thermex bars.
KSIPL's manufacturing facility is located in Thandya, near Mysore
(Karnataka) and currently has a capacity of 51,000 tonnes per
annum for both Thermex bars and billets. The facility commenced
its operations in August 2010. The company sells its Thermex bars
under the brand 'Apex' in Karnataka. The company is managed by Mr.
Naveen Gupta.

KSIPL reported a profit after tax (PAT) of INR8 million on net
sales of INR680 million for 2010-11 (refers to financial year,
April 1 to March 31).


LOHIA ALLOYS: CRISIL Rates INR31.7MM Term Loan at 'CRISIL BB'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the long-term
bank facilities of Lohia Alloys Ltd.

   Facilities                      Ratings
   ----------                      -------
   INR31.7 Million Term Loan       CRISIL BB/Stable (Assigned)
   INR13.5 Million Standby Line    CRISIL BB/Stable (Assigned)
                      of Credit    
   INR90 Million Cash Credit      CRISIL BB/Stable (Assigned)
   INR31.7 Million Proposed LT    CRISIL BB/Stable (Assigned)
            Bank Loan Facility    

The rating reflects the extensive experience of LAL's promoters in
the stainless steel (SS) cold rolled coils and pipe business, and
the company's comfortable debt protection metrics. These rating
strengths are partially offset by LAL's small scale of operations
with susceptibility of margins to volatility in raw material
prices, and weak capital structure marked by a small net worth and
a high gearing because of working-capital-intensive operations.

Outlook: Stable

CRISIL believes that LAL will continue to benefit over the medium
term from its promoters' extensive business experience. The
outlook may be revised to 'Positive' if LAL scales up its
operations and improves its capital structure. Conversely, the
outlook may be revised to 'Negative' if LAL's capital structure
deteriorates further because of large, debt-funded capital
expenditure or lower-than-expected cash accruals.

                     About Lohia Alloys

Set up in 1996, LAL manufactures SS cold-rolled (CR) coil and
pipes. The company was promoted by the father of Mr. Rajiv Lohia
and Mr. Sandeep Lohia in 1970, as part of the Lohia group. The
group was set up through Sahu Refrigerations, which is engaged in
SS re-rolling from hot-rolled (HR) to CR coils. The Lohia group
set up Lohia Metals Ltd in 1992 to manufacture steel ingots by
melting scrap, and LAL, in 1996, as a melting unit of SS steel in
Silvasa (Dadra & Nagar Haveli). However, because of operational
reasons, the promoters shut down this plant and set up a new unit
in Sonepat (Haryana), engaged in the re-rolling of HR coil to CR
coil along with the manufacturing of SS pipes.

LAL's profit after tax (PAT) is estimated at INR8.3 million on net
sales of INR314 million for 2010-11 (refers to financial year,
April 1 to March 31), against a PAT of INR6.8 million on net sales
of INR314 million for 2009-10.


LORD CHAITANYA: CRISIL Rates INR68MM Term Loan at 'CRISIL B+'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the term loan
facility of The Lord Chaitanya Educational Society.

   Facilities                     Ratings
   ----------                     -------
   INR68 Million Term Loan        CRISIL B+/Stable (Assigned)

The rating reflects TLCES's weak financial risk profile, marked by
high gearing, small net worth, and weak debt protection metrics,
and competition from established schools in the vicinity. These
rating weaknesses are partially offset by TLCES's established
market position through association with the GD Goenka group of
schools and the healthy demand prospects in the education sector.

Outlook: Stable

CRISIL believes that TLCES will benefit over the medium term from
its association with the GD Goenka group of schools. However its
financial risk profile is expected to remain weak over the medium
term marked by low net worth and high gearing. The outlook may be
revised to 'Positive' if there is a substantial improvement in
TLCES's margins, leading to improvement in cash accruals and
financial risk profile. Conversely, the outlook may be revised to
'Negative' if there is a significant decline in students'
admission, leading to weakening in TLCES's business risk profile
or if the society undertakes larger-than-expected debt-funded
capital expenditure programme, thereby putting pressure on its
financial risk profile.

Formed in 1996, TLCES runs a senior secondary school, GD Goenka
Public School at Sector 22, Rohini, Delhi; which was set up in
2007. The school provides senior education up to Class XI. In
2011-12 (refers to financial year, April 1 to March 31), the
society was accorded approval from Directorate of Education, New
Delhi and Central Board of Secondary Education for imparting
education for Class XII, which TLCES will start from 2012-13. The
society is currently being managed by Mr. Manmohan Garg
(President) and Mr. Vipul Garg (Secretary).

TLCES reported a deficit of INR13.1 million on fee receipts of
INR106.4 million for 2009-10, as against a deficit of INR11.6
million on fee receipts of INR85.7 million for 2008-09.


MAHABIR TECHNO: CRISIL Reaffirms 'CRISIL B+' Cash Credit Rating
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Mahabir Techno Ltd
continue to reflect MTL's small scale of operations; below-average
financial risk profile, marked by high gearing, small net worth,
and weak debt protection metrics; large working capital
requirements; and susceptibility to intense competition in the
edible oil and by-products industry.  

   Facilities                      Ratings
   ----------                      -------
   INR130 Million Cash Credit      CRISIL B+/Stable (Reaffirmed)
   INR20 Million Letter of Credit  CRISIL A4 (Reaffirmed)

These rating weaknesses are partially offset by MTL's established
market position and industry experience of its promoters.

Outlook: Stable

CRISIL expects MTL's financial risk profile to remain constrained
because of high gearing and weak debt protection metrics, and its
scale of operations to remain small, over the medium term. The
outlook may be revised to 'Positive' in case of substantial
improvement in the company's financial risk profile, most likely
because of increase in cash accruals and better working capital
management. Conversely, the outlook may be revised to 'Negative'
in case of further deterioration in MTL's liquidity arising from
large incremental working capital requirements, or in case of
larger-than-expected debt-funded capital expenditure (capex).

Update
MTL's revenues and operating profitability during 2010-11 (refers
to financial year, April 1 to March 31) has been in line with
CRISIL's expectations. MTL's capital structure continues to be
weak, with high gearing of 2.9 times as on March 31, 2011, which
again was in line with CRISIL's expectations. Despite MTL
deferring its capex on its solvent extraction unit, its gearing is
expected to remain high, given its large incremental working
capital requirements and debt contracted for its earlier capex.
MTL's credit risk profile is expected to remain constrained by its
large incremental working capital requirements and intense market
competition.

MTL's profit after tax and net sales are estimated at INR3.7
million and INR869.0 million respectively for 2010-11; the company
reported a net profit of INR2.3 million on net sales of INR657.9
million for 2009-10.

                       About Mahabir Techno

Set up by the Khurana family of Kurukshetra (Haryana), MTL
undertakes refining of rice-bran oil, palm oil, sunflower oil, and
other oils. The refining operations commenced in a partnership
firm, Mahabir Techno, in 1996, which was acquired by MTL in 2003.
The company has a total manufacturing capacity of 200 tonnes per
day of refined oils. It also owns a solvent-extraction plant for
manufacturing rice bran oil. The plant, however, is currently not
operational, as the oil produced by this plant has relatively
higher colour and free fatty acid content.


MEERA COTTON: CRISIL Ups Rating on INR84.2MM Loan to 'CRISIL BB+'
-----------------------------------------------------------------
CRISIL has upgraded its ratings on the long-term bank facilities
of Meera Cotton and Synthetic Mills Pvt Ltd to 'CRISIL BB+/Stable'
from 'CRISIL BB/Stable', while reaffirming the rating on the
short-term bank facilities at 'CRISIL A4+'.

   Facilities                      Ratings
   ----------                      -------
   INR84.2 Mil. Long-Term Loan     CRISIL BB+/Stable (Upgraded
                                      from 'CRISIL BB/Stable')

   INR90.0 Million Cash Credit     CRISIL BB+/Stable (Upgraded
                                      from 'CRISIL BB/Stable')

   INR15.0 Million Packing Credit  CRISIL A4+ (Reaffirmed)

   INR4.0 Million Bank Guarantee   CRISIL A4+ (Reaffirmed)

The upgrade reflects CRISIL's belief that Meera will achieve
healthy revenue growth and improvement in profitability over the
medium term, following the commissioning of its ongoing capital
expenditure (capex) programme in the second half of 2011-12
(refers to financial year, April 1 to March 31). Meera is
investing around INR240 million in increasing its texturising,
knitting, and twisting capacities and will also commence
garmenting operations. The capacity enhancement will improve
Meera's operating efficiency as a large part of the texturised
yarn produced will be consumed in-house for manufacturing value-
added products. The financial risk profile is, however, expected
to deteriorate over the medium term, as the company will increase
its reliance on debt for funding its capex and incremental working
capital requirements. Meera's gearing is expected to increase to 2
times as on March 31, 2012 from 1.4 times as on March 31, 2011.
The upgrade also factors in the significant increase, of 49%, in
Meera's revenues in 2010-11, driven by capacity additions in the
earlier year.

The rating reflects Meera's improving scale of operations and
promoters' experience and established business relationships in
the textile industry. These ratings strengths are partially offset
by deterioration in Meera's financial risk profile, following the
large, debt-funded capex, and its limited pricing power because of
the commodity nature of its products.

Outlook: Stable

CRISIL believes that Meera's established relationships with its
clients and agents will help it increase its scale of operations
over the medium term. The outlook may be revised to 'Positive' if
the company's gearing and debt protection metrics improve
significantly, following better-than-expected profitability.
Conversely, the outlook may be revised to 'Negative' if Meera is
not able to increase its scale of operations or if its working
capital requirements increase, leading to liquidity pressures.

                        About Meera Cotton

Incorporated in 1994, Meera was promoted by Mr. Jayesh Shah. It
manufactures polyster texturised yarn, knitted yarn, and twisted
yarn. The company outsources its weaving operations to small-scale
weavers in Bhiwandi (Maharashtra). The company has 56 knitting
machines, eight texturising machines, and four twisting machines
at its plant at Silvassa (Dadra and Nagar Haveli). The company
plans to add 44 knitting machines, 2 texturising machines, and 6
twisting machines. It also plans to add a garment manufacturing
unit near Thane (Maharshtra). The said capacity expansion is
proposed to be completed by November 2011.

For 2010-11, Meera reported a provisional profit after tax (PAT)
of INR20.7 million on net sales of INR1315 million, against a PAT
of INR16.4 million on net sales of INR879 million for 2009-10.


NARAYAN POLYURETHANE: CRISIL Rates INR9MM Loan at 'CRISIL B+'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Narayan Polyurethane Industries Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR25 Million Cash Credit        CRISIL B+/Stable (Assigned)
   INR9 Million Proposed LT         CRISIL B+/Stable (Assigned)
         Bank Loan Facility       
   INR1 Million Bank Guarantee      CRISIL A4 (Assigned)
   INR55 Million Letter of Credit   CRISIL A4 (Assigned)

The ratings reflect the Narayan's modest financial risk profile
marked by low networth levels and moderate debt protection
indicators and high degree of pricing pressure owing to the
competitive nature of the PU Foam industry in India and the modest
scale of operations of the firm. These rating weaknesses are
partially offset by the Narayan's partners' established
relationships with customers and their extensive experience in the
organic PU Foam Industry.

Outlook: Stable

CRISIL expects Narayan Polyurethane Industries (Narayan) to
maintain its credit risk profile over the medium term, supported
by promoters experience in the Polyurethane foam manufacturing and
marketing business and long standing relationships with customers.
The outlook may be revised to 'Positive' if the company achieves
better-than-expected business growth and/or there is improvement
in capital structure of the company on account of equity infusion.
Conversely, the outlook may be changed to 'Negative' in case of a
decline in the company's revenue and profitability, and if the
company undertakes larger-than-expected debt-funded capex,
resulting in an overall deterioration in its credit risk profile.

                          About the Group

Narayan Polyurethane Industries established in 1997 is a
partnership firm based in Mumbai, is engaged in manufacturing of
polyurethane (PU) foam sheets that have application in
manufacturing of mattress, seats, railway coach seats and
packaging of various items. The firm has its manufacturing unit
based in Wada (Maharashtra). The firm markets its products under
6-8 registered brand names such as 'Meghna', 'Royal', 'Silver',
'Ojher Foam', 'Italian Foam', 'Vija Foam' and more.

For 2010-11, Narayan reported a provisional profit after tax (PAT)
of INR4.2 million on net sales of INR204.4 million, against a PAT
of INR1.6 million on net sales of INR174.9 million for 2009-10.


PRAKASH GLASS: CRISIL Assigns 'CRISIL BB' Rating to INR5MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the bank
facilities of Prakash Glass and Rubber Works.

   Facilities                       Ratings
   ----------                       -------
   INR5 Million Term Loan           CRISIL BB/Stable (Assigned)
   INR45 Million Cash Credit        CRISIL BB/Stable (Assigned)
   INR25 Mil. Proposed Term Loan    CRISIL BB/Stable (Assigned)

The rating reflects PGR's average financial risk profile,
constrained by small net worth and proposed debt-funded capital
expenditure plan, large working capital requirements, relatively
small scale of operations, and susceptibility to intense
competition in the toughened glass segment. These rating
weaknesses are partially offset by the extensive industry
experience of PGR's promoters.

Outlook: Stable

CRISIL believes that PGR will continue to benefit from its
promoters' extensive industry experience and expected growth in
revenues from the proposed capacity expansion in 2012-13 (refers
to financial year, April 1 to March 31). The outlook may be
revised to 'Positive' in case PGR scales up its operations, and
revenues and profitability improve significantly while maintaining
its comfortable capital structure. The outlook may be revised to
'Negative' if the firm undertakes any larger-than-expected debt-
funded capital expenditure programme or its revenues and
profitability decline significantly.

                      About Prakash Glass

PGR, set up in 2000 as a partnership firm, is in the business of
processing toughened glass. Mr. Sailesh Kumar Gupta and his
brother, Mr. Kapil Kumar Gupta, are the firm's partners. The firm
mainly processes toughened glass used in the automobile and
construction industries. PGR mainly caters to the replacement
market of processed glass. The firm has a total processing
capacity of 320,000 square feet per month (sfpm).

PGR's promoters' propose to set up a private ltd company in 2011-
12 to conduct the same business as PGR. Further, the management
proposes to set up a laminated glass unit with a capacity of
200,000 sfpm under the pvt ltd company at an approximate cost of
INR120 million. Once the operations in the laminated glass unit
stabilises, PGR's operations will merge into the pvt ltd company
and the firm will cease to exist.

PGR reported a profit after tax (PAT) of INR15.7 million on net
sales of INR160.4 million for 2009-10, as against a PAT of INR13.6
million on net sales of INR169.6 million for 2008-09.


RIDDHI ENTERPRISES: CRISIL Rates INR10MM Term Loan at CRISIL BB-
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Riddhi Enterprises.

   Facilities                       Ratings
   ----------                       -------
   INR10 Million Long-Term Loan     CRISIL BB-/Stable (Assigned)
   INR40 Million Bill Discounting   CRISIL A4+ (Assigned)
   INR40 Million Packing Credit     CRISIL A4+ (Assigned)

The ratings reflect RE's moderate financial risk profile, marked
by a low net worth and moderate debt protection metrics, and the
company's presence in the highly competitive paper-based
stationery products industry. These rating weaknesses are
partially offset by the extensive experience of RE's partners in
the paper-based stationary industry.

Outlook: Stable

CRISIL believes that RE will continue to benefit over the medium
term from its partners' extensive experience in paper-based
stationery products. The outlook may be revised to 'Positive' if
RE significantly improves its operating revenues and profitability
while improving its capital structure and debt protection metrics.
Conversely, the outlook may be revised to 'Negative' if the firm's
net cash accruals decline significantly or it faces significant
decline in orders from its customers or in case of significant
deterioration in its working capital cycle.

                     About Riddhi Enterprises

RE is a partnership firm set up in 1990 by the Mumbai based Parekh
family. RE designs and manufactures paper-based stationery
products, such as notebooks, scratch pads, and pocket pads. RE's
manufacturing facilities at Palghar (on rent) and Manor (owned)
have a combined installed capacity of 650 tonnes per annum.  The
firm derives majority of its revenues from exports to distributors
and wholesalers located in Central America and United States.

RE is actively managed by Mr. Kamal Parekh and his son, Mr. Aman
Parekh.

RE reported on provisional basis a profit after tax (PAT) of
INR8.28 million on net sales of INR418.2 million for 2010-11
(refers to financial year, April 1 to March 31), as against a PAT
of INR4.69 million on net sales of INR267.1 million for 2009-10.


SHAKO FLEXIPACK: CRISIL Puts 'CRISIL BB' Rating on INR45.5MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the bank loan
facilities of Shako Flexipack Pvt Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR30 Million Cash Credit        CRISIL BB/Stable (Assigned)
   INR45.5 Million Long-Term Loan   CRISIL BB/Stable (Assigned)
   INR18.1 Million Proposed LT      CRISIL BB/Stable (Assigned)
            Bank Loan Facility      

The ratings reflect the extensive experience of ShakoFlexi's
promoters in the packaging industry and its established
relationships with customers. The company also has moderate debt
protection metrics. These rating strengths are partially offset by
the vulnerability of ShakoFlexi's profitability to raw material
price volatility, intense competition in the flexible packaging
industry, and its small net worth.

Outlook: Stable

CRISIL believes ShakoFlexi will maintain its credit risk profile,
supported by its established market position. The outlook may be
revised to 'Positive' in case of substantial growth in revenues
and profitability or in case of improvement in the net worth, on
account to equity infusion by promoters. Conversely, the outlook
may be revised to 'Negative' if the company's revenues and
profitability are lower than expected or in case of a large, debt-
funded capital expenditure programme.

                      About Shako Flexipack

Promoted in 1992 by Vikrambhai Shah and Bhupendrabhai Kothari,
ShakoFlexi manufactures flexible packaging, primarily used in food
packaging, healthcare and pharmaceuticals, chemicals, and
cosmetics.

The company's manufacturing facility in Rajapur (Gujarat) is
capable of manufacturing plastic- and paper-based packages. The
company's manufacturing process primarily involves combining three
to five layers of paper, laminated films, and aluminium foils to
produce packaging material suitable for different products.
Furthermore, the company prints and shapes the packaging materials
as per the requirements of the customers. It manufactures printed
and laminated packaging films as well as stand-up pouches and
centre-seal and pillow bags, among several other products, for
various industries such as the food packaging, healthcare and
pharmaceutical, chemical, and cosmetic industries.

For 2010-11 (refers to financial year, April 1 to March 31),
ShakoFlexi reported a profit after tax of INR25 million (loss of
INR 1 million in the previous year) on net sales of INR355 million
(INR269 million).


SHIVALIK POLYADD: CRISIL Rates INR8.6MM Loan at 'CRISIL BB-'  
------------------------------------------------------------
CRISIL has assigned a ratings of 'CRISIL BB-/Stable/CRISIL A4+' on
the bank facilities of Shivalik Polyadd Industries Pvt. Limited.

   Facilities                       Ratings
   ----------                       -------
   INR55 Million Cash Credit        CRISIL BB-/Stable (Assigned)
   INR8.6 Million Long-Term Loan    CRISIL BB-/Stable (Assigned)
   INR11.4 Million Export Packing   CRISIL A4+ (Assigned)
                           Credit  

The ratings reflects the Shivalik's wide customer base and
extensive experience of the promoters in the industry. These
rating strengths are partially offset by relatively small scale of
operations and moderate financial risk profile marked by moderate
gearing and debt protection metrics

Outlook: Stable

CRISIL believes that Shivalik will maintain its business risk
profile over the medium term, on the back of moderate revenue
growth, and higher capacity utilization.  The outlook might be
revised to 'Positive' if Shivalik increases its scale of
operations while maintaining its profitability and capital
structure. Conversely, the outlook may be revised to 'Negative' in
case of sharp decline in profitability or if the company
undertakes more-than-expected debt-funded capex programme.

                      About Shivalik Polyadd

Incorporated in 2008 by Mr. Rajiv Ramchand Sabnani, Shivalik took
over the business of proprietorship firm, Shivalik Industries
which was started in 2005. The company manufactures polymer filled
compounds and master batches. The products are widely used across
industries for products such as HDPE woven sacks, films,
laminations, automobile parts, furniture, etc. The company is also
engaged in exports to countries in Middle East and Africa. The
company plans to undertake a capex of around INR 25 lakhs to
increase its capacity on recycling business (conversion of plastic
scrap to usable granules), which is expected to be funded mainly
through internal accruals.

Shivalik on provisional basis report profit after tax (PAT) of
INR4.6 million on net sales of INR255 million during 2010- 11 as
against PAT of INR2.4 million on net sales of INR298 million the
previous year.


SHIVPRIYA FABRICS: CRISIL Rates INR5MM LT Loan at 'CRISIL B+'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Shivpriya Fabrics Pvt Ltd.

   Facilities                      Ratings
   ----------                      -------
   INR10 Million Cash Credit       CRISIL B+/Stable (Assigned)
   INR5 Million Long-Term Loan     CRISIL B+/Stable (Assigned)
   INR55 Million Proposed Long     CRISIL B+/Stable (Assigned)
       Term Bank Loan Facility     

The rating reflects SFPL's small scale of operations in a
fragmented synthetic fabric industry and average financial risk
profile, marked by a small net worth and modest debt protection
metrics. These rating weaknesses are partially offset by SFPL's
wide distribution network and the extensive industry experience of
its promoters.

Outlook: Stable

CRISIL believes that SFPL will continue to benefit over the medium
term from its promoters' extensive experience. The outlook may be
revised to 'Positive' if SEPL increases its revenue and improves
its profitability, while maintaining its existing capital
structure. Conversely, the outlook may be revised to 'Negative' in
case the company's operations or profitability decline
significantly or there are time or cost overruns in its ongoing
project.

                      About Shivpriya Fabrics

Incorporated in 2008 by the Mundra family of Mumbai (Maharashtra),
SFPL manufactures synthetic fabric, suiting, and shirting. The
company does not have an in-house manufacturing facility and
outsources the weaving and dyeing jobs to local units in Bhiwandi
(Maharashtra). However, it is setting up its own processing unit
in 2011-12 (refers to financial year, April 1 to March 31).

SFPL is estimated to have reported on a provisional basis profit
after tax (PAT) of INR2.3 million on net sales of INR247 million
for 2010-11, as against a PAT of INR1.5 million on net sales of
INR182 million for 2010-09.


SHREE SAI: CRISIL Cuts Rating on INR55.2MM Loan to 'CRISIL BB-'
---------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Shree
Sai Calnates India Pvt Ltd to 'CRISIL BB-/Stable' from 'CRISIL
BB/Stable', while reaffirming its rating on the company's short-
term bank facilities at 'CRISIL A4+'.

   Facilities                      Ratings
   ----------                      -------
   INR75 Million Cash Credit       CRISIL BB-/Stable (Downgraded
                                        from 'CRISIL BB/Stable')

   INR55.2 Million Rupee Term      CRISIL BB-/Stable (Downgraded
                         Loan           from 'CRISIL BB/Stable')

   INR5 Million Bank Guarantee     CRISIL A4+ (Reaffirmed)

   INR3 Million Letter of Credit   CRISIL A4+ (Reaffirmed)

The downgrade reflects likely deterioration in SSCIPL's financial
risk profile because of its planned, large, debt-funded capital
expenditure (capex). SSCIPL is planning to increase its
manufacturing capacity by more than 100,000 tonnes per annum (tpa)
for a capex of around INR1 billion. The capex is significantly
larger than the company's net worth, which was around INR91
million as on March 31, 2011. The downgrade also reflects CRISIL's
belief that SSCIPL's liquidity will remain weak over the medium
term with increased working capital requirements due to increased
scale of operations after the capacity enhancement and maturing
term debt obligations.

The ratings continue to reflect SSCIPL's established market
position in the calcium carbonate industry and its established
clientele. These rating strengths are partially offset by the
large quantum of debt that SSCIPL is likely to contract for its
planned capex, its weak financial risk profile marked by low net
worth and high gearing, large working capital requirements, and
susceptibility to intense competition in the calcium carbonate
industry.

Outlook: Stable

CRISIL believes that SSCIPL will maintain its market position in
the calcium carbonate industry, supported by its established
clientele and strong relationships with suppliers, over the medium
term. The outlook may be revised to 'Positive' if SSCIPL increases
its scale of operations, reports more-than-expected cash accruals,
and scales up its capacity as per plan. Conversely, the outlook
may be revised to 'Negative' if there is delay in implementation
of the proposed capacity expansion project, resulting in weakening
in liquidity.

                         About Shree Sai

Shree Sai Calnates India Pvt Ltd was incorporated in 1997 and
promoted by Mr. Subhas Tibrewal and Mr. Shankarlal Agarwal. The
company manufactures precipitated calcium carbonate (PCC) and
activated calcium carbonate (ACC). The company has an installed
capacity to manufacture 75,000 tpa of ACC and PCC. Its clientele
includes companies from pipes, plastics, paints, and fast-moving
consumer goods segments. The company plans to increase its
manufacturing capacity by more than 100,000 tpa in the next two
years at the cost of INR1000 million. The company also has a
windmill near Porbandar (Gujarat), with power generation capacity
of 1.5 megawatts (MW).

SSCIPL reported a profit after tax (PAT) of INR10.5 million on net
sales of INR489 million for 2010-11 (refers to financial year,
April 1 to March 31), against a PAT of INR10.6 million on net
sales of INR411 million for 2009-10.


SIGMA PACKAGING: CRISIL Puts CRISIL B+ Rating on INR150.4MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of Sigma Packaging.

   Facilities                      Ratings
   ----------                      -------
   INR24.6 Million Cash Credit     CRISIL B+/Stable (Assigned)
   INR150.4 Million Proposed LT    CRISIL B+/Stable (Assigned)
             Bank Loan Facility    

The rating reflects Sigma's small scale of operation in the
intensely competitive packaging industry, susceptibility to
volatility in raw material prices, low bargaining power with
customers, and limited financial flexibility because of large
capital withdrawals by the proprietor. These rating weaknesses are
partially offset by the benefits that Sigma derives from its
promoter's extensive experience, its established relationships
with its customers, and its low reliance on debt.

Outlook: Stable

CRISIL believes that Sigma will continue to benefit over the
medium term from its promoter's extensive experience in the paper
packing industry. The outlook may be revised to 'Positive' in case
Sigma scales up its operations and improves its profitability to
more-than-expected levels along with lower capital withdrawal,
thereby generating more-than-expected cash accruals. Conversely,
the outlook may be revised to 'Negative' if Sigma's liquidity
weakens more than expected because of sizeable funds withdrawn by
the proprietor, or larger-than-expected working capital
requirements or debt-funded capital expenditure.

                       About Sigma Packaging

Set up as a proprietorship firm in 2003 and promoted by Mr. Siraj
Saiyed, Sigma manufactures corrugated boxes from kraft paper at
its facility at Silvassa (Dadra and Nagar Haveli). Sigma has an
installed capacity of 280 tonnes per month (tpm). The firm has
expanded its capacity by 300 tpm in the current year.

Sigma's book profit is estimated at INR3.8 million on net sales of
INR94.3 million in 2010-11 (refers to financial year, April 1 to
March 31), against a book profit of INR8.8 million on net sales of
INR86.8 million in 2009-10.


SREE MURALI: CRISIL Reaffirms CRISL BB Rating on INR60MM LT Loan
----------------------------------------------------------------
CRISIL's rating on the bank facilities of Sree Murali Mohana
Boiled and Raw Rice Mill Pvt Ltd continues to reflect the benefits
that Sree Murali Mohana derives from its promoters' experience in
the rice industry.

   Facilities                        Ratings
   ----------                        -------
   INR60.0 Million Long-Term Loan    CRISIL BB/Stable (Reaffirmed)
   INR630.0 Million Cash Credit      CRISIL BB/Stable (Reaffirmed)

This rating strength is partially offset by Sree Murali Mohana's
below-average financial risk profile, marked by high gearing and
weak debt protection metrics, and exposure to risks related to the
regulated nature of the rice industry and to volatility in raw
material prices.

Outlook: Stable

CRISIL believes that Sree Murali Mohana's financial risk profile
will remain constrained over the medium term because of the
company's large working capital requirements. However, the company
will continue to benefit from its promoters' extensive experience
in the rice milling business. The outlook may be revised to
'Positive' in case of an improvement in Sree Murali Mohana's
financial risk profile, most likely driven by a significant
improvement in margins and capital structure. Conversely, the
outlook may be revised to 'Negative' if there is a fall in the
company's revenues and margins, or if it undertakes a large, debt-
funded capital expenditure programme.

                         About Sree Murali

Sree Murali Mohana was set up in 1983 as a partnership firm with
the acquisition of a small rice mill; it was reconstituted as a
private limited company in 2002. It is engaged in milling,
processing, and selling boiled rice, raw rice, bran, and husk.
Currently, Sree Murali Mohana has paddy milling capacity of 1.93
million quintals per annum. Its rice is sold under the brand Bell.

Sree Murali Mohana reported, on provisional basis, a profit after
tax (PAT) of INR25.9 million on net sales of INR2.1 billion for
2010-11 (refers to financial year, April 1 to March 31), against a
PAT of INR23.9 million on net sales of INR18.6 billion for
2009-10.


UMA CONVERTER: CRISIL Reaffirms 'CRISIL BB-' Cash Credit Rating
---------------------------------------------------------------
CRISIL's ratings on the bank loan facilities of Uma Converter Pvt
Ltd continue to reflect UCPL's promoters' experience in the
packaging industry.

   Facilities                       Ratings
   ----------                       -------
   INR70.0 Mil. Cash Credit Limit   CRISIL BB-/Stable (Reaffirmed)
   INR58.5 Million Rupee Term Loan  CRISIL BB-/Stable (Reaffirmed)
   INR25.0 Million Bank Guarantee   CRISIL A4+ (Reaffirmed)
             and Letter of Credit   

This rating strength is partially offset by UCPL's weak financial
risk profile, marked by a high gearing, average debt protection
metrics, and weak liquidity; small scale of operations in the
intensely competitive packaging industry, and customer
concentrated revenue profile.

Outlook: Stable

CRISIL believes that UCPL will maintain its operating margin over
the medium term, supported by better capacity utilisation. The
outlook may be revised to 'Positive' if UCPL achieves high revenue
growth, diversifies its customer profile, and improves its
liquidity and capital structure. Conversely, the outlook may be
revised to 'Negative' if the company's operating margin declines,
most likely because of volatility in raw material prices, or its
debt protection metrics weaken further, most likely because of
larger-than-expected, debt-funded capital expenditure.

Update

UCPL has maintained its business risk profile, with an estimated
operating income of INR461.3 million in 2010-11 (refers to
financial year, April 1 to March 31), in line with CRISIL's
expectations. UCPL's operating margin is expected to improve to
12.4% in 2010-11, against an operating margin of 10.2% in 2009-10,
primarily because of improved capacity utilization. However,
UCPL's net profit is expected to be lower at INR4.6 million,
mainly because of foreign exchange loss of about INR9.4 million
during 2010-11. The company's working capital requirement is
expected to be marginally higher than expectations, with gross
current asset (GCAs) days of 161 for 2010-11, mainly because of
stretched receivables. High working capital requirements are also
reflected from high bank limit utilisation of 92% during the past
12 months, ending February 2011.

UCPL has doubled its capacity in the past two years, with capital
expenditure (capex) of INR78.4 million. Due to debt funded capex
and additional debt for working capital requirements, UCPL has
operated at a gearing of 2 to 3 times in the past four years, with
an estimated gearing of 2.6 times as on March 31, 2011. The
gearing is expected to remain higher over medium term because of
the debt-funded capital expenditure to add some printing and
lamination machineries worth INR30 million, to be funded in a
debt-to-equity ratio of 70:30 and consequent working capital
requirements.

UCPL's net profit and net sales are estimated at INR4.6 million
and INR452 million respectively for 2010-11; it reported a net
profit of INR1.9 million on net sales of INR329 million for
2009-10.

                       About Uma Converter

Incorporated in 1999 by Mr. Sumer Raj Lodha, UCPL manufactures and
sells flexible packaging material used in packaging of food,
pharmaceuticals, and consumer goods. Mr. Lodha was initially
associated with Uma Polymers Ltd (rated 'CRISIL
BBB/Positive/CRISIL A3+'), a family concern, until 1999.
Currently, UCPL's plant at Gandhinagar (Gujarat) has installed
capacity of 4800 tonnes per annum (tpa), an increase from 2400 tpa
in 2008-09. The company's clientele includes Laxmi Snacks Pvt Ltd,
AV Thomas and Co Ltd (rated 'CRISIL A/Stable/CRISIL A1'), Apricot
Foods Pvt Ltd, Britannia Industries Ltd (rated 'CRISIL
AAA/Stable/CRISIL A1+'), Taj Frozen Foods India Ltd, and Samrat
Namkeen Pvt Ltd.


VALSON POLYESTER: CRISIL Reaffirms INR196.1MM Loan at 'CRISIL B+'  
-----------------------------------------------------------------
CRISIL has revised its rating outlook on the long-term bank
facilities of Valson Polyster Ltd to 'Stable' from 'Negative',
while reaffirming its rating on the same at 'CRISIL B+'; the
rating on the company's short-term facilities have been reaffirmed
at 'CRISIL A4'.

   Facilities                        Ratings
   ----------                        -------
   INR196.1 Million Long-Term Loan   CRISIL B+/Stable (Reaffirmed;
                                       Outlook Revised to 'Stable'
                                       from 'Negative')

   INR100.0 Million Cash Credit      CRISIL B+/Stable (Reaffirmed;
                                       Outlook Revised to 'Stable'
                                       from 'Negative')

   INR60.0 Million Bill Purchase-    CRISIL A4 (Reaffirmed)
            Discounting Facility    

   INR20.0 Million Letter of Credit  CRISIL A4 (Reaffirmed)
                 and Bank Guarantee  

The outlook revision reflects the successful completion of Valson
Polyester Ltd's (VPL's) capital expenditure (capex) programme
involving the expansion of its manufacturing capacity within the
stipulated time and within the budgeted cost, and has reported
steady off-take from its incremental capacity. CRISIL's believes
that VPL would register a healthy growth in its revenues over the
medium term, with its enhanced capacity available for the entire
year. VPL's revenues grew by 37% in 2010-11 (refers to financial
year, April 1 to March 31) and its operating margin has been
stable at around 12.0%, despite the volatility in raw material
prices; the growth in revenues was mainly driven by higher
proportion of nylon-based knitted and woven fabric sales, where
average realization is higher. CRISIL believes that the company
would sustain its profitability margins and would register
sufficient cash accruals to meet its term debt repayment
obligations

The ratings continue to reflect VPL's operating margins
susceptibility to fluctuations in raw material prices, limited
pricing flexibility. These rating weaknesses are partially offset
by VPL's established position in the blended polyester yarn and
fabric markets and established clientele base.

Outlook: Stable

CRISIL believes that VPL will maintain its market position over
the medium term on the back of its diversified product portfolio,
its well-established marketing network, and its long-standing
relationships with its customers. The outlook may be revised to
'Positive', if the company generates higher-than-expected revenues
from its incremental capacity, while maintaining its profitability
margins. Conversely, the outlook may be revised to 'Negative' if
VPL reports a steep decline in its profitability margins, thereby
adversely affecting its debt protection metrics.

                       About Valson Polyster

Incorporated in 1985, VPL primarily manufactures and dyes
polyester, nylon, and cotton yarn. It also has small knitting and
weaving capacities. The company is managed by Mr. Shamlal Mehta
and his sons, Mr. Vipin Mehta and Mr. Amit Mehta. VPL has
manufacturing facilities at Vapi (Gujarat), and Silvassa (both in
the Union Territory of Dadra and Nagar Haveli), and Daman (the
Union Territory of Daman and Diu).

VPL has texturising, twisting, and dyeing capacities of 7400
tonnes per annum (tpa), 5210 tpa, and 4455 tpa, respectively; the
same has been increased from 6,500 tpa, 4,220 tpa and 4,445 tpa in
September 2010. The company also has knitting and weaving
capacities of 1074 tpa and 2,808,000 meters respectively; the same
has been increased from 829 tpa and 1,944,000 tpa in September
2010.

VPL reported (on a provisional basis) an estimated profit after
tax (PAT) of INR45.9 million on estimated net sales of INR1275.6
million for 2010-11, against a PAT of INR37.4 million on net sales
of INR930.9 million for 2009-10.


VINTECH INDUSTRIES: CRISIL Rates INR122MM Loan at 'CRISIL BB'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to
the bank facilities of Vintech Industries Pvt Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR2 Million Cash Credit          CRISIL BB/Stable (Assigned)
   INR122 Million Rupee Term Loan    CRISIL BB/Stable (Assigned)
   INR6 Mil. Export Packing Credit   CRISIL A4+ (Assigned)

The ratings reflect Vintech's above-average debt protection
metrics and strong clientele. These rating strengths are partially
offset by Vintech's volatile, though high, operating margin and
small scale of operations.

Outlook: Stable

CRISIL believes that Vintech will maintain its above-average debt
protection metrics over the medium term. The outlook may be
revised to 'Positive' in case Vintech increases its scale of
operations to more-than-expected levels, while maintaining its
financial risk profile. Conversely the outlook may be revised to
'Negative' if the company undertakes a larger-than-expected debt-
funded capital expenditure programme or witnesses significant
decline in profitability, leading to deterioration in debt
protection metrics.

                     About Vintech Industries

Vintech was incorporated in 2007. The company manufactures
machining parts and precision components used in air/gas
compressors, steam/gas turbines, hydro turbines, windmills, and
other engineering industries. Vintech is promoted by
Mr. Karsanbhai K Panchal.  On April 1, 2007, Vintech took over
Mr. Panchal's proprietorship firm, Vinod Industries, which had
been manufacturing machining parts and precision components since
1983. In 2008-09 (refers to financial year, April 1 to March 31),
another sister concern operating in the same line of business,
Vinod Hitech Pvt Ltd, was merged with Vintech.

Vintech's profit after tax (PAT) and net sales are is estimated at
INR6.4 million and INR107 million respectively for 2010-11; the
company reported a PAT of INR4.7 million on net sales of INR72
million for 2009-10.


WEST COAST: CRISIL Reaffirms 'CRISIL B-' on INR35MM Cash Credit
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of West Coast Ingots Pvt
Ltd, part of the Mohit group, continues to reflect instances of
delay in servicing term loans by WCIPL's group entity, Mohit Ispat
Ltd, because of weak liquidity.
  
   Facilities                      Ratings
   ----------                      -------
   INR35.0 Million Cash Credit     CRISIL B-/Negative (Reaffirmed)
   INR60.0 Mil. Letter of Credit   CRISIL A4 (Reaffirmed)
   INR20.0 Million Bank Guarantee  CRISIL A4 (Reaffirmed)

The ratings also factor in the Mohit group's weak financial risk
profile, marked by a small net worth, a high gearing, and weak
debt protection metrics, exposure to intense competition in the
thermo-mechanically-treated (TMT) steel bar industry, and
susceptibility to downturns in the end-user industry and to
volatility in steel prices. These rating weaknesses are partially
offset by the benefits that the Mohit group derives from its
promoters' extensive experience in the steel industry, and from
its semi-integrated operations.

For arriving at its rating, CRISIL has combined the business and
financial risk profiles of WCIPL and Mohit Ispat Ltd (MIL),
together referred to as the Mohit group. This is because both the
companies are under a common ownership and management, are in the
same line of business, and have strong operational and financial
linkages with each other. Moreover, the output of WCIPL is almost
entirely used as input by MIPL.

Outlook: Negative

CRISIL believes that the Mohit group's liquidity will remain weak
over the medium term, as the group's cash accruals are likely to
remain small and its incremental working capital requirements,
large. The ratings may be downgraded in case of further
deterioration in the group's liquidity, which would lead to
continuously overdrawn bank lines. Conversely, the outlook may be
revised to 'Stable' if the Mohit group's liquidity improves
significantly.

                       About the Group

The Mohit group manufactures TMT bars and mild steel ingots. The
group has three manufacturing units in Goa. Of this, MIPL has two
units, one each for manufacturing ingots and TMT, while WCIPL has
one manufacturing unit for ingots. The Mohit group has a total
ingot manufacturing capacity of 80,000 tonnes per annum (tpa) and
TMT bar manufacturing capacity of 150,000 tpa. The group sells its
TMT bars under the Hegemon-500 brand to traders in Karnataka,
Kerala, Maharashtra, and Goa. The group is promoted by Mr.
Harshwardhan Mittal and Mr. Subash Chandra Maithain.


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


TOKYO ELECTRIC: Personnel Costs Higher V. Other Firms, Says Panel
-----------------------------------------------------------------
Kyodo News reports that Kazuhiko Shimokobe, a lawyer heading a
third-party panel tasked with overseeing Tokyo Electric Power
Co.'s cost-cutting efforts, said the panel has graded the
utility's personnel expenses as "high."

"Compared with firms in other sectors, it is undeniable that the
expenses are high," the news agency quotes Mr. Shimokobe as saying
at a news conference Wednesday, declining to specify which
category of the costs is drawing attention.

The five-member panel established by the government is
investigating TEPCO's finances as the utility faces massive
compensation payments over the crisis at its Fukushima No. 1
nuclear power plant, Kyodo notes.

Turning to capital investment, Kyodo relates that Mr. Shimokobe
said the panel has to look closely into whether TEPCO's high cost
structure has been maintained without careful consideration,
possibly as a result of using higher-quality materials than needed
to raise the safety level of its facilities.

The panel, according to Kyodo, is tasked with identifying assets
the utility should sell and work out measures to correct the
company's high cost structure, among other issues.  It plans to
compile a report in September, the report adds.

                          About TEPCO

Tokyo Electric Power Company (TEPCO) is the largest electric
power company in Japan and the largest privately owned electric
utility in the world.  TEPCO supplies electricity to meet the
increasingly diversified and sophisticated demands of its over
28.09 million customers in the metropolitan Tokyo, which is the
political, economic, and cultural center of Japan, and eight
surrounding prefectures.

Bloomberg News said the utility is battling radiation leaks at the
Fukushima Dai-Ichi power plant north of Tokyo after a March 11
earthquake and tsunami knocked out its cooling systems, causing
the biggest atomic accident in 25 years.  More than 50,000
households were forced to evacuate and Bank of America Corp.'s
Merrill Lynch estimates TEPCO may face compensation claims of as
much as JPY11 trillion (US$135 billion).

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 11, 2011, Moody's Japan K.K. has confirmed the ratings of
Tokyo Electric Power Co., Inc. (TEPCO).  The ratings confirmed
include its senior secured rating of Ba2, long-term issuer rating
of B1, and Corporate Family Rating of Ba3.  The ratings outlook is
negative.

The rating action reflects Moody's view that the enactment of the
Act to Establish Nuclear Damage Compensation Facilitation
Corporation is credit supportive for TEPCO. It represents an
initial, concrete step forward for the government plan to
stabilize the financial situation of the company. It also
highlights that there is a consensus political will to enact a
framework that aims to maintain TEPCO as an economically viable
entity.  Under the Act, the government will establish the new
corporation by September at the latest.


* JAPAN: Moody's Takes Negative Rating Actions on Banks
-------------------------------------------------------
Moody's takes actions on the short-term debt ratings of Delete
Resona Bank, Ltd., Saitama Resona Bank, Ltd. and The Kinki Osaka
Bank, Ltd.

Moody's Japan K.K. downgraded the ratings of most rated Japanese
banks, including Bank of Tokyo-Mitsubishi UFJ, Ltd., and Sumitomo
Mitsui Banking Corporation. The average downgrade is one notch.

Moody's also confirmed the ratings of a small number of
predominantly regional banks.

At the same time, the ratings of the subsidiary banks of Mizuho
Financial Group Inc., including Mizuho Corporate Bank, Ltd. and
Mizuho Bank, Ltd., were downgraded to A1 from Aa3 and remain on
review for further downgrade.

The downgrade actions follow and are in response to Moody's
downgrade of the Japanese Government Bond (JGB) rating to Aa3 with
a stable outlook from Aa2.

These actions conclude the rating review for downgrade of the
affected banks initiated on May 31, 2011.

Ratings Rationale

The rating downgrades primarily reflect the combined impact of the
change in the rating of the Government of Japan -- as a supporting
entity -- and Moody's reduced assumptions for government support
to the banking system in a stress scenario.

Specifically, the rating actions reflect (1) Moody's concern that,
notwithstanding continued strong government willingness to support
the banking system, there is an increasing risk that the
government's capacity to provide support to banks in a future
crisis has diminished; and (2) Moody's assumption that under
conditions of extreme stress, the authorities will become
increasingly selective in their distribution of support, with a
bias in favor of the most systemically important banks.

As a result of the government's downgrade and Moody's reduced
assumptions of support, Moody's downgraded a number of banks,
including Bank of Tokyo-Mitsubishi UFJ, Ltd., and Sumitomo Mitsui
Banking Corporation.

The ratings of Mizuho Financial Group Inc's bank subsidiaries
remain on review for downgrade. The change in the support
assumption should result in a further downgrade of Mizuho's
ratings, but the review will also consider whether improvements in
Mizuho's own standalone credit are a mitigating factor.
Accordingly, Moody's considers that the ratings could be confirmed
at current levels.

A small number of regional banks had their ratings confirmed as
their standalone credit insulates them from Moody's reduced
government support assumptions.

The negative outlooks of Shinkin Central Bank and Shinsei Bank,
Limited. reflect the fact that their standalone credit is under
pressure.

A full explanation of these rating actions can be found in special
comment "Japanese Bank Ratings Increasingly Constrained by the
Government's Rating" released.

Full details of the rating actions are:

(1) Downgraded by one notch the long-term deposit and debt
    ratings of the following banks:

    The Bank of Tokyo-Mitsubishi UFJ, Ltd.
    Mitsubishi UFJ Trust and Banking Corporation
    Sumitomo Mitsui Banking Corporation
    Mizuho Bank, Ltd.
    Mizuho Corporate Bank, Ltd.
    Mizuho Trust & Banking Co., Ltd.
    Trust & Custody Services Bank, Ltd.
    The Norinchukin Bank
    Shinkin Central Bank
    Sumitomo Trust and Banking Co. Ltd.
    Chuo Mitsui Trust & Banking Co., Ltd.
    Chuo Mitsui Asset Trust and Banking Co, Ltd.
    Japan Trustee Services Bank, Ltd.
    Resona Bank, Ltd.
    Saitama Resona Bank, Ltd.
    Kinki Osaka Bank, Ltd.
    Aozora Bank, Ltd.
    Shinsei Bank, Limited.
    The Joyo Bank, Ltd.
    The Gunma Bank, Ltd.
    The Hyakujushi Bank, Ltd.
    The Daishi Bank, Ltd.
    The San-in Godo Bank, Ltd.
    The Bank of Fukuoka, Ltd.
    The Hiroshima Bank, Ltd.
    Suruga Bank, Ltd.
    The Ogaki Kyoritsu Bank, Ltd.

(2) Downgraded by two notches the long-term deposit ratings of  
    the following banks:

    The Kiyo Bank, Ltd.

(3) Downgraded by one notch the short-term ratings of the
    following banks:

    Shinsei Bank, Limited.
    The Hyakujushi Bank, Ltd.
    The Daishi Bank, Ltd.
    The San-in Godo Bank, Ltd.
    The Kiyo Bank, Ltd.

(4) Confirmed the ratings of the following banks:

    The Shizuoka Bank, Ltd.
    The Chugoku Bank, Ltd.
    The Chiba Bank, Ltd.
    The Bank of Yokohama, Ltd.
    The Higo Bank, Ltd.

(5) Confirmed the short-term ratings of the following banks:

    Resona Bank, Ltd.
    Saitama Resona Bank, Ltd.
    Kinki Osaka Bank, Ltd.
    Chuo Mitsui Trust & Banking Co., Ltd.
    Chuo Mitsui Asset Trust and Banking Co, Ltd.
    Aozora Bank, Ltd.
    The Joyo Bank, Ltd.
    The Gunma Bank, Ltd.

(6) Assigned negative rating outlook for the ratings of the
    following banks:

    Shinkin Central Bank
    Shinsei Bank, Limited.

(7) Continued review for downgrade of the following banks'
    ratings:

    Mizuho Financial Group, Inc.
    Mizuho Bank, Ltd.
    Mizuho Corporate Bank, Ltd.
    Mizuho Trust & Banking Co., Ltd.
    Trust & Custody Services Bank, Ltd.

(8) Placed on review for upgrade of the following banks'
    standalone bank financial strength ratings

    Mizuho Bank, Ltd.
    Mizuho Corporate Bank, Ltd.
    Mizuho Trust & Banking Co., Ltd.

(9) Placed on review for upgrade of the ratings of preferred
    securities issued by the following subsidiaries of Mizuho
    Financial Group, Inc.

    Mizuho Capital Investment (US$) 1 Limited
    Mizuho Capital Investment (US$) 2 Limited
    Mizuho Capital Investment (JPY) 5 Limited
    Mizuho Capital Investment (JPY) 6 Limited
   Mizuho Capital Investment (JPY) 7 Limited

The principal methodologies used in the rating were Moody's Bank
Financial Strength Ratings: Global Methodology and Incorporation
of Joint-Default Analysis into Moody's Bank Ratings: A Refined
Methodology published on September 30, 2010, and available on
www.moodys.co.jp.

List of the affected ratings are as follow (includes prospective
ratings on shelf registrations/programs where applicable).

Confirmed the rating

Resona Bank, Ltd. (Lead analyst: Yasuhiro Matsumoto)
Short-term bank deposit rating (domestic and foreign currency):
Prime-1

Saitama Resona Bank, Ltd. (Lead analyst: Yasuhiro Matsumoto)
Short-term bank deposit rating (domestic and foreign currency):
Prime-1

The Kinki Osaka Bank, Ltd. (Lead analyst: Yasuhiro Matsumoto)
Short-term bank deposit rating (domestic and foreign currency) :
Prime-1

The Chuo Mitsui Trust and Banking Company, Limited (Lead
analyst: Yasuhiro Matsumoto)
Short-term bank deposit rating (domestic and foreign currency):
Prime-1

Chuo Mitsui Asset Trust and Banking Company, Limited (Lead  
analyst: Yasuhiro Matsumoto)
Short-term bank deposit rating (domestic and foreign currency):
Prime-1

Aozora Bank, Ltd. (Lead analyst: Kyosuke Kaji)
Short-term bank deposit rating (domestic and foreign currency):
Prime-2

The Shizuoka Bank, Ltd. (Lead analyst: Yasuhiro Matsumoto)
Long-term bank deposit rating (domestic and foreign currency):
Aa3
Long-term issuer rating: Aa3
Senior unsecured debt rating (domestic currency): Aa3
Senior unsecured shelf registration rating (domestic currency):
(P)Aa3

The Chugoku Bank, Ltd. (Lead analyst: Yasuhiro Matsumoto)
Long-term bank deposit rating (domestic and foreign currency):
Aa3
Long-term issuer rating: Aa3

The Chiba Bank, Ltd. (Lead analyst: Yasuhiro Matsumoto)
Long-term bank deposit rating (domestic and foreign currency):
A1
Long-term issuer rating: A1
Senior subordinated debt rating (domestic currency): A2
Short-term bank deposit rating (domestic and foreign currency):
Prime-1

The Bank of Yokohama, Ltd. (Lead analyst: Yasuhiro Matsumoto)
Long-term bank deposit rating (domestic and foreign currency):
A1
Short-term bank deposit rating (domestic and foreign currency):
Prime-1

The Higo Bank, Ltd. (Lead analyst: Kyosuke Kaji)
Long-term bank deposit rating (domestic and foreign currency):
A1
Short-term bank deposit rating (domestic and foreign currency):
Prime-1

The Joyo Bank, Ltd. (Lead analyst: Kyosuke Kaji)
Short-term bank deposit rating (domestic and foreign currency):
Prime-1

The Gunma Bank, Ltd. (Lead analyst: Kyosuke Kaji)
Short-term bank deposit rating (domestic and foreign currency):
Prime-1
Downgraded the rating and assigned negative rating outlook

Shinsei Bank, Limited (Lead analyst: Kyosuke Kaji)
Long-term bank deposit rating (domestic and foreign currency):
to Ba1 from Baa3
Senior unsecured debt rating (domestic currency): to Ba1 from
Baa3
Senior unsecured debt Medium Term Note Program rating (foreign
currency): to (P)Ba1 from (P)Baa3
Senior subordinated debt rating (foreign currency): to Ba2 from
Ba1
Subordinated debt Medium Term Note Program rating (foreign
currency): to (P)Ba2 from (P)Ba1
Junior subordinated debt rating (foreign currency): to Ba3(hyb)
from Ba2 (hyb)
Junior subordinated debt Medium Term Note Program rating
(foreign currency): to (P)Ba3 from (P)Ba2
Short-term bank deposit rating (domestic and foreign currency):
to Not Prime from Prime-3
Other Short-term (foreign currency): to (P)Not-Prime from
(P)Prime-3

Shinkin Central Bank (Lead analyst: Kyosuke Kaji)
Long-term bank deposit rating (domestic and foreign currency):
to A1 from Aa3

Downgraded

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(Lead analyst: Tetsuya Yamamoto)
Long-term bank deposit rating (domestic and foreign currency):
to Aa3 from Aa2
Long-term issuer rating: to Aa3 from Aa2
Senior unsecured debt rating (domestic and foreign currency): to
Aa3 from Aa2
Senior unsecured shelf registration rating(domestic currency):
to(P)Aa3 from (P)Aa2
Senior unsecured debt Medium Term Note Program rating (foreign
currency): to (P)Aa3 from (P)Aa2
Senior subordinated debt rating (domestic currency): to A1 from
Aa3
Senior subordinated shelf registration rating (domestic
currency): to (P) A1 from (P) Aa3
Subordinated debt Medium Term Note Program rating (foreign
currency): to (P) A1 from (P) Aa3
Junior subordinated debt Medium Term Note Program rating
(foreign currency): to (P)A2 from (P)A1

Bank of Tokyo-Mitsubishi UFJ, Ltd., Hong Kong Branch
(Lead analyst: Tetsuya Yamamoto)
Long-term Deposit Note/CD Program (foreign currency): to (P)Aa3
from (P)Aa2

BTMU (Curacao) Holdings N.V. (Lead analyst: Tetsuya Yamamoto)
Senior unsecured debt rating (foreign currency): to Aa3 from Aa2
Senior unsecured debt Medium Term Note Program rating (foreign
currency): to (P)Aa3 from (P)Aa2
Subordinated debt rating (foreign currency): to A1 from Aa3
Subordinated debt Medium Term Note Program rating (foreign
currency): to (P)A1 from (P)Aa3
Junior subordinated debt rating (foreign currency): to A2(hyb)
from A1(hyb)
Junior subordinated debt Medium Term Note Program rating
(foreign currency): to (P)A2 from (P)A1

Bank of Tokyo-Mitsubishi UFJ, Ltd., Sydney Branch
(Lead analyst: Tetsuya Yamamoto)
Long-term Deposit Note/CD Program (foreign currency): to (P)Aa3
from (P)Aa2

UFJ Finance Aruba A.E.C. (Lead analyst: Tetsuya Yamamoto)
Subordinated debt rating (foreign currency): to A1 from Aa3

Mitsubishi UFJ Trust and Banking Corporation
(Lead analyst:   Tetsuya Yamamoto)
Long-term bank deposit rating (domestic and foreign currency):
to Aa3 from Aa2

Sumitomo Mitsui Banking Corporation
(Lead analyst: Yasuhiro Matsumoto)
Long-term bank deposit rating (domestic and foreign currency):
to Aa3 from Aa2
Long-term issuer rating: to Aa3 from Aa2
Senior unsecured debt rating (domestic and foreign currency): to
Aa3 from Aa2
Senior unsecured debt Medium Term Note Program rating (domestic
currency): to (P)Aa3 from (P)Aa2
Subordinated debt rating (domestic and foreign currency): to A1
from Aa3
Subordinated debt Medium Term Note Program rating (domestic
currency): to (P)A1 from (P)Aa3
Junior subordinated debt rating (domestic and foreign currency):
to A2(hyb) from A1(hyb)
Junior subordinated debt Medium Term Note Program rating  
(domestic currency): to (P)A2 from (P)A1

Sumitomo Mitsui Banking Corporation, New York Branch
(Lead analyst: Yasuhiro Matsumoto)
Junior subordinated debt rating (domestic currency): to A2(hyb)
from A1(hyb)

SMBC Capital Markets, Inc. (Lead analyst: Yasuhiro Matsumoto)
Senior unsecured debt rating (foreign currency): to Aa3 from Aa2
Senior unsecured debt Medium Term Note Program rating (domestic
and foreign currency): to (P)Aa3 from (P)Aa2

SMBC International Finance N.V.
(Lead analyst: Yasuhiro Matsumoto)
Subordinated debt Medium Term Note Program rating (foreign
currency): to (P)A1 from (P)Aa3
Junior subordinated debt Medium Term Note Program rating
(foreign currency): to (P)A2 from (P)A1

Sumitomo Mitsui Banking Corporation Europe, Ltd.
(Lead analyst: Yasuhiro Matsumoto)
Long-term bank deposit rating (foreign currency): to Aa3 from
Aa2

Resona Holdings, Inc. (Lead analyst: Yasuhiro Matsumoto)
Senior subordinated Medium Term Note Program rating (domestic   
currency): to (P)Baa1 from (P)A3
Junior subordinated Medium Term Note Program rating (domestic
currency): to (P)Baa2 from (P)Baa1

Resona Bank, Ltd. (Lead analyst: Yasuhiro Matsumoto)
Long-term bank deposit rating (domestic and foreign currency):
to A2 from A1
Senior subordinated debt rating (domestic currency): to A3 from
A2
Senior subordinated Medium Term Note Program rating (domestic
currency): to (P) A3 from (P)A2
Junior subordinated debt rating (foreign currency): to Baa1(hyb)
from A3(hyb)

Junior subordinated Medium Term Note Program rating (domestic
currency): to (P)Baa1 from (P)A3

Saitama Resona Bank, Ltd. (Lead analyst: Yasuhiro Matsumoto)
Long-term bank deposit rating (domestic and foreign currency):
to A2 from A1
Senior subordinated Medium Term Note Program rating (domestic
currency): to (P)A3 from (P)A2
Junior subordinated Medium Term Note Program rating (domestic
currency): to (P)Baa1 from (P)A3

The Kinki Osaka Bank, Ltd. (Lead analyst: Yasuhiro Matsumoto)
Long-term bank deposit rating (domestic and foreign currency):
to A2 from A1
Asahi Finance (Cayman) Ltd. (Lead analyst: Yasuhiro Matsumoto)
Subordinated Medium Term Note Program rating (foreign currency):
to (P)A3 from (P)A2
Junior subordinated debt rating (foreign currency): to Baa1(hyb)
from A3(hyb)
Junior subordinated Medium Term Note Program rating (foreign
currency): to (P)Baa1 from (P)A3

The Sumitomo Trust and Banking Co., Ltd.
(Lead analyst: Yasuhiro Matsumoto)
Long-term bank deposit rating (domestic and foreign currency):
to A1 from Aa3
Senior unsecured shelf registration rating (domestic currency):
to (P)A1 from (P)Aa3
Senior subordinated debt rating (domestic currency): to A2 from
A1
Senior subordinated shelf registration rating (domestic
currency): to (P)A2 from (P)A1
Senior subordinated Medium Term Note Program rating (domestic
currency): to (P)A2 from (P)A1
Junior subordinated Medium Term Note Program rating (domestic
currency): to (P)A3 from (P)A2

Sumitomo Trust & Banking Co. (U.S.A.)
(Lead analyst: Yasuhiro Matsumoto)
Long-term issuer rating (domestic and foreign currency): to A1
from Aa3

STB Finance Cayman Ltd. (Lead analyst: Yasuhiro Matsumoto)
Senior subordinated debt rating (foreign currency): to A2 from
A1
Senior subordinated Medium Term Note Program rating (foreign
currency): to (P)A2 from (P)A1
Junior subordinated debt rating (foreign currency): to A3(hyb)
from A2 (hyb)
Junior subordinated Medium Term Note Program rating (foreign
currency): to (P)A3 from (P)A2

The Chuo Mitsui Trust and Banking Company, Limited
(Lead analyst: Yasuhiro Matsumoto)
Long-term bank deposit rating (domestic and foreign currency):
to A2 from A1
Senior subordinated debt rating (domestic currency): to A3 from
A2
Junior subordinated debt rating (foreign currency): to Baa1(hyb)
from A3(hyb)

Chuo Mitsui Asset Trust and Banking Company, Limited
(Lead analyst: Yasuhiro Matsumoto)
Long-term bank deposit rating (domestic and foreign currency):
to A2 from A1

Japan Trustee Services Bank, Ltd.
(Lead analyst: Yasuhiro Matsumoto)
Long-term bank deposit rating (domestic and foreign currency):
to A1 from Aa3

Aozora Bank, Ltd. (Lead analyst: Kyosuke Kaji)
Long-term bank deposit rating (domestic and foreign currency):
to Baa2 from Baa1
Senior unsecured debt rating (domestic currency): to Baa2 from
Baa1

The Norinchukin Bank (Lead analyst: Kyosuke Kaji)
Long-term bank deposit rating (domestic and foreign currency):
to A1 from Aa3
Long-term issuer rating: to A1 from Aa3
Senior unsecured debt rating (domestic currency): to A1 from Aa3

Norinchukin Finance (Cayman) Limited
(Lead analyst: Kyosuke Kaji)
Senior subordinated debt rating (foreign currency): to A2 from
A1
Senior subordinated Medium Term Note Program rating (foreign
currency): to (P)A2 from (P)A1

The Joyo Bank, Ltd. (Lead analyst: Kyosuke Kaji)
Long-term bank deposit rating (domestic and foreign currency):
to A2 from A1
Senior unsecured debt rating (domestic currency): to A2 from A1

The Gunma Bank, Ltd. (Lead analyst: Kyosuke Kaji)
Long-term bank deposit rating (domestic and foreign currency):
to A2 from A1
Long-term issuer rating (domestic and foreign currency): to A2
from A1

The Hyakujushi Bank, Ltd. (Lead analyst: Kyosuke Kaji)
Long-term bank deposit rating (domestic and foreign currency):
to A3 from A2
Short-term bank deposit rating (domestic and foreign currency):
to Prime-2 from Prime-1

The Daishi Bank, Ltd. (Lead analyst: Kyosuke Kaji)
Long-term bank deposit rating (domestic and foreign currency):
to A3 from A2
Short-term bank deposit rating (domestic and foreign currency):
to Prime-2 from Prime-1

The San-in Godo Bank, Ltd. (Lead analyst: Kyosuke Kaji)
Long-term bank deposit rating (domestic and foreign currency):
to A3 from A2
Short-term bank deposit rating (domestic and foreign currency):
to Prime-2 from Prime-1

The Bank of Fukuoka, Ltd. (Lead analyst: Yasuhiro Matsumoto)
Long-term bank deposit rating (domestic and foreign currency):
to Baa1 from A3
Long-term issuer rating: to Baa1 from A3

The Hiroshima Bank, Ltd. (Lead analyst: Kyosuke Kaji)
Long-term bank deposit rating (domestic and foreign currency):
to Baa1 from A3

Suruga Bank, Ltd. (Lead analyst: Kyosuke Kaji)
Long-term bank deposit rating (domestic and foreign currency):
to Baa1 from A3

The Ogaki Kyoritsu Bank, Ltd. (Lead analyst: Kyosuke Kaji)
Long-term bank deposit rating (domestic and foreign currency):
to Baa1 from A3

The Kiyo Bank, Ltd. (Lead analyst: Kyosuke Kaji)
Long-term bank deposit rating (domestic and foreign currency):
to Baa3 from Baa1

Short-term bank deposit rating (domestic and foreign currency):
to Prime-3 from Prime-2

Placed the rating under review for possible downgrade

Mizuho Financial Group, Inc. (Lead analyst: Tetsuya Yamamoto)
Commercial Paper (domestic currency): Prime-1

Downgraded the rating and placed under review for possible
downgrade

Mizuho Bank, Ltd. (Lead analyst: Tetsuya Yamamoto)
Long-term bank deposit rating (domestic and foreign currency):
to A1 from Aa3
Long-term issuer rating: to A1 from Aa3
Senior unsecured debt rating (domestic currency): to A1 from Aa3
Senior subordinated debt rating (domestic currency): to A2 from
A1
Senior subordinated shelf registration rating (domestic
currency): to (P)A2 from (P)A1
Senior subordinated Medium Term Note Program rating (domestic
currency): to (P)A2 from (P)A1
Junior subordinated shelf registration rating (domestic
currency): to (P)A3 from (P)A2
Junior subordinated Medium Term Note Program rating (domestic
currency): to (P)A3 from (P)A2

Mizuho Corporate Bank, Ltd. (Lead analyst: Tetsuya Yamamoto)
Long-term bank deposit rating (domestic and foreign currency):
to A1 from Aa3
Long-term issuer rating: to A1 from Aa3
Senior unsecured debt rating (domestic currency): to A1 from Aa3
Senior unsecured shelf registration rating (domestic currency):
to (P)A1 from (P)Aa3
Senior unsecured Medium Term Note Program rating (foreign
currency): to (P)A1 from (P)Aa3
Senior subordinated debt rating (domestic currency): to A2 from
A1
Senior subordinated shelf registration rating (domestic
currency): to (P)A2 from (P)A1
Senior subordinated Medium Term Note Program rating (foreign
currency): to (P)A2 from (P)A1
Junior subordinated shelf registration rating (domestic
currency): to (P)A3 from (P)A2
Junior subordinated Medium Term Note Program rating (foreign
currency): to (P)A3 from (P)A2

Mizuho Corporate Asia (HK) Limited
(Lead analyst: Tetsuya Yamamoto)
Senior unsecured Medium Term Note Program rating (foreign
currency): to (P)A1 from (P)Aa3

Mizuho Corporate Bank Nederland N.V.
(Lead analyst: Tetsuya Yamamoto)
Senior unsecured Medium Term Note Program rating (foreign
currency): to (P)A1 from (P)Aa3

Mizuho Corporate Bank, Ltd., Hong Kong Branch
(Lead analyst: Tetsuya Yamamoto)
Long-term Deposit Note/CD Program (domestic currency): to A1
from Aa3

Mizuho Corporate Bank, Ltd., Paris Branch
(Lead analyst: Tetsuya Yamamoto)
Long-term bank deposit rating (foreign currency): to A1 from Aa3

Mizuho Corporate Bank, Ltd., Sydney Branch
(Lead analyst: Tetsuya Yamamoto)
Senior unsecured Medium Term Note Program rating (foreign
currency): to (P)A1 from (P)Aa3

Mizuho Finance (Aruba) A.E.C. (Lead analyst: Tetsuya Yamamoto)
Senior subordinated Medium Term Note Program rating (foreign
currency): to (P)A2 from (P)A1
Junior subordinated debt rating (foreign currency): to A3(hyb)
from A2(hyb)
Junior subordinated Medium Term Note Program rating (foreign
currency): to (P)A3 from (P)A2

Mizuho Finance (Cayman) Limited (Lead analyst: Tetsuya Yamamoto)
Senior subordinated Medium Term Note Program rating (foreign
currency): to (P)A2 from (P)A1
Junior subordinated debt rating (foreign currency): to A3(hyb)
from A2(hyb)
Junior subordinated Medium Term Note Program rating (foreign
currency): to (P)A3 from (P)A2

Mizuho Finance (Curacao) N.V. (Lead analyst: Tetsuya Yamamoto)
Senior unsecured Medium Term Note Program rating (foreign  
currency): to (P)A1 from (P)Aa3
Senior subordinated debt rating (foreign currency): to A2 from
A1
Senior subordinated Medium Term Note Program rating (foreign
currency): to (P)A2 from (P)A1
Junior subordinated Medium Term Note Program rating (foreign
currency): to (P)A3 from (P)A2

Mizuho Financial Group (Cayman) Limited
(Lead analyst: Tetsuya Yamamoto)
Senior subordinated debt rating (foreign currency): to A2 from
A1
Senior subordinated Medium Term Note Program rating (foreign
currency): to (P)A2 from (P)A1
Junior subordinated Medium Term Note Program rating (foreign
currency): to (P)A3 from (P)A2

Mizuho Trust & Banking Co., Ltd.
(Lead analyst: Tetsuya Yamamoto)
Long-term bank deposit rating (domestic and foreign currency):
to A1 from Aa3
Senior unsecured Medium Term Note Program rating (domestic
currency): to (P)A1 from (P)Aa3
Senior subordinated debt rating (domestic currency): to A2 from
A1
Senior subordinated shelf registration rating (domestic
currency): to (P)A2 from (P)A1
Junior subordinated shelf registration rating (domestic
currency): to (P)A3 from (P)A2

Mizuho TB (Aruba) A.E.C. (Lead analyst: Tetsuya Yamamoto)
Senior subordinated Medium Term Note Program rating (foreign
currency): to (P)A2 from (P)A1

Trust & Custody Services Bank, Ltd.
(Lead analyst: Tetsuya Yamamoto)
Long-term bank deposit rating (domestic and foreign currency) to
A1 from Aa3
Placed under review for possible upgrade

Mizuho Bank, Ltd. (Lead analyst: Tetsuya Yamamoto)
Bank financial strength rating: D+

Mizuho Corporate Bank, Ltd. (Lead analyst: Tetsuya Yamamoto)
Bank financial strength rating: D+

Mizuho Trust & Banking Co., Ltd.
(Lead analyst: Tetsuya Yamamoto)
Bank financial strength rating: D+

Mizuho Capital Investment (US$) 1 Limited
(Lead analyst: Tetsuya Yamamoto)
Preferred stock non-cumulative (foreign currency): B1(hyb)

Mizuho Capital Investment (US$) 2 Limited
(Lead analyst: Tetsuya Yamamoto)
Preferred stock non-cumulative (foreign currency): B1(hyb)

Mizuho Capital Investment (JPY) 5 Limited
(Lead analyst: Tetsuya Yamamoto)
Preferred stock non-cumulative (foreign currency): B1(hyb)

Mizuho Capital Investment (JPY) 6 Limited
(Lead analyst: Tetsuya Yamamoto)
Preferred stock non-cumulative (foreign currency): (P)B1

Mizuho Capital Investment (JPY) 7 Limited
(Lead analyst: Tetsuya Yamamoto)
Preferred stock non-cumulative (foreign currency): (P)B1


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


* SOUTH KOREA: Most Large Builders on Verge of Bankruptcy, KSERI
----------------------------------------------------------------
The Korea Times reports that the KS Economic Institute (KSERI)
claims that Korea's increasingly toxic housing market is now
threatening to wipe out the cream of the crop in its construction
industry.  The news agency says that high on the endangered list
are builders like Daewoo, Lotte, Ssangyong, Halla, Kolon and
Keangnam.

With house prices freefalling and unsold homes piling up, the KS
Economic Institute (KSERI) insists that most of the country's top-
50 builders are toying with bankruptcy, and one can almost hear
the collective nodding and sighing among 13 of the firms that are
already in different phases of insolvency processes, according to
The Korea Times.

Apart from the sidelined companies, The Korea Times relates, KSERI
picked 19 more builders that it sees as facing immediate prospects
of insolvency, whether this year or the next, and red-flagged 13
others.  Only five among the 50-biggest construction companies
were given a clean bill of health, The Korea Times notes.

"Insolvencies have been increasing fast among small builders since
2008, expanded to mid-sized builders in 2010 and have spread
further across the top-50 firms starting this year .  The whole
industry is engulfed in illness," the KSERI report said, according
to The Korea Times.

"Construction orders have been declining sharply since 2010 and
revenue from projects that are completed or underway is expected
to start declining this year. Insolvencies are already increasing
among builders depending heavily on homes or construction based on
project-financing."

According to The Korea Times, KSERI's analysis is based on the
rather simplistic math of debt-to-equity ratios, although the
researchers claim this doesn't make their arguments any less true.

Among the top-50 builders, 26 of them had borrowing ratios higher
than 200 percent as of the end of last year, The Korea Times
relays.  The group includes SK Engineering and Construction,
Doosan Engineering and Construction, Hanjin Heavy Industries, STX
Construction, Ssangyong Engineering and Construction, and Kolon
Construction. Separately, firms such as Kumho Industrial, Dongil
Construction and LIG Engineering and Construction have already
entered a workout phase or court receivership.

"Construction companies with debt-to-equity ratios of over 200
percent have to be seen as in very serious danger of falling into
insolvency," the KSERI report claimed.

Out of desperation, builders have been aggressively touting new
homes and pushing more project-financing schemes since last year,
despite the continued decline in the number of homebuyers. This
has triggered a vicious financial cycle that has pushed more
companies toward the brink, according to KSERI.

Among the top-50 builders, The Korea Times says, 33 firms have
guaranteed a larger amount of construction loans than their equity
capital.  This group includes Daewoo Construction, Lotte
Engineering and Construction, Hanwha Engineering and Construction,
KCC Engineering and Construction, Halla and Keangnam Enterprises
as well as the previously mentioned SK, Doosan, Ssangyong, STX,
Kolon and Kumho.

The Korea Times adds that the report claimed that snowballing
losses for Daewoo and Lotte warrant grave concern, while
Ssangyong, Keangnam, Halla and Kolon may struggle to cope with
their burden in project-financing loans.


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


KIA KAHA: Placed in Liquidation Over Unpaid Tax Bill
----------------------------------------------------
New Zealand Press Association reports that Kia Kaha Clothing has
gone into liquidation.  Kia Kaha Clothing was worn by Michael
Campbell when he won the US Open in 2005 and other celebrities
including Prince William and Black Eyed Peas singer Fergie.

According to NZPA, Fairfax Media reported that the High Court at
Palmerston North granted an Inland Revenue Department request to
liquidate the company over unpaid tax bills of NZ$198,613.95.

NZPA relates that liquidator John Fisk of PricewaterhouseCoopers  
said it was too early to say if the company's four staff would
lose their jobs.

Mr. Fisk said the Kia Kaha brand is the company's most valuable
asset and attempts will be made to realize that value by selling
the company as a going concern, Radio New Zealand reports.

The Upper Hutt company became well known internationally after
Michael Campbell dumped Nike in favor of Kia Kaha in 2003, NZPA
says.


MOOREHOUSE CONSTRUCTION: In Liquidation; Blames Insurance Woes
--------------------------------------------------------------
Martin Van Beynen at the Press reports that Moorehouse
Construction liquidator said that clients unable to get insurance
for new homes was the final straw for a troubled Christchurch
building company and former GJ Gardner franchisee.

Moorehouse Construction went into liquidation on August 9, with
creditors thought to be owed about NZ$1.5 million and with 12
homes to be completed, The Press relates.

The company's director is Robert Eric Root, of Sumner, who also
owns the company's shares.

Andrew Hawkes and Shaun Adams, of KPMG, have been appointed joint
liquidators.

According to The Press, Mr. Hawkes said the company was in trouble
before the slowdown in the residential market after the February
and June quakes, but the inability of prospective clients to get
insurance for their new homes was a final factor leading to the
liquidation.

The Press recalls that Moorehouse entered a compromise with
creditors in September 2009 and, before the February and June
quakes, was meeting creditors' costs.

The company operated as a GJ Gardner franchisee for south
Christchurch from June 2002 to July this year. The franchise was
terminated on July 18 and the company carried on as Elite Homes.

The Press relates that Mr. Hawkes said he was trying to find the
best outcome for creditors and the company's clients and was close
to a deal in which none of the clients would be disadvantaged. It
was unlikely creditors would get more than 20 cents in the dollar.

According to The Press, GJ Gardner Homes New Zealand managing
director Grant Porteous said the franchisee for north Christchurch
was a separate company and would probably complete three or four
of the homes or contracts not completed by Moorehouse.

At the time of the liquidation, Moorehouse had five Gardner homes
under construction and three at the contract stage.


PIKE RIVER: Mine Sale Process Could Continue Until Next Year
-----------------------------------------------------------
Radio New Zealand News reports that Pike River Coal Limited's
largest creditor, New Zealand Oil and Gas, said the mine sale
process could continue until next year.

Pike River Coal Ltd, the company that operates the coal mine where
29 miners died in a series of explosions in November 2010, was
placed into receivership in December 2010.  New Zealand Oil & Gas,
the company's largest shareholder, appointed accountants
PricewaterhouseCoopers as receivers.  The company owed NZ$80
million to secured creditors BNZ and NZ Oil & Gas.  Pike River
also owed another estimated NZ$10 million to NZ$15 million to
contractors, including some of the men who lost their lives in the
disaster.

New Zealand Oil & Gas Chief Executive David Salisbury said he is
encouraged by the number of bidders, some of which are foreign
entities.  The report relates that Mr. Salisbury said final bids
for the mine are due before the end of the year, but completing a
sale could take longer due to the sensitivities involved and
possible regulatory issues if the mine is sold to a foreign
company.

Meanwhile, Radio New Zealand News relates that New Zealand Oil &
Gas has posted a full-year loss of almost NZ$76 million due to a
significant write-down in its investment in Pike River Coal Ltd.
The company lost NZ$75.9 million in the year to June, compared
with a NZ$3.9 million loss the previous year, the report notes.

The result includes a NZ$99 million write-down of its investment
in Pike River Coal, Radio New Zealand says.

                          About Pike River

Pike River Coal Limited (NZE:PRC) -- http://www.pike.co.nz/-- is
a New Zealand-based coal mining company.  The Company, along with
its subsidiaries, is primarily engaged in the exploration,
evaluation, development and production of coal.  It operates a
coal mine that lies under the Paparoa Ranges.


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


PHILIPPINE AIRLINES: Sends Termination Letters to 2,600 Workers
---------------------------------------------------------------
The Philippine Star reports that flag carrier Philippine Airlines
has commenced implementation of its spin-off/outsourcing program
by sending individual separation letters to about 2,600 workers
from the airline's catering, airport services, and call center
reservations units.

The Star relates that PAL President and Chief Operating Officer
Jaime Bautista said the letters notified affected workers that
their employment with the flag carrier is only up to the close of
their respective duty hours on Sept. 30, 2011.

Those who expressed intention to join the airline's third party
service providers will start official duty the next day, the
report notes.

According to the Star, Mr. Bautista said PAL also sent notices to
the regional offices of the Department of Labor and Employment
(DOLE) in Manila and Cebu.

"The spin-off/outsourcing is a painful but necessary decision to
ensure PAL's viability and long term survival. We assure affected
workers that they will all receive their separation pay and other
benefits that are at par, if not better, than industry standards.
Guaranteed employment also awaits them at our third-party service
providers," the Star quotes Mr. Bautista as saying.

The Star discloses that PAL will spend about PHP2.5 billion for
the severance package.  

The layoffs will cut the airline's staff to 5,000 and are part of
PAL's survival plan launched in 2010 after it lost $312 million in
the previous two years, the Associated Press reports.

The AP notes that the airline posted a $72.5 million profit in
2010 but is back in the red with $10.5 million in losses for the
first quarter of this fiscal year.  It blamed volatile fuel
prices, a blacklist by the European Union against Philippine
carriers, and the devastating tsunami in Japan, the AP discloses.

According to the AP, Mr. Bautista said outsourcing will save PAL
$10 million to $15 million a year, bring profit, and allow PAL to
focus on its main business.  He said PAL is one of only a few
airlines in Asia still operating its own catering and ground
handling units, the AP adds.

                    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.


RURAL BANK OF INDANG: BSP Places Bank Under Receivership
--------------------------------------------------------
Neil Jerome C. Morales at BusinessWorld Online reports that the
Banko Sentral ng Pilipinas (BSP) has placed a Cavite-based rural
bank under receivership -- the 22nd for this year.

The Monetary Board, in its Resolution No. 1238 dated Aug. 18, said
the Rural Bank of Indang (Cavite), Inc., also representing itself
as First Reliance Bank, is prohibited from doing business in the
Philippines, according to BusinessWorld Online.

The report relates that all assets and affairs of the bank were
placed under receivership of state-run Philippine Deposit
Insurance Corp.

BusinessWorld Online notes that the Monetary Board, upon the
report of the head of the supervising or examining department,
places a bank under receivership if it is unable to pay
liabilities and has insufficient realizable assets to meet
liabilities.


                             *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N
   
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA.  Valerie U. Pascual, Marites O. Claro, Joy A. Agravante,
Rousel Elaine T. Fernandez, Psyche A. Castillon, Ivy B. Magdadaro,
Frauline S. Abangan, and Peter A. Chapman, Editors.

Copyright 2011.  All rights reserved.  ISSN: 1520-9482.
   
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
   
TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.





                   *** End of Transmission ***