TCRAP_Public/111007.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

           Friday, October 7, 2011, Vol. 14, No. 199

                            Headlines



A U S T R A L I A

CENTRO PROPERTIES: May Solicit Votes on Debt-for-Equity Plan
SMART SERIES: Fitch Assigns 'BBsf' Rating on AUD8.75-Mil. Notes


C H I N A

CHAODA MODERN: S&P Lowers Corp. Credit Rating From 'BB' to 'BB-'
* Tight Credit Conditions Lead to Small Chinese Firms' Failure


H O N G  K O N G

CHINA (INT'L): Court Enters Wind-Up Order
COLOR LINK: Lo and Leung Appointed as Liquidators
CROWN HONOR: Court Enters Wind-Up Order
DAILY FINE: Court Enters Wind-Up Order
GOLDWELL CONSTRUCTION: Court Enters Wind-Up Order

GRAND SKY: Court Enters Wind-Up Order
GREATBO INVESTMENT: Kong and Lo Step Down as Liquidators
H.K. ZHONG: Court Enters Wind-Up Order
INNOVATIVE NETWORK: Court to Hear Wind-Up Petition on Nov. 2
K VISION: Court to Hear Wind-Up Petition on Nov. 2

L&C LIGHTING: Yat and Hok Appointed as Liquidators
MARRIOT CONSTRUCTION: Court Enters Wind-Up Order
NEWHABIT.COM LIMITED: Lo and Leung Appointed as Liquidators
PACIFIC (HK): Lo and Leung Appointed as Liquidators
PLANKTON LIMITED: Court to Hear Wind-Up Petition on Nov. 9


I N D I A

AIR INDIA: Ministerial Panel to Discuss Dreamliner Purchase
AMAZON WOOD: CRISIL Reaffirms CRISIL BB Rating on INR65MM Credit
ASTORIA AGRO: CRISIL Assigns 'CRISIL B+' to INR250MM Term Loan
AVER LED: CRISIL Assigns 'CRISIL B' Rating to INR226.2MM Loan
B.D. TEXTILE: CRISIL Reaffirms 'CRISIL B+' to INR110MM Credit

DEEPAK & COMPANY: CRISIL Rates INR153.2MM Loan at 'CRISIL B'
INDIAN TRANSFORMERS: CRISIL Rates INR40MM Loan at 'CRISIL BB-'
JAYACHANDRA BEARINGS: CRISIL Rates INR58.6MM Cash Credit at 'BB'
LAKSHMI RAIL: CRISIL Assigns 'CRISIL D' Rating to INR65MM Loan
MADHU JEWELLERS: CRISIL Rates INR70MM Cash Credit at 'CRISIL BB-'

MANI EXPORTS: Fitch Assigns 'B+(ind)' National Long Term Rating
NISHIGANDHA POLYMERS: CRISIL Rates INR100MM Loan at 'CRISIL BB-'
OMEGA BIOTECH: CRISIL Reaffirms 'CRISIL BB+' Cash Credit Rating
PATSAR TRANSFORMERS: CRISIL Rates INR27.5MM Loan at 'CRISIL BB-'
PINCON SPIRIT: CRISIL Rates INR150MM Cash Credit at 'CRISIL BB+'

PMR FOOD: CRISIL Assigns 'CRISIL D' Rating to INR120MM LT Loan
RAJ HAIR: CRISIL Cuts Rating on INR36MM LT Loan to 'CRISIL BB-'
SAFARI INDUSTRIES: Fitch Affirms Nat'l Long Term Rating at 'BB-'
SHLOK MEDIA: CRISIL Assigns 'CRISIL BB' Rating to INR97MM Loan
SHRI SATGURU: CRISIL Reaffirms 'CRISIL BB-' Term Loan Rating

STATE BANK: Moody's Lowers Hybrid Debt Rating to 'Ba3'
VIKAS STRIPS: CRISIL Reaffirms 'CRISIL BB' Cash Credit Rating


J A P A N

JCREF CMBS: Deterioration of Property Cues Fitch to Lower Ratings
L-JAC THREE: S&P Cuts Ratings on 6 Classes of Certificates to 'D'
PROMISE CO: Moody's Reviews Ratings for Possible Upgrade
PROMISE CO: S&P Puts BB Counterparty Credit Rating on Watch Pos.


N E W  Z E A L A N D

ALLIED FARMERS: Settles Dispute With Hanover Over NZ$5MM Payment
AORANGI SECURITIES: Cash on Hand Doesn't exist, Managers Say
CENTURY CITY: Receivers Appointed to Two More Serepisos Firms
HIBERNIAN CREDIT: Faces Liquidation as Rescue Plan Rejected
NLG INSURANCE: Fitch Affirms Insurer Financial Strength at 'B'


S R I  L A N K A

* SRI LANKA: Fitch Upgrades Issuer Default Rating to 'BB-'


X X X X X X X X

* Large Companies with Insolvent Balance Sheets




                            - - - - -


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


CENTRO PROPERTIES: May Solicit Votes on Debt-for-Equity Plan
------------------------------------------------------------
The Sydney Morning Herald reports that the NSW Supreme Court has
cleared the way for Centro Properties Group's AUD4 billion
restructuring, saying it can proceed to put its complex debt-for-
equity proposal to votes of senior lenders, security holders and
creditors.

SMH says the restructuring was in doubt after an attempt by the
members of a class action to stop the vote of the senior lenders.

Under the revamp, SMH notes, only AUD10 million would be made
available to satisfy contingent creditors -- far short of the
AUD300 million they expected to recover if successful.
PricewaterhouseCoopers, as Centro's auditor, is being sued by the
class-action group and has cross claimed against various Centro
entities and the directors, the report relays.

According to SMH, Justice Reg Barrett said that so far, the
objectors had not presented a "knockout blow" that would warrant
the court's intervention.  "Whether they later assume that status
is a question for the future," Judge Barrett said in his judgment
delivered on October 5.

The report relates that Judge Barrett noted that while the public
policy issues identified were of potentially "great
significance," the legal teams for the objectors had very little
time to consider the documents and their objections were of a
general nature.

"The appropriate course is to allow the meetings to be convened
and then to return to the particular objections if and when the
meeting of relevant creditors has made a positive decision," the
judge said.

Andrew Watson, a principal with Maurice Blackburn which is
running the class action, said it would more fully consider its
position and submissions between now and the next court hearing
to approve the scheme, on November 24, according to SMH.

SMH adds that the court also heard that JPMorgan Chase would seek
to join as a defendant next week, which would give it access to
all the documents.  JPMorgan is a hybrid security holder and was
previously a creditor, the report discloses.

Following all court approvals, SMH notes, investors in Centro
Properties will receive a 5 cents payout from a pool of
AUD100 million.

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 10, 2011, that Centro Properties said it entered into an
agreement with its senior lenders to implement its restructure
transaction together with the proposed aggregation of the
Australian assets and interests held by CNP, Centro Retail
Trust (CER) and certain Centro managed funds.

The TCR-AP, citing The Australian, reported on Aug. 30, 2011,
that Centro Properties warned shareholders when handing down its
full-year results that the debt-bloated company still faces
liquidation if does not merge with the less indebted Centro
Retail Group.

Unitholders are due to vote this month on a merger of Centro
Properties Group and listed satellite Centro Retail Group to
create a listed trust owning a AUD4.4 billion portfolio of
Australian shopping centres, The Australian discloses.

                     About Centro Properties

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


SMART SERIES: Fitch Assigns 'BBsf' Rating on AUD8.75-Mil. Notes
---------------------------------------------------------------
Fitch Ratings has assigned SMART Series 2011-3 Trust notes
expected ratings.  The transaction is an asset-backed
securitisation backed by automotive and equipment lease
receivables originated by Macquarie Leasing Pty Limited
(Macquarie Leasing).

  -- AUD56.00MM Class A-1 notes: 'F1+(EXP)sf
  -- AUD252.00MM equivalent Class A-2 (A & G) AUD & GBP notes:
     'AAA(EXP)sf'; Outlook Stable
  -- AUD7.875MM Class B notes: 'AA(EXP)sf'; Outlook Stable
  -- AUD9.625MM Class C notes: 'A(EXP)sf'; Outlook Stable
  -- AUD8.750MM Class D notes: 'BBB(EXP)sf'; Outlook Stable
  -- AUD8.750MM Class E notes: 'BB(EXP)sf'; Outlook Stable
  -- AUD7.000MM seller notes: not rated

The notes will be issued by Perpetual Trustee Company Limited as
trustee for SMART Series 2011-3 Trust.  SMART Series 2011-3 Trust
is a legally distinct trust established pursuant to a master
trust and security trust deed.

"SMART Series 2011-3 Trust marks Macquarie Leasing's first
transaction to be issued in the UK market," said Ben Newey,
Director in Fitch's Structured Finance team.  "Lease receivables
originated by Macquarie Leasing have continued to perform
strongly with the 30+days arrears, tracking well below 1.0%."

At the cut-off date, the Macquarie Leasing's representative
collateral portfolio consisted of 9,529 automotive and equipment
lease receivables totalling approximately AUD346.5m, with an
average size of AUD36,363 and a weighted average seasoning of 5.8
months.  The pool consists of motor vehicles and equipment lease
receivables originated by Macquarie Leasing to Australian
residents across the country.  The pool comprises amortising
principal and interest leases with varying balloon amounts
payable at maturity.  The weighted average balloon payment for
the portfolio is 24.7% (as a percentage of original balance).
The majority of leases consist of novated contracts (52.8%),
where the lease is novated to the employer in salary package
arrangements.

Historical gross loss rates by quarterly vintage on passenger
vehicle leases originated by Macquarie Leasing were found to have
ranged between 0.6% and 1.5%, from 0.5% to 5% for light
commercial and from 1% to 4.8% for equipment.

The expected Short-Term 'F1+(EXP)sf' rating assigned to the Class
A-1 notes and the expected Long-Term 'AAA(EXP)sf' rating with
Stable Outlook assigned to the Class A-2A, and A-2G notes, are
based on: the quality of the collateral; the 12% credit
enhancement provided by the subordinate Class B, C, D and E notes
and the unrated seller notes and excess spread; the liquidity
reserve account sized at 1% of the aggregate invested amount of
the notes at closing; the interest rate swap arrangements
the trustee has entered into with Macquarie Bank Ltd
('A+'/Stable/'F1'); the currency swap provided by Australia and
New Zealand Banking Group Limited ('AA-'/Positive/'F1+'); and
Macquarie Leasing Pty Ltd's lease underwriting and servicing
capabilities.

The expected ratings assigned to the other classes of notes are
based on all the strengths supporting the Class A notes,
excluding their credit enhancement levels, but including the
credit enhancement provided by each class of notes' respective
subordinate notes.

The final ratings are contingent on receipt of final documents
conforming to information already received.


=========
C H I N A
=========


CHAODA MODERN: S&P Lowers Corp. Credit Rating From 'BB' to 'BB-'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered the long-term
corporate credit rating on Chaoda Modern Agriculture (Holdings)
Ltd. to 'BB-' from 'BB'.

"At the same time, we lowered the Greater China scale credit
rating to 'cnBB+' from 'cnBBB-'. We have placed all the ratings
on CreditWatch with negative implications," S&P said.

"We lowered the rating on Chaoda to reflect our view that the
recent suspension of trading in the company's shares and a delay
in its annual results announcement could undermine investor
confidence and therefore materially weaken its ability to access
the capital markets," said Standard & Poor's credit analyst Joe
Poon. "We also see potential reputational damage and key-man risk
for Chaoda over the investigation into alleged market misconduct
involving the chairman Mr. Kwok Ho and chief financial officer
Mr. Andy Chan. An unfavorable outcome from the investigation
would confirm our assessment that the company's corporate
governance is weak."

If share trading in Chaoda is suspended for more than 60
consecutive days, holders of its $200 million convertible bonds
due 2015 have the option to require the company to buy back the
bonds. "In our view, such an outcome would materially weaken
Chaoda's liquidity position and growth. Trading in Chaoda's
shares was suspended on Sept. 26, 2011, pending an announcement
by the company relating to an investigation by the Hong Kong
government. Chaoda made the announcement on Sept. 30, 2011, but
said it would make a further announcement to address fraud
allegations in a report by 'Anonymous Analytics'. Chaoda then
delayed its annual results announcement," S&P stated.

"Chaoda could face significant challenges to restore its image
while the market-misconduct investigation is underway, in our
opinion. The investigation could take a long time to resolve.
Chaoda's potential difficultly in accessing the capital markets
during this period could limit its growth prospects.
Historically, the company has pursued growth through debt and
equity financing," S&P related.

"We aim to resolve the CreditWatch within three months, during
which time we expect the management to provide more clarity over
the likely resumption of share trading and the annual results
announcement," said Mr. Poon. "In addition, we will evaluate the
potential operational and financial impact on the company that
may arise from the government's investigation."

"We could lower the rating by one or more notches depending on
the level of stress placed on the company's reputation,
operations, liquidity, and access to the capital markets," S&P
said.


* Tight Credit Conditions Lead to Small Chinese Firms' Failure
--------------------------------------------------------------
Dow Jones' DBR Small Cap reports that troubles among small
manufacturers in the bellwether Chinese city of Wenzhou are
putting a cloud over a key part of China's economy, further
shaking investor confidence and underscoring the stakes as
Beijing tries to strike a balance between fostering growth and
containing inflation.


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


CHINA (INT'L): Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on Aug. 3, 2011, to
wind up the operations of China (International) Water Proofing
Limited.

The company's liquidator is Pui Chiu Wing.


COLOR LINK: Lo and Leung Appointed as Liquidators
-------------------------------------------------
Lo Ka Ying and Leung Ka Lok said in notice dated Sept. 30, 2011,
they have been appointed by the High Court of Hong Kong as
liquidators of Color Link & Associates Limited on March 9, 2009.

The liquidators may be reached at:

         Lo Ka Ying
         Leung Ka Lok
         Room 1307, Tower 1
         Lippo Centre, 89 Queensway
         Admiralty, Hong Kong


CROWN HONOR: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on Sept. 1, 2011, to
wind up the operations of Crown Honor Distribution Centre
Limited.

The company's liquidators are Ho Man Kit Horace and Kong Sau Wai.


DAILY FINE: Court Enters Wind-Up Order
--------------------------------------
The High Court of Hong Kong entered an order on Sept. 6, 2011, to
wind up the operations of Daily Fine Industrial Limited.

The company's liquidators are Ho Man Kit Horace and Kong Sau Wai.


GOLDWELL CONSTRUCTION: Court Enters Wind-Up Order
-------------------------------------------------
The High Court of Hong Kong entered an order on Sept. 21, 2011,
to wind up the operations of Goldwell Construction Limited.

The company's liquidator is Teresa S W Wong.


GRAND SKY: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on Sept. 21, 2011,
to wind up the operations of Grand Sky (HK) Enterprise Limited.

The company's liquidator is Teresa S W Wong.


GREATBO INVESTMENT: Kong and Lo Step Down as Liquidators
--------------------------------------------------------
Kong Chi How Johnson and Lo Siu Ki stepped down as liquidators of
Greatbo Investment Limited on Aug. 25, 2011.


H.K. ZHONG: Court Enters Wind-Up Order
--------------------------------------
The High Court of Hong Kong entered an order on Aug. 3, 2011, to
wind up the operations of H. K. Zhong Xin Jia Hua Property
Investment Limited.

The company's liquidator is Pui Chiu Wing.


INNOVATIVE NETWORK: Court to Hear Wind-Up Petition on Nov. 2
------------------------------------------------------------
A petition to wind up the operations of Innovative Network
Engineering Company Limited will be heard before the High Court
of Hong Kong on Nov. 2, 2011, at 9:30 a.m.

Altaf Ahmed filed the petition against the company on Aug. 29,
2011.


K VISION: Court to Hear Wind-Up Petition on Nov. 2
--------------------------------------------------
A petition to wind up the operations of K Vision International
Investment (H.K.) Limited will be heard before the High Court of
Hong Kong on Nov. 2, 2011, at 9:30 a.m.

Madam Chow Fu Hsien filed the petition against the company on
Aug. 24, 2011.

The Petitioner's solicitors are:

          Messrs. Cheung & Yip
          12th Floor, Dah Sing Life Building
          99-105 Des Voeux Road
          Central, Hong Kong


L&C LIGHTING: Yat and Hok Appointed as Liquidators
--------------------------------------------------
Victor Yat Kit Jong and Rainier Hok Chung Lam on Aug. 25, 2011,
were appointed as liquidators of L&C Lighting (H.K.) Limited.

The liquidators may be reached at:

         Victor Yat Kit Jong
         Rainier Hok Chung Lam
         22/F, Prince's Building
         Central, Hong Kong


MARRIOT CONSTRUCTION: Court Enters Wind-Up Order
------------------------------------------------
The High Court of Hong Kong entered an order on Aug. 3, 2011, to
wind up the operations of Marriot Construction Limited.

The company's liquidator is Pui Chiu Wing.


NEWHABIT.COM LIMITED: Lo and Leung Appointed as Liquidators
-----------------------------------------------------------
Lo Ka Ying and Leung Ka Lok said in notice dated Sept. 30, 2011,
they have been appointed by the High Court of Hong Kong as
liquidators of Newhabit.com Limited on May 16, 2009.

The liquidators may be reached at:

         Lo Ka Ying
         Leung Ka Lok
         Room 1307, Tower 1
         Lippo Centre, 89 Queensway
         Admiralty, Hong Kong


PACIFIC (HK): Lo and Leung Appointed as Liquidators
---------------------------------------------------
Lo Ka Ying and Leung Ka Lok said in notice dated Sept. 30, 2011,
they have been appointed by the High Court of Hong Kong as
liquidators of Pacific (Hong Kong) Investment Company Limited on
Nov. 10, 2009.

The liquidators may be reached at:

         Lo Ka Ying
         Leung Ka Lok
         Room 1307, Tower 1
         Lippo Centre, 89 Queensway
         Admiralty, Hong Kong


PLANKTON LIMITED: Court to Hear Wind-Up Petition on Nov. 9
----------------------------------------------------------
A petition to wind up the operations of Plankton Limited will be
heard before the High Court of Hong Kong on Nov. 9, 2011, at
9:30 a.m.

The Petitioner's solicitors are:

          Wilkinson & Grist
          6th Floor, Prince's Building
          10 Chater Road
          Central, Hong Kong


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I N D I A
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AIR INDIA: Ministerial Panel to Discuss Dreamliner Purchase
-----------------------------------------------------------
Nikhil Gulati at Dow Jones Newswires reports that a panel of
senior Indian ministers tasked with overseeing a turnaround plan
for Air India Ltd. will meet later this month to decide on the
national carrier's order for 27 Dreamliner 787 planes from Boeing
Co.

The meeting, set for the week to Oct. 22, comes as Boeing
prepares to deliver the first Dreamliner plane to Air India this
quarter after a delay of more than three years, Dow Jones says.

"The group of ministers will discuss whether it makes commercial
sense for Air India to buy the Dreamliners or not," the news
agency quotes a top official at the civil aviation ministry as
saying.

According to Dow Jones, the official said the government wants
also to ensure that Air India has the financial capability to pay
for the Dreamliner planes instead of seeking federal assistance
in the future.

The panel will decide whether to ask Air India to cancel or defer
the delivery of the Dreamliners, the official said.

                         About Air India

Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world.  Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle
East, and Air India Cargo provides freight transportation.  The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on
domestic routes.  The combined airline, part of a new holding
company called National Aviation Company of India, uses the Air
India brand.  The new Air India and its affiliates have a fleet
of more than 110 aircraft altogether.

                         *     *     *

The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been
bleeding cash due to excess capacity, lower yield, a drop in
passenger numbers, an increase in fuel prices and the effects of
the global slowdown.  The carrier incurred net losses of
INR2,226.16 crore in 2007-08 and INR5,548 crore in 2008-09.  Air
India is estimated to have lost INR54 billion in the fiscal year
ended March 31, 2010, according to The Wall Street Journal.

The TCR-AP, citing livemint.com, reported on July 27, 2010, that
Air India unveiled a turnaround plan that envisages the airline
reaching operational break-even and wiping out the INR14,000
crore of accumulated losses and INR18,000 crore of debt on its
balance sheet by 2014-15.  The plan includes raising the
company's fleet strength to as many as 275 planes from 148 in
five years.  Air India Chairman and Managing Director Arvind
Jadhav said the new 100-page turnaround plan for 2010-14, which
ruled out any job cuts or wage reductions, was approved by the
board and would be adopted after incorporating suggestions by
representatives of the airline's 33,500 employees.


AMAZON WOOD: CRISIL Reaffirms CRISIL BB Rating on INR65MM Credit
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Amazon Wood Pvt Ltd
continue to reflect the extensive experience of Amazon's
promoters in the wood industry, and its moderate financial risk
profile, marked by moderate gearing and comfortable debt
protection metrics.

   Facilities                       Ratings
   ----------                       -------
   INR23.6 Million Term Loan        CRISIL BB/Stable
   (Enhanced from INR7.5 Million)

   INR65 Million Cash Credit        CRISIL BB/Stable (Reaffirmed)

   INR35 Million Proposed Cash      CRISIL BB/Stable (Reaffirmed)
                   Credit Limit  

   INR170 Mil. Letter of Credit     CRISIL A4+ (Reaffirmed)

   INR230 Million Proposed Letter   CRISIL A4+ (Reaffirmed)
                        of Credit

These rating strengths are partially offset by Amazon's large
working capital requirements, small scale of operations, small
net worth, and susceptibility to volatility in foreign exchange
rates.

Outlook: Stable

CRISIL believes that Amazon will continue to benefit over the
medium term from its promoters' extensive industry experience.
The outlook may be revised to 'Positive' if Amazon's financial
risk profile (including liquidity) improves further, most likely
driven by more-than-expected revenues and profitability.
Conversely, the outlook may be revised to 'Negative' if the
company's financial risk profile deteriorates, most likely
because of larger-than-expected debt-funded capital expenditure
(capex), more-than-expected working capital requirements, or
pressure on cash accruals.

Update

For 2010-11 (refers to financial year, April 1 to March 31),
Amazon registered revenues of about INR647.3 million, a growth of
around 55% over that in 2009-10, which was broadly in line with
CRISIL's expectations. The growth in revenues was primarily
driven by continued demand from existing customers. During 2010-
11, the company reported an operating margin of 7.2%, which was
also broadly in line with CRISIL's expectations. Amazon's
financial risk profile remained moderate, driven by moderate cash
accruals and improved working capital management. The company is
currently expanding its operations by setting up a manufacturing
unit at Chennai. It is also in the process of acquiring two acres
of land along with a shed adjacent to its unit at Pune
(Maharashtra). This will involve a total capex of about INR60
million over the next two years. Though the gearing is expected
to deteriorate following the capex, it would remain moderate for
the rating category.

Amazon reported a profit after tax (PAT) of INR20.4 million on
net sales of INR647.3 million for 2010-11, against a PAT of
INR17.0 million on net sales of INR419.3 million for 2009-10.

                        About Amazon Wood

Amazon was set up as an equal joint venture (JV) between
Mr. Rakesh Verma, Mr. Sanjiv Gupta, and Mr. Rajinder Singh.
Incorporated in 2006, Amazon manufactures pre-laminated particle
boards from baggasse and wood board in Pune. The present
installed capacity of the manufacturing unit is 3,000 to 3,200
boards per day. The company is setting up an additional
manufacturing unit at Chennai which is expected to start
commercial production by October 2011. After this expansion, the
enhanced capacities of the company would be 6,000 to 6,500 boards
per day. Amazon also trades in imported baggasse boards.  The
trading business accounts for around 36% of its total revenues.
In 2010-11, the JV partners handed over the ownership of the
company to Mr. Rakesh Verma and family.


ASTORIA AGRO: CRISIL Assigns 'CRISIL B+' to INR250MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the rupee
term loan facility of Astoria Agro and Allied Industries Pvt Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR250 Million Rupee Term Loan    CRISIL B+/Stable (Assigned)

The rating reflects Astoria Agro's susceptibility to risks
related to stabilization of operations of its recently acquired
out-of-use sugar mill and high degree of government regulation of
the sugar industry. These rating weaknesses are partially offset
by Astoria Agro's limited exposure to funding and implementation
risk before re-commencement of operations as the bank funding for
the acquisition in place and the plant can restart operations
with marginal incremental capital expenditure.

Outlook: Stable

Astoria Agro will sustain its credit risk profile over the medium
term on the back of limited funding and implementation risks for
its sugar mill. The outlook may be revised to 'Positive' if the
company commences and stabilizes its operations before expected
and is able to achieve adequate cash accruals before its debt
repayment commences. The outlook may be revised to 'Negative' if
there is a significant delay in the commissioning of the sugar
mill, leading to pressure on the company's debt servicing
ability.

                          About Astoria Agro

Astoria Agro (formerly, Astoria Jewellery Pvt Ltd) was promoted
by Mr. Pramod Goenka in April 2010. The company acquired a not-
in-use sugar factory (previously owned by Pushpadanteshwar
Sahakari Sakhar Karkhana Ltd [PSSKL]) in Nandurbar (Maharashtra)
through an auction from the Maharashtra State Co-op Bank Ltd (MSC
Bank). The factory has an installed capacity of 2500 tonnes
crushed per day. The MSC Bank issued a sales certificate to
Astoria Agro as on August 30, 2011, for possession of the
property. The repairs and replacement of machinery and re-
commencement of operations are likely to take about six months
from the date of possession of assets of PSSKL and financial
closure.


AVER LED: CRISIL Assigns 'CRISIL B' Rating to INR226.2MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Aver LED & Solar Energy Pvt Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR48.3 Million Cash Credit      CRISIL B/Stable (Assigned)
   INR226.2 Mil. Rupee Term Loan    CRISIL B/Stable (Assigned)
   INR15 Million Bank Guarantee     CRISIL A4 (Assigned)
   INR10 Million Letter of Credit   CRISIL A4 (Assigned)

The ratings reflect Aver's weak financial risk profile during the
initial year of its operations marked by high gearing and
susceptibility to offtake risks and execution risks inherent in
the implementation of a greenfield project. These rating
weaknesses are partially offset by the high growth prospects for
the light-emitting diode (LED) lighting industry.

Outlook: Stable

CRISIL believes that Aver will benefit over the medium term from
the strong growth prospects for the LED lighting industry. The
outlook may be revised to 'Positive' if the company records
better-than-expected revenue offtake in the initial years of its
operations, or if its financial risk profile improves on account
of more-than-expected equity infusion by the promoters over the
next two years. Conversely, the outlook may be revised to
'Negative' in case there are significant costs or time overruns
in the project, leading to material weakening in the financial
risk profile over the next two years.

                          About Aver LED

Aver was incorporated in February 2010 and assembles LED lighting
solutions and trades solar panels, solar batteries, and solar
street light solutions, which it markets under its brand, Aver.
The company is presently running two assembling units for LED
lighting solutions on a trial basis. Aver is promoted by Mr. Hari
B Patel, Mr. Dinesh B Patel, Mr. Kanti B Patel, and Mr. Ramesh B
Patel. Over the medium term, the company has plans to install
manufacturing capacity for producing LED lighting solutions. Aver
also plans to install in-house capacities for manufacturing
aluminium and plastic casings. It will continue to source LED
components from Singapore, Taiwan, and South Korea, etc.

Aver is estimated to have reported a profit after tax (PAT) of
INR1.4 million on net sales of INR13.9 million for 2010-11
(refers to financial year, April 1 to March 31), which was its
first year of operations.


B.D. TEXTILE: CRISIL Reaffirms 'CRISIL B+' to INR110MM Credit
-------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating to the long-
term bank facilities of B.D. Textile Mills Pvt Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR110.0 Million Cash Credit     CRISIL B+/Stable (Reaffirmed)

The rating continues to reflect BDT's weak financial risk
profile, marked by a small net worth, high gearing, and weak debt
protection metrics, and small scale of operation coupled with
commoditized nature of operations results in lower profitability
margins. These rating weaknesses are partially offset by BDTMPL's
established position in the textile market and the extensive
industry experience of its promoters.

Outlook: Stable

CRISIL believes that BDTMPL will continue to benefit over the
medium term from its extensive industry experience of its
promoters and established relationships with customers. The
outlook may be revised to 'Positive' in case there is a
substantial increase in BDT's net-worth mainly on account of
equity infusion from the promoters or there is a substantial
increase in revenues and profitability margins from the current
levels. Conversely, the outlook may be revised to 'Negative' if
the company's profitability declines steeply from the current
levels or if the company undertakes a large debt-funded capex,
thereby resulting in a weaker financial risk profile.

                         About B.D. Textile

Established in 1975, BDT is a Rajasthan-based manufacturer of
women's blouse material. The company is managed by Mr. Ganpat
Chopra and his brother, Mr. Devichand Chopra; they are assisted
by Mr. Rajesh Chopra, Mr. Vikas Chopra, and Mr. Pankaj Chopra in
managing the day-to-day operations. BDT has in-house facilities
for mercerising, texturising, dyeing, and pressing of grey
fabric; it outsources the spinning and weaving activities to its
group concerns based in Bhiwandi (Maharashtra).

BDT reported a profit after tax (PAT) of INR4.1 million on net
sales of INR682.5 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR476.4 million on net
sales of INR2.4 million for 2009-10.


DEEPAK & COMPANY: CRISIL Rates INR153.2MM Loan at 'CRISIL B'
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the proposed
bank facility of Deepak & Company.

   Facilities                        Ratings
   ----------                        -------
   INR153.2 Million Proposed         CRISIL B/Stable (Assigned)
   Long-Term Bank Loan Facility

The rating reflects DNC's exposure to risks related to funding
and implementation of its ongoing build-operate-transfer (BOT)
projects and exposure to revenue-related risks associated with
toll collections. These rating weaknesses are partially offset by
DNC's promoter-partners' experience in the road construction
segment.

Outlook: Stable

CRISIL expects DNC's business risk profile to remain under
pressure over the near term because of the funding- and
implementation-related risks that the firm is faced with in its
ongoing BOT projects. The outlook may be revised to 'Positive' if
DNC complete the projects ahead of schedule and generates
sufficient cash accruals to meet its term debt obligations.
Conversely, the outlook may be revised to 'Negative' if the firm
faces time or cost overrun in the projects, leading to weakening
in its ability to meet term debt obligations, or if its promoter-
partners withdraw support they extend to the firm in the form of
unsecured loans.

                      About Deepak & Company

DNC was established as a partnership firm in 1992 by Mr. Krishna
Kumar Ladha and his family. The firm is engaged in construction,
widening and repairing of roads. DNC is a registered contractor
with Public Works Department (PWD), Rajasthan, and other urban
local bodies. The firm has diversified into BOT projects by
winning two projects from PWD, Rajasthan.

DNC has been selected for strengthening, widening and improvement
of a 36.9-kilometre stretch of State Highway 03, with concession
period of 12 years and 5 months. The project cost of INR177.3
million is to be funded by term debt of INR131.7 million, equity
of INR35 million, and unsecured loans. The second project
involves strengthening, widening and improvement of a 19.5-
kilometre stretch of Major District Road 02 connecting Laxmangarh
and Salasar, with concession period of 5 years and 6 months. The
project cost of INR141.1 million is to be funded by term loan of
INR104.7 million, equity of INR25.0 million, and unsecured loans
of INR11.4 million.

DNC reported a book profit of INR8.5 million on net revenue of
INR148 million for 2009-10 (refers to financial year, April 1 to
March 31), against a book profit of INR4.3 million on net revenue
of INR94 million for 2008-09.


INDIAN TRANSFORMERS: CRISIL Rates INR40MM Loan at 'CRISIL BB-'
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Indian Transformers & Electricals (Prop.
Patni Enterprises Pvt. Ltd.) (ITE; part of the Patni group). The
ratings reflect the extensive experience of the Patni group's
promoters in the transformer business and its established
customer relationships.  These strengths are partially offset by
the group's average financial risk profile, driven by large
working capital requirements, and its small scale of operations
in the highly fragmented and intensely competitive transformer
industry.

   Facilities                       Ratings
   ----------                       -------
   INR40 Million Cash Credit        CRISIL BB-/Stable (Assigned)
   INR25 Million Letter of Credit   CRISIL A4+ (Assigned)
   INR25 Million Bank Guarantee     CRISIL A4+ (Assigned)

For arriving at the ratings, CRISIL has combined the business and
financial profiles of ITE and Patsar Transformers and Electrical
and Pvt ltd (PTE), together referred as Patni group. This is
because both companies are in the same line of business and under
common management.

Outlook: Stable

CRISIL believes that the Patni group will continue to benefit
from its promoters' extensive experience in the transformer
business, over the medium term. The outlook may be revised to
'Positive' in case the company improves its scale of operations
or manages its working capital more efficiently, leading to
improvement in financial risk profile. Conversely, the outlook
may be revised to 'Negative' in case of significant deterioration
in financial risk profile, particularly the liquidity, due to
larger-than-expected working capital requirements, lower-than-
expected profitability, or larger-than-expected unrelated
investments.

                           About the Group

The Patni group primarily manufactures transformers. The Jaipur-
based group supplies transformers mainly to the Rajasthan State
Electricity Board, and also takes orders for the state
electricity boards (SEBs) of Maharashtra and Haryana. It also
executes orders for private players in the industry such as UB
Engineering Ltd and Aravali Infrapower Ltd. Around 60% of the
group's revenues are derived from SEBs. ITE and PTE each have the
capacity to produce 3500 transformers per annum. The group plans
to enhance capacity to 5000 transformers for each of the entities
by 2013.

PTE's customer base comprises largely SEBs, whereas ITE caters to
both SEBs and private players.

The Patni group reported a profit after tax (PAT) of INR4.6
million on net sales of INR428 million in 2010-11 (refers to
financial year, April 1 to March 31), against a PAT of INR7.2
million on net sales of INR333.7 million in 2009-10.


JAYACHANDRA BEARINGS: CRISIL Rates INR58.6MM Cash Credit at 'BB'
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the long-
term bank facilities of Jayachandra Bearings India Pvt Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR58.6 Million Cash Credit      CRISIL BB/Stable (Assigned)

The rating reflects the industry experience of JBPL's promoters
in trading of bearings and their established relationships with
customers and principals. These rating strengths are partially
offset by JBPL's working-capital-intensive operations and below-
average financial risk profile, marked by a small net worth and
highly leveraged capital structure.

Outlook: Stable

CRISIL believes that JBPL will continue to benefit from the
industry experience of its promoters over the medium term. The
outlook may be revised to 'Positive' if the company substantially
improves its scale of operations while maintaining its margins or
in case of significant improvement in its capital structure.
Conversely, the outlook may be revised to 'Negative' if JBPL's
liquidity deteriorates due to increased working capital
requirement or if there is considerable deterioration in the
company's financial risk profile because of lower profitability
or revenues, or if the company undertakes a significant debt-
funded capital expenditure programme.

                    About Jayachandra Bearings

JBPL, reconstituted as a private limited company in 2005 is
engaged in trading of bearings. The promoters commenced their
operations in 1968 as a proprietary concern which was
subsequently reconstituted as a partnership firm in 1977. JBPL's
operations are currently managed by Mr. Jayakumar and his wife
Mrs. J. Gandhimathi. The company supplies to various end-user
industries, such as textiles, cement, sugar, paper, and machine
tools and is an authorized distributor of bearings of NRB
Bearings Ltd, HMT Bearings Ltd, and FAG Bearings India Ltd in
South India.

JBPL reported a profit after tax (PAT) of INR4.9million on net
sales of INR341 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR3.5 million on net
sales of INR232 million for 2009-10.


LAKSHMI RAIL: CRISIL Assigns 'CRISIL D' Rating to INR65MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the bank facilities
of Lakshmi Rail Infra Pvt Ltd.

   Facilities                      Ratings
   ----------                      -------
   INR65 Million Term Loan         CRISIL D (Assigned)
   INR25 Million Cash Credit       CRISIL D (Assigned)
   INR30 Million Bank Guarantee    CRISIL D (Assigned)

The rating reflects instances of delay by LRIPL in servicing its
term loan; the delays have been caused by the company's weak
liquidity.

LRIPL is exposed to risks related to revenue concentration and
its small scale of operations. These weaknesses are partially
offset by the healthy demand outlook for the concrete sleeper
industry and the extensive industry experience of LRIPL's
promoters.

                       About Lakshmi Rail

LRIPL was incorporated in 2008 by Mr. Atuluri Sayoji Rao and his
family. The company recently set up a concrete sleeper
manufacturing facility near Yellakaru railway station in Andhra
Pradesh at a total cost of around INR126 million, which was
funded through a term loan of INR65 million from State Bank of
India, and through promoters' contribution. The company commenced
commercial operations in February 2011.

The facility has an installed sleeper manufacturing capacity of
0.24 million per annum. The company currently has an order worth
INR314.5 million from South Central Railways for the supply of
0.25 million concrete sleepers.


MADHU JEWELLERS: CRISIL Rates INR70MM Cash Credit at 'CRISIL BB-'
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to the cash
credit facility of Madhu Jewellers Pvt Ltd.

   Facilities                     Ratings
   ----------                     -------
   INR70 Million Cash Credit      CRISIL BB-/Stable (Assigned)

The rating reflects MJPL's low inventory and moderate debtor risk
and the extensive industry experience of its promoters and
company's established customer relationships. These rating
strengths are partially offset by MJPL's weak debt protection
metrics and low profitability, due to the low value addition
nature of MJPL's operations, and the modest scale of its
operations in the gold jewellery industry.

Outlook: Stable

CRISIL believes that MJPL will continue to benefit from its
promoters' extensive experience in the jewellery business and
company's established customer relationships over the medium
term. The outlook may be revised to 'Positive' in case of
substantial increase in MJPL's scale of operations and
profitability, leading to better-than-expected cash accruals.
Conversely, the outlook may be revised to 'Negative' if MJPL
faces any pressures on liquidity because of larger-than-expected
working capital requirements, or if its capital structure
deteriorates because of an aggressively debt-funded capital
expenditure (capex) programme.

                        About Madhu Jewellers

Established in 2006 by Mr. Mukeshkumar Muthaliya in Mumbai, MJPL
is engaged in the manufacturing (on a job-work basis) of gold
jewellery. The company mainly deals in bangles in addition to
necklaces, rings, chains. MJPL mainly sells to branded retail
showrooms with major revenues coming from Southern India.

MJPL reported a profit after tax (PAT) of INR1.2 million on net
sales of INR303.6 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR0.7 million on net
sales of INR93.6 million for 2009-10.


MANI EXPORTS: Fitch Assigns 'B+(ind)' National Long Term Rating
---------------------------------------------------------------
Fitch Ratings has assigned India's Mani Exports a National Long-
Term rating of 'Fitch B+(ind)' with Stable Outlook.  Fitch has
also assigned Mani's INR440 million fund-based facility a 'Fitch
B+(ind)' rating.

The ratings are constrained by Mani's high working capital
requirement, exposure to volatility in diamond prices and forex
rates and Fitch expects that its interest costs will increase
during the current financial year ending March 2012.
The ratings, however, draw strength from Mani's four decades of
experience in diamond trading and its positive cash flow from
operations for the past four years (FY11: INR12 million).

Negative rating guidelines include Mani's interest coverage
falling below 1.25x on a sustained basis. Positive rating
guideline includes its interest coverage rising above 2.5x on a
sustained basis.

Founded in 1987, Mani is a partnership firm with its head office
in Mumbai and has various factories in Gujarat.  It was awarded
Star Export House status by the government in 2010.  In FY11,
Mani recorded revenue of INR1,245 million (FY10: INR952 million)
with an operating EBITDA of INR67 million (INR70 million),
financial leverage (total adjusted debt/EBITDA) of 4.8x (4.4x)
and interest coverage (operating EBITDA/gross interest expense)
of 3.4x (2.2x).  Mani has an improved, but long, net working
capital cycle of around 150 days during the same period.  The
company also has two windmills of 0.6MW capacity each at Kutch,
Gujarat for the power requirement at all its factories.


NISHIGANDHA POLYMERS: CRISIL Rates INR100MM Loan at 'CRISIL BB-'
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Nishigandha Polymers Pvt Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR100 Million Cash Credit       CRISIL BB-/Stable (Assigned)
   INR60 Million Letter of Credit   CRISIL A4+ (Assigned)

The ratings reflect NPPL's established position in the rubber
trading business. This rating strength is partially offset by
NPPL's below-average financial risk profile, marked by small net
worth, high Total outside liabilities/Total net worth and weak
debt protection metrics.

Outlook: Stable

CRISIL believes that NPPL will continue to benefit over the
medium term from its promoters' extensive experience in trading
synthetic rubber. The outlook may be revised to 'Positive' in
case of significant improvement in the company's capital
structure, scale of operations, and profitability. Conversely,
the outlook may be revised to 'Negative' if NPPL's financial risk
profile deteriorates because of substantially lower-than-expected
profitability or revenues or significant deterioration in its
working capital cycle.

                      About Nishigandha Polymers

Incorporated in 1992 and based in Mumbai (Maharashtra), NPPL
trades in synthetic rubber. The products find application in the
automobile industry for manufacturing rubber components, fuel
delivery pipes, and gaskets. The companies clientele base
includes companies like Bharat Petroleum Corporation Limited, G B
Rubber Products, Nicco Cables Limited, Suja Shoei Industries Ltd.
NPPL is managed by Mr. Rohit Ravani, who is the managing director
and is ably supported by Mr. Sunil More and Mr. Anil More, who
are the directors in the company.

NPPL reported a profit after tax (PAT) of INR9.5 million on net
sales of INR580.3 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR3.0 million on net
sales of INR369.6 million for 2009-10.


OMEGA BIOTECH: CRISIL Reaffirms 'CRISIL BB+' Cash Credit Rating
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Omega Biotech Ltd
continue to reflect OBL's moderate financial risk profile, marked
by low gearing and above-average debt protection metrics, and
promoters' experience in generic pharmaceutical sector.

Facilities                         Ratings
----------                         -------
INR50.0 Million Cash Credit        CRISIL BB+/Stable(Reaffirmed)
INR4.5 Mil. Standby Line of Credit CRISIL BB+/Stable(Reaffirmed)
INR11.0 Million Bank Guarantee     CRISIL A4+ (Reaffirmed)
INR4.0 Million Letter of Credit    CRISIL A4+ (Reaffirmed)

These rating strengths are partially offset by OBL's low margins
because of competitive pressures, small scale of operations, and
small net worth.

Outlook: Stable

CRISIL believes that OBL will maintain its moderate financial
risk profile, backed by low gearing and above-average debt
protection metrics, over the medium term. OBL's profitability,
however, is expected to remain under pressure because of
intensifying market competition. The outlook may be revised to
'Positive' if OBL's profitability improves significantly and if
there is an improvement in its working capital management.
Conversely, the outlook may be revised to 'Negative' if OBL's
financial risk profile weakens, most likely because of large,
debt-funded capital expenditure (capex) or a further decline in
profitability.

Update

For 2010-11 (refers to financial year, April 1 to March 31), OML
has reported a year-on-year revenue growth of 24% to INR473.5
million, which was higher than CRISIL's expectation. High growth
in revenues has been on the back of high realizations - OML now
manufactures cefixime-based formulations, which has high
realizations - and increase in contribution from government
tender business. OML had an order book of INR150 million as on
Sept. 15, 2011, which provides near-term revenue visibility. The
company's operating margin, at 4.7% in 2010-11, was marginally
lower than CRISIL's projections. CRISIL believes that OML will
maintain the marginal growth in its revenues over the medium
term; however, its operating margin will continue to be low in
the medium term because of intensifying competition and its
increased focus on low-margin government business. The operations
of the company are expected to remain working capital intensive,
with debtor level of around 100 days of sales as a result of
extended credit period offered by the company to its customers.

OML's financial risk profile continues to be moderate. Its
gearing, at 0.45 times as on March 31, 2011, was in line with
CRISIL's projections. In the absence of any debt-funded capex,
OML's financial risk profile is expected to be moderate,
supported by above-average debt protection metrics. Also, the
company is likely to generate cash accruals in excess of INR15
million, against maturing debt obligations of less than INR0.8
million, in 2011-12. OML's liquidity is also marked by moderate
cash credit utilization of 84% for the 12 months through August
2011.

OBL reported a profit after tax (PAT) of INR10.9 million on
revenues of INR473.5 million for 2010-11, as against a PAT of
INR7.2 million on revenues of INR381.2 million for 2009-10.

                       About Omega Biotech

OBL was established in 2000 by Mr. Rajeev Gupta and family. OBL
manufactures pharmaceutical formulations. Its product range
includes nutritional, dermatological, anti-allergic, anti-
diabetic, and anti-fungal formulations. The company's
manufacturing unit is in Roorkee (Uttarakhand); this enables the
company avail of excise and income tax benefits till 2013-14. OBL
also contract manufactures capsules and medicines for large
companies such as Cadila Healthcare Ltd, and sells to government
agencies in addition to distributors. Its products are sold under
the brand Omega.


PATSAR TRANSFORMERS: CRISIL Rates INR27.5MM Loan at 'CRISIL BB-'
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Patsar Transformers and Electrical Pvt Ltd
(PTE; part of the Patni group).

   Facilities                        Ratings
   ----------                        -------
   INR27.5 Million Cash Credit       CRISIL BB-/Stable (Assigned)
   INR17.5 Million Letter of Credit  CRISIL A4+ (Assigned)
   INR22.5 Million Bank Guarantee    CRISIL A4+ (Assigned)

The ratings reflect the extensive experience of the Patni group's
promoters in the transformer business and its established
customer relationships. These strengths are partially offset by
the group's average financial risk profile, driven by large
working capital requirements, and its small scale of operations
in the highly fragmented and intensely competitive transformer
industry.

For arriving at the ratings, CRISIL has combined the business and
financial profiles of PTE and Indian Transformers & Electricals
(ITE), together referred as Patni group. This is because both
companies are in the same line of business and under common
management.

Outlook: Stable

CRISIL believes that the Patni group will continue to benefit
from its promoters' extensive experience in the transformer
business, over the medium term. The outlook may be revised to
'Positive' in case the company improves its scale of operations
or manages its working capital more efficiently, leading to
improvement in financial risk profile. Conversely, the outlook
may be revised to 'Negative' in case of significant deterioration
in financial risk profile, particularly the liquidity, due to
larger-than-expected working capital requirements, lower-than-
expected profitability, or larger-than-expected unrelated
investments.

About the Group

The Patni group primarily manufactures transformers. The Jaipur-
based group supplies transformers mainly to the Rajasthan State
Electricity Board, and also takes orders for the state
electricity boards (SEBs) of Maharashtra and Haryana. It also
executes orders for private players in the industry such as UB
Engineering Ltd and Aravali Infrapower Ltd. Around 60% of the
group's revenues are derived from SEBs. ITE and PTE each has the
capacity to produce 3500 transformers per annum. The group plans
to enhance capacity to 5000 transformers for each of the entities
by 2013.

PTE's customer base comprises largely SEBs, whereas ITE caters to
both SEBs and private players.

The Patni group reported a profit after tax (PAT) of INR4.6
million on net sales of INR428 million in 2010-11 (refers to
financial year, April 1 to March 31), against a PAT of INR7.2
million on net sales of INR333.7 million in 2009-10.


PINCON SPIRIT: CRISIL Rates INR150MM Cash Credit at 'CRISIL BB+'
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable' rating to the cash
credit facility of Pincon Spirit Ltd.

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

The rating reflects PSL's moderate business risk profile, low
inventory risk, and moderate debtor risk inherent in the Indian-
made foreign liquor (IMFL) trading business. These rating
strengths are partially offset by PSL's exposure to risks related
to high government regulation and competitive nature of industry,
low profitability due to the trading nature of its business, and
expected deterioration in its financial risk profile due to large
debt-funded capital expenditure (capex).

Outlook: Stable

CRISIL believes that PSL will benefit over the medium term from
its established IMFL distribution business. The outlook may be
revised to 'Positive' in case of substantial improvement in the
company's scale of operations and more-than-expected improvement
in profitability, most likely from significant increase in higher
proportion of sales from its own IMFL brand while maintaining
lower than expected gearing over the medium term. Conversely, the
outlook may be revised to 'Negative' in case the turnover or
profitability deteriorate or if PSL undertakes larger-than-
expected debt-funded capex programme, resulting in significant
weakening in its capital structure and financial risk profile, or
if the company provides funding support to its group entities,
resulting in weakening in its liquidity.

                        About Pincon Spirit

PSL (formerly, Saran Viniyog Ltd), is a part of the Pincon group
based in Kolkata (West Bengal) and founded by Mr. Manoranjan Roy.
The company is primarily engaged in trading of IMFL in West
Bengal. It trades in established IMFL brands of companies and
their brands, such as United Breweries Ltd, Seagram India Pvt
Ltd, and Radico Khaitan. PSL also blends and sells IMFL under its
brand, Pincon. The company is listed on the Calcutta Stock
Exchange; however, currently the shares are not traded on the
exchange. PSL's promoters also have interest in other entities,
such as Greenage Food Products Ltd (fast-moving consumer goods),
Bengal Pincon Housing Infrastructure Ltd (housing development),
Pincon Developers Ltd (real estate developer), LRN Finance Ltd
(non-banking financial company), Pincon Public School Ltd
(education), and PPM Creations Pvt Ltd (bonded warehouse).

PSL reported a profit after tax (PAT) of INR 28 million on net
sales of INR 1065 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR 14 million on net
sales of INR 560 million for 2010-11.


PMR FOOD: CRISIL Assigns 'CRISIL D' Rating to INR120MM LT Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facilities of PMR Food Products Pvt Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR125 Million Cash Credit       CRISIL D (Assigned)
   INR120 Million Long-Term Loan    CRISIL D (Assigned)

The rating reflects instances of delay by PMR in servicing its
debt; the delays have been caused by the company's weak liquidity
because of the start-up phase of its operations.

PMR has a weak financial risk profile, marked by high gearing and
weak debt protection metrics. Also, the company is exposed to
risks associated with fluctuations in fruit yields and the
intense industry competition in the fruit-pulp extraction and
packaging business. These rating weaknesses are partially offset
by the extensive entrepreneurial experience of PMR's promoters.

                          About PMR Food

Established in 2009 by Mr. P Muthuvelraj, PMR is based in Chennai
(Tamil Nadu) and is engaged in fruit-pulp extraction and aseptic
packaging of processed fruit products. The company commenced
operations in December 2010, and 2011-12 (refers to financial
year, April 1 to March 31) will be its first full year of
operations. PMR's manufacturing facilities are based in Chittoor
(Andhra Pradesh) and the company has installed capacity to
process 10 tonnes of mangoes per hour. The total cost of setting
up the capacity was INR220 million, which was funded through term
loans of INR150 million, equity of INR10 million, and through
unsecured loans from the promoters. Most of the company's revenue
is expected to be derived from the business of mango pulp
extraction, while the balance is expected to come from the
tomato, guava, and papaya pulp extraction segment. The company's
operations are managed by chairman and managing director Mr. P
Muthuvelraj. The other director is his wife, Mrs. P Sangamitra.

PMR reported a net loss of INR3.5 million on net sales of INR0.65
million for 2010-11, which was its first year of operations.


RAJ HAIR: CRISIL Cuts Rating on INR36MM LT Loan to 'CRISIL BB-'
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility
of Raj Hair International Pvt Ltd to 'CRISIL BB-/Stable' from
'CRISIL BB/Stable', while reaffirming the rating on its short-
term bank facility at 'CRISIL A4+'.

   Facilities                        Ratings
   ----------                        -------
   INR36.0 Million Long-Term Loan    CRISIL BB-/Stable
                                     (Downgraded from
                                     'CRISIL BB/Stable')

   INR240.0 Million Packing Credit   CRISIL A4+ (Reaffirmed)

The downgrade reflects deterioration in Raj Hair's liquidity, due
to decline in its operating margin and high inventory levels. The
company's operating margin declined to an estimated 13.8% in
2010-11 (refers to financial year, April 1 to March 31) from
around 20.7% in 2009-10 due to increasing raw material prices and
pricing pressures. The company also maintains an average
inventory of around six months, leading to stretched working
capital cycle and high reliance on short-term bank borrowings. On
account of the decline in operating margin, the company's
liquidity, which was already stretched due to high inventory
levels, deteriorated further. CRISIL believes that Raj Hair's
liquidity will be under pressure over the medium term, on account
of continued stretch in its working capital cycle and pressure on
its operating margin.

The ratings on the bank facilities of Raj Hair reflect the
company's strong track record in the human hair products industry
and its moderate financial risk profile, marked by moderate
gearing and debt protection metrics. These rating strengths are
partially offset by Raj Hair's large working capital
requirements, dependence on the overseas market, susceptibility
to fluctuations in foreign exchange rates, small scale of
operations, and intense competition in the hair processing
industry.

Outlook: Stable

CRISIL believes that Raj Hair will maintain its established
market position in the hair export business on the back of its
promoter's vast industry experience, over the medium term. The
outlook may be revised to 'Positive' if the company's gross
current assets reduce on account of efficient working capital
management or if there is significant improvement in the
company's scale of operations and profitability, driven by
consolidation of its presence in the hair export business through
value-added products. Conversely, the outlook may be revised to
'Negative' if Raj Hair's revenues and profitability decline
significantly or if its financial risk profile deteriorates
significantly because of large, debt-funded capital expenditure
programme and increased working capital borrowings.

                           About Raj Hair

Raj Hair, formerly known as Raj Impex, was established as a
proprietorship firm by Mr. R Benjamin Cherian in 1980. The firm
initially traded in granites, stones, and ceramics, and later
started processing and conditioning human hair products. In April
2011, Raj Impex was reconstituted as a private limited company
and renamed Raj Hair. The nature of business remains unchanged,
with Raj Hair continuing as a 100% export-oriented unit. It
exports hair products to the US, Europe, and China.

Raj Hair reported a net profit of INR7.99 million on net sales of
INR474 million for 2010-11, against a net profit of INR45 million
on net sales of INR403 million for 2009-10.


SAFARI INDUSTRIES: Fitch Affirms Nat'l Long Term Rating at 'BB-'
----------------------------------------------------------------
Fitch Ratings has affirmed luggage maker Safari Industries India
Limited's National Long-Term rating at 'Fitch BB-(ind)'.  The
Outlook is Stable.

The affirmation reflects SIIL's improved operating performance in
the financial year ended March 2011 (FY11), with revenue growth
of 16.7% yoy to INR657.4 million.  SIIL's soft luggage volume
grew significantly (58% yoy) due to increased demand from Canteen
Stores Department (CSD, 29% of FY11 gross sales), while that of
hard luggage (about 70% of total sales) grew 7% yoy, helped by
additional sales to Samsonite South Asia Pvt. Ltd. of about INR60
million. The company expects sales to CSD to increase and aid
overall revenue growth in FY12.

The ratings are constrained by rising competition in the luggage
market and low brand building efforts by SIIL.  The ratings are
also constrained by SIIL's exposure to commodity price
fluctuation as it uses a certain crude oil derivative as raw
material for hard luggage.  The company also faces currency risks
as its soft luggage products are imported from China.

Fitch notes that SIIL has a strong presence in the lower end of
the branded hard luggage segment in India's smaller cities.
However, as hard luggage sales in India are on a declining trend
due to increased consumer preference for soft luggage, the
management is targeting to increase the share of soft luggage in
total sales to 50% in the near term.

Negative rating guidelines include SIIL's financial leverage
(adjusted debt/EBITDA) exceeding 4x and interest cover falling
below 2x for a sustained period.  Positive rating guidelines
include its adjusted debt/EBITDA falling below 2x and interest
cover rising above 3x for a sustained period.

In FY11, SIIL had total adjusted debt (including bills
discounted) of INR201.4 million (FY10: INR173.6 million), cash
and cash equivalent of INR11.3 million (INR4.3 million), EBITDA
of INR60.6 million (INR55.5 million) and net profit of INR26.5
million (INR19.3 million).  Consequently, the company's financial
leverage increased slightly to 3.3x from 3.1x and its interest
coverage was 2.4x (2.5x).

SIIL was established in 1974 as a partnership firm to manufacture
plastic moulded luggage.  The company was converted to a public
limited company in 1986.  It has an injection-moulding capacity
of 2,385 metric tonnes per annum (mtpa) and a vacuum-formed
plastic articles capacity of 250mtpa.  In September 2011, Sudhir
Jatia, former Managing Director of VIP Industries Ltd, agreed to
acquire a 56.55% stake in SIIL for INR290 million.

Fitch has also affirmed SIIL's bank facilities as follows:

  -- INR186m fund-based bank limits (increased from INR166m):
     'Fitch BB-(ind)'

  -- INR130m non-fund based bank limits (increased from
     INR87.5m): 'Fitch A4+(ind)'


SHLOK MEDIA: CRISIL Assigns 'CRISIL BB' Rating to INR97MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the bank
facilities of Shlok Media Pvt Ltd.

   Facilities                    Ratings
   ----------                    -------
   INR97 Million Term Loan       CRISIL BB/Stable (Assigned)
   INR50 Million Cash Credit     CRISIL BB/Stable (Assigned)

The rating reflects the extensive experience of the promoters in
the industry. This rating strength is partially offset by the
intense competition in the fragmented outdoor advertising space
and susceptibility of its revenue and earning to outdoor
advertising budgets of corporate.

Outlook: Stable

CRISIL believes that Shlok will benefit from the established
presence of its promoters in outdoor media and established
relationships with clients. The outlook may be revised to
'Positive' if there is significant and sustained improvement in
the company's revenues and profitability, while maintaining the
debt protection indicators, thereby resulting in material
improvement in its financial risk profile. Conversely, the
outlook may be revised to 'Negative' if Shlok reports substantial
fall in revenues and margins or its debt protection metrics
deteriorate due to high debt contracted to fund its capital
expenditure programme or working capital requirements.

                         About Shlok Media

Shlok, a company engaged in Out of Home (OOH) media segment was
promoted in 2001 by Mr. Mayur Patel, a Mumbai based entrepreneur.
Shlok is an advertising company and is engaged in the business of
providing advertising through out-of-home media such as
billboards, digital media (television screens in trains), and
street media (tree guards).

Currently, Shlok operates in Mumbai, Ahmedabad (Gujarat), and
Bangalore (Karnataka), and the company has plans to spread its
operations across the country. The company has a dedicated
creative team. The company's registered office is in Andheri,
Mumbai.

Shlok reported a profit after tax (PAT) of INR15.6 million on net
sales of INR391.2 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR9.1 million on net
sales of INR 329.7 million for 2009-10.


SHRI SATGURU: CRISIL Reaffirms 'CRISIL BB-' Term Loan Rating
------------------------------------------------------------
CRISIL's rating on the bank facilities of Shri Satguru Metalloys
Pvt Ltd continues to reflect SSMPL's established brand in the
domestic market for thermo-mechanically treated (TMT) bars and
moderate financial risk profile marked by low net worth, moderate
gearing and debt protection metrics. These rating strengths are
partially offset by the company's small scale of operations and
limited track record in commercial production.

   Facilities                       Ratings
   ----------                       -------
   INR72.5 Mil. Cash Credit Limit   CRISIL BB-/Stable
                                    (Reaffirmed)

   INR54.5 Million Term Loan        CRISIL BB-/Stable
                                    (Reaffirmed)

Outlook: Stable

CRISIL expects SSMPL's business risk profile to improve gradually
over the medium term with the company stabilizing operations of
its manufacturing facility. The outlook may be revised to
'Positive' in case of more-than-expected improvement in the
company's capital structure through equity infusions, or better-
than-expected profitability resulting in higher cash accruals.
Conversely, the outlook may be revised to 'Negative' in case of
decline in the company's profitability or significant
deterioration in its capital structure because of any major debt-
funded capital expenditure or more-than-expected increase in
working capital requirement.

Update

For 2010-11 (refers to financial year, April 1 to March 31),
SSMPL's operating income was INR717 million, a year-on-year
increase of 50%. This was driven by ramp-up in capacity
utilisation to 43% from 32% the previous year. The increase in
operating income was also driven by increase in realisations
because of rise in steel prices during the year. CRISIL believes
that SSMPL will generate operating income of around INR900
million during 2011-12, driven by continued increase in capacity
utilisation. Furthermore, the company's profitability is expected
to remain at the current level, with operating margin expected at
around 5% over the medium term.

CRISIL believes that SSMPL does not have any major capex plan for
the medium term, and its gearing is expected at around 1.8 times
over the medium term. Furthermore, the company's expected cash
accruals of INR18 million in 2011-12 will be sufficient to meet
its term loan obligations of INR 5 million during the year.

                        About Shri Satguru

SSMPL was promoted by the Goel family in April 2008. The company
has six directors: Mr. Deepak Goel, Mr. Anil Goel, Mr. Ram Avtar
Goel, Mr. Dilip Aggarwal, Mr. Manoj Daga, and Mr. Piyush Mittal.
It has set up a TMT bar manufacturing facility with capacity of
60,000 tonnes per annum in Muzaffarnagar (Uttar Pradesh). SSMPL
procures ingots from the local market in Muzaffarnagar, and
markets its products under the Satguru TMT brand. The company's
clientele largely comprises wholesalers/dealers in Uttar Pradesh,
Haryana, and New Delhi.

SSMPL reported a profit after tax (PAT) of INR2.2 million on net
sales of INR716.5 million for 2010-11, against a PAT of INR2.9
million on net sales of INR518.3 billion for 2009-10.


STATE BANK: Moody's Lowers Hybrid Debt Rating to 'Ba3'
------------------------------------------------------
Moody's Investors Service has downgraded the State Bank of
India's bank financial strength rating (BFSR), or stand-alone
rating, to D+ from C-. The revised rating maps to a baseline
credit assessment (BCA) of Baa3.

As a result of the lower BCA, the Hybrid debt rating was
downgraded to Ba3(hyb) from Ba2(hyb).

The revised BFSR carries a stable outlook and the Hybrid rating a
negative outlook.

Meanwhile, other credit ratings are unaffected and are detailed
below.

Ratings Rationale

"The rating action considers SBI's capital situation and
deteriorating asset quality. Moody's expectations that non-
performing assets (NPA) are likely to continue rising in the near
term -- due to higher interest rates and a slower economy -- have
caused us to adopt a negative view on SBI's creditworthiness,"
says Beatrice Woo, a Moody's Vice President and Senior Credit
Officer.

SBI reported a Tier 1 capital ratio of 7.60% as of 30 June 2011.
The level pushes the bank into a lower rating band. In addition,
it was below the 8% Tier 1 ratio that the government of India has
committed to maintaining in public sector banks (PSB) and
substantially lower than those of other C- rated Indian banks.
The latter include banks such as Axis Bank (Ba1; C-/Baa2;
stable), HDFC Bank (Ba1; C-/Baa2; stable), and ICICI Bank (Ba1;
C-/Baa2; stable).

Finally, such a level for its Tier 1 capital ratio provides an
insufficient cushion to support growth and to absorb potentially
higher credit costs from its deteriorating asset quality.

"Notwithstanding Moody's expectations that SBI's capital ratios
will soon be restored through a capital infusion by the
government, SBI's efforts to secure this capital for the better
part of the year demonstrates the bank's limited ability to
manage its capital," says Woo.

"And given that a bank's ability to freely access the capital
markets is an important rating criterion globally, Moody's
therefore believes a lower BFSR for SBI is warranted, especially
as these circumstances are likely to recur," says Woo.

As SBI, similar to other PSB in India, will face cyclical swings
in its Tier 1 ratio over a 3-year period, Moody's has rated it
through the cycle assuming an average Tier 1 capital ratio of
8.5%.

The INR230 billion rights issue that SBI is currently seeking
would raise its Tier 1 ratio to approximately 9.30%. However,
Moody's estimate that capital deployed for loan growth, assuming
15% per annum for the next three fiscal years, will cause the
Tier 1 ratio to fall below 8%, thereby necessitating another
capital exercise.

On the asset quality front, the bank's NPA, as of 30 June 2011,
reached a 3-year high of 3.52% of loans and INR277,680 million on
a absolute basis. For the system, the ratio was 2.3% as of 31
March 2011.

Against a backdrop of a slowing economy and higher interest
rates, the rising trend evident in SBI's new NPA formation rate
since 3QFY11 will continue.

Therefore, Moody's expects SBI's potential credit costs will be
relatively high in the near-term. NPA -- as a percentage of the
bank's Tier 1 capital ratio -- is now about 43%.

In determining SBI's stand-alone BFSR, Moody's assessed the
bank's capital after incorporating expected losses in its risk
assets using scenario analysis. This approach is consistent with
Moody's "Calibrating Bank Ratings in the Context of the Global
Financial Crisis" (February 2009) and the assumptions in "Stress
Testing Indian Banks' Asset Quality" (January 2009).

Under a stress scenario, which assumed a gross NPA ratio of
12.07%, SBI would require INR374.0 billion, or USD8.0 billion, to
replenish its Tier 1 capital ratio to 8%. To put this into
perspective, SBI's ability to absorb losses in a stress situation
is below that of the C- rated Indian banks.

In order for SBI to raise its stand-alone rating, the bank has to
increase and sustain the level of its Tier 1 capital, as well as
contain its asset quality, in line with other C- rated Indian
banks over an extended period.

Finally, the credit ratings incorporate Moody's unchanged
assessment that the probability of systemic support for SBI, if
needed, is very high, and results in a one-notch lift in its GLC
deposit rating of Baa2 from its standalone rating of Baa3.

This view is predicated on SBI's systemic significance in the
domestic banking landscape, and its close relationship with the
government of India, via the latter's 59.4% holding, and as
evidenced by the bank's receipt of repeated capital infusions.

The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007,
Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: A Refined Methodology published in March 2007, and
Moody's Guidelines for Rating Bank Hybrid Securities and
Subordinated Debt published in November 2009.

SBI, headquartered in Mumbai in India, had assets of INR12,237
billion as of March 31, 2011. It is the largest bank by any
measure in the country.

The detailed ratings and actions are shown below. The ratings
carry stable outlooks except where indicated:

The standalone BFSR was lowered to D+ from C- which maps now to a
BCA of Baa3 from Baa2; GLC deposit of Baa2; foreign currency
long-term/short-term deposit of Ba1/Not Prime; foreign currency
long-term/short-term senior debt of Baa2/Prime-2; foreign
currency subordinated, or Lower Tier II debt of Baa3; junior
subordinated, or Upper Tier II debt of Ba1; and the Hybrid Tier 1
debt was lowered to Ba3(hyb) from Ba2(hyb) with a negative
outlook.


VIKAS STRIPS: CRISIL Reaffirms 'CRISIL BB' Cash Credit Rating
-------------------------------------------------------------
CRISIL's rating on the cash credit facility of Vikas Strips Ltd
continues to reflect the established track record of its
promoters in the cold-rolled (CR) strips industry.

   Facilities                       Ratings
   ----------                       -------
   INR170.0 Million Cash Credit     CRISIL BB/Stable (Reaffirmed)

This rating strength is partially offset by VSL's weak financial
risk profile marked by small net worth and weak debt protection
measures and susceptibility to volatility in steel prices.

Outlook: Stable

CRISIL believes that Vikas Strips will maintain its business risk
profile over the medium term on the back of its strong customer
relationships. The outlook may be revised to 'Positive' if VSL
reports substantial improvement its operating profitability and
cash accruals, leading to improvement in its overall financial
risk profile. Conversely, the outlook may be revised to
'Negative' if the company undertakes any large, debt-funded
capital expenditure programme, leading to weakening of its
capital structure, or if it faces significant pressure on its
profitability.

                         About Vikas Strips

Vikas Strips, incorporated in June 2003, manufactures CR strips.
It started commercial operations in November 2005 and has an
installed capacity of 39,000 tonnes per annum at its plant at
Faridabad, Haryana. It sells its products directly in the
domestic market, especially in Haryana, Uttar Pradesh, and Delhi.
Around 60% of VSL's revenues are derived from vendors of original
equipment manufacturers, and the rest from traders.

As per provisional financials, VSL reported a profit after tax
(PAT) of INR3.1 million on net sales of INR1308.5 million for
2010-11 (refers to financial year, April 1 to March 31), against
a PAT of INR2.9 million on net sales of INR880 million for 2009-
10.


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


JCREF CMBS: Deterioration of Property Cues Fitch to Lower Ratings
-----------------------------------------------------------------
Fitch Ratings has downgraded three classes of by JCREF CMBS 2007-
1 GK due December 2015 and affirmed the rest.  The transaction is
a Japanese multi-borrower type CMBS securitisation.  The rating
actions are as listed below:

  -- JPY26.4bn* Class A notes downgraded to 'Asf' from 'AA-sf';
     Outlook Stable

  -- JPY6bn* Class B notes affirmed at 'BBBsf'; Outlook Negative

  -- JPY5.2bn* Class C notes downgraded to 'Bsf' from 'BBsf';
     Outlook Negative

  -- JPY4.6bn* Class D notes downgraded to 'CCCsf' from 'B-sf';
     assigned a Recovery Rating of 'RR4'

  -- JPY2.6bn* Class E notes affirmed at 'CCCsf'; Recovery Rating
     revised to 'RR6' from 'RR5'

*as of Oct. 3, 2011

The downgrade of three class notes reflects the deterioration in
property value assumptions adopted in Fitch's analysis.  Out of
the remaining 40 properties, the analysis focused on 24
properties including those whose performance has significantly
deteriorated over the past 12 months.  Fitch reviewed the
operating performance of the underlying property portfolio,
taking into account the current Japanese commercial real estate
market, trends and prospects.

Fitch's analysis has taken into consideration that the collateral
properties are more likely to be sold under stressed market
conditions as the time to maturity on the remaining underlying
bonds and loans backed by such properties shortens.  The class A
notes are, however, expected to benefit directly from the
sequential principal redemption of recoveries from the defaulted
underlying assets.

The Outlook on the class A is now Stable, reflecting Fitch's
conservative downward revisions of 14% of the total property
values from levels at the previous rating action in October 2010.
The Negative Outlook for classes B and C reflects the general
uncertainty related to the workout process and its outcome as
well as prospects on multiple poorly performing properties within
the transaction.

To date seven out of the nine underlying assets (loans or bonds)
have defaulted, with only one fully recovered through disposal of
multiple properties.

Fitch assigned ratings to this transaction in November 2007.  At
closing, the notes were secured by nine loans or Tokutei Mokuteki
Kaisha bonds collateralised by 56 properties.


L-JAC THREE: S&P Cuts Ratings on 6 Classes of Certificates to 'D'
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on classes
D-1 to I of the L-JAC Three Trust Beneficial Interest transaction
issued in October 2006 to 'D (sf)'. Standard & Poor's
subsequently withdrew its ratings on classes D-1 to I.

L-JAC Three is a multiborrower commercial mortgage-backed
securities (CMBS) transaction that was initially backed by a pool
of seven nonrecourse loans. At this point, only one loan remains,
which originally represented about 30% of the total initial
issuance amount of the trust certificates.

The withdrawal of the ratings on classes D-1 to I was made upon
the request of the issuer. Prior to the request, the relevant
parties to the transaction had agreed on changes in the terms of
the transaction at the end of September, and the legal final
maturity date had been changed to August 2018 from the original
date of April 2013. The ratings on the transaction address the
likelihood of the completion of redemption of the trust
certificates by the transaction's original legal final maturity
date of April 2013. "We therefore lowered the ratings on classes
D-1 to I to 'D (sf)' before withdrawing them, reflecting our view
that the completion of redemption of the class D-1 to I trust
certificates by the original legal final maturity date in April
2013 would be difficult to achieve," S&P said.

"Meanwhile, a part of the nonrecourse loan that currently backs
the trust certificates has been repaid, and we expect classes A
to C to be redeemed fully on the next dividend payment date in
late October 2011," S&P related.

L-JAC Three is a CMBS transaction that was initially backed by a
pool of seven nonrecourse loans that were secured by 17 real
estate properties. The transaction was arranged by Lehman
Brothers Japan Inc., and Capital Servicing Co. Ltd. acts as the
servicer for this transaction.

Ratings Lowered And Withdrawn
L-JAC Three Trust Beneficial Interest*
JPY70.889 billion floating-rate trust certificates
due August 2018

Class  To   From/To   From        Initial issue amount
D-1    NR   D (sf)    CCC (sf)    JPY4.0 bil.
E-1    NR   D (sf)    CCC (sf)    JPY1.4 bil.
F-1    NR   D (sf)    CCC (sf)    JPY1.4 bil.
G-1    NR   D (sf)    CCC (sf)    JPY1.5 bil.
H-1    NR   D (sf)    CCC (sf)    JPY1.0 bil.
I      NR   D (sf)    CCC (sf)    JPY0.583 bil.
*Classes D-2, E-2, F-2, G-2, and H-2 have already been fully
redeemed. "We withdrew our rating on the IO class X-1
certificates in August 2009," S&P said.


PROMISE CO: Moody's Reviews Ratings for Possible Upgrade
--------------------------------------------------------
Moody's Japan K.K. has placed on review for possible upgrade its
B1 long-term issuer and senior unsecured debt ratings on Promise
Co., Ltd.

This rating action follows the announcement entitled 'Notice
Regarding Conclusion of Basic Agreement for Making Promise a
Wholly-owned Subsidiary of Sumitomo Mitsui Financial Group' by
Promise, Sumitomo Mitsui Financial Group and Sumitomo Mitsui
Banking Corporation on Sept. 30, 2011.

Rating Rationale

The rating review for possible upgrade reflects Moody's views on
the effects on Promise of the announcement by Promise, SMFG and
SMBC.

According to the announcement, (1) SMFG will make Promise its
wholly owned subsidiary through a take-over bid and succeeding
events by April, 2012, and (2) SMFG or SMBC will subscribe to
common shares newly issued by Promise in December 2011.

In Moody's view, despite a persistent deterioration in the
operating environment for the consumer finance industry and
prolonged negative pressure on Promise's financial fundamentals
and franchise, SMFG's decision to turning it into a wholly owned
subsidiary is credit positive for Promise as it is evidence of
the parent bank's support for its affiliated finance company in
terms of both capital and liquidity.

At the same time, Moody's notes that there are still significant
uncertainties regarding claims for overpaid interest, but Promise
will have a sufficient loss reserve for the claims that could
arise in FY2012 because of additional loss provisions made for
that year.

In its review, Moody's will reassess how Promise will be
integrated into SMFG's strategy, as well as the direct or
indirect impact of the bank's acquisition of Promise on its
financial fundamental. Moody's will also review the current
situation and trends for overpaid interest in the consumer
finance industry.

A stabilization of the situation is key to possible improvements
in its standalone credit strength.

Moody's notes that on August 16, 2011 it published a request for
comment on "Proposal to Update: Finance Company Global Rating
Methodology". It is likely that the review of Promise's ratings
will take into account eventual revisions to the finance company
methodology.

The principal methodology used in this rating were "Analyzing the
Credit Risks of Finance Companies: Rating Methodology", published
on September 30, 2010.

Promise Co. Ltd., headquartered in Tokyo, is a major Japanese
consumer finance company, with consolidated assets of around
JPY0.9 trillion as of 30 June, 2011.


PROMISE CO: S&P Puts BB Counterparty Credit Rating on Watch Pos.
----------------------------------------------------------------
Standard & Poor's Ratings Services placed on CreditWatch with
positive implications its 'BB' long-term counterparty rating and
its 'BB' long-term issue ratings on Promise Co. Ltd. At the same
time, Standard & Poor's affirmed its 'B' short-term rating on the
company. The CreditWatch placement follows the announcement on
Sept. 30 by Sumitomo Mitsui Financial Group Inc. (SMFG;
A/Stable/A-1) that it intends increase its stake in Promise to
100% from the current 22% through an open offer bid, and inject
capital amounting to JPY120 billion, which is more than
70% of Promise's net assets as of June 2011, into the company.

The 'BB' long-term counterparty credit rating on Promise
incorporates a two-notch uplift based on possible extraordinary
support from SMFG, the parent banking group. The support from
SMFG is likely to underpin Promise's funding and capitalization,
which is weakening due to an expected net loss of JPY195 billion,
according to the company's projection for fiscal 2011 (ending
March 2012) -- due to large provisioning for interest refunds.
"However, we expect Promise's stand-alone performance to remain
weak in the next few years due to high, albeit subsiding,
interest refund claims, and a shrinking consumer loan market
under tightened regulations. In resolving the CreditWatch,
Standard & Poor's intends to examine Promise's position within
the SMFG group as well as the company's stand-alone credit
profile (SACP), which is currently 'b+'," S&P related.

The acquisition will have no immediate impact on the ratings on
SMFG or the group companies. Sumitomo Mitsui Banking Corp.
(A+/Stable/A-1) has been the largest shareholder in Promise since
2004, and has forwarded management, including Promise's CEO, to
the company. The SMFG group has considered Promise a
strategically important subsidiary, and Standard & Poor's has
incorporated risk arising from the subsidiary into the rating on
the group. The consolidation will increase SMFG's commitment and
risk exposure to Promise to a certain extent, but within the
current rating level. "We expect the acquisition to generate a
certain amount of goodwill and the consolidation of the risk
asset should push down SMFG's Tier 1 capital ratio as well as its
risk adjusted capital (RAC) ratio. However, we expect the RAC
ratio to remain above 5.5%, which is in line with SMFG's current
SACP," S&P stated.


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


ALLIED FARMERS: Settles Dispute With Hanover Over NZ$5MM Payment
----------------------------------------------------------------
Allied Farmers Limited delivered Thursday its 2011 Annual Report
to the NZX, which includes its audited financial statements for
the year ended June 30, 2011.

ALF advises that the operating loss after tax of $41.0 million is
a reduced loss of NZ$2 million from the unaudited operating loss
after tax of NZ$43.0 million disclosed in the unaudited
preliminary financial statements issued on Aug. 29, 2011.  This
difference is the net result of a number of events that have
occurred since Aug. 29, 2011, but are required to be included in
the June 30, 2011, financial statement.  This includes updated
assessments of the carrying value of some assets based on
information available to the Board up to this time, and the
settlement of the Hanover litigation.

"Now that the June 30, 2011, audited financial statements have
been completed, the holders of the Bonus Securities issued to ALF
shareholders prior to the Hanover transaction will now be
recognized as holding 118,097,900 additional ordinary shares, and
there is an obligation to issue 977,342,847 additional shares
pursuant to the terms of the price adjustment right (PAR) that
was part of the share placement that was completed in August
2010. The placement was part of a planned two-stage capital
raising but the second stage of that was abandoned as a
consequence of the appointment of receivers to Allied Nationwide
Finance Limited. As the placement was made under the terms of NZX
Listing Rule 7.3.5, the total number of shares that can be issued
at this time is equivalent to 20 percent of the shares on issue
and a result, only 390,578,972 of the additional shares required
to be issued under the PAR terms can be issued at this time.
Shareholders will be asked to approve the issue of the balance of
these entitlements, being 586,763,875 shares, at the Nov. 29,
2011, Annual Meeting. Full details of these calculations will be
provided in the Notice of Meeting," Allied said.

                         Hanover Settlement

Allied also said it has reached a settlement agreement with
Hanover in relation to a dispute over whether ALF was entitled to
cancel a contractual obligation to pay NZ$5 million to Hanover.
The obligation arose in relation to the sale of Hanover's assets
to ALF in December 2009.

ALF wish to recognize the positive approach Hanover has taken in
reaching this settlement and the benefit that such a resolution
will have for the Company and its shareholders. In particular,
ALF is pleased that Hanover has been willing to forego its
entitlement to the NZ$5 million payment that was originally
provided for and to enter into these settlement arrangements
prior to ALF finalizing its audited June 30, 2011, Financial
Statements.  Because of this, ALF has been able to increase the
net value of the ex-Hanover assets for the benefit of ex-Hanover
investors in calculating the rights attached to the Bonus
Securities. The resulting increase in value of the Hanover
transaction has reduced the number of ordinary shares that the
holders of Bonus Securities are to be recognized as holding.

ALF acknowledges that it has made various adverse statements
about Hanover's conduct and processes, including some allegations
that Hanover disposed of a number of its assets on uncommercial
terms and inappropriately released personal guarantees. In
arriving at its decision to withdraw its allegations and settle,
ALF has accepted that these statements were without merit and
unproven. In view of this decision ALF has agreed to take no
further action in relation to these claims.

The settlement reached with Hanover involves a contribution
towards legal and settlement costs incurred by Hanover and no
further residual obligations between the parties. As these terms
are confidential, neither Hanover nor ALF will be making further
comment in relation to this matter.

The Board is pleased that Hanover has been fully co-operative in
the resolution of this matter so that ALF can now concentrate its
efforts in rebuilding the financial performance of the Company
for the benefit of all shareholders.

                           Capital Notes

On Aug. 29, 2011, ALF announced that, as a consequence of the
asset write downs as at June 30, 2011, the Board had identified a
short term breach of the Capital Notes debt to equity ratio
covenant, and that this was remedied on July 22, 2011. Due to the
further write down in asset values, the Board has identified that
ALF remains in breach of the ratio. The only consequence of the
breach is an additional 2 percent interest rate payable to the
capital note holders for the period of the breach.

The Board has been very aware of the position of holders of the
Capital Notes that are due to mature on Nov. 15, 2011.

As part of the consideration of the options available, the
Company was obliged to enter into dialogue with the Trustee of
the Capital Notes, and in addition the Company opted to ask the
Trustee to consider specific requests. These requests would have,
if agreed by the Trustee, provided choices to the holders of the
Capital Notes.

"Unfortunately agreement with the Trustee has not been able to be
concluded, leaving the Board with conversion of the Capital Notes
into ordinary shares as the only feasible or commercial option
(pursuant to conditions 6.3 and 6.14 of the Capital Notes Trust
Deed). The conversion to shares, the number of which is to be
calculated in accordance with the conversion formula contained in
the Trust Deed, will therefore occur on Nov. 15, 2011. The
Company will be writing to all capital note holders prior to
conversion in respect to this decision."

                        About Allied Farmers

Based in New Zealand, Allied Farmers Limited (NZE:ALF) --
http://www.alliedfarmers.co.nz/-- is engaged in livestock, real
estate, finance, wool brokering and manufacturing (meat and
timber).  Rural Services comprise livestock, merchandise and real
estate operations.  The Company's Rural Services activities are
carried out in Taranaki, Waikato, King Country and Manawatu.  Its
Financial Services activities are carried out by Allied
Nationwide Finance Limited in Auckland, Wellington and
Christchurch.  Timber processing comprises the Company's
discontinued sawmilling operations.  On June 29, 2007, Allied
Nationwide Finance Limited, Nationwide Finance Limited and Allied
Prime Finance Limited were amalgamated, with Nationwide Finance
Limited being the continuing entity.  Nationwide Finance Limited
subsequently changed its name to Allied Nationwide Finance
Limited.

As reported in the Troubled Company Reporter-Asia Pacific on
June 13, 2011, BusinessDesk said Allied Farmers Limited has
gained a nine-month reprieve on repaying a NZ$7.5 million loan to
the receivers of its failed Allied Nationwide Finance unit that
was due on July 1.  Allied Farmers entered into two loan
agreements with Allied Nationwide last year, converting its
existing debt factoring, credit enhancement and related party
loan arrangements.  All of Allied Farmers' assets are secured by
a general deed covering the loans.


AORANGI SECURITIES: Cash on Hand Doesn't exist, Managers Say
------------------------------------------------------------
Matt Nippert at The National Business Review reports that
statutory managers appointed to the affairs of the late Allan
Hubbard said non-existent cash is part of their claim to the
courts that Hubbard Management Funds operated as a pool.

Statutory mangers Grant Thornton were appointed to Aorangi
Securities and HMF on June 20, 2010.

In a letter to investors following the death of Mr. Hubbard, NBR
relates, statutory managers said market fluctuations had reduced
the value of HMF to NZ$46 million, from the NZ$49.3 million
recorded at their last report.

The report notes that confusion has reigned over whether HMF
operated as individual portfolios or a pool, and part of the
claim by statutory managers the fund was the latter concerned how
to deal with statements given by Mr. Hubbard to investors saying
their accounts had significant amounts of cash.

"In the past, it seems Mr. Hubbard used the cash labeled on
statements as 'cash on hand' or 'uninvested funds' to fund other
share purchases.  We are told he had a view that money in the
bank was not working so he invested it," the letter said.

                     About Aorangi Securities

Aorangi Securities Ltd was incorporated in 1974 and is solely
controlled by the Hubbards.

On June 20, 2010, Aorangi Securities and seven charitable trusts
were placed into statutory management, and Allan and Jean Hubbard
were also placed into statutory management as "associated
persons" of those entities.  The seven charitable trusts included
in the statutory management are Te Tua, Otipua, Oxford, Regent,
Morgan, Benmore and Wai-iti.  Trevor Thornton and Richard Simpson
of Grant Thornton were appointed as statutory managers.

The Temple Bar Family Trust and Barns Charitable Trust were also
put into statutory management in September 2010 on recommendation
from the Securities Commission.  Hubbard Churcher Trust
Management and Forresters Nominees Company were also added to the
list of businesses under management by Trevor Thorton, Richard
Simpson and Graeme McGlinn on September 20, 2010.

The Troubled Company Reporter-Asia Pacific reported on May 12,
2011, that the Hubbards filed judicial review proceedings at the
Timaru High Court challenging the decision to place them into
statutory management and seeking orders that they be removed from
statutory management.

On June 20, 2011, the Serious Fraud Office laid 50 charges under
Crimes Act against Allan Hubbard in relation to its investigation
into the affairs of Aorangi Securities Ltd; Hubbard Management
Funds; and ASL directors Allan and Margaret (Jean) Hubbard.

The SFO has dropped the fraud charges against Allan Hubbard
following Mr. Hubbard's death on September 2.


CENTURY CITY: Receivers Appointed to Two More Serepisos Firms
-------------------------------------------------------------
BusinessDesk reports that receivers have been appointed to two
more companies in Wellington property developer Terry Serepisos'
empire.

BusinessDesk, citing documents filed to the Companies Office,
says Grant Thornton's David Ruscoe and Richard Simpson were
appointed receivers of Century City Trust Ltd. and Century City
Holdings Ltd. on September 30.

According to the report, Century City Trust was the entity
Mr. Serepisos flagged would receive two loans worth US$20 million
from a Hong Kong merchant bank in his final, and unsuccessful,
bid to avert bankruptcy last week.

BusinessDesk notes that the latest receivership means three
different firms are overseeing the wind-down of the property
empire so far.  PricewaterhouseCoopers' John Fisk and Richard
Longman are receivers for Maisno Property Holdings and 79 Manners
St Ltd.

Deloitte's Barry Jordan and Richard Vance were appointed
receivers and managers of Century City Investments Ltd., whose
biggest asset was Serepisos' ASB Tower headquarters in
Wellington.

BusinessDesk discloses that Mr. Serepisos was declared bankrupt
in the High Court in Wellington after he failed to convince
Associate Judge David Gendall to give him a few more days to try
to secure a US$20 million facility from a Hong Kong-based
merchant bank. The loan, if it came through, would go to an
entity that wasn't a party to Serepisos' bankruptcy and
liquidation proceedings, and left open the possibility to annul
the order.

In August, the report recalls, Mr. Serepisos was granted
adjournment to put forward a proposal to creditors that would
sell down his property portfolio in an orderly fashion, in a bid
to meet the entirety of the $204 million owed to his lenders,
which was later scotched when the property developer sought new
funding.

The portfolio, made up of some 150 residential properties and
more than six commercial buildings, was valued at $232.5 million.

Mr. Serepisos has also relinquished his licence for the
Wellington Phoenix Football club in Australia's A-League, which
was taken over by a consortium of Wellington businessmen.

According to The Dominion Post, Mr. Serepisos has been battling
financial issues within his Century City group of companies for
more than a year during which time he has faced a number of court
actions.  They included moves in November to liquidate five
Century City companies over unpaid tax and the Accident
Compensation Corporation of nearly NZ$4 million.  That amount was
repaid in a deal that subsequently lead to Mr. Serepisos losing
ownership of his flagship Century City Hotel in Tory St., The
Dominion Post noted.

The Serepisos companies under threat are Century City Hunter
Street, Century City Investments, Century City Developments,
Century City Management, and Century City Football, which
previously owned the Wellington Phoenix football team.


HIBERNIAN CREDIT: Faces Liquidation as Rescue Plan Rejected
-----------------------------------------------------------
BusinessDay.co.nz reports that Hibernian Credit Union is being
pushed into liquidation by the Ministry of Economic Development
which rejected a rescue plan backed by its members and
supervisors.

BusinessDay.co.nz relates that Hibernian Credit Union depositors
-- mainly elderly catholics -- already face losing more than half
of their investment as a result of fraud committed by a former
employee, and now its board of directors fear more will be lost
through the cost of liquidation.

Last month, the report recalls, Susan Terri Hagai pleaded guilty
to one charge of obtaining NZ$1,242,750 by deception from the
Hibernian Catholic Benefit Society between April 2004 and
December last year. The former accounts manager will be sentenced
at the end of the month, the report relays.

BusinessDay.co.nz relates that while the board of the credit
union said its financial position was "perilous" it developed a
plan to merge it with the larger, related, but separate, benefit
society, in a bid to protect the remaining assets without the
cost of liquidation.

At its latest annual meeting, the report notes, members of both
the credit union and the benefit society unanimously voted for
the merger.  According to the report, Prudential, which acts as
Hibernian's statutory supervisors, also made appeals to the
Registrar of Friendly Societies -- part of the ministry -- in
support of the plan.

However, lawyers at the registrar have rejected the merger and
told the Hibernian Society it will apply to the High Court to
have it liquidated, reports BusinessDay.co.nz.

According to the report, Hibernian president Mike McBride said
there was widespread support for the plan, but it appeared that
none of this had been taken into account.

"We're extremely disappointed because it means that the members'
funds are going to be further eroded by the cost of the
liquidation," BusinessDay.co.nz quotes Mr. McBride as saying.
"Our object right from the start was to preserve what precious
funds were left."

Founded in 1869, The Hibernian Catholic Benefit Society is a
friendly society which offers financial services to about 2,800
members, of which about 20% to 30% are also with the credit
union.


NLG INSURANCE: Fitch Affirms Insurer Financial Strength at 'B'
--------------------------------------------------------------
Fitch Ratings has affirmed NLG Insurance Limited's Insurer
Financial Strength (IFS) Rating at 'B'.  The Rating Outlook is
Stable.

The rating continues to reflect NLGI's weak financial position
and dependence on support from the retailing subsidiary of the
group, Noel Leeming Group Limited.  However, since NLGI was
placed into run-off from Oct. 31, 2008, the run-off has proceeded
in line with Fitch's expectations and NLGI continues to move
rapidly off risk.

Moreover, NLGI's technical liabilities which include the unearned
premiums reserve, outstanding claims reserve and unexpired risk
reserve, had declined to NZD342,000 at March 31, 2011, from
NZD903,000 at March 31, 2010, and are now well covered by the
NZD0.5 million held by the public trustee to support policyholder
liabilities.

As NLGI is in run-off, the rating is unlikely to be upgraded.
Key rating triggers that could result in a downgrade include
deterioration in the financial position of NLGI or the failure of
NLG to provide support to NLGI during the run-off period.
However, Fitch considers these prospects as remote, as reflected
in the Stable Outlook.


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


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

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

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

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

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

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

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

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


===============
X X X X X X X X
===============


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------

                                                          Total
                                        Total      Shareholders
                                       Assets            Equity
  Company                Ticker       (US$MM)           (US$MM)
  -------                ------        ------      ------------


AUSTRALIA

ARTURUS CAPITAL           AKW            12.27          -0.43
ASTON RESOURCES           AZT           469.54          -7.49
AUSTAR UNITED             AUN           734.96        -173.09
AUSTRALIAN ZI-PP          AZCCA          77.74          -2.57
AUSTRALIAN ZIRC           AZC            77.74          -2.57
AUTRON CORP LTD           AAT            32.50         -13.46
AUTRON CORP LTD           AAT            32.50         -13.46
BCD RESOURCES-PP          BCOCC          27.90         -79.33
BECTON PROPERTY           BEC           369.83         -26.80
BIRON APPAREL LT          BIC            19.71          -2.22
BREMER PARK LTD           BPK            16.00          -6.90
CENTRO PROPERTIE          CNP         15,483.4        -349.73
MAC COMM INFR-CD          MCGCD       8,104.42        -103.34
MACQUARIE ATLAS           MQA         1,894.75        -230.50
MAVERICK DRILLIN          MAD            24.66          -1.30
MISSION NEWENER           MBT            20.38         -44.05
NATURAL FUEL LTD          NFL            19.38        -121.51
ORION GOLD NL             ORN            11.60         -10.91
POWERLAN LTD              PWR            28.30          -3.64
REDBANK ENERGY L          AEJ         3,564.36        -383.39
RIVERCITY MOTORW          RCY           386.88        -809.14
SCIGEN LTD-CUFS           SIE            68.70         -42.35
SHELL VILLAGES A          SVC            13.47          -1.66
STIRLING RESOURC          SRE            31.19          -0.62
VIEW RESOURCES L          VRE            11.81         -37.51


CHINA

BAOCHENG INVESTM          600892         36.34          -4.47
CHENGDE DALU -B           200160         31.82          -4.49
CHENGDU UNION-A           693            32.68         -15.13
CHINA FASHION             CFH            10.11          -0.76
CHINA KEJIAN-A            35             95.65        -187.91
CONTEL CORP LTD           CTEL           59.32         -45.72
CONTEL CORP LTD           CTEL1          59.32         -45.72
DONGXIN ELECTR-A          600691         14.31         -22.80
GUANGDONG ORIE-A          600988         15.24          -3.98
GUANGDONG SUNR-A          30            111.22           0.00
GUANGDONG SUNR-B          200030        111.22           0.00
GUANGXIA YINCH-A          557            19.25         -44.22
HEBEI BAOSHUO -A          600155        129.70        -408.35
HEBEI JINNIU C-A          600722        249.41         -53.61
HUASU HOLDINGS-A          509            87.92          -9.52
HUNAN ANPLAS CO           156            43.92         -35.46
JILIN PHARMACE-A          545            32.35          -8.44
JINCHENG PAPER-A          820           206.33        -122.34
MUDAN AUTOMOBI-H          8188           24.73          -3.40
NINGBO YIDONG-H           8249           18.29         -53.42
QINGDAO YELLOW            600579        222.76          -9.10
SHANG HONGSHENG           600817         15.94        -291.38
SHANGHAI WORLDBE          600757         14.70          -0.04
SHANXI GUANLU-A           831           331.55          -0.17
SHANXI LEAD IN-A          673            20.47          -1.89
SHENZ CHINA BI-A          17             20.97        -266.50
SHENZ CHINA BI-B          200017         20.97        -266.50
SHENZ INTL ENT-A          56            233.81         -22.28
SHENZ INTL ENT-B          200056        233.81         -22.28
SHENZHEN DAWNC-A          863            26.10        -161.49
SHENZHEN KONDA-A          48            119.65          -7.72
SHIJIAZHUANG D-A          958           212.59         -80.91
SICHUAN DIRECT-A          757            95.94        -166.82
SICHUAN GOLDEN            600678        207.17         -92.10
TAIYUAN TIANLO-A          600234         65.74         -21.06
TIANJIN MARINE            600751        114.38         -61.31
TIANJIN MARINE-B          900938        114.38         -61.31
TIBET SUMMIT I-A          600338         79.44          -4.50
TOPSUN SCIENCE-A          600771        146.23         -99.32
WINOWNER GROUP C          600681         21.76         -55.00
WUHAN BOILER-B            200770        304.50        -154.96
WUHAN GUOYAO-A            600421         11.15         -27.68
WUHAN LINUO SOLA          600885        110.61          -2.84
XIAMEN OVERSEA-A          600870        243.85        -138.59
YANBIAN SHIXIA-A          600462        201.95         -14.07
YANTAI YUANCHE-A          600766         65.62          -6.34
YUEYANG HENGLI-A          622            39.37         -20.80
YUNNAN MALONG-A           600792        145.42         -68.19


HONG KONG

ASIA TELEMEDIA L          376            15.67         -14.24
ASIAN CAPITAL RE          8025           10.89         -11.02
BEP INTL HLDGS L          2326           10.32          -1.83
BUILDMORE INTL            108            16.19         -50.25
CHINA E-LEARNING          8055           19.66          -1.27
CHINA HEALTHCARE          673            44.13          -4.49
CHINA OCEAN SHIP          651           454.18         -13.94
CHINA PACKAGING           572            18.18         -16.83
CMMB VISION HOLD          471            37.41         -10.99
EGANAGOLDPFEIL            48            557.89        -132.86
FU JI FOOD & CAT          1175           73.43        -389.20
FULBOND HLDGS             1041          117.50          -6.87
GUOJIN RESOURCES          630            18.21         -17.00
LUNG CHEONG INTL          348            62.04          -0.37
MELCOLOT LTD              8198           56.90         -46.99
MITSUMARU EAST K          2358           30.04         -15.37
PALADIN LTD               495           149.78         -11.62
PCCW LTD                  8           6,192.51         -78.22
PROVIEW INTL HLD          334           314.87        -294.85
SINO RESOURCES G          223            15.55         -33.59
SMART UNION GP            2700           32.14         -40.01
SURFACE MOUNT             SMT            95.95          -2.48
TACK HSIN HLDG            611            53.95         -88.74


INDONESIA

ARPENI PRATAMA            APOL          613.56        -124.15
ASIA PACIFIC              POLY          471.38        -869.26
ERATEX DJAJA              ERTX           13.48         -24.83
HANSON INTERNATI          MYRX           35.46          -9.01
HANSON INT-PREF           MYRXP          35.46          -9.01
JAKARTA KYOEI ST          JKSW           33.33         -45.06
MITRA INTERNATIO          MIRA        1,070.80        -443.66
MITRA RAJASA-RTS          MIRA-R2     1,070.80        -443.66
MULIA INDUSTRIND          MLIA          524.73         -39.06
PANASIA FILAMENT          PAFI           37.96         -15.94
PANCA WIRATAMA            PWSI           31.51         -39.11
PRIMARINDO ASIA           BIMA           10.37         -21.92
SURABAYA AGUNG            SAIP          248.21         -94.27
TOKO GUNUNG AGUN          TKGA           13.37          -0.60
UNITEX TBK                UNTX           18.22         -17.81


INDIA

ALPS INDUS LTD            ALPI          292.76         -12.44
AMIT SPINNING             AMSP           20.43          -1.96
ARTSON ENGR               ART            23.87          -0.60
ASHAPURA MINECHE          ASMN          191.87         -68.03
ASHIMA LTD                ASHM           63.23         -48.94
ATV PROJECTS              ATV            60.46         -55.04
BALAJI DISTILLER          BLD            66.32         -25.40
BELLARY STEELS            BSAL          451.68        -108.50
BHAGHEERATHA ENG          BGEL           22.65         -28.20
CAMBRIDGE SOLUTI          CAMB          149.58         -56.66
CANTABIL RETAIL           CANT           55.23          -8.54
CELEBRITY FASHIO          CFLI           36.61          -6.76
CFL CAPITAL FIN           CEATF          12.36         -49.56
COMPUTERSKILL             CPS            14.90          -7.56
CORE HEALTHCARE           CPAR          185.36        -241.91
DCM FINANCIAL SE          DCMFS          17.10          -9.46
DFL INFRASTRUCTU          DLFI           42.74          -6.49
DIGJAM LTD                DGJM           99.41         -22.59
DUNCANS INDUS             DAI           133.65        -205.38
FIBERWEB INDIA            FWB            12.23         -16.21
GANESH BENZOPLST          GBP            48.95         -22.44
GEM SPINNERS LTD          GEMS           14.58          -1.16
GLOBAL BOARDS             GLB            14.98          -7.51
GSL INDIA LTD             GSL            29.86         -42.42
HARYANA STEEL             HYSA           10.83          -5.91
HENKEL INDIA LTD          HNKL          102.05         -10.24
HIMACHAL FUTURIS          HMFC          406.63        -210.98
HINDUSTAN PHOTO           HPHT           74.44      -1,519.11
HINDUSTAN SYNTEX          HSYN           15.20          -3.81
HMT LTD                   HMT           140.14        -493.73
ICDS                      ICDS           13.30          -6.17
INTEGRAT FINANCE          IFC            49.83         -51.32
JAGSON AIRLINES           JGA            12.31          -0.25
JCT ELECTRONICS           JCTE          122.54         -50.00
JD ORGOCHEM LTD           JDO            10.46          -1.60
JENSON & NIC LTD          JN             18.05         -86.40
JIK INDUS LTD             KFS            20.63          -5.62
JOG ENGINEERING           VMJ            50.08         -10.08
KALYANPUR CEMENT          KCEM           33.31         -30.53
KERALA AYURVEDA           KRAP           13.99          -1.18
KIDUJA INDIA              KDJ            17.15          -2.28
KINGFISHER AIR            KAIR        1,883.62        -661.89
KINGFISHER A-SLB          KAIR/S      1,883.62        -661.89
KITPLY INDS LTD           KIT            37.68         -45.35
LLOYDS FINANCE            LYDF           21.65         -11.39
LLOYDS STEEL IND          LYDS          510.00         -48.98
LML LTD                   LML            65.26         -56.77
MADRAS FERTILIZE          MDF           143.14         -99.28
MAHA RASHTRA APE          MHAC           24.13         -14.27
MARKSANS PHARMA           MRKS          110.15         -14.04
MILLENNIUM BEER           MLB            52.23          -5.22
MILTON PLASTICS           MILT           18.65         -52.29
MODERN DAIRIES            MRD            38.41          -0.45
MTZ POLYFILMS LT          TBE            31.94          -2.57
NATH PULP & PAP           NPPM           14.50          -0.63
NICCO CORP LTD            NICC           75.56          -6.49
NICCO UCO ALLIAN          NICU           32.23         -71.91
NK INDUS LTD              NKI           141.35          -7.71
NUCHEM LTD                NUC            24.72          -1.60
ORIENT PRESS LTD          OP             16.70          -0.09
PANCHMAHAL STEEL          PMS            51.02          -0.33
PARASRAMPUR SYN           PPS            99.06        -307.14
PAREKH PLATINUM           PKPL           61.08         -88.85
PIRAMAL LIFE SC           PLSL           51.20         -64.85
QUADRANT TELEVEN          QDTV          188.57        -116.81
RAJ AGRO MILLS            RAM            10.21          -0.61
RATHI ISPAT LTD           RTIS           44.56          -3.93
REMI METALS GUJA          RMM           102.64          -5.29
RENOWNED AUTO PR          RAP            14.12          -1.25
ROLLATAINERS LTD          RLT            22.97         -22.24
ROYAL CUSHION             RCVP           18.88         -81.42
SADHANA NITRO             SNC            18.21          -0.73
SAURASHTRA CEMEN          SRC           106.01          -2.81
SCOOTERS INDIA            SCTR           18.63          -6.88
SEN PET INDIA LT          SPEN           11.58         -26.67
SHAH ALLOYS LTD           SA            212.81          -9.74
SHALIMAR WIRES            SWRI           24.58         -39.14
SHAMKEN COTSYN            SHC            23.13          -6.17
SHAMKEN MULTIFAB          SHM            60.55         -13.26
SHAMKEN SPINNERS          SSP            42.18         -16.76
SHREE GANESH FOR          SGFO           44.50          -2.89
SHREE RAMA MULTI          SRMT           64.03         -44.99
SIDDHARTHA TUBES          SDT            76.98         -12.45
SOUTHERN PETROCH          SPET        1,584.27          -4.80
SQL STAR INTL             SQL            11.69          -1.14
STI INDIA LTD             STIB           35.39          -0.54
STL GLOBAL LTD            SHGL           45.61         -10.59
SUPER FORGINGS            SFS            17.83          -6.37
TATA TELESERVICE          TTLS        1,311.30        -138.25
TATA TELE-SLB             TTLS/S      1,311.30        -138.25
TRIUMPH INTL              OXIF           58.46         -14.18
TRIVENI GLASS             TRSG           24.55          -8.57
TUTICORIN ALKALI          TACF           14.15         -11.20
UNIFLEX CABLES            UFC            47.46          -7.49
UNIFLEX CABLES            UFCZ           47.46          -7.49
UNIMERS INDIA LT          HDU            18.08          -5.86
UNITED BREWERIES          UB          2,652.00        -242.53
UNIWORTH LTD              WW            168.36        -155.74
UNIWORTH TEXTILE          FBW            20.57         -37.60
USHA INDIA LTD            USHA           12.06         -54.51
VANASTHALI TEXT           VTI            25.92          -0.15
VENTURA TEXTILES          VRTL           14.33          -1.91
VENUS SUGAR LTD           VS             11.06          -1.08


JAPAN

ARRK CORP                 7873        1,221.45         -37.80
C&I HOLDINGS              9609           25.89         -43.12
CROWD GATE CO             2140           11.63          -4.29
KANMONKAI CO LTD          3372           68.26          -2.44
KFE JAPAN CO LTD          3061           17.86          -2.27
L CREATE CO LTD           3247           42.34          -9.15
NIS GROUP CO LTD          8571          477.70         -75.44
PROPERST CO LTD           3236          305.90        -330.20
S-POOL INC                2471           18.11          -0.41
STRAWBERRY CORP           3429           14.17          -4.48
TOYO KNIFE CO             5964           74.73          -5.55


KOREA

DAISHIN INFO              20180         740.50        -158.45
HANIL CONSTRUCT           6440          880.70         -22.42
HYUNDAI BNG STEE          4560          476.66         -70.65
HYUNDAI BNG STEE          4565          476.66         -70.65
KUKDONG CORP              5320           53.07          -1.85
ORICOM INC                10470          82.65         -40.04
PLA CO LTD                82390          14.95         -21.43
SEOUL MUTL SAVIN          16560         874.79         -34.13
SUNGJEE CONSTRUC          5980          114.91         -83.19
TONG YANG MAGIC           23020         355.15         -25.77
YOUILENSYS CORP           38720         166.70         -12.34


MALAYSIA

BANENG HOLDINGS           BANE           40.49         -17.14
HAISAN RESOURCES          HRB            67.05          -0.92
HO HUP CONSTR CO          HO             70.66          -9.24
LUSTER INDUSTRIE          LSTI           19.28          -7.15
MITHRIL BHD               MITH           29.79          -0.75
NGIU KEE CO-BHD           NKC            14.19         -12.76
TRACOMA HOLDINGS          TRAH           60.31         -26.28
VTI VINTAGE BHD           VTI            17.97          -3.68


PHILIPPINES

CYBER BAY CORP            CYBR           14.14         -94.36
FIL ESTATE CORP           FC             40.90         -15.77
FILSYN CORP A             FYN            23.81         -11.69
FILSYN CORP. B            FYNB           23.81         -11.69
GOTESCO LAND-A            GO             21.76         -19.21
GOTESCO LAND-B            GOB            21.76         -19.21
PICOP RESOURCES           PCP           105.66         -23.33
STENIEL MFG               STN            17.61         -11.14
UNIWIDE HOLDINGS          UW             50.36         -57.19
VICTORIAS MILL            VMC           164.26         -18.20


SINGAPORE

ADV SYSTEMS AUTO          ASA            18.93         -11.69
ADVANCE SCT LTD           ASCT           25.29         -10.05
HL GLOBAL ENTERP          HLGE           93.40         -15.38
LINDETEVES-JACOB          LJ             20.64          -6.07
NEW LAKESIDE              NLH            19.34          -5.25
SUNMOON FOOD COM          SMOON          17.93         -15.74
TT INTERNATIONAL          TTI           249.17         -73.30


THAILAND

ABICO HLDGS-F             ABICO/F        15.28          -4.40
ABICO HOLDINGS            ABICO          15.28          -4.40
ABICO HOLD-NVDR           ABICO-R        15.28          -4.40
ASCON CONSTR-NVD          ASCON-R        59.78          -3.37
ASCON CONSTRUCT           ASCON          59.78          -3.37
ASCON CONSTRU-FO          ASCON/F        59.78          -3.37
BANGKOK RUBBER            BRC            91.32        -113.78
BANGKOK RUBBER-F          BRC/F          91.32        -113.78
BANGKOK RUB-NVDR          BRC-R          91.32        -113.78
CALIFORNIA W-NVD          CAWOW-R        33.30         -10.09
CALIFORNIA WO-FO          CAWOW/F        33.30         -10.09
CALIFORNIA WOW X          CAWOW          33.30         -10.09
CIRCUIT ELEC PCL          CIRKIT         16.79         -96.30
CIRCUIT ELEC-FRN          CIRKIT/F       16.79         -96.30
CIRCUIT ELE-NVDR          CIRKIT-R       16.79         -96.30
DATAMAT PCL               DTM            12.69          -6.13
DATAMAT PCL-NVDR          DTM-R          12.69          -6.13
DATAMAT PLC-F             DTM/F          12.69          -6.13
ITV PCL                   ITV            37.10        -118.46
ITV PCL-FOREIGN           ITV/F          37.10        -118.46
ITV PCL-NVDR              ITV-R          37.10        -118.46
K-TECH CONSTRUCT          KTECH          38.87         -46.47
K-TECH CONSTRUCT          KTECH/F        38.87         -46.47
K-TECH CONTRU-R           KTECH-R        38.87         -46.47
KUANG PEI SAN             POMPUI         17.70         -12.74
KUANG PEI SAN-F           POMPUI/F       17.70         -12.74
KUANG PEI-NVDR            POMPUI-R       17.70         -12.74
PATKOL PCL                PATKL          52.89         -30.64
PATKOL PCL-FORGN          PATKL/F        52.89         -30.64
PATKOL PCL-NVDR           PATKL-R        52.89         -30.64
PICNIC CORP-NVDR          PICNI-R       101.18        -175.61
PICNIC CORPORATI          PICNI         101.18        -175.61
PICNIC CORPORATI          PICNI/F       101.18        -175.61
PONGSAAP PCL              PSAAP          13.02          -1.77
PONGSAAP PCL              PSAAP/F        13.02          -1.77
PONGSAAP PCL-NVD          PSAAP-R        13.02          -1.77
SAHAMITR PRESS-F          SMPC/F         27.92          -1.48
SAHAMITR PRESSUR          SMPC           27.92          -1.48
SAHAMITR PR-NVDR          SMPC-R         27.92          -1.48
SUNWOOD INDS PCL          SUN            19.86         -13.03
SUNWOOD INDS-F            SUN/F          19.86         -13.03
SUNWOOD INDS-NVD          SUN-R          19.86         -13.03
THAI-DENMARK PCL          DMARK          15.72         -10.10
THAI-DENMARK-F            DMARK/F        15.72         -10.10
THAI-DENMARK-NVD          DMARK-R        15.72         -10.10
TRANG SEAFOOD             TRS            13.90          -3.59
TRANG SEAFOOD-F           TRS/F          13.90          -3.59
TRANG SFD-NVDR            TRS-R          13.90          -3.59
TT&T PCL                  TTNT          615.73        -210.36
TT&T PCL-NVDR             TTNT-R        615.73        -210.36
TT&T PUBLIC CO-F          TTNT/F        615.73        -210.36


TAIWAN

BEHAVIOR TECH CO          2341S          41.94          -1.02
BEHAVIOR TECH-EC          2341O          41.94          -1.02
CHIEN TAI CEMENT          1107          214.12         -49.02
HELIX TECH-EC             2479T          23.39         -24.12
HELIX TECH-EC IS          2479U          23.39         -24.12
HELIX TECHNOL-EC          2479S          23.39         -24.12
TAIWAN KOL-E CRT          1606U         507.21        -147.14
TAIWAN KOLIN-EN           1606V         507.21        -147.14
TAIWAN KOLIN-ENT          1606W         507.21        -147.14
VERTEX PREC-ENTL          5318T          42.24          -5.08
VERTEX PRECISION          5318           42.24          -5.08


                             *********

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

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

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


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

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

Copyright 2011.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.





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