TCRAP_Public/111018.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

           Tuesday, October 18, 2011, Vol. 14, No. 206

                            Headlines



A U S T R A L I A

BILSON'S RESTAURANT: Creditors Opt to Liquidate Restaurants
PROSERPINE SUGAR: May Enter Administration if Sucrogen Bid Fails
SMART SERIES: Fitch Puts 'BBsf' Rating on AUD22.5MM Class E Notes


H O N G  K O N G

GOLDEN PROFIT: Members' Final General Meeting Set for Nov. 14
HUGE DATA: Members' Final General Meeting Set for Nov. 15
HUMANISTIC COMPASSION: Chok Ya Lei Steps Down as Liquidator
JARDINE M&E: Ying and Chiu Step Down as Liquidators
MUTUAL MAX: Members' Final Meeting Set for Nov. 25

PACE (HK): Creditors' Proofs of Debt Due Nov. 14
PLASTIC-UNION (HK): Ngan Lin Chun Esther Steps Down as Liquidator
POSILFUSION LIMITED: Members' Final Meeting Set for Nov. 25
RIGHT TALENT: Members' Final General Meeting Set for Nov. 18
SANDELL ASSET: Creditors' Proofs of Debt Due Nov. 10

SHINING STAR: Members' Final General Meeting Set for Nov. 15
T TECH: Members' Final General Meeting Set for Nov. 15
WELL EAST: Briscoe and Wong Steps Down as Liquidator
WESTERN VISION: Members' Final General Meeting Set for Nov. 18


I N D I A

BIOLOGICAL E.: CRISIL Assigns CRISIL BB+ Rating on INR2.1MM Loan
CASIL INDUSTRIES: ICRA Reaffirms 'B' Rating to INR33.1cr Loan
IDF FINANCIAL: CRISIL Assigns 'CRISIL BB' Rating to INR250MM Loan
JAYALAKSHMI TEXTILES: ICRA Reassigns 'C' Rating on INR13cr Loan
KALYANI ENG'G: CRISIL Reaffirms 'CRISIL BB-' Term Loan Rating

KENERSYS INDIA: ICRA Cuts Rating on INR15cr Loan to '[ICRA] BB+'
K.P.N. TEXTILE: ICRA Reassigns '[ICRA]C' Rating to INR13.4cr Loan
KUMARAPALAYAM TOLLWAYS: Fitch Cuts INR3.19BB Loan Rating to 'BB-'
M N R EXPORTS: CRISIL Assigns 'CRISIL B' Rating to INR55MM Loan
MORAKHIA METALS: CRISIL Puts 'CRISIL D' Rating on INR74.1MM Loan

OSWAL APPARELS: ICRA Assigns '[ICRA]B+' Rating to INR60cr Loan
OSWAL FASHION: ICRA Assigns '[ICRA] B+' Rating to INR16.17cr Loan
OSWAL TRENDS: ICRA Assigns '[ICRA] B+' Rating to INR11c LT Loan
PRAKASH DAL: ICRA Assigns '[ICRA]BB+' Rating to INR7.5cr Loan
RANGARA INDUSTRIES: CRISIL Cuts Rating on INR400MM Loan to 'D'

SALEM TOLLWAYS: Fitch Lowers Rating on INR2.23-Bil. Loan to 'BB-'
SHIVA SPIN-N-KNIT: ICRA Places '[ICRA]B+' Rating on INR5cr Loan
SIVASWATI TEXTILE: ICRA Reaffirms 'BB+' Rating to INR66.02cr Loan
SUPREME (INDIA): CRISIL Upgrades Rating on INR63.2MM Loan to BB-
SURYA EXIM: CRISIL Reaffirms 'CRISIL BB' Rating on INR75MM Loan

TROPICANA LIQUID: CRISIL Reaffirms 'CRISIL BB' Loan Ratings
VASUNDHARA COTTON: ICRA Cuts INR17.65cr Loans Rating to [ICRA]BB-
YASH AGRO: CRISIL Assigns B- Rating to INR246.2MM Term Loan


I N D O N E S I A

BANK CENTRAL: Fitch Affirms Issuer Default Rating at 'BB+'
MERPATI NUSANTARA: Resumes Flights After Fuel Supply Embargo


J A P A N

BANK OF TOKYO: Moody's Bond Ratings Incorporate 'C' BFSR
EAST STREET: Moody's Cuts Rating on JPY5-Bil. Notes to 'Caa3'
JLOC XXXI: Fitch Junks Rating on Two TBI Classes
JLOC XXXIII: S&P Lowers Rating on Class D Certificate to 'D'


K O R E A

KOREA EXCHANGE: Court Verdict to Expedite Sale Process
KOREA LINE: Seoul Court Approves Revival Plan


N E W  Z E A L A N D

KIA KAHA: Liquidation Hits Greytown Football Club
LOMBARD FINANCE: Directors Plead Not Guilty
NZF MONEY: Parent Still Optimistic Amid Receivership
YARROWS BAKERS: EPMU Welcomes Firm's Sale to John & Rosaleen
* NEW ZEALAND: Business Insolvency Rate Drops 20% in Sept Quarter


S I N G A P O R E

BARLIAN SHIPPING: Court to Hear Wind-Up Petition Oct. 28
BEXCOM PTE: Creditors' Proofs of Debt Due Oct. 26
BUSINESSWORLD INT'L: Court to Hear Wind-Up Petition Oct. 28
DOVECHEM HOLDINGS: First Meeting Set for Oct. 25
ELECTROGLAS PRIVATE: Creditors' Proofs of Debt Due Oct. 28

HENG SHENG: Creditors Get 100% Recovery on Claims


T H A I L A N D

BANK OF AYUDHYA: Moody's Raises Bank Finc'l Strength Rating to D+
TMB BANK: Moody's Affirms 'D-' Bank Financial Strength Rating


X X X X X X X X

* BOND PRICING: For the Week Oct. 10 to Oct. 14, 2011


                            - - - - -


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


BILSON'S RESTAURANT: Creditors Opt to Liquidate Restaurants
-----------------------------------------------------------
Madeleine Heffernan at SmartCompany reports that creditors have
voted to liquidate Sydney's Bilson's Restaurant, with suppliers,
landlords, employees and owner Tony Bilson left with debts from
the three-hat restaurant's collapse.

SmartCompany says the Sydney hospitality scene was rocked by the
voluntary administration of sister locale Number One Wine Bar
last week.  On Friday, SmartCompany relates, creditors voted in
favor for the companies to be wound up.

According to the report, liquidator Paul Burges, director of BRI
Ferrier, said the creditors' meeting on Friday was attended by
about 15 people, including representation from landlords,
employees and general suppliers -- the latter the hardest hit
from the collapse.

SmartCompany relates that Mr. Burges said the creditors are owed
a similar amount to the AUD500,000 payroll tax bill, leaving
north of AUD1 million owed by a business turning over AUD2 to
AUD3 million annually.

"It was a high-profile business, but not a big business," the
report quotes Mr. Burges as saying.

Mr. Burges, as cited by SmartCompany, said while parties had
expressed interest in the famed restaurant, a credible offer was
not received.

Mr. Bilson put two of his companies -- Bilson's Restaurant and
Number One Wine Bar -- into voluntary administration last month
after he was hit with an unexpected AUD$500,000 payroll tax
liability, The Australian reports.

According to SmartCompany, Mr. Burges said the payroll tax bill
managed to reach half a million dollars because Mr. Bilson
believed his accountant was taking care of his affairs.


PROSERPINE SUGAR: May Enter Administration if Sucrogen Bid Fails
----------------------------------------------------------------
ABC News reports that Proserpine Sugar's board is worried about
the prospect of being placed into administration, if an amended
takeover bid by Sucrogen fails.

A small number of growers met to hear from the board and an
independent expert, who has reviewed the Sucrogen and Tully
offers, according to ABC News.

The report notes that acting Chief Executive Officer Ian McBean
said analysis confirms the board's position that the Tully offer
cannot be accepted.  ABC News relates that Mr. McBean said the
results of a ballot on whether to accept the Sucrogen bid will be
announced in a fortnight.

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 2, 2011, ABC Rural said that the Proserpine Sugar Mill
rejected an AU$115 million takeover offer by foreign owned
Sucrogen.  The mill is required to repay AU$15 million loan to
Sucrogen within five working days, and meet a significant
financial commitment to Westpac Bank, which involves reducing its
debt from AU$70 million to AU$35 million by the end of October,
according to ABC Rural.


SMART SERIES: Fitch Puts 'BBsf' Rating on AUD22.5MM Class E Notes
-----------------------------------------------------------------
Fitch Ratings has assigned SMART Series 2011-3 Trust notes final
ratings.  The transaction is an asset-backed securitisation
backed by automotive and equipment lease receivables originated
by Macquarie Leasing Pty Limited.

  -- AUD144MM Class A-1 notes: 'F1+sf'
  -- AUD473.4MM Class A-2A notes: 'AAAsf'; Outlook Stable
  -- GBP110MM Class A-2G notes: 'AAAsf'; Outlook Stable
  -- AUD20.25MM Class B notes: 'AAsf'; Outlook Stable
  -- AUD24.75MM Class C notes: 'Asf'; Outlook Stable
  -- AUD22.5MM Class D notes: 'BBBsf'; Outlook Stable
  -- AUD22.5MM Class E notes: 'BBsf'; Outlook Stable
  -- AUD18MM seller notes: not rated

The notes have been 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.

At the cut-off date, the Macquarie Leasing's representative
collateral portfolio consisted of 48,892 automotive and equipment
lease receivables totalling approximately AUD891m, with an
average size of AUD35,795 and a weighted average seasoning of 6.8
months.  The pool comprises 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 24.8% (as a percentage of original balance).
The majority of leases consist of novated contracts (52.5%),
where the lease is novated to the employer in salary packaging
arrangements.

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

The final Short-Term 'F1+sf' rating assigned to the Class A-1
notes and the final 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 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.


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


GOLDEN PROFIT: Members' Final General Meeting Set for Nov. 14
-------------------------------------------------------------
Members of Golden Profit Limited will hold their final general
meeting on Nov. 14, 2011, at 10:00 a.m., at 6/F, Greenwich
Centre, 260 King's Road, North Point, in Hong Kong.

At the meeting, Yuen Sik Ming Patrick, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


HUGE DATA: Members' Final General Meeting Set for Nov. 15
---------------------------------------------------------
Members of Huge Data Limited will hold their final general
meeting on Nov. 15, 2011, at 11:00 a.m., at Room 1105, 11th
Floor, Haleson Building, 1 Jubilee Street, Central, in Hong Kong.

At the meeting, Lai Wai Man Vincent, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


HUMANISTIC COMPASSION: Chok Ya Lei Steps Down as Liquidator
-----------------------------------------------------------
Chok Ya Lei stepped down as liquidator of Humanistic Compassion
Foundation Limited on Sept. 30, 2011.


JARDINE M&E: Ying and Chiu Step Down as Liquidators
---------------------------------------------------
Ying Hing Chiu and Chan Mi Har stepped down as liquidators of
Jardine M&E Contracting Limited on Sept. 21, 2011.


MUTUAL MAX: Members' Final Meeting Set for Nov. 25
--------------------------------------------------
Members of Mutual Max Investment Limited will hold their final
general meeting on Nov. 25, 2011, at 2:00 p.m., at 3/F., Malaysia
Building, 50 Gloucester Road, Wanchai, in Hong Kong.

At the meeting, Yuen Shu Tong, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.


PACE (HK): Creditors' Proofs of Debt Due Nov. 14
------------------------------------------------
Creditors of Pace (HK) Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by Nov.
14, 2011, to be included in the company's dividend distribution.

The company commenced wind-up proceedings on Sept. 30, 2011.

The company's liquidators are:

         Thomas Andrew Corkhill
         Iain Ferguson Bruce
         8th Floor, Gloucester Tower
         The Landmark
         15 Queen's Road
         Central, Hong Kong


PLASTIC-UNION (HK): Ngan Lin Chun Esther Steps Down as Liquidator
-----------------------------------------------------------------
Ngan Lin Chun Esther stepped down as liquidator of Plastic-Union
(HK) Limited on Oct. 7, 2011.


POSILFUSION LIMITED: Members' Final Meeting Set for Nov. 25
-----------------------------------------------------------
Members of Posilfusion Limited will hold their final meeting on
Nov. 25, 2011, at 10:00 a.m., at Unit 501, 5/F, Mirror Tower, 61
Mody Road, Tsimshatsui East, Kowloon, in Hong Kong.

At the meeting, Tong Lap Hong, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.


RIGHT TALENT: Members' Final General Meeting Set for Nov. 18
------------------------------------------------------------
Members of Right Talent Group Limited will hold their final
general meeting on Nov. 18, 2011, at 9:30 a.m., at Room 1203-05,
Citibank Tower, 3 Garden Road, in Hong Kong.

At the meeting, Jonathan Espinili Umali, the company's
liquidator, will give a report on the company's wind-up
proceedings and property disposal.


SANDELL ASSET: Creditors' Proofs of Debt Due Nov. 10
----------------------------------------------------
Creditors of Sandell Asset Management Asia Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Nov. 10, 2011, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on Sept. 20, 2011.

The company's liquidator is:

         Keung Ping Yin Raymond
         Room 313, Central Building
         Pedder Street
         Central, Hong Kong


SHINING STAR: Members' Final General Meeting Set for Nov. 15
------------------------------------------------------------
Members of Shining Star Company Limited will hold their final
general meeting on Nov. 15, 2011, at 10:00 a.m., at Room 1205,
12/F., Manulife Provident Funds Place, No. 345 Nathan Road,
Kowloon, in Hong Kong.

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


T TECH: Members' Final General Meeting Set for Nov. 15
------------------------------------------------------
Members of T Tech Fund Limited will hold their final general
meeting on Nov. 15, 2011, at 10:00 a.m., at 20/F, Prince's
Building, Central, in Hong Kong.

At the meeting, Rainier Hok Chung Lam, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


WELL EAST: Briscoe and Wong Steps Down as Liquidator
----------------------------------------------------
Stephen Briscoe and Wong Teck Meng stepped down as liquidator of
Well East Trading Limited on Oct. 4, 2011.


WESTERN VISION: Members' Final General Meeting Set for Nov. 18
--------------------------------------------------------------
Members of Western Vision Company Limited will hold their final
general meeting on Nov. 18, 2011, at 11:00 a.m., at 9th Floor,
Chinachem Hollywood Centre, 1-13 Hollywood Road, Central, in Hong
Kong.

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


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BIOLOGICAL E.: CRISIL Assigns CRISIL BB+ Rating on INR2.1MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to
the bank facilities of Biological E. Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR2.1384 Billion Term Loan       CRISIL BB+/Stable (Assigned)
   INR141.60 Mil. Letter of Credit   CRISIL A4+ (Assigned)

The ratings reflect BEL's established track record in the
pharmaceutical industry, marked by a diverse product portfolio
and the healthy demand prospects for combination vaccines in the
International market. These rating strengths are partially offset
by BEL's moderate financial risk profile, marked by high gearing
and exposure to high degree of regulation in the Pharmaceutical
business.

Outlook: Stable

CRISIL believes that BEL will continue to benefit over the medium
term from its established track record in the pharmaceutical
industry, diverse product portfolio and the healthy demand
prospects for combination vaccines. The outlook may be revised to
'Positive' in case of significant improvement in the company's
liquidity or capital structure, supported by greater than
expected increase in scale of operations owing to healthy offtake
from BEL's pentavalent vaccine manufacturing facility or receipt
of any substantial proceeds from sale of its facilities.
Conversely, the outlook may be revised to 'Negative' in case of
any delay in stabilisation of operations of the Pentavalent
manufacturing facility (at Shamirpet , Hyderabad, Andhra Pradesh
[AP]) post commercialisation, leading to constrained revenues and
cash accruals, or if BEL undertakes greater than expected debt-
funded capital expenditure programme, thereby weakening its
financial risk profile.

                        About Biological E.

Established in 1953, BEL manufactures pharmaceutical formulations
and vaccines. BEL became the first Indian private sector company
to manufacture vaccines, with the foray into manufacture of
animal vaccines in 1962. BEL's current product portfolio can be
broadly categorized under two verticals ? pharmaceuticals and
biotechnology. The biotechnology vertical currently comprises of
vaccines, while the pharmaceutical business comprises three sub-
segments -- formulations, Active Pharmaceutical Ingredients
(APIs), and sera products. The company has five manufacturing
facilities -- 4 in AP and 1 in Uttarakhand.

The current vaccines product portfolio of BEL caters majorly to
the domestic market. BEL's Tetanus Toxoid vaccine - BE TT
commands over 75% market share in the country. The company has
also constructed, at a cost of INR2 billion, a state of art
facility at Shamirpet (Hyderabad, AP) with a capacity to
manufacture 100 million doses of Pentavalent vaccine (Combination
vaccine for immunization against five diseases - Diphtheria,
Tetanus, Purtussis, Hepatitis B and Haemophilus Influenzae type
- B). The company received World Health Organization (WHO) pre-
qualification for its Re-constituted pentavalent vaccine in
August 2011.

In the Pharmaceutical formulations sub-segment, the company's
product portfolio comprises of established brands such as
Bethadoxin, Bestozyme and Coscopin, which have a track record of
over 40 years. BEL's API product line comprises of drugs such as
Nascopine, Papa verine, Neo Hepatex and Heparine sodium, which
are predominantly captively consumed in the production of
formulations. Heparine sodium and Nascopine are also exported.
The company is expected to undertake a capex, in 2011-12 (refers
to financial year , April 1 to March 31) to improve operational
efficiencies of its Heparine Sodium manufacturing facility. The
project cost is estimated to be around INR30 million, which is
expected to be funded entirely through internal accruals.

BEL's day-to-day operations are managed by the company's Chairman
and Managing Director, Dr. Vijayakumar Datla. He is supported by
his eldest son-in-law and youngest daughter, Mr. Narendra Dev
Mantena and Ms. Mahima Datla, and a professional team.

BEL posted a provisional profit after tax (PAT) of INR 137.8
million on net sales of INR 2.47 billion for 2010-11 (refers to
financial year, April 1 to March 31), as against a PAT of
INR82.6 million on net sales of INR 2.13 billion for 2009-10.


CASIL INDUSTRIES: ICRA Reaffirms 'B' Rating to INR33.1cr Loan
-------------------------------------------------------------
ICRA has reaffirmed '[ICRA]B' rating to the INR33.1 crore
(reduced from INR37.65 crore) term loans and INR5 crore (reduced
from INR7 crore) fund based bank limits of Casil Industries
Limited. ICRA has also reaffirmed '[ICRA]A4' rating to the INR3.1
crore (reduced from INR3.5 crore) non fund based limits.

The ratings reflect the strong business and financial support (in
terms of fund infusion for servicing debt repayments) by Cadila
Pharmaceuticals Limited {rated LBBB (stable) & A2 by ICRA}.
Additionally, ICRA also takes note of the company's established
network and experience of the promoters in the pharmaceutical
industry. The ratings however continue to be constrained by CIL's
net losses thus resulting in negative networth in FY11, adverse
capital structure arising from high debt funded capex undertaken
in the past and weak coverage indicators.

Casil Industries Ltd. was promoted as a Public Venture in the
year 1988 with an aim to support an established pharmaceutical
company of the group in the allied hospital supplies. CIL
provides a range of pharmaceutical and health products. The
company is one the established suppliers of allied hospital
supplies primarily surgical, orthopedic, wound care,
disinfectants etc. Among other products the company also supplies
Plaster of Paris Bandages, Adhesive Surgical Tapes, Non-woven
Dressings, Disinfectant, Dietary/Multivitamin/Mineral supplements
in the form of Soft Gelatin Capsules. CIL also manufactures
Sulfolene, a solvent used in refinery and lot of synthesis
process in Pharmaceutical Industry.

Recent results:

Based on the provisional numbers, for the financial year ended
March 2011, the company reported a Net Loss of INR5.5 crore on an
operating income of INR16.3 crore.


IDF FINANCIAL: CRISIL Assigns 'CRISIL BB' Rating to INR250MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the bank
facilities of IDF Financial Services Pvt Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR500 Million Cash Credit       CRISIL BB/Stable (Assigned)
   INR250 Mil. Proposed Long-Term   CRISIL BB/Stable (Assigned)
   Bank Facilities

The rating reflects IDF FSPL's comfortable capital levels,
extensive experience of its promoters and senior management in
the rural development and financial services industry, and
adequate systems, processes, and loan monitoring mechanisms.
These rating strengths are partially offset by IDF FSPL's small
scale of operations, regional concentration in its revenue
profile, modest asset quality and earnings profile, and
constrained funding environment for microfinance institutions in
India.

Outlook: Stable

CRISIL believes that IDF FSPL will continue to benefit from the
extensive experience of its promoters and senior management in
the field of rural development and financial services. The
company's scale of operations and asset quality are expected to
remain modest over the medium term. The outlook may be revised to
'Positive' if IDF FSPL significantly increases the scale of its
operations and improves its asset quality and earnings profile.
Conversely, the outlook may be revised to 'Negative' if the
company is unable to raise adequate funds to increase its scale
of operations, or if its asset quality deteriorates
substantially, adversely impacting its capitalization.

                        About IDF Financial

IDF FSPL, based in Bengaluru, commenced microfinance operations
in April 2009 by taking over the portfolio of Initiatives for
Development Foundation, a non-profit organization promoted by
professionals with background in banking and entrepreneurship
training. IDF FSPL lends to self-help groups (SHGs), mainly
comprising women; these groups are promoted by IDF FSPL. As on
August 31, 2011, IDF FSPL had presence in 12 districts in
Karnataka with a loan portfolio outstanding of INR674.3 million.
IDF FSPL lends to SHGs for duration of 12 months to 36 months
with monthly repayment. As on September 30, 2011, IDF FSPL had a
network of six area offices with reported loan disbursement of
INR842.6 million in 2010-11.

During 2010-11 (refers to financial year April 1 to March 31),
IDF FSPL reported a net profit of INR3.3 million on a total
income of INR121.44 million as compared to a net profit of INR3.1
million on a total income of INR85.31million during 2009-10.


JAYALAKSHMI TEXTILES: ICRA Reassigns 'C' Rating on INR13cr Loan
---------------------------------------------------------------
ICRA has re-assigned the '[ICRA]C' rating outstanding on the
INR13.00 crore term loan facilities and INR13.00 crore fund based
facilities of Jayalakshmi Textiles Private Limited.

The rating considers the company's small scale of operations, in
a fragmented industry structure characterized by intense
competition, restricting economies of scale and financial
flexibility, stretched financial profile with weak coverage
indicators, and high working capital intensity and the recent
downturn witnessed in the cotton yarn industry is likely to
adversely impact the volumes and margins in the short term. The
rating also factor in experience of promoters in spinning
industry and JTPL's major concentration in the medium and finer
counts enabling better realizations.

Incorporated in 1995, Jayalakshmi Textiles Private Limited is
engaged in the business of spinning 100% cotton in the range of
31s to 120s. The Company has the capacity of producing single,
doubled and cabled yarns without knots. The spinning plant for
the Company is located at Aruppukottai with total installed
capacity of 38,316 spindles.


KALYANI ENG'G: CRISIL Reaffirms 'CRISIL BB-' Term Loan Rating
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Kalyani Engineering
Works continue to reflect KEW's weak financial risk profile,
marked by a high gearing and small net worth, and large working
capital requirements.

   Facilities                       Ratings
   ----------                       -------
   INR190 Million Term Loan         CRISIL BB-/Stable
(Reaffirmed)
   (Enhanced from INR112 Million)

   INR170 Million Cash Credit       CRISIL BB-/Stable
(Reaffirmed)
   (Enhanced from INR71.7 Million)

   INR90 Mil. Proposed Long-Term    CRISIL BB-/Stable (Assigned)
   Bank Loan Facility  

   INR50 Million Bank Guarantee     CRISIL A4+ (Assigned)

These rating weaknesses are partially offset by KEW's established
relationships with reputed customers and its superior product
quality.

Outlook: Stable

CRISIL believes that KEW will benefit over the medium term from
its established market position, long-standing relations with
customers, and diversified product profile. The outlook may be
revised to 'Positive' if KEW's financial risk profile improves
significantly, most likely because of significant decline in
gearing led by decline in working capital requirements, while
maintaining a steady profitability and cash accruals. Conversely,
the outlook may be revised to 'Negative' if the firm's gearing
deteriorates or its net cash accruals decline sharply, leading to
weakening in its financial risk profile.

Update

KEW's revenues increased by 12 per cent in 2010-11 (refers to
financial year, April 1 to March 31) as compared with 2009-10,
largely because of improved order flows. The firm's operating
margin improved to 29.5 per cent in 2010-11 as against 24 per
cent in 2009-10, driven by reduced cost of its raw materials --
steel and iron -- given the favorably priced inventory used
during the year.  KEW, however, reported provisional sales of
INR220 million for the period between April 1 and August 31,
2011. CRISIL believes that KEW will register healthy sales growth
in 2011-12 over 2010-11 on account of increased capacity added
during the year.

KEW had large working capital requirements in 2010-11, with gross
current asset days of 390 as against 300 in 2009-10, on account
of higher inventory levels of around 276 days in 2010-11 as
against 172 days in 2009-10 mainly due to wide range of stores it
needs to maintain in the business and is expected to maintain
even going forward. CRISIL believes that KEW's overall working
capital requirements will increase along with its sales growth,
and any further adverse change in its working capital management
will remain a key rating sensitivity factor over the medium term.

KEW's overall financial risk profile remains weak, with high
gearing of around 3.8 times as on March 31, 2011, as against 3.7
times as on March 31, 2010, given that during 2010-11 the debt-
funded capital expenditure (capex) programme that the firm
undertook. For 2010-11, KEW undertook a capex programme of around
INR190 million for purchase of equipments tools and machines for
setting up a manufacturing capacity for gears for railways, and
for expanding its existing capacity; the capex was funded through
equity of around INR19 million, internal accruals of INR10
million, unsecured loans of INR 50 million extended by the
partners, and external bank debt of INR111 million.

Furthermore, KEW's debt protection metrics also continue to be
moderate, with interest coverage ratio at around 2 times and the
net cash accruals to total debt ratio at 0.09 times, for 2010-11.
CRISIL believes that KEW's financial risk profile will continue
to remain weak, with gearing of above 3 times, over the medium
term.

KEW's liquidity remains stretched with high bank limit
utilization and moderate current ratio, however partly offset by
sufficient net cash accruals against term debt obligations. The
firm's bank limits of INR170 million were almost fully utilized
for the 12 months ended June 2011. KEW also availed of temporary
ad hoc limits of INR10 million for November 2010 and February
2011. Its current ratio was moderate, around 1.5 times, as on
March 31, 2011. The firm's net cash accruals are estimated to be
in the range of INR45 million to INR55 million for 2011-12, which
is expected to be sufficient to meet its long-term debt
obligations of around INR40 million during this period.

CRISIL believes that KEW's liquidity will remain stretched over
the medium term due to its working-capital-intensive operations.

                   About Kalyani Engineering

KEW was set up in 1982 by Mr. G R Makharia. It manufactures and
undertakes fabrication of spares, components, and sub-assemblies.
The firm is into machining of spares and critical components,
such as cylinders, piston, tie-rods, axle boxes, and magnet
frames of locomotive engines. KEW's manufacturing workshop is in
Ghaziabad (Uttar Pradesh). KEW is a partnership firm, in which
Mr. Vinod Kumar Makharia (son of Mr. G R Makharia) and his wife,
Mrs. Kiran Makharia, have equal stakes as partners.

KEW reported, on a provisional basis, a profit after tax (PAT) of
INR20 million on operating income of INR423 million for 2010-11;
the firm reported a PAT of INR17 million on operating income of
INR378 million for 2009-10.


KENERSYS INDIA: ICRA Cuts Rating on INR15cr Loan to '[ICRA] BB+'
----------------------------------------------------------------
ICRA has revised long term rating from 'LBBB-' to '[ICRA] BB+'
for INR15.0 crore long-term loan and INR90.0 crore cash credit
facilities of Kenersys India Private Limited.  The outlook on
long term rating is stable.  ICRA has also revised the short term
rating from 'A3' to '[ICRA] A4+' to INR25.0 crore fund based
(sub-limit to the cash credit facility) and INR85.0 crore non-
fund based bank facilities of KIPL.

The rating revision reflects increase in the financial risk
profile of the company as reflected in deterioration in capital
structure and debt coverage indicators, despite regular equity
infusion by promoters With limited land-bank which has adversely
affected the volume sales, the company has now renewed its focus
towards infrastructure development across states instead of being
only an equipment supplier. ICRA however notes that the company's
ability to step-up the volumes given the increasing competitive
pressures as well as execute the orders in a timely manner within
the budgeted costs remains critical to improve its financials.
Further, with low level of localization and high import
dependence on bought-out components is likely to constrain its
profitability in case of any adverse forex movements.

The ratings however draw comfort from the strength of the
principal promoters the Kalyani Group which is evident from
regular equity infusion to fund losses and ease liquidity
pressure. The ratings also favorably factors strong demand
outlook for wind energy in the long run as well as the
synergistic benefits which company derives from the promoter
group's expertise in engineering and renewable energy business.

                       About Kenersys India

Kenersys India Pvt. Ltd. is promoted by the Kalyani Group and was
incorporated in October 2007 for the manufacture/assembly of wind
turbine generators (WTGs). In FY07 Kalyani group acquired a
controlling stake in RSBconsult GmbH (later named as Kenersys
GmbH), an established German design and consulting house in the
wind energy business, through a holding company Kalyani Renewable
Energies Holding BV (KREH). KREH is jointly promoted by Kalyani
Group and First Reserve, USA, an experienced, global energy
focused Private equity firm. The holding company has floated
three entities viz. Kenersys GmbH, Kenersys Europe GmbH and KIPL.
KIPL is the group's operating entity for India with the
responsibility of manufacturing/assembly of 2 MW (K-82) wind
turbines for the Asian market, and it will also be responsible
for handling sales and marketing of turbines in India and Asia.
In FY12, IFCI acquired 11% stake in KIPL by acquiring shares from
promoters and fresh issuance of shares by the company.

Kenersys GmbH, the groups design house is responsible for the
freezing product specifications and development of turbine
designs for global markets. Kenersys Europe GmbH and KIPL have
been involved in the development of the global supply chain for
critical sub-components for the group. KIPL as the group's
operating entity for India has the responsibility of
manufacturing/assembly of 2 MW (K-82) wind turbines and for sales
and marketing of turbines in India and Asia.


K.P.N. TEXTILE: ICRA Reassigns '[ICRA]C' Rating to INR13.4cr Loan
-----------------------------------------------------------------
ICRA has re-assigned the long term rating of '[ICRA]C'
outstanding on the INR13.40 crore term loans, the INR2.00 crore
fund based bank facilities and the INR2.00 crore non-fund based
bank facilities of K.P.N. Textile Mills Limited.

The rating considers the stretched financial profile of the
company characterized by low profitability and high gearing,
small scale of operations which restricts economies of scale and
financial flexibility and the intense competition in the highly
fragmented spinning industry which limits pricing flexibility.
The rating also considers the experience of the promoters in the
textile business and the operational support from the group
companies.

K.P.N. Textile Mills Limited was incorporated in 2007 with an
installed capacity of 12,096 spindles and started its commercial
production in 2008. The promoters have about 18 years of
experience in the viscose yarn business. KPNTML manufactures yarn
in the coarse/medium counts and mainly caters to the Tirupur
market. The Company's manufacturing facility is located at
Pallipalayam, Erode.


KUMARAPALAYAM TOLLWAYS: Fitch Cuts INR3.19BB Loan Rating to 'BB-'
-----------------------------------------------------------------
Fitch Ratings has downgraded India-based Kumarapalayam Tollways
Limited's (KTL) INR3.19bn senior project bank loans to 'Fitch BB-
(ind)' from 'Fitch BBB-(ind)'.  KTL's INR200MM subordinate loans
have also been downgraded to 'Fitch B+(ind)' from 'Fitch
BB+(ind)'.  The Outlook is Negative.

Simultaneously, the agency has withdrawn the 'Fitch BBB-(ind)'
ratings on the INR114m performance security as this facility has
expired.

The downgrade reflects KTL's significant traffic underperformance
compared with Fitch's original estimates.  Since the commercial
operations began in August 2009, traffic has continued to be
substantially below projections, although revenue has shown
notable y-o-y growth of 10% in FY11 due to inflationary tariff
increases.  The severity of the traffic underperformance has
resulted in inadequate cash flows available to meet debt service
requirements for FY11.  Consequently, the sponsor, IVRCL Assets
and Holdings Limited, has provided support in the form of timely
infusions of unsecured loans to meet monthly debt service
payments.  Fitch expects KTL to depend on sponsor support to meet
debt service requirements in the short-to-medium term.  This
support, although not contractually required, provides some
uplift to the ratings.

The rating of the subordinate debt is one notch lower because of
its structural subordination, including second ranking in the
cash flow waterfall and second charge on the security package.
The small size of the subordinated debt limits the differential
to one notch.

The Negative Outlooks reflect Fitch's expectation that continued
traffic underperformance, even with Fitch's moderate revenue
growth assumptions, would still require continued sponsor support
in the medium term and possible restructuring of project bank
loans.

The ratings of KTL are equalized with its twin project, Salem
Tollways Limited, due to the presence of a cross-default clause
in the financing agreements of both projects.  STL is the project
company set up to undertake the upgrading and operation of the
adjoining 53km of the same highway.  STL is also experiencing
severe traffic underperformance.  Traffic along the KTL-STL
section of National Highway 47 (NH-47) is driven primarily by its
proximity to the cities of Salem, Tiruppur and Coimbatore.
Economic difficulties faced by the textile industries in the
region, in part due to a change in regulation, have impacted
traffic on the project roads.

KTL is a special purpose company set up to widen, operate and
maintain a 48km road stretch on the NH-47 between Kumarapalayam
and Chengappalli -- two towns located in Tamil Nadu.  KTL is
wholly owned by IVRCL Assets and Holdings Limited, which in turn
is a subsidiary of IVRCL Limited ('Fitch A+(ind)'/ Stable).


M N R EXPORTS: CRISIL Assigns 'CRISIL B' Rating to INR55MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of M N R Exports Pvt Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR55 Million Rupee Term Loan    CRISIL B/Stable (Assigned)
   INR5 Million Bill Discounting    CRISIL A4 (Assigned)
   INR50 Million Packing Credit     CRISIL A4 (Assigned)

The ratings reflect MNR's weak financial risk profile, marked by
high gearing and weak debt protection metrics-and working-
capital-intensive operations. These rating weaknesses are
partially offset by MNR's established track record in the
manufacture of export of jute and cotton bags.

Outlook: Stable

CRISIL believes that MNR will continue to benefit over the medium
term from its established track record in the jute and cotton bag
industry. The outlook may be revised to 'Positive' if the ongoing
capacity enhancement leads to significant increase in MNR's scale
of operations while maintaining its operating profitability, over
the medium term. Conversely the outlook may be revised to
'Negative' if additional large debt-funded capital expenditure or
further stretch in receivables leads to material deterioration in
MNR's financial risk profile.

                         About  M N R  Exports

MNR, based in West Bengal, manufactures and exports jute and
cotton bags. Sale of jute bags contributes half of MNR's
revenues, while sale of cotton bags contributes the other half.
MNR has capacity to manufacture 10,000 bags per day; the capacity
is expected to increase by 40,000 bags per day by September 2011.
The products are entirely exported to Europe -- jute bags to UK,
and cotton bags to the rest of Europe.

MNR's profit after tax (PAT) was estimated at INR3.4 million on
net sales of INR175 million for 2010-11 (refers to financial
year, April 1 to March 31), up from a PAT of INR0.7 million on
net sales of INR75 million in 2009-10.


MORAKHIA METALS: CRISIL Puts 'CRISIL D' Rating on INR74.1MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' ratings to the bank facilities
of Morakhia Metals & Alloys Pvt Ltd.

   Facilities                          Ratings
   ----------                          -------
   INR74.1 Million Rupee Term Loan     CRISIL D (Assigned)
   INR35 Million Cash Credit           CRISIL D (Assigned)
   INR100 Million Bank Guarantee       CRISIL D (Assigned)
   INR100 Million Letter of Credit     CRISIL D (Assigned)
   INR50 Million Bill Purchase-        CRISIL D (Assigned)
   Discounting Facility

The ratings reflect instances of delay by Morakhia in servicing
its term loan; the delays have been caused by the company's weak
liquidity.

Morakhia also has working-capital-intensive operations marked by
a high receivables period. The company, however, benefits from
its promoters' experience in the copper and copper-based alloy
products industry and also from its conservative capital
structure.

                       About Morakhia Metals

Incorporated in 1990, Morakhia manufactures (about 75 per cent of
net sales), and trades (about 25 per cent) in, bars, rods, and
tubes of copper and copper-based alloys. It sells majority of its
products to government undertakings such as BHEL, NTPC, and BEL .
Around 10 per cent of Morakhia's products are exported. It has an
installed capacity of 8000 tonnes per annum.

Morakhia reported a profit after tax (PAT) of INR13 million on
net sales of INR798 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR3.5 million on
net sales of INR530 million for 2008-09.


OSWAL APPARELS: ICRA Assigns '[ICRA]B+' Rating to INR60cr Loan
--------------------------------------------------------------
ICRA has assigned '[ICRA]B+' rating to INR60.00 crore long term
fund based and non-fund based facilities of Oswal Apparels
Private Limited.

The assigned rating is constrained by OAPL's weak financial
profile on account of modest profitability and high gearing which
has resulted in stretched debt coverage indicators. The proposed
debt funded capacity expansion to set up a yarn dyeing facility
would further strain the financial profile in the medium term.
The rating also takes into account the company's relatively small
scale of operations in a fragmented industry dominated by the
unorganized sector which puts pressure on the margins and limits
the ability to pass on the hike in the raw material prices as
evident from modest profitability in the past despite steady
growth and increasing realizations. ICRA notes that the
profitability and cash flows of the company are vulnerable to the
cyclicality inherent in the textile industry and the increase in
yarn prices and imposition of excise duty on branded apparels
could impact the sales and profitability of OAPL in the medium
term. The rating favorably factors in the steady revenue growth
which has been driven by increase in manufacturing capacity and
realization, the company's forward integration into fabric
processing and garmenting which would result in operational
efficiencies and higher value add, thereby improving the profit
margins; and the significant experience of the promoter of more
than a decade in the industry. While assigning the rating to
OAPL, ICRA has considered the consolidated operational and
financial profile of the group, which includes Oswal Fashion Pvt.
Ltd. (rated [ICRA] B+/[ICRA] A4) and Oswal Trends Pvt. Ltd.
(rated [ICRA] B+).

Going forward, improvement in the profitability driven by
synergies from integrated operations and the impact on the
financial profile on account of proposed debt funded expansion
would be key rating sensitivities.

                       About Oswal Apparels

OAPL was incorporated in February 2007 and is promoted by Mr.
Vikas Jain. The company started with fabric knitting and forward
integrated into fabric processing in 2010-11 to move up the value
chain. OAPL presently has in-house facilities for knitting,
fabric dyeing, finishing and printing in Ludhiana (Punjab) with
20 circular knitting machines, 6 flat-bed knitting machines and
an installed capacity of processing 10 tons per day of knitted
fabric.

The group is vertically integrated from knitting to garmenting
through another company namely, Oswal Fashion Pvt. Ltd. which is
engaged in knitting and garmenting. Oswal Trends Pvt. Ltd.,
another promoter company, is engaged in trading of yarn and
fabric in the domestic market.


OSWAL FASHION: ICRA Assigns '[ICRA] B+' Rating to INR16.17cr Loan
-----------------------------------------------------------------
ICRA has assigned '[ICRA] B+' rating to INR16.17 crore long term
fund based facilities of Oswal Fashion Private Limited.  ICRA has
also assigned an '[ICRA] A4' rating to INR3.50 crore short term
non-fund based facilities of OFPL.

The assigned ratings are constrained by OFPL's weak financial
profile on account of low profitability and high gearing which
has resulted in stretched debt coverage indicators. The company's
modest scale of operations in a fragmented industry dominated by
the unorganized sector limits the ability to pass on the hike in
the raw material costs and keeps the profitability under pressure
in the backdrop of volatility in raw material prices. ICRA notes
that the profitability and cash flows of the company are
vulnerable to the cyclicality inherent in the textile industry;
and the high yarn prices and imposition of the excise duty on the
branded apparels could impact the demand and profitability of
knitted fabric and garment manufacturers such as OFPL in the
medium term. The ratings favorably factor in the operational
efficiencies through vertically integrated operations in the
group from knitting to garmenting and the significant experience
of the promoters of more than a decade in the industry. While
assigning the rating to OFPL, ICRA has considered the
consolidated operational and financial profile of the group,
which includes Oswal Apparels Pvt. Ltd. (rated [ICRA] B+) and
Oswal Trends Pvt. Ltd. (rated [ICRA] B+).

Going forward, improvement in the profitability and debt coverage
indicators driven by synergies from integrated operations and any
major debt funded capacity expansion would be key rating
sensitivities.

OFPL was incorporated in May 1997 and is promoted by Mr. Vikas
Jain. The company is engaged in knitting and garmenting for
leading domestic apparel brands and has a manufacturing unit in
Ludhiana (Punjab).

The group has vertically integrated facilities from knitting to
garmenting through another group company namely, Oswal Apparels
Pvt. Ltd. which is engaged in knitting and fabric processing.
Oswal Trends Pvt. Ltd., another promoter company, is engaged in
trading of yarn and fabric in the domestic market.


OSWAL TRENDS: ICRA Assigns '[ICRA] B+' Rating to INR11c LT Loan
---------------------------------------------------------------
ICRA has assigned '[ICRA] B+' rating to INR11.00 crore long term
fund based facilities of Oswal Trends Private Limited.

The assigned rating is constrained by OTPL's low value add nature
of operations in a highly competitive and fragmented market which
has resulted in weak financial profile characterized by low
profitability, high gearing and stretched debt coverage
indicators. ICRA notes that around 50% of the net worth of the
company is in the form of share application money which could
adversely impact the financial profile in case of withdrawal. The
rating however, favorably factors in the significant experience
of the promoters in the textile industry and the operational
synergies on account of vertically integrated operations in the
group from knitting to garmenting. While assigning the rating to
OTPL, ICRA has considered the consolidated operational and
financial profile of the group, which includes Oswal Fashion Pvt.
Ltd. (rated [ICRA] B+/[ICRA]A4) and Oswal Apparels Pvt. Ltd.
(rated [ICRA] B+). Going forward, increase in scale of operations
which shall accrue benefits on account of economies of scale and
venturing into higher value add business of retailing as planned
by the company would be key rating sensitivities.

                       About Oswal Trends

OTPL was incorporated in March 2008 and is promoted by Mr. Vikas
Jain. The company was originally incorporated to retail branded
apparels under its own brand in the domestic market. However, due
to weak economic scenario, the plans were deferred and presently
the company is engaged in trading of yarn and fabric.

There are two more group companies namely, Oswal Apparels Pvt.
Ltd. (OAPL) and Oswal Fashion Pvt. Ltd. (OFPL). OAPL is engaged
in knitting and fabric processing and OFPL is engaged in knitting
and garmenting for leading domestic apparels brands.


PRAKASH DAL: ICRA Assigns '[ICRA]BB+' Rating to INR7.5cr Loan
-------------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]BB+' to the INR7.5
crore fund based limits of M/s Prakash Dal & Flour Mills.  The
outlook on the long term rating is stable. ICRA has also assigned
the '[ICRA]A4+' rating to the INR3.75 crore non-fund based limits
of PDFM'.

The non-fund based limits are a sublimit to the fund based limits
and total utilization shouldn't exceed INR7.5 crore.

The ratings favorably factor in the long experience of the
promoters in the 'dal' processing business and the acceptance of
the firm's 'besan' brand in Maharashtra. However the ratings are
constrained by the vulnerability of the agro commodities (grams)
to agro climatic conditions, intense competition from unorganized
players resulting in margin pressure, relatively low operating
and net profit margins, relatively high gearing and weak coverage
indicators.

M/s Prakash Dal & Flour Mills. was incorporated in 1988 as a
partnership firm and has been engaged in the processing of yellow
peas and gram since then. In 1995 there was a change in
partnership. Mr. Bhavanji Gala and Mr. Narendra Kumar Shah took
over as the new partners of the firm. Today the firm has its
markets spread across Maharashtra, Gujarat, Andhra Pradesh,
Karnataka and Kerala.

Recent Results:

The company reported a net profit of INR19.6 crore on a turnover
of INR259.2 in FY11 as compared to a net profit of INR13.7 crore
on a turnover of INR193.3 crore in FY10.


RANGARA INDUSTRIES: CRISIL Cuts Rating on INR400MM Loan to 'D'
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Rangara Industries Pvt Ltd to 'CRISIL D' from 'CRISIL
BB+/Stable'.

   Facilities                       Ratings
   ----------                       -------
   INR40 Million Cash Credit        CRISIL D (Downgraded from
                                         'CRISIL BB+/Stable')

   INR400 Million Long-Term Loan    CRISIL D (Downgraded from
                                          'CRISIL BB+/Stable')

The downgrade reflects frequent instances of delay by RIPL in
servicing its debt obligations in a timely manner in the recent
past; the delays have been caused by the company's weak
liquidity, primarily caused due to stretched receivables and
inadequate cash flows. CRISIL believes that RIPL's liquidity will
remain weak in the near term, keeping its debt servicing ability
weak.

RIPL has small scale of operations, highly leveraged capital
structure, large working capital requirements, and is susceptible
to economic cycles. However, the company benefits from its track
record of nearly three decades in the crane leasing industry.

About Rangara Industries

RIPL (formerly, Seeta Lifters Pvt Ltd) was set up by Mr. Noorali
Rangara in 1965; the company was initially into trading and
distribution of tyres. In 1978, it also began hiring and
operating cranes and excavators. RIPL is presently a medium-sized
player in the crane and excavator leasing industry, which is an
unorganized market. The company has offices in Mumbai
(Maharashtra), Dubai, and Muscat.

For 2010-11 (refers to financial year, April 1 to March 31), RIPL
reported, on provisional basis, a profit before tax (PBT) of
INR120 million on net sales of INR499 million; the company
reported PBT of INR118 million on net sales of INR425 million for
2009-10.


SALEM TOLLWAYS: Fitch Lowers Rating on INR2.23-Bil. Loan to 'BB-'
-----------------------------------------------------------------
Fitch Ratings has downgraded India-based Salem Tollways Limited's
(STL) INR2.23bn senior project bank loans to 'Fitch BB-(ind)'
from 'Fitch BBB-(ind)'.  STL's INR200 million subordinate loans
have also been downgraded to 'Fitch B+(ind)' from 'Fitch
BB+(ind)'.  The Outlook is Negative.

Simultaneously, the agency has withdrawn the 'Fitch BBB-(ind)
ratings on the INR140.9m performance security as this facility
has expired.

The downgrade reflects STL's significant traffic underperformance
compared with Fitch's original estimates.  Since commercial
operations began in July 2010, traffic has continued to be
substantially below projections, although revenue has shown
notable growth due to inflationary tariff increases.  The
severity of the traffic underperformance has resulted in
inadequate cash flows available to meet debt service requirements
for FY11.  Consequently, the sponsor, IVRCL Assets and Holdings
Limited has provided support in the form of timely infusions of
unsecured loans to meet monthly debt service payments.  Fitch
expects STL to depend on sponsor support to meet debt service
requirements in the short-to-medium term.  This support, although
not contractually required, provides some uplift to the ratings.

The rating of the subordinate debt is one notch lower because of
its structural subordination, including second ranking in the
cash flow waterfall and second charge on the security package.
The small size of the subordinated debt limits the differential
to one notch.

The Negative Outlook reflects Fitch's expectation that continued
traffic underperformance, even with moderate revenue growth
assumptions, would still require continued sponsor support in the
medium term and possible restructuring of project bank loans.

The ratings of STL are equalized with its twin project,
Kumarapalayam Tollways Limited, due to the presence of a cross-
default clause in the financing agreements of both projects.  KTL
is the project company set up to undertake the upgrading and
operation of the adjoining 48km of the same highway.  KTL is also
experiencing severe traffic underperformance.  Traffic along the
KTL-STL section of National Highway 47 (NH-47) is driven
primarily by its proximity to the cities of Salem, Tiruppur and
Coimbatore.  Economic difficulties faced by the textile
industries in the region, in part due to a change in regulation,
have impacted traffic on the project roads.

STL is a special purpose company set up to widen, operate and
maintain a 53km road stretch on the NH-47 between Kumarapalayam
and Salem -- two towns located in Tamil Nadu.  STL is wholly
owned by IVRCL Assets and Holdings Limited, which in turn is a
subsidiary of IVRCL Limited ('Fitch A+(ind)'/ Stable).


SHIVA SPIN-N-KNIT: ICRA Places '[ICRA]B+' Rating on INR5cr Loan
---------------------------------------------------------------
ICRA has assigned '[ICRA]B+' rating to INR5.00 crore long term
fund-based facilities of Shiva Spin-N-Knit (P) Ltd.  ICRA has
also assigned [ICRA]A4 (pronounced ICRA A four) rating to INR1.00
crore1 short term non fund-based facilities of SSKL.

The ratings take into account sizeable debt funded capacity
expansion plans to increase its spinning capacities, which
coupled with limited scale of existing operations is expected to
weaken the capital structure and debt coverage indicators in near
to medium term. Notwithstanding the improvement in profitability
metrics during FY 2011, the rating is also constrained on account
its track record of weak profitability and return indicators of
existing operations. The rating however takes comfort from the
company's association and the benefits which are expected to
accrue by virtue of its association with Shiva Group, which apart
from providing access to the cheaper fibre source will also
provide benefits arising out of long standing experience of the
promoters in the textile industry.

Going forward, the ability of the company to timely infuse the
planned equity contribution for the expansion project and
complete the same within budgeted cost and time will remain key
rating sensitivities.

                      About Shiva Spin-N-Knit

Shiva Spin-N-Knit Private Limited has a spinning mill in Ludhiana
district of Punjab, where it manufactures polyester and polyester
blended spun yarn. SSKL is also engaged in selling of knitted
fabric which it gets manufactured on a job work basis using the
yarn both manufactured at its spinning mill and purchased from
the market. The company was incorporated as Abhi Knits Private
Limited in June 1997 and later the name was changed to Manchanda
Spinning & Weaving Mills Private Limited. Subsequently, the unit
was acquired by Mr. Akhil Malhotra, promoter of Shiva Group, in
September 2005. The name of the company was subsequently changed
to Shiva Spin-N-Knit Private Limited, with fresh certificate of
incorporation. As on March 31, 2011, SSKL had an installed
capacity of 8500 spindles.


SIVASWATI TEXTILE: ICRA Reaffirms 'BB+' Rating to INR66.02cr Loan
-----------------------------------------------------------------
ICRA has reaffirmed '[ICRA]BB+' rating to INR66.02 crore term
loan and INR18.00 Crore fund based limits of Sivaswati Textile
Private Limited. The outlook on the long term rating is stable.
ICRA has also reaffirmed the [ICRA] 'A4+' rating assigned to the
INR5.0 crore non-fund based facilities and INR2.20 crore fund
based facilities of STPL.

The rating reaffirmation continues to take into account the
moderate financial profile of the company and the flexibility to
switch the production between cotton and synthetic yarn depending
on the market demand. Due to sharp correction in the cotton yarn
prices and weak demand outlook, the company discontinued the
production of cotton yarn from the first quarter of 2011-12 and
had been producing only synthetic yarn since then. However
subdued demand and low realizations have resulted in large
inventory build-up of yarn for the company which could impact the
liquidity in the short term. The capital structure and debt
coverage indicators improved in 2010-11 in the absence of any
debt funded expansion. However the proposed debt funded capacity
expansion, which though would improve the scale of operations and
result in benefits on account of economies of scale, could strain
the financial profile of the company, especially given the large
debt repayment obligations in the medium term. The ratings
continue to be constrained by STPL's vulnerability to intense
competition in a fragmented industry given the modest scale of
its operations and commoditized nature of the cotton and
synthetic yarn, which limits its pricing power. ICRA notes that
despite improvement, gearing and coverage indicators continue to
remain modest.

                      About Sivaswati Textile

STPL was incorporated in the year 2005 and is engaged in the
manufacturing of cotton, polyester, viscose, polyester-cotton and
polyester viscose spun yarn. The company has a spinning mill in
Guntur district of Andhra Pradesh with an installed capacity of
60,624 spindles. The company started commercial production of
yarn in March 2006 with an installed capacity of 9,936 spindles
which was increased to 46,512 spindles as on March 31, 2007 and
to 60,624 spindles as on March 31, 2008. STPL started the
operations with the manufacturing of 100% cotton yarn; however it
diversified its product portfolio in 2007-08 with the
manufacturing of polyester based yarn. In 2010-11, sales from
cotton yarn accounted for around 17.5% of the yarn sales and
synthetic yarn accounted for the remaining sales.

Recent results

During April-June 2011, as per the provisional results, STPL
reported an operating income of INR40.4 crores and an operating
profit margin of 18.8%.


SUPREME (INDIA): CRISIL Upgrades Rating on INR63.2MM Loan to BB-
----------------------------------------------------------------
CRISIL has upgraded its ratings on the long-term bank facilities
of Supreme India Impex Ltd to 'CRISIL BB-/Stable/CRISIL A4+' from
'CRISIL B+/Stable/CRISIL A4'.

   Facilities                       Ratings
   ----------                       -------
   INR10 Million Cash Credit        CRISIL BB-/Stable (Upgraded
                                       from 'CRISIL B+/Stable')

   INR63.2 Mil. Rupee Term Loan     CRISIL BB-/Stable (Upgraded
                                      from 'CRISIL B+/Stable')

   INR110 Million Packing Credit    CRISIL A4+ (Upgraded from
                                                 'CRISIL A4')

   INR389.4 Million Bill Purchase-  CRISIL A4+ (Upgraded from
   Discounting Facility                          'CRISIL A4')

The upgrade reflects the expected improvement in the operating
margin of the company driven by a higher proportion of higher-
value-added work resulting from the increase in the capacity of
Swiss embroidery machines. Also, the company is setting up
capacity for manufacturing special yarn for a customer in Turkey
that would further drive improvement in the operating margin over
the medium term. Furthermore, the upgrade reflects improvement in
the net worth of the company primarily driven by infusion of
fresh equity by the promoters.

The ratings reflect Supreme's weak financial risk profile and
customer concentration in the revenue profile. These rating
weaknesses are partially offset by the promoters' extensive
experience in the textile industry.

Outlook: Stable

CRISIL believes that Supreme will maintain its current credit
risk profile on the back of healthy growth in the revenue and
improving operating margin. Supreme's financial risk profile,
however, remains constrained by weak debt service coverage
measures and high gearing. The outlook may be revised to
'Positive' if there is significant improvement in the capital
structure most likely due to reduction in working capital
requirement, or increase in the operating margin leading to
stronger cash accruals. Conversely, the outlook may be revised to
'Negative' if the company takes on more-than-expected debt to
fund capital expenditure, or if slowdown in growth in revenue
leads to reduced cash accruals.

                         About Supreme India

Supreme, incorporated in 1995, is promoted by Mr. Jugal Kishore
Jhawar and his brothers in Surat (Gujarat). The company
undertakes value-added work such as embroidery, sequencing, zari,
and handwork on synthetic fabrics. Mr. Jhawar has been in the
textile industry since 1980.

Supreme reported a profit after tax (PAT) of INR21 million on net
sales of INR 1.56 billion for 2010-11, as against a PAT of
INR19 million on net sales of INR1.21 billion for 2009-10.


SURYA EXIM: CRISIL Reaffirms 'CRISIL BB' Rating on INR75MM Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Surya Exim Ltd
continue to reflect the extensive experience of SEL's promoter in
the trading business and its diversified product portfolio.

   Facilities                        Ratings
   ----------                        -------
   INR75.0 Million Cash Credit       CRISIL BB/Stable
(Reaffirmed)
   (Enhanced from INR30.0 Million)

   INR1000 Million Letter of Credit  CRISIL A4+ (Reaffirmed)
   (Enhanced from INR500.0 Million)

These rating strengths are partially offset by SEL's limited
financial flexibility because of its modest net worth, average
debt protection metrics, and less-than-adequate risk management
systems.

Outlook: Stable

CRISIL believes that SEL will continue to benefit over the medium
term from its increased scale of operations and established
relationships with customers and suppliers. The outlook may be
revised to 'Positive' if the company's financial risk profile
improves because of sustained improvement in its operating margin
or additional equity infusion by its promoter. Conversely, the
outlook may be revised to 'Negative' if SEL's financial risk
profile and risk coverage indicators deteriorate further, or if
its operations are disrupted by adverse regulatory events.

                         About Surya Exim

SEL was incorporated in 1989 and promoted by Mr. R L Saboo. The
company initially traded consumer durables and home appliances.
In 2000, SEL was acquired by Mr. J P Saboo, son of Mr. R L Saboo.
Thereafter, it switched to trading coal and later to importing
and trading specialised polyester filament yarn. In 2009, SEL
further diversified into newer product segments, such as poly
film, polyvinyl chloride resin, and computer hardware. In 2010-11
(refers to financial year, April 1 to March 31), the company's
revenue profile was fairly diversified. SEL's business is centred
in Surat (Gujarat) and it has branch offices in Ahmedabad
(Gujarat) and Nagpur (Maharashtra).

SEL reported a profit after tax (PAT) of INR46.1 million on net
sales of INR6.15 billion for 2010-11, against a PAT of
INR21.0 million on net sales of INR2.02 billion for 2009-10.


TROPICANA LIQUID: CRISIL Reaffirms 'CRISIL BB' Loan Ratings
-----------------------------------------------------------
CRISIL's rating on the bank facilities of Tropicana Liquid
Storage Pvt Ltd continues to reflect the extensive industry
experience of TLS's management, the financial and management
support that TLS receives from its parent, Tropicana Trading
DMCC, and TLS's moderate financial risk profile marked by low
gearing and moderate debt protection metrics.

   Facilities                        Ratings
   ----------                        -------
   INR50.00 Million Long-Term Loan   CRISIL BB/Stable
(Reaffirmed)
   INR40.00 Million Proposed LT      CRISIL BB/Stable
(Reaffirmed)
   Bank Loan Facility

These rating strengths are partially offset by TLS's small scale
of operations and limited revenue diversity, and uncertainty
regarding its future business plans.

Outlook: Stable

CRISIL believes that TLS will continue to benefit from its
established relationships in the terminal storage segment,
industry experience of its management, and support that it gets
from TTDMCC. The outlook may be revised to 'Positive' if TLS
scales up its operations significantly, improves its operating
margin, and diversifies its revenue profile, leading to more-
than-expected cash accruals. Conversely, the outlook may be
revised to 'Negative' in case of unexpected termination of TLS's
rental contracts, or if the company's financial risk profile
deteriorates because of decline in operating margin or weakening
in capital structure as a result of larger-than-expected, debt-
funded capital expenditure programme.

                      About Tropicana Liquid

Set up in 2005 in Kochi (Kerala), TLS is a 68 per cent subsidiary
of Tropicana Logistics Ltd (TLL). TLS earns rental income by
leasing out its six liquid storage terminals at the Karwar port
(Karnataka) - five heat-raised tanks with a combined capacity of
16,122 kilolitres, and one 4022-kilolitre non-heat-raised tank.
TLS is part of the Tropicana group, based in Dubai; the group is
into diverse businesses, such as trading in petroleum products,
tourism and hospitality, chartering out chemical and oil tanks,
leasing out liquid storage terminals, and power generation. TLL
is a 90 per cent subsidiary of TTDMCC. TLL and TTDMCC are based
in Dubai.

TLS reported, on provisional basis, a profit after tax (PAT) of
INR3.9 million on net sales of INR104.7 million for 2010-11
(refers to financial year, April 1 to March 31); the company
reported a PAT of INR1.4 million on net sales of INR178.6 million
for 2009-10.


VASUNDHARA COTTON: ICRA Cuts INR17.65cr Loans Rating to [ICRA]BB-
-----------------------------------------------------------------
ICRA revises the long term rating assigned to the INR17.65 crore
(enhanced from INR13.75 crore) term loans, INR11.0 crore
(enhanced from INR4.50 crore) cash credit facility and INR0.46
crore (reduced from INR0.58 crore) long term non fund based
working capital facility of Vasundhara Cotton Mills Private
Limited to '[ICRA]BB-' from 'LBB'.  The outlook for the rating is
Stable.

ICRA has also reaffirmed the '[ICRA]A4' rating assigned to the
INR1.65 crore (enhanced from INR0.80 crore) short term fund based
limits of Vasundhara Cotton Mills Private Limited.

The rating revision takes into account the deterioration in the
financial risk profile, aggravated by loss on high cotton
inventory in the current financial year due to sharp fall in
cotton prices. With declining operating profitability and
increasing cost of funds as in H1, FY 2012 debt metrics are
expected to remain under pressure. Capital structure also remains
weak on account of past debt-funded capital expenditure and high
working capital intensity of the business. The ratings remain
constrained on account of its small scale of operations which
restricts the company's procurement efficiencies and scale
economics in the highly competitive and fragmented industry in
which the company operates. The ratings take into account the
vulnerability of operating margins to volatility in cotton prices
and inventory risks associated with maintaining high inventory
levels as raw material availability is seasonal. ICRA also notes
that the spinning industry is exposed to regulatory risks on
account of frequent changes in government policy.

The ratings also favorably factor in the domain expertise and
long standing experience of the promoters in the cotton ginning
and trading business. They also favor the proximity of the
manufacturing facility to the cotton growing areas reducing the
risks associated with the availability of raw materials and
logistic costs and improved prospects for Indian yarn in the
export markets.

                      About Vasundhara Cotton

Vasundhara Cotton Mills Private Limited, incorporated on June 24,
2005, is primarily engaged in production of cotton yarn in counts
ranging from 38s to 60s. VCMPL has spinning facilities located in
Guntur District with an aggregate installed capacity of 18,000
spindles.  The company commenced commercial production with 3,600
spindleage from June, 2007 after its manufacturing facilities at
Guntur became operational, and at full capacity of 14,400
spindles from December 2007. The project was set up with support
from Technology Upgradation Fund Scheme under the Central
Government.

Recent results:

As per the audited numbers, the company recorded a net profit of
INR2.6 crore on operating revenues of INR34.2 crore in FY 2011 as
against a net profit of INR2.2 crore on operating revenues of
INR20.7 crore for FY 2010.


YASH AGRO: CRISIL Assigns B- Rating to INR246.2MM Term Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the bank
facilities of Yash Agro Energy Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR246.2 Million Term Loan       CRISIL B-/Stable (Assigned)
   INR50 Million Funded Interest    CRISIL B-/Stable (Assigned)
   Term Loan

The rating reflects YAEL's weak financial risk profile, marked by
a small net worth and weak liquidity, and susceptibility to
volatility in prices of raw materials. These rating weaknesses
are partially offset by YAEL's moderate business risk profile,
marked by the benefits derived from its strategic location and
promoter's experience in agriculture business.

Outlook: Stable

CRISIL believes that YAEL's liquidity will remain weak over the
medium term. The outlook may be revised to 'Positive' if YAEL
improves its liquidity and debt protection metrics, while
maintaining its profitability. Conversely, the outlook may be
revised to 'Negative' if YAEL's profitability declines sharply.

                         About Yash Agro

YAEL, formed in 1992, deals in power generation through bio-mass
(rice husk) based co-generation. It has set up an 8 megawatt-(MW)
power plant at village Kolari in the Chandrapur district of
Maharashtra. The primary fuel for the power plant is rice
husk/saw dust. The plant began commercial operations in January
2009. Till 2009, the company was trading in agricultural goods.

YAEL's profit after tax (PAT) and net sales are estimated at
INR9.8 million and INR343.4 million respectively for 2010-11
(refers to financial year, April 1 to March 31); the company
reported a net loss of INR3.5 million on net sales of INR378.9
million for 2009-10.


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


BANK CENTRAL: Fitch Affirms Issuer Default Rating at 'BB+'
----------------------------------------------------------
Fitch Ratings has affirmed PT Bank Central Asia Tbk's Long-Term
Foreign Currency Issuer Default Rating (IDR) at 'BB+' with
Positive Outlook, and National Long-Term rating at 'AAA(idn)'
with Stable Outlook.

The ratings reflect BCA's improved and consistently strong
underlying financial performance, solid asset quality and
satisfactory capital.  Fitch notes that BCA's financial
performance is one of the strongest among its domestic peers,
underpinned by an established franchise in transaction banking
and the third-largest deposit-taking in Indonesia supported by an
extensive distribution network.

The Positive Outlook on the Long-term IDR reflects Fitch's
expectations that the bank's already strong performance will
benefit from resilient economic conditions in Indonesia.  The
impact of global economic downturn is expected to remain
contained for the Indonesian economy.  Fitch may upgrade BCA's
Long-Term IDR if the operating environment and economic outlook
improve further.  The ratings will also rely on the bank's
ability to maintain its profitability and capital, without
significantly compromising its strong asset quality.

BCA's profitability remained strong with a return on assets of
2.9% at end-June 2011 (end-2010: 2.8%), underpinned by improved
net interest margins, a larger loan base, strong fee-based income
and manageable credit costs.  Its strong profitability and high
provision cover should continue to provide a strong buffer should
economic conditions become more challenging.  Based on Fitch's
stress test, the bank has the highest credit cost absorption
capacity compared with the 10 other Indonesian banks (accounting
for around 60% of system assets) that Fitch rates.

The bank's non-performing loans (NPLs) remained stable at 0.6% of
gross loans at end-H111 and 2010 and were well below its peers'.
The provision cover remained strong at 3.3x of NPLs in H111,
reflecting a generally prudent provisioning policy.  Total
restructured loans remained below 1% of total loans.  BCA
remained well-capitalized with low impairment risk given its
strong profitability and provision cover.  BCA's Tier 1 and total
CAR slightly improved to 13.2 and 14.5% respectively at end-June
2011 (2010: 12.8% and 14.1%), due to strong retained earnings in
2010 and slower loan growth in H111.

Established in 1957, BCA is the third-largest bank in Indonesia,
accounting for 10.6% of total system assets at end-June 2011.  It
is majority-owned by the Hartono family through FarIndo
Investment (Mauritius) Ltd q.q. (47.15% at end-June 2011).
Despite this, BCA has been professionally run with minimal
changes to the Board of Directors since 2002.

BCA's ratings:

  -- Long-Term Foreign Currency IDR affirmed at 'BB+';
     Outlook Positive
  -- National Long-Term rating affirmed at 'AAA(idn)';
     Outlook Stable
  -- Short-Term Foreign Currency IDR affirmed at 'B'
  -- Viability Rating affirmed at 'bb+'
  -- Individual Rating affirmed at 'C/D'
  -- Support Rating affirmed at '3'
  -- Support Rating Floor affirmed at 'BB'


MERPATI NUSANTARA: Resumes Flights After Fuel Supply Embargo
------------------------------------------------------------
The Jakarta Post reports that the flights of ailing state-owned
Merpati Nusantara Airline across Indonesia returned to normal on
Sunday, after state oil and gas firm PT Pertamina had stopped
supplying aviation fuel (avtur) to the ailing airline on
Saturday.

"We are operating normally today as there are no more stoppages
of fuel from Pertamina," Merpati president director Sardjono
Jhony told The Jakarta Post over the phone on Sunday.

The Jakarta Post recalls that Pertamina stopped fueling the
airline on Saturday at Juanda International Airport in Surabaya,
East Java, and at Sultan Hasanuddin International Airport in
Makassar, South Sulawesi, disrupting the airline's schedules,
especially in eastern Indonesia.

Based on Pertamina data, the report says, the airline is in
arrears of IDR270 billion (US$30.52 million).

According to the report, Mr. Sardjono said Merpati returned to
business normally on Sunday after meeting with officials from the
State-Owned Enterprises Ministry.

The Jakarta Post relates that Merpati has promised to settle its
fuel debt after state management asset firm PT Perusahaan
Pengelola Aset (PT PPA) guaranteed its finances with a
restructuring fund worth IDR561 billion.

However, Mr. Sardjono refused to comment immediately on when the
PT PPA would disburse the much-needed funds to help Merpati, the
report notes.

Separately, The Jakarta Post reports that Pertamina spokesman
Mochamad Harun said the company had launched the fuel embargo
against Merpati because the airline had not tried to repay its
debt by installments.

"We do not want Merpati's inefficiency to affect us. We are not a
subsidy institution," Mr. Mochamad told the Post by telephone on
Saturday.

Headquartered in Jakarta, Indonesia, PT Merpati Nusantara
Indonesia -- http://www.merpati.co.id/-- is a state-owned
carrier that services predominantly international routes.  The
carrier is facing the threat of being declared bankrupt with
IDR1.6 trillion in accumulated losses.

                          *     *     *

According to press reports, Merpati has suffered from high fuel
prices and hurt by the weaker rupiah.  The bombings in Bali in
October 2005 hit the airline pretty hard in its revenue flow.
The airline is also struggling to cope with new competition
within Indonesia, both from domestic airlines and from other
airlines coming into Indonesia internationally.

The Troubled Company Reporter-Asia Pacific reported on July 24,
2004, that the Indonesian Government invited applications from
financial and legal advisers to help devise a privatization
scheme for the carrier.  The Government proposed a strategic
sale of the state's 51% stake in Merpati to help fund the
carrier's operations.  The state was also considering a IDR220
billion debt-for-equity swap.

The TCR-AP, citing Jakarta Globe, reported on May 19, 2011, State
Enterprises Minister Mustafa Abubakar said the financial
restructuring of Merpati Nusantara Airlines will carry on despite
a recent crash that led to questions about the safety of its
fleet.

Jakarta Globe said Merpati was under the care of the state-asset
management company Perusahaan Pengelola Aset, which has injected
hundreds of billions of rupiah to bring it back to profitability.
But after the crash of a Merpati MA-60 that killed 25 people on
May 7, 2011, pressure is building to let the airline go under.


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


BANK OF TOKYO: Moody's Bond Ratings Incorporate 'C' BFSR
--------------------------------------------------------
Moody's Japan K.K. has assigned an Aa3 rating to the senior
unsecured bonds issued by The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(BTMU).  The rating outlook is stable.

These are takedowns from the bank's JPY 2 trillion domestic shelf
registration (effective February 21, 2010), which is rated
(P)Aa3.
The bond issues are:

Series 128 JPY 10 billion domestic senior unsecured bond, due
October 20, 2014

Series 129 JPY 40 billion domestic senior unsecured bond, due
October 20, 2016

Series 130 JPY 10 billion domestic senior unsecured bond, due
October 20, 2021

Rating Rationale

The Aa3 ratings of BTMU incorporate 1) BTMU's standalone BFSR of
C, equivalent to a Baseline Credit Assessments (BCA) of A3, 2)
Moody's assessment of "very high" systemic support probability,
and 3) the systemic support input of Aa2 (JGB rating at Aa3 plus
1) for Japan.

The C bank financial strength rating (BFSR) reflects Moody's
overall assessment of Mitsubishi UFJ Financial Group Inc. (MUFG)
as a medium-C range institution with adequate financial standing,
including the following factors: 1) MUFG's valuable franchise in
Japan's retail/wholesale banking and fiduciary markets; 2) the
higher volatility in its profitability and revenue structure; 3)
its high concentration risk in Japanese corporate credit, and its
equity risk relative to earnings and capital.

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

The Bank of Tokyo-Mitsubishi UFJ, Ltd., headquartered in Tokyo,
is one of the largest banks in Japan.


EAST STREET: Moody's Cuts Rating on JPY5-Bil. Notes to 'Caa3'
-------------------------------------------------------------
Moody's Japan K.K. has downgraded its ratings on 4 classes of the
Series 1, 2 classes of Series 2 issued by East Street Referenced
Linked Notes 2002-1 and 3 classes issued by East Street
Referenced Linked Notes 2004-1.

At the same time, Moody's has confirmed the ratings on 2 classes
of the Series 2 issued by East Street Referenced Linked Notes
2002-1.

Deal Name: East Street Referenced Linked Notes 2002-1 Series 1

JPY23.0 billion Class X1 Notes, downgraded to A1 (sf);
previously
on June 14, 2011, Aa1 (sf) placed under review for possible
downgrade

JPY10.0 billion Class A Notes, downgraded to Ba2 (sf);
previously
on June 14, 2011, Baa2 (sf) placed under review for possible
downgrade

JPY6.0 billion Class B Notes, downgraded to Caa1 (sf);
previously
on June 14, 2011, Ba3 (sf) placed under review for possible
downgrade

JPY5.0 billion Class C Notes, downgraded to Caa3 (sf);
previously
on June 14, 2011, Caa2 (sf) placed under review for possible
downgrade

Deal Name: East Street Referenced Linked Notes 2002-1 Series 2
JPY15.0 billion Class X2 Notes, confirmed at Aa1 (sf); previously
on June 14, 2011, Aa1 (sf) placed under review for possible
downgrade

JPY9.0 billion Class X1 Notes, downgraded to A3 (sf); previously
on June 14, 2011, A2 (sf) placed under review for possible
downgrade

JPY4.875 billion Class A Notes, downgraded to Ba2 (sf);
previously on June 14, 2011, Ba1 (sf) placed under review for
possible downgrade

JPY4.5 billion Class B Notes, confirmed at Caa1 (sf); previously
on June 14, 2011, Caa1 (sf) placed under review for possible
downgrade

Deal Name: East Street Referenced Linked Notes 2004-1

JPY18.75 billion Class X1 Notes, downgraded to A3 (sf);
previously on June 14, 2011, A2 (sf) placed under review for
possible downgrade

JPY7.5 billion Class A Notes, downgraded to B3 (sf); previously
on June 14, 2011, Ba3 (sf) placed under review for possible
downgrade
JPY3.75 billion Class B Notes, downgraded to Caa3 (sf);
previously on June 14, 2011, Caa2 (sf) placed under review for
possible downgrade

These transactions are structured finance CDO (SF CDO)
referencing ABS, RMBS, CMBS, and CDO assets, more than 70% of
which are Japanese assets.

Rating Rationale

The rating downgrades reflect the deterioration in the credit
quality of the referenced pools and the fact that the ratings of
some assets in the ABS and CMBS sector have been downgraded, or
placed under review for possible downgrade.
Two classes of Series 2 were confirmed because their current
rating levels can be maintained despite such deterioration.
In its expected loss analysis, Moody's applied the Monte Carlo
simulation framework within CDOROM to model the loss distribution
for SF CDOs.

In its determination of the ratings, Moody's performed
sensitivity analysis on the varying probability of default and
the recovery assumptions of the referenced assets, including for
those ratings under review for possible downgrade. In June 2011,
the notes were placed under review for possible downgrade.

The principal methodology used in this rating was Moody's
Approach to Rating SF CDOs published on December 9, 2010, and
available on www.moodys.co.jp.

Moody's did not receive, or take into account a third-party due
diligence report on the underlying assets, or financial
instruments related to the monitoring of this transaction in the
past six months.


JLOC XXXI: Fitch Junks Rating on Two TBI Classes
------------------------------------------------
Fitch Ratings has downgraded JLOC XXXI Trust's trust beneficiary
interests (TBIs) due February 2015.  The transaction is a
Japanese multi-borrower type CMBS securitisation.  The rating
actions are as follows:

  -- JPY1.7bn* Class A TBIs downgraded to 'Asf' from 'AAsf';
     Outlook Stable

  -- JPY0.5bn* Class B TBIs downgraded to 'BBsf' from 'BBB-sf ';
     Outlook Negative

  -- JPY0.2bn* Class C TBIs downgraded to 'CCCsf' from 'Bsf';
     assigned a Recovery Rating of 'RR5'

  -- JPY0.3bn* Class D TBIs downgraded to 'CCsf' from 'CCCsf';
     Recovery Rating revised to 'RR6' from 'RR5'

*as of October 13, 2011

The downgrade reflects Fitch's downward revision of the value of
four out of the eight underlying properties.  Fitch has revised
down its cash flow estimates for two properties, taking into
account their recent weak cash flow performance.  The agency also
adopted higher capitalization rates for all the properties, as
two underlying loans are either in default or in special
servicing and the remaining two loans are approaching their
maturity, in turn negatively affecting the property valuations.

The Negative Outlook on the class B TBIs reflects high
sensitivity to further downward revision of property valuation,
even though the revised valuation is considered by Fitch to be
conservative.

The TBIs' principal repayment waterfall is set up on a portfolio
basis.  Initially, the underlying loans were divided into two
portfolios (Portfolio 1 and Portfolio 2) and each class of TBIs
consisted of two allocated portions, corresponding to each
portfolio.  Five underlying loans of Portfolio 1 were repaid in
full since the last rating action in October 2010, resulting in
full redemption of the allocated portion of class A to D TBIs,
related to Portfolio 1.  However, no underlying loan has been
repaid in full and no property has been sold from the Portfolio 2
during the same period.

The rating actions dated 13 October 2011 on Morgan Stanley, which
acts as credit support provider for the swap counterparty, has
not affected the rating actions on this transaction.

The transaction was initially a securitisation of 22 loans backed
by 62 properties.  The transaction is currently backed by four
loans of Portfolio 2, ultimately secured by eight properties.


JLOC XXXIII: S&P Lowers Rating on Class D Certificate to 'D'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' from 'CC
(sf)' its rating on the class D trust certificates issued under
the JLOC XXXIII Trust Certificate transaction.

Collection activities relating to one of the transaction's
remaining specified bonds (the specified bond originally
represented 14.2% of the total initial issuance amount of the
trust certificates) have been completed, and as a result, the
principal on the specified bond has been impaired. "We downgraded
class D because we have confirmed that part of the principal on
class D has been written off," S&P said.

JLOC XXXIII is a multiborrower commercial mortgage-backed
securities (CMBS) transaction. The trust certificates were
originally secured by five nonrecourse loans and five specified
bonds. The loans and specified bonds were initially backed by a
total of 110 real estate properties and real estate beneficial
interests owned by nine obligors. The transaction was arranged by
Morgan Stanley Japan Securities Co. Ltd., and ORIX Asset
Management & Loan Services Corp. acts as the servicer for this
transaction.

Rating Lowered

JLOC XXXIII
JPY67.8 billion trust certificates due July 2013
issued on Nov. 16, 2006

Class    To        From       Initial issue amount
D        D (sf)    CC (sf)    JPY7.5 bil.


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


KOREA EXCHANGE: Court Verdict to Expedite Sale Process
------------------------------------------------------
The Korea Herald reports that market watchers said that Lone Star
Funds' decision not to appeal a Seoul court verdict is expected
to speed up Lone Star's long-stalled plan to sell its controlling
stake in Korea Exchange Bank, clearing legal uncertainties that
have blocked the sale.

According to the news agency, sources said Lone Star, which owns
a 51.02% stake in KEB, has decided not to appeal a court ruling
that found the U.S. private equity firm guilty of stock
manipulation charges.

Earlier in October, the Korea Herald recalls, the Seoul High
Court found the U.S. buyout firm and its former South Korean unit
chief Paul Yoo guilty of manipulating stock prices and imposed
fines of KRW25 billion (US$22 million) and KRW4.3 billion,
respectively. Both parties were given a one-week deadline to
appeal the verdict, the report notes.

The Korea Herald states that the decision is expected to expedite
a KRW4.41 trillion deal between Lone Star and Hana Financial
Group Inc. that has been in legal limbo since the Financial
Services Commission indefinitely delayed approval, citing the
lawsuit over Lone Star's stock manipulation charges in its 2003
purchase of a KEB credit card unit.

Following recent court ruling, the report notes, the FSC said it
may order Lone Star to sell the bulk of its KEB stake if it fails
to meet legal requirements as the lender's major shareholder.

"If Lone Star gives up on lodging an appeal, the legal
uncertainties will be completely repelled. There is no reason for
the government to take further time," an FSC official said,
adding the government will soon announce its decision after going
through a legal review.

                      About Korea Exchange Bank

Korea Exchange Bank -- http://www.keb.co.kr/-- established in
1967, is one of seven national banks in South Korea with over
300 domestic branches and 28 overseas networks, including
Canada, the United States, Panama and Germany, constituting the
most extensive global banking network of any Korean bank.  KEB
Futures -- http://www.kebf.com/-- is a clearing member of KOFEX
and is a subsidiary of Korea Exchange Bank, the official F/X
settlement bank for Korean Futures Exchange.

                          *     *     *

Korea Exchange Bank continues to carry Moody's Investors Service
"C-" Bank Financial Strength Rating.


KOREA LINE: Seoul Court Approves Revival Plan
---------------------------------------------
Bloomberg News reports that Korea Line Corp. said Seoul Central
District Court approved its revival plan.

Bloomberg, citing regulatory filings on October 14, relates that
the shipping company will reduce capital by cancelling shares and
sell 16.6 million new shares.

Korea Line Corp. has been engaged in marine transport and port
logistics businesses since 1968.  Its head office is in Seoul,
Korea, and its representative offices are in Shanghai and
Singapore.  KLC is a publicly listed company on the Korean Stock
Exchange.  Its operations are centered in Korea and the vas
majority of its assets, shareholders and employees are located in
Korea.

Korea Line Corp. filed for Chapter 15 bankruptcy protection
(Bankr. S.D.N.Y. Case No. 11-10789) in the U.S. to bar creditors
from seizing its shipping vessels and bunkers at U.S. ports.

Receivers Jin Bang Lee and Byung Nam Choi estimated that the
Debtor has US$100 million to US$500 million in debts and assets
as of the Chapter 15 filing date in Manhattan.

Korea Line is undergoing rehabilitation before the Seoul Central
District Bankruptcy Court (4th Division), Case No. 2011 Hoe-Hap
14, pursuant to the Korean Debtor Rehabilitation and Bankruptcy
Act.

KLC's liquid assets as of January 2011 totaled US$60,655,000,
while the funds necessary for repayment of debts and operating
expenses in February 2011 is US$186,964,000 and in March 2011,
US$170,163,000.   KLC's operating income will not be sufficient
to cover these amounts, with an expected shortfall of
US$35,932,000 in March of 2011.

KLC applied for rehabilitation in Korea under the DBRA on Jan.
26, 2011.  The Korean court issued a stay order prohibiting
attachment and execution of KLC's property on Jan. 26, 2011.
Rehabilitation proceedings commenced Feb. 15, 2011, with the
appointment of the receivers.


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


KIA KAHA: Liquidation Hits Greytown Football Club
-------------------------------------------------
Sarah Hardie at Wairarapa Times Age reports that Greytown
Football Club may be left out of pocket after Kia Kaha Clothing's
collapse.

The report relates that club members are worried they won't
receive the new team shirts ordered, or a NZ$700 deposit paid to
the Kia Kaha Clothing, which went into liquidation two months
ago.

According to the report, President Paul Southey said the club had
been working with the company for six months putting a design
together, and handed over the deposit two days before the company
was put into liquidation.

"We've been doing all sorts of fundraising to pay for it, we've
done working bees and raffles and things like that - all the
money has come out of individual members' pockets. So we sent the
money to them, and even though they went into liquidation, they
promised us that they would still finish the design and get the
shirts out to us," the report quotes Mr. Southey as saying.

On Thursday, the report recalls, committee member Seanoa Isaac,
who championed the new design, was told by phone the shirts were
ready to be made the next day.  But on Friday, Mr. Isaac was told
the directors had gone to the United Kingdom.

The company was put into liquidation by the Inland Revenue over
unpaid tax bills of NZ$198,613.95, the report discloses.

Wairarapa Times Age relates that Liquidator John Fisk of
PricewaterhouseCoopers said the directors had planned to finish
the order, but it became financially impossible.  "We looked at
the numbers and couldn't make it work, so it became an unsecured
claim.  So unfortunately their order won't be finished, but that
was the risk they took," Mr. Fisk said.


LOMBARD FINANCE: Directors Plead Not Guilty
-------------------------------------------
BusinessDesk reports that the directors of failed lender Lombard
Finance & Investments pleaded not guilty to claims they published
untrue statements in a prospectus and investment statement
leading up to its eventual collapse in 2008.

In the High Court in Wellington, chief executive Michael Reeves,
and three directors -- former Cabinet Ministers Doug Graham and
Bill Jeffries, and Lawrence Bryant -- pleaded not guilty to five
counts relating to claims they made untrue statements in a 2007
prospectus, investment statement and advertising material,
according to BusinessDesk.

BusinessDesk relates that Crown prosecutor Colin Carruthers said
in his opening address that the statements mislead investors
about Lombard Finance's ability to meet its debt obligations to
investors as they fell due, saying liquidity was a different test
to solvency.

Mr. Carruthers also said the documents didn't adhere to Lombard
Finance's credit and governance policies, the report says.

The Financial Markets Authority, formerly Securities Commission,
last year laid civil and criminal proceedings against the
directors.

                        About Lombard Finance

Lombard Finance & Investments Limited is a wholly owned
subsidiary of Lombard Group, a diversified company specializing
in the financial services sector offering a number of lending
options and providing investment opportunities for its
shareholders and investors.

Lombard Finance was placed into receivership on April 10, 2008,
by its trustee, Perpetual Trust Limited.  PricewaterhouseCoopers
partners John Fisk and John Waller have been appointed receivers
of the company.  The receivership also applies to three other
subsidiaries of Lombard Group, being Lombard Asset Finance
Limited, Lombard Property Holdings Limited and Lombard Asset
Finance No 2 Limited.  The receivership does not impact on
Lombard Group Limited.

The company owed NZ$127 million to 4,400 investors.


NZF MONEY: Parent Still Optimistic Amid Receivership
----------------------------------------------------
Radio New Zealand News reports that finance and investment firm
NZF said it is optimistic about the year ahead despite expecting
further losses over the failure of its subsidiary NZF Money - now
in receivership.

Shareholders were told at the company's annual meeting on Friday
that a deal with Resimac NZ Home Loans, a unit of the Australian
non-bank lender, to take a majority stake in NZF Group's
securitization operations is crucial to the company's ongoing
success, according to Radio New Zealand News.

NZF Chief Executive Mark Thornton said the deal with Resimac is
still conditional but the conditions are not onerous and he
believes they can be relatively quickly resolved, allowing the
deal to be completed by Christmas, Radio New Zealand News notes.

Radio New Zealand News discloses that Mr. Thornton said that once
the deal is finalized with the deal finalized, the company will
have access to cash at group level and it will also give a "go-
forward" for NZF's securitization vehicle.

Mr. Thornton said the company will write off NZ$10 million in
equity from the failure of NZF Money, the report discloses.

Radio New Zealand News adds that the deposit-taking subsidiary of
NZF Group was put in receivership in July after its parent failed
to secure short-term funding to keep the finance company afloat.


YARROWS BAKERS: EPMU Welcomes Firm's Sale to John & Rosaleen
------------------------------------------------------------
The Engineering, Printing and Manufacturing Union (EPMU) is
welcoming the sale of the troubled baking business Yarrows to
John and Rosaleen Yarrow and is looking forward to working with
the new owners to restore the iconic Taranaki company to its
former status as a proud and profitable local employer.

Yarrows, one of New Zealand's last independent bakers, were put
into receivership in May this year resulting in a company
restructure that saw about 60 workers being made redundant out of
a staff of 200.

The EPMU represents the majority of the production workers at
Yarrow's Manaia facility in South Taranaki and has worked closely
with the receivers, accounting firm BDO, to minimize job losses
and ensure the continuity of production while they finalized the
sale of the bakery.

"Keeping a close family connection to the Yarrows is welcome news
and represents a new beginning as well as a return to the
traditions that made Yarrows Bakery such an important employer in
the region and a brand recognised throughout the country," says
EPMU Lead Organiser, Wayne Ruscoe.

The EPMU will be consulting with its members over the next few
days about the way forward under Yarrows new owners and also the
process for recovering monies owed as a result of the
receivership.

"We look forward to working with the new owners to ensure that
Yarrows the Baker's enjoys a smooth transition out of
receivership and gets back on its feet financially."

Founded in 1923, Yarrows (The Bakers) Limited is one of the last
independent bakeries in New Zealand.  It began exporting in the
late 1970s and in 1996, won the contract for the Subway sandwich
chain throughout Australasia.  It produces 30,000 frozen dough
rolls a week for Subway in New Zealand, Australia, and parts of
Asia.


* NEW ZEALAND: Business Insolvency Rate Drops 20% in Sept Quarter
-----------------------------------------------------------------
BusinessDesk.co.nz reports that credit checking agency Dun &
Bradstreet said New Zealand is now experiencing one of the lowest
rates of business insolvency among developed countries it
monitors, but that a surge in Australian failures means kiwi
firms can't be complacent.

Releasing the results of the latest D&B Global Insolvency Index,
the agency's local general manager John Scott said strong
commodity prices and low interest rates appeared to be key
reasons for the number of insolvencies in the September quarter
falling by 20% compared to June 2010, BusinessDesk.co.nz relates.

According to the report, only Latvia ranked better for insolvency
rate improvements than New Zealand, among the countries D&B
monitors, with a 50 point advantage over Australia, 25 points
better than Britain, and 18 index points ahead of the U.S.

Some 670 business failures were reported in New Zealand in the
September quarter, compared with 850 in the same quarter last
year, the report relays.

However, the rapid decline in business conditions in Australia
was cause for concern.

"Australia now sits on a par with indebted Eurozone countries
such as Italy, Spain and Hungary, despite having a booming mining
sector," the report quotes Mr. Scott as saying.  There had been
almost 1,000 Australian business failures in July alone, the
report notes.

"Given that Australia is our largest two-way trading partner and
accounts for $17.7 billion in total trade, it is crucial that
kiwi businesses do not take our lowered insolvency figures for
granted."

BusinessDesk.co.nz adds that the index result also suggests that
many businesses continue to face cash flow constraints, with the
average time to pay invoices at 46 days, two days longer than a
year ago.


=================
S I N G A P O R E
=================


BARLIAN SHIPPING: Court to Hear Wind-Up Petition Oct. 28
--------------------------------------------------------
A petition to wind up the operations of Barlian Shipping &
Trading Pte Ltd will be heard before the High Court of Singapore
on
Oct. 28, 2011, at 10:00 a.m.

Tham Hai Lee filed the petition against the company on Oct. 3,
2011.

The Petitioner's solicitors are:

         M/s S Nabham (Advocate & Solicitor)
         6001 Beach Road #16-04
         Golden Mile Tower
         Singapore 199589


BEXCOM PTE: Creditors' Proofs of Debt Due Oct. 26
-------------------------------------------------
Creditors of Bexcom Pte Ltd, which is in liquidation, are
required to file their proofs of debt by Oct. 26, 2011, to be
included in the company's dividend distribution.

The company's liquidators are:

          Seshadri Rajagopalan
          Aaron Loh Cheng Lee
          One Raffles Quay
          North Tower Level 18
          Singapore 048583


BUSINESSWORLD INT'L: Court to Hear Wind-Up Petition Oct. 28
-----------------------------------------------------------
A petition to wind up the operations of Businessworld
International Pte Ltd will be heard before the High Court of
Singapore on Oct. 28, 2011, at 10:00 a.m.

Universal Sovereign Trading Pte Ltd filed the petition against
the company on Oct. 4, 2011.

The Petitioner's solicitors are:

         Drew & Napier LLC
         10 Collyer Quay
         #10-01 Ocean Financial Centre
         Singapore 049315


DOVECHEM HOLDINGS: First Meeting Set for Oct. 25
------------------------------------------------
The High Court of Singapore entered an order on Sept. 21, 2011,
to wind up the operations of Dovechem Holdings Pte Ltd.

Ng Joo Soon @ Nga Ju Soon filed the petition against the company.

The company will hold a meeting for its creditors and
contributories on Oct. 25, 2011, at 3:00 p.m. at 36 Robinson Road
#14-04 City House, in Singapore 068877.

The company's liquidators are:

         Hamish Alexander Christie
         Jason Aleksander Kardachi
         Borrelli Walsh Pte Ltd
         36 Robinson Road
         #14-04 City House
         Singapore 068877


ELECTROGLAS PRIVATE: Creditors' Proofs of Debt Due Oct. 28
----------------------------------------------------------
Creditors of Electroglas Private Limited, which is in creditors'
voluntary liquidation, are required to file their proofs of debt
by Oct. 28, 2011, to be included in the company's dividend
distribution.

The company's liquidator is:

          Yiong Kok Kong
          c/o 21 Merchant Road
          #05-01 Royal Merukh S.E.A. Building
          Singapore 058267


HENG SHENG: Creditors Get 100% Recovery on Claims
-------------------------------------------------
Heng Sheng Corporation Pte Ltd declared the first and final
dividend on Oct. 13, 2011.

The company paid 100% to the received claims.

The company's liquidators are:

         Chee Yoh Chuang
         Lim Lee Meng
         Stone Forest Corporate Advisory Pte Ltd
         8 Wilkie Road
         #03-08 Wilkie Edge
         Singapore 228095


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


BANK OF AYUDHYA: Moody's Raises Bank Finc'l Strength Rating to D+
-----------------------------------------------------------------
Moody's Investors Service has upgraded the standalone bank
financial strength rating (BFSR) of Bank of Ayudhya Public
Company Limited (BAY) to D+ from D.

The D+ BFSR now maps to Ba1 on Moody's long-term rating scale.
The outlook on the BFSR is stable.

At the same time, Moody's has affirmed BAY's Baa2/Prime-2 long-
term foreign currency deposit ratings.

Rating Rationale

"The upgrade of BAY's BFSR reflects the bank's achievements in
growing its franchise, especially in consumer lending, while also
improving its financial fundamentals, especially its
capitalization and asset quality," says Karolyn Seet, a Moody's
Assistant Vice-President and lead analyst for the bank.

"The upgrade also demonstrates Moody's expectation that BAY's
financial indicators will remain satisfactory in the medium
term," says Ms. Seet.

BAY's Tier 1 ratio has improved to 12.2% -- according to its
audited 2Q 2011 statements -- from 11.5% at end-2010. Moody's
views its capitalization as sufficient to absorb moderately
stressed credit losses under Moody's stress-test scenarios.
In the past two years, BAY has acquired the GE Money and American
International Group businesses in Thailand to strengthen its
activities in credit cards, consumer loans and auto loans. As a
result, its loan profile is very much retail focused -- 45% of
total gross loans -- generating industry-high net interest
margins of over 4.5%.

Moody's notes that BAY's asset quality has continued to improve
over recent years. While legacy non-performing loans (NPLs,
defined as loans 90+ days overdue) remain an issue, they have
declined to Bt35.6 billion (5.3% of gross loans) at end-June 2011
from Bt 55.7 billion (10.0%) at end-2008, due to active debt
management, NPL sales, and the minimal formation of new NPLs.
As with most other Thai banks, BAY's liquidity position is
tightening, as evidenced by a 122% loan-to-deposit ratio at the
end of 1H2011 (113% at end-2010). But, its sizable and stable
core deposit base accounted for nearly 80% of its funding at end-
2010, with a profile mainly in local currency. Moreover, the
loan-to-deposit ratio excludes bills of exchange issued to
customers, a product that has increasingly substituted for time
deposits in Thailand.

Looking ahead, however, the pricing of, and intense competition
for funding will likely constrain the growth and profitability of
the broader Thai banking sector, including BAY.
Against this backdrop, Moody's views BAY's risk appetite as
relatively conservative, with a focus mainly on select borrowers
with satisfactory credit standings. BAY maintains modest single-
borrower concentrations in its loan portfolio compared to other
Thai banks.

The stable rating outlook incorporates Moody's opinion that even
if BAY's credit costs exceed Moody's expectations, its capital
position should not deteriorate dramatically. The stable outlook
could withstand expected modest cyclical downward pressures on
asset quality and the expected effects of higher credit charges.
BAY's ratings have limited upside potential in the short term.
But the following factors could lead to upward pressure: (i) a
further dilution of credit concentrations; (ii) maintenance of
capital adequacy levels, such that the Tier 1 ratio continues to
exceed 10%; and (iii) its NPL ratio falling below 2%.

On the other hand, the stable outlook on the ratings could change
to negative if (i) the difficult operating environment in
Thailand worsens, and BAY's asset quality deteriorates such that
its new NPL formation rate reaches 2% of gross loans and its
annual credit costs reach 1% of gross loans; (ii) profitability
declines, such that pre-provision profits -- as a percentage of
risk-weighted assets -- fall below 2.5%; (iii) the bank's
liquidity worsens such that its loan-to-deposit ratio rises above
130%; and/or (iv) its capital adequacy declines significantly,
such that its Tier 1 ratio falls below 8%.


TMB BANK: Moody's Affirms 'D-' Bank Financial Strength Rating
-------------------------------------------------------------
Moody's Investors Service has affirmed the following ratings of
TMB Bank Public Company Limited (TMB): standalone D- bank
financial strength rating (BFSR), which maps to Ba3 on the long-
term scale; and Baa3/Prime-3 long-term foreign currency deposit.
All ratings have a stable outlook.

Moody's affirmation of TMB's ratings is based on the bank's
audited financial statements for 2010 and 1H 2011, as prepared
under local GAAP.

Rating Rationale

While TMB's financial condition has stabilized, its ratings
remain constrained by (i) low profitability metrics when compared
to its global and local peers; (ii) the burden of still high
albeit legacy non-performing loans (NPLs); and (iii) very high
single-borrower concentrations and weak efficiency ratios, again
when compared to its peers.

In recent years, TMB has been through a restructuring process
that has led to reductions in its loan book. While this has
helped stabilize the bank after a difficult period, its
profitability remains weak compared to other similar-sized Thai
banks and its "D-" rated peers. Pre-provision profits were only
1% of average risk-weighted assets for 2010.

In addition, the bank's loan portfolio has a very high degree of
single-borrower concentration, relative to core capital and
earnings. This is higher than both its local and global peers.
Such concentration exposes earnings to volatility, and may affect
asset quality in a downturn. Its top 20 loan exposures is over
700% of pre-provision profits.

On the other hand, Moody's observes that the ratings are
underpinned by (i) the size of its franchise as the seventh-
largest in Thailand, with a 5% share of loans, and 6% of assets
and deposits; (ii) the bank's stable funding and liquidity
profile; and (iii) its improving fundamentals after investing
three years in risk management, re-organisation, and branch
transformation.

On another positive note, TMB's asset quality has continued to
improve over recent years, though it is still weak when compared
to global peers. Non-performing loans (NPLs, defined as loans 90+
days overdue) declined to Bt32.6 billion (8.6% of gross loans) at
end-June 2011 from Bt 54.1 billion (14.7%) at end-2009, due to
active debt management, NPL sales and minimal formation of new
NPLs.

Its loan-loss reserve coverage ratio, though still low, increased
to 64% of gross loans at 1H 2011 from 54% at end-2010.
TMB's loan-to-deposit ratio is modest, as evidenced by an 84%
loan-to-deposit ratio at the end of 1H2011 (88% at end-2010). Its
stable core deposit base accounted for nearly 83% of its funding
at end- 2010, with a profile mainly in local currency.

TMB's Tier I capital ratio stood at 11.6% at the end of 1H 2011.
But, in stressed conditions, the bank's solvency is less
resilient than higher rated peers due to its relatively weaker
earnings and loan loss reserves cushion.

An upgrade of its stand-alone rating would require that its
financial performance in the next 18 months continues to improve,
such that (i) its NPL ratio declines below 4%; (ii) its Tier I
ratio remains above 10%; (iii) its single-borrower concentration
is significantly diluted; and/or (iii) its cost-to-income ratio
falls below 50%.

On the other hand, the stable outlook on the ratings could change
to negative if (i) the difficult operating environment in
Thailand worsens, and TMB's asset quality deteriorates such that
its new annual NPL formation rate reaches 1.5% of gross loans
and/or its annual credit costs reaches 0.75% of gross loans; (ii)
the loan-to-deposit ratio rises above 100%; and/or (iii) the
bank's capital adequacy declines significantly, such that its
Tier I ratio falls below 8%.

Principal Methodologies

The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007
,and Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: A Refined Methodology published in March 2007.

Headquartered in Bangkok, Thailand, TMB reported total assets of
Bt680 billion (US$22 billion) as of end-June 2011.


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


* BOND PRICING: For the Week Oct. 10 to Oct. 14, 2011
-----------------------------------------------------


Issuer                  Coupon    Maturity   Currency  Price
------                  ------    --------   --------  -----

  AUSTRALIA
  ---------

ADVANCE ENERGY           9.50    01/04/2015   AUD       1.07
AINSWORTH GAME           8.00    12/31/2011   AUD       1.30
AMITY OIL LTD           10.00    10/31/2013   AUD       2.03
AUSTRALIAN COMM          3.00    07/29/2049   AUD       5.00
BECTON PROP GR           9.50    06/30/2012   AUD       0.22
CHINA CENTURY           12.00    09/30/2012   AUD       0.50
DIVERSA LTD             11.00    09/30/2014   AUD       0.10
EXPORT FIN & INS         0.50    12/16/2019   NZD      69.26
EXPORT FIN & INS         0.50    06/15/2020   AUD      66.30
EXPORT FIN & INS         0.50    06/15/2020   NZD      66.95
FIRST AUSTRALIAN        15.00    01/31/2012   AUD       0.60
IMF AUSTRALIA           10.25    12/31/2014   AUD       1.65
NEW S WALES TREA         1.00    09/02/2019   AUD      72.53
NEW S WALES TREA         0.50    09/14/2022   AUD      60.19
NEW S WALES TREA         0.50    10/07/2022   AUD      59.70
NEW S WALES TREA         0.50    10/28/2022   AUD      59.46
NEW S WALES TREA         0.50    11/18/2022   AUD      58.76
NEW S WALES TREA         0.50    12/16/2022   AUD      58.40
NEW S WALES TREA         0.50    02/02/2023   AUD      57.84
PALADIN ENERGY           3.62    11/04/2015   AUD      70.83
RESOLUTE MINING         12.00    12/31/2012   AUD       1.69
TREAS CORP VICT          0.50    08/25/2022   AUD      60.77
TREAS CORP VICT          0.50    11/12/2030   AUD      58.92
TREAS CORP VICT          0.50    11/12/2030   AUD      41.33


  CHINA
  -----

AIR CHINA                4.50    09/07/2015   CNY      70.28
CHINA GOV'T BOND         1.64    12/15/2033   CNY      63.26
CHONGQING TRAFFIC        6.30    12/10/2015   CNY      73.01
HENAN INVEST             4.85    04/15/2019   CNY      73.00
NJ HITECH ECO            6.40    12/24/2017   CNY      75.00
SJZ URBAN CONS           6.55    03/09/2021   CNY      60.01
SOUTHERN POWER           5.60    09/17/2019   CNY      66.63
TIANJIN CONSTR           3.75    03/25/2014   CNY      71.91
TIANJIN CONSTR           3.75    03/25/2016   CNY      71.51
ZHONGHUI INVST           6.18    03/23/2018   CNY      75.00


  HONG KONG
  ---------

CHINA SOUTH CITY        13.50    01/14/2016   USD      66.05
CHINA SOUTH CITY        13.50    01/14/2016   USD      67.50
RESPARCS FUNDING         8.00    12/29/2049   USD      22.02
SINO-OCEAN LAND         10.25    12/31/2049   USD      57.50
SINO-OCEAN LAND         10.25    12/31/2049   USD      69.16


  INDIA
  -----

INDIA GOVT BOND          6.01    03/25/2028   INDR     74.75
PUNJAB INFRA DB          0.40    10/15/2024   INR      25.42
PUNJAB INFRA DB          0.40    10/15/2025   INR      23.06
PUNJAB INFRA DB          0.40    10/15/2026   INR      20.94
PUNJAB INFRA DB          0.40    10/15/2027   INR      19.06
PUNJAB INFRA DB          0.40    10/15/2028   INR      17.36
PUNJAB INFRA DB          0.40    10/15/2029   INR      15.86
PUNJAB INFRA DB          0.40    10/15/2030   INR      14.51
PUNJAB INFRA DB          0.40    10/15/2031   INR      13.31
PUNJAB INFRA DB          0.40    10/15/2032   INR      12.24
PUNJAB INFRA DB          0.40    10/15/2033   INR      11.28
SHIV-VANI OIL            5.00    08/17/2015   USD      72.95
SUZLON ENERGY LT         5.00    04/13/2016   USD      74.40
VIDEOCON INDUS           6.75    12/16/2015   USD      65.60


  JAPAN


  -----

JPN EXP HLD/DEBT         0.50    09/17/2038   JPY      63.60
JPN EXP HLD/DEBT         0.50    03/18/2039   JPY      62.85
SHINSEI CORP             9.20    12/29/2049   GBP      68.33
TAKEFUJI CORP            9.20    04/15/2011   USD       5.25
TOKYO ELEC POWER         2.12    03/24/2017   JPY      58.95
TOKYO ELEC POWER         1.75    09/28/2017   JPY      74.62
TOKYO ELEC POWER         1.60    05/29/2019   JPY      63.50
TOKYO ELEC POWER         2.05    10/29/2019   JPY      63.50
TOKYO ELEC POWER         1.37    10/29/2019   JPY      61.62
TOKYO ELEC POWER         1.81    02/28/2020   JPY      74.75
TOKYO ELEC POWER         1.48    04/28/2020   JPY      68.00
TOKYO ELEC POWER         1.39    05/28/2020   JPY      62.00
TOKYO ELEC POWER         1.31    06/24/2020   JPY      69.25
TOKYO ELEC POWER         1.94    07/24/2020   JPY      64.75
TOKYO ELEC POWER         1.22    07/29/2020   JPY      69.25
TOKYO ELEC POWER         1.15    09/08/2020   JPY      69.00
TOKYO ELEC POWER         1.63    07/16/2021   JPY      70.12
TOKYO ELEC POWER         2.34    09/29/2028   JPY      65.62
TOKYO ELEC POWER         2.40    11/28/2028   JPY      65.75
TOKYO ELEC POWER         2.20    02/27/2029   JPY      59.25
TOKYO ELEC POWER         2.11    12/10/2029   JPY      57.62
TOKYO ELEC POWER         1.95    07/29/2030   JPY      57.12
TOKYO ELEC POWER         2.36    05/28/2040   JPY      51.62


  MALAYSIA
  --------

ADVANCED SYNERY          2.00    01/26/2018   MYR       0.08
ALIRAN IHSAN RES         5.00    11/29/2011   MYR       1.45
ASTRAL SUPREME           3.00    08/0/2021    MYR       0.07
CRESENDO CORP B          3.75    01/11/2016   MYR       1.07
DUTALAND BHD             6.00    04/11/2013   MYR       0.77
DUTALAND BHD             6.00    04/11/2013   MYR       0.43
EASTERN & ORIENT         8.00    07/25/2011   MYR       1.40
ENCORP BHD               6.00    02/17/2016   MYR       0.85
KUMPULAN JETSON          5.00    11/27/2012   MYR       0.84
LION DIVERSIFIED         4.00    12/17/2013   MYR       1.22
MALTON BHD               6.00    06/30/2018   MYR       0.78
MITHRIL BHD              3.00    04/05/2012   MYR       0.65
OLYMPIA INDUSTRI         6.00    04/11/2013   MYR       0.19
OLYMPIA INDUSTRI         6.00    04/11/2013   MYR       0.25
OLYMPIA INDUSTRI         6.00    04/11/2013   MYR       0.34
PANTECH GROUP            7.00    12/21/2017   MYR       0.08
PRESS METAL BHD          6.00    08/22/2019   MYR       1.81
PUNCAK NIAGA HLD         2.50    11/18/2016   MYR       0.59
REDTONE INTL             2.75    03/04/2020   MYR       0.07
RUBBEREX CORP            4.00    08/14/2012   MYR       0.66
SCOMI ENGINEERING        4.00    03/19/2013   MYR       0.55
SCOMI GROUP              4.00    12/14/2012   MYR       0.06
TATT GIAP                2.00    06/03/2015   MYR       0.68
TRADEWINDS CORP          2.00    02/26/2016   MYR       0.71
TRADEWINDS PLANT         3.00    02/28/2016   MYR       1.10
TRC SYNERGY              5.00    01/20/2012   MYR       1.51
WAH SEONG CORP           3.00    05/21/2012   MYR       2.30
WIJAYA BARU GLOB         7.00    09/17/2012   MYR       0.41
YTL CEMENT BHD           5.00    11/10/2015   MYR       2.10


NEW ZEALAND
-----------

BLUE STAR GROUP          9.10    09/15/2015   NZD       9.00
DORCHESTER PACIF         5.00    06/30/2013   NZD      68.63
INFRATIL LTD             8.50    09/15/2013   NZD       7.65
INFRATIL LTD             8.50    11/15/2015   NZD       8.60
INFRATIL LTD             4.97    12/29/2049   NZD      57.50
KIWI INCOME PROP         8.95    12/20/2014   NZD       1.07
NEW ZEALAND POST         7.50    11/15/2039   NZD      63.22
NZF GROUP                6.00    03/15/2016   NZD      32.76
TOWER CAPITAL            8.50    04/15/2014   NZD       1.02
TRUSTPOWER LTD           8.50    09/15/2012   NZD       6.80
UNI OF CANTERBUR         7.25    12/15/2019   NZD       0.99


SINGAPORE
---------

BAKRIE TELECOM          11.50    05/07/2015   USD      58.33
BAKRIE TELECOM          11.50    05/07/2015   USD      60.75
BLUE OCEAN              11.00    06/28/2012   USD      33.00
CAPITAMALLS ASIA         1.00    01/21/2012   SGD       0.97
CAPITAMALLS ASIA         2.15    01/21/2014   SGD       1.00
DAVOMAS INTL FIN        11.00    12/08/2014   USD      52.50
F&N TREASURY PTE         2.48    03/28/2016   SGD       0.97
F&N TREASURY PTE         3.15    03/28/2018   SGD       0.99
NEXUS 1 PTE LTD         10.50    03/07/2012   USD       1.70
SENGKANG MALL            4.00    11/20/2012   SGD       0.50
SENGKANG MALL            8.00    11/20/2012   SGD       0.50
UNITED ENG LTD           1.00    03/03/2014   SGD       1.20
WBL CORPORATION          2.50    06/10/2014   SGD       1.25


SOUTH KOREA
-----------

CN 1ST ABS               8.00    02/27/2015   USD      72.76
HANJIN SHIPPING          4.00    07/20/2016   USD      71.57
HYUNDAI SWISS BK         8.50    07/15/2014   KRW       8.16
HYUNDAI SWISS II         8.30    01/13/2015   KRW      10.08
HYUNDAI SWISS II         7.90    07/23/2015   KRW      10.11


SRI LANKA
---------

SRI LANKA GOVT           5.35    03/01/2026   LKR      69.01


THAILAND
--------

THAILAND GOVT            0.75    01/04/2022   THB      73.45


                             *********

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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