TCRAP_Public/111128.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

           Monday, November 28, 2011, Vol. 14, No. 235

                            Headlines



A U S T R A L I A

CENTRO PROPERTIES: Supreme Court Holds Ruling on Merger Challenge
* AUSTRALIA: AU$1 Billion in Distressed Property on the Block


C H I N A

DECOR PRODUCTS: Posts US$422,000 Net Income in Third Quarter
SUNRISE REAL ESTATE: Incurs US$706,000 Net Loss in Third Quarter


H O N G  K O N G

AMB I.T.: Commences Wind-Up Proceedings
CHASE LUCK: Commences Wind-Up Proceedings
CHING WAH: Commences Wind-Up Proceedings
CHUNG CHIAT: Commences Wind-Up Proceedings
FIDELITY SUPPLIES: Annual Meetings Set for Dec. 29

JOI MAXIE: Commences Wind-Up Proceedings
LINFAIR ENGINEERING: Annual Meetings Set for Dec. 29
LU KEE: Annual Meetings Set for Dec. 29
MOMENTUM ACADEMY: Creditors' Proofs of Debt Due Dec. 24
NIPPON OIL: Seng and Lo Appointed as Liquidators

PO HAY: Commences Wind-Up Proceedings
ROYAL FAMILY: Poon Wai Hung Richard Appointed as Liquidator
ST. FRANCIS: Andrew Hung Chi Yuen Steps Down as Liquidator
SUPREME TASK: Commences Wind-Up Proceedings
WAI CHEONG: Annual Meetings Set for Dec. 30


I N D I A

AIR INDIA: Gets Central Bank's Nod for INR180-Bil. Debt Recast
BATLIBOI ENVIRONMENT: Fitch Reaffirms Nat'l. LT Rating at B+(ind)
CAPRICORN FOOD: ICRA Cuts Rating on INR30.37cr Loan to [ICRA]BB+
CORE FAB: ICRA Assigns '[ICRA]BB' Rating to INR14.5cr Bank Loans
EMERALD CARS: ICRA Assigns '[ICRA]BB+' Rating to INR23.05cr Loan

FINE JEWELLERY: ICRA Assigns '[ICRA]B+' Rating to INR1.52cr Loan
GARG ACRYLICS: ICRA Cuts Rating on INR152.5cr Loan to '[ICRA]BB+'
JAGSON COLORCHEM: ICRA Assigns [ICRA]BB Rating to INR1.89cr Loan
JANTA LAND: Delays in Debt Servicing Cues ICRA Junk Ratings
KANYAKA PARAMESHWARI: ICRA Places [ICRA]BB Rating on INR9cr Loan

MODERN CHEMICALS: ICRA Reaffirms '[ICRA]BB-' Bank Loan Rating
PALTECH COOLING: ICRA Puts [ICRA]BB+ Rating on INR11cr Bank Loan
PASWARA CHEMICALS: ICRA Reaffirms '[ICRA]BB' INR15cr Loan Rating
PASWARA IMPEX: ICRA Reaffirms '[ICRA]BB' INR3.98cr Loan Rating
PIBCO INDIA: Fitch Puts Rating on Two Loan Class at 'D+'

RAIN CII: Moody's Withdraws 'B2' Corporate Family Ratings
SAI GLOBAL: ICRA Cuts Rating on INR27.8cr Term Loan to '[ICRA]BB'
SANJAY COMMERCIAL: ICRA Puts '[ICRA]BB' Rating on INR1cr Loan


J A P A N

CORSAIR (JERSEY) NO. 2: S&P Ups Series 52 Tranche Rating to 'BB-'
JLOC 41: Fitch Affirms Rating on Three Note Classes at 'Dsf'
MIZUHO FINANCIAL: Moody's Raises Preferred Stock Rating to 'Ba2'
OLYMPUS CORP: "Significant Fraud Evident," KMPG Chief Says
OLYMPUS CORP: Axes America Closed Biz After SEC, FINRA Probes

OLYMPUS CORP: Ex-Chairman, Two Other Executives Quit Board
PACNET: Moody's Says B1 Ratings Unaffected by 3Q Performance


K O R E A

HANA BANK: Fitch Affirms Rating on Hybrid Securities at 'BB+'
KOREA EXCHANGE: Fitch Affirms Individual Rating at 'C'


M O N G O L I A

* MONGOLIA: Fitch Affirms LT Issuer Default Ratings at 'B+'


N E W  Z E A L A N D

BRIDGECORP LTD: Staff Ordered to Lie to Investors, Witness Says
BROADLANDS FINANCE: S&P Cuts Counterparty Credit Rating to 'CCC'
FELTEX CARPETS: Class Action Hopes to Access Court Docs


P H I L I P P I N E S

MANILA CAVITE: Moody's Lowers Sr. Secured Bond Rating to 'Caa1'
QUEZON POWER: S&P Withdraws 'B+' Rating on $215-Mil. 8.86% Bonds


                            - - - - -


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


CENTRO PROPERTIES: Supreme Court Holds Ruling on Merger Challenge
-----------------------------------------------------------------
Sarah Danckert at The Australian reports that the Supreme Court
of New South Wales has reserved its ruling on whether the heavily
indebted Centro empire can merge its various parts to create a
$3 billion listed property trust.

According to The Australian, Centro on Friday made a final plea
for the courts to approve the company's merger plans, following a
challenge to a key element of the merger from former company
auditor and potential contingent creditor PricewaterhouseCoopers
LLP.

The Australian notes that at the heart of the issue is a
$100 million package Centro has set aside for its junior lenders,
shareholders and contingent creditors to facilitate the merger.

Centro is facing two separate class actions said to total about
$600 million arising from a $2.25 billion misallocation of debt
in its 2007 financial accounts, The Australian says.

PricewaterhouseCoopers has been listed on those claims. It is
also the subject of a cross-claim by Centro, and PwC is suing
Centro.

The Australian states that as a successful claimant will become a
contingent creditor, PwC has argued that the $10 million of the
$100 million that the company planned to set aside for potential
contingent creditors would not cover the claims.

According to the report, PwC has sought amendment of the merger
plans and says it does not necessarily want the entire scheme
thrown out by the courts.

The court provided no guideline as to when the ruling would be
handed down, despite a request from Centro that it be before
December 1.  Centro has set itself a very tight timetable to pull
off its merger before almost $3 billion in debt falls due in mid
December.

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 23, 2011, Bloomberg News said Centro Properties Group on
Nov. 22 averted liquidation as investors approved a plan to
cancel debt and pool assets into a new real estate trust.
Bloomberg said the vote resolves a four-year battle to stave off
bankruptcy after a $9 billion U.S. buying spree between 2006 and
2007 backfired as the subprime mortgage crisis triggered the
worst recession since the great depression.  Approval allows
Centro to erase
AUD2.9 billion of debt maturing on Dec. 15 and gives lenders
equity stakes in a new trust to be called Centro Retail
Australia, according to Bloomberg.

                       About Centro Properties

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


* AUSTRALIA: AU$1 Billion in Distressed Property on the Block
-------------------------------------------------------------
Michael Pascoe at The Sydney Morning Herald reports that banks
are tightening the screws on development sites that have breached
borrowing covenants, pushing more into receivership with "at
least" AU$1 billion worth of distressed property currently for
sale in Australia.

CBRE, one of the Australia's major recovery real estate agencies,
said that flow of receivership property is expected to continue
for at least the next two to three years, according to The Sydney
Morning Herald.

The report notes that CBRE's recovery and restructuring
division's newsletter said there is a slowing of investment grade
distressed assets coming onto the market as there is a shift in
focus from corporate collapses to banks losing patience with
development sites.

The Sydney Morning Herald discloses that banks are taking some
significant haircuts as those properties come to market, but the
Catch-22 for the banks in trying to clean up their property books
is their unwillingness to lend to new buyers.

The report notes that John Dwyer, principal of the eponymous John
Dwyer Properties, a Queensland agency specializing in commercial
and insolvency appointments, says development sites are very
difficult to sell.  There are people interested in buying but
banks won't support their acquisitions, The Sydney Morning Herald
relays.

As one might expect in the real estate industry, Dwyer and Gray-
Spencer both said there are good opportunities for investors with
money now -- cash is king -- but development sites can be tricky
to offload, the report adds.

The Reserve Bank's latest statement on monetary policy not
surprisingly reported credit remains tight for developers.
Except for those fortunate enough to be cashed up, developers
can't borrow and therefore they can't buy, leaving the banks to
hold written-down property portfolios that aren't producing
income.


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


DECOR PRODUCTS: Posts US$422,000 Net Income in Third Quarter
------------------------------------------------------------
Decor Products International, Inc., filed with the U.S.
Securities and Exchange Commission its quarterly report on Form
10-Q, reporting net income of US$422,281 on US$4.37 million of
net revenues for the three months ended Sept. 30, 2011, compared
with net income of US$1.12 million on US$6.82 million of net
revenues for the same period during the prior year.

The Company also reported net income of US$2.13 million on
US$15.21 million of net revenues for the nine months ended
Sept. 30, 2011, compared with net income of US$3.50 million on
US$19.70 million of net revenues for the same period a year ago.

The Company's balance sheet at Sept. 30, 2011, showed US$42.97
million in total assets, US$10.28 million in total liabilities
and US$32.69 million in total stockholders' equity.

HKCMCPA Company Limited, in Hong Kong, expressed substantial
doubt about Decor Products International's ability to continue as
a going concern, following the Company's 2010 results.  The
independent auditors noted that as of Dec. 31, 2010, the Company
defaulted on the repayment of convertible notes and promissory
notes with an aggregate amount of US$2.2 million (US$2.0 million
as of March 31, 2011).

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/UEFNax

                        About Decor Products

Decor Products International, Inc., through its subsidiaries,
mainly engages in the manufacture and sale of furniture
decorative paper and related products in the People's Republic of
China.  The Company is headquartered in Chang'an Town, Dongguan,
Guangdong Province, between Shenzhen and Guangzhou in southern
China.


SUNRISE REAL ESTATE: Incurs US$706,000 Net Loss in Third Quarter
----------------------------------------------------------------
Sunrise Real Estate Group, Inc., filed with the U.S. Securities
and Exchange Commission its quarterly report on Form 10-Q,
reporting a net loss of US$706,124 on US$1.83 million of net
revenues for the three months ended Sept. 30, 2011, compared with
a net loss of US$24,877 on US$3.09 million of net revenues for
the same period during the prior year.

The Company also reported a net loss of US$2.04 million on
US$6.55 million of net revenues for the nine months ended
Sept. 30, 2011, compared with net profit of US$492,320 on
US$10.74 million of net revenues for the same period a year ago.

The Company's balance sheet at Sept. 30, 2011, showed US$18.26
million in total assets, US$22.20 million in total liabilities,
US$1.04 million in non-controlling interests of consolidated
subsidiaries, and a US$4.98 million total shareholders' deficit.

A full-text copy of the Form 10-Q is available for free at:

                        http://is.gd/ubBHtv

                         About Sunrise Real

Headquartered in Shanghai, the People's Republic of China,
Sunrise Real Estate Group, Inc. was initially incorporated in
Texas on Oct. 10, 1996, under the name of Parallax Entertainment,
Inc.  On Dec. 12, 2003, Parallax changed its name to Sunrise Real
Estate Development Group, Inc.  On April 25, 2006, Sunrise Estate
Development Group, Inc. filed Articles of Amendment with the
Texas Secretary of State, changing the name of Sunrise Real
Estate Development Group, Inc. to Sunrise Real Estate Group,
Inc., effective from May 23, 2006.

The Company and its subsidiaries are engaged in the property
brokerage services, real estate marketing services, property
leasing services and property management services in China.

                           Going Concern

The Company has accumulated losses of US$10,563,169 for the year
ended June 30, 2011.  The Company's net working capital
deficiency and significant accumulated losses raise substantial
doubt about the Company's ability to continue as a going concern.

However, management believes that the Company is able to generate
sufficient cash flow to meet its obligations on a timely basis
and ultimately to attain successful operations in respect of the
agency sales and property management operations.

As reported by the TCR on April 21, 2011, Kenne Ruan, CPA, P.C.,
in Woodbridge, CT, USA, noted that the Company has  significant
accumulated losses from operations and has a net capital
deficiency that raise substantial doubt about its ability to
continue as a going concern.


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


AMB I.T.: Commences Wind-Up Proceedings
---------------------------------------
Members of AMB I.T. Asia Limited, on Nov. 18, 2011, passed a
resolution to voluntarily wind up the company's operations.

The company's liquidator is:

         Russell James Shoemaker
         6309 Mitchell Hollow Road
         Charlotte, North Carolina 28277-4549
         United States of America


CHASE LUCK: Commences Wind-Up Proceedings
-----------------------------------------
Members of Chase Luck Company Limited, on Nov. 15, 2011, passed a
resolution to voluntarily wind up the company's operations.

The company's liquidator is:

         Tsui Kei Pang
         5th Floor, Jardine House
         1 Connaught Place
         Central, Hong Kong


CHING WAH: Commences Wind-Up Proceedings
----------------------------------------
Members of Ching Wah Enterprises Limited, on Nov. 14, 2011,
passed a resolution to voluntarily wind up the company's
operations.

The company's liquidator is:

         Cheng Chi Pang
         Flat B, 7/F
         On Hing Bilding
         1 On Hing Terrace
         Central, Hong Kong


CHUNG CHIAT: Commences Wind-Up Proceedings
------------------------------------------
Members of Chung Chiat Company Limited, on Nov. 21, 2011, passed
a resolution to voluntarily wind up the company's operations.

The company's liquidator is:

         Tsui Kei Pang
         5th Floor, Jardine House
         1 Connaught Place
         Central, Hong Kong


FIDELITY SUPPLIES: Annual Meetings Set for Dec. 29
--------------------------------------------------
Members and creditors of Fidelity Supplies Corporation Limited
will hold their annual meetings on Dec. 29, 2011, at 3:30 p.m.,
and 3:45 p.m., respectively at Room 203, 2/F, Duke of Windsor
Social Service Building, at 15 Hennessy Road, Wanchai, in Hong
Kong.

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


JOI MAXIE: Commences Wind-Up Proceedings
----------------------------------------
Members of Joi Maxie (Shandong) Property Limited, on Nov. 18,
2011, passed a resolution to voluntarily wind up the company's
operations.

The company's liquidator is:

         Kee Lap Tat Leonard
         No. 3, Lane 428, Gaojing Road
         Qingpu District
         Shanghai 201702
         The People's Republic of China


LINFAIR ENGINEERING: Annual Meetings Set for Dec. 29
----------------------------------------------------
Members and creditors of Linfair Engineering (H.K.) Co. Limited
will hold their annual meetings on Dec. 29, 2011, at 1:30 p.m.,
and 1:45 p.m., respectively at Room 203, 2/F, Duke of Windsor
Social Service Building, at 15 Hennessy Road, Wanchai, in
Hong Kong.

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


LU KEE: Annual Meetings Set for Dec. 29
---------------------------------------
Members and creditors of Lu Kee Electronic Company Limited will
hold their annual meetings on Dec. 29, 2011, at 2:30 p.m., and
2:45 p.m., respectively at Room 203, 2/F, Duke of Windsor Social
Service Building, at 15 Hennessy Road, Wanchai, in Hong Kong.

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


MOMENTUM ACADEMY: Creditors' Proofs of Debt Due Dec. 24
-------------------------------------------------------
Creditors of The Momentum Academy Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Dec. 24, 2011, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on Nov. 24, 2011.

The company's liquidator is:

         Yu Yu Kin
         Cheng Kam Wa Thomas
         Office B, 26/F
         United Centre
         95 Queensway, Hong Kong


NIPPON OIL: Seng and Lo Appointed as Liquidators
------------------------------------------------
Natalia K M Seng and Susan Y H Lo on Nov. 11, 2011, were
appointed as liquidators of Nippon Oil (China) Limited.

The liquidators may be reached at:

         Natalia K M Seng
         Susan Y H Lo
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


PO HAY: Commences Wind-Up Proceedings
-------------------------------------
Members of Po Hay Enterprises Limited, on Nov. 21, 2011, passed a
resolution to voluntarily wind up the company's operations.

The company's liquidator is:

         Tsui Kei Pang
         5th Floor, Jardine House
         1 Connaught Place
         Central, Hong Kong


ROYAL FAMILY: Poon Wai Hung Richard Appointed as Liquidator
-----------------------------------------------------------
Poon Wai Hung Richard on Nov. 25, 2011, was appointed as
liquidator of Royal Family Limited.

The liquidator may be reached at:

         Poon Wai Hung Richard
         Room 1410, 14/F
         Harbour Centre
         No. 25 Harbour Road
         Wanchai, Hong Kong


ST. FRANCIS: Andrew Hung Chi Yuen Steps Down as Liquidator
----------------------------------------------------------
Andrew Hung Chi Yuen stepped down as liquidator of St. Francis of
Assisi's Caritas School Alumni Association Limited on Nov. 24,
2011.


SUPREME TASK: Commences Wind-Up Proceedings
-------------------------------------------
Members of Supreme Task Limited, on Nov. 18, 2011, passed a
resolution to voluntarily wind up the company's operations.

The company's liquidator is:

         Kee Lap Tat Leonard
         No. 3, Lane 428, Gaojing Road
         Qingpu District
         Shanghai 201702
         The People's Republic of China


WAI CHEONG: Annual Meetings Set for Dec. 30
-------------------------------------------
Members and creditors of Wai Cheong Engineering Limited will hold
their annual meetings on Dec. 30, 2011, at 2:00 p.m., and 2:15
p.m., respectively at Unit A, 14/F, JCG Building, at 16 Mongkok
Road, Mongkok, Kowloon, in Hong Kong.

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


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I N D I A
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AIR INDIA: Gets Central Bank's Nod for INR180-Bil. Debt Recast
--------------------------------------------------------------
Bloomberg News reports that two people familiar with the matter
said Air India Ltd. received central bank approval to restructure
INR180 billion (US$3.46 billion) of debt.

Bloomberg relates that the people, who declined to be identified
before a formal announcement, said the Reserve Bank of India
approved a plan submitted in October to convert short-term
working capital loans into long-term debt and preferred shares.
The conversion will be completed within 120 days, they said.

The former monopoly carrier is seeking to cut annual interest
payments by 13 billion rupees, three people familiar with the
debt revamp said in October.

According to Bloomberg, the government has given the carrier
INR32 billion in bailouts since April 1, 2009, to cover losses,
even as Jet Airways (India) Ltd. and Kingfisher Airlines Ltd.
struggle to turn surging travel demand into profits because of
high fuel costs and price wars.

Bloomberg notes that the people said in October that Air India's
annual interest costs will fall to about INR21 billion from
INR34 billion, under the plan, which includes converting about
INR110 billion of short-term loans into 15-year debt at an
interest rate of 11.5 percent per year.

About 70 billion rupees of loans will be swapped for cumulative
preferred shares, redeemable in 15 years and carrying an 8.5%
interest rate, the people, as cited by Bloomberg, said.

                          About Air India

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

                          *     *     *

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

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


BATLIBOI ENVIRONMENT: Fitch Reaffirms Nat'l. LT Rating at B+(ind)
-----------------------------------------------------------------
Fitch Rating has revised the Outlook on India's Batliboi
Environmental Engineering Ltd to Negative from Stable. Its
National Long-Term rating has been affirmed at 'Fitch B+(ind)'.

The Negative Outlook reflects BEEL's deteriorating financial
metrics.  During the financial year ended March 2011 (FY11),
revenue declined by 21.8% to INR382.7 million, while EBIDTA stood
at a loss of INR20.2 million compared to a profit of
INR9.2 million in FY10.  This is primarily due to delays in the
execution of projects by counterparties in air and liquid
pollution control segments leading to cost overruns and
consequent losses for the company.

The ratings are constrained by BEEL's stressed liquidity position
(cash balance: INR6.0 million in FY11 as against INR8.8 million
in FY10) due its stretched working capital cycle.  In FY11, net
cash conversion cycle increased to 21days from 10days in FY10 on
account of higher receivable days (FY11: 265 days; FY10: 240
days).  To tide over liquidity pressures, the company's founders
infused INR30 million as equity into BEEL in FY11, which also
prevented the erosion of its net worth to almost negative due to
losses incurred over FY04-FY11. Net worth as on March 31, 2011,
stood at INR28.9 million.

BEEL has also obtained liquidity support from Batliboi Limited
('Fitch B-(ind)'/Stable), another entity controlled by the
sponsor, and has access to the latter's INR250 million working
capital limits.  However, Fitch has taken a standalone view of
BEEL as the agency believes that other than this support, the
operational and strategic linkages between the entities remain
weak.

The Outlook may be revised back to Stable if the company becomes
profitable and there is a substantial and sustained improvement
in its financial metrics over the medium term.  Conversely,
continued cash losses resulting into the erosion of the company's
net worth and/or delayed financial support from its founders may
result in negative rating action.

Established in 1959, BEEL is involved in the design, selection,
engineering, fabrication, supply, installation, and commissioning
of air and water pollution control equipment, and a variety of
systems with industrial and municipal applications.

The following facilities of BEEL's have been affirmed:

  -- INR0.77 million term loan as on September 2011:
     'Fitch B+(ind)'

  -- INR6.5 million cash credit: 'Fitch B+(ind)'

  -- INR2.5 million non-fund based limits: 'Fitch A4(ind)'


CAPRICORN FOOD: ICRA Cuts Rating on INR30.37cr Loan to [ICRA]BB+
----------------------------------------------------------------
ICRA has revised the long term rating outstanding on the INR30.37
crore (enhanced from INR27.86 crore) long term loans and INR45.00
crore (earlier outstanding of INR110.00 crore) long term fund
based facilities of Capricorn Food Products India Limited to
'[ICRA]BB+' from 'LBBB-'.  The outlook on the long term rating is
stable. ICRA has also revised the short term rating outstanding
on the INR125.00 crore (enhanced from INR5.00 crore) short term
fund based facilities and INR30.00 crore (enhanced from INR15.00
crore) short term non-fund based facilities of the Company to
'[ICRA]A4+' from 'A3'.

The revision in CFIPL's ratings factor in weakened financial
profile in the past two fiscals following inventory losses
(INR15.8 crore) in 2009-10, strained cash flows, reduction in
operating margins (despite scale expansion) on account of intense
competition and the consequent adverse impact on capital
structure (further constrained by large debt funded capex) and
coverage indicators which weakened considerably in 2010-11 as
opposed to earlier years. The actual financial performance of the
Company has been weaker than expected over the last two fiscals
(provisional 2009-10 and estimated 2010-11).

The ratings, however, continue to factor in the established
presence of CFPIL in the domestic mango pulp market, reputed
clientele leading to low order volatility, recurring source of
revenues, and the efficient procurement network and distribution
setup which aids operational efficiencies. The growing demand for
mango pulp and other processed fruits and vegetables in India
provides comfort on the demand side. However, the Company's
performance remains susceptible to exchange rate fluctuations,
freight rate movements and raw material availability, which is
dependent on agro climatic conditions.

ICRA also notes that the fruits and vegetables processing
industry is highly fragmented leading to significant competition.
The export volumes and the corresponding profit margins are also
highly dependent on the seasonal nature of the mango crop remains
a concern. The recent trend of rising interest rates is also
likely to adversely affect the Company's profit margins owing to
higher interest costs on the back of increasing working capital
borrowings to support inventory requirements.

                        About Capricorn Food

Capricorn Food Products India Limited is a food processing
company, promoted by M S Jain Group in the year 1998 with the
objective of manufacture and export of Fruit Pulp and Processed
Vegetables. The group is mainly engaged in the manufacture and
trading of sodium silicate and other allied chemicals with the
group turnover of more than INR5.5 billion. CFPIL is the only
unit in the group engaged in an activity not related to
chemicals. It has a factory at Sathyavedu, Chittoor District,
Andhra Pradesh, Krishnagiri (Tamil Nadu) and another one in Pune,
for extraction of Fruit Pulp and Vegetable Processing. Its
revenues are accrued largely from sale of Mango pulp which
contributes in excess of 80% of the total sales. Majority of its
sales are direct sales to MNCs located in the export and domestic
market.

Recent Results

For the financial year ended 2010-11, the company has reported
net profit of INR8.1 Crore on an operating income of INR210.9
Crore against a net profit of INR4.9 Crore on an operating income
of INR177.0 Crore for the financial year 2009-10.


CORE FAB: ICRA Assigns '[ICRA]BB' Rating to INR14.5cr Bank Loans
----------------------------------------------------------------
ICRA has assigned '[ICRA]BB' and '[ICRA]A4' ratings for the
INR14.57 crore enhanced bank facilities of Core Fab Projects
Private Limited.  The outlook on the long term rating is
'Stable'.

The rating reaffirmation takes into account CFPL's established
position as fabricator for various equipment/machinery used in
the power and material handling equipment industry, its favorable
location with the manufacturing plant situated at Bhilai
(Chhattisgarh), where procurement cost of key raw material viz.,
steel is relatively low and its experienced promoters and
management team. The ratings take comfort from CFPL's strong
relations with existing customers and ongoing positive efforts
towards customer diversification. However, the ratings continue
to be constrained by CFPL's modest scale of operations and
limited financial flexibility evident from high gearing, moderate
debt protection indicators and generally fully utilized working
capital limits. Moreover, CFPL lacks bargaining power with both
suppliers as well as customers reflected in high receivable but
low creditor days as well as CFPL's exposure to risk of raw
material price fluctuation in view of contracts with several
customers being fixed price in nature.

The ability of CFPL to register growth in its operating revenues
amid the increasing competitive intensity in its area of
operations as well as the outcome of its ongoing industry
diversification efforts and its ability to manage its working
capital intensity would remain key rating sensitivities going
forward.

                           About Core Fab

Core Fab Projects Private Limited was originally incorporated in
March 1993 as Deshlahra Carbon Private Limited. The name of the
company was changed to its present name in March 2005. The
company is promoted by the Deshlahra family and is engaged in the
fabrication of steel components used in power and material
handling equipment. The company manufactures Platforms, Stairs,
Canopy Structures, Ducts, Funnels, Ladders, Pollution Control
Machines, Boiler Parts, Tanks and Vessels, and other equipment
required for engineering plant and machinery. (The Company is ISO
9001:2000 certified).

Recent Results:

In 2010-11, CFPL recorded an operating income of INR32.2 crore,
Operating Profit before Depreciation, Interest and Tax of
INR3.0 crore and Profit after Tax of INR1.2 crore.


EMERALD CARS: ICRA Assigns '[ICRA]BB+' Rating to INR23.05cr Loan
----------------------------------------------------------------
The rating of '[ICRA]BB+' has been assigned to the INR23.05 crore
term loans and INR23.00 crore cash credit facility of Emerald
Cars Private Limited.  The outlook on the long term rating is
'stable'. The rating of '[ICRA]A4+' has been assigned to the
INR3.45 crore non fund based facilities of ECPL.

The assigned ratings are constrained by high competitive pressure
faced by Honda Siel Cars India Limited from established players
as well as new players; expected slowdown in the passenger car
market in India in the near term; low profitability associated
with dealership business and adverse financial profile indicated
by highly leveraged capital structure and weak debt protection
metrics.

The assigned ratings, however, take into account the extensive
experience of the promoters in auto dealership and vehicle
financing business; shift in focus of Honda towards emerging
economies like India with recent launch of affordable compact car
'Brio' and strong position gained by the company in Ahmedabad
market within three years of operations.

                         About Emerald Cars

ECPL, a private limited company, is an Ahmedabad based authorised
dealer for HSCIL and started its operations in December 2008. It
is promoted by Mr. K M Thakkar who has extensive experience in
auto dealership and vehicle financing in the Ahmedabad and
surrounding regions. The promoter also has interests in other
dealerships including TVS two and three wheelers in Ahmedabad,
Mehsana and Palanpur districts in Gujarat and Honda two wheeler
dealership in Ahmedabad.

Recent Results

During FY11, the company reported operating income of INR121.89
crore and profit after tax of INR1.69 crore.


FINE JEWELLERY: ICRA Assigns '[ICRA]B+' Rating to INR1.52cr Loan
----------------------------------------------------------------
[ICRA]B+ has been assigned to the INR1.52 crore fund based
facilities of Fine Jewellery Manufacturing Limited.  An
'[ICRA]A4' rating has also been assigned to the Rs.47.00 crore
short term fund based; INR3.00 crore short term non fund- based
facilities and INR7.00 crore short term fund/non-fund based
facilities of the company.

The ratings factor in the vast experience of promoters in the
jewellery business and the company's presence in different
countries. The company's sales are aided by its established brand
name. Being located in SEZ allows the company to accrue tax
exemption benefits and provides easy access to cheap labor.

The ratings are, however, constrained by stretched financial
profile on account of the high working capital intensity of the
business and modest profitability resulting in weak debt service
coverage ratios. The gems and jewellery industry is very
fragmented and is characterized by severe competition. FJML not
only faces a stiff competition from the dominant unorganized
players but also from a few well established organized players.

                        About Fine Jewellery

Fine Jewellery Group is one of the largest manufacturers and
exporters of diamond studded gold and platinum jewellery in
India. The group was established in 1987 was among the first six
companies to be set up in SEEPZ, Mumbai. In 2001, the Fine
Jewellery Group established FJML to cater to the export market.
In April 2005, FJML commenced operations at its manufacturing
facility in SEEPZ.

Mr. Prem Kumar Kothari is the founder and the CMD of the group.
He has an experience of 35 years and is helped by his sons, Mr.
Sohil Kothari and Mr. Viral Kothari in the business.

Recent Results

As per the audited results for FY 2011, FJML reported a profit of
INR2.4 crores on an operating income of INR138.9 crores as
compared to a net profit of INR1.0 crore on an operating income
of INR124.8 crores in FY 2010.


GARG ACRYLICS: ICRA Cuts Rating on INR152.5cr Loan to '[ICRA]BB+'
-----------------------------------------------------------------
ICRA has revised the long term rating assigned to the INR152.50
crore term loan (enhanced from INR125 crore) and INR142.50 crore
fund based limits (enhanced from INR72 crore) of Garg Acrylics
Limited to '[ICRA]BB+' from 'LBBB-'.  ICRA has also revised the
short term rating assigned to the INR5.20 crore non fund based
limits (enhanced from INR3.20 crore) of GAL to '[ICRA]A4+' from
A3. The outlook on the long-term rating is stable.

The ratings revision takes into account the deterioration in
outlook on the spinning industry following a steep correction in
the cotton yarn prices since the month of April 2011. While the
raw material (cotton fiber) prices have also corrected
subsequently, GAL's profitability is likely to be affected during
FY 2011-12 owing to the high carrying value of its inventory.
GAL's ratings are also constrained by intensely fragmented nature
of domestic spinning industry, competitive pressures from
countries enjoying higher economies of scale/lower costs, and
GAL's aggressive expansion in recent past which has led to
stretched capital structure. Though GAL's gearing levels have
declined over the last two years owing to healthy accretion to
reserves, it still remains relatively high at 3.74 times as on
March 31, 2011.  Moreover, the working capital intensive nature
of operations has led to negative cash flows from operations and
high utilization of bank limits, thereby limiting the financial
flexibility of the company.  Nevertheless, the ratings favorably
factor in GAL's experienced management; its diversification
across cotton and synthetic yarn as well as garments
manufacturing which allows the company to change the product mix
according to the market conditions, its diversified client base
and a healthy growth in operating income of the company.

                        About Garg Acrylics

Garg Acrylics Limited was incorporated in 1983 as a public
limited company under the name Mercury Finance and Leasing
Limited. It changed its name to Mercury Ispat and Udyog Limited
(1986) and later to Garg Industries (1994) and Garg Acrylics
Limited in 1999. Initially the company was involved in leasing
and trading business and changed its area of operations to
manufacturing of yarns in 1999. The company started with an
installed capacity of 3,200 spindles and increased its capacity
to 125,872 spindles as on March 31, 2011. GAL is involved in the
production of cotton, acrylic and polyester and blended yarns,
and has also diversified into the manufacturing of knitted
hosiery garments as a forward integration step.

In FY 2010-11, GAL reported PAT of INR26.81 crores on an
operating income of INR605.83 crores as compared to PAT of
INR11.04 crores on an operating income of INR337.54 crores in FY
2010-11.In Q1 FY 2011-12, the company has reported PBT of INR2.71
crores on net sales of INR169.14 crores.


JAGSON COLORCHEM: ICRA Assigns [ICRA]BB Rating to INR1.89cr Loan
----------------------------------------------------------------
ICRA has assigned an '[ICRA]BB' rating to the INR1.89 crore long
term fund based facilities of Jagson Colorchem Limited.  The
outlook for the rating is stable. ICRA has also assigned an
'[ICRA]A4' rating to the INR12.00 crore, short-term, fund based
and short term, non-fund based facilities of JCL.

The assigned ratings are constrained by the demand risk resulting
from dependence on the business cycles of end user industries
like textile and leather, dependence on exports which has
resulted in exposure to the economic scenario of the related
geographies and to foreign currency fluctuations. The ratings are
further constrained by vulnerability of profitability to raw
material prices due to high share of raw material cost in the
overall cost structure and the stretched liquidity profile of the
company due to working capital intensive nature of operations.

The ratings however take into account the established track
record of the company, long experience of the promoters in the
dyestuff industry through other group companies, the favorable
location of the company in Gujarat giving it easy access to raw
material. The ratings have also positively considered the
consistent growth in operating income resulting from increase in
manufacturing capacity, and the diversified customer base with
the company exporting to several countries.

                       About Jagson Colorchem

Jagson Colorchem Limited was incorporated in 1996 and is engaged
in the manufacturing, export and trading of dyes. The company has
its manufacturing facility located at Ahmedabad, Gujarat with a
capacity to manufacture 2400 MTPA of dyes. JCL has mainly
focussed on manufacturing of dark shades of Direct and Reactive
dyes and acts as a trading agent for other lighter dyes produced
by the group company, Jagson Industries. JCL is a part of the
Jagson Group of Companies which is engaged in production and
trading of dyes, dye intermediates, enzymes and other chemicals.

Recent Results

During FY11, JCL reported an operating income of INR37.57 crore
and profit after tax of INR0.76 crore (provisional unaudited
financials) as against operating income of INR29.51 crore and
profit after tax of INR0.77 crore during FY10.


JANTA LAND: Delays in Debt Servicing Cues ICRA Junk Ratings
-----------------------------------------------------------
ICRA has revised the long term rating assigned to INR80 crore
bank lines of Janta Land Promoters Limited from 'LBB-' to
'[ICRA]D'.  The rating revision is on account of the recent
delays by the company in servicing its debt obligations. The
rating also factors in the moderate size of JLPL's operations and
the geographical risk arising out of concentration of most of its
projects in Punjab. However, ICRA has positively viewed the
healthy progress at the project sites, JLPL's significant land
bank with low approval risks and attractive location of its
projects. Going forward, on time servicing of debt and timely
execution of projects will be the key rating sensitivities.

Incorporated in 2003, Janta Land Promoters Limited is a public
limited company engaged in commercial, industrial and residential
real estate development in Mohali (Punjab), Ludhiana (Punjab) and
Kasauli (Himachal Pradesh). JLPL was promoted by its current
managing director, Mr. Kulwant Singh. The promoters started their
first venture in the form of a plotting project in Ludhiana in
Punjab. In Mohali, the company is developing four projects, one
each in sector 90/91, sector 94/95, sector 82/83 and sector 66A.

Recent Results:

In FY2011, JLPL reported operating income of INR133.25 crore
(previous year INR130.39 crore) and net profit of INR15.34 crore
(previous year INR5.13 crore).


KANYAKA PARAMESHWARI: ICRA Places [ICRA]BB Rating on INR9cr Loan
----------------------------------------------------------------
ICRA has assigned '[ICRA]BB' rating to the INR9.00 crore fund
based and INR10.00 crore non fund based bank facilities of
Kanyaka Parameshwari Engineering Limited.  ICRA has also assigned
'[ICRA]A4' to the INR3.00 crore fund based facilities of KPEL.
The outlook on the long-term rating is Stable.

The ratings assigned reflect Kanyaka Parameshwari Engineering
Limited's moderate scale of operations, high competitive
intensity with resultant pressure on profitability, high working
capital intensity owing to stretched debtor collection period,
weak debt protection metrics and high customer concentration risk
with 62% of the sales being made to the top five customers in
FY11. The ratings also factor in the delays in project execution
leading to high penalties. However, ICRA draws comfort from
significant growth in its operating income over the last three
years, its well reputed client base with sales backed by Letter
of Credit (L/C) from non government customers and its long track
record of operations in the transformers manufacturing industry.

                     About Kanyaka Parameshwari

Kanyaka Parameshwari Engineering Limited, incorporated in 1984,
is engaged in the manufacturing of distribution transformers,
Liquefied Petroleum Gas (LPG) cylinders and turnkey execution of
electrical sub-station and transmission lines. KPEL was
established by Mr. G. Rajeshwar Rao, Mr. G. Narayana Rao, Mr. G.
Ashok Kumar and Mr. G. Santosh Kumar. KPEL started its operations
as a manufacturer of LPG cylinders but given the high competition
in the industry resulting into pressure on its profitability the
company diversified into the manufacture of electrical products
especially distribution transformers and execution of turnkey
projects in the year 2003.

Recent Results:

In FY11, KPEL reported operating income of INR37.72 crore and net
profit margin of INR0.39 crore.


MODERN CHEMICALS: ICRA Reaffirms '[ICRA]BB-' Bank Loan Rating
-------------------------------------------------------------
The ratings of '[ICRA]BB-' and '[ICRA]A4' have been reaffirmed
for the INR17.5 crore bank limits of Modern Chemicals.  The
outlook on the long-term rating is "stable".

In arriving at the ratings, ICRA has taken a consolidated view of
Paswara Group companies as all the companies are closely held by
the same promoter family and inter-group transactions are likely
to continue in future. The ratings of Modern Chemicals are
constrained by the moderately high financial risk profile
characterized by low return indicators, moderately high gearing
level and moderate coverage indicators; tight liquidity position
as reflected in high utilization of working capital limits;
exposure to commodity price risk and foreign exchange
fluctuation. The ratings, however, factor in long experience of
the promoters and established presence of the firm in trading of
Industrial Burning Oils and Industrial Solvents.

                      About Modern Chemicals

Modern Chemicals was incorporated as a partnership firm started
by two brothers Mr. Rajeshwar Prasad and Late Mr. Ram Autar. It
was in the business of producing Lime, Limestone, Surkhi, Coal,
Paints and Chemicals. In 2002, another partnership firm of the
same name was formulated by their three sons for the business of
trading of Petroleum products. Both these firms were merged in
2003 with all the five becoming equal partners and the earlier
business of lime etc. was closed. In 2007, the partnership was
reconstituted with the three brothers Vinod Kumar, Arvind Kumar
and Kapil Kumar becoming equal partners. At present, Modern
Chemicals trades in burning oils such as Heavy cut oil, Mix black
oil, Furnace oil, and chemicals like Glycerine etc.

During 2010-11, Modern Chemicals reported net sales and profit
after tax of INR38.39 crore and INR0.0.86 crore respectively;
while the company had reported net sales and profit after tax of
INR38.19 crore and INR0.80 crore respectively in 2009-10.


PALTECH COOLING: ICRA Puts [ICRA]BB+ Rating on INR11cr Bank Loan
----------------------------------------------------------------
ICRA has assigned '[ICRA]BB+' rating to INR11.00 Crore fund based
limits, and INR5.85 Crore of non fund based limits of Paltech
Cooling Towers and Equipments Limited. The long term rating
carries a stable outlook.

ICRA's ratings take into account the risks arising out of the
highly competitive and fragmented nature of the company's core
business of cooling towers, modest scale of operations of the
company with respect to industry majors, susceptibility of its
margins to raw material price fluctuations and working capital
intensive nature of the business. The ratings are however
supported by the established track record of the promoter in
cooling tower and chilling plant industry, comfortable order book
position, low gearing levels and the positive demand outlook for
the businesses that it is operating in.

Paltech Cooling Towers & Equipments Limited started its
commercial production in the year 1986 in the field of Cooling
Towers and Chilling Plants for various industrial applications
from concept to commissioning. Besides this the company is also
engaged into supply of all types of components of cooling towers
like Gear reducers, PVC Fills, Flow controlled valve, FRP Fan
cylinders, Wooden components, Nozzles etc. The company also
undertakes the redesigning and up gradation of cooling towers.
The company has an integrated production unit in Sohna (Gurgaon
District) spread over an area of more than 1 Lakh Sq. Ft. with
warehousing capacity. The company has technical collaboration
with IIT Mumbai in designing power saving FRP fans and gear
reducers. The company has the membership of the reputed
organizations like CTI (USA), CII, FICCI, and ASSOCHAM. The
Company supplies its products majorly in domestic market only
with a marginal part of total production being exported to Nepal,
Bhutan, and Dubai, Sri Lanka besides African, Far East and Middle
East Countries.

In FY2011 the Company achieved an operating income of INR29.2
Crore and a PAT of INR1.15 Crore. The gearing level of the
company as on March 31, 2011, was at 0.90 times.


PASWARA CHEMICALS: ICRA Reaffirms '[ICRA]BB' INR15cr Loan Rating
----------------------------------------------------------------
The rating of '[ICRA]BB' has been reaffirmed for the INR15 crore
bank limits (enhanced from INR14.18 crore) of Paswara Chemicals
Limited.  The outlook on the rating is "stable".

In arriving at the rating, ICRA has taken a consolidated view of
Paswara Group companies as all the companies are closely held by
the same promoter family and inter-group transactions are likely
to continue in future. The reaffirmation of the rating for PCL
factors in the long experience of the promoters and established
presence of the company in Industrial Burning Oils and Industrial
Solvents and moderate concentration risk on account of
diversified customer base. The rating is, however, constrained by
the moderately high financial risk profile of the company
characterized by moderate return indicators, moderately high
gearing level and moderate coverage indicators; tight liquidity
position as reflected in high utilization of working capital
limits and the vulnerability of profitability to fluctuation in
crude oil prices. Significant deterioration in profitability or
increase in working capital intensity leading to tightening of
the liquidity position would be key rating sensitivities.

                        About Paswara Chemicals

Paswara Chemicals Ltd was initially incorporated under the name
Paswara Petrochemicals Limited in 1997 for manufacturing of
Industrial Solvents and Organic composite chemicals. In 2003, a
new company with the name Paswara Chemicals Ltd was formed.
Paswara Petrochemicals Ltd was closed down with PCL taking over
all assets of Paswara Petrochemicals Ltd. During 2007, the
company installed new plants of industrial solvents and refining
of mixed fuel oil and waste oils and dismantled the old plant due
to certain defects. Plants to manufacture Glycerine and Edible
Oils were installed in 2008-09 and 2009-10 respectively. At
present, the total capacity of all products combines up to 438000
MT per annum.

During 2010-11, PCL reported net sales and profit after tax of
INR56.08 crore and INR1.78 crore respectively; while the company
had reported net sales and profit after tax of INR66.11 crore and
INR3.21 crore respectively in 2009-10.


PASWARA IMPEX: ICRA Reaffirms '[ICRA]BB' INR3.98cr Loan Rating
--------------------------------------------------------------
The rating of '[ICRA]BB' has been reaffirmed for the INR3.98
crore bank limits (reduced from INR4.8 crore) of Paswara Impex
Limited.  The outlook on the rating is "stable".

In arriving at the rating, ICRA has taken a consolidated view of
Paswara Group companies as all the companies are closely held by
the same promoter family and inter-group transactions are likely
to continue in future. The reaffirmation of the rating for PIL
factors in long experience of the promoters in Industrial Burning
Oils and Industrial Solvents and moderate concentration risk on
account of diversified customer base. The rating is, however,
constrained by the moderately high financial risk profile of the
company characterized by low return indicators, moderately high
gearing level and moderate coverage indicators; tight liquidity
position as reflected in high utilization of working capital
limits; the exposure of the company to commodity price risk and
foreign exchange fluctuation. Significant deterioration in
profitability or increase in working capital intensity leading to
tightening of the liquidity position would be key rating
sensitivities.

Paswara Impex Limited was incorporated in 2003 for trading of
petrochemicals and chemicals. Till 2008-09, the company was
involved in trading of chemicals such as crude mineral oil,
rubber process oil etc. Since 2009-10, the company has also
started production at its petrochemicals plant in addition to
being involved in trading. The company currently produces burner
oil and thinner and trades in chemicals such as Thinner, Bitumen
cutback, mixed solvents etc.

During 2010-11, PIL reported net sales and profit after tax of
INR17.08 crore and INR0.21 crore respectively; while the company
had reported net sales and profit after tax of INR17.83 crore and
INR0.72 crore respectively in 2009-10.


PIBCO INDIA: Fitch Puts Rating on Two Loan Class at 'D+'
--------------------------------------------------------
Fitch Ratings has assigned Pibco India Pvt. Ltd. a National Long-
Term rating of 'Fitch D(ind)'.

The ratings reflect current delays in the payment of term loan
instalments and in the servicing of interest.  PIBCO has failed
to meet its monthly term loan repayments of more than INR100,000
since the first payment date in July 2011 due to liquidity
pressures (given the nature of its dealership business).  It has
also delayed the servicing of term loan interests in each of the
last 12 months.

Fitch notes that the ratings may be upgraded if term liabilities
are repaid and interest obligation are serviced on a timely basis
for two consecutive quarters.

PIBCO is an authorized dealer of Mahindra & Mahindra Ltd vehicles
in Guwahati.  It engages in the sale and servicing of M&M
vehicles, along with the sale of spare parts and related
accessories of utility vehicles, light commercial vehicles and
tractors.  PIBCO reported provisional revenues of INR766.3
million and EBITDAR margins of 3.5% in FY11, compared with INR463
million and 2.6% in FY10, respectively.

Fitch has also assigned ratings to Pibco's bank loans, as
follows:

  -- Long-term loans of INR10 million: 'Fitch D(ind)'
  -- Fund-based limits of INR100 million: 'Fitch D(ind)'


RAIN CII: Moody's Withdraws 'B2' Corporate Family Ratings
---------------------------------------------------------
Moody's Investors Service has withdrawn Rain CII Carbon (Vizag)
Limited's corporate family rating of B2 and senior secured bank
credit facility rating of B2. Both ratings had a stable outlook
prior to withdrawal.

Ratings Rationale

Moody's has withdrawn the rating for its own business reasons.

Moody's continues to assign ratings to RCCVL's sister company,
Rain CII Carbon LLC.  RCC has a corporate family rating of B1,
senior secured bank credit facility rating of B1 and backed
senior secured rating of B1. All ratings have a stable outlook.

RCCVL, together with its sister company RCC, is one of the
leading producers of calcined coke ("CPC") in the world. The
combined group is referred to as CPCUSA, with RCC contributing
about two-thirds of group revenue.

CPCUSA sells CPC mainly for the production of primary aluminum
and, to a lesser extent, for the production of titanium dioxide.
CPC is a critical raw material in the production of carbon anodes
used in aluminum smelting and consumes around 90% of global CPC
output.


SAI GLOBAL: ICRA Cuts Rating on INR27.8cr Term Loan to '[ICRA]BB'
-----------------------------------------------------------------
ICRA has revised downwards the long rating from '[ICRA]BB' to
'[ICRA]B+' to the INR27.8 crore term Loan Facilities and INR18.0
crore of long term fund based bank facilities of Sai Global
Yarntex (India) Private Limited.  ICRA has also reaffirmed the
short term rating of '[ICRA]A4' to the INR2.1 crore short-term
non fund based bank facilities of the company.

The revision in long term rating considers the anticipated
deterioration in company's financial performance, especially the
capital structure, coverage indicators and stretched liquidity
profile given the large debt-funded capital expenditure of the
company and the challenging environment for cotton spinners with
volatile cotton prices. The ratings are also constrained by the
company's modest scale of operations and intense competition in
the fragmented industry limiting the pricing flexibility of the
company. The ratings however favorably factor in the mill's
favorable location in a major cotton growing belt of Andhra
Pradesh, and support of the promoters in the form of equity
infusion. ICRA expects the company's profitability to be under
pressure in the short to medium term with inventory losses and
volatile cotton prices.

                           About Sai Global

Sai Global Yarntex (India) Private Limited, was incorporated in
December 2005 in Ongole, Prakasam District, Andhra Pradesh. The
Company is engaged in the production of cotton yarn with an
installed capacity of 25,000 spindles. The promoters and their
relatives hold the entire share capital.

Recent Results:

SGYIPL reported a net profit of INR1.1 crore on an operating
income of INR41.4 crore in 2010-11 as against a net profit
INR0.5 crore on an operating income of INR24.8 crore in 2009-10.
For the first quarter of 2011-12, the company's profit before
depreciation and tax of INR0.3 crore on an operating income of
INR12.2 crore.


SANJAY COMMERCIAL: ICRA Puts '[ICRA]BB' Rating on INR1cr Loan
-------------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]BB' to the INR1.0
crore fund based facilities of Sanjay Commercial Company. ICRA
has also assigned a short term rating of '[ICRA]A4' to the
INR29.0 crore non-fund based facilities. The outlook on the long
term rating is stable.

The ratings take into account the experience of the promoters in
the metal and ferro alloy trading business, diversified trading
products portfolio which reduces the firm's dependence on a
single product and the consistent growth in turnover in the last
three years. The ratings are, however, constrained by the limited
value addition in the metal trading business and a highly
fragmented nature of the industry, characterized by intense
competition, both of which result in thin operating and net
profitability. ICRA also notes that the firm remains exposed to
price risk due to absence of back of back order arrangement with
the clients, which is further accentuated by the firm's exposure
to foreign currency risk on account of the absence of any hedging
mechanism for its payments for imported material. The low
profitability coupled with a high level of debt results in weak
debt-coverage indicators. ICRA has also taken note of the risk
associated with the partnership status of the firm, including the
risk of capital withdrawals by the partners.

                       About Sanjay Commercial

SCC was incorporated in 1968 as a proprietorship concern and was
subsequently converted into a partnership firm in 2006. The
promoters have an experience of nearly four decades in metal and
ferro alloys trading business. The firm primarily trades in non
ferrous metals, minor metals and ferro alloys.

Recent Results:

In FY11, SCC reported a profit after tax (PAT) of INR0.81 crore
on an operating income (OI) of INR110.48 crore as against a PAT
of INR0.69 crore on an OI of INR77.01 crore in FY10.


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


CORSAIR (JERSEY) NO. 2: S&P Ups Series 52 Tranche Rating to 'BB-'
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on three
tranches relating to three Japanese synthetic collateralized debt
obligation (CDO) transactions, and at the same time removed these
ratings from CreditWatch with positive implications.

"The rating actions are part of our regular monthly review of
synthetic CDOs for which ratings have been placed on CreditWatch
with positive or negative implications. These actions
incorporate, among other things, the effect of rating migration
within reference portfolios," S&P related.

Ratings Raised, Removed From CreditWatch Positive
Corsair (Jersey) No. 2 Ltd.

Floating rate secured portfolio credit-linked series 52
(Portfolio F360)
To          From                 Issue amount
BB- (sf)    B+ (sf)/Watch Pos    JPY1.0 billion

Fixed rate credit-linked loan series 58
To          From                 Issue amount
BB- (sf)    B+ (sf)/Watch Pos    JPY3.0 billion

Signum Vanguard Ltd.
Class A secured fixed rate credit-linked loan 2005-3
To          From                 Issue amount
AA- (sf)    A+ (sf)/Watch Pos    JPY4.0 billion


JLOC 41: Fitch Affirms Rating on Three Note Classes at 'Dsf'
------------------------------------------------------------
Fitch Ratings has downgraded JLOC 41, LLC's class D-2 notes due
February 2015 and affirmed the rest of its ratings.  The
transaction is a Japanese multi-borrower type CMBS
securitisation.  The rating actions are as follows:

  -- JPY0* Class C-3 affirmed at 'Dsf'
  -- JPY0* Class D-1 affirmed at 'Dsf'
  -- JPY0.34bn* Class D-2 downgraded to 'Csf' from 'CCsf';
  -- Recovery Estimate revised to 0% from 40%
  -- JPY0* Class D-3 affirmed at 'Dsf'

*as of November 21, 2011

The downgrade of the class D-2 notes reflects Fitch's view that
principal loss on the notes is inevitable as a result of all
remaining properties' sales.  The remaining three properties
backing one defaulted loan were all sold in September 2011.  The
sales proceeds were used to repay the principal of the class A, B
and C-2 notes in full at November payment date, while the class
D-2 notes were partially repaid at that time.  Fitch believes the
class D-2 note principal will be written down, following the
servicer's determination of principal loss from a defaulted loan.

Recovery Estimate to the class D-1 notes will no longer be
calculated as the principal of the notes has already been fully
written down.

At closing in June 2008, the notes were ultimately secured by
three underlying loans collateralised by 31 properties.  After
all underlying loans were defaulted, workouts have been
effectively completed to date and no property remains in the
transaction.


MIZUHO FINANCIAL: Moody's Raises Preferred Stock Rating to 'Ba2'
----------------------------------------------------------------
Moody's Japan K.K. has confirmed the Prime-1 rating of Mizuho
Financial Group, Inc. and all the long-term ratings of its three
subsidiary banks: Mizuho Bank, Ltd., Mizuho Corporate Bank, Ltd.,
and Mizuho Trust & Banking Co., Ltd. and Trust & Custody Services
Bank, Ltd.

Moody's also affirmed Trust & Custody Services Bank's C BFSR and
the Prime-1 ratings for Mizuho Bank, Mizuho Corporate Bank,
Mizuho Trust & Banking and Trust & Custody Services Bank.

At the same time, Moody's upgraded to C- from D+ the standalone
bank financial strength ratings (BFSR) and adjusted to Baa1 from
Baa3 the Baseline Credit Assessments for the Mizuho banks (Mizuho
Bank, Mizuho Corporate Bank and Mizuho Trust & Banking).

Moody's also upgraded the preferred stock ratings of preferred
securities issued by Mizuho Financial Group's subsidiaries to Ba2
(hyb) from B1 (hyb) due to the positive adjustment of the Mizuho
banks' Baseline Credit Assessments.

The outlook is stable for all the ratings of Mizuho Bank, Mizuho
Corporate Bank, Mizuho Trust & Banking and Trust & Custody
Services Bank.

These actions conclude the rating review of the affected banks
initiated on August 24, 2011. The confirmation of the Group's
debt and deposit ratings combined with the positive adjustment of
the Mizuho banks' Baseline Credit Assessment brings these ratings
in line with the guidelines expressed in Moody's Special Comment
"Japanese Bank Ratings Increasingly Constrained by the
Government's Rating", August 2011. These expressed Moody's
expectation that systemic uplift for the banks in Japan's three
"Megabank" groups would normally be limited to three notches
above their standalone ratings (or Baseline Credit Assessments).
The Mizuho banks had been a temporary outlier to these guidelines
pending Moody's review of the Bank Financial Strength Ratings.

Ratings Rationale

The upgrade of the Mizuho banks' BFSR and positive adjustment of
the Baseline Credit Assessment reflects Moody's opinion that the
likelihood that they would need external capital support has
substantially declined from two years ago, and when their BFSRs
were lowered to D+.

This re-assessment is underpinned by the substantially stronger
state of their core capital, a result in turn of two series of
common stock issues (approximately JPY1.3 trillion) and retained
earnings of approximately JPY0.4 trillion during the past two
fiscal years since the downgrade in April 2009.

Consequently, Mizuho Financial Group's Tier 1 ratio improved to
11.89% at end-September, 2011 from 6.37% at end-March, 2009.
Furthermore, the quality of Mizuho Financial Group's capital is
now much stronger than it was in the past. Stripping out
preferred stocks and preferred securities, its common equity Tier
1 (CET1) ratio was slightly less than 8% at end-September, 2011
compared to approximately 7% at end-September 2010. Its liquidity
remains solid, as shown by its consolidated loan-to-deposit ratio
of slightly less than 70% at end-September, 2011, slightly weaker
than its Japanese Mega Bank peer but strong compared to other
major global banks.

The upgrade also considers the relative isolation of Japanese
banks -- including Mizuho Financial Group -- from the unfolding
sovereign debt crisis in Europe. At end-September 2011, Mizuho
Financial Group's exposures in Portugal, Italy, Ireland, Greece,
Spain amounted to approximately USD4.18 billion or just only 1.1%
of its overseas exposures, and most exposures were towards large
blue-chip companies. It has no exposure to these countries'
government bonds. Although there might be an indirect impact of
the European crisis depending on the development going forward,
it would be very much limited when compared with other major
global banks in Europe and US. Within Japan, it also considers
the limited negative impact of the March 11 earthquake and Mizuho
Bank's information technology systems failures after the
earthquake. For the six months ending September 2011,
consolidated direct earthquake-related costs were approximately
JPY6.5 billion - mostly in credit costs - while systems failures
losses were less than JPY1 billion.

For the first half of FYE3/2012, Mizuho Financial Group posted
JPY254.6 billion of consolidated net income and maintained its
original target of full-year consolidated net income of JPY460
billion. The latter level represents a significant recovery from
the net losses of JPY588.8 billion in FYE3/2009 because of a
recovery in earnings and a reduction in credit expenses. Moody's
base case expectation is that the Group can achieve its stated
full-year earnings target.

The upgrade also factors in possible benefits from the re-
organization of the banks into one entity in 2013, and which the
Group expects will result in net cost reductions and increased
revenue of JPY100 billion. While consummating the merger around
the end of the first half of fiscal 2013, Mizuho Financial Group
plans to also implement its "one bank" structure substantively
from April 2012 in order to achieve synergies in advance of the
actual merger.

Though the costs tied to restructuring and system implementation
will lower the banks' profitability in the short term, Moody's
considers this re-organization as credit positive for Mizuho
Financial Group, given that it would reduce operating expenses
due to elimination of replications in shared functions. It will
also offer more effective use of economic/regulatory capital and
stronger liquidity sources at the group level.

Preferred securities issued by MHFG's overseas special purpose
corporations -- which are rated four notches below Mizuho banks'
Baseline Credit Assessments, including one notch for structural
subordination at the holding company level -- were upgraded to
Ba2 (hyb) from B1 (hyb) in line with the upgrade of Mizuho banks'
BFSR to C- (equivalent to Baseline Credit Assessment of Baa1).

The three notches of support uplift for Mizuho banks reflect
Moody's view that there remains a very high probability of
systemic support for the combined banking operations of Mizuho
Bank, Mizuho Corporate Bank, and Mizuho Trust & Banking, given
the Group's importance to the Japanese economy/financial markets
and the low substitutability of those banks. Mizuho Financial
Group's systemic importance is also evidenced by its inclusion in
the provisional list of 29 global systemically important
financial institutions (G-SIFIs) announced by the Financial
Stability Board (FSB) on Nov. 4, 2011.

The stable outlook reflects the consideration that Mizuho
Financial Group's capital is capable of absorbing downward
pressure, according to Moody's stress testing framework, allowing
the Mizuho banks to maintain a Tier 1 ratio of 10%, or above,
even under an adverse scenario. Also, Mizuho Financial Group's
strong liquidity means that it is relatively well protected
against confidence shocks in what is likely to continue to be a
volatile global financial environment.

Downward pressure on the ratings would include 1) signs that the
Group's Tier 1 ratio could decline below 10% due to a more
difficult credit environment for its major businesses (SME, large
corporate lending inside and outside Japan, and securities
business), 2) a decline in the Nikkei stock index to below
JPY7,000 which would lead to an increase in the Group's
realized/unrealized losses on its securities holdings of
approximately JPY500 billion, 3) further earnings pressure such
as a decline in pre-provision profits or a rise in credit costs
that pushed the Group into a bottom line loss, and 4) a downgrade
of the Japan sovereign rating.

Given the two notch uplift of the Baseline Credit Assessment and
the fact that there is now three notches of systemic uplift in
line with Moody's guidelines, upward pressure on the ratings is
unlikely. For the Mizuho banks' ratings to be eventually
upgraded, Moody's considers the following factors as crucial: 1)
A further improvement in the quality of MHFG's Tier 1 capital
such that the CET1 ratio rises above 8% on a sustained basis, 2)
an improvement in profitability such that there is a sustainable
increase in the ratio of consolidated net income to average risk-
weighted assets to above 1.0%, and 3) the ongoing disposal of
highly volatile risk assets, such as Japanese equities.

List of the affected ratings are as follows:

Upgraded the rating

Mizuho Capital Investment (USD) 1 Limited

Preferred stock non-cumulative (foreign currency): to Ba2 (hyb)
from B1 (hyb)

Mizuho Capital Investment (USD) 2 Limited

Preferred stock non-cumulative (foreign currency): to Ba2 (hyb)
from B1 (hyb)

Mizuho Capital Investment (JPY) 5 Limited

Preferred stock non-cumulative (foreign currency): to Ba2 (hyb)
from B1 (hyb)

Mizuho Capital Investment (JPY) 6 Limited

Preferred stock non-cumulative (foreign currency): to (P)Ba2
from (P)B1

Mizuho Capital Investment (JPY) 7 Limited

Preferred stock non-cumulative (foreign currency): to (P)Ba2
from (P)B1

Confirmed the rating

Mizuho Financial Group, Inc.

Commercial Paper (domestic currency): Prime-1

Mizuho Bank, Ltd.

Long-term bank deposit rating (domestic and foreign currency):
  A1
Long-term issuer rating: A1
Senior unsecured debt rating (domestic currency): A1
Senior subordinated debt rating (domestic currency): A2
Senior subordinated shelf registration rating (domestic
  currency): (P)A2
Senior subordinated Medium Term Note Program rating (domestic
  currency): (P)A2
Junior subordinated shelf registration rating (domestic
  currency): (P)A3
Junior subordinated Medium Term Note Program rating (domestic
  currency): (P)A3

Mizuho Corporate Bank, Ltd.

Long-term bank deposit rating (domestic and foreign currency):
  A1
Long-term issuer rating: A1
Senior unsecured debt rating (domestic currency): A1
Senior unsecured shelf registration rating (domestic currency):
  (P)A1
Senior unsecured Medium Term Note Program rating (foreign
  currency): (P)A1
Senior subordinated debt rating (domestic currency): A2
Senior subordinated shelf registration rating (domestic
  currency): (P)A2
Senior subordinated Medium Term Note Program rating (foreign
  currency): (P)A2
Junior subordinated shelf registration rating (domestic
  currency): (P)A3
Junior subordinated Medium Term Note Program rating (foreign
  currency): (P)A3

Mizuho Corporate Asia (HK) Limited

Senior unsecured Medium Term Note Program rating (foreign
  currency): (P)A1

Mizuho Corporate Bank Nederland N.V.

Senior unsecured Medium Term Note Program rating (foreign
  currency): (P)A1

Mizuho Corporate Bank, Ltd., Hong Kong Branch

Long-term Deposit Note/CD Program (domestic currency): A1

Mizuho Corporate Bank, Ltd., Paris Branch

Long-term bank deposit rating (foreign currency): A1

Mizuho Corporate Bank, Ltd., Sydney Branch

Senior unsecured Medium Term Note Program rating (foreign
  currency): (P)A1

Mizuho Finance (Aruba) A.E.C.

Senior subordinated Medium Term Note Program rating (foreign
  currency): (P)A2
Junior subordinated debt rating (foreign currency): A3 (hyb)
Junior subordinated Medium Term Note Program rating (foreign
  currency): (P)A3

Mizuho Finance (Cayman) Limited

Senior subordinated Medium Term Note Program rating (foreign
  currency): (P)A2
Junior subordinated debt rating (foreign currency): A3 (hyb)
Junior subordinated Medium Term Note Program rating (foreign
  currency): (P)A3

Mizuho Finance (Curacao) N.V.

Senior unsecured Medium Term Note Program rating (foreign
  currency): (P)A1
Senior subordinated debt rating (foreign currency): A2
Senior subordinated Medium Term Note Program rating (foreign
  currency): (P)A2
Junior subordinated Medium Term Note Program rating (foreign
  currency): (P)A3

Mizuho Financial Group (Cayman) Limited

Senior subordinated debt rating (foreign currency): A2
Senior subordinated Medium Term Note Program rating (foreign
  currency): (P)A2
Junior subordinated Medium Term Note Program rating (foreign
  currency): (P)A3

Mizuho Trust & Banking Co., Ltd.

Long-term bank deposit rating (domestic and foreign currency):
  A1
Senior unsecured Medium Term Note Program rating (domestic
  currency): (P)A1
Senior subordinated debt rating (domestic currency): A2
Senior subordinated shelf registration rating (domestic
  currency): (P)A2
Junior subordinated shelf registration rating (domestic
  currency): (P)A3

Mizuho TB (Aruba) A.E.C.

Senior subordinated Medium Term Note Program rating (foreign
  currency): (P)A2

Trust & Custody Services Bank, Ltd.

Long-term bank deposit rating (domestic and foreign currency):
  A1

Affirmed the rating

Mizuho Bank, Ltd.

Short-term bank deposit rating (domestic and foreign currency):
  Prime-1

Mizuho Corporate Bank, Ltd.

Short-term bank deposit rating (domestic and foreign currency):
  Prime-1

Mizuho Corporate Asia (HK) Limited

Other short-term rating (foreign currency): (P)Prime-1

Mizuho Corporate Bank Nederland N.V.

Other short-term rating (foreign currency): (P)Prime-1

Mizuho Corporate Bank, Ltd., Cayman Branch

Short-term bank deposit rating: Prime-1

Mizuho Corporate Bank, Ltd., Paris Branch

Short-term bank deposit rating (foreign currency): Prime-1

Mizuho Corporate Bank, Ltd., Sydney Branch

Other short-term rating (foreign currency): (P)Prime-1

Mizuho Funding LLC

Commercial Paper (domestic currency) : Prime-1

Mizuho Finance (Curacao) N.V.

Other short-term rating (foreign currency): (P)Prime-1

Mizuho Trust & Banking Co., Ltd.

Short-term bank deposit rating (domestic and foreign currency):
  Prime-1
Other short-term rating (domestic currency): (P)Prime-1

Trust & Custody Services Bank, Ltd.

Short-term bank deposit rating (domestic and foreign currency):
  Prime-1

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

Headquartered in Tokyo, Mizuho Financial Group, Inc. is one of
the largest financial group in Japan with a number of enterprises
operating under its umbrella: Mizuho Bank, Ltd. (a retail/middle
market bank), Mizuho Corporate Bank, Ltd. (a wholesale corporate
bank), Mizuho Trust & Banking Co, Ltd. (a trust bank), Trust and
Custody Services Bank Ltd. (a custodial bank), Mizuho Securities
Co., Ltd. (a securities brokerage), as well as a number of other
entities, which together provide a comprehensive array of
financial services.


OLYMPUS CORP: "Significant Fraud Evident," KMPG Chief Says
----------------------------------------------------------
Bloomberg News reports that KPMG International LLP's global
chairman, Michael Andrew, said fraud was evident at Olympus Corp.
and his firm met all legal obligations to pass on information
related to Olympus's 2008 acquisition of Gyrus Group Ltd. before
it was replaced as the camera maker's auditor.

"We were displaced as a result of doing our job," Mr. Andrew told
reporters at the Foreign Correspondents' Club in Hong Kong on
Friday, Bloomberg reports. "It's pretty evident to me there was
very, very significant fraud and that a number of parties had
been complicit."

Bloomberg relates that Mr. Andrew said official conclusions about
Olympus's accounting practices will come from investigations by
Japanese authorities.  Tokyo-based Olympus is waiting for a
third-party panel's report, spokesman Yasutoshi Fujiwara said in
response to Mr. Andrew's statement, according to Bloomberg.

Mr. Andrew, as cited by Bloomberg, also said that a dispute
between U.S. and Chinese regulators showed the need for global
rules and criticized European Union proposals for more controls
on the so-called "Big Four" accounting firms that include KPMG
such as forcing them to share work with smaller rivals.

According to Bloomberg, Mr. Andrew, speaking on 'Fraud, Financial
Crises, and the Future of the Big Four,' said he was shocked by
the political and regulatory interference KPMG experienced in its
accounting related to Greek debt, underlining the importance of
having global standards.

The European Commission may restrict KPMG, PricewaterhouseCoopers
LLP, Deloitte & Touche LLP and Ernst & Young LLP from offering
consulting services, according to a draft version of the
proposals from the EU's executive arm obtained by Bloomberg News.

                    Securities Investment Scandal

The Troubled Company Reporter-Asia Pacific reported on Nov. 9,
2011, that Block & Leviton LLP, a Boston-based law firm
representing investors seeking to recover money lost due to
investment fraud, said it is investigating possible securities
fraud claims involving Olympus Corp.

On Oct. 14, 2011, Olympus's Board of Directors fired the
Company's then-President and Chief Executive Officer, Michael
Woodford, after Mr. Woodford attempted to force an inquiry into
Olympus's acquisition of British medical device maker Gyrus in
2008.  At issue were the $687.0 million in advisory fees paid to
a relatively obscure financial firm in relation to the
acquisition.  The fees were approximately one-third of the $2.0
billion acquisition price, which is almost 30 times higher than
normal.

On Nov. 8, 2011, the Company admitted to an accounting cover-up,
stating that the advisory fees paid in connection with the Gyrus
deal and other acquisitions were used to hide steep investment
losses that began in approximately 1990.  Speaking at a press
conference, the Company's President, Shuichi Takayama, confessed
that "[w]e have conducted extremely improper accounting" and that
"[o]ur previous statements were in error."

The Company's admission, released just prior to the opening of
trading on the Tokyo Stock Exchange, where Olympus's common stock
is traded, sent shares spiraling downward by 29% over the prior
day's close to JPY734 (or $9.40).  The Company's American
Depository Receipts also plummeted on the news, losing 31%
compared to the prior day's close of $13.72.  Since mid-October
when Mr. Woodward's allegations first surfaced, the Company's
stock has lost approximately 70% of its market value.

Amidst the growing accounting scandal that could be one of the
largest in corporate history, the TSE has indicated that the
Company's shares could be de-listed.  In addition, the Japanese
Securities and Exchange Surveillance Commission is said to be
investigating along with the U.S. Federal Bureau of
Investigation, and the U.S. Securities and Exchange Commission.

                        About Olympus Corp.

Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products.  As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.


OLYMPUS CORP: Axes America Closed Biz After SEC, FINRA Probes
-------------------------------------------------------------
Bloomberg News reports that Axes America LLC, the now-defunct
brokerage firm that advised Olympus Corp. in a transaction being
investigated by the FBI, ceased operations in March 2008 soon
after U.S. regulators began examining its books, records show.

Since 2006, New York-based Axes America served as adviser
to Olympus in its $2.1 billion acquisition of Gyrus Group Plc, a
British medical device manufacturer, in 2008, Bloomberg says.

Bloomberg relates that PriceWaterhouseCoopers LLP, which examined
the transaction for the Olympus board, reported last month that
the Tokyo-based company paid $687 million in fees to Axes America
and a related Cayman Islands fund, Axam Investments Ltd.

Olympus, which subsequently said it paid inflated fees to
advisers to hide losses, is under investigation in the U.S., U.K.
and Japan, the report notes.

According to Bloomberg, Axes America disclosed in a Feb. 28,
2008, filing with the U.S. Securities and Exchange Commission
that the SEC had examined its books and records in November 2007
and FINRA -- the Financial Industry Regulatory Authority -- had
done so in January 2008.  The firm, says Bloomberg, described
both actions as "routine" and said it was "confident of a
favorable outcome."

Axes withdrew its registration as a broker-dealer on March 5,
2008 -- six days after its disclosure of the SEC and FINRA
reviews, according to SEC records obtained by Bloomberg.

"The timing of the two is too coincidental," Anthony Catanach,
who teaches accounting at the Villanova University School of
Business, told Bloomberg a phone interview.  "It's extremely
suspicious."

Bloomberg, citing a person familiar with the matter, says
investigators including the Federal Bureau of Investigation and
the SEC have begun an examination of the Gyrus deal and three
other acquisitions by Olympus.  Part of the probe of the camera
and endoscope maker centers on fees paid to Axam Investments,
Bloomberg relates citing another person familiar with the matter.

                     Securities Investment Scandal

The Troubled Company Reporter-Asia Pacific reported on Nov. 9,
2011, that Block & Leviton LLP, a Boston-based law firm
representing investors seeking to recover money lost due to
investment fraud, said it is investigating possible securities
fraud claims involving Olympus Corp.

On Oct. 14, 2011, Olympus's Board of Directors fired the
Company's then-President and Chief Executive Officer, Michael
Woodford, after Mr. Woodford attempted to force an inquiry into
Olympus's acquisition of British medical device maker Gyrus in
2008.  At issue were the $687.0 million in advisory fees paid to
a relatively obscure financial firm in relation to the
acquisition.  The fees were approximately one-third of the
$2.0 billion acquisition price, which is almost 30 times higher
than normal.

On Nov. 8, 2011, the Company admitted to an accounting cover-up,
stating that the advisory fees paid in connection with the Gyrus
deal and other acquisitions were used to hide steep investment
losses that began in approximately 1990.  Speaking at a press
conference, the Company's President, Shuichi Takayama, confessed
that "[w]e have conducted extremely improper accounting" and that
"[o]ur previous statements were in error."

The Company's admission, released just prior to the opening of
trading on the Tokyo Stock Exchange, where Olympus's common stock
is traded, sent shares spiraling downward by 29% over the prior
day's close to JPY734 (or $9.40).  The Company's American
Depository Receipts also plummeted on the news, losing 31%
compared to the prior day's close of $13.72.  Since mid-October
when Mr. Woodward's allegations first surfaced, the Company's
stock has lost approximately 70% of its market value.

Amidst the growing accounting scandal that could be one of the
largest in corporate history, the TSE has indicated that the
Company's shares could be de-listed.  In addition, the Japanese
Securities and Exchange Surveillance Commission is said to be
investigating along with the U.S. Federal Bureau of
Investigation, and the U.S. Securities and Exchange Commission.

                        About Olympus Corp.

Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products.  As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.


OLYMPUS CORP: Ex-Chairman, Two Other Executives Quit Board
----------------------------------------------------------
channelnewsasia.com reports that Olympus Corp.'s ex-chairman and
two other directors have quit the firm's board in the wake of a
loss cover-up scandal unveiled since the sacking of the firm's
British chief executive.

According to the news agency, Tsuyoshi Kikukawa resigned from the
firm's board ahead of a key company meeting Friday, the company
said in a statement late Thursday, adding that its disgraced
former executive vice president and corporate auditor also
formally stepped down as company directors.

channelnewsasia.com relates that the company said Mr. Kikukawa
resigned as chairman and president in October while Mr. Hisashi
Mori was sacked as executive vice president earlier this month
and auditor Hideo Yamada "showed his intention to resign."

The trio had remained as board members, but have now left the
company, the report says.

They have been accused of hiding investment losses that may total
more than JPY100 billion (US$1.3 billion) dating back to the
1990s, according to channelnewsasia.com.

On Thursday, the firm's current president, Shuichi Takayama, said
the scandal-hit company's management team was prepared to step
down when Olympus was back on the road to recovery, the report
adds.

                Woodford Pledges to Work with Board

Meanwhile, Bloomberg News reports that Olympus Corp.'s former
president Michael C. Woodford pledged to work with the company's
board to try and avoid delisting after three executives
implicated in a scheme to hide losses resigned.

The company's priority is to produce accounts by the Dec. 14
deadline set by regulators to avoid being removed from public
trading, Mr. Woodford told reporters in Tokyo Friday after his
first board meeting since being axed, according to Bloomberg.

Bloomberg relates that the stock jumped as much as 25% before
closing 8.6% higher at JPY1,107 in Tokyo on Friday as investors
bet the scandal would be contained and after Olympus last night
promised to put a rescue plan to shareholders and revamp
management.

The resignation of former Olympus Chairman Tsuyoshi Kikukawa and
two senior aides gives the company an opportunity to add board
members untainted by the scandal, Bloomberg notes.

                     Securities Investment Scandal

The Troubled Company Reporter-Asia Pacific reported on Nov. 9,
2011, that Block & Leviton LLP, a Boston-based law firm
representing investors seeking to recover money lost due to
investment fraud, said it is investigating possible securities
fraud claims involving Olympus Corp.

On Oct. 14, 2011, Olympus's Board of Directors fired the
Company's then-President and Chief Executive Officer, Michael
Woodford, after Mr. Woodford attempted to force an inquiry into
Olympus's acquisition of British medical device maker Gyrus in
2008.  At issue were the $687.0 million in advisory fees paid to
a relatively obscure financial firm in relation to the
acquisition.  The fees were approximately one-third of the $2.0
billion acquisition price, which is almost 30 times higher than
normal.

On Nov. 8, 2011, the Company admitted to an accounting cover-up,
stating that the advisory fees paid in connection with the Gyrus
deal and other acquisitions were used to hide steep investment
losses that began in approximately 1990.  Speaking at a press
conference, the Company's President, Shuichi Takayama, confessed
that "[w]e have conducted extremely improper accounting" and that
"[o]ur previous statements were in error."

The Company's admission, released just prior to the opening of
trading on the Tokyo Stock Exchange, where Olympus's common stock
is traded, sent shares spiraling downward by 29% over the prior
day's close to JPY734 (or $9.40).  The Company's American
Depository Receipts also plummeted on the news, losing 31%
compared to the prior day's close of $13.72.  Since mid-October
when Mr. Woodward's allegations first surfaced, the Company's
stock has lost approximately 70% of its market value.

Amidst the growing accounting scandal that could be one of the
largest in corporate history, the TSE has indicated that the
Company's shares could be de-listed.  In addition, the Japanese
Securities and Exchange Surveillance Commission is said to be
investigating along with the U.S. Federal Bureau of
Investigation, and the U.S. Securities and Exchange Commission.

                        About Olympus Corp.

Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products.  As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.


PACNET: Moody's Says B1 Ratings Unaffected by 3Q Performance
------------------------------------------------------------
Moody's Investors Services says that Pacnet's favorable
performance during the third quarter does not alleviate the
downward pressure on its B1 ratings.  The ratings outlook remain
negative.

"In Moody's opinion, the performance is positive, as earnings
showed a meaningful improvement over 2Q2011. But, uncertainty
remains regarding the sustainability of its operating performance
over the near-to-intermediate term," says Annalisa Di Chiara, a
Moody's Vice President and Senior Analyst.

"Pacnet's third-quarter results saw positive traction across
revenues and EBITDA, as wholesale voice and enterprise data
service revenues expanded, and cost of access returned to a more
'normalized' level," says Ms. Di Chiara.

"Still, with EBITDA of USD58MM at Sept 30, 2011, the company will
need to generate around USD22MM of EBITDA in the fourth quarter
to achieve Moody's minimum expectation of USD80MM for FYE2011",
says Di Chiara.

While EBITDA benefited from the absence of one-time-related items
in 3Q2011, the company's ability to grow revenues at a fast
enough pace to continue to offset the impact of price declines is
still uncertain.

Moody's believes that Pacnet will continue to face significant
competitive pressures and will be adversely impacted by a slowing
global economy. Furthermore, the ratings and outlook consider the
company's high leverage level -- as measured by Debt/EBITDA - in
the 4.2x range.

Moody's ongoing view of Pacnet's credit will continue to focus on
the sustainability of EBITDA generation, an assessment of its
competitive positioning, and any changes to its overall growth
strategy.

Pacnet, incorporated in Bermuda in 2006, wholly owns and operates
the EAC-C2C network, Asia's largest privately-owned submarine
cable infrastructure of 36,800km, as well as the EAC Pacific
network which spans 9,620km from Japan to the U.S.  The cables
land at 21 cable landing stations across Asia and the US.  Pacnet
provides data connectivity solutions to major telecommunications
carriers, large multinational enterprises and small- and medium-
sized enterprises in Asia Pacific with a need for multinational
IP-based solutions and connectivity.


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


HANA BANK: Fitch Affirms Rating on Hybrid Securities at 'BB+'
-------------------------------------------------------------
Fitch Ratings has affirmed Korea-based Hana Bank's hybrid
securities at 'BB+' and removed them from Rating Watch Negative
(RWN).  The agency has simultaneously affirmed Hana's Long-Term
Foreign Currency Issuer Default Rating (IDR) at 'A-' with Stable
Outlook and Support Rating Floor at 'A-'.

Hana's IDRs are driven by the bank's Support Rating Floor,
reflecting Fitch's continued belief of an extremely high
propensity to support the bank by the South Korean government
('A+'/Positive), if needed.  Fitch views that Hana is
systematically important as one of the major commercial banks in
South Korea, with a sizable franchise in the local banking
system, accounting for 8%, 9%, and 9% of the system's total
assets, loans, and deposits, respectively.  Unless Fitch
anticipates either less propensity or ability for the sovereign
to support the bank, no change in the support-driven IDR is
expected.

The removal of Hana's hybrid securities from RWN and affirmation
of its 'bbb' Viability Rating (VR) reflect Fitch's view that the
planned acquisition of Korea Exchange Bank ('A-'/Stable) by its
parent Hana Financial Group would have no material impact on
Hana's standalone credit profile, providing HFG does not rapidly
complete the acquisition of KEB, which Fitch expects to be the
case.  The potential impact from funding the acquisition has been
reduced as HFG has less need to issue additional debt, while
Hana's financial performance has also improved.  Hana's VR is
underpinned by its strong local franchise and adequate
capitalisation.  It also takes into account a below-average
funding/liquidity profile by international standards and weaker
profitability than its immediate peers.

The rating of Hana's hybrid securities (preferred shares)
reflects their going-concern loss absorption features.  The 'BB+'
rating is two notches below the bank's VR, in line with Fitch's
current criteria and notching practice for such performing
securities.  However, under proposed revisions of Fitch's
criteria, the rating of the hybrid securities and subordinated
bonds may be lowered.  For details, please refer to the exposure
draft of 'Rating Bank Regulatory Capital Securities' dated
July 28, 2011.

Hana's regulatory net interest margin was 2.0% in H111, which is
lower than the industry average of 2.4%.  The bank has been keen
on controlling costs to support its bottom line profitability
which was hit hard during the global credit crisis by elevated
credit costs.

Loan quality has improved significantly with a regulatory non-
performing loan ratio of 1.2% and a provision coverage ratio
(inclusive of loan loss reserves booked in retained earning) of
123% at end-Q311.  Its precautionary-and-below loans ratio (2.3%)
is well below the system's average (about 3.7%) and has improved
from a peak of 3.5% at end-Q109.

Fitch estimates Hana's loan-to-customer deposits ratio was rather
high at 137% in mid-2011 (average of commercial banks was about
126%), which compares with 129% at end-2007.  Unlike its
immediate peers, Hana's loans have increased faster than its
deposits.  Capitalisation is adequate with a Tier 1 ratio of 9.8%
at Q311 under Basel II F-IRB approach for credit risk.

With Hana's Long-Term Foreign Currency IDR being the same level
as Thailand's Long-Term Local Currency IDR, the National Long-
Term rating on its Thai baht senior unsecured debt is affirmed at
'AAA(tha)', which is the highest level on the Thai National
Rating scale.

A strengthened and more diversified foreign currency retail
deposit base and/or significantly greater capitalisation may lead
to positive rating action on Hana's VR.  Negative rating action
is most likely to stem from any unexpected material deterioration
in underlying performance or in the operating environment, or
stem from potential risk from outsized loan growth which could
also pressure its capitalisation.  Any further M&A by the parent
may also trigger a ratings review.

Hana is the sixth-largest bank in Korea with total assets of
KRW149.8trn at end-H111.  Hana is the flagship subsidiary of HFG
whose largest shareholder is Korea's National Pension Fund with
an 8.3% stake.

The ratings of Hana are detailed below:

International ratings:

  -- Long-Term Foreign Currency IDR affirmed at 'A-'; Stable
     Outlook
  -- Short-Term Foreign Currency IDR affirmed at 'F2'
  -- Viability Rating affirmed at 'bbb'
  -- Individual Rating affirmed at 'C'
  -- Support Rating affirmed at '1'
  -- Support Rating Floor affirmed at 'A-'
  -- Senior government-guaranteed debt affirmed at 'A+'
  -- Senior unsecured debt affirmed at 'A-'
  -- Subordinated debt affirmed at 'BBB+'
  -- Hybrid securities (preferred stock) affirmed at 'BB+';
     removed from Rating Watch Negative

National ratings:

  -- Senior unsecured debts affirmed at 'AAA(tha)'


KOREA EXCHANGE: Fitch Affirms Individual Rating at 'C'
------------------------------------------------------
Fitch Ratings has affirmed Korea-based Korea Exchange Bank's
Long-Term Foreign Currency Issuer Default Rating (IDR) at 'A-'
with Stable Outlook and Support Rating Floor at 'A-'.

The affirmation of KEB's IDRs reflects Fitch's continued belief
of an extremely high propensity for support from South Korean
government ('A+'/Positive), if needed.  Fitch views that KEB is
systematically important not only as one of the main commercial
banks in South Korea but also as a key player in trade finance
and foreign currency settlement.  KEB holds 6% of the system's
total assets and facilitates 30% of the nation's trade finance.

KEB's 'bbb+' Viability Rating is underpinned by its strong
capitalization and solid franchise, especially in providing trade
finance and foreign exchange services to importers, exporters,
and retail customers.  However, it also reflects concentration
risks in large corporate loans and the lack of a long-term
strategy due to litigation issues and the exit plan of its 51.02%
shareholder, Lone Star Fund, a US-based private equity fund, to
sell its stake to Hana Financial Group (HFG).  The rating has
been affirmed as Fitch would not expect the sale to HFG to lead
to any material weakening of its financial profile in the medium
term (such as from higher dividend payments).

KEB's loan quality was sound with a non-performing loan (NPL)
ratio of 1.3% and provision coverage ratio (inclusive of loan
loss reserves booked in retained earnings) of 137% at end-Q311.
Fitch also notes that its precautionary-and-below loans fell to
2.8% of total loans at end-Q311 from a peak of 3.3% at end-Q111.
However, KEB's concentration risk, driven by a sizable exposure
to large corporates including Hynix (37% of KEB's total loans
versus 26% for the system), is the primary risk.

KEB's profitability outperformed the system average due to
realized gains from the sale of equity securities, most of which
the bank acquired through debt-to-equity swaps during/after the
Asian crisis.  Once KEB has disposed of its equity securities in
Q112, KEB's profitability would become comparable with its peers.
KEB's regulatory net interest margin in H111 was 2.7% compared
with 2.4% for the industry average.

Like other Korean banks, KEB has negligible foreign currency
retail deposits although foreign currency deposits from
corporates is larger than its local peers.  The loan-to-customer
deposit ratio at end-H111 is estimated to be 118% and is not
likely to see significant improvement.  Capitalization is strong
with a Tier 1 ratio of 11.6% at end-Q311 under Basel II F-IRB
approach for credit risk.

Upside potential for KEB's IDRs is limited given its Support
Rating Floor already factors in strong propensity to support.
Unless Fitch anticipates either less propensity or ability for
the sovereign to support the bank, no change in the support-
driven IDR is expected.

A significant improvement in its loan concentration risk and a
strengthened and more diversified foreign currency retail deposit
base may put upward pressure on KEB's VR.  Downside risk for the
VR may arise from a significant increase in credit costs,
deterioration in profitability or weakening capitalisation.
Currently, Fitch views such a prospect as remote.

KEB is a commercial bank in Korea, accounting for 6% of the
system's total assets.

The ratings of KEB are detailed below:

  -- Long-term Foreign Currency IDR affirmed at 'A-'; Stable
     Outlook
  -- Short-term Foreign Currency IDR affirmed at 'F2'
  -- Viability Rating affirmed at 'bbb+'
  -- Individual Rating affirmed at 'C'
  -- Support Rating affirmed at '1'
  -- Support Rating Floor affirmed at 'A-'
  -- Senior unsecured debt affirmed at 'A-'


===============
M O N G O L I A
===============


* MONGOLIA: Fitch Affirms LT Issuer Default Ratings at 'B+'
-----------------------------------------------------------
Fitch Ratings has affirmed Mongolia's Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDRs) at 'B+' with Stable
Outlook.  The agency has also affirmed its Short-Term IDR at 'B'
and Country Ceiling at 'B+'.

"Mongolia's economy is set to expand rapidly as the mineral
sector develops, but a stronger policy framework is needed to
manage the boom," said Andrew Colquhoun, Head of Asia-Pacific
Sovereigns at Fitch.  "The economy currently risks overheating
amid rapid growth in bank lending and government spending."

Mongolia emerged from its International Monetary Fund programme
with a new fiscal policy framework including a Stabilisation Fund
(SF) for saving excess mineral-derived revenues starting 2011,
and a medium-term budget framework (MTBF) setting out a path for
the structural deficit (adjusted for commodities prices) to 2013.
But savings in the SF have been negligible (just MNT65.7 billion
by October 2011, 0.6% of 2011 GDP), while a revision to the 2011
budget essentially spent a revenue overshoot, against the spirit
of the MTBF.  Strong growth in entitlement spending in 2011 that
would be hard to unwind leaves the budget exposed to future
commodity-price volatility.  However, the moderate level of
government debt -- expected at just 25% of GDP by end-2011 --
supports the ratings.

Real GDP grew 20.8% in Q311 yoy, up from 17.3% in Q211. Fitch
projects a 17% growth for the year.  Foreign direct investment
(FDI), overwhelmingly into the mining sector, totalled USD2.7bn
or about 32% of GDP in just the first nine months of the year.
But the boom has other drivers beyond mining: government spending
was up 43% in October 2011 (year-to-date, yoy) while credit grew
79% in the year to October.  House prices rose a rapid 17% yoy in
September 2011. Bank supervision remains an area of concern, with
the IMF raising concerns over the practice of supervisory
forbearance and the robustness of supervision.  Inflation rose to
10% in September 2011, above the 12-month average of 9%.

The economy's external liquidity position has strengthened with
official reserves rising to USD2.6 billion by end-September, up
14.4% year-to-date.  The current account deficit is projected at
26% of GDP for 2011, but is funded by FDI inflows.  Following
repayment of a USD75 million bond in 2010, sovereign external
debt is entirely from multilateral and bilateral official
creditors.  The average interest rate on the external debt was
around 1% in 2010. The sovereign became a net external creditor
to the tune of around 4% of GDP in 2010, a position sustained in
2011.

Mongolia's core public institutions and quality of governance are
a relative strength in the 'B' range, although maintaining these
strengths once mineral revenues start flowing strongly will be
crucial.  Per capita income of USD3,100 in 2011 is near the 'B'
range median but below the 'BB' median of USD3,700.

Mongolia's longer-term prospects are bright, but managing the
resources-led boom will be challenging.  Building fiscal buffers
against commodity price volatility would be positive for the
ratings, although progress on this around elections for
parliament in 2012 and the presidency in 2013 will likely be
slow.  Completing banking sector reform and strengthening bank
supervision could reduce risks of further banking crises and
would support the ratings.


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


BRIDGECORP LTD: Staff Ordered to Lie to Investors, Witness Says
---------------------------------------------------------------
The New Zealand Herald reports that a group of Bridgecorp staff
refused to answer their phones when the finance company missed a
set of payments, and believed management was telling them to lie
to investors, a court has been told.

According to the report, Crown witness and former Bridgecorp
employee Delia Joan Snyman said she first became aware of the
missed payments in February.

The Herald relates that Ms. Synman said phone staff were
instructed to tell callers the payments were delayed by a
"computer glitch" or problems in the accounts department.

When Bridgecorp missed a large number of payments due at the end
of March, she said her entire team refused to take calls and took
their phones off the hook, the report relays.

The Herald relates that Ms. Synman said she heard a colleague
tell a manager: "I'm not going to answer any more phone calls. We
keep on lying to investors and it's not right."

Staff from other parts of the office then came in to take
investors' calls, Ms. Snyman, as cited by the Herald, said.

Despite the missed payments, she said Bridgecorp continued to
take new investments until June 29, 2007, the Herald adds.

The Herald notes that Bridgecorp directors Rod Petricevic, Rob
Roest and Peter Steigrad have each denied 10 Securities Act
charges of making untrue statements in the offer documents of
Bridgecorp and Bridgecorp Investments.

Messrs. Petricevic and Roest also face eight charges under the
Crimes Act and Companies Act of knowingly making false statements
in offer documents that Bridgecorp had never missed interest
payments or repayments of principal to investors.

They are standing trial in the High Court at Auckland in a
hearing expected to last until March, the Herald discloses.

                      About Bridgecorp Ltd

Based in New Zealand, Bridgecorp Ltd. is a property development
and finance company.

Bridgecorp was placed in receivership on July 2, 2007, after
failing to pay principal due to debenture holders.  John Waller
and Colin McCloy, partners at PricewaterhouseCoopers, were
appointed as receivers.  Bridgecorp owes around 14,500 investors,
which liquidators estimate to approximate NZ$500 million.

Bridgecorp's nine Australian companies were also placed into
voluntary administration, owing about 100 investors about
AUD24 million (NZ$27 million).


BROADLANDS FINANCE: S&P Cuts Counterparty Credit Rating to 'CCC'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its counterparty
credit ratings on New Zealand finance company Broadlands Finance
Ltd. to 'CCC/C' from 'B/B'. "We also placed the ratings on
CreditWatch with negative implications," S&P said.

BFL has announced its withdrawal from the debenture investor
market, management changes, and that it is reconsidering its
business strategy. The company has ceased to issue debentures in
New Zealand since Oct. 19, 2011, due to a decline in appetite
from investors. BFL's funding challenges have caused the company
to reconsider its business position and strategy. BFL has decided
to curtail lending activities and downsize business operations
while considering new funding and business strategies. Downsizing
initiatives include retrenchment of staff, including the
company's recently appointed CEO, and general manager funding.

"In our view, BFL's decision to cease issuing debentures brings
into question BFL's ability to meet its creditor obligations
beyond 12 months -- a level of confidence required to support a
'B/B' rating," said Standard & Poor's credit analyst Gavin
Gunning. "We note, however, that BFL's key shareholder, Mr.
Anthony Radisich, continues to strongly support the company,
including through his investment in debentures and extension of
credit. Company and shareholder measures are being progressed to
assist the prospects of debenture holders and creditors being
repaid in full and on time. But our ratings have not factored
in any potential shareholder support or new company initiatives.
Further clarity on these aspects could affect our ratings."

Standard & Poor's expects to resolve the CreditWatch after a
fuller assessment of BFL's liquidity position and future business
strategy. "We could lower the rating to 'CC/C' should BFL's
ability to meet its liquidity needs beyond six months become
uncertain," said Mr. Gunning. "We could lower the ratings to 'D'
(default) if any creditor is not paid in full and on time or the
company is put into receivership. The rating could be lowered to
'SD' (selective default) should BFL's key shareholder suffer any
principal write-down or economic loss via a restructuring on
liabilities that the company owes." Complete ratings information
is available to subscribers of RatingsDirect on the Global Credit
Portal at www.globalcreditportal.com. All ratings affected
by this rating action can be found on Standard & Poor's public
Web site at www.standardandpoors.com. Use the Ratings search box
located in the left column.


FELTEX CARPETS: Class Action Hopes to Access Court Docs
-------------------------------------------------------
BusinessDay.co.nz reports that proponents of the more than
NZ$100 million shareholder class action against the former
directors of Feltex Carpet Ltd are hoping the High Court will
issue orders for the discovery of documents before the end of the
year.

BusinessDay.co.nz relates that it will be a milestone for the
1,800 shareholders taking action against the former directors of
the company and the sellers and promoters of the Feltex public
offering of shares which raised just over NZ$250 million in
June 2004.

According to the report, the plaintiff, Eric Houghton,
representing 1,800 shareholders, alleges the Feltex prospectus
was misleading and breached the Fair Trading Act and Securities
Act.

The report says the first defendants are the seven former
directors of the company at the time of the public offer of
shares in May-June 2004. They were Tim Saunders, Sam Magill, John
Feeney, Craig Horrocks, Peter Hunter, Peter Thomas and Joan
Withers.

The other defendants include the sellers of the shares, Credit
Suisse First Boston Asian Merchant Partners, said to have made a
profit of $182 million on the shares, the High Court has been
told. Several thousand investors bought Feltex shares at NZ$1.70
each, BusinessDay.co.nz discloses.

The plaintiff, according to the report, is seeking that each
shareholder be refunded the purchase price of the shares,
interest and costs.

BusinessDay.co.nz notes that the driving force is Auckland
merchant banker Tony Gavigan who set up Joint Action Funding
Limited to lead and source funding for the case.

It has secured funding from Harbour Litigation Funding, a London
company, and insurance against loss of the case, required by the
Court of Appeal.

The report relates that Mr. Gavigan said if the orders were
issued by the court it would be the first time the plaintiffs had
access to documents.

"We are hoping to have orders for discovery by the end of this
year," the report quotes Mr. Gavigan as saying.

The plaintiff had to provide his documents but there was little
besides Mr. Houghton's documents related to his investment in
Feltex, the report relays.

"We will be seeking discovery of every piece of information
because we are not sure what is still in the hands of the
company," Mr. Gavigan, as cited by BusinessDay.co.nz, said.

BusinessDay.co.nz relates the Securities Commission would have
records from its investigation into the prospectus and
Mr. Gavigan said he hoped the Financial Markets Authority, the
successor to the commission, would help them.  The Securities
Commission found the prospectus was not misleading.

"We will have to spend a year getting every piece of paper out
there that will prove the case," BusinessDay.co.nz quotes
Mr. Gavigan as saying.

                       About Feltex Carpets

Headquartered in Auckland, New Zealand, and established more than
50 years ago, Feltex Carpets Limited -- http://www.feltex.com/--
has built a reputation for being one of the world's leading
manufacturers of superior-quality carpet.  The Feltex operation
included a wool scouring plant, six spinning mills, three tufted
carpet mills, a woven carpet mill and offices in New Zealand,
Australia and the United States.

ANZ Bank placed the company in receivership on Sept. 22, 2006,
and named Colin Nicol, Peter Anderson and Kerryn Downey, of
McGrathNicol+Partners, as receivers and managers.

The TCR-AP reported on Oct. 4, 2006, that Godfrey Hirst acquired
Feltex as a going concern, including its assets and undertakings
in New Zealand, Australia, and the United States.  Proceeds of
the sale will be used to ease the company's NZ$128-million debt
to ANZ Bank.

On Dec. 13, 2006, the High Court in Auckland ruled in favor of an
application by the Shareholders Association against Feltex
Carpets putting the carpet maker into liquidation.  John Vague
was appointed as liquidator.


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


MANILA CAVITE: Moody's Lowers Sr. Secured Bond Rating to 'Caa1'
---------------------------------------------------------------
Moody's Investors Service has downgraded to Caa1 from B2 the
senior secured bond rating of the Manila-Cavite Toll Road Finance
Company.  The rating outlook is negative.

Ratings Rationale

"The ratings downgrade reflects Moody's concern that a
substantial increase in traffic volume over the next six to
twelve months is unlikely, and this will materially impact MCTR's
cash flow generation and liquidity," says Annalisa DiChiara, a
Moody's Vice President.

"This means it is highly likely that the company will rely
instead on its Debt Service Reserve Account to cover cash
shortfalls, and which could potentially be depleted within 12
months," Ms. DiChiara adds.

The daily traffic volume for the R-1 Extension of the Manila-
Cavite Toll Expressway (R-1 Extension) has averaged around
10,000-11,000 vehicles/day since its opening in May 2011. This is
materially below the expected Annual Average Daily Traffic (AADT)
of 47,000.

Additionally, the traffic volume of the R-1 Expressway was 4% to
5% lower than the same 6 month period last year and remains in
the 75,000 vehicles/day range. This is also materially below the
expected lock-step increase in AADT to 94,000 in FYE 2011.

Because traffic volumes and growth rates are the most critical
variables for MCTR's financial profile, Moody's analysis and the
Caa1 rating considers greater volatility for the rate of traffic
growth which is materially below that forecasted by Halcrow and
the company. The company believes it will be able to achieve AADT
of around 45,000 by June 2012.

However, Moody's expects that it will still take some time for
traffic volumes to increase materially, despite the completion of
construction projects around the R-1 Extension in October 2011 --
the Zapote interchange, and the pipe laying project by a local
water utility company.

As such, Moody's estimates AADT will stay in 10,000-15,000 range
throughout FY2012.

Moreover, while the R-1 Extension is still the most time
efficient portal for commuters heading to eastern and southern
areas of Cavite, the higher rate per km seems to be a challenging
value proposition, as evidenced in the stable AADT levels.

Currently, the rate per km on the R-1 Extension is approximately
2.5x higher than the R-1 Expressway.

Furthermore, toll rates have increased a further 12%, with the
introduction of VAT in October.

"The prospects for increased traffic flow on the R-1 Extension
remain challenging with higher gas prices and high toll rates
likely to temper usage. Assuming around 76,000 AADT on the R-1
Expressway, Moody's believes a minimum AADT of around 22,000
vehicles/day on the R-1 Extension will be required to avoid
depletion of the Debt Service Reserve Account over the next 12
months," says Ms. DiChiara.

"And this will need to increase to around 45,000 for FY2013,"
she adds.

Given the year-to-date performance, Moody's believes it will be
challenging for the company to achieve these targets.

The negative outlook reflects the expected weak operating
performance over the next few quarters, as well as the heightened
risk of non-compliance with its financial covenants, which would
cause an early amortization event and pressure cash flows
further.

Upward rating pressure is limited given the negative outlook. The
outlook could be stabilized if AADT trends toward 35,000
vehicles/day and sustains at this level.

The rating would be downgraded if the AADT fails to trend towards
22,000 vehicles/day in the next 2-3 months or the company
breaches the financial covenants such that it triggers an
acceleration of the bond repayment.

MCTR's ratings were assigned by evaluating factors that Moody's
considers relevant to the credit profile of the issuer, such as
the company's (i) business risk and competitive position compared
with others within the industry; (ii) capital structure and
financial risk; (iii) projected performance over the near to
intermediate term; and (iv) management's track record and
tolerance for risk. Moody's compared these attributes against
other issuers both within and outside MCTR's core industry and
believes MCTR's ratings are comparable to those of other issuers
with similar credit risk.

Other methodology used in this rating was Operational Toll Roads
published in December 2006.

MCTR is a single-purpose company incorporated in the Cayman
Islands, with limited liability. MCTR is the financing vehicle
for UEM - MARA Philippines Corporation ("UMPC"), which is wholly
owned by Coastal Road Corporation, both incorporated in the
Philippines. UMPC has rights under a toll road concession to
design, finance, construct, and operate the Manila Cavite Toll
Expressway, including the existing R1-Expressway, and a soon-to-
be completed R1-Extension. The concession runs for a term of 35
years to October 2033. The toll road concession arrangements are
in place with the Philippines Reclamation Authority, a
corporation that is owned and controlled by the Government of the
Republic of the Philippines (Ba2, stable outlook) and the
Philippines Government via the Toll Regulatory Board. UMPC has
assigned its toll road collection rights to MCTR to support the
Notes.


QUEZON POWER: S&P Withdraws 'B+' Rating on $215-Mil. 8.86% Bonds
----------------------------------------------------------------
Standard & Poor's Ratings Services withdrew the 'B+' issue rating
on the $215 million 8.86% bonds due 2017 issued by Quezon Power
(Philippines) Ltd. Co.  "We withdrew the rating after the company
redeemed all outstanding bonds on Nov. 3, 2011. The redemption of
the bonds is equal to 100% of the aggregate principal amount,
plus accrued and unpaid interest," S&P said.


                             *********

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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