---

        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, July 9, 2012, Vol. 15, No. 135

                            Headlines


A U S T R A L I A

ABC LEARNING: Prosecutors Drop Charges Against Founder
AUSTRALIAN KITCHEN: Goes Into Voluntary Administration
FAIRFAX MEDIA: S&P Affirms 'BB+' Longterm Corporate Credit Rating
KOTKU BREAD: BRI Ferrier Appointed as Administrators
* AUSTRALIA: Corporate Collapses Rises by 1.7% in May


H O N G  K O N G

ADVANCE NEW: Creditors' Proofs of Debt Due July 29
APEX WINNING: Placed Under Voluntary Wind-Up Proceedings
ASIA TRADING: Members' Final Meeting Set for July 31
ASIA WIN: Commences Wind-Up Proceedings
BEST CHOICE: Commences Wind-Up Proceedings

BESTVIEW INTERNATIONAL: Creditors' Proofs of Debt Due Aug. 3
CINDA INTERNATIONAL: Arab and Wong Step Down as Liquidators
EAS INTERNATIONAL: Members' Final Meeting Set for July 31
FAMOUS GLOBE: Creditors' Proofs of Debt Due July 21
GAIN FIRST: Commences Wind-Up Proceedings

GLOBAL STAR: Members' Final Meeting Set for July 30
GREAT EAGLE: First Meetings Slated for Aug. 1
HEROMATE INDUSTRIAL: Members' Final Meeting Set for Aug. 3
ILLYCAFFE ASIA: Members' Final Meeting Set for July 30
OVERSEAS CHINESE: Members' Final Meeting Set for July 30

PENSON FINANCIAL: Creditors' Proofs of Debt Due Aug. 3
RAPID GROW: Members' Final General Meeting Set for July 30
RICHFORD LIMITED: Watt Hung Chow Steps Down as Liquidator
SILVER PEBBLE: Members' Final Meeting Set for July 30
SPRING VICTORY: Members' Final General Meeting Set for Aug. 8

VITREA COMPANY: Annual Meetings Set for June 29
YUEFORD LIMITED: Watt Hung Chow Steps Down as Liquidator
YUHAN LIMITED: Members' Final Meeting Set for July 20
YAU SHING: Annual Meetings Set for June 29


I N D I A

BAIJNATH MELARAM: ICRA Rates INR20cr Loan '[ICRA]BB'
BHADORA INDUSTRIES: ICRA Rates INR2.7cr Loan at '[ICRA]B'
GUJARAT SPICES: ICRA Reaffirms 'BB+' Rating on INR34.92cr Loans
MATERIAL MOVELL: ICRA Assigns 'BB-' Rating to INR5.5cr Loans
MBH POWER: ICRA Assigns 'BB' Rating to INR7.75cr Term Loan

PAULSON HOTEL: ICRA Rates INR20cr Term Loan at '[ICRA]B+'
SAMRUDDHA RESOURCES: ICRA Rates INR30cr LT Loan at '[ICRA]B+'
SAVFAB BUILDTECH: ICRA Rates INR28cr Loan at '[ICRA]B+'
SIGNATURE CERAMIC: ICRA Assigns 'B+' Rating to INR6.4cr Loans
SUNCITY PROJECTS: ICRA Reaffirms 'BB' Rating on INR344.61cr Loan

VAIGHAI AGRO: ICRA Reaffirms 'BB+' Rating on INR29.69cr Loans
VIHANG HOSPITALITY: ICRA Rates INR6.6cr LT Loan at '[ICRA]B'
VIMAL DAIRY: ICRA Reaffirms 'BB-' Rating on INR22cr Term Loans
VIMAL MICRONS: ICRA Reaffirms 'B+' Rating on INR19.75cr Loan


J A P A N

L-JAC 7 TRUST: Moody's Reviews 'Caa3' Ratings for Downgrade
SHINSEI TB: Fitch Affirms Rating on JPY2-Bil. Loan at 'BBsf'
* JAPAN: Moody's Changes Outlook for P&C Insurance Industry
* JAPAN: Moody's Changes Outlook for Life Insurance Industry


N E W  Z E A L A N D

ALLIED CAPITAL: Speirs Seeks to Liquidate Alloway-Linked Firm
BROADLANDS FINANCE: S&P Raises Issuer Credit Ratings to 'CCC/C'
INVESTMENT SOLUTION: Sole Director to Enter Pleas This Week


P H I L I P P I N E S

NAPOCOR: S&P Raises Senior Unsecured Rating to 'BB+' From 'BB'
PLDT: S&P Raises Senior Unsecured Rating to 'BBB-' From 'BB+'
PSALM: S&P Raises Senior Unsecured Rating to 'BB+' From 'BB'


S R I  L A N K A

PEOPLE'S BANK: Fitch Affirms 'BB' National Long Term Ratings


                            - - - - -


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


ABC LEARNING: Prosecutors Drop Charges Against Founder
------------------------------------------------------
Natasha Bita at The Australian reports that prosecutors have
dropped criminal charges against Eddy Groves, the founder of
Australia's largest childcare chain, ABC Learning Centres.

The Australian relates that Mr. Groves said Friday he had been
notified "a couple of days ago" that his 18-month-long
prosecution was over.

According to the report, the Commonwealth Director of Public
Prosecutions on Friday revealed it had "discontinued" the charge
against Mr. Groves of "aiding an alleged dishonest use of
position by fellow ABC Learning director Martin Kemp."

The Australian recalls that both men were charged in January last
year in relation to the AUD3 million sale of three childcare
centres owned by Mr. Kemp, to ABC Learning in the months before
its collapse.  But Mr. Kemp was found not guilty in the Brisbane
District Court last month of the criminal charges of breaching
his director's duties.

"In light of Mr. Kemp's recent acquittal, the CDPP reviewed the
charge against Mr. Groves and discontinued it," The Australian
quotes a CDPP spokeswoman as saying.

The Australian notes that Mr. Groves has been tangled in a web of
litigation since ABC Learning went into receivership in 2008,
owing creditors AUD1.6 billion and forcing a sale of 1,200
childcare centres caring for 120,000 kids.  Mr. Groves had been
on bail since February last year, when he pleaded not guilty to
breaching duties as a company director -- a charge that carries a
five-year jail term.

                        About ABC Learning

Based in Australia, ABC Learning Centres Limited provided
childcare services and education in more than 1,200 centers in
Australia, New Zealand, the United States and the United Kingdom.

In November 2008, ABC Learning Centres Limited appointed
Peter Walker and Greg Moloney of Ferrier Hodgson as voluntary
administrators of the company and a number of its subsidiaries.
Subsequent to the appointment of administrators, the company's
banking syndicate appointed Chris Honey, Murray Smith and John
Cronin of McGrathNicol as receivers.

The Administrators filed a Chapter 15 petition for the Company
(Bankr. D. Del. Case No. 10-11711) on May 26, 2010.  Joel A.
Waite, Esq., at Young, Conaway, Stargatt & Taylor, represents the
Petitioners in the Chapter 15 case.  ABC's debts and assets were
estimated to be between US$100 million and US$500 million.

A separate Chapter 15 petition was filed for affiliate A.B.C.
USA Holdings Pty Ltd., listing assets and debts of at least
US$100 million.

In June 2010, ABC Learning creditors in Australia voted to wind
up the failed childcare provider.


AUSTRALIAN KITCHEN: Goes Into Voluntary Administration
------------------------------------------------------
SmartCompany reports that Australian Kitchen Industries has gone
into voluntary administration, a victim of tough economic
conditions for manufacturers and last year's floods in
Queensland.

Todd Gammel -- todd.gammel@hlbnsw.com.au-- director in the
business recovery division at HLB Mann Judd, told SmartCompany
there were a "number of factors at play" leading to the collapse
of the company.

"There was a downturn in trade from the general economic
conditions, warehouses were massively affected by the floods
particularly in Queensland and it needs a restructure,"
SmartCompany quotes Mr. Gammel as saying.  "In this scenario,
there are obviously some people who are put out and we are trying
as best as we can to resolve things, but we have the voluntary
administration process which makes things more difficult."

According to the report, Mr. Gammel said HLB Mann Judd is
continuing to trade AKI with a view to selling and has placed an
advertisement in the newspaper.

Mr. Gammel said HLB Mann Judd was holding discussions with "a
number of interested parties," SmartCompany relates.

SmartCompany says AKI is manufacturing and delivering kitchens to
customers on a daily basis and, as part of the administration
process, all new customer deposits are held in an account under
the control of the administrator and are applied to the
customer's kitchen order, which will be manufactured and
installed as per the contract.

Barry Taylor -- todd.gammel@hlbnsw.com.au -- head of the business
recovery and insolvency team at HLB Mann Judd, said the
administrator is currently negotiating with key suppliers to
ensure that supply will continue as usual and kitchens can be
completed, according to SmartCompany.

"The business is committed to meeting its responsibilities to
customers and is operating as normal, with all staff having been
reimbursed as usual," Mr. Taylor told SmartCompany.

Australian Kitchen Industries is a kitchen designer and
manufacturer.  The company has 20 stores across Australia, which
operate under the brands Kitchen Connection, Wallspan Kitchen
Connections and Impala Kitchen Connection, and it employs around
200 staff.

There are stores in Melbourne, Sydney, Adelaide and Brisbane,
although Impala Kitchens in states other than Victoria is not
part of the AKI group and is not affected by the administration,
SmartCompany notes.


FAIRFAX MEDIA: S&P Affirms 'BB+' Longterm Corporate Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services had affirmed its 'BB+' long-
term corporate credit and related debt ratings on Australia-based
media company Fairfax Media Ltd. and its subsidiaries.

"At the same time, we revised the outlook on the long-term rating
to negative from stable," S&P said.

"The negative outlook reflects the significant execution
challenges facing the group as it restructures the cost base of
its metropolitan newspaper business in the face of accelerating
structural revenue declines," Standard & Poor's credit analyst
Adrian Chow said.

"Although we consider the company's cost reduction initiatives to
be supportive of longer term credit, it is uncertain if these
initiatives will offset the rate of structural deterioration in
the metropolitan print businesses."

Execution risks include the uncertainty as to whether costs can
be reduced fast enough to offset revenue declines, the cultural
change required within the business to effectively reposition the
cost base, and the impacts of the process on the group's brand
reputation and products.

"In addition, we are cognizant that the rate of structural
decline may accelerate as the weak operating environment persists
in the short term," S&P said.

"Notwithstanding the challenges facing the group's metropolitan
newspaper business, we consider the group's remaining businesses
to be supportive of the group's "fair" business risk profile. In
our view, the regional newspaper business faces some of the
structural challenges evident in the metropolitan business;
however, we consider the regional business to be significantly
better positioned to withstand these structural pressures given a
more compelling offer for advertisers and lower competitive
pressures," S&P said.

Furthermore, the group's digital businesses, particularly its
51%-owned Trade Me and Australian real estate classified
business, retain a strong growth outlook.

Fairfax anticipates that group EBITDA for fiscal 2012 will be
about A$500 million (before significant items and intangible
impairments).

"Although this result is slightly below our expectations, the
company continues to make meaningful progress in reducing debt
leverage. For fiscal 2012, we estimate fully adjusted debt-to-
EBITDA to be about 2.6x, which is in line with our expectations
for a "significant" financial risk profile," S&P said.

"There is a one-in-three chance that we may lower the ratings on
Fairfax within the next 12 months. A downgrade may occur if: The
profitability of the metro media business significantly
deteriorates as a result of further structural revenue declines
and ineffective cost reduction strategies, or The structural
erosion of the group's wider print-based revenue materially
accelerates and is not offset by new and defensible revenue
streams. We consider the possibility of a downgrade linked to a
weakening in financial metrics to be less likely. However, it
could result if fully adjusted debt-to-EBITDA is sustained at
about 3x or more due to a persistently weak operating
performance, debt-funded acquisitions, or a more shareholder-
friendly approach to capital management," S&P said.

Mr. Chow added: "An outlook revision back to stable will require
the stabilization of profitability in the metropolitan media
business through a successful repositioning of Fairfax's cost
structure for longer term sustainability. Rating stability would
also require fully adjusted debt-to-EBITDA being maintained at
around 2.5x or below."


KOTKU BREAD: BRI Ferrier Appointed as Administrators
----------------------------------------------------
Ian Currie -- ian.currie@briferriersq.com.au -- and Daniel Moore
-- daniel.moore@briferriersq.com.au -- of BRI Ferrier were
appointed administrators of Kotku Bread Pty Ltd on July 4, 2012.

A first meeting of the creditors of the Company will be held on
July 13, 2012, at 10:30 a.m. at Level 23, 300 Queen Street, in
Brisbane, Queensland.

Kotku Bread Pty Ltd owned and operated a bakery business.


* AUSTRALIA: Corporate Collapses Rises by 1.7% in May
-----------------------------------------------------
SmartCompany reports that company collapses increased by 1.7% in
May, with businesses in South Australia, Victoria and the ACT
hardest hit by Australia's uneven economy.

The insolvency figures, collated by Australia Securities and
Investment Commission, recorded the second highest number of
insolvencies on record for May, SmartCompany notes.

According to SmartCompany, Victorian collapses were up 27.2% on
last month, with figures more than doubling in South Australia
and the ACT, up 122.2% and 160% respectively.

SmartCompany relates that in a recent report, accountancy firm
Taylor Woodings noted the trend was due to "pressure as a result
of a multispeed economy and low consumer confidence".

For the financial year to May, total corporate collapses were up
13.1% on the previous financial year, 8.3% higher than the
financial year at the height of the Global Financial Crisis,
SmartCompany discloses.



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


ADVANCE NEW: Creditors' Proofs of Debt Due July 29
--------------------------------------------------
Creditors of Advance New Technology Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by July 29, 2012, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on June 25, 2012.

The company's liquidator is:

         Heung Sai Kit
         11th Floor, Li Ka Shing Tower
         The Hong Kong Polytechnic University
         Hung Hom, Kowloon
         Hong Kong


APEX WINNING: Placed Under Voluntary Wind-Up Proceedings
--------------------------------------------------------
At an extraordinary general meeting held on June 20, 2012,
creditors of Apex Winning Limited resolved to voluntarily wind up
the company's operations.

The company's liquidator is Chim Fun Lung.


ASIA TRADING: Members' Final Meeting Set for July 31
----------------------------------------------------
Member of Asia Trading Limited will hold their final meeting on
July 31, 2012, at 11:00 a.m., at 26th Floor, Citicorp Centre, 18
Whitfield Road, Causeway Bay, in Hong Kong.

At the meeting, Leong Ting Kwok David, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


ASIA WIN: Commences Wind-Up Proceedings
---------------------------------------
Members of Asia Win Consultants Limited, on June 27, 2012, passed
a resolution to voluntarily wind up the company's operations.

The company's liquidators are:

         Lee King Yue
         72-76/F, Two International Finance Centre
         8 Finance Street
         Central, Hong Kong


BEST CHOICE: Commences Wind-Up Proceedings
------------------------------------------
Members of Best Choice Investment Limited, on June 29, 2012,
passed a resolution to voluntarily wind up the company's
operations.

The company's liquidators are:

         Lai Wing Kin
         72-76/F, Two International Finance Centre
         8 Finance Street
         Central, Hong Kong


BESTVIEW INTERNATIONAL: Creditors' Proofs of Debt Due Aug. 3
------------------------------------------------------------
Creditors of Bestview International Capital Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Aug. 3, 2012, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on June 22, 2012.

The company's liquidator is:

         Mak Kay Lung Dantes
         Rooms 2101-3 China Insurance Group Building
         141 Des Voeux Road
         Central, Hong Kong


CINDA INTERNATIONAL: Arab and Wong Step Down as Liquidators
-----------------------------------------------------------
Osman Mohammed Arab and Wong Tak Man Stephen stepped down as
liquidators of Cinda International Investment Consultant Limited
on June 19, 2012.


EAS INTERNATIONAL: Members' Final Meeting Set for July 31
---------------------------------------------------------
Members of EAS International Aircargo Co. Limited will hold their
final meeting on July 31, 2012, at 3:00 p.m., at Suite No. A 11th
Floor, Ritz Plaza, 122 Austin Road, Tsimshatsui, Kowloon, in Hong
Kong.

At the meeting, Sung Mi Yin Mella, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.


FAMOUS GLOBE: Creditors' Proofs of Debt Due July 21
---------------------------------------------------
Creditors of Famous Globe Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by July
21, 2012, to be included in the company's dividend distribution.

The company commenced wind-up proceedings on June 11, 2012.

The company's liquidator is:

         Chung Kit Ling Elaine
         1103-5 Allied Kajima Building
         138 Gloucester Road
         Wanchai, Hong Kong


GAIN FIRST: Commences Wind-Up Proceedings
-----------------------------------------
Members of Gain First Enterprises Limited, on June 29, 2012,
passed a resolution to voluntarily wind up the company's
operations.

The company's liquidators are:

         Lee King Yue
         72-76/F, Two International Finance Centre
         8 Finance Street
         Central, Hong Kong


GLOBAL STAR: Members' Final Meeting Set for July 30
---------------------------------------------------
Members of Global Star Industrial Investment Consultants Limited
will hold their final meeting on July 30, 2012, at Room 216, No.
2 Xiangxye II Road, Kaichuang Ave. N., Science City, Guangzhou
Development District, Guangzhou, Guangdong Province, in P.R.
China.

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


GREAT EAGLE: First Meetings Slated for Aug. 1
---------------------------------------------
Contributories and creditors of Great Eagle Shipping Lines
Limited will hold their first meetings on Aug. 1, 2012, at 10:30
a.m., and 11:00 a.m., respectively at 602 The Chinese Bank
Building, at 61-65 Des Voeux Road, Central, in Hong Kong.

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


HEROMATE INDUSTRIAL: Members' Final Meeting Set for Aug. 3
----------------------------------------------------------
Members of Heromate Industrial Limited will hold their final
meeting on Aug. 3, 2012, at 10:00 a.m., at 9th Floor, Chiyu Bank
Building, at 78 Des Voeux Road Central, Central, in Hong Kong.

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


ILLYCAFFE ASIA: Members' Final Meeting Set for July 30
------------------------------------------------------
Members of Illycaffe Asia Pacific Limited will hold their final
meeting on July 30, 2012, at 11:00 a.m., at 19A Entertainment
Building, 30 Queen's Road Central, in Hong Kong.

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


OVERSEAS CHINESE: Members' Final Meeting Set for July 30
--------------------------------------------------------
Members of The Overseas Chinese Institute of Certified Public
Accountants Members Association Limited will hold their final
general meeting on July 30, 2012, at 5:00 p.m., at Unit 2204,
22/F, Lippo Centre, Tower 2, 89 Queensway, in Hong Kong.

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


PENSON FINANCIAL: Creditors' Proofs of Debt Due Aug. 3
------------------------------------------------------
Creditors of Penson Financial Services Asia Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by July 30, 2012, to be included in the company's
dividend distribution.

The company's liquidator is:

         Philip Brendan Gilligan
         7th Floor, Alexandra House
         18 Chater Road
         Central, Hong Kong


RAPID GROW: Members' Final General Meeting Set for July 30
----------------------------------------------------------
Members of Rapid Grow Limited will hold their final general
meeting on July 30, 2012, at 10:00 a.m., at 62/F, One Island
East, 18 Westlands Road, Island East, in Hong Kong.

At the meeting, Stephen Liu Yiu Keung and David Yen Ching Wai,
the company's liquidators, will give a report on the company's
wind-up proceedings and property disposal.


RICHFORD LIMITED: Watt Hung Chow Steps Down as Liquidator
---------------------------------------------------------
Watt Hung Chow stepped down as liquidator of Richford Limited on
June 27, 2012.


SILVER PEBBLE: Members' Final Meeting Set for July 30
-----------------------------------------------------
Members of Silver Pebble Holdings Limited will hold their final
meeting on July 30, 2012, at 3:00 p.m., at Suite No. A, 11th
Floor, Ritz Plaza, 122 Austin Road, Tsimshatsui, Kowloon, in Hong
Kong.

At the meeting, Sung Mi Yin Mella, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.


SPRING VICTORY: Members' Final General Meeting Set for Aug. 8
-------------------------------------------------------------
Members of Spring Victory Limited will hold their final general
meeting on Aug. 8, 2012, at 3:00 p.m., at Room 1601, Wing On
Centre, at 111 Connaught Road Central, in Hong Kong.

At the meeting, Lui Man Hang and Lui Man Yuen Spenser, the
company's liquidators, will give a report on the company's wind-
up proceedings and property disposal.


VITREA COMPANY: Annual Meetings Set for June 29
-----------------------------------------------
Members and creditors of Vitrea Company Limited (Trading as Tat
Shing Hong, Century AV Centre) will hold their annual meetings on
June 29, 2012, at 4:00 p.m., and 4:15 p.m., respectively at Room
08, 5/F, Chinachem Golden Plaza, 77 Mody Road Tsimshatsui East,
Kowloon, in Hong Kong.

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


YUEFORD LIMITED: Watt Hung Chow Steps Down as Liquidator
--------------------------------------------------------
Watt Hung Chow stepped down as liquidator of Yueford Limited on
June 27, 2012.


YUHAN LIMITED: Members' Final Meeting Set for July 20
-----------------------------------------------------
Members of Yuhan Limited will hold their final general meeting on
July 20, 2012, at 3:00 p.m., at 13/F, Amber Commercial Building,
70 Morrison Hill Road, Wanchai, in Hong Kong.

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


YAU SHING: Annual Meetings Set for June 29
------------------------------------------
Members and creditors of Yau Shing AV Centre Limited will hold
their annual meetings on June 29, 2012, at 3:00 p.m., and 3:15
p.m., respectively at Room 08, 5/F, Chinachem Golden Plaza, 77
Mody Road Tsimshatsui East, Kowloon, in Hong Kong.

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



=========
I N D I A
=========


BAIJNATH MELARAM: ICRA Rates INR20cr Loan '[ICRA]BB'
----------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]BB' to the
INR20.00 crore Fund based (Cash Credit) bank facility of Baijnath
Melaram. ICRA has also assigned a short term rating of '[ICRA]A4'
to the INR85.00 crore Non Fund based (Letter of Credit) bank
facility of Baijnath Melaram.  The INR20.00 crore Fund based
facility is a sub-limit of the INR85.00 crore Non Fund based
facility.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Fund based limits      (20.00)     [ICRA]BB assigned
   (Cash Credit)

   Non Fund based limits   85.00      [ICRA]A4 assigned
   (Letter of Credit)

The rating factors in the long experience of the promoters of
over three decades in the ship breaking business, the consistent
growth in the operating income (compounded annual growth rate of
25.63% during FY07-12) reported by the firm in the recent past
and its broad and diversified clientele with top ten clients
attributing to 26% of its turnover in FY2012. The rating further
draws comfort from the favorable outlook of the ship breaking
business in the near term in terms of vessel availability. The
rating, however, is constrained by the modest level of
profitability of the firm (operating margin 2.22% in FY2012);
vulnerability of profitability to exchange rate fluctuations,
steel price fluctuations and environmental regulatory norms and
the inherent cyclicality in the ship breaking business with the
prospects being linked to international shipping business
fundamentals. The rating is further constrained by the risks
associated with the partnership nature of concern as well as the
significant financial support being provided by the company to
its promoters group and relatives (loans and advances of
INR11.81 crore as on March 2012) that may constrain the financial
flexibility of the firm.

Incorporated in 1958, Baijnath Melaram is a partnership concern
promoted by the Agarwal family. The firm is actively engaged in
ship breaking activity and trading of steel products. The ship
breaking operations of the firm are based out of Bhavnagar,
Gujarat while the trading of steel products is carried out from
Mumbai. The promoters of the firm also run B Melaram & Sons,
associate firm of Baijnath Melaram which is also engaged in
trading and ship breaking business.

Recent Results

For the financial year ending March 2012, as per the provisional
data, BM reported an operating income of INR168.48 crore and a
net profit of INR2.53 crore.


BHADORA INDUSTRIES: ICRA Rates INR2.7cr Loan at '[ICRA]B'
---------------------------------------------------------
ICRA has assigned an '[ICRA]B' and '[ICRA]A4' ratings to the
INR7.20 crores Fund and Non-Fund Based bank limits of Bhadora
Industries.

                             Amount
   Facilities               (INR Cr)    Ratings
   ----------               ---------   -------
   Fund Based Facilities      2.70      [ICRA]B (Assigned)
   Non-Fund Based Facilities  4.50      [ICRA]A4 (Assigned)

The ratings reflect BIN's weak financial profile characterized by
low profitability, high gearing of 2.70 times as on March 31,
2012 and weak debt protection indicators. The ratings also factor
in the high working capital intensity of operations resulting in
stretched liquidity position, moderate scale of operations which
limits economies of scale and intensely competitive nature of
industry which puts pressure on profitability. However, the
ratings favorably takes into account the established position of
the promoters in the wire manufacturing industry and BIN's track
record with its reputed client base which mainly consists of
State Electricity Boards. Going forward, company's ability to
increase its scale of operations while improving its
profitability and capital structure will be amongst the key
rating sensitivity factors.

Bhadora Industries is a partnership firm incorporated in April
2009 based out of Tikamgarh, Madhya Pradesh. The company is
primarily engaged in the production of PVC Insulated Cables. Its
products are certified by the Bureau of Indian Standards and its
clientele comprises majorly of State Electricity Boards like
Kerala State Electricity Board, Maharashtra State Distribution
Company etc. The firm has Mr. Pradeep Bhadora and Mr. Anil
Bhadora as equal partners having experience of more than 20 years
in the industry. The manufacturing plant is located in Tikamgarh,
Madhya Pradesh and is equipped with a proper testing laboratory.


GUJARAT SPICES: ICRA Reaffirms 'BB+' Rating on INR34.92cr Loans
---------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]BB+' rating to the INR4.92 crore
term loans (reduced from INR7.31 crore) and the INR30.0 crore
fund based facilities of Gujarat Spices and Oilseeds Growers
Cooperative Union Limited. The outlook on the long term rating
has been revised to 'negative' from 'stable'. ICRA has also
reaffirmed the '[ICRA]A4+' rating to the INR75.00 crore short
term non fund based facilities (reduced from INR150 crore) of the
company.

                       Amount
   Facilities         (INR Cr)    Ratings
   ----------         ---------   -------
   Term Loans            4.92     [ICRA]BB+(negative/reaffirmed)

   Fund Based Limits    30.00     [ICRA]BB+(negative/reaffirmed)

   Non Fund Based       75.00     [ICRA]A4+ reaffirmed
   Limits

ICRA has combined the operational and financial risk profiles of
Gujarat Spices and Oilseed Growers Cooperative Union Limited and
group company Vimal Oils & Foods Ltd to arrive at the ratings.
The revised outlook takes into account the decline in the
company's profit margins in FY 2012 and the continuing pressure
on margins, which ICRA expects to persist in the near term. The
ratings are constrained by the inherently low margins in this
line of business, moderate market position of the company in the
relatively high margin retail segment, highly fragmented nature
of industry which exposes GUJOIL to the competition from the
unorganized players in the lower end of the products and large
players, including multinationals in the branded segment. The
profitability would also remain exposed to adverse fluctuations
in exchange prices and the reduced duty protection to domestic
refiners on account of change in duty structure by Indonesia.
Further, the company's lack of seed crushing capacity limits
value addition in the edible oil value chain and also restricts
its ability to switch to its own crude supply in adverse price
scenario for crude oil.

The ratings continue to reflect the long track record of the
promoters in the edible oil industry and diversified product
portfolio with flexibility to change the product mix according to
price trends. The ratings also factor in the locational
advantages arising from the proximity to ports, for crude oil
procurement, access to VOFL's extensive distribution network and
the favorable growth prospects of the industry. The ratings are
further supported by access to VOFL's widespread distribution
network for sales of the company's products.

Gujarat Spices and Oilseeds Growers' Cooperative Union Ltd.,
incorporated in 2003, is a union formed by various cooperative
societies in order to set up an edible oil refinery at Anjar,
Kutch District, Gujarat. The installed refining capacity of the
plant is 900 TPD for other edible oils and 100 TPD for Vanaspati
oil. The factory was established in Kutch region to get the
benefit of sales tax and excise duty exemption from the State and
Central Govt as announced by them as rehabilitation package after
the massive quake in Gujarat in 2001.

GUJOIL is part of the Vimal group of industries based out of
Mehsana whose flagship company - Vimal Oils & Foods Ltd. is
engaged in the production, refining and marketing of edible oils.
Vimal Group of Industries is one of the leading groups of North
Gujarat engaged in diversified businesses like Electrical
Products, Cable Wires, Winding Wires, Submersible Pumps, Dairy
Industry, Edible Oil Industry, Paint Industry and Micronised
Mineral Powder.


MATERIAL MOVELL: ICRA Assigns 'BB-' Rating to INR5.5cr Loans
------------------------------------------------------------
ICRA has assigned the long term rating of '[ICRA]BB-' to the
INR5.50 crore fund based limits of Material Movell (India)
Private Limited. The rating carries a Stable outlook.

                        Amount
   Facilities          (INR Cr)     Ratings
   ----------           ---------   -------
   Fund Based Limits      5.00      [ICRA]BB- (Stable/Assigned)
   Unallocated Limits     0.50      [ICRA]BB- (Stable/Assigned)
I
The rating favorably factors in the experience of the promoters
in the trolley wheel, conveyor belt rollers and related product
manufacturing industry. Further, the rating also takes into
account its healthy capital structure and its debt coverage
indicators as reflected by a gearing of 0.89 times and interest
coverage of 3.06 times as on March 31, 2011. Notwithstanding the
increasing scale of operations, MMPL's current operating scale
remains modest which coupled with highly competitive nature of
the industry results in modest net profitability for the company.
The rating also factors in exposure to high client concentration
with the share of top client in total sales increasing from 9.5%
in FY10 to 13.5% in FY12. Going forward, ability to improve its
operating scale while maintaining its profitability as well as
capital structure will be amongst the key rating sensitivity
factors.

Material Movell (India) Private Limited was incorporated in June
1998 with Mr. Ashok Kumar Khandelwal and Ms. Shipli Kahndelwal
(daughter of Mr. Ashok Khandelwal) as the founding promoters of
the company. Currently, Mr. Sumit Khandelwal, son of Mr. Ashok
Khandelwal along with his father manages the day to day affairs
of the company. The company is involved in manufacturing of
trolley wheels, conveyor belts rollers and related products. It
has its facilities located at Noida, Uttar Pradesh as well as
another facility at Roorkee, Uttrakhand. Apart from the two
facilities, the company has set up a new facility at Greater
Noida which is expected to be operational in FY13.

Recent Results

For the period ending FY 10-11 (April 2010-March 2011), the
company reported a profit of INR0.52 crore on an operating income
of INR18.19 crore. For FY 11-12, the company is expected to
report a turnover of INR23.20 crore.


MBH POWER: ICRA Assigns 'BB' Rating to INR7.75cr Term Loan
----------------------------------------------------------
ICRA has assigned a rating of '[ICRA]BB' to the INR7.75 crore,
long-term, fund-based facilities of MBH Power Private Limited.
ICRA has also assigned a rating of '[ICRA]A4' to the INR4.00
crore, short-term, non-fund based facilities of MPPL. The outlook
on the long-term rating is stable.

                        Amount
   Facilities          (INR Cr)    Ratings
   ----------          ---------   -------
   Term Loan             7.75      [ICRA]BB (Stable/assigned)
   Bank Guarantee        4.00      [ICRA]A4 assigned

The assigned ratings are constrained by the company's modest
scale of operations and its high financial risk profile as
reflected in its declining profitability margins due to low value
addition and currently trading nature of operations by virtue of
selling electrical components to its associate concerns in Africa
who in turn bid for EPC business in Africa. While the company has
also diversified by bidding directly for EPC contracts in power
transmission business in African region, the company's
profitability remains exposed to intense competitive pressures,
geo-political risk emanating from the African countries as well
as exposure to forex and commodity price risks in execution of
such contracts.

ICRA, however, favorably factors in the long track record of the
promoters in the power transmission industry, particularly in
Africa. Further, the ratings factor in the strong group support,
limited counter party credit risk, favorable demand in the power
transmission industry in Africa and moderate financial risk
profile.

MBH Power Private Limited was established in 2006 as a Private
Limited Company. MPPL is engaged in the business of exporting
electrical engineering goods to group associates and executing
transmission & distribution based EPC contracts in Africa and
Gujarat. MPPL has also commissioned a 1MW solar based power
generation unit in Jambusar-Gujarat. MPPL is promoted by Mr
Bhagwan Mukhi who has vast experience in the power transmission
industry. The promoter is on the board of several companies
forming part of the Singapore based "Tolaram Group".

Recent Results

In FY 2011, MPPL reported an operating income of INR62.60 crore
(as against INR41.71 crore in FY 2010) and profit after tax of
INR0.97 crore (as against INR1.12 crore in FY 2010). As per the
provisional unaudited financials for FY2012, MPPL reported an
operating income of INR65.29 crore and a profit before tax of
INR2.24 crore.


PAULSON HOTEL: ICRA Rates INR20cr Term Loan at '[ICRA]B+'
---------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B+' to the
INR20.00 crore term loan facilities of Paulson Hotel & Resorts
Private Limited.
                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Term Loan               20.00      [ICRA]B+ assigned

The rating takes into account the limited experience of the
promoters in the hotel business and PHRPL's exposure to property
concentration risks, with revenues being generated from a single
property at present. The rating also takes into account the
hotel's nascent stage of operations, and the long gestation
period that is typical of a new hotel to turn profitable.
However, ICRA observes that the back ended repayment pattern of
the debt is likely to provide some liquidity support in the near
term. The rating factors in PHRPL's leveraged capital structure,
as indicated by a gearing of 4.70 time as on March 31, 2012, and
the vulnerability to cyclicality associated with the hotel
industry, on account of economic slowdowns and geopolitical
externalities. However, the rating derives comfort from the
completion of construction, and the recent commencement of
operations of the hotel, as well as the favorable location of the
hotel, in close proximity to the Airport as well as Salt Lake
Sector V and Rajarhat, the IT/ ITeS hubs of Kolkata, which
enhances its competitive position.

Paulson Hotel is a part of the D.C. Paul Group, which has an
established track record in the design, planning and development
of residential and commercial buildings in Kolkata. PHRPL has
developed a 55 room, 4 star category hotel, branded "De Sovrani",
located at Salt Lake area of Kolkata. The total project cost
incurred is INR33.97 crore, which has been partially funded by a
bank debt of INR20.00 crore. The hotel has recently commenced
operations from April 2012 onwards, and is being managed by a
professional in-house management team.


SAMRUDDHA RESOURCES: ICRA Rates INR30cr LT Loan at '[ICRA]B+'
-------------------------------------------------------------
ICRA has assigned an '[ICRA]B+' rating to the INR30.00 crore
long-term fund-based bank limits of Samruddha Resources Limited.
ICRA has also assigned an '[ICRA]A4' rating to the INR3.00 crore
short-term non-fund based bank limits and the INR30.00 crore of
short-term fund-based bank limits of SRL. INR30.00 crore of
short-term fund-based bank facilities are a sub-limit of the
INR30.00 crore long-term fund-based bank limits.

                            Amount
   Facilities              (INR Cr)     Ratings
   ----------              ---------    -------
   Long-term Fund-based       30.00     [ICRA]B+ assigned
   Limit

   Short-term Fund-based     (30.00)    [ICRA]A4 assigned
   Limit

   Short-term Non-fund        3.00      [ICRA]A4 assigned
   based Limit

The assigned ratings are constrained by unfavorable debt
servicing track record of the company; however the debt servicing
is currently regular; and the large scale of proposed investments
in Angola, which is likely to expose the company to project
related risks. ICRA also notes the high customer concentration
risks with a single customer accounting for 68% of the total
sales in 2011-12; and the company's exposure to cyclicality
inherent in the commodity iron-ore trading business. The ratings
are also constrained by the company's exposure to forex risks,
given its dependence on exports; and the risks arising from
operating in a highly regulated mining industry where operations
and profitability are likely to be impacted with change in
government policies. The ratings, nevertheless, favorably factor
in the healthy profits, driven by favorable realisations of iron-
ore fines; the conservative capital structure and healthy
coverage indicators; and the low working capital intensity of
business. An increase in export duty on iron-ore to 30% from 20%
in January 2012 is likely to have an adverse impact on SRL's
financial performance.

Incorporated in 1997, SRL (earlier known as Samruddha Overseas
Limited) is engaged in the mining and exports of iron-ore fines.
Prior to iron-ore mining and trading business, the company was
engaged in the trading of cotton and yarn. SRL carries out mining
activity at the 32.5 hectare iron-ore mine located in the Kalne
village of Sindhudurg District of Maharashtra. The mining lease
is owned by M/s Minerals and Metals (MM), and SRL has entered
into an agreement with MM for mining of iron-ore fines. SRL also
has mining leases for three other mines, which are non-
operational due to the moratorium imposed by the MoEF since
August 2011.

Recent Results

As per the provisional results for 2011-12, SRL reported a profit
after tax (PAT) of INR26.28 crore on an operating income of
INR305.75 crore as compared to a PAT of INR15.57 crore on an
operating income of INR217.60 crore in 2010-11 (audited).


SAVFAB BUILDTECH: ICRA Rates INR28cr Loan at '[ICRA]B+'
-------------------------------------------------------
ICRA has assigned '[ICRA]B+' rating to the INR28.0 crore fund
based limits of Savfab Buildtech Private Limited. The rating
favorably factors in the healthy level of bookings in the
launched towers supported by attractive location of the project.
ICRA notes that the debt tie up is in place for the first phase
of the project and that promoters have brought in large part of
their proposed contribution. However as the funding pattern of
the balance phases is yet to be finalized, funding risks for
these phases exist. Further, the rating is also constrained by
execution risks given the initial stage of project completion and
low collection efficiency despite healthy level of bookings.
Further, as the company has envisaged to increase the project
scope, timely receipt of key approvals for the increased scope
will be crucial for project completion. The same will increase
funding requirements which may lead to cashflow mismatches. The
company's ability to collect advances timely, execute the current
phase as planned and manage cashflows will be key rating
sensitivities.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Fund based limits        28.0      [ICRA]B+ assigned

Savfab Buildtech Private Limited is a special purpose vehicle
formed to develop a residential real estate project called
'Saviour Park' in the Mohan Nagar area of Ghaziabad, National
Capital region. Launched in September 2010, the project is spread
over a 9 acre land parcel and is being executed in phases. The
land parcel is under a joint development agreement with two
companies. SBPL is entirely respinsble for development and
marketing of the project and in turn will give a pre decided
revenue share to the land owning companies. Out of the six towers
planned, the first phase consists of two towers with 304 flats
(2/3/4 BHK) with an aggregate saleable area of 4.3 lakh sq ft.
The total project cost for phase 1 is INR120 crores proposed to
be funded by INR28 crores bank loan, INR28 crore promoters'
contribution and balance by customer advances. The entire project
is envisaged to have around 1000 flats and is proposed to be
completed by March 2016. For the same, company is in process for
applying for additional Floor Area ratio permissions. The funding
of the balance phases is expected to be done through customer
advances and promoter's contribution. The company is promoted and
managed by a group of first generation entrepreneurs mainly
headed by Mr. Dhanesh Goel and Mr. Vineet Goel.


SIGNATURE CERAMIC: ICRA Assigns 'B+' Rating to INR6.4cr Loans
-------------------------------------------------------------
A rating of '[ICRA]B+' has been assigned to INR2.50 crore fund
based cash credit facility and INR3.00 crore term loan facility
of Signature Ceramic Private Limited. A rating of '[ICRA]A4' has
also been assigned to INR0.90 crore short term non fund based
facilities of Signature Ceramic Private Limited.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Term Loans               3.00      [ICRA]B+ assigned
   Cash Credit              2.50      [ICRA]B+ assigned
   Bank Guarantee           0.90      [ICRA]A4 assigned

The ratings assigned take into account SCPL's weak financial
profile as reflected by low profitability, high gearing levels
and modest coverage indicators. The ratings are also constrained
by SCPL's small size of operations and limited distribution
network which along with the high competitive intensity is likely
to exert pressure on margins. ICRA also notes the dependence of
operations and cash flows of the company on the performance of
the real estate industry which is the main consumer sector, and
vulnerability of profitability to increasing prices of gas and
power. The ratings however have favorably considered the
experience of the key promoters in the ceramic industry, healthy
ramp-up of operations by SCPL and location advantage enjoyed by
SCPL giving it easy access to raw material.

Signature Ceramic Private Limited is a wall tiles manufacturer
with its plant situated at Morbi, Gujarat. The company was
established in October 2009, and the company commenced commercial
operations from July 2010. Signature Ceramics is managed by Mr.
Pravin Kundariya and Mr. Girish Loriya along with other
directors. The plant has an installed capacity to produce 28 lacs
boxes of wall tiles. Signature Ceramics currently manufactures
wall tiles of size 10" X 13", 6" X 18" and 10"X 10 and"8 X 16"
with the current set of machineries at its production facilities.

Recent Results:

During FY 2012 (as per unaudited provisional financials), the
company reported a profit after tax of INR0.22 crore on an
operating income of INR21.10 crore.


SUNCITY PROJECTS: ICRA Reaffirms 'BB' Rating on INR344.61cr Loan
----------------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]BB' and short
term rating of '[ICRA]A4' for the enhanced Fund and Non-Fund
based facilities of INR492.40 crore of Suncity Projects Private
Limited. The outlook on the long term rating is Stable.

                          Amount
   Facilities            (INR Cr)    Ratings
   ----------            ---------   -------
   Fund based limits       344.61    [ICRA]BB (stable) Reaffirmed

   Non-Fund based limits   147.79    [ICRA]A4 Reaffirmed

The ratings take comfort from SPPL's strong parentage, its past
track record in the real estate business and its experienced
management. While reaffirming the ratings, ICRA has noted that a
large part of promoter's contribution has come in the form of
Share Application Money, which is subject to withdrawal; however
it draws comfort from the management's stated intention of
retaining these funds in the company. The ratings are however
constrained on account of slow sales progress in SPPL's on-going
projects resulting in increased market and funding risks for the
company. Furthermore, there has been deterioration in its debt
coverage indicators owing to significant rise in debt employed
(from INR175.5 crore as on March 31, 2011 to INR408.0 crore as on
March 31, 2012) to fund its in-progress projects and significant
scale-up of investments in group companies. The company is also
exposed to high refinancing risk in the event of continued slow
sales progress given the significant debt repayments falling due
in the short to medium term. ICRA believes SPPL's debt levels
will continue to remain high given the substantial incremental
funding requirement for in-progress projects, and sluggish real
estate scenario. The ratings continue to be constrained on
account of construction delays witnessed in some of its on-going
projects reflecting execution risks, which is further accentuated
by large scale of its operations spread across various
geographies and segments. Going forward, SPPL's ability to
improve its sales momentum, ensure timely collections from
bookings and reduce its debt levels would be the key rating
sensitivities.

Suncity Projects Private Limited was incorporated in 1996 and is
into the business of real estate development, in the past it has
developed commercial complexes, group housing colonies, retail
malls, schools etc. The company has so far built over ~70-lakh
sq.ft of retail, commercial and residential space in Gurgaon and
New Delhi. The company is promoted by Essel Group (ZEE Group),
Action Group and ODEON Group, each hold equal share in the
company. SPPL is the main group company of the Suncity Group
which has various other group companies, the group has completed
nine projects in the past which include one plotted colony, one
group housing complex, six commercial complexes and one school.
The company has been majorly developing projects in Gurgaon,
Haryana region, however has also developed a few projects in New
Delhi and Jaipur. The company is currently in the process of
developing various projects which are expected to provide revenue
visibility in the medium term, further, it has already developed
a few projects which are not entirely sold and will also
contribute to the revenues in the coming years.

Recent Results:

In FY11, the company reported a net profit of INR13.8 crore on a
turnover of INR238.9 crore. Further, as per the provisional
numbers for FY12, SSPL reported a profit after tax (PAT) of
INR18.3 crore on a turnover of INR294.0 crore.


VAIGHAI AGRO: ICRA Reaffirms 'BB+' Rating on INR29.69cr Loans
-------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]BB+' rating to the enhanced term
loan facilities of INR10.19 crore and the enhanced long term fund
based facilities of INR19.50 crore of Vaighai Agro Products
Limited. ICRA has also reaffirmed the '[ICRA]A4+' rating to the
enhanced short term fund based facilities of INR3.00 crore and
the INR7.00 crore (reduced from INR10.00 crore) short term non
fund based facilities of the company.  ICRA has also assigned
'[ICRA]A4+' rating to the INR0.20 crore proposed short term fund
based facilities, the INR2.00 crore short term fund based
facilities (sub limit) and the INR1.00 crore short term non fund
based facilities (sub limit) of the company. The outlook on the
long term rating is stable.

                        Amount
   Facilities         (INR Cr)    Ratings
   ----------         ---------   -------
   Term loans           10.19     [ICRA]BB+ (Stable) reaffirmed

   Long term fund       19.50     [ICRA]BB+ (Stable) reaffirmed
   based facilities

   Short term fund       3.00     [ICRA]A4+ reaffirmed
   based facilities

   Short term fund       0.20     [ICRA]A4+ assigned
   based facilities-
   proposed

   Short term fund      (2.00)    [ICRA]A4+ assigned
   based facilities
   sub limit

   Short term non fund   7.00     [ICRA]A4+ reaffirmed
   based facilities

   Short term non fund   (1.00)   [ICRA]A4+ assigned
   based facilities
   sub limit

The reaffirmation of ratings takes into account VAPL's
established position in the rice bran processing industry, being
one of the largest rice bran processors in India for the last
three years and the favorable demand prospects for rice bran oil
(RBO) due to increasing awareness of its significant health
benefits, economical pricing compared to most other edible oil
varieties and easy availability of the raw material (rice bran).
The ratings also consider VAPL's healthy revenue growth in 2011-
12, low working capital intensity of the business and the
comfortable liquidity position of the company. While the
proximity to raw material sources reduces procurement lead time,
the long standing relationship and high bargaining power with
suppliers mitigates concerns on raw material availability to an
extent; the company also benefits from scale economies and has
reputed customers with history of low churn rates.

The ratings are, however, constrained by VAPL's thin profit
margins, on account of relatively low value addition and the
highly fragmented industry structure characterized by low product
differentiation and intense competition, although proposed entry
into the value added segment over the medium term through
overseas collaborations and measures for quality enhancement of
products are likely to improve profit margins going forward. VAPL
also has limited pricing flexibility with RBO owing to its
linkage to international crude oil prices, faces competition from
cheaper varieties of edible oil such as palm oil and is
vulnerable to threat from imports and agro-climatic risks.
Further, the company has high geographic concentration with Tamil
Nadu and its significant debt funded capital expenditure plans in
the medium term could deteriorate the capitalization / coverage
metrics and cash flows going forward.

Incorporated in February 2010, Vaighai Agro Products Limited is
engaged in the processing of crude rice bran oil (RBO) and de-
oiled rice bran (DRB) through the solvent extraction process. The
company, which processes rice bran in its three manufacturing
facilities in Tamil Nadu having an aggregate installed capacity
to process 3,20,000 MTPA, sells the unrefined RBO and DRB to
refineries and poultry/animal farms primarily located in Tamil
Nadu; the remaining sales is derived from various states
including Andhra Pradesh, Kerala, Karnataka, Maharashtra and
Madhya Pradesh to name a few. VAPL derived -56.9% of its revenue
in 2011-12 from RBO and -43.1% from sale of DRBs.

VAPL is the flagship company of the Madurai based Vaighai group,
with interests in chemicals and textiles apart from rice bran
processing. While Vaighai Chemical Industries Limited, whose RBO
division was demerged and floated as VAPL, is involved in
manufacturing of potassium chlorate used in the match industry,
Vaighai Finetex Limited, the textile company of the group, is
engaged in manufacturing of polyester blended cotton yarn. The
other companies are direct/step-down subsidiaries of VAPL
overseas and are in the rice bran processing segment. They
include a) Vaighai Lanka Private Limited, which is an 80%
subsidiary of VAPL and acts as the procurement arm of the company
from Sri Lanka b) a wholly owned non-operational subsidiary,
Vaighai International PTE Limited, Singapore, which was
incorporated recently and c) a joint venture of VIPL with an
Indonesian multinational, under the name PT Vaighai Bumi Agro
Industries, marking the entry of the group in Indonesia; this
joint venture company is likely to commence operations in
2013-14.

Recent Results:

VAPL reported profit after tax (PAT) of INR2.8 crore on operating
income of INR254.5 crore during 2011-12, against PAT of INR2.0
crore on operating income of INR109.7 crore for the six months
ended March 2011.


VIHANG HOSPITALITY: ICRA Rates INR6.6cr LT Loan at '[ICRA]B'
------------------------------------------------------------
ICRA has assigned an '[ICRA]B' rating to the INR6.60 crore long-
term fund-based facilities of Vihang Hospitality.

                            Amount
   Facilities              (INR Cr)     Ratings
   ----------              ---------    -------
   Long-term, Fund-based     6.60       [ICRA]B assigned
   limits (Term Loan)

The rating takes into consideration the nascent stage of business
with operations having started only in August 2011, small scale
of operations with four operational bakery outlets and four
restaurants and heavy concentration towards the Thane market. The
risk is further accentuated by fragmented nature of food service
industry and intense competition from established bakery outlet
chains and restaurant chains.

ICRA however favorably considers the strong reputation of Vihang
Group in Thane district and its experience in hotel and
infrastructure industry. The rating draws comfort from partners'
real estate projects at prime residential locations in Thane
providing easy access to space for outlets with ready catchment
area. Further, the rating takes into account the better than
expected sales at 'Bittu ka Dhaba' restaurant.

However, the sales at the bakery chain 'Mumbai Fast' remains
below expectations. Going forward, the fortunes of the LLP would
depend upon the brand equity it is able to develop for its bakery
chain as well as restaurants. With limited operational history
the performance going forward would need to be closely monitored.

Vihang LLP, incorporated in November, 2010, is a hospitality firm
engaged in owning and operating a chain of bakery outlets and
fine dining restaurants. The bakery outlets are branded 'Mumbai
Fast' and sell bakery, confectionery and other fast food
products. The restaurants are under the brand name 'Bittu ka
Dhaba' and 'Rock n Wood'. Bittu ka Dhaba is a fine dining
restaurant serving mainly kebabs and other non-veg delicacies.
Rock and Wood, restaurant cum bar, has an open kitchen style
restaurant set-up and serves Oriental, Indian and Chinese
cuisines.

The partners in this firm are Mr. Pratap Sarnaik and family (75%
share) and Mr. Yogesh Chandagela (25% share). Vihang group is one
of the major builders in Thane area with real estate projects in
Thane area. They also have experience in hotel industry (owns and
operates Vihang's Inn in Thane). Mr Pratap Sarniak is the local
MLA of Bhayandar constituency.


VIMAL DAIRY: ICRA Reaffirms 'BB-' Rating on INR22cr Term Loans
--------------------------------------------------------------
ICRA has reaffirmed an '[ICRA]BB-' rating to the INR2.00 crore
term loans and the INR20.00 crore fund based facilities of Vimal
Dairy Limited.  The outlook on the long term rating is stable.

                        Amount
   Facilities          (INR Cr)     Ratings
   ----------          ---------    -------
   Term Loans            2.00       [ICRA]BB- (stable) reaffirmed
   Fund Based Limits    20.00       [ICRA]BB- (stable) reaffirmed

The reaffirmation of rating takes into account the relatively
modest size of operations compared to the cooperative sector
undertakings, strong competitive pressures and low profit
margins. The ratings are further constrained on account of high
working capital intensity in the operations and debt funded
capital expenditures resulting in a stretched capital structure.
The rating is also constrained by the vulnerability of the profit
margins to volatility in raw material procurement prices and
seasonality of the raw milk procurement process. However, the
rating also factors in the promoters' experience in dairy
operations and their ability to leverage on the umbrella brand of
the group -- "Vimal". The ratings are further supported by the
diversification across all milk product segments and own SMP
(Skimmed Milk Powder) capacity to ensure uninterrupted production
in lean season.

Vimal Dairy Limited, incorporated in 1992 is primarily engaged in
the production of pasteurized milk and milk products like ghee,
butter, cheese, paneer, etc. VDL is one of the largest private
sector dairies in Gujarat. It has a processing capacity of two
lakh litres of milk per day at its plant located at Mehsana. The
company also operates a Milk powder plant on rent from group
company - Vimal Oils and Foods Ltd.

VDL is part of the Vimal group of industries based out of Mehsana
whose flagship - Vimal Oils & Foods Ltd. is engaged in the
production, refining and marketing of edible oils. Vimal Group of
Industries is one of the leading groups of North Gujarat engaged
in diversified businesses like Electrical Products, Cable Wires,
Winding Wires, Submersible Pumps, Dairy Industry, Edible Oil
Industry, Paint Industry and Micronised Mineral Powder.

VDL reported a profit after tax (PAT) of INR1.09 crore in FY
2011-12 (provisional) on an operating income of INR92.68 crore
(provisional).


VIMAL MICRONS: ICRA Reaffirms 'B+' Rating on INR19.75cr Loan
------------------------------------------------------------
ICRA has reaffirmed an '[ICRA]B+' rating to the INR6.9 crore term
loans and the INR12.85 crore fund based facilities of Vimal
Microns Limited. ICRA has also reaffirmed an '[ICRA]A4' rating to
the INR1.00 crore short term non fund based facilities of VML.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Term Loans               6.9       [ICRA]B+ reaffirmed
   Fund Based Limits       12.85      [ICRA]B+ reaffirmed
   Non Fund Based Limits    1.00      [ICRA]A4 reaffirmed

The reaffirmation of ratings takes into account the relatively
modest size of operations of the company, fragmented nature of
the industry with large number of unorganized as well as
organized players and weak financial profile characterized by low
net margins and a stretched capital structure resulting from
regular debt funded capex in the past. Moreover, absence of
captive mineral resources exposes the company to uncertainty in
its raw material supply arrangements and results in high working
capital intensity of operations. The ratings however, favorably
factor in the long experience of the promoters in the business,
healthy plant utilization levels, established relationship with
reputed clientele and positive demand outlook from the paints and
plastics industry. The group's recent move to acquire captive
mineral source is expected to support raw material requirement to
a large extent. Any financial support provided by the company
towards the group's new projects which could constrain the
financial position remains a key rating sensitivity.

Vimal Microns Limited, established in 1993 by Shri. Ganpatbhai K.
Patel and associates, is engaged in manufacturing of micronised
mineral powder used as fillers in various paint and polymer
industries. The different products consist of Calcium Carbonate,
Dolomite, China Clay, Talc, Baryte and Quartz. The company's
manufacturing setup is located at Mehsana district, Gujarat and
the production capacity of the plant is 56,000 TPA.

VML is part of the Vimal group of industries based out of Mehsana
whose flagship company - Vimal Oils & Foods Ltd. is engaged in
the production, refining and marketing of edible oils. Vimal
Group of Industries is one of the leading groups of North Gujarat
engaged in diversified businesses like Electrical Products, Cable
Wires, Winding Wires, Submersible Pumps, Dairy Industry, Edible
Oil Industry, Paint Industry and Micronised Mineral Powder.

VML reported a profit after tax (PAT) of INR0.65 crore in FY
2011-12 (provisional) on an operating income of INR58.24 crore.



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


L-JAC 7 TRUST: Moody's Reviews 'Caa3' Ratings for Downgrade
-----------------------------------------------------------
Moody's Japan K.K has reviewed the ratings for the 21 Class trust
certificates and CMBL issued/borrowed by L-JAC 7 Trust.

The final maturity of all the Trust Certificates will take place
in October 2014.

Details follow:

Class A and CMBL, A2 (sf) placed under review for downgrade;
previously on October 6, 2011, downgraded to A2 (sf)

Class B, Ba2 (sf) placed under review for downgrade; previously
on October 6, 2011, downgraded to Ba2 (sf)

Class C, Caa2 (sf) placed under review for downgrade; previously
on September 9, 2011, downgraded to Caa2 (sf)

Class D-1, Caa2 (sf) placed under review for downgrade;
previously on September 9, 2011, downgraded to Caa2 (sf)

Class E-1, Caa3 (sf) placed under review for downgrade;
previously on September 9, 2011, downgraded to Caa3 (sf)

Class F-1, Caa3 (sf) placed under review for downgrade;
previously on September 9, 2011, downgraded to Caa3 (sf)

Class G-1, Caa3 (sf) placed under review for downgrade;
previously on April 21, 2010, downgraded to Caa3 (sf)

Class D-2, Caa3 (sf) placed under review for downgrade;
previously on September 9, 2011, downgraded to Caa3 (sf)

Class E-2, Caa3 (sf) placed under review for downgrade;
previously on September 9, 2011, downgraded to Caa3 (sf)

Class F-2, Caa3 (sf) placed under review for downgrade;
previously on April 21, 2010, downgraded to Caa3 (sf)

Class G-2, Caa3 (sf) placed under review for downgrade;
previously on April 21, 2010, downgraded to Caa3 (sf)

Class H-2, Caa3 (sf) placed under review for downgrade;
previously on April 21, 2010, downgraded to Caa3 (sf)

Class I-2, Caa3 (sf) placed under review for downgrade;
previously on April 21, 2010, downgraded to Caa3 (sf)

Class J-2, Caa3 (sf) placed under review for downgrade;
previously on April 21, 2010, downgraded to Caa3 (sf)

Class D-3, Caa3 (sf) placed under review for downgrade;
previously on September 9, 2011, downgraded to Caa3 (sf)

Class E-3, Caa3 (sf) placed under review for downgrade;
previously on September 9, 2011, downgraded to Caa3 (sf)

Class F-3, Caa3 (sf) placed under review for downgrade;
previously on April 21, 2010, downgraded to Caa3 (sf)

Class G-3, Caa3 (sf) placed under review for downgrade;
previously on April 21, 2010, downgraded to Caa3 (sf)

Class H-3, Caa3 (sf) placed under review for downgrade;
previously on April 21, 2010, downgraded to Caa3 (sf)

Class I-3, Caa3 (sf) placed under review for downgrade;
previously on April 21, 2010, downgraded to Caa3 (sf)

Deal Name: L-JAC 7 trust

Class: Class A through I-3 trust certificates and CMBL

Issue Amount (initial): Approximately JPY36,980 million

Dividend: Floating

Transfer Date of Trust Certificates / CMBL: March 31, 2008

Final Maturity Date: October 2014

Underlying Asset (initial): four non-recourse loans and four TMK
bonds

Entrustor: Lehman Brothers Japan Inc., and Lehman Brothers
Commercial Mortgage K.K. (as of issue date)

Arranger: Lehman Brothers Japan Inc (as of issue date)

The L-JAC 7 Trust, effected in March 2008, represents the
securitization of four non-recourse loans and four TMK bonds. The
transaction is currently secured by three non-recourse loans and
three specified bonds. The underlying loan portfolio is divided
into three loan pools -- A, B, and C.

The Entrustor entrusted the Loan Receivables, divided into three
loan pools, to the Trustee. The Trustee in turn issued the Trust
Certificates of Class A through K-1 and Class X.

Some of the Class A Trust Certificates were re-entrusted to the
Trustee, and the Lender launched CMBL backed by the re-entrusted
certificates. The Trust Certificates and CMBL are rated by
Moody's.

Dividend and principal distributions will be implemented
sequentially at the CMBS level. Interest and principal
collections from the Loan Assets will be allocated only within
the corresponding group of the Trust Certificates.

The limits on principal repayments are allocated to Classes A
through C, as corresponding to each group.

And the repayment amounts, which exceed these limits and are from
the Loan Assets, are paid sequentially to the other subordinated
classes.

At the CMBS level, the principal distribution for Classes A
through C in each Pool will be added up and allocated
sequentially.

The loss will then be allocated to the most subordinated Class,
corresponding to the defaulted Loan/Bond in reverse order of the
sequential pay priority.

The total amount of losses distributed to the Class A through C
Trust Certificates will be re-allocated among them in the reverse
order of the sequential pay priority, starting with Class C.

Ratings Rationale

The current rating action reflects the following factors:

(1) Moody's decision to apply a higher level of stress on its
recovery assumptions for future disposal prices as the
performance of some of the remaining properties has deteriorated.

(2) As a result of collateral dispositions by the special
servicer, a write-down of rated certificates -- in turn due to
the loss on a special servicing loan -- is highly likely at next
payment date.

The principal methodology used in this rating was "Updated:
Moody's Approach to Rating CMBS Transactions in Japan (June
2010)" published on September 30, 2010.


SHINSEI TB: Fitch Affirms Rating on JPY2-Bil. Loan at 'BBsf'
------------------------------------------------------------
Fitch Ratings has affirmed Shinsei TB Fund 7976001's beneficial
interests (BIs).  The transaction is a securitisation of
residential mortgage loan receivables predominantly backed by
investment properties in Japan.

  -- JPY6.95bn* mezzanine BIs 1 affirmed at 'Asf'; Outlook Stable

  -- JPY1.7bn* mezzanine BIs 2 affirmed at 'BBBsf'; Outlook
     Stable

  -- JPY2.05bn* mezzanine BIs 3 affirmed at 'BBsf'; Outlook
     Stable

* as of July 4, 2012

The affirmations reflect Fitch's view that available credit
enhancement levels are sufficient to support the current ratings.

The underlying asset performance has been within Fitch's
expectations since closing in July 2011.

The transaction has benefited from excess spread in line with
Fitch's expectations, although the agency has assumed very
limited excess spread under stressed scenarios, considering the
potential basis risk inherent in this transaction.


* JAPAN: Moody's Changes Outlook for P&C Insurance Industry
-----------------------------------------------------------
Moody's Japan K.K. has revised its outlook for the Japanese
property and casualty (P&C) insurance industry to stable from
negative.

This change mainly reflects Moody's expectation of a recovery in
underwriting profits through changes to pricing strategies and
reductions in costs.

Moody's will explain its outlook for the Japanese P&C industry in
a new report, "Japanese Property and Casualty Insurance Industry
- Returns to Stable Outlook: Recovery in Profitability in Sight"
to be published shortly.

Moody's says that the stable outlook is based on four positive
developments.

First, various upward revisions in pricing for auto insurance
products, including the application of a new grading system, have
been implemented, or are underway. Moody's expects these measures
to positively impact on insurers' profits as early as FY2013,
helping them achieve a total business combined ratio of 95%-97%
in ensuing years.

Secondly, the industry is moving towards optimizing its domestic
business resources -- such as through staff reallocations and the
integration of information systems -- thereby reducing its cost
ratio.

Thirdly, sales of high-risk assets, notably Japanese stocks, will
continue. Given the significant size of the existing portfolio,
changes will occur incrementally, but they will steadily reduce
the financial volatility that such assets present to the
industry.

Finally, new investments in non-Japanese franchises -- in both
the life and non-life sectors -- will continue and help diversify
the underwriting and market risks that are currently concentrated
in Japan.

On the other hand, Moody's recognizes downside risks to the
improved outlook. These risks include a reduction in the number
of policyholders due to the price hikes for auto insurance, rapid
rises in the risks associated with expanding business outside
Japan, and additional large losses arising from natural disasters
-- one or more of which can delay the recovery in, or even
weaken, the industry's capitalization.

Moody's further notes that a subdued global economy and the risk
of further appreciation of the yen would reduce the value of the
industry's foreign financial portfolio and returns, and narrow
its options in regard to domestic investment products.

Moody's also continues to assume weak domestic demand growth for
insurance and low investment returns.

Moody's industry outlook expresses the rating agency's
expectations for the fundamental credit conditions in the
industry over the next 12 to 18 months.


* JAPAN: Moody's Changes Outlook for Life Insurance Industry
------------------------------------------------------------
Moody's Japan K.K. has revised its outlook for the Japanese life
insurance industry to stable from negative.

This change mainly reflects Moody's expectation of a continuing
stable business environment and insurers' focus on prudent
business strategy.

Moody's will explain in more detail its outlook for the Japanese
life industry in a new report, "Japanese Life Insurance Industry:
Outlook Revised to Stable." to be published shortly.

The change in outlook to stable takes into account the improving
trends evident in the business overall and the sector's
investment portfolios.

In particular, Moody's first notes that surrender and lapse rates
for policies continue to improve, reflecting the stronger efforts
of insurers in Japan to focus on retaining existing
policyholders.

Profitable third-sector products -- those related to medical,
cancer and nursing care -- continue to grow, mitigating the
decrease in profits from traditional death coverage products.
This development reflects Japan's changing demographics.

Secondly, insurers continue to generate stable core profits,
supported by stable mortality and morbidity gains and a decrease
in their negative spread burdens. Moody's believes this stable
trend will continue for coming years.

Thirdly, insurers continue to emphasize conservative investments
through shifting risky assets to what they perceive as safer
assets and through reducing the duration gap between their assets
and liabilities.

Finally, Japanese insurers continue to manage retention of
capital to meet higher capital and solvency requirements by
accumulating retained earnings or through issuing subordinated
tools, which are -- according to regulations -- considered as
capital.

Insurers are seeking to increase revenue by seeking new markets
overseas and developing new domestic products, to offset pressure
from strong domestic competition.

Moody's notes that new businesses and overseas investments will
diversify operations and profit sources, but will also be
accompanied by varying levels of risk. Accordingly, prudent
management and sophisticated risk controls are required, and
insurers need to reflect such approaches in their business
strategies.

Moody's industry outlooks reflect the rating agency's
expectations for fundamental business conditions in the industry
over the next 12 to 18 months.



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


ALLIED CAPITAL: Speirs Seeks to Liquidate Alloway-Linked Firm
-------------------------------------------------------------
BusinessDesk reports that Speirs Group, the NZAX-listed food
group that sold its finance unit to Allied Farmers in 2008, is
seeking to liquidate Allied Capital, a company controlled by
Allied Farmers' former managing director Rob Alloway, to recoup
the value of preference shares.

BusinessDesk says Speirs has made an application to the
High Court in Auckland, which is due to be heard later this
month. It holds 500,000 NZ$1 convertible redeemable preference
shares in Allied Capital, whose only asset is a parcel of shares
in Allied Farmers, the report notes.

"We had some redeemable preference shares which are now due for
repayment and they haven't been repaid," Speirs chairman Keith
Taylor told BusinessDesk. "We provided for them some time ago and
this is just tidying up."

BusinessDesk discloses that Speirs got the NZ$1 preference shares
when it sold its holding in Allied Farmers to Allied Capital in
May 2009. It has written off the NZ$500,000 book value plus
NZ$34,000 in associated dividend arrears. It also holds 2 million
NZ$1 subordinated perpetual bonds in Allied Nationwide Finance,
which is in receivership.

According to BusinessDesk, Mr. Taylor said the amount owed on the
shares was "more than NZ$600,000 including interest."  Allied
Capital had told Speirs it wasn't in a position to repay the
shares, Mr. Taylor told BusinessDesk.

Mr. Alloway is listed as the sole director of Allied Capital and
as a shareholder along with Map and Associates, a Hamilton-based
company owned by Martin Fine, according to the Companies Office
records cited by BusinessDesk.


BROADLANDS FINANCE: S&P Raises Issuer Credit Ratings to 'CCC/C'
---------------------------------------------------------------
Standard & Poor's Ratings Services has raised its issuer credit
ratings on New Zealand finance company Broadlands Finance Ltd. to
'CCC/C' from 'SD'.  The rating outlook on BFL is negative.

"The rating action reflects our opinion that BFL's current credit
standing and anticipated forward prospects have improved since
BFL missed an interest payment on its loan to its key
shareholder, on Dec. 15, 2011. Our ratings on BFL were placed on
'SD' (Selective Default) at that time. Notwithstanding our
opinion that BFL's credit standing has improved, our view also
takes into account that risks pertaining to both of BFL's
business and financial profile remain high, and that BFL remains
vulnerable to non-payment.  Since our prior rating action, BFL's
capital ratios improved following the conversion to equity of an
NZ$5 million loan to BFL from its key shareholder, and because of
the shrinkage in its asset base. Improved capitalization affords
debenture holders a greater degree of comfort concerning
repayment certainty, "S&P said.

"The outlook on the rating is negative, reflecting our opinion
that liquidity risks in the six-to-nine month timeframe remain on
the downside, as a significant portion of BFL's customer
debenture book is due to mature, and given ongoing challenges
concerning asset quality and collections on receivables," S&P
said.


INVESTMENT SOLUTION: Sole Director to Enter Pleas This Week
-----------------------------------------------------------
APNZ reports that the director of Investment Solution Limited
alleged to have swindled NZ$5 million from family and friends is
expected to enter pleas to Serious Fraud Office charges this
week.

Evan Cherry, the sole director of Albany-based Investment
Solution Limited, is alleged to have stolen investors' funds and
made false statements in offer documents.

APNZ relates that Mr. Cherry appeared at the North Shore District
Court on July 6 where his lawyer Matt Dixon said there would be a
meeting with the Serious Fraud Office (SFO) before an expected
"resolution".

SFO prosecutor Todd Simmonds told the court the hoped pleas would
be entered when Mr. Cherry reappears this week, APNZ notes.

As reported in the Troubled Company Reporter-Asia Pacific on
June 13, 2012, the Serious Fraud Office had laid charges in the
North Shore District Court against Evan Paul Cherry, the sole
director (prior to July 11, 2011) of Albany-based investment and
financial advisors -- Investment Solutions Limited, ISL Nominees
Limited, Trading Strategies Limited, ISL Strategic Investments
Limited, and ISL Strategic Investments 100 Limited.

Mr. Cherry is facing seven charges under the Crimes Act relating
to the alleged theft of investor funds and false statements in
investor reports.

Mr. Cherry had initially sought and was granted name suppression,
but this was lifted on June 8, 2012.

The ISL companies were advertised as providing returns or finding
solutions that "generally outperform the market".

The ISL companies received approximately NZ$9 million from an
estimated 175 investors.

The SFO allege that at least NZ$5 million of these funds were not
invested in accordance with investment instructions.



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


NAPOCOR: S&P Raises Senior Unsecured Rating to 'BB+' From 'BB'
--------------------------------------------------------------
Standard & Poor's Ratings Services raised the long-term foreign
currency corporate credit ratings on three Philippine companies
-- Power Sector Assets & Liabilities Management Corp. (PSALM),
National Power Corp. (Napocor), and Philippine Long Distance
Telephone Co. (PLDT). The outlooks on these ratings are stable.

"We also affirmed the long-term local currency corporate ratings
on PSALM and Napocor and revised the outlooks to stable from
positive," S&P said.

At the same time, Standard & Poor's raised the issue rating on
all three companies.

The ASEAN scale long-term rating on PLDT has also been raised to
'axA-' from 'axBBB+'.

Ratings List

Power Sector Assets & Liabilities Management Corp. (PSALM)
                           To               From
Corporate credit rating
  Foreign currency         BB+/Stable/--    BB/Positive/--
  Local currency           BB+/Stable/--    BB+/Positive/--
Senior unsecured          BB+              BB

National Power Corp. (Napocor)
Corporate credit rating
  Foreign currency         BB+/Stable/--    BB/Positive/--
  Local currency           BB+/Stable/--    BB+/Positive/--
Senior unsecured          BB+              BB

Philippine Long Distance Telephone Co. (PLDT)
Corporate credit rating
  Foreign currency         BBB-/Stable/--   BB+/Positive/--
ASEAN regional scale      axA-/--          axBBB+/--
Senior unsecured          BBB-             BB+


PLDT: S&P Raises Senior Unsecured Rating to 'BBB-' From 'BB+'
-------------------------------------------------------------
Standard & Poor's Ratings Services raised the long-term foreign
currency corporate credit ratings on three Philippine companies
-- Power Sector Assets & Liabilities Management Corp. (PSALM),
National Power Corp. (Napocor), and Philippine Long Distance
Telephone Co. (PLDT). The outlooks on these ratings are stable.

"We also affirmed the long-term local currency corporate ratings
on PSALM and Napocor and revised the outlooks to stable from
positive," S&P said.

At the same time, Standard & Poor's raised the issue rating on
all three companies.

The ASEAN scale long-term rating on PLDT has also been raised to
'axA-' from 'axBBB+'.

Ratings List

Power Sector Assets & Liabilities Management Corp. (PSALM)
                           To               From
Corporate credit rating
  Foreign currency         BB+/Stable/--    BB/Positive/--
  Local currency           BB+/Stable/--    BB+/Positive/--
Senior unsecured          BB+              BB

National Power Corp. (Napocor)
Corporate credit rating
  Foreign currency         BB+/Stable/--    BB/Positive/--
  Local currency           BB+/Stable/--    BB+/Positive/--
Senior unsecured          BB+              BB

Philippine Long Distance Telephone Co. (PLDT)
Corporate credit rating
  Foreign currency         BBB-/Stable/--   BB+/Positive/--
ASEAN regional scale      axA-/--          axBBB+/--
Senior unsecured          BBB-             BB+


PSALM: S&P Raises Senior Unsecured Rating to 'BB+' From 'BB'
------------------------------------------------------------
Standard & Poor's Ratings Services raised the long-term foreign
currency corporate credit ratings on three Philippine companies--
Power Sector Assets & Liabilities Management Corp. (PSALM),
National Power Corp. (Napocor), and Philippine Long Distance
Telephone Co. (PLDT). The outlooks on these ratings are stable.

"We also affirmed the long-term local currency corporate ratings
on PSALM and Napocor and revised the outlooks to stable from
positive," S&P said.

At the same time, Standard & Poor's raised the issue rating on
all three companies.

The ASEAN scale long-term rating on PLDT has also been raised to
'axA-' from 'axBBB+'.

Ratings List

Power Sector Assets & Liabilities Management Corp. (PSALM)
                           To               From
Corporate credit rating
  Foreign currency         BB+/Stable/--    BB/Positive/--
  Local currency           BB+/Stable/--    BB+/Positive/--
Senior unsecured          BB+              BB

National Power Corp. (Napocor)
Corporate credit rating
  Foreign currency         BB+/Stable/--    BB/Positive/--
  Local currency           BB+/Stable/--    BB+/Positive/--
Senior unsecured          BB+              BB

Philippine Long Distance Telephone Co. (PLDT)
Corporate credit rating
  Foreign currency         BBB-/Stable/--   BB+/Positive/--
ASEAN regional scale      axA-/--          axBBB+/--
Senior unsecured          BBB-             BB+



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


PEOPLE'S BANK: Fitch Affirms 'BB' National Long Term Ratings
------------------------------------------------------------
Fitch Ratings has upgraded Sri Lanka's People's Bank (PB) and its
subsidiaries People's Leasing Company PLC (PLC), and People's
Finance PLC (PF), by a notch each.  The Outlooks are Stable.

At the same time, the agency has affirmed PB's associate company
People's Merchant Finance PLC (PMF, 36% effective ownership by
PB) at 'BB+(lka)' with Stable Outlook.

The upgrade of PB's rating reflects Fitch's reassessment of
government support to PB in light of its growing importance as
Sri Lanka's second-largest bank.  This is underpinned by the
agency's expectations that PB's role in the post-war development
economy will likely further strengthen its linkage with the Sri
Lanka government ('BB-'/Stable Outlook).

PB's rating reflects Fitch's expectation of timely support from
the government of Sri Lanka if required, given its government
ownership, importance to the government in light of the
abovementioned role, and high systemic importance (18% of system
assets and deposits at end-2011).  Changes to Sri Lanka's
sovereign rating will therefore result in changes to PB's
ratings.  PB's National Long-Term Rating may be upgraded further
if there is a demonstration of preferential support for PB.

The upgrade to PLC's and PF's ratings reflects the increased
capacity of their parent PB to extend support, as indicated by
the latter's rating upgrade.  Fitch's view of support is premised
on PLC's close integration with, and strategic importance to, PB,
and PF's strategic importance to, and integration with, PLC.
PB's majority ownership of PLC and PF also supports the ratings.

The affirmation of PMF's rating reflects Fitch's expectations of
a moderate level of support from PB due to its low integration
with, and limited strategic importance to, PB. Fitch's view of
support is based on PMF's association with, and the consequent
reputation risk to, PB's franchise.  PMF's rating also reflects
its weak standalone financial profile.

Both PLC and PF are strongly associated with the PB brand.  PB
owns 75% of PLC, and effectively owns 66.5% of PF through PLC.
At end-2011, the PLC group accounted for 27% of PB's consolidated
post-tax profits and 14% of net advances.  At end-March 2012,
PLC's and PF's aggregate retail funding amounted to over LKR23bn,
and funded 24% of the PLC group assets.

PB's capacity to support stems from the government's own capacity
and willingness to support the bank - through which support is
expected to flow into both PLC and PF.  Fitch believes it is
highly likely that government support could flow through to PLC
via PB, and to PF via PLC, mainly due to the subsidiaries'
strategic importance and linkages to PB and the consequent
reputation risk to the government if PLC or PF should fail.

The two-notch differential between the ratings of PB and PLC, and
of PLC and PF reflects the possibility of delay in timely
government support due to regulatory restrictions between the
entities (e.g. maximum exposure limits) or administrative
difficulties usually seen in layered support structures.

Changes to PB's ratings may result in corresponding changes to
PLC's ratings, providing the linkages between PB and PLC remain
intact.  PLC's ratings may be downgraded if PB gives up its
controlling stake in PLC, or if its strategic importance to PB
diminishes over time.  The same is true of PLC's and PF's
ratings.

Deterioration in PMF's profitability and deterioration in its
asset quality and solvency may result in a negative rating
action.  PMF's rating could be affected by a change in
circumstances that would warrant a review of Fitch's expectation
of support from PB.

PB is a key lender to the government, with assets amounting to
LKR663bn at end-2011, accounting for 18.5% of the licensed
commercial bank sector.  PLC is the largest non-bank financial
institution (NBFI) by advances and accounted for almost 20% of
NBFI sector assets.  At end-March 2012 PLC's consolidated assets
stood at LKR96bn.  PMF, which operates as a licensed finance
company since April 2012, had a consolidated asset base of
LKR2.9bn at end-March 2012.

PB's ratings:

  -- National Long-Term rating upgraded to 'AA+(lka)' from
     'AA(lka)'; Stable Outlook

PLC's ratings:

  -- National Long-Term rating: upgraded to 'AA-(lka)' from 'A+
     (lka)'; Stable Outlook

  -- LKR1.155bn senior unsecured redeemable debentures: upgraded
     to 'AA-(lka)' from 'A+(lka)'

  -- LKR1.5bn outstanding rated commercial paper: upgraded to
     'F1+ (lka)' from 'F1(lka)'

PF's ratings:

  -- National Long-Term rating upgraded to 'A(lka)' from 'A-
     (lka)'; Stable Outlook

PMF's ratings:

  -- National Long-Term rating affirmed at 'BB+(lka)'; Stable
     Outlook



                             *********

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, Ivy B. Magdadaro, Frauline S.
Abangan, and Peter A. Chapman, Editors.

Copyright 2012.  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
Peter Chapman at 240/629-3300.





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