/raid1/www/Hosts/bankrupt/TCRAP_Public/130530.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, May 30, 2013, Vol. 16, No. 106
Headlines
A U S T R A L I A
JOHN FARRAGHER: Goes Into Voluntary Administration
STORM FINANCIAL: Settles AUD1.1 Million Doyle Case
C H I N A
CHINA GREEN: Delays Form 10-Q Filing for First Quarter
CHINA METALLURGICAL: S&P Lowers CCR to 'BB+'; Outlook Stable
CHINA NATURAL: June 20 Hearing on U.S. Bankruptcy Dismissal Bid
SUNTECH POWER: Has Forbearance with Noteholders Until June 28
I N D I A
AMPS ENGINEERING: CRISIL Puts 'B' Ratings to INR34.2MM Loans
ARJUN ALLOYS: CRISIL Raises Ratings on INR175MM Loans to 'B+'
FIVE STAR: CRISIL Assigns 'D' Ratings to INR65MM Loans
GUSKARA HIMGHAR: CRISIL Places 'B-' Ratings on INR70MM Loans
NAGARJUNA ISPAT: CRISIL Assigns 'B+' Ratings to INR90MM Loans
NM COCONUT: CRISIL Assigns 'B+' Ratings to INR100MM Loans
NOOR TOBACCO: CRISIL Rates INR60MM Cash Credit at 'B+'
PRECISION ENG'G: CRISIL Assigns 'B-' Rating to INR110MM Loans
SHUBHLAXMI CASTING: CRISIL Ups Ratings on INR191.3MM Loans to B+
SLK PROGRESSIVE: CRISIL Rates INR5MM Cash Credit at 'B+'
SONA FOOD: CRISIL Assigns 'B' Ratings to INR60MM Loans
SREEKANTH PIPES: CRISIL Assigns 'B-' Ratings to INR50MM Loans
SRI BALAJI: CRISIL Assigns 'B' Ratings to INR64MM Loans
SWASTIKA STEEL: CRISIL Upgrades Rating on INR86MM Loans to 'B'
TATA STEEL: FY2013 Results In Line with Moody's Ba3 CFR
VIVEK STEELCO: CRISIL Raises Ratings on INR194.8MM Loans to 'B+'
* INDIA: 13 Cooperative Banks Declared Insolvent Last Fiscal
* Mortgage Jobs Sent to India by U.S. Banks
J A P A N
EAST STREET: Moody's Revises Ratings on 18 Classes of SF CDOs
JLOC XXXIII: Fitch Withdraws 'D' Rating on Class D TBIs
* S&P Raises Ratings on 3 Japanese Synthetic CDO Tranches
N E W Z E A L A N D
FELTEX CARPETS: Forsyth Barr Opts Clients Into Case
MEDIA COUNSEL: Director Faces Serious Fraud Office Charges
S I N G A P O R E
AMARU INC: Amends 2011 Annual Report
SINGAPORE FLYER: Enters Receivership; Business as Usual
S O U T H K O R E A
SSANGYONG ENG'G: Banks Suffer Critical Liquidity Problems
* Banks' Financials Worsen Over Rescue Funds to Troubled Firms
T A I W A N
CONCORD SECURITIES: Fitch Affirms 'B' ST Foreign Currency IDR
JIH SUN: Fitch Affirms 'B' Short-Term Issuer Default Rating
JIH SUN INT'L: Fitch Affirms 'B' Short-Term Issuer Default Rating
TACHAN SECURITIES: Fitch Affirms 'BB' LT Foreign Currency IDR
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A U S T R A L I A
=================
JOHN FARRAGHER: Goes Into Voluntary Administration
--------------------------------------------------
Newcastle Herald reports that John Farragher Transport Management
Pty Ltd has gone into voluntary administration for the second time
in eight years.
Newcastle Herald says minutes of an earlier creditors meeting on
May 6 state that the company had outstanding employee entitlements
of about AUD800,000 and owed the National Australia Bank AUD3
million.
According to the report, "records show John Michael Farragher is
John Farragher Transport Management's sole director but he owns
the $2 company in equal shares with his wife, Gizella Pam Forgacs,
a daughter of the late Stephen Forgacs and a director and
shareholder in the Forgacs Engineering business."
Mr. Farragher declined to say how many people Farragher's employed
but a decade ago the company had hoped to lift its workforce from
70 to 120.
The Newcastle Herald was contacted by people concerned at
apparently unpaid superannuation at the company, but
Mr. Farragher insisted that all employee entitlements would be
protected under his proposed deed of company arrangement.
John Farragher Transport Management Pty Ltd has operated since
1933 -- across four generations of the family -- and provides
warehousing and transport services to a range of corporate
customers including Big W. It has branches in Melbourne, Brisbane
and Sydney and a four-hectare head office site at Cameron Park.
STORM FINANCIAL: Settles AUD1.1 Million Doyle Case
--------------------------------------------------
The Australian Securities and Investment Commission has settled
legal proceedings arising out of its investigation into the
collapse of Storm Financial Limited.
The proceedings were commenced against Bank of Queensland Limited
(BoQ), Senrac Pty Limited (Senrac) and Macquarie Bank Limited
(Macquarie) on behalf of two former Storm investors (Barry and
Deanna Doyle).
Without admission, BOQ, Senrac and Macquarie have agreed to pay
AUD1,100,000, which will fully compensate Barry and Deanna Doyle
for their financial loss arising from their Storm investments, as
calculated by independent experts retained for the proceedings and
as calculated by ASIC under the compensation model it has
developed in connection with Storm.
A three week trial was due to commence on June 3, 2013, in the
Federal Court of Australia.
ASIC Chairman Greg Medcraft said ASIC is pleased to have achieved
this outcome for Mr. and Mrs. Doyle.
"The proceedings, which ASIC commenced in December 2010, were
brought to hold the banks accountable for their role in the losses
suffered by those who invested through Storm and to establish a
basis upon which the Doyles, and ultimately other Storm investors,
could achieve fair and adequate compensation.
"I am pleased that ASIC has been able to achieve this result and
that the allegations against BoQ and Macquarie of breach of
contract, unconscionable conduct and liability as linked credit
providers of Storm, which were first raised in these proceedings,
have provided a template for similar allegations that have been
raised in class actions brought on behalf of investors against
BoQ, Macquarie and CBA.
"ASIC will continue its efforts to achieve fair compensation for
all former Storm investors," Mr. Medcraft said.
Claims similar to those made in the Doyle proceedings were made in
the Richards class action against Macquarie.
Under the class action settlement negotiated by solicitors Levitt
Robinson and Macquarie, approximately 70% of class action members
would recover about 18% of their lost 'net equity' (as estimated
by Levitt Robinson).
The remaining class action members, who contributed in varying
amounts to the funding of the class action, would be reimbursed
their legal costs and also compensated for approximately 42% of
their lost 'net equity' (as estimated by Levitt Robinson). In
return for receiving this compensation, members of the Richards
class action would be required to give up any further claims
against Macquarie in respect of Storm.
ASIC has appealed the Federal Court's approval of the Richards
class action settlement. ASIC's appeal raises the question whether
the class action settlement was unfair to the 70% of class action
members who did not, or were unable to, contribute to the funding
of the action.
The Federal Court is yet to set a date for delivery of its
judgment in ASIC's unregistered managed investment scheme action
against Storm, BoQ and Macquarie.
ASIC commenced legal proceedings in the Federal Court of Australia
on December 22, 2010, in ASIC's name and in the name of and on
behalf of Barry and Deanna Doyle against BOQ, Senrac and Macquarie
in relation to alleged breach of contract, contravention of
statutory prohibitions against unconscionable conduct and the
banks' liability as linked credit providers of Storm under section
73 of the Trade Practices Act 1974 (Federal Court Proceedings: NSD
1797 of 2010).
About Storm Financial
Storm Financial Limited -- http://www.stormfinancial.com.au/--
operated in the Australian wealth management industry. The
company managed over one trillion dollars in investment fund
assets for over nine million investors, distributed through
investment administration providers and financial adviser. The
funds were invested through different investment products and
structures, including superannuation, non-superannuation managed
funds and life insurance products. Non-superannuation managed
funds, which form the majority of Storm's products, total
approximately 26.5% of total investment fund assets in Australia,
as of June 30, 2007.
In 2009, Storm Financial Ltd. appointed Worrells Solvency &
Forensic Accountants as voluntary administrators after the
Commonwealth Bank of Australia demanded debt repayment of around
AUD20 million. Storm later closed its business and fired all of
its 115 staff. The closure, the company's administrators said,
was due to the significant reduction in Storm's income resulting
in trading losses being incurred "at a rate which the company
could no longer absorb."
The Commonwealth Bank of Australia, Storm's largest creditor,
lodged a AUD27.09 million debt claim at a first meeting of the
company's creditors on Jan. 20, 2010. The group's remaining
creditors are owed AUD51 million, plus a provision for dividends
of AUD10 million.
In March 2009, the Australian Securities and Investments
Commission won its bid to liquidate Storm Financial after the
Federal Court ruled that the Company be wound up. Federal court
Justice John Logan appointed Ivor Worrell and Raj Khatri of
Worrells Solvency and Forensic Accountants as liquidators for the
Company.
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C H I N A
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CHINA GREEN: Delays Form 10-Q Filing for First Quarter
------------------------------------------------------
China Green Creative, Inc., said it is in the process of preparing
its consolidated financial statements as of and for the three
months ended March 31, 2013. The process of compiling and
disseminating the information required to be included in its Form
10-Q interim report for the three months ended March 31, 2013, as
well as the completion of the required review of the Company's
financial information, was not completed by May 15, 2013, without
incurring undue hardship and expense. The Company undertakes the
responsibility to file that quarterly report no later than five
calendar days after its original due date.
The Company recorded a net loss of approximately $177,275 for the
three months ended March 31, 2013, as compared to a net income of
$47,899 for the same period in 2012. The decrease in net income
was mainly attributable to the reduction in operation revenue and
the increase in general administrative expenses.
About China Green
China Green Creative, Inc., located in Shenzhen, Guangdong
Province, People's Republic of China, is principally engaged in
the distribution of consumer goods and electronic products in the
PRC.
China Green disclosed net income of $635,873 on $6.87 million of
revenues for the year ended Dec. 31, 2012, as compared with a net
loss of $344,901 on $1.92 million of revenue during the prior
year. The Company's balance sheet at Dec. 31, 2012, showed $6.35
million in total assets, $8.06 million in total liabilities and a
$1.71 million total stockholders' deficit.
Madsen & Associates CPA's, Inc., in Salt Lake City, Utah, issued a
"going concern" qualification on the consolidated financial
statements for the year ended Dec. 31, 2012. The independent
auditors noted that the Company does not have the necessary
working capital to service its debt and for its planned activity,
which raises substantial doubt about its ability to continue as a
going concern.
CHINA METALLURGICAL: S&P Lowers CCR to 'BB+'; Outlook Stable
------------------------------------------------------------
Standard & Poor's Ratings Services lowered the long-term corporate
credit rating on China Metallurgical Group Corp. (MCC Group) and
the rating on the outstanding senior unsecured notes the company
guarantees to 'BB+' from 'BBB-'. The outlook is stable.
At the same time, S&P affirmed its 'cnBBB+' Greater China regional
scale rating on the engineering and construction (E&C) company and
its notes.
S&P lowered the rating on MCC Group because of the company's
deteriorated capital structure and its cash flow coverage ratio
remaining low. S&P therefore lowered the stand-alone credit
profile to 'bb-' from 'bb' to reflect its expectations of a slow
recovery for the group.
"Our assessment of the likelihood of extraordinary government
support is unchanged," said Standard & Poor's credit analyst Jian
Cheng.
The issuer credit rating is two notches above the stand-alone
credit profile based on S&P's view that there is a "moderately
high" likelihood of timely and sufficient extraordinary support
from the government of China (AA-/Stable/A-1+; cnAAA/cnA-1+) if
the company faces financial distress.
"We forecast MCC Group's revenue to drop about 9% in 2013 because
growth in installed steel capacity in China has slowed," Mr. Cheng
said. Nevertheless, S&P believes MCC Group is able to secure
orders due to its steel companies' technology upgrades for
specialty products, energy efficiency, and emission control.
S&P expects the revenue contribution from its property development
will continue to increase this year, but the profit margin will
remain flat because of the large amount of real estate projects
available for sale.
S&P believes MCC has reversed its trend of negative operating cash
flow, improving to breakeven in 2012, from a negative figure of
more than Chinese renminbi (RMB) 17 million in 2011. Standard &
Poor's forecasts MCC's operating cash flow at about RMB7 billion
in 2013.
S&P attributes the improvement to (1) reduction in the working
capital requirements in its engineering and construction
contracts, particularly away from build and transfer projects; (2)
faster collection of long-term receivables; and (3) faster sale of
property development projects.
Nevertheless, MCC's funds from operations (FFO) remain weak and
S&P do not expect them to improve much. The company's sale of its
underperforming paper business will help improve its FFO to total
debt. In S&P's view, FFO to total debt may improve to slightly
above 5% in 2013, from about 3.8% in 2012.
S&P expects MCC's ratio of debt to total capital will remain above
70% for some time. Although the company has reduced its debt,
significantly lowered capital expenditures and sold its paper
business in 2012, high impairment charges from the write-down of
Huludao and other Australian iron ore projects caused the debt-to-
capital ratio to rise above 74% in 2012. It may take some time
for company to rebalance its equity base. S&P do not factor in
any capital injection from the government or near-term equity
raising in its forecast.
The stable outlook reflects S&P's expectation that the MCC Group
has reversed its negative free operating cash flow due to improved
working capital management and substantially lower capital
expenditures. Although S&P expects some softness in its core
engineering and construction business, any further deterioration
of its financial position is unlikely in next 24 months.
S&P may lower the rating if MCC Group's stand-alone credit profile
deteriorates further. This could happen if the company's EBITDA
interest coverage falls below 1.5X and FFO to total debt declines
below 5% for 12 consecutive months.
S&P may also downgrade the company if it believes the level of
government support has diminished.
S&P may raise the rating if MCC Group reduces its leverage such
that it improves its financial risk profile. An upgrade trigger
could be a ratio of FFO to total debt of above 10% and EBITDA
interest coverage of more than 2.5x over a sustained period.
CHINA NATURAL: June 20 Hearing on U.S. Bankruptcy Dismissal Bid
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
has set for June 20, 2013, at 2:00 p.m. (Eastern), the hearing on
China Natural Gas, Inc.'s motion for dismissal of the involuntary
bankruptcy petition signed by Abax Lotus Ltd., Abax Nai Xin A
Ltd., and Lake Street Fund LP.
Louis T. DeLucia, Esq., an attorney at Schiff Hardin LLP, counsel
for alleged debtor China Natural, avers that the petitioning
creditors fail to meet the requisite number of creditors to file
an involuntary petition, and that the petition was filed in "bad
faith" and for an improper purpose.
The Debtor is urging the Court to throw out the involuntary
Chapter 11 proceedings, saying the filing was part of a director's
effort to gain control of the company. The Debtor says that Xiang
Dong Yang, who owns Abax Lotus and Abax Nai, had expressed
interest in taking the publicly traded company private before the
two Abax entities.
Mr. DeLucia states that all of the debt allegedly held by the
Petitioning Creditors was issued as one Global Note to Abax Lotus,
pursuant to an Indenture issued in 2008, and for which Deutsche
Bank serves as trustee. According to Mr. DeLucia, Abax Nai and
Lake Street purport to hold the debt under the Indenture only by
virtue of alleged assignments of the original Global Note debt
from Abax Lotus subsequent to the issuance of the original note.
"Although the Petitioning Creditors filed certain declarations
pursuant to Rule 1003(a) of the Federal Rules of Bankruptcy
Procedure, those declarations are in conflict with certain
material SEC filings executed by Director Yang in his capacity as
a member of the Alleged Debtor's board of directors, and then
filed by the Alleged Debtor. Thus, a factual issue exists as to
the ownership of the Alleged Claims asserted by the Petitioning
Creditors -- a dispute unresolved by simple declarations filed by
the Petitioning Creditors," Mr. DeLucia states.
Interested parties have until June 6, 2013, at 5:00 p.m. (Eastern)
to file an objection to the Alleged Debtor's motion for dismissal
of its involuntary bankruptcy case.
The attorneys for China Natural can be reached at:
SCHIFF HARDIN LLP
Louis T. DeLucia, Esq.
Alyson M. Fiedler, Esq.
666 Fifth Avenue, 17th Floor
New York, NY 10103
Tel: (212) 753-5000
Fax: (212) 753-5044
E-mail: ldelucia@schiffhardin.com
afiedler@schiffhardin.com
About China Natural
Headquartered in Xi'an, Shaanxi Province, P.R.C., China Natural
Gas, Inc., was incorporated in the State of Delaware on March 31,
1999. The Company through its wholly owned subsidiaries and
variable interest entity, Xi';an Xilan Natural Gas Co., Ltd., and
subsidiaries of its VIE, which are located in Hong Kong, Shaanxi
Province, Henan Province and Hubei Province in the People's
Republic of China ("PRC"), engages in sales and distribution of
natural gas and gasoline to commercial, industrial and residential
customers through fueling stations and pipelines, construction of
pipeline networks, installation of natural gas fittings and parts
for end-users, and conversions of gasoline-fueled vehicles to
hybrid (natural gas/gasoline) powered vehicles at 0ptmobile
conversion sites.
On Feb. 8, 2013, an involuntary petition for bankruptcy was filed
against the Company by three of the Company's creditors, Abax
Lotus Ltd., Abax Nai Xin A Ltd., and Lake Street Fund LP (Bankr.
S.D.N.Y. Case No. 13-10419). The Petitioners claimed that they
have debts totaling $42,218,956.88 as a result of the Company's
failure to make payments on the 5% Guaranteed Senior Notes issued
in 2008. The Company opposes the motion.
Adam P. Strochak, Esq., at Weil, Gotshal & Manges, LLP, in
Washington, D.C., represents the Petitioners as counsel.
SUNTECH POWER: Has Forbearance with Noteholders Until June 28
-------------------------------------------------------------
Suntech Power Holdings Co., Ltd., has agreed on a new forbearance
agreement with the majority of the holders of the Company's
3 percent Convertible Notes, for which a principal payment of
US$541 million was due on March 15, 2013. Under the new
forbearance agreement, the signing bondholders agree not to
exercise their rights under the Notes and the related indenture
until June 28, 2013, subject to certain market-standard early
termination events.
David King, Suntech's CEO, said, "This new forbearance agreement
demonstrates bondholders' continued support for Suntech. The
agreement will enable Suntech to continue to work with bondholders
towards achieving a consensual restructuring."
About Suntech
Wuxi, China-based Suntech Power Holdings Co., Ltd. (NYSE: STP)
produces solar products for residential, commercial, industrial,
and utility applications. With regional headquarters in China,
Switzerland, and the United States, and gigawatt-scale
manufacturing worldwide, Suntech has delivered more than
25,000,000 photovoltaic panels to over a thousand customers in
more than 80 countries.
As reported by the TCR on March 20, 2013, Suntech Power Holdings
Co., Ltd., has received from the trustee of its 3% Convertible
Notes a notice of default and acceleration relating to Suntech's
non-payment of the principal amount of US$541 million that was due
to holders of the Notes on March 15, 2013. That event of default
has also triggered cross-defaults under Suntech's other
outstanding debt, including its loans from International Finance
Corporation and Chinese domestic lenders.
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I N D I A
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AMPS ENGINEERING: CRISIL Puts 'B' Ratings to INR34.2MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Amps Engineering & Equipments Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 4.2 CRISIL B/Stable (Assigned)
Bank Guarantee 30.0 CRISIL A4 (Assigned)
Cash Credit 30.0 CRISIL B/Stable (Assigned)
The rating reflects AMPS's working-capital-intensive operations,
below-average financial risk profile, and exposure to risks
related to cyclicality in the end-user industry. These rating
weaknesses are partially offset by the benefits that AMPS derives
from its promoters' extensive experience in the bulk material
handling industry and its established relationship with the buyers
and suppliers.
Outlook: Stable
CRISIL believes that AMPS's will continue to benefit from its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if AMPS's credit risk profile improves
significantly, most likely because of better-than-expected
revenues and profitability along with improvement in its working
capital cycle. Conversely, the outlook may be revised to
'Negative' if the company's financial risk profile, particularly
liquidity and capital structure, deteriorates due to stretch in
working capital cycle or due to large debt-funded capital
expenditure.
Incorporated in 2004, AMPS manufactures bulk material handling
equipment. The company also undertakes turnkey projects which
include design, manufacture, supply and erection of bulk material
handling equipment.
ARJUN ALLOYS: CRISIL Raises Ratings on INR175MM Loans to 'B+'
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Arjun Alloys (AA; part of the Agarwal group) to 'CRISIL B+/Stable'
from 'CRISIL B/Stable', while reaffirming its rating on the
company's short-term facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 9.2 CRISIL A4 (Reaffirmed)
Cash Credit 150.0 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Proposed Long-Term 5 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
Term Loan 20 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade reflects the improvement in the Agarwal group's
liquidity, marked by comfortable cash accruals, estimated at INR60
million to INR65 million, against repayment obligations of less
than INR30 million, in 2013-14 (refers to financial year, April 1
to March 31). The upgrade also factors in the measures taken by
the group's management for meeting its debt repayment obligations
in a timely manner.
The ratings reflect the Agarwal group's modest financial risk
profile, marked by high gearing and weak debt protection metrics,
and its large working capital requirements. These rating
weaknesses are partially offset by the extensive experience of the
group's promoters in the steel industry, and the integrated nature
of its operations.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of AA, Shubhlaxmi Casting Pvt Ltd, Anjan
Rerolling Mills Pvt Ltd, VS Multimetal Pvt Ltd, and Vivek Steelco
Pvt Ltd. This is because these entities, together referred to as
the Agarwal group, have the same promoters and management, and
significant intra-group transactions.
Outlook: Stable
CRISIL believes that the Agarwal group will maintain its moderate
business risk profile over the medium term, on the back of its
long track record in the steel industry. The outlook may be
revised to 'Positive' in case of a significant improvement in the
group's financial risk profile, most likely led by equity infusion
or a significant increase in profitability leading to higher
accretion to reserves. Conversely, the outlook may be revised to
'Negative' in case of a significant decline in the Agarwal group's
profitability or scale of operations, a further stretch in its
working capital cycle, or large, debt-funded capital expenditure,
leading to deterioration in its financial risk profile.
AA has induction furnace units at its manufacturing facility at
Changodar (Gujarat). The firm is part of the Agarwal group, which
has been manufacturing various steel products since 1972. Mr.
Suresh B Agarwal is the chairman of the group. The Agarwal group
comprises various entities, such as SCPL, AA, ARMPL, VSMPL, and
VSPL.
FIVE STAR: CRISIL Assigns 'D' Ratings to INR65MM Loans
------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facilities of Five Star Metals Private Limited. The rating
reflects instances of delay by FSMPL in servicing its term debt;
the delays have been caused by the company's weak liquidity,
driven by large working capital requirements.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 20 CRISIL D (Assigned)
Cash Term Loan 45 CRISIL D (Assigned)
FSMPL also has a modest scale of operations and geographic
concentration in its revenue profile. The company, however, has an
above-average financial risk profile, marked by healthy debt
protection metrics and benefits from the extensive experience of
its promoters in the stone-crushing industry.
Incorporated in 1995, FSMPL is in the business of stone crushing
and processing; it also manufactures artificial sand and rock
powder. The company's day-to-day operations are managed by its
managing director, Mr. A G Madhavan.
FSMPL reported a profit after tax (PAT) of around INR7.9 million
on net sales of INR115 million for 2011-12 (refers to financial
year, April 1 to March 31), against a PAT of around INR15 million
on net sales of INR116 million for 2010-11.
GUSKARA HIMGHAR: CRISIL Places 'B-' Ratings on INR70MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term
bank loan facilities of Guskara Himghar Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 19.0 CRISIL B-/Stable (Assigned)
Cash Credit 45.5 CRISIL B-/Stable (Assigned)
Cash Credit 2.5 CRISIL B-/Stable (Assigned)
Proposed Long-Term 3.0 CRISIL B-/Stable (Assigned)
Bank Loan Facility
The rating reflects GHPL's presence in the highly regulated and
intensely competitive cold storage industry in West Bengal. The
rating also factors in the company's weak financial risk profile
marked by a weak capital structure. These rating weaknesses are
partially offset by the extensive experience of GHPL's promoter in
the cold storage business.
Outlook: Stable
CRISIL believes that GHPL will continue to benefit over the medium
term from the extensive experience of its promoter in the cold
storage business. The outlook may be revised to 'Positive' in case
of efficient management of farmers financing, along with
significant ramp-up in GHPL's scale of operations and
profitability, or if the company registers improvement in its
capital structure leading to improvement in its financial risk
profile. Conversely, the outlook may be revised to 'Negative' in
case GHPL registers pressure on its liquidity on account of delays
in repayments by farmers, lower-than-expected cash accruals, or
any significant debt-funded capital expenditure.
GHPL, incorporated in 2003, provides cold storage services to
potato farmers and traders. The cold storage is in Guskara (West
Bengal). The day-to-day operations of the company are managed by
Mr. Sushil Mondal.
NAGARJUNA ISPAT: CRISIL Assigns 'B+' Ratings to INR90MM Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Nagarjuna Ispat Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Cash Credit 40 CRISIL B+/Stable (Assigned)
Limit
Cash Credit 50 CRISIL B+/Stable (Assigned)
Letter of Credit 50 CRISIL A4 (Assigned)
The ratings reflect NIPL's below-average financial risk profile,
marked by a modest net worth and weak debt protection metrics, and
geographical concentration in its revenue profile. These rating
weaknesses are partially offset by the extensive experience of
NIPL's promoter in the construction material trading business.
Outlook: Stable
CRISIL believes that NIPL will continue to benefit over the medium
term from its promoter's extensive industry experience and its
track record in the trading business. The outlook may be revised
to 'Positive' in case the company registers more-than-expected
increase in its scale of operations and profitability, resulting
in higher-than-expected cash accruals and improvement in its
capital structure. Conversely, the outlook may be revised to
'Negative' in case NIPL registers decline in its revenues and
profitability or if it undertakes a large, debt-funded capital
expenditure programme, leading to deterioration in its financial
risk profile.
NIPL, incorporated in 2009, trades in JSW branded steel and cement
at Hyderabad (Andhra Pradesh). The company is promoted by Mr.
Mahender Reddy.
For 2012-13 (refers to financial year, April 1 to March 31), NIPL,
on a provisional basis, reported a profit after tax (PAT) of
INR1.2 million on net sales of INR583.4 million, against a PAT of
INR0.4 million on net sales of INR200.4 million during
2011-12.
NM COCONUT: CRISIL Assigns 'B+' Ratings to INR100MM Loans
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of NM Coconut Oil Mercchants.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 65 CRISIL B+/Stable (Assigned)
Proposed Long-Term 35 CRISIL B+/Stable (Assigned)
Bank Loan Facility
The rating reflects NMCM's weak financial risk profile, marked by
a high gearing and a small net worth, modest scale of operations,
and product concentration in its revenue profile. These rating
weaknesses are partially offset by the benefits that NMCM derives
from its promoters' extensive experience in the coconut oil
business and its established relationship with its major
customers.
Outlook: Stable
CRISIL believes that NMCM will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' if the firm ramps up its
scale of operations and generates more-than-expected revenues,
resulting in improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case NMCM
registers lower-than-expected revenues and profitability, or if it
undertakes a substantially large, debt-funded capital expenditure
programme, resulting in deterioration in its financial risk
profile.
NMCM, incorporated in 2012, is involved in the extraction and sale
of coconut oil and coconut powder. NMCM is promoted by Mr. A S N
Muruhesh and his wife, Mrs.A.Maalaythi.
NMCM reported a provisional profit after tax of INR2 million on
net sales of INR267 million for 2011-12 (refers to financial year,
April 1 to March 31).
NOOR TOBACCO: CRISIL Rates INR60MM Cash Credit at 'B+'
------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facility of Noor Tobacco Enterprises.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL B+/Stable (Assigned)
The rating reflects NTE's below-average financial risk profile,
marked by a small net worth and high total outside liabilities to
tangible net worth ratio, and its modest scale of operations in
the highly fragmented tobacco industry. These rating weaknesses
are partially offset by the extensive experience of NTE's
promoters in the tobacco industry.
Outlook: Stable
CRISIL believes that NTE will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the firm's revenues and
profitability increase substantially, leading to an improvement in
its financial risk profile. Conversely, the outlook may be revised
to 'Negative' if NTE undertakes aggressive, debt-funded,
expansions, or if its revenues and profitability decline
substantially, leading to weakening of its financial risk profile.
Set up as a sole proprietorship by Mr. Noorullah Khan, NTE trades
in unmanufactured tobacco.
NTE, on a provisional basis, reported a profit after tax (PAT) of
INR3.2 million on net sales of INR363.4 million for 2012-13
(refers to financial year, April 1 to March 31); the firm had
reported a PAT of INR1.7 million on net sales of INR163 million
for 2011-12.
PRECISION ENG'G: CRISIL Assigns 'B-' Rating to INR110MM Loans
-------------------------------------------------------------
CRISIL has revoked the suspension of its ratings on the bank
facilities of Precision Engineering Corporation, and has assigned
its 'CRISIL B-/Stable/CRISIL A4' ratings to the bank facilities of
PEC. The ratings were previously 'Suspended' by CRISIL vide the
Rating Rationale dated March 30, 2013, since PEC had not provided
the information required for taking a rating view. PEC has now
shared the requisite information, thereby enabling CRISIL to
assign ratings to the firm's bank facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 70 CRISIL A4 (Assigned;
Suspension Revoked)
Cash Credit 110 CRISIL B-/Stable (Assigned;
Suspension Revoked)
Letter of Credit 20 CRISIL A4 (Assigned;
Suspension Revoked)
The ratings reflect PEC's modest scale of operations in an
intensely competitive capital goods and engineering sector,
susceptibility of its margins to volatility in input prices and
off-take by key customers, working capital intensive operations
and below-average financial risk profile marked by modest net
worth and high gearing. These rating weaknesses are partially
offset by the partners' extensive experience in the capital goods
and engineering sector.
Outlook: Stable
CRISIL believes that PEC will continue to benefit from its
partners' extensive experience in the capital goods and
engineering sector. The outlook may be revised to 'Positive' if
the firm records significant and sustained improvement in its
revenues and capital structure while maintaining its margins.
Conversely, the outlook may be revised to 'Negative' if there is
decline in its revenues or margins, or elongation of its working
capital cycle leading to pressure on its liquidity and weakening
of its financial risk profile.
Mr. H D Gupta setup Precision Engineering Corporation (PEC), as a
proprietorship concern in 1982, as an ancillary to Bhilai Steel
Plant and gradually added other customers. In 2010 it was
converted to a partnership after his son Mr. Vaibhav Gupta joined
the business. PEC manufactures heat exchanger coils used by boiler
in power plants. PEC has its manufacturing facility and office in
Bhilai, Chhattisgarh.
For 2012-13 (refers to financial year, April 1 to March 31), PEC
reported, on a provisional basis, a profit after tax (PAT) of
INR10.7 million on net sales of INR262.5 million against a PAT of
INR10.7 million on net sales of INR222.8 million in 2011-12.
SHUBHLAXMI CASTING: CRISIL Ups Ratings on INR191.3MM Loans to B+
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Shubhlaxmi Casting Private Limited (SCPL; part of the Agarwal
group) to 'CRISIL B+/Stable' from 'CRISIL B/Stable', while
reaffirming its rating on the company's short-term facilities at
'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 3 CRISIL A4 (Reaffirmed)
Cash Credit 140 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Letter of Credit 30 CRISIL A4 (Reaffirmed)
Proposed Long-Term 15 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
Term Loan 36.3 CRISIL B+/Stable(Upgraded
from 'CRISIL B/Stable')
The upgrade reflects the improvement in the Agarwal group's
liquidity, marked by comfortable cash accruals, estimated at INR60
million to INR65 million, against repayment obligations of less
than INR30 million, in 2013-14 (refers to financial year, April 1
to March 31). The upgrade also factors in the measures taken by
the group's management for meeting its debt repayment obligations
in a timely manner.
The ratings reflect the Agarwal group's modest financial risk
profile, marked by high gearing and weak debt protection metrics,
and its large working capital requirements. These rating
weaknesses are partially offset by the extensive experience of the
group's promoters in the steel industry, and the integrated nature
of its operations.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SCPL, Anjana Re-Rolling Pvt Ltd, Arjun
Alloys (AA), VS Multimetal Pvt Ltd, and Vivek Steelco Pvt Ltd.
This is because these entities, together referred to as the
Agarwal group, have the same promoters and management, and
significant intra-group transactions.
Outlook: Stable
CRISIL believes that the Agarwal group will maintain its moderate
business risk profile over the medium term, on the back of its
long track record in the steel industry. The outlook may be
revised to 'Positive' in case of a significant improvement in the
group's financial risk profile, most likely led by equity infusion
or a significant increase in profitability leading to higher
accretion to reserves. Conversely, the outlook may be revised to
'Negative' in case of a significant decline in the Agarwal group's
profitability or scale of operations, a further stretch in its
working capital cycle, or large, debt-funded capital expenditure,
leading to deterioration in its financial risk profile.
SCPL has induction furnace units at its manufacturing unit at
Changodar (Gujrat). The company is part of the Agarwal group,
which has been manufacturing various steel products since 1972.
Mr. Suresh B Agarwal is the chairman of the group. The Agarwal
group comprises various entities, such as SCPL, AA, ARMPL, VSMPL,
and VSPL.
SLK PROGRESSIVE: CRISIL Rates INR5MM Cash Credit at 'B+'
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank loan facilities of SLK Progressive Veneer Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5 CRISIL B+/Stable (Assigned)
Letter of Credit 45 CRISIL A4 (Assigned)
The ratings reflect SLK's small scale of operations in the
intensely competitive plywood manufacturing and timber trading
industries, small net worth constraining its overall financial
risk profile, and low capacity utilisation. These rating
weaknesses are partially offset by the benefits that SLK derives
from its promoters' extensive experience in the timber, plywood,
and veneer industries.
Outlook: Stable
CRISIL believes that SLK will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of significant
improvement in SLK's scale of operations along with improvement in
its financial risk profile, particularly in its liquidity, most
likely on account of prudent working capital management, infusion
of capital by its promoters, and better-than-expected accruals.
Conversely, the outlook may be revised to 'Negative' if the
company's financial risk profile, particularly its liquidity,
deteriorates, most likely because of large, debt-funded capital
expenditure, or significant deterioration in its working capital
requirements.
SLK was set up on May 11, 2007 by the Kolkata based Patel and
Kedia families. It is in the business of veneer manufacturing and
timber trading. Its veneer manufacturing unit commenced commercial
operations in 2009-10 (refers to financial year, April 1 to March
31).
SONA FOOD: CRISIL Assigns 'B' Ratings to INR60MM Loans
------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Sona Food Products.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 11.1 CRISIL B/Stable (Assigned)
Cash Credit 45.0 CRISIL B/Stable (Assigned)
Proposed Long-Term 3.9 CRISIL B/Stable (Assigned)
Bank Loan Facility
The rating reflects SFP's modest scale of operations in the highly
fragmented rice milling industry and weak financial risk profile
marked by low net worth and high gearing. These rating weaknesses
are partially offset by the benefits that the firm derives from
its promoters' extensive experience in the rice milling industry.
Outlook: Stable
CRISIL expects Sona Food Products will continue to benefit from
its promoters' extensive industry experience over the medium term.
The outlook may be revised to 'Positive' if the firm significantly
scales up its operations, while improving its capital structure
and working capital cycle. Conversely, the outlook may be revised
to 'Negative' if SFP's financial risk profile deteriorates,
because of sharp decline in profitability or revenues, a higher-
than-expected debt-funded capital expenditure, or deterioration in
its working capital cycle.
Established in 2007, Sona Food Products is engaged in the milling
and processing of paddy into rice, rice bran, broken rice and
husk. The firm commenced commercial operations in December 2008
and has its manufacturing unit in Nagpur. The day-to-day
operations are managed by the promoters, Mr. Vimal Zamtani and Mr.
Kishor Zamtani.
For 2011-12 (refers to financial year, April 1 to March 31), SFP
reported a profit after tax (PAT) of INR3.1 million on net sales
of INR167.5 million against a PAT of INR3.1 million on net sales
of INR143.8 million in 2010-11.
SREEKANTH PIPES: CRISIL Assigns 'B-' Ratings to INR50MM Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Sreekanth Pipes Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long-Term 30 CRISIL B-/Stable (Assigned)
Bank Loan Facility
Cash Credit 20 CRISIL B-/Stable (Assigned)
Letter of Credit 30 CRISIL A4 (Assigned)
The ratings reflect SPPL's weak financial risk profile, modest
scale of operations and, exposure to risks related to highly
fragmented industry marked by intense competition. These rating
weaknesses are partially offset by the extensive industry
experience of SPPL's promoter.
Outlook: Stable
CRISIL expects SPPL to maintain its stable business risk profile
over the medium term, backed by its promoter's extensive industry
experience and established relationships with its customers and
suppliers. The outlook may be revised to 'Positive' if the company
significantly expands its scale of operations along with an
improvement in operating profitability, resulting in higher than
expected cash accruals and also improves its liquidity position by
effectively managing its working capital needs. Conversely, the
outlook may be revised to 'Negative' if the company's scale of
operations reduces significantly thus impacting the cash accruals
adversely, or a deterioration in its liquidity position on account
of higher than expected working capital requirements or larger
than expected debt funded capital expenditure.
Set up in 2002 as a partnership firm, it was in 2007 that the firm
was converted into a private company, Sreekanth Pipes Private
Limited (SPPL). The company is promoted by Mr. SPY Reddy and
engages in manufacturing of PVC pipes and fittings. The company
has current capacity of around 7500 tpa.
SRI BALAJI: CRISIL Assigns 'B' Ratings to INR64MM Loans
-------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Sri Balaji Infrastructure.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 27.5 CRISIL B/Stable (Assigned)
Long-Term Loan 36.5 CRISIL B/Stable (Assigned)
The rating reflects SBI's below-average financial risk profile,
marked by high gearing and low net worth, and modest scale of
operations and intense competition in ready mix concrete (RMC)
industry. These rating weaknesses are partially offset by the
extensive experience of SBI's promoters in RMC and real estate
business.
Outlook: Stable
CRISIL believes that SBI will benefit over the medium term from
the extensive industry experience of its promoters. The outlook
may be revised to 'Positive' if the company ramps up its scale of
operations and generates more-than-expected revenues and
profitability, resulting in an improvement in its financial risk
profile. Conversely, the outlook may be revised to 'Negative' in
case of lower-than-expected revenues and profitability, or
undertakes substantially large, debt-funded capital expenditure
programme, resulting in deterioration in its financial risk
profile.
Set up in 2010, SBI is engaged in the manufacture of RMC used
predominantly in the construction industry. The company is
promoted by Mr.K.P.Naidu, Mr.Muniraj and their family members and
is based out of Bangalore in Karnataka.
SBI reported a provisional profit after tax (PAT) of INR39 million
on net sales of INR283 million for 2011-12 (refers to financial
year, April 1 to March 31), against a net loss of INR131 million
on net sales of INR103 million for 2010-11.
SWASTIKA STEEL: CRISIL Upgrades Rating on INR86MM Loans to 'B'
--------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Swastika Steel & Allied Products Pvt Ltd to 'CRISIL B/Stable' from
'CRISIL B-/Stable', while reaffirming the rating on the company's
short-term bank facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 41 CRISIL A4 (Reaffirmed)
Bill Discounting 120 CRISIL A4 (Reaffirmed)
Cash Credit 85 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Proposed Long-Term 1 CRISIL B/Stable (Upgraded
Bank Loan Facility from 'CRISIL B-/Stable')
The rating upgrade reflects improvement in SSAPPL's liquidity on
the back of infusion of around INR20 million of long-term funds
into the company by its promoters in 2012-13 (refers to financial
year, April 1 to March 31). The total unsecured loans from the
promoters stood at an estimated INR119.5 million as on March 31,
2013. Moreover, SSAPPL's zero term debt obligations further
support the liquidity of the company. CRISIL believes that the
liquidity will continue to be stretched owing to working capital
intensive operations.
The ratings also factor in SSAPPL's weak financial risk profile,
marked by an aggressive capital structure and average debt
protection metrics, and working-capital-intensive operations.
These rating weaknesses are partially offset by the extensive
experience of SSAPPL's promoters in the structured steel products
industry.
Outlook: Stable
CRISIL believes that SSAPPL's liquidity, though improved, will
remain weak because of the company's large working capital
requirements. The outlook may be revised to 'Positive' if SSAPPL
benefits from further capital infusion by its promoters, leading
to improvement in its capital structure and liquidity. Conversely,
the outlook may be revised to 'Negative' in case the company's
working capital cycle stretches, leading to weakening in its
liquidity.
SSAPPL was established as a partnership firm in 1959 by the Mota
and Sharda families with manufacturing facilities in Liluah (West
Bengal). Since 1992, Mr. Shiv Kumar Sharda and Mr. Sushil Kumar
Sharda have been managing the business. The entity was
incorporated as a private limited company on April 1, 2011. SSAPPL
manufactures, and trades in, structured steel products such as
mild steel angles, channels, and flats.
SSAPPL reported a profit after tax (PAT) of INR3.8 million on net
sales of INR930 million for 2011-12, against a PAT of INR5 million
on net sales of INR935 million for 2010-11.
TATA STEEL: FY2013 Results In Line with Moody's Ba3 CFR
-------------------------------------------------------
Moody's Investors Service says that Tata Steel's financial year
results ending March 2013 have come in broadly in line with
expectations, as the Indian operations continue to lack the power
to counter the drag of its European business.
Tata Steel reported an overall attributable loss of INR70.6
billion due to write-downs totaling INR83.6 billion primarily
related to its European assets acquired in 2007 as the Corus Group
plc. However, before impairment, the result was still lower than
the net profit of INR53.9 billion struck in FY2012.
"The ratings of Tata Steel (TSL, Ba3) and Tata Steel UK Holdings
(TSUKH, B3) both carry negative outlooks, which Moody's affirmed
as recently as April 17," says Alan Greene, a Moody's Vice
President, Senior Credit Officer.
"We were concerned that the adverse trend of the first nine months
of FY2012 would not be checked, but the headline results for Q4
FY2013 and thus for the whole of FY2013 were marginally better
than we expected," continues Greene, who is Lead Analyst for Tata
Steel.
Sales volumes for FY2013 were disclosed a few weeks ago; TSL India
sales rose by 12.8%, compared with FY2012, to 7.48 million ton
while TSUKH sales of 13.07 million ton were lower year on year,
reflecting dismal European demand and the extended shutdown of a
furnace in Port Talbot (Wales) to facilitate its rebuild and
upgrade.
As with the March quarter of 2012, Q4 FY2013 showed an improvement
over Q3 as inventories were run down as stock rebuilding occurred
in the distribution chain and at end users. In particular, TSUKH
benefited from selling over 200,000 tons more steel than it
produced in Q4 FY2013, while selling prices were firm in $ terms.
By contrast in India, unlike in 2012 when steel prices were moving
upwards in the first six months of the year, prices have been
softer in early 2013. Moody's believes that the combined negative
effects of a slowing economy, increasing domestic capacity and
surplus steel in the regional market have yet to peak.
"Nevertheless, the domestic operation benefited from steadily
increased volume as the Jamshedpur extension raised the steel
output run rate to 9 million ton per annum in Q4 FY2013," comments
Greene.
"So although the average selling price fell to INR44,400/ton in Q4
FY2013 from INR45,300/ton in Q3, EBITDA/ton improved to $300/ton
in Q4 FY2013 from $243/ton in Q3 due to the economies of scale,"
he adds.
TSUKH's loss remains substantial and the recognition of the
impairment suggests that there is no quick fix to the unit's woes.
Moody's had expected TSUKH to barely break even, and at EBITDA of
$11/ton, this came in marginally higher for the whole year, and
indeed up from a restated $6/ton in FY2012. The overall
consolidated EBITDA/ton achieved by Tata Steel fell below $100/ton
from $110/ton in FY2012. Moody's awaits final accounts for TSUKH
to see the extent of the balance sheet contraction, and the level
of working capital support provided by Tata Steel's subsidiaries
in Singapore.
While the working capital arrangements can be used to ensure
compliance with the cash coverage covenant on TSUKH's borrowings,
Moody's believes TSUKH needs to sustain EBITDA/ton of around $80
to comply with its covenants post-FY2015, when covenants move to a
leverage test. Meanwhile, the rate of amortization of its main
facility increases, with EUR240 million due in FY2014 and EUR330
million due in FY2015, and these repayments are likely to need
group support.
Reported group gross debt grew by INR61.8 billion to reach
INR660.7 billion at FYE2013, but net debt grew at a faster rate as
liquid funds declined by INR15.5 billion. Group EBITDA declined to
INR126.5 billion from INR135.3 billion in FY2012, resulting in
debt/EBITDA on an as-reported basis climbing to 5.2x for FY2013
from 4.4x in FY2012. For comparison, Moody's adjusted leverage
ratio was 4.3x for FY2012.
Despite the weaker operating cash flow, capex continued at a brisk
rate reaching INR154.7 billion in FY 2013. As a result, the parent
balance sheet, which had funded the Indian capex as well as the
incremental investments needed by the international subsidiaries,
was under pressure. The standalone reported debt service cover
ratio fell to 1.04x in September 2012, but recovered to 1.15x at
March 2013.
Moody's notes that apart from small disposals and merging of
assets, the main relief to the parent balance sheet has come since
March. Tata Steel has finalized non-recourse project financing of
INR228 billion for its part-built Odisha steelworks, the first
3mtpa phase of which is likely to start operating in FY2015.
Similarly, Tata Steel raised SGD300 million through Abja
Investment Ltd., to support its international businesses; this
particular bond carries the parent guarantee.
"With respect to our negative outlook, the annual results are
inconclusive for although the seasonally strong Q4 slightly
bettered our expectations, we see no letup in the adverse
conditions faced in Europe and we still see pricing pressure in
India," says Greene.
"It is likely to take a further quarter or two to see if market
conditions in Indian and Europe continue to constrain or reduce
EBITDA generation. This combined with the capex underway at
Odisha, could see Tata Steel generate credit metrics close to a
level that would indicate a rating downgrade - namely consolidated
debt/EBITDA exceeding a range of 5.0x to 6.0x and interest
coverage lower than the range of 2.0x to2.5x", Greene ends.
VIVEK STEELCO: CRISIL Raises Ratings on INR194.8MM Loans to 'B+'
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Vivek Steelco Private Limited (VSPL; part of the Agarwal group) to
'CRISIL B+/Stable' from 'CRISIL B/Stable', while reaffirming its
rating on the company's short-term facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL A4 (Reaffirmed)
Bill Discounting 10 CRISIL A4 (Reaffirmed)
Cash Credit 150 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Rupee Term Loan 44.8 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade reflects the improvement in the Agarwal group's
liquidity, marked by comfortable cash accruals, estimated at INR60
million to INR65 million, against repayment obligations of less
than INR30 million, in 2013-14 (refers to financial year, April 1
to March 31). The upgrade also factors in the measures taken by
the group's management for meeting its debt repayment obligations
in a timely manner.
The ratings reflect the Agarwal group's modest financial risk
profile, marked by high gearing and weak debt protection metrics,
and its large working capital requirements. These rating
weaknesses are partially offset by the extensive experience of the
group's promoters in the steel industry, and the integrated nature
of its operations.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of VSPL, Anjana Re-Rolling Pvt Ltd (ARPL),
Arjun Alloys (AA), Shubhlaxmi Casting Private Limited (SCPL), and
V. S. Multimetal Private Limited (VSMPL). This is because these
entities, together referred to as the Agarwal group, have the same
promoters and management, and significant intra-group
transactions.
Outlook: Stable
CRISIL believes that the Agarwal group will maintain its moderate
business risk profile over the medium term, on the back of its
long track record in the steel industry. The outlook may be
revised to 'Positive' in case of a significant improvement in the
group's financial risk profile, most likely led by equity infusion
or a significant increase in profitability leading to higher
accretion to reserves. Conversely, the outlook may be revised to
'Negative' in case of a significant decline in the Agarwal group's
profitability or scale of operations, a further stretch in its
working capital cycle, or large, debt-funded capital expenditure,
leading to deterioration in its financial risk profile.
VSPL was set up as Vivek Steel Industries in 1998; it was
reconstituted as a private limited company in 2008. It
manufactures various alloy steel, stainless steel, and mild steel
rolled products. Its rolling mill unit is at Changodar (Gujarat).
The company is part of the Agarwal group, which has been
manufacturing various steel products since 1972. Mr. Suresh B
Agarwal is the chairman of the group. The Agarwal group comprises
various entities, such as SCPL, AA, ARMPL, VSMPL, and VSPL.
* INDIA: 13 Cooperative Banks Declared Insolvent Last Fiscal
------------------------------------------------------------
The Hindu Business Line reports that as many as 13 cooperative
banks failed in 2012-13, resulting in credit insurance company
DICGC paying nearly INR160 crore to depositors.
Among the 13 cooperative banks, which failed to repay deposits to
customers, nine are from Maharashtra, two from Gujarat and one
each from Andhra Pradesh and Odisha, the report says.
Hindu Business Line relates that under the norms of Deposit
Insurance and Credit Guarantee Corporation (DICGC), a wholly-owned
subsidiary of the Reserve Bank of India (RBI), a maximum of INR1
lakh is paid to a depositor in case a bank goes insolvent.
According to the report, the Reserve Bank's credit insurance arm
has paid INR159.85 crore to depositors of 13 cooperative banks
which went bankrupt during April 2012 to March 2013, according to
DICGC.
During 2011-12, 18 cooperative banks had closed operations. As a
result DICGC paid INR277.31 crore to the depositors of these
banks, Hindu Business Line reports.
* Mortgage Jobs Sent to India by U.S. Banks
-------------------------------------------
Joel Schectman, writing for The Wall Street Journal, reported that
as U.S. banks struggle to maintain margins amid growing regulatory
demands, some of them have started to outsource part of the
onerous work involved in servicing mortgages and processing
foreclosures to India's major technology companies.
According to the WSJ report, the move is creating a new revenue
stream for such Indian outsourcing firms as Tata Consultancy
Services Ltd. and Wipro Ltd. at a time when many Western companies
have been pulling back on information-technology outsourcing. This
year, Indian outsourcing firms will bring in $316 million in
mortgage work, double the revenue from such work in 2009,
according to estimates from HfS Research, an outsourcing
consulting firm.
The banks aren't outsourcing all the work, the WSJ report noted.
Citibank, for example, says that most of its mortgage servicing is
still done in the U.S., though an Indian outsourcing company now
supplement some work as needed. But as the government rolls out
tougher rules for home loans, banks have added new financial-
verification hurdles, and many of them outsource vetting rather
than increasing their own staffs.
Indian outsourcing firms argue that using their services is also
beneficial because it increases the layers of scrutiny, WSJ
related. But U.S. regulators have faulted the banks for poor
supervision of third-party vendors. Consumer advocates also worry
that sending parts of the mortgage-servicing work to India will
make it harder to ensure that reviews are done properly. "I think
the lack of oversight so far away may be too much for these banks
to handle, considering how badly they've handled overseeing their
own staff," says Ira Rheingold, executive director of the National
Association of Consumer Advocates.
In the years after the 2008 global financial crisis, the U.S
government criticized every facet of the mortgage business, from
how financial institutions decided who got a loan to how borrowers
in default were treated, WSJ pointed out. Banks were also faulted
for sloppiness, which, the government said, contributed to the
wave of foreclosures that sank the American housing market.
=========
J A P A N
=========
EAST STREET: Moody's Revises Ratings on 18 Classes of SF CDOs
-------------------------------------------------------------
Moody's Japan K.K. downgraded the ratings on eight classes,
upgraded the ratings on four classes, and affirmed the ratings on
six classes of the notes of the East Street Referenced Linked
Notes series.
The affected ratings are as follows:
Deal Name: East Street Referenced Linked Notes 2002-1 Series 1
JPY23.0 billion Class X1 Notes, upgraded to Aa2 (sf);
Previously on October 13, 2011, downgraded to A1 (sf).
JPY10.0 billion Class A Notes, downgraded to B1 (sf);
Previously on October 13, 2011, downgraded to Ba2 (sf).
JPY6.0 billion Class B Notes, downgraded to Caa3 (sf).
Previously on October 13, 2011, downgraded to Caa1 (sf).
JPY5.0 billion Class C Notes, downgraded to C (sf);
Previously on October 13, 2011, downgraded to Caa3 (sf).
JPY1.5 billion Class D Notes, downgraded to C (sf);
Previously on March 4, 2011, downgraded to Caa3 (sf).
JPY0.5 billion Class E Notes, downgraded to C (sf);
Previously on March 4, 2011, downgraded to Caa3 (sf).
Deal Name: East Street Referenced Linked Notes 2002-1 Series 2
JPY15.0 billion Class X2 Notes, upgraded to Aaa (sf);
Previously on November 22, 2012, affirmed at Aa1 (sf).
JPY9.0 billion Class X1 Notes, upgraded to Aaa (sf);
Previously on November 22, 2012, upgraded to A1 (sf).
JPY4.875 billion Class A Notes, upgraded to Aa3 (sf);
Previously on November 22, 2012, affirmed at Ba2 (sf).
JPY4.5 billion Class B Notes, affirmed at Caa3 (sf);
Previously on November 22, 2012, downgraded to Caa3 (sf).
JPY2.025 billion Class C Notes, affirmed at C (sf);
Previously on November 22, 2012, affirmed at C (sf).
JPY0.6 billion Class D Notes, affirmed at C (sf);
Previously on November 22, 2012, affirmed at C (sf).
Deal Name: East Street Referenced Linked Note 2004-1
JPY18.75 billion Class X1 Notes, affirmed at A3 (sf);
Previously on November 22, 2012, affirmed at A3 (sf).
JPY7.5 billion Class A Notes, downgraded to Caa2 (sf);
Previously on November 22, 2012, affirmed at B3 (sf).
JPY3.75 billion Class B Notes, downgraded to Ca (sf);
Previously on November 22, 2012, affirmed at Caa3 (sf).
JPY3 billion Class C Notes, downgraded to C (sf);
Previously on November 22, 2012, affirmed at Caa3 (sf).
JPY1.5 billion Class D Notes, affirmed at C (sf);
Previously on November 22, 2012, downgraded to C (sf).
JPY1.5 billion Class E Notes, affirmed at C (sf);
Previously on November 22, 2012, downgraded to C (sf).
These transactions are synthetic structured finance collateralized
debt obligations (SF CDO), referencing ABS, RMBS, CMBS, and CDO
assets, more than 90% of which are Japanese assets.
Ratings Rationale:
The rating downgrade of eight classes is based on their increased
probabilities of loss due to the rating downgrade of the
referenced asset in the Japan CMBS sector and Moody's lower
recovery assumption on some of the referenced assets.
The rating upgrade of four classes reflects improved credit
quality, mainly due to the redemption of certain referenced
assets. This has particularly affected the rating of Class A in
2002-1 Series 2. Moody's upgraded the rating of this class by
eight notches to Aa3 (sf) from Ba2 (sf).
For this transaction, since the last rating action in November
2012, exposure to the asset in the Ba-B range has decreased, and
two Baa-rated assets were fully redeemed. Currently, Class A's
subordination is larger than the exposure to the referenced assets
rated at single A or lower. In November 2012, Class A's
subordination was smaller than the exposure to referenced assets
rated at Ba or lower.
The affirmation of six classes takes into account the credit
quality of the referenced pools and the subordination ratios. In
particular, the Caa3 (sf) and C (sf)-rated classes reflect the
losses they have incurred so far or those losses expected in the
near future.
Primary sources for the uncertainty in regard to Moody's
assumptions are the state of the economy in Japan, which will
impact the performance of the consumer receivables, and the state
of the commercial and residential property markets. They will in
turn, affect the ratings of the underlying referenced assets.
Moody's applied the Monte Carlo simulation framework within
CDOROMv2.8 to model the loss distribution for SF CDOs.
To determine the ratings, Moody's performed cash flow analysis on
the varying probability of default and the recovery assumptions of
the referenced assets under stressful conditions corresponding to
the target rating level. Therefore, Moody's analysis encompasses
the assessment of stress scenarios.
The principal methodology used in these ratings was "Moody's
Approach to Rating SF CDOs" published in May 2012.
JLOC XXXIII: Fitch Withdraws 'D' Rating on Class D TBIs
-------------------------------------------------------
Fitch Ratings has withdrawn the 'Dsf' rating on three Japanese
CMBS transactions as listed below. All of these transactions are
Japanese multi-borrower type CMBS securitisations.
JLOC XXXIII Trust
Class D TBIs 'Dsf'; rating withdrawn
JLOC 36, LLC
Class D notes 'Dsf'; rating withdrawn
JLOC 38, LLC
Class D notes 'Dsf'; rating withdrawn
Key Rating Drivers
The ratings are withdrawn as they are no longer considered by
Fitch to be relevant to the agency's coverage due to a lack of
investor interest. They were downgraded to 'Dsf' prior to this
rating withdrawal.
In each of the transactions, all other classes which ranked senior
to the defaulted classes have been fully redeemed.
Fitch will no longer provide ratings or analytical coverage for
these transactions.
* S&P Raises Ratings on 3 Japanese Synthetic CDO Tranches
---------------------------------------------------------
Standard & Poor's Ratings Services said that it has raised its
ratings on three Japanese synthetic collateralized debt obligation
(CDO) transactions, and removed the ratings from CreditWatch with
positive implications.
The upgrades reflect the tranches' synthetic rated
overcollateralization (SROC) levels as well as S&P's sensitivity
analyses in line with its criteria. S&P also reviewed the
counterparty risk in cases where the creditworthiness of a tranche
relies on a swap counterparty and/or collateral asset. S&P has
raised its ratings to the levels at which the SROC levels exceed
100% and meets its minimum cushion requirements as of this month's
review date.
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.
If applicable, the Standard & Poor's 17g-7 Disclosure Reports
included in this credit rating report are available at:
http://standardandpoorsdisclosure-17g7.com
RATINGS RAISED, REMOVED FROM CREDITWATCH POSITIVE
Corsair (Jersey) No. 2 Ltd.
Series 46 credit default swap
To From Amount
BB+srp (sf) BBsrp (sf)/Watch Pos JPY3.0 bil.
Signum Vanguard Ltd.
Class A secured fixed rate credit-linked loan series 2005-04
To From Amount
B (sf) B- (sf)/Watch Pos JPY4.0 bil.
Class A secured floating rate credit-linked loan series 2005-06
To From Amount
B+pNRi (sf) BpNRi (sf)/Watch Pos JPY3.0 bil.
====================
N E W Z E A L A N D
====================
FELTEX CARPETS: Forsyth Barr Opts Clients Into Case
---------------------------------------------------
Stuff.co.nz reports that sharebroking firm Forsyth Barr is "opting
in" some of its clients as claimants in a NZ$150 million
representative action in which it is one of the defendants.
The representative action is being taken by about 3,000 former
shareholders, excluding the Forsyth Barr clients, against the
former directors, promoters and sellers of shares in failed
carpetmaker Feltex Carpets, the report says.
Stuff.co.nz notes Forsyth Barr is one of the defendants and was a
co-manager of the share float in May-June 2004.
The deadline for claimants to opt into the action is May 30,
Stuff.co.nz relates citing a High Court ruling.
Any qualifying shareholder opted in by Forsyth Barr Custodians can
opt out by June 21, in which case they will be excluded from the
final claimant group to be filed with the High Court, according to
the report.
Stuff.co.nz says the shareholder claimants are being represented
by former shareholder Eric Houghton, who started the action in
February 2008.
According to the report, counsel for the claimants, Austin Forbes
QC, said Forsyth Barr wrote to its clients last week because in
many cases their investment in shares in Feltex in the public
float was first registered in the name of their nominee company,
Mr. Forsyth Barr Custodians. That meant representative claimant
Houghton had not been able to contact these potential claimants
directly to offer representation.
Stuff.co.nz relates that Mr. Forbes said Mr. Houghton's
solicitors, Wilson McKay, had been advised by the lawyers for
Forsyth Barr, which is the fifth defendant, that Forsyth Barr
intends to opt in any Forsyth Barr Custodian managed clients who
invested in the Feltex initial public offering in June 2004.
Mr. Houghton and 3000 other shareholders who bought shares in
Feltex in the 2004 public offering are claiming the prospectus was
misleading and contained untrue statements.
The first stage of the NZ$150 million class action trial against
the former directors and sellers of shares in the failed
carpetmaker is set to start in March next year, the report adds.
About Feltex Carpets
Headquartered in Auckland, New Zealand, and established more than
50 years ago, Feltex Carpets Limited -- http://www.feltex.com/--
is a manufacturer of superior-quality carpet. The Feltex
operation included a wool scouring plant, six spinning mills,
three tufted carpet mills, a woven carpet mill and offices in New
Zealand, Australia and the United States.
ANZ Bank placed the company in receivership on Sept. 22, 2006,
and named Colin Nicol, Peter Anderson and Kerryn Downey, of
McGrathNicol+Partners, as receivers and managers.
The TCR-AP reported on Oct. 4, 2006, that Godfrey Hirst acquired
Feltex as a going concern, including its assets and undertakings
in New Zealand, Australia, and the United States. Proceeds of
the sale will be used to ease the company's NZ$128-million debt
to ANZ Bank.
On Dec. 13, 2006, the High Court in Auckland ruled in favor of an
application by the Shareholders Association against Feltex
Carpets putting the carpet maker into liquidation. John Vague
was appointed as liquidator.
MEDIA COUNSEL: Director Faces Serious Fraud Office Charges
----------------------------------------------------------
The Serious Fraud Office (SFO) has laid Crimes Act charges against
Glenda Mary Wynyard (48) in the Auckland District Court.
SFO laid 19 charges of causing loss by deception and four charges
of dishonestly using a document.
Ms Wynyard is the former director and owner of The Media Counsel
(TMC), a media placement agency. TMC provided services in media
planning, public relations, consumer insights and event management
to clients.
TMC was placed into liquidation in April 2010. SFO commenced an
investigation after receiving a complaint from the Liquidators,
McDonald Vague in May 2012.
In late 2008, TMC entered into a debt factoring agreement with
Marac Finance (Marac). This agreement enabled TMC to obtain
advances from Marac. In November 2009, after losing its own
accreditation, TMC entered into an agreement with Aegis Media New
Zealand Limited (Aegis) to provide media buying services as TMC's
accredited agency.
SFO allege that Ms Wynyard directed approximately $2.4 million of
client invoice payments due to Aegis, to repay the Marac debt
factoring facility.
Simon McArley, SFO Acting Chief Executive says, "Financial crime
inevitably results in an increase in the cost of doing business.
SFO is working hard to remove these costs from our economy and
support a stronger and more confident business environment."
Ms. Wynyard has been remanded to reappear on June 19, 2013.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 28, 2010, BusinessDay said The Media Counsel was placed into
liquidation by managing director Glenda Wynyard. Ms. Wynyard
sent out an email to clients apologizing for "what is about to
erupt", saying financial difficulties plaguing the company over
the last year could not be overcome. "There are many reasons
that our business faces imminent closure but the most recent is
that the purchaser we had pinned our final hopes on offered to
take over our client and staff base for free, as at Jan. 25,
2010, leaving us with a financial hole that we will not be able
to pull ourselves out from," BusinessDay quoted Ms. Wynyard as
saying in the e-mail.
Media Counsel owes creditors nearly NZ$2.5 million, with
NZ$2.2 million of that unsecured and most likely lost, Fairfax NZ
News reported.
Based in Auckland, New Zealand, The Media Counsel is an
advertising media agency.
=================
S I N G A P O R E
=================
AMARU INC: Amends 2011 Annual Report
------------------------------------
Amaru, Inc., filed with the U.S. Securities and Exchange
Commission its annual report, as restated, disclosing a net loss
of $2.10 million on $4,462 of revenues for the year ended
Dec. 31, 2011, as compared with a net loss of $1.37 million on
$4,462 of total revenue as originally reported.
The Company's restated balance sheet at Dec. 31, 2011, showed
$2.67 million in total assets, $3.84 million in total liabilities
and a $1.16 million total stockholders' deficit. The Company
previously reported $2.86 million in total assets, $3.44 million
in total liabilities and a $578,709 total stockholders' deficit.
A copy of the Amended Form 10-K is available for free at:
http://is.gd/6gAtX5
About Amaru Inc.
Singapore-based Amaru, Inc., a Nevada corporation, is in the
business of broadband entertainment-on-demand, streaming via
computers, television sets, PDAs (Personal Digital Assistant) and
the provision of broadband services. The Company's business
includes channel and program sponsorship (advertising and
branding); online subscriptions, channel/portal development
(digital programming services); content aggregation and
syndication, broadband consulting services, broadband hosting and
streaming services and E-commerce.
After auditing the 2011 results, Wilson Morgan, LLP, in Irvine,
California, noted that the Company has sustained accumulated
losses from operations totalling $40.7 million at Dec. 31, 2011.
This condition and the Company's lack of significant revenue,
raise substantial doubt about the Company's ability to continue as
going concern, the auditors said.
Amaru reported a net loss from operations of $1.37 million in
2011, compared with a net loss from operations of $1.50 million in
2010. The Company's balance sheet at Sept. 30, 2012, showed $3.28
million in total assets, $3.08 million in total liabilities and
$195,261 in total stockholders' equity.
SINGAPORE FLYER: Enters Receivership; Business as Usual
-------------------------------------------------------
Straits Times reports that receivers and managers have been
appointed over the charged assets of Singapore Flyer Pte Ltd, the
company behind the iconic tourist attraction in the Marina area.
"We are confident that we will be able to identify investors with
the vision to manage, diversify and enhance the Singapore Flyer,
thereby securing its long-term future as a significant Singapore
attraction," the report quoted Tim Reid from recovery firm Ferrier
Hodgson.
Mr. Reid, the report notes, said Ferrier Hodgson will be calling
for expressions of interest shortly to commence the process. Mr.
Reid added that "it is business as usual at Singapore Flyer, and
we look forward to the support of the management and staff through
this process," the report discloses.
"We are committed to working closely with business partners and
tour operators to ensure smooth operations throughout the
receivership," said Mr Reid in a statement, the report adds.
The Singapore Flyer is the world's largest Giant Observation Wheel
and also one of Asia's biggest tourist attractions. The 165-m-
high wheel was launched in 2008.
====================
S O U T H K O R E A
====================
SSANGYONG ENG'G: Banks Suffer Critical Liquidity Problems
---------------------------------------------------------
The Korea Herald reports that following the financially distressed
STX Group woes, commercial banks are suffering from critical
liquidity problems at Ssangyong Engineering & Construction.
The Korea Herald relates that while creditors of Ssangyong E&C
have been pressured to bail out the ailing builder by financial
authorities, some of them say that it would be better for the
authorities to scrap the state effort to rescue the company,
highlighting extremely insolvent assets.
According to the report, some of the creditors argued that the
company should be liquidated through the process of management by
the court. They say too much in bailout funds are needed under the
creditors-led current debt rescheduling program, the report says.
Research analysts as well as bank officials estimated that some
KRW1.1 trillion ($1 billion) should be poured into Ssangyong E&C
in total for its management normalization, the report relays.
The Korea Herald notes that creditors have already provided the
company with KRW370 billion through their purchase of the
company's insolvent asset-backed commercial paper and support of
the debt-for-equity swap deal.
According to Korea Herald, Ssangyong E&C's net loss amounted to
some KRW400 billion last year, snowballing from KRW157 billion a
year ago. This constituted an erosion of its KRW149 billion
capital, indicating that it is unable to pay off its debt even if
it sells all of its assets.
Based in Seoul, Korea, Ssangyong Engineering & Construction Co.,
Ltd. -- http://www.ssyenc.com/eng/-- is involved in the areas of
construction and engineering.
Ssangyong E&C filed for debt-rescheduling program on Feb. 26,
2013, after it has suffered from capital erosion due to massive
losses for the second straight year in 2012 amid the lackluster
housing market, Yonhap News reported.
* Banks' Financials Worsen Over Rescue Funds to Troubled Firms
--------------------------------------------------------------
Yonhap News Agency reports that South Korean banks are feared to
see their financial health further worsen largely due to their
massive liquidity injection into financially troubled firms.
According to Yonhap, industry watchers said creditor banks have
supplied KRW1.09 trillion (US$970 million) to shipbuilding
conglomerate STX Group and KRW370 billion to troubled Ssangyong
Engineering & Construction Co. so far, but they may need further
massive liquidity injections to stay afloat.
Industry watchers estimated that around KRW2 trillion in
additional funds may be needed to help STX Corp., the holding
company of STX Group and its beleaguered affiliates.
Yonhap relates that experts said the sheer volume of liquidity
injection needed for STX Group is seen as staggering, given that
local banks' combined earnings amounted to KRW1.8 trillion in the
first quarter.
The news agency says creditors of Ssangyong E&C, led by Woori
Bank, are also reviewing whether to approve the start of a debt
workout scheme and agree on a liquidity injection worth around 800
billion won including a debt-to-equity swap. But they have yet to
narrow divided opinions with the launch of the debt restructuring
program requiring 75 percent consent from creditors, the report
adds.
===========
T A I W A N
===========
CONCORD SECURITIES: Fitch Affirms 'B' ST Foreign Currency IDR
-------------------------------------------------------------
Fitch Ratings has affirmed eight Taiwanese securities companies,
including Yuanta Securities Co., Ltd. (Yuanta), Jih Sun Securities
Corp., Ltd (Jih Sun), Oriental Securities Corporation (Oriental),
Concord Securities Corporation (Concord), Ta Chong Securities Co.,
Ltd. (Ta Chong), Ta Ching Securities Co., Ltd. (Ta Ching), Tachan
Securities Co., Ltd (Tachan), and Horizon Securities Co., Ltd.
(Horizon).
At the same time, the related support-driven ratings of Yuanta
Financial Holding Co., Ltd. (YFHC), Yuanta Commercial Bank Co.,
Ltd (YCB), Jih Sun Financial Holding Co., Ltd (JSFH) and Jih Sun
International Bank (JSIB) have been affirmed. The Outlooks are all
Stable.
The affirmation of the eight securities firms' ratings reflects
their ability to keep generally stable balance sheet strength
despite depressed trading volumes and heightened market
volatility. It also underlies Fitch's expectation of their ability
to maintain strong capitalisation and flexibility in liquidity.
The affirmation of YFHC's, YCB's, JSFH's and JSIB's IDRs and
National Ratings corresponds with the rating actions on their
groups' principal operating subsidiaries - Yuanta and Jih Sun.
Meanwhile, their up-to-date standalone performance in major credit
aspects is in line with Fitch's expectation since their last
review in early 2013 and hence their Viability Ratings are
affirmed.
Key Rating Drivers - IDRs and National Ratings
Franchise, earnings quality, financial flexibility and risk
management capability are the key factors accounting for rating
differences among eight securities firms. Smaller-sized firms
(including Concord, Ta Chong, Ta Ching, Tachan and Horizon) have
relatively weak and volatile earnings due to their limited
brokerage franchise and reliance on proprietary trading for
profits. This together with their higher concentration risks in
stock and bond investments and repo funding constrains them to
non-investment grade ratings.
Among smaller-sized companies, Concord is rated higher at 'BB+/A-
(twn)', reflecting its relatively good franchise value among 'BB'
rated local peers, likely improving profitability, albeit below
average capital and liquidity position due to reliance on short-
term repos to fund its larger bond investments. Meanwhile,
Horizon's is rated lower at 'BBB(twn)', taking into account its
relatively weak and volatile earnings, higher market risk appetite
and notably improved financial flexibility after large property
sales in 2012.
On the other hand, Yuanta is rated at 'BBB+', the highest among
domestic peers, reflecting its dominant market position in
Taiwan's securities market, resilient flow-based earnings through
the cycle and strong financial flexibility. Jih Sun is rated at
'BBB-', as a result of its linkage with its weaker bank affiliate
JSIB as well as its own well established brokerage market
position, generally consistent profitability and sound balance
sheet strength. Meanwhile, Oriental (rated at 'BBB-') demonstrates
consistently superior capital strength and fair earning volatility
despite its trading-focused business model.
Rating Sensitivities - IDRs and National Ratings
Fitch views that rating upside potential of the affirmed entities
is limited, unless the companies can demonstrate a sustained
improvement in earnings quality, aided by the benefits of a larger
and more diversified franchise. Conversely, any sharp increase in
risk appetite and/or unexpected large trading losses resulting in
material deterioration in capital may trigger a negative rating
action. Moreover, if companies, particularly Concord, further
increase their short-term funding for long-dated assets and become
more vulnerable relative to peers to dislocation in the market and
liquidity risks, their ratings could face downward pressure.
The rating actions are as follows:
Yuanta:
Long-Term Foreign Currency Issuer Default Rating (IDR) affirmed at
'BBB+'; Stable Outlook
Short-Term IDR: affirmed at 'F2'
National Long-Term rating: affirmed at 'AA-(twn)'; Stable Outlook
National Short-Term rating: affirmed at 'F1+(twn)'
YCB:
Long-Term IDR: affirmed at 'BBB+'; Stable Outlook
Short-Term IDR: affirmed at 'F2'
National Long-Term rating: affirmed at 'AA-(twn)'; Stable Outlook
National Short-Term rating: affirmed at 'F1+(twn)'
Viability Rating: affirmed at 'bb+'
Support Rating: affirmed at '2'
YFHC:
Long-Term IDR: affirmed at 'BBB+'; Stable Outlook
Short-Term IDR; affirmed at 'F2'
National Long-Term rating: affirmed at 'AA-(twn)'; Stable Outlook
National Short-Term rating; affirmed at 'F1+(twn)'
Senior unsecured debt: affirmed at 'AA-(twn)'
Jih Sun
Long-Term IDR affirmed at 'BBB-'; Outlook Stable
Short-Term IDR affirmed at'F3'
National Long-Term Rating affirmed at 'A(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F1(twn)'
JSFH:
Long-Term IDR affirmed at 'BB+'; Outlook Stable
Short-Term IDR affirmed at 'B'
National Long-Term Rating affirmed at 'A-(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F2(twn)'
JSIB:
Long-Term IDR affirmed at 'BB+'; Outlook Stable
Short-Term IDR affirmed at 'B'
National Long-Term Rating affirmed at 'A-(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F2(twn)'
Viability Rating affirmed at 'bb-'
Subordinated debt rating affirmed at 'BBB+(twn)'
Oriental:
Long-Term Foreign Currency IDR affirmed at 'BBB-'; Outlook Stable
Short-Term Foreign currency IDR affirmed at 'F3'
National Long-Term rating affirmed at 'A(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F1(twn)'
Concord:
Long-Term Foreign Currency IDR affirmed at 'BB+'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'B'
National Long-Term rating affirmed at 'A-(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
Horizon:
National Long-Term rating affirmed at 'BBB(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F3(twn)'
Ta Chong:
National Long-Term rating affirmed at 'BBB+(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
Ta Ching:
National Long-Term rating affirmed at 'BBB+(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
Tachan:
Long-Term Foreign Currency IDR affirmed at 'BB'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'B'
National Long-Term rating affirmed at 'BBB+(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
JIH SUN: Fitch Affirms 'B' Short-Term Issuer Default Rating
-----------------------------------------------------------
Fitch Ratings has affirmed eight Taiwanese securities companies,
including Yuanta Securities Co., Ltd. (Yuanta), Jih Sun Securities
Corp., Ltd (Jih Sun), Oriental Securities Corporation (Oriental),
Concord Securities Corporation (Concord), Ta Chong Securities Co.,
Ltd. (Ta Chong), Ta Ching Securities Co., Ltd. (Ta Ching), Tachan
Securities Co., Ltd (Tachan), and Horizon Securities Co., Ltd.
(Horizon).
At the same time, the related support-driven ratings of Yuanta
Financial Holding Co., Ltd. (YFHC), Yuanta Commercial Bank Co.,
Ltd (YCB), Jih Sun Financial Holding Co., Ltd (JSFH) and Jih Sun
International Bank (JSIB) have been affirmed. The Outlooks are all
Stable.
The affirmation of the eight securities firms' ratings reflects
their ability to keep generally stable balance sheet strength
despite depressed trading volumes and heightened market
volatility. It also underlies Fitch's expectation of their ability
to maintain strong capitalisation and flexibility in liquidity.
The affirmation of YFHC's, YCB's, JSFH's and JSIB's IDRs and
National Ratings corresponds with the rating actions on their
groups' principal operating subsidiaries - Yuanta and Jih Sun.
Meanwhile, their up-to-date standalone performance in major credit
aspects is in line with Fitch's expectation since their last
review in early 2013 and hence their Viability Ratings are
affirmed.
Key Rating Drivers - IDRs and National Ratings
Franchise, earnings quality, financial flexibility and risk
management capability are the key factors accounting for rating
differences among eight securities firms. Smaller-sized firms
(including Concord, Ta Chong, Ta Ching, Tachan and Horizon) have
relatively weak and volatile earnings due to their limited
brokerage franchise and reliance on proprietary trading for
profits. This together with their higher concentration risks in
stock and bond investments and repo funding constrains them to
non-investment grade ratings.
Among smaller-sized companies, Concord is rated higher at 'BB+/A-
(twn)', reflecting its relatively good franchise value among 'BB'
rated local peers, likely improving profitability, albeit below
average capital and liquidity position due to reliance on short-
term repos to fund its larger bond investments. Meanwhile,
Horizon's is rated lower at 'BBB(twn)', taking into account its
relatively weak and volatile earnings, higher market risk appetite
and notably improved financial flexibility after large property
sales in 2012.
On the other hand, Yuanta is rated at 'BBB+', the highest among
domestic peers, reflecting its dominant market position in
Taiwan's securities market, resilient flow-based earnings through
the cycle and strong financial flexibility. Jih Sun is rated at
'BBB-', as a result of its linkage with its weaker bank affiliate
JSIB as well as its own well established brokerage market
position, generally consistent profitability and sound balance
sheet strength. Meanwhile, Oriental (rated at 'BBB-') demonstrates
consistently superior capital strength and fair earning volatility
despite its trading-focused business model.
Rating Sensitivities - IDRs and National Ratings
Fitch views that rating upside potential of the affirmed entities
is limited, unless the companies can demonstrate a sustained
improvement in earnings quality, aided by the benefits of a larger
and more diversified franchise. Conversely, any sharp increase in
risk appetite and/or unexpected large trading losses resulting in
material deterioration in capital may trigger a negative rating
action. Moreover, if companies, particularly Concord, further
increase their short-term funding for long-dated assets and become
more vulnerable relative to peers to dislocation in the market and
liquidity risks, their ratings could face downward pressure.
The rating actions are as follows:
Yuanta:
Long-Term Foreign Currency Issuer Default Rating (IDR) affirmed at
'BBB+'; Stable Outlook
Short-Term IDR: affirmed at 'F2'
National Long-Term rating: affirmed at 'AA-(twn)'; Stable Outlook
National Short-Term rating: affirmed at 'F1+(twn)'
YCB:
Long-Term IDR: affirmed at 'BBB+'; Stable Outlook
Short-Term IDR: affirmed at 'F2'
National Long-Term rating: affirmed at 'AA-(twn)'; Stable Outlook
National Short-Term rating: affirmed at 'F1+(twn)'
Viability Rating: affirmed at 'bb+'
Support Rating: affirmed at '2'
YFHC:
Long-Term IDR: affirmed at 'BBB+'; Stable Outlook
Short-Term IDR; affirmed at 'F2'
National Long-Term rating: affirmed at 'AA-(twn)'; Stable Outlook
National Short-Term rating; affirmed at 'F1+(twn)'
Senior unsecured debt: affirmed at 'AA-(twn)'
Jih Sun
Long-Term IDR affirmed at 'BBB-'; Outlook Stable
Short-Term IDR affirmed at'F3'
National Long-Term Rating affirmed at 'A(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F1(twn)'
JSFH:
Long-Term IDR affirmed at 'BB+'; Outlook Stable
Short-Term IDR affirmed at 'B'
National Long-Term Rating affirmed at 'A-(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F2(twn)'
JSIB:
Long-Term IDR affirmed at 'BB+'; Outlook Stable
Short-Term IDR affirmed at 'B'
National Long-Term Rating affirmed at 'A-(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F2(twn)'
Viability Rating affirmed at 'bb-'
Subordinated debt rating affirmed at 'BBB+(twn)'
Oriental:
Long-Term Foreign Currency IDR affirmed at 'BBB-'; Outlook Stable
Short-Term Foreign currency IDR affirmed at 'F3'
National Long-Term rating affirmed at 'A(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F1(twn)'
Concord:
Long-Term Foreign Currency IDR affirmed at 'BB+'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'B'
National Long-Term rating affirmed at 'A-(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
Horizon:
National Long-Term rating affirmed at 'BBB(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F3(twn)'
Ta Chong:
National Long-Term rating affirmed at 'BBB+(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
Ta Ching:
National Long-Term rating affirmed at 'BBB+(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
Tachan:
Long-Term Foreign Currency IDR affirmed at 'BB'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'B'
National Long-Term rating affirmed at 'BBB+(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
JIH SUN INT'L: Fitch Affirms 'B' Short-Term Issuer Default Rating
-----------------------------------------------------------------
Fitch Ratings has affirmed eight Taiwanese securities companies,
including Yuanta Securities Co., Ltd. (Yuanta), Jih Sun Securities
Corp., Ltd (Jih Sun), Oriental Securities Corporation (Oriental),
Concord Securities Corporation (Concord), Ta Chong Securities Co.,
Ltd. (Ta Chong), Ta Ching Securities Co., Ltd. (Ta Ching), Tachan
Securities Co., Ltd (Tachan), and Horizon Securities Co., Ltd.
(Horizon).
At the same time, the related support-driven ratings of Yuanta
Financial Holding Co., Ltd. (YFHC), Yuanta Commercial Bank Co.,
Ltd (YCB), Jih Sun Financial Holding Co., Ltd (JSFH) and Jih Sun
International Bank (JSIB) have been affirmed. The Outlooks are all
Stable.
The affirmation of the eight securities firms' ratings reflects
their ability to keep generally stable balance sheet strength
despite depressed trading volumes and heightened market
volatility. It also underlies Fitch's expectation of their ability
to maintain strong capitalisation and flexibility in liquidity.
The affirmation of YFHC's, YCB's, JSFH's and JSIB's IDRs and
National Ratings corresponds with the rating actions on their
groups' principal operating subsidiaries - Yuanta and Jih Sun.
Meanwhile, their up-to-date standalone performance in major credit
aspects is in line with Fitch's expectation since their last
review in early 2013 and hence their Viability Ratings are
affirmed.
Key Rating Drivers - IDRs and National Ratings
Franchise, earnings quality, financial flexibility and risk
management capability are the key factors accounting for rating
differences among eight securities firms. Smaller-sized firms
(including Concord, Ta Chong, Ta Ching, Tachan and Horizon) have
relatively weak and volatile earnings due to their limited
brokerage franchise and reliance on proprietary trading for
profits. This together with their higher concentration risks in
stock and bond investments and repo funding constrains them to
non-investment grade ratings.
Among smaller-sized companies, Concord is rated higher at 'BB+/A-
(twn)', reflecting its relatively good franchise value among 'BB'
rated local peers, likely improving profitability, albeit below
average capital and liquidity position due to reliance on short-
term repos to fund its larger bond investments. Meanwhile,
Horizon's is rated lower at 'BBB(twn)', taking into account its
relatively weak and volatile earnings, higher market risk appetite
and notably improved financial flexibility after large property
sales in 2012.
On the other hand, Yuanta is rated at 'BBB+', the highest among
domestic peers, reflecting its dominant market position in
Taiwan's securities market, resilient flow-based earnings through
the cycle and strong financial flexibility. Jih Sun is rated at
'BBB-', as a result of its linkage with its weaker bank affiliate
JSIB as well as its own well established brokerage market
position, generally consistent profitability and sound balance
sheet strength. Meanwhile, Oriental (rated at 'BBB-') demonstrates
consistently superior capital strength and fair earning volatility
despite its trading-focused business model.
Rating Sensitivities - IDRs and National Ratings
Fitch views that rating upside potential of the affirmed entities
is limited, unless the companies can demonstrate a sustained
improvement in earnings quality, aided by the benefits of a larger
and more diversified franchise. Conversely, any sharp increase in
risk appetite and/or unexpected large trading losses resulting in
material deterioration in capital may trigger a negative rating
action. Moreover, if companies, particularly Concord, further
increase their short-term funding for long-dated assets and become
more vulnerable relative to peers to dislocation in the market and
liquidity risks, their ratings could face downward pressure.
The rating actions are as follows:
Yuanta:
Long-Term Foreign Currency Issuer Default Rating (IDR) affirmed at
'BBB+'; Stable Outlook
Short-Term IDR: affirmed at 'F2'
National Long-Term rating: affirmed at 'AA-(twn)'; Stable Outlook
National Short-Term rating: affirmed at 'F1+(twn)'
YCB:
Long-Term IDR: affirmed at 'BBB+'; Stable Outlook
Short-Term IDR: affirmed at 'F2'
National Long-Term rating: affirmed at 'AA-(twn)'; Stable Outlook
National Short-Term rating: affirmed at 'F1+(twn)'
Viability Rating: affirmed at 'bb+'
Support Rating: affirmed at '2'
YFHC:
Long-Term IDR: affirmed at 'BBB+'; Stable Outlook
Short-Term IDR; affirmed at 'F2'
National Long-Term rating: affirmed at 'AA-(twn)'; Stable Outlook
National Short-Term rating; affirmed at 'F1+(twn)'
Senior unsecured debt: affirmed at 'AA-(twn)'
Jih Sun
Long-Term IDR affirmed at 'BBB-'; Outlook Stable
Short-Term IDR affirmed at'F3'
National Long-Term Rating affirmed at 'A(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F1(twn)'
JSFH:
Long-Term IDR affirmed at 'BB+'; Outlook Stable
Short-Term IDR affirmed at 'B'
National Long-Term Rating affirmed at 'A-(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F2(twn)'
JSIB:
Long-Term IDR affirmed at 'BB+'; Outlook Stable
Short-Term IDR affirmed at 'B'
National Long-Term Rating affirmed at 'A-(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F2(twn)'
Viability Rating affirmed at 'bb-'
Subordinated debt rating affirmed at 'BBB+(twn)'
Oriental:
Long-Term Foreign Currency IDR affirmed at 'BBB-'; Outlook Stable
Short-Term Foreign currency IDR affirmed at 'F3'
National Long-Term rating affirmed at 'A(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F1(twn)'
Concord:
Long-Term Foreign Currency IDR affirmed at 'BB+'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'B'
National Long-Term rating affirmed at 'A-(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
Horizon:
National Long-Term rating affirmed at 'BBB(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F3(twn)'
Ta Chong:
National Long-Term rating affirmed at 'BBB+(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
Ta Ching:
National Long-Term rating affirmed at 'BBB+(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
Tachan:
Long-Term Foreign Currency IDR affirmed at 'BB'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'B'
National Long-Term rating affirmed at 'BBB+(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
TACHAN SECURITIES: Fitch Affirms 'BB' LT Foreign Currency IDR
-------------------------------------------------------------
Fitch Ratings has affirmed eight Taiwanese securities companies,
including Yuanta Securities Co., Ltd. (Yuanta), Jih Sun Securities
Corp., Ltd (Jih Sun), Oriental Securities Corporation (Oriental),
Concord Securities Corporation (Concord), Ta Chong Securities Co.,
Ltd. (Ta Chong), Ta Ching Securities Co., Ltd. (Ta Ching), Tachan
Securities Co., Ltd (Tachan), and Horizon Securities Co., Ltd.
(Horizon).
At the same time, the related support-driven ratings of Yuanta
Financial Holding Co., Ltd. (YFHC), Yuanta Commercial Bank Co.,
Ltd (YCB), Jih Sun Financial Holding Co., Ltd (JSFH) and Jih Sun
International Bank (JSIB) have been affirmed. The Outlooks are all
Stable.
The affirmation of the eight securities firms' ratings reflects
their ability to keep generally stable balance sheet strength
despite depressed trading volumes and heightened market
volatility. It also underlies Fitch's expectation of their ability
to maintain strong capitalisation and flexibility in liquidity.
The affirmation of YFHC's, YCB's, JSFH's and JSIB's IDRs and
National Ratings corresponds with the rating actions on their
groups' principal operating subsidiaries - Yuanta and Jih Sun.
Meanwhile, their up-to-date standalone performance in major credit
aspects is in line with Fitch's expectation since their last
review in early 2013 and hence their Viability Ratings are
affirmed.
Key Rating Drivers - IDRs and National Ratings
Franchise, earnings quality, financial flexibility and risk
management capability are the key factors accounting for rating
differences among eight securities firms. Smaller-sized firms
(including Concord, Ta Chong, Ta Ching, Tachan and Horizon) have
relatively weak and volatile earnings due to their limited
brokerage franchise and reliance on proprietary trading for
profits. This together with their higher concentration risks in
stock and bond investments and repo funding constrains them to
non-investment grade ratings.
Among smaller-sized companies, Concord is rated higher at 'BB+/A-
(twn)', reflecting its relatively good franchise value among 'BB'
rated local peers, likely improving profitability, albeit below
average capital and liquidity position due to reliance on short-
term repos to fund its larger bond investments. Meanwhile,
Horizon's is rated lower at 'BBB(twn)', taking into account its
relatively weak and volatile earnings, higher market risk appetite
and notably improved financial flexibility after large property
sales in 2012.
On the other hand, Yuanta is rated at 'BBB+', the highest among
domestic peers, reflecting its dominant market position in
Taiwan's securities market, resilient flow-based earnings through
the cycle and strong financial flexibility. Jih Sun is rated at
'BBB-', as a result of its linkage with its weaker bank affiliate
JSIB as well as its own well established brokerage market
position, generally consistent profitability and sound balance
sheet strength. Meanwhile, Oriental (rated at 'BBB-') demonstrates
consistently superior capital strength and fair earning volatility
despite its trading-focused business model.
Rating Sensitivities - IDRs and National Ratings
Fitch views that rating upside potential of the affirmed entities
is limited, unless the companies can demonstrate a sustained
improvement in earnings quality, aided by the benefits of a larger
and more diversified franchise. Conversely, any sharp increase in
risk appetite and/or unexpected large trading losses resulting in
material deterioration in capital may trigger a negative rating
action. Moreover, if companies, particularly Concord, further
increase their short-term funding for long-dated assets and become
more vulnerable relative to peers to dislocation in the market and
liquidity risks, their ratings could face downward pressure.
The rating actions are as follows:
Yuanta:
Long-Term Foreign Currency Issuer Default Rating (IDR) affirmed at
'BBB+'; Stable Outlook
Short-Term IDR: affirmed at 'F2'
National Long-Term rating: affirmed at 'AA-(twn)'; Stable Outlook
National Short-Term rating: affirmed at 'F1+(twn)'
YCB:
Long-Term IDR: affirmed at 'BBB+'; Stable Outlook
Short-Term IDR: affirmed at 'F2'
National Long-Term rating: affirmed at 'AA-(twn)'; Stable Outlook
National Short-Term rating: affirmed at 'F1+(twn)'
Viability Rating: affirmed at 'bb+'
Support Rating: affirmed at '2'
YFHC:
Long-Term IDR: affirmed at 'BBB+'; Stable Outlook
Short-Term IDR; affirmed at 'F2'
National Long-Term rating: affirmed at 'AA-(twn)'; Stable Outlook
National Short-Term rating; affirmed at 'F1+(twn)'
Senior unsecured debt: affirmed at 'AA-(twn)'
Jih Sun
Long-Term IDR affirmed at 'BBB-'; Outlook Stable
Short-Term IDR affirmed at'F3'
National Long-Term Rating affirmed at 'A(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F1(twn)'
JSFH:
Long-Term IDR affirmed at 'BB+'; Outlook Stable
Short-Term IDR affirmed at 'B'
National Long-Term Rating affirmed at 'A-(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F2(twn)'
JSIB:
Long-Term IDR affirmed at 'BB+'; Outlook Stable
Short-Term IDR affirmed at 'B'
National Long-Term Rating affirmed at 'A-(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F2(twn)'
Viability Rating affirmed at 'bb-'
Subordinated debt rating affirmed at 'BBB+(twn)'
Oriental:
Long-Term Foreign Currency IDR affirmed at 'BBB-'; Outlook Stable
Short-Term Foreign currency IDR affirmed at 'F3'
National Long-Term rating affirmed at 'A(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F1(twn)'
Concord:
Long-Term Foreign Currency IDR affirmed at 'BB+'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'B'
National Long-Term rating affirmed at 'A-(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
Horizon:
National Long-Term rating affirmed at 'BBB(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F3(twn)'
Ta Chong:
National Long-Term rating affirmed at 'BBB+(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
Ta Ching:
National Long-Term rating affirmed at 'BBB+(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
Tachan:
Long-Term Foreign Currency IDR affirmed at 'BB'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'B'
National Long-Term rating affirmed at 'BBB+(twn)'; Outlook Stable
National Short-Term rating affirmed at 'F2(twn)'
*********
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., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, Frauline S. Abangan,
and Peter A. Chapman, Editors.
Copyright 2013. 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$775 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 215-945-7000 or Nina Novak at 202-241-8200.
*** End of Transmission ***