TCRAP_Public/130604.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

             Tuesday, June 4, 2013, Vol. 16, No. 109


                            Headlines


A U S T R A L I A

AUSTRALIAN CAPITAL: Investors File Claim Against Trust Company
BARMINCO HOLDING: S&P Assigns 'B-' CCR; Outlook Stable
HOYTS GROUP: Moody's Assigns 'B2' Corp Family Rating
IPSWICH GOLF: 116-Year Old Golf Course Up for Sale


B A N G L A D E S H

BANGLADESH: S&P Affirms 'BB-' LT Sovereign Rating; Outlook Stable


C H I N A

CHINA FISHERY: S&P Affirms 'B+' CCR; Outlook Negative
SHIMAO PROPERTY: S&P Raises CCR to 'BB'; Outlook Stable


H O N G  K O N G

* Moody Reviews 5 HongKong Banks' Subdebt Ratings for Downgrade


I N D I A

BANSAL SEEDS: CARE Assigns 'BB' Rating to INR12.50cr LT Loan
DOSA SAVA: CARE Rates INR3.41cr LT Loan at 'CARE B+'
GREATSHINE HOLDINGS: CARE Rates INR8.25cr LT Loan at 'CARE BB+'
ISHAN SNAX: CARE Assigns 'B+' Rating to INR9.30cr LT Loan
LAVASA CORPORATION: CARE Revises Rating on INR250cr Loan From 'C'

MARS PLYWOOD: CARE Assigns 'C' Rating to INR10.60cr LT Loan
MODERN FORGINGS: CARE Assigns 'C' Rating to INR14.09cr Loan
NIAGARA METALS: CARE Assigns 'B' Rating to INR11.46cr LT Loan
PARASRAM MANNULAL: CARE Rates INR5.12cr LT Loan at 'CARE B'
PRAG BOSIMI: CARE Assigns 'B' Rating to INR9cr LT Loan

SARASWATI ASSOCIATES: CARE Places 'B' Rating on INR3.95cr Loan
SHREE KRISHNA: CARE Rates INR8.69cr LT Loan at 'CARE B'
VEDANT STARCH: CARE Rates INR10.10cr LT Loan at 'CARE B+'
* Moody's Reviews for Downgrade Subdebt Ratings on 11 India Banks


N E W  Z E A L A N D

COOK ISLANDS: S&P Affirms 'B+' ICR; Outlook Stable
LOMBARD FINANCE: Sir Douglas Graham May Give Up Knighthood
MAINZEAL PROPERTY: Liquidators Want to Control Assets


P H I L I P P I N E S

BAYAN TELECOM: Globe Seeks to Convert Debt Into Shares
RURAL BANK OF NAVAL: Placed under PDIC Receivership
* Moody's Reviews for Downgrade 2 Phil. Banks' Subdebt Ratings


X X X X X X X X

* Norton Rose Combines With Fulbright & Jaworski LLP
* BOND PRICING: For the Week May 27 to May 31, 2013


                            - - - - -


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A U S T R A L I A
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AUSTRALIAN CAPITAL: Investors File Claim Against Trust Company
--------------------------------------------------------------
Class action law firm Slater & Gordon has issued proceedings in
the Federal Court against The Trust Company (Nominees) Limited, on
behalf of an estimated 1,800 Australian Capital Reserve Limited
(ACR) investors.

Slater & Gordon Practice Group Leader, Ben Whitwell, said those
investors were owed more than AUD65 million in damages and
interest, after they were left out in the cold following the
company's collapse in 2007.

"Most of these people were mum and dad and other small investors
who lost their income and retirement nest eggs," he said.

"To date, ACR investors have only recovered approximately 50 per
cent of the money they lost.

"We have now commenced proceedings on behalf of those who invested
after 17 November 2005 to recover the rest of what they're owed,"
Mr. Whitwell said.

Mr. Whitwell said Slater & Gordon had formed the view that The
Trust Company (Nominees) Limited had ultimately failed to
safeguard the interests of those investors.

"We believe ACR's trustee failed to exercise reasonable diligence
and their actions, including failing to ascertain whether ACR had
sufficient property to repay the amounts investors lent to it when
they became due, eventually led to the losses suffered by these
investors.

"We believe the everyday Australians who invested their savings
and relied on this company and its trustees to conduct themselves
in line with their statutory obligations are entitled to recover
what they are owed," Mr. Whitwell said.

Lead plaintiffs George and Ann Camilleri invested $510,000 in the
company and were completely devastated when the company collapsed.

"This was our life savings and was supposed to be for our
retirement," Mr. Camilleri said.

"Now my wife is unable to retire because we fear that we simply
can't afford it.

"We did our research and we thought that our money would be safe.

"This has been enormously stressful when we should have been
looking forward to a quieter, less stressful time of life.

"We hope the class action will help us get our money back,"
Mr. Camilleri said.

                        About Australian Capital

Australian Capital Reserve Limited was an investment group based
in North Sydney New South Wales, Australia.

ACR was placed in voluntary administration in late May 2007 amid
fears that 7,000 noteholders could lose substantial amounts of
money.  Reportedly, ACR has been running out of cash with less
than AUD10 million left at the end of 2006.

PricewaterhouseCoopers serves as the group's administrators.


BARMINCO HOLDING: S&P Assigns 'B-' CCR; Outlook Stable
------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'B-' corporate credit rating to Australia-based contract miner
Barminco Holdings Pty Ltd.  The outlook on the rating is stable.
At the same time, S&P has assigned a 'B+' rating to Barminco's
senior secured revolving credit facility with a recovery rating of
'1', and a 'B-' rating to its unsecured notes with a recovery
rating of '4'.

"The 'B-' issuer credit rating on Barminco Holdings Pty Ltd.
reflects our view of the company's "highly leveraged" financial
risk profile and "weak" business risk profile," Standard & Poor's
credit analyst Graeme Ferguson said.  "Barminco's financial risk
profile is a constraint on the ratings and reflects the company's
highly leveraged capital structure and very aggressive financial
policies.  Following Barminco's recent recapitalization, we
estimate pro-forma fully adjusted debt-to-EBITDA to be above 5x,"

"Based on our criteria, we treat the redeemable preference shares
(RPS) as debt, despite their payment-in-kind feature.
Accordingly, we add the preference shares, accruing at 14% per
year, to total debt, but do not impute a cash interest expense for
our liquidity or cash flow assessment.  We expect Barminco to
generate modest levels of free operating cash flow after meeting
its cash interest obligations over the forecast period.
Nevertheless, given the uncertain market outlook and aggressive
financial management typical for a private-equity firm, we do not
expect the unadjusted leverage (debt-to-EBITDA, excluding the
accrued RPS obligation) to improve significantly.  Indeed, we
forecast adjusted leverage (debt-to-EBITDA, including the RPS
obligation) to deteriorate over the forecast period," S&P said.

"Our assessment of Barminco's "weak" business risk profile
reflects its small scale and narrow business focus, offset by its
leading share of a niche market.  In our view, underground hard-
rock contract mining is a fragmented and highly competitive market
that is generally subject to higher operating risks than surface
contract mining. Barminco competes mostly against local and
regional contractors, as well as owner operators.  Barminco
currently has 12 mining contracts which, in our opinion, offer
limited customer, geographic, or commodity diversity," S&P noted.

Mr. Ferguson added: "The stable outlook incorporates our
expectation that over the medium term the company will maintain
work-in-hand at about fiscal 2013 levels, despite the uncertain
market outlook for commodities.  S&P expects adjusted debt-to-
EBITDA (including operating leases and preferred shares, excluding
joint venture African Underground Mining Services ) to remain
between 5x and 7x and funds from operations-to-debt below 10% over
the medium term (excluding payment in kind interest).  We expect
EBITDA margins to increase to the low-20% and capital expenditure
to return to between 10% and 12% of revenue."

Barminco's highly leveraged capital structure renders it
vulnerable to a contraction in hard rock mining activity.  The
rating could come under pressure if the termination or suspension
of a material contract, or failure to achieve historical win rates
on new contracts, reduces the financial covenant headroom buffer
to less than 15%.

The rating could be raised if the company delivers a more
conservative financial profile or if business conditions
materially exceed expectations, enabling the credit metrics to
improve.  This could occur if adjusted debt-to-EBITDA (excluding
AUMS) is sustained at about 5x and adjusted FFO-to-debt at about
10%.  Given the current ownership structure, any positive rating
action is likely to be capped within the 'B' category.


HOYTS GROUP: Moody's Assigns 'B2' Corp Family Rating
----------------------------------------------------
Moody's Investors Service has assigned a definitive B2 corporate
family rating (CFR) to Hoyts Group Holdings LLC, a major cinema
exhibitor and supplier of screen advertising, based in Australia
and New Zealand.

At the same time, Moody's has assigned a definitive B1 senior
secured rating to the 1st lien US$ Term Loan and Revolving
Facilities and a definitive B3 senior secured rating to the 2nd
lien US$ Term Loan Facilities entered into by Aufinco Pty Limited
and US Finco LLC, 100% owned and guaranteed subsidiaries of Hoyts.

The debt rated is:

  USD310 million 1st Lien Senior Secured Term Loan B Facility due
  5/29/20

  AUD40 million Senior Secured Revolving Facility due 5/20/18

  USD100 million 2nd Lien Senior Secured Term Loan Facility due
  11/30/20

The proceeds of the issuance will be used principally to repay
existing indebtedness, for specific distributions to shareholders
and to provide working capital.

The definitive CFR and long-term ratings follow the provisional
ratings assigned on May 8, 2013.

Ratings Rationale

"Hoyts ratings principally reflects its aggressive financial
profile with leverage expected to remain elevated over the next
several years, as well as solid market position, strong national
cinema circuit and good admissions levels. While we consider the
market to be mature and competitive, we expect Hoyts to have an
ongoing stable share of both the cinema and cinema advertising
market, underpinning the company's ratings ",says Ian Lewis a
Moody's Vice President and Senior Credit Officer.

"We expect Hoyts to have a stable business profile with a modest
requirement for new capex and limited expansion opportunities
within its major markets and segments, though we expect modest
incremental benefits to earnings will be possible over time", says
Lewis who is also Lead Analyst for the company. "Equally we
anticipate that the company will remain highly leveraged
reflecting in large part the non-strategic nature of the
investment to 93% owner Pacific Equity Partners ("PEP"). We expect
that PEP will seek periodic distributions, within the protections
afforded under the loan documents ", adds Lewis.

Hoyts B2 Corporate Family Rating (CFR) reflects Moody's
expectation that the company's core businesses will continue to
grow slowly over the rating horizon though within a mature market
structure. As such, growth will be in the low single digits on a
multi-year basis but may be more volatile from time to time
depending upon the actual timing of movie releases and success of
theatre content.

The company's business though essentially solid, is likely to be
challenged by long-term decreasing and at times, variable
admissions, depending upon the timing and success of box office
releases. Though not as big as some of its offshore peers (such as
Cinemark USA Inc (B1 stable), Regal Entertainment Group (B1
stable) and AMC Entertainment Inc. (B2 stable), Hoyts has a strong
market position in Australia (which is in turn less fragmented
than the US cinema market), supported by its nation-wide cinema
and screen circuit, with strong brand name recognition. The Val
Morgan cinema advertising business also has a strong market
position and should perform steadily.

Hoyt's ratings are challenged by its high leverage and an
aggressive capital structure along with limited liquidity compared
with some of its (mainly US) peers, though its profitability track
record is good and margins comparable. We expect the company's
financial leverage to remain high over the next several years - in
the low to mid/high 6x Debt/EBITDA area (on an adjusted Moody's
basis). At the same time we expect Hoyt's ratings to be supported
by an ability to drive pricing increases, to an extent, through
format and product innovation.

The company is majority owned by Pacific Equity Partners (PEP) who
we do not see as being a long term strategic owner and this is
likely to see distributions channeled away from the business, from
time to time. Nevertheless we think PEP will continue to support
ongoing discretionary capex within the business, though at
reasonably modest levels. For these reasons we expect leverage to
remain high, constrained by generally lacklustre industry profit
trends on the one hand and periodic shareholder friendly activity.

The stable outlook reflects Moody's expectation for relatively
stable industry conditions in Australia and gradually declining to
flat (at best) admission levels, positive levels of free cash flow
as well as capacity for modest group revenue and earnings growth.
A manageable level of capex is contemplated, in line with Hoyts
largely completed digitization and slowing cinema rollout profile.

The B1 senior secured rating assigned to the 1st lien US$ Term
Loan Facilities and Revolving Facility reflects a one notch uplift
to the Hoyts CFR of B2, indicative of its superior secured
position and claim in Hoyts capital structure.

The B3 senior secured rating assigned to the 2nd lien US$ Term
Loan Facilities reflects a one notch lower rating to the Hoyts CFR
of B2, indicative of its inferior position and claim in the Hoyts
capital structure.

What Could Change the Rating - Up

The rating could be upgraded in the event that the company de-
leverages beyond our current expectations on a sustainable basis,
to levels commensurate with a higher rating. Indicators of this
could be Debt/EBITDA below 6.0x. However given our expectations of
Hoyts ownership and management strategy, we view this as being
unlikely.

What Could Change the Rating - Down

The rating could be downgraded in the event that the company's
performance declines beyond our current expectations through poor
earnings performance or other more adverse industry conditions
and/or displays ongoing negative free cash flow. We would be
particularly concerned should the company's liquidity profile
erode to any extent. Indicators of downward pressure would include
Debt/EBITDA of 7.0x.

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

Hoyts is a major cinema exhibitor and a supplier of screen
advertising business based in Australia and New Zealand. Its core
business is "Hoyts Cinema" -- the cinema exhibition business which
accounts for over 70% of revenues and EBITDA. Hoyts has a strong
position in the cinema entertainment market with 53 cinemas and
437 screens. Hoyt's other businesses comprise DVD rentals (Hoyts
Kiosks) and cinema and outdoor advertising (Val Morgan). Hoyts is
93% owned by Pacific Equity Partners (PEP), a private equity firm
in Australian and New Zealand.


IPSWICH GOLF: 116-Year Old Golf Course Up for Sale
--------------------------------------------------
SmartCompany reports that The Ipswich Golf Club has collapsed,
with the business now up for sale. The 116-year-old Queensland
golf course which, at its financial height, turned over
AUD20 million a year.

On April 19, 2013, the club went into administration, with Peter
Lucas from PA Lucas and Co appointed as the administrator,
SmartCompany relates.

SmartCompany says the firm is now calling for expressions of
interest for the club, with an advertisement placed in the
Australian Financial Review.

SmartCompany relates that assets of the business include club
freehold ownership of golf course land and buildings, 58
electronic gaming machines, large clubhouse facilities including
bistro, catering and function rooms, 400 golf members and full
onsite green keeping staff and equipment.

The Ipswich Golf Club was founded in 1897 by a group of local
residents and was the first golf club in the area.



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B A N G L A D E S H
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BANGLADESH: S&P Affirms 'BB-' LT Sovereign Rating; Outlook Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' long-term
and 'B' short-term sovereign credit ratings on the People's
Republic of Bangladesh.  The outlook is stable.  The transfer
and convertibility (T&C) assessment remains 'BB-'.

The ratings on Bangladesh encompass the country's low level of
economic development and limited fiscal and monetary flexibility.
The ratings also reflect the country's significant infrastructure
and services shortfalls and a large subsidy regime.  A volatile
and adversarial domestic political setting is an additional source
of vulnerability.

These constraints are balanced by strong economic growth, and an
external profile that benefits from ongoing donor and multilateral
engagement.

"Bangladesh's low per capita GDP, which we project at US$850 in
2013, is partly a function of evolving institutions and weak
governance, which deter investment and hamper development," said
Standard & Poor's credit analyst Agost Benard.  "Its sometimes
volatile politics also detract from legislative efficiency and
harbor the potential for instability."

"However, we expect the main pillars of the economy--agriculture,
remittances, and the garment export sector--to continue growing
strongly in 2013-2016 as global demand recovers," Mr. Benard said.

Substantial bilateral and multilateral donor support improves
policy formulation and provides direct budgetary assistance.  This
donor support, together with foreign-sponsored education and
health services to the general population, eases the burden on the
Bangladesh government.

"We project gross financing needs as a percentage of current
account receipts plus usable reserves to average 82% over 2013-
2016.  That level indicates a comfortable external liquidity
position as long as remittances and official transfers remain
strong enough to outweigh the rising trade deficit," Mr. Benard
said.

The stable outlook on the long-term rating reflects strong growth
prospects and ongoing donor support, which ensure low-cost and
long-maturity external debt and minimize refinancing risk.  These
factors are balanced against lingering fiscal and inflation risks,
and the impact that rising political disturbances related to the
coming elections could have on the real economy.

S&P may raise the ratings if the government alleviates energy,
infrastructure, and administrative bottlenecks, thereby boosting
investment and growth prospects.  S&P may also upgrade Bangladesh
if measures aimed at expanding the revenue base and improving
collection efficiency materially improve its fiscal performance.

Conversely, S&P may downgrade the sovereign if fiscal slippages
result in rising public debt and external donor support declines
materially.  S&P may also lower the ratings if the country
substantially deviates from the policies required under the IMF
Extended Credit Facility program.



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C H I N A
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CHINA FISHERY: S&P Affirms 'B+' CCR; Outlook Negative
-----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' long-term
corporate credit rating on China Fishery Group Ltd.  The outlook
is negative.  At the same time, S&P also affirmed the 'B+' issue
rating on the senior unsecured notes issued by CFG Investment
S.A.C. that China Fishery guarantees.  S&P also affirmed the
'cnBB-' long-term Greater China regional scale rating on China
Fishery and the notes.  S&P then removed all the ratings from
CreditWatch, where they were placed with negative implications on
Feb. 28, 2013.  China Fishery is a Singapore-listed fishing
company with operations or business in African, Russian, and
Peruvian waters.

"We affirmed the ratings on China Fishery because recently
heightened liquidity risks for the company appear to have reduced.
Our view reflects the likelihood that the company will not proceed
with a takeover bid for Copeinca, the second largest fishmeal
producer operating in Peru.  In addition, a rights issue in April
2013 has strengthened China Fishery's liquidity position," said
Standard & Poor's credit analyst Lillian Chiou.

The business risk profile remains "weak" and the financial risk
profile "aggressive."

S&P continues to view China Fishery's financial policy as
aggressive, even though it has not proceeded with the takeover
offer.  Further, S&P expects the company to partly pay down
existing debt with the net proceeds from the recent rights issue.
However, China Fishery's debt-funded capital expenditure is likely
to remain high over the long term, as it seeks new acquisition
targets.

S&P expects China Fishery's operating results to improve
moderately for the remainder of this fiscal year (ending Sept. 30,
2013), given potentially higher selling prices for Alaska Pollock
and good utilization of fishing quotas in Africa and Peru.
Nevertheless, the improvement in China Fishery's liquidity
position could diminish shortly after the company repays its high
short-term debt and finances any new acquisitions.

China Fishery and its parent companies will likely continue to
face a challenging operating environment, given their exposure to
high regulatory risks in Russia and Peru, and volatile operating
results.  The financial strength of Pacific Andes International
Holdings Ltd. (PAIH), the ultimate parent company of China
Fishery, could continue to weaken because of its weak operating
results.  PAIH's cash balance increased in the first half of
fiscal 2013, and could be used to reduce debt.  However, S&P is
uncertain whether PAIH's total-debt-to-EBITDA ratio will improve
to below S&P's downgrade trigger of 6.0x this year.  S&P takes a
consolidated view of China Fishery and PAIH.

S&P assess China Fishery's management and governance as weak.  In
S&P's view, the company's financial management and expansion plans
are aggressive.  S&P also thinks it is challenging for the
management to track, adjust, and control the execution of its
strategy, given high regulatory risk and volatile fishing
operations.

China Fishery's improving geographic and business diversity and
good track record of accessing the capital markets support the
rating.

"The negative outlook reflects our view that the financial
position of PAIH may not improve over the next 12 months, given
the weak and volatile operating environment.  As we take a
consolidated view of China Fishery and PAIH, PAIH's weaker
financial strength could negatively affect the rating on China
Fishery.
S&P also sees high uncertainties over whether China Fishery and
its parents will utilize cash balances to repay debt or to pay for
further acquisitions," said Ms. Chiou.

S&P could lower the rating on China Fishery if PAIH fails to
reduce its debt or improve its operating results, such that its
ratio of total debt to EBITDA remains above 6.0x with no signs of
improvement in 2013.  S&P could also lower the rating if China
Fishery's liquidity position deteriorates to "weak."

S&P could revise the outlook to stable if PAIH can reduce its debt
or the operating results of China Fishery and its parents
materially improve, such that S&P believes the parent's ratio of
debt to EBITDA will consistently remain below S&P's downgrade
trigger.


SHIMAO PROPERTY: S&P Raises CCR to 'BB'; Outlook Stable
-------------------------------------------------------
Standard & Poor's Ratings Services raised the long-term corporate
credit ratings on China-based real estate developer Shimao
Property Holdings Ltd. to 'BB' from 'BB-'.  The outlook is stable.
At the same time, S&P raised the issue rating on the company's
outstanding senior unsecured notes to 'BB-' from 'B+'.

S&P also raised the long-term Greater China regional scale rating
on the company to 'cnBBB-' from 'cnBB+' and on its outstanding
senior unsecured notes to 'cnBB+' from 'cnBB'.

"We raised the rating to reflect our view that Shimao's cash flow
and capital structure are likely to strengthen meaningfully over
the next 12 months because of improving property sales and profit
margins," said Standard & Poor's credit analyst Frank Lu.  "The
upgrade also reflects our expectation that Shimao will cautiously
manage its leverage while pursuing expansion."

S&P expects Shimao to generate satisfactory property sales over
the next two years, given an increase in the volume of mass-market
properties for sale, the company's good geographic and project
diversity, and improved execution.  Mid-to-small-unit properties
that are targeted at owner-occupiers now account for 76% of the
total that Shimao has available for sale in 2013.

In S&P's opinion, the company can maintain the improvements in its
project and sales execution, as suggested by a significant
increase in its sell-through rate to 74% in 2012 from 54% in 2011
and continued good sales in early 2013.  Further support stems
from signs of a moderate industry recovery compared with last
year.  In S&P's view, China's real estate market should be stable
for the next 12 months.

"We expect Shimao's profit margin to improve modestly in 2013
because of increasing selling prices due to the roll-out of new
products in a stabilizing market since late 2012," said Mr. Lu.
Nevertheless, price rises could be limited in the second half of
2013 as local governments impose price controls in some cities.
The company's lower margin in 2012 was partly due to price cuts
when it reduced inventories of old products, mostly large units.

The stable outlook reflects S&P's expectation that Shimao's
property sales will be satisfactory and its profit margins will
improve in a stable market over the next 12 months.  S&P also
anticipates that the company can expand with some discipline,
control debt, and improve its leverage over the next 12 months to
a level appropriate for the current rating.

S&P may lower the rating if Shimao's property sales are materially
below its expectation or its debt-funded expansion is more
aggressive than S&P expected, such that the company's ratio of
total debt to EBTIDA stays above 5x, or EBITDA interest coverage
stays below 3x and shows no sign of improving.

S&P may raise the rating if Shimao's financial risk profile
improves materially because of strong sales, good profitability,
and disciplined financial management.  An upgrade trigger would be
a ratio of total debt to EBITDA staying at less than 3.0x and
EBITDA interest coverage remaining more than 5.0x.



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H O N G  K O N G
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* Moody Reviews 5 HongKong Banks' Subdebt Ratings for Downgrade
---------------------------------------------------------------
Moody's Investors Service has put on review for downgrade five
Hong Kong banks' subordinated debt (subdebt) ratings that
incorporated uplift linked to Moody's prior assessment of systemic
support.

Moody's highlights that the reviews of the banks' subdebt ratings
are not related to deterioration in the affected banks'
fundamental credit quality.

The review takes place in the context of a methodology update that
has changed the way Moody's looks at the probability of support,
which has led to subdebt ratings in multiple banking systems being
reviewed simultaneously.

The revised methodology that underpins Moody's announcement was
formally announced in a separate document on May 31 following a
public comment period launched in early April 2013.  Both
documents can be found on www.moodys.com, and their titles are
"Moody's Global Bank Rating Methodology (May 31, 2013) and
"Moody's Proposed Approach for Rating Certain Bank Contingent
Capital Securities and Update to Approach for Rating Bank
Subordinated Debt" (April 10, 2013).

Moody's expects to conclude its review within the next three
months.

Ratings Rationale

The methodology update and the related rating actions announced
today are driven by the conclusion that government policy to deal
with ailing banks has evolved globally -- albeit at different
speeds and degrees across systems -- in a way that makes support
for bank subdebt less probable than before.

"Government policy has evolved towards the adoption of "burden
sharing" principles, and gradually away from the automatic bail
out of all creditors over the last few years" says Stephen Long,
Managing Director for Asia Pacific Financial Institutions at
Moody's.

Moody's also highlights that the many examples of losses being
imposed on subdebt holders in the context of bank resolutions in
other regions have lowered the probability that Asian authorities
would feel obliged to support subordinated debt due to concerns
about the risk of contagion. There would be little stigma attached
to involving subdebt in burden sharing given these prior examples
and given that the global regulatory consensus increasingly sees
this as best practice.

"The willingness of governments and regulators to apply burden
sharing principles and their ability to do so without causing
contagion have been demonstrated in several recent cases where
losses were effectively imposed on creditors along the entire
credit hierarchy in order to recapitalize banks," Long adds.

With respect to Asia and more particularly Hong Kong, Moody's says
that regulators have been reluctant to explicitly endorse the
burden sharing principles and adopt special resolution powers.

Nevertheless, Moody's says it is mindful that such a stance has
emerged in the context of an absence of banking crises or bail-
outs, and the politics of bank resolution could change materially
in times of stress, and the region's regulators may then be more
inclined to borrow tools deployed elsewhere.

Moody's explained that although the review for downgrade is not
linked to any observable deterioration in the credit quality of
the banks, it needs to assess whether the government's likely
behavior in times of stress has changed compared to previous
assumptions.

Moody's preliminary conclusion points to reasonable doubt over
whether the status quo would survive test cases where governments
provide significant financial support to banks, particularly in a
systemic crisis that puts stress on the government's own balance
sheet. The rating agency has therefore placed the banks' subdebt
ratings under review for downgrade.

A Special Comment providing an extensive assessment of the factors
that have led to the review and which will guide Moody's during
the review period will be published separately today. The
publication will be entitled "Moody's Reconsideration of Support
for the Subordinated Debt of Asia-Pacific Banks".

The following list contains the five Hong Kong banks whose subdebt
ratings currently benefit from systemic support uplift and are now
placed under review for downgrade:

Bank of China (Hong Kong) Limited

A1 rating for dated subordinated debt

(P)A1 rating for dated subordinated MTN obligations

Bank of East Asia Limited

A3 rating for dated subordinated debt

(P)A3 rating for dated subordinated MTN obligations

China CITIC Bank International Limited

Baa3 rating for dated subordinated debt

(P)Baa3 rating for dated subordinated MTN obligations

(P)Ba1 rating for junior subordinated MTN obligations

Industrial and Commercial Bank of China (Asia) Limited

A3 rating for dated subordinated debt

(P)A3 rating for dated subordinated MTN obligations

Standard Chartered Bank (Hong Kong) Limited

A1 rating for dated subordinated debt

(P)A1 rating for dated subordinated MTN obligations

(P)A2 rating for junior subordinated MTN obligations

The principal methodology used in these ratings was Moody's Global
Banks Rating Methodology published in May 2013.



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


BANSAL SEEDS: CARE Assigns 'BB' Rating to INR12.50cr LT Loan
------------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of Bansal
Seeds Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       12.50     CARE BB Assigned

Rating Rationale

The rating assigned to the bank facilities of Bansal Seeds Private
Limited is primarily constrained by its small scale of operations
with low net worth base, modest financial risk profile
marked by fluctuating profitability margins, high overall gearing
and weak coverage indicators.

The rating is further constrained by the operations of the company
in the highly fragmented industry and seasonality associated with
the sector.

The rating, however, draws comfort from the experienced promoters
and long track record of operations, presence of the company in
agro cluster and comfortable operating cycle.

Going forward, the ability of the company to increase its scale of
operation while improving its profitability margins and
improvement in the capital structure would be the key rating
sensitivities.

Bansal Seeds Private Limited, based in Kashipur, Uttarakhand, was
incorporated in November 1999 by the Agarwal family headed by Mr.
Mukesh Kumar Agarwal, the Managing Director. It is engaged in the
processing and trading of wheat and paddy seeds. BSPL purchases
the breeder seeds (initial level or raw seeds) of wheat and paddy
from the state authorities or Agriculture Universities. These
seeds are sold to the farmers for up-gradation to foundation
seeds.

Foundation seeds are then repurchased back from the farmers for
further germination and for producing final seeds as per the
specifications of State Certification Agency (for agriculture
seed).

Post certification, these seeds are sold commercially in packed
form. BSPL sells these certified seeds in the brand name of
'Bansal Seeds'. BSPL has an installed capacity of 12,500 Metric
Tonnes Per Annum (MTPA) of processing and grading of seeds as on
March 31, 2012.

For FY12 (refers to the period April 1 to March 31), BSPL achieved
a total operating income of INR13.23 crore with PAT of INR0.05
crore. During FY13 (provisional), BSPL had achieved a total
operating income of INR16.50 crore.


DOSA SAVA: CARE Rates INR3.41cr LT Loan at 'CARE B+'
----------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Dosa Sava
Gadhavi.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       3.41      CARE B+ Assigned

The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of withdrawal of capital
or the unsecured loans brought in by the partners in addition to
the financial performance and other relevant factors.

Rating Rationale

The rating assigned to the bank facilities of Dosa Sava Gadhavi is
primarily constrained on account of its modest scale of operations
with significant decline in Total operating income in FY13 (refers
to the period April 1 to March 31), low order book position and
weak liquidity, albeit moderate debt coverage indicators.

The rating is further constrained on account of the customer
concentration and geographical concentration risk, and presence in
a highly competitive industry with exposure to tender-driven
process.

The rating, however, draws strength from the experience of the
partners in civil construction, DSG's established track record of
operations and reputed client base. The ability of DSG to expand
its scale of operations, through geographical and customer
diversification, and strengthening of its order book, along with
improvement in profitability, is the key rating sensitivity.

DSG was formed as a partnership firm on April 1, 2000, with Mr.
Dosa Batiya, Mr. Mansi Batiya, Mr. Patramal Batiya and  Mr. Manga
Batiya as equal partners. On April 1, 2008, Mr. Manga Batiya
retired from the partnership and Mr. Gopal Batiya joined.

DSG is engaged in civil construction viz road construction, earth
leveling and earth filling alongwith supply of sand and stone,
which are used in construction. The firm has presence in Gujarat
and its customer base comprises of private sector companies.

During FY12, DSG reported a total operating income of INR28.95
crore (FY11: INR25.09 crore) and PAT of INR0.77 crore (FY11:
INR0.33 crore).

During FY13 (provisional), DSG registered a total income of
INR9.66 crore and PAT of INR0.40 crore.


GREATSHINE HOLDINGS: CARE Rates INR8.25cr LT Loan at 'CARE BB+'
---------------------------------------------------------------
CARE assigns 'CARE BB+' and 'CARE A4+' ratings to the various
facilities of Greatshine Holdings Private Limited.

                            Amount
   Facilities            (INR crore)    Ratings
   -----------            -----------   -------
   Long-term Loan            8.25       CARE BB+ Assigned
   Short-term Bank           1.95       CARE A4+ Assigned
   Facilities

Rating Rationale

The ratings assigned to the facilities of Greatshine Holdings
Private Limited are constrained by its small scale of operations
with the revenue generation confined to the 1 megawatt (MW) solar
power plant and the delay faced in the commencement of commercial
operations of the plant. The ratings also consider the delay in
receipt of the anticipated equity contribution for funding the
project expenditure, despite the project being operational for
about a year, and the relatively higher capital outlay involved in
establishment of the solar power plant.

The ratings, however, derive strength from the visibility of the
revenue profile through the Power Purchase Agreement (PPA) entered
with Tamil Nadu Generation and Distribution Corporation
Limited (TANGEDCO) for a period of 25 years. Furthermore, the
ratings take note of the presence of a well-qualified team of
promoters and board of directors, possessing complementary skill
sets and satisfactory level of operational performance of the
plant.

Going forward, the ability of GSH to attain and sustain envisaged
levels of solar power generation over the long term, timely
realisation of receivables from the off-taker and realisation of
proposed securitization proceeds will form the key rating
sensitivities.

Greatshine Holdings Private Limited is promoted to establish and
operate a 1 MW solar photovoltaic (PV) power plant under the
Jawaharlal Nehru National Solar Mission (JNNSM), at Vannankulam
village, Madurai, Tamil Nadu. GSH is part of the Zynergy group
which is establishing its presence in the solar power segment.

The project site is spread over 9.78 acres of land owned by GSH.
The power plant commenced commercial operations in January 2012 as
against September 2011 (initially estimated) due to the
delay in achieving financial closure.

GSH made a loss before tax of INR0.25 crore on a total operating
income of INR0.50 crore in FY12 (refers to the period April 1 to
March 31) as per the audited results. As per the provisional
results for FY13, GSH earned a total operating income of INR2.8
crore.


ISHAN SNAX: CARE Assigns 'B+' Rating to INR9.30cr LT Loan
---------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Ishan Snax Pvt Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       9.30      CARE B+ Assigned
   Short-term Bank Facilities      0.40      CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Ishan Snax Pvt Ltd
are primarily constrained by its nascent stage of operations and
stabilization risk associated with its recently concluded
greenfield project. The ratings also factor in the risk arising
from the lack of experience of the promoters in the food
processing industry, high revenue dependence on a single customer
Parle Biscuits Pvt. Ltd, lack of own brand and renewal-based
agreement with two-year validity.

However, the ratings are underpinned by the requisite support for
job work from PBPL and favourable demand outlook for wafers and
snacks.

The ability of the company to stabilize its operation along with
improvement in the financial risk profile would be the key rating
sensitivities.

Ishan Snax Pvt Ltd was incorporated in December 2005 by Mr. R. N.
Singh and Mr. Pravin Chachan for setting up a snacks manufacturing
unit at Siliguri, West Bengal. The company after remaining dormant
until 2010, set up a processing unit to produce potato chips
[installed capacity 2,970 Tonnes Per Annum (TPA)] and extruded
snacks (installed capacity 1,320 TPA). The unit was set up at an
aggregate cost of INR17.7 crore, which was funded with a debt
equity mix of 1.04:1.

In March 2011, the company entered into agreement with Parle
Biscuits Pvt. Ltd. to process potato chips and extruded snacks on
job work basis. As per the terms of the agreement, PBPL provides
job work for 200 tonnes of potato chips and 100 tonnes of extruded
snacks every month and pays INR29,140/tonne and INR18,380/tonne as
job work charges, respectively. The company commenced commercial
production from December 2012.

As per the provisional results of FY13 (refers to the period
April 1, 2012 to March 31, 2013), ISPL has achieved a turnover of
INR1 crore and net loss of INR0.9 crore.


LAVASA CORPORATION: CARE Revises Rating on INR250cr Loan From 'C'
-----------------------------------------------------------------
CARE revises ratings assigned to non-convertible debenture issue
of Lavasa Corporation Limited.

                         Amount
   Facilities          (INR crore)   Ratings
   -----------         -----------   -------
   NCD - IV               250.00     CARE D (Revised from In-
                                     Principle CARE C (SO)

The revision in rating assigned to Non-Convertible Debenture (NCD)
issue of Lavasa Corporation Limited (LCL) takes into account the
ongoing delays by LCL in servicing the interest obligations of the
aforesaid NCD.

LCL is jointly promoted by HCC through its subsidiary company -
Hindustan Real Estate Limited, apart from Venkateshwara Hatcheries
Pvt. Ltd., Janpath Investments Ltd (JIL - an
Avantha Group company), and Mr. Vinay Vithal Maniar (a trader and
developer based in Pune).

HCC, through its subsidiary and group companies, effectively holds
68.72% stake in LCL.

LCL is undertaking a project to create an integrated hill-station
township - Lavasa - admeasuring around 12,500 acres, providing
residential and business/leisure tourism and educational
infrastructure close to Pune. The project was envisaged to be
taken up in four phases, with the development activities upto
2021.

In November 2010, a show cause notice was served to the Lavasa
hill city project by the Ministry of Environment and Forests
(MoEF) seeking justification as to why the illegal structures on
the 25,000 acre complex in Pune district should not be demolished
for violation of the Environment Protection Act and LCL was
ordered to stop all construction on site till the
Centre takes a decision on the show-cause notice. Work has partly
resumed at the project from November 2011, after receiving
requisite permission from MoEF.


MARS PLYWOOD: CARE Assigns 'C' Rating to INR10.60cr LT Loan
-----------------------------------------------------------
CARE assigns 'CARE C' and 'CARE A4' ratings to the bank facilities
of Mars Plywood Industries Pvt Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       10.60     CARE C Assigned
   Short-term Bank Facilities      31.75     CARE A4 Assigned

Rating Rationale

The ratings primarily take into consideration the instances of
overdrawal of cash credit account and devolvement of LCs. The
ratings are, further, constrained by small scale of operations,
lack of backward integration, resulting in significant imports and
exposure to foreign exchange fluctuation risk, volatile input
prices, significant exposure in group companies and intense
competition, resulting in low profitability margins. The moderate
financial risk profile marked by high leverage ratios further
constrains the ratings.

The ratings factor in satisfactory experience of the promoters and
strategic location of the plant with modern infrastructure
facility.

The ability to improve upon capital structure, effectively manage
the volatility in foreign exchange rates and sustainability of
selling prices in future vis-a-vis the prospect of the
domestic real estate sector are the key rating sensitivities.

Mars Plywood Ind Pvt Ltd, incorporated in July 2001, was promoted
by Mr. Roshan Lal Agarwal, a first-generation entrepreneur, along
with his wife, Ms Sushila Devi Agarwal of Siliguri, West Bengal.
The company is engaged mainly in the manufacturing of plywood with
two manufacturing facilities one at Dankuni, West Bengal (capacity
148 lakh m2), and the other at Kasargod, Kerala (capacity 108 lakh
m2). The products of the company are marketed under the brand name
'Mars'.


MODERN FORGINGS: CARE Assigns 'C' Rating to INR14.09cr Loan
-----------------------------------------------------------
CARE assigns 'CARE C' and 'CARE A4' ratings to the bank facilities
of Modern Forgings & Alloys Industries.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities      14.09      CARE C Assigned
   Short-term Bank Facilities      1.35      CARE A4 Assigned

The ratings assigned by CARE are based on the capital deployed by
the partners and the financial strength of the firm at present.
The ratings may undergo a change in case of the withdrawal of
capital or the unsecured loans brought in by the partners in
addition to the financial performance and other relevant factors.

Rating Rationale

The ratings assigned to the bank facilities of Modern Forgings &
Alloys Industries are primarily constrained by its weak financial
risk profile characterized by net loss, highly leveraged
capital structure and weak liquidity indicators. The ratings are
further constrained on account of its short track record of
operations and susceptibility of profitability to the volatile raw
material prices.

The ratings, however, draw strength from the experience of the
promoters in manufacturing steel products.

The ability of MFAI to increase its scale of operations and
improvement in profitability and capital structure along with
efficient management of incremental working capital requirements
are the key rating sensitivities.

MFAI is a partnership firm formed by Mr. Dalip Kalra and his
family members to undertake the business of manufacturing of
forged rolls, shafts, gears, ingots and blanks. MFAI manufactures
forged rolls in the range of 200 mm to 850 mm and length upto 10
meters. These forged rolls are used in different industrial
applications of steel rolling plants, textile plants, material
handling equipments, machine tools, cement plants, sugar mills,
fertilizer plants, etc. Although, MFAI was formed in 2009, its
commercial production started from June 2011. MFAI had an
installed capacity of 12,000 metric tonnes per annum (MTPA) at its
manufacturing plant located at Vadodara, Gujarat, as on
March 31, 2012.

During FY12 (refers to the period April 1 to March 31), MFAI
reported net loss of INR0.18 crore on a total operating income of
INR27.20 crore.


NIAGARA METALS: CARE Assigns 'B' Rating to INR11.46cr LT Loan
-------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' rating to the bank facilities
of Niagara Metals India Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       11.46     CARE B Assigned
   Short-term Bank Facilities       5        CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Niagara Metals
India Limited are constrained by its small scale of operations
with fluctuating income and PBILDT margins, elongated operating
cycle, stressed liquidity position and weak coverage indicators.
The ratings are further constrained by fluctuating raw material
prices with limited pricing flexibility and increasing competition
in PEB (pre engineered building) and railway segment.

The ratings, however, draw comfort from the experienced management
and strong order book with positive demand for the pre-engineered
building solutions sector.

Going forward, the ability of NMI to increase its scale of
operations while improving profitability margins and the ability
of the company to execute the contract on time would be the key
rating sensitivities.

NMI, based in Ludhiana, Punjab, was incorporated in December 2004
as 100% export oriented unit and is promoted by Mr. Vinod Kumar
Soni. NMI was initially engaged in manufacturing railway
components and exported the same to US markets. Later on the
company diversified the product line to auto components and pre-
engineered building (PEB) and started selling its product in the
domestic market.

The company works through a tender and competitive bidding process
in PEB and railway components. NMI reported net loss of INR0.10
crore on a total income of INR22.30 crore in FY12 as against the
PAT of INR0.12 crore on a total income of INR13.98 crore in FY11.
On a provisional basis, NMI has reported PAT of INR0.40 crore on a
total income of INR27.13 crore in FY13.


PARASRAM MANNULAL: CARE Rates INR5.12cr LT Loan at 'CARE B'
-----------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Parasram
Mannulal Dall Mill Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities        5.12     CARE B Assigned

Rating Rationale

The rating is primarily constrained due to the modest scale of
operations of Parasram Mannulal Dall Mill Private Limited along
with its weak financial risk profile marked by low profitability,
leveraged capital structure and weak debt coverage indicators. The
rating is further constrained by the presence of PMDM in a highly
competitive and fragmented agro-processing industry.

The rating takes into account the experience of the promoters and
their financial support in past along with an established
relationship with the customers and suppliers.

The ability of PMDM to improve the overall financial risk profile
and the efficient management of working capital cycle are the key
rating sensitivities.

Established as a proprietorship concern in 1968, Parasram Mannulal
Dall Mill Private Limited is engaged in the processing and trading
of Arhar Dal (Toor dal). PMDM sells its product under the brand
name PAPA, PM, Nari, Chameli and Gaay Bachda. PMDM procures the
raw material primarily from the domestic market through various
brokers and the entire revenue is also earned from the domestic
market. The processing unit of PMDM is located at Katni, Madhya
Pradesh, with installed capacity of 120,000 quintals per annum.
The capacity utilization during FY12 (refers to the period April 1
to March 31) was around 70%.

During FY12, PMDM posted total operating income of INR53.38 crore
(up by 8.12% vis-a-vis in FY11) and PAT of INR0.10 crore (up by
31.26% vis-a-vis in FY11). During 9MFY13, PMDM has posted total
income of INR45 crore.


PRAG BOSIMI: CARE Assigns 'B' Rating to INR9cr LT Loan
------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities
of Prag Bosimi Synthetics Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities         9       CARE B Assigned
   Short-term Bank Facilities       21       CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Prag Bosimi
Synthetics Ltd are primarily constrained by its weak financial
profile marked by continuous cash losses, resulting in erosion of
net worth, weak debt coverage indicators and stressed liquidity
position of the company. The ratings are further constrained by
its exposure to volatile raw material prices and its presence in a
highly fragmented polyester yarn industry.

The above constraints outweigh the comfort derived from the
locational advantage of its manufacturing facility in terms of
favorable government policies and experience of the promoter in
the yarn industry.

The ability of the company to enhance its scale of operations,
along with improvement in profitability parameters and liquidity
position would be the key rating sensitivities.

PBSL was incorporated on July 1987, and was promoted as a joint
venture between Assam Industrial Development Corporation and
Bombay Silk Mill Ltd to set up a unit for manufacturing the
synthetic yarns. The project which was expected to be completed in
August 1995 got delayed due to various reasons. The company
commenced production from February 2003 at its manufacturing
facility located at Darrang (Assam) with an installed capacity of
15,000 Tonne Per Annum (TPA).

After commencement, the company incurred losses on account of
heavy input and interest costs, and its inability to pass on the
same to its customers and the unit was shut in February 2006. The
company was also referred the account to Corporate Debt
Restructuring (CDR) cell for rehabilitation and restructuring. In
2009, the CDR package was approved by the CDR cell and,
subsequently, the company increased its spinning lines and
expanded its installed capacity to 36,000 TPA in order to avail
the benefit of government policies under NEIIPP, 2007. The company
resumed operations from February 2012.

During FY12 (refers to the period April 01 to March 31), PBSL
reported a total operating income of INR0.6 crore and a net loss
of INR12.3 crore. In M9FY13 (provisional), PBSL reported net sales
of INR93.2 crore.


SARASWATI ASSOCIATES: CARE Places 'B' Rating on INR3.95cr Loan
--------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities
of Saraswati Associates Company.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       3.95      CARE B Assigned
   Long-term/Short-term Bank       3.00      CARE B/CARE A4
   Facilities                                Assigned

The ratings assigned by CARE are based on the capital deployed by
the proprietor and the financial strength of the firm at present.
The ratings may undergo a change in case of the withdrawal of
capital or the unsecured loans brought in by the proprietor in
addition to the financial performance and other relevant factors.

Rating Rationale

The ratings assigned to the bank facilities of Saraswati
Associates Company are primarily constrained on account of its
modest scale of operations in a highly competitive and fragmented
road construction industry, modest order book position and weak
financial risk profile as characterized by leveraged capital
structure, moderate profit margins and moderate debt coverage
indicators. The ratings are also constrained on
account of limited revenue diversity and geographical
concentration risk, along with vulnerability of profits to
fluctuation in raw material prices.

The above constraints far offset the benefits derived from the
long track record of the proprietor in the road
construction industry, established operations with reputed
clientele.

The ability of SAC to increase its scale of operations through
diversification of order book amidst high competition prevailing
in the road construction industry, along with an improvement in
profitability and capital structure are the key rating
sensitivities.

SAC, located at Radhanpur (Gujarat), commenced its operations as a
proprietorship firm in the year 1982.  SAC is promoted by Mr.
Dashrathbhai Patel and is engaged in the construction of roads and
is registered as 'AA' class contractor and 'Special Category I
(Roads)' from the Government of Gujarat (GoG). SAC predominantly
undertakes the government contracts and its operations are
concentrated in North Gujarat only.

During FY13, as per the provisional results, SAC reported a total
operating income of INR21.28 crore (FY12: INR10.47 crore) and a
Profit before Tax of INR0.41 crore (FY12: INR0.20 crore).


SHREE KRISHNA: CARE Rates INR8.69cr LT Loan at 'CARE B'
-------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Shree
Krishna Cotton Industries.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       8.69      CARE B Assigned

The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of the withdrawal of
capital or the unsecured loans brought in by the partners in
addition to the financial performance and other relevant factors.

Rating Rationale

The rating assigned to the bank facilities of Shree Krishna Cotton
Industries is primarily constrained due to its short track record
of operations in the highly fragmented cotton and ginning
industry with limited value addition coupled with moderately
leveraged capital structure. The rating is further constrained by
the volatility associated with raw material (cotton) prices and
the impact of regulatory changes in the government policy for
cotton.

The rating, however, continues to draw strength from experience of
the partners in the cotton ginning business and proximity to the
cotton-producing region of Gujarat.

The ability of SKCI to achieve the projected level of sales and
envisaged profit margins while managing working capital
efficiently is the key rating sensitivity.

Kutch (Gujarat)-based SKCI was established as a partnership firm
in April 2012 by five partners, namely, Mr. Shiv Chhabhadiya,
Dhanbai Chhabhadiya, RamBai Chhabhadiya and Sham Hirani and
Kishorchandra Vasani to undertake the business of cotton ginning
and pressing. On May 29, 2012, a new sixth partner namely,
VinodBhimani was introduced. SKCI operates from its sole
manufacturing plant located at Kutch (Gujarat) with an installed
capacity for cotton bales of 11,088 MTPA and for cotton seeds
19,642 MTPA as on March 31, 2013. SKCI had commenced its
commercial operations from February 2013.


VEDANT STARCH: CARE Rates INR10.10cr LT Loan at 'CARE B+'
---------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Vedant
Starch Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       10.10     CARE B+ Assigned

Rating Rationale

The rating assigned to the bank facilities of Vedant Starch
Private Limited (VSPL) is constrained by the company's small scale
of operations, leveraged capital structure, working capital
intensive nature of operations leading to higher utilization of
working capital limits and exposure of VSPL to volatility in raw
material prices, leading to a fluctuation in operating margins.
The rating, however, is underpinned by the experience of the
promoters in starch industry, and application of maize
starch and derivates across various sectors.

The ability to improve scale of operations, profitability and
efficiently managing the working capital requirements is the key
rating sensitivity.

Vedant Starch Private Limited formerly known as Vedant Tapioca
Private Limited is a starch manufacturer based at Sangli in
Maharashtra. Established in the year 2003 by Mr. Amarsinh
Patil, a first-generation entrepreneur, VSPL manufactures starch
from maize at its factory located in Miraj district near Sangli
(Maharashtra). The company has a production capacity of 9,800 MTPA
(Metric Tons Per Annum) of maize starch as on March 31, 2013, and
has recently added capacities to manufacture 100 MT per day of
maize starch, which will be operational from July 2013, taking its
installed capacity to 46,300 MTPA.

VSPL reported a PAT of INR0.21 crore against a turnover of INR9.66
crore in FY12 (refers to the period April 1 to March 31) as
against PAT of INR0.47 crore against a turnover of INR13.17 crore
in FY11. In FY13 (Provisional) (refers to the period April 1 to
March 31), VSPL has registered operating income of INR12.20 crore
with PAT of INR0.49 crore.


* Moody's Reviews for Downgrade Subdebt Ratings on 11 India Banks
-----------------------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
bank subordinated and junior subordinated debt (subdebt) ratings
that have benefited from an uplift linked to Moody's prior
assessment of systemic support in India.

The affected banks are:

Axis Bank Limited (deposits Baa2 STA(m), BFSR D+/BCA baa3 STA)

Bank of Baroda (deposits Baa2 NEG(m), BFSR D+/BCA ba1 NEG)

Bank of India (deposits Baa3 STA(m), BFSR D/BCA ba2 NEG)

Canara Bank (deposits Baa2 NEG(m), BFSR D+/BCA ba1 NEG)

HDFC Bank Limited (deposits Baa2 STA(m), BFSR D+/BCA baa3 STA)

ICICI Bank Limited (deposits Baa2 STA(m), BFSR D+/BCA baa3 STA)

IDBI Bank Ltd (deposits Baa3 STA(m), BFSR D-/BCA ba3 STA)

Indian Overseas Bank (deposits Baa3 NEG(m), BFSR D-/BCA ba3 NEG)

State Bank of India (deposits Baa2 STA(m), BFSR D+/BCA ba1 STA)

Syndicate Bank (deposits Baa3 STA(m), BFSR D/BCA ba2 NEG)

Union Bank of India (deposits Baa3 STA(m), BFSR D/BCA ba2 STA)

The list of the specific individual program and debt ratings being
placed under review is provided further below.

Moody's highlights that the reviews of the banks' subdebt ratings
are not in any way related to any deterioration in the affected
banks' fundamental credit quality.

The review takes place in the context of a methodology update that
has changed the way Moody's looks at the probability of support,
which has led to several subdebt ratings in multiple banking
systems being reviewed simultaneously.

The revised methodology that underpins today's announcement was
formally announced in a separate document on 31 May following a
public comment period launched in early April 2013. Both documents
can be found on www.moodys.com, and their titles are Global Banks
Rating Methodology (May 31, 2013) and Moody's Proposed Approach
for Rating Certain Bank Contingent Capital Securities and Update
to Approach for Rating Bank Subordinated Debt (April 10, 2013).

Moody's expects to conclude its review within the next three
months.

Ratings Rationale

The methodology update and the related rating actions announced
today are driven by the conclusion that government policy to deal
with ailing banks has evolved globally -- albeit at different
speeds and degrees across systems -- in a way that makes support
for bank subdebt less probable than before.

"Government policy has evolved towards the adoption of "burden
sharing" principles, and gradually away from the automatic bail
out of all creditors over the last few years" says Stephen Long,
Managing Director for Asia Pacific Financial Institutions at
Moody's.

Moody's also highlights that the many examples of losses being
imposed on subdebt holders in the context of bank resolutions in
other regions have lowered the probability that Asian authorities
would feel obliged to support subdebt due to concerns about the
risk of contagion. There would be little stigma attached to
involving subdebt in burden sharing given these prior examples and
given that the global regulatory consensus increasingly sees this
as best practice.

"The willingness of governments and regulators to apply burden
sharing principles and their ability to do so without causing
contagion have been demonstrated in several recent cases where
losses were effectively imposed on creditors along the entire
credit hierarchy in order to recapitalize banks" Long adds.

With respect to Asia and more particularly India, Moody's says
that regulators have been reluctant to explicitly endorse the
burden sharing principles and adopt special resolution powers.

Nevertheless, Moody's says it is mindful that such a stance has
emerged in the context of an absence of banking crises or bail-
outs, and the politics of bank resolution could change materially
in times of stress, and the region's regulators may then be more
inclined to borrow tools deployed elsewhere.

Moody's explained that although the review for downgrade has
nothing to do with any observable deterioration in the credit
quality of the banks, it needs to assess whether the government's
likely behavior in times of stress has changed compared to
previous assumptions.

Moody's preliminary conclusion points to reasonable doubt over
whether the status quo would survive test cases where governments
provide significant financial support to banks, particularly in a
systemic crisis that puts stress on the government's own balance
sheet. The rating agency has therefore placed the banks' subdebt
ratings under review for downgrade.

A Special Comment providing an extensive assessment of the factors
that have led to the review and which will guide Moody's during
the review period will be published separately today. The
publication will be entitled "Moody's Reconsideration of Support
for the Subordinated Debt of Asia-Pacific Banks".

The Indian banks whose subdebt ratings currently benefit from a
support uplift and which have been placed under review for
downgrade are:

Axis Bank Limited, DIFC Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

Axis Bank Limited, Hong Kong Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

Axis Bank Limited, Singapore Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

  Long-term foreign currency junior subordinated debt rating of
  Ba1(hyb)

Bank of Baroda, London Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency subordinated debt rating of Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

Bank of India:

  Long-term foreign currency subordinated debt program rating of
  (P)Ba1

Bank of India, London Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Ba1

  Long-term foreign currency subordinated debt rating of Ba1

Bank of India, Jersey Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Ba1

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba2

Canara Bank:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

Canara Bank, London Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

  Long-term foreign currency junior subordinated debt rating of
  Ba1(hyb)

HDFC Bank Limited:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

HDFC Bank Limited, Bahrain Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

HDFC Bank Limited, Hong Kong Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

ICICI Bank Limited:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

ICICI Bank Limited, New York Branch:

  Long-term local currency subordinated debt program rating of
  (P)Baa3

  Long-term local currency junior subordinated debt program rating
  of (P)Ba1

ICICI Bank Limited, Bahrain Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

  Long-term foreign currency junior subordinated debt rating of
  Ba1(hyb)

ICICI Bank Limited, Dubai Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

ICICI Bank Limited, Hong Kong Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

ICICI Bank Limited, Singapore Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

IDBI Bank Ltd:

  Long-term foreign currency subordinated debt program rating of
  (P)Ba1

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba2

IDBI Bank Ltd, DIFC Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Ba1

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba2

Indian Overseas Bank:

  Long-term foreign currency subordinated debt program rating of
  (P)Ba1

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba2

Indian Overseas Bank, Hong Kong Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Ba1

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba2

State Bank of India:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

State Bank of India, Hong Kong Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

State Bank of India, London Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

State Bank of India, Nassau Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Baa3

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba1

Syndicate Bank:

  Long-term foreign currency subordinated debt program rating of
  (P)Ba1

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba2

Syndicate Bank, London Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Ba1

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba2

Union Bank of India:

  Long-term foreign currency subordinated debt program rating of
  (P)Ba1

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba2

Union Bank of India, Hong Kong Branch:

  Long-term foreign currency subordinated debt program rating of
  (P)Ba1

  Long-term foreign currency junior subordinated debt program
  rating of (P)Ba2

The principal methodology used in these ratings was Moody's Global
Banks Rating Methodology published on May 31, 2013.



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


COOK ISLANDS: S&P Affirms 'B+' ICR; Outlook Stable
--------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'B+/B' issuer credit ratings on the Cook Islands.  The outlook is
stable. The Transfer & Convertibility assessment remains 'AAA'.

"The ratings on the Cook Islands reflect the vulnerabilities
associated with the country's weak policymaking culture and
institutional settings.  Despite recent improvements, these have
the potential to further reverse past gains in fiscal
consolidation," Standard & Poor's credit analyst Craig Michaels
said.  "In addition, the narrowly-based Cook Islands economy
suffers from heavy emigration, vulnerabilities relating to
cyclone-related disasters, and changing tourism preferences."

Further moderating the ratings are the country's lack of monetary
policy flexibility and data deficiencies that constrain S&P's
analysis of the Cook Islands' external position.  Partly
offsetting these factors are the government's supportive
relationship with the highly rated New Zealand sovereign and
international donors, a moderate average income level, and a
modest level of government indebtedness.

Mr. Michaels added: "The stable outlook balances the Cook Islands'
improving economic growth prospects and supportive relationship
with New Zealand and donor agencies, against the challenges it
faces in overcoming weak political and institutional settings and
infrastructure shortcomings to raise the prospects of the
population."

S&P would lower the ratings if a weakening in global economic
conditions reduces tourism sector receipts and, in turn, worsens
the government's finances.  A weakened commitment to uphold past
fiscal gains through undisciplined spending and further sharp
rises in its debt burden could also bring pressure on the ratings.

Improvements in the sovereign creditworthiness could come with
sustained gains in policymaking stability and effectiveness,
evidenced by the closing of sizable data deficiencies, further
strength in the government's fiscal performance, and progress in
increasing economic opportunities for residents to stem the
population decline.


LOMBARD FINANCE: Sir Douglas Graham May Give Up Knighthood
----------------------------------------------------------
The New Zealand Herald reports that Prime Minister John Key will
wait to see whether Sir Douglas Graham takes a further appeal
against his conviction before he considers whether to strip Sir
Douglas of his knighthood, and there is speculation that Sir
Douglas could take the decision out of his hands by offering to
surrender it.

The Herald says the Court of Appeal on May 30, 2013, upheld the
conviction of the four Lombard Finance directors after they failed
to include important information about Lombard's position in offer
documents in December 2007.

The Herald relates that the court also added home detention to the
sentences handed down to the directors, Sir Douglas, Lawrence
Bryant, Michael Reeves and Bill Jeffries, also a former justice
minister.

Some of those who lost money in the collapse of Lombard have
called for Sir Douglas to lose his knighthood.  According to the
report, Mr. Key said such a step was "unusual" but there were
international precedents and he would seek further advice once all
avenues of appeal were exhausted.

The Herald notes that there is speculation Sir Douglas will give
up the knighthood rather than face having it stripped from him.

According to the Herald, Auckland University Constitutional Law
lecturer Bruce Harris said that if Mr. Key was faced with such a
decision, he was likely to consider precedents. It could also be
relevant that Sir Douglas' knighthood was for his service as a
Government Minister and not related to his subsequent work as a
director, the report relays.

"The real question is whether or not the removal is warranted.
It's a question of looking at the nature of the crime, how serious
it was and whether that warrants a removal. There are no clear
rules on that."

The formal word for removal of an honor is 'debasement' --
recommendations go to the Queen who has the power to cancel and
annul the honors, the report notes.

                      About Lombard Finance

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

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


MAINZEAL PROPERTY: Liquidators Want to Control Assets
-----------------------------------------------------
Stuff.co.nz reports that Mainzeal Property and Construction's
liquidators have applied to the High Court to let them potentially
take control of assets that are owned by related companies that
are not in liquidation.

Mainzeal Property and 11 related companies were put into
liquidation on February 28, the report says.

According to the report, the liquidators, Brian Mayo-Smith, Andrew
Bethell and Stephen Tubbs of accountancy firm BDO, have applied to
the High Court for a pooling order that would allow them to treat
the companies in liquidation as if they were single entity and
potentially to recover assets from related companies not in
liquidation, which could increase the amount of money available to
creditors.

"We've taken this action after reviewing the intercompany
positions [and] the group restructuring that occurred prior to
receivership, and also historical operating practices," the report
quotes Mr. Mayo-Smith as saying. "A pooling is when assets and
liabilities of related companies in liquidation are effectively
treated as one entity."

"It can also mean that a related company which is not in
liquidation, may be required to contribute to the pool of assets
of the companies that are in liquidation, if the court finds that
is appropriate," Mr. Mayo-Smith, as cited by stuff.co.nz, said.
Mr. Mayo-Smith was not able to say when a decision on the matter
was likely, the report notes.

                      About Mainzeal Property

Mainzeal Property and Construction Ltd is a New Zealand-based
property and construction company.  The company forms part of the
Mainzeal Group, which is owned by Richina Inc, a privately held
New Zealand-based company with a strong China focus.

Colin McCloy and David Bridgman, partners from
PricewaterhouseCoopers, on Feb. 6, 2013, were appointed receivers
to Mainzeal Property and Construction Limited and associated
entities as a result of a request made by its director to BNZ.

Mainzeal's director, Richard Yan advised that following a series
of events that had adversely affected the Company's financial
position coupled with a general decline in major commercial
construction activity, and in the absence of further shareholder
support, the Company could no longer continue trading.

The receivers are currently in talks with some parties interested
in buying the business and assets of Mainzeal, either as a whole
or by segment.

On Feb. 28, 2013, BDO's Andrew Bethell and Brian Mayo-Smith were
appointed liquidators to those three companies in receivership and
nine others in the group that were not in receivership.

The companies now under the control of the liquidators are
Mainzeal Group, Mainzeal Property and Construction, Mainzeal
Living, 200 Vic, Building Futures Group Holding, Building Futures
Group, Mainzeal Residential, Mainzeal Construction, Mainzeal,
Mainzeal Construction SI, MPC NZ and RGRE.



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


BAYAN TELECOM: Globe Seeks to Convert Debt Into Shares
------------------------------------------------------
Lailany P. Gomez at Manila Standard reports that Bayan
Telecommunications Holdings Corp. and creditor Globe Telecom Inc.
jointly asked the court's approval to restructure the former's
debt and convert them into shares.

According to the Standard, Globe said in a disclosure to the stock
exchange it filed a motion before the court to restructure
BayanTel's debt to prevent the recurrence of default and ensure
its viability.

"The joint motion is intended to achieve a successful
rehabilitation of BayanTel at the earliest possible date," the
report quotes Globe compliance officer and assistant corporate
secretary Marisalve Ciocson-Co as saying.

BayanTel has an outstanding debt of $423.3 million, which Globe
agreed to assume in 2012 in a bid to take over the company, the
report relays.

"BayanTel's operations have not generated sufficient revenue to
continue making the debt payments under its existing
rehabilitation plan. This has been attributed to a decline in
revenue from traditional fixed line services offered by BayanTel,
increasing competitive pressures in the telecommunications
industry and BayanTel's inability to make any considerable capital
investments while under its high debt burden," Ms. Ciocson-Co, as
cited by the Standard, said.

According to the report, Ms. Ciocson-Co said the debt
restructuring would, upon confirmation by the court, reduce debt
burden through a conversion of up to 69 percent of the debt into
BayanTel shares.

"As restructured, the outstanding principal debt balance would be
reduced to approximately $131.3 million, assuming the debt to
equity conversions occur to their fullest extent.  The
restructuring, including the debt to equity conversion feature,
would apply to all of BayanTel's creditors equally upon receipt of
certain regulatory approvals, including the confirmation of the
court," the Standard quotes Ms. Ciocson-Co as saying.

Globe said by acquiring the BayanTel debt, the company would keep
its viability as a telecommunications provider, the Standard adds.

                        About Bayantel

Bayan Telecommunications Holdings Corporation, which is 85.4%
owned by Benpres Holdings Corp. and the Lopez Group, was
incorporated on October 15, 1993.  Bayan Telecommunications Inc.
-- http://www.bayantel.com.ph/-- is the operating arm of BTHC
and is formerly known as International Communications
Corporation.  BayanTel is a telecommunications company offering
an extensive breadth of traditional links and circuitry as well
as cutting edge data and voice applications.  BayanTel's
existing service areas in Metro Manila and Bicol, as well as its
local exchange service areas in the Visayas and Mindanao regions
combined, cover a population of over 25 million, nearly 33% of
the population of the Philippines.  BayanTel has operations in
Japan and the U.K.

In a report on Aug. 15, 2007, the Philippine Star said BayanTel
was setting aside PHP760 million to PHP800 million in 2007 to pay
down debt, using internally-generated cash.  BayanTel was placed
into receivership in 2004.

Weighed down by its huge debt, the company sought corporate
rehabilitation with the Pasig City Regional Trial Court in July
2003 to restructure its short-and long-term bank loans and bonds
payable.  The Pasig Regional Trial Court Branch 158 approved the
company's financial rehabilitation on June 28, 2004, based on
sustainable debt level of PHP17.13 billion, payable over 19
years.  According to RTC Judge Rodolfo R. Bonifacio, the
remainder of BayanTel's debt may be converted to another
appropriate instrument that will not be a financial burden to
parent Benpres Holdings Corp.  It also mandated BayanTel to
treat all creditors equally.  Some of BayanTel's creditors have
appealed the lower court decision.


RURAL BANK OF NAVAL: Placed under PDIC Receivership
---------------------------------------------------
The Monetary Board (MB) placed the Rural Bank of Naval, Inc. under
the receivership of the Philippine Deposit Insurance Corporation
(PDIC) by virtue of MB Resolution No. 866.A dated
May 30, 2013. As Receiver, PDIC took over the bank on May 31,
2013.

PDIC said that upon takeover, all bank records shall be gathered,
verified and validated. The state deposit insurer assured
depositors that all valid deposits shall be paid up to the maximum
deposit insurance coverage of P500,000.00.

The PDIC also announced that it will conduct Depositors-Borrowers
Forums on June 5 and 6, 2013 to inform depositors of the
requirements and procedures for filing deposit insurance claims.
Claim forms will be distributed during the Forum. The schedule and
venue of the Forum will be posted in the bank premises and in the
PDIC website, www.pdic.gov.ph. The claim forms and the
requirements and procedures for filing are likewise available for
downloading from the PDIC website.

Depositors may update their addresses with the PDIC
representatives at the bank premises or during the Forum using the
Mailing Address Update Forms to be furnished by PDIC
representatives. Duly accomplished Mailing Address Update Forms
should be submitted to PDIC representatives accompanied by a
photo-bearing ID of the depositor with signature. Depositors may
update their addresses until June 7, 2013.

Depositors with valid deposit accounts with balances of
HPP15,000.00 and below need not file deposit insurance claims. But
depositors who have outstanding obligations with the Rural Bank of
Naval including co-makers of the obligations, and have incomplete
and/or have not updated their addresses with the bank, regardless
of amount, should file deposit insurance claims.

For depositors that need not file deposit insurance claims, PDIC
targets to start mailing payments to these depositors at their
addresses recorded in the bank no later than the second week of
June.

For depositors that are required to file deposit insurance claims,
the PDIC targets to start claims settlement operations for these
accounts no later than the fourth week of June. The schedule of
the claims settlement operations will be announced through notices
to be posted in the bank premises and other public places as well
as through the PDIC website, www.pdic.gov.ph.

Rural Bank of Naval is a two-unit bank with Head Office located at
P. Burgos St., Naval, Biliran, Leyte. Its lone branch is in
Carigara, Leyte. Latest available records show that as of
March 31, 2013, Rural Bank of Naval had 2,984 accounts with total
deposit liabilities of PHP137.97 million. A total of 2,944 deposit
accounts or 98.7% of the accounts have balances of PHP500,000 or
less and fully covered by deposit insurance. Total insured
deposits amounted to PHP79.48 million or 57.6% of the total
deposits.

According to the latest Bank Information Sheet (BIS) as of
December 31, 2012 filed by the Rural Bank of Naval with the PDIC,
the bank is majority-owned by Jane Jean Diu (7.94%), Demetrio A.
Jaguros (7.79%), Catalina T. Velasquez (7.33%), Cecilia T. Junia
(6.57%), Cherry B. Enage (4.71%), Rizalito V. Curso (4.67%), Tomas
Matiga (4.38%), Juan V. Pastor (4.05%) and Vicente C. Curso, Sr.
(3.94%). Its Chairman and President/Manager is Rizalito V. Curso.


* Moody's Reviews for Downgrade 2 Phil. Banks' Subdebt Ratings
--------------------------------------------------------------
Moody's Investors Service has placed on review for downgrade the
bank subordinated debt (subdebt) ratings that have benefited from
an uplift linked to Moody's prior assessment of systemic support
in the Philippines.

The affected banks are: Philippine National Bank (deposits Ba2
STA(m), BFSR E+/BCA b1 POS), and Rizal Commercial Banking
Corporation (deposits Ba2 STA(m), BFSR D-/BCA ba3 STA).

Moody's highlights that the reviews of the banks' subdebt ratings
are not in any way related to any deterioration in the affected
banks' fundamental credit quality.

The review takes place in the context of a methodology update that
has changed the way Moody's looks at the probability of support,
which has led to several subdebt ratings in multiple banking
systems being reviewed simultaneously.

The revised methodology that underpins Moody's announcement was
formally announced in a separate document on May 31 following a
public comment period launched in early April 2013. Both documents
can be found on www.moodys.com, and their titles are Global Banks
Rating Methodology (May 31, 2013) and Moody's Proposed Approach
for Rating Certain Bank Contingent Capital Securities and Update
to Approach for Rating Bank Subordinated Debt (April 10, 2013).

Moody's expects to conclude its review within the next three
months.

Ratings Rationale

The methodology update and the related rating actions announced
today are driven by the conclusion that government policy to deal
with ailing banks has evolved globally -- albeit at different
speeds and degrees across systems -- in a way that makes support
for bank subdebt less probable than before.

"Government policy has evolved towards the adoption of "burden
sharing" principles, and gradually away from the automatic bail
out of all creditors over the last few years" says Stephen Long,
Managing Director for Asia Pacific Financial Institutions at
Moody's.

Moody's also highlights that the many examples of losses being
imposed on subdebt holders in the context of bank resolutions in
other regions have lowered the probability that Asian authorities
would feel obliged to support subdebt due to concerns about the
risk of contagion. There would be little stigma attached to
involving subdebt in burden sharing given these prior examples and
given that the global regulatory consensus increasingly sees this
as best practice.

"The willingness of governments and regulators to apply burden
sharing principles and their ability to do so without causing
contagion have been demonstrated in several recent cases where
losses were effectively imposed on creditors along the entire
credit hierarchy in order to recapitalize banks" Long adds.

With respect to Asia and more particularly the Philippines,
Moody's says that regulators have been reluctant to explicitly
endorse the burden sharing principles and adopt special resolution
powers.

Nevertheless, Moody's says it is mindful that such a stance has
emerged in the context of an absence of banking crises or bail-
outs, and the politics of bank resolution could change materially
in times of stress, and the region's regulators may then be more
inclined to borrow tools deployed elsewhere.

Moody's explained that although the review for downgrade has
nothing to do with any observable deterioration in the credit
quality of the banks, it needs to assess whether the government's
likely behavior in times of stress has changed compared to
previous assumptions.

Moody's preliminary conclusion points to reasonable doubt over
whether the status quo would survive test cases where governments
provide significant financial support to banks, particularly in a
systemic crisis that puts stress on the government's own balance
sheet. The rating agency has therefore placed the banks' subdebt
ratings under review for downgrade.

A Special Comment providing an extensive assessment of the factors
that have led to the review and which will guide Moody's during
the review period will be published separately today. The
publication will be entitled "Moody's Reconsideration of Support
for the Subordinated Debt of Asia-Pacific Banks"

The Philippine banks whose subdebt ratings currently benefit from
a support uplift and which have been placed under review for
downgrade are:

Philippine National Bank

-- Long-term local currency subordinated debt rating of Ba3

-- Long-term local currency "backed" subordinated debt rating of
    B1 (i.e., a subordinated debt security previously issued by
    Allied Banking Corporation but now assumed by PNB since both
    entities' merger)

Rizal Commercial Banking Corporation

-- Long-term global foreign currency subordinated debt program
    rating of (P)Ba3

The principal methodology used in these ratings was Moody's Global
Banks Rating Methodology of May 31, 2013.



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


* Norton Rose Combines With Fulbright & Jaworski LLP
----------------------------------------------------
"I am proud to inform you that effective today, June 3, 2013,
Norton Rose has formally combined with leading US legal practice
Fulbright & Jaworski LLP to create Norton Rose Fulbright,"
announced John Coleman, Managing Partner of Canada Norton Rose
Fulbright.

"This is an exciting step for us and one which we believe will
greatly benefit our clients.

"Norton Rose Fulbright has close to 3,800 lawyers and offers
worldwide coverage from more than 50 cities across Canada, the
United States, Europe, Latin America, Asia, Australia, Africa, the
Middle East and Central Asia. In the United States, we have one of
the country's largest legal practices, with 750 lawyers coast to
coast, including New York, Houston, Dallas, Los Angeles and
Washington, DC.

"As Norton Rose Fulbright, we will be able to provide clients with
a full service US law capability with Canada's largest trading
partner. We can now help with inbound and outbound cross-border
deals seamlessly, with lawyers based in our country's key markets.
We will also have new north-to-south access to the Americas, with
close to 1,500 lawyers in Canada, the US and Latin America.

"Norton Rose Fulbright aims to provide you with world-class legal
skills in corporate, M&A and securities; banking and finance;
dispute resolution and litigation; intellectual property;
antitrust and competition; employment and labour; real estate; and
tax. We have one of the leading global regulation and
investigations practices, with highly experienced regulatory
lawyers in all of our principal locations. We have also
significantly enhanced the depth and breadth of our resources in
financial institutions; energy; infrastructure, mining and
commodities; technology and innovation; transport; and life
sciences and healthcare, which comprise our key industry sector
strengths.

"I will continue to be a member of our global management team and
am joined on the executive by Fulbright & Jaworski's US Managing
Partner, Kenneth Stewart. Canadian Senior Partners Michael Lang
and Bill Tuer, and Partner Jane Caskey, are also members of our
global management team. Our Global Chairman is Adrian Ahern, based
in Sydney and Norman Steinberg, our Canadian Chairman is now also
Global Co-Chair.

"The creation of Norton Rose Fulbright has been a long-term
ambition for us and represents a landmark achievement for both
practices. It puts us on a new level of legal service to clients
in Canada, the US and around the world.

"If you would like further information about the cross-border and
global services we offer, please speak to your relationship lawyer
at Norton Rose Fulbright or visit our website at
http://www.nortonrosefulbright.com"

Norton Rose Fulbright LLP, Norton Rose Fulbright Australia, Norton
Rose Fulbright Canada LLP, Norton Rose Fulbright South Africa
(incorporated as Deneys Reitz Inc) and Fulbright & Jaworski LLP,
each of which is a separate legal entity, are members ("the Norton
Rose Fulbright members") of Norton Rose Fulbright Verein, a Swiss
Verein. Norton Rose Fulbright Verein helps coordinate the
activities of the Norton Rose Fulbright members but does not
itself provide legal services to clients.


* BOND PRICING: For the Week May 27 to May 31, 2013
---------------------------------------------------

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


  AUSTRALIA
  ---------

MIDWEST VANADIUM     11.50     2/15/2018    USD    69.86
MIDWEST VANADIUM     11.50     2/15/2018    USD    69.35
NEW S WALES TREA      0.50     9/14/2022    AUD    70.62
NEW S WALES TREA      0.50     10/7/2022    AUD    70.41
NEW S WALES TREA      0.50    10/28/2022    AUD    70.21
NEW S WALES TREA      0.50    11/18/2022    AUD    70.02
NEW S WALES TREA      0.50    12/16/2022    AUD    70.31
NEW S WALES TREA      0.50      2/2/2023    AUD    70.81
NEW S WALES TREA      0.50     3/30/2023    AUD    70.31
TREAS CORP VICT       0.50     8/25/2022    AUD    71.75
TREAS CORP VICT       0.50      3/3/2023    AUD    70.76
TREAS CORP VICT       0.50    11/12/2030    AUD    49.57


CHINA
-----

CHINA GOVT BOND       1.64    12/15/2033    CNY    69.45


INDIA
-----

CORE PROJECTS         7.00      5/7/2015    USD    49.70
COROMANDEL INTL       9.00     7/23/2016    INR    16.31
DR REDDY'S LABOR      9.25     3/24/2014    INR     5.02
GRAMEEN FIN SERV     14.05      6/7/2016    INR    54.96
JCT LTD               2.50      4/8/2011    USD    20.00
MASCON GLOBAL LT      2.00    12/28/2012    USD    10.00
PRAKASH IND LTD       5.63    10/17/2014    USD    66.35
PRAKASH IND LTD       5.25     4/30/2015    USD    64.79
PUNJAB INFRA DB       0.40    10/15/2024    INR    34.88
PUNJAB INFRA DB       0.40    10/15/2025    INR    31.79
PUNJAB INFRA DB       0.40    10/15/2026    INR    28.98
PUNJAB INFRA DB       0.40    10/15/2027    INR    26.44
PUNJAB INFRA DB       0.40    10/15/2028    INR    22.22
PUNJAB INFRA DB       0.40    10/15/2029    INR    20.45
PUNJAB INFRA DB       0.40    10/15/2030    INR    20.45
PUNJAB INFRA DB       0.40    10/15/2031    INR    18.85
PUNJAB INFRA DB       0.40    10/15/2032    INR    17.40
PUNJAB INFRA DB       0.40    10/15/2033    INR    16.09
PYRAMID SAIMIRA       1.75      7/4/2012    USD     1.00
REI AGRO              5.50    11/13/2014    USD    70.12
REI AGRO              5.50    11/13/2014    USD    70.12
SHIV-VANI OIL         5.00     8/17/2015    USD    32.16
SUZLON ENERGY LT      7.50    10/11/2012    USD    65.12
SUZLON ENERGY LT      5.00     4/13/2016    USD    50.67


JAPAN
-----

ELPIDA MEMORY         2.03     3/22/2012    JPY    13.62
ELPIDA MEMORY         2.10    11/29/2012    JPY    13.62
ELPIDA MEMORY         2.29     12/7/2012    JPY    13.62
ELPIDA MEMORY         0.50    10/26/2015    JPY     8.00
JAPAN ATOMIC PWR      1.28     9/25/2020    JPY    69.58
JPN EXP HLD/DEBT      0.50     9/17/2038    JPY    69.59
JPN EXP HLD/DEBT      0.50     3/18/2039    JPY    69.54
KADOKAWA HLDGS        1.00    12/18/2014    JPY   126.55



PHILIPPINES
-----------

BAYAN TELECOMMUN     13.50     7/15/2006    USD    22.75
BAYAN TELECOMMUN     13.50     7/15/2006    USD    22.75


SINGAPORE
---------

BAKRIE TELECOM       11.50      5/7/2015    USD    40.00
BAKRIE TELECOM       11.50      5/7/2015    USD    38.48
BLD INVESTMENT        8.63     3/23/2015    USD    68.87
BLUE OCEAN           11.00     6/28/2012    USD    39.37
BLUE OCEAN           11.00     6/28/2012    USD    38.00
DAVOMAS INTL FIN     11.00     12/8/2014    USD    14.75
DAVOMAS INTL FIN     11.00     12/8/2014    USD    14.75
INDO INFRASTRUCT      2.00     7/30/2049    USD     1.88

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

CHEJU REGION DEV      3.00    12/29/2034    KRW    67.55
EXP-IMP BK KOREA      0.50     9/28/2016    BRL    64.45
EXP-IMP BK KOREA      0.50    10/27/2016    BRL    72.04
EXP-IMP BK KOREA      0.50    11/28/2016    BRL    71.54
EXP-IMP BK KOREA      0.50    12/22/2016    BRL    70.54
EXP-IMP BK KOREA      0.50    10/23/2017    TRY    70.76
EXP-IMP BK KOREA      0.50    11/21/2017    BRL    66.35
EXP-IMP BK KOREA      0.50    12/22/2017    TRY    64.50


SRI LANKA
---------

SRI LANKA GOVT        6.20      8/1/2020    LKR    74.59
SRI LANKA GOVT        7.00     10/1/2023    LKR    71.42
SRI LANKA GOVT        5.35      3/1/2026    LKR    57.25
SRI LANKA GOVT        8.00      1/1/2032    LKR    72.07


THAILAND
--------

G STEEL               3.00     10/4/2015    USD     8.25
MDX PUBLIC CO         4.75     9/17/2003    USD    16.12



                             *********

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.



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