TCRAP_Public/130624.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

             Monday, June 24, 2013, Vol. 16, No. 123


                            Headlines


A U S T R A L I A

ALLMINE GROUP: Westpac Appoints KordaMentha as Receivers
ANGAS SECURITIES: S&P Lowers ICR to 'B-'; Outlook Negative
LACTANZ DAIRY: Goes Into Receivership
LISA HO: Shopping Centre Landlords Lose AUD500,000
TRILOGY ASSET I: Moody's Withdraws B2 Rating on AUD300MM Certs.

* Moody's Issues Australian RMBS Tail Risk Assessment Methods


I N D I A

ADITYA RICE: ICRA Assigns 'B+' Ratings to INR13cr Loans
AMBER INTERNATIONAL: ICRA Assigns 'B+' Rating to INR0.25cr Loan
BDS PROJECTS: ICRA Assigns 'B+' Rating to INR0.50cr LT Loan
CERATEC: ICRA Assigns 'B+' Rating to INR4cr LT Loan
COSMIC ADVERTISERS: ICRA Assigns 'D' Ratings to INR6.12cr Loans

KAVAN COTTON: ICRA Assigns 'B+' Rating to INR35cr Cash Credit
PRISTINE METAL: ICRA Suspends 'B' Rating on INR7.67cr LT Loans
RAMKY ELSAMEX: ICRA Downgrades Rating on INR291.9cr Loan to 'D'
ROBOSOFT TECHNOLOGIES: ICRA Reaffirms D Ratings on INR13cr Loans
SAHASRALINGESHWARA POWER: ICRA Rates INR64cr Term Loan at 'B'

SANJEEVANI HEALTH: ICRA Rates INR5.50cr LT Loan at '[ICRA]B'
SIDDHI COTTON: ICRA Reaffirms 'B+' Rating on INR8cr Cash Credit
SIDDHI COTTON INDUSTRIES: ICRA Reaffirms 'B+' Cash Credit Rating
SOHAM PHALGUNI: ICRA Rates INR35.23cr Term Loan at '[ICRA]B'
SRI ADITYA: ICRA Upgrades Ratings on INR32.5cr Loans to 'B+'

SUPRIME STEEL: ICRA Places 'B+' Rating on INR2cr Fund Based Loans
VEDANTA RESOURCES: S&P Assigns 'BB' Rating to US$1.2BB Facility


P H I L I P P I N E S

MANILA ELECTRIC: S&P Raises CCR to 'BB'; Outlook Stable


S I N G A P O R E

SINGAPORE FLYER: Gets Numerous Offer, Likely to Stay in Singapore


S O U T H  K O R E A

STX GROUP: Creditors Inject Additional KRW250BB Liquidity
* Moody's Outlook on Korean Banks Remain Stable


                            - - - - -


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


ALLMINE GROUP: Westpac Appoints KordaMentha as Receivers
--------------------------------------------------------
The Age reports that Allmine Group, which once boasted James
Packer's Ellerston Capital as a keystone investor, has collapsed
owing millions to Westpac and the federal government.

The company's banker, Westpac, appointed receivers on Friday
following the appointment of administrators and the resignation of
managing director Paul Kreppold on Thursday, June 18.

According to the report, reasons for the sudden collapse were
unclear on Friday night, as was the size of Allmine's debt load
-- although a cash-flow statement filed with the ASX shows that as
of March 31 it owed AUD10.9 million to Westpac.

Allmine had been battered by a downturn in the mining services
sector, with staff numbers shrinking from 570 a year ago to 132,
The Age discloses.

It made a profit of AUD1.8 million in the 2012 calendar year, down
from AUD12.7 million the previous year, the report relays.

Cliff Rocke -- crocke@kordamentha.com -- and Scott Langdon --
slangdon@kordamentha.com -- of KordaMentha have been appointed
receivers, while Kim Strickland -- kstrickland@wais.com.au -- and
David Hurt -- dhurt@wais.com.au -- of WA Insolvency Solutions are
administrators.

Ellerston Capital sold off its stake in Allmine in early April,
following Mr Packer's exit from the Ellerston board last year, The
Age discloses.


ANGAS SECURITIES: S&P Lowers ICR to 'B-'; Outlook Negative
----------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered its
long-term issuer credit rating on Angas Securities Ltd. to 'B-'
from 'B' and its short-term issuer credit rating on Angas to 'C'
from 'B', and at the same time removed the long-term rating from
CreditWatch with negative implications, where it was placed on
March 28, 2013.  The outlook is negative.

The rating actions reflect persistent concerns around Angas' high
level of arrears in its concentrated loan portfolio, and its high
sensitivity to potential credit losses in the context of its small
absolute capital base and modest capital ratios.

The 'B-' issuer credit rating on Angas reflects the company's
profile as a small, niche commercial-property financier, with
total assets of A$331 million and adjusted total equity of
A$7.4 million at Dec. 31, 2012.  In S&P's view, a key weakness in
Angas' credit profile is its focus on high-risk lending segments
and its materially concentrated loan portfolio relative to a weak
capital base that is sensitive to potential credit losses.  The
concentrated commercial-property portfolio leads to Angas' asset
quality being particularly sensitive to any softening in the
market, which saw arrears continue to increase over 2012, reaching
a peak of AUD78.1 million at Dec. 31, 2012.  Arrears have since
fallen marginally to AUD75.3 million at May 31, 2013.  Although
Angas expects to resolve several of its large nonperforming loans
by June 30, 2013, it has experienced ongoing delay in the
resolution of such loans in the past.

"The negative outlook reflects the ongoing request by the
Australian Securities and Investments Commission (ASIC) that Angas
cease taking debentures from new investors, which has the
potential to limit Angas' future lending and earnings," said
credit analyst Lisa Barrett.  "It also reflects the ongoing delays
Angas has experienced in resolving some of its large nonperforming
assets."

The negative outlook indicates that there is a one-in-three chance
that Standard & Poor's could lower its rating on Angas in the next
one-to-two years.  The negative outlook reflects the ongoing
request by ASIC that Angas cease taking debentures from new
investors.  Although the independent business review was signed
and completed by the independent advisor on April 3, 2013, and a
copy provided to Angas by the trustee on April 19, 2013, the
independent business review process remains incomplete and hence
the ASIC request remains in place.  However, Angas has now agreed
to certain protocols with the trustee in order to complete the
independent business review, many of which are in progress, and
should lead to the completion of the independent business review
in due course.

The negative outlook also reflects Angas' still substantial
nonperforming assets, which totaled AUD75.3 million at May 31,
2013.  Although Angas anticipates resolving several of its largest
problem loans by June 30, 2013, bringing total nonperforming
assets down to AUD47.5 million, the negative outlook reflects the
ongoing challenges that Angas has experienced with resolving its
sizeable portfolio of nonperforming assets over the past year in
particular.  Downward rating pressure could continue should Angas
be unable to resolve a substantial portion of its nonperforming
assets in a timely manner or experienced further losses from its
nonperforming assets, which could further negatively impact its
already weak capital position.

The rating could stabilize at the current level following ASIC
removing its request that Angas cease taking debentures from new
investors and Angas' debenture reinvestment rate returning to
historical levels combined with the company successfully reducing
its nonperforming loans in a timely manner without any further
losses or new material loan loss provisioning.


LACTANZ DAIRY: Goes Into Receivership
-------------------------------------
Jessica Hayes at Farm Weekly reports that Lactanz Dairy,
Western Australia's largest dairy farming conglomerate, has gone
into receivership.

Farm Weekly relates that embattled owners of the company failed to
sell the property and after its removal from the market in
May this year, Ferrier Hodgson was appointed receivers as of
June 5.

Lactanz Dairy is the single largest supplier to Brownes and
comprises four Scott River properties and a milking herd of 4,000.

Contracts between Lactanz and Brownes mean current arrangements
will prevail for the next five years, the report relays.

According to the report, Ferrier Hodgson receiver Martin Jones
said the company was in the process of working through Lactanz
Dairy's finances, and was looking at various options in relation
to operations.

"We are trying to stabilise the financial aspects of it and then
look at how we will deal with it and develop a realisation
strategy," the report quotes Mr. Jones as saying.  "We need to get
a solid platform first and then we will go from there."

Regarding the contract with Brownes, which has complicated the
sale of the property, Mr. Jones said Ferrier Hodgson was working
with the processor.

Farm Weekly adds that Brownes managing director Ben Purcell said
it was working closely with the receivers and share-milkers to
ensure the best possible outcome for all parties involved.


LISA HO: Shopping Centre Landlords Lose AUD500,000
--------------------------------------------------
SmartCompany reports that the collapse of the debt-laden Lisa Ho
fashion group has left prominent shopping centre landlords out of
pocket by around AUD500,000.

SmartCompany relates that a creditors report prepared by voluntary
administrator Todd Gammell and Barry Taylor of HLB Mann Judd,
appointed in May, revealed that Lisa Ho operated 10 standalone
retail stores and seven concession stores within David Jones prior
to its collapse.

Seven of these standalone stores and five concessions stores have
since been shut down with "the balance of liabilities relat[ing]
to lease arrears at appointment of approximately $500,000 and
other trade creditors" according to the report obtained by
SmartCompany.

According to SmartCompany, the creditors report notes that trustee
Perpetual Limited is seeking payment of "$46,406.65 for base rent,
outgoings and GST payable pursuant to the lease of Shop 480 in the
Chadstone Shopping Centre on 12 December 2012" and commenced
proceedings to recover the money in April.

Stores which continue to trade are in Ipoh's Strand Arcade on
George Street in Sydney, ISPT's Wintergarden complex on Queen
Street Mall in Brisbane and at 350 Bourke Street in the Melbourne
CBD, SmartCompany notes.

The Lisa Ho Group closed the Woollahra store in Sydney prior to
the appointment of the Administrators.

A review carried out by the creditors identified problems before
the coming was placed in administration including that a number of
retail stores were "unprofitable on the basis of the current
rental and wage costs given the level of sales with a "number of
stores" identified for closure prior to the appointment of
administrators appointment, according to SmartCompany.

However, such was the dire financial position - an estimated $11
million worth of debt -- that the group was "unable to fund the
costs of vacating and terminating the leased sites" -- a number of
shops had bespoke fit outs financed by St.George Bank, the report
relates.

Administrators HLB Mann Judd were appointed as administrators to
iconic Australian fashion brand Lisa Ho earlier in May.
SmartCompany said Lisa Ho recorded AUD13.05 million in revenue in
2012 but made a loss of AUD2.3 million, which the business
attributed to "one-off issues".  This led to the appointment of
administrators to Lisa Ho Designs and Lisa Ho Retail.

The Lisa Ho chain comprises 10 flagship stores in Australia, two
clearance stores and an online store.


TRILOGY ASSET I: Moody's Withdraws B2 Rating on AUD300MM Certs.
---------------------------------------------------------------
Moody's Investors Service has withdrawn the rating of Trilogy
Asset Securities Trust Series 1, an Australian RMBS transaction.
Moody's has withdrawn the rating for its own business reasons.

Issuer: Trilogy Asset Securities Trust Series 1

AUD300M Deferrable Interest Principal A Note Certificate,
Withdrawn (sf); previously on Feb 6, 2013 Downgraded to B2 (sf)


* Moody's Issues Australian RMBS Tail Risk Assessment Methods
-------------------------------------------------------------
Moody's Investors Service has published "Moody's Approach to
Addressing Tail Risk in Australian RMBS that Pay Principal Pro-
rata", a secondary methodology describing Moody's monitoring
approach to assess tail risk in Australian RMBS.

The methodology closes out the Request for Comment (RFC) "Moody's
Approach to Addressing Tail Risk in Australian RMBS that Pay
Principal Pro-rata" published on April 29, 2013 with the comment
period running until May 20, 2013.

The methodology incorporates the principles discussed in the RFC.

Specifically, the approach: 1) evaluates tail risk in Australian
RMBS that pay principal to the tranches on a pro-rata basis, and
2) assesses the sufficiency of the credit enhancement and
liquidity support available to the rated tranches to address tail
risk at the end of a transaction's term.

The approach uses scenario analysis in which Moody's stresses its
projections for the securitized pool's loss and significantly
delays future defaults.

Under the approach, in general, if the securitized pools are
covered by Lender's Mortgage Insurance and so long as the senior
and mezzanine tranches do not incur losses under the stress
scenario, the maximum ratings achievable on the tranches are 1)
the relevant mortgage insurer's rating, if liquidity is
sufficient, and 2) one notch below the relevant mortgage insurer's
rating, if liquidity is insufficient.

If the tranches do incur losses under the stress scenario, their
ratings will be commensurate with the losses under that scenario.

Moody's will use this approach to monitor senior and mezzanine
tranches with Aaa (sf) -- A (sf) ratings from pro-rata pay
transactions that do not have sufficient support mechanisms, such
as credit enhancement and liquidity floors.

Counterparty Instrument Ratings (CIRs)

Swap counterparties providing basis or fixed-rate swaps that cover
securitized transactions until the last loan are subject to the
same tail risk described in the methodology. Hence, the approach
in the methodology also impacts CIRs for these swaps.

A CIR addresses the expected loss posed to a swap counterparty in
relation to the trust's payment obligations under the swap. For
basis and fixed-rate swaps, the trust's payment obligation to the
swap counterparty is based on the weighted average interest rate
of the variable-rate loan balance or fixed-rate loan balance as at
the first day of the relevant collection period, respectively.

These balances exclude losses, but include loans which are in
arrears and loans for which liquidation proceedings and mortgage
insurance claim process are ongoing (delinquent loans). The amount
of delinquent loans in the pool, therefore, affects the trust's
payment ability to the swap counterparty. The higher the
delinquency, the less likely the trust is able to meet its payment
obligations under the swap.

To determine whether the trust has sufficient liquidity to make
swap payments under a high delinquency scenario, Moody's will use
the same approach described in the methodology.

Moody's first assumes that large loans with long interest-only
periods will remain outstanding at tail end of the transaction,
and they will remain delinquent for a prolonged period. Moody's
then determines if liquidity available in the transaction is
sufficient to cover the interest payment obligations to the swap
counterparty due to the collection shortfall from the high
delinquency of these loans.

This is not an update to the current CIR methodology. Under the
methodology, a CIR will generally match the rating of equal or
pari passu ranking notes, but may well differ from the rating of
pari passu ranking notes where there is a mismatch between the
expected duration of the swap and the redemption date of the
notes.



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


ADITYA RICE: ICRA Assigns 'B+' Ratings to INR13cr Loans
-------------------------------------------------------
ICRA has assigned long-term rating of '[ICRA]B+' rating to
INR13.00 crore1 fund based limits of Aditya Rice Industries.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Term Loan               7.00     [ICRA]B+ assigned
   CC                      4.00     [ICRA]B+ assigned
   Unallocated             2.00     [ICRA]B+ assigned

The assigned rating are constrained by intensely competitive
nature of rice milling industry with presence of several small-
scale players which further increases the pressure on the
operating margins; weak financial profile of the firm
characterized by low profitability & high gearing levels; and
risks inherent in a partnership firm. These apart, the ratings are
also constrained by the susceptibility of profitability & revenues
to agro-climatic risks which impact the availability of the paddy
in adverse weather conditions. The ratings however favorably
factor in the long track record of the promoters in the rice mill
business and easy availability of paddy as the plant is located in
one of the major rice growing region of Andhra Pradesh.

Founded in 2011 as partnership firm by Mr. G. Rama Murthy and his
relatives, Aditya Rice Industries is engaged in the milling of
paddy and produces raw & boiled rice. The company started its
operations from February 2012. The rice mill is located at
Miryalguda, Nalgonda District of Andhra Pradesh. The installed
capacity of the plant is 8 tph (tons per hour).

Recent Results

As per the results for FY2012, the firm reported net profit of
INR0.01 crore on turnover of INR5.01 crore.


AMBER INTERNATIONAL: ICRA Assigns 'B+' Rating to INR0.25cr Loan
---------------------------------------------------------------
ICRA has assigned the rating of '[ICRA]B+' to the INR0.25 crore
long term fund based bank limits of Amber International.  ICRA has
also assigned a short term rating of '[ICRA]A4' to the INR5.00
crore short term fund based bank limits of AI.

                             Amount
   Facilities               (INR Cr)   Ratings
   ----------               --------   -------
   Long Term Fund Based       0.25     [ICRA]B+ Assigned
   Limits-Cash Credit

   Short Term Fund Based      5.00     [ICRA]A4 Assigned
   Limits-FDBP

   Short Term Fund Based      3.00     [ICRA]A4 Assigned
   Limits-Packaging Credit

The ratings are constrained by AI's weak financial profile
characterized by small scale of operations, moderate profitability
and stretched liquidity emanating from high debtors days which in
turn has resulted in high utilization of working capital and a
leveraged capital structure. The ratings are also constrained by
stiff competitive pressures in the industry and susceptibility to
demand slowdown in key export markets such as in Europe, as well
as to changes in export incentives & adverse currency
fluctuations. The ratings also incorporate high competitive
pressures from domestic players, which could exert further
pressure on margins. The ratings however consider the experience
of the promoters in home textiles exports business, long
association with reputed customers across Europe and America and
fiscal benefits received in the form of export incentives.

Amber International is a proprietorship firm established in 2008
with Mrs. Chandrika Shah as its proprietor. The concern has its
registered office in Mumbai, Maharashtra and warehouse facilities
in Sholapur and Madurai. The firm is a trading house engaged in
the business of export and domestic supply of terry towels.

Recent Results

During 2011-12, the firm has reported a net profit of INR0.37
crore on an operating income of INR17.38 crore. As per the 12
months unaudited results of 2012-13, the firm has reported a net
profit of INR0.35 crore on an operating income of INR11.90 crore.


BDS PROJECTS: ICRA Assigns 'B+' Rating to INR0.50cr LT Loan
-----------------------------------------------------------
ICRA has assigned an '[ICRA]B+' rating to the INR0.50 crore, long-
term fund based facilities of BDS Projects India Private Limited.
ICRA has also assigned an '[ICRA]A4' rating to the INR7.25 crore
short term non-fund based bank facilities. The ratings were
earlier suspended in May 2012, at [ICRA]BB(Stable)/ [ICRA]A4.

                           Amount
   Facilities             (INR Cr)   Ratings
   ----------             --------   -------
   Long-term, fund-         0.50     [ICRA]B+ assigned
   based facilities

   Short-term, non-fund     7.25     [ICRA]A4 assigned
   based facilities

The rating assignment takes into consideration the goodwill of
promoters and the parent company -- N S Guzder & Co Private
Limited, coupled with the financial flexibility of the promoters,
which provides an advantage to the company over the large
unorganised segment. The strong network of the promoters,
developed as a result of the long established presence of the
parent company has enabled BDS to cater to a reputed client base
and a regular in-flow of orders. However, the deterioration in the
financial performance of the parent company coupled with a decline
in the profitability of BDS weakens the overall consolidated
financial profile of the group. The delay in completing the
construction project has impacted the revenue growth of the
company, further impacting the financial profile. Nonetheless, the
promoters have extended loans of -INR6.0 crore in FY2013 to meet
the additional working capital requirements of the company,
indicating the financial flexibility of the promoters. In
addition, the redemption of the preference shares has also been
extended by a period of five years, which provides comfort to an
extent. However, since both these instruments are interest
bearing, this impacts the capital structure and coverage
indicators of the company. ICRA favorably factors in the
collaboration of the company with Vector Corrosion Technologies
Limited, Canada, However on account of the weak industrial outlook
over the last two years, BDS has not been successful in generating
demand for the product. In addition, the overall business remains
exposed to cyclicality of the weather conditions, with project
execution reducing considerably during monsoons, thereby impacting
the cash flows.

BDS Projects India Private Limited is a subsidiary of N S Guzder &
Co Private Limited (parent company) engaged in the speciality
engineering and contract solution business. Prior to spin off of
business activity in the BDS, the parent company had an in-house
division, Business Diagnostics and Solutions, which undertook
projects in the field of speciality engineering and contract
solutions. This division came into existence as a result of the
experience acquired by the parent company while carrying out the
project transportation business.

BDS Projects India Pvt. Ltd. incorporated in FY2007 is involved in
providing single point packaged solution in speciality engineering
and contracting in the field of repairs, rehabilitation,
retrofitting of RCC structures, polyurea coatings, corrosion
mitigation, waterproofing, flooring and protective coating. The
company also diversified in to construction segment in FY2011.

Nukote Coating India Pvt Limited, a subsidiary of N S Guzder, also
has a tie up with Nukote International, USA, to exclusively
distribute the company's polyurea coatings in the Indian sub
continent. The product is used to increase the longevity of
materials and forms a raw material for BDS. Hence this improves
the overall project execution by BDS with the availability of
technically advanced products.


CERATEC: ICRA Assigns 'B+' Rating to INR4cr LT Loan
---------------------------------------------------
ICRA has assigned long term rating of '[ICRA]B+' to INR4.00 crore
cash credit fund based bank facility and short term rating of
'[ICRA]A4' to INR3.50 crore non fund based buyers credit of
Ceratec.

                          Amount
   Facilities            (INR Cr)    Ratings
   ----------            --------    -------
   Long Term, Fund          4.00     [ICRA]B+ Assigned
   Based Limits-Cash
   Credit

   Long Term, Non Fund      3.50     [ICRA]A4 Assigned
   Based Limits-Buyers
   Credit

The assigned ratings favorably factors in the long standing
experience of promoters in tiles trading business and healthy
demand prospects of the tiles and other building materials in Pune
owing to healthy growth prospects of infrastructure sector in
Pune. The assigned ratings, however, remained constrained by its
thin profitability margins, high gearing level and moderate
coverage indicators. The ratings also remained constrained by its
highly competitive business environment and working capital
intensive nature of business. The firm is also exposed to currency
fluctuation risk as large parts of purchases are import oriented;
however it is partially mitigated by hedging currency.

Ceratec is engaged into import and retailing of tiles, sanitary
ware, bath tub and steam cabinet to end users and builders. The
firm generates -70% of revenues from tiles trading while sanitary
ware, bath tub and steam cabinet accounting to a marginal share of
revenues. The firm's sales are concentrated towards Pune in which
it generates -90% of revenue from end users and remaining through
builders in Pune. The firm trades in Asian and Nitco company tiles
which the firm buys from their group company Poona Ceramic &
Distributors, who is authorized dealer of Maharashtra. The firm
trades in Duravit, Jaguar and Kohler brand of sanitary ware and
bath tub, which firm directly buys from the company. The firm
imports -30% of total purchases of high end tiles and sanitary
ware. The firm has its show room at Ambegaon, Pune in an area of
30,000 square feet.

Incorporated in 2000, Ceratec is promoted by Mr. Anand Agarwal and
Mrs. Kavita Agarwal. The firm is engaged in the import and
retailing of tiles, sanitary ware, bath tub and steam cabinet to
end users and builders. The firm has three group companies namely;
Poona Ceramics, Poona Ceramics & Distributors and Poona Marboneel
Private Limited. These entities are engaged into tiles trading.


COSMIC ADVERTISERS: ICRA Assigns 'D' Ratings to INR6.12cr Loans
---------------------------------------------------------------
ICRA has assigned an '[ICRA]D' rating to the INR4.0 crore cash
credit facility and INR1.87 crore term loans of Cosmic Advertisers
Private Limited. ICRA has also assigned an '[ICRA]D' rating to the
INR0.25 crore non fund based limits of CAPL.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Cash Credit             4.00     [ICRA]D Assigned
   Term Loans              1.87     [ICRA]D Assigned
   Non Fund Based          0.25     [ICRA]D Assigned

The ratings take into consideration recent delays in servicing of
debt obligations by CAPL on account of stretched liquidity
position due to high working capital intensity of operations,
company's weak financial profile with nominal profits, declining
return on capital employed and weak coverage indicators, high
utilisation of the bank limits limiting the company's financial
flexibility and small scale of operations coupled with declining
sales levels. ICRA also notes the geographical concentration risks
that CAPL is exposed to on account of its operations being
primarily limited to the city of Bokaro, Jharkhand. The ratings
take into account the long track record of the promoters in the
printing and outdoor advertising business and an established
client base present across multiple industries.

CAPL was established in 1985 by the Lamba family as a
proprietorship concern, which was later reconstituted as a private
limited company in 1998. CAPL is primarily engaged in printing and
providing outdoor advertising services. CAPL is based out of
Bokaro, Jharkhand.

Recent Results

CAPL reported a net profit of INR0.13 crore during FY12 on an OI
of INR7.96 crore as against a net profit of INR0.37 crore and an
OI of INR10.8 crore during FY11. CAPL also reported an OI of
INR6.02 crore (provisional) during FY13.


KAVAN COTTON: ICRA Assigns 'B+' Rating to INR35cr Cash Credit
-------------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B+' to the INR7
crore enhanced fund based bank facility of Kavan Cotton Private
Limited.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Cash Credit             35.00*   [ICRA]B+ assigned

*enhanced from INR28.00cr

The assigned rating continues to be constrained by the company's
weak financial profile characterized by low profitability due to
inherently low value additive nature of the business, leveraged
capital structure and stretched liquidity. The rating also takes
into account the susceptibility of the cotton prices to
seasonality and regulatory risks which together with the highly
competitive nature of the industry further exerts pressure on the
margins. The rating, however, favorably factors in the long
experience of the promoters in the cotton ginning and pressing
business, favorable location of the company gives it easy access
to raw cotton and positive demand outlook for edible oil in India.

Kavan Cotton Private Limited was incorporated in 2008 by
Mr. Chandreshkumar Maganbhai Patel and Mr. Nileshkumar Navalbhai
Chhatrara, directors, along with 5 other shareholders. Mr.
Popatbhai R Bhalara, director along with 3 other shareholders,
have acquired the company and started to manage its operation from
1st April 2011. The present directors have more than a decade of
experience in cotton industry. Kavan Cotton Private Limited is
engaged in the business of cotton ginning, pressing and crushing
activities with 40 ginning machines, 1 pressing machine and 9
expellers for producing FP (fully pressed) bales and cottonseed
oil with an intake capacity of 42,240 MT per annum of raw cotton
and 12,720 MT per annum of cottonseeds. Apart from production, the
company is also involved in trading activities in cotton bales
cottonseeds, cottonseed oil and oil cakes.

Recent Results

For the year ended March 31, 2013, the company reported (as per
unaudited provisional figures) an operating income of INR231.27
crore and profit after tax of INR0.47 crore as against an
operating income of INR138.77 crore and profit after tax of
INR0.22 crore during FY2012.


PRISTINE METAL: ICRA Suspends 'B' Rating on INR7.67cr LT Loans
--------------------------------------------------------------
ICRA has suspended [ICRA]B rating assigned to the INR7.67 crore
long term loans & working capital facilities & [ICRA]A4 rating to
the INR1.35 crore short term, non-fund based facilities of
Pristine Metal Form Private Limited. The suspension follows ICRA's
inability to carry out a rating surveillance in the absence of the
requisite information from the company.


RAMKY ELSAMEX: ICRA Downgrades Rating on INR291.9cr Loan to 'D'
---------------------------------------------------------------
ICRA has revised the long-term rating assigned to INR291.90 crore
term loans of Ramky Elsamex Hyderabad Ring Road Limited to
'[ICRA]D' from '[ICRA]BBB'.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Term Loans             291.90    [ICRA]D Downgraded

The rating revision primarily factors in the recent delays in debt
servicing by REHRRL following delayed infusion of funds from its
sponsor Ramky Infrastructure Limited (RIL). While there have been
consistent delays in receipt of annuities from Hyderabad
Metropolitan Development Authority (HMDA, concessioning authority)
necessitating dependence on RIL for meeting debt servicing
obligations, ICRA's earlier rating took support from the
demonstrated timely support by RIL since December 2010. Further,
the rating factored in the letter of comfort provided by RIL for
timely servicing of entire debt obligations of REHRRL in case of
any cash shortfall. However, such funding support from RIL has not
come in a timely manner in recent past resulting in delays in debt
servicing. ICRA expects REHRRL to continue to remain dependent on
its sponsor to meet debt servicing requirements over the near term
given the delays in receipt of annuities and the significant
repayments falling due in FY2015. Therefore, in the absence of a
definite mechanism to secure funds from RIL in a timely manner,
such delays on account of cash flow mismatches could continue.

Going forward, ability of REHRRL to service the debt obligations
in time which is in turn dependent on timely infusion of funds
from sponsor will be the key rating sensitivity.

Ramky Elsamex Hyderabad Ring Road Limited is a special purpose
vehicle promoted by Ramky Infrastructure Limited (74%) and Elsamex
SA (26%) for design, construction, development, finance, operation
and maintenance of eight lane access controlled expressway under
phase II A programme of Outer Ring Road to Hyderabad city, in the
state of Andhra Pradesh, for the package from Tukkuguda to
Shamshabad from Km 121.00 to Km 133.63 on Build, Operate and
Transfer (BOT) Annuity basis. Concession period is 15 years
(including a construction period of 2 years). The total project
cost was INR390.47 crore. HUDA partly funded the project, through
a grant of INR66.50 crore (20%). Balance project cost of INR323.97
crore was funded through senior debt of INR253.97 crore, sub
ordinate debt of INR25.00 crore and remaining INR45.00 crore
through promoters' contribution (which includes INR25 crore
redeemable cumulative preference shares).

Recent Results

According to FY 2013 results, REHRRL reported an operating income
of INR63.00 crore, with a net loss of INR4.15 crore, the cash
accruals stood at INR21.22 crore.


ROBOSOFT TECHNOLOGIES: ICRA Reaffirms D Ratings on INR13cr Loans
----------------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]D' for the
INR5.0 crore term loan facilities of Robosoft Technologies Private
Limited. ICRA has also reaffirmed the short-term rating of
'[ICRA]D' for the INR7.5 crore fund based facilities and the
INR0.5 crore non-fund based facilities of the Company.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Term Loans               5.0     [ICRA]D/re-affirmed

   Short-Term Fund
   Based Limits             7.5     [ICRA]D/re-affirmed

   Short-Term Non Fund      0.5     [ICRA]D/re-affirmed
   Based Limits

The ratings reflect the delays in debt servicing by the Company
due to strained liquidity conditions on account of highly working
capital intensive nature of its operations. This is largely
attributable to the stretched cash collection cycle with the
Company's domestic customers.

ICRA however notes the Company's capabilities in development of
software applications for the niche Apple Macintosh platform and
RTPL's focus on mobile development services and ERP products which
is expected to drive the revenue growth going forward. With
increase in revenues from mobile development services and games
software products (where the target customers are predominantly
local companies), the Company's dependence on US market has
reduced significantly from over 80% in 2011-12 to -54% in 2012-13,
signifying improved geographical diversification. However, RTPL
continues to derive substantial portion of its revenues from its
largest customer-Hewlett Packard which accounts for more than 33%
of the Company's revenues. Going forward, RTPL's ability to
service its debt obligations in a timely manner, scale up the
operations, improve its working capital management, and maintain
healthy profit margins would remain key rating sensitivities.

Robosoft Technologies Private Limited promoted as a proprietorship
firm in 1996 at Udupi, Karnataka, by Mr. Rohith Bhat and
subsequently incorporated as a private limited company in 2005, is
primarily into the business of development of software
applications for Mac OS platform. RTPL has a team of around 370
software professionals working for the Company. The Company offers
its products / services through four business divisions, viz.,
software services, software utilities, gaming products, and
enterprise applications. The software services segment is the
largest business segment in the Company accounting for around 90
per cent of RTPL's revenues in 2012-13.

Recent Results

According to unaudited financial results, the Company reported a
profit after tax (PAT) of INR1.7 crore on an operating income of
INR25.7 crore during 2012-13 as against a PAT of INR0.4 crore on
an operating income of INR20.6 crore during 2011-12.


SAHASRALINGESHWARA POWER: ICRA Rates INR64cr Term Loan at 'B'
-------------------------------------------------------------
ICRA has assigned a long- term rating of '[ICRA]B' to the INR64.00
Cr term loan facilities of Sahasralingeshwara Power Private
Limited.

                             Amount
   Facilities               (INR Cr)   Ratings
   ----------               --------   -------
   Long term Fund based       64.00    [ICRA]B (Assigned)
   limits (Term Loan)

The assigned rating incorporates the execution risks, including
risks of cost and time overruns inherent in under construction
hydro power projects as well as hydrology risks as the project is
not covered under any deemed generation clause in case of loss of
generation due to shortage of water. Given that revenues of the
company are linked to actual unit sales, this exposes the project
to variable cash flows arising out of hydrological risks. The
rating is also tempered by the leveraged project funding with debt
to equity mix of -2.3:1 and corresponding financial risk involved
in executing the project. The rating also reflects the high
capital cost of this project, and consequently the company's
ability to tie up customers at remunerative tariff is critical for
the project viability.

However the rating is strengthened by the general supply-demand
gap in the power sector which is likely to ensure healthy takeoff
notwithstanding the fact that PPAs are not tied up at the moment,
location of the plant in Karnataka state where there are
relatively more supportive regulations for open access and banking
for hydro power projects, as well as access to the financial and
managerial strengths and technical knowhow of Soham Group (which
already has 37 MW of operational assets-including 22 MW of power
sold via open access-and 29 MW of assets under various stages of
development). The project is also eligible for INR3.50 Cr of
capital subsidies which is expected to improve the viability of
NMHS to some extent.

Going forward, ability of the company to achieve COD without any
significant time and cost over runs will be the key rating
drivers.

Soham Group was promoted in the year 1961 and is currently headed
by Sadananda Shetty who is the former Chairman & Managing Director
of Vijaya Bank. With the 22 MW MGHE TRS Scheme having been
commissioned by one of its subsidiaries (APPL) followed by the 15
MW SHP through another subsidiary (SMPPL) and 3 other projects on
hand, the main focus of the group is renewable energy in India.

APPL via its 100% subsidiary SPPL is currently undertaking the
construction of a mini hydel project-Nekkiladi Mini Hydel Scheme
(NMHS)-near Nekkiladi Village. The project is a gated diversion
weir being built across Kumaradhara River with a capacity of 12.5
MW of power generation per annum. The expected project cost is
estimated to be INR91.67Cr, with the civil works being undertaken
by Mukthar Infrastructure Private Limited, Electro Mechanical
Works provided by Boving Fouress Private Limited and Hydro
Mechanical works by Meclin Infras Private Ltd. The project is
expected to be operational by July 2014.


SANJEEVANI HEALTH: ICRA Rates INR5.50cr LT Loan at '[ICRA]B'
------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B' to the INR5.50
crore bank facilities of Sanjeevani Health Care.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Fund based limits       5.50     [ICRA]B assigned
   (Long term)

The assigned rating is constrained by the limited track record and
small scale of operations of Sanjeevani Health Care with the 50
bed hospital starting its operations only in November 2012. The
assigned rating also takes into account, the absence of key
inpatient revenue contributing departments like Cardiology,
Oncology and Nephrology, limiting the range of services that can
be provided at the hospital. ICRA also notes that the ability of
the hospital to recruit full time medical talent in the key
departments and empanel itself with the state sponsored health
care schemes like Andhra Pradesh government's Arogyasri and
Central Government Health Scheme (CGHS) will remain critical for
scaling up its size of operations and to ensure timely debt
servicing. However, the assigned rating favorably factors in the
experience and reputation of the promoter doctors in Kurnool,
strong presence of the hospital in Neurology/Neuro-surgery,
Critical care and Trauma departments providing secondary and
emergency medical care, in a modern facility equipped with latest
equipment. The rating is also supported by the benefits accrued to
SHC being an early mover among the corporate hospitals in Kurnool
with the promoter doctors having their own, large, established
patient pools. Going forward, the ability of the hospital to
increase its bed occupancy and size of operations will remain the
key rating sensitivity.

SHC was incorporated as a partnership firm in May 2009 by Dr. D
Srinivasulu, an anaesthesiologist and critical care specialist,
Dr. M Bhanu Murthy, a General surgeon with expertise in Plastic
and reconstructive surgery, Dr. K Narasaram, a Neurologist
specializing in brain stroke, epilepsy, neuro infections and
peripheral neuropathy, Dr. Venkata Swamy, a Neurologist
specializing in epilepsy, neuro infections and brain stroke, and
Dr. M Vijaya Kumar an Interventional Radiologist. SHC runs a 50
bed hospital by the name of Sanjeevani Institute of Medical
Sciences in Kurnool. The hospital commenced its operations from
November 2012.


SIDDHI COTTON: ICRA Reaffirms 'B+' Rating on INR8cr Cash Credit
---------------------------------------------------------------
ICRA has reaffirmed an '[ICRA]B+' rating to INR8.00 crore fund
based cash credit facility of Siddhi Cotton Ginning & Pressing
Private Limited. ICRA has also withdrawn '[ICRA]B+' rating
assigned to INR0.25 crore term loan facility of SCGPPL.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Cash Credit Limit       8.00     [ICRA]B+ reaffirmed
   Term Loan               Nil      [ICRA]B+ withdrawn

The rating continues to be constrained by the weak financial
profile of the company as reflected by modest scale of operations,
thin profit margins as a result of limited value addition and lack
of diversification, high gearing and weak coverage indicators. The
rating is further constrained by vulnerability of profitability to
raw material prices, which are subject to seasonality and crop
harvest and regulatory risks.

The rating, however, favorably considers the long experience of
the promoters in the cotton industry and favorable location of the
company giving it easy access to high quality raw cotton.

Siddhi Cotton Ginning & Pressing Private Limited was set up in
2007 as a private limited company by family members and relatives
having a long experience in cotton industry. The cotton ginning
and pressing unit is located at Rasnal (Dhasa), Bhavnagar. It is
also engaged in trading activities of cotton bales and cottonseed.
At present, the firm has installed 48 ginning machines and 1
pressing machine.

Recent Results

For the year ended March 31, 2012, the company reported an
operating income of INR28.94 crore with profit after tax (PAT) of
INR0.09 crore. Further during FY 2013, the company reported an
operating income of INR35.80 crore with profit before tax (PBT) of
INR0.20 crore (as per unaudited provisional numbers).


SIDDHI COTTON INDUSTRIES: ICRA Reaffirms 'B+' Cash Credit Rating
----------------------------------------------------------------
ICRA has reaffirmed an '[ICRA]B+' rating to INR12.00 crore fund
based cash credit facility of Siddhi Cotton Industries.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Cash Credit Limit       12.00    [ICRA]B+ reaffirmed

The rating is constrained by modest scale of operations with weak
financial profile of the firm as reflected by low profitability,
adverse capital structure and weak debt coverage indicators. The
rating is further constrained by vulnerability of profitability to
raw material prices, which are subject to seasonality, crop
harvest and regulatory risks. The rating also incorporates the
limited value addition and highly competitive industry structure
constraining margins.

The rating, however, favorably consider the long experience of the
promoters in the cotton industry and favorable location of the
firm giving it easy access to high quality raw cotton.

Siddhi Cotton Industries was set up in 1999 as a partnership firm
by family members and relatives having a long experience in cotton
industry and their cotton ginning and pressing unit is located at
Vijapur, Mehsana. It is also engaged in trading activities of
cotton bales and cottonseed. At present, the firm has installed 40
ginning machines and 1 pressing machine.

Recent Results

For the year ended March 31, 2012, the firm reported an operating
income of INR56.45 crore with profit after tax (PAT) of INR0.30
crore. Further during FY 2013, the firm reported an operating
income of INR69.20 crore with profit before tax (PBT) of INR0.59
crore (as per unaudited provisional numbers).


SOHAM PHALGUNI: ICRA Rates INR35.23cr Term Loan at '[ICRA]B'
------------------------------------------------------------
ICRA has assigned a long- term rating of '[ICRA]B' to the INR35.23
Cr term loan facilities of Soham Phalguni Renewable Energy Private
Limited.

                           Amount
   Facilities             (INR Cr)   Ratings
   ----------             --------   -------
   Long term Fund based     35.23    [ICRA]B (Assigned)
   limits (Term Loan)

The assigned rating incorporates the execution risks, including
risks of cost and time overruns inherent with under construction
hydro power projects as well as hydrology risks as the project is
not covered under any deemed generation clause in case of loss of
generation due to shortage of water. Given that revenues of the
company are linked to actual unit sales, this exposes the project
to variable cash flows arising out of hydrological risks. The
rating is also tempered by the leveraged project funding with debt
to equity mix of -2.3:1 and corresponding financial risk involved
in executing the project. ICRA also notes that Soham Renewable
Energy India Pvt Ltd is the flagship company of the Soham group of
companies, which has significant expansion plans in relation to
current size of operations.

However the rating is strengthened by the PPA arrangement with
MESCOM which is going to ensure healthy offtake, as well as access
to the financial and managerial strengths and technical knowhow of
Soham Group (which already has 37 MW of operational assets-
including 22 MW of power sold via open access-and 29 MW of assets
under various stages of development). The project is also eligible
for INR3.10 Cr of capital subsidies which is expected to improve
the viability of MMHS to some extent. ICRA notes that project is
already in the advanced stage of commissioning, and is expected to
be operational by September 2013.

Going forward, ability of the company to achieve COD without any
significant time and cost over runs and meet the designed
performance parameters will be the key rating drivers.

Soham Group was promoted in the year 1961 and is currently headed
by Sadananda Shetty who is the former Chairman & Managing Director
of Vijaya Bank. With the 22 MW MGHE TRS Scheme having been
commissioned by one of its subsidiaries (APPL) followed by the 15
MW SHP through another subsidiary (SMPPL) and 3 other projects on
hand, the main focus of the group is renewable energy in India.

SREIPL is currently undertaking the construction of a mini hydel
project-Mulibettu Mini Hydel Scheme (MMHS)-located 1 km east from
the village of Mannapitlu, Karnataka. The project is a gated
diversion weir being built across the river Phalguni with a
capacity of 10.5 MW of power generation per annum. The expected
project cost is estimated to be INR56.32 Cr, with the civil works
being undertaken by Shakthi Constructions Pvt Ltd, Electro
Mechanical Works provided by Boving Fouress Private Limited and
Hydro Mechanical Works provided by Narayan Engineers Private
Limited. The project is in advanced stages of development and is
expected to be commissioned by September 2013.


SRI ADITYA: ICRA Upgrades Ratings on INR32.5cr Loans to 'B+'
------------------------------------------------------------
ICRA has upgraded the long term rating outstanding on the INR32.50
crore fund-based facilities of Sri Aditya Homes Private Limited to
'[ICRA]B+' from '[ICRA]B' earlier.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Working capital          4.00    Upgraded from [ICRA]B to
   demand loan                      [ICRA]B+

   Term loans              10.50    Upgraded from [ICRA]B to
                                    [ICRA]B+

   Unallocated             18.00    Upgraded from [ICRA]B to
                                    [ICRA]B+

The rating revision factors in significant increase in the
bookings and collections for the ongoing projects which has
resulted in improved liquidity for SAHPL. The 3 ongoing projects
of the company in Hyderabad are nearing completion hence
construction related risks are low. The bookings for the ongoing
projects have been strong as the largest project "Aditya Sunshine"
has bookings of over 90% while the other 2 projects being fully
sold out. The rating continues to draw comfort from the
established track record of the company in the residential real
estate market and company's land bank at prime locations in
Hyderabad. The rating is however constrained by the company's
modest scale of operations, concentration of projects in
Hyderabad, and the relatively large scale of upcoming debt-funded
developments proposed. ICRA also notes that AD's upcoming projects
are exposed to regulatory risks as the required approvals are yet
to be taken.

Sri Aditya Homes Private Limited was incorporated in the year 1994
and was promoted by Mr. Kota Reddy. The company since inception
has completed over 30 projects in housing and commercial segments
with a total built up area of -2 msft (million square feet), of
which projects the projects in commercial segment constitute about
0.18 msft (-9% of total development). Most of the past projects
were located in prime locations of Hyderabad. SAHPL has currently
3 projects under execution in residential segment with a total
constructed area of 0.87 msft under JD mode of development of
which 0.74 msft is SAHPL's share.

SAHPL recorded net profit of INR3.19 crore on a gross turnover of
INR84.95 crore in FY 13 (Unaudited figures) when compared to
INR1.01 crore and INR36.97 crore respectively in FY 12.


SUPRIME STEEL: ICRA Places 'B+' Rating on INR2cr Fund Based Loans
-----------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' to the INR2.00
crore fund based facility of Suprime Steel Industries. ICRA has
also assigned a short-term rating of '[ICRA]A4' to the INR3.50
crore non-fund based facility of Suprime.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Fund based facilities   2.00     [ICRA]B+ assigned

   Non-fund based          3.50     [ICRA]A4 assigned
   Facilities

The assigned ratings consider the experience of promoter in the
steel trading business for over two decades, the firm's healthy
growth in revenue during 2012-13 and its healthy return on capital
employed. The ratings also consider the highly competitive nature
of steel trading business which restricts scope for improvement in
profitability, the vulnerability of the firm's accruals to
fluctuations in foreign exchange rates, the small scale of its
operations which restricts financial flexibility and the debt
funded capital expenditure, which is likely to stretch capital
structure and coverage metrics to an extent. While the cyclical
steel industry is passing through a weak phase at present owing to
the economic slowdown, favourable demand outlook for steel
products in the long-term is expected to drive business growth.

Established in 1993, Suprime is primarily engaged in trading of
steel products like steel scrap, ingots, billets and structural
steel, in Kerala. The firm is also engaged in manufacture of TMT
bars at its manufacturing unit (with a capacity of 12 tonnes per
day) located in Kerala, on job-work basis for its group company
(Mascom Steel (India) Private Limited). The firm is promoted by
Mr. M. K. Abdul Kareem, who has experience in steel trading
business for over two decades.

Recent results

SSI reported a net profit of INR0.3 crore on an operating income
of INR23.1 crore during 2012-13 (according to unaudited results),
against a net profit of INR0.1 crore on an operating income of
INR13.2 crore during 2011-12.


VEDANTA RESOURCES: S&P Assigns 'BB' Rating to US$1.2BB Facility
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' issue rating
to a US$1.2 billion senior secured term loan facility (Term Loan
A) guaranteed by Vedanta Resources PLC (foreign currency
BB/Negative/--).  Twin Star Mauritius Holdings Ltd., a wholly
owned subsidiary of Vedanta, issued the loan.  Vedanta used the
proceeds from the loan to refinance the debt it had borrowed for
the acquisition of Cairn India Ltd.

Vedanta's "fair" business risk profile reflects the company's good
business diversity.  Vedanta has a good cost position in the zinc
and oil businesses.  However, S&P believes risks related to the
company's India operations remain high.  Vedanta's "aggressive"
financial risk profile reflects S&P's view of the company's debt-
funded growth and financial strategy that places much of its debt,
but very limited cash, at the holding company.  Vedanta's
performance in the fiscal year ended March 31, 2013, was in line
with S&P's expectations, with strong EBITDA generation at Cairn.



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


MANILA ELECTRIC: S&P Raises CCR to 'BB'; Outlook Stable
-------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised its
long-term corporate credit rating on Philippines-based power
utility Manila Electric Co. (Meralco) to 'BB' from 'BB-'.  The
outlook is stable.  At the same time, S&P raised the long-term
ASEAN regional scale rating on the company to 'axBBB-' from
'axBB+'.

"We raised the rating on Meralco because we expect the company's
cash flows to improve over the next two years," said Standard &
Poor's credit analyst Rajiv Vishwanathan.  "Our view is based on
our forecast of robust sales, and a stable regulatory framework in
the Philippines, which will enable the company to fully recover
all pass-through charges  on time.  These charges include
generation, transmission, taxes, system loss, and universal
charge."

S&P raised its assessment of Meralco's financial risk profile to
"significant" from "aggressive."  Meralco's lower imputed debt,
higher cash flows, and strong cash balance underpin the
improvement in the financial risk profile.  Under S&P's criteria,
it applies a risk factor to the net present value of Meralco's
fixed obligations (capacity payments) under its power purchase
agreements (PPA).  S&P lowered the risk factor to 25% from 50%
because it has higher confidence in stable regulation to allow the
company to recover all costs related to the PPA.  S&P estimates
this will result in lower imputed debt of about Philippine peso
(PHP) 50 billion for Meralco and will support the improvement in
the financial risk profile.

Meralco's EBITDA is likely to continue to grow steadily in 2013
mainly because of an increase in customers.  Meralco's dominant
position in power distribution in the Philippines supports the
company's "fair" business risk profile.

S&P believes Meralco's re-entry into power generation could weaken
its financial risk profile if it pursues an aggressive strategy
coupled with high dividend payouts.

"The stable outlook incorporates our expectation that the
regulatory regime will remain steady and that Meralco's sales will
stay strong over the next 18-24 months.  We also expect that
Meralco will expand its power generation business at a balanced
pace and will prudently fund the expansion, such that it does not
hurt the forecast improvement in the company's financial
performance.  Further, we anticipate that Meralco will manage
dividend payout within its policy levels of 50% of consolidated
core net income of the year," S&P said.

S&P could lower the rating if: (1) regulatory changes adversely
affect Meralco; (2) demand weakens significantly; (3) Meralco's
expansion in power generation is more aggressive or results in
higher debt incurrence than S&P anticipated; or (4) the company is
aggressive in dividend payments to shareholders.  The debt-to-
EBITDA ratio deteriorating to about 3x-3.5x on a sustained basis
(after adjusting for PPA obligations) could be a downgrade
trigger.

Prospects for an upgrade appear limited over the next 12-24
months, given Meralco's significant planned capital spending and
the execution risks associated with expansion into the generation
business.  An improvement in Meralco's cash flows and a
significant change in business risk profile could positively
affect the rating.  This assumes that the company maintains
financial discipline while investing in its power generation
projects, including more conservative dividend payout to preserve
cash, if required.



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


SINGAPORE FLYER: Gets Numerous Offer, Likely to Stay in Singapore
-----------------------------------------------------------------
The Star Online reports that both local and overseas parties have
expressed interest in buying the Singapore Flyer, less than three
weeks after the attraction at Marina Promenade was placed under
receivership by its main lender.

Tim Reid of the Flyer's appointed recovery firm Ferrier Hodgson
declined to reveal the number of interested parties and said that
it was too early for concrete offers at this stage, according to
The Star Online.

It is "extremely unlikely" that the Flyer will be shipped to
another country even if purchased by an overseas buyer, Mr. Reid
said, adding that the attraction was a "fantastic asset to the
country," the report discloses.

The report relates that the company behind the observation wheel,
Singapore Flyer Pte Ltd, was placed under receivership on May 28
for failing to meet financial obligations to a bank, its main
lender.  The report notes that the announcement came five years
after the Flyer was opened to the public in March 2008.

The report discloses that experts put its problem down to the lack
of a local customer base.  Steep discounts given to travel
agencies to entice them to include the Flyer in their tours have
also eaten into its profit margins, the report relates.

The report adds that business at the Flyer has gone on as usual
since the news of its receivership broke.



====================
S O U T H  K O R E A
====================


STX GROUP: Creditors Inject Additional KRW250BB Liquidity
---------------------------------------------------------
Yonhap News reports that creditors of ailing STX Offshore &
Shipbuilding on Friday injected an additional KRW250 billion
(US$216 million) in liquidity into the shipbuilder in a bid to
tide it over during its cash crunch, officials said.

The news agency relates that main creditor Korea Development Bank
(KDB) said that the creditors pumped the emergency funds to STX
Group's troubled shipbuilder following the injection of KRW600
billion made in late April.

STX Pan Ocean sought court receivership after Korea Development
Bank, the main creditor and Pan Ocean's second-biggest
shareholder, decided against buying the company from STX Group,
Bloomberg News reported.

STX Group -- with businesses ranging from shipbuilding to
components that go into vessels -- is the largest shareholder of
Seoul-based Pan Ocean.  The parent has been trying to raise
KRW2.5 trillion (US$2.2 billion) by selling stakes in units as a
slump in bulk shipping rates caused ship orders to tumble,
Bloomberg said.

STX Offshore and two other units of the STX Group had voluntarily
sought debt rescheduling with their creditors, Bloomberg noted.


* Moody's Outlook on Korean Banks Remain Stable
-----------------------------------------------
Moody's Investors Service says that the outlook for the Korean
banking system remains stable, reflecting the baseline assumption
that Korea's economy will continue to expand, as the effects of an
expansionary fiscal policy impact the real economy.

"Our expectation of a modest increase in GDP -- 2%-3% in 2013 and
3%-4% in 2014 -- should ensure that credit growth in the low
single digits can be sustained, contributing to the maintenance of
current adequate levels of capitalization, without stressing the
banks' improving funding and liquidity profiles," says Hyun Hee
Park, a Moody's Analyst.

Park was speaking on the release of Moody's latest "Banking System
Outlook Korea", which expresses Moody's expectation of how bank
creditworthiness will evolve in this system over the next 12-18
months. Moody's rates 18 operating banks in Korea, covering 100%
of system assets, and with their bank financial strength ratings
and adjusted baseline credit assessment (BCA) averaging C-/baa2.

However, Moody's also notes that Korean banks have been suffering
from sustained asset quality pressure since the global financial
crisis, and expects this pressure to persist in the coming 12-18
months due to i) weak global demand, especially from the developed
markets and China, and ii) the recent depreciation of the JPY,
which exerts pressure in terms of price competitiveness on Korean
exporters.

Specific areas where Moody's expects to see continuing credit
quality pressure are in loans to the four troubled industries of
construction, property project financing, shipbuilding, and
shipping.

At the same time, the relatively strong financial health and
improved underlying competitiveness of the corporate sector --
combined with government policies to support both the economy and
struggling industries -- will mitigate the impact on the banks'
asset quality.

Although Tier 1 capital ratios are declining, due to capital
rising more slowly than risk weighted assets (RWA), the fall has
been tempered by improved prudential regulations. Strengthened
regulations include a requirement to maintain contingent credit
loss reserves and limits on dividends. These factors have together
assisted in improving the loss-absorption capacity of the banks.

However, tepid loan growth will pressure profitability levels, and
an environment of low domestic interest rates will lead to further
contraction in lending margins. President Geun-hye Park's pro-
consumer stance will also pressure the industry to make
concessions on retail loan rates and fees.



                             *********

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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