TCRAP_Public/130626.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

           Wednesday, June 26, 2013, Vol. 16, No. 125


                            Headlines


A U S T R A L I A

CASTERTON STATION: Receivers Seize Two Cattle Stations
DRILLING & GROUTING: Ferrier Hodgson Appointed as Administrators
DTD ENGINEERING: New Operators Set to Rescue Company
ELIZA PARK: Sun International Acquires Business
NATIONAL BUILDPLAN: Staff to Get Entitlements as DOCA Gets OK

SPRING GULLY: Creditors May Receive Full Payment
WOLUMLA HOTEL: In Receivership, Business Operations Until June 27
* Moody's Outlook on Australian Airport Sector Remains Stable


C H I N A

SUNTECH POWER: European Subsidiary Granted Definitive Moratorium


H O N G  K O N G

* Moody's Outlook on the Hong Kong Banking Sector is Negative


I N D I A

A-1 HEIGHTS: CRISIL Assigns 'B' Ratings to INR100MM Loans
COMMANDER VITRIFIED: CRISIL Puts 'BB' Ratings on INR325MM Loans
DASMESH MECHANICAL: CRISIL Assigns 'D' Ratings to INR87MM Loans
EASTERN GOURMET: CRISIL Assigns 'B' Ratings to INR74.7MM Loans
GEE CEE: CRISIL Assigns 'B+' Ratings to INR246.9MM Loans

GYAN GANGA: CRISIL Assigns 'BB+' Rating to INR96MM Term Loan
KEJ MINERALS: CRISIL Assigns 'B+' Ratings to INR91MM Loans
METCAST METALS: CRISIL Assigns 'D' Ratings to INR90MM Loans
MODERN STEELS: CRISIL Cuts Ratings on INR1.28BB Loans to 'B+'
SAKET PROMOTERS: CRISIL Rates INR450MM LT Bank Loan at 'B+'

SANMATI COAL: CRISIL Rates INR70MM Cash Credit at 'CRISIL B+'
SURYABALAJI STEELS: CRISIL Puts 'B+' Ratings on INR139.4MM Loans
VIRAT ALLOYS: CRISIL Cuts Ratings on INR93.4MM Loans to 'B+'
YENEPOYA INSTITUTE: CRISIL Assigns BB Ratings to INR90MM Loans


I N D O N E S I A

* Bank Indonesia Summoned Over 4 Troubled National Banks Issues


J A P A N

CITIGROUP GLOBAL: S&P Affirms 'BB+' Rating on Jr. Sub. Note Prog.
* MUFG Fine Highlights Japan Banks' Overseas Growth Risks


S O U T H  K O R E A

MAGNACHIP SEMICONDUCTOR: Moody's Lifts CFR, Sr. Bond Rating to B1


X X X X X X X X

* Moody's Issues New Report on Risks from Emerging Markets
* Upcoming Meetings, Conferences and Seminars


                            - - - - -


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


CASTERTON STATION: Receivers Seize Two Cattle Stations
------------------------------------------------------
Matthew Cranston at The Land reports that the Supreme Court of
Queensland has issued a warrant for the seizure of two cattle
stations at Hughenden in central Queensland, after an application
from receivers PPB Advisory representing the ANZ Banking Group.

The Land relates that PPB has been given until next month to take
control of Casterton Station and Burslem Station, stoking fears
that more receiverships in the struggling cattle industry in
Queensland and Northern Territory could be on the way.

The Land, citing The Australian Financial Review, said a warrant
notice issued on June 13 disclosed that respondents David and
Alexander Browning were restrained from entering the properties
"until seven days after the date of completion of any sale of
Burslem Station and Casterton Station," The Land reports.

The report says the warrant follows a prolonged battle between the
farmers, who were unavailable for comment, and the bank. The Land
quotes bank's spokesman as saying that: "Taking possession of a
property is always a resort when all other avenues have been
exhausted."


DRILLING & GROUTING: Ferrier Hodgson Appointed as Administrators
----------------------------------------------------------------
Darren Weaver -- darren.weaver@fh.com.au -- Ben Johnson --
darren.weaver@fh.com.au -- and Andrew Saker --
darren.weaver@fh.com.au -- of Ferrier Hodgson were appointed Joint
and Several Administrators of Drilling & Grouting Services Pty Ltd
on June 11, 2013, pursuant to Section 436A of the Corporations Act
2001.

Drilling & Grouting Services Pty Ltd was established in Western
Australia in 1990 and operated nationally and across South-East
Asia.

The Company utilises a fully equipped workshop and depot in Perth,
Western Australia that performs the design and fabrication of
specialised drill rigs and grouting system and essential repairs
and maintenance.


DTD ENGINEERING: New Operators Set to Rescue Company
----------------------------------------------------
The Border Mail reports that DTD Engineering and its 56 employees'
jobs are on the brink of being saved.

The Border Mail relates that administrator Chris Chamberlain
confirmed on June 24 following a second creditors' meeting a new
ownership structure had agreed to take on the ailing business
subject to final approval from the ANZ Bank.

The new operators include two former owners, Tom Lappin and David
Larkin, and Paul Raethel and Gary Cresswell, the report relays.

Mr. Cresswell is the general manager of DTD Engineering, the
report says.

According to the report, Mr. Chamberlain said the creditors agreed
to support the proposed deed of company arrangement struck in
recent days.

DTD Engineering is a major supplier of stainless and carbon steel
fabrications and provides onsite mechanical project work to
clients in the pulp and paper products industry, wood mill plants,
water treatment, food processing and associated industries.

Thurgoona-based DTD Engineering went into voluntary administration
in May 2013 with debts of about AUD1 million.  Chris Chamberlain
and Steven Priest of Chamberlains SBR have been appointed as
administrators.


ELIZA PARK: Sun International Acquires Business
-----------------------------------------------
BRW News reports that Eliza Park, the iconic horse stud that
collapsed into receivership in mid-June, has been sold to a Hong
Kong racing group and will retain ownership of its crack stallion
Bel Esprit, the sire of undefeated champion Black Caviar.

The business, which was placed in receivership by NAB has been
purchased by Sun International, according to BRW News.

The report notes that Sun International had been working with the
previous owner of Eliza Park, Lee Fleming, in the months before
the receivership.

Sun International is part of a group owned by Cheng Ting Kong, a
businessman who races horses throughout Asia, most of which have
the word "sunshine" in their name.

The report relates that the group purchased more than $2 million
worth of horses at the recent Magic Millions National Weanling
Sale, working in conjunction with Eliza Park.

The report discloses that the business will be renamed Eliza Park
International by the new owners.

A sale price for the business has not been disclosed.


NATIONAL BUILDPLAN: Staff to Get Entitlements as DOCA Gets OK
-------------------------------------------------------------
Catherine Clifford at ABC News reports that employees of the
collapsed regional construction company, National Buildplan, will
be paid all of their entitlements after creditors signed off on a
Deed of Company Arrangement (DOCA).

According to ABC News, the Armidale-based company owes
AUD58-million to more than 1,000 unsecured creditors across three
states, many of them regional sub-contractors.

ABC News says the Deed Administrator will have control of the
Company for a period of 30 days after execution of the DOCA, which
formally took place on June 20.

The Director will now regain control at the end of July under
strict monitoring to fulfill obligations under the Corporations
Act, the report notes.

According to the report, administrator Peter Krejci, from BRI-
Ferrier, said employees will be paid their entitlements, but it
may take up to six months until the targeted sum of AUD5-million
set out in the Deed is achieved.

"Under the DOCA that's been accepted by creditors we're
anticipating coming into funds to meet the claims of employees in
full," the report quotes Mr. Krejci as saying.  "However, having
accepted the DOCA, the estimate is they will get the 100 cents in
the dollar albeit having to wait a little while."

All but nine of the company's 180 employees remain, with the bulk
of them retrenched in mid-April, the report notes.

                       About National Buildplan

Construction firm National Buildplan Group entered administration
in early April 2013.  At that time, it had seven offices and 180
staff in New South Wales, Queensland and Western Australia.

Martin Green and Peter Krejci of BRI Ferrier have been appointed
as voluntary administrators of National Buildplan Group.  The
company in the interim has ceased work on its construction
projects.  The family-owned group posted a AUD2.39 million profit
in the 2011-12 financial year before racking up a AUD6.28 million
loss over the next nine months.

Law firm Everingham Solomons represents a number of
subcontractors.


SPRING GULLY: Creditors May Receive Full Payment
------------------------------------------------
ABC News reports that Spring Gully and its administrator said
creditors can expect to be paid in full, in installments, if they
approve a management plan at a meeting on July 1.

Copies of a deed of company arrangement were sent to creditors
last week by administrator Austin Taylor, the report relays.

They outlined a return to profitable levels for Spring Gully's
normal business operations due to strong sales and said creditors
would get an initial downpayment then quarterly payments until the
debt was cleared, according to ABC News.

ABC News relates that Spring Gully managing director Kevin Webb
said strong support from shoppers had allowed the offer to repay
100 cents in the dollar.

"The support that we've been given by our consumers, everybody to
be honest, through the corporate world, the media, through our
customers, other retailers and I think we all know that the
support has been absolutely amazing for Spring Gully," ABC News
quotes Mr. Webb as saying.

"Through that support, and what's been happening over the last two
months as we've traded very strongly, we've been able to put
together this proposal that, if the creditors decide to accept it
on the first of July, we will then sign that with our creditors
and move forward."

Spring Gully Foods is one of South Australia's iconic food
businesses.  The company specialises in jams, chutneys, pickles,
sauces and honey.

The fourth generation Spring Gully Foods went into voluntary
administration April 11, 2013, with debts of more than
AUD3 million.  According to ABC Rural, managing director
Kevin Webb said its financial losses are due to a dramatic fall in
retail sales.


WOLUMLA HOTEL: In Receivership, Business Operations Until June 27
-----------------------------------------------------------------
Merimbula News reports that the Wolumla Hotel, Wolumla is
understood to be in receivership and will be serving last orders
tomorrow evening, Thursday, June 27.  Credit watch agencies have
listed the hotel as under external administration and/or
controller appointed, according to Merimbula News.

Merimbula News notes that the bank holding the mortgage on the
property has called in the receiver although it is unclear whether
the bank will move to liquidation or appoint a manager in the hope
of getting a return.


* Moody's Outlook on Australian Airport Sector Remains Stable
-------------------------------------------------------------
Moody's Investors Service has maintained a stable outlook on the
rated Australian airport sector on the expectation that aggregate
sector revenues will continue to grow, but that such growth is
being tempered by growing macro-economic challenges.

"We expect softening domestic economic conditions to result in
revenue growth falling towards the lower end of our expected range
of mid-to-high single digit percentages," says Arnon Musiker, a
Moody's Vice President and Senior Analyst. "That said, macro-
economic fundamentals, including employment and GDP growth, should
support our base case assumption for passenger volume growth - the
key driver for airport revenues - of 3 - 5% over the next 12-18
months."

Musiker was speaking at the release of a new Moody's report titled
"Stable Outlook, but Decreased Capex Visibility Over Medium Term",
which details Moody's expectation for the fundamental business
conditions in the sector over the next 12-18 months.

Moody's also expects China's economy to grow in the 7.5% range
after a soft landing in 2012. This should continue to underpin
growth in passengers from China and Asia more generally, the
sector's highest-growth markets.

Moody's expects airports undertaking capital expansions to
maintain manageable financial metrics over the next 12-18 months,
even though higher capex will increase debt levels for most
airports. Over the longer term, Moody's believes there is less
visibility on capital expansions.

"We see increasingly protracted negotiations between airlines and
airports on funding longer-term capital expansion projects. In the
absence of certainty, we expect airports to either defer multi-
year capex programmes, or potentially invoke regulatory processes
which could increase business risk" says Musiker.

"A failure of airports to invest in new capacity will likely lead
to declining service levels and increase regulatory risk. That
said, we believe that the airline and airport sectors have a
commonality of interest in airports investing in capacity to
accommodate growing passenger volumes. Moody's base case
expectation is therefore that the existing light handed regulatory
regime will remain in place"

Moody's does not anticipate issuers in the sector experiencing
setbacks in executing funding plans, as appetite for the sector's
debt remains solid, notwithstanding volatility seen in credit
markets. The sector has also prefunded around AUD600 million of
the AUD2.1 billion of debt maturing over the outlook report, which
further mitigates refinancing risk

Moody's rates five airports in Australia: Adelaide, Brisbane (Baa2
Stable), Melbourne, Perth and Sydney. These airports accounted for
an estimated 77% of domestic passenger movements and 94% of
international passengers during 2012.



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C H I N A
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SUNTECH POWER: European Subsidiary Granted Definitive Moratorium
----------------------------------------------------------------
Suntech Power Holdings Co., Ltd.'s principal operating subsidiary
in Europe, Suntech Power International Ltd., has been granted a
definitive moratorium on creditor claims from the judicial
authorities in Schaffhausen, Switzerland.  The moratorium is for a
six month period and may be extended.

Previously, on April 9, 2013, SPI had been granted a provisional
moratorium for two months on creditor claims as a result of over-
indebtedness.  The majority of SPI's debt is Suntech inter-company
debt.

"SPI has already met important milestones in the restructuring
process.  The definitive moratorium allows SPI time to restructure
debt and reach an agreement with creditors.  SPI will continue
normal operations during this process," said David King, Suntech's
CEO.

Other than the insolvency and restructuring of Suntech Holdings'
Chinese subsidiary Wuxi Suntech Power Co., Ltd., and the SPI
composition proceedings, Suntech Holdings is not aware of any
similar proceedings regarding any of its other entities.

                          About Suntech

Wuxi, China-based Suntech Power Holdings Co., Ltd. (NYSE: STP)
produces solar products for residential, commercial, industrial,
and utility applications.  With regional headquarters in China,
Switzerland, and the United States, and gigawatt-scale
manufacturing worldwide, Suntech has delivered more than
25,000,000 photovoltaic panels to over a thousand customers in
more than 80 countries.

As reported by the TCR on March 20, 2013, Suntech Power Holdings
Co., Ltd., has received from the trustee of its 3% Convertible
Notes a notice of default and acceleration relating to Suntech's
non-payment of the principal amount of US$541 million that was due
to holders of the Notes on March 15, 2013.  That event of default
has also triggered cross-defaults under Suntech's other
outstanding debt, including its loans from International Finance
Corporation and Chinese domestic lenders.



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


* Moody's Outlook on the Hong Kong Banking Sector is Negative
-------------------------------------------------------------
Moody's Investors Service has changed to negative from stable the
outlook for the Hong Kong banking system. The change in outlook
reflects Moody's concerns over persistent negative real interest
rates and potential property bubbles in the territory, and banks'
growing exposures to Mainland China, all of which may contribute
to adverse future operating conditions for Hong Kong banks.

"Real interest rates in Hong Kong have been negative since early
2009, and are expected to remain so over the outlook horizon, as
central banks in major developed markets maintain easy monetary
policies," says Sonny Hsu, a Moody's Vice President and Senior
Analyst.

Persistent low interest rates and limited land supply have driven
up asset prices since early 2009 and led to higher consumer and
corporate leverage.

"The value of residential, commercial, and industrial real estate,
parking spaces and taxi licenses have all more than doubled since
early 2009 and reached record levels in the past year," adds Hsu.

Hsu was speaking on Moody's just released Banking System Outlook
for Hong Kong.

According to the report, the nature of Hong Kong's banking system
is changing rapidly as banks increase their China-related lending
and Hong Kong companies derive an increasing part of their
business from China.

"Hong Kong banks have substantially increased their Mainland China
exposures to 16.5% of consolidated total assets at end-2012, up
from 9.8% at end-2009," says Hsu.

And this trend is set to continue, as banks expand their onshore
presence and support the cross-border trade and investments of
Mainland corporations.

For the most part, the banks have mitigated risks on their
Mainland lending by seeking collateral for onshore lending and
bank guarantees on offshore lending.

While this is an opportunity for the banks and their corporate
customers, it also entails risks, with future credit performance
likely to be different from past experience.

Moody's risk assessment for the banks stands in contrast to their
broadly stable and strong financial metrics.

Moody's outlook is a directional view on credit quality and should
be understood in the context of Hong Kong banks' high credit
ratings relative to their global peers.

Hong Kong banks continue to rank among the highest-rated banks
globally, and their credit strengths include their solid
capitalization, sound funding profile and liquidity positions, and
established retail franchises.

These strengths create buffers that will protect the banks if and
when their asset quality deteriorates.

Moody's expects stable funding and liquidity conditions to persist
in the next 12-18 months as major central banks maintain easy
monetary policy.

Banks are also expected to report stable profitability over the
outlook horizon, but this partly reflects the fact that
profitability tends to be a lagging indicator as risks build up.

The negative outlook on the banking system contrasts with Moody's
stable outlook on the Hong Kong government's Aa1 rating; the
sovereign outlook places more emphasis on the government's strong
fiscal position.

Moody's rates 17 banks in Hong Kong, which together accounted for
70% of total domestic loans at end-2012. Three banking groups
dominate the system, with a 49% share of domestic loans: The
Hongkong and Shanghai Banking Corp, and its subsidiary Hang Seng
Bank; Bank of China (Hong Kong) Limited; and Standard Chartered
(Hong Kong) Limited. The other banks each have local loan market
shares of between 4% and 0.4%.



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


A-1 HEIGHTS: CRISIL Assigns 'B' Ratings to INR100MM Loans
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of A-1 Heights & Hospitality Private Limited.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Proposed Long-Term       8.5      CRISIL B/Stable
   Bank Loan Facility

   Term Loan               91.5      CRISIL B/Stable

The rating reflects the exposure to risk associated with the
company's ongoing hotel project. The rating reflects the favorable
location of the proposed hotel with proximity to the city centre
and business district of Mumbai and extensive experience of the
promoters in the realty industry.

Outlook: Stable

CRISIL believes that the timely funding, implementation and
stabilization of its ongoing hotel project will influence its
credit profile over the medium term. The outlook may be revised to
'Positive' if the company generates significantly higher than
expected cash accruals, driven by higher occupancy rates and
average room realizations, resulting in improvement in debt
protection metrics. Conversely, the outlook may be revised to
negative if there are significant delays in commissioning of
project impacting its debt servicing ability

A-1 Heights And Hospitality Private Limited (A-1), (part of Milan
Group) is engaged in development of a three star hotel by the name
of 'Aureole Hotel' located at Andheri, Mumbai. The overall
operations of the company are managed by Mr. Nikhil Samani,
promoters of the Milan group.The hotel is expected to be completed
by December 2014.

Milan group is a Mumbai based real estate development group,
promoted by the Samani family. The group is well established in
real estate sector in Mumbai.


COMMANDER VITRIFIED: CRISIL Puts 'BB' Ratings on INR325MM Loans
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to
the bank facilities of Commander Vitrified Pvt Ltd.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Term Loan               222.5     CRISIL BB/Stable

   Proposed Long-Term        7.5     CRISIL BB/Stable
   Bank Loan Facility

   Cash Credit              95.0     CRISIL BB/Stable

   Letter of credit &       25       CRISIL A4+
   Bank Guarantee

The ratings reflect CVPL's low off take risk because of its
agreement with Somany Ceramics Ltd, the extensive experience of
its promoters in the ceramic tile industry and favorable location.
These rating strengths are partially offset by the company's weak
financial risk profile, marked by high gearing, and susceptibility
of its operating margin to raw material price volatility and low
bargaining power in a highly competitive industry.

Outlook: Stable

CRISIL believes that CVPL will continue to benefit over the medium
term from extensive experience of promoters in tiles industry and
its tie-up with Somany. The outlook may be revised to 'Positive'
if the company generates higher-than-expected cash accruals or
there is equity infusion leading to significant improvement in
financial risk profile. Conversely, the outlook may be revised to
'Negative' if CVPL's revenues and profitability are less than
anticipated, or if its working capital requirements are higher
than expected, or higher than expected debt funded capital
expenditure, leading to further weakening of its financial risk
profile.

Incorporated in 2011, CVPL, based in Morbi (Gujarat), manufactures
value-added digital vitrified tiles. The company started
production in June 2012 at its Morbi plant.

CVPL reported a profit after tax (PAT) of INR9.9 million on net
sales of INR500.9 million for 2012-13 (refers to financial year,
April 1 to March 31).


DASMESH MECHANICAL: CRISIL Assigns 'D' Ratings to INR87MM Loans
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of Dasmesh Mechanical Works Pvt Ltd.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Term Loan                14.5     CRISIL D

   Cash Credit              70.0     CRISIL D

   Letter of Credit          2.5     CRISIL D

The ratings reflect instances of delay by DMWPL in servicing its
debt; the delays have been caused by the company's weak liquidity.
DMWPL's weak liquidity is driven by its low cash accruals,
resulting from the decline in its revenues in 2012-13 (refers to
financial year, April 1 to March 31), and its debt-funded capital
expenditure programme undertaken over the past two years.

DMWPL also has a below-average financial risk profile, marked by a
high gearing and weak debt protection metrics, and a modest scale
of operations. Moreover, it is exposed to cyclicality inherent in
the agricultural industry and to changes in government policies.
However, DMWPL benefits from the extensive experience of its
promoters in the harvester combines and farm implements business
and the healthy growth prospects for this industry over the medium
term.

DMWPL was set up in 2010 by its promoters, Mr. Amar Singh and his
family members, to take over the business of their partnership
firm, Dasmesh Mechanical Works, which was in the business of
manufacturing of farm implements since 1970. DMWPL presently
manufactures harvester combines and other farm implements and has
manufacturing facility in Malerkotla (Punjab).


EASTERN GOURMET: CRISIL Assigns 'B' Ratings to INR74.7MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Eastern Gourmet Pvt Ltd.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit              15.7     CRISIL B/Stable
   Term Loan                59.0     CRISIL B/Stable

The rating reflects EGPL's modest scale of operations due to
initial stage of operations and expected weak financial risk
profile, marked by high gearing. These rating weaknesses are
partially offset by the benefits that EGPL derives from the
extensive experience of its promoters in the agro-related business
and healthy demand for the company's products.

Outlook: Stable

CRISIL believes that EGPL will benefit from the promoters'
extensive experience in the agro-related business. The outlook may
be revised to 'Positive' if the company ramps up its operations
significantly leading to better-than-expected revenues and cash
accruals. Conversely, the outlook may be revised to 'Negative' in
case of lower revenues and cash accruals or larger-than-expected
working capital requirement leading to pressure on the financial
risk profile.

Incorporated in June 2011, EGPL manufactures pasta with capacity
of 1000 kg per month. The company, promoted by Mr. S N Sahoo, has
a manufacturing plant in Cuttack (Odisha). The commercial
operations of the plant started in November 2012.


GEE CEE: CRISIL Assigns 'B+' Ratings to INR246.9MM Loans
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Gee Cee Hydro Power Pvt Ltd.

                             Amount
   Facilities              (INR Mln)    Ratings
   ----------              ---------    -------
   Term Loan                 239.0      CRISIL B+/Stable
   Working Capital Facility    7.9      CRISIL B+/Stable

The rating reflects GCHPPL's exposure to risks associated with the
greenfield nature of the project it is implementing, and to
hydrology-related risks at its project site. These rating
weaknesses are partially offset by the low funding risk for the
project because of the sanctioned term loan and funding support
from its promoters, and the benefits it is expected to derive from
the favorable demand prospects for the power industry.

Outlook: Stable

CRISIL believes that GCHPPL will benefit over the medium term from
the favorable demand prospects for the power industry. The outlook
may be revised to 'Positive' on timely completion of the project
within the budgeted cost, with significant ramp-up in the
company's sales and profitability. Conversely, the outlook may be
revised to 'Negative' if there are significant time and cost
overruns in the implementation of GCHPPL's project, or lower-than-
expected ramp-up in its sales and profitability.

GCHPPL was established in 2006 to set up a hydro power plant in
the Rampur sub-division of Shimla district (Himachal Pradesh). The
company is currently executing a hydro power project with a
proposed plant capacity of 4.8 megawatts. The project is a run-of-
the-river scheme for hydro power generation on the Nogli stream, a
tributary of the River Sutlej. The project site is around 165
kilometres from the district headquarters of Shimla.


GYAN GANGA: CRISIL Assigns 'BB+' Rating to INR96MM Term Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISILBB+/Stable' rating to the long-term
bank facility of Gyan Ganga Educational Society.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Term Loan                96       CRISIL BB+/Stable

The rating reflects GGES's above-average financial risk profile,
supported by increasing cash accruals and funding support from
promoters, and extensive course offerings with improvement in
occupancy levels. These rating strengths are partially offset by
GGES's modest scale of operations, with revenue growth susceptible
to the fragmented nature of industry, and vulnerability to
regulatory risks associated with educational institutions.

For arriving at the rating, CRISIL has treated the unsecured loans
of INR45 million (as on March 31, 2013) extended to GGES by its
promoters and related parties as neither debt nor equity, as these
loans are subordinated to the bank debt and are expected to remain
in the business over the long term.

Outlook: Stable

CRISIL believes that GGES will benefit over the medium term from
its established brand 'Krishna' and increase in its occupancy
levels. The outlook may be revised to 'Positive' in case the
society registers more-than-expected increase in its scale of
operations, while it maintains its healthy profitability.
Conversely, the outlook may be revised to 'Negative' in case of
adverse government regulations or further delay in grant
receivables from government, leading to larger-than-expected
working capital requirements.

GGES was established in 2007 with the objective of running
educational institutions. Currently, the society runs two
educational institutions: Krishna Institute of Technology (KIoT)
and Krishna Institute of Nursing Sciences & Research (KINSR). KIoT
commenced operations in 2008. It currently offers bachelor level
courses in five engineering branches, along with a master of
business administration degree course, with a total of 480 seats
per year. KINSR commenced operations in 2011. It currently offers
three bachelor level courses in nursing with a total of 120 seats
per year. The courses are All India Council For Technical
Education (AICTE) approved and the colleges are affiliated to
Uttar Pradesh Technical University (UPTU), Lucknow.


KEJ MINERALS: CRISIL Assigns 'B+' Ratings to INR91MM Loans
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Kej Minerals Pvt Ltd.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Term Loan                25.90    CRISIL B+/Stable

   Proposed Cash            39.10    CRISIL B+/Stable
   Credit Limit

   Bank Guarantee            1.50    CRISIL A4

   Cash Credit              26.00    CRISIL B+/Stable

The ratings reflect KEJ's fluctuating operating profitability due
to exposure to iron ore price volatility, large working capital
requirements, and susceptibility to government policies and
clearances. The ratings also factor in KEJ's weak financial risk
profile, marked by a small net worth and high gearing. These
rating weaknesses are partially offset by the benefits that KEJ
derives from its promoters' extensive experience in the industry
and its location advantage of beneficiation plant.

Outlook: Stable

CRISIL believes that KEJ will continue to benefit over the medium
term from the extensive experience of its promoters in this line
of business and location advantage of its plant. The outlook may
be revised to 'Positive' in case KEJ's financial risk profile
improves significantly, most likely because of capital infusion by
the promoters' and better-than-expected revenues and
profitability. Conversely, the outlook may be revised to
'Negative' in case the company's profitability declines due to raw
material price volatility or its revenues decline, resulting in
lower-than-expected cash accruals, or if there is a stretch in the
company's working capital cycle, or if it undertakes a larger-
than-expected, debt-funded capital expenditure, leading to
deterioration in its financial risk profile.

KEJ was incorporated in 2008, with by Mr. N Kejriwal as managing
director. The company set-up an iron ore beneficiation unit and
commercial operations commenced in 2010. The company primarily
upgrades iron ore (waste dump) through resizing, washing and
beneficiation. The company is located in Bengaluru (Karnataka).


METCAST METALS: CRISIL Assigns 'D' Ratings to INR90MM Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the long-
term bank facilities of Metcast Metals Pvt Ltd. The ratings
reflect instances of delay by MMPL in servicing its term debt; the
delays have been caused by the company's weak liquidity.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Term Loan                60       CRISIL D
   Cash Credit              15       CRISIL D
   Letter of Credit         15       CRISIL D

MMPL also has large working capital requirements and is exposed to
stabilisation risks as it is in its initial stage of operations.
However, the company benefits from its promoters' extensive
experience in various industries.

Incorporated in 2007, and promoted by Mr. Rakesh Shrivastav and
his son Mr. Rahul Shrivastav, MMPL manufactures stainless steel
and alloy steel castings used in the steel, power, and engineering
industries. The company started its operations from April 2012 and
has its foundry at Khurda (Odisha).


MODERN STEELS: CRISIL Cuts Ratings on INR1.28BB Loans to 'B+'
-------------------------------------------------------------
CRISIL has downgraded the ratings on the bank facilities of Modern
Steels Ltd to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB-
/Stable/CRISIL A4+'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit             730.0     CRISIL B+/Stable (Downgrade
                                     from 'CRISIL BB-/Stable')

   Term Loan               418.8     CRISIL B+/Stable (Downgrade
                                     from 'CRISIL BB-/Stable')

   Letter of Credit        515.0     CRISIL A4 (Downgrade from
                                     'CRISIL BB-/Stable')

   Working Capital          34.2     CRISIL B+/Stable (Downgrade
   Term Loan                         from 'CRISIL BB-/Stable')

   Funded Interest         102.0     CRISIL B+/Stable (Downgrade
   Term Loan                         from 'CRISIL BB-/Stable')

The ratings downgrade reflect estimated deterioration in MSL's
financial risk profile for 2012-13 (refers to financial year,
April 1 to March 31), marked by significant deterioration in the
company's gearing and debt protection metrics. Over the near to
medium term, CRISIL also believes that MSL's financial risk
profile will remain weaker than earlier expected. The estimated
deterioration in MSL's financial risk profile is primarily on
account of the company's significant estimated losses in 2012-13
leading to significant reduction in its net worth as on March 31,
2013. Although MSL does not have any fixed debt obligations till
September 2014, following the restructuring of its debt under the
Corporate Debt Restructuring mechanism on March 28, 2013, its
liquidity is expected to remain weak on account its large working
capital requirements, marked by gross current asset days expected
to remain high in the range of 140 to 150 over the near to medium
term.

The ratings reflect MSL's weak financial risk profile, marked by
an average net worth, a high gearing and weak debt protection
metrics, large working capital requirements, susceptibility to
volatility in raw material prices, dependence on power
availability, and average operating efficiency. However, these
rating weaknesses are partially offset by the company's
established position in the steel rolled products industry along
with its recent venture into the business of manufacturing
critical grades of alloy steels for the relatively stable two-
wheeler industry.

Outlook: Stable

CRISIL believes that MSL's financial risk profile will remain weak
over the medium term, because of the company's debt-funded capital
expenditure (capex) plans and large working capital requirements
along with low profitability expected over the same period. The
outlook may be revised to 'Positive' if MSL registers significant
improvement in its scale of operations and profitability, leading
to higher-than-expected cash accruals. Conversely, the outlook may
be revised to 'Negative' if the company's liquidity weakens on
account of larger-than-expected working capital requirements, or
substantial debt contracted to fund its capex.

MSL was set up in 1974 by Mr. Amarjit Goyal. It is listed on the
Bombay Stock Exchange, with its promoters holding almost 62.33 per
cent of its shares; the company is headed by Mr. Krishan Kumar
Goyal, son of Mr. Amarjit Goyal. MSL manufactures low-alloy and
carbon-steel-rolled products for commercial vehicles such as
trucks and tractors, passenger vehicles, two-wheelers, and
engineering companies.

MSL is estimated to report a net loss of around INR140 million on
net sales of INR2.74 billion for 2012-13, as against net loss of
INR98 million on net sales of INR3.38 billion for 2011-12.


SAKET PROMOTERS: CRISIL Rates INR450MM LT Bank Loan at 'B+'
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank loan facilities of Saket Promoters Ltd.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Proposed Long-Term      450       CRISIL B+/Stable
   Bank Loan Facility

   Proposed Short-Term     150       CRISIL A4
   Bank Loan Facility

The ratings reflect SPL's large working capital requirements and
its exposure to project implementation risks. These rating
weaknesses are partially offset by the extensive experience of the
company's promoters in the real estate business.

Outlook: Stable

CRISIL believes that SPL will benefit over the medium term from
the extensive experience of its promoters in the real estate
business. The outlook may be revised to 'Positive' if the company
reports higher-than-expected revenues and profitability and
improves its working capital management, thereby strengthening its
cash flows. Conversely, the outlook may be revised to 'Negative'
if there are time or/and cost overruns in SPL's project execution,
or/and the off-take from its ongoing project is below
expectations, and if it undertakes a new, larger-than-expected,
debt-funded capital expenditure programme.

Incorporated in 2002, SPL is involved in real estate development
and execution of civil construction projects in Kolkata (West
Bengal). The company's day-to-day activities are being managed by
Mr. Sashi Kant Khetan.


SANMATI COAL: CRISIL Rates INR70MM Cash Credit at 'CRISIL B+'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Sanmati Coal & Cokes Pvt Ltd.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit              70       CRISIL B+/Stable
   Letter of Credit         15       CRISIL A4

The ratings reflect Sanmati's below-average financial risk
profile, marked by low net worth, high gearing, and weak debt
protection metrics. The ratings also reflect Sanmati's modest
scale of operations in a highly competitive and fragmented
industry, and its low operating margin. These rating weaknesses
are partially offset by the extensive experience of Sanmati's
promoters in the coal trading business, and the benefits expected
from the increasing demand for coal in India.

Outlook: Stable

CRISIL believes that Sanmati will continue to benefit over the
medium term from its promoters' extensive experience in the coal
trading business. The outlook may be revised to 'Positive' if the
company's financial risk profile improves substantially, driven
most likely by higher-than-expected cash accruals or capital
infusion, along with efficient working capital management.
Conversely the outlook may be revised to 'Negative' in case of
further weakening in the company's financial risk profile,
particularly liquidity, because of larger-than-expected working
capital requirements or lower-than-expected cash accruals.

Incorporated in 2012 by Mr. Saurabh Jain, Sanmati trades in non-
coking coal. The company is headquartered at Indore and was
promoted to take over the business of the Mr. Saurabh Jain's
proprietorship firm engaged in the same business.


SURYABALAJI STEELS: CRISIL Puts 'B+' Ratings on INR139.4MM Loans
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Suryabalaji Steels Pvt Ltd (SSPL, a part of
the Padmabalaji group).

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Long Term Loan          39.4      CRISIL B+/Stable
   Cash Credit            100.0      CRISIL B+/Stable
   Letter of Credit       200.0      CRISIL A4

The ratings reflect the Padmabalaji group's below-average
financial risk profile, marked by moderate gearing and weak debt
protection metrics and susceptibility of the group's revenues and
profitability to end-user industries. These rating weaknesses are
partially offset by the benefits that the Padmabalaji group
derives from its promoters' extensive experience in steel
industries.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SSPL and Sri Padmabalaji Steels Pvt Ltd
(SPSPL), together referred to as the Padmabalaji group, which are
engaged in the same line of business and managed by the same
promoters with fungible funds.

Outlook: Stable

CRISIL believes that the Padmabalaji group will continue to
benefit, over the medium term, from its diverged products and
extensive customer relationship. The outlook may be revised to
'Positive' if the group records a larger-than-expected improvement
in revenue and profitability, in addition to sustainable
improvement in its debt protection metrics. Conversely, the
outlook may be revised to 'Negative' if the group records
suboptimal capacity utilisation because of power and raw material
shortages resulting in lower-than-expected cash accruals or if it
undertakes any significant debt-funded capital expenditure
resulting in deterioration in its financial risk profile.

SPSPL was set up in 1995 by Mr. M Ravichandhiran and primarily
manufactures steel and ferro alloy castings, mild-steel (MS)
ingots, and thermo-mechanically treated (TMT) bars and roads. The
company has three manufacturing facilities (one each in Annur
[Coimbatore, Tamil Nadu], Karaikal [Pondicherry], and Kanjikode
[Kerala] and uses different facilities to manufacture different
products. SPSPL is a part of the Padmabalaji group, which is based
in Coimbatore (Tamil Nadu). SSPL was set up in 2007 and
manufactures only MS ingots. SSPL has a manufacturing facility at
Pudukottai (Tamil Nadu).


On a consolidated basis, the Padmabalaji group reported profit
after tax (PAT) of INR50.19 million on net sales of INR3.57
billion for 2011-12 (refers to financial year, April 1 to
March 31) as against PAT of INR47.4 million on net sales of
INR2.81 billion for 2010-11.


VIRAT ALLOYS: CRISIL Cuts Ratings on INR93.4MM Loans to 'B+'
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Virat
Alloys Pvt Ltd to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB-
/Stable/CRISIL A4+'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Bank Guarantee           9.5      CRISIL A4 (Downgraded from
                                     'CRISIL A4+')

   Cash Credit             50.0      CRISIL B+/Stable (Downgraded
                                     from 'CRISIL BB-/Stable')

   Term Loan               43.4      CRISIL B+/Stable(Downgraded
                                     from 'CRISIL BB-/Stable')

The downgrade reflect deterioration in VAPL's financial risk
profile, driven by its stretched liquidity. The liquidity was
stretched on account of modest accruals led by lower than expected
growth in its scale of operation coupled with less than expected
improvement in its margins for near to medium term which are not
sufficient to service its term debt obligations. However the term
debt obligations are serviced in timely manner by strong promoter
support through fund infusion in form of either unsecured loans or
capital. Also the average bank lines utilization for twelve months
ended on March 2013 were moderate at 85 per cent thereby providing
some support to its overall liquidity.

Going forward, the financial risk profile is expected to be
constrained by its modest networth, high gearing, weak debt
protection metrics and stretched liquidity.

The ratings continue to reflect VAPL's below-average financial
risk profile, marked by a high gearing, and the company's modest
scale of operations and susceptibility to intense market
competition and to volatility in raw material prices. These rating
weaknesses are partially offset by the benefits that VAPL derives
from its promoters' extensive experience in the steel industry.

Outlook: Stable

CRISIL believes that VAPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company registers
significant improvement in its liquidity, led by higher-than-
expected growth in its revenues and profitability, along with
improvement in its capital structure. Conversely, the outlook may
be revised to 'Negative' if VAPL registers further deterioration
in its liquidity, most likely on account of decline in its cash
accruals as a result of less-than-expected offtake or decline in
its operating margin, or if it undertakes a larger-than-expected,
debt-funded capital expenditure programme.

Incorporated in 2008, VAPL is a semi-integrated company, engaged
into manufacturing of stainless steel ingots & flats. VAPL started
its activities with SS ingots manufacturing activities in 2009 and
later on started producing SS flat products with its manufacturing
facilities are located at Kalol (Gujarat). The promoters have an
experience of steel industry for last two decades through other
group companies.

For 2011-12, VAPL reported a profit after tax (PAT) of INR1.1
million on net sales of INR363.7 million, against a profit after
tax of INR3.4 million on net sales of INR419.7 million for 2010-
11.


YENEPOYA INSTITUTE: CRISIL Assigns BB Ratings to INR90MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the bank
facilities of Yenepoya Institute of Medical Sciences and Research
Private Limited.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit               15      CRISIL BB/Stable
   Term Loan                 75      CRISIL BB/Stable

The rating reflects the benefits that Yenepoya Hospital derives
from its established position in the healthcare industry and
moderate financial risk profile, marked by a moderate gearing and
healthy debt protection metrics. These rating strengths are
partially offset by Yenepoya Hospital's small scale of operations
and geographic concentration.

Outlook: Stable

CRISIL believes that Yenepoya Hospital will benefit from its long-
standing presence in the healthcare market of Mangalore
(Karnataka). The outlook may be revised to 'Positive' in case
Yenepoya Hospital scales up its operations significantly while
maintaining profitability, resulting in an improvement in capital
structure. Conversely, the outlook may be revised to 'Negative' in
case Yenepoya Hospital reports a decline in its cash accruals or
undertakes a larger-than-expected debt to fund its capital
expenditure.

Yenepoya Hospital was set up as a private limited company in 1974
by Mr. Mohammed Kunhi and Mr. Abdulla Kunhi. Its 200-bed multi-
specialty hospital in Mangalore commenced operations in 1993. The
hospital also runs a nursing college offering undergraduate and
postgraduate degrees.

Yenepoya Hospital reported a profit after tax (PAT) of INR7.7
million on net sales of INR186.87 million for 2011-12 (refers to
financial year, April 1 to March 31), as against a PAT of INR5.8
million on net sales of INR159.39 million for 2010-11.



=================
I N D O N E S I A
=================


* Bank Indonesia Summoned Over 4 Troubled National Banks Issues
---------------------------------------------------------------
The Jakarta Post reports that Indonesia's House of
Representatives' Commission XI on finance and banking is due to
summon Bank Indonesia (BI) representatives to discuss numerous
issues surrounding four national banks.

The banks in question are Bank Mega, Bank Panin, Bank Jabar and
Banten and Bank Mestika Dharma, the report discloses.

"We want to know more about the problems surrounding these banks,"
kontan.co.id quoted Commission XI deputy chairman Harry Azhar Azis
from the Golkar Party as saying, The Jakarta Post relays.

According to the report, Bank Mega has been found guilty of
internal negligence surrounding a IDR111 billion deposit belonging
to oil and gas services company PT Elnusa.

Bank Panin was the target of a IDR30 billion fraud case at one of
its branch offices in Banjarmasin, South Kalimantan.

Bank Jabar and Banten has been struggling with a on-performing
loan case that could cost the state IDR55 billion in losses, while
Bank Mestika suffered a robbery of IDR4.5 billion conducted by one
of its employees.

Meanwhile, BI Deputy Governor Halim Alamsyah said each of the
cases at the banks were under police investigation, the report
adds.



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


CITIGROUP GLOBAL: S&P Affirms 'BB+' Rating on Jr. Sub. Note Prog.
-----------------------------------------------------------------
Standard & Poor's Ratings Services said it has revised to stable
from negative the outlooks on its 'A' long-term counterparty
credit ratings on Citibank Japan Ltd. and Citigroup Global Markets
Japan Inc., which are operating subsidiaries of U.S.-based
Citigroup Inc.  At the same time, S&P affirmed the 'A' long-term
and 'A-1' short-term counterparty credit ratings on Citibank Japan
and Citigroup Global Markets Japan, and the 'A-' long-term and 'A-
2' short-term counterparty credit ratings on Citigroup Japan
Holdings Corp.  The outlook on the long-term rating on Citigroup
Japan Holdings Corp. remains negative.  S&P also affirmed the
ratings on Citigroup Global Markets Japan's medium-term note
program ('A' for senior unsecured; 'BB+' for junior subordinated)
and the ratings on Citigroup Japan Holdings' straight bonds ('A-'
for senior unsecured).

S&P revised the outlooks on the two Japanese operating
subsidiaries to reflect its outlook revision on U.S.-based
Citigroup Inc.'s (A-/Negative/A-2) banking subsidiaries to stable
from negative; Citigroup indirectly owns 100% of Citibank Japan
and Citigroup Global Markets.  Also, S&P affirmed its ratings on
Citigroup Japan Holdings, the Japanese holding company that owns
certain nonbanking business entities such as Citigroup Global
Markets Japan, and maintained its negative outlook, mirroring its
rating action on the U.S. holding company, which is the direct
parent of the Japanese holding company.  The negative outlook on
the U.S. holding company reflects S&P's view that the likelihood
of extraordinary government support to major U.S. bank holding
companies may weaken.

"We view Citigroup's three Japanese entities as "core" to
Citigroup, owing to the high degree of cohesiveness.  Under the
rating criteria we apply to financial groups, we generally
equalize the ratings on a group's "core" subsidiary with the group
credit profile (GCP; a GCP is Standard & Poor's opinion of a
group's creditworthiness as if the group were a single legal
entity) to reflect our view that there is an extremely high
likelihood that the "core" subsidiary will receive extraordinary
support from the group if necessary.  Based on this, we equalize
the ratings on the Japanese operating subsidiaries, Citibank Japan
and Citigroup Global Markets Japan, with those on the group's main
banking subsidiaries.  Also, we equalize the ratings on Citigroup
Japan Holdings, which is an intermediate holding company of
Citigroup in Japan, with those on the U.S. holding company," S&P
noted.

S&P may consider downgrading the three Japanese entities if it
lowers the GCP, or if the Japanese market becomes less important
to the group and leads to less cohesiveness with Citigroup or a
lower likelihood of receiving extraordinary support from the
group.

Conversely, S&P may consider upgrading Citibank Japan and
Citigroup Global Markets Japan if it raises the ratings on the
group's main banking subsidiaries.  Also, S&P may revise the
outlook on Citigroup Japan Holdings to stable if it raises its
outlook on the U.S. holding company.

RATINGS LIST

Ratings Affirmed; Outlooks Revised

                           To               From
Citibank Japan Ltd.
Citigroup Global Markets Japan Inc.
Issuer Credit Rating      A/Stable/A-1     A/Negative/A-1

Ratings Affirmed
Citigroup Japan Holdings Corp.
Issuer Credit Rating      A-/Negative/A-2


* MUFG Fine Highlights Japan Banks' Overseas Growth Risks
---------------------------------------------------------
Bank of Tokyo-Mitsubishi UFJ's (BTMU) USD250 million settlement
with New York State last week over the breach of US sanctions,
highlights operational risk that international expansion brings,
Fitch Ratings says. The overseas expansion strategies of Japan's
"mega banks" could lead to rising costs for complying with many
different legal and regulatory frameworks, and also in
strengthening compliance systems to support operations in diverse
markets.

"In addition to the fine, the bank will also retain a compliance
consultant to conduct a one-year review. Overall, we believe the
penalty and additional compliance costs should be manageable in
light of the size of the MUFG group and its earnings," Fitch says.

"Furthermore, we expect no significant reputational damage nor
impact on Mitsubishi UFJ's business model. The group's
capitalisation and internal capital generation have improved in
the last four years, strengthening its loss-absorption capacity,
and the settlement does not affect its 'A' rating.

"Japan's mega banks are pursuing their search for offshore growth
opportunities to compensate for stagnant domestic operations and
to help diversify earnings. We expect 10%-20% growth in their
overseas lending in the current fiscal year, with the focus market
being emerging Asia. The agency also believes the enhanced
capitalization allows more options for overseas expansion apart
from organic growth. Mitsubishi UFJ was recently reported as a
potential buyer of a 51% stake in Thailand's fifth-largest bank,
Bank of Ayudhya, although this has not been confirmed by the
group."

Operational risk may rise if corporate governance is not bolstered
to support such growth, especially as there is increasing focus on
regulatory compliance and related matters for multinational banks.
BTMU's settlement follows the fines levied on HSBC (USD1.9bn) and
Standard Chartered (USD667m) on breaches of anti-money-laundering
regulations in 2012.

Another key risk of rapid overseas expansion is credit risk
associated with new borrowers in new markets. This has been
relatively well-managed so far, with lower impairment loans in
overseas lending. But the banks' tolerance for risk may rise, as
loan growth is unlikely to be sustained by lending to blue-chip
companies alone.

BTMU is a wholly owned subsidiary of Mitsubishi UFJ, one of
Japan's three mega banks along with Sumitomo Mitsui and Mizuho.



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


MAGNACHIP SEMICONDUCTOR: Moody's Lifts CFR, Sr. Bond Rating to B1
-----------------------------------------------------------------
Moody's Investors Service has upgraded the corporate family rating
of MagnaChip Semiconductor Corporation and the senior unsecured
bond rating of its supported subsidiary, MagnaChip Semiconductor
S.A., to B1 from B2.

The ratings outlook is stable.

Ratings Rationale:

"The ratings upgrade reflects our expectation that MagnaChip's
financial and liquidity profiles will remain solid, owing to
continued growth in its mobile applications segments such as
tablets and smartphones; its strong relationships with its major
customers; and its focus on the less capital-intensive chips
business," says Yoshio Takahashi, a Moody's Assistant Vice
President and Analyst.

"In addition, the company has diversified its earnings base by
strengthening its power solutions business, a situation that also
supports its ratings," he adds.

MagnaChip's small scale, its exposure to the volatile consumer
electronics industry, and the high degree of customer
concentration will remain key risk factors, however, its
established relationships with major customers will continue to
mitigate downside risks to earnings.

Moody's expects MagnaChip's adjusted debt/EBITDA and adjusted
debt/capitalization to remain in the 1.5x-2.0x range and below
45%, respectively, given its strong operating performance.

MagnaChip is also likely to maintain its solid balance sheet
liquidity of $150 million-$200 million in cash and cash
equivalents, because its capital expenditure is relatively low as
a semiconductor company owing to its focus on analog and mixed
signal chips.

In addition, the company only has $204 million in total debt
consisting entirely of the notes maturing in 2018.

The stable outlook reflects Moody's view that the company's core
businesses will generate stable earnings and cash flow, allowing
it to maintain its low leverage and improve its balance sheet.
Moody's also expects MagnaChip to maintain strong balance sheet
liquidity.

Given MagnaChip's small size and customer concentration in a
volatile industry, Moody's does not anticipate any near-term
upward pressure on the rating. However, positive momentum could
build if the company can: (1) significantly improve its
competitive position and diversify its customer base and
applications; (2) maintain its strong liquidity position; and (3)
improve adjusted debt/EBITDA to below 1.5x and adjusted
EBIT/interest expense to over 5x, while maintaining adjusted free
cash flow/debt to over 15% on a sustained basis.

Downward rating pressure could arise if MagnaChip's: (1)
profitability and cash flow weaken, owing to lackluster demand for
its major products, resulting in adjusted debt/EBITDA of over 2.5x
and adjusted EBIT/interest of below 2.5x; and (2) balance sheet
liquidity deteriorates significantly, such that cash on hand falls
below $100 million, as a result of aggressive investment plans,
high dividend payments or negative free cash flow.

The principal methodology used in these ratings was Global
Semiconductor Industry Methodology published in December 2012.

MagnaChip is a Korean designer and manufacturer of analog and
mixed-signal semiconductor products mainly for high-volume
consumer applications, such as TVs, personal computers, mobile
phones and tablets.


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


* Moody's Issues New Report on Risks from Emerging Markets
----------------------------------------------------------
Risks from fluctuations in business and operating conditions,
weaker liquidity due to less mature financial markets and
sovereign credit distress are likely to weigh more on the credit
profiles of emerging markets corporates, says Moody's Investors
Service in a Special Comment entitled "Credit Considerations for
Corporates in Emerging Markets."

Moody's has published its Special Comment in response to increased
interest in the additional credit risks and analytical
complexities in developing markets. Corporates in emerging markets
sometimes experience greater variability in business and operating
conditions due to a range of factors. Assessments of corporate
credit risk in emerging markets can also be affected by broader
sovereign risk considerations given that the history of sovereign
credit stress has shown that there are strong credit linkages
between corporates, financial institutions and sovereigns.

Where the sovereign rating is not a constraint, institutional
governance and transparency issues may still result in a lower
rating in some cases. It is often the case in some emerging
markets that information flow is less consistent, transparency is
lower, and legal systems are less predictable. Moody's considers
issuer-specific differences as well as differences in the local
environment when assessing these risks.

Another key challenge in assigning ratings to corporates in
developing markets is that their economic, financial and market
environments are often prone to greater volatility and exposure to
potential shocks over time. In addition, Moody's notes that
corporates relying on local financial markets that lack depth and
are more prone to stress tend to have weaker liquidity. While
demonstrated access to foreign currency capital markets can be
beneficial for corporate liquidity by opening multiple financing
sources, this can also result in substantial volatility in the
local currency value of liabilities due to shifts in foreign
exchange rates.

The credit considerations noted in Moody's Special Comment are not
always relevant for every issuer and are not present to the same
degree in every emerging market country. In this context, Moody's
also notes that events since the onset of the financial crisis in
2008 are a fresh reminder that broad economic and financial
stresses can occur in developed markets as well as in emerging
markets. While the document explores additional credit
complexities that can often exist for corporates in emerging
markets, Moody's recognizes that these risks are not exclusive to
emerging markets


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

July 11-13, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Northeast Bankruptcy Conference
         Hyatt Regency Newport, Newport, R.I.
            Contact: 1-703-739-0800; http://www.abiworld.org/

July 18-21, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Southeast Bankruptcy Workshop
         The Ritz-Carlton Amelia Island, Amelia Island, Fla.
            Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 8-10, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Mid-Atlantic Bankruptcy Workshop
         Hotel Hershey, Hershey, Pa.
            Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 22-24, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Southwest Bankruptcy Conference
         Hyatt Regency Lake Tahoe, Incline Village, Nev.
            Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 3-5, 2013
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         Marriott Wardman Park, Washington, D.C.
            Contact: http://www.turnaround.org/

Nov. 1, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      NCBJ/ABI Educational Program
         Atlanta Marriott Marquis, Atlanta, Ga.
            Contact: 1-703-739-0800; http://www.abiworld.org/

Dec. 2, 2013
   BEARD GROUP, INC.
      19th Annual Distressed Investing Conference
          The Helmsley Park Lane Hotel, New York, N.Y.
          Contact: 240-629-3300 or http://bankrupt.com/

Dec. 5-7, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Winter Leadership Conference
         Terranea Resort, Rancho Palos Verdes, Calif.
            Contact: 1-703-739-0800; http://www.abiworld.org/



                             *********

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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