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                      A S I A   P A C I F I C

            Thursday, July 4, 2013, Vol. 16, No. 131


                            Headlines


A U S T R A L I A

BILLABONG INT'L: Lenders Selling Debt at a Discount
DUNES PORT: New Deal Secures Long Term Future of Golf Course
EL ZORRO TRANSPORT: Reportedly Owes Creditors More Than AUD10MM
LACTANZ DAIRY: No Milk Shortage Despite Receivership
* AUSTRALIA: More Farmland to Fall Into Distressed Sale

* Continued Traffic Growth Supports Stable Transport Outlook


I N D I A

ABG SHIPYARD: CARE Cuts Ratings on INR1,969.23cr Loans to 'BB'
AKASAKI TECHNOLOGY: ICRA Reaffirms 'B+' Ratings on INR7cr Loans
ANNAPURNA IMPORTS: CARE Assigns 'BB-' Rating to INR3.45cr Loan
CORE EDUCATION: CARE Cuts Rating on INR996.40cr Loans to 'BB+'
EDUCOMP SOLUTIONS: CARE Cuts Rating on INR404.08cr Loan to 'D'

GAURAV EARTHMOVING: CARE Reaffirms BB Rating on INR10.5cr Loan
GLOMET TECHNOLOGIES: CARE Rates INR7cr LT Loan at 'CARE B+'
H-RECK ENGINEERS: CARE Rates INR9.23cr LT Loan at 'CARE BB'
KHALILABAD SUGAR: ICRA Reaffirms 'D' Rating on INR10.5cr Loan
MICA INDUSTRIES: ICRA Cuts Ratings on INR15.9cr Loans to 'B'

SAHAJANAND COTTON: CARE Rates INR6.36cr LT Loan at 'CARE B'
SAMARTH SAI: ICRA Assigns 'B' Rating to INR3cr LT Loan
SAVFAB BUILDTECH: ICRA Raises Rating on INR28cr Loan  to 'BB-'
SHREE CHHATRAPATI: ICRA Reaffirms 'B' Ratings on INR9.84cr Loans
SHRIPAL EDUCATIONAL: CARE Rates INR5.32cr LT Loan at 'CARE B+'

SKY LINE: ICRA Rates INR15cr Fund-based Limits at 'B'


I N D O N E S I A

BUMI RESOURCES: Moody's Continues to Monitor Refinancing Actions


J A P A N

L-JAC7 TRUST: Moody's Lowers Ratings on Two Trust Certificates
OLYMPUS CORP: 3 Former Execs Get Suspended Prison Sentences


M O N G O L I A

* Mongolia Election Makes Space for Greater Policy Clarity


N E W  Z E A L A N D

LM INVESTMENT: Investors Face 'Significant Devaluations'


S I N G A P O R E

IRPC PUBLIC: Moody's Lowers CFR and Senior Bond Ratings to Ba1


S R I  L A N K A

NATIONAL DEVELOPMENT: Fitch Assigns 'B+' Issuer Default Rating
* Moody's Changes Outlook on Sri Lanka to Stable


V I E T N A M

* Fitch Affirms 4 Vietnamese Banks' 'B' LT Issuer Default Rating


                            - - - - -


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


BILLABONG INT'L: Lenders Selling Debt at a Discount
---------------------------------------------------
Gillian Tan at The Wall Street Journal's MoneyBeat reports that
participants of Billabong International Ltd.'s long-standing
AUD280 million (US$254 million) debt syndicate have bailed out of
their positions at a discount, people familiar with the matter
said Wednesday.

MoneyBeat relates that banks including Societe Generale, Westpac
Banking Corporation and ANZ Banking Group have joined the likes of
Commonwealth Bank of Australia Ltd. and HSBC Holdings PLC in
selling their debt exposure to the surfwear retailer at discounts
of 10% or more.

According to MoneyBeat, the people said New York-based distressed
debt investor Centerbridge Partners is one, but not the only buyer
of Billabong's debt.  The move contradicts Centerbridge Partners
co-founder Mark Gallogly's public statements in February, that the
firm would not venture into Asia, the report notes.

Being global "is not where we want to be," Mr. Gallogly said at a
Columbia Business School event, MoneyBeat relates.  Notably,
around 55% of Billabong's revenues are derived from the North
American market.

Billabong said last week that it remains in refinancing and asset-
sale talks with U.S. private equity firms Altamont Capital
Partners and Sycamore Partners Management, MoneyBeat recalls. The
company's market value currently sits at AUD93.4 million, having
tumbled from highs of AUD3.8 billion as recently as 2007, the
report discloses.

MoneyBeat notes that the decision to flee, and lack of confidence
displayed by Billabong's long-time lenders, follows the exit of
one of the company's largest shareholders, fund manager Perennial
Investment Partners.  According to the report, Perennial held as
much as 13.7% of the company this time last year, and was one of
two fund managers which had agreed to sell its stake to TPG last
July, before the buyout firm declined to pursue a deal.

The Sydney Morning Herald reported in April that the company's
path to redemption got tougher after the surfwear group downgraded
earnings guidance and said a AUD537 million loss for the half-year
put it in breach of debt covenants.  The breach led its banks to
seek a secured charge over most of the business, SMH related.

DealBook said Billabong has fallen on difficult times because of
changing consumer tastes and the financial crisis. It has closed
stores and sold assets as part of an effort to restructure the
company.

Based in Australia, Billabong International Limited (ASX:BBG) --
http://www.billabongbiz.com/-- is engaged in the wholesaling and
retailing of surf, skate, snow and sports apparel, accessories and
hardware, and the licensing of its trademarks to specified regions
of the world.


DUNES PORT: New Deal Secures Long Term Future of Golf Course
------------------------------------------------------------
ABC News reports that an agreement has been reached to secure the
long-term future of The Dunes golf course near Port Hughes on
South Australia's Yorke Peninsula.

The high-profile development, including a Greg Norman-designed
golf course, went into receivership last year.  But in February,
the new developers Rural Bank transferred the golf course to the
Copper Coast Council in a bid to revitalise it.

ABC News relates that the bank has endorsed a 21-year lease
between the Council and the newly-formed Copperclub Golf and
Community Association.

According to the report, Council chief executive Peter Harder said
the lease was an important step towards a secure future for the
golf course.

"We are pleased to work with the newly-formed association and look
forward to a long and constructive relationship with them," the
report quotes Mr. Harder as saying.

Chairman Richard Freer said the association was hoping the
community would get behind the golf course and its operations, the
report adds.

The Dunes, Port Hughes is a residential and resort development on
the South Australian coast.

David Kidman and Martin Lewis of Ferrier Hodgson were appointed
Receivers and Managers of these entities on July 11, 2012:

   -- The Dunes Port Hughes Pty Ltd;
   -- Quickview Pty Ltd;
   -- TST (Australia) Pty Ltd; and
   -- TDPH Golf Operations Pty Ltd.

Messrs. Kidman and Lewis were also appointed on July 11, 2012 as
Receivers and Managers of certain property of Display Co. 3 Pty
Ltd.


EL ZORRO TRANSPORT: Reportedly Owes Creditors More Than AUD10MM
---------------------------------------------------------------
Peter Hemphill at Weekly Times Now reports that creditors of EL
Zorro Transport are believed to be owed well in excess of
AUD10 million.

The rail company closed its doors early last month and was placed
in external administration by El Zorro Transport director Ray
Evans on June 14, the report relates.

A creditors meeting was held in Melbourne last week, with the
appointment of the administrator a central issue, Weekly Times Now
says.

According to Weekly Times Now, reports from the meeting indicate
Cargill is owed more than AUD6 million -- with counter claims by
El Zorro against the grain trader -- Victorian Government rail
authorities owed more than $3 million, Chicago Freight Car Leasing
Australia about $2 million, former employees $1.4 million and the
Seymour  Rail Heritage Centre more than $1 million.

One former employee, who did not wish to be named, said a string
of country motels were owed an average of about $5000.

She said some employees had not been paid for the last four weeks
of their employment, time off in lieu, redundancy and annual
leave, with claims as high as $90,000.

Cargill spokesman Peter McBride told Weekly Times Now the grain
company was owed AUD6.9 million through direct debt owed by El
Zorro and leases for rail wagons Cargill had taken out with a
third party -- believed to be the Commonwealth Bank of Australia.

Creditors were told by the administrator El Zorro Transport made a
AUD3.5 million loss in 2010, a AUD6.5 million loss in 2011 and
AUD6.5 million last financial year, Weekly Times Now adds.

                     Related Company Liquidation

Weekly Times Now reports that Mr. Evans appointed liquidators Con
Kokkinos and Matthew Jess, of Worrells, to wind up related company
Regional Port Enterprizes Pty Ltd on June 28.

A creditors' meeting has been called for July 10 to consider
winding up the company.

Weekly Times Now discloses that RPE has debts of nearly
AUD2.8 million, including AUD1.77 million owed to the Australian
Taxation Office, about AUD223,000 to El Zorro Transport and
AUD89,000 owed to Mr. Evans.  Another company, RLG Pty Ltd, of
which Mr. Evans is co-director and part owner, is owed about
AUD23,000.

The large majority of the creditors are former employees.


LACTANZ DAIRY: No Milk Shortage Despite Receivership
----------------------------------------------------
Fiona Barry at Dairyreporter.com reports that Australian dairy
processor Brownes has played down concerns about a potential
summer milk shortage following the recent announcement that its
supplier, Lactanz Dairy, has gone into receivership.

According to the report, Brownes managing director, Ben Purcell,
said that despite its milk supplier Lactanz going into
receivership, it is not expecting to experience any shortages
during Australian summer, which runs December to February.

Dairyreporter.com say Brownes currently processes around 145
million litres of milk per year. Lactanz, which produces 15m
litres of milk a year, is Brownes largest supplier.

Dairyreporter.com relates that Mr. Purcell said despite going into
receivership Lactanz will continue to fulfil existing contracts
with Brownes until 2017.

Mr. Purcell added that Brownes would take possession of Lactanz'
herds on July 1 and we're working with receivers to see if we can
keep some or all of the herds on those particular farms, reports
Dairyreporter.com.

Lactanz Dairy, Western Australia's largest dairy farming
conglomerate, went into receivership late in June 2013. Farm
Weekly said 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.


* AUSTRALIA: More Farmland to Fall Into Distressed Sale
-------------------------------------------------------
Matthew Cranston at Stock Journal reports that more farmland
across Australia will fall into the distressed sale category
following a number of high-profile receivership appointments.

In April, the report relates, The Australian Financial Review
surveyed the nation's top seven major insolvency specialists to
find that at least 80 major farming operations across Australia,
each worth more than AUD1 million were in receivership -- or some
form of distress.

Stock Journal notes that the most recent high-profile appointments
include R.M. Williams Agricultural Holdings and companies
associated with agricultural land identity Craig Doyle.

Evidence is also building around discounted pricing with
Queensland a hotbed of activity, the report says.

According to the report, the 8,480 hectare Brookvale in south-east
Queensland was sold last month through Elders for a discount of
about 30 per cent to previous expectations. A cattle property
called Plattaway Station sold at a mortgagee auction for
AUD5.1 million after once being listed for sale at AUD7.5 million,
the report relays.


* Continued Traffic Growth Supports Stable Transport Outlook
------------------------------------------------------------
Fitch Ratings says in a newly-published report that its outlook
for Australian transportation infrastructure is stable, supported
primarily by moderate traffic growth. However, exposure to medium-
term bullet debt could leave issuers vulnerable to refinancing
risk in the event of a significant downturn in the Australian
economy or banking sector.

Underlying traffic levels have remained generally robust so far in
2013, continuing the trend of recent years. Sydney Airport's May
year-to-date traffic grew 3.1% over the prior year, somewhat lower
than overall 2012 growth. While traffic growth in Fitch's
Australian road portfolio has been variable over the past year
with some declines, this is partly attributable to disruption from
road expansion works.

The performance of the road and airport assets in Fitch's
Australian portfolio are underpinned by their important economic
roles: Sydney Airport is the principal origin and destination
airport in Australia; the Eastern Distributor (M1), Hills M2, M5
and Westlink M7 roads and the Lane Cove Tunnel form the bulk of
Sydney's Orbital road network; and the Citylink road in Melbourne
is an important connection into the city's central business
district. Robust traffic performance, combined with supportive
pricing arrangements, has provided these companies with strong
cash flow coverage.

Nonetheless, Australian transportation issuers have unusually high
exposure to medium-term (three to five-year) domestic bullet bank
debt compared with global peers. While cash flows should be able
to support potentially higher debt costs in the future, the need
for regular refinancing of these long life assets is a weakness
relative to global peers and exposes these companies to the
liquidity of the Australian banking sector.

Furthermore, the Australian economy has a high dependence on the
commodities sector and its banking sector is heavily reliant on
external debt funding. Should either of these sectors deteriorate
substantially, this could leave the Australian transportation
issuers exposed to reduced traffic levels or to difficulties in
refinancing maturing debt at reasonable rates.



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


ABG SHIPYARD: CARE Cuts Ratings on INR1,969.23cr Loans to 'BB'
--------------------------------------------------------------
CARE revises the ratings assigned to the bank
facilities/instruments of ABG Shipyard Limited and places them on
credit watch.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities     1,702.56    CARE BB Revised from
                                             CARE BBB- Placed on
                                             Credit Watch

   Long-term/Short-term Bank     8,600.00    CARE BB/CARE A4
   Facilities                                Revised from CARE
                                             BBB-/CARE A3 Placed
                                             on Credit Watch

   Long-term Non-Convertible        66.67    CARE BB Revised from
   Debenture                                 CARE BBB- Placed on
                                             Credit Watch

   Proposed Long-term Non-         200.00    CARE BB Revised from
   Convertible Debenture                     CARE BBB- Placed on
                                             Credit Watch

   Commercial Paper/Short-term     500.00    CARE A4 Revised from
   Debt                                      CARE A3 Placed on
                                             Credit Watch

Rating Rationale

The revision in the ratings takes into account the continued
stress on liquidity resulting in slower execution and increased
reliance on short-term borrowings amidst negative industry outlook
leading to further deterioration of the overall financial profile
of the company. The rating has been placed on credit watch due to
lack of adequate information in order to take a final view.

The ratings continue to be constrained by significant amount of
corporate guarantees provided to the group companies and delay in
receipt of subsidy thereby straining the operating cycle.
The ratings also consider ABG Shipyard Limited's experienced
management and track record in the shipbuilding industry and
strong and diversified order book providing revenue visibility.
Ability of the company to manage its operating cycle in the wake
of slowed down stage payments from customers as well as prune down
financial leverage remain the key rating sensitivities.

ABG Shipyard Limited belongs to the Agarwal Business Group
(controlled by Mr Rishi Agarwal) and is the largest private
shipyard in the country, in terms of the order book. ASL is
engaged in the construction and repair of various types of vessels
as well as rigs. ASL has constructed and delivered 156 vessels
over the last 23 years. ASL has capacity to build vessels up to
1,20,000 Dead Weight Tonnage (DWT) at Dahej and upto 20,000 DWT at
Surat, Gujarat. As on October 30, 2012, the unexecuted orderbook
of ASL stood at around INR9,000 crore.


AKASAKI TECHNOLOGY: ICRA Reaffirms 'B+' Ratings on INR7cr Loans
---------------------------------------------------------------
ICRA has reaffirmed '[ICRA]B+' rating outstanding for the INR7.00
crore of bank based facilities of Akasaki Technology Private
Limited.  The rating for the bank facilities was earlier suspended
by ICRA in April 2013.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Fund Based Facilities          6.00       B+ reaffirmed
   Unallocated                    1.00       B+ reaffirmed

The rating reaffirmation takes into account ATPL's long standing
presence in the mobile phones and accessories trading business for
nearly a decade and established distribution network of over 120
dealers present in majority of Tier-II and Tier-III cities across
India. The rating, however, remains constrained by the company's
weak brand recognition, rapid product obsolescence and high price
sensitivity of the target population which limits the potential
growth in revenues and margins. ATPL's financial profile is also
characterised by low operating margins as inherent to the trading
business, high working capital intensity owing to high inventory
days and stretched coverage indicators. Additionally, the
significant exposure to foreign currency poses the risk of margin
contraction in the event of sharp movements as the company may be
unable to pass on price increases to its end customers. Further,
the company's margins remain vulnerable to import duty changes and
forex fluctuations which the company has not been able to pass on
to the customers. Going forward, ATPL's ability to achieve
sustained sales growth and increase its profitability in the
operations will be the key sensitivity factors.

Akasaki Technology Private Limited is engaged in the trading
business of mobile phones and accessories categorized under broad
range of chargers, hands free accessories, LCD screens, housing
(for the mobiles), batteries etc. ATPL imports the accessories
from China and sell the products under brand name Akasaki in
Indian markets. The Company is family run business, promoted by
Mr. Jitendra Singh Ahuja in 1996. Prior to the incorporation in
Nov 2006, the business was being run through the firm called
Akasaki International India.

Being present in the industry for more than a decade, the Company
has established strong distributor/ dealership network across the
states. The distribution network comprises of 128 distributors
heading nearly 400-500 dealers across most of the cities,
primarily Tier-II and Tier-III cities in India. Currently ATPL
derives 40% of the revenues from mobile phone trading while the
accessories contribute the rest.


ANNAPURNA IMPORTS: CARE Assigns 'BB-' Rating to INR3.45cr Loan
--------------------------------------------------------------
CARE assigns 'CARE BB-/CARE A4' ratings to the bank facilities of
Annapurna Imports.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       3.45      CARE BB- Assigned
   Short-term Bank Facilities      4.50      CARE A4 Assigned

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

Rating Rationale

The ratings assigned to the bank facilities of Annapurna Imports
are primarily constrained by short track record and small scale of
operations, leveraged capital structure and foreign exchange
fluctuation risk. The ratings are further constrained due to the
proprietorship nature of its constitution.

The ratings, however, draw comfort from the experienced promoters,
growing scale of operations with moderate profitability margin.

Going forward, the firm's ability to scale up its operations,
while managing its foreign exchange fluctuation risk, shall be the
key rating sensitivity.

Annapurna Imports, based in Muzaffargar, Uttar Pradesh, is a
proprietorship firm established in 2007 by Mr. Pankaj Aggarwal.
The firm is engaged in the trading of paper machinery equipment
viz rolls, valves, washer, pulper, etc used by paper manufacturing
units. AI mainly imports machinery parts from China, Czech
Republic and Korea, and sells the product to various paper
manufacturing units in the domestic market.

The firm has achieved a total operating income of INR16.10 crore
with PAT of INR0.62 crore for FY12 (refers to the period April 1
to March 31). AI has achieved total operating income of INR18.80
crore in FY13 (provisional).


CORE EDUCATION: CARE Cuts Rating on INR996.40cr Loans to 'BB+'
--------------------------------------------------------------
CARE revises ratings on bank facilities/instrument of Core
Education & Technologies Limited.

                                Amount
   Facilities                 (INR crore)   Ratings
   -----------                -----------   -------
   Long-term Bank Facilities     696.40     CARE BB+ Revised from
                                            CARE BBB+

   Long/ Short-term Bank         150.00     CARE BB+/CARE A4+
   Facilities                               Revised from CARE
                                            BBB+/CARE A3+

   Non Convertible Debenture     150.00     CARE BB+ Revised from
   (NCD)                                    CARE BBB+

Rating Rationale

The revision in the ratings of CETL takes into account continued
liquidity stress coupled with substantial repayments due in the
next 12 months. The company's financial flexibility is further
adversely affected due to continued erosion in the share price and
market capitalization of the company. The ratings continue to
reflect the weakening debt protection measures of the company
due to the large repayments, debt-funded growth strategy and
various projects undertaken by it in India, risks associated with
CETL's foray into the setting up of model schools under the Public
Private Partnership (PPP) initiative of the Government of India
and geographical concentration risk.

The ratings strengths include CETL's strong position as a global
provider of technology-based education solutions and services, its
diversified product portfolio, strong order book position,
declined but high profitability margins and CETL's track record in
the execution of the state government projects under the Sarva
Shiksha Abhiyan (SSA) programme.

CETL's ability to improve working capital management, large debt
funded acquisitions and scale of model school project in India are
the key rating sensitivities.

CETL was incorporated on April 11, 1985 as a textile trading
company named Akhileshwar Trading Company Limited. It shifted its
focus towards the Information Technology (IT) domain in 2003. In
2005, CETL ventured into the education segment and through several
acquisitions within this segment, gradually expanded its business
globally. CETL is a CMMi Level 5 and ISO 9001:2008 certified
organization. The solutions provided by the company are being used
by around 90,000 schools globally (including over 10,000 schools
in India).

CETL reported a total income of INR1,907 crore and a Profit After
Tax (PAT) of INR271 crore in FY13 (refers to period April 1 to
March 31) as against a total income of INR1,687 and PAT of INR323
crore in FY12.


EDUCOMP SOLUTIONS: CARE Cuts Rating on INR404.08cr Loan to 'D'
--------------------------------------------------------------
CARE revises the ratings assigned to the receivables assignment
facility of Educomp Solutions Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Receivables Assignment        404.08      CARE D Revised from
   Facility                                  'CARE BBB- (SO)*'

   * Backed by unconditional and irrevocable corporate guarantee
     from Educomp Solutions Ltd

Rating Rationale

The rating revision of the above facilities takes into
consideration the ongoing delays in its debt servicing on account
of operational delays in execution of smartclass contracts by Edu
Smart Services Pvt Ltd, thereby, leading to late realizations of
payments from schools.

Transaction Structure
The receivable assignment facility is a transaction between ESL,
the assignor and an assignee (bank), wherein, the receivables of
ESL's Smart Class product have been assigned. The sale of the
'Smart Class' is effected through a tripartite agreement signed
amongst Edu Smart Services Pvt Ltd, ESL and the respective school.
Under this transaction, ESL, the assignor has assigned its future
net receivables of INR675 crore to be received from ESSL to the
bank. As per the assignment agreement, the bank has received all
rights, title and interest of ESL's receivables of ESSL
aggregating INR675 crore. Against the same, the bank has
sanctioned to ESL receivables assignment facilities (in various
tranches) aggregating to INR410 crore. The credit enhancement for
this transaction is in the form of unconditional and irrevocable
guarantee provided by ESL.


GAURAV EARTHMOVING: CARE Reaffirms BB Rating on INR10.5cr Loan
--------------------------------------------------------------
CARE reaffirms the ratings assigned to bank facilities of
Gaurav Earthmoving Equipments Pvt. Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       10.50     CARE BB Reaffirmed
   Short-term Bank Facilities       1.15     CARE A4 Reaffirmed

Rating Rationale

The ratings of Gaurav Earthmoving Equipments Pvt Ltd continue to
be constrained by limited product offering, supplier &
geographical concentration risk with pricing constraints and
low networth base. The above constraints more than offset the
benefits derived from the experience of the promoter and sole
dealership of earthmoving equipments of JCB India Ltd. for the
state of Jharkhand.

The improving scale of operation and margin along with the
effective management of inventory, demand prospects for
construction equipments and regular renewal of agreement with JCB
are the key rating sensitivities.

GEEPL is an authorised dealer of JCB for heavy earthmoving
equipments, spare parts and for providing after-sales services
from April 1, 2007. The company is the sole dealer of JCB products
in Jharkhand and operates through eight branches.

In FY13 (provisional), GEEPL earned PAT of INR1.4 crore (Rs.1
crore in FY12) on total income of INR134.2 crore (Rs.110.9 crore
in FY12).


GLOMET TECHNOLOGIES: CARE Rates INR7cr LT Loan at 'CARE B+'
-----------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Glomet Technologies Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term/Short-term            7         CARE B+/CARE A4
   Bank Facilities                           Assigned

Rating Rationale

The ratings assigned to the bank facilities of Glomet Technologies
Private Limited are primarily constrained on account of its short
track record of operations, moderately leveraged capital structure
and risk associated with the recently completed project and the
ongoing capex.

The rating is further constrained on account of the customer
concentration and raw material price fluctuation risk.

The rating, however, favorably takes into account the experienced
and resourceful promoters in the chemical industry, reputed client
profile and location advantage with stable demand.

The ability of GTPL to achieve envisaged capacity utilization,
increase scale of operations and improvement in profitability in
light of raw material price fluctuations and capital structure,
along with timely completion of capex, are the key rating
sensitivities.

Ahmedabad-based GTPL was incorporated in 2010 as a private limited
company. GTPL is engaged in the manufacturing of Cuprous Chloride,
which finds application in copper-based pigments and
other copper-based products. The promoters of GTPL, namely, Amrut
Patel, Sukhdev Damani and Jayesh kumar Damani are having
experience of more than a decade in the chemical industry. GTPL
operates through its sole manufacturing unit with 3,600 Metric
Tonnes Per Annum (MTPA) capacity at Dahej (SEZ), Gujarat.
Furthermore, GTPL is setting up a backward integration
plant for manufacturing Copper Cathode with an installed capacity
of 1,200 MTPA, which is likely to become operational from Q3FY14.

As per provisional results for FY13, GTPL reported a total
operating income of INR10.85 crore and a net profit of INR0.03
crore.


H-RECK ENGINEERS: CARE Rates INR9.23cr LT Loan at 'CARE BB'
-----------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of H-reck Engineers Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities      9.23       CARE BB Assigned
   Short-term Bank Facilities     9.00       CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of H-Reck Engineers
Private Limited is constrained by modest scale of operations,
moderately leveraged capital structure and weak debt coverage
indicators. The ratings are further constrained by working capital
intensive nature of operations, moderately low order book position
along with inherent industry risk characterized by it being
present into highly competitive industry with low bargaining
power.

The ratings derive strength from experience of promoters in the
engineering and construction industry, association with reputed
client base and diversified clientele base.

The ability of HEPL to continue to secure orders from its reputed
client base and subsequently improve its scale of operation and
profitability and also efficiently manage its working-capital
cycle are the key rating sensitivities.

Established as a proprietorship entity by Krishnakumar Assar in
1979 and subsequently reconstituted in 1996, H-Reck Engineers
Private Limited, is a turnkey contractor having specialization in
the field of civil, mechanical and electrical engineering. Over
the years, the company has executed projects for various reputed
companies across industries like, automobiles, beverages,
industrial chemicals, pesticides, pharmaceuticals, petrochemicals,
power and others.

HEPL carries out its mechanical fabrication at its production
facility at Ghatkopar, Mumbai, Maharashtra.

During the FY12 (refers to the period from April 01 to March 31),
HEPL reported total income of INR51.51 crore (up by 17.17% vis--
vis in FY11) and PAT of INR1.18 crore (down by 24.35% vis--vis
FY11). As per the provisional FY13 results, HEPL has posted total
income of INR61.56 crore and PAT of INR2.56 crore.


KHALILABAD SUGAR: ICRA Reaffirms 'D' Rating on INR10.5cr Loan
-------------------------------------------------------------
ICRA has reaffirmed the rating of '[ICRA]D' for the INR10.50 crore
fund based and non-fund based limits of Khalilabad Sugar Mills
Private Limited.

The reaffirmation of the rating factors in the company's poor
financial risk profile characterized by financial losses, complete
erosion of its net worth (which has also resulted in a reference
to the BIFR as a sick company) and delays on debt servicing
obligations. ICRA's rating also factors in the poor operating
profile as characterized by a lack of forward integration into co-
generation and distillery, as well as risks arising out of the
inherent cyclicality in the sugar business and vulnerability to
agro-climactic factors and government policies governing cane
pricing and pricing of by-products.

Khalilabad Sugar Mills Pvt. Ltd is a standalone sugar mill with a
crushing capacity of 2500 tcd, under the ownership of Auro Sugar
Private Limited. The manufacturing facility is located in
Khalilabad, Distt. Sant Kabir Nagar in Uttar Pradesh. The company
was incorporated in January, 1984 under the ownership of Jaipuria
Group. However, after facing financial crisis, it was taken over
by a number of groups but couldn't be revived and subsequently was
declared a sick unit under BIFR. After that, it was taken over by
its present owners - Auro Sugars.

During 2011-12, the company had posted a loss of INR21.88 crore on
the back of an operating income of INR63.72 crore. KSMPL had
posted a loss of INR17.46 crore against an operating income of
INR39.70 crore in 2010-11.


MICA INDUSTRIES: ICRA Cuts Ratings on INR15.9cr Loans to 'B'
------------------------------------------------------------
ICRA has revised the ratings of the INR15.90 crore long term fund
based facilities and term loans of Mica Industries Limited to
'[ICRA]B') from '[ICRA]B+'.  ICRA has reaffirmed the rating of the
INR29.00 crore short term fund and non fund based facilities at
'[ICRA]A4'.

                              Amount
   Facilities               (INR crore)   Ratings
   -----------              -----------   -------
   Fund based limits            12.00     [ICRA]B (revised)
   Term loans                    3.90     [ICRA]B (revised)
   Non fund based limits        29.00     [ICRA]A4 (reaffirmed)

The rating revision takes into account the refinancing risk on
account of a large bullet repayment falling due in July 2013. The
repayment pertains to a term loan availed by the company for a new
project implementation, which however has got delayed. The ratings
continue to be constrained by MIL's high working capital intensity
on account of long receivable period and substantial inventory
requirements. The high working capital requirements coupled with
large capex incurred by the company towards payment of land for
its new plant in Bhiwadi has led to pressure on its liquidity
position. While the company has received equity infusion of
INR2.43 crores in FY 2013, the same has been utilized towards land
payment which rendered the company dependent on external
borrowings. Consequently, the leverage remains high at 3.05 times
as on March 31, 2013 leading to limited financial flexibility.

The rating however favorably factors in the long track record of
the promoters in the industry and their established relationships
with reputed cable manufacturers which have led to stable order
inflow. Going forward, MIL's ability manage its liquidity position
given the working capital requirements and timely arrange funds
for the upcoming bullet repayment will be key rating
sensitivities.

Mica Industries Limited is a closely held limited company based in
New Delhi. The company is primarily engaged in the production of
G.I. Wires and spring steel wires. MIL was promoted by Mr. V.N.
Gupta along with his sons Mr. Vinay Gupta and Mr. Vikas Goel,
having a background in the trading business. The company is
certified by the Bureau of Indian Standards IS: 3975:1999 and is
also ISO 9001 certified. MIL's registered office is located in New
Delhi and it has two manufacturing plants in Bhiwadi (District
Alwar) Rajasthan having a combined manufacturing capacity of over
47,000 tpa.

Recent results

As per the unaudited provisional results provided by the company,
in the financial year ending Mar 31st 2013, MIL earned an
operating income of INR196.3 crore, a 14.7% growth over previous
year. The OPBDIT stood at INR13.8 crore leading to an operating
margin of 7.0 %, down from 8.2% in previous year. The PAT stood at
2.8 crore leading to a net margin of 1.4%, marginally higher from
1.0% previous year. As of Mar 31st 2013, the networth stood at
INR32.0 crores. With total debt of INR97.5 crore, company's
leverage improved marginally from 3.13 times as of Mar 31st 2012
to 3.05 times as of March 31, 2013.


SAHAJANAND COTTON: CARE Rates INR6.36cr LT Loan at 'CARE B'
-----------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of
Sahajanand Cotton Industries.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       6.36      CARE B Assigned

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

Rating Rationale

The rating assigned to the bank facilities of Sahajan and Cotton
Industries (SCI) is primarily constrained on account of its short
track record of operations and leveraged capital structure. The
rating is further constrained on account of presence in a highly
competitive and fragmented cottonginning industry with limited
value addition and volatility associated with the raw material
(cotton) prices.

The rating, however, favourably takes into account the experience
of the partners and SCI's proximity to the cotton-producing region
of Gujarat.

Increase in the scale of operations with improvement in the profit
margins and capital structure, while managing working capital
efficiently is the key rating sensitivity.

Bhavnagar-based (Gujarat), SCI is established as a partnership
firm in September 2011, by seven partners, namely, Rameshbhai
Vegad, Dharmeshbhai Patel, Manishbhai Vegad, Mansukhbhai Vegad,
Jagdishbhai Patel, Vijuben Patel and Mamtaben Lakhani. SCI is
engaged in the manufacturing of cotton bales, cotton seeds and
cotton seed oil (Oil mill). SCI operates from its sole
manufacturing plant located at Bhavnagar (Gujarat), which is one
of the prominent cotton-producing regions of the state with an
installed capacity for cotton bales of 11,088 metric tonnes per
annum (MTPA) and for cotton seeds 7,200 MTPA, as on March 31,
2013. SCI commenced its commercial operations from November 2012.

As per the five-month provisional results for FY13, SCI reported a
total operating income of INR20.41 crore and a net profit of
INR0.01 crore.


SAMARTH SAI: ICRA Assigns 'B' Rating to INR3cr LT Loan
------------------------------------------------------
ICRA has assigned the long term rating of '[ICRA]B' to the INR3.00
crore fund based bank limits of Samarth Sai Logistics Private
Limited. ICRA has also assigned a short term rating of '[ICRA]A4'
to the INR4.00 crore short term non fund based bank limits of
SSLPL.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long Term Fund Based             3.00     [ICRA]B Assigned
   Limits-Cash Credit

   Short Term Non Fund              4.00     [ICRA]A4 Assigned
   Based Limits-LC

The ratings are constrained by weak financial risk profile
characterized by small scale of operations which have started
since FY 2012-13, low profitability as inherent in the trading
business and stretched liquidity emanating from high debtors days
and inventory requirements. The ratings are also constrained by
stiff competitive pressures in the industry from unorganized
players due to low entry barriers and susceptibility to adverse
currency fluctuations. The ratings however take comfort from the
logistical support by the group concern and favorable demand
outlook with increasing deficit in domestic coal market. Going
forward, the ability of the company to establish its market
position and scale up its operations by widening its distribution
network remain the key rating drivers.

Established in 2011 as private limited company, Samarth Sai
Logistics Private Limited (SSLPL) is engaged in the trading of non
coking coal. The company has two directors Mr. Maheshbhai Babubhai
Patel and Mrs. Sushilaben Maheshbhai Patel with a shareholding
pattern of 80.40% and 19.60% respectively. The company has its
registered office in Mumbai, Maharashtra.

Recent Results

During 2012-13, the company has reported a net profit of INR 0.03
crore on an operating income of INR2.02 crore.


SAVFAB BUILDTECH: ICRA Raises Rating on INR28cr Loan  to 'BB-'
--------------------------------------------------------------
ICRA has upgraded the rating earlier assigned to the INR 28.0
crore fund based limits of Savfab Buildtech Private Limited from
'[ICRA]B+' to '[ICRA]BB-'.  The outlook on the rating is Stable.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Fund based limits               28.0      [ICRA]BB-(upgraded)

The rating upgrade factors in the healthy level of bookings and
improved collection efficiency in Savfab's project Saviour Park,
which supported by the good response for the newly launched tower
in FY 2013 has led to a comfortable liquidity position for the
company. The rating also draws comfort from the fact that the
promoters have brought in majority of their contribution and that
the first phase is in advanced stages of completion for which the
rated limits have been raised. The rating is however constrained
by the overall project completion risks as the company plans to
increase the scope of the project by applying for additional FAR.
The approval for additional FAR has got delayed which has also led
to delay in launch of balance phases.

Going forward, the company's ability to execute the project as
planned and timely collect the receivables will be key rating
sensitivities. The additional FAR approval will necessitate higher
upfront cash outflows. Given that majority of the debt repayment
is falling due in FY2015, the company's ability to timely launch
the balance phases and ramp up sales velocity will be crucial for
smooth cashflow management. Alternatively timely promoter support
in case of any contingency will also be a key rating sensitivity.
Recent results As on March 31, 2012, the company had a networth of
INR5.0 crore and a total debt of INR14.7 crore which included
promoter unsecured loans of INR4.1 crore. The company has not
recognized revenue from its project in FY 2012.

Savfab Buildtech Private Limited is a special purpose vehicle
formed to develop a residential real estate project called Saviour
Park in the Mohan Nagar area of Ghaziabad, National Capital
region. Launched in September 2010, the project is spread over a 9
acre land parcel and is being executed in phases. The land parcel
is under a joint development agreement with two companies. SBPL is
entirely responsible for development and marketing of the project
and in turn will give a pre decided revenue share to the land
owning companies. Out of the six towers planned, the first phase
consists of two towers with 304 flats (2/3/4 BHK) with an
aggregate saleable area of 4.3 lakh sq ft. The total project cost
for phase 1 is INR120 crores proposed to be funded by INR28 crores
bank loan, INR28 crore promoters' contribution and balance by
customer advances. The entire project is envisaged to have around
1000 flats and is proposed to be completed by 2017.

The company currently has floor area ratio permission for -7.4
lakh sq ft and is in process for applying for additional FAR
permissions. The funding of the balance phases is expected to be
done through customer advances and promoter's contribution. The
company is promoted and managed by a group of first generation
entrepreneurs mainly headed by Mr. Dhanesh Goel and Mr. Vineet
Goel.


SHREE CHHATRAPATI: ICRA Reaffirms 'B' Ratings on INR9.84cr Loans
----------------------------------------------------------------
ICRA has reaffirmed the 'ICRA B' rating to INR6.84 crore (reduced
from INR7.88 crore) term loans as well as long term fund based
limits of INR3.00 crore (enhanced from INR1.40 crore)of Shree
Chhatrapati Shahu Milk and Agro Producer Company Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long term, fund based          6.84       [ICRA]B (reaffirmed)
   limits-Term Loans

   Long term, fund based          3.00       [ICRA]B (reaffirmed)
   limits-Cash Credit

The rating reaffirmation takes into account the established
presence of Shahu group in Kolhapur District of Maharashtra along
with healthy improvement in milk procurement levels since
inception. The rating however is constrained with stretched
financial risk profile marked with continuing losses as also high
gearing levels with low coverage indicators. Further, milk being
an animal product; the availability is contingent on the agro
climatic conditions as well as health status of the dairy animals.
Intense competition on account of fragmented nature of the
industry marked by presence of number of small milk processors
along with large players further limits the profitability of the
company. The dairy sector is also vulnerable to regulatory changes
like procurement pricing and export restrictions ultimately
influencing the revenues to the company.

Incorporated in September 2009, Shahu Milk is engaged in milk
procurement, milk processing, selling of milk and milk products.
The company is a cooperative unit with close to 8000 shareholders
as on March 31, 2013. Installed milk processing capacity of the
plant is 100,000 litres per day. Shahu Milk started actual
operations from April 21st 2010. The company procures milk from
cooperative societies located largely in Kagal and Karveer talukas
in Kolhapur district. The company has also set up two chilling
centres in Kolhapur district which will help the company improve
shelf life of the collected milk.

The company has products like cow milk, full cream milk, toned
milk, ghee, shreekhand, amrakhand, lassi, curd, basundi among
others in its portfolio. Products of the company are currently
sold in Kolhapur, Pune, Sindhudurg and Ratnagiri districts in
Maharashtra. Some products are also sold Goa and parts of
Karnataka. The company also provides services like veterinary
services, supply of concentrate, artificial insemination, and
assistance in bank finance for buying cattle.


SHRIPAL EDUCATIONAL: CARE Rates INR5.32cr LT Loan at 'CARE B+'
--------------------------------------------------------------
CARE assigns 'B+' rating to the bank facilities of Shripal
Educational Society.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term bank facilities       5.32      'CARE B+' Assigned

Rating Rationale

The rating assigned to the bank facilities of ShriPal Goel
Educational Society is constrained due to its short track record
and small scale of operation, intense competition from other
established and upcoming educational institutes and regulatory
risk pertaining to educational sector in India.

The above constraints are partially offset by strengths derived
from the experienced management, satisfactory infrastructure and
positive outlook & high growth potential for the educational
sector.

SPES's ability to improve its enrolment rate with simultaneous
improvement in income from operations, increase number of students
and faculty as envisaged and establishment of strong brand name
would remain the key rating sensitivities.

ShriPal Goel Educational Society was established in September,
2008 and is registered under the Registrar of Societies Act, U.P.,
to establish educational institutes imparting education in various
professional disciplines in Saharanpur, Uttar Pradesh. In the
academic year 2010-2011, the society started an Engineering
college under the name of Indraprastha Institute of Management &
Technology (IIMT) with 420 seats. Further, in the academic year
2012-2013, the society increased its student intake capacity to
540 seats with addition of two new full time diploma courses in
Mechanical & Electrical Engineering. Currently, there are 41
qualified faculty members in IIMT ensuring student faculty ratio
of approx 17:1. The institute is approved by All India Council for
Technical Education (AICTE) and affiliated to U.P. Board of
Technical Education (UPBTE), Lucknow and Mahamaya Technical
University (MTU), Noida. The strategy & policy decisions are taken
care of by a committee comprising of five Trustees.

Overall, the day to day activities of the society are managed by
Dr. Subhash Chandra Kulshreshtha (Chairman), who is ably assisted
by other four trustees (the members of aforesaid committee).
The promoter group also runs several educational institutions
under the name of Shri Ram Charitable Trust (rated CARE BB+) and
Chaudhary Harchand Singh group of Colleges, offering various under
graduate and post graduate courses having campus situated out of
Uttar Pradesh.

In FY12 (refers to the period from April 1 to March 31), SPES
reported a net surplus of INR13.0 lakh (net deficit of INR39.7
lakh in FY11) on total income of INR250.8 lakh (Rs.120.2 lakh in
FY11).


SKY LINE: ICRA Rates INR15cr Fund-based Limits at 'B'
-----------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B' to INR15.00
crore fund-based limits of Sky Line Infra Heights Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Fund-based Limits              15.00      [ICRA]B Assigned

The rating reflects SIHPL's exposure to significant marketing
risks as the company is yet to start the bookings for the project;
further the risk is accentuated by the expected increase in supply
of real estate in the vicinity of the project. The rating also
takes into account execution risks as this project is first-ever
high rise development by the promoters and size of this project is
significantly larger than that of the past projects of the group.
Furthermore, the rating factors in the funding risks faced by the
company as the bank lines for the project have not been sanctioned
and also because part of the project cost is expected to be met
through customer advances, which are contingent on the company's
ability to sell the space as well as maintain healthy collection
efficiency. Also, the rating is constrained by the geographical
concentration of the operations of the group, with all its
projects located in Kanpur (Uttar Pradesh).

The rating, however, derives comfort from the promoter's long
track record in real estate market, good reputation of the group
in Kanpur (Uttar Pradesh), and also from the fact that all the
necessary approvals for launch of the project have been received.
Going forward, garnering healthy bookings as well as advances and
satisfactory execution on the project will be the key rating
sensitivities.

Skyline Infra Heights Pvt Ltd, incorporated in 2010, is involved
in real estate and construction activities in Kanpur. Mr. Sharad
Agarwal, SIHPL's managing director has been involved in the
property business in Kanpur since eight years; the group has
established real estate interests through other companies -
Skyline Structures and B.S. Structures. SIHPL has been formed to
construct a group housing project- The Peak- at Mainawati Marg in
Kanpur. First phase of the project will consist of 160 flats
spread across two towers of eight floors each. The cost of the
project is -INR34 crore while the saleable value is -INR37 crore.
The bookings have not yet started.


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


BUMI RESOURCES: Moody's Continues to Monitor Refinancing Actions
----------------------------------------------------------------
Moody's Investors Service says it continues to closely monitor
Bumi Resources' (B3 review for downgrade) ability to refinance its
upcoming maturities on a timely basis.

Moody's will also closely monitor for concrete signs of
refinancing materializing over the next two weeks.

"As August approaches, refinancing risk increases for Bumi
Resources. Its ability to refinance the USD150 million term loan
in a timely manner could hinge on whether the legal separation
from Bumi Plc. is further delayed and whether the company is able
to finalize its negotiations to monetize its assets in a timely
manner," says Simon Wong, a Moody's Vice President and Senior
Credit Officer.

"If Bumi Resources is unable to show any concrete signs of
refinancing over the next two weeks, Moody's will consider
downgrading its ratings further", adds Wong, also the Lead Analyst
for Bumi Resources.

Moody's understands from Bumi Resources that it is looking at
monetizing assets in Bumi Resources Minerals (BRM, unrated) to
reduce its outstanding debt. A timely completion of negotiations
will help its refinancing endeavors.

However, there is no clear timeframe on the separation of Bumi
Resources from Bumi Plc. Bumi Plc.'s efforts in recovering cash
and assets worth up to $173 million from a former director of
Berau Coal Energy, a subsidiary of Bumi Plc., could further delay
the legal separation of Bumi Resources from Bumi Plc.

In February 2013, Bumi Plc. signed an agreement to divest its
entire 29.2% stake in Bumi Resources to the Bakrie Group. The
transaction, initially proposed in October 2012 by the Bakrie
Group, awaits the approval of Bumi Plc.'s shareholders.

In addition to the maturity due in August, $406 million of loans
at Bumi Resources Minerals will mature in September. The latter is
non-recourse to Bumi Resources.

Bumi Resources has a very weak credit profile, due to its weak
liquidity and debt-protection metrics, with consolidated debt-to-
EBITDA of over 7-8x; EBIT interest coverage of less than 1x
expected for 2013; and negative free cash flow generation. Its
production volume in 1H 2013 is estimated to be approximately 38
million tons. However, its full-year production target of 74
million tons and operating cash flow could be reduced if a work
stoppage by a mining contractor at the Arutmin mine since late
April is prolonged.

Bumi Resources is Indonesia's largest thermal coal producer and
one of the three largest thermal coal exporters globally. Through
its principal assets (a 65% stake in PT Kaltim Prima Coal and a
70% stake in PT Arutmin), Bumi Resources produced 66 million tons
of coal in 2011 and which accounted for approximately 19% of
Indonesia's total coal production. Its non-coal resource holding
company, Bumi Resources Minerals, was listed on the Indonesian
Stock Exchange on December 9, 2010. Bumi Resources currently owns
87.09% of Bumi Resources Minerals.

Bumi Plc., previously known as Vallar Plc., currently has a 29.2%
stake in Bumi Resources.



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


L-JAC7 TRUST: Moody's Lowers Ratings on Two Trust Certificates
--------------------------------------------------------------
Moody's Japan K.K. has downgraded the ratings on the trust
certificates issued by L-JAC7 Trust.

The affected ratings are as follows:

.Class B Trust Certificates, downgraded to Ca (sf); previously on
Jul 20, 2012, downgraded to B2 (sf)

.Class C Trust Certificates, downgraded to C (sf); previously on
Jul 20, 2012, downgraded to Ca (sf)

Transaction Name: L-JAC7 Trust

Class: Class B and C Trust Certificates

Issue Amount (initial): JPY6.29 billion

Dividend: Floating

Issue Date: March 31, 2008

Final Maturity Date: October 25, 2014

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

Originator (Initial): Lehman Brothers Japan Inc. and Lehman
Brothers Commercial Mortgage K.K.

Arranger (Initial): Lehman Brothers Japan Inc.

Ratings Rationale:

The rating actions on the trust certificates were prompted by
Moody's expectation that they will incur higher losses from a
decrease in recoveries from the special servicing of the
underlying loan and bonds.

The transaction is currently secured by one non-recourse loan and
two TMK bonds, each backed by an office building. According to the
special servicer, potential sales proceeds from certain office
buildings will fall short of Moody's assumptions made at the last
rating action in July 2012.

For the office building remaining in the portfolio, the rent is
within Moody's assumptions, but the occupancy is far below Moody's
expectations. Nonetheless, the occupancy rate has been improving
since June 2012.

Moody's has therefore revised its occupancy assumption. The new
valuation is approximately 36% lower than the one estimated in
July 2012.

Both Class B and C certificates are now expected to incur a higher
loss, and are downgraded to Ca (sf) and C (sf) respectively.

The primary sources of assumption uncertainty are the performance
of the remaining office building, especially relating to occupancy
rates and rents, and the potential sales proceeds from special
servicing.

Moody's loss and cash flow analysis is based mainly on: 1) the
underlying properties' valuation, 2) the certificates'
amortization mechanism, and 3) the legal and structural integrity
of the transaction. In determining the valuation of the remaining
office building, Moody's considered different occupancy rates.
Therefore, Moody's analysis encompasses the assessment of stress
scenarios.

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


OLYMPUS CORP: 3 Former Execs Get Suspended Prison Sentences
-----------------------------------------------------------
Shawn Schroter at The Wall Street Journal reports that a Tokyo
court convicted three former Olympus Corp. employees for their
roles in the company's years long cover-up of $1.5 billion in
investment losses, though none of the three are likely to serve
time in prison.

The Journal says the court handed down a suspended prison
sentences to former Olympus Corp. chairman Tsuyoshi Kikukawa, as
well as former auditor Hideo Yamada and former executive vice
president Hisashi Mori, while imposing a JPY700 million
(about $7 million) fine on the company itself.

All three men pleaded guilty last year to charges that they were
involved in falsifying financial statements between fiscal 2006
and 2010 by overstating the company's net assets through the
purchase of U.K. medical equipment maker Gyrus Group, the Journal
recounts.  Olympus used heavily inflated advisory fees in the
acquisition to cover up losses that had been made years earlier,
the report relays.

While all three men were convicted and given prison sentences,
suspended sentences effectively amount probation periods without
time behind bars, according to the Journal.

According to the Journal, the Olympus saga -in which the company
concealed investment losses for 13 years -not only damaged the
company's reputation and weakened its finances, but raised
questions about governance and transparency at Japanese
corporations.

The Journal relates that the scandal was brought to light in
October 2011 when former Chief Executive Michael Woodford was
abruptly dismissed after raising questions about the firm's
practices.  The Journal notes that Mr. Woodford, one of a small
number of foreigners appointed CEO by a Japanese company,
proceeded to blow the whistle on misdeeds at the company,
eventually leading to criminal charges against a number of senior
executives.

In 2012, the Journal says, the Financial Services Agency slapped
Olympus with a JPY191.8 million fine for falsification of
financial statements.

Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products.  As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.



===============
M O N G O L I A
===============


* Mongolia Election Makes Space for Greater Policy Clarity
----------------------------------------------------------
Incumbent Tsakhia Elbegdorj's victory in last week's Mongolian
presidential election creates space for the authorities to reduce
policy uncertainty, particularly around foreign investment in
mining and macroeconomic management, Fitch Ratings says. This
could potentially result in higher growth and improved fiscal
performance and external finances, which would support Mongolia's
sovereign credit profile.

Elbegdorj's victory should consolidate the hold on power by the
Democratic Party, the largest member of the coalition government.
Elbegdorj received slightly more than 50% of the vote, avoiding a
run-off vote. DP members will now hold all major political posts
ahead of the next parliamentary elections in 2016.

A period of political stability could allow the Mongolian
authorities to clarify their plans for the country's mining regime
through a new mining law, and its foreign investment regime
through amendments to existing laws. These key policy areas have
been subject to some uncertainty in recent months, against a
backdrop of populist pressure to reassert Mongolian ownership of
resource assets, especially since last year's parliamentary
elections.

"When we affirmed Mongolia's 'B+' rating and Stable Outlook in
November 2012, we said a strengthened policy framework would
support the sovereign credit profile. Since then, some credit
negative policy uncertainty has emerged. The biggest and most
visible example has been the delay of copper exports from the huge
Oyu Tolgoi mine jointly owned by the Mongolian government and Rio
Tinto Group beyond their scheduled start date in mid-June. This
has come as Rio Tinto and the government attempt to resolve
various disputes about cost overruns and mine management," Fitch
says.

Mongolia's fiscal deficit deteriorated sharply from 4.8% of GDP in
2011 to 8.4% in 2012, as revenue intake fell short of expectations
and was far outpaced by expenditure growth (despite capex being
under-executed). The government's ability to comply with the
fiscal discipline enshrined in the Financial Stability Law, which
caps the structural deficit at 2% of GDP and limits expenditure
growth from this year, will be severely tested as the law implies
significant tightening of spending.

The Bank of Mongolia has cut its policy rate and credit growth has
begun accelerating again, reaching 34.4% in May, from 23.9% in
December. This has contributed to market pressure on the tugrik,
which has depreciated by 3.7% so far this year against the US
dollar.

Resolving uncertainty in these areas could prove credit positive
by alleviating investors' concern and sparking renewed FDI
inflows, which would bolster Mongolia's ability to capitalise
economically on its natural resources and lessen the pressure that
lower commodity prices and falling FDI have put on the balance of
payments.

"We would expect an improvement in the balance of payments once
the Oyu Tolgoi mine comes on stream, while further unexpected
delays could intensify pressure on Mongolia's external finances.
FDI inflows for the second phase of the project would help fund
the current account deficit in 2013. The sovereign's fiscal
position, which is heavily reliant on mineral revenue, would also
get a timely boost," Fitch says.



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


LM INVESTMENT: Investors Face 'Significant Devaluations'
-------------------------------------------------------
Simon Danaher at International Adviser reports that the status of
a series of funds managed by LM Investment Management has been
described as "severe" in a report from a delegation of advisers
who visited Brisbane earlier this month.

The report says LM Investment Management, which entered voluntary
administration in March this year, ran a collection of funds which
invested in the Australian property market, either by buying
property and land for development directly, or by providing
mortgages to developers.

Due to a fall in property prices over the past few years, the
value of the underlying investments within the funds has fallen
significantly, the report relates.

International Adviser says the funds managed by LMIM were the: LM
Australian Structured Product Fund, the LM First Mortgage Income
Fund, LM Currency Protected Australian Income Fund, LM
Institutional Currency protected Income Fund, LM Australian Income
Fund, LM Managed Performance Fund and LM Cash performance Fund.

According to the report, the advisers who visited Australia
earlier this month were representatives from Magellan, based in
Tokyo, Financial Partners, based in Hong Kong and Mondial, based
in Dubai.

In a summary of the report, a copy of which was passed to
International Adviser by an investor, the advisers said "the
position of the funds is severe and will likely result in very
significant devaluations".

During its seven day visit, International Adviser relates, the
adviser team said it had "extensive meetings" with all relevant
parties. This includes the voluntary administrator (FTI) for LMIM
and fund manager for the FMIF (and other smaller funds), the fund
manager for MPF (KordaMentha), the Australian Securities and
Investment Commission and the remaining former directors of LMIM.

In addition, the report says, the advisers met with SunCorp -- the
largest individual lender to the MPF and the legal counsel to the
Adviser's Committee for Investors -- a new body being established
to represent the views of investors.

International Adviser adds that outlining the "core issues" the
adviser delegation said: "All properties have decreased in value,
some quite dramatically and are not being developed (completed and
sold) due to a lack of liquidity. Thus true asset values are far
lower than expected and reported. The reported values also include
interest that is either not paid or paid through a further loan
(generally from the second mortgage holder)."

New Zealand Herald reported that voluntary administrators have
been appointed to LM Investment Management, a beleaguered
Australian firm that controlled a frozen mortage fund which
New Zealanders had more than NZ$100 million tied up in.  LM
directors on March 19, 2013, appointed John Park and Ginette
Muller of FTI Consulting as voluntary administrators, blaming the
move on liquidity problems caused by a smear campaign.

LM is the responsible entity of these registered managed
investment schemes:

-- LM Cash Performance Fund;
-- LM First Mortgage Income Fund;
-- LM Currency Protected Australian Income Fund;
-- LM Institutional Currency Protected Australian Income Fund;
-- LM Australian Income;
-- LM Australian Structured Products Fund; and
-- The Australian Retirement Living Fund.

LM also operates the unregistered LM Managed Performance Fund.

The Supreme Court of Queensland in April appointed KordaMentha and
its affiliate firm Calibre Capital as joint trustees of the AUD350
million Gold Coast-based LM Managed Performance Fund (LMPF).



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


IRPC PUBLIC: Moody's Lowers CFR and Senior Bond Ratings to Ba1
--------------------------------------------------------------
Moody's Investors Service has downgraded to Ba1 from Baa3 the
corporate family rating and senior unsecured bond rating of IRPC
Public Company Limited.

The outlook for all ratings is negative.

The rating action completes Moody's review of the company which
was placed under review for downgrade on April 22, 2013.

Ratings Rationale:

"The downgrade of IRPC's ratings to Ba1 was driven by the
company's continued weaker-than-expected operating performance,
highly leveraged position, weak operating margins, and long lead
time before completion of its Phoenix upgrading program in 2015-
16," says Simon Wong, a Moody's Vice President and Senior Credit
Officer.

"While IRPC is committed to reduce its outstanding debt in the
near to medium term, Moody's expects retained cash flow (RCF) to
adjusted debt to stay below 5% and adjusted EBIT to interest to
remain below 1x for 2013, given the challenging operating
environment and large ongoing capex program, which are not
supportive of its current rating," adds Wong, who is also Lead
Analyst for IRPC.

At end-2012, RCF to adjusted debt was 2.6%, while interest
coverage was negative, primarily because of a 60% decrease in the
company's gross refining margin to USD2.5 per barrel. Despite the
marked improvement in regional refining margins during Q1 2013,
IRPC reported a smaller market gross refining margin of USD2.4 per
barrel.

IRPC is carrying out the Phoenix program which is critical for
improving the medium-to-long-term competitiveness of its refining
and petrochemical business. As a result, Moody's expects IRPC to
report negative free cash flow in 2014-2015. IRPC has approved
total capex of USD1.9 billion for 2013-2017.

IRPC plans to fund its large capex program of USD785 million in
2013, debt prepayments and scheduled repayment through positive
cash flow from its normal operations and the extension of crude
payable days from its parent PTT Public Company Limited (Baa1
stable).

The rating also incorporates a two-notch uplift, an increase from
one-notch previously, that reflects 1) PTT's willingness to
provide additional working capital and intercompany funding
support to reduce IRPC's financial burden while carrying out the
large scale Phoenix project; and 2) the likelihood of PTT
providing extraordinary credit support in a situation of stress.

The negative outlook on the ratings reflects the pressure on
IRPC's financial profile while it executes the Phoenix project as
well as the execution risk in delivering the project on time and
within budget.

IRPC's outlook could change to stable if IRPC successfully
deleverages, such that its RCF to adjusted debt rises above 10%
and EBIT to interest above 1.5-2x on a sustained basis.

A ratings upgrade would require evidence of sustainable positive
operating cash flow generation and consistent improvement in
credit metrics, such as RCF to adjusted debt above 20% and EBIT to
interest above 4x on a sustained basis.

IRPC's ratings could be downgraded if RCF to adjusted debt
consistently remains below 10% and EBIT to interest drops below 1x
on a sustained basis; and/or any material delay occurs on the
execution of the Phoenix project.

The principal methodology used in this rating was the Global
Refining and Marketing Rating Methodology published in December
2009.

IRPC is the second-largest oil refinery and third-largest
petrochemicals producer in Thailand. It is one of six domestic oil
refiners and suppliers of petroleum products in the country.
IRPC's refinery has a nameplate capacity of 215,000 barrels per
day.

The company also produces naphtha and reformate-based
petrochemicals at the same location, and is also a leading
producer of styrene and its derivatives in Thailand. IRPC is
38.51%-owned by PTT Plc.



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


NATIONAL DEVELOPMENT: Fitch Assigns 'B+' Issuer Default Rating
--------------------------------------------------------------
Fitch Ratings has assigned Sri Lanka-based National Development
Bank PLC (NDB) Long-term Foreign- and Local-Currency Issuer
Default Ratings (IDRs) of 'B+' with Stable Outlooks.

Fitch has also assigned NDB a 'b+' Viability Rating (VR), a
Support Rating (SR) of '4', and Support Rating Floor (SRF) of 'B'.

Key Rating Drivers

NDB's LT IDR reflects its standalone risk profile and satisfactory
track record as a project financing institution with historically
stronger capitalisation, asset quality and profitability compared
with other major financial institutions in Sri Lanka. However,
these strengths are counterbalanced by potential risks from NDB's
aggressive loan growth in recent years, and its expansion into
other areas of commercial lending, as it seeks to become a full-
service universal bank.

In funding, Fitch believes that it will take several years before
NDB's share of deposits, and particularly low-cost current and
savings accounts, become comparable to its well-established
domestic peers. This is because of widespread competition in the
industry where loan growth has far outstripped deposits in the
past two to three years.

The SR of '4' and SRF of 'B' reflect Fitch's expectations of
somewhat limited extraordinary support from the state, given the
latter's own fiscal challenges as reflected in its 'BB-' rating,
and NDB's lower systemic importance than larger government banks
or larger systemically important banks.

For further details on NDB please refer to the rating action
commentary dated 24 June 2013, on www.fitchratings.com.

Rating Sensitivities

Successful transformation into a full-fledged universal bank
without any material deterioration in its current credit metrics,
together with an improved operating environment in Sri Lanka,
could result in an upgrade of NDB's IDRs and VR. The Stable
Outlook, however, indicates that this is unlikely to occur over
the next one to two years.

On the other hand, the IDRs and VR could be downgraded if there is
a sustained and substantial weakening in asset quality, in
particular stemming from aggressive loan growth, together with a
material decline in its capital position and other loss absorption
indicators.

The SR and SRF are sensitive to the sovereign's ability and
propensity to provide timely support, particularly if the
sovereign rating were to change. The SRF could be upgraded if
NDB's share of banking system assets and deposits were to increase
to levels that are more in line with other systemically important
domestic banks.

NDB was established in 1979 as a specialised bank and transformed
into a licensed commercial bank in 2005. The government of Sri
Lanka indirectly held over 30% of NDB's voting shares at end-March
2013, through various state-owned institutions.

A full list of NDB's ratings:

Long-Term Foreign- and Local-Currency IDRs assigned at 'B+';
Stable Outlook

Short-term Foreign Currency IDR assigned at 'B'

Viability Rating assigned at 'b+'

Support Rating assigned at '4'

Support Rating Floor assigned at 'B'

National Long-Term Rating affirmed at 'AA-(lka)'; Stable Outlook

Outstanding subordinated debentures affirmed at 'A+(lka)'


* Moody's Changes Outlook on Sri Lanka to Stable
------------------------------------------------
Moody's Investors Service changed the outlook on Sri Lanka's B1
foreign currency sovereign rating from positive to stable, and
affirmed its B1 foreign currency government bond rating. The
action was prompted by:

1) The stabilization in the external payments position, following
the sizable loss of foreign reserves in 2011, but without enough
improvement to support a positive rating action at this time; and

2) The pause in the decline in the government's very high debt
burden, as ongoing large deficits impede a reduction that would be
credit positive.

Ratings Rationale:

The first driver underlying Moody's decision to affirm Sri Lanka's
B1 rating and revise its outlook from positive to stable is a
decline in the strength of the external payments position in the
past two years.

In defending the currency in the face of a sharply widening
current account deficit, reserves fell from a high of $8.1 billion
in July 2011 to a low of $5.5 billion in February 2012. In
addition, the rapid rise in banks' net foreign liability position
since July 2011 -- involving an almost doubling to $3.4 billion as
of February 2013 -- could lead to pressure on the external
payments position, if creditor sentiment deteriorates, or if the
current account deficit widens.

Nevertheless, since late last year there has been a stabilization
of the external payments position. The government has taken
remedial measures, including abandoning the de facto currency peg
to the dollar, tightening monetary policy, and raising tariffs on
imports. These measures have reduced the current account deficit
somewhat, and official foreign exchange reserves have stabilized,
standing at $6.9 billion as of April 2013. However, these reserves
remain considerably below the peak achieved when the outlook was
changed to positive in July 2011.

The second driver behind the rating action is a slowdown in the
pace of fiscal consolidation. The fiscal deficit has narrowed from
a peak of 9.9% of GDP in 2009 to 6.4% in 2012. The debt/GDP ratio
has also been on a generally declining trajectory, falling from
86% of GDP in 2009, the year the civil war ended, to 78% of GDP in
2011, although it edged higher to 79% of GDP in 2012 due to
currency depreciation.

While progress has been made in reducing both debt and deficits,
much of this consolidation took place between 2009 and 2011, and
since then, the pace of improvement has slowed. As a result, Sri
Lanka's debt burden remains considerably higher than the 44% of
GDP median in 2012 for Sri Lanka's B-Caa rating peers.

Related to the near stall in debt reduction is the slowdown in
economic growth. Real GDP grew an average of 8.1% between 2010 and
2011. However, this rate did not prove to be sustainable and the
policy framework allowed an over-heating of the economy in late
2011, as manifested in a sharp widening in the current account
deficit and a rise in inflation. Through 2013 and 2014, Moody's
expects growth will remain in the 6% to 7% range, and pose less of
a risk in terms of possible overheating pressures.

Looking ahead, the government projects highly favorable
macroeconomic developments. By 2015, it expects growth to
accelerate to 8.3%, the current account deficit to diminish to
1.4% of GDP, and official foreign reserves to surpass $10 billion,
in large part as a result of a substantial increase in foreign
direct investment.

However, Moody's also believes that internal policy challenges,
and global economic headwinds and financial cross-currents will
make achieving such targets challenging.

Future Rating Triggers

Upward pressure on the rating would come from:

- A strengthening of the external payments position, as reflected
in a sustainable rise in official foreign exchange reserves and
reduction in the external vulnerability indicator well below 100%.
A shift away from external debt financing towards greater reliance
on foreign direct investment (FDI) could be a key element of such
improvement, or from

- The maintenance of relatively strong GDP growth -- coupled with
a steady reduction in fiscal deficits -- to the extent that the
government debt burden declines at a faster pace to narrow the
wide divergence from its peers and, more importantly, to reduce
the high government debt-service burden.

On the other hand, triggers for a downward rating action would
include:

- A reversal in progress on fiscal consolidation,

- A substantial worsening of the country's external balance and
foreign currency liquidity position, or

- A reversal in post-war political stability and reconciliation,
which would undermine investor confidence and both fiscal and
economic performance.

GDP per capita (PPP basis, $): 5,582 (2011 Actual) (also known as
Per Capita Income)

Real GDP growth (% change): 6.4% (2012 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 9.2% (2012 Actual)

Gen. Gov. Financial Balance/GDP: -6.4% (2012 Actual) (also known
as Fiscal Balance)

Current Account Balance/GDP: -6.6% (2012 Actual) (also known as
External Balance)

External debt/GDP: 56.7% (2012 Actual)

Level of economic development: Low level of economic resilience

Default history: No default events (on bonds or loans) have been
recorded since 1983.

On June 27, 2013, a rating committee was called to discuss the
rating of the Sri Lanka, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have materially decreased. The
issuer's fiscal or financial strength, including its debt profile,
has not materially changed. External payments position has
weakened over the past two years Other views raised included: The
issuer's institutional strength/ framework, have not materially
changed. The issuer has become less susceptible to event risks.

The principal methodology used in this rating was Sovereign Bond
Ratings published in September 2008.

The weighting of all rating factors is described in the
methodology used in this rating action, if applicable.



=============
V I E T N A M
=============


* Fitch Affirms 4 Vietnamese Banks' 'B' LT Issuer Default Rating
---------------------------------------------------------------
Fitch Ratings has affirmed four Vietnamese banks' Long-Term Issuer
Default Ratings (IDRs) at 'B'. The Outlook is Stable for Vietnam
Bank for Agriculture and Rural Development (Agribank), Vietnam
Joint-Stock Commercial Bank for Industry and Trade (Vietinbank)
and Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank)
while Asia Commercial Bank's (ACB) Outlook is Negative.

The agency has also affirmed Vietinbank's outstanding senior notes
due 2017 at Long-Term 'B' and a Recovery Rating of 'RR4'. A full
list of rating actions is provided at the end of this rating
action commentary. The rating actions have been taken in
conjunction with Fitch's periodic review on Vietnamese banks.

Key Rating Drivers - IDRs, Senior Debt, Support Ratings and
Support Rating Floors of Agribank and Vietinbank

The Long-Term IDRs, Support Ratings and Support Rating Floors of
Agribank and Vietinbank reflect Fitch's expectation of likely
state support as both banks are among those most systemically
important to the domestic economy. Nonetheless, timeliness of
extraordinary support from the government may be limited by its
own finances, as reflected in the 'B+' sovereign rating.

Vietinbank's senior notes are rated at the same level as its Long-
Term IDR. This is because the notes constitute direct,
unsubordinated and senior unsecured obligations of the bank, and
rank equally with all its other unsecured and unsubordinated
obligations. In line with Fitch's criteria, Recovery Ratings are
assigned to entities with an IDR of 'B+' or below.

Key Rating Drivers - IDRs and VRs of ACB and Sacombank

The Long-Term IDRs and Viability Ratings (VRs) of ACB and
Sacombank reflect their reasonable standalone credit profiles and
risk appetites, including to state-owned entities, but are
constrained by ongoing challenges in the domestic operating
environment, which have led to weaker asset quality and lower
profitability indicators.

The Negative Outlook on ACB reflects a further potential
impairment burden on its financial profile from exposure to six
companies where Nguyen Duc Kien was either Chairman or a Member of
the Board of Management, with one of the companies reportedly
under external investigation following Mr Kien's arrest in August
2012. The unreserved amount, equalling a high 54% of the bank's
core equity, is reportedly covered by collateral and classified in
the special mention category. Mr Kien is one of ACB's
shareholders. Losses may also arise from ACB's deposit placements
at Vietinbank (another 6% of core equity), the outcome of which is
pending legal proceedings.

The Stable Outlook on Sacombank incorporates its lower reported
exposure to companies related to the former chairman, to 7% of
core equity from an initial 21%. Residual bond and investment
exposures to its former securities subsidiary fell to a reported
5% of core equity, after setting aside more provisions over 2011-
2012.

Rating Sensitivities - IDRs and Senior Debt

Changes to the Support Ratings and Support Rating Floors of
Agribank and Vietinbank would affect the banks' IDRs (see section
on Rating Sensitivities - Support Ratings and Support Rating
Floors for more details). Changes in the banks' VRs, however,
would not impact the IDRs given that the VRs are lower than the
Support Rating Floors. Vietinbank's senior debt will be impacted
by changes to the bank's IDR.

On the other hand, because the IDRs of ACB and Sacombank are
driven by their VRs, changes to the banks' VRs would impact their
IDRs.

Rating Sensitivities - Support Ratings and Support Rating Floors

The Support Ratings and Support Rating Floors are sensitive to
shifts in the sovereign's own creditworthiness and ratings, which
at present have a Stable Outlook.

These ratings may be hurt by any perceived weakening in the
government's propensity to support the banks, although such
probability is lower for the systemically important state-owned
banks, including Agribank and Vietinbank. In contrast, the '5'
Support Rating of and 'No Floor' Support Ratings of ACB and
Sacombank, reflecting Fitch's view that state support cannot be
relied upon, are already at the lowest end of the rating scale.

Rating Sensitivities - VRs

A heightened threat of impairment and reduced loss-absorption
buffers, especially in a protracted slowdown, may hurt the banks'
VRs in Vietnam. However, improved capital and liquidity buffers at
many of the major Vietnamese banks in recent years may mitigate
such downside rating risks in the near term. Negative rating
actions may also result from event risks, such as hostile
takeovers or significant management changes that prove to be
disruptive to the banks' businesses and financial profiles.

On the other hand, a less volatile operating environment,
meaningful progress in banking reforms (including transparency and
bad debt resolution) and reduced asset quality risks which lead to
sustainable improvements in the banks' financial profiles, may be
positive for the banks' VRs. Evidence that Agribank and Vietinbank
are able to run their operations guided more by commercial
motivations than by state-driven economic objectives may also be
positive for their ratings, although such a prospect is unlikely
in the near term.

Agribank's agricultural-oriented policy role is one of the reasons
for its poor financial metrics. Earnings and capital remain
vulnerable to impairment, and the bank's reported non-performing
loans are among the highest of its domestic peers. Agribank has
relied on periodic state capital injections to improve capital, as
internal capital generation remains low.

Meanwhile, Vietinbank's state-linkage risks are manifested in its
sizeable exposure to state-owned entities, which Fitch believes
could be a source of impairment under difficult operating
conditions. The bank's reserve and earnings have moderated, but
its improved core capital may support its loss-absorption buffer
and avert downward rating pressure in the near term. The reported
tier 1 CAR stood at 14%, up from 10% at end-2012, due to fresh
capital injection from Bank of Tokyo-Mitsubishi through a 20%
stake purchase in May 2013.

ACB's Outlook may be revised to Stable or its ratings may be
downgraded, depending on Fitch's view on the probability of
impairment risks arising from its exposure to companies related to
Mr Kien - which may become clearer over a longer period - as well
as on the operating environment.

The rating actions are:

Agribank
- Long-Term IDR affirmed at 'B'; Outlook Stable
- Short-Term IDR affirmed at 'B'
- Viability Rating affirmed at 'ccc'
- Support Rating Floor affirmed at 'B'
- Support Rating affirmed at '4'

Vietinbank
- Long-Term IDR affirmed at 'B'; Outlook Stable
- Short-Term IDR affirmed at 'B'
- Viability Rating affirmed at 'b-'
- Support Rating Floor affirmed at 'B'
- Support Rating affirmed at '4'
- USD250m 8% notes due 2017 affirmed at 'B'; Recovery Rating
affirmed at 'RR4'

ACB
- Long-Term IDR affirmed at 'B'; Outlook Negative
- Short-Term IDR affirmed at 'B'
- Viability Rating affirmed at 'b'
- Support Rating Floor affirmed at 'No Floor'
- Support Rating affirmed at '5'

Sacombank
- Long-Term IDR affirmed at 'B'; Outlook Stable
- Short-Term IDR affirmed at 'B'
- Viability Rating affirmed at 'b'
- Support Rating Floor affirmed at 'No Floor'
- Support Rating affirmed at '5'



                             *********

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
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Information contained herein is obtained from sources believed
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