TCRAP_Public/130722.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

           Monday, July 22, 2013, Vol. 16, No. 143


                            Headlines


A U S T R A L I A

BILLABONG INT'L: Debt Holders Threaten to Pull Firm Under
BUNNY BITES: Vegetable Growers Call For Ausveg Chair to Resign
MP CONSTRUCTIONS: Hall Chadwick Appointed as Administrators
PACIFIC HORIZON: Trading Entities Placed in Receivership
TRUE NORTH: Clifton Hall Appointed as Liquidators

WICKHAM SECURITIES: ASIC Extends Freezing Orders in Collapse
* AUSTRALIA: ATO to Chase Companies Practicing "Phoenix" Activity


C H I N A

SHIMAO PROPERTY: Moody's Changes Outlook on Ba3 CFR to Stable


I N D I A

COIMBATORE ROLLER: CRISIL Reaffirms 'BB' Rating on INR73MM Loans
CORE EDUCATION: Moody's Withdraws B2 CFR and Negative Outlook
ELICO LTD: CRISIL Raises Rating on INR94MM Loan to 'B+'
PRAJAY PROPERTIES: CRISIL Places 'D' Ratings on INR1.22BB Loans
SEASAGA ENTERPRISES: CRISIL Raises Ratings on INR169.5MM Loans

SHAFA EDUCATIONAL: CRISIL Reaffirms 'D' Ratings on INR500MM Loans
SHAMKO EXIM: CRISIL Rates INR20MM Bill Discounting Loan at 'B'
SHRAMAN POLYMERS: CRISIL Rates INR50MM Cash Credit at 'B'
V3 MEGACORP: CRISIL Assigns 'B+' Ratings to INR160MM Loans
VANTAGE SPINNERS: CRISIL Assigns 'B-' Ratings to INR540MM Loans

VARUN FERTILIZERS: CRISIL Reaffirms B+ Ratings on INR117.5MM Loan
VEDANT HOSPITAL: CRISIL Assigns 'D' Ratings to INR120MM Loans


I N D O N E S I A

LIPPO KARAWACI: Fitch Affirms 'BB-' LT Issuer Default Ratings


J A P A N

EACCESS LTD: Moody's Affirms Ba2 CFR with Stable Outlook
JLOC 39: S&P Lowers Ratings on Classes B and C Notes to 'D'
SOFTBANK CORP: Moody's Cuts Ratings to Ba1 After Sprint Purchase


S O U T H  K O R E A

STX GROUP: Shipbuilding Unit's Future Remains in Limbo


S R I  L A N K A

NATIONAL SAVINGS: Fitch Assigns 'BB-' Issuer Default Ratings


X X X X X X X X

* Asia-Pacific Country Ratings to Remain Stable Says Moody's


                            - - - - -


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A U S T R A L I A
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BILLABONG INT'L: Debt Holders Threaten to Pull Firm Under
---------------------------------------------------------
The Sydney Morning Herald reports that Billabong International
Limited's senior debt holders are believed to have threatened to
pull the company under unless it signed a deal that would involve
a AUD40 million upfront payment.

SMH says US hedge funds Oaktree Capital Management and
Centerbridge Partners, which bought a portion of Billabong's debt
from its senior lenders for a 10 per cent discount in the past
month, put their competing proposal to the company on July 17.
They submitted another plan on July 18, which was also rejected by
Billabong, the report relates.

This was after the AUD294 million refinancing deal was signed with
Altamont Consortium, SMH notes.

According to the report, insiders suggested it was inferior to the
Altamont proposal and a plan from another suitor, the former US
Billabong executive Paul Naude and the private equity firm
Sycamore Partners.

"They didn't even chase Billabong up the aisle, they knocked on
the honeymoon suite," a Billabong insider said of the Wednesday
[July 17] submission.  The report said the hedge funds were
thought to have pressed Billabong to accept their offer or face
the possibility of being cut off from accessing debt.

According to the report, Billabong chairman Ian Pollard said
Oaktree and Centerbridge's proposal had a "high level of
conditionality" that the firm could not entertain.

"We had no piece of paper that had any numbers on it, let alone a
proposal," SMH quotes Mr. Pollard as saying about the hedge funds'
earlier advances.

SMH relates that Mr. Pollard said he would talk to Billabong's
lawyers about what responsibilities the board had to its
shareholders if the pair were to submit another plan.

Billabong said late Thursday the second proposal was "not an offer
that is capable of acceptance," the report adds.

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.

Billabong, according to the report, 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.


BUNNY BITES: Vegetable Growers Call For Ausveg Chair to Resign
--------------------------------------------------------------
ABC Rural reports that vegetable growers are calling on the
chairman of the industry's peak body, Ausveg, to step down after
Bunny Bites, a company he co-owned, went bust.

ABC Rural relates that creditors of Bunny Bites voted on July 15
to put the company into liquidation after it went into
administration last month owing nearly AUD10 million.

The report says the administrator has advised creditors that they
may be able to make a claim against the company directors Peter
and John Brent for insolvent trading.

According to the report, Chairman of Onions Australia,
Andrew Moon, said growers feel Ausveg is unable to represent their
interests while John Brent remains on the organisation's board.

"As leaders in the industry, we need to be very mindful of the
fact that we do represent growers and that growers do have
feelings," the report quotes Mr. Moon as saying.  "Certainly this
one needs to be addressed . . . from my point of view, I think
that John possibly should step aside at least until the whole
story's out."

And it's not just vegetable growers that stand to lose, the report
relays. Packaging company Qualipack is also one of Bunny Bites'
creditors.  ABC relates that Qualipack marketing manager Kees
Versdeeg agrees that Ausveg has been conspicuously silent on the
issue.

"When any other agricultural company or supplier goes into
receivership or is going through hardship, it's always mentioned
in the news and by Ausveg.  There's no mention of the saga or
financial problems that's been with Bunny Bites," ABC News Mr.
Versdeeg, as cited by ABC, said.

But Ausveg spokesman, William Churchill, said there have been many
other cases where the organisation has not commented on failed
vegetable companies, according to ABC.

Mr. Churchill denies there is a conflict of interest and John
Brent is yet to speak publicly on the matter, the report adds.

Bunny Bites Foods is a Queensland-based vegetable processing
company.


MP CONSTRUCTIONS: Hall Chadwick Appointed as Administrators
-----------------------------------------------------------
Patrick Stafford at SmartCompany reports that MP Constructions has
collapsed into administration, the latest victim of an industry
which continues to suffer at the hands of subdued activity in both
property and retail.

MP Constructions was placed in administration on July 15, with
Hall Chadwick appointed, SmartCompany discloses.

According to the report, the company has significant reach in the
industry, with AUD18 million in turnover last financial year and
projects including fit-outs for Supre, Telstra stores, Billabong
and Lush, along with commercial interior work for KPMG and
Marriott.

Administrator Blair Pleash -- bpleash@hallchadwick.com.au -- told
SmartCompany the company continues to trade.  Mr. Pleash said the
business has been facing industry pressures and entered
administration due to issues with working capital, SmartCompany
relates.

"We're trading the business with a view to...market the business
and components," SmartCompany quotes Mr. Pleash as saying,
although acknowledging the appointment is still at an early stage.

Brisbane-based MP Constructions is a commercial construction
company specialising in Shop Fitouts and Shop Fittings, Commercial
Construction and Joinery.


PACIFIC HORIZON: Trading Entities Placed in Receivership
--------------------------------------------------------
Brendon James Gibson -- bgibson@kordamentha.com -- and Grant
Robert Graham -- ggraham@kordamentha.com -- of Kordamentha were
appointed Joint and Several Receivers and Managers of the trading
entities related to Pacific Horizon Motorhomes on July 15, 2013.
No future bookings are being accepted.

The companies in receivership are:

Pacific Horizon Limited
Eclipse Travel Homes Limited
Pacific Horizon Motorhomes Limited

Pacific Horizon Motorhomes offers motorhome and campervan hire in
New Zealand.


TRUE NORTH: Clifton Hall Appointed as Liquidators
-------------------------------------------------
Timothy Clifton and Mark Hall of Clifton Hall were appointed as
Joint and Several Liquidators of True North Organisational
Development Pty Ltd on July 16, 2013.

The first meeting of creditors will be held at 10:30 a.m. on
July 26, 2013, in the offices of Clifton Hall, Level 4, 12 Gilles
Street, Adelaide.


WICKHAM SECURITIES: ASIC Extends Freezing Orders in Collapse
------------------------------------------------------------
The Australian Securities and Investment Commission, on July 15,
2013, successfully applied for orders in the Federal Court to add
five defendants to existing proceedings brought against Bradley
and Deborah Sherwin and eight related corporate entities on
Jan. 21, 2013.

Orders were also obtained freezing the assets of the new
defendants for the time being which included three companies
connected to Mr. and Mrs. Sherwin as well as Garth Robertson (the
former CEO of Wickham Securities Ltd) and his wife.

The new orders bring the number of defendants in the proceedings
to 15. The new defendants are Brothers Financial Services Pty Ltd,
NRL Financial Services Pty Ltd, Sunshine Regional Investments Pty
Ltd, Garth Peter Robertson and Catherine Louise Robertson.

Legal representatives of the new defendants did not oppose the
making of the orders.

On Jan. 21, 2013, ASIC commenced proceedings under section 1323 of
the Corporations Act 2001 seeking orders in the Federal Court
against ten defendants to preserve assets for the benefit of
investors whose funds had been applied to Wickham and other
corporate entities connected to Bradley Sherwin and against his
wife, Deborah Sherwin.

Those companies were:

   -- Sherwin Financial Planners Pty Ltd
   -- DIY Superannuation Services Pty Ltd
   -- Reacroft Pty Ltd
   -- Blue Diamond Investments Pty Ltd
   -- SP Property Pty Ltd
   -- Astor Funds Pty Ltd
   -- Sherwin Financial Services Pty Ltd, and
   -- Wickham Capital Pty Ltd.

ASIC sought interim orders pending the outcome of its
investigation, which is ongoing, to preserve assets for the
benefit of investors, largely self-managed superannuation funds.

The orders were extended by the Federal Court when the matter was
heard inter-parties on Jan. 23, 2013, and remain in place save to
the extent of Sherwin Financial Planners Pty Ltd, DIY
Superannuation Services Pty Ltd, Reacroft Pty Ltd, Blue Diamond
Investments Pty Ltd, SP Property Pty Ltd, Astor Funds Pty Ltd and
Wickham Capital Pty Ltd.

Those companies are now in liquidation and the companies' assets
are in the control of the appointed liquidators Stefan Dopking,
Quentin Olde and Michael Ryan of FTI Consulting.

Wickham Securities Ltd was placed into administration in
December 2012 in advance of ASIC's proceedings and is now in
liquidation. Grant Sparks and David Leigh of PPB Advisory are the
liquidators of that company. In the circumstances asset protection
orders were not sought against Wickham Securities Ltd.

PPB and FTI are cooperating with ASIC's investigation.

                     About Wickham Securities

Wickham Securities Limited is a Brisbane-based financial services
company. Director Bradley Sherwin appointed Messrs. Grant Sparks
and David Leigh of PPB in Brisbane as administrators to the
company on Dec. 21, 2012.

On Jan. 24, 2013, Stefan Dopking -- stefan.dopking@twcs.com.au,
Quentin Olde -- quentin.olde@twcs.com.au -- and Michael Ryan --
michael.ryan@twcs.com.au -- of Taylor Woodings were appointed
Voluntary Administrators to the following companies in the
Wickham Financial Group:

* Astor Funds Pty Ltd
* Blue Diamond Investments Pty Ltd
* DIY Superannuation Services Pty Ltd
* Reacroft Pty Ltd
* Sherwin Financial Planners Pty Ltd
* SP Property Pty Ltd
* Wickham Capital Pty Ltd


* AUSTRALIA: ATO to Chase Companies Practicing "Phoenix" Activity
-----------------------------------------------------------------
Dissolve.com.au reports that the Australian Tax Office has set its
plan to chase approximately 150 cases of potentially fraudulent
scheme, called "phoenix" activity.  The taxman defines this as
when a company collapses and its owner re-establishes it, the
report says.

According to Dissolve.com.au, the ATO said they have determined
more than 2,000 property developers who have put certain companies
into liquidation with goods and services obligations on various
occasions.

Dissolve.com.au relates that the ATO emphasised a threat to
penalise companies in breach. The tax office will demand such
companies lodge and pay their business activity statements, the
report relays.

The report notes that the tax office warned that they will have to
make use of fresh director penalty regime so that directors will
personally be held liable for the outstanding superannuation and
PAYG withholding liabilities of their company. The extreme cases
will be referred by the ATO to the criminal prosecutor or
securities watchdog, according to Dissolve.com.au.

The ATO said liquidating a business to dodge tax obligations has
been popular in the labour hire industry, Dissolve.com.au says. It
has also been observed among property developers who decided not
to be involved with the tax system during development and end up
not able to meet GST obligations, the report adds.



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C H I N A
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SHIMAO PROPERTY: Moody's Changes Outlook on Ba3 CFR to Stable
-------------------------------------------------------------
Moody's Investors Service has changed to positive from stable the
outlook of Shimao Property Holdings Limited's Ba3 corporate family
rating and B1 senior unsecured bond rating.

Moody's has also affirmed Shimao's Ba3 corporate family rating and
B1 senior unsecured bond rating.

"The change in outlook to positive reflects our expectation that
Shimao's financial profile will improve following a shift in its
business strategy," says Franco Leung, a Moody's AVP/Analyst.

Shimao has demonstrated a good track record of sales execution
since it fine-tuned its business strategy in 2011. It adjusted its
product mix to focus more on the mass market by marketing to
first-time home buyers and up-graders, and offering more small-to-
medium-sized units.

In the first six months of 2013, Shimao achieved RMB32.5 billion
in contract sales, a 44.5% year-on-year increase, or 59% of its
full-year target of RMB55 billion for 2013. Moody's believes
Shimao is on track to deliver its sales target, based on available
projects for sale in the rest of 2013.

"Moreover, Shimao has improved its debt leverage and will likely
keep the current level in the next 12-18 months," says Leung, also
Shimao's lead analyst.

Shimao's adjusted debt / capitalization declined to about 53% as
at end-2012 from 56.7% as at end-2011 due to improved operating
cash flow from stronger contract sales.

Moody's expects Shimao to maintain debt leverage at around 50%-55%
in the next 12-18 months. Moreover, its adjusted EBITDA interest
coverage will improve to around 3.0-3.5x in 2013 from 2.2x in 2012
as more revenue will be booked on the back of the strong
contracted sale achieved in 2012.

"Shimao's liquidity position has strengthened as it adopts a
proactive approach to capital management," says Leung.

Shimao concluded a 4-year, multi-currency club loan of $570
million in June 2013, following the issuance of senior notes of
$800 million in January 2013 and the conclusion of a 3-year $670
million multi-currency club loan in November 2012. It has also
redeemed the 8% senior notes due 2016 for a principal amount of
$350 million in July 2013. As a result, Shimao's overall debt
maturity profile has lengthened.

"Shimao's strategy of buying land based on its sales performance
has helped keep its debt level in check," adds Leung.

As a result of the new land acquisition strategy, Shimao's total
land premium of RMB8.9 billion in 2012 was lower than those in
prior years -- RMB11.0 billion in 2011 and RMB15.0 billion in
2010. Moody's believes that if Shimao is successful in its
contract sales, it will resume land acquisitions to replenish its
land bank.

Shimao's Ba3 corporate family rating continues to reflect its
track record of generating contract sales on a large scale, its
diversified and well-located land bank, its pricing flexibility --
in view of its low-cost land bank -- and its portfolio of quality
investment properties.

Shimao's ratings could be upgraded if it (1) continues to meet its
presales targets; (2) maintains a sufficient cash balance to cover
maturing debt in the next 12 months; (3) demonstrates that it has
adequate room in complying with its financial covenants, such as
EBITDA interest coverage of more than 3x; and (4) improves debt
leverage to around 50% -55% on a sustained basis.

On the other hand, the outlook would return to stable if (i) its
sales performance is below target; or (ii) improvements in its
credit metrics slow, such that EBITDA interest coverage fails to
reach 3X or debt/total capitalization returns to 55% or above.

The principal methodology used in rating Shimao was the Global
Homebuilding Industry Methodology, published March 2009.

Shimao Property Holdings Ltd is a Grand Cayman-incorporated
Chinese property developer that was listed on the Hong Kong Stock
Exchange in July 2006. Together with its 64%-owned Shanghai A-
share listed subsidiary, Shanghai Shimao Co, Ltd, the company has
an attributable land bank of 36.2 million sqm distributed in 39
cities, mainly in eastern and northeastern China. Shanghai Shimao
mainly develops commercial properties and has an attributable land
bank of around 8.54 million sqm. Shimao also has six hotels in
operation with a total of 2,679 rooms.



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COIMBATORE ROLLER: CRISIL Reaffirms 'BB' Rating on INR73MM Loans
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Coimbatore Roller Flour
Mills Pvt Ltd continue to reflect the benefits that CRF derives
from its established market position in the wheat flour industry
and its promoters' extensive industry experience.

                       Amount
   Facilities        (INR Mln)   Ratings
   ----------        ---------   -------
   Cash Credit         73.00     CRISIL BB/Stable (Reaffirmed)
   Pledge Loan         20.00     CRISIL A4+ (Reaffirmed)

These rating strengths are partially offset by CRF's below-average
financial risk profile, marked by a small net worth and a high
gearing, and susceptibility of the company's operating margin to
volatility in prices of raw material because of intense
competition in the wheat products industry.

Outlook: Stable

CRISIL believes that CRF will continue to benefit over the medium
term from its promoters' extensive experience in the wheat flour
industry. The outlook may be revised to 'Positive' in case the
company reports significant improvement in its capital structure
driven by improvement in cash accruals or equity infusion.
Conversely, the outlook may be revised to 'Negative' in the event
of pressure on the company's liquidity, resulting most likely from
larger-than-expected working capital requirements or debt-funded
capital expenditure or increase in investments in group companies.

CRF, set up in 1962, manufactures and sells ground wheat products
such as atta, maida, bran, and suji.


CORE EDUCATION: Moody's Withdraws B2 CFR and Negative Outlook
-------------------------------------------------------------
Moody's Investors Service has withdrawn its B2 corporate family
rating with a negative outlook on Core Education & Technologies
Limited due to business reasons and at the company's request.

Ratings Rationale:

Moody's has withdrawn the rating for its own business reasons.

CORE, headquartered in India, provides technology-enabled products
and services primarily to the education sector.


ELICO LTD: CRISIL Raises Rating on INR94MM Loan to 'B+'
-------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Elico Ltd to 'CRISIL B+/Stable' from 'CRISIL B/Stable', and has
reaffirmed its rating on the company's short-term facilities at
'CRISIL A4'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit             94.0      CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B/Stable')

   Post Shipment Credit    20.0      CRISIL A4 (Reaffirmed)


   Letter of Credit &      30.0      CRISIL A4 (Reaffirmed)
   Bank Guarantee

The rating upgrade reflects the improvement in Elico's business
risk profile, driven by a sustained increase in its scale of
operations while maintaining its healthy profitability margins.
The upgrade also factors in the increase in the company's net
worth, supported by healthy accretion to reserves, and the
consequent improvement in its capital structure. CRISIL believes
that Elico will maintain its improved capital structure over the
medium term, on the back of a continued growth in its net worth
and the absence of any major debt-funded capital expenditure.

Elico registered a compound annual growth rate of around
17 per cent in its revenues from 2010-11 (refers to financial
year, April 1 to March 31) and 2012-13; its operating profit
margin remained healthy at 17 to 19 per cent over this period.
CRISIL believes that Elico will continue to register healthy
growth in its revenues over the medium term supported by its
established relationships with customers. The healthy accretion to
reserves, arising from the company's revenue growth and healthy
operating profit margin, is estimated to have resulted in an
improvement in Elico's net worth to INR130 million as on March 31,
2013 from INR73 million as on March 31, 2011. The improvement in
the company's net worth, coupled with repayment of term loans, is
estimated to have resulted in a decline in its gearing to around
1.5 times as on March 31, 2013 as compared with 3.2 times as on
March 31, 2011.

The ratings, however, continue to reflect Elico's working-capital-
intensive nature of operations, and its average financial risk
profile marked by its modest net worth, moderate gearing, and
average debt protection metrics. These rating weaknesses are
partially offset by the extensive experience of Elico's promoters
in the analytical instrumentation and electronics industry.

Outlook: Stable

CRISIL believes that Elico will continue to benefit over the
medium term from its promoters' extensive industry experience and
its established relationships with customers. The outlook may be
revised to 'Positive' if there is a significant and sustained
improvement in the company's revenues and profitability margins,
or a substantial increase in its net worth most likely supported
by equity infusion by promoters. Conversely, the outlook may be
revised to 'Negative' in case of a steep decline in Elico's
profitability margins, or significant deterioration in its capital
structure, most likely because of larger-than-expected working
capital requirements.

Elico was established in 1960 in Hyderabad (Andhra Pradesh) by Mr.
Ramesh Datla. The company manufactures a wide range of
electrochemistry, spectroscopy, and chromatography equipment used
in diverse industries, including agriculture, engineering, and
research laboratories. It also provides software services and
back-office support to international clients; these services
include medical transcription, coding, and billing.


PRAJAY PROPERTIES: CRISIL Places 'D' Ratings on INR1.22BB Loans
---------------------------------------------------------------
CRISIL's rating on the bank facilities of Prajay Properties Pvt
Ltd (PPPL; a part of the Prajay group) continues to reflect
instances of delay by PPPL in servicing its debt; the delays have
been caused by the company's weak liquidity.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Project Loan           1,213.0    CRISIL D

   Proposed Long-Term         7.0    CRISIL D
   Bank Loan Facility

The Prajay group is also exposed to risks related to completion
and saleability of its Prajay Megapolis project and to
concentration of revenue in a single project. The rating also
factors in the risk associated with the Indian real estate
industry. These rating weaknesses are partially offset by the
extensive industry experience and proven project-execution
capabilities of the Prajay group's promoters and its strong brand.

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of PPPL and Prajay Land Capital Pvt Ltd,
together referred to as the Prajay group. This is because each
company owns a part of the land on which the Prajay Megapolis
project is being constructed and PPPL will pay a revenue share to
PLCPL for the proportion of land owned by the latter.

Incorporated in March 2007, PPPL is a special-purpose vehicle
promoted by Prajay Engineers Syndicate Ltd to develop 17.125 acres
(of a total of 21.125 acres) of the high-rise residential project,
Prajay Megapolis, in Hyderabad (Andhra Pradesh). PESL own 49.5 per
cent stake in PPPL; the remainder is owned by the promoters in
their individual capacity. State General Reserve Fund, Oman, has
invested about INR659 million in PPPL by way of compulsory
convertible debentures. PPPL is developing 4.50 million square
feet of built-up area of the high-rise residential apartments.
Excavation at the project site is currently in progress.

PLCPL is the wholly owned subsidiary of PPPL and owns 8.35 acres
of land out of 17.125 acres under development.


SEASAGA ENTERPRISES: CRISIL Raises Ratings on INR169.5MM Loans
--------------------------------------------------------------
CRISIL has upgraded its long term rating on bank facilities of
Seasaga Enterprises Private Limited from 'CRISIL B/Stable' to
'CRISIL B+/Stable' and reaffirmed its short term rating to 'CRISIL
A4'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Bill Discounting         100      CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B/Stable')

   Packing Credit            90      CRISIL A4(Reaffirmed)

   Proposed Long-Term        29.9    CRISIL B+/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL B/Stable')

   Proposed Term Loan        39.6    CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B/Stable')

The upgrade follows sustained improvement in SEPL's financial risk
profile backed by reduced working capital requirements and
stronger net cash accruals. With the management's focus towards
lowering working capital requirements, GCA has improved to about
80 days as on March 31, 2013 from close to 110 days in the
preceding year. Though faster inventory turnaround and extension
of lower credit to customers led to a slight decline in
profitability in 2012-13, this was more than offset by an
estimated 36% increase in revenues year-on-year, leading to
stronger net cash accruals of about INR17 million in 2012-13. The
above factors have together led to a reduction in the company's
reliance on debt, marked by an improvement in gearing to about 2.6
times as on March 31, 2013 from 3.5 times in the preceding year,
along with an improvement in debt protection indicators. The
company's gearing levels are expected to improve further to about
2 times over the medium term with sustenance of its current
working capital cycle and steady accretion to reserves. The debt
protection indicators too are expected to improve in tandem.

SEPL's credit risk continues to be marked by modest scale of
operations, problems in availability of marine products and
susceptibility to global economic downturn. These weaknesses are
partially offset by promoter's extensive experience of over five
decades in marine exports, diversified customer base and strong
financial risk profile supported by improving capital structure
and comfortable debt protection metrics.

Outlook: Stable

CRISIL believes that SEPL will continue to benefit over the medium
term from its diverse customer base and promoters' industry
experience. The outlook may be revised to 'Positive' if SEPL
records higher than expected sales, along with improved and
consistent operating margins and working capital cycle.
Conversely, the outlook may be revised to 'Negative' if SEPL
reports lower-than-expected net cash accruals, and larger-than-
expected working capital requirements, large debt funded capital
expenditure adversely affecting its capital structure.

SEPL was incorporated in 1993 as Sky Fish Pvt Ltd, promoted by Mr.
Y M Elias, and its name was changed to the current one in 2007.
SEPL is the business of processing and exporting frozen, raw
marine products such as fish, shrimps, lobsters, and squids. The
company's main export markets are Europe, China, the Middle East
and other countries.

SEPL is estimated to report a profit before tax (PBT) of INR14
million on net sales of INR714 million for 2012-13, against a PBT
of INR11 million on net sales of INR557 million for 2011-12.


SHAFA EDUCATIONAL: CRISIL Reaffirms 'D' Ratings on INR500MM Loans
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Shafa Educational
Society continue to reflect instances of delays in servicing its
debt; the delays have been caused by the society's weak liquidity.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Bank Guarantee           100      CRISIL D (Reaffirmed)

   Cash Credit               10      CRISIL D (Reaffirmed)

   Long-Term Loan           311      CRISIL D (Reaffirmed)

   Proposed Long-Term        79      CRISIL D (Reaffirmed)
   Bank Loan Facility

SES also has an average financial risk profile, marked by high
gearing, and average debt protection metrics. Furthermore, the
society is susceptible to geographical concentration in its
revenue profile and to adverse impact of regulatory changes in the
educational sector. However, the society benefits from its
established regional presence, supported by its promoter's
extensive experience in the education sector.

Update

In 2012-13 (refers to financial year, April 1 to March 31), SEC
reported provisional revenues of around INR266 million, at a year-
on-year growth of 17 per cent, from INR227 million in 2011-12. It
has an average financial risk profile marked by high gearing of
around 1.7 times, and moderate net worth of around INR191 million
as on March 31, 2013. SEC also maintained its moderate debt
protection metrics, marked by net cash accruals to total debt
(NCATD) and interest coverage ratios at 0.19 times and around 2.2
times, respectively, in 2012-13. However, the society's net cash
accruals during the year were inadequate to fund its debt
obligations. Hence, its liquidity was stretched, because of full
utilisation of its cash credit limit, and small net cash accruals
vis-a-vis debt obligations.

SEC reported a surplus of INR0.66 million on revenues of INR226.64
million in 2011-12, against a surplus of INR0.43 million on
revenues of INR211.46 million for 2010-11.

Set up in 2001 in Kurnool (Andhra Pradesh), SES runs two
institutes providing courses in medicine and nursing. Both
institutes are approved by Dr. NTR University of Health Sciences,
Vijaywada, and the Medical Council of India.


SHAMKO EXIM: CRISIL Rates INR20MM Bill Discounting Loan at 'B'
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Shamko Exim Pvt Ltd.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Packing Credit            20      CRISIL A4

   Bank Guarantee           110      CRISIL A4

   Bill Discounting          20      CRISIL B/Stable

The rating reflects SEPL's modest scale of operations, and the
susceptibility of its margins to fluctuations in foreign exchange
(forex) rates. The rating also factors in the company's below-
average financial risk profile, marked by a modest net worth and
weak debt protection metrics. These rating weaknesses are
partially offset by the extensive experience of SEPL's promoters
in the granite block trading business.

CRISIL has factored the support expected to be extended to its
subsidiary 'Green Span Inc Fze' (GSIF) while assessing the credit
profile of SEPL. GSIF is a 100 per cent subsidiary of SEPL set up
in Dubai, UAE in June 2013 for trading in petrol and diesel.

Outlook: Stable

CRISIL believes that SEPL will continue to benefit over the medium
term from the extensive experience of its promoters in the granite
block trading business. The outlook may be revised to 'Positive'
in case SEPL achieves significant and sustained improvement in its
revenues, while maintaining its margins and improving its capital
structure. Conversely, the outlook may be revised to 'Negative' in
case SEPL registers a significant decline in its revenues or
margins, or if the support to group entities is significantly
larger than envisaged thereby impacting its financial risk
profile.

SEPL was incorporated in July 2003 by Mr. K M Veeresh and his
family members. The company trades in granite blocks. SEPL's day-
to-day operations are managed by Mr. K M Veeresh. Its registered
office is located in Hospet (Karnataka).


SHRAMAN POLYMERS: CRISIL Rates INR50MM Cash Credit at 'B'
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Shraman Polymers Pvt Ltd.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit              50       CRISIL B/Stable

   Letter of Credit         10       CRISIL A4

The ratings reflect SPPL's weak financial risk profile, marked by
a small net worth and a high gearing, and the vulnerability of the
company's margins to volatility in raw materials prices. These
rating weaknesses are partially offset by the extensive experience
of SPPL's promoters and the company's established customer base in
the rubber chemicals industry and efficient working capital
management.

Outlook: Stable

CRISIL believes that SPPL will continue to benefit over the medium
term from its promoters' extensive experience and its established
customer base in the rubber chemicals industry. The outlook may be
revised to 'Positive' if the company registers more-than-expected
revenues, while it sustains or improves its operating margin along
with improvement in its capital structure, resulting in
improvement in its financial risk profile. Conversely, the outlook
may be revised to 'Negative' in case SPPL registers decline in its
revenues or profitability or in case of lengthening of its working
capital cycle constraining its financial flexibility.

SPPL was set up in 1994 by Mrs. Alka Pahwa and her family in
Malerkotla (Punjab); it commenced operations in 2008. The company
trades in carbon black (used as a reinforcing agent in the rubber
industry and other industries) in the domestic market.


V3 MEGACORP: CRISIL Assigns 'B+' Ratings to INR160MM Loans
----------------------------------------------------------
CRISIL's ratings on the bank facilities of V3 Megacorp
International Pvt Ltd (V3; formerly known as V3 Powerpetro
Fabricators Private Limited) continue to reflect V3's below-
average financial risk profile, marked by high gearing, its
working-capital-intensive operations, and its exposure to risks
related to any slowdown in capital investment in the economy.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Bank Guarantee          65.00     CRISIL A4
   Cash Credit            125.00     CRISIL B+/Stable
   Long-Term Loan          15.00     CRISIL B+/Stable
   Letter of Credit        60.00     CRISIL A4
   Letter of Credit        20.00     CRISIL B+/Stable

These rating weaknesses are partially offset by the extensive
experience of V3's promoter in the steel fabrication industry, and
the company's robust order book.

Outlook: Stable

CRISIL believes that V3 will continue to benefit from its
promoter's extensive industry experience, over the medium term.
The outlook may be revised to 'Positive' if the company improves
its financial risk profile, supported by an increase in its scale
of its operations, higher profitability, and significant
improvement in its working capital management. Conversely, the
outlook may be revised to 'Negative' if V3 contracts more-than-
expected debt to fund its capital expenditure or working capital
requirements, or if its debt protection metrics deteriorate.

V3, incorporated in 2006, is promoted by Mr. Vighnaprabodhan
Thanneermalai. The Chennai (Tamil Nadu)-based company operates in
the steel fabrication business. V3 fabricates structural
components which are mainly used in the power, cement, and sugar
industries, and in industrial plants.

For 2012-13 (refers to financial year, April 1 to March 31), V3 is
estimated to have registered a net profit of INR5.1 million on net
sales of INR555.3 million, against a net profit of INR4.9 million
on net sales of INR551.4 million reported for the preceding year.


VANTAGE SPINNERS: CRISIL Assigns 'B-' Ratings to INR540MM Loans
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term
bank facilities of Vantage Spinners Pvt Ltd.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit             180.0     CRISIL B-/Stable

   Long-Term Loan          330.0     CRISIL B-/Stable

   Proposed Cash Credit     30.0     CRISIL B-/Stable
   Limit

The rating reflects VSPL's below-average financial risk profile,
marked by a weak capital structure, and its susceptibility to
volatility in raw material prices; the rating also factors in
VSPL's large working capital requirements. These rating weaknesses
are partially offset by the extensive experience of VSPL's
management in the cotton industry.

Outlook: Stable

CRISIL believes that VSPL will continue to benefit over the medium
term from the extensive industry experience of its management in
the cotton industry. The outlook may be revised to 'Positive' if
there is a substantial and sustained improvement in VSPL's cash
accruals or there is substantial increase in its net worth on the
back of equity infusion by the promoters, resulting in improved
capital structure. Conversely, the outlook may be revised to
'Negative' if there is a steep decline in the company's revenues
and profitability or there is a significant deterioration in its
capital structure on account of larger-than-expected working
capital requirements or large debt-funded capital expenditure.

VSPL was incorporated on July 28, 2006, by Mr. Potluru Mohana
Murali Krishna, Mr. Potluru Soma Sekhar, and Ms. Nandamuri
Meenalatha. VSPL manufactures cotton yarn and has an installed
capacity of 31,000 spindles. The plant is located at Nuziveedu
Mandalam, in Krishna District (Andhra Pradesh).


VARUN FERTILIZERS: CRISIL Reaffirms B+ Ratings on INR117.5MM Loan
-----------------------------------------------------------------
CRISIL's rating on the bank loan facilities of Varun Fertilizers
Pvt Ltd continues to reflect its large working capital
requirements, and business susceptibility to government
regulations and monsoon.

                         Amount
   Facilities          (INR Mln)   Ratings
   ----------          ---------   -------
   Cash Credit           100.0     CRISIL B+/Stable (Reaffirmed)
   Term Loan              17.5     CRISIL B+/Stable (Reaffirmed)

These rating weaknesses are partially offset by the expected
improvement in its financial and business risk profiles, driven by
the commencement of single super phosphate (SSP) manufacturing in
2013-14 (refers to financial year, April 1-March 31); support from
the Government of India, Department of Fertilizer in the form of
subsidies; and the extensive experience of VFPL's management in
the fertiliser industry.

Outlook: Stable

CRISIL believes that VFPL will benefit from the extensive industry
experience of its management, and commencement of production at
its SSP plant. The outlook may be revised to 'Positive', if the
company increases the scale of its operations, leading to an
increase in its net cash accruals, while efficiently managing its
working capital. Conversely, the outlook may be revised to
'Negative' if VFPL's working capital cycle deteriorates, resulting
in larger-than-expected dependence on external bank funds for its
working capital requirements, thereby weakening its financial risk
profile or the company's inability to scale-up operations; or any
adverse impact resulting from regulatory changes, leading to a
weakening in its business risk profile.

Update

VFPL's SSP plant was expected to commence production in 2012-13;
however, procedural delays prevented it from beginning commercial
operations in 2012-13. Despite the delay, the company's revenues
increased to an estimated INR220 million in 2012-13, from INR41.6
million in 2011-12, driven by an increase in sales of nitrogen-
phosphorous-potassium (NPK). However, VFPL's operating
profitability declined to an estimated 7.8 per cent in 2012-13,
from 12.8 per cent in 2011-12, on account of raw material price
fluctuations, and an increase in fixed overheads. CRISIL believes
that VFPL's revenues and operating profitability will improve over
the near to medium term, as the SPP plant begins contributing to
the company's revenues. VFPL is expected to achieve a sharp
increase in its top line to more than INR670 million in 2013-14,
from INR220 million in 2012-13, primarily supported by revenues
from the SSP plant.

However, VFPL's financial risk profile could be adversely affected
by an increase in its working capital requirement, resulting from
its expected sharp increase in revenues during 2013-14. The
company's gearing is expected to increase to around 3.7 times in
the near term, from a moderate 1.7 times as on March 31, 2013.
VFPL will likely depend on external debt for its working capital
requirements over the near-term. The company's financial risk
profile is expected to remain constrained over the near to medium
term, on account of its expected small net worth of INR74.5
million as on March 31, 2014, and considerable dependence on debt
funding.

VFPL's liquidity profile is also expected to remain constrained in
the near term, driven by its high bank limit utilisation to fund
working capital requirements. The company is expected generate
healthy cash accruals of around INR33.5 million, with fixed debt
obligations of around INR7 million during 2013-14. While increase
in sales, are expected to lead to substantial increase in
accruals, the working capital intensity is expected to lead to
continued dependence on short-term funding. Hence, the company's
liquidity profile is likely to remain constrained in the near-
term, with a stretched working capital cycle, marked by gross
current asset (GCAs) of around 250 days over the medium term.
CRISIL believes that VFPL's working capital cycle will remain
stretched, also because of an increase in debtors and inventory.

VFPL was incorporated in 2005 in Indore, Madhya Pradesh. The
company manufactures fertilisers such as NPK and SSP. It has a
manufacturing capacity of 150,000 tonnes per annum (TPA) of NPK
and 120,000 TPA of SSP, at its plant in Indore (Madhya Pradesh).

VFPL was initially promoted by Mr. Shailesh Solanki, and his
friends, and was managed by Mr. Santosh Dubey. Subsequently, Mr.
Ashish Tiwari and Mr. Abhishek Tiwari, acquired the company.

VFPL reported, on provisional basis, a profit after tax (PAT) of
INR9.2 million on net sales of INR220 million in 2012-13, and a
PAT of INR2.0 million on net sales of INR41.6 million for 2011-12.


VEDANT HOSPITAL: CRISIL Assigns 'D' Ratings to INR120MM Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of Vedant Hospital.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Term Loan                 40      CRISIL D

   Proposed Long-Term        30      CRISIL D
   Bank Loan Facility

   Bank Guarantee             7      CRISIL D

   Letter of Credit          43      CRISIL D

The ratings reflect instances of delay by Vedant in servicing its
debt; the delays have been caused by the firm's weak liquidity.

Vedant is also exposed to risks associated with the implementation
of its ongoing project. Furthermore, the firm is expected to have
a modest scale of operations with geographical concentration, and
also a below-average financial risk profile marked by a modest net
worth and weak debt protection metrics, over the medium term.
However, Vedant will benefit from its promoters' extensive
experience in the hospital industry.

Vedant, a partnership firm, was established by Mr. Balkrishna
Shetty and his wife Mrs. Lata Shetty in 2009. It is setting up a
150-bed multi-speciality hospital at Thane in Mumbai
(Maharashtra). The project is in advanced stage of completion; the
hospital is likely to commence operations in 2013-14 (refers to
financial year, April 1 to March 31).



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


LIPPO KARAWACI: Fitch Affirms 'BB-' LT Issuer Default Ratings
-------------------------------------------------------------
Fitch Ratings has affirmed Indonesia-based property developer PT
Lippo Karawaci Tbk's Long-Term Foreign and Local Currency Issuer
Default Ratings (IDRs) at 'BB-' and its National Long-Term Rating
at 'A+(idn)'. The Outlook is Stable. Simultaneously, the agency
has also affirmed Lippo's senior unsecured rating at 'BB-'.
Lippo's 'BB-' ratings reflect its small scale and aggressive
growth plans against its leading position in property development
and healthcare provider in Indonesia.

Key Rating Drivers

Leading market position: Lippo's ratings reflect its leading
position as Indonesia's largest publicly listed property developer
in revenue (2012: IDR6.2trn) and one of the landbank inventories
with more than 1,400 hectares at end-March 2013. Its leading
position is also reflected in a strong property portfolio
comprising more than 10 hospitals, 30 malls and 8 hotels under
Lippo's ownership or management.

Strong recurring income: As one of the leading healthcare players
in Indonesia, healthcare operations contributed 19% (IDR320bn) of
total EBITDA at end-2012. This, together with fee-based income and
malls & hotel operations, results in recurring EBITDA of IDR683bn
(40% of EBITDA) per year. Fitch expects these recurring income
will provide more than adequate resources for interest payment.
Recurring EBITDA/interest was 1.5x at end-December 2012.

Performance improvement continues: Lippo's scale and credit
metrics have been improving since 2009 with average growth of 34%
in revenue and 41% in EBITDA. The growth has also been accompanied
by an expanding recurring EBITDA base to IDR683bn in 2012 from
IDR574bn in 2011. Fitch believes that the improvement in
performance will continue with a stronger recurring revenue base
from more hospitals, malls, and hotels in the development
pipeline.

Self-funded expansion: Lippo can recycle its hospitals and malls
through a real estate investment trust (REIT) to generate funding
to support its expansion plans. This was evident during 2012 with
the sale of two malls to Lippo Malls Indonesia Retail Trust and
two hospitals to First REIT. However, this asset light strategy
hinges on the ability of these sponsored REITS to raise additional
capital. Lippo's pipeline includes 14 hospitals and 12 new malls.

Comfortable liquidity: Fitch expects Lippo's liquidity to remain
comfortable in the medium term as it continues to fund most of
development cost through pre-sales and sales of assets to its
REITS. At end-2012, Lippo exceeded its marketing sales target by
22% with IDR4.6trn marketing sales. Additionally, Lippo has a long
debt maturity profile with negligible debt amortisation schedule
until 2019 and unutilised working capital facilities of
approximately USD40m. Further, Fitch draws comfort from the
company's disciplined approach to expansion, which includes high
cash balances.

Scale and aggressive expansion: Lippo's 'BB-' ratings are
constrained by its small scale compared with 'BB' rated entities.
Lippo's EBITDA only amounted to USD174m at end- 2012. The ratings
are also constrained by Lippo's aggressive expansion plan for its
malls and hospitals operations until 2015. Funds for expansion
will be partially obtained from continued sale of healthcare and
retail mall assets to its REITS.

Potential Cikarang structural subordination: Lippo Cikarang, which
is being built by PT Lippo Cikarang Tbk of which Lippo is a
majority shareholder with a 54.3% interest, is a significant
revenue contributor. The project represented 44% of Lippo's total
marketing sales in 2012. There is currently no leverage within
this entity; however, structural subordination of Lippo to the
entity's cash flows could arise if debt is incurred by Lippo
Cikarang Tbk.

Rating Sensitivities

Negative: Future developments that may, individually or
collectively, lead to negative rating action include:

-- Recurring EBITDAR fixed-charge cover falling below 1.25x
   (2012: 1.3x) on a sustained basis

-- Failure to pre-fund its projected capex

No positive rating action is expected over the medium term given
the issuer's small size and aggressive capital expenditure plan.
However, the National Rating may be upgraded if there is a
strengthening in the fixed-charge coverage ratio.

The following instruments have been affirmed:

-- USD250m senior unsecured notes due in 2019 at 'BB-'.
-- USD273m senior unsecured notes due in 2020 at 'BB-'.
-- USD130m senior unsecured notes due in 2020 at 'BB-'.



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


EACCESS LTD: Moody's Affirms Ba2 CFR with Stable Outlook
--------------------------------------------------------
Moody's Japan K.K. has affirmed the senior unsecured debt of
eAccess Ltd and its Issuer ratings at Ba2.

The outlook is changed to stable from developing reflecting
Moody's rating action concluding the review on parent SoftBank
Corp.'s on July 18, 2013.

Ratings Rationale:

The rating affirmation considers the strategic benefits to eAccess
from SoftBank's greater size, marketing and branding organization,
and access to capital. There are also synergies from access to a
larger subscriber base for eAccess' 1.7GHz spectrum which is not
licensed to SoftBank. Including eAccess' subscriber and revenue
base, Softbank group is now Japan's 2nd largest wireless operator.

Moody's has incorporated such expected support and equalized
eAccess' rating to that of SoftBank. The stable outlook mirrors
the same and preceding rating action on SoftBank.

Moody's notes that SoftBank has not guaranteed nor is explicitly
supporting eAccess' debt, and has only 33.29% governance control
of the company. However, there is, in Moody's opinion, the
expectation of support, if needed. SoftBank retains nearly all of
the economic ownership of eAccess. The company provides an
important support, through its LTE spectrum, to SoftBank's mobile
product offering and is an increasingly integrated entity in
SoftBank's domestic Japanese mobile strategy.

Moody's notes that the rating applied to eAccess' unsecured rated
debt reflects the effective subordination of bondholders to
existing secured bank debt. This subordination lowers the rating
assigned to the bonds by one notch.

SoftBank will consolidate eAccess' results from the fiscal year
ending March 2014 -- which started April 1, 2013 -- as a result of
the adoption of International Financial Reporting Standards
(IFRS).

Ratings would be upgraded if SoftBank's rating is upgraded. Upward
rating pressure could emerge if eAccess' financial profile on a
standalone basis strengthens. For instance, if debt/EBITDA
improves to and remains at about 2.5x, and if EBITDA margin
remains above 35%, the rating may be upgraded.

Furthermore, if secured debt is paid down or refinanced with
unsecured obligations, the effective subordination of the
unsecured rated debt would be eliminated and the rating of the
unsecured debt upgraded.

However, should eAccess' financial metrics deteriorate
meaningfully from current levels, a downgrade could be considered.
And any future actions indicating a diminished financial or
operational support from SoftBank would lead to a review of the
rating.

The principal methodology used in this rating was Moody's "Global
Telecommunications Industry," published in December 2010.

eAccess Ltd, headquartered in Tokyo, is a multi-service operator
of an asymmetric digital subscriber line (ADSL) business and a
mobile broadband business. As a result of delisting from the Tokyo
Stock Exchange on December 26, 2012, it is no longer a publicly
traded company.

SoftBank Corp., headquartered in Tokyo, is a holding company that
owns leading global providers of various services, including
broadband, fixed-line and mobile telecommunications, software
distribution and networking.


JLOC 39: S&P Lowers Ratings on Classes B and C Notes to 'D'
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered to
'D (sf)' from 'CCC- (sf)' its ratings on the class B and C trust
certificates issued in December 2007 under the JLOC 39 Trust
Certificate (JLOC 39) transaction.  The class A trust
certificates, which S&P had placed on CreditWatch with negative
implications on Nov. 15, 2012, redeemed in full on the payment
date in July 2013.  Meanwhile, S&P lowered to 'D (sf)' its rating
on class D on Jan. 29, 2013.

The servicer completed the collection from the transaction's
remaining specified bond.  However, the outstanding principal
balance of the specified bond exceeded the amount collected.  The
specified bond, which defaulted and was backed by a single office
building in Tokyo, originally represented about 38.5% of the total
issuance amount of the trust certificates.  S&P lowered its
ratings on classes B and C because it confirmed that the principal
on these classes was written down on the principal and interest
payment date in July 2013.

JLOC 39 is a multiborrower commercial mortgage-backed securities
(CMBS) transaction.  Specified bonds and a loan issued by 10
obligors secured the trust certificates at the outset of the
transaction, and 34 real estate properties and real estate trust
certificates initially backed the specified bonds and loan.
Morgan Stanley Japan Securities Co. Ltd. (currently, Morgan
Stanley MUFG Securities Co. Ltd.) arranged the transaction, and
ORIX Asset Management & Loan Services Corp. acted as the servicer.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.  The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at:

            http://standardandpoorsdisclosure-17g7.com

RATINGS LOWERED

JLOC 39 Trust Certificate
JPY40.3 billion trust certificates due April 2014
Class   To       From        Initial issue amount   Coupon type
B       D (sf)   CCC- (sf)   JPY5.4 bil.             Floating rate
C       D (sf)   CCC- (sf)   JPY3.9 bil.             Floating rate


SOFTBANK CORP: Moody's Cuts Ratings to Ba1 After Sprint Purchase
----------------------------------------------------------------
Moody's Japan K.K. has downgraded to Ba1 from Baa3 its issuer and
senior unsecured bond ratings on SoftBank Corp.

The ratings outlook is stable.

This concludes the review initiated on October 15, 2012 after
SoftBank announced its plan to acquire 70% of the shares of Sprint
(formerly Sprint Nextel Corporation) (B1 corporate family rating,
on review with direction uncertain).

Ratings Rationale:

On July 11, SoftBank closed the transaction at an amended price of
US$21.6 billion (approximately JPY1.8 trillion) for a total of 78%
of the shares.

The downgrade to Ba1 reflects Moody's view that 1) the debt-
financed acquisition of Sprint will significantly weaken
SoftBank's financial flexibility, and 2) the possibility that
SoftBank will have to extend additional finance to help Sprint
execute its large capital expenditure program of US$16 billion for
2013 and 2014.

The rating action also incorporates Moody's concerns over whether
Sprint can generate positive free cash flow by the end of
FYE12/2015. Sprint has large valuable spectrum assets and its
operating performance is improving, but free cash flow remained
negative in the latest quarter ended March 2013 due to its large
capital expenditures.

At the same time, Moody's recognizes 1) SoftBank's strong domestic
telecoms operation, backed by its efforts to improve connectivity
and other measures to retain existing customers and attract new
ones and 2) its position as Japan's No. 2 telecoms operator by
revenue size, operating profit and subscriber number.

SoftBank's Ba1 rating is based on assessment of the company's
standalone financial strength. Moody's views the operation of
Sprint and SoftBank as substantially separate. Albeit both
companies will share a central strategy, they operate in two
separate geographic areas with limited synergies. Additionally,
there is no explicit support provided to Sprint.

The ratings assessment assumes the acquisition provides no
meaningful financial benefit to SoftBank during at least the first
two years of ownership. As a stress case, Moody's also assessed
SoftBank's financial profile assuming SoftBank will fund, through
its standalone cash flow and debt incurrence, Sprint's negative
free cash flow over the next two years. In regard to this stress
scenario, Moody's notes Sprint may be able to fund much of this
capital spending through external funding that SoftBank has noted
substantial synergies associated with the acquisition -- primarily
in the purchase of equipment and handsets.

Moody's estimates the level of SoftBank's consolidated gross debt
(excluding Sprint's existing debt) to be around JPY4.8 trillion
after including the US$21.6 billion in new debt raised to pay for
Sprint. It results in debt/EBITDA coverage of around 4.2x, which
is a coverage ratio typical for a single-B company.

Moody's Ba1 rating of SoftBank also considers the probable
financial support that it will extend to Sprint 's capital
investment program over the coming two years. This capex program
is designed to upgrade its facilities, which will be critical for
turning around Sprint.

SoftBank has improved its financial metrics in the last two years,
especially its ability to generate higher EBITDA on the back of
stronger revenue growth and a steady improvement in its operating
margin despite heightened competition. The company's reported
EBITDA margin was 32.4 % for FYE3/2013 compared with 30.4% in
FYE3/2012. Interest coverage of reported EBITDA less capex
improved to 14.9x from 8.3x during the same corresponding period.

On the other hand, the acquisition will cause adjusted debt/EBITDA
to deteriorate to around 4.2x in FYE3/2014 due to the large
increase in debt. In Moody's stress scenario that assumes if
negative cash flow continues at Sprint, the ratio would further
rise to 4.6x if including the additional debt (totaling
approximately US$11 billion for FYE3/2014 and 3/2015) to Sprint
for its capital spending. But the ratio should fall back to around
3.0x in FYE3/2016 if SoftBank maintains its stable operating
performance in its home market and generates sufficient cash flow
from operations to cover its own annual capital expenditure
projected to be JPY780 billion for FYE3/2014 and JPY580 billion
for FYE3/2015 by the company.

The stable outlook reflects Moody's view that the company will
maintain its position as the No. 2 telecommunications company in
Japan. This strong position supports steady revenue and EBITDA
growth, such that the company can adequately service the debt
added by the Sprint acquisition as well as further support for its
transformation in Moody's view.

SoftBank's rating could face upward pressure if it continues to
improve profitability and reduces leverage, such that its adjusted
EBITDA margin stays above 35% and adjusted debt/EBITDA remains
below 2.5 x. In addition, the company will need to demonstrate a
continued trend of excellent liquidity and access to capital
markets. Any upgrade will also be dependent on the successful
implementation of the company's business plan for Sprint and a
reduction in potential support from SoftBank.

In light of the enormous investment made, negative pressure on
SoftBank's rating could emerge if progress in improving Sprint's
financial and operational profile does not emerge. Sprint is not
expected to generate positive free cash flow until 2015 but other
metrics will provide guidance as to the success of the company's
efforts. These include increased profit margin, increased
subscriber numbers and/or low and trending downward of postpaid
churn. Downward rating pressure could also emerge if SoftBank's
adjusted EBITDA margin falls below 30%, or if the company's
adjusted debt/EBITDA does not trend down to below 3x from Moody's
current expectation of between 3-4x for the coming three years. A
significant change in SoftBank's position in the Japanese mobile
communications market would also lead to negative pressure, as
would any significant acquisitions or share buybacks.

The principal methodology used in this rating was Moody's "Global
Telecommunications Industry," published in December 2010.

SoftBank Corp. headquartered in Tokyo, is a holding company that
owns leading global providers of various services, including
mobile and fixed-line telecommunications, broadband, software
distribution, networking and publishing.



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


STX GROUP: Shipbuilding Unit's Future Remains in Limbo
------------------------------------------------------
The Korea Times reports that concerns are growing over a plan by
creditors to inject KRW3 trillion into cash-strapped STX Offshore
& Shipbuilding because it is uncertain whether the shipbuilder
will recover, even with the fresh liquidity.

The report relates that experts said the company's full recovery
depends on unforeseeable economic factors.  The Korea Times notes
that even creditors have raised concerns over whether the
shipbuilding firm will recover and become profitable again because
the sluggish shipbuilding and shipping industry are unlikely to
improve soon.

"Countries such as China, Brazil and Russia tend to build their
own ships and use their own ships in trades. Their shipbuilding
skills have become high, so STX Offshore & Shipbuilding might not
have a competitive edge against such competitors in near future.
It may have a negative impact on the company's full recovery," an
official at one of the creditor banks told the Korea Times.

"If we inject money, we have to collect it. But there is no
guarantee on whether the company will be able to pay it back," he
said, adding that his bank is reviewing the rescue proposal, the
report relates.

The Korea Times reports that KDB, the main creditor, said July 16
that it has drawn up the final rescue plan for the company and
asked other seven creditor banks to agree on the proposal for the
money pumping into the shipbuilding affiliate of STX Group, the
nation's 13th-largest conglomerate.

Along with the fresh liquidity of KRW1.8 trillion and other
financial support worth KRW300 billion to be supplied by the end
of next year, the total amount of liquidity will be around
KRW3 trillion given that they have already offered KRW850 billion.

The Korea Times says the seven creditors will review the proposal
before deciding whether to agree it. They are supposed to give the
answer to KDB by July 23.  The seven banks are: Export-Import Bank
of Korea, NH Bank, the Korea Finance Corp., Woori Bank, Korea
Exchange Bank, Shinhan Bank and the Korea Trade Insurance Corp.

The scheme will be confirmed if creditors holding a combined 75
percent of the company's total debt agree to it, the report notes.

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

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

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



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


NATIONAL SAVINGS: Fitch Assigns 'BB-' Issuer Default Ratings
------------------------------------------------------------
Fitch Ratings has assigned Sri Lanka's National Savings Bank (NSB)
Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDRs) of 'BB-' with Stable Outlooks.

NSB has also been assigned a Support rating (SR) and Support
Rating Floor (SRF) of '3' and 'BB-' respectively, the latter being
the same level as the sovereign. The agency has not assigned NSB a
Viability Rating as it is viewed as a public-mission bank due to
its policy role.

Simultaneously, NSB's National Long-Term rating has been affirmed
at 'AAA(lka)' with a Stable Outlook.

Key Rating Drivers

NSB's ratings reflect Fitch's expectation of the government of Sri
Lanka's high propensity but moderate ability to provide support to
the bank in case of need. The state's high propensity to support
NSB stems from the bank's full state ownership, systemic
importance and its policy mandate of mobilising retail savings and
investing them in government securities. The state's moderate
ability to provide timely support to NSB at times of distress is
reflected in the 'BB-'/Stable sovereign rating.

The ratings also take into consideration preferential state
support to NSB in the form of the explicit guarantee on deposits
contained in the NSB Act. Fitch is of the view that state support,
in case of need, is likely to be for depositors and senior
unsecured creditors of NSB to maintain confidence and systemic
stability.

Rating Sensitivities

Any change in Sri Lanka's rating or to the perception of state
support to NSB could result in a change in NSB's IDRs and National
Ratings.

Further, a reduced expectation of state support through, for
instance, the removal of preferential support extended to NSB, or
a substantial change in its policy role and/or deviation from
mandated core activities indicating its reduced importance to the
government, could result in a downgrade of NSB's National Rating.

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.

NSB is bound by the NSB Act No.30 of 1971 to invest a minimum of
60% of its deposits in government securities. Historically,
holdings of government securities have exceeded this threshold
(76% on average from 2008-2012). In total, NSB's exposure to the
state and state owned entities (SOE) through investments in
government securities, loans and equity investments accounted for
71% of assets at end -2012. Such high exposure has supported NSB's
local regulatory capital adequacy ratios although absolute
capitalisation remains thin.

Loans accounted for 27% of NSB's assets at end-2012. Its loan book
comprised mostly pawning (gold-backed) advances (36%), housing
loans (30%), and loans granted against deposits (12%).

Deposits accounted for 88% of NSB's funding at end-2012. The
majority of deposits are time deposits resulting in high funding
costs as it is not permitted to accept demand deposits as a
licensed specialised bank.

NSB ranked as the third- largest bank in the system in deposits
and the fourth-largest in assets at end -2012. It was established
through the amalgamation of the Ceylon Savings Bank, the Ceylon
Post Office Savings Bank and the National Savings Movement. NSB
has an extensive footprint across Sri Lanka, including 219
branches and 4,053 post offices and sub-post offices at end-2012.

A full list of NSB's ratings:

Long-Term Foreign- and Local-Currency IDRs assigned at 'BB-';
Stable Outlook
Short-term Foreign Currency IDR assigned at 'B'
Support Rating assigned at '3'
Support Rating Floor assigned at 'BB-'
National Long-Term Rating affirmed at 'AAA(lka)'; Stable Outlook



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


* Asia-Pacific Country Ratings to Remain Stable Says Moody's
------------------------------------------------------------
Moody's Investors Service says that the sovereign ratings in Asia-
Pacific will remain largely stable despite China's slowdown,
continuing global headwinds, and the volatility in global capital
markets.

The steadiness in the outlook for sovereign credit in the region
is further in line with Moody's conclusion that the outlook for
global economic growth has also not changed significantly since
Moody's published its Asia-Pacific 2013 Sovereign Outlook in
January.

As before, support for the Asia-Pacific growth outlook is coming
from the moderate pace of recovery in the US and the sturdy
economic and fiscal fundamentals of most countries in the region.
At the same time, the ongoing recession in the euro area still
represents a prominent constraint.

Moody's conclusions were contained in its Asia Pacific 2013
Sovereign Mid-Year Update. The report is -- Asia-Pacific 2013
Sovereign Mid-Year Update: Broad Regional Stability Amid
Continuing External Volatility as its title states -- an update to
markets and not a rating action.

Sovereigns in the region are likely -- as indicated -- to
withstand continued market volatility as key metrics related to
growth, fiscal, and external performance remain well-positioned.

As a result, Moody's does not see material downward pressures on
the 21 of 22 rated sovereigns in the region with stable outlooks.
The exception is Pakistan (Caa1) which has a negative outlook.

According to the report, although regional economic expansion has
moderated since last year, it remains stronger relative to other
regions.

The report says that the deceleration of the Chinese economy poses
downside growth risks for the region, given the country's role as
a major source of demand for Asia-Pacific's exports.

The extent to which growth slows will in part be determined by
policymakers, as China attempts to rein in excessive credit
expansion and fundamentally restructure its economy to reduce
reliance on investment as a driver of growth.

The outlook for the global economy will also weigh on the growth
prospects of China's economy, which has a high degree of openness.

The report also concludes that governments in the region are seen
running relatively tight fiscal policies, or continuing with
gradual fiscal consolidation.



                             *********

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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