TCRAP_Public/130729.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 29, 2013, Vol. 16, No. 148


                            Headlines


A U S T R A L I A

APEX GOLD: Administrators Seek Buyers for Wiluna Gold
BERESFORD CONCRETE: Buyers Sought For Assets, Business
DAVID DESIGN: Clifton Hall Appointed as Liquidator
KOORINGA HOTEL: Creditors Meeting Set for August 2
OPES PRIME: Director Dismisses Accounts Risk Warning


C H I N A

* Fitch Says Chinese MMF Assets See Major Outflows


I N D I A

ALOK HARSH: CARE Assigns 'B+' Rating to INR5.10cr LT Bank Loans
B.B. SHAH: CARE Rates INR10cr Long-Term Bank Loans at 'BB-'
BALAJI MOBITECH: CARE Reaffirms 'BB+' Rating on INR13cr LT Loan
C.I. AUTOMOTORS: CARE Assigns 'B' Rating to INR7.80cr LT Loan
C.I. FINLEASE: CARE Rates INR8cr Long-Term Bank Loans at 'B+'

FINE PET: CARE Rates INR8.56cr Long-Term Bank Loans at 'BB'
GURUNANAK ENG'G: CARE Assigns 'BB' Rating to INR3.75cr LT Loan
HARYANA CONDUCTORS: CARE Assigns 'BB-' Rating to INR7.50cr Loans
JAYDEEP CHEM: CARE Rates INR30.39cr LT Bank Loans at 'B+'
KINGFISHER AIRLINES: Lenders to Step Up Recovery Efforts on Dues

MAGMA INDUSTRIES: CARE Assigns 'B' Rating to INR19.18cr Loans
NALLAPANENI RAMESH: CARE Assigns 'B+' Rating to INR5cr LT Loan
NUAIRE ENGINEERS: CARE Assigns 'B+' Rating to INR9.25cr Loans
SAHARA GROUP: Court Issues Contempt Notices Over Refund Breaches
SRINIVASA EDIFICE: CARE Assigns 'C' Rating to INR14.92cr Loans

TATA MOTORS: S&P Revises Outlook to Stable & Affirms 'BB' CCR


I N D O N E S I A

BORNEO: Bankruptcy Cases Down to 372 in 2012


P H I L I P P I N E S

* Moody's Mulls Possible Rating Upgrades for 4 Philippine Banks
* Philippine's Ba1 Ratings on Moody's Upgrade Watch


                            - - - - -


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


APEX GOLD: Administrators Seek Buyers for Wiluna Gold
-----------------------------------------------------
Dissolve.com.au reports that expressions of interest are sought by
Ferrier Hodgson for the assets of the Wiluna Gold Project of Apex
Gold Pty Ltd and Apex Minerals NL. Bryan Kevin Hughes was
appointed as administrator, the report relates.

Dissolve.com.au says the search for expressions of interest also
includes taking part in the companies' financial reorganisation.
On June 30, 2012, the mineral resources of the project were
composed of 16.7 Mt grading 5.3g/t Au for gold of 2.8Moz.


BERESFORD CONCRETE: Buyers Sought For Assets, Business
------------------------------------------------------
Dissolve.com.au reports that expressions of interest are sought by
Deloitte for the assets and business of Beresford Concrete Producs
Pty Ltd, which trades as Skate Ramp Company, BCP Precast, Precast
Solutions and BCP Streamguard.  Richard Hughes and
John Greig were appointed as managers and receivers of the
company, the report says.

According to the report, the sale of the company will include
leased premises in Moorebank, Yatala and Charmhaven. Beresford
Concrete is ISO 9001 accredited.

Dissolve.com.au relates that the final buyer will get key mould
bank for pits, culverts and other infrastructure projects. The
company's present order book is AUD5.7 million, the report
discloses.

Beresford Concrete manufactures precast concrete products for
civil construction, infrastructure and commercial plumbing
industries.


DAVID DESIGN: Clifton Hall Appointed as Liquidator
--------------------------------------------------
Mark Hall of Clifton Hall was appointed liquidator of
David Design & Drafting Pty Ltd by Order of the Federal Court of
Australia on July 24, 2013.


KOORINGA HOTEL: Creditors Meeting Set for August 2
--------------------------------------------------
Timothy Clifton and Mark Hall of Clifton Hall were appointed as
joint and several liquidators of Kooringa Hotel Burra Pty Ltd on
July 23, 2013.

A meeting of creditors will be held on Aug. 2, 2013, at
10:30 a.m. in the offices of Clifton Hall, Level 1, 12 Gilles
Street, in Adelaide.


OPES PRIME: Director Dismisses Accounts Risk Warning
----------------------------------------------------
Madeleine Heffernan at The Sydney Morning Herald reports that Opes
Prime director Julian Smith angrily dismissed warnings that
accounts held at the broker by mining identity Norm Seckold and
high-profile lawyer Chris Murphy were a risk to the stockbroking
firm, a court has heard.

SMH says Mr. Smith has pleaded not guilty to two charges of
dishonestly breaching his duties as director of companies in the
Opes Prime group.  Each charge carries a maximum jail term of five
years, the report relates.

According to the report, the Victorian Supreme Court on July 25
heard that a report by the Opes Prime risk committee identified
five key risks to the company, including its reliance on lender
ANZ, with which it had a AUD220 million credit limit, and the
influence of key customers Messrs. Seckold and Murphy.

In response, SMH relates, Mr. Smith accused the committee of a
"serious error of judgment" and offered it "an education about the
business."

Pointing to his decades of experience, he said the report
misunderstood securities lending and borrowing, and had failed to
consult with him, SMH relays.

SMH reports that the risk committee report said: "The risk exists
that for various different reasons that ANZ could vary the terms
of finance or withdraw finance at short notice and thus in the
absence of other funding, Opes would need to recall funds from its
clients."

SMH relates that the committee recommended Opes Prime reduce
Mr. Murphy's facility, worth up to AUD200 million, scrap his
ability to borrow 100 per cent of the value of his stock, and
force him to diversify out of Challenger stock.

The committee warned Opes would be "significantly impacted" if Mr
Seckold sought back his shares, worth $45 million, which another
company associated with Mr Smith and fellow Opes Prime director
Laurie Emini, Leveraged Capital, had been using as a buffer, SMH
relates.

According to SMH, the Australian Securities and Investments
Commission alleges that as Opes Prime teetered on the brink of
collapse in March 2008, Mr. Smith wrongly pledged assets belonging
to two Opes Prime companies in order to secure a loan of AUD95
million from the ANZ to Leveraged Capital.

SMH adds that prosecutor Greg Lyon, SC, said Mr. Smith "more than
just dismissed the issues raised on behalf of the risk committee,
he dismissed them and smacks them down as being misinformed and
uneducated."

The trial is expected to run for up to 10 weeks, the report notes.

                         About Opes Prime

Opes Prime Group Ltd was an Australian unlisted public company
providing a range of financial services and products for high
net worth individuals, stockbrokers and financial advisors,
asset managers, banks and other firms, both for themselves and
their clients.  The Group conducted business via a number of
operating subsidiaries based in Melbourne, Sydney and Singapore:

   1) Opes Prime Stockbroking Limited is a full Market
      Participant of the Australian Stock Exchange Ltd, and
      holds an Australian Financial Services Licence (#247408)
      which enables it to deal and advise in financial
      services and products to retail and wholesale clients. The
      company was first registered on 10 March 1999, and started
      business with its current shareholders in 2005.  Opes
      Prime Stockbroking is a specialist provider of
      securities lending and equity financing services.  In
      Singapore, the firm operates through Opes Prime Group's
      wholly owned subsidiary, Opes Prime International Pte Ltd.
      In Australia, Opes Prime Stockbroking has granted
      Authorized Representative status to Trader Dealer Pty Ltd,
      an on-line non-advisory trading execution service for the
      semi-professional and professional trader.

   2) Opes Prime Structured Products Pty Ltd develops, manages
      and markets specialized leveraged products for the high
      net worth market, providing outstanding risk protection
      and return potential.

   3) Opes Prime Paradigm Pty Ltd, is a corporate finance and
      advisory firm specializing in small and mid cap stocks.

   4) In Singapore, Opes Prime Asset Management Pte Ltd provides
      specialist hedge fund incubation, advisory and trade
      management services, and Five Pillars Associates Pte Ltd
      provides Islamic finance consultancy.

                           *     *     *

The Troubled Company Reporter-Asia Pacific reported on April 1,
2008, that Opes Prime was placed under receivership after
directors became aware of a number of cash and stock movement
irregularities in relation to a small number of accounts.
Ferrier Hodgson Partners John Lindholm, Peter McCluskey and
Adrian Brown have been appointed Administrators by the directors
of Opes Prime Group Limited and a number of its subsidiaries and
related entities including, Opes Prime Stockbroking Limited.
Initial investigations indicate that the solvency of the
business was under pressure due to a number of major clients not
meeting significant margin calls.

Sal Algeri and Chris Campbell from the Deloitte Corporate
Reorganization Group were appointed by a secured creditor, ANZ
Banking Group Ltd., as Receivers and Managers of Opes Prime Group
Ltd, Opes Prime Stockbroking Ltd, Leveraged Capital Pty Ltd and
Hawkswood Investments Pty Ltd.

The TCR-AP reported on Oct. 17, 2008, that Opes Prime's creditors
voted on Oct. 15, 2008, to liquidate Opes Prime Stockbroking
Limited.  According to the Australian Associated Press, the
decision of the creditors will allow the liquidator to pursue
claims against Opes Prime's secured creditors -- ANZ Bank
and Merrill Lynch -- that were not available to the administrator.

About 1,200 Opes clients lost shares they had placed with Opes in
return for margin loans, when the major secured creditors of
Opes -- ANZ, Merrill Lynch, Dresdner Kleinwort -- began selling a
pool of nearly AUD1.6 billion in shares soon after the Opes
collapse, in a bid to recover money owed to them by Opes, the AAP
said.

Opes Prime owed clients about AUD585 million at the time of the
collapse, but due to fluctuations in the share market that figure
had fallen to about AUD400 million on Sept. 22, 2008, the AAP
noted citing Ferrier Hodgson.



=========
C H I N A
=========


* Fitch Says Chinese MMF Assets See Major Outflows
--------------------------------------------------
Assets under management (AUM) for Chinese open-ended money market
funds (MMFs) dropped nearly 40% during the second quarter of 2013
as both retail and institutional funds faced heavy redemptions,
according to Fitch Ratings' calculations. The outflows,
unprecedented in the market's relatively short history, were
driven by volatile interbank market conditions and tight liquidity
during June.

Total AUM fell to CNY304bn at the end of Q213. Most notably,
assets in institutional offerings fell by nearly 50% to CNY136bn.
Around 70% of all institutional funds reported outflows, with 25%
of MMFs in this segment losing more than half of their asset base.
Consequently, institutional MMFs' assets fell back below the level
of the retail market, ending the quarter with a market share of
about 45%.

While Chinese MMF asset flows are normally volatile, the outflows
were far beyond normal seasonal cash needs of investors towards
quarter end. Outflows were driven by a combination of increasing
nervousness about fund liquidity, the potential for redemption
limits, and the possibility of funds breaking the buck, as well as
higher interest rates offered by banks on wealth management
products and deposits.

Information on the diversity of institutional MMFs' investor bases
is not readily available, but we believe many funds are
concentrated and this may have increased the severity of the
impact.

"We expect Chinese MMF managers will reassess the liquidity
profile of their funds on this experience and increase the share
of short-term holdings. Managers may also re-consider the
diversity and stability of fund investors and, if needed, alter
their investment strategy to mitigate concentration risks," Fitch
says.

"At this stage we believe that the decline in interest rate
volatility since Q213 will support a normalisation in Chinese MMF
flows in the coming months. The key challenge, however, will be to
restore investor confidence in China's liquidity transmission
mechanism and the expected level of interest rate volatility."

The four Fitch-rated Chinese MMFs were able to weather the
liquidity crisis as a result of more conservative maturity
profiles and higher liquidity levels relative to the broader MMF
universe in China, as highlighted in Fitch's comment "Rated
Chinese MMFs Weather Volatility", dated June 26, 2013.



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


ALOK HARSH: CARE Assigns 'B+' Rating to INR5.10cr LT Bank Loans
---------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Alok Harsh
Rice Mill Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       5.10      CARE B+ Assigned

Rating Rationale

The rating assigned to the bank facilities of Alok Harsh Rice Mill
Private Limited is constrained by its nascent stage of operations,
presence in an intensely competitive and highly regulated industry
and high working capital intensity of its business with exposure
to vagaries of nature. The rating, however, derives strength from
the experience of the promoter, proximity to raw material sources
resulting in low inward freight cost and favorable industry
scenario.

The ability of the company to stabilize its operation, increase
its scale of operations & profitability and manage its working
capital effectively will be the key rating sensitivities.

Alok Harsh Rice Mill Private Limited, incorporated in May 2010,
was promoted by Mr. Sunil Kumar Keshri and his brother Mr. Niraj
Kumar. The company was promoted to set up a processing & milling
unit of par boiled rice and sale of its by-products like husk,
rice bran etc in the domestic market. The plant, having an
installed rice processing capacity of 64 metric tonnes per day
and sorting capacity of 6 tons/hour, is situated in Bhojpur
district of Bihar, a major paddy-growing area and in close
proximity to the local grain market, enabling easy paddy
procurement. The unit was set up at an aggregate project cost of
INR6.3 crore, being financed at a debt-equity ratio of 2.17:1
and started commercial operation from April 2013.


B.B. SHAH: CARE Rates INR10cr Long-Term Bank Loans at 'BB-'
-----------------------------------------------------------
CARE assigns 'CARE BB-' rating to the bank facilities of B.B. Shah
Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities        10       CARE BB- Assigned

Rating Rationale

The rating assigned to the bank facilities of B.B. Shah Private
Limited is primarily constrained on account of its modest scale of
operations, thin profitability margins, weak solvency position and
moderate liquidity profile. The rating is further constrained on
account of its presence in a highly fragmented and competitive
textile industry, and vulnerability of profitability margins to
the fluctuation in raw material prices.

The rating, however, favorably takes into account the vast
experience of the promoters in the textile industry and being a
part of the Gogad group, derives synergic benefits in the form of
established marketing and distribution arrangement.

Improvement in the overall scale of operations and profitability
margins, along with with improvement in capital structure is the
key rating sensitivity.

BSPL, incorporated in 1984, is promoted by the Gogad family based
at Pali (Rajasthan) and is engaged in the processing of cotton
fabrics, which is used in the manufacturing of ladies suites. The
Gogad family is engaged in the textile processing business since
more than three decades in the textile industry. The promoters
have also promoted other group concerns, which include Gogad
Fabrics Private Limited (GFPL; incorporated in 2002;) Naresh
Textile Mills (NTM) and Sidhi Vinayak Texfab Private Limited
(SVTPL, incorporated in 2004).

BSPL has its processing plant located at Pali with an installed
capacity of 250 Lakh Meters Per Annum (LMPA) and started
production from August 2011 onwards. Earlier, till July 2011, the
plant of BSPL was given on rent to GFPL and no business activities
were carried under BSPL.

During FY12 (refers to the period April 1 to March 31), BSPL has
reported a PAT of INR0.35 crore on a total operating income of
INR37.77 crore during FY12. Furthermore, FY13 was the first full
year of operations of the company for processing of fabrics and
the company has registered TOI of INR75.98 crore as per
provisional result of FY13.


BALAJI MOBITECH: CARE Reaffirms 'BB+' Rating on INR13cr LT Loan
---------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Balaji Mobitech Pvt. Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities        13       CARE BB+ Reaffirmed

Rating Rationale

The rating assigned is constrained by the low profitability
margins of Balaji Mobitech Private Ltd owing to the trading nature
of the business, stretched liquidity position leading to high
utilization of working capital limits, dependency on a single
brand, inventory holding risk due to obsolescence of mobile
handsets and batteries due to rapid changes in technology of
handsets leading to varying specifications for mobile batteries
and intense competition from Chinese products and unorganized
players.

The rating, however, derives strength from the significant
experience of the promoter in trading and marketing of mobile
handsets and accessories, wide distribution network of dealers and
distributors across India, significant growth in turnover during
past couple of years and increasing demand for low-cost mobile
handsets and batteries owing to growing telecom penetration in
rural areas.

The ability of BMPL to increase its scale of operations and
improve the profitability margins while efficiently managing its
working capital are the key rating sensitivities.

Balaji Mobitech Pvt. Ltd. was incorporated on April 25, 2007, as a
private limited company by Mr. Sushil Kumar. BMPL is involved in
the trading of mobile phones, mobile phone batteries and chargers
and accessories such as hand-free kit, bluetooth, data cable, MMC
card, etc. BMPL sells its products through its distribution
network comprising 905 distributors and dealers present across
India.

BMPL registered total operating income of INR242.91 crore and PAT
of INR1.20 crore during FY12 (refers to the period April 1, 2011
to March 31, 2012). As per the provisional results for FY13, BMPL
earned a PAT of INR1.67 crore on a total income of INR295.65
crore.


C.I. AUTOMOTORS: CARE Assigns 'B' Rating to INR7.80cr LT Loan
-------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities
of C.I. Automotors Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       7.80      CARE B Assigned
   Short-term Bank Facilities      0.11      CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of C.I. Automotors
Private Limited are constrained on account of its weak financial
risk profile marked by low profitability, highly leveraged capital
structure, weak debt coverage indicators and working capital
intensive nature of operations. The ratings are further
constrained due to supplier concentration risk, linkage to the
fortunes of Mahindra and Mahindra Limited and low bargaining power
against Original Equipment Manufacturer (OEM).

The ratings, however, far off set the benefits derived from the
increase in the scale of operations during 9MFY13 (refers to the
period April 1 to March 31), coupled with the vast experience of
the promoters and its integrated operations in the auto industry.
The ability of the company to increase its scale of operations and
improvement in profitability and capital structure in light of
competitive nature of the industry are the key rating
sensitivities.

Incorporated in the year 1997, CIAPL became an authorised dealer
for Nissan Motor Company Limited in the year 2010, prior to which,
the company was an authorised dealer for TVS Motors Company
Limited (TVS). During the FY12, the company again changed its
business and became an authorised dealer for Mahindra and Mahindra
Limited.

CIAPL is promoted by Mr. Rakesh Malik, Chairman, of the C. I.
group of companies and has experience in the trading business for
more than two decades, while he has a total industry experience of
over three decades. CIAPL primarily deals in M&M's vehicles, spare
parts and accessories, while it also offers servicing of M&M
vehicles. The company has two showrooms and two service centres in
Bhopal catering to the passenger and commercial vehicle segment.

CIAPL belongs to the C.I group headquartered in Bhopal, Madhya
Pradesh. The group has two other companies viz; C.I. Finlease
Limited (CIFL-rated CARE B+), having a dealership of Hyundai
Motors India Limited and C.I. Builders Private Limited, engaged in
the real estate development.

The group has a consolidated turnover of INR125.77 crore with a
net worth of INR8.15 crore as on March 31, 2012.

During FY12 (refers to the period April 1 to March 31), CIAPL
reported the Total Operating Income (TOI) of INR19.88 crore and
PAT of INR0.04 crore as against the TOI of INR30.46 crore and net
profit of INR0.02 crore during FY11 (refers to the period
January 1 to March 31). As per the provisional results for 9MFY13,
CIAPL reported total operating income of INR47.62 crore.


C.I. FINLEASE: CARE Rates INR8cr Long-Term Bank Loans at 'B+'
-------------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of C.I.
Finlease Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities        8        CARE B+ Assigned

Rating Rationale

The rating assigned to the bank facilities of C.I. Finlease
Limited is constrained on account of its weak financial risk
profile marked by thin profitability, leveraged capital structure,
modest debt coverage indicators and high working capital intensity
of its operations. The rating is further constrained on account of
vulnerability of margins to any slowdown in the demand in the
passenger vehicle segment and direct linkages with the performance
of Hyundai Motors India Limited.

The rating, however, factors the robust growth in income over the
last three years till FY12 (refers to the period April 1 to
March 31), coupled with the vast experience of the promoters and
its integrated operations in the auto dealership industry.
The ability of the company to increase its scale of operations and
profitability margins, along with improvement in its capital
structure are the key rating sensitivities.

Incorporated in the year 1996, CIFL was initially established as a
private limited company and was engaged in the automobile
financing for TVS Motors. In May 2003, it got converted into a
public limited company and changed its line of operation as an
authorised dealer of Hyundai Motors India limited.

CIFL is the flagship company of the C.I group headquartered in
Bhopal, Madhya Pradesh. CIFL is promoted by Mr. Rakesh Malik,
Chairman, of the C.I. group of companies and has experience over
two decades in the trading business, while he has a total industry
experience of over three decades.

CIFL is an authorized dealer of HMIL cars, its spare parts and
accessories and it also offers servicing of HMIL vehicles. The
company has two showrooms and one service centre within the
city. CIFL has also appointed four sub-dealers within Bhopal that
operate on a commission basis for enhancing its scale of
operations.

The group has two other companies under its umbrella viz; C.I.
Automotor Private Limited, having a dealership of Mahindra &
Mahindra Limited and C.I. Builders Private Limited engaged in the
real estate development. The group has a consolidated turnover of
INR125.77 crore with a net worth of INR8.15 crore as on March 31,
2012. During FY12 (refers to the period April 1 to March 31), CIFL
reported the TOI of INR90.70 crore and PAT of INR0.30 crore as
against the TOI of INR68.63 crore and net profit of INR0.44 crore
during FY11 (refers to the period January 1 to March 31). As per
the provisional results for 9MFY13, CIFL
reported total operating income of INR67.68 crore.


FINE PET: CARE Rates INR8.56cr Long-Term Bank Loans at 'BB'
-----------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of Fine Pet
and Caps.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       8.56      CARE BB Assigned

The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the entity 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 Fine Pet and Caps is
constrained by its small scale of operations, moderately high
leverage and working capital intensive nature of operations. The
rating is further constrained by the volatile nature of raw
material and presence in the highly fragmented industry, leading
to an intense competition.

The foresaid constrains are partially offset by the experience of
the partners, comfortable profitability margins and location
advantage.

The ability of FPC to improve its overall scale of operations and
maintain healthy profitability margins amidst the intense
competition, coupled with efficient management of working capital
cycle are the key rating sensitivities.

Established in 2009, Fine Pet & Caps was promoted by Mr.
Balakrishna Shetty and Mr. Narendra Srisrimal, and is engaged in
the business of manufacturing PET (polyethylene terephthalate)
bottle and caps. The firm manufacturers its products using PET
resins as the basic raw material and procures it from the domestic
market mainly from Reliance Industries Limited.

FPC's revenues are earned primarily from the domestic market and
FPC primarily caters to the pharmaceuticals industry. The firm has
its registered office in Mumbai and manufacturing facility
in Solan, Himachal Pradesh with installed capacity of 7.50 crore
pieces per annum.

During FY13 (provisional; refers to the period April 1 to
March 31), FPC reported a total operating income of INR17.93 crore
(up by 41.44% vis-a-vis FY12) and PAT of INR1.66 crore (down by
49.75% vis-a-vis FY12).


GURUNANAK ENG'G: CARE Assigns 'BB' Rating to INR3.75cr LT Loan
--------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Gurunanak Engineering Services.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       3.75      CARE BB Assigned
   Short-term Bank Facilities      2.25      CARE A4 Assigned

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

Rating Rationale

The ratings assigned to the bank facilities of Gurunanak
Engineering Services are constrained by its small scale of
operations, declining profitability margins coupled with a highly
competitive industry, geographical & customer concentration risks
and constitution of the entity being a partnership firm.

The ratings, however, draw comfort from the experienced promoters,
moderate capital structure, comfortable coverage indicators and
operating cycle and moderate order book position.

Going forward, the ability of GES to execute the order book within
time and cost envisaged, improve the profitability margins and
efficiently manage working capital requirements shall be the
key rating sensitivities.

Based out of Faridabad, Haryana, GES was formed in April 2006 and
was established by Mr. Gurucharan Singh, Mr. Kanwarjeet Singh and
Mr. Inderjeet Singh with profit sharing ratios of 30%, 40% and 30%
respectively. The firm is engaged in construction works which
involve the construction of roads, bridges and other civil
construction works. GES executes contracts mainly for Public Work
Department (PWD) and Haryana Urban Development Authority (HUDA).
The firm mainly operates in New Delhi and Haryana.

GES reported a PAT of INR0.47 crore on a total income of INR15.79
crore in FY12 (refers to the period April 01 to March 31). As per
provisional results, GES has reported a PAT of INR0.66 crore on a
total income of INR18.30 crore in FY13.


HARYANA CONDUCTORS: CARE Assigns 'BB-' Rating to INR7.50cr Loans
----------------------------------------------------------------
CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank
facilities of Haryana Conductors Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       7.50      CARE BB- Assigned
   Long-term/Short-term Bank       2.00      CARE BB-/CARE A4
   Facilities                                Assigned
   Short-term Bank Facilities      3.00      CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Haryana Conductors
Private Limited are primarily constrained on account of its
financial risk profile marked by declining trend of Total
Operating Income (TOI), fluctuating profitability margins,
moderate solvency and liquidity position. The ratings are further
constrained due to the vulnerability of margins to fluctuation in
the raw material prices and its presence in a highly competitive
conductor industry.

The ratings, however, favorably take into account the established
track record of operations and vast experience of the promoters in
the conductor industry. The ratings further drive strength from
the favorable industry scenario in the long term and tax benefits
from one of its manufacturing units situated in the notified area
of Himachal Pradesh.

The ability of HCPL to increase its scale of operations with
improvement in profitability in light of volatile raw material
prices and solvency and liquidity position is the key rating
sensitivity.

Kundli-based (Haryana) HCPL, incorporated in March 1968, is
promoted by Mr. Moti Chand Jain.

HCPL is engaged in the business of manufacturing and supplying of
All Aluminium Conductors (AAC), All Aluminium Alloy Conductors
(AAAC) and Aluminium Conductor Steel Reinforced (ACSR) of all
sizes upto 61 strands. The company has two plants, one is situated
at Kundli (Haryana) and second is situated in the notified area at
Himachal Pradesh having total installed capacity of 4,100 Metric
Tonne Per Annum (MTPA) as on March 31, 2013, and has utilised
around 55% capacity during FY13 (refers to the period April 1 to
March 31). The company's products are made as per specification
required by Bureau of Indian Standards as well as approved by
Railway Department namely Central Organisation for Railway
Electrification (CORE) and state electricity transmission and
distribution entities of India.

Furthermore, during FY13, the company has set up a unit for the
manufacturing of aluminium foil at its existing factory in Kundli
(Haryana) with an installed capacity of 600 MTPA. HCPL has also
set up a wind mill in Maharashtra with total installed capacity of
600 Kilo Watt (KW).

During FY12, HCPL reported a total income of INR43.86 crore (FY11:
INR48.97 crore), with a PAT of INR1.02 crore (FY11: INR0.41
crore). As per the provisional results of FY13, HCPL has achieved
a total operating income of around INR36.28 crore.


JAYDEEP CHEM: CARE Rates INR30.39cr LT Bank Loans at 'B+'
---------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Jaydeep
Chem Food Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       30.39     CARE B+ Assigned

Rating Rationale

The rating assigned to the bank facilities of Jaydeep Chem Food
Private Limited is primarily constrained on account of the modest
scale of operations with the presence in a highly fragmented
industry and susceptibility of operations to adverse weather
conditions and natural calamities. The rating is further
constrained by the fluctuating turnover and profitability,
moderately leveraged capital structure, moderate debt coverage
indicators and stressed liquidity position coupled with large size
proposed debt funded capex.

The rating, however, favorably takes into account the experience
of the promoter coupled with location advantage of JCFPL's
manufacturing facilities, reputed clientele and sales through own
brand Jaydeep.

Increasing scale of operations with an improvement in the overall
financial risk profile and completion of debt funded capex within
the time and cost parameters and achieving envisaged level of
sales are the key rating sensitivities.

Morbi-based (Gujarat), JCFPL was incorporated in the year 2007 as
a private limited company.  JCFPL is engaged in the manufacturing
of refined salt and free flow iodized salt with an installed
capacity of 216,000 Metric Tonne Per Annum (MTPA) as on March 31,
2013. The Jaydeep group has business interest in salt and
transportation since the last 25 years. JCFPL has developed a
wellestablished distribution network spread across India and it
sells its products under the 'Jaydeep' brand.

JCFPL intends to set up a state-of-the-art salt farm near Bagasra
(Morbi) with an installed capacity of 500,000 MTPA with a total
cost of INR40 crore which is proposed to be funded through term
debt of INR24 crore, unsecured loan from the promoters & their
relatives of INR6 crore and INR10 crore through equity share
capital. With the given funding mix, the project gearing stood at
3:1. The said project is proposed to be implemented over the
period of two years ending on FY15 (refers to the period April 01
to March 31) and the commercial production is expected to commence
from Q1FY16 onwards.

Jaydeep Associates Pvt Ltd (JAPL) is the parent company of JCFPL
having 61.46% stake in the company as on March 31, 2012. JAPL was
incorporated in 1999 by Mr. Dilawarsigh Jadeja. JAPL is
engaged in the business of transportation, machinery hire and
stevedoring.

As per the audited results for FY12 (refers to the period April 1
to March 31), JCFPL reported a total operating income (TOI) of
INR22.71 crore (FY11: INR11.26 crore) and Profit After Tax (PAT)
of INR0.67crore (FY11: INR0.21 crore). During FY13 (Provisional),
JCFPL reported a TOI of INR28.30 crore.


KINGFISHER AIRLINES: Lenders to Step Up Recovery Efforts on Dues
----------------------------------------------------------------
The Times of India reports that banks are planning to tighten the
noose around the grounded Kingfisher Airlines to recover their
dues as the mandatory 90-day notice period under the
Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest (Sarfaesi) Act got over earlier
this month.

But, what may offer respite to the promoters led by Vijay Mallya
is the split among banks over declaring them a willful defaulter -
- a tag that will choke credit flow to promoter group companies
for up to five years, says TOI. "We haven't declared them a
willful defaulter, nor do we intend to do so immediately," a top-
level executive at a leading public sector bank, which has a
significant exposure to Kingfisher told TOI.

An executive at SBI, which is the lead lender in the consortium
comprising public sector banks, told TOI that the Sarfaesi notice
period expired earlier this month and banks were finalizing steps
on recovering dues that add up to over INR7,000 crore. Although
most lenders have written off the loans given to the airline, any
recovery will help them improve their bottom lines, the report
notes.

TOI relates that apart from plans to invoke guarantees given by
the promoters, the lenders have also prepared a long list of
projects, including at least two in upmarket localities in Delhi,
on which they want to stake their claims to recover the dues.
Executives, however, refused to comment on how they intend to go
about recovering dues since they are facing several cases,
including some from tenants occupying some of the properties, TOI
states.

In May, the report recalls, SBI chairman Pratip Chaudhuri had said
that lenders had managed to recover around INR1,000 crore by
selling some of the assets, mainly shares pledged with them.

At over INR1,600 crore, SBI has the maximum exposure to
Kingfisher, followed by Punjab National Bank and IDBI Bank (around
INR800 crore each) and Bank of India (INR650 crore), the report
discloses.

                       About Kingfisher Airlines

Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd., served about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops.  It maintained bases in major cities such as Delhi and
Mumbai.

Kingfisher Airlines, which has been unprofitable since it was
created in 2005, accumulated losses of $1.9 billion between
May 2005 and June 30, 2012, The Wall Street Journal reported
citing Sydney-based consultant CAPA-Centre for Aviation.  The
airline also owes about $2.5 billion to lenders, suppliers,
leasing companies and investors, the Journal added.

According to The Times of India, the company began showing signs
of weakness in November 2011 when it ran out of money to operate
most of its flights and started reducing its flights to cut cost.
The airline also failed to pay salaries to its employees for a
long time following which the employees went on an indefinite
strike. Its flying license was finally suspended in October 2012,
TOI reported.


MAGMA INDUSTRIES: CARE Assigns 'B' Rating to INR19.18cr Loans
-------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' rating to the bank facilities
of Magma Industries Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities      19.18      CARE B Assigned
   Short-term Bank Facilities      5.00      CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Magma Industries
Limited are constrained by its small scale of operations,
leveraged capital structure with moderate coverage indicators. The
ratings are further constrained by working capital intensive
nature of operations and intense competition in the domestic bulk
drug industry, coupled with threat of imports from China.
The ratings, however, draw comfort from the experienced management
and assured off-take arrangements providing revenue visibility.

Going forward, the ability of MIL to increase its scale of
operations, while improving profitability margins and capital
structure with effective working capital management shall be the
key rating sensitivities.

MIL, based in Muzzaffarnagar, Uttar Pradesh, was incorporated in
February 1999. The company is promoted by Mr. Dinesh Kumar Garg
and Ms Poonam Garg. The company is engaged in the manufacturing of
Active Pharmaceutical Ingredients (API), solvents and chemicals.
The company also does job work for Ranbaxy Laboratories Limited.
The company manufactures and sells its solvent products such as
Diclofenac Sodium, Ofloxacin, Tetra Hydro Furan, Aceclofenac and
other mixed solvents to pharma industries based out of Roorkee,
Delhi and Bhiwandi.

MIL reported PAT of INR1.68 crore on a total income of INR19.81
crore in FY12 (refers to the period April 30 to March 31) as
against a net loss of INR1.68 crore on a total income of INR14.63
crore in FY11. On a provisional basis, MIL has reported PAT of
INR0.23 crore on a total income of INR36.75 crore in FY13.


NALLAPANENI RAMESH: CARE Assigns 'B+' Rating to INR5cr LT Loan
--------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Nallapaneni Ramesh Kumar.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities        5        CARE B+ Assigned
   Short-term Bank Facilities       2        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 a change in case of 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 Nallapaneni Ramesh
Kumar are constrained by its small scale of operations with low
net worth base, highly leveraged capital structure, customer
concentration risk, volatility in input prices and sluggish growth
witnessed in construction industry amidst intense competition. The
above constraints are partially offset by the experience of the
proprietor and moderate order book position.

The ability of the firm to increase its scale of operations with
improvement in the overall financial profile will remain as the
key rating sensitivity.

Nallapaneni Ramesh Kumar was started in the year 1993 by Mr. N.
Ramesh Kumar as a proprietorship concern for executing civil
construction works. NRK is registered as a Special Class I
contractor and engaged in execution of civil construction works
like structural, road, ancillary, plumbing, drainage and
irrigation works in the state of Andhra Pradesh under direct
tender basis.

The firm is currently executing civil construction works for
government entities and had an order book worth of INR29.42 crore
as on March 20, 2013.

During FY12 (refers to the period April 1 to March 31), NRK
reported a total operating income of INR16.35 crore (FY13 (prov) -
INR26.11 crore) and a PAT of INR0.20 crore.


NUAIRE ENGINEERS: CARE Assigns 'B+' Rating to INR9.25cr Loans
-------------------------------------------------------------
CARE assigns 'CARE B+' & 'CARE A4' ratings to the bank facilities
of Nuaire Engineers Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       9.25      CARE B+ Assigned
   Short-term Bank Facilities      1.50      CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Nuaire Engineers
Private Limited are constrained by its relatively small scale of
operations with fluctuation in income, fluctuating operating
profitability margins, stretched capital structure and weak debt
coverage indicators. The ratings are further constrained by
working capital intensive nature of operations, raw material
price fluctuation risk and presence in a highly competitive and
fragmented industry.

The ratings, however, factor in the benefit derived from the
experienced promoters with long track record in the industry and
operating synergies from the group company in terms of marketing
and technical expertise.

The ability of NEPL, to improve the overall scale of operations
through steady inflow of orders and improve profitability amidst
increasing competition, while efficiently managing working capital
cycle are the key rating sensitivities.

Nuaire Engineers Private Limited (NEPL) incorporated in the year
1990, is engaged in the manufacturing of air handling units
(AHUs), used as a component of centralised air conditioning
systems. The company manufactures customised ducting systems and
cooling coils used in industrial and commercial establishments.
NEPL procures required material such as stainless
steel/galvanized sheets, copper tubes, fans, motors, filters,
pulleys and others for assembling of unit mainly from the domestic
suppliers [11% imports from Singapore and Spain in FY12 (refers to
the period April 1 to March 31)], whereas, the entire revenue is
generated through the domestic market. NEPL has its plant located
at Maharashtra Industrial Development Corporation (M.I.D.C.),
Mahape, Navi Mumbai.

During FY12, NEPL has reported total operating income of INR10.45
crore (down by 19% vis-a-vis FY11) and PAT of INR0.20 crore (down
by 41% vis-a-vis FY11). Furthermore, during FY13 (provisional),
NEPL has posted total operating income of INR10.64 crore and PAT
of INR0.14 crore.


SAHARA GROUP: Court Issues Contempt Notices Over Refund Breaches
----------------------------------------------------------------
The Times of India reports that the Supreme Court on July 17
issued fresh contempt notices to two Sahara group companies, which
are already facing contempt proceedings for violating an August
31, 2012 order directing them to refund INR24,000 crore to
investors through the Securities and Exchange Board of India
(Sebi).

TOI relates that on August 31, a bench of Justices K S
Radhakrishnan and J S Khehar had directed Sahara India Real Estate
Corporation and Sahara Housing Investment Corporation to refund
the amount within three months after finding that they had
collected it in violation of rules and regulations.  But on
December 5, 2012, a bench headed by then Chief Justice Altamas
Kabir extended the refund deadline for the Sahara companies after
they deposited INR5,120 crore and directed them to pay the
remaining amount with 15% interest in two installments -- one in
January 2013 and the second in February, the report relates. The
CJI-headed bench also allowed more time to the Sahara firms to
furnish all documents identifying the 2.96 crore investors and
with details of refunds.

On July 17, TOI reports that Sebi's counsel Arvind Datar said the
companies, which were in breach of the August 31 judgment, had
also violated the December 5 order. "Saharas have deposited a
total of INR5,120 crore and willfully and deliberately failed to
deposit the first installment of INR10,000 crore by the first week
of January as per the December 5 order," Sebi said.

The report says the court fixed July 30 for hearing on Sebi's
application with a warning that no request for adjournment would
be entertained on that day.

As reported in the Troubled Company Reporter-Asia Pacific on
Feb. 15, 2013, The Economic Times said Sebi on Feb. 13, 2013,
seized bank accounts and properties of two Sahara Group companies
and its promoter, Subrata Roy.  The move comes following the
group's failure to refund INR24,000 crore to investors as directed
by the Supreme Court.

Sahara Group operates businesses ranging from finance, housing,
manufacturing and the media.  Sahara also sponsors the Indian
hockey team and owns a stake in Formula One racing team, Force
India.


SRINIVASA EDIFICE: CARE Assigns 'C' Rating to INR14.92cr Loans
--------------------------------------------------------------
CARE assigns 'CARE C/CARE A4' ratings to the bank facilities of
Srinivasa Edifice Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       14.92     CARE C Assigned
   Long-term/Short-term Bank       25.00     CARE C/CARE A4
   Facilities                                Assigned

Rating Rationale

The ratings assigned to the bank facilities of Srinivasa Edifice
Private Limited (SEPL) take into account the delays in servicing
debt obligation in the past, strained liquidity position,
relatively small scale of operations, geographical concentration
of revenue, high competitive intensity and fragmentation of the
construction industry, high overall gearing and declining PAT
margins over the last three years ended March 31, 2012 (refers to
the period April 1 to March 31). The ratings are, however,
underpinned by the experience of the promoters, integrated nature
of operations and moderate order book position. The abilities of
the company to improve liquidity by managing receivables position,
increase scale of operations with increase in order book position,
improve profitability margins and reduce geographical
concentration risk will be the key rating sensitivities.

Srinivasa Edifice Private Limited was incorporated in the year
1984 as a subsidiary of Siddhartha Construction Private Limited to
carry out the business of supplying railway ballast, stone
aggregates, and sand to the Indian Railways. The Managing Director
of SEPL, Mr. Y V Krishna Mohan, worked as Executive Director in
SCPL and later on, bought out SEPL from the promoters of SCPL in
the year 1996. SEPL is also registered as a special class
contractor with the Government of A.P and has executed projects
mostly for the Government of A.P. The company also undertakes
minor civil works for various divisions of the Indian Railways and
municipal corporations. Apart from these, the company does minor
civil contracts for private clients, where
the works include earth work, excavation of hard rocks and
embankment layout and grading works. SEPL has an order book
position of INR139.98 crore as on July 16, 2013, which provides
short-term revenue visibility.

During FY12, SEPL achieved total income of INR132.41 crore and PAT
of INR0.11 crore. Furthermore, the company achieved total income
of INR96.19 crore and PAT of INR1.26 crore in FY13 (Provisional).


TATA MOTORS: S&P Revises Outlook to Stable & Affirms 'BB' CCR
-------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Tata
Motors Ltd. to stable from positive and affirmed its 'BB' long-
term corporate credit rating on the India-based automaker.  At the
same time, S&P affirmed the 'BB' long-term issue ratings on the
company's senior unsecured notes.

The outlook revision to stable reflects S&P's expectation that
Tata Motors' leverage will rise.  In addition, Jaguar Land Rover
Automotive PLC (JLR) is increasing its annual capital expenditures
for product development and capacity addition to about
GBP2.8 billion per year, from GBP2 billion in the fiscal year
ended March 2013.  This will result in higher-than-expected
negative free operating cash flow.

"We expect JLR to contribute more than two-thirds of Tata Motors'
revenues and about 80% of EBITDA in fiscal 2014, because of
continuing growth at JLR and Tata Motors' weak performance in
India," said Standard & Poor's credit analyst Mehul Sukkawala.

Tata Motors' India automotive operations performance has weakened
because of poor demand.  JLR's performance in fiscal 2013 was
strong with healthy sales and stable EBITDA margin; S&P had
expected its margin to decline.

"We forecast a healthy 10%-15% revenue growth for JLR in fiscal
2014, propelled by sales of the New Range Rover, Range Rover
Sport, and XF," Mr. Sukkawala said.

S&P expects Tata Motors' sales in medium and heavy commercial
vehicles in India to recover slightly this year while the light
commercial vehicles segment will stay flat.  S&P believes Tata
Motors' sales in India's passenger car and utility vehicle segment
will continue to be depressed because of intense competition and
the company's weak position.  However, its India business' EBITDA
margin is likely to improve because of better product mix and cost
reduction.

The stable outlook reflects S&P's expectation that growth at JLR
and a mild recovery in India operations will help Tata Motors
maintain its financial performance in line with S&P's
expectations, despite a significant increase in capital
investments by JLR.

S&P may upgrade Tata Motors if its business risk profile improves
(such as through a successful positioning of the Jaguar range).
S&P may also raise its rating on Tata Motors if the company funds
its increased capital expenditure largely through internal
sources, such that its ratio of consolidated debt to EBITDA falls
below 2.5x and ratio of FFO to debt increases above 30% on a
sustainable basis.

S&P may lower the rating if Tata Motors' capital expenditure is
higher than it anticipated or operating performance is weaker than
it expected, such that the ratio of FFO to debt is below 20% over
a prolonged period.



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


BORNEO: Bankruptcy Cases Down to 372 in 2012
--------------------------------------------
The Borneo Post reports that the number of bankruptcy cases
received by the Department of Insolvency (MDI) Sabah decreased
from 396 cases in 2008 to 372 cases last year.

And up to July of this year, the number of bankruptcy cases
received was 229, said Leo Saga, the director of the department,
the report relates.

According to the Borneo Post, Mr. Saga also mentioned that the
number of bankruptcy cases received were 465 in 2009, 383 in 2010
and 333 in 2011.

"Based on the trend, we're expecting about 300 cases this year,"
the report quotes Mr. Saga as saying.

At the same time, Mr. Saga, also disclosed that in the year 2011,
a total of 212 bankrupt cases were declared, and in the year 2012,
a total of 1,476 cases were declared, while up to July of this
year, a total of 285 bankrupt cases have been declared, the report
notes.

In his presentation, the Borneo Post states, the director also
touched on the winding up of companies in Sabah between 2010 and
2013. A total of 74 cases involving the winding up of companies
were resolved in 2010, and in 2011, a total of 331 cases were
resolved. In 2012 and 2013 respectively, a total of 59 cases and
14 cases (up to July, this year) have been resolved, the report
discloses.



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


* Moody's Mulls Possible Rating Upgrades for 4 Philippine Banks
---------------------------------------------------------------
Moody's Investors Service has placed the Ba1/Not Prime local and
foreign currency deposit ratings of four Philippine banks on
review for upgrade following the review for upgrade on the
Government of the Philippines' debt ratings. The credit strength
of the government is an important input in Moody's assessment of
the government's capacity to provide support in times of stress.

The banks whose ratings are placed under review are Banco de Oro
Unibank (BDO), Bank of the Philippine Islands (BPI), Land Bank of
the Philippines (LBP), and Metropolitan Bank and Trust Company
(MBT).

In addition, BDO's foreign currency senior unsecured debt rating
of Ba1 and MBT's local currency subordinated debt rating of Ba2
are placed on review for upgrade.

The bank financial strength ratings of the four banks remain
unchanged.

Ratings Rationale:

"The review for upgrade of BDO's, BPI's, LBP's and MBT's ratings
reflect our assessment that these ratings would likely benefit
from an additional notch of systemic support uplift in the event
that the parallel review of the Philippine sovereign debt rating
concludes with a rating upgrade," says Simon Chen, a Moody's
Assistant Vice President and Lead Analyst for the Philippine
banks.

In addition to considering the government's capacity to provide
support, which is reflected primarily by the government's own
rating, Moody's assessment will also take into account the
systemic importance of each bank, which would influence the
government's willingness to extend support in times of stress.

In assessing the systemic importance of each of the banks, Moody's
will consider factors including the bank's market share of system
deposits and loans, and the bank's role in the country's payment
system. The government's ownership in banks could also impact
Moody's view of the government's willingness to provide
extraordinary support to the banks.

Moody's expects to conclude the review of the affected banks'
ratings over the next three months, upon the conclusion of the
review of the Philippine sovereign debt rating.

What Could Drive The Ratings Down/Up

An upgrade of the sovereign rating would likely lead to an upgrade
of the bank ratings placed under review, assuming all other bank
fundamental credit characteristics remain robust.

Conversely, the outlook on the banks' long-term ratings could be
revised to stable from review for upgrade if the sovereign rating
remains at Ba1 following the conclusion of the rating review,
and/or Moody's concludes that the government's willingness to
provide support has diminished.

In the particular case of MBT's local currency subordinated debt
rating, which is also being placed under review for upgrade, an
upward movement in the rating is not only linked to an upgrade of
the sovereign rating, but also is contingent on the conclusion of
a separate review taking place in the context of a methodology
update that has changed the way Moody's assesses systemic support
for bank subordinated debt.

BDO Unibank, Inc.

Bank Financial Strength Rating (BFSR) of D, which maps to ba2
baseline credit assessment (BCA)

Local and foreign currency deposits rated Ba1/Not Prime

Foreign currency senior unsecured debt rated Ba1

All of its ratings are placed on review for upgrade, except its
BFSR which is assigned a positive outlook

Bank of the Philippine Islands

BFSR of D+, which maps to a ba1 BCA

Local and foreign currency deposits rated Ba1/Not Prime

All of its ratings are placed on review for upgrade, except its
BFSR which is assigned a stable outlook.

Metropolitan Bank & Trust Company

BFSR of D+, which maps to a ba1 BCA

Local and foreign currency deposits rated Ba1/Not Prime

Local currency subordinated debt rated Ba2

Foreign currency preferred stock rated B1(hyb)

All of its ratings are placed on review for upgrade, except its
BFSR and preferred stock rating which are assigned a stable
outlook.

Land Bank of the Philippines

BFSR of D-, which maps to a ba3 BCA

Local and foreign currency deposits rated Ba1/Not Prime

All of its ratings are placed on review for upgrade, except its
BFSR which is assigned a stable outlook.

All four banks are headquartered in Manila and reported total
assets as follows.

BDO Unibank, Inc.: PHP1,240 billion ($30 billion) as at March 31,
2013

Bank of the Philippine Islands: PHP940 billion ($23 billion) as at
March 31, 2013

Metropolitan Bank & Trust Company: PHP1,020 billion ($25 billion)
as at March 31, 2013

Land Bank of the Philippines: PHP737 billion ($18 billion) as at
March 31, 2013

The principal methodology used in these ratings was Global Banks
published in May 2013.


* Philippine's Ba1 Ratings on Moody's Upgrade Watch
---------------------------------------------------
Moody's Investors Service has placed the Ba1 foreign and local
currency long-term issuer and bond ratings of the Government of
the Philippines on review for upgrade.

The key drivers for the decision are:

1. The recent track record of robust economic growth

2. Stable and favorable government funding conditions

3. Improving fiscal and debt dynamics

4. Political stability and a strengthened government policy
mandate

The review will focus on the sustainability of these factors and
the relative strength of underlying credit metrics compared to
investment-grade peers in the Baa rating range.

At the same time, Moody's has also placed the government's foreign
currency shelf rating and the ratings for the liabilities of the
country's central bank, Bangko Sentral ng Pilipinas (BSP), on
review for upgrade.

Ratings Rationale:

Since Moody's last rating action on October 29, 2012, the
Philippines' economic performance has exceeded Moody's
expectations; supporting the view that the economy will grow
significantly faster than similarly rated peers over at least the
next two to three years.

In addition, despite achieving one of the highest growth rates in
Asia-Pacific over the past year - and among the highest in
emerging markets - there have been no strong signs of overheating
or a buildup in macroeconomic imbalances. Inflation, for instance,
is well-anchored at a low rate and close to the bottom of the
central bank's target range of between 3-5%, the current account
is solidly in surplus, and asset price developments are relatively
benign.

Moreover, economic growth has been robust while global external
demand has slowed over the past year; underscoring the strength of
domestic consumption and investment, both of which have been
supported by steady remittance inflows and healthy credit growth.
Furthermore, the Philippines is not as susceptible to softening
commodity prices that have pressured growth and external balances
in other similarly rated emerging market economies.

Funding conditions for the Philippines have been resistant to
external financial shocks. Government bond yields have remained
stable and very favorable even through recent global market
volatility. In addition, unlike other emerging markets, the
government's regular domestic bond auctions have been conducted
successfully with only a limited increase in financing costs. The
Philippines' unfettered market access has been aided by its
increasingly large domestic sources of financing that reflects
both the health of its external payments position and ample
liquidity in the country's banking system -- the only system
worldwide deemed by Moody's to have a positive outlook.

The structure of government debt also continues to improve,
mitigating currency and refinancing risks. For example, the
proportion of government debt denominated in foreign currency
continues to fall, aided in part by the full repayment of a $1
billion global bond that matured in February. The government will
likely refrain from tapping global capital markets this year,
meeting nearly all of its gross funding needs through domestic
sources. The government also continues to proactively address
refinancing risks by lengthening the average maturity of its debt
to around 11 years, from about seven years as of end-2009. In
addition, as mentioned earlier, the country benefits from well-
managed inflation and favorable liquidity conditions, which in
turn have contributed to lower interest rates that have enhanced
debt affordability.

Moody's assessment of the Philippine government's financial
strength is constrained by low revenues and a legacy debt burden -
- both factors of which compare unfavorably with rating peers.
Nevertheless, fiscal deficits have been relatively narrow, while
primary balances have been in surplus over the past two years,
contributing to debt consolidation.

The mid-term elections in May have also bolstered the Aquino
administration's policy mandate and improved reform prospects over
the next three years. In contrast, the second half of previous
administrations were characterized by stalled reform momentum.
Moreover, the president's approval ratings remain at historically
high levels and support the continuation of the
institutionalization of good governance in the government and
judiciary.

Furthermore, Moody's notes that improvements in the investment
climate could further bolster the Philippines' economic prospects,
while addressing revenue weaknesses. Greater progress on
infrastructure development and a long-term solution to the long-
running insurgency in Mindanao, for instance, could lead to higher
foreign direct investments (FDI). The country's FDI levels are
lower than its similarly rated peers.

Credit Triggers For A Future Rating Action

Factors that could lead to a ratings upgrade:

1. Confirmation that reduction in the government debt burden will
continue and that funding conditions will remain favorable; and

2. Indications that the acceleration of investment spending will
continue, helping to keep the economy on a path of stronger
growth.

These developments should also be accompanied by an assessment
that the health of the country's balance of payments and stability
of the financial system can be sustained.

GDP per capita (PPP basis, $): 4,412 (2012 Actual) (also known as
Per Capita Income)

Real GDP growth (% change): 6.8% (2012 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 2.9% (2012 Actual)

Gen. Gov. Financial Balance/GDP: -2.4% (2012 Actual) (also known
as Fiscal Balance)

Current Account Balance/GDP: 2.9% (2012 Actual) (also known as
External Balance)

External debt/GDP: 32.3% (2012 Actual)

Level of economic development: Moderate level of economic
resilience

Default history: At least one default event (on bonds and/or
loans) has been recorded since 1983.

On July 23, 2013, a rating committee was called to discuss the
rating of the Philippines, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have materially increased. The
issuer's institutional strength/ framework, have not materially
changed. The issuer's governance and/or management, have not
materially changed. The issuer's fiscal or financial strength,
including its debt profile, has materially increased. The issuer's
susceptibility to event risks has not materially changed. An
analysis of this issuer, relative to its peers, indicates that a
repositioning of its rating would be appropriate.

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



                             *********

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
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