TCRAP_Public/130806.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

            Tuesday, August 6, 2013, Vol. 16, No. 154


                            Headlines


A U S T R A L I A

ACL BEARING: Government Steps In to Pay Out Workers
ALLCO FINANCE: Director Faces Suit Over Breaches of Duties
BRENSTEW PTY: BRI Ferrier Appointed as Administrators
GUNNS LIMITED: Former Chairman Pleads Guilty to Insider Trading
LM INVESTMENT: In Liquidation; Foreign Investors May Get Nothing

ORIONSTONE PTY: $200MM Sr. Notes Issue Gets Moody's (P)B3 Rating
TOOWOOMBA TELEGRAPH: Closes Doors; More Than 30 Workers Lose Jobs


C H I N A

CHINA HONGQIAO: Fitch Affirms 'BB' LT Issuer Default Ratings
CHINA LESSO: China's Infrastructure Investments a Credit Positive


I N D I A

BAFNA MOTORS: ICRA Lowers Ratings on INR138.67cr Loans to 'D'
BHARATH REDDY: ICRA Assigns 'B+' Ratings to INR5.5cr Loans
KANAKADURGA EDUCATIONAL: ICRA Rates INR10cr Term Loan at 'B+'
KESHAVA REDDY: ICRA Assigns 'B+' Ratings to INR6.5cr Loans
L.S. MILLS: ICRA Upgrades Ratings on INR193.42cr Loans From 'B-'

MAHANANDEESWARA EDUCATIONAL: ICRA Rates INR23.30cr Loan at 'B+'
POONA DISTRICT: ICRA Places 'BB+' Rating on INR81cr Loan
SANT FOODS: ICRA Reaffirms 'B' Rating on INR17cr Loans
SARASWATHI EDUCATIONAL: ICRA Rates INR6.6cr Term Loan at 'B+'
SATYANARAYANA SWAMY: ICRA Rates INR8.85cr Term Loan at 'B+'

SURYA EDUCATIONAL: ICRA Places 'B+' Rating on INR8.85cr Term Loan
SWARAJ SYNTEX: ICRA Keeps Ratings on INR11.27cr Loans at 'D'
VIGNAN VIDYALAYAS: ICRA Assigns 'B' Ratings to INR17.03cr Loans


I N D O N E S I A

MEDIA NUSANTARA: First Half Results Support Moody's Ba3 Rating
MNC SKY VISION: First Half Results Support Moody's B2 Rating


J A P A N

SONY CORP: Core Electronics Business Remains Fragile, Fitch Says


N E W  Z E A L A N D

ROSS ASSET: David Ross Case Adjourned Until February Next Year


P H I L I P P I N E S

CHINA BANKING: Fitch Affirms Long-Term IDRs at 'BB'
RIZAL COMMERCIAL: Fitch Upgrades Issuer Default Ratings to 'BB'
SECURITY BANK: Fitch Affirms Long-Term IDRs at 'BB'
UNION BANK: Fitch Affirms Issuer Default Ratings at 'BB-'


X X X X X X X X

* BOND PRICING: For the Week July 29 to August 2, 2013


                            - - - - -


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


ACL BEARING: Government Steps In to Pay Out Workers
---------------------------------------------------
ABC News reports that millions of dollars in taxpayers money will
be needed to pay redundant workers at a failed Launceston car
parts manufacturer.

ACL Bearing will close in May next year after its receivers were
unable to sell the business, according to ABC News.

The report notes that the company received AUS2 million from the
Commonwealth and AUS330,000 from the State Government four years
ago when it went into receivership.

The report relates that the Deputy Premier Bryan Green says it
does not have to be repaid.

"At that stage when we put funds in, it was to assist employees
through the redundancies that occurred at that time given that the
company couldn't come up with the money to assist those
employees," the report quoted Mr. Green as saying.

ABC News discloses that the Commonwealth will pay another AUS10
million in entitlements for 136 workers when the business winds
up.


ALLCO FINANCE: Director Faces Suit Over Breaches of Duties
----------------------------------------------------------
Business Spectator, citing The Australian Financial Review,
reports that Allco Finance Group director Gordon Fell faces a
lawsuit brought forward by Allco's receivers, Ferrier Hodgson, for
damages and breaches of director duties.

The report says Ferrier Hodgson accuses Mr. Fell of hiding
information from Allco shareholders when the company agreed to buy
the Rubicon funds business in December 2007.

According to the report, AFR said Mr. Fell was a director of both
firms at the time, and made about AUD28.5 million from the deal.

The AFR added that Ferrier Hodgson accused Mr. Fell of
contravening sections of the Corporations Act relating to care and
diligence and good faith and alleges that information relating to
Rubicon's financial position was not shared with Allco's
shareholders, Business Spectator relays.

                        About Allco Finance

Allco Finance Group Ltd. is an integrated global financial
services business, specializing in asset origination, funds
creation and funds management.  The company is a fund manager of
alternative assets in its core asset classes, which include
aviation, rail, shipping, infrastructure, property, private equity
and financial assets.  Its primary focus is on commercial
property, predominately completed office buildings and select
development opportunities.  It also purchases new and existing
commercial passenger and cargo aircraft for lease to commercial
airlines.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 6, 2008, Allco Finance Group appointed Tony McGrath and
Joseph Hayes of McGrathNicol as the voluntary administrators of
the company and certain of its subsidiaries.  Subsequent to the
appointment of administrators to Allco, the company's banking
syndicate appointed Steve Sherman and Peter Gothard of Ferrier
Hodgson as receivers.  Allco has more than AUD1 billion in total
debt.


BRENSTEW PTY: BRI Ferrier Appointed as Administrators
-----------------------------------------------------
Yolanda Redrup at SmartCompany reports that fashion retail firm
Brenstew Pty Ltd has collapsed, with administrators saying tough
trading conditions and a poorly-timed expansion are to blame.
Paul Burges -- paul.burges@briferriernsw.com.au -- and Peter
Krejci -- peter.krejci@briferriernsw.com.au -- of BRI Ferrier were
appointed to the company last in July.

Brenstew, which currently trades in five retail outlets located in
Dubbo, Tamworth, and Armidale under the brands Blowes Menswear,
The Wardrobe and URXs, had administrators appointed last month.
The company turns over more than AUD6 million annually, the report
discloses.

The collapse is just one of many in the fashion industry over the
past few years, which has suffered from poor consumer confidence
and lower margins, the report relays.

Mr. Burges told SmartCompany the businesses are just one half of
the Blowes family retail business and the others will remain
unaffected.

"The business does have its origins back in 1936, but 14 years ago
two branches of the Blowes family split," the report quotes Mr.
Burges as saying.  "They also had operations in Port Macquarie and
Chatswood, but we took immediate steps to close these because they
were a drain on resources."

SmartCompany adds that Mr. Burges said the company's decision to
expand to Port Macquarie was "untimely" and was a "drain on
company resources" at a time the business couldn't afford it.

The administrator would not reveal the company's debt level or its
major creditors, the report notes.

Mr. Burges said since entering voluntary administration trade has
been "pleasing", giving hope to a possible sale of the business,
SmartCompany reports.

Expressions of interest are now being sought by August 6 for the
company and its assets, which include modern leased premises,
online stores and integrate online inventory and SEO software and
experienced long-term staff.

Brenstew Pty Ltd is a family-owned retail fashion business in
rural New South Wales founded in 1936.


GUNNS LIMITED: Former Chairman Pleads Guilty to Insider Trading
---------------------------------------------------------------
Former Gunns Limited chairman, John Eugene Gay has pleaded guilty
to insider trading.

Mr. Gay, who was a director of Gunns Limited from 1980 to 2010 and
was chairman of Gunns Limited from 2002 to 2010, was charged in
December 2011.

On December 2 and 4, 2009, while in possession of inside
information relating to the financial performance of Gunns,
Mr. Gay sold more than 3.4 million Gunns shares. This trading was
prior to the release of Gunns' half year results on 22 February
2010. Following this release, the Gunns share price fell
substantially.

The matter will return to the Supreme Court of Tasmania in
Launceston on 14 August 2013 for sentencing submissions. ASIC has
no further comment on the matter at this time.

The Commonwealth Director of Public Prosecutions is prosecuting
the matter.

Mr. Gay's offending occurred when the maximum penalty for insider
trading was imprisonment for 5 years and/or a fine of $220,000.
Since then, the maximum penalty has been increased to imprisonment
for 10 years and/or a fine of $765,000 or three times the total
benefit derived from the offence (whichever is greater).

                         About Gunns Limited

Based in Launceston, Australia, Gunns Limited (ASX:GNS) --
http://www.gunns.com.au/-- was an hardwood and softwood forest
products company. It operated within three segments: Forest
products, Timber products and Other activities.  Gunns has about
645 employees in Tasmania, Victoria, South Australia and Western
Australia.

On Sept. 25, 2012, the directors of Gunns Limited and its 35
entities, and the responsible entity of Gunns Plantations Limited
appointed Ian Carson, Daniel Bryant and Craig Crosbie of PPB
Advisory as Voluntary Administrators.  KordaMentha has also been
appointed Receivers and Managers.

The appointment came after Gunns failed to secure an equity
investor amid high debt and a prolonged trading halt, The
Australian reported.


LM INVESTMENT: In Liquidation; Foreign Investors May Get Nothing
----------------------------------------------------------------
Jenny Rogers at goldcoast.com.au reports that LM Investment
Management Limited has been placed in liquidation and will be
wound up, but overseas investors who poured AUD400 million into
just one of the company's seven funds fear they will never see
their money.

According to the report, a Dubai-based lawyer representing
overseas investors said the collapse of the company cast serious
doubts on Australia's reputation as a safe haven for investment.

goldcoast.com.au relates that Brendan Moloney slammed the lack of
oversight of the mortgage fund empire headed by former Kiwi Peter
Drake which, liquidators say, now has a book value of just
AUD7.934 million.

Mr. Moloney, who attended a creditors meeting on August 1 on
behalf of investors in Hong Kong, Japan, Thailand and the Middle
East, said LM's collapse should send a warning to "the highest
levels of government in Australia," according to goldcoast.com.au.

"This should be of concern at Prime Minister and Leader of the
Opposition level.  You are looking at a AUD400 million hole that
has been allowed to occur with foreign investors' money," the
report quotes Mr. Moloney as saying.  "That, we feel, will have a
long-term effect on the reputation of Australia as a safe haven to
invest."

goldcoast.com.au say investors in the frozen Managed Performance
Fund, now being liquidated by KordaMentha, have been warned the
return on their investment is "likely minimal and may be nil".

Ginette Muller, of FTI Consulting who, with partner John Park, was
appointed liquidator of LM Investment Management Limited on August
1, said she hoped creditors would be able to recoup something from
LM's other funds.

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

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

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

LM also operates the unregistered LM Managed Performance Fund.

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


ORIONSTONE PTY: $200MM Sr. Notes Issue Gets Moody's (P)B3 Rating
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional Corporate
Family Rating of (P)B3 to Orionstone Pty Ltd, an Australian-based
privately owned equipment hire specialist. At the same time,
Moody's has also assigned a provisional (P)B3 rating to the
proposed $200 million Senior Secured notes due 2020.

This is the first time that Moody's has assigned ratings to
Orionstone. The outlook on the ratings is stable.

The assignment of a provisional CFR and Senior Secured ratings are
subject to review of final documentation, and successful close of
the transaction. The proceeds of the transactions will be used to
refinance existing debt, working capital requirements and general
corporate purposes.

The ratings could be withdrawn if the proposed debt issuance does
not proceed as planned.

Ratings Rationale:

"Orionstone's (P)B3 rating primarily reflects the company's small
scale and limited track record of operations under its current
form" says Matthew Moore, a Moody's Vice President -- Senior
Analyst. "The rating also reflects the company's limited diversity
and direct link to the mining industry, which is experiencing
significant volatility", Moore adds.

"These challenges are counterbalanced by the company's strong
margins and variable cost structure, which help insulate earnings
during times of weaker utilization" says Moore, adding "The rating
is further supported by the company's large and young equipment
fleet, and the near term revenue visibility provided by its
contracting structure"

Orionstone has moderate financial leverage at its rating level,
supporting its ability to manage volatility in the end markets the
company services. Moody's expects credit metrics to remain at
adequate levels for the rating under Moody's base case
assumptions, with Debt-to-EBITDA projected to be around 3.5 - 4.0x
and EBIT-to-Interest around 1.5 - 2.0x.

The provisional rating for the senior secured notes is at the same
as the corporate family rating. The proposed capital structure
will be made up entirely of pari passu senior secured debt. As
part of the transaction, the company will also be entering into an
AUD25 million senior secured revolving credit facility.

"The rating outlook is stable reflecting our expectation that
Orionstone's contracted positions and potential new contracts
should allow the company to maintain an adequate financial profile
for the current rating." Says Moore, adding "the stable outlook
also reflects the company's adequate liquidity profile, which --
upon completion of the debt issuance -- benefits from Moody's
expectation for small free cash flow generation, no refinancing
requirement, and the availability of revolving facility of around
AUD25 million.

The rating could be upgraded if Orionstone is able to execute on
its growth plans while sustaining utilization rates near historic
levels, such that key credit metrics of Debt-to-EBITDA and EBIT-
to-Interest are sustained below 3.5x and above 2.0x respectively.

The rating could be downgraded if market conditions deteriorate
further causing utilization to drop and be sustained below 60% and
margins contract materially. Specifically, the rating could be
downgraded if the company experiences persistent negative free
cash flow generation and/or credit metrics deteriorate such the
Debt-to-EBITDA increase above 5.0x and EBIT-Interest drops below
1.25x.

The principal methodology used in this rating was the Global
Equipment and Automobile Rental Industry Methodology published in
December 2010.

Orionstone Pty Ltd. is predominantly a heavy earthmoving equipment
hire businesses in Australia. The company rents equipment largely
to the mining, major infrastructure and oil and gas sectors across
Australia. The company generated total revenue of AUD131.8 million
and AUD127.2 million in FY13 and FY12, respectively and generated
EBITDA of AUD60.0 million and AUD70.2 million.


TOOWOOMBA TELEGRAPH: Closes Doors; More Than 30 Workers Lose Jobs
-----------------------------------------------------------------
The Queensland Times reports that the Toowoomba Telegraph
newspaper will close after confirming it would not be able to
trade through liquidation.

Some staff cleaned out their desks before a meeting with
representatives from liquidator BRI Ferrier on July 31, the report
relays.

The report notes that the liquidator was appointed to the
Telegraph's parent company Queensland Media Holdings earlier this
month.

Principal Moira Carter said Queensland Media Holdings' Mackay and
Toowoomba telegraphs would not be published going forward,
according to the report.

"The director (of Queensland Media Holdings) was anticipating
obtaining sufficient funds from third parties to enable him to
propose a Deed of Company Arrangement to his creditors," the
report quotes Ms. Carter as saying.  "He has not been successful
in obtaining the funding."

Ms. Carter said the funds also required to provide cash flow for
the continued operations of the company were not forthcoming, the
report adds.

"This is not a decision made lightly by us, as it places in excess
of 30 people out of work," the report quotes Ms. Carter as saying.
"Former staff will have access to the Government Employee Scheme
for any entitlements due to them."



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C H I N A
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CHINA HONGQIAO: Fitch Affirms 'BB' LT Issuer Default Ratings
------------------------------------------------------------
Fitch Ratings has revised aluminium manufacturer China Hongqiao
Group Limited's Outlook to Stable from Positive. Its Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) and
senior unsecured rating have been affirmed at 'BB', respectively.

The Outlook change reflects a lower likelihood of an improvement
in Hongqiao's credit metrics following its plan for higher capex
and sustained lower-than-expected aluminium prices. Hongqiao's
Stable Outlook is supported by its cost advantages and strong
business position in Shandong province.

KEY RATING DRIVERS

Weaker profitability: Fitch expects aluminium prices to remain
soft but stable for H213. Hongqiao's EBITDAR/tonne softened to
CNY5,140/tonne in 2012 (2011: CNY5,752/tonne) as slower economic
growth and overcapacity in the industry dragged down aluminium
selling prices. Fitch expects Hongqiao's EBITDAR/tonne to likely
narrow to below CNY4,500/tonne as China's aluminium prices had
been trending down to around CNY12,000 for H113.

Higher budgeted capex: Fitch estimates Hongqiao's funds from
operations (FFO)-adjusted net leverage to peak at 2.5x (2012:
0.99x) in 2013 and expects meaningful deleveraging to only
materialise from 2015 onwards as capex tapers off. Hongqiao's
budgeted capex of CNY18bn for the next two years is mainly to
increase its primary aluminium capacity, hot rolling facilities
and to further enhance its electricity and alumina self-
sufficiency.

Strong cost competitiveness: Hongqiao's integrated operating model
enables it to achieve lower production costs than its competitors.
Its self-sufficiency ratio for its key production inputs - alumina
and electricity - was above 50% for H113 and is on track to hit
70% by end- 2013. This enabled Hongqiao to maintain its EBITDAR
margin at 37.8% for 2012 (2011: 38.6%) despite significantly
weaker average selling prices. Fitch expects Hongqiao's EBITDAR
margin to remain around 34% for the medium term as cost
enhancement initiatives partially absorb the negative impact from
the decline in aluminium prices in 2013.

Bauxite supply uncertainty: The threat of an export ban in
Indonesia on bauxite - a key input of alumina - from 2014 onwards
has raised uncertainties as Indonesia is a key bauxite supplier to
China. To moderate this risk, Hongqiao has invested in a joint-
venture to set up an alumina plant in Indonesia and, in return, is
in the midst of obtaining a permit for bauxite export quota. The
ban, if takes effect in 2014, may increase input costs for alumina
as producers may seek bauxite supply from India or Australia,
which has higher logistics costs.

Geographical and customer concentration: Hongqiao's customer base
is concentrated in Shandong province and its two largest customers
collectively contributed 50% of its sales in 2012 (2011: 46%).
Such high concentration is a constraint on its ratings.

Limited liquidity: Hongqiao's cash balances (end-2012: CNY9.2bn)
and unutilised bank facilities (end-2012: CNY7.2bn) would cover
the repayment of short-term bank loans (end-2012: CNY6.7bn). The
company's budgeted CNY12bn capex in 2013 would be funded from
internal cash as well as from its CNY5bn onshore borrowings raised
in H113.

RATING SENSITIVITIES

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

-- Deterioration in Hongqiao's leading market position in
   Zouping and Shandong

-- FFO adjusted net leverage above 2.5x on a sustained basis

-- EBITDAR/tonne below CNY3,000 on a sustained basis

-- Continuous bauxite supply disruption

Positive: Future developments that may, individually or
collectively, leads to positive rating action include:

-- FFO adjusted net leverage below 1.0x on a sustained basis

-- EBITDAR/tonne above CNY4,500 on a sustained basis

-- Securing a steady long-term bauxite supply


CHINA LESSO: China's Infrastructure Investments a Credit Positive
-----------------------------------------------------------------
Moody's Investors Service says that the Chinese government's focus
on strengthening the country's infrastructure development is
credit positive for China Lesso Group Holdings Limited, and
supports its Ba2 rating and stable outlook.

On July 31, 2013, China's General Office of the State Council said
that the central government will strengthen its urban
infrastructure development by: 1) improving urban underground
piping networks for water supply; 2) upgrading sewage and
household-waste treatment facilities; 3) renovating and upgrading
heating systems and gas pipes; 4) improving the infrastructure for
subways, light railways and other major forms of public transport;
5) upgrading the power grid network; and 6) enhancing urban
drainage systems.

"Any increase in government spending in the [these] areas is
likely to boost demand for China Lesso's products," says Franco
Leung, a Moody's Assistant Vice President and Analyst.

The company's products fall into the following categories: water
supply (39.7% of 2012 revenue), drainage (37.7%), gas supply
(1.3%), power supply and telecoms (17.9%) and others (3.4%).

"Such a wide range of product offerings and the high concentration
in water supply and drainage systems are positive for China
Lesso's business growth, as three of the government's six focus
areas are related to these segments," Leung adds.

In addition, the company's products can be used for underground
power supply for railway systems and certain types of gas pipes,
areas that could benefit from any increase in the government's
investment.

China Lesso also has geographically diversified operations, and
which will allow it to capture demand in various cities in China
and to lower transportation costs. It has 14 production facilities
across 11 provinces with designed production capacity of 1.75
million tons per annum in 2012.

Given these strengths and its better quality of service, China
Lesso is more favorably positioned to benefit from the
government's infrastructure spending than its domestic peers,
which mostly specialize in limited industry segments or are
regionally focused.

The principal methodology used in this rating was Global Building
Materials Industry Methodology published in July 2009.

Founded in 1996 and listed on the Hong Kong Stock Exchange in June
2010, China Lesso Group Holdings Ltd is one of the largest plastic
pipe and pipe-fitting manufacturers in China. The company's
products are widely used in seven major areas, namely water
supply, drainage, power supply and telecommunications, gas supply,
agriculture, floor heating and fire prevention.


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I N D I A
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BAFNA MOTORS: ICRA Lowers Ratings on INR138.67cr Loans to 'D'
-------------------------------------------------------------
ICRA has revised the long-term rating of '[ICRA]B+' to '[ICRA]D'
for INR8.67 Crore (revised from INR35.00 Crore) term loan and
INR130.00 Crore (enhanced from INR35.00 Crore) Fund Based Facility
of Bafna Motors (Mumbai) Private Limited.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Term Loan               8.67     [ICRA]D (revised)
   Fund Based Limits     130.00     [ICRA]D (revised)

The revision in rating factors in instances of delay in repayment
for its inventory funding facility reflecting stretched liquidity
position, given overall challenging market conditions for
commercial vehicle segment, as indicated by falling margins along
with demand slowdown. Further to this extension of loans and
advances, to its group concerns has also led to further stress on
cash flow position for the company.

ICRA also notes that capital structure for the company remains
highly adverse, given its low net-worth base and high borrowing
levels on account of working capital requirements as well as term
loans for capex on showrooms. The rating however continues to
favorably factor in the promoters' long experience in the vehicle
dealership business and dominant market share in the Mumbai &
suburban region as a dealer of Tata Motors Limited's commercial
vehicles (CV).

Bafna Motors (Mumbai) Pvt. Ltd. is an authorized dealer of Tata
Motors Ltd., dealing in Commercial Vehicles & Spare Parts and
Servicing of Commercial Vehicles. The company serves three regions
Mumbai, Thane and Raigad District. The Company was established on
5th November' 2001. The registered office of the company is
located at World Trade Centre, Cuffe Parade, Mumbai. The Bafna
group was promoted by Mr. M.C.Bafna, with first dealership in
Nanded.

BMMPL reported a net profit of INR7.97 Crore on an operating
income of INR936.66 Crore for 2011-12.


BHARATH REDDY: ICRA Assigns 'B+' Ratings to INR5.5cr Loans
----------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' to the INR5.50
crore fund based facilities of Bharath Reddy Educational Society.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Fund based limits-       5.30    [ICRA]B+ Assigned
   Term Loan

   Proposed limits          0.20    [ICRA]B+ Assigned

ICRA has taken a consolidated view of Keshava Reddy group of
educational institutions(KREI) including Bharath Reddy Educational
Society (BRES-I), Keshava Educational Society (KES-II), Keshava
Reddy Educational Trust (KRET-III), Sri Kanakadurga Educational
Society (SKES-IV), Sri Keshava Reddy Educational Society (SKRES-
V), Sri Mahanandeeswara Educational Society (SMES-VI), Sri
Saraswathi Educational Society (SSES-VII), Sri Satyanarayana Swamy
Educational Society (SSSES-VIII), Sri Surya Educational Society
(SSES-IX) and Sri Venkateswara Educational Society (SVES-X). The
operations of these societies are similar with strong operational
and financial linkages in the form of fund flow.

The assigned rating is constrained by the highly competitive
school education segment in Andhra Pradesh with corresponding
challenges in attracting students, increasing per student fee and
recruitment/retention of quality faculty along with the regulatory
challenges involved in the education sector. The rating of BRES is
further constrained by the short duration (four years) of
operation of its school, low net worth and the highly leveraged
capital structure which is expected to deteriorate further with
the planned debt funded capex of Rs 2 crore for classroom addition
in FY14. The rating is also constrained by the stretched cash flow
situation of KREI group due to the aggressive capex being
undertaken for starting new campuses and the highly leveraged
capital structure of the group which restricts financial
flexibility.

Going forward, due to the lumpy nature of cash flows and the
continuous capital expenditure being undertaken by the group, it
will be critical to prudently manage the cash flows in order to
avoid any liquidity mismatch and to ensure regular debt servicing.
The assigned rating however draws comfort from the significant
experience of over two and a half decades of the promoters in
imparting school education and the strong brand image of the group
with the newly started schools gaining good acceptance. The rating
also favorably factors in the healthy growth in operating income
of KREI in the last 5 years backed by increasing enrolments &
year-on-year fee revision. Company Profile

Bharath Reddy Educational Society was established in 2009 and
currently runs one school in Mahboobnagar, Andhra Pradesh. BRES-I
is part of Keshava Reddy group of educational institutions which
was started in the year 1993 with 196 students by Mr. N. Keshava
Reddy. For the first 15 years of operation the group ran it's
schools only in Kurnool, AP but since 2008 the group has been
undertaking major expansion and has spread across several
locations in Andhra Pradesh. The group presently has close to
100,000 students studying in 38 schools under the guidance of
~5000 teachers in 14 different locations in Andhra Pradesh. The
school imparts education from KG to class X as per the Andhra
Pradesh state curriculum.

Recent Results

In FY13, BRES-I had an excess of income over expenditure of
INR0.64 crore (un-audited & provisional) on an operating income of
INR6.32 crore (un-audited and provisional).


KANAKADURGA EDUCATIONAL: ICRA Rates INR10cr Term Loan at 'B+'
-------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' to the INR10.00
crore fund based facilities of Sri Kanakadurga Educational
Society.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Fund based limits-      10.00    [ICRA]B+ Assigned
   Term Loan

ICRA has taken a consolidated view of Keshava Reddy group of
educational institutions(KREI) including Bharath Reddy Educational
Society (BRES-I), Keshava Educational Society (KES-II), Keshava
Reddy Educational Trust (KRET-III), Sri Kanakadurga Educational
Society (SKES-IV), Sri Keshava Reddy Educational Society (SKRES-
V), Sri Mahanandeeswara Educational Society (SMES-VI), Sri
Saraswathi Educational Society (SSES-VII), Sri Satyanarayana Swamy
Educational Society (SSSES-VIII), Sri Surya Educational Society
(SSES-IX) and Sri Venkateswara Educational Society (SVES-X). The
operations of these societies are similar with strong operational
and financial linkages in the form of fund flow.

The assigned rating is constrained by the highly competitive
school education segment in Andhra Pradesh with corresponding
challenges in attracting students, increasing per student fee and
recruitment/retention of quality faculty along with the regulatory
challenges involved in the education sector. The rating of SKES is
further constrained by the short duration (three years) of
operation of its school, low net worth and the highly leveraged
capital structure resulting in weak debt service coverage
indicators. The rating is also constrained by the stretched cash
flow situation of KREI group due to the aggressive capex being
undertaken for starting new campuses and the highly leveraged
capital structure of the group which restricts financial
flexibility.

Going forward, due to the lumpy nature of cash flows and the
continuous capital expenditure being undertaken by the group,
prudent management of the cash flows will be critical in order to
avoid any liquidity mismatch and to ensure regular debt servicing.

The assigned rating however draws comfort from the significant
experience of over two and a half decades of the promoters in
imparting school education and the strong brand image of the group
with the newly started schools gaining good acceptance. The rating
also favorably factors in the healthy growth in operating income
of KREI in the last 5 years backed by increasing enrolments &
year-on-year fee revision.

Sri Kanakadurga Educational Society was established in 2009 and
currently runs one school in Guntur, Andhra Pradesh. SKES-IV is
part of Keshava Reddy group of educational institutions which was
started in the year 1993 with 196 students by Mr. N. Keshava
Reddy. For the first 15 years of operation the group ran it's
schools only in Kurnool, AP but since 2008 the group has been
undertaking major expansion and has spread across several
locations in Andhra Pradesh. The group presently has close to
100,000 students studying in 38 schools under the guidance of
~5000 teachers in 14 different locations in Andhra Pradesh. The
school imparts education from KG to class X as per the Andhra
Pradesh state curriculum.

Recent Results

In FY13, SKES-IV had an excess of income over expenditure of
INR0.35 crore (un-audited & provisional) on an operating income of
INR3.70 crore (un-audited and provisional).


KESHAVA REDDY: ICRA Assigns 'B+' Ratings to INR6.5cr Loans
----------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' to the INR6.50
crore fund based facilities of Keshava Reddy Educational Trust.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Fund based limits-       3.00    [ICRA]B+ Assigned
   Term Loan

   Fund based limits-       3.50    [ICRA]B+ Assigned
   Overdraft

ICRA has taken a consolidated view of Keshava Reddy group of
educational institutions(KREI) including Bharath Reddy Educational
Society (BRES-I), Keshava Educational Society (KES-II), Keshava
Reddy Educational Trust (KRET-III), Sri Kanakadurga Educational
Society (SKES-IV), Sri Keshava Reddy Educational Society (SKRES-
V), Sri Mahanandeeswara Educational Society (SMES-VI), Sri
Saraswathi Educational Society (SSES-VII), Sri Satyanarayana Swamy
Educational Society (SSSES-VIII), Sri Surya Educational Society
(SSES-IX) and Sri Venkateswara Educational Society (SVES-X). The
operations of these societies are similar with strong operational
and financial linkages in the form of fund flow.

The assigned rating is constrained by the highly competitive
school education segment in Andhra Pradesh with corresponding
challenges in attracting students, increasing per student fee and
recruitment/retention of quality faculty along with the regulatory
challenges involved in the education sector. The rating is also
constrained by the stretched cash flow situation of KREI group due
to the aggressive capex being undertaken for starting new campuses
and the highly leveraged capital structure of the group which
restricts financial flexibility. Going forward, due to the lumpy
nature of cash flows and the continuous capital expenditure being
undertaken by the group, prudent management of the cash flows will
be critical in order to avoid any liquidity mismatch and to ensure
regular debt servicing.

The assigned rating however draws comfort from the significant
experience of over two and a half decades of the promoters in
imparting school education and the strong brand image of the group
with the newly started schools gaining good acceptance. The rating
also favorably factors in the healthy growth in operating income
of KREI in the last 5 years backed by increasing enrolments &
year-on-year fee revision. The rating of KRET also positively
factors in the established presence of KRET schools of over 5
years, low outstanding debt and comfortable coverage indicators.
However ICRA negatively factors in the diversion of cash surpluses
from KRET in order to support the weaker group entities. Company
Profile Keshava Reddy Educational Trust was established in 2007
and currently runs two schools in Anantapur, Andhra Pradesh. KRET-
III is part of Keshava Reddy group of educational institutions
which was started in the year 1993 with 196 students by Mr. N.
Keshava Reddy. For the first 15 years of operation the group ran
it's schools only in Kurnool, AP but since 2008 the group has been
undertaking major expansion and has spread across several
locations in Andhra Pradesh. The group presently has close to
100,000 students studying in 38 schools under the guidance of
~5000 teachers in 14 different locations in Andhra Pradesh. The
school imparts education from KG to class X as per the Andhra
Pradesh state curriculum.

Recent Results

In FY13, KRET-III had an excess of income over expenditure of
INR0.45 crore (un-audited & provisional) on an operating income of
INR13.34 crore (un-audited and provisional).


L.S. MILLS: ICRA Upgrades Ratings on INR193.42cr Loans From 'B-'
----------------------------------------------------------------
ICRA has upgraded the long term rating outstanding on INR138.42
crore term loan facility and INR55.00 crore fund based facilities
of LS Mills Limited from '[ICRA]B-' to '[ICRA]B'.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Term Loans             138.42    Upgraded from [ICRA]B- to
                                    [ICRA]B

   Long term fund          55.00    Upgraded from [ICRA]B- to
   based facilities                 [ICRA]B

The rating revision is on account of continued improvement in the
scale and margins of the Company in Q1 2013-14, mainly on the back
of sales promotion and marketing efforts of the company towards
the home textile segment sales. ICRA also takes into account the
established track record of the promoters in the textile industry,
established client relationships and benefits from its integrated
manufacturing set up with presence across the value chain.
However, the rating remains constrained on account of the
Company's highly leveraged capital structure owing to debt availed
in the past for capital expenditure, high working capital
requirement and low accruals in the last few years. The rating
also factors in the limited pricing flexibility in the business
owing to competition and exposure of earnings to fluctuations
witnessed in raw material prices and exchange rates.

The Company had to undergo restructuring under the CDR mechanism
in 2009-10, owing to high debt levels, weak accruals and
significant derivative losses. Under the scheme, the Company
benefited from lower interest rates and extended repayment tenure
and the promoters had to bring in additional capital, which they
did during 2010-11. The Company currently remains under the
purview of CDR scheme and with high debt repayment obligations
falling due in the medium term, the Company's liquidity position
remains vulnerable and any slowdown in demand or steep movement in
raw material prices could adversely impact the Company's credit
profile.

Incorporated in 1983 by Mr. L Sundarrajan, L.S. Mills Limited is
an integrated textile player with moderate scale of operations.
The company manufactures cotton yarn, fabrics and home furnishing
products. LSML has an installed capacity of 133,672 spindles, 720
rotors, 60 looms, and 141 sewing machines at Theni (Tamil Nadu).
The company primarily manufactures fine count cotton yarn, grey
fabric and fine thread count bed linen and other home furnishing
products. The company derives majority of export revenues from the
home furnishing made-ups segment, with high concentration in US
market.

Recent Results

As per the provisional and unaudited results for Q1 2013-14, the
company had achieved sales of INR109.2 crore and profit before tax
of INR11.5 crore, compared to sales and PBT of INR91.7 crore and
INR8.4 crore during the same period in preceding fiscal. The
Company has achieved sales of INR434.1 crore and profit before tax
of INR24.0 crore in fiscal 2012-13.


MAHANANDEESWARA EDUCATIONAL: ICRA Rates INR23.30cr Loan at 'B+'
---------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' to the INR23.30
crore fund based facilities of Sri Mahanandeeswara Educational
Society.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Fund based limits-      23.30    [ICRA]B+ Assigned
   Term Loan

ICRA has taken a consolidated view of Keshava Reddy group of
educational institutions(KREI) including Bharath Reddy Educational
Society (BRES-I), Keshava Educational Society (KES-II), Keshava
Reddy Educational Trust (KRET-III), Sri Kanakadurga Educational
Society (SKES-IV), Sri Keshava Reddy Educational Society (SKRES-
V), Sri Mahanandeeswara Educational Society (SMES-VI), Sri
Saraswathi Educational Society (SSES-VII), Sri Satyanarayana Swamy
Educational Society (SSSES-VIII), Sri Surya Educational Society
(SSES-IX) and Sri Venkateswara Educational Society (SVES-X). The
operations of these societies are similar with strong operational
and financial linkages in the form of fund flow.

The assigned rating is constrained by the highly competitive
school education segment in Andhra Pradesh with corresponding
challenges in attracting students, increasing per student fee and
recruitment/retention of quality faculty along with the regulatory
challenges involved in the education sector. ICRA also negatively
factors in the largely debt funded capex of Rs 16.5 crore incurred
in FY13 in order to start a new residential school in Vikarabad,
AP that has adversely impacted the capital structure and coverage
ratios of the society. The rating is also constrained by the
stretched cash flow situation of KREI group due to the aggressive
capex being undertaken for starting new campuses and the highly
leveraged capital structure of the group which restricts financial
flexibility.

Going forward, due to the lumpy nature of cash flows and the
continuous capital expenditure being undertaken by the group,
prudent management of the cash flows will be critical in order to
avoid any liquidity mismatch and to ensure regular debt servicing.
The assigned rating however draws comfort from the significant
experience of over two and a half decades of the promoters in
imparting school education and the strong brand image of the group
with the newly started schools gaining good acceptance. The rating
also favorably factors in the healthy growth in operating income
of KREI in the last 5 years backed by increasing enrolments &
year-on-year fee revision.

Sri Mahanandeeswara Educational Society was established in 2008
and currently runs three schools in Kurnool and one school in
Hyderabad. SMES-VI is part of Keshava Reddy group of educational
institutions which was started in the year 1993 with 196 students
by Mr. N. Keshava Reddy. For the first 15 years of operation the
group ran it's schools only in Kurnool, AP but since 2008 the
group has been undertaking major expansion and has spread across
several locations in Andhra Pradesh. The group presently has close
to 100,000 students studying in 38 schools under the guidance of
~5000 teachers in 14 different locations in Andhra Pradesh. The
school imparts education from KG to class X as per the Andhra
Pradesh state curriculum.

Recent Results

In FY13, SMES-VI had an excess of income over expenditure of
INR0.29 crore (un-audited & provisional) on an operating income of
INR9.94 crore (un-audited and provisional).


POONA DISTRICT: ICRA Places 'BB+' Rating on INR81cr Loan
--------------------------------------------------------
ICRA has assigned the '[ICRA]BB+' rating to the INR81.00 crore
cash credit facility of The Poona District Police Co-operative
Credit Society Limited. The outlook on the long-term rating is
Stable.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Long term, Cash         81.00    [ICRA]BB+ (Stable) Assigned
   Credit Facility

The assigned rating favourably factors in the long track record of
operations, substantial quantum of capital raised on the back of
steady expansion of the membership base, streamlined recovery of
advances from the district's Police Department among other
recovery avenues minimising the possibility of loan defaults and
the exemption from income tax which lends support to the society's
earnings profile.

The ratings however are moderated by the constrained financial
flexibility owing to limited access to funds; limited fund
management experience of the managing committee coupled with the
absence of regulatory supervision. ICRA also takes note of the
principal objective of the society to grant hassle free loans to
its members over profit maximising.

The Poona District Police Co-operative Credit Society Limited was
established in 1920 by the employees of the Pune district's Police
Department. The society operates for the mutual benefit of its
members by granting hassle free loans. PDPC has built a membership
base of ~12,000 with a loan portfolio of -INR170 crore as on FY 13
end. The society is managed by a committee headed by the Deputy
and Assistant commissioners of the police department.


SANT FOODS: ICRA Reaffirms 'B' Rating on INR17cr Loans
------------------------------------------------------
ICRA has revoked the suspension and reaffirmed the '[ICRA]B'
rating to the INR17.00 crore fund based facilities of Sant Foods
Private Limited.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Fund Based limits       17.00    [ICRA]B (reaffirmed)

The rating is constrained by SFPL's muted growth in operating
income on account of low orders intake from Middle East Countries,
its weak financial profile as reflected by low profitability
metrics, high gearing and consequently weak debt coverage
indicators coupled with high working capital requirements. The
rating also takes into account high intensity of competition in
the industry and agro climatic risks, which can affect the
availability of paddy in adverse weather conditions.

The rating, however favorably takes into account long standing
experience of promoters in rice industry and the proximity of the
mill to major rice growing area which results in easy availability
of paddy.

Sant Foods Private Limited was established in the year 2008. The
Company is primarily engaged in the milling of rice with an
installed capacity of 6 tons per hour. The company has 2 sortex
machines with the capacity of 5 tons/hour and 2 tons/hour. The
company is professionally is managed by the directors of the
company. Out of 4 directors 3 have vast experience in the rice
industry.

Recent Results

During the financial year 2012-13, the Company reported a profit
after tax (PAT) of INR0.19 crore on an operating income of
INR40.09 crore as against PAT of INR0.09 crore on an operating
income of INR40.08 crore in FY12.


SARASWATHI EDUCATIONAL: ICRA Rates INR6.6cr Term Loan at 'B+'
-------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' to the INR6.60
crore fund based facilities of Sri Saraswathi Educational Society.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Fund based limits-       6.60    [ICRA]B+ Assigned
   Term Loan

ICRA has taken a consolidated view of Keshava Reddy group of
educational institutions(KREI) including Bharath Reddy Educational
Society (BRES-I), Keshava Educational Society (KES-II), Keshava
Reddy Educational Trust (KRET-III), Sri Kanakadurga Educational
Society (SKES-IV), Sri Keshava Reddy Educational Society (SKRES-
V), Sri Mahanandeeswara Educational Society (SMES-VI), Sri
Saraswathi Educational Society (SSES-VII), Sri Satyanarayana Swamy
Educational Society (SSSES-VIII), Sri Surya Educational Society
(SSES-IX) and Sri Venkateswara Educational Society (SVES-X). The
operations of these societies are similar with strong operational
and financial linkages in the form of fund flow.

The assigned rating is constrained by the highly competitive
school education segment in Andhra Pradesh with corresponding
challenges in attracting students, increasing per student fee and
recruitment/retention of quality faculty along with the regulatory
challenges involved in the education sector. The rating of SSES-
VII is further constrained by the short duration (four years) of
operation of its schools, drop in profitability in FY13, low net
worth and the highly leveraged capital structure, which is
expected to deteriorate further with the planned debt funded capex
of INR10 crore for starting new campus in Tirupathi, AP in FY14.

The rating is also constrained by the stretched cash flow
situation of KREI group due to the aggressive capex being
undertaken for starting new campuses and the highly leveraged
capital structure of the group which restricts financial
flexibility. Going forward, due to the lumpy nature of cash flows
and the continuous capital expenditure being undertaken by the
group, prudent management of the cash flows will be critical in
order to avoid any liquidity mismatch and to ensure regular debt
servicing. The assigned rating however draws comfort from the
significant experience of over two and a half decades of the
promoters in imparting school education and the strong brand image
of the group with the newly started schools gaining good
acceptance.

The rating also favorably factors in the healthy growth in
operating income of KREI in the last 5 years backed by increasing
enrolments & year-on-year fee revision.

Sri Saraswathi Educational Society was established in 2009 and
currently runs three schools in Kurnool, Andhra Pradesh. SSES-VII
is part of Keshava Reddy group of educational institutions which
was started in the year 1993 with 196 students by Mr. N. Keshava
Reddy. For the first 15 years of operation the group ran it's
schools only in Kurnool, AP but since 2008 the group has been
undertaking major expansion and has spread across several
locations in Andhra Pradesh. The group presently has close to
100,000 students studying in 38 schools under the guidance of
~5000 teachers in 14 different locations in Andhra Pradesh. The
school imparts education from KG to class X as per the Andhra
Pradesh state curriculum.

Recent Results

In FY13, SSES-VII had an excess of income over expenditure of
INR0.39 crore (un-audited & provisional) on an operating income of
INR6.52 crore (un-audited and provisional).


SATYANARAYANA SWAMY: ICRA Rates INR8.85cr Term Loan at 'B+'
-----------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' to the INR8.85
crore fund based facilities of Sri Satyanarayana Swamy Educational
Society.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Fund based limits-       8.85    [ICRA]B+ Assigned
   Term Loan

ICRA has taken a consolidated view of Keshava Reddy group of
educational institutions(KREI) including Bharath Reddy Educational
Society (BRES-I), Keshava Educational Society (KES-II), Keshava
Reddy Educational Trust (KRET-III), Sri Kanakadurga Educational
Society (SKES-IV), Sri Keshava Reddy Educational Society (SKRES-
V), Sri Mahanandeeswara Educational Society (SMES-VI), Sri
Saraswathi Educational Society (SSES-VII), Sri Satyanarayana Swamy
Educational Society (SSSES-VIII), Sri Surya Educational Society
(SSES-IX) and Sri Venkateswara Educational Society (SVES-X). The
operations of these societies are similar with strong operational
and financial linkages in the form of fund flow.

The assigned rating is constrained by the highly competitive
school education segment in Andhra Pradesh with corresponding
challenges in attracting students, increasing per student fee and
recruitment/retention of quality faculty along with the regulatory
challenges involved in the education sector. The rating of SSSES
is further constrained by the short duration (three years) of
operation of its school, low net worth and the highly leveraged
capital structure resulting in weak debt service coverage
indicators. The rating is also constrained by the stretched cash
flow situation of KREI group due to the aggressive capex being
undertaken for starting new campuses and the highly leveraged
capital structure of the group which restricts financial
flexibility. Going forward, due to the lumpy nature of cash flows
and the continuous capital expenditure being undertaken by the
group, prudent management of the cash flows will be critical in
order to avoid any liquidity mismatch and to ensure regular debt
servicing.

The assigned rating however draws comfort from the significant
experience of over two and a half decades of the promoters in
imparting school education and the strong brand image of the group
with the newly started schools gaining good acceptance. The rating
also favorably factors in the healthy growth in operating income
of KREI in the last 5 years backed by increasing enrolments &
year-on-year fee revision.

Sri Satyanarayana Swamy Educational Society was established in
2009 and currently runs two schools in Medak, Andhra Pradesh.
SSSES-VIII is part of Keshava Reddy group of educational
institutions which was started in the year 1993 with 196 students
by Mr. N. Keshava Reddy. For the first 15 years of operation the
group ran it's schools only in Kurnool, AP but since 2008 the
group has been undertaking major expansion and has spread across
several locations in Andhra Pradesh. The group presently has close
to 100,000 students studying in 38 schools under the guidance of
~5000 teachers in 14 different locations in Andhra Pradesh. The
school imparts education from KG to class X as per the Andhra
Pradesh state curriculum.

Recent Results

In FY13, SSSES-VIII had an excess of income over expenditure of
INR0.95 crore (un-audited & provisional) on an operating income of
INR6.58 crore (un-audited and provisional).


SURYA EDUCATIONAL: ICRA Places 'B+' Rating on INR8.85cr Term Loan
-----------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' to the INR8.85
crore fund based facilities of Sri Surya Educational Society.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Fund based limits-       8.85    [ICRA]B+ Assigned
   Term Loan

ICRA has taken a consolidated view of Keshava Reddy group of
educational institutions(KREI) including Bharath Reddy Educational
Society (BRES-I), Keshava Educational Society (KES-II), Keshava
Reddy Educational Trust (KRET-III), Sri Kanakadurga Educational
Society (SKES-IV), Sri Keshava Reddy Educational Society (SKRES-
V), Sri Mahanandeeswara Educational Society (SMES-VI), Sri
Saraswathi Educational Society (SSES-VII), Sri Satyanarayana Swamy
Educational Society (SSSES-VIII), Sri Surya Educational Society
(SSES-IX) and Sri Venkateswara Educational Society (SVES-X). The
operations of these societies are similar with strong operational
and financial linkages in the form of fund flow.

The assigned rating is constrained by the highly competitive
school education segment in Andhra Pradesh with corresponding
challenges in attracting students, increasing per student fee and
recruitment/retention of quality faculty along with the regulatory
challenges involved in the education sector. The ratings of SSES-
IX are further constrained by the short duration (three years) of
operation of its schools, low net worth and the highly leveraged
capital structure. However with the healthy profitability and in
the absence of any major capex the debt servicing for SSES-IX is
expected to be comfortable. The rating is also constrained by the
stretched cash flow situation of KREI group due to the aggressive
capex being undertaken for starting new campuses and the highly
leveraged capital structure of the group which restricts financial
flexibility.

Going forward, due to the lumpy nature of cash flows and the
continuous capital expenditure being undertaken by the group,
prudent management of the cash flows will be critical in order to
avoid any liquidity mismatch and to ensure regular debt servicing.

The assigned rating however draws comfort from the significant
experience of over two and a half decades of the promoters in
imparting school education and the strong brand image of the group
with the newly started schools gaining good acceptance. The rating
also favorably factors in the healthy growth in operating income
of KREI in the last 5 years backed by increasing enrolments &
year-on-year fee revision. Company Profile Sri Surya Educational
Society was established in 2010 and currently runs three schools
in Srikakulam and one school in Rajahmundry, Andhra Pradesh. SSES-
IX is part of Keshava Reddy group of educational institutions
which was started in the year 1993 with 196 students by Mr. N.
Keshava Reddy. For the first 15 years of operation the group ran
it's schools only in Kurnool, AP but since 2008 the group has been
undertaking major expansion and has spread across several
locations in Andhra Pradesh. The group presently has close to
100,000 students studying in 38 schools under the guidance of
~5000 teachers in 14 different locations in Andhra Pradesh. The
school imparts education from KG to class X as per the Andhra
Pradesh state curriculum.

Recent Results

In FY13, SSES-IX had an excess of income over expenditure of
INR2.08 crore (un-audited & provisional) on an operating income of
INR14.24 crore (un-audited and provisional).


SWARAJ SYNTEX: ICRA Keeps Ratings on INR11.27cr Loans at 'D'
------------------------------------------------------------
ICRA has retained the long term rating of '[ICRA]D' to INR7.93
crore (reduced from INR8.77 crore) fund based Limits of 'Swaraj
Syntex Private Limited. ICRA has also retained long term and short
term rating of [ICRA]D assigned to INR3.34 crore (enhanced from
INR2.50 crore) unallocated limits of the company.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Fund based Limits       7.93     [ICRA]D (Retained)
   Unallocated Limits      3.34     [ICRA]D (Retained)

The assigned rating continue to reflect the stretched liquidity
position as reflected in instances of working capital limits
overutilization and delays in debt servicing by the company. The
ratings also factor in the high financial risk profile of the
company characterized by thin profit margins and weak debt
coverage indicators. ICRA further takes a note on company's
exposure to highly competitive market due to presence of large
number of players and vulnerability to raw material price
fluctuations which in turn exerts pressure on profit margins of
the company.

However, the assigned rating favorably factors in long standing
experience of the promoters along with operational synergy
achieved by the company through its group company in similar line
of business. The ratings further factors in the locational
advantage of the company arising from close proximity to raw
material sourcing as well as its customers.

Swaraj Syntex Pvt. Ltd was incorporated in August 1991 with the
main objective of manufacturing and trading of finished fabrics
and also to engage in embroidery works. The company has its
registered office and manufacturing unit situated in Surat.
Gradually as the business operations turned univiable leading to
decline in sales and profit margins, owing to highly competitive
market, the company decided to cease all previous operations and
commenced dyeing of grey fabrics on job work basis since 2012.
Recent updates: 'Swaraj Syntex Private Limited' has reported a net
profit of INR0.07 crore on an operating income of INR24.13 crore
for the year ending 31st March, 2013 as per provisional figures

However, the assigned rating favorably factors in long standing
experience of the promoters along with operational synergy
achieved by the company through its group company in similar line
of business. The ratings further factors in the locational
advantage of the company arising from close proximity to raw
material sourcing as well as its customers. About the Company:
'Swaraj Syntex Pvt. Ltd '(SSPL) was incorporated in August 1991
with the main objective of manufacturing and trading of finished
fabrics and also to engage in embroidery works. The company has
its registered office and manufacturing unit situated in Surat.
Gradually as the business operations turned univiable leading to
decline in sales and profit margins, owing to highly competitive
market, the company decided to cease all previous operations and
commenced dyeing of grey fabrics on job work basis since 2012.

Swaraj Syntex Private Limited has reported a net profit of INR0.07
crore on an operating income of INR24.13 crore for the year ending
March 31, 2013 as per provisional figures


VIGNAN VIDYALAYAS: ICRA Assigns 'B' Ratings to INR17.03cr Loans
---------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B' to the INR17.03
crore fund based facilities of Vignan Vidyalayas Limited.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------            --------   -------
   Fund based limits-      1.97     [ICRA]B Assigned
   Overdraft

   Fund based limits-     15.06     [ICRA]B Assigned
   Term Loan

The assigned rating is constrained by the 10% year on year drop in
number of students availing the hostel facilities of VVL due to
the drop in enrollments in schools and junior colleges of the
parent society (LES) where higher number of students avail the
hostel facilities leading to stagnant Operating incomes over the
last six years. The growth of the parent society, to which VVL
provides hostel and mess facilities exclusively has been largely
through engineering and technical education where the hostel
enrollments are lower. The ratings are further constrained by the
sharp drop in the operating profit margin from 36.6% in FY12 to
27.0% in FY13 due to the higher raw material and building
maintenance costs and the weak debt protection indicators given
the considerable scheduled debt repayments in the next 2-3 years.

However the ratings draw comfort from the long experience of over
three decades of the promoters in the field of education and the
established presence of the group's institutions. Company Profile
Vignan Vidyalayas Limited was incorporated in 1993 as a limited
company by Dr. Lavu Rathaiah and family. The company provides
hostel and mess facilities exclusively for the students enrolled
under Lavu Education Society (LES) apart from leasing buildings to
schools and junior colleges of LES in Hyderabad and Vizag. In
FY12, VVL reported an operating income of INR11.85 crore with a
net profit of INR1.02 crore.

Recent Results (Provisional)

In FY13, the company reported a profit before tax of INR0.71 crore
(un-audited & provisional) on an operating income of INR11.38
crore (un-audited and provisional).



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


MEDIA NUSANTARA: First Half Results Support Moody's Ba3 Rating
--------------------------------------------------------------
Moody's Investors Service says that the operating results of PT
Media Nusantara Citra Tbk (MNC) for 1H 2013 were broadly in line
with expectations, and continue to support its Ba3 rating and
stable outlook.

MNC's 1H 2013 revenue grew 3% year-on-year, while its unadjusted
EBITDA rose by 15%, owing to the 9% growth in advertising revenue
and an increase in its share of prime-time audience.

"MNC has maintained its leading position in Indonesia's growing
free-to-air (FTA) TV market, with a local prime-time audience
share of about 43% compared with 35% at end-2012," says Annalisa
Di Chiara, a Moody's Vice President and Senior Analyst.

"Moreover, the company's unadjusted EBITDA margin improved to 41%
for 1H 2013 from 34% for 1H 2012, mainly because of lower
programming costs. It also continues to develop its own content,
thereby lowering expenses related to acquiring content from third
parties and in turn improving its profitability," she adds.

Furthermore, MNC's liquidity position is strong, with cash funds
and time deposits of about IDR3.2 trillion compared with IDR2.8
trillion at end-2012. Its unadjusted debt balance also decreased
to IDR610 billion from IDR727 billion over the same period.

While MNC's dividend payout is likely to be around 50%, Moody's
believes that such a ratio is manageable for the company, given
its low debt, modest capex and solid cash flow profile.

The stable rating outlook reflects Moody's expectation that MNC
will maintain its competitive position in Indonesia's FTA TV
market and keep its EBITDA margins above 30%.

Moody's also expects the company to achieve sustainable earnings
growth and cash flow generation over the short- to medium-term,
supported by its leading market position and its strong line-up of
content.

The principal methodology used in this rating was the Global
Broadcast and Advertising Related Industries Industry Methodology
published in May 2012.

PT Media Nusantara Citra Tbk, headquartered in Jakarta, is an
integrated media company with television, radio, print media,
content production and distribution, and wireless value-added
services operations. It is the market leader in Indonesia's FTA TV
industry, and owns three of the 11 FTA TV networks nationwide. PT
Global Mediacom Tbk owns approximately 64.84% of MNC.


MNC SKY VISION: First Half Results Support Moody's B2 Rating
------------------------------------------------------------
Moody's Investors Service says that the operating results of MNC
Sky Vision for 1H 2013 were broadly in line with expectations, and
continue to support its B2 rating and positive outlook.

MNC Sky Vision's revenue for 1H 2013 grew 31% year-on-year and its
unadjusted EBITDA increased by 30%, owing to strong subscriber
growth of 43% and stable average revenue per user (ARPU) of
IDR118,000 per month.

"The company's subscribers surpassed 2 million for the first time,
reflecting its solid organic growth and the underpenetrated Pay TV
market in Indonesia," says Annalisa Di Chiara, a Moody's Vice
President and Senior Analyst.

In addition, MNC Sky Vision's unadjusted EBITDA margin for 2Q 2013
improved to 41% from 38% in 1Q 2013. Moody's expects the company
to maintain EBITDA margin at above 40% over the next two years.

On the other hand, Moody's also expects the company to generate
negative free cash flow for full-year 2013 owing to its high capex
requirements to support subscriber growth.

Moreover, MNC Sky Vision does not maintain any long-term undrawn
credit facilities -- a credit negative -- and will therefore need
to rely on external financing to support this growth. It had IDR
125million of cash on its balance sheet as of June 30, 2013.

"Nonetheless, we note that PT Global Mediacom Tbk, MNC Sky
Vision's majority shareholder, has a solid liquidity position and
has the ability to provide support to the company in case of
need," Di Chiara says.

The positive rating outlook reflects Moody's expectation that MNC
Sky Vision's leading market share and product offerings will
continue to support significant organic growth over the next 12-18
months, and help keep EBITDA margins above 40%.

The principal methodology used in this rating/analysis was the
Global Pay Television - Cable and Direct-to-Home Satellite
Operators Industry Methodology published in April 2013.

Headquartered in Jakarta, MNC Sky Vision is a provider of direct-
to-home, Pay TV services. The company is 66% owned by PT Global
Mediacom Tbk, a diversified media company, and in which PT Bhakti
Investama Tbk owns a 53.4% stake. Both Global Mediacom and Bhakti
Investama are publicly listed in Indonesia.



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


SONY CORP: Core Electronics Business Remains Fragile, Fitch Says
----------------------------------------------------------------
Fitch Ratings says Sony Corporation's (Sony, BB-/Negative) return
to profit for the first quarter of the financial year ending March
2014 (FYE14) is a step towards achieving long-term profitability.
However, profitability in its core electronics business remains
weak and, in Fitch's view, remains fragile to competitive pressure
and exchange rate risk. Fitch would look for Sony to reclaim
technology leadership in key products, further capitalise on its
brand and improve profitability significantly before considering
upgrading it to investment-grade.

Sony reported an operating EBIT of JPY37bn in Q1 FYE14. However,
excluding Sony Financial Holdings, exceptional gains and
favourable exchange rate impact, Sony would have recorded an
operating loss of JPY36bn, compared with a loss of JPY42bn during
the same period last year. The weaker yen alone bolstered Sony's
electronics revenue and operating EBIT by JPY191bn and JPY19bn
respectively in Q1 FYE14. The Japanese yen depreciated by 19%-20%
yoy against the US dollar and the euro.

The weakening of the yen has been positive for Sony, particularly
for its electronics and entertainment businesses in developed
markets. However, the company also expects a negative foreign
exchange impact of JPY20bn on EBIT in FYE14, due to emerging
market currencies falling against the US dollar since June 2013,
which may wipe out the foreign exchange benefit seen in Q1 FYE14.

Profitability of the electronics business remains weak. Although
Sony turned around the electronics business in Q1 FYE14 with an
EBIT of JPY13bn, this was mainly driven by the yen depreciation
and also the reclassification of JPY10bn expenses to corporate
overheads. Sony achieved some success in its Xperia smartphones
and LCD TVs, but it still lags in several areas, such as digital
cameras, games, PCs and other audio and video products. It pared
its FYE14 electronics business operating profit target of JPY100bn
to below JPY90bn.

Fitch believes that Sony would benefit from an increased focus on
improving the core electronics business. However, the proposal to
spin off a small minority of Sony's entertainment business will
neither tighten the group's strategic focus nor provide sufficient
impetus to transform the electronics business. A partial spin-off
would generate capital to pay down debt or invest in new products,
but minority dividends would leak from the group's future cash
flows. Credit investors have benefitted from the relatively stable
cash flows generated by these operations.



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


ROSS ASSET: David Ross Case Adjourned Until February Next Year
--------------------------------------------------------------
Hamish Mcnicol at Stuff.co.nz reports that the untested Financial
Advisers Disciplinary Committee remains just that after
proceedings against alleged NZ$400 million Ponzi scheme operator
David Ross were adjourned until next year.

Mr. Ross' case was the first of four financial advisers due to be
heard by the committee in the next fortnight, but the hearing was
adjourned to February 1, Stuff.co.nz relates.

This was due to the current criminal proceedings laid against
Mr. Ross, the report says.

According to the report, Mr. Ross appeared in the Wellington
District Court last month on five charges brought by the Serious
Fraud Office and three from the Financial Markets Authority.

He was remanded without plea until August 22 following his
appearance, the report notes.

Monday's [August 5] hearing was the first of the disciplinary
committee, which was established by the commerce minister in 2010.

According to Stuff.co.nz, Mr. Ross was referred to the committee
by the FMA after complaints from the public and the authority's
own monitoring.  If he was found to have breached the financial
advisers code of conduct he could be fined up to NZ$10,000 and
face deregistration, Stuff.co.nz relays.

Mr. Ross has, however, already been suspended as an adviser by the
FMA.

Stuff.co.nz notes that the disciplinary body is headed by former
Court of Appeal judge Sir Bruce Robertson.

He adjourned Monday's hearing pending determination of the matters
before the criminal court, the report adds.

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 8, 2012, the High Court appointed PricewaterhouseCoopers
partners John Fisk and David Bridgman as Receivers and Managers
to Ross Asset Management Limited and nine other associated
entities following application by the Financial Markets
Authority.  The associated entities are:

     * Bevis Marks Corporation Limited;
     * Dagger Nominees Limited;
     * McIntosh Asset Management Limited;
     * Mercury Asset Management Limited;
     * Ross Investment Management Limited;
     * Ross Unit Trusts Management Limited;
     * United Asset Management Limited;
     * Chapman Ross Trust;
     * Woburn Ross Trust;
     * Ace Investments Limited or Ace Investment Trust Limited or
       Ace Investment Trust;
     * Vivian Investments Limited; and
     * Ross Units Trusts Limited.

The Receivers and Managers have also been appointed to Wellington
investment adviser David Robert Gilmore Ross personally.

Mr. Fisk said they have identified investments of nearly
NZ$450 million held on behalf of more than 900 investors across
1,720 individual accounts.

The High Court in mid-December ordered John Fisk and David
Bridgman be appointed liquidators of these companies:

   -- Ross Asset Management Limited (In Receivership);
   -- Bevis Marks Corporation Limited (In Receivership);
   -- McIntosh Asset Management Limited (In Receivership); and
   -- Mercury Asset Management Limited (In Receivership).



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


CHINA BANKING: Fitch Affirms Long-Term IDRs at 'BB'
---------------------------------------------------
Fitch Ratings has upgraded Rizal Commercial Banking Corp.'s (RCBC)
Long-Term Issuer Default Ratings (IDRs) to 'BB' from 'BB-' and its
Viability Rating (VR) to 'bb' from 'bb-'. The Outlook is Stable.
At the same time, the agency has revised Union Bank of the
Philippines' (UnionBank) Outlook to Positive from Stable and
affirmed its IDRs at 'BB-' and VR at 'bb-'.

Fitch has also affirmed the ratings of another two Philippine
banks -- China Banking Corporation (China Bank) and Security Bank
Corporation (Security Bank) -- including their Long-Term IDRs at
'BB' and VR at 'bb'. Their Outlooks are Stable.

Key Rating Drivers - VRs, IDRs and National Ratings

The VRs and IDRs, as well as the National Ratings of the four
Philippine banks reflect their strong core capitalisation,
improving loan loss reserves, as well as their sound funding,
liquidity and domestic franchises as medium-sized players. These
strengths are moderated, to varying degrees, by longstanding
issues faced by all four banks (also characteristic of many other
major domestic players), including large loan concentration,
foreclosed properties with modest reserves, developing corporate
governance standards, and the presence of families as controlling
shareholders.

The positive rating actions on RCBC and UnionBank are driven by
their reduced burden of legacy non-performing assets (NPAs) and
rising loss-absorption buffers in recent years. They also reflect
Fitch's expectations that their financial metrics will become
comparable with the industry. The upgrade of RCBC also takes into
account the already positive impact on its credit profile from
several initiatives, including fresh capital and bulk NPA sales in
H113. UnionBank's Positive Outlook reflects Fitch's view that
benign domestic operating conditions and ongoing recovery efforts
should over time support its ability to manage down its NPAs to a
level more comparable with higher-rated domestic peers.

The Stable Outlooks on China Bank, Security Bank and RCBC reflect
Fitch's expectation that they will largely maintain steady credit
profiles over the near- to medium-term, underpinned by a buoyant
domestic economy, manageable corporate leverage and low interest
rates.

Lending activities and fee-based income growth are backed by
domestic demand, with rising overseas remittances and business
process outsourcing countering the fragile global economy. This
backdrop, alongside strong foreign inflows, is likely to increase
credit activities (especially in property lending) and asset
prices in the Philippines. However, based on Fitch's own stress-
testing, most major Philippine banks are in a reasonably strong
position to weather deterioration in the operating environment,
due to their sound funding and loss-absorption capacities.
Moreover, recent records of the domestic regulator suggest that
prudential measures may be implemented to counter potential
macroeconomic shocks, such as from corporate leverage and sector
concentration.

Key Rating Drivers - Support Ratings (SRs) and Support Rating
Floors (SRFs)

The SRs and SRFs of the four Philippine banks are the same at '3'
and 'BB-', respectively, reflecting Fitch's view of a moderate
probability of extraordinary state support available to them, if
needed. The banks each have a 3%-5% market share of domestic
banking assets, and hence are of moderate systemic importance to
the country relative to their larger peers.

Key Rating Drivers - Debt Ratings

RCBC's senior notes have been upgraded to 'BB', in line with
Fitch's action on its IDR. This is because the notes constitute
direct, unsubordinated and senior unsecured obligations of the
bank, and rank equally with all its other unsecured and
unsubordinated obligations.

RCBC's perpetual hybrid notes have been upgraded to 'B' to
maintain the three-notch differential with the bank's 'bb' VR,
reflecting the presence of both subordination and going-concern
loss-absorption mechanisms.

The local-currency subordinated notes of Security Bank and
UnionBank are rated one notch below their VR-driven National Long-
Term Ratings, to reflect the subordination status and absence of
going-concern loss-absorption features.

Rating Sensitivities - VRs, IDRs and National Ratings

Further diversity and stability in funding, loans and revenue
bases arising from disciplined expansion and a more established
franchise, together with continued strong core capitalisation,
sustained risk-adjusted profitability and improvements in asset
quality, would be rating-positive for all four Philippine banks.
An additional upgrade consideration for UnionBank is reduced
property risk, given that foreclosed properties represent the bulk
of its NPAs and are subject to valuation fluctuations as a result
of the fair-value accounting method.

But upside rating potential may be undermined by any further
build-up of risks, such as from brisk property lending growth,
rapidly rising corporate leverage and household debt in the
Philippines.

The VRs could come under pressure should the banks' loss-
absorption capacities weaken significantly in the face of event
risks such as sizeable takeovers, excessive growth or a material
increase in risk appetite, including increasing concentration of
exposures and unseasoned portfolios. Such a scenario would also be
negative for the IDRs of China Bank, RCBC and Security Bank. It
would, however, be neutral for UnionBank's IDRs, which are at the
same level as its SRF.

Rating Sensitivities - SRs and SRFs

A change in the government's ability to provide extraordinary
support would affect the SRs and SRFs. This could stem from a
change in the sovereign ratings, although this seems highly
unlikely in the near term considering the recent upgrade of, and
Stable Outlook on, the Philippines' sovereign ratings (see related
rating action commentary dated 27 March 2013 at
www.fitchratings.com).

The SRs and SRFs will also be impacted by any change in the
government's willingness to extend timely support. One development
that could lead to this adverse outcome, for instance, is global
initiatives to reduce implicit state support available to banks,
and Fitch views this to be a long-term risk for the Philippines.

Rating Sensitivities - Debt Ratings

A change in RCBC's IDR and VR will affect the ratings on its
senior notes and perpetual hybrid notes, respectively. The ratings
on the subordinated notes of Security Bank and UnionBank are
ultimately sensitive to a change in the banks' respective VRs.

The list of rating actions is as follows:

China Bank
-- Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB';
   Outlook Stable

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

-- Viability Rating affirmed at 'bb'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

Security Bank
-- Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB';
   Outlook Stable

-- Short-Term Foreign-Currency IDR affirmed at 'B'

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

-- Viability Rating affirmed at 'bb'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

-- Ratings on subordinated notes affirmed at 'A+(phl)'

RCBC
-- Long-Term Foreign- and Local-Currency IDRs upgraded to 'BB'
   from 'BB-'; Outlook Stable

-- Viability Rating upgraded to 'bb' from 'bb-'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

-- Ratings on senior notes upgraded to 'BB' from 'BB-'

-- Ratings on perpetual callable subordinated hybrid notes
   upgraded to 'B' from 'B-'

UnionBank
-- Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB-';
   Outlook revised to Positive from Stable

-- National Long-Term Rating affirmed at 'A+(phl)'; Outlook
   revised to Positive from Stable

-- Viability Rating affirmed at 'bb-'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

-- Ratings on subordinated notes affirmed at 'A (phl)'


RIZAL COMMERCIAL: Fitch Upgrades Issuer Default Ratings to 'BB'
---------------------------------------------------------------
Fitch Ratings has upgraded Rizal Commercial Banking Corp.'s (RCBC)
Long-Term Issuer Default Ratings (IDRs) to 'BB' from 'BB-' and its
Viability Rating (VR) to 'bb' from 'bb-'. The Outlook is Stable.
At the same time, the agency has revised Union Bank of the
Philippines' (UnionBank) Outlook to Positive from Stable and
affirmed its IDRs at 'BB-' and VR at 'bb-'.

Fitch has also affirmed the ratings of another two Philippine
banks -- China Banking Corporation (China Bank) and Security Bank
Corporation (Security Bank) -- including their Long-Term IDRs at
'BB' and VR at 'bb'. Their Outlooks are Stable.

Key Rating Drivers - VRs, IDRs and National Ratings

The VRs and IDRs, as well as the National Ratings of the four
Philippine banks reflect their strong core capitalisation,
improving loan loss reserves, as well as their sound funding,
liquidity and domestic franchises as medium-sized players. These
strengths are moderated, to varying degrees, by longstanding
issues faced by all four banks (also characteristic of many other
major domestic players), including large loan concentration,
foreclosed properties with modest reserves, developing corporate
governance standards, and the presence of families as controlling
shareholders.

The positive rating actions on RCBC and UnionBank are driven by
their reduced burden of legacy non-performing assets (NPAs) and
rising loss-absorption buffers in recent years. They also reflect
Fitch's expectations that their financial metrics will become
comparable with the industry. The upgrade of RCBC also takes into
account the already positive impact on its credit profile from
several initiatives, including fresh capital and bulk NPA sales in
H113. UnionBank's Positive Outlook reflects Fitch's view that
benign domestic operating conditions and ongoing recovery efforts
should over time support its ability to manage down its NPAs to a
level more comparable with higher-rated domestic peers.

The Stable Outlooks on China Bank, Security Bank and RCBC reflect
Fitch's expectation that they will largely maintain steady credit
profiles over the near- to medium-term, underpinned by a buoyant
domestic economy, manageable corporate leverage and low interest
rates.

Lending activities and fee-based income growth are backed by
domestic demand, with rising overseas remittances and business
process outsourcing countering the fragile global economy. This
backdrop, alongside strong foreign inflows, is likely to increase
credit activities (especially in property lending) and asset
prices in the Philippines. However, based on Fitch's own stress-
testing, most major Philippine banks are in a reasonably strong
position to weather deterioration in the operating environment,
due to their sound funding and loss-absorption capacities.
Moreover, recent records of the domestic regulator suggest that
prudential measures may be implemented to counter potential
macroeconomic shocks, such as from corporate leverage and sector
concentration.

Key Rating Drivers - Support Ratings (SRs) and Support Rating
Floors (SRFs)

The SRs and SRFs of the four Philippine banks are the same at '3'
and 'BB-', respectively, reflecting Fitch's view of a moderate
probability of extraordinary state support available to them, if
needed. The banks each have a 3%-5% market share of domestic
banking assets, and hence are of moderate systemic importance to
the country relative to their larger peers.

Key Rating Drivers - Debt Ratings

RCBC's senior notes have been upgraded to 'BB', in line with
Fitch's action on its IDR. This is because the notes constitute
direct, unsubordinated and senior unsecured obligations of the
bank, and rank equally with all its other unsecured and
unsubordinated obligations.

RCBC's perpetual hybrid notes have been upgraded to 'B' to
maintain the three-notch differential with the bank's 'bb' VR,
reflecting the presence of both subordination and going-concern
loss-absorption mechanisms.

The local-currency subordinated notes of Security Bank and
UnionBank are rated one notch below their VR-driven National Long-
Term Ratings, to reflect the subordination status and absence of
going-concern loss-absorption features.

Rating Sensitivities - VRs, IDRs and National Ratings

Further diversity and stability in funding, loans and revenue
bases arising from disciplined expansion and a more established
franchise, together with continued strong core capitalisation,
sustained risk-adjusted profitability and improvements in asset
quality, would be rating-positive for all four Philippine banks.
An additional upgrade consideration for UnionBank is reduced
property risk, given that foreclosed properties represent the bulk
of its NPAs and are subject to valuation fluctuations as a result
of the fair-value accounting method.

But upside rating potential may be undermined by any further
build-up of risks, such as from brisk property lending growth,
rapidly rising corporate leverage and household debt in the
Philippines.

The VRs could come under pressure should the banks' loss-
absorption capacities weaken significantly in the face of event
risks such as sizeable takeovers, excessive growth or a material
increase in risk appetite, including increasing concentration of
exposures and unseasoned portfolios. Such a scenario would also be
negative for the IDRs of China Bank, RCBC and Security Bank. It
would, however, be neutral for UnionBank's IDRs, which are at the
same level as its SRF.

Rating Sensitivities - SRs and SRFs

A change in the government's ability to provide extraordinary
support would affect the SRs and SRFs. This could stem from a
change in the sovereign ratings, although this seems highly
unlikely in the near term considering the recent upgrade of, and
Stable Outlook on, the Philippines' sovereign ratings (see related
rating action commentary dated 27 March 2013 at
www.fitchratings.com).

The SRs and SRFs will also be impacted by any change in the
government's willingness to extend timely support. One development
that could lead to this adverse outcome, for instance, is global
initiatives to reduce implicit state support available to banks,
and Fitch views this to be a long-term risk for the Philippines.

Rating Sensitivities - Debt Ratings

A change in RCBC's IDR and VR will affect the ratings on its
senior notes and perpetual hybrid notes, respectively. The ratings
on the subordinated notes of Security Bank and UnionBank are
ultimately sensitive to a change in the banks' respective VRs.

The list of rating actions is as follows:

China Bank
-- Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB';
   Outlook Stable

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

-- Viability Rating affirmed at 'bb'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

Security Bank
-- Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB';
   Outlook Stable

-- Short-Term Foreign-Currency IDR affirmed at 'B'

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

-- Viability Rating affirmed at 'bb'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

-- Ratings on subordinated notes affirmed at 'A+(phl)'

RCBC
-- Long-Term Foreign- and Local-Currency IDRs upgraded to 'BB'
   from 'BB-'; Outlook Stable

-- Viability Rating upgraded to 'bb' from 'bb-'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

-- Ratings on senior notes upgraded to 'BB' from 'BB-'

-- Ratings on perpetual callable subordinated hybrid notes
   upgraded to 'B' from 'B-'

UnionBank
-- Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB-';
   Outlook revised to Positive from Stable

-- National Long-Term Rating affirmed at 'A+(phl)'; Outlook
   revised to Positive from Stable

-- Viability Rating affirmed at 'bb-'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

-- Ratings on subordinated notes affirmed at 'A (phl)'


SECURITY BANK: Fitch Affirms Long-Term IDRs at 'BB'
---------------------------------------------------
Fitch Ratings has upgraded Rizal Commercial Banking Corp.'s (RCBC)
Long-Term Issuer Default Ratings (IDRs) to 'BB' from 'BB-' and its
Viability Rating (VR) to 'bb' from 'bb-'. The Outlook is Stable.
At the same time, the agency has revised Union Bank of the
Philippines' (UnionBank) Outlook to Positive from Stable and
affirmed its IDRs at 'BB-' and VR at 'bb-'.

Fitch has also affirmed the ratings of another two Philippine
banks -- China Banking Corporation (China Bank) and Security Bank
Corporation (Security Bank) -- including their Long-Term IDRs at
'BB' and VR at 'bb'. Their Outlooks are Stable.

Key Rating Drivers - VRs, IDRs and National Ratings

The VRs and IDRs, as well as the National Ratings of the four
Philippine banks reflect their strong core capitalisation,
improving loan loss reserves, as well as their sound funding,
liquidity and domestic franchises as medium-sized players. These
strengths are moderated, to varying degrees, by longstanding
issues faced by all four banks (also characteristic of many other
major domestic players), including large loan concentration,
foreclosed properties with modest reserves, developing corporate
governance standards, and the presence of families as controlling
shareholders.

The positive rating actions on RCBC and UnionBank are driven by
their reduced burden of legacy non-performing assets (NPAs) and
rising loss-absorption buffers in recent years. They also reflect
Fitch's expectations that their financial metrics will become
comparable with the industry. The upgrade of RCBC also takes into
account the already positive impact on its credit profile from
several initiatives, including fresh capital and bulk NPA sales in
H113. UnionBank's Positive Outlook reflects Fitch's view that
benign domestic operating conditions and ongoing recovery efforts
should over time support its ability to manage down its NPAs to a
level more comparable with higher-rated domestic peers.

The Stable Outlooks on China Bank, Security Bank and RCBC reflect
Fitch's expectation that they will largely maintain steady credit
profiles over the near- to medium-term, underpinned by a buoyant
domestic economy, manageable corporate leverage and low interest
rates.

Lending activities and fee-based income growth are backed by
domestic demand, with rising overseas remittances and business
process outsourcing countering the fragile global economy. This
backdrop, alongside strong foreign inflows, is likely to increase
credit activities (especially in property lending) and asset
prices in the Philippines. However, based on Fitch's own stress-
testing, most major Philippine banks are in a reasonably strong
position to weather deterioration in the operating environment,
due to their sound funding and loss-absorption capacities.
Moreover, recent records of the domestic regulator suggest that
prudential measures may be implemented to counter potential
macroeconomic shocks, such as from corporate leverage and sector
concentration.

Key Rating Drivers - Support Ratings (SRs) and Support Rating
Floors (SRFs)

The SRs and SRFs of the four Philippine banks are the same at '3'
and 'BB-', respectively, reflecting Fitch's view of a moderate
probability of extraordinary state support available to them, if
needed. The banks each have a 3%-5% market share of domestic
banking assets, and hence are of moderate systemic importance to
the country relative to their larger peers.

Key Rating Drivers - Debt Ratings

RCBC's senior notes have been upgraded to 'BB', in line with
Fitch's action on its IDR. This is because the notes constitute
direct, unsubordinated and senior unsecured obligations of the
bank, and rank equally with all its other unsecured and
unsubordinated obligations.

RCBC's perpetual hybrid notes have been upgraded to 'B' to
maintain the three-notch differential with the bank's 'bb' VR,
reflecting the presence of both subordination and going-concern
loss-absorption mechanisms.

The local-currency subordinated notes of Security Bank and
UnionBank are rated one notch below their VR-driven National Long-
Term Ratings, to reflect the subordination status and absence of
going-concern loss-absorption features.

Rating Sensitivities - VRs, IDRs and National Ratings

Further diversity and stability in funding, loans and revenue
bases arising from disciplined expansion and a more established
franchise, together with continued strong core capitalisation,
sustained risk-adjusted profitability and improvements in asset
quality, would be rating-positive for all four Philippine banks.
An additional upgrade consideration for UnionBank is reduced
property risk, given that foreclosed properties represent the bulk
of its NPAs and are subject to valuation fluctuations as a result
of the fair-value accounting method.

But upside rating potential may be undermined by any further
build-up of risks, such as from brisk property lending growth,
rapidly rising corporate leverage and household debt in the
Philippines.

The VRs could come under pressure should the banks' loss-
absorption capacities weaken significantly in the face of event
risks such as sizeable takeovers, excessive growth or a material
increase in risk appetite, including increasing concentration of
exposures and unseasoned portfolios. Such a scenario would also be
negative for the IDRs of China Bank, RCBC and Security Bank. It
would, however, be neutral for UnionBank's IDRs, which are at the
same level as its SRF.

Rating Sensitivities - SRs and SRFs

A change in the government's ability to provide extraordinary
support would affect the SRs and SRFs. This could stem from a
change in the sovereign ratings, although this seems highly
unlikely in the near term considering the recent upgrade of, and
Stable Outlook on, the Philippines' sovereign ratings (see related
rating action commentary dated 27 March 2013 at
www.fitchratings.com).

The SRs and SRFs will also be impacted by any change in the
government's willingness to extend timely support. One development
that could lead to this adverse outcome, for instance, is global
initiatives to reduce implicit state support available to banks,
and Fitch views this to be a long-term risk for the Philippines.

Rating Sensitivities - Debt Ratings

A change in RCBC's IDR and VR will affect the ratings on its
senior notes and perpetual hybrid notes, respectively. The ratings
on the subordinated notes of Security Bank and UnionBank are
ultimately sensitive to a change in the banks' respective VRs.

The list of rating actions is as follows:

China Bank
-- Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB';
   Outlook Stable

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

-- Viability Rating affirmed at 'bb'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

Security Bank
-- Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB';
   Outlook Stable

-- Short-Term Foreign-Currency IDR affirmed at 'B'

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

-- Viability Rating affirmed at 'bb'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

-- Ratings on subordinated notes affirmed at 'A+(phl)'

RCBC
-- Long-Term Foreign- and Local-Currency IDRs upgraded to 'BB'
   from 'BB-'; Outlook Stable

-- Viability Rating upgraded to 'bb' from 'bb-'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

-- Ratings on senior notes upgraded to 'BB' from 'BB-'

-- Ratings on perpetual callable subordinated hybrid notes
   upgraded to 'B' from 'B-'

UnionBank
-- Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB-';
   Outlook revised to Positive from Stable

-- National Long-Term Rating affirmed at 'A+(phl)'; Outlook
   revised to Positive from Stable

-- Viability Rating affirmed at 'bb-'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

-- Ratings on subordinated notes affirmed at 'A (phl)'


UNION BANK: Fitch Affirms Issuer Default Ratings at 'BB-'
---------------------------------------------------------
Fitch Ratings has upgraded Rizal Commercial Banking Corp.'s (RCBC)
Long-Term Issuer Default Ratings (IDRs) to 'BB' from 'BB-' and its
Viability Rating (VR) to 'bb' from 'bb-'. The Outlook is Stable.
At the same time, the agency has revised Union Bank of the
Philippines' (UnionBank) Outlook to Positive from Stable and
affirmed its IDRs at 'BB-' and VR at 'bb-'.

Fitch has also affirmed the ratings of another two Philippine
banks -- China Banking Corporation (China Bank) and Security Bank
Corporation (Security Bank) -- including their Long-Term IDRs at
'BB' and VR at 'bb'. Their Outlooks are Stable.

Key Rating Drivers - VRs, IDRs and National Ratings

The VRs and IDRs, as well as the National Ratings of the four
Philippine banks reflect their strong core capitalisation,
improving loan loss reserves, as well as their sound funding,
liquidity and domestic franchises as medium-sized players. These
strengths are moderated, to varying degrees, by longstanding
issues faced by all four banks (also characteristic of many other
major domestic players), including large loan concentration,
foreclosed properties with modest reserves, developing corporate
governance standards, and the presence of families as controlling
shareholders.

The positive rating actions on RCBC and UnionBank are driven by
their reduced burden of legacy non-performing assets (NPAs) and
rising loss-absorption buffers in recent years. They also reflect
Fitch's expectations that their financial metrics will become
comparable with the industry. The upgrade of RCBC also takes into
account the already positive impact on its credit profile from
several initiatives, including fresh capital and bulk NPA sales in
H113. UnionBank's Positive Outlook reflects Fitch's view that
benign domestic operating conditions and ongoing recovery efforts
should over time support its ability to manage down its NPAs to a
level more comparable with higher-rated domestic peers.

The Stable Outlooks on China Bank, Security Bank and RCBC reflect
Fitch's expectation that they will largely maintain steady credit
profiles over the near- to medium-term, underpinned by a buoyant
domestic economy, manageable corporate leverage and low interest
rates.

Lending activities and fee-based income growth are backed by
domestic demand, with rising overseas remittances and business
process outsourcing countering the fragile global economy. This
backdrop, alongside strong foreign inflows, is likely to increase
credit activities (especially in property lending) and asset
prices in the Philippines. However, based on Fitch's own stress-
testing, most major Philippine banks are in a reasonably strong
position to weather deterioration in the operating environment,
due to their sound funding and loss-absorption capacities.
Moreover, recent records of the domestic regulator suggest that
prudential measures may be implemented to counter potential
macroeconomic shocks, such as from corporate leverage and sector
concentration.

Key Rating Drivers - Support Ratings (SRs) and Support Rating
Floors (SRFs)

The SRs and SRFs of the four Philippine banks are the same at '3'
and 'BB-', respectively, reflecting Fitch's view of a moderate
probability of extraordinary state support available to them, if
needed. The banks each have a 3%-5% market share of domestic
banking assets, and hence are of moderate systemic importance to
the country relative to their larger peers.

Key Rating Drivers - Debt Ratings

RCBC's senior notes have been upgraded to 'BB', in line with
Fitch's action on its IDR. This is because the notes constitute
direct, unsubordinated and senior unsecured obligations of the
bank, and rank equally with all its other unsecured and
unsubordinated obligations.

RCBC's perpetual hybrid notes have been upgraded to 'B' to
maintain the three-notch differential with the bank's 'bb' VR,
reflecting the presence of both subordination and going-concern
loss-absorption mechanisms.

The local-currency subordinated notes of Security Bank and
UnionBank are rated one notch below their VR-driven National Long-
Term Ratings, to reflect the subordination status and absence of
going-concern loss-absorption features.

Rating Sensitivities - VRs, IDRs and National Ratings

Further diversity and stability in funding, loans and revenue
bases arising from disciplined expansion and a more established
franchise, together with continued strong core capitalisation,
sustained risk-adjusted profitability and improvements in asset
quality, would be rating-positive for all four Philippine banks.
An additional upgrade consideration for UnionBank is reduced
property risk, given that foreclosed properties represent the bulk
of its NPAs and are subject to valuation fluctuations as a result
of the fair-value accounting method.

But upside rating potential may be undermined by any further
build-up of risks, such as from brisk property lending growth,
rapidly rising corporate leverage and household debt in the
Philippines.

The VRs could come under pressure should the banks' loss-
absorption capacities weaken significantly in the face of event
risks such as sizeable takeovers, excessive growth or a material
increase in risk appetite, including increasing concentration of
exposures and unseasoned portfolios. Such a scenario would also be
negative for the IDRs of China Bank, RCBC and Security Bank. It
would, however, be neutral for UnionBank's IDRs, which are at the
same level as its SRF.

Rating Sensitivities - SRs and SRFs

A change in the government's ability to provide extraordinary
support would affect the SRs and SRFs. This could stem from a
change in the sovereign ratings, although this seems highly
unlikely in the near term considering the recent upgrade of, and
Stable Outlook on, the Philippines' sovereign ratings (see related
rating action commentary dated 27 March 2013 at
www.fitchratings.com).

The SRs and SRFs will also be impacted by any change in the
government's willingness to extend timely support. One development
that could lead to this adverse outcome, for instance, is global
initiatives to reduce implicit state support available to banks,
and Fitch views this to be a long-term risk for the Philippines.

Rating Sensitivities - Debt Ratings

A change in RCBC's IDR and VR will affect the ratings on its
senior notes and perpetual hybrid notes, respectively. The ratings
on the subordinated notes of Security Bank and UnionBank are
ultimately sensitive to a change in the banks' respective VRs.

The list of rating actions is as follows:

China Bank
-- Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB';
   Outlook Stable

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

-- Viability Rating affirmed at 'bb'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

Security Bank
-- Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB';
   Outlook Stable

-- Short-Term Foreign-Currency IDR affirmed at 'B'

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

-- Viability Rating affirmed at 'bb'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

-- Ratings on subordinated notes affirmed at 'A+(phl)'

RCBC
-- Long-Term Foreign- and Local-Currency IDRs upgraded to 'BB'
   from 'BB-'; Outlook Stable

-- Viability Rating upgraded to 'bb' from 'bb-'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

-- Ratings on senior notes upgraded to 'BB' from 'BB-'

-- Ratings on perpetual callable subordinated hybrid notes
   upgraded to 'B' from 'B-'

UnionBank
-- Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB-';
   Outlook revised to Positive from Stable

-- National Long-Term Rating affirmed at 'A+(phl)'; Outlook
   revised to Positive from Stable

-- Viability Rating affirmed at 'bb-'

-- Support Rating affirmed at '3'

-- Support Rating Floor affirmed at 'BB-'

-- Ratings on subordinated notes affirmed at 'A (phl)'



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


* BOND PRICING: For the Week July 29 to August 2, 2013
------------------------------------------------------

Issuer               Coupon   Maturity   Currency  Price
------               ------   --------   --------  -----


  AUSTRALIA
  ---------

GRIFFIN COAL MINING   9.50     12/1/2016    USD    39.00
GTL INFRASTRUCTURE    2.53     11/9/2017    USD    43.33
MIDWEST VANADIUM     11.50     2/15/2018    USD    63.50
MIDWEST VANADIUM     11.50     2/15/2018    USD    71.21
MIRABELA NICKEL       8.75     4/15/2018    USD    71.50
NEW S WALES TREA      0.50     9/14/2022    AUD    69.50
NEW S WALES TREA      0.50     10/7/2022    AUD    69.28
NEW S WALES TREA      0.50    10/28/2022    AUD    69.07
NEW S WALES TREA      0.50    11/18/2022    AUD    67.82
NEW S WALES TREA      0.50    12/16/2022    AUD    68.00
NEW S WALES TREA      0.50      2/2/2023    AUD    68.37
NEW S WALES TREA      0.50     3/30/2023    AUD    68.13
TREAS CORP VICT       0.50     8/25/2022    AUD    70.52
TREAS CORP VICT       0.50      3/3/2023    AUD    69.23
TREAS CORP VICT       0.50    11/12/2030    AUD    47.89


CHINA
-----

CHINA GOVT BOND       1.64    12/15/2033    CNY    68.04


INDIA
-----

3I INFOTECH LTD       5.00    4/26/2017     USD    30.61
COROMANDEL INTL       9.00     7/23/2016    INR    15.29
DR REDDY'S LABOR      9.25     3/24/2014    INR     4.98
JCT LTD               2.50      4/8/2011    USD    20.00
MASCON GLOBAL LT      2.00    12/28/2012    USD    10.00
PRAKASH IND LTD       5.63    10/17/2014    USD    64.69
PRAKASH IND LTD       5.25     4/30/2015    USD    67.33
PUNJAB INFRA DB       0.40    10/15/2024    INR    31.96
PUNJAB INFRA DB       0.40    10/15/2025    INR    28.94
PUNJAB INFRA DB       0.40    10/15/2026    INR    26.20
PUNJAB INFRA DB       0.40    10/15/2027    INR    25.53
PUNJAB INFRA DB       0.40    10/15/2028    INR    26.20
PUNJAB INFRA DB       0.40    10/15/2029    INR    19.38
PUNJAB INFRA DB       0.40    10/15/2030    INR    15.12
PUNJAB INFRA DB       0.40    10/15/2032    INR    16.62
PUNJAB INFRA DB       0.40    10/15/2033    INR    13.91
PYRAMID SAIMIRA       1.75      7/4/2012    USD     1.00
REI AGRO              5.50    11/13/2014    USD    70.31
REI AGRO              5.50    11/13/2014    USD    70.31
SHIV-VANI OIL         5.00     8/17/2015    USD    29.61
SUZLON ENERGY LT      7.50    10/11/2012    USD    65.12
SUZLON ENERGY LT      5.00     4/13/2016    USD    50.33


INDONESIA
----------

BUMI CAPITAL         12.00   11/10/2016    USD      66.00
BUMI INVESTMENT      10.75   10/6/2017     USD      65.50


JAPAN
-----

ELPIDA MEMORY         2.03     3/22/2012    JPY    14.62
ELPIDA MEMORY         2.10    11/29/2012    JPY    15.12
ELPIDA MEMORY         2.29     12/7/2012    JPY    14.62
ELPIDA MEMORY         0.50    10/26/2015    JPY    12.62
TOKYO ELECTRIC        2.36     5/28/2040    JPY    71.12
TOKYO ELECTRIC        1.95     7/29/2030    JPY    74.87


PHILIPPINES
-----------

BAYAN TELECOMMUN     13.50     7/15/2006    USD    22.75
BAYAN TELECOMMUN     13.50     7/15/2006    USD    22.75


SINGAPORE
---------

BAKRIE TELECOM       11.50      5/7/2015    USD    39.00
BAKRIE TELECOM       11.50      5/7/2015    USD    36.16
BLD INVESTMENT        8.63     3/23/2015    USD    63.87
DAVOMAS INTL FIN     11.00     12/8/2014    USD    24.62
DAVOMAS INTL FIN     11.00     12/8/2014    USD    24.62
ENERCOAL RESOURCES    9.25     08/05/2014   USD    70.66
INDO INFRASTRUCT      2.00     7/30/2049    USD     1.87


SOUTH KOREA
-----------

EXP-IMP BK KOREA      0.50     9/28/2016    BRL    64.45
EXP-IMP BK KOREA      0.50    10/27/2016    BRL    72.04
EXP-IMP BK KOREA      0.50    11/28/2016    BRL    69.16
EXP-IMP BK KOREA      0.50    12/22/2016    BRL    68.07
EXP-IMP BK KOREA      0.50    10/23/2017    TRY    69.15
EXP-IMP BK KOREA      0.50    11/21/2017    BRL    62.85
EXP-IMP BK KOREA      0.50    12/22/2017    TRY    64.37
EXP-IMP BK KOREA      0.50    1/25/2017     TRY    73.97
OSUNG LST CO LTD      4.00    7/7/2013      USD    27.47


SRI LANKA
---------

SRI LANKA GOVT        6.20      8/1/2020    LKR    74.69
SRI LANKA GOVT        7.00     10/1/2023    LKR    67.80
SRI LANKA GOVT        5.35      3/1/2026    LKR    56.67
SRI LANKA GOVT        8.00      1/1/2032    LKR    71.27


THAILAND
--------

G STEEL               3.00     10/4/2015    USD    11.25
MDX PUBLIC CO         4.75     9/17/2003    USD    16.00



                             *********

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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