/raid1/www/Hosts/bankrupt/TCRAP_Public/130826.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, August 26, 2013, Vol. 16, No. 168
Headlines
A U S T R A L I A
BILLABONG INT'L: Centerbridge, Oaktree Make New Refinancing Offer
BOX STALLION: In Receivership, Assets for Sale
FAIRFAX MEDIA: Annual Net Loss Narrows to AUD16.4 Million
FORTESCUE METALS: Moody's Changes Outlook on Ba3 CFR to Positive
GIPPSLAND SECURED: Corporate Regulator Seeks to Wind Up Firm
METAL STORM: Administrators Seek Buyers For Business
PARK AVENUE: Forced Into Receivership
RETAIL ADVENTURES: Administrators Recommend Chain's Liquidation
TAREE OLD BAR: SLSNSW Puts Firm Into Administration
C A M B O D I A
* Moody's Says B2 Rating Reflects Cambodia's Economic Prospects
C H I N A
MAOYE INTERNATIONAL: First Half 2013 Results No Impact on Ratings
WINSWAY COKING: Moody's Downgrades Corporate Family Rating to Ca
I N D I A
ANAND ENGINEERING: ICRA Reaffirms 'D' Ratings on INR60.59cr Loans
AURAYA HEALTHCARE: ICRA Rates INR7.5cr LT Bank Loans at 'B+'
BARDIA JEWELLERS: ICRA Rates INR7.50cr Cash Credit at 'B+'
DECOR PAPER: ICRA Downgrades Ratings on INR24cr Loans to 'D'
MAHESH KUMAR: ICRA Downgrades Ratings on INR11.03cr Loans to 'D'
NEW HARYANA: ICRA Assigns 'B' Rating to INR9.5cr Fund Based Loans
RAINBOW PACKAGING: ICRA Reaffirms 'BB' Rating on INR1cr Loan
SATPRIYA MEHAMIA: ICRA Reaffirms 'B' Rating on INR16cr Loans
SHAMAL & SHAMAL: ICRA Assigns 'BB' Ratings to INR6.40cr Loans
SONALI ENERGEES: ICRA Reaffirms 'B+' Rating on INR16.10cr Loans
TARA CHAND: ICRA Reaffirms 'B+' Rating on INR40cr Loans
I N D O N E S I A
BANK INTERNASIONAL: Fitch Affirms Viability Rating at 'bb'
PERUSAHAAN PENERBIT: S&P Places 'BB+' Rating on Sukuk Trust Cert.
N E W Z E A L A N D
ROSS ASSET: David Ross Remanded to Appear in Court
S I N G A P O R E
GLOBAL A&T: Moody's Affirms B1 and B2 Ratings; Outlook Negative
S R I L A N K A
ASIAN ALLIANCE: Fitch Publishes 'B' IFS Rating
X X X X X X X X
* Policy Mgmt. Key to Economic Stability in India and Indonesia
* Reinsurers' Underwriting Gains Offset By Unrealised Losses
- - - - -
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A U S T R A L I A
=================
BILLABONG INT'L: Centerbridge, Oaktree Make New Refinancing Offer
-----------------------------------------------------------------
Gillian Tan, writing for The Wall Street Journal, reports that a
U.S. consortium comprising Centerbridge Partners LP and Oaktree
Capital Management have made a new unsolicited refinancing offer
for Australian surfwear retailer Billabong International Ltd. that
could deliver them nearly 40% of the company.
The Journal relates that the two distressed debt investors, who
are owed money by Billabong, said in a statement Friday
[Aug. 23] they are offering superior terms to a deal the retailer
has already agreed to, from a separate group comprising
Californian private equity firm Altamont Capital Partners and
Blackstone Group's credit arm, GSO Capital Partners.
Those terms include a lower interest rate on the retailer's debt,
which could lead to savings of up to AUD143 million (US$129
million) over five years, the Journal notes.
According to the report, the Centerbridge and Oaktree consortium
is seeking to partake in an equity raising at AUD0.35 a share,
which would give them a stake of 39.7%, assuming existing
shareholders partake in a AUD32.5 million rights issue.
"[Our] consortium believes the company has a well-recognised
portfolio of brands with great future potential," the investment
firms said, the Journal reports.
The Journal say Centerbridge and Oaktree have also advised
Billabong's board they have engaged with alternate CEO candidates
in the event Scott Olivet, recently installed by the Altamont
consortium, is unavailable.
The Sydney Morning Herald reported in April that the company's
path to redemption got tougher after the surfwear group downgraded
earnings guidance and said a AUD537 million loss for the half-year
put it in breach of debt covenants. The breach led its banks to
seek a secured charge over most of the business, SMH related.
Billabong, according to DealBook, has fallen on difficult times
because of changing consumer tastes and the financial crisis. It
has closed stores and sold assets as part of an effort to
restructure the company.
Based in Australia, Billabong International Limited (ASX:BBG) --
http://www.billabongbiz.com/-- is engaged in the wholesaling and
retailing of surf, skate, snow and sports apparel, accessories and
hardware, and the licensing of its trademarks to specified regions
of the world.
BOX STALLION: In Receivership, Assets for Sale
----------------------------------------------
Stephen Taylor at Property Observer reports that Box Stallion
winery and its Red Barn cellar door and restaurant is being sold
by the receivers.
The 40-hectare holding on two titles, hidden behind the massive
cypress hedges lining Tubbarubba Road, has been a stylish winery,
restaurant and cellar door since the mid-2000s.
Michael Parker, of Paton Real Estate Balnarring, said the land
component of the property could fetch around AU$3.5 million when
expressions of interest close on September 16, according to
Property Observer.
The report relates that the purchaser would then have the option
of buying the established winery fixtures and fittings, and
extensive store of wine, at a price yet to be decided. The
receivers would prefer to sell the lot together, the report notes.
Although "not privy to the ins and outs" of the winery's demise,
Mr. Parker said too much debt may have been the problem, the
report notes.
Pat Rice and Hawkins are agents in conjunction, the report adds.
FAIRFAX MEDIA: Annual Net Loss Narrows to AUD16.4 Million
---------------------------------------------------------
Catherine Harris at stuff.co.nz reports that Fairfax Media Limited
has posted an annual net loss of AUD16.4 million (NZ$18.75
million) after tax, a major improvement on its
AUD2.7 billion loss in the prior year.
Fairfax, which owns the Stuff news website, The Sunday Star Times,
Dominion Post, and other newspaper titles in New Zealand, also
reported an 8 per cent drop in revenue to AUD2.03 billion,
according to stuff.co.nz.
Revenues in New Zealand fell 4.7 per cent for the year, and were
affected in the second half by an old insurance claim and weaker
advertising in some categories, the report relates.
According to the report, chief executive and managing director
Greg Hywood said the result included a non-cash impairment charge
of AUD444.6 million.
The company continued to respond to tough conditions in the media
industry, pulling hard on the levers of its traditional publishing
business to reduce costs, the report adds.
About Fairfax Media
Headquartered in Sydney, Australia, Fairfax Media Limited
(ASX:FXJ) -- http://www.fxj.com.au/-- is engaged in publishing
of news, information and entertainment; advertising sales in
newspaper, magazine and online formats; radio broadcasting, and
film and television production and distribution. In Australia,
the company's mastheads include The Sydney Morning Herald, The
Age, BRW, The Sun-Herald and The Land. Its New Zealand mastheads
include The Dominion Post, The Press and Cuisine. Fairfax Media
online businesses include Fairfax Digital in Australia (including
the news sites, smh.com.au and theage.com.au, and classified and
transaction Websites), and Trade Me and stuff.co.nz in
New Zealand. On November 9, 2007, it acquired the former
Southern Cross Broadcasting's radio business, (including
metropolitan stations 2UE in Sydney, 3AW and Magic 1278 in
Melbourne, 4BC and 4BH in Brisbane, and 6PR and 96FM in Perth),
the Southern Star television production and distribution
business, Satellite Music Australia and associated businesses
from Macquarie Media Group.
FORTESCUE METALS: Moody's Changes Outlook on Ba3 CFR to Positive
----------------------------------------------------------------
Moody's Investors Service has affirmed the Ba3 corporate family
rating of Fortescue Metals Group Ltd and changed the outlook on
the rating to positive from negative. The B1 senior unsecured
rating and Ba1 secured term loan rating of FMG Resources (August
2006) Pty Ltd were also affirmed. The outlook on all ratings is
positive.
Ratings Rationale:
"The outlook change to positive reflects the step-change in
Fortescue's production profile following the significant progress
made on the company's expansion activities combined with material
cost reduction initiatives. This has led to a rapid improvement in
the company's credit profile with strong cash flow generation as
well as an improved liquidity profile", says Matthew Moore -- a
Moody's Vice President and Senior Analyst.
"Following the increase in production capacity to 115 million
tonnes per annum (Mtpa) and Fortescue's ability to achieve lower
unit costs, credit metrics for FY13, as well as our forecasts for
FY14, have improved to strong levels for the Ba3 rating" adds
Moore who is also Lead Analyst for the company.
"Fortescue is in the process of expanding its iron ore production
capacity to a run-rate of 155 million tons per annum (mtpa) with
over 75% of that expansion now complete and project completion due
by December 2013. "Fortescue's track record to date of meeting
major milestones has assisted to materially reduce the company's
execution risk. Following completion and ramp up of the Firetail
operations and the increase in port and rail capacity to 155 mtpa
the project is now materially de-risked," says Moore.
The improved production profile has also benefited from a pricing
environment for iron ore above Moody's previous expectations,
while a material improvement in the company's cost profile has
allowed the company to generate substantial incremental cash flow
to fund the remainder of the expansion. As a result Moody's now
expects the company's credit profile to improve in line with its
expectations when it previously upgraded the rating to Ba3 with a
positive outlook, in May 2012. Under Moody's base case
expectations for iron ore prices over the next 12 to 18 months,
Fortescue's Debt/EBITDA could improve to under 3.0x - 3.5x in
FY14.
Due to the significantly reduced capital expenditure requirement,
proceeds from non-core asset sales and solid cash flow generation,
Moody's forecasts Fortescue to maintain solid liquidity, which
will assist to mitigate the company's exposure to inherently
volatile iron ore prices. Following the completion of its major
expansion project during the current financial year, capital
expenditure for FY14 should moderate meaningfully, to around $2.0
billion. As a result, Moody's expects Fortescue to be free cash
flow positive in FY14.
The recently announced monetization of a portion of the company's
stake in FMG Iron Bridge should provide additional cash proceeds
of around $500 million, which will support liquidity and can be
directed towards the early repayment of debt should the company
choose. The company also recently announced that it will begin to
reduce debt balances in the first half of FY14, ahead of Moody's
previous expectations.
The ratings could be upgraded if Fortescue's expansion plans are
completed on time and within budget. Any steps taken to reduce
debt, either through asset sales or internally generated cash
flow, will have a positive impact on the company's credit profile
and apply further positive pressure on the current rating.
Fortescue's current Ba3 rating may be upgraded if the company is
able to sustain a strong financial profile which would be
reflected by Debt/EBITDA below 3.5x and FFO/Interest maintained
above 3.0x on a consistent basis and under various iron ore price
scenarios.
Negative rating action is less likely in the near term due to the
positive momentum in Fortescue's credit profile. Nevertheless, the
rating and/or outlook could be negatively affected if there is a
weakening of the currently strong financial profile or a material
reduction in liquidity resulting from higher funding needs, weaker
than expected production and/or a material weakening in iron ore
industry fundamentals, beyond Moody's base case expectations. A
failure to complete its current expansion to 155mtpa on time and
budget could dampen the current positive momentum in the company's
credit profile.
Fortescue Metals Group, based in Perth, is an iron ore producer
engaged in the exploration and mining of iron ore for export,
mainly to China.
The principal methodology used in this rating was the Global
Mining Industry Methodology published in May 2009.
GIPPSLAND SECURED: Corporate Regulator Seeks to Wind Up Firm
------------------------------------------------------------
The Sydney Morning Herald reports that the Australian Securities
and Investments Commission has made a last-minute effort to wind
up troubled lender Gippsland Secured Investments, claiming a
rescue group has failed to come up with a sufficient proposal to
keep the company afloat.
The Australian Securities and Investments Commission told the
Federal Court that it had "substantial concerns" about the AU$7
million rescue package, according to The Sydney Morning Herald.
The report relates that any move to put GSI into receivership
could cast doubt on whether the debenture firm's 3,500 mostly
Gippsland-based investors will be able to recover all of the
AU$150 million they have pumped into the company.
The report notes that an ASIC representative told the court the
rescue proposal did not include an "appropriate amount of money"
to keep the debenture company alive. The report relates that the
representative also warned of the potential costs of delaying any
intervention in the company's operations.
A consortium of community and business leaders, including former
ANZ director John Dahlsen, have pulled together a rescue package
to keep the company afloat, the report notes.
But a review of its lending book by trustee The Trust Company this
month found a higher than expected level of debt, the report says.
The report discloses that the rescue group said they were under
the understanding that The Trust Company was supporting them after
discussions. But the group claims the trustee changed sides
later, supporting ASIC's move, the report says.
Justice Kathleen Farrell said the rescue package, which included
AU$2.2 million in cash and AU$4.85 million in equity, was not
enough to convince her that the company was safe from collapse.
She gave the consortium 24 hours to come up with more money, the
report relays.
METAL STORM: Administrators Seek Buyers For Business
----------------------------------------------------
dissolve.com.au reports that expressions of interest are sought
for the business of Metal Storm Limited. The company appointed
Adam Shepard and Adam Farnsworth of Dean-Willcocks Shepard as
joint deed administrators, the report says. The sale is subject
to deed of company arrangement.
Headquartered in Darra, Queensland, Australia, Metal Storm
Limited is a defense technology company with offices in Australia
and the United States. It specializes in the research, design,
development and integration of projectile launching systems
utilizing its "electronically initiated/stacked projectile"
technology for use in the defense, homeland security, law
enforcement and industrial markets.
The Company reported a net loss of AUD6.03 million in 2011, a net
loss of AUD8.93 million in 2010, and a net loss of AUD11.30
million in 2009.
The Company's balance sheet at Dec. 31, 2011, showed AUD1.08
million in total assets, AUD21.07 million in total liabilities
and a AUD19.99 million total deficiency.
PricewaterhouseCoopers, in Brisbane, Australia, issued a "going
concern" qualification on the financial statements for the year
ended Dec. 31, 2011, citing recurring losses from operations and
net capital deficiency that raised substantial doubt about the
Company's ability to continue as a going concern.
PARK AVENUE: Forced Into Receivership
-------------------------------------
Parramatta Sun reports that Park Avenue Bridal Pty Ltd, on
Macquarie Street, was forced into receivership, leaving some women
without their gowns only days before their wedding.
The Department of Fair Trading said the directors and employees at
the store had not been contacted since August 16 when the retailer
was locked up, according to Parramatta.
"Investigators attended the premises today [August 21] and made
contact with customers, some who had fully paid, and some who had
partially paid for, wedding dresses . . . . One customer supplied
a statement to Fair Trading indicating she had fully paid more
than $3000 for her wedding dress and is due to be married on
Saturday, August 31. . . . That customer was able to collect her
wedding dress," the report quoted Fair Trading commissioner Rod
Stowe as saying.
The report notes that Mr. Stowe said the liquidators, Cor Cordis
Chartered Accountants, advised Fair Trading they were currently in
the process of working through orders that had been placed with
the company and orders that were in the process of being filled by
other suppliers.
"The liquidators said dresses on the premises that had been paid
for and were completed should be able to be provided to customers,
subject to reconciliation by the liquidators. . . . It was also
agreed that any consumers who had made partial payments could
collect finished garments, subject to final payment and
reconciliation by the liquidators. . . . The liquidators have
advised Fair Trading that customers whose weddings were imminent
would be prioritized for resolution," Mr. Stowe said, the report
relates.
RETAIL ADVENTURES: Administrators Recommend Chain's Liquidation
---------------------------------------------------------------
Nick Clark at themercury.com.au reports that administrators have
recommended the liquidation of Jan Cameron's former discount
retail chain Retail Adventures.
In a 128-page report to creditors, Deloitte administrator Vaughan
Strawbridge has said they would receive more if the firm was
liquidated than if Ms. Cameron's deed of company arrangement was
accepted, themercury.com.au relates.
According to the report, Ms. Cameron and several former directors
have offered to pay AUD5.5 million to administrators for
distribution among creditors by January 2014.
Mr. Strawbridge said that creditors would receive 6.46 cents in
the dollar under the deed, the report adds.
"[Ms. Cameron's company] Bicheno has given no assurance that the
contribution will be made and the source of funds for the
contribution is not identified. We understand that the proposed
source is asset realisations and external financier funding," the
report quotes Mr. Strawbridge as saying.
The report referred to a lack of certainty that the DOCA
contribution would be made, the report adds.
"Based on this, we recommend that it is in the interest of
creditors for the companies to be wound up," Mr. Strawbridge, as
cited by themercury.com.au, said.
Mr. Strawbridge said creditors could expect between 20 cents and
45 cents in the dollar under a liquidation, the report adds.
About Retail Adventures
Retail Adventures Pty Ltd is an Australia-based discount variety
retailer and operates nationally under brand names Chickenfeed,
Go-Lo, Crazy Clark's, and Sam's Warehouse. The company operates
around 270 stores across the four brands.
Deloitte Restructuring Services Partners Vaughan Strawbridge,
David Lombe and John Greig have been appointed Joint Voluntary
Administrators of Retail Adventures Pty Limited, effective
Oct. 26, 2012.
Mr. Strawbridge said a license agreement is in place between
Retail Adventures Pty Ltd and DSG Holdings Australia Pty Ltd for
them to manage the 238 Crazy Clark's and Sam's Warehouse stores.
About 20 Chickenfeed stores in Tasmania have been closed and
staff paid entitlements.
TAREE OLD BAR: SLSNSW Puts Firm Into Administration
---------------------------------------------------
Manning River Times reports that Taree Old Bar Surf Club has been
placed into administration by Surf Life Saving NSW (SLSNSW).
This was decided following the August board meeting of SLSNSW,
says the report.
Correspondence sent to club members from SLSNSW members' services
manager Claire Parry said: "Taree Old Bar SLSC will be placed into
administration in line with Section 54 of the Surf Life Saving NSW
constitution (authority to appoint administrator), according to
Manning River Times. The report relates that this process will
take place at a special general meeting which to be held on
Saturday September 14 at noon in the Taree Old Bar SLSC
auditorium.
"At this meeting the current executive will stand down, and two
administrators will be appointed. Jan Clingeleffer (Wauchope
Bonny Hills SLSC) will take on the role of president and oversee
the leadership and administration of the club and Mick Lang
(Tacking Point SLSC) will take on the operational administrator
role overseeing lifesaving, education, surf sports and member
development," the report quoted Mr. Parry as saying.
===============
C A M B O D I A
===============
* Moody's Says B2 Rating Reflects Cambodia's Economic Prospects
---------------------------------------------------------------
Moody's Investors Service says that despite rapid growth, the
small size and the narrow diversification of Cambodia's economy
constrain its B2 rating. The limited effectiveness of monetary
policy due to a high rate of dollarization is also a rating
constraint.
Cambodia's B2 sovereign bond rating and stable outlook reflect
Moody's assessment of the country's "very low" economic and
institutional strengths, its "low" government financial strength,
and its "low" susceptibility to risks from financial, economic and
political events.
According to a just-released Moody's report titled, "Credit
Analysis: Cambodia," the country's GDP per capita is one of the
lowest amongst all Moody's-rated countries.
However, economic growth following the end of the civil conflict
in 1991 has been rapid, supported by a shift to a more open
economy and strong capital inflows.
Moody's expects the country's GDP growth to remain at 7% through
2013 and 2014, aided by higher foreign direct investment, a
recovery in exports, and an uptick in construction activity. At
the same time, growth is increasingly supported by rapid private
sector credit expansion.
Cambodia's "very low" institutional strength reflects the lack of
transparency, weak governance, and the limited scope of its
monetary policy.
Moody's notes that 96% of Cambodia's total deposits are foreign-
currency denominated, which has rendered reserve requirements as
the primary tool for influencing credit conditions, thus
constraining the choice of policy instruments.
The budget deficit has consolidated noticeably from the peak seen
in 2009, but remains above the peer median. Cambodia finances its
deficits mainly using aid flows. This situation has in turn
limited efforts to raise tax and resulted in some fragmenting of
expenditure.
While current account deficits are high, they are easily financed
through official transfers, aid flows, and foreign direct
investment. Consequently, foreign reserves have been edging
higher.
Cambodia's susceptibility to event risks is low -- despite its
exposure to global demand and volatile oil prices -- because it
has sufficient buffers to counter risks to trade flows, a
relatively stable government, and a sound banking system.
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C H I N A
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MAOYE INTERNATIONAL: First Half 2013 Results No Impact on Ratings
-----------------------------------------------------------------
Moody's Investors Service says that Maoye International Holdings
Limited's financial results for 1H 2013 will not have any impact
on its Ba1 corporate family rating and (P)Ba2 senior unsecured
rating and stable outlook.
"Despite an overall slowdown in China's retail sector and lower
concessionaire rates in new stores, Maoye managed to achieve sales
growth in 1H 2013," says Alan Gao, a Moody's Vice President and
Senior Analyst.
Maoye reported 7.7% same store sales growth ("SSSG") in 1H 2013.
The key growth drivers came from its store operations in North and
East China where the SSSG averaged 12-14%. But, its more
established store portfolio in Shenzhen and Southwest China grew
at a lower 3-5%.
Moody's also notes that Maoye's consolidated concessionaire rate -
- after factoring rebates from suppliers and credit charges --
dropped to 23.9% in 1H 2013 from 25.3% one year ago, but was still
among the highest in the sector.
The decrease was mainly due to the growing contribution from new
stores, whose rate was lower when compared with the more mature
stores.
Such a lower consolidated concessionaire rate was fully offset by
its satisfactory SSSG and the increase in total store gross floor
area ("GFA").
Thus, there was an increase in operating revenue of 7.3% year-on-
year to RMB2.3 billion in 1H 2013 from RMB2.1 billion in 1H 2012.
Moody's expects Maoye to maintain stable operating revenue growth
in 2H 2013 as total GFA will further grow by approximately 12% to
1.343 million sqm by the end of 2013, following the commencement
of key projects in Chengdu and North China; as well as the
increase in delivery of properties sold.
"In addition, Maoye maintains a debt leverage level consistent
with its rating," says Gao.
Maoye's debt leverage -- as measured by adjusted debt/EBITDA --
improved slightly to 4.8x from 4.9x in December 2012; and Moody's
expects adjusted debt/EBITDA in the next 12 months to drop to
around 4.0x-4.5x.
Moody's notes that Maoye's cash balance fell to RMB981 million in
June 2013 from RMB1.5 billion in December 2012 because of
renovation and construction capital expenditure for its department
stores.
However, Moody's considers Maoye's liquidity position as
satisfactory because its end-2013 cash balance will likely remain
stable at around RMB 1 billion as cash collections from property
pre-sales will cover part of expected capital expenditure of
around RMB900 million in 2H2013.
The principal methodology used in this rating was the Global
Retail Industry Methodology published in June 2011.
Maoye International Holdings Limited is one of the leading
department store operators in China. Listed on the Hong Kong
Exchange in 2008, the company is headquartered in Shenzhen,
Guangdong Province, and has expanded to China's second- and third-
tier cities, targeting the mid-to-high-end retail market.
WINSWAY COKING: Moody's Downgrades Corporate Family Rating to Ca
----------------------------------------------------------------
Moody's Investors Service has downgraded to Ca from Caa1 the $500
million 8.5% senior unsecured notes due April 2016 ("2016 Notes")
issued by Winsway Coking Coal Holdings Limited.
At the same time, Moody's has downgraded Winsway's corporate
family rating to Ca from B3. The outlook for all ratings is
negative.
Ratings Rationale:
The rating action follows Winsway's announcement on 20 August 2013
that it is commencing an exchange offer and consent solicitation
for the 2016 Notes. The exchange offer, which is subject to
consent from 75% of the company's bondholders, includes (i)
amendments eliminating substantially all of the restrictive
covenants and certain events of default contained in the existing
bond indenture; and (ii) agreeing to one of the two settlement
options by 5 September 2013.
The two settlement options are:
Settlement A: For each $1,000 principal amount, bond holders will
receive up to $450 cash payment, consisting of (a) consideration
of $425 per $1,000 principal amount; and (b) a consent payment of
$25 per $1,000 principal amount.
Settlement B: Bond holders can retain 25% of the 2016 Notes
principal and tender back the remaining 75% for up to $350 cash
payment, consisting of (a) consideration of $325 per $1,000
principal amount; and (b) a consent payment of $25 per $1,000
principal amount.
"If successful, the transaction will constitute a distressed debt
exchange, which is a default event under Moody's definition. The
downgrade of the 2016 Notes to Ca considers this default and our
assessment of the high economic loss of over 50% when compared to
the original payment promise for the Notes," says Alan Gao, a
Moody's Vice President and Senior Analyst. "Moreover, the
downgrade of Winsway's corporate family rating to Ca from B3
reflects our concern that the company will continue to face
financial stress after the transaction closes as proposed," adds
Gao. Moody's recognizes that the completion of the exchange offer
would offer Winsway reduced debt liability.
Despite such a benefit, the Ca corporate family rating continues
to reflect the company's strained liquidity levels, even after the
proposed transaction is concluded arising from (i) the company's
unencumbered cash holding -- HKD1.78 billion as of end-June 2013 -
- will be largely depleted after the exchange; (ii) uncertainty
over whether the company is able to generate sufficient cash flows
from operations to meet its other debt and trading obligations in
view of continued operating losses at its core Mongolian coal
trading business; and (iii) the consideration that the proceeds
from the disposal of its current assets, such as inventory, may
not be sufficient to fully cover its other payment obligations,
given the depressed state of coal prices.
The negative outlook factors in uncertainty over whether the
exchange offer and consent solicitation will be successfully
completed, and that post the transaction, the company's liquidity
position is expected to remain significantly stressed -- if there
are not any material equity injections -- and the consideration
that its operating model has been severely weakened. Accordingly,
the risk of default remains high.
Winsway Coking Coal Holdings Limited's ratings were assigned by
evaluating factors that Moody's considers relevant to the credit
profile of the issuer, such as the company's (i) business risk and
competitive position compared with others within the industry;
(ii) capital structure and financial risk; (iii) projected
performance over the near to intermediate term; and (iv)
management's track record and tolerance for risk. Moody's compared
these attributes against other issuers both within and outside
Winsway Coking Coal Holdings Limited's core industry and believes
Winsway Coking Coal Holdings Limited's ratings are comparable to
those of other issuers with similar credit risk.
Winsway Coking Coal is one of the largest suppliers of coking coal
in China, and obtains its supplies from Mongolia and other
international markets. It also processes coal and provides
logistics services to its customers, mainly Chinese steel makers
and coke plants, through its integrated supply chain for coking
coal in China. It listed on the Hong Kong Stock Exchange in
October 2010, and is 49.7% owned by its founder and CEO Wang
Xingchun.
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I N D I A
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ANAND ENGINEERING: ICRA Reaffirms 'D' Ratings on INR60.59cr Loans
-----------------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]D outstanding
on the INR18.69 crore term loans, INR2.94 crore working capital
term loan, INR27.96 crore proposed term loans and INR10.00 crore
fund based facilities of Anand Engineering Products Private
Limited. ICRA has also reaffirmed the short term rating of
'[ICRA]D' outstanding on the INR1.00 crore non-fund based
facilities of the Company.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long Term: Term loans 18.69 [ICRA]D/reaffirmed
Long Term: Working 2.94 [ICRA]D/reaffirmed
Capital Term Loan
Long term: Proposed term 27.96 [ICRA]D/reaffirmed
Loans
Long Term: Fund based 10.00 [ICRA]D/reaffirmed
Facilities
Short Term: Non fund 1.00 [ICRA]D/reaffirmed
based facilities
The ratings consider the continuing delays in debt servicing by
the company, owing to the tight liquidity position and stretched
cash flows. The company's financial profile during 2012-13 was
impacted with a sharp INR4.1 crore net loss on the back of loss of
orders from one of its key customers in the wind energy segment.
AEPPL derived -45.0% of sales from the customer during 2011-12;
there was a significant decline in orders from the customer during
2012-13, which impacted the overall revenues and margins. The
demand from its other customer in Construction Equipment industry
too was subdued in the last one year owing to weak macro-economic
indicators, deferment in private projects, slow pace of
investments in infrastructure and weak global demand. While the
ratings consider the long standing experience of the promoters in
the heavy engineering industry, the business concentration on few
customers remains a risk. Going forward, the Company's ability to
widen the customer base and improve the revenues and margins will
be critical in meeting the debt servicing obligations in a timely
manner.
Anand Engineering Products Private Limited, located in Trichy
(Tamil Nadu), is involved in the process of fabrication, machining
and assembly works to manufacture components for heavy engineering
products like earthmoving equipment, wind turbine towers, etc.
Fabrication is largely done for Caterpillar India Limited (dumper
bodies) and Gamesa Wind Turbines Private Limited (towers for wind
turbines). The Company has a fabrication capacity of 2,000
tons/month.
Recent Results
The Company has reported net loss of INR4.1 crore on an operating
income of INR51.1 crore in 2012-13, as against net profit of
INR10.2 crore reported on an operating income of INR78.7 crore for
2011-12.
AURAYA HEALTHCARE: ICRA Rates INR7.5cr LT Bank Loans at 'B+'
------------------------------------------------------------
ICRA has assigned the long term rating of '[ICRA]B+' to
INR7.50 crore fund based bank facilities of Auraya Healthcare.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long Term: Fund Based 7.50 [ICRA]B+/assigned
Limits
The assigned rating is constrained by the firm's stretched
liquidity on account of the long working capital cycle and its
modest scale of operations which limits its pricing ability in a
fragmented market as reflected in declining operating
profitability. While the debt coverage indicators had been
adequate, capacity expansion driven growth, high working capital
intensity of operations and pressure on the profitability would
continue to result in dependence on the funding support, the
timely availability of which would be critical for maintaining
adequate liquidity. The assigned rating is also constrained by the
product concentration with most of the sales accounted by one
product, water for injection, and also by the partnership nature
of the entity which in addition to limiting the financial
flexibility also results in risk with respect to capital
withdrawal which can adversely impact the cash accruals and
capital structure. The rating however takes into account the
fiscal incentives available to the firm on account of its presence
in the state of Himachal Pradesh and its diversified customer
profile with sales to some of leading pharmaceutical companies.
Going forward, ability to manage its working capital cycle and
maintain adequate liquidity while sustaining the revenue growth
would be the key rating sensitivities.
Auraya Healthcare was formed in July 2006 by Mr. Vipul Chanana,
Mr. Amit Chanana, Mr. Alok Madhok and Mr. Gautam Madhok; and is
primarily engaged in manufacturing of WFI (Water for Injection)
and NaCl (sodium chloride) solutions. The firm has a manufacturing
unit in Baddi (Himachal Pradesh) with an installed capacity of 3.5
lac units per day which commenced production from October 2009. In
addition to Auraya Healthcare, the partners are engaged in
manufacturing of automobile filters (through Hira Filters and
Udbhav Industries) and aluminium profiles (through Virgo Graces
Laboratories).
BARDIA JEWELLERS: ICRA Rates INR7.50cr Cash Credit at 'B+'
----------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B+' to the INR7.50
crore fund based cash credit facility and a short term rating of
'[ICRA]A4' to the INR0.5 crore fund based stand by line of credit
facility of Bardia Jewellers Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Fund Based-Cash Credit 7.50 [ICRA]B+ assigned
Fund based-Stand by line 0.50 [ICRA]A4 assigned
of credit
The ratings are constrained by the highly competitive and
fragmented nature of the industry, wherein the future growth is
exposed to increasing competition from organized retail players
and the vulnerability of margins to fluctuations in gold price,
which is further accentuated by a high level of inventory. ICRA
also take into account the recent restrictions on gold import
which is likely to impact the availability of gold. The ratings
also factor in the weak financial profile of the company as
characterized by high gearing levels and weak coverage indicators,
high working capital intensity due to high inventory requirement
in retail jewellery business and the small scale of current
operations. The ratings, however, favorably take into account the
established market presence and a long track record of the company
in Chhattisgarh and the improvement in financial profile as
reflected by growth in operating income and increasing
profitability of the company till FY13, although the same remains
at moderate level in absolute terms.
BJPL, promoted by Bardia family was incorporated in 2006-07 and is
engaged in retailing of jewellery through its showrooms in
Chhattisgarh. The company primarily sources readymade jewellery
from traders in the open market and sells the same from its retail
stores to individual customers or smaller jewellery stores. The
company also manufactures jewellery, however, in relatively lower
volumes and also deals in exchange offers, wherein the company
offers 100% return on the value of the jewellery.
Recent Results
BJPL registered a profit after tax (PAT) of INR0.21 crore on the
back of an operating income (OI) of INR19.12 crore during FY13 (as
per the provisional numbers), as against a PAT of INR0.12 crore on
an OI of INR18 crore in FY12.
DECOR PAPER: ICRA Downgrades Ratings on INR24cr Loans to 'D'
------------------------------------------------------------
ICRA has downgraded the long-term rating from '[ICRA]BB-' with
stable outlook to '[ICRA]D' and the short-term rating from
'[ICRA]A4' to '[ICRA]D' assigned to the term loans, fund based
facilities, non-fund based facilities, and proposed limits of
Decor Paper Mills Limited aggregating to INR24.00 crore.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Term Loans 4.37 [ICRA]D downgraded
Fund Based Limits 10.00 [ICRA]D downgraded
Non-Fund Based Limits 3.45 [ICRA]D downgraded
Proposed Limits 6.18 [ICRA]D downgraded
The downgrade of the ratings factors in the delays in servicing
the scheduled debt repayments by the company, the increase in the
quantum of corporate guarantees extended for bank term loans
availed by group companies, and the de-growth in operating income
in FY 2013 due to power cuts in the state. The rating is further
constrained by the relatively small size of operations of the
company, lack of product diversification and vulnerability of the
company's profitability to waste paper price fluctuations as well
as currency fluctuations. Further, the competitive pressures in
the industry remain high, especially for lower BF (Burst Factor)
category kraft paper in which the company predominately operates.
ICRA however positively notes the long track record of the Group
in the kraft paper business, healthy demand indicators from end-
user industries, and the company's established distributor
network.
Incorporated in 2007, Decor Paper Mills Limited is engaged in the
manufacturing of kraft paper which finds applications in the
packaging industry, especially for making corrugated boxes. The
company has its manufacturing unit located in Hyderabad. DPML
commenced production with a capacity of 40,000 MTPA in 2007 which
was subsequently enhanced to 60,000 MTPA. It manufactures kraft
paper of various grades viz. 12 BF, 14 BF, 16 BF, 18 BF, 20 BF,
and 22 BF (BF stands for Burst Factor and signifies the strength &
quality of the paper) with lower BF category paper i.e. 14 BF, 16
BF, and 18 BF paper forming about 80% of its total production mix.
The major group companies of DPML are Apex Paper Mills (Nagpur,
with an installed capacity of 6,250 MTPA), Bazargaon Paper and
Pulp Mills Private Limited (Nagpur, 30,000 MTPA), New Bombay Paper
Mill Pvt. Ltd. (New Mumbai, 8,750 MTPA), and Kolar Paper Mill
(plant being setup at Tirupati, Hyderabad with an installed
capacity of 100,000 MTPA).
In FY 2013, the company reported Profit after Tax (PAT) of INR1.40
crore on an operating income of INR48.83 crore. During FY 2012,
the company reported a PAT of INR2.95 crore on an operating income
of INR67.77 crore.
MAHESH KUMAR: ICRA Downgrades Ratings on INR11.03cr Loans to 'D'
----------------------------------------------------------------
ICRA has revised the long-term rating outstanding on the INR3.73
crore term loan facilities, INR6.00 crore fund based facilities
and INR1.30 crore long-term non-fund based facilities of Mahesh
Kumar Spinning Mills Private Limited to '[ICRA]D' from '[ICRA]B'.
ICRA has also revised the short term rating outstanding on the
INR0.75 crore short-term non-fund based facilities of the Company
to '[ICRA]D' from '[ICRA]A4'.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Term loan facilities 3.73 [ICRA]D; downgraded
from [ICRA]B
Fund based facilities 6.00 [ICRA]D; downgraded
from [ICRA]B
Non-fund based facilities 1.30 [ICRA]D; downgraded
(long term) from [ICRA]B
Non-fund based facilities 0.75 [ICRA]D; downgraded
(short term) from [ICRA]A4
The revision in the ratings considers the recent delays witnessed
in debt servicing by the Company on account of stretched liquidity
position arising from delays in collections from customers and
recent large investments in capacity expansion. As a result of
stretched cash flows, the Company has been delaying on the
principal portion of term debt repayments and interest portion of
working capital loans.
Mahesh Kumar Spinning Mills Private Limited, incorporated in 2002,
is primarily engaged in the manufacturing of fabric and is also
engaged in the manufacturing of garments and cotton yarn. Major
portion of the fabric is sold to its group entity, Mahesh Kumar
Mills.
The Company also manufactures garment and exports to various
countries including Uganda, Maldives, Qatar and Madagascar. The
Company has its manufacturing facility located in
Thandukaranpalayam, near Coimbatore, Tamil Nadu with an installed
capacity of 14,112 spindles and 90 knitting units.
The Company was promoted by Mr. B. Balasubramaniyam and is closely
held by its directors and family members. The promoter of MKSMPL
also has interests in Mahesh Kumar Mills and Hotel MKM Classic
located in Tirupur, Tamil Nadu through equity participation.
NEW HARYANA: ICRA Assigns 'B' Rating to INR9.5cr Fund Based Loans
-----------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B' to the INR9.50
crore* bank limits of New Haryana Overseas.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Fund Based Limits 9.50 [ICRA]B assigned
The rating assigned takes into account NHO's modest scale of
operations (Operating income of INR32.1 crore in FY2012), its low
profitability, working capital intensive nature of the business
leading to high working capital borrowings (debt includes family
members' unsecured loans of INR1.48 crore as on March 31, 2012)
and hence high gearing of 7.43 times as on March 31, 2012
(removing "unsecured loans from family members" from total debt,
gearing stood at 6.5 times as on March 31, 2012) which coupled
with low profitability has led to weak debt protection metrics.
The rating also takes into consideration the high competitive
intensity of the industry, vulnerability of firm's revenue and
profitability to agro climatic risks impacting the availability
and pricing of raw material, exposure to foreign exchange
fluctuation risk and the risks inherent in proprietorship firm
like limited ability to raise equity, risk of dissolution due to
the death, insolvency and retirement etc of the proprietor. On the
other hand the rating draws comfort from the experienced
management with established presence in rice business for a long
period of time, easy availability of raw material because of
firm's presence in paddy growing area and favorable demand-supply
scenario in the basmati rice industry.
M/s New Haryana Overseas was started as proprietorship firm in the
year 1991 by Mr. Navdeep Khosla. The processing facility of firm
is located in Ambala, Haryana. The firm has milling capacity of 6
metric tonnes per hour.
Recent Result
The firm has reported an operating income of INR32.1 crore and
profit before tax of INR0.3 crore in FY2012 as against profit
before tax of INR0.1 crore on an operating income of INR24.8 crore
in FY2011.
RAINBOW PACKAGING: ICRA Reaffirms 'BB' Rating on INR1cr Loan
------------------------------------------------------------
ICRA has re-affirmed '[ICRA]BB' rating to the INR11.00 crore
(enhanced from INR10.50 crore) cash credit facility of Rainbow
Packaging Private Limited. The outlook on the long term rating is
'Stable'. ICRA has also reaffirmed the '[ICRA]A4' rating to the
short term non fund based limits of INR5.50 crore (enhanced from
INR4.50 crore) of RPPL.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Cash Credit 1.00 [ICRA]BB Reaffirmed (Stable)
Letter of Credit 5.50 [ICRA]A4 Reaffirmed
The rating reaffirmation takes into account the company's
established relationships and pre-qualification status with major
state milk cooperative societies and the long track record of the
promoters in the plastic packaging business. The ratings are
however constrained by the continuing low profit margins given
increased proportion of trading sales, the intense competitive
pressure in the industry and the company's weak financial risk
profile characterized by high gearing and high working capital
intensity of operations. Further the rating takes into account of
the closure of the company's HDPE barrel segment because of
competitive pressure from Daman based players, leading to an
increased focus on the low margin trading activity. The ratings
are also constrained by the vulnerability of the company's
profitability to foreign exchange fluctuations for imports of key
raw materials, in the absence of a firm hedging policy. However,
the inclusion of price variation clauses in the tender contracts
for PE films mitigates the raw material price risks to a large
extent.
Established in 1986, Rainbow Packaging Private Limited is engaged
in the manufacturing of multilayer blown polyethylene films
supplied to milk associations and trading of LDPE granules. The
company is promoted by the Makwana family and manufactures its
products at plant situated at Changodar, Ahmedabad. The plant has
a manufacturing capacity of 3600 TPA of film.
SATPRIYA MEHAMIA: ICRA Reaffirms 'B' Rating on INR16cr Loans
------------------------------------------------------------
ICRA has reaffirmed '[ICRA]B' rating for INR16.0 crore, fund based
bank facilities of Satpriya Mehamia Memorial Educational Trust.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Term Loans 16.00 [ICRA]B reaffirmed
The rating of [ICRA]B for the trust's bank facilities were
suspended earlier in April 2013.
The rating reaffirmation takes into account long standing
experience of trustees in the education sector with an established
franchise of the Delhi Public School Society and diversified
bouquet of courses offered which helps in reducing dependence on
any one discipline. However, the rating is constrained by high
competitive intensity in private education in India, tough
regulatory environment in the sector, lumpy nature of fees
receipts which exposes trust to cash flow mismatch during the year
and drop in occupancy percentage in its flagship engineering
college. Going forward, SMET's ability to service its debt in a
timely manner in view of the seasonality in cash flows with the
college; occupancy levels in its engineering and management
colleges would be the key sensitive factor.
Satpriya Mehamia Memorial Educational Trust was incorporated on
22th January, 1998 by the Kamla Devi Arya, wife of Late Satpriya
Arya with the objective of spreading education by establishing
educational institutes. The trust is managed and administered by
the Satpriya Arya family and has under its aegis postgraduate &
graduate colleges as well as primary & higher secondary schools.
The colleges run by SMET are affiliated to Maharishi Dayanand
University (MDU), Rohtak. On the other hand the schools are a
franchise of Delhi Public School Society. SMET has its educational
facilities in a campus spanning 38 acres on Jind Road, Rohtak. The
campus houses all the four colleges as well as the school (DPS,
Rohtak) run by the trust. Currently SMET has more than 200 faculty
members and more than 4,000 students on its rolls.
SHAMAL & SHAMAL: ICRA Assigns 'BB' Ratings to INR6.40cr Loans
-------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]BB' and a short
term rating of '[ICRA]A4' to the INR9.43 crore bank limits of
Shamal & Shamal Private Limited. The outlook on the long term
rating is Stable.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long Term loan 2.40 [ICRA]BB (stable) assigned
Long Term Cash 4.00 [ICRA]BB (stable) assigned
Credit Facility
Short Term Letter 3.00 [ICRA]A4 assigned
of Credit
Short Term Bank 0.03 [ICRA]A4 assigned
Guarantee
The ratings assigned are constrained by the company's small scale
of operations and weak financial profile characterised by modest
profitability margins and high working capital intensity owing to
stretched receivables period for embroidered and stitched
garments. The ratings also factor in the vulnerability of the
company's profitability margins and cash flows to adverse
fluctuations in raw material prices and the cyclicality inherent
in the textile industry. ICRA further notes that the company's
profitability margins are constrained by intense competitive
pressures owing to fragmented nature of the textile industry.
The ratings, however, draw comfort from the long standing
experience of the promoters in the field of textile weaving,
synergies derived from presence of group companies in similar line
of business and locational advantage available to the company by
virtue of its location in Surat, in proximity to raw material
sources and customers.
Shamal & Shamal Private Limited was incorporated in 2001 and is
engaged in the weaving of greige fabric and jacquard fabric from
Partially Oriented Yarn (POY) and metallised yarn respectively,
and further processing activities such as embroidery and
stitching, to produce finished apparel such as sarees and dress
materials, against customised contracts. The promoters of the
company have been engaged in the processing activities,
predominantly embroidery, and trading of finished products for
nearly 25 years through four other group concerns, viz. Shyamal
Associates, Maxum Industries, Seema Synthetics and Shwet
Enterprise. SSPL operates out of two manufacturing units based at
Surat (Gujarat) which are equipped with 80 water-jet looms and 60
jacquard looms for weaving, 40 embroidery machines and 120
stitching machines. The installed capacity for production of
greige fabric is -0.7 crore metres per annum.
In FY 2013, SSPL recorded a profit before tax (PBT) of INR0.72
crore on an operating income of INR25.89 crore (provisional). In
FY 2012, SSPL recorded a profit after tax (PAT) of INR0.42 crore
on an operating income of INR20.42 crore.
SONALI ENERGEES: ICRA Reaffirms 'B+' Rating on INR16.10cr Loans
---------------------------------------------------------------
ICRA has re-affirmed long-term rating of '[ICRA]B+' and short-term
rating of '[ICRA]A4' to the term loans, fund based limits and non-
fund based limits of Sonali Energees Private Limited aggregating
to INR38.10 crore (enhanced from INR17.50 crore).
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Fund Based Limits 16.10 [ICRA]B+ reaffirmed
(Term Loan/ECB/FCL)
Fund Based Limits 10.00 [ICRA]A4 reaffirmed/assigned
(EPC/FBD/PCFC/EBR)
Fund Based Limits 1.20 [ICRA]B+/[ICRA]A4 assigned
(CC/WCDL/BD)
Non-Fund Based Limits 12.00 [ICRA]A4 assigned
(LC/BG)
The re-affirmation of ratings takes into account the company's
limited track record in solar photo voltaic (PV) module
manufacturing activities, weak financial risk profile and low
plant utilization levels in FY 2013 on account of delays in
receipt of technical certifications for sales in overseas markets.
The ratings are further constrained by vulnerability of the
company's operations to inventory risks arising out of declining
solar cell and module prices as well as intense competitive
pressures from large established players both in the domestic and
international markets. ICRA notes that the ability of the company
to scale up its operations, going forward, and efficient inventory
management remains crucial from a rating perspective.
The ratings however, favorably factor in the favorable demand
potential for solar modules, group's experience in marketing of
solar PV modules in USA through group concern viz. Sonali
Energees, USA, and the fiscal benefits expected to accrue to the
company by virtue of its location in Surat Special Economic Zone.
Sonali Energees Private Limited was incorporated in March 2009 and
is engaged in the manufacturing of solar photo voltaic (PV)
modules. The company is promoted by members of the Desai family,
based in USA and Surat, who have hitherto been involved primarily
in the diamond trading business. The module manufacturing plant of
the company was commissioned on May 15, 2012 and has an annual
installed capacity to produce 25 MW of modules. The plant is
located in the Surat Special Economic Zone at Surat, Gujarat.
Recent Results
For FY 2013, the company reported net loss of INR2.16 Cr. on an
operating income of INR6.13 Cr. (provisional).
TARA CHAND: ICRA Reaffirms 'B+' Rating on INR40cr Loans
-------------------------------------------------------
ICRA has reaffirmed the '[ICRA]B+' rating for INR40.00 crore
(enhanced from INR31.00 crore) fund based facilities of Tara Chand
Rice Mill.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Working Capital facilities 40.00 [ICRA]B+ reaffirmed
ICRA's rating action factors in high working capital intensity of
operations as reflected by high working capital borrowings and
high limit utilizations resulting in high gearing level and
consequently weak debt projection indicators. The rating further
remains constrained by highly competitive nature of the industry
and low profitability. ICRA has also taken note of the risks
inherent in a partnership firm like limited ability to raise
equity capital, risk of dissolution due to
death/retirement/insolvency of partners etc.
The rating, however favorably takes into account firm's increasing
scale of operations, long standing experience of promoters in rice
industry and proximity of the mill to major rice growing area
which results in easy availability of paddy.
TCRM is a partnership firm established in the year 1990 by Mr.
Anil Kumar and his wife Mrs. Sangeeta who are equal partners. The
firm is involved in the milling and processing of basmati rice and
is based out of Nissing, Karnal (Haryana), which is in close
proximity to the local grain market. The firm also exports rice to
countries like Saudi Arabia, Dubai, etc.
Recent Results
During FY2013, the firm reported a net profit after tax (PAT) of
INR0.51 crore on an operating income of INR146.87 crore as against
a PAT of INR0.31 crore on an operating income of INR97.98 crores
in FY 2012.
=================
I N D O N E S I A
=================
BANK INTERNASIONAL: Fitch Affirms Viability Rating at 'bb'
----------------------------------------------------------
Fitch Ratings has affirmed the ratings of PT Bank Internasional
Indonesia Tbk (BII) and its subsidiaries, PT BII Finance Center
(BII Finance) and PT Wahana Ottomitra Multhiartha Tbk (WOM). The
Rating Outlooks are Stable.
The affirmation of BII's Long-Term Issuer Default Ratings (IDRs)
and National Long-Term Ratings reflects unchanged parental support
and linkage with its parent, Malayan Banking Berhad (Maybank) and
that of the Viability Rating reflects BII's moderate standalone
credit profile.
Key Rating Drivers
The Long-Term IDRs and National Long-Term ratings reflect Fitch's
belief that BII's parent, Maybank (A-/Negative), would be highly
likely to provide extraordinary support, if needed. This is in
view of BII's strategic importance to Maybank's regional
ambitions, the parent's majority ownership (88.3%), and BII's
growing integration with Maybank. The Viability Rating reflects
BII's asset quality improvement in line with enhanced risk
management, ongoing support from Maybank through capital
injections, as well as its below-industry average capital position
and profitability.
The Support Rating of '2' reflects Fitch view on the bank's
stronger integration with Maybank in most key areas, including
credit policies, risk management, operational and IT system, and
periodic capital injection in times of need.
Rating Sensitivities - IDRs, National Ratings and Support Ratings
Any significant dilution in ownership by, or perceived weakening
of support from, Maybank, would put pressure on BII's IDRs,
National Ratings and Support Ratings. In Fitch's view reducing its
stake, in order to comply with Indonesia's debt capital market
regulatory requirement, to the maximum 80% will not impact
Maybank's support to BII, given BII's strategic importance to
Maybank's regional business. Thus, Fitch expects the IDR and
National Long Term Ratings to remain unchanged. Fitch also expects
that BII will gradually become a core subsidiary for Maybank as
Indonesia is one of Maybank's core markets in Southeast Asia.
There is no upside potential for the National Rating, which is
already at the top end of the scale. Any change in Indonesia's
Country Ceiling (BBB) would have an impact on BII's IDR but would
be unlikely to affect the National Rating as long as Maybank's IDR
is above the Country Ceiling.
Rating Sensitivities - Viability Rating
Fitch believes strong ordinary support from Maybank would continue
to help underpin BII's VR unless there is material weakening in
BII's asset quality or capital position, particularly in a
protracted downturn. A sustained improvement in risk underwriting
and profitability, along with an ability to maintain sound
liquidity and capitalisation with reduced reliance on Maybank,
would be positive for the VR.
Key Rating Drivers and Rating Sensitivities - Subsidiary Ratings
The ratings of BIIF and WOM are driven by potential support from
their majority shareholder, BII and the ultimate parent, Maybank,
in case of need. These ratings take into account their linkage
with and strategic importance to Maybank in expanding its
footprint in Indonesia's fast-growing consumer market. BII
continues to support the funding of its subsidiaries through a
joint financing scheme where BII assumes the bulk of the credit
risk.
BIIF's National Long-Term rating is a notch below its parent's
National Long-Term Rating of 'AAA(idn)', reflecting strong
linkages with and timely support from BII as a strategic
subsidiary rather than as a core subsidiary of BII.
WOM is rated two notches below its parent's National Long-Term
Rating, reflecting moderate linkages with BII in the form of the
latter's 62% ownership and timely support for the important
subsidiary in motorcycle financing.
Any significant dilution in ownership or perceived weakening
support from BII and Maybank will put pressure on the ratings of
BII Finance and WOM. However, Fitch sees this prospect as remote
in the foreseeable future, given BIIF's and WOM's strategic role
to expand BII's auto financing exposure. On the other hand,
stronger linkages between these subsidiaries and BII, such as a
merger of these two subsidiaries, name-sharing and a significantly
higher contribution to BII's revenue and assets may result in a
positive rating action.
Key Rating Drivers and Rating Sensitivities - Debt Ratings
The ratings of the companies' rupiah-denominated senior bonds and
bond programme are the same as their National Long- and Short-Term
Ratings. This is because these debts constitute direct,
unsubordinated and senior unsecured obligations of the concerned
entities and rank equally with all their other unsecured and
unsubordinated obligations. Any changes in the National Long- and
Short-Term Ratings would affect these issue ratings.
The subordinated debt are rated two notches below the banks'
National Long-Term Rating, comprising one notch for loss severity
and one notch for non-performance risk to reflect their
subordination status and coupon and/or principal deferral risk.
The list of rating actions is as follows:
BII:
- Long-Term IDR affirmed at 'BBB', Outlook Stable
- Short-Term IDR affirmed at 'F3'
- National Long-Term Rating affirmed at 'AAA(idn)', Outlook
Stable
- Senior unsecured bond tranche II/2012 affirmed at 'AAA(idn)'
- Subordinated bond tranche II/2012 affirmed at 'AA(idn)'
- Senior debt programme I/2011 affirmed at 'AAA(idn)'
- Subordinated debt programme I/2011 affirmed at 'AA(idn)'
- Senior unsecured bond tranche I/2011 affirmed at 'AAA(idn)'
- Subordinated bond tranche I/2011 affirmed at 'AA(idn)'
- Subordinated bond I/2011 affirmed at 'AA(idn)'
- Support Rating affirmed at '2'
- Viability Rating affirmed at 'bb'
BIIF:
- National Long-Term Rating affirmed at at 'AA+(idn)'; Outlook
Stable
- National Short-Term Rating affirmed at 'F1+(idn)'
- I/2012 bond affirmed at 'AA+(idn)'
- II/2013 bond affirmed at 'AA+(idn)'
- Medium-term notes V/2013 affirmed at 'AA+(idn)'
WOM:
- National Long-Term Rating affirmed at 'AA(idn)'; Outlook Stable
- National Short-term Rating affirmed at 'F1+(idn)'
- V/2011 bond affirmed at 'AA(idn)'
- Subordinated debt affirmed at 'AA-(idn)'
PERUSAHAAN PENERBIT: S&P Places 'BB+' Rating on Sukuk Trust Cert.
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' long-term
foreign currency issue rating to benchmark-size global Sukuk trust
certificates issued by Perusahaan Penerbit SBSN Indonesia III
(PPSI-III) as part of its expanded US$5 billion Sukuk Trust
Certificate Program. PPSI-III is a fully owned special purpose
vehicle of the Republic of Indonesia (BB+/Stable/B; axBBB+/axA-2),
established solely for the program.
S&P rates this issue on par with the sovereign's other commercial
financial obligations. This is based on the government's
undertaking that trust certificates issued under the program will
be treated as direct, unconditional, unsecured, and general
obligations of Indonesia. These obligations will rank equal in
right of payment with all other unsecured and unsubordinated
external indebtedness of the sovereign.
The rating on the trust certificates also incorporates the
undertaking that the government is obliged to make all payments to
PPSI-III to ensure that the issuer has sufficient funds to make
full and timely periodic distribution and principal payments to
certificate holders.
The sovereign credit ratings on Indonesia reflect the economy's
low per capita income, a relatively weak policy environment, and
rising external leverage from a moderate level. These rating
constraints are weighed against the country's well-entrenched
cautious fiscal management and resultant modest general government
debt and interest burden, which make for a favorable debt profile.
The stable rating outlook on the sovereign reflects S&P's view
that the weak policy environment and external pressures are fairly
balanced against Indonesia's strong growth prospects, conservative
fiscal policy, and favorable debt trajectory.
S&P may raise the ratings if reforms, such as a subsidy
rationalization, suggest that fiscal and external vulnerabilities
are sustainably reduced, the sovereign's balance sheet improves,
the external debt burden declines, or if structural reforms unlock
faster economic growth.
Conversely, S&P may lower the ratings if renewed fiscal or
external pressures are not met with timely and adequate policy
responses, or if future policies endanger strong growth prospects
or the positive fiscal and debt trajectories.
====================
N E W Z E A L A N D
====================
ROSS ASSET: David Ross Remanded to Appear in Court
--------------------------------------------------
stuff.co.nz reports that the former manager of investment firm
Ross Asset Management, David Ross, charged over the loss of
millions in investors' funds, was remanded to appear in court last
week.
Mr. Ross, 63, faces five Serious Fraud Office charges of false
accounting and fraud, the report relates.
According to stuff.co.nz, the Financial Markets Authority has laid
three charges of providing a financial service when he was not
registered to do so, making false or misleading statements to get
authorization as a financial adviser and supplying information to
the authority that he knew to be false or misleading.
He has not pleaded to the charges, the report says.
stuff.co.nz says Wellington District Court judge Peter Hobbs
remanded Mr. Ross on bail for one week.
Mr. Ross is alleged to have lured new investors to his Ross Asset
Management fund with promises of returns of up to 30 per cent a
year, according to stuff.co.nz.
He allegedly used the money to pay those getting out of the scheme
and to fund his lavish lifestyle.
The alleged Ponzi scheme is supposed to have been worth
NZ$400 million, 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).
=================
S I N G A P O R E
=================
GLOBAL A&T: Moody's Affirms B1 and B2 Ratings; Outlook Negative
---------------------------------------------------------------
Moody's Investors Service has changed to negative from stable the
outlook of Global A&T Electronics Limited's B1 corporate family
rating and the B1 rating of its $625 million first lien senior
secured notes due 2019.
Moody's has also affirmed both ratings and the B2 rating for
GATE's existing second lien facilities totaling $543 million due
2015.
Ratings Rationale:
"The outlook change reflects GATE's weaker-than-expected operating
performance, primarily due to weakness in demand across its
assembly-centric analogue and memory businesses -- which accounted
for about half of its 1H2013 revenue," says Annalisa Di Chiara, a
Moody's Vice President and Analyst, "margins were also affected by
a less favorable product mix."
GATE reported revenues of $394 million for 1H2013 compared to $478
million for 1H2012, representing an 18% decline. The assembly
segment, which contributed near 67% of revenues for 1H2013,
contracted by $60 million, in part because Nanya Technologies
Corp., one of GATE's top clients, shifted its strategy away from
the commodity dynamic random-access memory(DRAM) business.
GATE's margins and operating cash flow are also sensitive to
slight changes in sales and utilization.
"The deteriorating operating results also highlight GATE's high
level of operating leverage -- reflecting its test-weighted
business model -- and the significant cash obligations from a
heavy debt load," adds Di Chiara.
The company's financial profile -- adjusted Debt/EBITDA of 5.2x --
is also weak relative to Moody's expectations, which included
leverage trending toward the 4.5-4.7x range by year-end.
Nonetheless, Moody's draws certain comfort from its strong balance
sheet liquidity (with approximately $220 million in cash on hand)
and back-up liquidity in the form of a $125-million undrawn
committed revolving facility.
GATE's ratings could also be downgraded if 1) GATE's balance sheet
liquidity materially deteriorates due to higher-than-expected cash
burn, (2) profitability declines, leading to further deterioration
in its financial profile, such that Debt/EBITDA remains at or
above 5.25x through 2H2013, EBITDA margins fall below 28%, or cash
flow from operations (after dividends) over capex remains below
120% for a sustained period, or (3) there is further evidence of a
weakening competitive position or loss of market share.
On the other hand, the rating outlook could return to stable if
GATE improves its operating performance, such that adjusted
debt/EBITDA trends toward 4.5x and EBITDA to interest coverage
exceeds 2.5-3.0x on a sustained basis.
The principal methodology used in this rating was the Global
Semiconductor Industry Methodology published in December 2012.
Global A&T Electronics Ltd is a leading provider of semiconductor
assembly and test services operating under the name UTAC with
manufacturing facilities in Singapore, Taiwan, Thailand and China.
UTAC was privatized through a leverage buy-out by a private equity
group led by TPG Capital and Affinity Equity Partners in October
2007.
================
S R I L A N K A
================
ASIAN ALLIANCE: Fitch Publishes 'B' IFS Rating
----------------------------------------------
Fitch Ratings Lanka has published Sri Lanka-based Asian Alliance
Insurance's (AAIP) Insurer Financial Strength (IFS) Rating of 'B'.
The agency has also published the National Insurer Financial
Strength Rating and the National Long-Term Rating of 'BBB+(lka)',
respectively. All the ratings are on Stable Outlook.
Key Rating Drivers
AAIP's ratings reflect Fitch's expectation of operational
assistance and synergistic benefits from its ultimate parent,
Softlogic Holdings Plc (SHP; A-(lka)/Stable) based on its 41.54%
effective ownership. The ratings also reflect AAIP's modest but
growing market share and its somewhat weak capitalisation due to
aggressive top line growth.
The company has a competitive advantage in tapping SHP's customer
base in healthcare and vehicle leasing and in accessing its retail
outlets and branches across the country. AAIP has 36 branches and
supplements non-life distribution by leveraging off 19 SHP
outlets. The company expects to enhance its reach in Sri Lanka
with a further 30 to 50 outlets by 2015.
AAIP's regulatory solvency for the life segment at end-H113
improved to 2.44x from 1.88x in 2012, following an allocation of
LKR500m of AAIP's total capital to the life business. This has
supported premium growth and will also facilitate the anticipated
split of life and non-life businesses as required by regulation.
For non-life the solvency ratio deteriorated to 1.4x at end-H113
from 2.37x in 2012, mainly due to aggressive top line growth. Both
ratios currently meet the regulatory requirement and the company
has expressed its commitment to improve the non-life solvency
ratio to above 3x by end-2013.
In 2012, gross written premium (GWP) in life grew 28.8%, supported
by new business, and non-life GWP grew 89.8% on account of rapid
growth in motor and health insurance. These compare with an
industry GWP growth of 6.6% and 14.7% for life and non-life,
respectively. Fitch expects the aggressive top line growth to
continue to put pressure on AAIP's solvency ratios.
AAIP's investment portfolio remains heavily exposed to equity at
26.6% of total invested assets, albeit reduced from 37.6% in 2011.
Improvements in the loss ratio (2012: 75.4%, 2011: 78.1%) and
expense ratio (2012: 44.3%, 2011:50.8%) resulted in a drop of the
combined ratio to 128.3% (2011: 136.6%). Nevertheless, this is
still high compared with an industry average of 105%. Management
intends to concentrate on group-related businesses to reduce the
loss ratio. Fitch expects improvements in the combined ratio to be
slow given its rapid business growth and intense price competition
in the non-life business.
Established in 1999, AAIP is a composite insurer accounting for
less than 3% of industry assets at end-2012. In 2011, the company
became a part of SHP, a diversified conglomerate. In early 2013
strategic investors, Deutsche Investitions- und
Entwicklungsgesellschaft and Financierings-Maatschappij voor
Ontwikkelingslanden N.V. bought 38% of AAIP from Soft Logic
Capital.
Rating Sensitivities
The ratings may be upgraded on more stable contribution from
AAIP's life and non-life operations, resulting in more sustained
pre-tax income while strengthening its market share.
The National Ratings could be downgraded if AAIP's regulatory
solvency ratios weaken and remain below its management-committed
internal thresholds of 2x for life and 3x for non-life.
A weakening of AAIP's strategic importance to SHP, a significant
reduction in parent ownership or a weakening of SHP's credit
profile could also result in a downgrade of AAIP's ratings.
===============
X X X X X X X X
===============
* Policy Mgmt. Key to Economic Stability in India and Indonesia
---------------------------------------------------------------
Policy management will be the key factor in determining whether
economic and financial stability is maintained in India and
Indonesia following the intensified pressure on currencies and
asset prices. These pressures have exceeded those of other
emerging Asian economies, but Fitch Ratings does not view these
developments as a trigger for rating action at this point. The
ratings already incorporate both a recognition of vulnerabilities
and some tolerance for volatility in market conditions.
Nonetheless, market anticipation of Fed tapering appears to have
prompted some shift in investor perceptions of the risks.
Moreover, the current market volatility could persist for a while
in view of continuing uncertainty over the timing and magnitude of
an eventual unwinding of global central banks' quantitative
easing.
The sharp weakening of both the Indian rupee and the Indonesian
rupiah reflect large or growing current account deficits whose
funding has been complicated by a reversal of global portfolio
capital. Demand growth in excess of current supply-side
capabilities could lead to a further widening in external
imbalances. Moreover, rapid private-sector credit growth, widening
fiscal deficits or sustained higher inflation could lead to a
broader and more sustained loss of confidence among investors.
This could potentially undermine economic and financial stability,
and ultimately lead to negative rating action.
Conversely, demonstration by the authorities that they remain
committed to managing policy consistent with sustainable growth
would support credit profiles.
"We believe there are three key reasons for maintaining a Stable
Outlook on both these countries' 'BBB-' sovereign credit ratings.
First, foreign-exchange reserves have come under pressure, but are
still sizeable. Indonesia's reserves, at USD93bn at end-July (down
from USD106bn a year ago), provide 4.5 months of import cover.
India's foreign-exchange reserves have also fallen - to USD279bn
as of mid-August (down from USD291bn a year ago), but still
provide around 5.5 months of import cover. In both countries,
foreign-exchange reserves remain higher than residual maturity
short-term debt," Fitch says.
"Second, both countries have adjusted their economic policies. In
India, we expect fiscal policy restraint to persist, in line with
last year's result, with the budget deficit remaining within 5% of
GDP. Indonesia's policy rates have been raised by 75bp since May,
and the fiscal deficit is likely to remain around 2% of GDP.
"Fitch believes a central factor will be the strength of official
commitment to managing demand so as to deliver sustainable growth
without an intensification of vulnerabilities - such as fiscal
deficits, inflation and/or external imbalances.
"Lastly, structural reforms which may be politically difficult to
achieve - such as fuel subsidy reforms - are being undertaken in
both countries, and these should help to shore up public finances
over the medium-term, potentially supporting domestic savings and,
ultimately, reducing external deficits. Additional supply-side
reforms could boost sustainable growth rates in both countries and
attract greater foreign investment inflows, but Fitch expects
these will take more time to implement. Such initiatives would be
credit-supportive. Fitch does not expect near-term implementation
of large-scale supply-side reforms in either country in view of
approaching elections in H114.
Fitch's Asia-Pacific Sovereign team will be hosting a
teleconference on Aug. 26, 2013, at 2:30 p.m. Hong Kong/Singapore
time to discuss the above issues and other credit developments.
Details are available at
* Reinsurers' Underwriting Gains Offset By Unrealised Losses
------------------------------------------------------------
Fitch Ratings says reinsurers' solid underwriting gains in H113
were offset by increased unrealised investment losses, according
to a newly-published report.
The global reinsurers that Fitch rates improved their underwriting
combined ratio to 85.9% in H113, compared with 87.7% in H112, as
catastrophe-related losses were manageable and loss reserve
development remained favourable.
The global reinsurance industry experienced below-average natural
catastrophe losses of USD13bn in H113, below the 10-year average
of USD22bn. The majority of losses were from flooding in Europe,
Canada and Australia, and severe thunderstorms in the US.
Solid underwriting profitability was offset by increased
unrealised investment losses on fixed maturities, resulting in
shareholders' equity growth of only 1.3% for non-life reinsurers
during H113. Underwriting opportunities remained somewhat limited,
resulting in only marginal growth in premiums written.
Several individual reinsurance product lines continued to
experience unfavourable reserve development during H113, primarily
longer-tail casualty and liability lines.
However, earnings continue to be supported by surpluses from
prior-year reserves. Reserve releases were equivalent to 6.4% of
earned premiums in H112, against 6.6% at end-2012.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, Frauline S. Abangan,
and Peter A. Chapman, Editors.
Copyright 2013. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-241-8200.
*** End of Transmission ***