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                      A S I A   P A C I F I C

           Monday, September 2, 2013, Vol. 16, No. 173


                            Headlines


A U S T R A L I A

AEMS: Two Strip Clubs in Administration, Faces AU$3.7MM Tax Bill
BF GROUP: In Liquidation; Workers Lose Jobs
BLEACH GROUP: Placed Into Voluntary Administration
CHAKATE PTY: Edelsten-Owned Business Placed in Liquidation


C H I N A

SPG LAND: S&P Keeps 'B-' CCR on CreditWatch Positive
SUNAC CHINA: Lukewarm First Half Results No Impact on Ba3 CFR
* Rated Chinese Developers Continue Land Purchases Says Moody's


I N D I A

ASL INDUSTRIES: CARE Assigns 'BB' Rating to INR12.17cr Loans
CENTENARY POLYTEX: CARE Rates INR10.13cr LT Loans at 'B+'
CHANDRA FOODS: CARE Rates INR10.25cr LT Bank Loans at 'D'
CHANDRA NIRMAN: CARE Assigns 'BB-' Rating to INR7.5cr LT Loans
DE CONVERTER: CARE Assigns 'BB-' Rating to INR6.02cr LT Loans

EVEREST HOLOVISION: CARE Assigns 'B+' Rating to INR5.11cr Loans
JUPITER INT'L: CARE Cuts Rating on INR52.7cr LT Loans to 'BB+'
KAKHANI METAL: CARE Assigns 'B+' Rating to INR19cr LT Loans
ORIPOL INDUSTRIES: CARE Assigns 'B' Rating to INR8.96cr LT Loans
PARIXIT INDUSTRIES: CARE Cuts Rating on INR56.94cr Loans to 'BB'

PRABHAT ELASTOMERS: CARE Ups Rating on 8.5cr LT Loans to 'BB-'
PRINTWELL OFFSET: CARE Rates INR11.09cr LT Loans at 'B'
PUNEET AUTOMOBILES: CARE Rates INR20cr LT Loans at 'BB'
ROCKWOOL (INDIA): CARE Ups Rating on INR17.88cr Loans to 'BB+'
SHIV SHANKAR: CARE Assigns 'BB-' Rating to INR5.5cr LT Loans

TRANSWAYS EXIM: CARE Assigns 'BB' Rating to INR9.4cr LT Loans
* Fitch Says Rupee Depreciation Will Add to Indian Banks' Woes
* Rupee Impact Highest for Indian Downstream National Oil


J A P A N

NAKAMA RE: S&P Assigns 'BB+' Rating to Sr. Secured Notes


M O N G O L I A

MONGOLIAN MINING: S&P Lowers Corporate Credit Rating to 'B-'


X X X X X X X X

* Fitch Says Global Reinsurance Outlook Remains Stable


                            - - - - -


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


AEMS: Two Strip Clubs in Administration, Faces AU$3.7MM Tax Bill
----------------------------------------------------------------
Sarah Danckert at The Australian reports that two Sydney strip
clubs owned by the Hardin family -- Men's Gallery and Pure
Platinum, located at opposite ends of Pitt Street have been placed
into administration after being slapped with a AU$3.7 million bill
from the tax man.

Both Men's Gallery and Pure Platinum are a part of the Hardin
family's suite of strip clubs operating under the Administration
Entertainment Management Service, according to The Australian.
AEMS is not in administration.

The Australian notes that the two venues, specializing in table
top dancers, are owned and operated by Vanessa Hardin, daughter to
gaming identity and pole-dancing bar tsar Bruce Hardin and sister
to well-known criminal defense lawyer Paul Hardin.

The report relates that both venues are still open for business
after Ms. Hardin recently voluntarily called in administrators
from Hall and Chadwick to the two separate corporate entities
behind each venue.

The report discloses that documents from a recent creditors
meeting show that the entity behind each club, Millino, which
trades as Men's Gallery, and Pallin, which trades as Pure
Platinum, together owe creditors AU$6.8 million.  The bulk of that
bill is to the Australian Taxation Office, the report says.

The report relays that the corporate entities that own two other
Hardin family strips clubs, Dancers Cabaret and the Illinois Hotel
at Five Dock, are also not in administration.  Those businesses
are operated by another Hardin sibling, Christian Paris Hardin,
the report adds.


BF GROUP: In Liquidation; Workers Lose Jobs
-------------------------------------------
Emma Spillett at Illawarra Mercury reports that former Bon Aroma
restaurant head chef Adam O'Hara cooked thousands of meals at the
award-winning eatery, helping it secure several regional awards
and the title of Australia's best pizza restaurant in 2011.

But last month, Mr. O'Hara was left jobless and thousands of
dollars out of pocket for unpaid staff entitlements and
superannuation when the restaurant suddenly shut its doors, the
report says.

According to the report, the company behind the eatery, BF Group
Pty Ltd, went into voluntary liquidation on August 5, owing
AUD419,000 to the tax department and more than AUD17,000 in unpaid
staff entitlements.

The Mercury relates that Mr. O'Hara, who is owed nearly AUD8,000
in unpaid entitlements, said the debt was a "kick in the guts" as
he had worked tirelessly to help make the eatery an award winner.

Liquidator Cliff Sanderson met with several ex-employees on August
27 at a creditors' meeting, the report says.

While a full investigation into the company's financial affairs is
yet to be conducted, Mr. Sanderson said it was likely unpaid staff
entitlements would be "higher" than the AUD17,000 originally
flagged, according to the report.

The company also owes AUD419,000 to the tax department and
AUD1,500 to Origin Energy and Telstra, the Mercury adds.


BLEACH GROUP: Placed Into Voluntary Administration
--------------------------------------------------
Herald Sun reports that Ksubi'S parent company Bleach Group has
been placed into voluntary administration.

The Sydney fashion house, which owns Insight, Something Else and
Ksubi, said the move was unfortunate but the jobs of its 100
workers were secure, according to Herald Sun.

"The need for a voluntary administration, which we attribute
mainly to China supply chain problems, is regrettable," the report
quoted Bleach Group Chief Executive Officer Mark Byers as saying.

Herald Sun notes that the company's woes are the latest in a
string of fashion companies which have collapsed or come close to
closing including the now defunct Lisa Ho label and brands Little
Joe Woman, Bettina Liano and Kirrily Johnston which were all
placed in voluntary administration in the past three years.

Herald Sun says that Bleach Group still owes money from the
purchase of Ksubi following its liquidation in 2009 and at June
this year only a portion of the AU$4.82 million amount had been
paid to the secured creditor Westpac.

Mr. Byers, the report discloses, said the voluntary administration
was a positive for the business, saying a US private equity firm
had coughed up some cash to keep the brands going but he declined
to name the firm or elaborate on the size of the cash injection.

"The outcome is a positive one for the Ksubi and Insight brands,
our domestic and international employees, contractors and sub-
contractors, retail and wholesale distribution partners and the
wider Australian fashion industry," the report quoted Mr. Byers as
saying.

Bleach said after failures in China, it had found a new offshore
supply chain after problems caused a delay in the production of
Insight and Ksubi clothing and accessories, the report relays.

But Mr. Byers said new season stock would be rolled out on time,
the report adds.


CHAKATE PTY: Edelsten-Owned Business Placed in Liquidation
----------------------------------------------------------
Chris Vedelago and Mark Hawthorn at Myall Coast Nota report that
Geoffrey Edelsten's business empire is in financial trouble again,
with the flamboyant entrepreneur and former doctor losing control
of one of his companies after failing to pay more than AUD256,000
in taxes.

The report relates that the run-in with tax authorities comes as
Mr. Edelsten apparently continues to flout corporate regulations
requiring the disclosure of the financial records of his charity
Great Expectations Foundation, which solicited donations from
celebrity guests at his 2009 wedding.

According to the report, Victoria's State Revenue Office won its
bid to have the company Chakate Pty Ltd declared insolvent in May
after it repeatedly failed to hand over more than AUD250,000 in
payroll taxes, penalties and interest.

Liquidator Pitcher Partners has since found Chakate has no assets
and collapsed as a result of "poor financial control, including
[a] lack of records" and "poor strategic management" by
Mr. Edelsten, the company's sole director, secretary and
shareholder, Myall Coast Nota relays.

Preliminary investigations show Chakate owes at least AUD264,296
to creditors, the report discloses citing documents filed with the
Australian Securities and Investments Commission.

Webb Korfiatis, Mr. Edelsten's lawyers, said Chakate had no
employees and held no cash at any time, and the first report by
the liquidator was completed "quickly and without much
information," the report adds.



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


SPG LAND: S&P Keeps 'B-' CCR on CreditWatch Positive
----------------------------------------------------
Standard & Poor's Ratings Services said that it had kept its 'B-'
long-term corporate credit rating and its 'cnB-' long-term Greater
China regional scale rating on SPG Land Holdings Ltd. on
CreditWatch with positive implications.  S&P also maintained the
CreditWatch status on the 'CCC+' issue rating and the 'cnCCC+'
long-term Greater China regional scale rating on the Chinese
property developer's outstanding senior unsecured notes.  S&P
initially placed all the ratings on CreditWatch with positive
implications on May 9, 2013.

"We kept the ratings on CreditWatch with positive implications to
reflect our view that SPG Land's credit profile is likely to
improve because of significant support from its new controlling
shareholder Greenland," said Standard & Poor's credit analyst
Matthew Kong.

SPG Land's liquidity pressure has eased substantially following
the company's acquisition by China-based Greenland Holding Group
Co. Ltd. (Greenland), which has a much stronger credit profile.
SPG Land received about Hong Kong dollar 3 billion share
subscription proceeds from Greenland, a Shanghai government-owned,
large-scale, leading Chinese developer.  S&P is still assessing
the magnitude of the impact of the acquisition on SPG Land's
credit profile.  SPG Land is in the process of changing its name
to Greenland Hong Kong Holdings Ltd.

SPG Land's contract sales of Chinese renminbi 1.91 billion
(47.8% of its full-year budget) in the first seven months of 2013
met S&P's expectation.  The company has significant short-term
debt and considerable construction costs to pay.

"We aim to resolve the CreditWatch within the next three months
after we have more clarity on the extent to which the Greenland
deal will support SPG Land's credit profile," said Mr. Kong.

S&P could raise the rating on SPG Land by one or more notches if
it believes that the company's credit profile will improve
materially as a result of parental support from Greenland.


SUNAC CHINA: Lukewarm First Half Results No Impact on Ba3 CFR
-------------------------------------------------------------
Moody's Investors Service says that Sunac China Holdings Limited's
moderate financial results for 1H 2013 will not immediately impact
its Ba3 corporate family rating and stable outlook.

"Despite a 99% year-on-year increase in revenues in the first half
of the year, Sunac's financial profile slightly weakened due to
its lower profit margins and higher reported debt level," says
Franco Leung, a Moody's Assistant Vice President and Analyst.

"Nonetheless, its credit profile remains consistent with its Ba3
rating category," adds Leung.

Sunac's increase in revenues -- to RMB8.6 billion in 1H 2013 from
RMB4.3 billion in 1H 2012 -- was through pre-sold properties
delivery. However, its gross margin dropped significantly to 20%
from 31%, mainly because of the recognition of low margin projects
acquired from Greentown China Holdings Ltd. (B2 positive), as well
as the increase in fair value of the acquired projects, which
constituted part of the cost of sales upon delivery.

At the same time, Sunac's reported debt increased to RMB24.8
billion in 1H 2013 from RMB21.7 billion at end-2012. As a result,
its adjusted EBITDA/interest ratio fell to about 2.1x for the 12
months to June 2013 from 2.5x in all of 2012. On the other hand,
its adjusted debt/capitalization ratio of around 61% was at a
similar level to its result in 2012.

Moody's expects the company's revenues to grow strongly in the
next 12-18 months due to the likely robust delivery of projects
based on Sunac's strong contract sales of RMB35.6 billion in 2012
and RMB23.4 billion for the first seven months of this year.

In addition, its gross margin is unlikely to decline considerably
from the current low level at least in the next 12-18 months.

Consequently, Moody's expects Sunac's key credit metrics to remain
consistent with its Ba3 rating level. Specifically, Moody's
believes Sunac's adjusted debt/total capitalization will measure
55%-60% in the next 12-18 months, and its adjusted EBITDA/interest
will range between 2.0x and 2.5x.

The company had adequate liquidity as of June 2013. Its cash on
hand of RMB14.5 billion, together with operating cash inflows ,
will be sufficient to cover short-term maturing debt of RMB6.6
billion and unpaid land premiums of around RMB10 million over the
next 12 months.

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

Sunac is an integrated residential and commercial property
developer, with ongoing or completed projects in China's main
regions of Beijing, Tianjin, Shanghai, Chongqing and Hangzhou. The
company develops a wide range of property including high-rise and
mid-rise residences, detached villas, townhouses, retail
properties, offices and car parks.

Sunac was incorporated in the Cayman Islands on April 27, 2007 and
listed on the Hong Kong Exchange on October 7, 2010. At end-2012,
it owned 51 projects and had a land bank of 16.5 million square
meters.


* Rated Chinese Developers Continue Land Purchases Says Moody's
---------------------------------------------------------------
Moody's Investors Service says its rated developers continued
their active land acquisitions in July and August.

"We expect them to remain active in acquisitions in the coming 3-6
months, as they replenish their land banks to support their long-
term growth plans," says Kaven Tsang, a Moody's Vice President and
Senior Analyst.

"While their liquidity positions will remain adequate, thanks to
their strong contract sales over the past 6-12 months and offshore
fund raising earlier this year, their new funding needs for
constructions will remain strong over the next 6-12 months," says
Tsang.

"Aggressive acquisitions by smaller developers, such as, Yuzhou
Properties Company Limited (B1 stable) and China Aoyuan Property
Group Limited (B2 stable), could weaken their credit profiles, "
he adds.

Tsang was speaking on the just-released edition of Moody's China
Property Focus Newsletter.

The year-on-year growth on nationwide cumulative contracts sales
for the first seven months of 2013 remained strong at 39.9%,
supported by solid underlying demand for residential houses and
better sentiment.

However, Moody's notes that this growth rate is lower than the 46%
recorded in H1 2013, reflecting the absorption of pent-up demand.

Year-on-year sales growth for the rest of 2013 will likely prove
milder as the Chinese economy slows, in contrast to H2 2012, when
the property market enjoyed a strong recovery.

Many of the 19 rated developers that Moody's tracks had strong
contract sales performance in the first seven months.

These companies, including China Overseas Land and Investment
Limited (COLI, Baa1 stable), Poly Real Estate Group Co Ltd (Baa2
stable), Country Garden Holdings Company Limited (Ba3 positive),
Shimao Property Holdings Limited (Ba3 positive), China SCE
Property Holdings Limited (B1 stable), Kaisa Group Holdings
Limited (B1 stable) and Greentown China Holdings Limited (B2
positive), are likely to meet their full-year sales targets.

On the other hand, Glorious Properties Holding Limited (B3
negative) and Powerlong Real Estate Holdings Limited (B3 positive)
had weaker sales than last year.

They will face challenges in meeting their sales targets, and
which could in turn further weaken their financial and liquidity
profiles.

Property prices also continued to grow strongly in China's 70
major cities.

The number of cities with year-on-year growth remained at 69 in
July, unchanged from June, while the number of cities with price
gains of more than 5% year-on-year increased to 52 from 47 in
June.

The price growth continued to be strong in first-tier cities.
Beijing and Guangzhou reported the highest growth in property
prices, at 18.3% and 17.4% respectively, followed by 17% in
Shenzhen and 16.5% in Shanghai.

Further property price growth in these cities will affect home
affordability, which in turn could invite more government measures
to cool the sector down.



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


ASL INDUSTRIES: CARE Assigns 'BB' Rating to INR12.17cr Loans
------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of ASL Industries Pvt Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities      12.17      CARE BB Assigned
   Short-term Bank Facilities      0.50      CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of ASL Industries Pvt
Ltd are primarily constrained by its below average financial risk
profile marked by the small scale of operations, low profitability
margins, weak debt coverage indicators and stretched liquidity.
The ratings are further constrained by the susceptibility of
profits to the raw material price fluctuation, high revenue
dependence on a single customer - Tata Motors Ltd and its presence
in a competitive and fragmented industry.
The above mentioned constraints far offset the benefits derived
from the long track record of operations, experience of the
management in the auto component industry and established
relationship with TML.

The ability to scale up its level of operations with
diversification in customer base along with an improvement in
profitability and the ability to manage working capital
effectively would be the key rating sensitivities.

ASL Industries Pvt Ltd, incorporated in February 1992 as Ajanta
Composite Pvt Ltd by the Mukherjee family of Kolkata, for
manufacturing fibre glass and bakelite components. Subsequently
in 2002, it shifted to the manufacturing of auto components upon
acquisition by Mr. Dilip Kumar Goyal of Jharkhand and was
rechristened to its present name.  The company is engaged in the
manufacturing of auto components such as kit bell crank lever,
panel side outer, bumper cross member, etc, which is mainly used
in medium and heavy commercial vehicles (M&HCV). AIPL primarily
supplies auto components to TML (rated CARE AA) for M&HCV segment.
The manufacturing facility of the company is located at Gamharia,
Jamhsedpur, and is also accredited with quality systems
certifications of ISO: 14001:2004, BS OHSAS 18001:2007 & TS 16949.

During FY13 (refers to the period April 1 to March 31), AIPL had
reported a total operating income of INR40.6 crore (as against
INR53.1 crore in FY12) and net loss of INR0.7 crore (as against
PAT of INR0.4 crore in FY12).


CENTENARY POLYTEX: CARE Rates INR10.13cr LT Loans at 'B+'
---------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Centenary
Polytex Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities      10.13      CARE B+ Assigned

Rating Rationale

The rating assigned to the bank facilities of Centenary Polytex
Private Limited is constrained by its small scale of operations,
low and fluctuating profitability margins, leveraged capital
structure and weak debt coverage indicators. The rating is further
constrained by its presence in a highly fragmented industry
leading to intense competition and susceptibility of profitability
margins to volatile raw material prices coupled with low
bargaining power with the suppliers.  The aforesaid constraints
are partially offset by the strengths derived from the promoters'
experience and financial support.

The ability of CP to achieve the envisaged turnover and
profitability amidst the intense competition and efficiently
manage its working capital cycle are the key rating sensitivities.

Incorporated in 1989, Centenary Polytex Private Limited (CP) is
engaged in the manufacturing of Polypropylene (PP) / High density
polyethylene (HDPE)-based woven fabrics and sacks since 2010,
which mainly find application in the agro and fertilizer industry.
The company has an installed capacity of 2,400 metric tonnes per
annum (MTPA) at the Kheda District of Gujarat. CP sources its
basic raw material ie PP granules domestically and sells the
manufactured woven fabrics and sacks primarily in South Africa and
the Gulf region.

During FY12 (refers to the period April 01 to March 31), CP
reported a total operating income of INR32.16 crore (up by 49.79 %
vis-a-vis in FY11) and PAT of INR0.21 crore (up by 16.67 % vis-a-
vis FY11). Furthermore as per 10MFY13 results, CP has reported a
total income of INR50 crore.


CHANDRA FOODS: CARE Rates INR10.25cr LT Bank Loans at 'D'
---------------------------------------------------------
CARE assigns 'CARE D' rating to the bank facilities of Chandra
Foods Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       10.25     CARE D Assigned

Rating Rationale

The rating of Chandra Foods Pvt Ltd factors in the ongoing delays
in debt-servicing on account of the stressed liquidity position of
the company.

Chandra Foods Private Limited incorporated on May 11, 2010, was
promoted by Mr. Shyam Lal Agarwal, Mr Chandrakala Devi,
Mr. Saurabh Agarwal and Mr. Sameer Agarwal of Chhattisgarh, all
belonging to the same family, with Mr Shyam Lal Agarwal being the
main promoter. CFPL is engaged in the production of carbonated
soft drinks, packaged drinking water and soda, having an installed
capacity of 100 Bottles Per Minute for carbonated soft drinks and
40 Bottles Per Minute for packaged drinking water. The company's
manufacturing unit is located at Raipur, Chhattisgarh and it
commenced operations since February 2012.

As per the audited results of 1MFY12 (refers to the period
March 1 to March 31), CFPL reported a net loss INR0.23 crore, on a
total income of INR0.63 crore. Furthermore, during FY13
(provisional), CFPL is stated to have achieved net sales of
INR15.48 crore.


CHANDRA NIRMAN: CARE Assigns 'BB-' Rating to INR7.5cr LT Loans
--------------------------------------------------------------
CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank
facilities of Chandra Nirman Pvt Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       7.5       CARE BB- Assigned
   Short-term Bank Facilities      7.0       CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Chandra Nirman Pvt
Ltd are primarily constrained by its below average financial risk
profile marked by the small scale of operations, low profitability
margins and elongated operating cycle. The ratings are further
constrained by its susceptibility to volatile input prices due to
the absence of price-escalation clause in a majority of the
contracts, concentrated client base, limited geographical presence
and its presence in a highly competitive and fragmented
construction industry.

The aforesaid constraints are partially offset by the experience
of the promoters in the construction industry, long track record
of operations, reputed clientele and its satisfactory order book
position demonstrating medium-term revenue visibility.

The ability of the company to consistently secure new orders &
timely execution of the same, improvement in the profitability in
wake of the increasing competition and effective working
capital management will be the key rating sensitivities.

Chandra Nirman Pvt Ltd was set up as a partnership firm in 1974 by
Mr. Shyam Lal Agarwal and his family members of Raigarh (CG). In
September 2005, the firm was converted into a private limited
company and was rechristened to its present name.

CNPL is a small-sized Chhattisgarh-based company, engaged in
providing different types of civil constructions in the segments
like roads, commercial & industrial buildings, bridges, power
projects, housing projects, etc. CNPL has, over the years,
completed a good number of small-sized and few medium-sized
projects for the government, public and private sector
organisations. The company mainly caters clients and projects
present in Chhattisgarh, Madhya Pradesh and Orissa.  The company
has a status of 'A-5' (highest in the scale of A1 to A5) class
contractor from PWD, Chhattisgarh.

During FY12 (refers to the period April 1 to March 31), CNPL
reported a total operating income of INR25.9 crore and a PAT of
INR0.4 crore. Furthermore, as per provisional FY13, CNPL has
reported total operating income of INR27 crore.


DE CONVERTER: CARE Assigns 'BB-' Rating to INR6.02cr LT Loans
-------------------------------------------------------------
CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank
facilities of De Converter India Private Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       6.02      CARE BB- Assigned
   Short-term Bank Facilities      0.12      CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of DE Converter India
Private Limited are constrained by its moderate scale of operation
with low profitability in an intensely competitive industry, below
average financial risk profile marked by leveraged capital
structure and constrained liquidity position. However, the ratings
drive strength from its long track record of operation, experience
of the promoters, satisfactory client portfolios albeit with
client concentration risk, satisfactory capacity utilization and
favorable demand outlook of the packaging industry. The ability of
DCPL to increase its revenue and profitability in a competitive
environment, improvement in capital structure and effective
management of working capital will be the key ratings
sensitivities.

DCPL, based in Kolkata (West Bengal), initially set up as a
partnership firm, 'M/s Converter India' by the Kundu family of
Baranagar, Kolkata, was reconstituted as a private limited company
with its current name in March 11, 1994. Since inception, DCPL is
engaged in the manufacturing of printed and laminated flexible
films and pouches used for packaging of food articles and consumer
goods. It mainly manufactures laminated packets or pouches as per
client demand and their specification. The sole manufacturing
facility of DCPL is located at Bally, Howrah, with an aggregate
installed capacity of 2,280 MTPA as on March 31, 2013.

Ensons Packaging & Printing Private Limited, engaged in the
business of packaging materials, was merged with DCPL on May 15,
2007 (approved by Kolkata High Court). During FY12 (refers to the
period April 1 to March 31), DCPL registered total income of
INR35.1 crore (INR30.1 crore in FY11) with PBILDT and PAT of
INR2.1 crore and INR0.4 crore (INR1.5 crore and INR0.2 crore in
FY11), respectively. As per the provisional results for FY13, DCPL
has reported a PBT of INR0.9 crore on total income of INR38.3
crore.


EVEREST HOLOVISION: CARE Assigns 'B+' Rating to INR5.11cr Loans
---------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' rating to the bank facilities
of Everest Holovision Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       5.11      CARE B+ Assigned
   Short-term Bank Facilities      0.80      CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Everest Holovision
Limited are constrained by relatively small scale of operation,
fluctuating profitability margins, leveraged capital structure,
weak debt coverage indicators and working capital-intensive nature
of operations. The ratings are further constrained by presence in
the highly fragmented holographic industry leading to an intense
competition.

The aforesaid constraints are partially offset by the strengths
derived from the long track record of the operations and
experienced management. The ability of EHL to achieve the
envisaged turnover and profitability amidst the intense
competition and efficiently manage its working capital cycle are
the key rating sensitivities.

Established as Ojasmit Holovision Limited in 1997, Everest
Holovision Limited an ISO 9001-2000-certified company is engaged
in the manufacturing of holographic solutions (holograms
stickers, holographic films, holographic integrated labels,
holographic stamping foils, holographic shrink sleeves,
holographic strip and holographic wads). EHL has its manufacturing
plant located at Silvasa with an installed capacity of 2,886 MTPA.
EHL's products find application in diverse field of printing,
pharmaceuticals, automobile and others. Furthermore, EHL's
products are generally used for brand establishment; brand
protection and promotional purposes.

The revenues are primarily earned from the domestic market with
exports constituting only 2% of total income for FY13
(provisional, refers to the period April 01 to March 31). Around
99% of the company's raw material (high quality polyester films,
adhesives and release liner) requirements are met indigenously.
During FY13 (refers to the period April 1 to March 31), EHL
reported total operating income of INR15.01 crore (up by 2.60 %
vis-a-vis in FY12) and net loss of INR0.64 crore (vis-a-vis a net
profit of INR0.45 crore in FY12). Furthermore, during Q1FY14, EHL
has posted sales of INR4.59 crore.


JUPITER INT'L: CARE Cuts Rating on INR52.7cr LT Loans to 'BB+'
--------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Jupiter International Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities        52.7     'CARE BB+' Revised
                                             from CARE BB

   Short-term Bank Facilities       43.0     'CARE A4+' Revised
                                             from CARE A4

Rating Rationale:

The revision in rating takes into account improvement in financial
performance reflected through higher cash accruals in FY13 (refers
to period April 1, 2012 to March 31, 2013), initiatives taken to
diversify into strategic high margin products and continuous
support from experienced promoters.  However, the ratings are
constrained by stressed liquidity position, high leverage ratios,
significant exposure in subsidiary company, low margins with
exposure to volatility in raw material & finish goods prices,
exposure towards foreign exchange fluctuation risk and intense
competition amidst subdued industry scenario for domestic IT
peripherals industry. The aforesaid ratings also take into account
the satisfactory track record of the company, established brand in
domestic market and leading distributor status of reputed
international brands in India. Improvement in profitability and
capital structure in JIL through new initiatives undertaken by the
management and improvement in profitability in subsidiary are the
key rating sensitivities.

Jupiter International Limited is engaged in manufacturing of CD-Rs
and DVD-Rs at its manufacturing facility at Baddi, Himachal
Pradesh, trading of computer peripherals and strategic products
(solar UPS, solar battery, Tablets and Toner cartridges
manufactured in China & Taiwan), in domestic market under brand
name of 'Frontech'. JIL is also engaged in distribution of
computer hardware & peripherals of international reputed brands in
domestic market. Trading of computer peripherals constituted about
70% of net sales in FY13.

JIL earned PBILDT of INR21.3 crore on net sales of INR159.9 crore
in FY13. During Q1FY14, as maintained by the management, the
company achieved net sales & PBILDT of INR40.1 crore and
INR5.7 crore respectively.


KAKHANI METAL: CARE Assigns 'B+' Rating to INR19cr LT Loans
-----------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Kakhani Metal Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities        19       CARE B+ Assigned
   Short-term Bank Facilities        4       CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Kakhani Metal
Private Limited are constrained by its working capital intensive
operations and stressed liquidity marked by an elongated operating
cycle. KMPL's modest scale of operations, low profitability
margins which are vulnerable to volatile metal prices, weak debt
coverage indicators and its high leverage further constrain the
ratings.

The above constraints far offset the benefits derived on account
of the vast experience of the promoters of KMPL in the metal
trading business.

The ability of KMPL to increase its scale of operations, improve
its profitability while managing the volatility associated with
the traded goods prices and improve its capital structure while
effectively managing its working capital requirements are the key
rating sensitivities.

Ahmedabad-based KMPL was incorporated as a private limited company
in June 2008 and commenced commercial operations in FY11 (refers
to the period April 1 to March 31). KMPL trades in metals such as
copper, aluminium, brass, nickel, lead, and zinc; however, more
than 90% of its revenue is derived from copper trading. Kakhani
Metal (KM, a proprietorship concern) had been in the same line of
business since 1990 and was managed by Mr Ashok Kakhani, one of
the promoters of KMPL.

As per the audited results for FY12, KMPL earned a PAT of INR0.50
crore on a total operating income of INR113.34 crore as against a
PAT of INR0.25 crore on a total operating income of INR28.19
crore in FY11. Furthermore, as per the provisional results for
FY13, it earned a PAT of INR0.59 crore on a total operating income
of INR114.68 crore.


ORIPOL INDUSTRIES: CARE Assigns 'B' Rating to INR8.96cr LT Loans
----------------------------------------------------------------
CARE assigns 'CARE B' & 'CARE A4' ratings to the bank facilities
of Oripol Industries Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       8.96      CARE B Assigned
   Short-term Bank Facilities      9.50      CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Oripol Industries
Ltd are constrained by its small scale of operation with low
profitability margin, presence in the highly competitive and
fragmented industry, susceptibility to fluctuation in raw material
prices, working-capital intensive nature of operations and weak
financial risk profile. The aforesaid constraints are partially
offset by the experienced promoters with long track record of
operation.

The ability of OPIL to improve its scale of operations and
profitability margin, along with efficient management of working
capital are the key rating sensitivities.

Oripol Industries Ltd, incorporated in July 1984 as Orissa
Polyjute Pvt Ltd, was promoted by one Mr. Amit Kumar Behera of
Balasore and is engaged in the manufacturing of Polypropylene (PP)
and high density polyethylene (HDPE) woven and non-woven sacks,
and trading of minerals and agro products. In 1995, the company
was converted into a public limited company and rechristened as
OPIL in the month of November. The company has a manufacturing
facility with an installed capacity of 1,314 MTPA of woven sacks
and 3,000 MTPA of newly installed capacity in March 2012, for non-
woven sacks at Balasore, Odisha. OPIL's products mainly find
application in the packaging of cements, chemicals, food grains,
coal, sugar, salt, fertilizers and also for covering of trucks,
wagons, ships, buildings, etc. The company mainly caters to the
domestic market.

Apart from this, the company does trading exports (in addition to
domestic trading) of various type of minerals like iron ore fines,
manganese ore, chrome ore, dolomite, etc to countries like China.
In FY12, the income from trading operation accounted 68.2% of
total operating income. The day-to-day affairs of the company are
looked after by Mr. Amit Kumar Behera, MD, with adequate support
from other two directors along with a team of experienced
personnel.

During FY12 (refers to the period April 1 to March 31), the
company reported PBILDT of INR1.63 crore (INR4.20 crore in FY11)
and PAT of INR(0.01) crore (INR1.86 crore in FY11) on a total
income of INR26.01 crore (INR61.59 crore in FY11). Furthermore,
the company has achieved an operating income and net loss of about
INR16.07 crore and INR2.40 crore, respectively, in FY13
(provisional).


PARIXIT INDUSTRIES: CARE Cuts Rating on INR56.94cr Loans to 'BB'
----------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Parixit Industries Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities      56.94      CARE BB Revised from
                                             CARE BBB-

   Short-term Bank Facilities     28.00      CARE A4 Revised from
                                             CARE A3

Rating Rationale

The revision in the ratings take into account cash loss reported
by Parixit Industries Ltd during FY13 (Provisional; refers to the
period April 1 to March 31) and its stretched liquidity position.

The ratings continue to remain constrained on account of
susceptibility of PIL's profitability to volatility in raw
material prices, large exposure towards its loss-making subsidiary
Bali Industries India Pvt Ltd (Bali; which had a negative net
worth as on March 31, 2013) and its working capital intensive
operations resulting from delay in subsidy receipts.  The ratings,
however, continue to derive strength from resourcefulness of its
promoters i.e. the Emtelle Group marked by regular infusion of
capital by the promoters and PIL's established operations in
manufacturing of irrigation-related products including Micro
Irrigation Systems (MIS) with good presence in Gujarat.

The ability of PIL to improve its profitability, improve its
liquidity through efficient working capital management and achieve
envisaged synergies from its investment in Bali would remain the
key rating sensitivities.

PIL was incorporated in 1989 as Parixit Plastics Pvt Ltd.
Subsequently, the name of the company was changed to PIL in the
year 2000. PIL is engaged in the business of manufacturing and
turnkey supply of Micro Irrigation Systems (MIS; includes Drip
Irrigation and Sprinkler Irrigation System) and a range of
Polyethylene Pipes (HDPE, LLDPE, PVC etc). PIL has its
manufacturing facilities located at Sanand, near Ahmedabad.
In June 2010, EMTELLE Holdings BV, the holding company of the
Emtelle group of Netherland, acquired 70% stake in PIL.
Subsequently, in July 2013, Emtelle increased its shareholding to
91% by infusing INR9.99 crore in the company. The Emtelle Group
(Emtelle) is a leading player in ducted network and blown fiber
solutions and provides end-to-end passive infrastructure solutions
in the fiber optics domain. PIL's irrigation products are similar
in design to Emtelle's products for ducted network solutions and,
hence, PIL also caters to the requirement of several customers of
Emtelle.

PIL exports Permanently Lubricated (PLB) HDPE ducts for Emtelle's
customers in different countries.  PIL has a 92% subsidiary named
Bali Industries India Pvt Ltd (Bali), which is engaged in the
business of manufacturing Permanently Lubricated HDPE ducts (PLB
HDPE ducts).

As per the provisional results for FY13, PIL reported a total
operating income of INR140.40 crore [FY12 (audited): INR147.63
crore] and net loss of INR9.55 crore [FY12: net loss of INR1.79
crore].


PRABHAT ELASTOMERS: CARE Ups Rating on 8.5cr LT Loans to 'BB-'
--------------------------------------------------------------
CARE revises/reaffirms the rating assigned to the bank facilities
of Prabhat Elastomers Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       8.50      CARE BB- Upgraded
                                             from CARE B+

   Short-term Bank Facilities     19.00      CARE A4 Reaffirmed

Rating Rationale

The revision in the long-term rating of Prabhat Elastomers Private
Limited is on account of the continuous growth in turnover,
improvement in the capital structure and diversification of
customer base with receipt of additional approvals.  The ratings
continue to be constrained by its small scale of operations,
leveraged capital structure, weak debt coverage indicators and
stretched working capital cycle resulting in high utilization of
working capital limits. Furthermore, PEPL's presence in a cyclical
industry with the regulatory risk constrains the rating.

The ratings continue to derive strength from the long track record
of operations, promoter's experience and their financial support.
Furthermore, the ratings continue to derive benefits from the
healthy operating margins.

PEPL's ability to efficiently manage the working capital cycle and
maintain the operating profitability margins are the key rating
sensitivities.

Incorporated in 1992, Prabhat Elastomers Private Limited) is
engaged in the manufacturing of rubber gaskets & primarily caters
to the portable, sewage water pipeline manufacturers and
household appliance manufacturers (ie pressure cooker). PEPL also
has plans to supply to the pharmaceutical and automobile
industries going forward. The manufacturing operations are
carried out in the plant located in Gujarat with an installed
capacity of 3,000 MT (increased from 2,400 MT).

During FY13 (refers to the period April 1 to March 31), PEPL
reported a total operating income of INR48.53 crore (up by 20%
vis-a-vis FY12) and PAT of INR1.73 crore (up by 16% vis-a-vis
FY12).  During Q1FY14, PEPL has posted a total operating income of
INR10.48 crore.


PRINTWELL OFFSET: CARE Rates INR11.09cr LT Loans at 'B'
------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Printwell
Offset.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       11.09     CARE B Assigned

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

Rating Rationale

The rating assigned to the bank facilities of M/s Printwell Offset
is primarily constrained by its very short track record of
operations, along with cash loss during FY13 (refers to the period
April 1 to March 31), raw material price fluctuation risk and its
presence in the fragmented and competitive industry.

The rating, however, continues to derive strength from the
promoter's long experience in the printing and packaging
industry.The ability of PWO to increase its scale of operations
and improve its profitability is the key rating sensitivity.

Rajkot-based PWO is established in October 2011, by four partners
viz Mr Kakadiya Jitendrabhai Jadavbhai, Mr Kakadiya Dharmeshbhai
Chhaganbhai, Ms Kakadiya Jayshreeben Mukeshbhai and Ms Kakadiya
Hiralben Hiteshbhai. The unit started its operations from January
2013, and is engaged in the manufacturing of paper packaging items
and various forms of printing on the packaging items like
catalogue printing, UV printing, emboss printing, 3D printing,
coated printing, etc.

During FY13, PWO reported a net loss of INR0.90 crore on a total
operating income (TOI) of INR6.09 crore.


PUNEET AUTOMOBILES: CARE Rates INR20cr LT Loans at 'BB'
-------------------------------------------------------
CARE assigns 'CARE BB' ratings to the bank facilities of Puneet
Automobiles Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities        20       CARE BB Assigned

Rating Rationale

The rating of Puneet Automobiles Private Limited is constrained by
low profitability margins, highly leveraged capital structure and
weakened demand outlook for the commercial vehicles in the near-
term.  However, the rating derives strength from the experienced
promoters, reasonable track record of operations of PAPL with
continuous growth in the scale of operations and long-standing
relationship with Tata Motors Private Limited.  The ability to
consistently scale-up the operations with improvement in the
profitability margins, overall gearing and in view of the
challenging industry scenario shall remain the key rating
sensitivities.

Puneet Automobiles Private Limited was incorporated in April 2004,
and was promoted by Mr. Prabash Mishra and his brothers,
Mr. Harish Mishra and Mr. Subhash Mishra, as an authorized dealer
for the sale of commercial vehicles of Tata Motors Limited, sale
of spare parts and servicing of vehicles in Varanasi (Uttar
Pradesh). PAPL is also into sale of old vehicles and sale of
'Nano', however, the contribution from the sale of these vehicles
is very small. The company derives approximately 91% of the total
revenues from the sale of vehicles, while the balance is
contributed by income from servicing, sale of spare parts and
incentives. PAPL operates three 3S (Sales, Service and Spare
parts) showrooms viz one each facility in Balia, Ghazipur and MAU
in Uttar Pradesh.

PAPL reported a PAT of INR1.25 crore on the total operating income
of INR220.55 crore in FY13 (refers to the period April 1 to March
31) (prov.) vis-a-vis PAT of INR0.91 crore on the total
operating income of INR203.66 crore in FY12 (Audited).


ROCKWOOL (INDIA): CARE Ups Rating on INR17.88cr Loans to 'BB+'
--------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Rockwool (India) Ltd.

                                Amount
   Facilities                 (INR crore)   Ratings
   -----------                -----------   -------
   Long-term Bank Facilities     17.88      CARE BB+ Revised from
                                            CARE BB

   Short-term Bank Facilities    11.00      CARE A4+ Revised from
                                            CARE A4

Rating Rationale

The revision in the ratings takes into account the improvement in
the operational performance of the company, infusion of equity by
the parent to support the operations during FY12 (refers to the
period January 1 to December 31) and improved financial risk
profile during 6MFY13 (Provisional).  The ratings also note the
waiver of interest payable on external commercial borrowings
(ECBs) extended by the holding company. However, the ratings
continue to be constrained by demand being affected by the
presence of similar and substitute products. The ratings are,
however, underpinned by the experience and strong holding company
and technical collaboration with Saint Gobain ISOVER. The ability
of RIL to increase the scale of operations with increase in
capacity utilisation post correction of technical issues at the
plants is the key rating sensitivity.

Rockwool (India) Limited is engaged in the manufacturing of rock
wool (also known as stone wool), a thermal, acoustic and fire
insulator. RIL manufactures and supplies customized and cost
effective, acoustical and fire-resistant insulation products. RIL
has two manufacturing plants each having installed capacity of
25,000 TPA near Hyderabad, Andhra Pradesh and in Silvassa. RIL is
a part of Alghanim Industries, based in Kuwait.

The company achieved total income of INR102.95 crore and incurred
loss of INR11.69 crore in FY12 (refers to the period January 1 to
December 31). Furthermore, RIL has achieved total income of
INR57.82 crore and incurred loss of INR2.58 crore in 6MFY13
(provisional).


SHIV SHANKAR: CARE Assigns 'BB-' Rating to INR5.5cr LT Loans
------------------------------------------------------------
CARE assigns 'CARE BB-' & 'CARE A4' ratings to the bank facilities
of Shiv Shankar Exim Pvt Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       5.5       CARE BB- Assigned
   Short-term Bank Facilities      9.5       CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Shiv Shankar Exim
Pvt Ltd are constrained by its small scale of operation with low
profitability margins, intense competition due to the
fragmented nature of industry, susceptibility to fluctuation in
traded products, foreign exchange fluctuation risk and working-
capital intensive nature of operations. The aforesaid constraints
are partially offset by the experienced promoters with a long
track record of operation, widely used traded products with high
demand and satisfactory leverage and interest coverage ratios.
The ability of SSEPL to improve its scale of operations along with
the profitability margins and efficient management of working
capital are the key rating sensitivities.

Shiv Shankar Exim Pvt Ltd, incorporated in August 1996 as GL
Hosiery Works Pvt Ltd, is promoted by one Patel family of Kolkata
and was initially engaged in the trading of garments. In July
2004, GLHWPL was rechristened as SSEPL and started the business of
importing and trading of wooden logs and timbers. The company
imports the logs primarily from countries like America, Africa,
Malaysia and Burma and sells it in the eastern part of India.

SSEPL is a closely-held company with all the directors from the
promoter's family. The day-to-day affairs of the company are
looked after by Mr. Nawin Patel, with adequate support from other
director - Mr. Kantilal Patel along with a team of experienced
personnel.

During FY12 (refers to the period April 1 to March 31), the
company reported a PBILDT of INR37.6 lakh (Rs.11.8 lakh in FY11)
and PAT of INR5.9 lakh (Rs.3.8 lakh in FY11) on a total income
of INR2,133.7 lakh (Rs.865.2 lakh in FY11). Furthermore, the
company has achieved an operating income of about INR3,186.1 lakh
in FY13 (provisional).


TRANSWAYS EXIM: CARE Assigns 'BB' Rating to INR9.4cr LT Loans
-------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Transways Exim Pvt Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       9.4       CARE BB Assigned
   Short-term Bank Facilities      0.4       CARE A4 Assigned

Rating Rationale

The ratings of Transways Exim Pvt Ltd are constrained by the low
margin nature of its business with lack of pricing power, lack of
any legal agreement with the Principals (Brand Owners),
sensitivity of the business to the Government regulations,
significant exposure in the associate company in the form of
corporate guarantee and moderate financial risk profile marked
by increasing business level with low profitability margin and
high gearing. The ratings, however, factor in the experience of
the promoters with long track record of operations, wholesale
dealership of reputed brands, increasing presence in the India
Made Foreign Liquor (IMFL) sector in Kolkata and its suburbs, high
entry barriers in the IMFL industry and favourable industry
scenario.

The ability of the company to improve its turnover and
profitability, and change in Government regulation relating to
additional duty imposition/ban on usage of alcohol would remain
the key rating sensitivities.

Transways Exim Pvt Ltd incorporated in October 1996, was promoted
by Mr. Nishu Nigam and Mr. Sandip Agarwal of Kolkata, West Bengal.
Since inception, the company is mainly engaged in the business of
distribution of IMFL in West Bengal, wherein, it caters to local
retail shops, bars and clubs. TEPL is a wholesale distributor of
various reputed players like Pernod Ricard India Pvt Ltd, Ailed
Blenders & Distillers Pvt Ltd, Bacardi Martini India Pvt Ltd and
Carlsberg India Pvt Ltd.

The product profile of the company consists of all types of IMFL
i.e. Whisky, Rum Vodka, Beer of the above mentioned companies with
major revenue contribution from the products of Ailed Blenders &
Distillers Pvt Ltd and Pernod Ricard India Pvt Ltd.

During FY12, TEPL achieved a PBILDT of INR2.4 crore (Rs.1.1 crore
in FY11) and a PAT of INR0.7 crore (Rs.0.6 crore in FY11) on the
total income of INR169.3 crore (Rs.147.3 crore in FY11).  As per
the FY13 provisional results, the company achieved a PAT of INR0.8
crore on total income of INR176.8 crore.


* Fitch Says Rupee Depreciation Will Add to Indian Banks' Woes
--------------------------------------------------------------
The sharp depreciation of the Indian rupee will add to credit
pressures on Indian banks, says Fitch Ratings. The current
economic slowdown is also likely to be deeper and longer than our
baseline expectations, adding to the pressures already faced by
the local banking sector.

The 21% depreciation of the rupee since 1 April is likely to
pressurize the financial performance of the Indian corporations
with unhedged foreign-currency borrowing. As a result, Indian
banks' asset quality could remain under prolonged pressure.
Moreover, the sharp weakening of the rupee, if not swiftly
reversed, will delay any chances of recovery in domestic demand.

Recent monetary measures to support the currency have raised the
likelihood of a further slowdown within the fiscal year ending
March 2014 (FY14). These policy measures, which have sharply
raised short-term rates, follow a sub-5% year-on-year GDP growth
rate over the past few quarters. These developments belie our
earlier expectation of a modest pick-up in India's economic
growth. They will also subdue any improvement in the growth rate
of loan books.

One likely result is that banks' earnings profiles will encounter
more pressure than previously anticipated. This is because of
weaker margins resulting from higher funding costs, and a lower
ability to pass on costs to the customer due to soft demand and
slowing loan growth.

Most recent RBI data on stressed assets (NPLs and restructured)
for the system was 10% of total loans. But this was before the
onset of the most recent fall in the rupee. Fitch's original
estimates of stressed assets in the system peaking in FY14 would
need to be revised, and is now likely to peak only in FY15. A more
prolonged deterioration in asset quality will also raise
provisioning requirements and weigh on banks' earnings profiles.

No bank is likely to be unscathed by recent events. But public
sector banks remain under relatively greater pressure. This is
because their (standalone) stress-absorption capacity is
comparatively lower than their private-sector peers, adding
further downward pressure on their Viability Ratings. However, as
most public-sector banks' IDRs factor in support from the
sovereign, the outlook at that level remains stable - in line with
that of the sovereign.

Overall, heightened credit pressures would add to concerns about
capital adequacy for certain parts of the system. That said,
recent statements by the authorities which recognize the need to
maintain the capital positions of public sector banks should prove
supportive.

There are two potential silver linings, however, amid the rising
credit pressure. First, the normal monsoons this year could put a
floor beneath slowing domestic demand, especially in the
agricultural sector. Second, greater recourse to bank borrowing by
Indian corporates which face sharply heightened pressure in the
local bond market, could also limit the risk of a slowdown in loan
demand greater than what might have been feared.


* Rupee Impact Highest for Indian Downstream National Oil
---------------------------------------------------------
Fitch Ratings has said that the depreciation of the Indian rupee
has varying levels of implications for rated energy & utilities
companies in India, but their ratings are not immediately
affected. The risks to standalone financial profiles are highest
for state-controlled petroleum marketing companies among the
Indian energy sector issuers currently rated by Fitch.

The Indian rupee has depreciated by over 25% versus the USD since
April 1, 2013. Fitch expects limited negative credit implications
for most of the rated issuers due to natural or financial hedges
or, in the case of utilities, tariff mechanisms that allow for
exchange rate fluctuations.

The rated oil & gas companies have a significant proportion of
foreign currency (FC)-denominated debt; however, they benefit from
varying degrees of natural hedges present in their operations.
Utility companies have a much lower proportion of FC debt, and at
the same time have the ability to pass on foreign exchange
fluctuations as part of their tariff-setting mechanisms, which
provides them with greater protection against the depreciation of
the rupee.

The majority-state owned oil refining and marketing companies -
Indian Oil Corporation Ltd (IOC, BBB-/Stable) and Bharat Petroleum
Corporation Ltd (BPCL, BBB-/Stable) - had over 50% of their total
debt in foreign currencies at FYE13. However, the computation of
the subsidy amount from the state to cover under-recoveries
arising from selling certain fuels below market prices is based on
USD terms. Because their refining margins are also linked to
regional refining margins denominated in USD, the profitability of
the refining operations will benefit from the rupee rout. Regular
increases in the price of diesel have reduced the under-
recoveries, and hence the subsidy requirement; however, the rupee
depreciation will reverse this trend. While further price
increases for diesel are being considered to reduce the subsidy
requirement, the quantum of such price increases remains
challenged by pressures on consumer inflation and political
dynamics in India.

Both IOC and BPCL have been almost fully compensated for their
under-recoveries in recent years by the direct subsidies from the
state as well as those from state-controlled upstream companies.
However, delays in receipt of state subsidies at a time of a
depreciating rupee could lead to higher working capital
requirements, debt and interest costs for state-owned downstream
operators. This can be further exacerbated if the downstream
entities are expected to bear a share of the under-recoveries.
However, Fitch currently believes these entities will have
sufficient access to funding sources, primarily the domestic
banking system to manage their liquidity requirements given their
strong state linkages. The ratings of IOC and BPCL are equalised
with that of the sovereign (BBB-/Stable).

Given the pressures on federal finances, is it also possible for
the state-linked upstream companies, whose cash generation is
unlikely to be negatively affected by the rupee depreciation, to
be required to increase their contribution towards downstream fuel
subsidies.

Within the oil and gas portfolio, GAIL (India) Ltd (GAIL, BBB-
/Stable) had the lowest proportion (around 30%) of FC debt at
FYE13, which it has partially hedged with interest rate swaps and
forward currency swaps. A majority portion of the hedging was done
in the past five months. Fitch does not expect GAIL's operating
cash flows to be impacted significantly due to the cost pass-
through pricing mechanism. GAIL too, has sufficient rating
headroom, with its standalone rating being constrained by the
sovereign.

Reliance Industries Ltd (RIL; BBB-/Stable, BBB/Positive) had a
significant proportion (92%) of its FYE13 debt in foreign
currency. However, RIL has a natural hedge, with both its raw
materials as well as final products priced in USD. At FY13E, RIL
had also hedged its currency and interest rate exposures through
interest rate swaps (INR324bn), currency swaps (INR33bn), options
(INR23bn) and forward contracts (INR894bn). The hedging covers the
company's debt, imports and its exports. In FY14, RIL has to repay
USD2bn of long-term FC debt. It recently completed a USD1.75bn
bond issue of which USD1.2bn will be used to refinance this debt.

Of the electricity utilities, NTPC Ltd (BBB-/Stable) and Power
Grid Corporation of India Ltd (PGCIL, BBB-/Stable) had around 30%
of their FY13 (year-end March) debt in foreign currency, while
NHPC Ltd's (BBB-/Stable) share was 11%. None of these entities
have hedged their foreign currency exposures. The tariff mechanism
allows for foreign exchange variations, which will allow them to
pass on the foreign currency impact to the customers limiting the
overall financial impact from the depreciation of the rupee. All
three ratings have sufficient headroom, with NTPC's and PGCIL's
standalone ratings being constrained by that of the sovereign
while NHPC's standalone is at the same level as the sovereign at
'BBB-'.

As the ratings of the state-linked entities are either equalised,
at-the same level or constrained by that of the state, any
negative rating action on India will have similar implications on
their ratings. RIL's Foreign Currency Issuer Default Rating of
BBB-/Stable, which is currently constrained by the Country Ceiling
of India, can also be negatively affected if the Country Ceiling
is downgraded.



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


NAKAMA RE: S&P Assigns 'BB+' Rating to Sr. Secured Notes
--------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'BB+(sf)' preliminary rating to the notes to be issued by Nakama
Re Ltd.  The notes cover losses in Japan and adjacent islands or
territories arising out of, or resulting from, earthquakes
(including seaquakes and seismic or volcanic disturbances or
eruptions) and the ensuing damage caused by earthshake, fire,
tidal wave (tsunami), flood, or sprinkler leakage on a per
occurrence basis.

National Mutual Insurance Federation of Agricultural Cooperatives
(Zenkyoren), the ceding insurer, is sponsoring its fourth
catastrophe bond transaction (Phoenix Quake, Quake Wind and Quake
Wind II, Muteki Re, and Kibou Re).

Because the premiums are prepaid, S&P's preliminary rating is
based on the lower of the rating on the catastrophe risk, 'BB+',
and the rating on the assets in the collateral account, 'AAAm'.

RATING LIST

New Rating

Nakama Re Ltd.
Sr Sec Notes due Sept. 2016            BB+(sf)



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


MONGOLIAN MINING: S&P Lowers Corporate Credit Rating to 'B-'
------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on Mongolia-based coal producer
Mongolian Mining Corp. (MMC) to 'B-' from 'B'.  At the same time,
S&P lowered its rating on MMC's US$600 million senior unsecured
notes maturing 2017 to 'B-' from 'B'.  All ratings were placed on
CreditWatch with negative implications.

"We downgraded MMC because we expect the company's liquidity to
erode over the next 12 months as a result of high debt and
interest servicing requirements and negative free operating cash
flows," said Standard & Poor's credit analyst Xavier Jean.
"Although we project MMC's liquidity to be sufficient to service
its debt until the end of 2013 without refinancing, we believe the
company will gradually deplete its cash and face refinancing
risk."

MMC's operating cash flows will likely be insufficient to repay
about US$131 million in bank loans and US$52.5 million in
promissory notes due over the next 12 months.  As a result, S&P is
revising its assessment of the company's liquidity to "weak," from
"less than adequate," as S&P's criteria define the terms.

MMC is currently seeking to refinance or renegotiate the
amortization profile of certain bank loans with its financial
institutions.  S&P believes refinancing risk will remain despite
its view that MMC's banking relationships are fair and the
negotiation outcomes are not yet known.  MMC's ability to postpone
the payments of promissory notes to Kerry Group when they fall due
in March and December 2014 adds to the refinancing risk, in S&P's
view.  But S&P notes that Kerry Group agreed earlier this year to
reschedule the payment of the notes to 2014, given the tough
operating conditions then.

The rating on MMC reflects the company's weak liquidity, mineral
concentration in coking coal, customer concentration risks, and
its exposure to an untested and evolving regulatory environment in
Mongolia.  MMC's reduced project development risk and a fair cost
position partly offset these weaknesses.

The CreditWatch status reflects the company's refinancing risk and
declining liquidity buffer.  S&P expects to resolve the
CreditWatch placement within the next three months once it has a
better understanding of the progress of MMC's bank loan and
promissory notes refinancing initiatives.

"We may lower the rating if MMC's liquidity weakens further," said
Mr. Jean.  This may materialize because of delays in refinancing
its bank loans or promissory notes.  S&P may also lower the rating
if the company's cash balance depletes more rapidly than S&P
expects because of the following reasons: (1) average selling
price for hard coking coal falls below US$85 per ton for more than
four months; or (2) working capital requirements increase
unexpectedly, possibly due to delays in customer receivables or
higher deferred stripping costs.



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


* Fitch Says Global Reinsurance Outlook Remains Stable
------------------------------------------------------
Fitch Ratings' outlook for global reinsurance sector ratings
remains stable, with the agency expecting to affirm the majority
of its current reinsurance ratings in 2014. Supporting factors
include capital strength and continued profitability. In the
absence of a major catastrophe, a persistent, low-yielding
investment environment and softening (falling) prices are the key
factors that could lead to a deterioration of the sector's credit
profile.

"The investment environment is likely to provide the greatest
challenge to the reinsurance sector in 2014," says Martyn Street,
co-head of Reinsurance at Fitch. "We expect continued low interest
rates, which will make it more challenging for reinsurers to
achieve similar 2014 profitability to that forecast for 2013."

Fitch expects broader softening of prices at the key 1 January
2014 renewal and beyond, assuming no significant loss events take
place, due to surplus underwriting capacity. While premium growth
is likely to continue into 2014, in the absence of a major loss
event, prices are expected to fall.

"There is likely to be a disparity in overall pricing movements,
but soft market conditions are likely to broaden to more product
classes," says Brian Schneider, co-head of Reinsurance at Fitch.
"While Fitch expects prices to remain adequate across major
classes, underwriting discipline will be tested. We also expect
continued competition between traditional and alternative
reinsurance."

Fitch expects reserves to develop favourably overall, but the
level of surplus is expected to decline somewhat, adding pressure
to run-rate profitability.

In order to trigger a sector outlook revision from stable to
negative, a single loss event of USD60bn, coupled with a sudden
spike in interest rates of 300bp or more and an inability for
reinsurers to replenish lost capital would be necessary. This
would likely result in negative rating actions. Fitch considers
such a combination to be rare.

More than 94% of the reinsurers rated by Fitch have a Stable
Outlook, with the remainder having a Positive Outlook. Fitch rates
more than 65 reinsurers globally. The stable outlook on the
reinsurance industry means that Fitch expects to affirm the
majority of reinsurers' ratings over the next 12-24 months.



                             *********

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 ***