TCRAP_Public/130905.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

          Thursday, September 5, 2013, Vol. 16, No. 176



ACN 051: Deloitte Appointed as Liquidator
ASTON METALS: Goes Into Receivership
BIO MX: Clifton Hall Appointed as Liquidators
FLEXI ABS 2013-2: Fitch Rates AUD5.4MM Class E Notes at 'BB'
FLEXI ABS 2013-2: Moody's Assigns Ba2 Rating to Class E Notes

FORTESCUE METALS: Fitch Affirms 'BB+' Issuer Default Rating
PRIORITY ENGINEERING: Century Deal Saves Services
WICKHAM SECURITIES: ASIC Bans Chairman Due to Bankruptcy
* Federal Court Bans Melbourne Liquidator For 5 Years


CHINA AUTOMATION: First Half Performance No Impact on Ba3 Ratings
COUNTRY GARDEN: S&P Revises Outlook to Positive; Affirms 'BB' CCR
YANZHOU COAL: Weak Profits Cue Moody's to Downgrade Rating to Ba1
YUZHOU PROPERTIES: Weak First Half Results No Impact on B1 CFR


AEKTA COT: ICRA Reaffirms 'B+' Rating on INR10cr Cash Credit
ATUL COMMODITIES: ICRA Rates INR4cr Cash Credit at 'B+'
BOOM BUYING: ICRA Rates INR3.0cr Cash Credit at 'B+'
DIVYA CONSTRUCTION: ICRA Assigns 'B-' Ratings to INR11cr Loans
FRIENDS AGRO: ICRA Reaffirms 'B' Rating on INR9.6cr Loans

KINGFISHER AIRLINES: CEO Gets INR4cr Pay; Headcount Halves
LOCKSMITHS INDUSTRIES: ICRA Puts 'B' Ratings on INR5.25cr Loans
MANGALAM METALS: ICRA Assigns 'B+' Rating to INR12cr Cash Credit
MEGHALAYA ENERGY: ICRA Assigns 'D' Ratings to INR120cr Loans
NORTH BIHAR: ICRA Assigns 'D' Rating to INR525cr Term Loans

PARVATI FABRICS: ICRA Assigns 'B+' Ratings to INR15cr Loans
RAYANI SPINTEX: ICRA Assigns 'C+' Ratings to INR36cr Loans
SAHUWALA HIGH: ICRA Assigns 'C-' Ratings to INR66.10cr Loans
SHRI GOVINDARAJA: ICRA Reaffirms 'C' Ratings on INR85.97cr Loans
SWAYAMPRABHA UDYAM: ICRA Reaffirms 'B' Rating on INR0.80cr Loan

V. K. POLYCHEM: ICRA Assigns 'B' Rating to INR5cr Loans


LIPPO KARAWACI: S&P Withdraws 'axBB+' Rating on US$273.3MM Notes


MALAYSIA: Fitch Says Fiscal Policy Shift Faces a Tough Road Ahead

N E W  Z E A L A N D

SPRINGFIELD HOTEL: Canterbury Pub Placed in Liquidation


MANILA ELECTRIC: S&P Assigns 'BB' Rating to Proposed U.S.$ Notes


SINGAPORE TECHNOLOGIES: Places PMB Malaysia Unit in Liquidation

                            - - - - -


ACN 051: Deloitte Appointed as Liquidator
----------------------------------------- reports that ACN 051 903 505 Pty Ltd, which
formerly traded as Financial Services Pty Ltd and BTS Accounts,
had been put in liquidation.  Deloitte Touche Tohmatsu was
appointed as liquidator, the report says.

The Wodonga-based Count Financial Limited authorised
representative is a National Tax and Accountants Association
member. It offered holistic financial planning and accounting
services including tax accounting, investment advice, personal
insurance and superannuation advice, discloses
citing reports.

ASTON METALS: Goes Into Receivership
Georgia Wilkins at brisbanetimes reports that receivers have been
appointed to a Nathan Tinkler-linked firm, Aston Metals Group.

Aston Metals is an unlisted copper explorer with tenement holdings
in the Mount Isa region of north-west Queensland, Australia.

The receivers were appointed by Madison Pacific Trust Ltd in its
capacity as Security Trustee over all the secured property of
Aston Metals, according to brisbanetimes.  The report relates that
the Walford Creek copper, lead and zinc deposit is the primary
focus of Aston Metals.

The report notes that FTI Consulting will review the status of all
projects owned by Aston Metals as part of their appointment with a
view to offering them for sale.

During a liquidators examination earlier this year it was revealed
the Tinkler Group Family Trust owned Aston Metals, the report

Mr. Tinkler, a former billionaire, has been under financial
pressure for some time due to the end of the coal price boom, the
report says.

Mr. Tinkler, the report discloses, has been unable to repay
massive debts to creditors, leading to the sale of his Whitehaven
stake, the liquidation of other companies, and the sale of assets
including race horses and helicopters.

A spokesman for The Tinkler Group said Aston Metals was a
"dormant, speculative investment near Mt Isa" held by The Tinkler
Group and other shareholders, the report adds.

BIO MX: Clifton Hall Appointed as Liquidators
Mark Hall and Tim Clifton of Clifton Hall were appointed as Joint
and Several Liquidators of Bio MX Pty Ltd on September 2, 2013.

The first meeting of creditors will be held at 10:00 a.m. on Sept.
13, 2013, in the offices of Clifton Hall, Level 4, 12 Gilles
Street, in Adelaide.

FLEXI ABS 2013-2: Fitch Rates AUD5.4MM Class E Notes at 'BB'
Fitch Ratings has assigned Flexi ABS Trust 2013-2, which is backed
by small balance consumer loan receivables, due September 2017,
ratings as follows:

AUD94.5m Class A1 notes: F1+sf'

AUD113.4m Class A2 notes: 'AAAsf'; Outlook Stable

AUD24.3m Class B notes: 'AAsf'; Outlook Stable

AUD10.8m Class C notes: 'Asf'; Outlook Stable

AUD8.1m Class D notes: BBBsf'; Outlook Stable

AUD5.4m Class E notes: BBsf'; Outlook Stable

AUD13.5m Class F notes: not rated

The notes have been issued by Perpetual Trustee Company Limited in
its capacity as trustee of Flexi ABS Trust 2013-2. The Flexi ABS
Trust 2013-2 is a legally distinct trust established pursuant to a
master trust and security trust deed. The assignment of final
ratings is contingent on the receipt of documents conforming to
information already received.

At the cut-off date, the total collateral pool consisted of
127,541consumer loan receivables totalling approximately
AUD264.9m, with an average size of AUD2,077 each. The loan
receivables, originated by Certegy Ezi-Pay Pty Ltd (Certegy) whose
ultimate parent is FlexiGroup Limited, are retail point-of-sale
interest-free consumer finance receivables that finance a wide
range of products; jewellery (15.7%); home-related products such
as solar energy (51.1%); fitness equipment (5.8%); and a broad
cross-section of other products.

Key Rating Drivers

The 'F1+sf' Short-term rating and the 'AAAsf' Long-Term ratings
with Stable Outlook assigned to the Class A1 and A2 notes
respectively are based on the 23% credit enhancement provided by
the subordinate classes of notes and significant excess spread
available to offset potential losses. The ratings also take into
account a short weighted average life, the small average contract
size and a diverse range of financed products, bringing a broad
range of obligors to the transaction.

The Long-Term ratings with Stable Outlook assigned to the Class B,
C, D and E notes are based on all the strengths supporting the
Class A notes except their credit enhancement levels.

Rating Sensitivity

Increases in the frequency of defaults could produce loss levels
higher than Fitch's base case, which could result in negative
rating actions on the notes. Fitch evaluated the sensitivity of
the ratings of Flexi ABS Trust 2013-2 to increased defaults over
the life of the transaction. Its analysis found that collectively
the Class A1 notes' ratings remained stable under all of Fitch's
stress levels, while all other notes were impacted only after
increases in defaults of at least 50%.

FLEXI ABS 2013-2: Moody's Assigns Ba2 Rating to Class E Notes
Moody's Investors Service has assigned definitive ratings to notes
issued by Perpetual Corporate Trust Limited in its capacity as the
trustee of the Flexi ABS Trust 2013-2.

Issuer: Flexi ABS Trust 2013-2

AUD94.5 million A1 Notes, Assigned P-1 (sf)

AUD113.4 million A2 Notes, Assigned Aaa (sf)

AUD24.3 million B Notes, Assigned Aa2 (sf)

AUD10.8 million C Notes, Assigned A2 (sf)

AUD8.1 million D Notes, Assigned Baa2 (sf)

AUD5.4 million E Notes, Assigned Ba2 (sf)

The AUD 13.5 million Class F Notes are not rated by Moody's.

The ratings address the expected loss posed to investors by the
legal final maturity. The structure allows for the timely payment
of interest and the ultimate payment of the principal by the legal
final maturity.

The transaction is a cash securitization of a portfolio of
Australian unsecured, retail, 'no interest ever' payment plans,
originated by Certegy Ezi-Pay Pty Ltd, a subsidiary of FlexiGroup

This is FlexiGroup's third term-securitization of Certegy assets
and the third one rated by Moody's. The transaction features a
short term P-1 (sf) tranche, with a legal final maturity of 12
months from issuance. The tranche represents 35% of the total
issuance. Key factors supporting the P-1 (sf) rating include:

- Principal cashflows -- which will be allocated to the short-term
tranche in priority to other tranches until it is fully repaid --
will be sufficient to amortize the tranche within the 12-month
period. The amortization is tested with no prepayment and assuming
an Aaa-commensurate level of defaults and delinquencies occurring
during the amortization period.

- The corporate administration and insolvency regime in Australia
and the hot back-up servicing arrangements with Dun & Bradstreet
(Australia) Pty Limited mitigate the risk of a prolonged servicer
disruption. These two factors are relevant in the context of
assigning the P-1 (sf) rating because FlexiGroup and Certegy are

Another notable feature of the transaction is the high proportion
of receivables relating to solar energy. While historical
performance data for solar energy receivables is limited to only a
few years, Moody's expects the performance of these receivables to
broadly track the performance of receivables relating to other
home-owner industries.

Home-owner industry obligors typically display lower default rates
than non-home-owner industry obligors in the Certegy portfolio.

Ratings Rationale:

Flexi ABS Trust 2013-2 is the securitization of retail, unsecured,
'no interest ever' receivables extended to obligors located in
Australia. Notable features of the transaction include the unique
nature of the collateral, the strong back-up servicing
arrangements, and short-weighted average lives of notes.

The receivables are unsecured payment plans, originated by Certegy
through various retailers at the point of sale. Rather than
relying on interest payable by the underlying obligors, the
product is instead reliant on a retailer fee component to meet
financing costs and for profit margin generation.

During the life of the receivables, the customer will make monthly
or fortnightly payments to Certegy, with the difference between
the balance payable by the obligor and the balance funded by
Certegy (equal to the merchant fee) representing implicit
interest. The loans are made on a full recourse, unsecured basis.

The expected default rate of 2.50% is broadly in line with
consumer auto-loan ABS transactions in the Australian market.

The minimum 23% subordination commensurate with an Aaa rating of
the senior notes is, on the other hand, materially higher that of
a typical auto-loan ABS transaction. This is attributed to the
unsecured nature of the receivables leading to zero recovery

Certegy and FlexiGroup are unrated. Consequently, the transaction
structure includes back-up servicing arrangements provided by Dun
& Bradstreet (Australia) Pty Limited. Dun & Bradstreet carries out
servicing in parallel with Certegy, providing near 'hot' levels of
support and mitigating risks of a prolonged servicing disruption.

In order to fund the purchase price of the portfolio, the Trust
issued seven classes of notes. The notes will be repaid on a
sequential basis until the later of: (1) repayment of the Class A1
short-term tranche, and (2) increase in the subordination to Class
A notes to 30% from 23%.

The notes will also be repaid on a sequential basis if there are
any unreimbursed charge-offs or the pool amortizes to below 10% of
the original balance. At all other times, the structure will
follow a pro-rata repayment profile (assuming pro-rata conditions
are still satisfied). This principal pay down structure is similar
to other structures in the Australian ABS market.

Volatility Assumption Scores And Parameter Sensitivities

The V Score for this transaction is Medium/High. Among other
factors, Moody's notes the unique nature of the transaction and
the consequent unavailability of historical performance data for
the unsecured consumer loan sector (particularly, in the interest-
free space).

On the other hand, Moody's was provided with detailed, loan-by-
loan data for all receivables originated by Certegy during the
2004-2013 period. This allows Moody's to have a material degree of
comfort with regard to assumptions made in rating the Flexi ABS
Trust 2013-2.

V Scores are a relative assessment of the quality of available
credit information and of the degree of uncertainty around various
assumptions used in determining the rating. High variability in
key assumptions could expose a rating to more likelihood of rating
changes. The V Score has been assigned accordingly to the report
"V Scores and Parameter Sensitivities in the Asia/Pacific RMBS
Sector", published in March 2009.

Parameter Sensitivities are designed to provide a quantitative
calculation of how the initial rating might change if key input
parameters used in the initial rating process differed. The
analysis assumes that the deal has not aged. Parameter
Sensitivities only reflect the ratings impact of each scenario
from a quantitative/model-indicated standpoint.

In the case of Flexi ABS Trust 2013-2, assuming the default rate
rises to 5% (compared to Moody's assumption of 2.50%), the model
indicated rating for the Class A2 Notes becomes Aa3.

The principal methodology used in this rating was "Moody's
Approach to Rating Australian Asset-Backed Securities" published
in July 2009.

The cash flow model used to analyze the transaction was ABSROM
3.5, in which, substantially all default scenarios were
considered. Therefore, Moody's analysis encompasses the assessment
of stress scenarios.

FORTESCUE METALS: Fitch Affirms 'BB+' Issuer Default Rating
This is a correction of the rating action commentary published on
September 1 which did not include the affirmation of the company's
senior secured 'BBB-' rating. The corrected version is as follows:

Fitch Ratings has revised Australian based Fortescue Metals Group
Limited's Outlook to Stable from Negative and affirmed its Long-
Term Issuer Default Rating (IDR), senior unsecured rating at 'BB+'
and senior secured rating at 'BBB-'. At the same time, Fitch has
affirmed Fortescue's senior unsecured and senior secured debt,
issued through FMG Resources (August 2006) Pty Ltd, at 'BB+' and
'BBB-' respectively.

The Outlook revision reflects the expectation that debt will
decrease and, should iron ore prices remain above USD110/t through
to FY14 and the AUD remains at sub parity, the decrease could be
accelerated. Fortescue expects to achieve 150m metric tonnes per
annum (mtpa) run rate from March 2014. With a permanent reduction
in costs, and having passed the inflection point of capex
intensity (capex is expected to decrease to USD1.94bn in FY14 from
USD6.24bn), free cash generation is expected to be strong,
consequently driving debt reduction.

Key Rating Drivers

Deleveraging quickly: "Under our base case assumption of
USD110/dry metric tonnes (dmt), 62% Fe and AUD/USD 0.94 in FY14,
we expect Fortescue's FFO adjusted net leverage to be less than
2.50x, down from 3.34x in FY13. Aside from operational
improvements including stronger production volume, a reduction in
costs, lower capex, prepayments as at August 2013 totalling USD1bn
(including USD500m for port access from Formosa) and any asset
sales, are also expected to enhance the strong free cash
generation in FY14 and FY15," Fitch says.

Fortescue is considering the sale of a minority interest in The
Pilbara Infrastructure Pty Ltd (TPI) to reduce gearing (net
debt/net debt+equity) from 71% at FY13 to Fortescue's targeted
levels of between 30 and 40% by end FY15. While Fortescue is still
considering the sale of TPI, to date it has not received offers
that meet its expectations of value and terms. Fitch's base case
does not factor in this potential sale. "Should a transaction
occur, we would need to review the terms to assess the likely
impact on the company's overall credit profile," Fitch says.

Step change reduction in costs: During FY13, C1 costs peaked at
USD50/wet metric tonnes (wmt) in the December 2012 quarter, but
these have reduced to USD44/wmt for FY13. The key drivers include
cost reduction measures that were put in place in October 2012,
lower strip ratios on account of the new mine plan, and the
commissioning of the low cost Firetail mine (strip ratio of 1:4
compared to Chichsterster of 3.5:1). The reduction in costs is
considered permanent, with the expectation that they will trend
lower, and will be helped with the depreciation of the AUD/USD.

Operating efficiencies insulate against lower iron ore price:
Falling cash costs and rising production will be key drivers to
profit margin. Fitch expects the profit margin to remain stable as
the business benefits from increased scale.

Low costs support rating: The ratings reflect Fortescue's cost
advantages due to its close proximity to key Asian markets.
Substantial rail and infrastructure assets assist in its cost

Lack of business diversification: Fortescue has limited business
diversification compared with its international peers, current
selling one product (being iron ore) into the Chinese market.

Rating Sensitivities

Positive: Future developments that could lead to positive rating
actions include:

-- Funds from operations (FFO) adjusted gross leverage falling
   below 2.0x and FFO gross interest cover moving above 5.0x.
   Prior to such action, elements of the capital structure would
   need to be more reflective of a 'BBB' category.

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

-- FFO adjusted gross leverage exceeding 3.00x and FFO gross
   interest cover being below 4.0x from FY14.

PRIORITY ENGINEERING: Century Deal Saves Services
ABC News reports that Adelaide-based company Priority Engineering
Services has been saved in a deal involving another local firm.

Century Engineering said its purchase initially would save up to
40 manufacturing jobs at the factory at Elizabeth West, according
to ABC News.

The report relates Priority Engineering went into receivership in
March due to trading difficulties, affecting 86 jobs.

Under the deal, 15 workers already have been re-employed and
Century Engineering said it was keen to know if some other former
employees wanted to return, including boilermakers, machinists and
programmers, the report says.

ABC News discloses that with the Priority Engineering Services
acquisition, Century will have two manufacturing sites in

Century managing director David Heaslip said the purchase was a
show of confidence in the future of South Australian
manufacturing, ABC News notes.

"Our long-term goal is to rebuild the business to its former size.
. . . Priority Engineering Services has had an excellent
reputation, particularly in the defence, mining and automotive
sectors for many years. Unfortunately it was unable to recover
from trading difficulties dating back to the GFC (global financial
crisis) . . . The company has a very good manufacturing capability
and we believe there is sufficient work and future contract
opportunities in the pipeline to keep the company operating in a
viable manner," the report quoted Mr. Heaslip as saying.

WICKHAM SECURITIES: ASIC Bans Chairman Due to Bankruptcy
The Australian Securities and Investment Commission has banned
Bradley Thomas Sherwin, the chairman of collapsed lender Wickham
Securities, from financial services. The banning is a result of
Mr. Sherwin's bankruptcy.

ASIC's investigation into Mr. Sherwin and the collapse of Wickham,
and Sherwin Financial Planners Pty Ltd and related entities

On May 1, 2013, Mr. Sherwin filed for bankruptcy and Official
Trustees were appointed as his trustee in bankruptcy.

Mr. Sherwin has been banned for two years and seven months, which
is the period remaining of his bankruptcy (unless his trustee in
bankruptcy extends the period).

Mr. Sherwin had an opportunity to make submissions as to why ASIC
should not ban him, prior to ASIC banning him. He did not make a

Mr. Sherwin has the right to appeal to the Administrative Appeals
Tribunal for a review of ASIC's decision.

                      About Wickham Securities

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

On Jan. 24, 2013, Stefan Dopking, Quentin Olde and Michael Ryan
of Taylor Woodings were appointed Voluntary Administrators to the
following companies in the Wickham Financial Group:

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

* Federal Court Bans Melbourne Liquidator For 5 Years
The Federal Court on Aug. 30, 2013, indicated that Melbourne
liquidator Andrew Leonard Dunner should be prohibited from being
registered as a liquidator for 5 years following Australian
Securities and Investment Commission action.

In April 2012, ASIC applied to the Federal Court in Melbourne to
inquire into the conduct of Mr. Dunner concerning the performance
of his duties as liquidator or receiver and manager of 11

In handing down his reasons for judgment, Justice Middleton found
that Mr. Dunner had failed to adequately investigate the
circumstances and affairs of companies to which he was appointed
and had inaccurately reported to ASIC and creditors.

The Court also found that he had drawn remuneration in excess of
AUD600,000 without appropriate approval or adequate supporting
documentation. The Court considered it appropriate that he should
repay that remuneration and have leave to apply to the Court for
justification of an entitlement to recoup remuneration where
appropriate. Justice Middleton found that Mr. Dunner's conduct
indicated '. . . a systemic failure of administration and internal
protocols, as well as (in a number of instances) extremely poor
professional judgment. In this way, Mr. Dunner has failed to
satisfy the high standards of conduct required of his offices'.

In finding that a banning period of 5 years was appropriate,
Justice Middleton said:

'Withdrawing a liquidator's registration operates directly to
protect the public from the work of the person. It also operates
generally by deterring other liquidators from acting in a similar
fashion. ASIC submitted -- and I accept -- that there is a
compelling public interest in the maintenance of a system which
recognises that registration as a liquidator is a privilege, the
continuance of which is conditional upon diligent performance of
its attendant duties.'

ASIC Commissioner John Price said: 'Mr Dunner's behavior fell well
short of acceptable standards of conduct. Liquidators must
faithfully perform their duties and adhere to the law. They are a
key gatekeeper in promoting a fair and efficient market and
ensuring investors, including creditors, are confident and

'ASIC continues to search out those insolvency practitioners who
disregard the high standards imposed on them and remove them from
the industry.'

The Court ordered that the parties confer and file a minute of
order reflecting the reasons given by the Court by Sept. 20, 2013.


CHINA AUTOMATION: First Half Performance No Impact on Ba3 Ratings
Moody's Investors Service says that China Automation Group
Limited's improved 1H 2013 results were in line with expectations,
and will not impact its Ba3 ratings and negative outlook.

"Despite a moderate improvement, compared with 2H2012, China
Automation's overall financial profile remains weak for its Ba3
rating. However, this result had already been largely reflected in
the current negative outlook," says Chenyi Lu, a Moody's Vice
President and Senior Analyst.

"Looking ahead, we expect China Automation's operating performance
to improve over the next 12-18 months, as the Chinese government
increases its investment in railway construction, and the company
continues its expense control initiatives. These will benefit
revenue growth and margins," adds Lu.

Revenue rose by 7.0% year-on-year to RMB1.21 billion in 1H2013
from RMB1.13 billion in 1H2012, driven by a greater revenue
contribution from the petrochemical business. But this achievement
was partially offset by continued weak sales from the railway
business. Revenue grew by 11.5% from 2H2012.

Adjusted EBITDA margin improved to 17.8% in 1H2013 from 17.5% in
2H2012, mainly driven by expense controls.

Reported debt remained almost unchanged at RMB1.60 billion as of
end-June 2013 compared with end-2012. Nonetheless, debt leverage -
- measured by adjusted debt/EBITDA -- increased to 4.4x for the 12
months to June 2013 from 3.8x in all of 2012, as earnings
decreased. Likewise, EBITDA/interest fell to about 2.7x from 3.2x.

Moody's considers these ratios as weak for its Ba3 ratings.

China Automation's liquidity profile remains reasonably adequate.
Its cash on hand of RMB418 million as of end-June 2013 -- with
expected cash flow from operations of RMB70 million in the next 12
months -- can cover its capex of RMB50 million and short-term
maturing debt of RMB435 million.

Moreover, Moody's expects the company to roll over its short-term
debt and improve working capital movements by accelerating account
receivable collections.

The principal methodology used in this rating was the Global
Manufacturing Industry Methodology published in December 2010.

China Automation specializes in providing safety & critical
control systems for the railways signaling and petrochemicals
industries in China. It began its operations in 1999 and was
listed on the Main Board of the Stock Exchange of Hong Kong
Limited in July 2007. Its three founders collectively own 44.89%.

COUNTRY GARDEN: S&P Revises Outlook to Positive; Affirms 'BB' CCR
Standard & Poor's Ratings Services revised the rating outlook on
China-based real estate developer Country Garden Holdings Co. Ltd.
to positive from stable.

At the same time, S&P affirmed its 'BB' long-term corporate credit
rating on Country Garden and the 'BB-' issue rating on the
company's outstanding senior unsecured notes.  Because of the
outlook revision, S&P raised its long-term Greater China regional
scale ratings on the company to 'cnBBB' from 'cnBBB-', and that on
the notes to 'cnBBB-' from 'cnBB+'.

S&P revised the outlook to reflect its view that Country Garden's
competitive position has strengthened because of the company's
strong execution, materially expanded scale, and improving
geographic diversification.  S&P also expect the company to manage
cash flow and leverage with discipline while pursuing rapid
growth.  S&P assess Country Garden's business risk profile as
"fair" and its financial risk profile as "significant."

"We expect Country Garden's focus on fast asset-churn, mass market
owner-occupier products, and strong project and sales execution to
support robust property sales over the next two years," said
Standard & Poor's credit analyst Frank Lu.  "We believe the
company's business model and execution are resilient to market
cycles, as reflected in steady sales growth over the past four
years.  In our view, China's real estate market is likely to be
stable over the next 12 months."

In S&P's view, Country Garden's larger scale and increasing
geographic and project diversity could enhance its performance
stability by tempering the effects of uneven regional market
conditions.  "We believe the company has established its market
position outside of its home market in Guangdong province," Mr. Lu

S&P expects Country Garden's capital structure to remain largely
stable over the next two years with strong property sales
tempering a material increase in debt for expansion.

The positive outlook reflects S&P's expectation that Country
Garden will maintain strong execution of its fast-churn model,
generate robust property sales, and improve geographic diversity
over the next 12 months.  S&P also expect the company to maintain
its financial risk profile and have largely stable margins over
the period.

S&P may raise the rating if Country Garden sustains strong
execution and property sales on a much larger scale base while
maintaining consistent and disciplined financial management, such
that the ratio of debt to EBITDA remains below 3.5x.

S&P may revise the outlook to stable if: (1) Country Garden's
execution on sales and expansion is weaker than S&P expects, such
that contract sales in 2013 are materially less than its base-case
estimate of about RMB70 billion, or EBITDA margin is materially
lower than 25%; or (2) the company's debt-funded expansion is more
aggressive than S&P anticipates.

YANZHOU COAL: Weak Profits Cue Moody's to Downgrade Rating to Ba1
Moody's Investors Service has downgraded to Ba1 from Baa3 Yanzhou
Coal Mining Co Ltd.'s issuer rating and the senior unsecured debt
rating for the $ bonds issued by Yancoal International Resources
Development Co Ltd, and guaranteed by Yanzhou Coal Mining Co. At
the same time, Moody's has withdrawn the issuer rating and has
assigned a corporate family rating of Ba1 to Yanzhou Coal.

The outlook for the ratings is stable.

Ratings Rationale:

"The downgrade reflects Yanzhou Coal's weakened level of
profitability which is beyond Moody's expectations, in turn due to
depressed coal prices and the operating loss evident at its
Australian operations," says Alan Gao, a Moody's Vice President
and Senior Analyst.

The company has been affected by falling coal prices, as evidenced
in its 1H 2013 results. The value of its sales suffered a 10.8%
decline on a year-on-year basis despite the fact that volume sold
rose 6.8%.

In addition, it is suffering losses at its Australian operations
due to high costs, low volume and the weakening Australian dollar.
Yancoal Australia reported a loss before tax of RMB6.3 billion
equivalent in 1H 2013.

Moody's expects Yanzhou Coal's profitability to stay weak in the
next 18 months because (i) coal prices, especially domestic
thermal coal prices, will remain depressed as China's economic
growth slows; and (ii) Yancoal Australia's operating loss will
take more time than expected to correct through a ramp-up in
volumes and improved efficiency.

In response to the challenging situation, Yanzhou Coal has started
to implement cost savings; reduce purchases of more expensive
third-party coal; improve the efficiency and output of its
Australian mines; plan the issuance of hybrid debt to improve
funding and equity; and cut capital expenditures to contain rises
in debt.

But, Moody's believes that the benefits of such actions will take
time to materialize.

As a result, Moody's expects debt/EBITDA of 5x-5.5x for 2103 and
trending down to around 4.5X in 2014 and thereafter, and (cash
flow from operations -- dividends)/debt of 10%-15% over the next
12 to 18 months. Such levels match those of peers in the Ba range.

At the same time, Yanzhou Coal's Ba1 rating reflects the company's
(1) high-quality coal mines, with diversified mining assets in
China and Australia, and good related infrastructure; (2) the
competitive level of costs at its mines in Shandong; (3) long
operating track record and compliance with occupational health and
safety requirements; and (4) favorable position in China where
demand for coal is strong.

The rating also considers the increased operating and financial
risks from expansion in Australia. Resolving the weakness in the
credit metrics of its Australian operations has been hampered by
the slow pace of ramp-ups in production up due to soft demand.
Furthermore, the company is exposed to regulatory risks in China
and Australia.

The rating also factors in Yanzhou Coal's status as a state-owned
enterprise in the strategic resources sector under the Shandong
provincial government. Support from the government helps the
company manage the incremental risks resulting from its transition
to a more diversified operation geographically, and enables it to
access low-cost domestic funding. The latter supports its credit

Although Yanzhou Coal's cash balance fell to RMB10.2 billion in
June 2013 from RMB15.9 billion in December 2012, its liquidity
position remains strong. Such a cash balance and committed undrawn
bank facilities more than cover short-term debt of RMB8.4 billion
and estimated annual capital expenditure of around RMB6 billion.

The stable outlook reflects Moody's expectation that Yanzhou Coal
will maintain a fairly strong liquidity position which acts as a
buffer against challenges in the current down cycle and ensures
that debt-servicing will not be affected by weakened
profitability. Ownership and supervision by the Shandong
government will help the company secure good funding support from
domestic banks in the current down market. Furthermore, Moody's
expects Yanzhou Coal's management will adopt a prudent approach in
capital spending and investment to preserve its financial profile.

Upward rating pressure will be limited, given that the company has
yet to recover profitability. However, upgrade pressure could
emerge over the medium term if it can: (1) turn around its
Australian operations; and (2) improve its cost structure and

Indicators of rating upgrade pressure include EBITDA margins above
20%; adjusted debt/EBITDA below 2.5x - 3.0x, and (cash flow from
operations - dividends)/debt of more than 20% on a sustainable

On the other hand, downgrade pressure could emerge if Yanzhou Coal
(1) fails to improve debt leverage in 2014; (2) fails to turn
around its Australian operation and achieve cost-savings targets;
(3) experiences a material disruption in its operations due to
non-compliance with mining regulations; or (4) accelerates
expansion, such that debt leverage further increases and liquidity

Indicators for downgrade pressure include its cash balance falling
below 5% of total assets; and/or adjusted debt/EBITDA continues to
exceed 4.5-5.0x; or (cash flow from operations - dividends)/debt
below 10% in 2014.

If the Shandong provincial government's indirect ownership through
the Yankuang Group drops to below 50%, Moody's would consider this
development as evidence that the relationship is weakening,
thereby possibly triggering a review of the ratings.

The principal methodology used in these ratings was the Global
Mining Industry Methodology published in May 2009.

Yanzhou Coal Co Ltd was listed in Shanghai, Hong Kong and New York
in 1998. It is 52.9%-owned by the Yankuang Group, a state-owned
enterprise (SOE) wholly owned by the Shandong Provincial State-
Owned Assets Supervision and Administration Commission, and is one
of the top coal mining groups in China.

It has 12 operating mines in Shandong Province, Shanxi Province
and Inner Mongolia. It also has 14 mines (9 in production and 5 in
exploration) in Australia.

YUZHOU PROPERTIES: Weak First Half Results No Impact on B1 CFR
Moody's Investors Service says that Yuzhou Properties Company
Limited's weak 1H 2013 revenue has no immediate impact on its

Instead, Yuzhou's strong liquidity still support its B1 corporate
family rating and B2 senior unsecured rating as well as stable
rating outlook.

"Yuzhou's had strong contract sales in 1H 2013, but interest
coverage was weak as it demonstrated lower-than-expected revenue
recognition," says Lina Choi, a Moody's Vice President and Senior

For the first seven months of 2013, Yuzhou achieved contract sales
of RMB7.0 billion, equivalent to a 67% year-on-year increase and
87% of its full-year sales target of RMB8.0 billion.

"However, Yuzhou had lower-than-expected projects delivery -- it
reported only RMB1.0 billion of revenue in 1H 2013. The company
has explained that this was due to (a) its small number of
projects for delivery; and (b) its business model of early
presales and thus a long lead time to complete construction," says

In addition, its gross profit margin dropped to 32% as it
recognized projects sold in the down cycle in 2011-2012. The risk
of further declines in profit margins could be partly mitigated by
the higher average selling price of RMB10,311 per square meter
achieved in 1H 2013, and which is 15% higher than the ASP for all
of 2012.

With lower revenue, Yuzhou's adjusted EBITDA/interest weakened to
1.6x for the 12 months ended June 30, 2013. This figure compares
with 2.1x in 2012, and 3.3x at end-June 2012. The lower interest
cover reduces the company financial flexibility in raising more
financing to support its operations. Moody's will monitor Yuzhou's
full-year revenue and EBITDA margin results.

"On the other hand Yuzhou has strong liquidity that supports its
B1 corporate family rating," says Choi, who is the lead analyst
for Yuzhou.

Yuzhou had cash on hand of RMB4.6 billion at end-June 2013,
together with its bond issuance of HKD1.5 billion (RMB1.2 billion)
in July 2013. These two amounts will together be sufficient to
cover the RMB3.0 billion in short-term debt maturing in the next
3-6 months and unpaid land premium of RMB2.6 billion.

Moody's considers that such a level of liquidity can act as a
cushion for the company to manage through any volatility in the
property market.

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

Yuzhou Properties Company Limited is a Fujian-based developer that
focuses on residential housing in Xiamen. It had a land bank (with
legal titles) of around 8.4 million square meters in gross floor
area at end-June 2013. Of this land bank, 31% is in Xiamen; 24% in
Hefei; 15% in Quanzhou; and the rest is spread across Bengbu,
Shanghai, Tianjin, Fuzhou, Longyan and Zhangzhou.


AEKTA COT: ICRA Reaffirms 'B+' Rating on INR10cr Cash Credit
The rating of '[ICRA]B+' has been reaffirmed for the INR10.00
crore fund based cash credit facility of Aekta Cot Fibres.

   Facilities          (INR crore)   Ratings
   -----------         -----------   -------
   Cash Credit            10.00      [ICRA]B+ reaffirmed

The rating continues to be constrained by the firm's weak
financial profile as reflected by declining operating income,
stretched liquidity entailing high reliance on external borrowings
and adverse capital structure along with weak debt coverage
indicators. The rating also takes into account the low value
additive nature of operations and intense competition on account
of fragmented industry structure leading to thin profit margins.
The rating is further constrained by vulnerability of
profitability to adverse fluctuations in raw material prices which
are subject to seasonal availability of raw cotton and government
regulations on MSP and export quota. Further, ACF being a
partnership firm, any significant withdrawals from the capital
account would affect its net worth adversely.

The rating, however, positively considers the long experience of
the partners in the cotton ginning and pressing industry and the
advantage firm enjoys by virtue of its location in cotton
producing region giving it easy access to raw cotton, and positive
demand outlook for cotton and cottonseed.

Established in 2007, ACF is a partnership firm owned and managed
by Mr. Amit Patel, Mr. Ramesh Patel and other members of the
family. It is engaged in ginning of raw cotton to produce cotton
bales and cotton seeds. It deals in S-6 type of cotton. The firm
has 24 ginning machines with production capacity of 240 cotton
bales per day.

Recent Results

For the year ended March 31, 2013 (provisional unaudited
financials), ACF reported an operating income of INR52.57 crore
and profit before tax of INR0.12 crore as against an operating
income of INR53.87crore and profit after tax of INR0.10 crore
during FY 2012.

ATUL COMMODITIES: ICRA Rates INR4cr Cash Credit at 'B+'
ICRA has assigned a long term rating of '[ICRA]B+' to the INR4.00
crore cash credit facility of Atul Commodities Private Limited.
ICRA has also assigned a short term rating of '[ICRA]A4' to the
INR5.00 crore letter of credit and INR6.00 crore secured overdraft
facilities of ACPL.

   Facilities               (INR crore)   Ratings
   -----------              -----------   -------
   Fund Based-Cash Credit       4.00      [ICRA]B+ assigned
   Fund Based-Secured

   Overdraft                    6.00      [ICRA]A4 assigned

   Non Fund based-Letter        5.00      [ICRA]A4 assigned
   of Credit

The ratings are constrained by the company's exposure to adverse
fluctuations in foreign currency in the absence of any hedging
policy, with the recent weakness in the Indian currency likely to
increase cost of operations and working capital requirements, and
the highly working capital intensive nature of operations which
adversely impacts liquidity of the company. The ratings are
further constrained by the vulnerability of operations of the
company to regulatory risks such as imposition of anti dumping
duty, intense competition especially from Indian manufacturers,
although better quality of imported flex mitigates the risk to an
extent and weak levels of coverage indicators for the company. The
ratings, however, draw comfort from the long track record of the
promoters of the company in the digital printing consumable
industry, the favorable demand prospects for this industry and the
improving trend of operating margin, although the same remains low
on absolute basis. ICRA notes that any adverse movement in anti-
dumping duty going forward remains a key rating sensitivity. Also,
the ability of the company to increase its scale while managing
the high working capital intensity remains critical for
maintaining its credit risk profile.

Atul Commodities Pvt Ltd, established in the year 2005, is engaged
in trading of digital printing consumables viz. PVC Sheet, flex,
used digital multifunction printers, spare parts etc. More than
70% of the sales are derived from sales of PVC sheet and flex,
which the company imports from China, Korea, Malaysia and Thailand
and sells it across India. The company has also ventured into
trading of timber from FY13.

Recent Results

The company reported an operating income (OI) of INR36.92 crore
and a profit after tax (PAT) of INR0.98 crore during FY13 as per
the provisional numbers as compared to an OI of INR34.33 crore and
a PAT of INR0.35 crore during FY12.

BOOM BUYING: ICRA Rates INR3.0cr Cash Credit at 'B+'
ICRA has assigned a long-term rating of '[ICRA]B+' to INR3 crore
fund based facilities of Boom Buying Private Limited. ICRA has
also assigned a short term rating of '[ICRA]A4' to INR3 crore non
fund based facilities of BBPL.

   Facilities            (INR crore)   Ratings
   -----------           -----------   -------
   Cash Credit               3.0       [ICRA]B+ Assigned
   LC/BG                     3.0       [ICRA]A4 Assigned

The assigned ratings factor in limited scale of operations of the
company in its core business of trading, resulting in modest
economies of scale, which coupled with the highly competitive
nature of the industry has resulted in modest profitability
indicators. Given the nature of the business in which the company
is operating, ICRA does not expect any significant improvement in
profitability indicators in the medium term. Further, funding of
increasing working capital requirements through bank borrowings
has led to relatively high gearing and modest debt coverage
indicators. The ratings are also constrained by stretched
liquidity position of the company as reflected by high utilization
of working capital limits and weak cash flows position.

However, the assigned ratings favorably factor in long experience
of the promoter in trading business, healthy growth in company's
revenues, a diversified product base and low demand risk for agro
commodities which comprise majority of the company's trading
revenues. The ratings also draw support from low commodity price
risk given the low inventory levels maintained by the company,
most of which is procured on an order backed basis and established
relationships with customers/distributors as evident by numerous
repeat orders in the agro commodities segment. Further, demand
risk for the company is minimal given the growing consumption of
agro commodities in India.

Incorporated in the year 2003, Boom Buying Private Limited is a
closely held company promoted by Mr. Rakesh Singh. The company is
engaged in trading of various products such as Agro Commodities,
Chemicals (mainly Bitumen), Spices, Electronic Goods, Fabric,
Paper etc. BBPL has its trading office located at Naya Bazar,

Recent Results

The company reported a net profit after tax of INR0.67 crore on an
operating income of INR83.52 crore in FY2013 as against net profit
of INR0.48 crore on an operating income of INR66.95 crore in

DIVYA CONSTRUCTION: ICRA Assigns 'B-' Ratings to INR11cr Loans
ICRA has assigned '[ICRA]B-' rating to the INR11.0 crore fund
based and non fund based bank facilities of Divya Construction

   Facilities              (INR crore)   Ratings
   -----------             -----------   -------
   Fund Based Limits            8.0      [ICRA]B- assigned
   Non-Fund Based Limits        3.0      [ICRA]B- assigned

The rating is constrained by the small scale of operations of the
firm which limits the bidding capacity of the firm, intensely
competitive industry resulting in weak order book position with no
new projects bagged since October 2011 and high working capital
requirement to fund the security deposits for bidding for new
projects resulting in net loss during FY12 and FY13. However, the
rating favorably factors in the long track record of the firm,
improvement in operating profitability of the firm and favorable
capital structure with gearing of .43x as on March 31, 2012.

Divya Construction Company was formed in 1970 as a partnership
firm and is registered as a class AA contractor. The firm was
started by Mr. Kirit Shah who has 60% share in the firm. The
remaining 40% is owned by Smt. Ratikanta Kirit Shah. The firm is
currently being managed by Mr. Kirit Shah and his son Mr. Nehal
Shah. The firm has executed civil works for government and semi-
government departments in Mumbai. In the past, DCC has executed
civil contracts for Public Works Department, Municipal Corporation
of Greater Mumbai and Mumbai Metropolitan Region Development

FRIENDS AGRO: ICRA Reaffirms 'B' Rating on INR9.6cr Loans
ICRA has re-affirmed the long term rating of '[ICRA]B' for INR9.60
crore fund based facilities of Friends Agro Industries.

   Facilities           (INR crore)   Ratings
   -----------          -----------   -------
   Fund Based Limits        9.60      [ICRA]B reaffirmed

The rating reaffirmation continues to factor in its modest scale
of operations and intensely competitive nature of industry which
limits the pricing flexibility of the industry participants
including FAI. This coupled with high working capital intensity of
the business has resulted in high gearing levels, weak debt
protection metrics and profitability indicators. 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. However, the
rating favorably takes into account the firm's experienced
management and proximity of the mill to major rice growing area
which results in easy availability of paddy.

Friends Agro Industries is a partnership firm established in
January 2010 with Mr. Gaurav Aneja, Mr. Sandeep Aneja, Mr. Vipin
Kumar and Mr. Vikram Kumar as partners. The firm is involved in
the milling and processing of basmati and non basmati rice and is
based out of Jalalabad, Punjab. The partners purchased the mill
and installed a sortex machine to manufacture and sell a value
added product.

Recent Results

During the financial year 2012-13, the firm reported a profit
after tax (PAT) of INR0.21 crore on an operating income of
INR24.46 crore as against PAT of INR0.07 crore on an operating
income of INR19.86 crore in 2011-12.

KINGFISHER AIRLINES: CEO Gets INR4cr Pay; Headcount Halves
The Times of India reports that grounded for almost a year now,
Kingfisher Airlines has given its CEO Sanjay Aggarwal a pay
package of nearly INR4 crore for the last fiscal, during which its
headcount nearly halved to 2,851 employees.

Mr. Aggarwal was paid total remuneration of INR3.99 crore for the
fiscal 2012-13, largely unchanged from about INR4.01 crore in the
previous year, the report says.

This "excludes accrued leave encashment and gratuity since the
same have been recognised for the company as a whole and cannot be
determined at an employee level," Kingfisher said about
Mr. Aggarwal's pay package in its latest annual report obtained by

Besides, Mr. Aggarwal is also "entitled to free use of the company
car and telephone", said the Annual Report which is being
circulated to Kingfisher shareholders ahead of its Annual General
Meeting on September 24, TOI relays.

According to the report, Mr. Aggarwal was earlier CEO of low-cost
airline Spicejet and there have been persistent rumours about his
exit from Kingfisher ever since the airline venture of Vijya
Mallya-led UB Group had to ground its operations in October last

TOI relates that the company has disclosed that at least five of
its employees got an annual pay package of INR1 crore or more in
the last fiscal, while as many as 44 staff members got a monthly
salary of INR5 lakh and more. In comparison, the company's overall
employee expenses fell sharply by 48% to INR349 crore in the
fiscal ended March 31, 2013, largely on account of a sharp decline
in its total number of employees from 5,696 to 2,851.

Kingfisher had accumulated losses of over INR16,000 crore as on
March 31, 2013, while it had a negative net worth of close to
INR13,000 crore. Its long-term borrowings stood at about INR6,900
crore, while short-term borrowings were INR1,750 crore at the end
of last fiscal, the report discloses.

                     About Kingfisher Airlines

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

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

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

LOCKSMITHS INDUSTRIES: ICRA Puts 'B' Ratings on INR5.25cr Loans
ICRA has assigned '[ICRA]B' rating to the INR3.75 crore long term
sanctioned fund based limit and INR1.50 crore of term loan limit
of M/s Locksmiths Industries Private Limited. ICRA has also
assigned '[ICRA]A4' rating to the INR2.75 crore short term
sanctioned non-fund based limit of LIPL.

   Facilities           (INR crore)   Ratings
   -----------          -----------   -------
   Fund Based limit        3.75       [ICRA]B Assigned

   Term loan limit         1.50       [ICRA]B Assigned

   Short-Term Scale        2.75       [ICRA]A4 Assigned
   Non-fund based limit

The assigned ratings of Locksmiths Industries Private Limited are
constrained by its moderate scale of operations of the company
with having low net-worth and modest turnover and high
indebtedness as of March 31, 2013 on account of debt financed
capital expenditure towards establishment of manufacturing
facility in Nashik undertaken in FY12 and high utilization of
working capital. The ratings of LIPL takes into account the
significant decline in the Operating Margin (OPBDITA/OI) in FY13
largely due to increased cost of imports of raw materials led by
the unfavorable movement in exchange rates and high working
capital intensity of the company on account of high level of
debtor days as reflected in over-utilisation of working capital
limits by the company.

Nevertheless, the ratings favorably factor in the established
track record of over two decades of the company in manufacturing
of luggage locking systems especially in combination locks as
evidenced by repeat orders received from its diversified customer
base. The ratings are further supported by the growth in OI in
FY13 on account of increase in order inflow, operational status of
new facility at Nashik for manufacture of plastic moulded
components and commencement of fabric trading as a new business
segment. In FY13, LIPL received a license to manufacture/assemble
locking systems certified by Travel Sentry of America (TSA) which
is expected to support the business expansion of the company going

Locksmiths Industries Private Limited is a Mumbai based entity
promoted by Mr. Nimesh Kishore Sheth and his family members. LIPL
commenced its business of manufacturing and supplying of locking
systems and hardware used in carry-bags, suitcases and trolleys in
1992 as a proprietorship concern and was converted into private
limited company in 1997. Presently, business segments of LIPL
includes manufacturing/ assembling of locking systems including
combination locks used in carry-bags, suitcases and trolleys and
plastic moulded components and trading of accessories used in
office's furniture and fabrics. Presently; LIPL has it
manufacturing facility located in Dombivalli and Nashik.

MANGALAM METALS: ICRA Assigns 'B+' Rating to INR12cr Cash Credit
ICRA has assigned a long term rating of '[ICRA]B+' to the INR12.00
crore cash credit facilities of Mangalam Metals & Ores Limited.

   Facilities            (INR crore)   Ratings
   -----------           -----------   -------
   Cash Credit Limits        12.00     [ICRA]B+ assigned

The rating takes into account MMOL's weak financial profile, which
is characterized by subdued profitability, attributable to the low
value addition in iron ore trading operations, leading, in turn,
to depressed debt coverage indicators as well. The company's
increasingly high working capital intensity, stemming from an
extended receivables cycle, with a significant amount of debtors
outstanding for over six months, further aggravates its already
strained liquidity position, although ICRA notes that the
company's capital structure has remained conservative on account
of past equity infusions. Since MMOL's operations are limited
mostly to Odisha and neighbouring states, the company remains
exposed to geographical concentration risks as well, and is also
exposed to the risks arising from the cyclicality and regulatory
risks inherent in the iron ore industry, which makes the
profitability and cash flows of iron ore players volatile.
Moreover, the intense competition present in the downstream iron
ore sector, which is likely to keep profit margins under check,
also has an adverse impact on the rating. The rating is, however,
supported by the longstanding experience of MMOL's promoters of
over one decade in the iron and steel industry, and the close
proximity of MMOL's operations to iron ore mines and its customer
base, which provides cost advantages in terms of lower
transportation costs.

Mangalam Metals & Ores Limited was established in 2003 by Mr. R.K.
Agarwal, Mr. G.K. Gupta and Mr. S.S. Agarwal. The company was
initially involved in the crushing of iron ore, but the crushing
unit has been shutdown since December, 2010 due to a lack of
government permissions for operation of such units across the
state of Odisha. Thus, the company, which had diversified into
iron ore trading in 2007-08, is now focusing only on this segment.

Recent Results

The company reported an operating income (OI) of INR74.72 crore
and a profit after tax (PAT) of INR1.10 crore during 2012-13
(provisional) as compared to an OI of INR137.23 crore and a PAT of
INR1.50 crore during 2011-12.

MEGHALAYA ENERGY: ICRA Assigns 'D' Ratings to INR120cr Loans
ICRA has assigned a long term rating of '[ICRA]D' to the INR115.00
crore term loan, and the INR5.00 crore unallocated facilities of
Meghalaya Energy Corporation Limited.

   Facilities              (INR crore)   Ratings
   -----------             -----------   -------
   Fund Based Limits          115.00     [ICRA]D; assigned
   Term Loan

   Unallocated Limits           5.00     [ICRA]D; assigned

The rating takes into account the recent delays in MeECL's debt
servicing on account of its stressed liquidity position, and the
uncertainties associated with the transfer scheme, along with the
timely compilation of MeECL's books of accounts, and completion of
audit for past periods, which in turn has affected the tariff
setting process. The rating also takes into account MeECL's
adverse financial profile, as indicated by its loss making nature
of operations, aggressive capital structure, inadequate coverage
indicators, and stretched receivables period. ICRA observes that
at present, MeECL's average realized tariff is lower than its
average cost of supply, which has lead to mounting losses for the
company. MeECL has recently commissioned the 126 MW Myntdu Leshka
HEP, which has seen significant cost escalations. With the
enhanced project cost awaiting CEA approval, the same has
adversely affected the approved tariff for the station. The rating
further reflects MeECL's large scheduled debt repayment
obligations, as well as its substantial debt-funded capex that is
lined up in the near to medium term, which exerts pressure on its
credit profile, and exposes the company to project execution
risks. The rating is further constrained by the company's high T&D
losses of 28.80% in FY12, and its exposure to hydrological risks,
with all owned generation stations being based on hydro-power. The
rating, however, derives support from MeECL's regulated nature of
operations based on 'cost-plus' tariff principles, and the
demonstrated support received from the Government of Meghalaya, in
the form of revenue subsidy, as well as grants for the development
of power generation, distribution and transmission infrastructure.

Incorporated in September 14, 2009, MeECL, a Government of
Meghalaya undertaking, was formed after the corporatization of the
erstwhile MeSEB, and is responsible for the coordinated
development of generation, distribution and transmission of
electricity in the State of Meghalaya. The company started
operations from April 01, 2010 onwards, post the transfer of
assets and liabilities of the erstwhile MeSEB. As per the
Government of Meghalaya's transfer notification, MeECL would be
further demerged into three separate entities which would be
responsible for the functions of power generation (Meghalaya Power
Generation Corporation Limited), distribution (Meghalaya Power
Distribution Corporation Limited) and transmission (Meghalaya
Power Transmission Corporation Limited) respectively. MeECL would
act as a holding company for the three separate power utilities.

Recent Results

MeECL reported a net loss of INR194.89 crore in FY12 (provisional)
on the back of an operating income of INR523.63 crore
(provisional), as against a net loss of INR81.15 crore
(provisional) on an operating income of INR465.84 crore
(provisional) during FY12.

NORTH BIHAR: ICRA Assigns 'D' Rating to INR525cr Term Loans
ICRA has assigned '[ICRA]D' rating to the INR525.0 crore term
loans of North Bihar Highway Ltd.

   Facilities            (INR crore)   Ratings
   -----------           -----------   -------
   Term Loans               525.0*     [ICRA]D; Assigned

   * includes subordinate term loan of INR 50.0 crore

The rating of NBHL is primarily constrained by the irregularities
in servicing of its term loan obligations. ICRA has also noted
that the funding of the project involves subordinate term loan of
INR50 crore which is to be repaid by first annuity payment date or
31-March-2014 whichever is earlier. Till June 21, 2013, about 78%
of the EPC cost has been incurred and the management expects to
apply for provisional completion (COD) by October 2013. In the
event of delay in achieving COD/provisional COD, NBHL will be
dependent on promoter's support for debt servicing. While
assigning the rating, ICRA has also taken note of its promoter's
track record in executing road projects, fixed price EPC
(Engineering, Procurement and Construction) contract, debt tie-up
in place, and annuity nature of the project with annuity provider
being National Highway Authority of India (NHAI).

Going forward, NBHL's ability to ensure timely debt servicing will
be the critical rating sensitivity. The other rating sensitivity
factors include timely infusion of remaining equity, complete
right of way availability, and timely execution of the project.

Incorporated in July 2010, North Bihar Highway Ltd is a Special
Purpose Vehicle (SPV) promoted by C&C Constructions Ltd and BSCPL
Infrastructure Ltd for implementing the 2-laning of Muzaffarpur
Sonbarsa section of NH-77 from km 2.8 to km 89.00 in the state of
Bihar on Design, Build, Finance, Operate and Transfer (DBFOT)
Annuity basis. The project was awarded by the National Highway
Authority of India (NHAI) to BSCPL-C&C joint venture (JV) on
Build-Operate-Transfer (BOT) basis with a concession period of 20
years (including construction period of 2.5 years) starting from
the appointed date (May 30, 2011). The JV has won the project in
competitive bidding where the proposals were ranked on the
criteria of lowest semi-annual annuity. NHAI will pay NBHL semi-
annual annuity (fixed semi-annual payments) of INR52.4 crore upon
successful completion of the project till the end of the
concession period. The first annuity payment will be made six
months after the Commercial Operation Date (COD).

PARVATI FABRICS: ICRA Assigns 'B+' Ratings to INR15cr Loans
ICRA has assigned a long-term rating of '[ICRA]B+' to the INR15.00
crore bank limits of Parvati Fabrics Limited.

   Facilities           (INR crore)   Ratings
   -----------          -----------   -------
   Long Term loan           9.50      [ICRA]B+ assigned
   Long Term Cash           5.50      [ICRA]B+ assigned
   Credit Facility

The rating assigned is constrained on account of the weak
financial profile of the company characterised by small scale of
operations, high gearing levels owing to the debt funded capex,
leading to weak coverage indicators and high working capital
intensity of the business. The rating is further constrained by
the fragmented nature of the fabric processing industry leading to
high competitive intensity and the vulnerability of profitability
to the raw material price fluctuations.

The rating, however, draws comfort from the long and established
presence of the company in the field of embroidered apparel
business and improved profitability indicators in recent fiscals
on account of an increase in the share of in-house processing of
fabric and the company's foray into manufacture of non-woven
textile, which has diversified its product profile. The rating
also favorably notes the locational advantage available to the
company due to its proximity to raw material sources and fabric
processing units.

Parvati Fabrics Ltd. was incorporated in 1994 in Surat (Gujarat)
by Mr. Dinesh Pacheriwal and Mr. Vikash Pacheriwal, as a private
limited company. It was converted to a public limited company in
FY 2012. PFL is engaged in the production of embroidered apparel
and fashion accessories, and non woven textiles. For ease of
maintaining accounts, the company has divided its operations into
three divisions: Parvati Fabrics, Parvati Fibres and Vedanti.
Parvati Fabrics division purchases polyester and viscose cloth
from the local weavers and sells embroidered apparel under the
brand name of 'Parvati'. Parvati Fibres was set up in July 2011
and is involved in the manufacture of Polypropylene (PP) based non
woven fabrics, which find application in packaging, medical and
agricultural purposes. Vedanti is a retail showroom established in
FY 2008 which stocks both the indigenously manufactured products
as well as supplies from other producers/ traders.

In FY2013, PFL reported a profit after tax (PAT) of INR0.83 crore
on an operating income of INR41.34 crore (provisional). In FY
2012, the company reported a PAT of INR0.73 crore on an operating
income of INR35.80 crore.

RAYANI SPINTEX: ICRA Assigns 'C+' Ratings to INR36cr Loans
ICRA has assigned a long-term rating of '[ICRA]C+' to the INR35.50
crore fund based facilities and INR0.50 crore non-fund based
facilities of Rayani Spintex Private Limited.

   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Fund Based limits-             20.00      [ICRA]C+ Assigned
   Term Loan

   Fund Based Limits-              3.00      [ICRA]C+ Assigned
   Cash Credit

   Non Fund Based Limits-          0.50      [ICRA]C+ Assigned
   Bank Guarantee

   Fund Based Limits-Proposed     12.50      [ICRA]C+ Assigned

The assigned rating is constrained by the instances of delays in
debt servicing in the recent past primarily on account of low cash
accruals due to RSPL's recent commencement of operations. The low
scale of operations, low pricing power given the commoditized
nature of the product and the highly fragmented industry are other
constraints. ICRA also notes that the company is vulnerable to
regulatory risks with regards to minimum support price for kapas
and export restrictions on kapas and yarn. RSPL also has a weak
capital structure with a gearing of 4.55 times as on 31st March
2013 owing to the debt funded capacity creation and the working
capital intensive nature of the business. RSPL's cash flows are
expected to remain stretched given the planned capex of INR 11
crore and the incremental working capital requirement to support
growth. ICRA notes that RSPL benefits from the experience of the
promoters in cotton ginning and trading activities and the
locational advantage resulting in ease of raw material
availability and logistic cost savings.

Rayani Spintex Private Limited was established by Mr. Rayani
Venkateswarlu, Mr. Borra Uma Maheshwara Rao and Mr. Unnava Subba
Rao in 2007 and is based in Guntur, Andhra Pradesh. RSPL
commissioned the cotton spinning mill of 11,520 spindles in
November'2011. The company caters to domestic as well as
international markets and is largely into manufacturing of 32s to
40s counts of cotton yarn.

Recent Results

As per audited results for FY 2013, RSPL reported an operating
income of INR31.88 crore with profit after tax of INR0.35 crore.

SAHUWALA HIGH: ICRA Assigns 'C-' Ratings to INR66.10cr Loans
ICRA has assigned an '[ICRA]C-' rating to the INR66.10 crore fund
based facilities of Sahuwala High Pressure Cylinders Private
Limited. ICRA has also assigned a short term rating of '[ICRA]A4'
to the INR12.50 crore non fund based bank facilities of SHPCL.

   Facilities            (INR crore)   Ratings
   -----------           -----------   -------
   Term Loan                 53.10     [ICRA]C- assigned
   Cash Credit               13.00     [ICRA]C- assigned
   Non fund-based limits     12.50     [ICRA]A4 assigned

The '[ICRA]C-/[ICRA]A4' ratings take into account the continuing
losses and consequent stretched liquidity position of the SHPCL
which has led to restructuring of the company's term loans in
September 2012. SHPCL was incorporated in 2006 as an Export
Oriented Unit for manufacture of high pressure cylinders for CNG
kits and Industrial Applications. Cylinder manufacture business is
highly capital intensive; SHPCL undertook a green field project at
a capex of INR64 crore funded by term loans of INR 42 crore. The
commercial production started in August 2008 which coincided with
global recession and the company's export agreements were
terminated by the prospective clients. Subsequently SHPCL
commenced supply to domestic clients, primarily in the automotive
industry. However the company has not been able to generate
profitable sale volumes and the capacity utilization has remained
low since commencement (around 20% in FY 12 and FY 13). Further,
the company has not been able to completely pass on the steep
rises in input prices to domestic clients on account of low
bargaining power, resulting in operating losses in FY 12. The
company has been largely dependent on equity infusion to fund the
losses and meet debt obligations. The ratings however, positively
factor the promoter's experience of 3 decades in the LPG cylinder
manufacture business and established relationship of the Sahuwala
group with various OEMs and oil companies. The company's ability
to competitively manufacture and to market its products will be
the key rating sensitivities over medium term.

SHPCL incorporated in 2006, is engaged into manufacture of high
pressure cylinders for CNG kits and Industrial Applications. The
company's manufacturing facility is located in Visakhapatnam and
has an annual capacity of 2 lakh cylinders. The commercial
production started in August 2008. The company supplies CNG
cylinders to OEMs like Bajaj Auto and TVS Motors. SHPCL is part of
Sahuwala group of companies which have business in flourmills,
LPG/ CNG cylinder manufacture, textiles, pre-stressed concrete
sleepers, etc.

SHPCL recorded a net loss of INR19.78 crore on a turnover of
INR27.28 crore in FY 12.

SHRI GOVINDARAJA: ICRA Reaffirms 'C' Ratings on INR85.97cr Loans
ICRA has re-affirmed the rating assigned to the INR59.97 crore
term loan facilities and the INR26.0 crore fund-based facilities
of Shri Govindaraja Mills Limited at '[ICRA]C'. ICRA has also re-
affirmed the rating assigned to the INR12.25 Crore non-fund
facilities and the INR12.0 crore fund-based facilities of SGML at

   Facilities             (INR crore)   Ratings
   -----------            -----------   -------
   Term loans                59.97      [ICRA]C/re-affirmed
   Fund Based limits         26.00      [ICRA]C/re-affirmed
   Fund Based limits         12.00      [ICRA]A4/re-affirmed
   Non Fund Based limits     12.25      [ICRA]A4/re-affirmed

The rating re-affirmation considers the established market
presence and rich experience of promoters in the spinning business
spanning more than five decades, SGML's diversified revenue base
and wide product portfolio with higher proportion of finer counts
and value added yarn supporting earnings. The rating continues to
remain constrained by the stretched financial profile of the
Company characterized by high gearing, inadequate coverage
indicators and high working capital intensity. Weak accruals over
the past few fiscals coupled with the aggressive debt funded
expansion undertaken by the company in the past have resulted in
gearing remaining very high at 8.7 times as on 31st March 2013.
The rating takes into account the intense competition prevalent in
the spinning industry which restricts pricing flexibility and the
adverse power situation prevailing in Tamil Nadu and Andhra
Pradesh which has significantly impacted volumes and earnings.
ICRA notes that the management of the Govindaraja group is
planning to merge the five entities within the group to
consolidate all the assets and liabilities into the flagship
entity to leverage on its brand name. ICRA will continue to
monitor the progress and suitable rating action will be taken once
the final structure evolves.

SGML, incorporated in 1980, is primarily engaged in the
manufacture of cotton yarn. The Company has an installed capacity
of 108,504 spindles and 1,920 rotors across its two spinning units
at Aruppukottai (near Madurai in Tamil Nadu). The Company also has
a small presence in fabric weaving with an installed capacity of
15 looms. SGML has wind turbine generators (with installed
capacity of 4.65 MW) in Tamil Nadu, to help control power costs to
some extent. SGML produces 100 per cent grey cotton yarn ranging
from 2s to 160s counts with over 50 per cent of yarn revenues
derived from finer counts. The Company also has a good presence in
the value-added domain through products such as gassed, high-
twisted and compact spun yarn. Around 25 per cent of the Company's
yarn business is presently derived from exports.

SGML is part of the Sri Jayavilas Group based in Aruppukottai,
which has a presence across yarn spinning as well as passenger and
cargo transportation. SGML is set up under the Shri Govindaraja
Group, which was established by Mr. T.R. Varadarajan (son of Late
Mr. Sathu T. Ramasamy Naicker) and is managed by his son Mr.
T.R.V. Ram Kumar at present. The Shri Govindaraja Group comprises
five other entities besides SGML, all of which are engaged in yarn
spinning (cotton/ polyester/ viscose). SGML is closely held by the
group's promoters/ promoters' family.

SWAYAMPRABHA UDYAM: ICRA Reaffirms 'B' Rating on INR0.80cr Loan
ICRA has reaffirmed '[ICRA]B' rating to the INR0.80 crore long-
term fund based limits of Swayamprabha Udyam & Co. ICRA has also
reaffirmed '[ICRA]A4' rating to the INR4.95 crore short-term fund
based limits of the firm.

   Facilities         (INR crore)   Ratings
   -----------        -----------   -------
   Cash Credit           0.80       [ICRA] B/(Reaffirmed)
   Pledge                4.95       [ICRA] A4/(Reaffirmed)

The reaffirmation of ratings takes into account the firm's long-
track record in the cashew processing industry with over 13 years
of operations. The ratings, however, continue to be constrained by
the SUC's small scale of operation and the de-growth in the top-
line in FY13 on account of lower revenue from trading of raw
cashew nut. These apart, the ratings are constrained by SUC's -
stretched financial risk profile characterized by thin operating
margin, high gearing and weak debt coverage indicators, In
addition, the firm's working capital intensity remained moderately
high (NWC/OI of -28%), mainly on account of high receivables and
the high inventory as on March 31, 2013 which increased on account
of higher raw cashew nut (RCN) stocked by the firm in anticipation
of favorable prices. The ratings also factor in the SUC's exposure
to volatility in raw cashew nut prices as evidenced by the
fluctuation in operating margin in the past and by foreign
currency movements and the intensely competitive nature of the

Swayamprabha Udyam & Co, was established in 2000, with Mr. Ajith
Kamath and Mrs. Shobha Kamath (mother of Mr. Ajit Kamath) as
partners, to manufacture and process cashew kernels from raw
cashew nuts. The firm was reconstituted in July 2011, with Mrs.
Anasooya Kamath (Wife of Mr. Ajith Kamath) joining as a partner
replacing Mrs. Shobha Kamath. The firm imports the raw cashew nuts
(RCN's) primarily from African countries like Guinea
Bissau,Tanzania and Ivory Coast. The RCN's are further processed,
graded, packed and sold in domestic market.

Recent Results

Swayamprabha Udyam & Co earned a profit after tax (PAT) of INR0.14
crore on an operating income of INR18.87 crore in the FY 2012-
13(Provisional Numbers).  In FY12 firm earned a PAT of INR0.10
crore on an OI of INR29.19 crore.

V. K. POLYCHEM: ICRA Assigns 'B' Rating to INR5cr Loans
ICRA has assigned a long term rating of '[ICRA]B' and a short term
rating of '[ICRA]A4' to the INR60.0 Crore bank lines of V. K.
Polychem Private Limited.

   Facilities             (INR crore)   Ratings
   -----------            -----------   -------
   Fund Based Limits         5.00       [ICRA]B assigned
   Non Fund Based Limits    25.00       [ICRA]A4 assigned
   Unallocated              30.00       [ICRA]B/[ICRA]A4 assigned

The ratings are constrained by the high competitive intensity and
fragmentation in the chemicals trading industry; the low profit
margins inherent in trading business; vulnerability of
profitability to commodity price risk and forex fluctuation risk;
lack of relationship with suppliers and lack of experience of the
promoters in the chemical trading business. However, ICRA takes
note of the established relations with customers in the plywood
and mica manufacturing industry and favourable demand outlook in
the long term for the chemicals that the company intends to trade

V. K. Polychem Private Limited was incorporated in August 2012 and
commenced operations in November 2012. The company was formed by
the brothers Mr. S. K. Agarwal, Mr. A. K. Agarwal and Mr. R. K.
Agarwal as a new business for the next generation of the family.
The company has traded mostly in Phenol but over time the
promoters plan to expand the portfolio of products to other
chemicals such as Melamine, Toluene etc. The company also owns a
godown at Mundka in Delhi. The promoters are also involved in the
business of plywood manufacturing and own two such units at
Shahjahanpur in the state of Uttar Pradesh through group

Recent Results

The company posted a net profit of INR0.05 crore on net sales of
INR4.13 crore in FY13.


LIPPO KARAWACI: S&P Withdraws 'axBB+' Rating on US$273.3MM Notes
Standard & Poor's Ratings Services said that it has withdrawn its
'axBB+' ASEAN regional scale rating on the US$273.3 million senior
notes due Nov. 14, 2020, that Indonesia-based property developer
PT Lippo Karawaci Tbk. (BB-/Stable/--; axBB+/--) guarantees.  The
issuer of the notes is Theta Capital Pte. Ltd., a special purpose
vehicle that Lippo Karawaci owns.  S&P erroneously assigned the
ASEAN regional scale rating to the notes on Jan. 7, 2013.  S&P
only assign ASEAN scale issue ratings to debt denominated in a
currency issued by an ASEAN country.  The 'BB-' issue rating on
the notes and the ratings on Lippo Karawaci are unaffected.


MALAYSIA: Fitch Says Fiscal Policy Shift Faces a Tough Road Ahead
Malaysia's measures, announced on September 2, to lower fiscal
subsidies and limit import-intensive investment are a strong
statement of the government's intention to stem pressure on the
sovereign credit profile from deteriorating public finances (as
reflected in the Negative Outlook assigned to the 'A-' rating in
July 2013).

The measures are consistent with Fitch Ratings' fiscal
projections, and are credit-neutral over the near term. Further
steps to improve fiscal sustainability and long-term macroeconomic
stability could see the ratings revert to Stable Outlook.

The fuel subsidy reduction is a first, small, step ahead of
possible additional measures to shore up public finances.
Projected near-term fiscal savings from the 20 sen/litre hike in
the price of subsidised fuel products are MYR1bn in 2013 (0.1% of
GDP) and MYR3bn (0.3% of GDP) in 2014. Fitch was already factoring
in a net 1ppt of GDP reduction in government expenditure in its
fiscal projections for the period to 2015, so these measures in
themselves do not significantly alter the agency's analysis.

The timing of the announcement seems responsive to heightened
global market volatility brought on by impending Fed tapering and
greater investor scrutiny of vulnerabilities in emerging markets.
A more calibrated pace of public investment prioritising non-
import-intensive projects should limit the risk of near-term
fiscal overruns as well as lower the likelihood of the current
account slipping into a deficit. "We estimate that Malaysia's
current account surplus will fall - sharply - to 3% of GDP this
year after averaging 11% over 2009-2012," the report says.

However, the fundamental driver of the narrowing current account
surplus has been the widening public sector deficit, drawing
attention to the health of medium-term public finances. Effective
fiscal consolidation in the next 12 months will by no means be
easy. This is for two reasons:

"First, the Malaysian economy is undergoing a terms-of-trade
shock, with the prices of key commodity exports falling sharply.
In this environment, expenditure restraint could raise downside
risks to our GDP growth forecasts of around 5%, year-on-year, in
2013-2014. If this were to materialise, slowing growth could also
lower tax receipts, making it that much more difficult to achieve
the medium-term government deficit target of 3% of GDP by 2015,"
Fitch says.

The second reason is that the political position of the ruling
coalition has weakened following the May election. This means the
government is likely to continue to encounter difficulties in
implementing far-reaching, and much delayed, revenue-enhancing
reforms such as the Goods & Services Tax (GST).

The upshot is that the corrective fiscal measures, announced on
September 2, are too small to alter the Negative Outlook on
Malaysia's 'A-' sovereign rating. Sustained reform implementation,
if accompanied by structural measures to broaden the revenue base,
could make a difference to the sovereign's credit profile. But
such an intensification of reforms that can also withstand
potential growth headwinds, is not on the cards at present.

N E W  Z E A L A N D

SPRINGFIELD HOTEL: Canterbury Pub Placed in Liquidation
Georgina Stylianou at The Press reports that residents of a small
Canterbury town are hitting back at claims their "red-neck
homophobic" mentality caused the demise of their local pub, the
Springfield Hotel.

Malcolm West, former owner of the Springfield Hotel, recently
spoke to The Press about the failure of his business and said he
received "constant name calling and abuse" because he was gay and
advertised his business as a gay-friendly establishment.

Rising rent, insurance premiums and the Canterbury earthquakes had
also affected business, he said, and his company was placed into
liquidation early this month, according to the report.

"It was a constant battle and I didn't have the support of the
locals," The Press quotes Mr. West as saying.  "I found [the
community] very homophobic . . . and it was really difficult."

The Press relates that residents said they resent the claims and
feel Mr. West's failure had nothing to do with his sexuality but
more to do with his business decisions -- including converting the
pub's toilets into unisex facilities.

Public records show Contact Energy filed liquidation applications
in the Christchurch High Court in May this year and February last
year, the report notes.

Ernst & Young was appointed liquidator of Springfield Hotel 2009
Ltd on August 8, says The Press.


MANILA ELECTRIC: S&P Assigns 'BB' Rating to Proposed U.S.$ Notes
Standard & Poor's Ratings Services assigned its 'BB' rating to a
proposed issue of U.S. dollar senior unsecured notes by
Philippines-based power utility Manila Electric Co. (Meralco;
BB/Stable/--; axBBB-).

The rating on the proposed notes is subject to S&P's review of the
final issuance documentation.  Meralco plans to use the proceeds
from the proposed notes to fund capital expenditure.

The rating on Meralco reflects the company's dominant position in
power distribution, improving cash flows supported by S&P's
forecast of robust sales, and a stable regulatory framework in the
Philippines. Meralco's improving regulatory track record will
enable the company to fully recover all pass-through charges
(including generation, transmission, taxes, system loss, and
universal charge).  It also reduces potential volatility in the
company's earnings profile and underpins a stable industry risk

S&P believes Meralco's re-entry into power generation could weaken
its financial risk profile if it pursues an aggressive strategy
coupled with high dividend payouts.  S&P anticipates that the
projects will increase Meralco's debt-funded capital expenditure
because S&P expects the company to hold a large share in each of
the generation projects.  These generation-related projects will
also expose Meralco to execution risks.

The stable outlook on the long-term corporate credit rating on
Meralco incorporates S&P's expectation that the regulatory regime
will remain steady and that the company's sales will stay strong
over the next 18-24 months.  S&P also expects that Meralco will
expand its power generation business at a balanced pace and will
prudently fund the expansion, such that it does not hurt the
forecast improvement in the company's financial performance.
Furthermore, S&P believes that Meralco will manage dividend payout
within its policy levels of 50% of consolidated core net income of
the year.

S&P may lower the rating if: (1) regulatory changes adversely
affect Meralco; (2) power demand weakens significantly;
(3) Meralco's expansion in power generation is more aggressive or
results in higher debt than we anticipated; or (4) the company is
aggressive in dividend payments to shareholders.  The debt-to-
EBITDA ratio deteriorating to 3x-3.5x on a sustained basis (after
adjusting for obligations from power purchase agreements) could be
a downgrade trigger.

Prospects for an upgrade appear limited over the next 12-24
months, given Meralco's significant planned capital spending and
the execution risks associated with expansion into the generation
business.  An improvement in Meralco's cash flows and a
significant change in the business risk profile could positively
affect the rating.  This assumes that the company maintains
financial discipline while investing in its power generation
projects, including more conservative dividend payout to preserve
cash, if required.


SINGAPORE TECHNOLOGIES: Places PMB Malaysia Unit in Liquidation
Singapore Technologies Engineering Ltd said that its electronics
arm, Singapore Technologies Electronics Limited, has placed PMB
Project Management Business Sdn Bhd under members' voluntary
liquidation. PMB Malaysia is an indirect wholly owned subsidiary
of ST Electronics.

The liquidation of PMB Malaysia is a result of ongoing business
review to streamline capabilities and optimise resources within
the electronics sector and is not expected to have any material
impact on the consolidated net tangible assets per share and
earnings per share of ST Engineering for the current financial

ST Engineering (Singapore Technologies Engineering Ltd) is an
integrated engineering group providing solutions and services in
the aerospace, electronics, land systems and marine sectors.
Headquartered in Singapore, the Group reported audited revenue of
S$6.380b in FY2012 and ranks among the largest companies listed on
the Singapore Exchange. ST Engineering has more than 22,000
employees worldwide, and over 100 subsidiaries and associated
companies in 23 countries and 41 cities.

ST Electronics (Singapore Technologies Electronics Limited), the
electronics arm of ST Engineering, delivers innovative system
solutions to government, commercial, defence, and industrial
customers worldwide. With a presence in more than 30 cities in 20
countries, ST Electronics markets its solutions to more than 100
countries internationally. It specialises in the design,
development and integration of advanced electronics and
communications systems, such as broadband radio frequency and
satellite communication, e-Government solutions, information
communications technologies and IT, rail and traffic management,
real-time command and control, modelling and simulation,
interactive digital media, training services, intelligent building
management and information security.


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

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 ***