TCRAP_Public/130916.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

          Monday, September 16, 2013, Vol. 16, No. 183


                            Headlines


A U S T R A L I A

BACCHUS DISTILLERY: Cor Cordis Appointed as Administrator
CROSS CITY: Operator Enters Into Voluntary Administration
GIUSEPPE ARNALDO: Restaurant Placed in Liquidation
IMPALA TRUST 2013-1 ABS: S&P Assigns BB Rating to Class E Notes


C H I N A

CHINA CEETOP.COM: Weiliang Liu Elected to Board


I N D I A

AAKASH GLOBAL: CARE Assigns 'BB' Rating to INR18cr LT Bank Loans
AJAY PLASTIC: CARE Rates INR9cr Long-Term Bank Loans at 'BB+'
ARTEDZ FABS: CARE Rates INR16.35cr Long-Term Loans at 'B'
BHAGWATI KRIPA: CARE Assigns 'BB+' Rating to INR11.73cr Loans
BLUEBIRD SOFTWARE: CARE Rates INR100cr LT Bank Loans at 'BB-'

DHANANIA RUBBER: CARE Rates INR14.15cr LT Bank Loans at 'BB-'
INVESTMENT & PRECISION: CARE Rates INR40.40cr Bank Loans at 'BB+'
NIKHIL FOOTWEARS: CARE Assigns 'BB+' Rating to INR75.75cr Loans
SAI AARAV: CARE Rates INR7cr Long-Term Bank Loans at 'BB'
SEQUENT SCIENTIFIC: CARE Reaffirms 'B' Rating on INR178cr Loans

SERMAN INDIA: CARE Assigns 'B+' Rating to INR3.5cr LT Bank Loans
S.P.R CONSTRUCTIONS: CARE Assigns 'BB-' Rating to INR2.25cr Loans
VATSA AUTOMOBILES: CARE Rates INR10.69cr Bank Loans at 'B+'
* High Borrowing Costs to Constrain Margins for Indian Companies


J A P A N

GK MLOX3: Fitch Affirms Rating on Class D Notes at 'CC'


N E W  Z E A L A N D

ALLIED FARMERS: Escapes Insolvency After Unit Raises NZ$600K


P A K I S T A N

PAKISTAN STEEL: Likely to Shut Operations


P H I L I P P I N E S

UNITRUST DEVELOPMENT: PDIC to Continue Payments Until October 7


S O U T H  K O R E A

* Korean Banks Likely to Remain Under Pressure, Fitch Says


S R I  L A N K A

BANK OF CEYLON: Fitch Assigns 'BB-' Issuer Default Ratings


X X X X X X X X

* Moody's Expects Low High-Yield Corporate Defaults in AP Area


                            - - - - -


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


BACCHUS DISTILLERY: Cor Cordis Appointed as Administrator
---------------------------------------------------------
Yolanda Redrup at SmartCompany reports that Australia's leading
manufacturer of cream liqueurs has collapsed, with the spirits and
pre-mixed beverages market coming under a significant amount of
pressure during the past several years.

The Bacchus Distillery located in South Dandenong, Victoria,
manufactures the popular liqueur brands Cowboy and Forbidden, a
selection of pre-mixed and ready-to-serve drinks, Damirov vodka
and a number of products under its own Bacchus brand.

On September 9 the business was placed in administration, with
Bruno Secatore -- bsecatore@corcordis.com.au -- and
Daniel Juratowitch -- djuratowitch@corcordis.com.au -- of Cor
Cordis appointed as administrators, SmartCompany discloses.

The report says Bacchus Distillery products are currently
distributed by Epoch Wine Group, a partnership formed in July this
year.

The manufacturer was established in 1994 and has grown to be the
largest cream liqueur manufacturer in the Asia Pacific Region. As
well as manufacturing products, the company has a research and
development team dedicated to formulating new products and
improving existing recipes.

In 2005 the distillery won a federal government grant for SMEs and
received $335,748 to develop the technology to produce a clean
wine spirit aimed at delivering a low-cost, high-quality product.

Bacchus Distillery chief executive Damien Hajdinjak moved to
Australia in the 1980s. His family had a long history in alcohol
manufacturing in Croatia, and they had previously produced premium
liqueur for the royal courts of Europe.


CROSS CITY: Operator Enters Into Voluntary Administration
---------------------------------------------------------
Jacob Saulwick at The Sydney Morning Herald reports that Sydney's
Cross City Tunnel has financially failed for the second time in
eight years, entering voluntary administration on September 13.

SMH relates that the decision by its owners, Cross City Motorway
Pty Ltd, to appoint administrators follows the decision of the New
South Wales Office of State Revenue to pursue an unpaid
AUD64 million tax bill.

According to the report, motorists will not notice a change
because the administrators, David Merryweather and Gregory Hall of
PricewaterhouseCoopers, are to maintain the $4.91 one-way toll for
the motorway, which is now likely to be put up for sale.

SMH says the controversial tunnel from Darling Harbour to
Rushcutters Bay opened in 2005 amid predictions by its first
owners that it would soon attract 70,000 motorists a day.

But only about 20,000 motorists used the city bypass tunnel in
2005, and it is estimated that fewer than 40,000 a day use it now,
the report relays.

SMH notes that after it went into receivership in 2006, the
present owners -- Royal Bank of Scotland, EISER Infrastructure
Partners and Leighton Contractors -- bought it in 2007.

According to SMH, the government insists they should have paid
stamp duty on that transaction but last month those owners won a
case in the NSW Supreme Court saying they did not need to.

When the Office of State Revenue said it would appeal that
decision last week, it cruelled the chances of the motorway
extending its bank loans, relates SMH. "Naturally we are
disappointed at this outcome," the report quotes Chairman Ed
Sandrejko as saying. He blamed its demise on the refusal of the
previous government to funnel enough traffic into it, the report
adds.


GIUSEPPE ARNALDO: Restaurant Placed in Liquidation
--------------------------------------------------
Cameron Houston and Chris Vedelago at The Sydney Morning Herald
report that the hospitality empire of celebrity chef Robert
Marchetti is on the brink of collapse after Crown Casino
restaurant Giuseppe, Arnaldo & Sons was placed in liquidation with
more than 100 creditors owed AUD1.6 million.

SMH relates that the restaurateur has also failed to pay
substantial debts at Sydney's North Italian, which is believed to
be on the market, while he is also being pursued for unpaid rent
by the landlord of his former upmarket eatery, Neild Avenue, in
Rushcutters Bay.

According to the report, the first hint of financial difficulties
came when Giuseppe, Arnaldo & Sons suddenly closed its doors last
month, with a hand-painted sign bidding "Ciao" to its customers.

But the scale of the financial wreckage became clearer at a
creditors meeting on September 13, where more than 50 suppliers
and 30 staff discovered they were unlikely to recoup their losses.

Citing documents lodged with the Australian Securities and
Investments Commission, SMH discloses that Mr. Marchetti's company
Cucina Casalinga Italian owes Crown Casino more than AUD217,000,
while the Australian Tax Office is owed AUD263,330. The business
had just AUD27,500 in the bank and stock valued at AUD30,000, when
liquidators were appointed, the report notes.

Several creditors were left furious by Mr. Marchetti's failure to
attend the meeting at Crown Casino, which was compounded by a
tweet he sent on September 13 as liquidators provided a grim
assessment of his failed business, SMH adds.


IMPALA TRUST 2013-1 ABS: S&P Assigns BB Rating to Class E Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned ratings to seven
classes of auto-, equipment-, fixtures- and fittings-, and medical
practice loan-backed, floating-rate, pass-through notes issued by
Perpetual Trustee Co. Ltd. as trustee of IMPALA Trust No. 1 - Sub
Series 2013-1.

The transaction is a securitization of fully and partially
amortizing Australian-dollar, auto-, equipment-, and fixtures- and
fittings-backed finance leases, commercial hire-purchase
agreements, and goods mortgages mainly offered to health-industry
participants and accountants, as well as practice loans offered to
health-industry participants.  The receivables were originated by
Investec Professional Finance Pty. Ltd. and Investec Bank
(Australia) Ltd.

The ratings reflect S&P's view of:

   -- The creation of a new special-purpose subseries, coupled
      with the transaction's legal structure.  The entity, IMPALA
      Trust No. 1 - Sub Series 2013-1, meets Standard & Poor's
      special-purpose entity criteria.

   -- The credit support for each class of notes, which is
      provided in the form of subordination comprising 8.4%
      provided at 'A-1+ (sf)' and 'AAA (sf)', 6.6% provided at
      'AA (sf)', 5.2% provided at 'A (sf)', 3.6% provided at
      'BBB (sf)', 3.1% provided at 'BB (sf)', and 2.4% provided
      at 'B (sf)'.

   -- Liquidity support equal to 1.11% of the outstanding amount
      of receivables, amortizing to 50% of the initial limit.
      Liquidity is funded from note issuance at closing, and will
      be held in the liquidity account.

   -- Principal collections also may be used to meet short-term
      liquidity demands.  With exception of the class A notes, a
      class of notes cannot draw down liquidity or principal if
      there are unreimbursed charge offs against that class of
      notes.  The seller notes do not have access to these
      liquidity mechanisms.

   -- The condition that all contractual payments, including the
      residual or balloon payments, are an obligation of the
      borrower.  As a result, the issuer is not exposed to any
      market-value risk associated with the sale of the autos,
      equipment, and fixtures and fittings (on performing loans),
      which is a risk that may be associated with other products,
      such as operating leases.

   -- The benefit of a fixed-to-floating interest-rate swap
      provided by Australia and New Zealand Banking Group Ltd. to
      hedge the mismatch between the fixed-rate interest and
      rental payments on the receivables, and the floating-rate
      coupon payable on the notes.

A copy of Standard & Poor's complete report for IMPALA Trust
No. 1 - Sub Series 2013-1 can be found on RatingsDirect, Standard
& Poor's Web-based credit analysis system, at
http://www.globalcreditportal.com. The issuer has informed
Standard & Poor's (Australia) Pty Limited that the issuer will be
publically disclosing all relevant information about the
structured finance instruments that are subject to this rating
report.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

The Standard and Poor's 17g-7 Disclosure Report included in this
credit rating report is available at:

        http://standardandpoorsdisclosure-17g7.com/1773.pdf

RATINGS ASSIGNED

Class              Rating           Amount (mil. A$)
A1                 A-1+ (sf)         55.0
A2                 AAA (sf)         199.7
B                  AA (sf)            5.0
C                  A (sf)             4.0
D                  BBB (sf)           4.3
E                  BB (sf)            1.5
F                  B (sf)             1.79
Senior seller      N.R.               5.0
Junior seller      N.R.               1.9
N.R.--Not rated.



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


CHINA CEETOP.COM: Weiliang Liu Elected to Board
-----------------------------------------------
China Ceetop.com, Inc., held its 2013 Annual Meeting of its
Shareholders on Sept. 6, 2013, at which the shareholders: (1)
elected Weiliang Liu as director, (2) approved an amendment to the
Articles of Incorporation to change name to Ceetop, Inc., (3)
ratified the appointment of Clement C. W. Chan & Co., as the
Company's independent registered public accounting firm, (4)
authorized the Company's 2013 Equity Incentive Plan, (5)
approved, on an advisory basis, the compensation of the Company's
named executive officers, and (6) indicated "Every Three Years" as
the desired frequency of future advisory vote on executive
compensation.

The Company has decided, in light of that vote, that the Company
will include a shareholder vote on the compensation of executives
in its proxy materials every three years.

                      About China Ceetop.com

Shenzhen, China-based China Ceetop.com, Inc., is an Oregon-
registered corporation.  Before 2013 the company owned and
operated the online retail platform, http://www.ceetop.com/
Due to excessive competition in online retail, the Company has
transformed itself into an integrated supply chain services
provider, and focuses on Business to Business "B to B" supply
chain management and related value-added services among
enterprises.

The Company' balance sheet at June 30, 2013, showed $3.5 million
in total assets, $4.0 million in total liabilities, and a
stockholders' deficit of $463,482.

                     Going Concern Uncertainty

"For the year ended Dec. 31, 2012, our independent auditors, in
their report on the financial statements, have indicated that the
Company has experienced recurring losses from operations and may
not have enough cash and working capital to fund its operations
beyond the very near term, which raises substantial doubt about
our ability to continue as a going concern.  Management has made a
similar note in the financial statements.  As indicated herein, we
must raise capital for the implementation of our business plan,
and we will need additional capital for continuing our operations.
We do not have sufficient revenues to pay our expenses of
operations.  Unless the Company is able to raise working capital,
it is likely that the Company either will have to cease operations
or substantially change its methods of operations or change its
business plan," the Company said in its quarterly report for the
period ended June 30, 2013.



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


AAKASH GLOBAL: CARE Assigns 'BB' Rating to INR18cr LT Bank Loans
----------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Aakash Global Foods Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities        18.00    CARE BB Assigned
   Short-term Bank Facilities        0.05    CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Aakash Global Foods
Private Limited are primarily constrained on account of its
ongoing predominantly debt-funded capex, modest scale of
operations in a highly competitive food processing industry and
susceptibility of its profit margins to the volatile raw material
prices.

The ratings, however, draw strength from the experience of the
promoters, the established presence with a strong marketing and
distribution network and comfortable solvency and liquidity
indicators.

The ability of AGF to successfully implement its ongoing capex
without any cost and time overrun along with an increase in its
scale of operations and profitability will be its key rating
sensitivities.

Established in 1992, AGF is promoted by Mr. Rajneesh Gupta and Mr.
Rajesh Gupta, both having an industry experience of 20 years and
12 years, respectively. AGF is engaged in the manufacturing of
sweets, namkeens and sells it under the brand name 'Aakash
Namkeen'. Its manufacturing unit is located at Indore (Madhya
Pradesh) and has an installed capacity of manufacturing 12 metric
tonnes per day (MTPD).

AGF has received ISO certification for receiving, sorting,
grinding, mixing, frying, packaging and dispatch of namkeens and
sweet (sohan papdi). Furthermore, it has received a manufacturer
license from Food Safety and Standards Authority of India under
the Food and Safety Standards Act, 2006.

During FY13 (provisional; refers to the period April 1 to
March 31), AGF registered a total income of INR30.28 crore and a
PAT of INR1.74 crore as against a PAT of INR1.11 crore in FY12.


AJAY PLASTIC: CARE Rates INR9cr Long-Term Bank Loans at 'BB+'
-------------------------------------------------------------
CARE assigns 'CARE BB+' rating to the bank facilities of Ajay
Plastic Industries.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities        9        CARE BB+ Assigned

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

Rating Rationale

The rating assigned to the bank facilities of Ajay Plastic
Industries is constrained by its small scale of operations,
leveraged capital structure, susceptibility of margins to the
volatility in the raw material prices and exposure to foreign
exchange fluctuation risk. The rating also factors in the high
level of intergroup transactions.

The rating, however, is supported by the experienced promoters and
management team, long track record of operations, established
brand name and benefits derived from being a part of a large
group.

The ability of the firm to improve its scale of operations and
capital structure are the key rating sensitivities.

API is a proprietorship firm incorporated in 1974. It is a part of
the Action Group that has been present in the footwear business
for about four decades. The group has different entities for
different brands and is headed by different family members. API is
owned by Mr. Naresh Aggarwal.

API is engaged in the manufacturing of PVC footwear, which is sold
under the "Micro" brand. API has two manufacturing facilities
located at Delhi and Bahadurgarh, having a combined installed
capacity of manufacturing 35 lakh pairs of shoes per annum.

API registered a PAT of INR2.42 crore on a total income of
INR23.51 crore in FY12 (refers to the period April 1 to
March 31). During FY13, based on provisional results, the firm has
reported a PAT of INR2.50 crore on a total income of
INR30.90 crore.


ARTEDZ FABS: CARE Rates INR16.35cr Long-Term Loans at 'B'
---------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Artedz Fabs
Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities      16.35      CARE B Assigned

Rating Rationale

The rating assigned to the bank facilities of Artedz Fabs Private
Limited is constrained by its small scale of operations, highly
leveraged capital structure, weak debt coverage indicators and
project execution risk. The rating is further constrained by
AFPL's working capital intensive nature of operations, volatile
raw material prices and presence in highly fragmented industry
with high competition from organized and unorganized sector.
The above constrains far outweigh the benefit derived from the
vast experience of promoters in the textile business and their
financial support in past.

The ability of AFPL to complete the ongoing capex without any time
and cost overrun and subsequently achieve the envisaged revenue
and profitability amidst increasing competition along
with efficient management of working capital cycle are the key
rating sensitivities.

Incorporated in 2006, AFPL has been into manufacturing of cotton
fabric for shirting, wherein the company procures cotton yarn from
the domestic market and subsequently processes it through
undertaking partial manufacturing process at its rented premises
and balance through outsourcing.

Prior to FY12, the company operated from its own premises at
Bhiwandi; however in FY12, the company's factory building
collapsed and thereby the company had to follow the aforesaid
model for operations. Nevertheless, the company is re-setting up
its factory building, which is likely to commence commercial
production by December 2013.

As per FY12 results (FY refers to period April 01 to March 31),
AFPL reported total operating income INR25.17crore (up by 18% vis-
a-vis FY11), however incurred heavy loss on account collapse
of factory building in Bhiwandi. As per provisional FY13, AFPL has
earned revenue of INR27.81 crore.


BHAGWATI KRIPA: CARE Assigns 'BB+' Rating to INR11.73cr Loans
-------------------------------------------------------------
CARE assigns 'CARE BB+' and 'CARE A4' ratings to the bank
facilities of Bhagwati Kripa Paper Mills Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long term Bank Facilities       11.73     CARE BB+ Assigned
   Short term Bank Facilities       9.00     CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Bhagwati Kripa
Paper Mills Private Limited are primarily constrained on account
of its modest scale of operations and its financial risk profile
marked by fluctuating profitability margins, moderate solvency and
liquidity position. The ratings are further constrained due to
vulnerability of its margins to fluctuation in raw material
prices, power cost as well as foreign exchange and its presence in
a highly competitive and fragmented industry.

The ratings, however, favorably take into account the long track
record of operations and experienced management in the paper
industry with stable demand indicators from end user industries,
mainly packaging.

Improvement in financial risk profile with improvement in scale of
operations and solvency position are the key rating sensitivities.

Jaipur (Rajasthan) BKPMPL was incorporated in August 2004 as a
private limited company by Mr. Prem Kishore Mehra along with his
family members. BKPMPL is engaged in manufacturing of kraft paper
and has its manufacturing facility located at Jaipur, Rajasthan.
It has an installed capacity of 40,000 Metric Tonnes Per Annum
(MTPA) as on March 31, 2013. The company manufactures different
varieties of kraft paper ranging from 120 to 250 Grams Per Square
Meter (GSM) and Bursting Factor (BF) up to 28.

The promoters have also promoted Shivam Products Private Limited
(incorporated in July 1999) which is engaged in the business of
manufacturing of corrugated boxes.

During FY12 (refers to the period April 1 to March 31), BKPMPL
reported a total income of INR50.75 crore (FY11: INR46.54 crore),
with a PAT of INR0.71 crore (FY11: INR1.38 crore). As per
provisional results for FY13, BKPMPL is reported total operating
income of INR66.35 crore.


BLUEBIRD SOFTWARE: CARE Rates INR100cr LT Bank Loans at 'BB-'
-------------------------------------------------------------
CARE assigns 'CARE BB-' ratings to the bank facilities of Bluebird
Software Pvt. Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long term Bank Facilities       100       'CARE BB-' Assigned

Rating Rationale

The rating of Bluebird Software Pvt. Ltd. is constrained by high
project execution risk with a significant portion of construction
still pending, substantial offtake risk associated with the
ongoing project, high project gearing ratio of 5.67x and inherent
risks associated with the real estate industry. The rating,
however, derives strength from the experienced and resourceful
promoters of BSPL, approvals in place for the project and premium
location of the ongoing commercial project.

Going forward, timely execution of the project and achievement of
desired lease rentals and occupancy levels would be the key rating
sensitivities.

Incorporated in 2004, Bluebird Software Private Limited is a
Delhi-NCR based real estate development company. BSPL later became
part of Nimitaya group in 2007 after it was taken over
by its current directors. The group is primarily involved in real
estate development and hospitality business. BSPL has developed
and sold a 2 lsf commercial complex "Ecstasy I.T." in UdyogVihar,
Gurgaon. BSPL is now developing another commercial complex "I.T.
Park" in UdyogVihar, Gurgaon on a land measuring 2 acres with a
developable area of 2.76 lsf, at a cost of INR166.75 crore.
As on June 30, 2013, the company has incurred INR 73.13 crore on
the project, which has been primarily funded through promoter's
funds in the form of unsecured loans/ equity (INR47.51 crore)
and remaining through debt.

As per FY13 provisional results, the company registered net profit
of INR8.23 crore on total income (non-operational) of INR37.88
crore.


DHANANIA RUBBER: CARE Rates INR14.15cr LT Bank Loans at 'BB-'
-------------------------------------------------------------
CARE assigns 'CARE BB-' rating to the bank facilities of Dhanania
Rubber Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities      14.15      CARE BB- Assigned

Rating Rationale

The rating is primarily constrained on account of the nascent
stage of project implementation and saleability risks associated
with the on-going real estate project of Dhanania Rubber Limited
in the back-drop of the prevailing sluggish scenario and inherent
risks associated with the cyclical real estate industry.

The rating, however, favorably takes into account DRL being part
of the Ruchi group who has an established track record in the agro
commodity business and experience in the real estate industry.

The ability of DRL to successfully complete its on-going project
within the envisaged cost and time parameters, along with the
timely receipt of booking advances and sale of units at the
envisaged price are the key rating sensitivities. Furthermore, the
size and funding profile of future projects, if any, shall also
remain crucial.

DRL, a closely-held public limited company, was originally
incorporated in March 1976 by the Kolkata-based Dhanania family to
manufacture rubber and rubber-related products. However, DRL did
not have any manufacturing operations since the past 10 years as
the plant was located near the residential area of Kolkata city
where environmentally hazardous businesses like rubber
manufacturing were not allowed by the Pollution Control Board.
Hence, DRL had to discontinue its rubber manufacturing operations.

Subsequently in FY12 (refers to the period April 1 to March 31),
the Shahra family of Indore (promoters of the Ruchi group)
acquired 100% shareholding of DRL from the erstwhile promoters
to develop a real estate project after dismantling of the plant.
In January 2013, DRL launched a residential project named 'Active
Greens' (AG) on the said land comprising 100 units of 2/3 BHK
with a saleable area of 1.41 lakh sq ft (lsf).

The total cost of the project is envisaged at INR32.91 crore and
it is expected to be completed by June 2015. As on August 25,
2013, DRL had incurred a total cost of INR6.55 crore on the
project.


INVESTMENT & PRECISION: CARE Rates INR40.40cr Bank Loans at 'BB+'
-----------------------------------------------------------------
CARE assigns CARE BB+ and CARE A4+ ratings to the bank facilities
of Investment & Precision Castings Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities      40.40      CARE BB+ Assigned
   Short-term Bank Facilities      4.00      CARE A4+ Assigned

Rating Rationale

The ratings are constrained by the relatively small scale of
operations of Investment & Precision Castings Ltd. along with its
high customer concentration and linkages with the domestic
automobile industry which is currently passing through a
challenging demand environment. The ratings are further
constrained by its working capital intensive operations with an
elongated operating cycle, susceptibility to volatile raw material
prices and implementation & salability risks associated with its
planned capacity expansion project.

The ratings, however, derive strength from the vast experience of
the promoters of I&PCL in the investment castings business,
established manufacturing facility and established relations with
its key customers. The ratings also factor in I&PCL's moderate
capital structure and debt coverage indicators.

The ability of I&PCL to increase its scale of operations and
improve its profitability margins, ensure greater customer &
geographical diversification while retaining its key clientele and
manage salability risk associated with its planned capacity
expansion project after ensuring its implementation within
envisaged time and cost parameters would be the key rating
sensitivities.

I&PCL, engaged in the business of manufacturing investment
castings, was established in April 1975. In 2004, I&PCL set up
Tamboli Castings Ltd. (TCL; rated CARE BBB/CARE A3+) as an export
oriented unit and its wholly owned subsidiary. In 2009, upon
family partition, I&PCL Group was split into I&PCL and Tamboli
Capital Ltd. as two independent companies. I&PCL has a total
installed manufacturing capacity of 1500 Metric Tonne Per Annum
(MTPA) of investment castings at its plant located at Bhavnagar
which is predominantly being supplied to the domestic automobile
industry.

During FY13 (refers to the period April 1 to March 31), I&PCL
reported a total operating income of INR66.16 crore (FY12:
INR79.31 crore) with a PAT of INR0.42 crore (FY12: INR 2.96
crore). As per the provisional results for Q1FY14, I&PCL has
reported a total operating income of INR15.53 crore with
a PAT of INR0.20 crore.


NIKHIL FOOTWEARS: CARE Assigns 'BB+' Rating to INR75.75cr Loans
---------------------------------------------------------------
CARE assigns 'CARE BB+' and 'CARE A4+' ratings to the bank
facilities of Nikhil Footwears Pvt Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       75.75     CARE BB+ Assigned
   Short-term Bank Facilities       3.00     CARE A4+ Assigned
   Long/Short-term Bank            20.00     CARE BB+/CARE A4+
   Facilities                                Assigned

Rating Rationale

The ratings assigned to the bank facilities of Nikhil Footwears
Pvt Ltd are constrained by its working capital intensive nature of
the operations, susceptibility of margins to the volatility in the
raw material prices and exposure to foreign exchange fluctuation
risk. The ratings also factor in the high level of intergroup
transactions.

The ratings, however, are supported by the experienced promoters
and management team, long track record of operations, established
brand name and benefits derived from being part of a large group.

The ability of the company to manage its working capital cycle
efficiently and improve its capital structure are the key rating
sensitivities.

Incorporated in 1987, Nikhil Footwears Pvt Ltd is engaged is
manufacturing and trading of footwear and footwear components.
NFPL is a part of the Action group that has been present in
footwear business for about four decades. The group has different
entities for different brands and headed by different family
members. NFPL is headed by Mr. Naresh Aggarwal.

NFPL has five manufacturing facilities located at Kundli (three
units), Delhi and Bahadurgarh having combined installed capacity
of manufacturing 58 lakh pairs of shoes and 41 lakh pairs of
soles per annum. NFPL sells its products under the various sub-
brands of the Action group, among which "Milano" and "School Time"
are the major brands used by the company.

NFPL has registered a PAT of Rs 8.15 crore on a total income of
INR120.38 crore in FY12 (refers to the period April 1 to
March 31). During FY13, based on provisional results, the company
has reported a PAT of INR7.11 crore on a total income of INR191.68
crore.


SAI AARAV: CARE Rates INR7cr Long-Term Bank Loans at 'BB'
---------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of Sai Aarav
Motors.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       7.00      CARE BB Assigned

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

Rating Rationale

The rating is constrained by the nascent stage of operations of
Sai Aarav Motors in the automobile dealership business with
presence in a single district of Gujarat along with its
constitution as a partnership firm. The rating is further
constrained on account of the inherently low profitability
margins, high working capital intensity of operations and its
presence in a highly competitive industry with linkages to the
cyclical automobile industry which is presently witnessing subdued
demand.

The above weaknesses far offset the benefits derived from the
resourceful and experienced promoter group of Sai Aarav who has
established operations in the construction sector along with
experience in the auto-dealership business.

Sai Aarav's ability to achieve the envisaged sales volume and
profitability in a highly competitive automobile dealership
business, establish a sound track record of operations,
effectively manage the working capital requirements and need-based
financial support from the promoter group are the key rating
sensitivities.

Sai Aarav is a partnership firm formed by the promoters of the
Gujarat-based Ranjit Group who have also promoted Ranjit Buildcon
Ltd (RBL; rated CARE A-/ CARE A1). It was formed in August2012 by
Mr. Vaibhav Ranchodbhai Patel and his family members. Sai Aarav is
engaged in the automobile dealership business of Nissan Motors.
The showroom of Sai Aarav is located in the Mehsana district of
Gujarat and fully supports 3-S services (Sales, Service and Spare-
parts) and deals in all the models of Nissan. It started sales and
service operations from the end of June 2013 & mid of July 2013,
respectively.


SEQUENT SCIENTIFIC: CARE Reaffirms 'B' Rating on INR178cr Loans
---------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Sequent Scientific Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       178       CARE B Reaffirmed
   Short-term Bank Facilities      120       CARE A4 Reaffirmed

Rating Rationale

The ratings continue to be constrained by the weak financial risk
profile of Sequent Scientific Ltd marked by significant losses in
FY13, stretched capital structure and tight liquidity position,
susceptibility of margins to volatile raw material prices and
foreign exchange fluctuation and challenges of operating in highly
competitive environment.

Further, the ratings are constrained by the company's support to
its subsidiaries/group companies by way of investment in equity,
loans and advances and corporate guarantees. Nevertheless, the
ratings continue to derive strength from experience of the
promoters, wide product portfolio in animal and human healthcare
and reputed client base. The ratings also take note of infusion of
equity by the promoters during FY13 to support the business.

Going ahead, the ability of the company to manage profitable
operation, manage foreign exchange risk and improvement in
liquidity position would remain the key rating sensitivities.

In February 2007, Fraxis Lifesciences Limited, a company promoted
by Mr. Arun Kumar and Mr. K.R. Ravishankar, the promoters of
Strides Arcolab Limited, acquired P. I. Drugs and Pharmaceuticals
Limited. Subsequently, PIDPL merged itself with its group company
and the merged entity was renamed as Sequent Scientific Limited.
SSL is engaged in manufacturing of APIs and formulations for
animal healthcare, APIs for human healthcare, specialty chemicals
and contract research and manufacturing services (CRAMS). As on
March 31 2013, the company had filed 42 Drug Master Files (DMF)
with another six in process of filing and 15 APIs under
development. SSL is the world's largest producer of Anthelmintics
and a strong player in the Veterinary API business. The company
derives around 43% of its revenues from the export market and the
remaining from domestic market in FY13. SSL has seven
manufacturing facilities located across five locations in
Karnataka, Gujarat and Maharashtra. As on March 31, 2013, SSL had
nine subsidiaries and three step-down subsidiaries.

During FY13, the company reported a net loss of INR54 cr (as
against INR15 cr loss in FY12) on a net income of INR315.86 cr (as
against INR336.9 cr in FY12). Furthermore, the company posted net
loss of INR9.3 cr in Q1 FY14 on a total income of
INR113.24 cr.


SERMAN INDIA: CARE Assigns 'B+' Rating to INR3.5cr LT Bank Loans
----------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Serman (India) Road Makers Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       3.50      CARE B+ Assigned
   Long-term/Short-term Bank      10.00      CARE B+/CARE A4
   Facilities                                Assigned

Rating Rationale

The ratings assigned to the bank facilities of Serman (India) Road
Makers Private Limited are constrained primarily on account of its
small scale of operation and presence in the competitive
construction industry coupled with its financial risk profile
marked by declining profitability, weak liquidity position and
elongated working capital cycle. The ratings are further
constrained by geographic and client concentration risk.

These constraints far offset the benefits derived from the
experienced promoters in the construction industry and its
moderate order book position & reputed clientele coupled with the
moderate capital structure and debt coverage indicators.

SIRPL's ability to timely execute the existing orders in hand and
strengthening of order book position along with an improvement in
profitability and better working capital management are the key
rating sensitivities.

Bhopal-based SIRPL was incorporated by Mr. Ishnarayan Sharma in
1988. Presently, his brothers, Mr. Deepak Sharma and Mr. Rakesh
Sharma, assist him in the day-to-day operations. SIRPL is
registered as a 'Class A' contractor with the Public Work
Department of Madhya Pradesh (highest on a scale of A to E) and
secures all the contracts through open bidding process. The
company is in the business of construction, maintenance and
improvement of roads and has an order book of INR43.27 crore as on
August 20, 2012. The order book consisted of 21 projects, majority
of which were awarded by the Public Works Department (PWD) of
Madhya Pradesh.

As per the provisional results for FY13 (refers to the period
April 01 to March 31), SIRPL reported a total operating income
(TOI) of INR17.46 crore (FY12: INR15.11 crore) and Profit after
Tax (PAT) of INR0.69 crore (FY12: INR0.90 crore).


S.P.R CONSTRUCTIONS: CARE Assigns 'BB-' Rating to INR2.25cr Loans
-----------------------------------------------------------------
CARE assigns 'CARE BB-/ CARE A4' ratings to the bank facilities of
S.P.R Constructions.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       2.25      CARE BB- Assigned
   Short-term Bank Facilities      2.75      CARE A4 Assigned
   Long/Short-term Bank           10.00      CARE BB-/CARE A4
   Facilities                                Assigned

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

Rating Rationale

The ratings assigned to the bank facilities of S.P.R Constructions
are constrained by its limited track record of operations with
working capital intensive nature of business, the firm's
concentrated order book and its constitution as a partnership firm
with an inherent risk of withdrawal of capital. However, the above
constraints are partially offset by the experience of the partners
in the industry, comfortable capital structure with moderate
profitability margins and healthy order book position.

The ability of the firm to infuse capital and increase its scale
of operations with improvement in the profitability margins will
remain as the key rating sensitivities of the firm.

S.P.R Constructions is a partnership firm started in 2005 by Mr. S
Ram Mohan Reddy, Managing Partner. SPRC is a small-size
construction contractor with main focus on electrical works
involving construction/erection of sub-stations and transmission
lines. SPRC has three divisions namely Transmission lines,
Substation erections and civil works, major projects implemented
by SPRC during FY13 were sub contract works.

During FY13 (refers to the period April 1 to March 31), SPRC
reported a net profit of INR1.61 crore on a total operating income
of INR34.32 crore as against a net profit of INR1.42 crore on a
total operating income of INR31.13 crore in FY12.


VATSA AUTOMOBILES: CARE Rates INR10.69cr Bank Loans at 'B+'
-----------------------------------------------------------
CARE assigns 'CARE B +' rating to the bank facilities of Vatsa
Automobiles Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities      10.69      CARE B+ Assigned

Rating Rationale

The rating assigned to the bank facilities of Vatsa Automobiles
Private Limited is primarily constrained by the ongoing project
execution and stabilization risk, pricing constraints and margin
pressure arising out of competition from the various auto dealers
in the market. The rating is further constrained by the lack of
experience of the promoters in the automobile dealership
business, its linkage to the fortunes of Mahindra & Mahindra Ltd,
existence of contract renewal risk and working capital intensive
nature of business.

The rating, however, derives strength from the benefits arising
out of owned premises, integrated nature of business and sole
authorized dealership of MML in Bhagalpur (Bihar) for the full
range of its products.

The ability of VAPL to successfully complete the project and
achieve the projected turnover and profitability margins would be
the key rating sensitivities.

Incorporated on April 10, 2012, Bhagalpur-based (Bihar) Vatsa
Automobiles Pvt Ltd is promoted by Mr. Shailesh Singh with his
wife, Ms. Kiran Singh, and son, Mr. Chandra Prakash.  VAPL will
operate in Bhagalpur and nearby region as an authorized dealer of
MML for its vehicle segment. The company is an authorised dealer
of MML for the full range of its products where it will also
provide repair and refurbishment services. Singh Construction Pvt
Ltd is an associate company of VAPL engaged in the construction
and maintenance of roads in the different regions of Bihar.

Project details

The company is setting up a showroom for the dealership business
and is also developing a workshop and one stock yard in the same
premises. The total envisaged cost of the project is INR10.17
crore financed through term loan of INR1.99 crore and equity
capital of INR8.18 crore (debt equity ratio of the project is
0.24x). The commercial operation of the company is expected to
start from September 2013. The financial closure for the project
has been achieved. Till July 31, 2013, the company has incurred
about INR5.87 crore financed through an equity capital of INR3.98
crore and debt of INR1.89 crore.


* High Borrowing Costs to Constrain Margins for Indian Companies
----------------------------------------------------------------
Moody's Investors Service says that higher funding costs for rated
Indian corporates will put pressure on margins, particularly for
companies already challenged by slower growth prospects.
Furthermore, depreciation of the Indian Rupee will lead to
revaluation of debt issued in US dollars, which in turn could put
pressure on some covenants.

Moody's also highlights that the 14 non-financial companies that
it rates in India have combined debt of INR2.2 trillion ($32
billion) maturing in the fiscal year ending March 2014 (FY 13),
out of which over 50% is denominated in foreign currency. However,
Moody's believes that these companies will be able to refinance
maturing debt from the domestic banking system, as well as the
international capital markets.

"We expect domestic banks to continue rolling over the companies'
credit facilities and these companies will continue to have access
to funding from international banks and capital markets, given
that these firms are among the largest in their respective
industries, with strong brand names and long histories," says Alan
Greene, a Moody's Vice President and Senior Credit Officer.

"These companies also maintain good relationships with domestic
banks and have solid track records of accessing international
funding," adds Greene.

Greene is a co-author of a just-released Moody's report titled:
"Indian Corporates: Higher Borrowing Costs, Weak Rupee Will
Pressure Indian Corporate Credit Metrics".

Moody's report says interest rates - both on rupee and foreign
currency borrowings - are likely to increase.

Interest rates in India are on the rise given the measures by the
Reserve Bank of India to tighten liquidity in order to bolster the
rupee, which has fallen to historic lows against the US dollar.

The borrowing cost for the foreign currency debt is also on the
rise in light of the US Federal Reserve's decision to taper its
bond-buying programme.

Nonetheless, Moody's report says that the firms can manage their
increasing financing costs, because cash flows should be
sufficient to service the higher interest costs.

However, their credit metrics -- particularly interest coverage
and debt service coverage -- will deteriorate, as interest costs
rise, which will reduce headroom under the financial covenants of
some companies.

The report also says that while companies with debt denominated in
foreign currencies will report an increase in total leverage as a
result of the depreciating rupee, these firms have mitigated some
of their foreign exchange exposures.

Some companies, for instance, use their debt denominated in
foreign currencies to invest in overseas operations, which in turn
are a natural hedge because the foreign currency debt is serviced
by the profits of the foreign operations.

The rated companies with little or no foreign operations are
primarily engaged in basic commodities and generate revenues in US
dollars or in currencies linked to US dollars.

However, Moody's report points out that state-owned downstream oil
marketing companies are most affected by the depreciating rupee,
because while their revenues are linked to the US dollar, their
EBITDA margins are thin, at between 3% and 5%. They are also
highly leveraged.

"Rupee depreciation will increase the state-owned downstream oil
marketing firms' borrowings, as they revalue their existing
foreign currency borrowings upward and require more working
capital to fund increased commodity costs and under-recoveries,"
says Vikas Halan, a Moody's Vice President -- Senior Analyst.

For business process outsourcing companies, the report says their
large cash balances help fund any shortfall in working capital
requirements and support near-term refinancing needs. These firms'
low near-term maturities also help insulate them from any
tightening in liquidity levels.



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


GK MLOX3: Fitch Affirms Rating on Class D Notes at 'CC'
-------------------------------------------------------
Fitch Ratings has upgraded GK MLOX3's class C notes and affirmed
the class D notes, all due June 2015. The transaction is a
Japanese multi-borrower type CMBS securitisation. The rating
actions are as follows:

JPY1.7bn* class C notes upgraded to 'BBsf''from 'Bsf''; Outlook
Stable

JPY1.78bn* class D notes affirmed at 'CCsf''; Recovery Estimate
revised to 45% from 35%

*as of Sept. 11, 2013

Key Rating Drivers

The upgrade of the class C notes reflects a substantial principal
repayment of the underlying loan and Fitch's view that full
redemption of the notes prior to the legal final maturity is more
likely than it was a year ago.

Since the previous rating action in September 2012, three of nine
properties backing the remaining defaulted loan have been sold at
higher values than Fitch had expected. All of these contributed to
a substantial repayment of the transaction, with class B being
fully redeemed in February 2013. Fitch believes most of the
remaining properties are likely to be sold within a year and
expects the associated sale proceeds to be sufficient to repay the
class C notes in full.

Fitch has revised downwards its net cash flow estimates for two
out of the six remaining collateral properties, reflecting the
collateral properties' recent weaker-than-expected performance.
However, this has been more than offset by the repayment so far.

The affirmation of the class D notes reflects Fitch's view that
principal loss remains probable for this class.

Rating Sensitivities

An unexpected delay in workout activities, which could push back
the full redemption of the class C notes closer to their legal
final maturity, may result in negative rating action on the notes.

The rating of the class D notes is sensitive to the sales values
of the remaining properties, with negative rating action likely as
legal final maturity approaches.

Fitch assigned ratings to this transaction in September 2007. The
transaction was initially a securitisation of five loans backed by
25 property trust beneficiary interests. It is currently backed by
one defaulted loan, which in turn is backed by six properties.



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


ALLIED FARMERS: Escapes Insolvency After Unit Raises NZ$600K
------------------------------------------------------------
Paul McBeth at BusinessDesk reports that Allied Farmers, which is
slowly rebuilding from a disastrous takeover of the Hanover and
United Finance loan books, has staved off insolvency after raising
NZ$600,000 in a bond issue, almost half of which was bought by
interests associated with the chairman Gary Bluett.

According to the report, the Hawera-based company's Allied Farmers
Rural subsidiary raised the debt, with NZ$250,000 coming from
chairman Gary Bluett and an associated person, to fund a repayment
plan with the Inland Revenue Department over a
NZ$4.2 million unpaid tax bill.

Mr. Bluett and his associated person "only agreed to participate
as funders after the terms of the bonds were set and it became
apparent there would be a shortfall in the amount AFRL could raise
from the issue of the Bonds," BusinessDesk relates citing an NZX
waiver notice allowing the bond issue to take place without
shareholder approval.

Separately, BusinessDesk reports that Allied Farmers has also
reached a confidential settlement with a creditor who had called
in a NZ$540,000 loan, plus interest.

"Some of the proceeds of the bond issue have been used, together
with a draw down on funds from an existing funding facility with
its secured lender, Crown Asset Management, to fund the initial
instalment of the repayment plan," Mr. Bluett said in a statement,
BusinessDesk relates.

The firm announced the bond issue earlier last week, seeking at
least NZ$500,000 and as much as NZ$1 million to keep itself alive,
the report notes.

The bonds, paying interest of 12 percent, rank behind Allied
Farmers' debt to Crown Asset Management Ltd, the unit tasked with
clawing back funds used in the government's deposit guarantee
scheme, and are repayable on Aug. 31 2014, BusinessDesk reports.

                      About Allied Farmers

Based in New Zealand, Allied Farmers Limited (NZE:ALF) --
http://www.alliedfarmers.co.nz/-- is engaged in livestock, real
estate, finance, wool brokering and manufacturing (meat and
timber).  Rural Services comprise livestock, merchandise and real
estate operations.  The Company's Rural Services activities are
carried out in Taranaki, Waikato, King Country and Manawatu.  Its
Financial Services activities are carried out by Allied
Nationwide Finance Limited in Auckland, Wellington and
Christchurch.  Timber processing comprises the Company's
discontinued sawmilling operations.

nzherald.co.nz said the future of Allied Farmers is in doubt after
its accounts revealed it needs to sell property, collect money
owed to it, and reach an agreement with its rural creditors in
order to survive as a going concern.  The rural services business,
which acquired the assets of Hanover and United Finance in
December 2009, revealed its position in half-year accounts filed
to the NZX on March 26, 2012.

Allied Farmers Limited reported an unaudited loss of
NZ$14.1 million for the year ended June 30, 2012, compared with
NZ$40.9 million in 2011.  A significant part of this loss, NZ$10.3
million (last year NZ$34.1 million), largely relates to the
further impairment of assets acquired from Hanover and United
Finance.

The Hawera-based company made a loss of NZ$4.4 million in the year
to June 30, 2013.


===============
P A K I S T A N
===============


PAKISTAN STEEL: Likely to Shut Operations
-----------------------------------------
Razi Syed at Daily Times reports that the Pakistan Steel Mills
(PSM) is on the verge of closure on more than one count, critics
on State Owned Enterprises (SOEs) showed on September 14.

Daily Times relates that the bailout package of more than PKR3.0
billion plus for PSM by the federal government has yet to come in
real.  The report says the employees are waiting for three months
salaries and above all production capacity reduced to hardly 9.0
percent.

In such a situation a white elephant cannot stand long and
possible fall for liquidation, the report notes.

According to Daily Times, this would be the second SOE, after
Pakistan International Airlines (PIA) that the government wanted
to close down in order to save PKR36 billion.

The PSM project was set up in 1971 to build an integrated
government-owned steel mill near Karachi.



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


UNITRUST DEVELOPMENT: PDIC to Continue Payments Until October 7
---------------------------------------------------------------
The Philippine Deposit Insurance Corporation (PDIC), the
Liquidator of the closed Unitrust Development Bank (Unitrust),
announced that it will continue to release cash payments to the
depositors and creditors of Unitrust until Oct. 7, 2013. The cash
payments represent the partial settlement for the claims of the
Unitrust depositors and creditors against the assets of the bank.

The PDIC started cash payments on Sept. 9, 2013. The payments
should be claimed personally by the depositors and creditors or
their duly authorized representative at the Unitrust Development
Bank Exchange Corner located at the Ground Floor, Exchange Corner
Complex Condominium, Exchange Corner Building, V.A. Rufino St.
corner Esteban and Bolanos Sts., Legaspi Village, Makati City, on
their designated schedule. The schedule of release of payment and
requirements are posted in the PDIC website, www.pdic.gov.ph.

Meanwhile, the Liquidation Court has set another hearing on
Friday, September 13, 2013 at 8:30 a.m. at the Regional Trial
Court of Makati City, Branch 59, to discuss the content of the
Release, Waiver and Quitclaim, With Undertaking to be accomplished
by the depositors and creditors of Unitrust. The Liquidation Court
had earlier directed the Unitrust depositors and creditors "to
agree to the proposed allocations of their interests in the real
properties as payment equivalent to 38% of their respective
claims" and "to execute their respective quitclaims and waivers
once all their claims have been fully-settled."

In the hearing on September 10, 2013, the PDIC said that given
that Unitrust has sufficient cash, claims of all depositors and
creditors can be settled fully in cash. The bank also has surplus
assets of P156 million after settlement of all claims of
depositors and creditors.

Mr. Francis Yuseco, Jr., Unitrust stockholder, is opposing the
full release of cash payment to the depositors and creditors if
they do not sign a waiver on their claims over the closed banks'
surplus dividends.

A surplus dividend is compensation in the form of damages suffered
due to the closure of the bank. This is computed at the rate of
12% per annum from the date of closure, in accordance with the
Civil Code. Surplus dividends are declared on excess assets after
payment of all claims of depositors and creditors.

PDIC said that waiver on the part of the depositors and creditors
over the surplus dividends is voluntary. The PDIC stressed that
providing depositors and creditors accurate information on the
financial condition of the closed Unitrust is critical in making
informed decisions; and serves their best interests in order to
maximize the recovery of their claims in the closed bank. This is
because waiving one's right to surplus dividends is a decision
that the depositors and creditors have to make on their own.

Unitrust was ordered closed by the Monetary Board on Jan. 4, 2002,
and is now under the liquidation of the Philippine Deposit
Insurance Corporation (PDIC). As of the date of closure, the bank
was owned by Pedro Montanez, G. Universal Co., Ltd., Leopoldo
Valcarcel, Francis Yuseco, Jr., Minamoto Saiken Kaishu Co., Ltd.,
and others. However, there were reports that Unitrust was owned by
Genta Ogami, a Japanese who was linked to a company called G.
Cosmos.



====================
S O U T H  K O R E A
====================


* Korean Banks Likely to Remain Under Pressure, Fitch Says
----------------------------------------------------------
Fitch Ratings says Korea's banks are likely to remain under
pressure as domestic economic growth moderates, their customer
base ages and new regulations squeeze their margins and fees. That
said, the outlook for bank ratings remains stable.
In addition, Korean banks' customers in the shipbuilding, shipping
and construction sectors face rising risks of collapse while banks
will have to shoulder higher costs as the government demands they
improve accountability and do more to support failing companies,
Fitch says in a Special Report on the Korean banking system.

Fitch says the funding environment for Korean banks will remain
stable. The agency does not expect significant funding problems
for Korean banks when the U.S. Federal Reserve starts to withdraw
its monetary stimulus, assuming that the Bank of Korea and global
central banks raise interest rates in line with their economic
recoveries.



================
S R I  L A N K A
================


BANK OF CEYLON: Fitch Assigns 'BB-' Issuer Default Ratings
----------------------------------------------------------
Fitch Ratings Lanka has assigned Bank of Ceylon's (BOC; BB-
/Stable) proposed subordinated debentures of up to LKR8bn an
expected National Long-Term rating of 'AA(lka)(EXP)'.

The debentures are to be listed on the Colombo Stock Exchange. BOC
expects to use the proceeds to strengthen the bank's regulatory
Tier 2 capital base and reduce asset and liability maturity
mismatches.

The final rating is pending final documents that confirm
information already received, including details about the amount
and tenor. A full rating breakdown is provided at the end of this
commentary.

The proposed debentures are rated one notch below BOC's National
Long-Term Rating of 'AA+(lka)' to reflect their gone-concern loss-
absorption quality in the event of a liquidation, in line with
Fitch's criteria for rating such securities.

Key Rating Drivers

BOC's Long-Term Rating is driven by the government of Sri Lanka's
high propensity but moderate ability to provide support to the
bank under extraordinary circumstances. In Fitch's view, the
state's high propensity to support BOC stems from the bank's
systemic importance as the largest bank in the country, its quasi-
sovereign status, its role as a key lender to the government and
full government ownership. The state's moderate ability to provide
timely support to BOC is reflected in the 'BB-'/Stable rating.

Rating Sensitivities

Any change in Sri Lanka's rating or the perception of state
support to BOC could result in a change in BOC's National Long-
Term Ratings. The subordinated debt rating will move in tandem
with the Long-Term Ratings.

Full list of BOC's ratings:
Long-term Foreign- and Local-Currency Issuer Default Ratings: 'BB-
'; Outlook Stable
Viability Rating: 'b+'
Support Rating: '3'
Support Rating Floor: 'BB-'
USD senior unsecured notes: 'BB-'
National Long-Term rating: 'AA+(lka)' ; Outlook Stable
Outstanding subordinated debentures: 'AA(lka)'



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


* Moody's Expects Low High-Yield Corporate Defaults in AP Area
--------------------------------------------------------------
Moody's Investors Service says the high-yield default rate for
non-financial corporates in Asia Pacific (ex-Japan) will end the
year at a low 1.6%; a level which is lower than the forecast 2%
made in February, based on Moody's Credit Transition Model (CTM).

"The predicted default rate anticipates a continued narrowing of
the high yield spread and stability of the high yield corporate
portfolio," says Clara Lau, a Moody's Group Credit Officer.

Lau was speaking on the just-released Moody's report titled,
"High-Yield Corporates in Asia Pacific (ex-Japan) Expected to End
2013 with Low Default Rate."

Moody's report says the proportion of ratings with negative
outlooks fell significantly to 22% in August 2013 versus 37% at
end-2012. "The low estimated default rate of 1.6% translates into
one or two defaults for all of 2013," says Lau.

"The forecast is also based on our assessment that if quantitative
easing in the US recedes, it will be done in a measured manner and
will not materially disrupt credit markets," comments Lau. 'We
expect quantitative easing programs in the US to continue into
2014,' adds Lau.

Furthermore, the low estimated default rate reflects Moody's
assumptions of continued gradual growth for advanced economies,
and sustained but slower growth for major emerging economies such
as China.

Moody's report also says that the average rating of companies in
Moody's high yield portfolio remained at B1/B2 as of end-August;
similar to the level as of end-2012.

Moody's report points out that in terms of rating transitions
between August 2012 and July 2013, Asian investment grade
corporates generally exhibited higher rating stability when
compared with speculative grade issuers. In addition, investment
grade firms in Asia displayed lower rating volatility than their
global peers. Moreover, while the rating trend for global
corporates is generally negative, the opposite was true for Asian
firms.

Moody's report also says there were more multi-notches rating
movements for global corporates than for Asian firms, across all
rating categories.



                             *********

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.



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