TCRAP_Public/130923.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 23, 2013, Vol. 16, No. 188


                            Headlines


A U S T R A L I A

BESPOKE INVESTMENTS: Clifton Hall Appointed as Liquidators
CROSS CITY: NSW Government Rules Out Buying Sydney Tunnel


C H I N A

ROAD KING: Moody's Changes Outlook on B1 CFR to Positive
* Macao Remains Resilient Amid Chinese Rebalancing, Fitch Says


I N D I A

ALARD CHARITABLE: CRISIL Assigns 'D' Ratings to INR190MM Loans
CHERAN SPINNER: CRISIL Ups Ratings on INR430.5MM Loans to 'B+'
COSMAS RESEARCH: CRISIL Assigns 'D' Ratings to INR690MM Loans
GARG ALUMINIO: CRISIL Raises Ratings on INR76MM Loans to 'B+'
JUBLEE HILL: CRISIL Assigns 'B-' Ratings to INR265MM Loans

KINGFISHER AIRLINES: Payment Default Said to Raise Airline Costs
METALOGICS SYSTEMS: CRISIL Cuts Ratings on INR175MM Loans to 'D'
MITTASO INDIA: CRISIL Lowers Rating on INR125MM Loan to 'D'
NARAYANI COKE: CRISIL Ups Ratings on INR124MM Loans to 'BB'
N G REALTY: CRISIL Lowers Ratings on INR1.15BB Loans to 'D'

PUMARTH INFRA: CRISIL Rates INR300MM Bank Loan at 'B+'
SAMIRA REALTY: CRISIL Cuts Ratings on INR180MM Loans to 'D'
SHRI GAUTAM: CRISIL Raises Rating on INR40MM Cash Credit to 'B+'
YAMIR PACKAGING: CRISIL Cuts Ratings on INR171MM Loans to 'B-'


N E W  Z E A L A N D

TE KAUWHATA: Repays Major Creditors as Receivership Wraps Up


S R I  L A N K A

DFCC BANK: S&P Assigns 'B' Counterparty Credit Ratings


X X X X X X X X

* Fitch: EM Asia Policy Management is Key, Despite Tapering Delay
* Moody's: BASEL III Has Narrow Benefits for Developing Countries
* Moody's Looks at Pensions as Credit Risk for Sub-sovereigns


                            - - - - -


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


BESPOKE INVESTMENTS: Clifton Hall Appointed as Liquidators
----------------------------------------------------------
Mark Hall of Clifton Hall was appointed Liquidator of Bespoke
Investments Pty Ltd on Sept. 19, 2013, by Order of the Federal
Court of Australia.


CROSS CITY: NSW Government Rules Out Buying Sydney Tunnel
---------------------------------------------------------
Australian Associated Press reports that the New South Wales
government has ruled out buying Sydney's Cross City Tunnel, which
has again been placed into voluntary administration.

AAP says receivers have reportedly been appointed to manage the
tunnel for the second time in seven years, as its owners Leighton
Contractors, the Royal Bank of Scotland and EISER Infrastructure
Partners struggle to fund it.

Earlier on September 20, media reported NSW Premier Barry
O'Farrell was considering a buy-back of the under-used tunnel and
would drop the toll, the report relates.

It's believed that if the AUD4.91 charge was removed, an extra
30,000 cars would use the tunnel daily, the report relays.

But Roads Minister Duncan Gay has rejected speculation about a
purchase, saying the government doesn't have the money, according
to the report.  "That is just an urban myth, that's not
happening," Mr. Gay told reporters.

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 20, 2013, The Sydney Morning Herald said KordaMentha has
been appointed the receiver to the Cross City Tunnel in Sydney,
marking the second time in eight years the insolvency firm has
overseen the debt-stricken toll road.

SMH related that the appointment of receivers follows the tollroad
being placed in voluntary administration on Sept. 13, 2013.
KordaMentha will now push ahead with a sales process for the toll
road, SMH said.



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


ROAD KING: Moody's Changes Outlook on B1 CFR to Positive
--------------------------------------------------------
Moody's Investors Services has changed to positive from stable the
outlook of Road King Infrastructure Limited's B1 corporate family
and senior unsecured ratings of bonds issued by Road King
Infrastructure Finance (2012) Ltd, RKI Finance (2010) Limited and
RKI Finance (2011) Limited.

Moody's has also affirmed Road King's B1 corporate family and
senior unsecured bond ratings.

Ratings Rationale:

"The change in outlook to positive reflects the consideration that
Road King has established a track record of stable contract
sales," says Franco Leung, a Moody's Assistant Vice President and
Analyst.

Road King reported total contracted sales of RMB6.9 billion for
the first half of 2013, and is on track to meet its full-year
sales target of RMB11 billion.

This assumption implies that the company can deliver growth over
its contracted sales level of RMB9.6 billion in 2012, which is in
turn approximately 60% more than the average of RMB6.0 billion for
2009-2011.

"Moreover, Road King has also demonstrated its ability to maintain
its profit margins, while focusing on the mass-market residential
sector," adds Leung, who is also the lead analyst for Road King.

Moody's notes that although Road King focuses on mass-market
demand, it has managed its geographic and product mix so that it
can maintain stability in its profit margins.

Its adjusted EBITDA margin was around 26% for the 12 months ended
June 2013, largely unchanged from the 25.5% recorded in FY2012.

"As a result, Road King shows stability in its credit metrics,
which are better than those of its B1 peers," says Leung.

Road King's interest coverage -- as measured by adjusted
EBITDA/interest -- remained around 2.9x for the 12 months ended
June 2013, and adjusted debt/capitalization was stable around
50.4%. These levels are better than those of its B1 peers.

"The positive outlook has also considered the better risk profile
of Road King, when compared with other B1 peers, because of the
stable income from its toll road investments," says Leung.

Moody's expects that Road King's toll road income will be around
HKD 550-600 million for FY2013 and FY2014, therefore offering
coverage of 40% - 50% of its interest expenses. Such a situation
means its financial risk is better than that of its B1 peers.

Road King's B1 rating reflects its prudent land acquisition
strategy and its prudent approach to financial management.

At the same time, its rating is constrained by the company's small
scale and some degree of geographic concentration in its land
bank.

Upward rating pressure could emerge if Road King (1) continues to
demonstrate stability in contracted sales, profit margins and
liquidity; (2) maintains its toll road income at above RMB450-500
million; (3) maintains stable credit metrics -- EBITDA/ interest
above 2.5x -- 3x and adjusted debt/total capitalization below 50%
-- 55%.

On the other hand, downward pressure could emerge if Road King (1)
shows deterioration in its liquidity due to weaker sales or
aggressive land acquisitions; (2) increases debt-funded land
purchases; or (3) suffers a decline in profit margins.

Financial ratios indicating downgrade pressure include EBITDA
margins below 20%, EBITDA/interest below 2x, or debt to total
capitalization above 60%.

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

Established in 1994, Road King Infrastructure Limited is a Hong
Kong-listed company with investments in toll roads as well as
investment projects in China.


* Macao Remains Resilient Amid Chinese Rebalancing, Fitch Says
--------------------------------------------------------------
Macao has remained largely unaffected by the slowdown in China,
highlighting the economy's underlying credit resilience, says
Fitch Ratings. Stronger-than-expected economic performance so far
this year is underpinned by a competitive gaming industry and
continuing strength in income growth in neighbouring China - the
largest origin of visitors for tourism and gaming-dependent Macao.

Macao's real GDP was up by 10.5% year-on-year in H113. Activity
was boosted by a 16% surge in gaming revenue (in line with the
pace from a year ago), and reflected in the steady rise in tourism
and service exports. We now see upside risk to our full-year
forecast of 8.5% growth.

A key reason for the growth outperformance has been the strong
flow of visitor arrivals. In the first seven months of this year,
overall visitor arrivals were up 4% over the same period the year
before, with those from China up 10% - higher than the 7% a year
before. The share of Chinese tourists now accounts for about 60%
of the total. Therefore the inflow and spending proclivity of
Chinese tourists has become increasingly important for the health
of Macao's gaming industry, and its overall economy.

Macao's numbers shed light on the broader issue of China's
economic health and rebalancing. Fitch believes that a fundamental
aspect for China to successfully rebalance, without raising credit
concerns, is for consumption growth to hold up. Macao's numbers,
although reflecting only a small part of the story, nonetheless
point to steady Chinese household consumption.

Another reason for Macao's resilience is the rising importance of
the mass market business in its gaming sector. This increasingly
insulates the economy from a downturn in the VIP segment which is
more susceptible to an official crackdown on shadow banking in
China. Additional infrastructure improvement and the development
of Henqin Island should support mass market growth in excess of
VIP growth for the foreseeable future.

Moreover, the gaming industry remains supply-constrained relative
to demand. This provides a buffer, and allows operators to re-
segment capacity toward either the mass market or VIP segment.
Finally, casino operators' healthy balance sheets provide scope to
subsidise financing to VIP junkets in the event of a downturn in
activity.

The upshot is that Macao's economy and credit profile have
remained firm despite its heavy reliance on the gaming sector and
high exposure to China country risk. This reflects a reasonably
steady consumption picture in China as well as intrinsic industry
strengths, which provides a buffer against any unexpected
downturn.



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


ALARD CHARITABLE: CRISIL Assigns 'D' Ratings to INR190MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facilities of Alard Charitable Trust. The rating reflects
instances of delay by ACT in servicing its debt; the delays have
been caused by the trust's weak liquidity arising out of cash-flow
mismatches.

                          Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Term Loan                160      CRISIL D (Assigned)

   Working Capital           30      CRISIL D (Assigned)
   Demand Loan

The rating also reflects ACT's below-average financial risk
profile, constrained by leveraged capital structure, early stage
of operations in the fragmented education industry, and
vulnerability to regulatory risks associated with educational
institutions. These rating weaknesses are partially offset by the
healthy demand prospects for the educational industry and funding
support from ACT's promoters.

ACT was established in 1999 by Mr. L R Yadav. The trust operates
five institutes: Alard Institute of Management Sciences, Alard
School of Business Management, Alard College of Engineering &
Management, Alard College of Pharmacy, and Alard Public School in
Marunje, Pune. The trust offers a wide array of courses including
Master of Business Administration (MBA), Master in Computer
Application (MCA), Bachelor of Pharmacy (B Pharm), Master of
Pharmacy (M Pharm), Bachelor of Engineering (BE) and Master of
Engineering (ME), along with primary schooling. The courses of the
trust are approved by All India Council for Technical Education,
Department of Technical Education, and University of Pune.


CHERAN SPINNER: CRISIL Ups Ratings on INR430.5MM Loans to 'B+'
--------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Cheran Spinner Ltd to 'CRISIL B+/Stable' from 'CRISIL B-/Stable',
and has reaffirmed its rating on the company's short-term bank
facility at 'CRISIL A4'.

                          Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit              183      CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

   Foreign Bill              80      CRISIL B+/Stable (Upgraded
   Discounting                       from 'CRISIL B-/Stable')

   Letter of Credit          50      CRISIL A4 (Reaffirmed)

   Proposed Long-Term        10      CRISIL B+/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL B-/Stable')

   Term Loan                157.5    CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

The rating upgrade reflects the improvement in Cheran Spinner's
financial risk profile, particularly in its liquidity, following
its split from the erstwhile Cheran group in 2012-13 (refers to
financial year, April 1 to March 31). Cheran Spinner had a gearing
of 0.73 times as on March 31, 2013, as against the erstwhile
Cheran group's gearing of 1.78 times as on March 31, 2012. The
company's debt protection metrics too have improved consequent to
its split from the group. Cheran Spinners' net cash accruals to
total debt (NCATD) and interest coverage ratios were 0.23 times
and 2.01 times, respectively, in 2012-13; the group's NCATD and
interest coverage ratios were 0.02 times and 2.05 times,
respectively, in 2011-12.

In 2013-14, the Cheran Spinner is expected to generate more than
adequate cash accruals to meet its maturing term debt obligations
of INR32 million. CRISIL believes that Cheran Spinner's financial
risk profile will remain healthy over the medium term, marked by a
healthy net worth, low gearing, and above-average debt protection
metrics. The upgrade also reflects CRISIL's belief that Cheran
Spinner will continue to enjoy a healthy business risk profile
despite its split from the Cheran group.

The ratings reflect Cheran Spinner's exposure to risks related to
volatility in its raw material (viscose staple fibre) prices, and
its weak liquidity. These rating weaknesses are partially offset
by the company's established position in the viscose yarn
industry.

For arriving at the ratings, CRISIL has now considered the
business and financial risk profiles of Cheran Spinner on a
standalone basis. Previously, CRISIL had combined the business and
financial risk profiles of Cheran Spinner and Best Cheran Spintex
Pvt Ltd (Best Cheran), together referred to as the Cheran group,
for arriving at the ratings. The change in CRISIL's analytical
approach follows the communication from the management that Cheran
Spinner and Best Cheran would henceforth be separately owned and
managed as part of a family arrangement, and also to exercise
better control over the business and to improve the management of
the two companies.

Outlook: Stable

CRISIL believes that Cheran Spinner will maintain its established
market position in the viscose filament yarn industry over the
medium term, supported by its promoter's extensive industry
experience. The outlook may be revised to 'Positive' if the
company registers a sustained improvement in its profitability and
cash accruals, while it manages its working capital prudently,
resulting in an improvement in its gearing and debt protection
metrics. Conversely, the outlook may be revised to 'Negative' in
case of a sharp decline in Cheran Spinner's operating margin, or
if the company undertakes a larger-than-expected debt-funded
capital expenditure programme, thereby adversely impacting its
debt servicing ability.

Cheran Spinner, promoted by Mr. R Pongianna Gounder, manufactures
and exports viscose yarn. The company is presently being managed
by Mr. A S Palanisamy and Mr. A Muthusamy.

For 2012-13, Cheran Spinner's profit after tax is estimated at
INR22.9 million on operating revenues of INR1.24 billion; the
company reported a net loss of INR20.1 million on operating
revenues of INR1.3 billion for 2011-12.


COSMAS RESEARCH: CRISIL Assigns 'D' Ratings to INR690MM Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facilities of Cosmas Research Lab Ltd.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Working Capital          50       CRISIL D
   Term Loan

   Cash Credit             130       CRISIL D

   Term Loan               510       CRISIL D

The rating reflects instances of delay by CRLL in servicing its
debt; the delays have been caused by the company's weak liquidity.
CRLL has weak liquidity on account of its sluggish cash flows
during 2012-13 (refers to financial year, April 1 to March 31),
because of time and cost overruns in its project.

CRLL also has a limited track record of operations. Moreover, the
company has large working capital requirements. However, CRLL
benefits from its promoters' extensive industry experience.

CRLL, incorporated in 2010, is involved in contract manufacturing
in the beta lactam segment. It plans to venture into the oncology
(anti-cancerous) segment. The company's facility is located at
Ludhiana (Punjab) and its day-to-day operations are managed by Mr.
Punit Jain and Mr. Sanjay Jain. The company commenced its
commercial operations in 2011.

CRLL reported net loss of INR11 million on net sales of INR206
million for 2012-13 (refers to financial year, April 1 to
March 31).


GARG ALUMINIO: CRISIL Raises Ratings on INR76MM Loans to 'B+'
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank loan
facilities of Garg Aluminio Pvt Ltd (GAPL; formerly known as Yash
Ceramics Pvt Ltd) to 'CRISIL B+/Stable' from 'CRISIL B-/Stable',
and has reaffirmed its rating on GAPL's short-term bank facilities
at 'CRISIL A4'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Bank Guarantee           20       CRISIL A4 (Reaffirmed)

   Cash Credit              35.4     CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

   Packing Credit           30.0     CRISIL A4 (Reaffirmed)

   Post Shipment Credit      4.0     CRISIL A4 (Reaffirmed)

   Proposed Long Term        5.4     CRISIL B+/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL B-/Stable')

   Term Loan                35.2     CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

The rating upgrade reflects CRISIL's belief that GAPL's liquidity
will improve over the medium term on account of expected
improvement in the company's scale of operations and its moderate
operating profitability leading to improved cash accruals. GAPL is
likely to register year-on-year revenue growth of around 25 per
cent in 2013-14 (refers to financial year, April 1 to March 31),
to around INR500 million, on account of increase in the share of
revenue from exports. The company's operating margin is expected
to remain stable, around 8.5 per cent, in 2013-14. GAPL is likely
to generate adequate cash accruals to meet its term debt
obligations over the medium term.

CRISIL's ratings continue to reflect GAPL's average financial risk
profile marked by modest net worth, moderate gearing, average debt
protection metrics, and large working capital requirements. The
ratings also reflect GAPL's modest scale of operations and
susceptibility to volatility in raw material prices. These rating
weaknesses are partially offset by the benefits that GAPL derives
from its promoters' established track record in the aluminum wire
manufacturing industry, and the healthy demand prospects for the
power cable industry.

Outlook: Stable

CRISIL believes that GAPL will maintain a stable business risk
profile over the medium term, supported by its established
presence in the aluminium wire industry backed by diversified
geographic reach and end-user industry base. The outlook may be
revised to 'Positive' if the company achieves more-than-expected
increase in its revenue while sustaining its profitability margins
or witnesses a fresh equity infusion, leading to improvement in
its liquidity. Conversely, the outlook may be revised to
'Negative' if increase in GAPL's working capital requirements with
increase in its scale of operations leads to deterioration in its
capital structure.

Garg Aluminio Private Limited;formerly known as Yash Ceramics Pvt
Ltd manufactures aluminium wires, aluminium alloy wires, and
copper clad aluminium wires. The company manufactured ceramic
items in the past and shifted to the wire manufacturing business
in 2008-09. Thus, recently in 2012-13 company has changed its name
to Garg Aluminio Private Limited. GAPL operates a manufacturing
unit in Bahadurgarh. The Garg family has been in the metal wires
business for the past two decades through another company, Garg
Inox Ltd. GIL manufactures stainless steel wires, bright bars,
zinc wires, aluminum wires, and copper clad aluminium wires.


JUBLEE HILL: CRISIL Assigns 'B-' Ratings to INR265MM Loans
----------------------------------------------------------
CRISIL has assigned its ratings of 'CRISIL B-/Stable/CRISIL A4' to
the bank facilities of Jublee Hill Resorts Ltd.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Proposed Long Term       94       CRISIL B-/Stable
   Bank Loan Facility

   Long Term Loan          166       CRISIL B-/Stable

   Bank Guarantee           15       CRISIL A4

   Cash Credit               5       CRISIL B-/Stable

The ratings reflect JHRL's weak financial risk profile, marked by
weak debt protection metrics, small scale of operations, and
vulnerability to cyclicality and intense competition in the hotel
industry. These rating weaknesses are partially offset by the
extensive experience of the JHRL's promoters in the hotel
industry.

Outlook: Stable

CRISIL believes that the JHRL will continue to benefit over the
medium term from its promoters' extensive experience in the hotel
industry. The outlook may be revised to 'Positive' if the
company's revenues and profitability increase substantially,
leading to an improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if the
company undertakes higher than expected debt-funded capital
expenditure programme, or if its revenues and profitability
decline substantially, or leading to weakening in its financial
risk profile.

Set up by Mr.J.Sarath Babu and his family, JHRL, operates a three
star hotel under the name of Daspalla in Hyderabad in Andhra
Pradesh. The hotel commenced commercial operations in August 2010.

JHRL reported a net loss of INR31 million on net sales of
INR153 million for 2011-12 (refers to financial year, April 1 to
March 31), against a net loss of INR39 million on net sales of
INR84 million for 2011-12.


KINGFISHER AIRLINES: Payment Default Said to Raise Airline Costs
----------------------------------------------------------------
Karthikeyan Sundaram at Bloomberg News reports that payment
defaults by grounded Indian carrier Kingfisher Airlines Ltd. are
prompting aircraft lessors to demand a premium to cover risks in
the South Asian country.

According to Bloomberg, two officials of Air India Ltd said
companies leasing out planes are insisting on a one-year security
deposit instead of the usual three-month cover in addition to a
commitment to hire the aircraft for as long as nine years. The
state-owned firm is negotiating to lease 19 Airbus SAS A320s for
six years, they said, asking not to be identified because the
talks are private, Bloomberg relates.

Higher costs may weigh on local carriers that are already
struggling with a combined debt of $13.6 billion, the region's
most expensive fuel tariffs and a falling rupee, Mark D. Martin,
chief executive officer of Dubai-based Martin Consulting LLC, told
Bloomberg.  Lessors including a unit of American International
Group Inc. are wary after the government failed to release some
aircraft grounded by Kingfisher, leading to messy litigation, the
report relays.

"I don't really blame the lessors," Bloomberg quotes Mr. Martin,
who advises airlines on their fleet strategy, as saying. "You have
to blame Kingfisher for this. Right now, lessors are pretty much
in control and command of the negotiations."

While keeping rentals unchanged, the lessors also sought
government guarantee for the planes, which Air India declined to
provide, the officials told Bloomberg. The carrier has asked the
government to expedite a rule change to address their concerns,
the officials said.

India plans to ease rules to ensure leasing companies are able to
take possession of aircraft without any hurdles, Aviation
Secretary K.N. Shrivastava said Sept. 13, without giving a
timeline, Bloomberg reports.

                      About Kingfisher Airlines

Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- 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
Mumbai.

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.


METALOGICS SYSTEMS: CRISIL Cuts Ratings on INR175MM Loans to 'D'
----------------------------------------------------------------
CRISIL has downgraded its ratings on the outstanding bank
facilities of Metalogics Systems Pvt Ltd to 'CRISIL D/CRISIL D'
from 'CRISIL B/Stable/CRISIL A4'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit             75.0      CRISIL D (Downgrade from
                                     'CRISIL B/Stable')

   Term Loan               55.0      CRISIL D(Downgrade from
                                     'CRISIL B/Stable')

   Export Packing Credit   35.0      CRISIL D (Downgrade from
                                     'CRISIL A4')

   Bank Guarantee          10.0      CRISIL D (Downgrade from
                                     'CRISIL A4')

The downgrade reflects MSPL's continuously overdrawn cash credit
and packing credit facilities for more than 30 consecutive days,
on account of weak liquidity. The downgrade also factors in the
instances of delay by the company in servicing its term debt; the
delays have been caused by the company's weak liquidity. MSPL has
weak liquidity because of stretch in payments from its customers.

MSPL also has a modest scale of operations and is exposed to
revenue concentration risks. However, MSPL benefits from its
established market position in the legacy application
transformation and software automation business domain.

MSPL, incorporated in July 1997, is based in Kolkata (West
Bengal). It has been providing software services since the past 12
years. The company's promoters, Mr. Arup Dasgupta and Mr. Ansuman
Bhattacharya, have combined experience of over two decades in
similar lines of business. MSPL has an established market position
in the niche legacy application modernisation, software
application migration, and software automation domain. MSPL is an
ISO 9001:2000 certified company. It also has ISO 27001:2005 (BS
7799) certification for information security management systems.


MITTASO INDIA: CRISIL Lowers Rating on INR125MM Loan to 'D'
-----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank loan
facility of Mittaso India Pvt Ltd to 'CRISIL D' from 'CRISIL
BB/Stable'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit              125      CRISIL D (Downgraded from
                                     'CRISIL BB/Stable')

The rating downgrade reflects the current overdue amount of INR30
million in MIPL's cash credit limit of INR125 million for more
than 30 days. Subsequently, the account was classified as a non-
performing asset; this has been confirmed by MIPL's management as
well as its bank (State Bank of Patiala).

MIPL's scale of operations remains modest in an intensely
competitive market, while its debt protection metrics remains
below average. Moreover, the company's operating margin is
susceptible to changes in government regulations and to volatility
in raw material prices. However, MIPL benefits from its long track
record in the basmati rice industry, financial support from its
promoters, and healthy growth prospects for the basmati rice
industry.

Set up in 1997 by Mr. Babu Ram Mittal and his two sons, Mr. Monu
Mittal and Mr. Sonu Mittal, MIPL is engaged in milling and sorting
of basmati rice. The company has a rice milling facility in
Narwana (Haryana) with an installed capacity of 4 tonnes per hour.

MIPL reported a profit after tax (PAT) of INR0.01 million on net
sales of INR676.9 million for 2011-12 (refers to financial year,
April 1 to March 31), as against a PAT of INR7.48 million on net
sales of INR1140.2 million for 2010-11.


NARAYANI COKE: CRISIL Ups Ratings on INR124MM Loans to 'BB'
-----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Narayani Coke Pvt Ltd to 'CRISIL BB/Stable' from 'CRISIL BB-
/Stable', and has reaffirmed its rating on the company's short-
term bank facilities at 'CRISIL A4+'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit               90      CRISIL BB/ Stable (Upgrade
                                     from 'CRISIL BB-/Stable')

   Letter of Credit         560      CRISIL A4+ (Reaffirmed)

   Proposed Short Term      356      CRISIL A4+ (Reaffirmed)
   Bank Loan Facility

   Term loan                 34      CRISIL BB/Stable (Upgrade
                                     from 'CRISIL BB-/Stable')

The rating upgrade reflects improvement in NCPL's liquidity in the
past two years, driven by improvement in the company's working
capital management. NCPL's gross current asset days have improved
to less than 150 days as on March 31, 2013 from over 300 days in
the past. However inventory holding still remains high. This is
because NCPL imports majority of its coal inventory from
Australia, which involves high lead time (around 4 months from
date of placement of order to delivery at factory site) and is
economical when done in bulk. In addition to an improvement in
working capital intensity, recent enhancement of NCPL's cash
credit limit to INR90 million (from INR60 million) provides
additional cushion to the liquidity of the company. The rating
upgrade is also driven by improvement in NCPL's financial risk
profile because of regular infusion of equity by the company's
promoter. Over the three years through 2012-13 (refers to
financial year, April 1 to March 31), the promoter has infused
INR96 million of equity into NCPL. This has improved the company's
net worth to INR211 million as on March 31, 2013, from INR80
million as on March 31, 2010. NCPL's scale of operations has also
improved in 2012-13 on the back of its increased capacity; the
company's capacity to manufacture 4200 tonnes per month (tpm) of
low-ash metallurgical coke at its manufacturing facility in Kutch
(Gujarat) was recently doubled to around 8400 tpm. Also, the
company's liquidity continues to remain 'less than adequate'
marked by highly utilised cash credit limits and fully utilized
letter of credit limits. Moreover, the company used additional
letter of credit facility to the tune of INR150 million on average
backed by 100% fixed deposits

However, NCPL's profitability remains low as well as exposed to
risks related to high inventory holding as well as fluctuations in
foreign exchange rates, as the company imports its raw materials
and usually does not hedge its exposure. In the last four years
through 2012-13 the company's operating margins have fluctuated
between 2.3 per cent and 4.3 per cent.

The ratings reflect the extensive industry experience of NCPL's
promoters, and the company's average financial risk profile marked
by healthy gearing and moderate debt protection metrics. These
rating strengths are partially offset by NCPL's working-capital-
intensive operations and the susceptibility of the company's
margins to cyclicality in the end-user steel industry and to
volatility in coke prices.

Outlook: Stable

CRISIL believes that NCPL will continue to benefit over the medium
term from its promoter's extensive experience in the coke industry
and its reputed clientele. The outlook may be revised to
'Positive' in case the company registers higher-than-expected
profitability or hedges its inventory and forex risks thereby
reducing volatility in its operating margin. Conversely, the
outlook may be revised to 'Negative' in case NCPL registers lower-
than-expected revenues and profitability, leading to weakening in
its financial risk profile, or if its working capital requirements
increase more than expected, leading to pressure on its liquidity.

NCPL, incorporated in 2003, commenced operations in July 2004.
Owing to lack of bank funding, the company stopped operations in
March 2005. It resumed operations in September 2006 after
obtaining bank limits. NCPL manufactures low-ash metallurgical
coke. The company's day-to-day operations are managed by its
promoter, Mr. Pawan More.

NCPL reported a profit after tax (PAT) of INR19 million on net
sales of INR1376 million for 2012-13, against a PAT of INR7
million on net sales of INR893 million for 2011-12.


N G REALTY: CRISIL Lowers Ratings on INR1.15BB Loans to 'D'
-----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility of
N G Realty Pvt Ltd to 'CRISIL D' from 'CRISIL B+/Stable'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Rupee Term Loan         1,150     CRISIL D

The rating downgrade reflects instances of delay by NGRPL in
servicing its debt; the delays have been caused by the company's
weak liquidity. The company faced delays in getting land
clearances during 2012-13 (refers to financial year, April 1 to
March 31), which has resulted in lower offtake and also in lower
customer advances for area already booked. Hence, its liquidity
has come under stress and consequently, cash flows have been
inadequate for meeting its maturing debt obligations. Though the
promoters have been bringing in funds to support repayment
obligations, the timing mismatch of cashflows has resulted in the
repayments being made with delays.

NGRPL is also exposed to high project offtake risk. However, NGRPL
benefits from the extensive experience of its promoters in the
real estate industry and favorable location of its project.

NGRPL, part of the NG group, Ahmedabad (Gujarat), was incorporated
in 2005 to develop infrastructure projects and undertake real
estate activities such as development of land, and construction
and marketing of various real estate projects. The company is
developing its first project, an industrial park, in

NGRPL's industrial park is spread over 218 hectares under the name
of Gallops in Rajoda and Chancharwadi, Ahmedabad district.

The NG group has been in the real estate industry since 1984, and
is among the forerunners in real estate development in Ahmedabad.
The group has developed nearly 3.0 million square feet of land,
and undertaken construction valued at more than INR15 billion. The
promoters form independent entities to undertake the commercial or
residential projects, a common feature in the real estate
industry. Once the project is complete and the units are sold,
there is no revenue generated by the firms till new projects are
undertaken.


PUMARTH INFRA: CRISIL Rates INR300MM Bank Loan at 'B+'
------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Pumarth Infrastructure Private Limited.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Proposed Long-Term       300      CRISIL B+/Stable
   Bank Loan Facility

The rating reflects PIPL's exposure to risks relating to funding,
implementation and off-take in respect of its ongoing and planned
projects and risks relating to cyclicality in Indian real estate
industry. These rating weaknesses are partially offset by benefits
that PIPL derives from its promoter's long standing experience in
real estate development.

Outlook: Stable

CRISIL believes that PIPL will benefit over the medium term from
its promoter's extensive experience in the real estate sector. The
outlook may be revised to 'Positive' if the company exhibits
significant progress in bookings and flow of advances for its
ongoing project and projects in pipeline. Conversely, the outlook
may be revised to 'Negative' if PIPL reports significantly lower-
than-expected cash flow from operations, either because of subdued
response to its projects or lower-than-envisaged flow of advances
or it takes higher than envisaged debt funding thereby impacting
its financial risk profile.

PIPL established in 1982 by Mr. Manoj Sumati Kumar Kasliwal is
involved in real estate development. PIPL primarily undertakes
development of land by converting agricultural land into NA
status, providing the supporting infrastructure dividing it into
plots and selling it to end customers. The company also develops
row houses based on customer requirements. The company is
currently executing a project, Pumarth Meadows, in Indore and has
three more projects planned to commence in 2013.

For 2012-13 (refers to financial year, April 1 to March 31), PIPL
reported, on a provisional basis, a profit after tax (PAT) of
INR18.4 million on net sales of INR105.7 million, against a PAT of
INR14.7 million on net sales of INR92.4 million for FY2011-12.


SAMIRA REALTY: CRISIL Cuts Ratings on INR180MM Loans to 'D'
-----------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Samira
Realty Projects Pvt Ltd to 'CRISIL D' from 'CRISIL BB+/Stable'.

                          Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit              76.5     CRISIL D (Downgraded from
                                     'CRISIL BB+/Stable')

   Proposed Term Loan      103.5     CRISIL D (Downgraded from
                                     'CRISIL BB+/Stable')

The downgrade reflects instances of delay by SRPPL in servicing
its debt; the delays have been caused by the company's weak
liquidity.

SRPPL is also exposed to risk related to slow sales offtake.
Moreover, its sales are dependent on the progress of key
infrastructure projects in the region. However, SRPPL benefits
from its growing presence in the Panvel-Alibaug-Revdanda-Kashid
(PARK) region (Maharashtra).

SRPPL was incorporated in 2007 as a joint venture between Samira
Construction Ltd and IL&FS IndiaReit Fund. It is part of the
Samira Habitat group, promoted by Mr. Sameer Nerurkar. The Samira
Habitat group is a leading lifestyle and infrastructure company
which is actively developing the PARK region.


SHRI GAUTAM: CRISIL Raises Rating on INR40MM Cash Credit to 'B+'
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Shri Gautam Ship Breaking Industries Pvt Ltd to 'CRISIL B+/Stable'
from 'CRISIL B/Stable' and reaffirmed its rating on the short term
facilities 'CRISIL A4'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit               40      CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B/Stable')

   Letter of Credit         360      CRISIL A4 (Reaffirmed)

The upgrade reflects CRISIL's belief that SGSBIPL's net worth will
continue to increase, backed by healthy sales and profitability,
and that the company will follow prudent risk management practices
in the medium term. The company had reported negative net worth in
the past due to losses, but moderate profitability and accretion
to reserves in 2012-13 (refers to financial year, April 1 to March
31) have helped it report positive net worth of INR3.4 million as
on March 31, 2013 (negative INR33.5 million a year ago). Moderate
profitability is expected to drive increase in net worth over the
medium term. The company now follows prudent risk management
practices by hedging part of its foreign exchange (forex)
exposure, given recent volatility in the forex markets. It has
been cautious in the purchase of new ships. These risk management
practices have helped the company maintain moderate profitability
(of around 6 per cent in 2012-13). SGSBIPL has maintained healthy
growth in turnover. The company booked sales of around INR971.2
million, with a year-on-year growth of around 85 per cent, backed
by higher tonnage of ships dismantled as well as marginal
improvement in average realisation. CRISIL believes that the
SGSBIPL will continue to follow prudent risk management practices
in the medium term, and maintain profitability, and therefore,
improved net worth.

CRISIL's ratings on the bank facilities of SGSBIPL continue to
reflect SGSBIPL's weak financial risk profile, marked by a small
net worth, and susceptibility to cyclicality in ship-breaking
industry and to volatility in steel scrap prices and forex rates.
These rating weaknesses are partially offset by the benefits that
SGSBIPL derives from its promoters' extensive experience in the
ship-breaking industry.

Outlook: Stable

CRISIL believes that SGSBIPL will maintain its credit risk profile
backed by its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if SGSBIPL's capital
structure improves, backed by higher-than-expected net worth,
primarily on account of healthy operating profitability or
infusion of equity. Conversely, the outlook may be revised to
'Negative' if the company's profitability or scale of operations
declines, caused most likely by slowdown in the ship-breaking
industry or by fluctuations in scrap prices, which could lead to
inadequacy in cash accruals and consequent pressure on debt-
servicing ability.

SGSBIPL, set up in 1983, is in the ship-breaking business. It is
based in Alang (Gujarat), which is the leading ship-breaking and
recycling centre industry in Asia. The company buys old ships and
breaks them into steel plates, which it then supplies to rolling
mills in Gujarat. SGSBIPL was formed by Mr. Vinod Bhayani and his
family. Currently, his son, Mr. Samir Bhayani, who has around two
decades of experience in the ship-breaking industry, is looking
after the company.

SGSBIPL reported a profit after tax (PAT) of INR26.8 million on
net sales of INR971.0 million for 2011-12 (refers to financial
year, April 1 to March 31), against a PAT of INR17.7 million on
net sales of INR538.0 million for 2010-11.


YAMIR PACKAGING: CRISIL Cuts Ratings on INR171MM Loans to 'B-'
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Yamir Packaging Private limited to 'CRISIL B-/Stable' from
'CRISIL B/Stable'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit              80.0     CRISIL B-/Stable (Downgraded
                                     from 'CRISIL B/Stable')

   Rupee Term Loan          91.0     CRISIL B-/Stable (Downgraded
                                     from 'CRISIL B/Stable')

The downgrade reflects CRISIL's belief that YPPL's business and
financial risk profiles will remain under pressure over the medium
term. YPPL had increased manufacturing capacities between 2009 and
2011; however, with sluggish demand, it has not been able to scale
up sales as expected. This resulted in sales remaining around
INR550 million in 2012-13 (refers to financial year, April 1 to
March 31), lower than CRISIL's expectation. Demand pressure also
impacted its liquidity position with stretched working capital
requirements. YPPL's gross current assets increased to an
estimated 100 days as on March 31, 2013, from 50 days a year
earlier. CRISIL believes that YPPL's liquidity will remain
stretched over the medium term with suppressed accruals against
large maturing debt and working capital requirements over the
medium term.

The rating reflects YPPL's weak financial risk profile, marked by
high gearing, weak debt protection metrics, and a small net worth.
The rating also factors in the company's small scale of operations
in the fragmented packaging products industry. These rating
weaknesses are partially offset by the extensive industry
experience of YPPL's promoters.

Outlook: Stable

CRISIL believes that YPPL will continue to benefit over the medium
term from its established relationships with reputed customers.
However, the company's financial risk profile is expected to
remain constrained, marked by high gearing and weak debt
protection metrics. The outlook may be revised to 'Positive' if
YPPL reports a better-than-expected sales and operating margin,
leading to higher cash accruals and a substantial improvement in
its capital structure. Conversely, the outlook may be revised to
'Negative' if the company's liquidity is further marred with
stretch in working capital requirements or if continued demand
pressure results in lower than expected sales and hence lower
accruals further deteriorating its liquidity.

Incorporated in 2000, YPPL manufactures cartons used in the food,
pharmaceutical, and consumer goods industry, at its facility in
Bharuch (Gujarat).

YPPL reported a net profit of INR7.9 million on net sales of
INR550 million for 2012-13, as against a net profit of INR4.7
million on net sales of INR542 million for 2011-12.



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


TE KAUWHATA: Repays Major Creditors as Receivership Wraps Up
------------------------------------------------------------
Ben Chapman-Smith at The Zealand Herald reports that the final
receivers' report for Te Kauwhata Transport shows major creditors
have been repaid most if not all their money, including employees
owed holiday pay.

Te Kauwhata Transport was forced into receivership in March
because of high debt levels, the Herald relates.

At the time it went under, the Rangiriri-based firm owed various
creditors nearly NZ$14 million, the Herald discloses citing the
final report from receivers Colin McCloy and David Bridgman of
PricewaterhouseCoopers.

Debts included NZ$2.1 million to ANZ Bank, NZ$9.3 million to GE
Finance, NZ$468,000 to the Inland Revenue Department, and
NZ$1.6 million to unsecured creditors, the Herald discloses.

Employees were owed NZ$314,000 in holiday pay, which has now been
paid back.

According to the Herald, Te Kauwhata Transport's business and
assets were sold to Freight Lines Limited for NZ$5.5 million soon
after it went into receivership.

The proceeds from that sale were then used to repay ANZ in full;
the IRD was also paid in full and GE Finance was paid NZ$5.3
million, leaving it NZ$4 million out of pocket.

Unsecured creditors have received no payment, the report, obtained
by the Herald, said.

Te Kauwhata Transport is owned by Robert Pasley, Hamilton Richard
Longbottom of Rototuna, Hamilton and David Pasley and Patricia
Wardill of Whangaparoa, according to Companies Office records.  It
operated 60 trucks between the Auckland, Waikato and Bay of Plenty
regions.  Its customers included brewer Lion, The Wareshouse
Group, Gib, Plumbing World and DB Breweries.



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


DFCC BANK: S&P Assigns 'B' Counterparty Credit Ratings
------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'B' long-term and 'B' short-term counterparty credit ratings to
Sri Lanka-based DFCC Bank.  The outlook on the long-term rating is
stable.  S&P also assigned its 'B' long-term issue rating to the
bank's proposed senior unsecured notes.  The rating on the notes
is subject to S&P's review of the final issuance documentation.

Standard & Poor's bases its ratings on DFCC's "adequate" business
position, "moderate" capital and earnings, "moderate" risk
position," below average" funding, and "adequate" liquidity, as
defined under S&P's criteria.  The bank's stand-alone credit
profile is 'b'.

DFCC is a licensed specialized bank (LSB) focused on term project
lending with consolidated assets of Sri Lanka rupee 151 billion as
of March 31, 2013.  It has 99.1% stake in a commercial bank DFCC
Vardhana Bank PLC with operational synergies.

"DFCC's business position reflects our view of the bank's
satisfactory business stability, diversification, management, and
strategy compared with that of peers in emerging markets," said
Standard & Poor's credit analyst Amit Pandey.

DFCC's deposit market share is about 1.7% of the entire banking
industry.  Like that of most other Sri Lankan banks, the majority
of DFCC's loans emanate from Sri Lanka.  DFCC's revenue base is
stable, with net interest income of 72% of operating revenues and
fee income of 6% of operating revenues for the past five years.
The bank also earns dividends from its 14.8% stake in Commercial
Bank of Ceylon.

S&P's assessment of the bank's capital and earnings reflects its
expectation that the pre-diversification risk-adjusted capital
(RAC) ratio will fall to 6%-6.5% and into the moderate category in
the next two years.  The ratio is 7.4% as of March 31, 2013.

The risk management practices of DFCC are evolving, in S&P's view.
The bank's risk position reflects its higher exposure to small and
medium enterprises and project finance, which are susceptible to
economic downturns and execution risks.

DFCC's funding and liquidity profile reflects the bank's smaller
branch network and lower deposit funding profile.  DFCC's status
as an LSB prohibits it from raising savings and demand deposits.
Nevertheless, the bank benefits from funding support from
multilateral and bilateral institutions.  DFCC's sizable holdings
of government bonds and securities as well as central bank and
interbank balances underpin its liquidity.

S&P sees a "moderate" likelihood that the government of Sri Lanka
would provide timely and sufficient extraordinary support to DFCC
in the event of financial distress.  This is because of the bank's
"moderate systemic importance," given its size in Sri Lanka and
our assessment of the government as "supportive."  However, there
is no uplift benefit from this factor on our ratings on DFCC,
in line with S&P's criteria.

"The stable outlook reflects our view that DFCC will maintain its
financial profile over the next 12 months, despite a slight
weakening in its asset quality and capitalization," said
Mr. Pandey.

S&P could upgrade DFCC if its funding profile or asset quality
improves to a level that is in line with the industry or its pre-
diversification RAC ratio goes above 10%.  S&P could lower the
ratings if the bank's capitalization deteriorates such that its
pre-diversification RAC ratio goes below 5%, which is unlikely in
the next 24 months at least.



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


* Fitch: EM Asia Policy Management is Key, Despite Tapering Delay
-----------------------------------------------------------------
Policies to keep growth on a sustainable footing without a
worsening of trade deficits and raising of inflationary pressure
remain key to sovereign creditworthiness in emerging Asia, says
Fitch Ratings. This is despite the US Federal Reserve's decision
to delay the "tapering" of its quantitative easing. Success in
lowering external imbalances to within financeable limits should
help anchor investor confidence and head off any future resumption
or intensification of market pressures.

The dovish statement from the Fed has boosted emerging market
asset prices. The MSCI Asia-Pacific index rose nearly 2% on 19
September. Meanwhile, the JP Morgan EMBI index stripped spread
compressed by 18bp, and currencies that have been weakest year-to-
date in the region - the Indian rupee and Indonesian rupiah -
rallied by 2.5% and 4%, respectively.

At most, from a credit perspective, these market movements imply
that emerging Asian countries with current account deficits are
likely to face a temporary easing in funding conditions. Ebbing
market pressure provides a relatively favourable short-term
backdrop in which to cut external funding gaps, which have
recently proven more difficult to plug with capital inflows.

However, Fitch still expects global funding conditions to tighten
over the coming year, even if the pace and scale remain subject to
uncertainty. Therefore measures to keep growth on a sustainable
footing without a structural deterioration in trade deficits or
sustained pick-up in inflation pressure, remain important for
shoring up investor confidence and for sovereign creditworthiness.

One risk is that allowing economic policy to drift, with economies
kept afloat for a while longer by easy access to cheaper-than-
expected money, would merely risk setting the stage for more
volatility and a potentially bigger adjustment down the road. Such
a build-up of perceived risks could ultimately prove negative for
some regional sovereign ratings.

The region faces headwinds not only from eventual Fed tapering
driving tighter funding conditions, but also from pressure on
commodity prices partly as a result of China's slowdown - this has
been particularly significant for Indonesia. Fitch expects the
region's growth to slow to 5.7% in 2013 from 5.9% in 2012, the
weakest since 2001. However, this remains strong relative to
projected global EM growth of 4% for 2013.

Some tolerance for currency- and financial-market volatility is
built into regional ratings. However, any future intensification
of market concern and resumption of downward pressure on
currencies could risk undermining financial and economic
stability, eg via vulnerabilities on corporate or bank balance
sheets -- although this is not Fitch's base case.


* Moody's: BASEL III Has Narrow Benefits for Developing Countries
-----------------------------------------------------------------
Developing countries gain less in terms of GDP from the Basel III
implementation than do the developed countries, a new research
report from Moody's Investors Service has found. Modeling the
impact of Basel III reforms on the banking systems of eight
developing countries, Moody's estimates the benefit from Basel III
implementation to approach those in developed countries only in
India.

The report "Limited GDP benefits of Basel III expected for
developing economies" compares the costs against the gains of
Basel III in Brazil, China, India, Mexico, Nigeria, Russia, South
Africa and Ukraine. It explores its net benefit by comparing the
expected loss in GDP growth caused by an increase in bank capital
requirements, against the potential gains of a banking crisis
being averted because of that capital increase.

"We find that there is quite a wide range of different results
from as increase in bank capital as Basel III requires," says
Lucio Vinhas de Souza, Managing Director - Sovereign Chief
Economist. "The majority of the countries in our sample, however,
would experience a very small impact."

Moody's identifies two main reasons for the limited benefit among
the developing countries.

First, the banking systems of the developing countries, as
measured by the share of credit and investment relative to GDP,
have a smaller presence than those in advanced industrial
countries, leading to limited gains from a reduction in losses
should there be a financial crisis, which Basel III implementation
is designed to prevent.

China and South Africa are exceptions to the small share, which
leads them to post larger benefits from higher capital ratios,
says Moody's.

Second, the average level of bank capitalization for the countries
in the study already surpasses Basel III's 8% minimum requirement,
a reflection of national regulatory capital requirements. The
banking systems in five countries in the sample - Brazil, Mexico,
Nigeria, Russia and Ukraine - have capital ratios between 15% and
18%, while China, India and South Africa have ones that are much
lower, averaging 11%.

The low levels of capitalization for China, India and South Africa
are another reason why these countries derive relatively larger
net benefits from higher capital ratios.


* Moody's Looks at Pensions as Credit Risk for Sub-sovereigns
-------------------------------------------------------------
The underfunding of defined benefit pension plans for public-
sector workers is a credit problem shared by sub-sovereign
governments across developed countries, which includes US and
Australian states, Canadian provinces, German lander, and US local
governments, says Moody's Investors Service in the new report
"Moody's on Pensions: Sub-sovereign Credit Risk." Comparing the
credit risk that pension liabilities pose among sub-sovereigns,
Moody's finds large variations in liabilities and reform not only
by country but also within each country.

Moody's says the most striking outliers in terms of size of
reported underfunded obligations are found in the US. The German
lander, however, stand out because they do not fund long-term
accruals of their obligations and do not report liabilities,
creating uncertainty about the size of the risk. In contrast, the
credit risks of Australian states were reduced with the conversion
of pension plans to defined contribution plans.

The German lander, according to Moody's, make benefit payments
that typically account for 10% or less of current operating
revenues. Budgetary pressure from pension costs will increase
unless more funding is provided or benefits are curtailed, says
Moody's.

In the near term, pension costs among lander are rising but appear
manageable. Lander have a pay-as-you-go pension model, which means
they pay for annual benefits to retirees directly from their
budgets; they are able to cope with pension costs as they do with
any program expenditure.

In contrast to the lander, Canadian provinces achieve good
transparency in their pension plan reporting, typically providing
the assumptions used in calculations of liability. Among the
provinces Qu‚bec (Aa2 stable) and Newfoundland and Labrador (Aa2
stable) face the largest pension risk owing to the size of their
unfunded pension liabilities relative to their revenues.

The median funded status of the provinces has demonstrated a
reasonable level of stability, says Moody's. The stability
suggests the Canadian provinces overall remain committed to making
contributions to pension plans even during times of market
turbulence and budget deficits. A third Canadian province,
Saskatchewan (Aa1 positive), stands out because it closed its
defined-benefit plans and takes a pay-as-you-go approach to
funding them.

Sub-sovereigns in Australia have also mostly reformed their
defined-benefit plans by switching to more predictable, less risky
defined-contribution plans, which means their unfunded liabilities
will be tapering off in coming years.

Australia also adopted more conservative assumptions on discount
rates and asset returns, which will make its data more comparable
to adjusted US public pension data as well as corporate pension
reporting generally, largely eliminating the need for adjustments.

Adjusted data in the United States show large variations for the
50 states in the amount of underfunded pension liabilities
relative to revenues, as indicated by Moody's Adjusted Net Pension
Liability (ANPL) measure, which the rating agency introduced in
April.

US state ratios of ANPL-to-revenues varied widely in fiscal 2011,
ranging from Nebraska (no general obligation debt rating) at 6.8%
to Illinois (A3 negative), which has an ANPL-to-revenue ratio of
241%.

The structure and magnitude of pension obligations also vary
widely across the US local governments. The extent of the pension
burden for the local governments most hindered by pensions is much
heavier than it is for the pension-challenged state governments,
because the local governments have more labor-intensive operations
as well as less financial flexibility with which to combat the
problem.



                             *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, Frauline S. Abangan,
and Peter A. Chapman, Editors.

Copyright 2013.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-241-8200.



                 *** End of Transmission ***