TCRAP_Public/131002.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

          Wednesday, October 2, 2013, Vol. 16, No. 195



BGA ENGINEERING: Placed in Administration
CLEM7: Queensland Motorways Buys Tunnel for AU$618 Million


YANZHOU COAL: S&P Lowers CCR to 'BB+'; Outlook Stable


BAGGA LINK: ICRA Reaffirms 'BB+' Rating on INR2cr Loan
BAJAJ PRINTERS: ICRA Assigns 'B+' Rating to INR8cr LT Loans
B.I. FABRICS: ICRA Assigns 'BB' Rating to INR9.9cr LT Loan
BLUE STAR: ICRA Assigns 'B+' Ratings to INR10.50cr Loans
CREATIVE TANNERY: ICRA Reaffirms 'BB-' Rating on INR10cr Loans

ECO TECH: ICRA Reaffirms 'B+' Ratings on INR80cr Loans
J S FASHIONS: ICRA Reaffirms 'BB' Rating on INR18cr LT Loan
MD FROZEN: ICRA Downgrades Ratings on INR30cr Loans to 'B'
MRA METAL: ICRA Suspends 'B/A4' Rating on INR12cr Loans
NET 4 INDIA: ICRA Suspends 'BB+' Rating on INR76cr Loans

REAL GROWTH: ICRA Reaffirms 'B+' Rating on INR21cr Loans
SAGAR MANUFACTURERS: ICRA Assigns 'BB-' Rating to INR7cr Loans
SCHOOL BOOK: ICRA Reaffirms 'B+' Rating on INR9cr LT Loan
S.D. EDUCATION: ICRA Assigns 'B-' Rating to INR6.75cr Term Loan
SEPAL CERAMIC: ICRA Reaffirms 'B+' Ratings on INR7.43cr Loans

SHIKARPUR & BHANDAPUR: ICRA Puts 'B-' Ratings on INR6.25cr Loans
SHREEPATI JEWELS: ICRA Reaffirms 'BB-' Rating on INR100cr Loans
SHRI AGRAWAL: ICRA Assigns 'B+' Rating to INR3cr Long Term Loans
SRINIVASA AGRO: ICRA Reaffirms 'BB-' Rating on INR12cr Loan
STFCL CV: Fitch to Cut Ratings to BB+ If Default Rate Hits 1.24x

ULTRACAB (INDIA): ICRA Reaffirms 'B' Ratings to INR14.94cr Loans
* Indian Banks' Asset Quality Pressures to Persist Says Fitch


GOLOMT BANK: Ratings Remain on Moody's Review For Downgrade

N E W  Z E A L A N D

ANNIES: In Voluntary Receivership, Cuts 21 Jobs
HANOVER FINANCE: Court of Appeal Rejects Appeal on AIG Case
ROCKFORTE FINANCE: Another Former Director Pleads Guilty


* SINGAPORE: REITs Highly Leveraged; Face Refinancing Risk

S O U T H  K O R E A

TONG YANG: FSS to Probe For Possible Unfair Trading
* SOUTH KOREA: Three Conglomerates at Risk of Cash Shortages


WAN HAI: Moody's Changes Outlook to Stable on Good Performance


* Vietnam Relatively Resilient, but Banking Remains a Drag


* Upcoming Meetings, Conferences and Seminars

                            - - - - -


BGA ENGINEERING: Placed in Administration
Yolanda Redrup at SmartCompany reports that BGA Engineering has
collapsed, after an international company allegedly failed to pay
the business $1.3 million for contracted work.

BGA Engineering was placed in administration on September 25, with
administrators Chris Darin and Ivor Worrell from Worrells Solvency
and Forensic Accountants appointed, according to SmartCompany.

SmartCompany says the collapse comes as several businesses in the
engineering sector have failed to stay afloat.

Worrells practice director for the Central Coast, Mark Franklin,
told SmartCompany the alleged unpaid money has resulted in the
business being unable to pay workers or other creditors and placed
the company in financial distress.

"BGA Engineering's solicitor recommended to the sole director of
the company to place it into administration to see if there is any
way to turn the business around," the report quotes Mr. Franklin
as saying.  "The likely outcome is BGA will go into liquidation
and the sole director is now trading under a different entity on
the same premises."

New South Wales Central Coast-based BGA Engineering fabricates

CLEM7: Queensland Motorways Buys Tunnel for AU$618 Million
Matt O'Sullivan at The Sydney Morning Herald reports that more
than two years after it was placed in receivership, Brisbane's
Clem7 tunnel has been sold to Queensland Motorways for AU$618
million -- a fraction of the AU$3 billion it cost to build.

The tollroad's receiver, KordaMentha, has selected Queensland
Motorways ahead of three other consortiums including one led by
UBS Infrastructure Fund, according to The Sydney Morning Herald.

Queensland Motorways, which is owned by the Queensland Investment
Corporation, controls most of Brisbane's tollroads, including the
Gateway and Logan motorways and the Legacy Way tunnel, currently
under construction in the city's west.

The report notes that the state-owned business had been seen as
the most logical buyer of the Clem7 given the tunnel would fit
well within the rest of its network.

The report recalls that RiverCity Motorway, the previous owner of
the tunnel under the Brisbane River, was placed in receivership in
February 2011, less than a year after it was opened to motorists.

The report says that the AU$618 million price tag will include
AU$33 million in taxes and other costs.

The report discloses that analysts had expected the tunnel to sell
for less than AU$650 million.

The 6.8-kilometre tollway includes a 4.8-kilometre tunnel linking
roads on each side of the Brisbane River.

The report says that the sale is expected to be completed within
the next three months.


YANZHOU COAL: S&P Lowers CCR to 'BB+'; Outlook Stable
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on China-based Yanzhou Coal Mining Co. Ltd. and its
long-term issue rating on the company's senior unsecured notes to
'BB+' from 'BBB-'.  The outlook is stable.

At the same time, S&P lowered its Greater China regional scale
rating on the company and its notes to 'cnBBB+' from 'cn A-'.  S&P
removed all ratings from CreditWatch, where they were placed with
negative implications on July 24, 2013.

"We lowered the rating on Yanzhou because of its compressed margin
and higher leverage.  Our assessment of the "moderately high"
likelihood of extraordinary government support is unchanged.  We
believe the challenging industry conditions are not likely to
worsen.  We lowered stand-alone credit profile on Yanzhou to 'bb'
from 'bb+', reflecting the company's "fair" business risk profile
and "aggressive" financial risk profile," S&P said.

"We expect lower gross profit margins and operating cash flows for
Yanzhou in 2013 and 2014," said Standard & Poor's credit analyst
Jian Cheng.  "We believe low coal prices and still-high coal
trading volumes will curb the company's earnings and cash flow.
Although Yanzhou cut its production cost, the benefit was more
than offset by falling coal prices."

S&P believes coal prices will stay low because of soft demand and
tougher air emissions standards for power generation plants that
burn coal.  The inelastic demand for electricity and long lead
time to implement emission policies may prevent coal prices from
further sharp declines in the next 12-18 months.

In S&P's forecast, Yanzhou's leverage will increase in 2013 and
2014.  Because company is still expanding, operating cash flow
generation will not be sufficient to fund its capital spending.
This is different from our previous expectation that the company's
high leverage was temporary.

The corporate credit rating on Yanzhou reflects the company's
stand-alone credit profile of 'bb' and S&P's expectation of a
"moderately high" likelihood that Shandong's provincial government
will provide sufficient and timely extraordinary support to
Yanzhou in the event of financial distress.  S&P assess the credit
profile of Shandong provincial government to be stronger than the
stand-alone credit profile of Yanzhou.

The stable outlook on Yanzhou reflects S&P's expectation that the
company will be able to weather the industry downturn at the
current rating.  It also reflects S&P's view that coal prices are
most likely to remain flat over the next 12 months.

S&P may lower the rating if Yanzhou's financial performance
weakens substantially more than S&P's base-case forecast.  This
can happen if coal demand deteriorates further in 2014, making it
necessary for the company to cut coal production and realize lower
margins.  S&P would consider a downgrade if Yanzhou's FFO-to-debt
ratio deteriorates below 12% and shows no sign of recovery.

S&P is unlikely to raise the rating in the next 12-18 months at
least, given Yanzhou's weakened financial position and low coal
prices.  S&P may raise the rating if industry conditions improve
or Yanzhou strengthens its leverage and profitability, such that
its ratio of FFO to debt is more than 20% and the ratio of debt to
EBITDA is below 4x for an extended period.


BAGGA LINK: ICRA Reaffirms 'BB+' Rating on INR2cr Loan
ICRA has reaffirmed the long-term rating of '[ICRA]BB+' and the
short-term rating of '[ICRA]A4+' for the INR8.0 Crore bank
facilities of Bagga Link Service Limited. The outlook on the long
term rating is Stable.

   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Fund Based Facilities           2.0       ICRA]BB+(Stable)
   (Cash Credit)                             reaffirmed

   Fund Based Facilities           6.0       [ICRA]A4+ reaffirmed
   (Channel Financing)

The reaffirmation of ratings takes into account BLSL's strong
position as an authorized dealer of Bajaj Auto Limited's two-
wheelers and three wheelers in National Capital Region (NCR), long
standing experience of the promoters in the vehicle dealership
business, an established relationship with BAL and the group
support with other entities involved in a similar business. The
promoter group operates BAL and Maruti Suzuki India Limited
dealerships as well as two fuel pump stations in Delhi. In 2012-
13, BLSL's financial risk profile improved as a result of healthy
growth in the operating income on the back of increased three-
wheeler sales along with an improvement in gearing and other debt
protection metrics.

However, the rating is constrained by high competitive intensity
in the area of operations along with the geographical
concentration in NCR, relatively low profitability indicators and
susceptibility to lower growth in the two-wheeler segment due to
the ongoing economic slowdown. BLSL's ability to increase its
scale of operations as well as improve its profitability will
remain key rating sensitivities.

Recent Results

In 2012-13 (provisional), BLSL reported operating income of
INR131.6 Crore, registering a growth of 37.2% compared to the
previous year. The operating profit before depreciation, interest
and tax (OPBIDTA) improved from INR1.1 Crore in 2011-12 to INR1.6
Crore in 2012-13. The profit after tax (PAT) improved to INR0.6
Crore in 2012-13 from INR0.3 Crore in 2011-12.

Bagga Link Service, established as a partnership firm in 1968,
started off as a service station. In 1970, Bagga Link Service
became the authorized service station of Bajaj Auto Limited for
its scooters. In later part of 1970s, they started delivering BAL
scooters to army personnel through Canteen Store Department.
Further, in 1982, the company got the authorized dealership of
Bajaj 3-wheelers and its M-80 model, followed by Bajaj Chetak and
Priya scooters. Subsequently, in 1989, it was converted into a
private limited company, successfully managing automobile
dealerships of Bajaj Auto Ltd since then. Its territory for the
two wheelers (2W) and three wheelers (3W) dealership comprises of
areas in Delhi where it has ten showrooms and nine workshops.

BAJAJ PRINTERS: ICRA Assigns 'B+' Rating to INR8cr LT Loans
ICRA has assigned a long term rating of '[ICRA]B+' to the INR8.0
crore fund based limits of Bajaj Printers & Packers. ICRA has also
assigned short term ratings of '[ICRA]A4' to the INR12.0 crore non
fund based limits of BPP.

   Facilities         (INR crore)   Ratings
   -----------        -----------   -------
   Long Term Fund         8.00      [ICRA]B+ assigned
   Based Limits

   Short Term Non        12.00      [ICRA]A4 assigned
   Fund Based Limits

The ratings take into account BPP's relatively modest scale of
operations; the high competitive intensity of the packaging
industry; and pressures on BPP's profitability (during FY13, the
net margins declined from 1.50% to 0.29%) which is susceptible to
raw material price fluctuation and foreign currency fluctuation
risks given the long lead time for import of raw materials. The
ratings are further constrained by BPP's high working capital
intensity, funding of which by bank borrowings has led high
gearing and modest debt coverage indicators.

Nevertheless, the ratings draw comfort from favourable growth
prospects in the domestic flexible plastic packaging industry,
BPP's long track record of operations in the industry with an
established presence of more than two decades; its long
association with the client base which comprises reputed players
of the FMCG industry. The ratings also draw comfort from
continuous fund infusion by the partners to meet the working
capital and capex funding requirements of the business. BPP's
ability to scale up the turnover in a profitable manner, manage
its working capital intensity and maintain a healthy financial
risk profile in the context of the moderate scale of operations
would remain the key rating drivers.

Bajaj Printers & Packers, established in 1987 as a proprietorship
entity, has been converted into partnership firm with effect from
April 1, 2012. BPP has its manufacturing facility in Bahadurgarh
(Haryana) and Bawana (Delhi) for production of plastic bags and
flexible packaging material. The firm manufactures- shrink films,
vinyl bags, self-adhesive tapes, liners, plastic trays etc. The
firm has also been engaged in plastic printing and paper printing.
Customer portfolio of the firm includes Parle Products Limited,
ITC Limited, Britannia Industries Limited, Hindustan Sanitaryware
& Industries Limited, State Bank of India (paper printing),
Railneer (shrink film printing) etc.

Recent Results

BPP has reported a profit after tax (PAT) of INR0.11 crore on an
operating income of INR37.67 crore in FY 2013 as compared to PAT
of INR0.38 crore on an operating income of INR25.08 crore in FY

B.I. FABRICS: ICRA Assigns 'BB' Rating to INR9.9cr LT Loan
ICRA has assigned an '[ICRA]BB' rating to the INR9.90 crore long-
term, fund-based bank facilities of B.I. Fabrics. The outlook on
the long-term rating is stable.

   Facilities            (INR crore)  Ratings
   -----------           -----------  -------
   Fund Based Limits:      9.90      [ICRA]BB (Stable) assigned
   Long term scale

The ratings favourably factor in the experience of the promoters
in the textile industry for close to three decades and a long-
standing relationship with a distribution network of over 150-200
fabric agents across India. The firm has its fabric processing
unit in Balotra (Rajasthan), which is a fabric processing hub,
providing it easy access to the skilled labor and raw materials.
The ratings are however constrained by weak profit margins of the
firm, which are owing to limited pricing power of the players in
the fragmented and highly competitive fabric processing segment.
Being a raw material intensive industry, the profit margins are
also vulnerable to any sharp fluctuations in raw material prices.
Also, the liquidity profile of the firm remains stretched on
account of the high utilisation of sanctioned fund based limits.

Going forward, ICRA expects margins to remain at current levels
and range bound, with the key rating sensitivities being the
ability of the firm to sustain its revenue growth and improve its
profit margins while maintaining its working capital intensity.

B.I. Fabrics was established in 2004 as a partnership firm in
Balotra, an industrially backward region in Rajasthan. The firm is
engaged in processing of ladies' blouse material, mainly in cotton
fabric, which it markets under its brand 'B.I. Textiles Mills' in
the domestic market. The firm carries out mercerising, dyeing,
finishing and cutting of the grey fabric. The finished fabric is
then packaged and supplied directly to wholesale customers or to
agents in domestic market. The firm has a fabric processing unit
in Balotra (Rajasthan) with a processing capacity of 1 lakh metres
of cloth per day, where it also installed an Effluent Treatment
Plant with Reverse Osmosis having a capacity of processing 500
Kilo-Litre water per day (KLD) for a cost of INR1.55 crore in
January 2013. BIF procures almost 90% of the grey fabric, its key
raw material, from a group concern which is engaged in fabric
weaving in Bhiwandi (Maharashtra). The firm is managed and closely
held by the Chopra family, which is involved in textile business
since three decades.

Recent results

As per provisional numbers for FY 2013, BIF reported an operating
income of INR53.70 crore and a net profit of INR0.88 crore. As per
audited numbers for FY 2012, BIF reported an operating income of
INR48.37 crore and a net profit of INR0.81 crore.

BLUE STAR: ICRA Assigns 'B+' Ratings to INR10.50cr Loans
ICRA has assigned '[ICRA]B+' rating to the INR7.50 crores term
loans and INR3.0 crores fund based limits of Blue Star Cement

   Facilities           (INR crore)   Ratings
   -----------          -----------   -------
   Term Loans              7.50       [ICRA]B+; Assigned
   Fund Based Limits-      3.00       [ICRA]B+; Assigned
   Cash Credit

The rating is constrained by absence of track record of company's
operations and high off take risks as the project has just
commenced operations. Moreover, lack of backward integration into
a clinkerisation unit and reliance on high cost power from State
Electricity Board would result in higher cost of production for
the company as compared to large integrated cement players. The
rating also factors in the susceptibility of the company's
profitability to cyclicality inherent in the cement industry and
fluctuation in prices of raw materials. Nevertheless, the rating
derives comfort from the completion of the project within budgeted
cost and the long experience of the promoters in cement
manufacturing and trading of building materials which provides an
established marketing and sales network to BSCL in Uttar Pradesh
and adjoining areas.

Going forward, the company's ability to operate at optimum
capacity utilization levels in the face of competition from
several established manufacturers and maintain adequate control
over costs are the key rating sensitivities.

Blue Star Cement Limited was incorporated in the year 2010 and is
promoted by Mr. Vishal Kanodia, Mr. Ashok Kumar Kanodia and Mr.
Manoj Kedia. The company has set up a 180000 TPA mini cement plant
at Sikanderabad, Bulandshahr, Uttar Pradesh. The total cost of the
project is INR15.18 crores which has been funded by debt of
INR7.50 crores, equity of INR4.75 crores and interest-free
unsecured loans of INR2.93 crores. The construction work on the
project commenced in March 2012 and the plant commenced commercial
production in September 2013. BSCL would produce different
varieties of cement- Ordinary Portland Cement (OPC) and Portland
Pozzolona Cement (PPC). The promoters also run another cement
plant 'Kanodia Cement Limited' at Sikanderabad, Uttar Pradesh with
an installed capacity of 300,000 TPA, which commenced operations
in April 2011. The promoters also have a trading concern 'Big
Strong Cement Limited' which is engaged in trading of building

CREATIVE TANNERY: ICRA Reaffirms 'BB-' Rating on INR10cr Loans
ICRA has re-affirmed the long term assigned to the INR10.0 crore
fund-based facilities of Creative Tannery Limited at '[ICRA]BB-'.
The outlook on the rating is stable. ICRA has also re-affirmed the
short term rating assigned to the INR5.0 crore non fund based
facilities of CTL at '[ICRA]A4'.

   Facilities             (INR crore)   Ratings
   -----------            -----------   -------
   Fund Based limits          10.0      [ICRA]BB-(Stable)/

   Non Fund Based limits       5.0      [ICRA]A4/re-affirmed

The re-affirmation of ratings consider the steady operational and
financial performance of the company over the recent past aided by
steady demand for finished leather in the domestic market and
increasing export volumes of leather goods, albeit constrained to
an extent by the forex loss incurred during 2012-13. The ratings
also consider the rich experience of the promoters in the leather
business for about four decades, its established relationship with
customers and improving product diversification with increasing
export volume of leather goods which are likely to support revenue
growth and margin expansion going forward. However, the ratings
continue to remain constrained by the strained liquidity position
of the company owing to the high working capital intensity, which
has resulted in periodical over-drawls in cash credit facilities.
Thin accruals from the business over the recent past coupled with
high inventory levels owing to seasonal availability of raw
materials have resulted in tight cash flow position for CTL.

The ratings also factor in CTL's moderate scale of operations and
the intense competition in the leather tanning business limiting
pricing flexibility exposing earnings to fluctuating raw material
prices and exchange rates. Going forward, the ability of the
Company to sustain revenue growth and margins amidst the
competition and improve its working capital cycle would remain key
rating sensitivities.

Creative Tannery Limited, is a moderate scale tannery unit located
in Chennai with production capacity of six lakhs square feet per
month. The tannery unit was a part of the company - Creative
Limited (CL) till 2008 and was demerged into a separate company
during 2008-09. CTL is involved in the tanning of leather -
processing of wet blue leather (obtained after removal of hair
from the animal skin and performing certain chemical processes)
into finished leather as well as production of leather products.
The promoters of CTL having been in the business for decades, have
developed a diversified customer base across footwear and leather
goods segments.

ECO TECH: ICRA Reaffirms 'B+' Ratings on INR80cr Loans
ICRA has reaffirmed the '[ICRA]B+' rating to the INR55 crore term
loan and INR25 Crore non fund based bank limits (sublimit of term
loan) of Eco Tech Papers.

   Facilities           (INR crore)   Ratings
   -----------          -----------   -------
   Term loan               55         [ICRA]B+ reaffirmed
   Non-Fund Based Limits   25         [ICRA]B+ reaffirmed

The reaffirmation of the rating takes into account the progress of
the project slightly ahead of the schedule, which also limits the
likelihood of any cost overrun. The rating takes note of the
limited experience of the partners in the paper business, its
moderately high project gearing that is likely to have an adverse
impact on the net profitability, particularly during the initial
years, and risks associated with the entity being a partnership
firm, including the risk of capital withdrawal by the partners.
The rating, however, also takes note of ETP's advantages in terms
of its captive power plant, thus leading to lower power costs, as
well as its proximity to customers based in North East region
resulting in lower outward freight cost.

The rating takes note of entity's exposure to fluctuations in
waste paper prices that would keep its profit margins volatile.
ICRA notes that ETP plans to manufacture high burst factor (BF)
variant kraft paper, which coupled with various incentives and
subsidies available under the North East Industrial and Investment
Promotion Policy (NEIIPP) 2007 is likely to support the entity's
profitability going forward. While ICRA derives comfort from the
advancement of project execution ahead of schedule, stabilization
of operations, as per stated parameters, post project
commissioning would remain a key rating sensitivity going forward.

Incorporated in 2010, ETP has been promoted by the North East
based diversified Lohia group and JAL group. ETP is in the process
of setting up a multi layer kraft manufacturing facility of 41,250
MTPA and a 4 MW captive power plant in Kamalpur, Assam. The firm
would manufacture kraft paper of 80 - 280 GSM with a burst factor
of 20-35.

J S FASHIONS: ICRA Reaffirms 'BB' Rating on INR18cr LT Loan
ICRA has re-affirmed '[ICRA]BB' rating to the INR18.00 crore long-
term fund based limits (enhanced from INR15.00 crore) of J S
Fashions (INTL) Private Limited. The outlook on the long-term
rating is stable. ICRA has also re-affirmed '[ICRA]A4' rating to
the INR6.55 crore short-term non fund based limits (enhanced from
INR6.43 crore) of the Company.

   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long Term Fund                 18.00      [ICRA]BB (Stable)/
   Based Limit                               re-affirmed

   Short Term Non-fund             6.55      [ICRA]A4/
   Based Limit                               re-affirmed

The re-affirmation of the ratings factors in the long standing
experience of the promoters in the textile industry and JSPL's
well established customer base comprising of garment manufacturers
of renowned brands which has driven repeat orders. The ratings
also factors in the Company's healthy growth in FY-13 aided by
increase in volumes from existing customers and additions of few
new customers. However, the ratings are constrained by the
Company's limited pricing flexibility due to the highly
competitive market and low value added nature of operations. The
ratings are also constrained by the Company's stretched credit
profile as reflected by gearing of 2.2 times, as on March 31, 2013
owing to the increased working capital requirements stemming from
the high collection period and limited credit period available.
Going forward, the working capital requirements of the company are
likely to remain high over the medium-term given low credit period
allowed by the fabric suppliers.

JS Fashions (INTL) Private Limited is engaged in trading of cotton
shirting fabrics in both the domestic and international markets.
Mr. Jugraj Jain along with Mrs. Kamla Devi started the business as
a proprietorship firm in 1994, which was later converted into a
private limited company in 1999. JSPL has been primarily operating
as a wholesale dealer of 100% cotton shirting fabric for ready-
made garment manufacturers and retail textile dealers for the last
two and a half decades. The raw material is procured by the
company both domestically and internationally from locations
including Europe and China. The company's sales are however
primarily made to the domestic markets with exports contributing
only 2-3% of the total sales. JSPL supplies fabric under three
brand names Villa Italia, Cotonificio and Soktas. Villa Italia and
Cotonificio are the two brands registered by the Company which are
supplied in the retail segment across India. Soktas, on the other
hand, is a Turkish brand for shirting fabrics for which JSPL acts
as the sole distributor for Indian markets. In addition to the
aforementioned brands, the company is planning to launch new
brands during the current fiscal.

Apart from JSPL, the promoters also have a proprietary concern, JS
Exports which was started in 2007-08 mainly to operate as a sole
distributor of Soktas for retail markets across India.

Recent Results

For 2012-13, JSPL's operating income stood at INR138.5 crore with
a profit after tax of INR2.1 crore against profit after tax of
INR1.7 crore on operating income of INR97.6 crore in 2011-12.

MD FROZEN: ICRA Downgrades Ratings on INR30cr Loans to 'B'
ICRA has revised the long-term rating assigned to the INR29.75
crore, (enhanced from INR19.75 crore) fund based limits and
INR0.25 crore non-fund limits of MD Frozen Food Exports Private
Limited to '[ICRA]B' from '[ICRA]BB+'.

   Facilities           (INR crore)   Ratings
   -----------          -----------   -------
   Fund-Based Limit        29.75      [ICRA]B, revised from

   Non fund based Limit     0.25      [ICRA]B, revised from

For arriving at the rating, ICRA has combined the business and
financial risk profile of MD Frozen Food Exports Private Limited
and MD Frozen Food Exports, considering the strong operational and
financial linkages among the group companies; presence in similar
business segments and management by the same promoters

The rating revision takes into account the small scale of
operations of MDPL and its strained liquidity position as
reflected by high utilization of the working capital borrowings.
MDPL's strained liquidity position has resulted from the
significant increase in the working capital requirements owing to
high investment in inventory and stretched receivables. Further,
the increase in long term borrowings on account of various vehicle
loans and unsecured borrowings has resulted in high gearing levels
and increased debt servicing obligations for the company. The
rating also factors in the intense competition in the meat export
industry; vulnerability to fluctuations in foreign exchange rates;
volatility in raw material prices; susceptibility to changes in
regulations and exposure to event risks such as disease out-break.

ICRA also takes note of the on-going debt funded capital
expenditure by other group entity (MDF) towards construction of an
integrated abattoir. MDPL is dependent on MDF for processing of
raw meat for exports. The rating, nevertheless, derives comfort
from the significant experience of the promoters in the frozen
food export business and the established relationships with the
overseas clients. Going forward, company's ability to increase its
scale of operations, improve its liquidity position by efficiently
managing working capital intensity and improvement in its capital
structure would be the key rating sensitivity factors.

Incorporated in 1996, M.D. Frozen Food Exports Private Limited
(MDPL) is engaged in trading and export of frozen meat to the
Commonwealth of Independent States (CIS) and countries in Africa,
Asia and the Middle East. In the absence of own processing
facility, MDPL is dependent on associate concerns, Sushil Ice
Factory & Cold Storage Private Limited (SPL) and MDF for meat
processing. Entire shareholding of the company is held by Mohd.
Saleem and Mr Nawabuddin, who are engaged in this business for
over 2 decades.

MRA METAL: ICRA Suspends 'B/A4' Rating on INR12cr Loans
ICRA has suspended [ICRA]B/[ICRA]A4 ratings assigned to the
INR12.0 Crore bank facilities of MRA Metal Private Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the

NET 4 INDIA: ICRA Suspends 'BB+' Rating on INR76cr Loans
ICRA has suspended the '[ICRA]BB+ (stable)' rating for the INR52.0
crore working capital facilities and INR24.0 crore term loans and
[ICRA]A4+ rating for the INR37.5 crore non fund based limits of
Net 4 India Limited. The suspension follows ICRA's inability to
carry out a rating surveillance in the absence of the requisite
information from the company. According to its suspension policy,
ICRA may suspend any rating outstanding if in its opinion there is
insufficient information to assess such rating during the
surveillance exercise.

REAL GROWTH: ICRA Reaffirms 'B+' Rating on INR21cr Loans
ICRA has reaffirmed '[ICRA]B+' rating for INR21.00 crore fund
based limits of Real Growth Commercial Enterprises Limited. The
short term rating of '[ICRA]A4' for INR17.5 crore non fund based
facilities of the company stands withdrawn.

   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Fund Based Limits              21.0       [ICRA]B+ Reaffirmed

The ratings reaffirmation takes into account support extended by
group companies and low raw material price risk due to low
inventory levels maintained by company. However, rating concerns
emanate from limited track record of trading operations of the
company having commenced operations in January 2010, low
profitability inherent in the trading nature of business, which
coupled with relatively high gearing arising out of significant
debt funding of working capital requirements has resulted in weak
coverage indicators and cash flow generation. Further, subdued
profitability has resulted in modest return indicators with ROCE
of 13.80% for FY2013. Given the nature of the business the firm
operates ICRA does not expect any significant improvement in
profitability indicators in the medium term. The rating also takes
into account highly fragmented and competitive nature of the
industry due to low entry barriers which exert pressure on the
margins of the company.

Real Growth Commercial Enterprises Limited was incorporated in
1995 under the name KRS Financials Pvt Ltd. In 2001, it was taken
over by the RG Group and the name was changed to Rajesh Projects &
Finance Limited which was subsequently changed to its current form
in January 2011. The company was involved in development of
commercial office-cum-shopping complexes till 2007 and executed 4
commercial projects during this period. It commenced trading of
stainless steel sheets of various dimensions in January 2010. No
new real estate projects were undertaken in the company after 2007
and RGCEL is solely operating in the business of trading of
stainless steel sheets in Bhiwadi, Rajasthan. The company's stock
is listed on the regional stock exchanges of Delhi, Jaipur and
Ahmedabad. RGCEL is a part of the RG Group which is involved in
real estate development activities since 1999 through its group
companies Rajesh Projects (India) Pvt. Ltd. (RPIPL), Real Growth
Commercial Enterprises Ltd., RG Residency Pvt. Ltd., RG Services
Pvt. Ltd. and RG Assets Pvt. Ltd. In the past, the group has
developed Commercial Office-cum-Shopping complexes; however now
the group has also forayed into development of residential
projects. Till date, the group has developed 14 commercial &
retail projects in Delhi and the NCR.

Recent Results

For the financial year ending 31st March 2013, the company
reported net profit after tax of INR1.40 crore on an operating
income of INR223.41 crore as against net profit after tax of
INR1.76 crore on an operating income of INR243.32 crore in FY2012.

SAGAR MANUFACTURERS: ICRA Assigns 'BB-' Rating to INR7cr Loans
ICRA has assigned the long term rating of '[ICRA]BB-' to INR100.00
crore* fund based and non-fund based bank limits of Sagar
Manufacturers Private Limited. The outlook on the long term rating
is Stable. The long term fund based limits can also be availed as
short term fund based limits to the extent of INR4.0 crore with a
short term rating of '[ICRA]A4'.

   Facilities               (INR crore)   Ratings
   -----------              -----------   -------
   Long Term: Fund            93.00       [ICRA]BB- (Stable)/
   Based Limits                           [ICRA]A4/ assigned

   Long Term: Non-Fund         7.00       [ICRA]BB- (Stable)/
   Based Limits                            assigned

The assigned rating is constrained by the nascent stage of
operations of the company with commercial production commencing
from March 2013. While the production has increased over the
months with capacity utilization of 96% in August 2013, the
ability to sustain the utilization levels would be critical for
generating adequate accruals for debt servicing, given the large
debt repayments commencing in FY2015 on account of debt funded
capital expenditure incurred for setting up of the green-field
spinning unit. Though the debt repayments are high, timely
completion of the project has resulted in adequate moratorium of
12 months from the commencement of operations which would provide
sufficient cushion for the stabilization of the operations and
establishing the marketing network, given first venture of
promoters in the spinning sector.

The assigned rating also takes into account the proposed large
debt funded capital expenditure towards increasing the spinning
capacity, which though would result in economies of scale over a
long term, would keep the financial profile modest over the medium
term. The rating is also constrained by the company's modest
positioning in a fragmented industry for a commoditized product
which restricts the pricing ability, resulting in dependence of
the profitability on the company's cotton stocking policy during
the cotton season and the movement in the cotton & yarn prices
thereafter. The assigned rating however favorably takes into
account the healthy yarn demand, primarily driven by export demand
from China, which has resulted in improved realizations and
profitability for domestic cotton spinners, as the cotton prices
have witnessed limited increase. The Government of China has
increased the support prices for cotton and also imposed import
duty on cotton imports with peak import duty of 40%, which has
increased the cotton cost in China, resulting in increased imports
of yarn from other countries including India. The demand and
profitability margins are however contingent upon Chinese
governments' policy on cotton support prices and import policy on
cotton/yarn, and any unfavorable change in the policy would
adversely impact the Indian spinners. The assigned rating also
takes into account the eligibility of SMPL for the various
investment incentives from the state and central government, with
interest subsidy on the term debt as a major among other
incentives, which would lower the cost of funds and support the
profitability and accruals. Going forward, ability to maintain
optimal capacity utilization level of the spinning unit along with
adequate profitability margins, given the scheduled debt
repayments, would be key rating sensitivities. In addition, given
the primarily debt funding of the proposed increase in the
spinning capacity, timely completion of the expansion within
budgeted cost would be critical.

SMPL was incorporated in November 2010 and is promoted by Mr.
Sudhir Kumar Agrawal. SMPL is engaged in manufacturing of cotton
spun yarn and has a spinning unit in Madhya Pradesh with an
installed capacity of 33,720 spindles which commenced commercial
production from March 2013. SMPL is part of the Bhopal based Sagar
group, which had been primarily engaged in education and real
estate sectors. The group has set up five colleges and two schools
in Bhopal under two societies, Shri Agrawal Educational and
Cultural Society (rated [ICRA]B+) and Shri Agrawal Educational and
Welfare Society which together have a total strength of ~8,000
students (~4,000 students in schools). Two group companies,
Agrawal Builders & Agrawal Builders & Colonizers are engaged in
civil construction and real estate development for last three
decades in Bhopal.

SCHOOL BOOK: ICRA Reaffirms 'B+' Rating on INR9cr LT Loan
ICRA has reaffirmed the long term rating assigned to INR9.00 crore
bank lines of School Book Company at of '[ICRA]B+'. The outlook on
the long term rating is Stable.

   Facilities              (INR crore)   Ratings
   -----------             -----------   -------
   Long-term fund             9.00       [ICRA]B+ reaffirmed
   based limits

Rating Rationale

The rating reaffirmation continues to be constrained by the
moderate size of the entity in terms of turnover; presence in
limited geographic area and relatively low entry barriers in
trading of stationary papers & stationary items. The rating is
also constrained by the seasonality in SBC business resulting in
high inventory levels and consequent reliance on working capital
funding; leveraged capital structure with gearing of around 2.70
times and partnership nature of the entity. The reaffirmation of
rating draws comfort from established brand presence of SBC in
Mangalore region with operations since 1922; modest growth over
last 5 years backed by presence of SBC retail shops in key
localities of Mangalore and digital printing capabilities and
established relationship with its suppliers. Going forward
improvement in the capital structure of School Book Company, while
its ability to maintain profitability are key rating

School Book Company is based in Mangalore and trades in stationary
paper, other stationary items (normally used in offices and
schools) and books (school and general). It also has a printing
press which provides digital printing solutions based on demand.
It was incorporated in 1922 in its earliest form and has a multi
story-central warehouse in Mangalore for its trading and
distribution operations, two retail shops in Mangalore (on Car
Street and on KS Rao Road) and a digital printing press. It is
being managed by 10 partners from Bhandary family.

Recent Results
For FY2013 (unaudited and provisional), the company has reported
an operating income of INR46.75 crore and net profit of INR1.03

S.D. EDUCATION: ICRA Assigns 'B-' Rating to INR6.75cr Term Loan
ICRA has assigned the long term rating of '[ICRA]B-' to the
INR6.75 crore fund based bank facilities of S.D. Education Trust.

   Facilities                (INR crore)   Ratings
   -----------               -----------   -------
   Fund based limits-            6.75      [ICRA]B- assigned
   term loan

The assigned rating takes into account the limited track record of
the trust as its school commenced the operations in AY 2013-14
and the consequent modest operating metrics as is typical for
newly commenced schools which have gestation period related to
ramp up of student strength. While the school is located in
proximity to an upcoming residential belt, most of these
residential projects are currently under construction which
results in high market risk.

Further, given the initial gestation period of the school, cash
losses suffered by the trust, the debt servicing obligations
(interest as of now, as repayments will commence from Q1'FY2015),
the trust will continue to depend on timely funding support from
trustees for servicing its debt obligations in near future. The
rating however derives comfort from the experienced trustee
profile who have a track record of operating K-12 schools. In
ICRA's view, improvement in the enrolments, timely contribution
from trustees to meet debt serving obligations and scale of
further expansion and debt funding thereof will be the key rating
sensitivities going forward.

Incorporated in 2012, S.D. Education Trust is a single-asset trust
which runs and operates a K-12 school-by the name - "Shanti
Asiatic School" in Jaipur (SAS, Jaipur), Rajasthan. The school
commenced operations in AY 2013-14 and presently caters to 181
students till Standard VI. The school proposes to commence
admissions for Standard VII and VIII from AY 2014-15.

SEPAL CERAMIC: ICRA Reaffirms 'B+' Ratings on INR7.43cr Loans
The rating of '[ICRA]B+' has been reaffirmed for the INR4.40 crore
fund based cash credit facility and the INR3.03 crore term loan
facility of Sepal Ceramic. The rating of '[ICRA]A4' has also been
reaffirmed to INR0.70 crore bank guarantee limits of SC.

   Facilities           (INR crore)   Ratings
   -----------          -----------   -------
   Cash Credit Limit        4.40      [ICRA]B+ reaffirmed
   Term Loans               3.03      [ICRA]B+ reaffirmed
   Bank Guarantee           0.70      [ICRA]A4 reaffirmed

The ratings continue to remain constrained by SC's small scale of
operations and weak financial profile characterized by low
profitability, stretched capital structure and weak coverage
indicators. The ratings are further constrained by the firm's
dependence on the performance of real estate industry which is the
main consuming sector, intense competition with the presence of
large established organized tile manufacturers and unorganized
players and vulnerability to increasing gas and power prices.
Also, being a partnership firm, any substantial withdrawal from
the capital account would adversely impact the net worth and
thereby the capital structure.

The ratings, however, favorably consider the experience of key
promoters in the ceramic industry and the location advantage
enjoyed by SC giving it easy access to raw material as well as the
geographically diversified customer base.

Sepal Ceramic is a digitally printed ceramic wall tiles
manufacturer with its plant situated at Morbi, Gujarat. The firm
was incorporated in the year 2007 with the commencement of
commercial production in April 2008. The firm is managed by Mr.
Pravin Dava and other family members. The plant has an installed
capacity to produce 16, 50,000 boxes of wall tiles per annum.

Recent Results

For the year ended 31st March, 2013, the firm reported an
operating income of INR12.29 crore with profit after tax of
INR0.09 crore

SHIKARPUR & BHANDAPUR: ICRA Puts 'B-' Ratings on INR6.25cr Loans
ICRA has assigned a long term rating of '[ICRA]B-' to the INR4.20
crore tea hypothecation limit, the INR1.80 crore term loan and the
INR0.25 crore bank guarantee of Shikarpur & Bhandapur Tea Estates
Private Limited.

   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Tea Hypothecation Limits       4.20       [ICRA]B- assigned
   Term Loan                      1.80       [ICRA]B- assigned
   Bank Guarantee                 0.25       [ICRA]B- assigned

The rating factors in the small scale of current operations and
the negative tangible net worth of the company. While assigning
the rating, ICRA has drawn some comfort from the fact that the
interest free unsecured loans from the promoters of INR6.50
crores, which as per agreement with banks cannot be withdrawn
without their prior consent. The rating also takes into account
the concentration of both the gardens of the company in the Dooars
region that accentuates the agro climatic risks associated with
tea and the inherent cyclicality in the tea industry that leads to
variability in profitability and cash flows of players including
SBTEPL. While assigning the rating, ICRA has also taken note of
the experience of the promoters in the tea industry and the
favourable outlook of the domestic bulk tea industry.

SBTEPL was acquired by the present management in 2011 from the
erstwhile promoters. SBTEPL has two tea gardens in the Dooars
region of North-East India, with a total area of around 755
hectares, of which currently 514 hecatres is under plantation. The
total production capacity of SBTEPL is around 25 lakh kg of tea.

Recent Results

As per provisional results, in FY13 the company registered a
profit after tax of INR0.07 crore on the back of OI of INR9.98
crore. In FY12, SBTEPL registered a profit after tax of INR0.03
crore on the back of OI of INR7.20 crore.

SHREEPATI JEWELS: ICRA Reaffirms 'BB-' Rating on INR100cr Loans
ICRA has reaffirmed the rating of '[ICRA]BB-' on the long-term
scale to the INR100.0 crore bank facilities of Shreepati Jewels.
The outlook on the rating is stable. The rating reaffirmation
continues to take into account the long track record of promoters
in the real estate industry, especially redevelopment projects in
South Mumbai, debt tie-up and necessary approvals in place. Also,
though the project is behind schedule on account of increase in
project scope as well as non-availability of construction material
for a small period, the staggered repayment schedule provides
comfort to an extent.

   Facilities                (INR crore)   Ratings
   -----------               -----------   -------
   Long-term, Fund-based        100.00     [ICRA]BB- (stable)
   limits (Term Loan)                      reaffirmed

The rating is, however, constrained on account of the marketing
risks for the project with majority of sales yet to be tied up and
execution risk since almost 85% of project cost is yet to be
incurred. ICRA also notes the sluggish real estate market activity
on account of the ongoing macro-economic slowdown and nascent
stage of the project which is expected to impact sales in the near
term. Funding risk could increase as the group plans to execute
other large projects in South Mumbai. However, the execution risks
are mitigated to a large extent since consent from tenants for
redevelopment has been obtained and major approvals are in place.

Shreepati group is promoted by Mr. Rajendra Chaturvedi. The group
is engaged in residential real estate projects, primarily located
in South Mumbai with majority of projects of redevelopment type.
The business has been carried out through a number of group
companies by the partners, formed primarily for tax purpose. The
group currently has 3.37 lac square feet of saleable area under
the project (Shreepati Jewels Wings D/E) under construction with
another 9 lac square feet of projects to be launched in the near
future and has so far completed more than 5 lac square feet of
construction through different project companies. The group has
completed four residential projects, prominent one being Shreepati
Arcade at Nana Chowk in South Mumbai having 45 floors and which
was the tallest residential building at the time of completion in
2002. It has also completed another project of 39 floors in
Girgaum, South Mumbai in September, 2011; it was part of phase-I
in Shreepati Jewels. The redevelopment project in SJ is under the
recently amended Development Control Regulations -DCR 33 (9) that
allows a higher vertical limit when building clusters in a minimum
area of one acre are redeveloped and a FSI of 4 was granted for
the original project scope.

Recent results:

As per its unaudited results for FY 2013, Shreepati Jewels
reported profit after tax (PAT) of INR7.46 crore on an operating
income of INR27.41 crore.

SHRI AGRAWAL: ICRA Assigns 'B+' Rating to INR3cr Long Term Loans
ICRA has assigned the long term rating of '[ICRA]B+' to INR3.00
crore fund based bank limits of Shri Agrawal Educational and
Cultural Society.

   Facilities               (INR crore)   Ratings
   -----------              -----------   -------
   Long Term: Fund             3.00       [ICRA]B+/ assigned
   Based Limits

The assigned rating is constrained by the society's modest scale
of operations which is on account of moderate occupancies (73% in
AY 2013-14) and limited sanctioned intake in the only engineering
college managed by the society. As the society had commenced
operations in AY 2009-10, high overheads and gradual ramp up in
the student strength in the initial years had resulted in net
deficit till FY 2011-12 which along with debt funded capital
expenditure towards setting up of the engineering college has
resulted in weak capital structure of the society with a gearing
of 2.35 times as on March 31, 2013. Though the occupancies and
student strength have increased over the years which have also
improved the surplus and debt coverage, the accruals from the
existing operations remain modest. This coupled with large debt
funded capital expenditure being undertaken towards setting up of
a new school and increasing the academic capacity in the
engineering college, could stretch the financial profile of the
society. The ability to achieve adequate occupancies in both the
school and the engineering college would thus be the key rating
sensitivity, given the high competitive intensity due to presence
of a number of colleges/schools in the area. The assigned rating
also takes into account the modest liquidity profile of the
society on account of delays in receipt of fees from the students
and absence of working capital limits.

The rating however favorably takes into account the track record
of more than a decade of the management in the education field in
Madhya Pradesh, having established a total of five colleges and
two schools in Bhopal under two societies and their regular
support towards funding the deficit and capital expenditure being
undertaken. Going forward, ability to achieve adequate occupancies
and manage the liquidity through timely fee collection and
availability of adequate working capital limits would be key
rating sensitivities. Society Profile SAEC was formed in FY 2008
by Mr. Sudhir Kumar Agrawal. The society has set up an engineering
college under the name, Sagar Institute of Science, Technology and
Engineering in Ratibad (Bhopal) which is affiliated to Rajiv
Ghandhi Proudyogiki Vishwavidyalaya (Bhopal). The engineering
college commenced operations from AY 2009-10 with an intake of 90
students and presently has student strength of 1,052 students (in
AY 2013-14). The college offers graduate (B.E.) and post-graduate
(M.E.) courses.

SAEC is part of the Bhopal based Sagar group, which besides
education is also present in real estate and textile sectors. In
addition to SAEC, another society, Shri Agrawal Educational and
Welfare Society has set up four colleges and two schools in Bhopal
which have a total strength of ~7,000 students (~4,000 students in
schools). Two group companies, Agrawal Builders and Agrawal
Builders & Colonizers have been engaged in civil construction and
real estate development for last three decades in Bhopal. The
group has recently commissioned a spinning unit in Madhya Pradesh
in another company, Sagar Manufacturers Pvt. Ltd. (rated [ICRA]BB-
(Stable)/[ICRA]A4), which has an installed capacity of 33,720

SRINIVASA AGRO: ICRA Reaffirms 'BB-' Rating on INR12cr Loan
ICRA has reaffirmed rating of '[ICRA]BB-' for INR12.00 crore fund
based limits of Srinivasa Agro Products. The outlook on the long
term rating is stable.

   Facilities           (INR crore)   Ratings
   -----------          -----------   -------
   Fund based limit        12.00      [ICRA]BB- (Stable)

The rating reaffirmation continues to factor in the long
experience of the management, locational advantage arising from
SAP's presence in the oil seed growing belt of Guntur District in
Andhra Pradesh and favourable demand outlook for cotton seed cake
and oil.

The rating is however constrained by the intense competition from
organized and unorganized players and the vulnerability of
operations to fluctuations in raw material prices and availability
due to its dependence on externalities such as monsoon and the
regulatory framework. The financial profile of the firm continues
to remain weak as reflected by stagnant revenues, low
profitability, leveraged capital structure on account of working
capital intensive nature of the business which is primarily debt
funded and weak debt protection indicators.

ICRA also notes that SAP is a partnership firm and any significant
withdrawals from the capital account would affect its net worth
and thereby have an adverse impact on the capital structure.

Established in 1991, Srinivasa Agro Products is engaged in
delintering and processing of cotton seed (installed capacity of
160 MTPD) to extract and market crude cotton seed oil along with
various by-products which include C.S.U.D. Cake, Hulls and
Linters. The manufacturing facility is favorably located in the
Guntur district of Andhra Pradesh which is a hub for the
cottonseed business in the state. The firm is owned and managed by
Mr. Srinivasa Rao who has two decades of industry experience.

Recent Results

SAP has, for the year ended March 31, 2013, reported an operating
income of INR60.95 crore and a net profit of INR0.29 crore whereas
the financial statements prepared for the year ended
March 31, 2012 reported an operating income of INR60.67 crore and
a net profit of INR0.71 crore.

STFCL CV: Fitch to Cut Ratings to BB+ If Default Rate Hits 1.24x
Fitch Ratings has assigned an expected rating to STFCL CV Trust
Sep 2013's pass-through certificates (PTC) as follows:

-- INR6,037.4 million Series A PTC due April 2018:
    'BBB-sf(EXP)'; Stable Outlook

The rating addresses timely payment of interest and principal in
accordance with the payout schedule in the transaction document.
The scheduled payout will be net of the distribution tax on the
income distributed by the trust to the PTC holders. The final
ratings are contingent upon the receipt of final documents
conforming to information already received.

The transaction is a static securitisation of Indian rupee-
denominated commercial vehicle loans originated by Shriram
Transport Finance Company Limited (STFC), which is also the

Key Rating Drivers:

Adequate credit enhancement: The rating and outlook are based on
credit enhancement (CE) of 14.8% of the initial principal balance,
STFC's origination, servicing, collection and recovery expertise,
as well as the sound legal and financial structure of the

The CE will comprise a first-loss credit facility (FLCF) and a
second-loss credit facility (SLCF). The FLCF is expected to be in
the form of fixed deposits - with a bank rated at 'BBB-' and 'F3'
by Fitch - in the name of the originator with a lien marked in
favour of the trustee. The SLCF is expected to be in the form of
fixed deposits with a bank rated at 'BBB-' and 'F3' initially and
subsequently the SLCF may be replaced by an unconditional and
irrevocable guarantee provided by a bank rated at 'BBB-' and 'F3'
by Fitch.

The credit enhancement is sufficient to cover the commingling risk
of the servicer and the liquidity for the timely payment of PTCs.

Stressed economic conditions factored in: The 2012 vintage showed
more delinquencies that were over 90 days past due compared with
earlier vintages as a result of unfavorable economic conditions
during 2012, which continued into 2013. The agency has considered
the stressed economic conditions in India in its base case default
rate assumption. The default rate, recovery rate and time to
recovery, together with the portfolio's weighted average yield,
were stressed in Fitch's APAC ABS cashflow model to assess the
sufficiency of cashflow for timely payment at the current rating

No interest-rate or foreign-currency risks: The transaction is not
exposed to interest-rate or foreign-currency risks because both
the assets and the PTCs are fixed-rate and are denominated in

Seasoned portfolio with a moderate loan-to-value ratio: The
collateral pool to be assigned to the trust at par had an
aggregate outstanding principal balance of INR6,037m and consisted
of 15,897 loans as of 31 August 2013. The collateral pool has a
weighted average (WA) loan-to-value ratio of 67.8%, a WA seasoning
of nine months and a weighted average yield of 15.4%. Used
commercial vehicle loans accounted for about 90% of the pool with
the rest being new commercial vehicle loans. Loans that were 1-30
days past due accounted for 3.1% of the pool, and 2.9% of the pool
had overdue amounts valued at over 5% of the monthly installment.

Rating Sensitivities:

The PTCs' rating would be lowered to BB+ if the base case default
rate reaches 1.24x of the current rate, assuming that the CE and
other factors remain constant.

The rating could be upgraded if the ratings of the credit
collateral bank holding the FLCF deposits and the guarantee bank
providing the SLCF are upgraded to above 'BBB-' and the portfolio
performance remains sound, with adequate CE that can withstand
stress at above a 'BBB-sf' rating scenario.

At closing, STFC will assign commercial vehicles loans to STFCL CV
Trust Sep 2013, which in turn will issue the PTCs. The PTC
proceeds will be used to fund the purchase of the underlying

ULTRACAB (INDIA): ICRA Reaffirms 'B' Ratings to INR14.94cr Loans
The rating of '[ICRA]B' has been reaffirmed to INR1.94 crore
(enhanced from INR1.32 crore) term loans and INR13.00 crore
(enhanced from INR10.00 crore) cash credit facility of Ultracab
(India) Private Limited. A rating of '[ICRA]A4' has also been
assigned to INR1.50 crore fund based export packing credit and
INR8.00 crore non-fund based bank guarantee facilities of UIPL. A
rating of '[ICRA]A4' assigned to INR2.00 crore proposed facility
of UIPL has also been withdrawn as the facility no longer exists.

   Facilities            (INR crore)   Ratings
   -----------           -----------   -------
   Cash Credit              13.00      [ICRA]B reaffirmed
   Term Loans                1.94      [ICRA]B reaffirmed
   EPC                       1.50      [ICRA]A4 assigned
   Bank Guarantee            8.00      [ICRA]A4 assigned
   Proposed Limits (reduced            [ICRA]A4 withdrawn
   from INR2.00 crore)

The rating continues to be constrained by the modest scale of
operations of UIPL with declining profit margins during the past
three years; weak financial profile characterised by high gearing
and stretched liquidity. Also, ICRA notes that the company's
margins are vulnerable to high competitive intensity of the
industry given the low entry barriers and to raw material price
fluctuations. However, the company has in the past been able to
pass on the fluctuations in raw material prices to the end
consumers to some extent. The ratings also continue to consider
the experience of promoters in the cable manufacturing business,
company's diverse product profile and a wide distribution cum
marketing network across India.

Ultracab (India) Private Limited was incorporated in December 2007
by Mr. Nitesh Vaghasiya to manufacture wires and cables. UIPL's
plant is located at Shapar Veraval, District- Rajkot,Gujarat. The
company is engaged in manufacturing of PVC/XLPE power and control
cables, multi core flexible wires, flat cables, house wires,
communication cables and aerial bunched cables. The product
profile finds application as household wires, panel boards in
industrial machines, heavy cables in industries and flat cables
for industrial pumps.

Recent Results

For the year ended 31st, March, 2013, UIPL reported an operating
income of INR28.79 crore and profit after tax of INR0.31 crore.

* Indian Banks' Asset Quality Pressures to Persist Says Fitch
Fitch Ratings says that the asset quality indicators for Indian
banks continue to deteriorate and will likely reach levels much
worse than previously expected due to further weakening in the
economic environment.

Indian banks reported a rise in stressed assets to 9.1% of total
loans (NPL ratio: 3.4% and restructured loans ratio: 5.7%) in the
financial year ending March 2013 (FY13) from 6.1% in FY12. This
figure rose by close to 100bp to 10% in Q114 (NPL ratio: 3.9% and
restructured loans ratio: 6.1%). Fitch expects the proportion of
stressed assets to peak at around 15%.

Indian banks' stress tolerance has weakened and this has resulted
in the downgrade of Viability Rating (VR) at several state-owned
banks recently. Private-sector banks have a superior credit
profile supported by their robust earnings profile, lower stressed
assets and strong capital position. This relative resilience is
highlighted by the outcome of Fitch's stress tests, with the
tolerance remaining largely intact for the private sector banks.

Those state-owned banks' whose earnings and capital buffers have
not kept pace with the significant asset quality deterioration,
even with the state's regular injections of capital, will likely
experience more pressure on their VRs. The private-sector banks,
helped by robust profitability and strong capitalization buffers
are better positioned to face the economic slowdown, which is
likely to be more prolonged than previously expected.

The agency has revised its full-year FY14 forecast for real GDP
growth down to 4.8% in FY14 and 5.8% in FY15, from previous
projections of 5.7% and 6.5% respectively. Sharp depreciation in
the Indian rupee has further weakened consumer and business
confidence and complicated matters for policymakers, who are
already trying to combat persistent inflation in the economy.

Indian banks' loan growth moderated in FY13 (13.5% vs growth of
17% in FY12), although the concentration in the infrastructure and
cyclical sectors have remained largely unchanged. The financial
metrics at some of the sub-sectors (such as, power, steel,
construction) are stretched and Fitch expects these sectors to
contribute the bulk of the expected stress on Indian banks.

State-owned banks' in the last four years have benefitted from
regular capital injections, but their dependence on this form of
support has grown as earnings have shrunk consistently over the
years. Fitch believes these banks may not seek funding via the
equity markets in the near- to mid-term due to their weak
performance, adding to their dependence on the state for capital.

Funding for Indian banks is generally satisfactory though
liquidity is expected to remain tight in the near-term. Low-cost
current and savings deposits account for over 30% of the system's
funding base (excluding equity). The share of term deposits has
increased, although retail term deposits, which tend to be less
volatile, account for nearly half of the term deposit mix.

Mid-tier banks continue to have a larger reliance on costlier bulk
and certificate of deposits, which presents refinancing and
pricing volatility.


GOLOMT BANK: Ratings Remain on Moody's Review For Downgrade
Moody's Investors Service is continuing its review for downgrade
of Golomt Bank's ratings.

Moody's had initiated the review on August 15, 2013 because of
Golomt Bank's delay in the publication of its IFRS audited
financial statements for the previous fiscal year of FY2012.

Moody's is maintaining Golomt Bank's current ratings primarily
because of the Bank of Mongolia's statement that the bank is in
full compliance with statutory requirements, including
satisfaction of required prudential ratios. However, Golomt Bank's
ratings remain on review for downgrade because of the
uncertainties raised by the delay in the publication of its
financial statements for 2012.

The ratings affected are

- E+ standalone bank financial strength rating (equivalent to a b1
baseline credit assessment, BCA);

- B1 issuer rating;

- B1 local currency long-term deposit rating;

- B2 foreign currency long-term deposit rating

Ratings Rationale:

Moody's notes that, as a result of the BOM's regular and special
inspection of Golomt Bank, the central bank confirmed on May 28,
2013 the absence of any material compliancy violations affecting
the bank's operation, financials, and solvency.

According to Golomt Bank's management, the completion of the audit
for the bank's financial statements for the year ending 2012
should be finalized by mid-October 2013.

Moody's extended review will consider the results of the audited
financial statements, when published.

Potential corporate governance deficiencies -- as signaled by the
delay in the publication of the audited accounts -- will also be

If the audited statements show the position of the bank to be
worse than Moody's current analysis, or if the audit reveals
significant control weaknesses, the Moody's review may result in a
downgrade of Golomt Bank's ratings.

More broadly, in Moody's analysis of a bank's financial
performance and risk position, timely and reliable financial
reporting is an important consideration. This is because the
reported financial and operating data form the starting point of
Moody's credit analysis.

If, by the end of October 2013, the publication of the FY2012
audited financial statements remains delayed, then Moody's will
determine whether there is sufficient information to maintain
Golomt Bank's ratings, or if it should withdraw them.

The principal methodology used in this rating was Global Banks
published in May 2013.

Domiciled in Ulaanbaatar, Golomt Bank reported total unaudited
IFRS assets of MNT2.5 trillion ($1.8 billion) as of December 31,
2012. The bank is 84.6% owned by Bodi International LLC (unrated),
the immediate holding company of the Bodi Group in Mongolia. And
10.1% is owned by Swiss MO Investment AG (unrated), and 5.0% by
Trafigura Beheer B.V. (unrated).

N E W  Z E A L A N D

ANNIES: In Voluntary Receivership, Cuts 21 Jobs
Cathie Bell at Marlborough Express reports that Marlborough fruit
bar manufacturer Annies has gone into voluntary receivership with
21 job losses.

Receivers Price Waterhouse Coopers said the company would continue
to trade, but cuts had been made while the business was in
receivership, according to Marlborough Express.

The report notes that PWC partner John Fisk said Annies had one
customer in the United States unhappy with the wrapper on an order
of 4 million fruit bars.  The cost of returning the bars to
Marlborough and re-wrapping the product was too much, and could
have made the company insolvent, Mr. Fisk, the report relates.

The report relays that the company's board took advice and put the
company into voluntary receivership.

Mr. Fisk said the receivers were looking to sell it as a going
concern and this could be an opportunity to take the company to
the next level, the report notes.

The report discloses that Mr. Fisk said the receivers were working
with the United States customer to "see if we can find a solution
that will work for all parties."

The report notes that Mrs. Giles said they could not in good
conscience continue to trade the business and carry further
liabilities.  Instead, they had gone into voluntary receivership
and were working with the receiver to rebuild the business, the
report relates.  There had been a reduction in production with the
receivership, and the receivers had made the decisions on
staffing, the report adds.

HANOVER FINANCE: Court of Appeal Rejects Appeal on AIG Case
The National Business Review reports that Hanover Group Holdings
has lost its appeal against AIG Insurance New Zealand over what it
had thought was extensive coverage of directors' and officers'
liability for the failed finance company's prospectuses.

NBR recalls that the company appealed a ruling in the High Court
last December that found Chartis Insurance, as the local AIG unit
was then known, hadn't offered such comprehensive cover as Hanover
had thought. The Court of Appeal upheld its view and dismissed
Hanover's appeal. The $20 million policy was taken out in November
2007, the report says.

According to the report, the judgment of Justices Mark O'Regan,
Terence Arnold and Lyn Stevens found that while there was
discussion between Hanover, its insurance broker Apex General and
AIG about getting coverage for all prospectuses, it didn't
definitely show AIG had agreed to extend cover. The renewed policy
AIG actually sent to the finance company didn't reflect its
understanding of what had been agreed. And apparently no one
bothered to check, the report relays.

It appears that no one from Apex or Hanover considered the terms
of the new endorsement 8 on receipt as no concern was raised with
AIG at the time," according to the judgment given by Justice
Arnold in Wellington on September 30, NBR relays.

NBR notes that it wasn't until Hanover's financial woes became
clear in July 2008 that the finance company found it wasn't
covered.  That month, NBR relates, the company stopped taking
deposits and suspended repayments as part of a restructure plan
while the Commerce Commission began an investigation into a
possible breach of the Fair Trading Act by Hanover making
misleading representations.

Hanover gave AIG notice of a possible claim and AIG disputed
cover, the report says. Hanover then issued its proceedings to get
the policy amended to reflect its understanding and in the
alternative, that AIG itself breached the Fair Trading Act and
should be made to honour its promise of full prospectus cover.

Like the judge, then, we consider that Hanover has failed to meet
its burden of establishing that there was an understanding that
AIG would provide full prospectus cover," NBR quotes Justice
Arnold as saying. "Accordingly, we consider that the claim for
rectification must fail."

"Those involved in the discussions were sophisticated and
knowledgeable business people, who can legitimately be expected to
be alert to their interests and to record their respective
positions, and any subsequent agreements, with some care and
precision," Justice Arnold, as cited by NBR, said.

Hanover was ordered to meet AIG's costs, NBR adds.

                        About Hanover Finance

Hanover Finance Limited -- was
New Zealand's third-largest privately-owned finance company with
total assets of NZ$796 million at December 31, 2007.  The company
was established in 1984 to provide finance to the rural sector
and began lending to property developers and investors in 1995.
The loan portfolio has been gradually downsized since 2006 as a
result of a more cautious approach to lending in the face of
retail funding constraints.

Hanover Finance's investors in December 2008 voted in favor of
the company's Debt Restructure Proposals, including a plan to
fully repay NZ$552.6 million principal it owes over five years.
However, Hanover Finance said in November 2009 it is no longer
likely to fully repay investors under a debt restructuring plan
due to a deterioration in the commercial property development
market, a TCR-AP report on Nov. 12, 2009, said.

In December 2009, investors agreed to swap their Hanover
interests for shares in Allied Farmers Ltd.

The Serious Fraud Office commenced an investigation into the
affairs of Hanover Finance Ltd in September 2010 after
considering complaints received from the Securities Commission,
Allied Farmers and others.

The Financial Markets Authority, on March 30, 2012, filed civil
proceedings against directors and promoters of Hanover Finance
Ltd, Hanover Capital Ltd, and United Finance Ltd.  Proceedings
under the Securities Act have been filed against Mark Hotchin,
Eric Watson, Greg Muir, Sir Tipene O'Regan, Bruce Gordon and
Dennis Broit. They relate to statements made in the
December 2007 prospectuses, subsequent advertising, and the
March 2008 prospectus extension certificate.

SFO on April 30, 2013, said it has completed its investigation
of Hanover Finance, bringing to an end its investigations into the
2007/08 finance company collapses. That process, which saw SFO
investigate 15 separate companies, resulted in criminal
prosecutions in relation to nine companies. Overall, 23
individuals have faced charges laid by SFO.

ROCKFORTE FINANCE: Another Former Director Pleads Guilty
John Patrick Gardner, a former director of Rockforte Finance
Limited, has entered a guilty plea in the Gisborne High Court on
October 1. The plea relates to five Crimes Act charges laid by the
Serious Fraud Office (SFO).

Mr. Gardner is the second of three directors to plead to charges
in this prosecution. The charges relate to theft by person in
special relationship, obtaining by deception, and false statement
by promoter. The false reporting lead to the acceptance of
Rockforte into the Crown Retail Deposit Guarantee Scheme.

Acting SFO Chief Executive, Simon McArley said, "As the tail of
finance company prosecutions draws to an end we need to remain
aware of the threat financial crime poses to our economy. SFO's
proactive early intervention strategy aims to apply our capability
and resources to minimising the impact of the next 'finance
company-type' disaster, rather than reacting to it."

SFO laid a number of criminal charges against the three directors
of the failed Gisborne finance company in January 2012.

The charges carry maximum sentences of between seven and ten
years' imprisonment.

The final defendant, Nigel Brent O'Leary (31 charges) is scheduled
to face trial, commencing October 8.

SFO allege that a significant portion of investors' money was used
as a source of funding for the directors' personal business
interests in two companies -- Gisborne Haulage and Michael Ward
1969 Ltd, which operated the Jean Jones label throughout
New Zealand.

Investor losses amounted to NZ$3.86 million.

                        About Rockforte Finance

Established in 2003, Rockforte Finance engages in consumer and
asset lending.  The company specializes in financing used cars,
mostly second-hand Japanese cars imported by an associated
company, and small personal and business loans.

Rockforte Finance was placed into receivership in May 2010, owing
about NZ$3.2 million to some 70 investors, according to a
BusinessWire article posted at  According to the
BusinessWire article, Katherine Kenealy and Dennis Parsons of
Indepth Forensic have been appointed receivers of the Gisborne-
based lender by its trustee Covenant Trust.  The Treasury
confirmed all eligible depositors are covered by the government's
guarantee.  However, all new deposits or any rolled over after
Dec. 31, 2009, fell outside the scheme because Rockforte
didn't sign the replacement guarantee deed at the end of 2009.

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 22, 2011, The New Zealand Herald said the receivers for
Rockforte Finance have halved their forecast for potential
recoveries to less than 5 cents in the dollar and filed
proceedings against the firm's directors.


* SINGAPORE: REITs Highly Leveraged; Face Refinancing Risk
Fitch Ratings says in its new reports that while the operating
metrics of Singapore-incorporated healthcare, hospitality and
industrial REITs are stable now, the funds flow from operation
(FFO)-adjusted net leverage of these REITs is high and they are
exposed to refinancing risk.

There is considerable variation in the business risk the REITs are
exposed to, with the healthcare REITs having a defensive business
profile and the business of the hospitality REITs being the most
cyclical of the three categories. Both industrial and hospitality
REITs also face the risk of rental income being adversely affected
by the additional stock of properties entering in the market till

Fitch expects REITs with large and granular investment property
portfolios, FFO-adjusted net leverage below 6.5x, and master lease
agreements that include a triple-net-lease clause that protects
their net property income margin from increases in property
operating expenses, property tax and property insurance to be
relatively more insulated from business and financial risks.

S O U T H  K O R E A

TONG YANG: FSS to Probe For Possible Unfair Trading
Yonhap News Agency reports that the Financial Supervisory Service
(FSS) is keeping closer tabs on shares of debt-mired Tong Yang
Group's affiliates to prevent any irregular activities that might
harm investors, its officials said October 1.

The FSS said it has been paying closer attention to stock
movements and changes in share values of listed firms affiliated
with South Korea's 38th-largest conglomerate, the news agency

According to Yonhap, Tong Yang Group has been struggling with
liquidity shortage and on September 30 filed for court
receivership of three of its units after failing to secure money
to repay debts worth KRW110 billion (US$102.5 million) maturing on
the same day.

Yonhap reports that Tongyang Networks Corp., the group's system
integrator unit, said Tuesday it will also be seeking court
receivership to shield its assets and properties from creditors.

The report relates that the FSS is especially looking into the
possibility that some Tong Yang Group executives, including the
group's owners, might have used insider information to sell off
their holdings before the liquidity problems emerged.

Since the group's liquidity squeeze stoked woes among investors,
its affiliate shares have been on a roller coaster trade with
fluctuating daily turnovers, Yonhap notes.

As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 1, 2013, Yonhap News Agency said three affiliates of
embattled Tong Yang Group on September 30 filed for court
receivership as a last resort to avert bankruptcy after they
failed to secure funds to keep afloat, the group said.

Yonhap related that South Korea's 38th-largest conglomerate said
its three units -- Tongyang Inc., Tong Yang Leisure Co. and
Tongyang International Inc. -- requested a court's order earlier
on Monday for a corporate revival process.

Tong Yang Group is a South Korean conglomerate founded in 1957 as
a cement manufacturer.  The company through its subsidiaries,
engages in constructing houses, and roads and harbors.  Its
products include ready mixed concrete, PHC piles, admixture, low
heat cement, low-heat portland cement, portland cement, and blast
furnace slag cement.

* SOUTH KOREA: Three Conglomerates at Risk of Cash Shortages
Yonhap News Agency reports that three South Korean conglomerates -
- Doosan, Dongbu and Hanjin -- may face cash shortages due to
their heavy debts and stuttering earnings in recent years, a
private report has warned, with a severe credit crunch pounding
some conglomerates such as STX Group.

Yonhap, citing a report by local credit appraiser Korea Ratings
Corp., relates that steel and construction conglomerate Dongbu
Group's financial burden is growing as its non-financial
affiliates failed to see their earnings improve in recent years
despite continued investment by the group.

The combined debts of the group's six key affiliates -- Dongbu
Steel Co., Dongbu Corp., Dongbu Hannong Co., Dongbu Metal Co.,
Dongbu HiTek Co., Dongbu CNI Co. -- reached 5.5 trillion won
(US$5.1 billion) at the end of June, this year, Yonhap relays.

Of the debts, 56.1 percent should be paid back within one year,
the report, as cited by Yonhap, said.

"Each company doesn't have enough cash to support other
companies," Lee Ji-woong, a researcher at Korea Ratings said,
adding, "The group could face cash shortages if its financial
burden grows," Yonhap reports.

According to Yonhap, Korea Ratings said heavy industries
conglomerate Doosan Group will take a long time to improve its
financial health, which has worsened because of its considerable
debts mainly from acquiring other heavy equipment companies.

Yonhap says the group increased the number of its affiliates to 25
as of the end of last year by taking over 12 companies in a 10-
year period.

However, the group's aggressive takeover put a financial burden on
it due to an increased interest cost with heavy industry market
conditions in poor shape in recent years, according to the report
obtained by Yonhap.

Yonhap adds that Hanjin Group, the parent company of the country's
top carrier Korean Air Lines Co., is in a situation that its brisk
spending to buy planes and ships are threatening its financial

Korea Ratings said the group's two flagship companies, Korean Air
and Hanjin Shipping Co., have seen their earnings worsen due to
Europe's fiscal crisis and their bearish business conditions since
2011, Yonhap relays.


WAN HAI: Moody's Changes Outlook to Stable on Good Performance
Moody's Investors Service has changed to stable from negative the
outlook of Wan Hai Lines Limited's Ba3 corporate family rating and
B1 senior unsecured bond rating, issued by Wan Hai Lines
(Singapore) Pte. Ltd and guaranteed by Wan Hai Lines Ltd..

At the same time, Moody's has affirmed both ratings.

Ratings Rationale:

"The change in outlook to stable reflects Wan Hai's improved
operating profitability, and which we expect to be sustainable,"
says Chenyi Lu, a Moody's Vice President and Senior Analyst.

Wan Hai has -- despite challenging market conditions -- stabilized
its adjusted EBITDA margin, which was 15.7% for the 12 months
ended in June 2013.

This achievement was the result of efforts to scale back less
profitable services, such as the company's Asia-Europe services,
and reduce the use of charter-in vessels from third parties.

Moody's considers that this operations strategy will sustain
profitability and expects Wan Hai's EBITDA margin to remain around
15% for the next 12 -- 18 months.

"The stable outlook is also supported by Wan Hai's robust ability
to generate strong operating cash flow, which has in turn improved
its credit metrics, such that they are now appropriate for a
strong Ba3 level," says Lu, who is also the lead analyst for Wan

Wan Hai is now managing its fleet such that it is generating
positive operating cash flow. It reported unadjusted cash flow
from operations of NT$7.36 billion for the 12 months ended in June
2013, or a 13% increase over NT$6.53 billion for 2012 and an 80%
increase over NT$4.08 billion for 2011.

As a result of its strong cash generation, its other credit
metrics have improved. Debt leverage -- measured by adjusted net
debt/EBITDA -- declined to 3.8x for the 12 months ended in June
2013 from 5.0x in 2011. And adjusted EBITDA/interest coverage
increased to 5.4x from 4.1x.

Moody's expects that the company will maintain net debt/EBITDA of
3.0 -- 3.5x and adjusted EBITDA/interest coverage of around 5x in
the next 12 -- 18 months, matching a strong Ba3 level.

"The risk of a drain on liquidity and an increase in debt leverage
from new vessel investments over the next 12 -- 18 months has also
fallen considerably as the company has completed its fleet
expansion," says Lu. Wan Hai completed delivery of 14 new vessels
in 2Q2013 to rejuvenate its fleet.

Thus, it does not need to implement any capital expenditure for
new build vessel that will pressure its liquidity and debt
leverage over the next 12 -- 18 months. This situation offers an
opportunity for it to further reduce debt leverage as the new
vessels start to produce surplus cash flow due to their high fuel
efficiency when compared with its older vessels.

Wan Hai's Ba3 rating is supported by its leading position in the
intra-Asia liner market, its track record of operating through
industry cycles, its good access to domestic capital and banking
markets, its proactive operational and financial management, and
its sound liquidity position throughout industry cycles.

The company had cash and cash equivalent of NT$20.6 billion at
end-June 2013, well above its short-term debt of NT$4.4 billion.

Wan Hai's senior unsecured bond rating of B1 reflects the risk of
legal subordination as its total amount of secured debt accounted
for approximately 24% of total assets at end-June 2013, and is
likely to stay above 20%.

Upward ratings pressure in the near term is challenged by
unfavorable market conditions, such as continued high bunker costs
and industry overcapacity.

Nevertheless, in the medium term, upward ratings pressure could
emerge if Wan Hai can keep debt leverage low with adjusted net
debt/EBITDA below 3.0x on a sustainable basis.

On the other hand, downward ratings pressure could emerge if the
company's EBITDA margin weakens below 10%; or operating cash flow
turns negative for an extended period; and/or its liquidity
reserve depletes materially. Under such scenarios, adjusted its
net debt/EBITDA could rise above 4.5-5.0x, and its cash balance
could decrease to less than 15% of total assets on a sustained

The principal methodology used in this rating was the Global
Shipping Industry Methodology published in December 2009.

Established in Taiwan in February 1965 as a lumber-transport
company, Wan Hai currently operates a fleet of 78 container
vessels (73 self-owned and 5 chartered) with a service network
which spans Asia, including major ports in Taiwan, Japan, China,
Korea and ASEAN countries. Wan Hai's shares were listed on the
Taiwan Stock Exchange in May 1996.


* Vietnam Relatively Resilient, but Banking Remains a Drag
Vietnam's economy continues to stabilise, and has withstood the
global financial volatility which has hit other regional emerging
economies, says Fitch Ratings. However, medium-term economic
prospects and the sovereign's credit profile remain weighed down
by the slow pace of asset restructuring in the banking sector and
sluggish reforms of state owned enterprises (SOEs).

The macroeconomic stabilisation trend has persisted due to more
effective management of monetary and fiscal policies. This is
apparent through a current account position which is on course to
remaining in a small surplus, and annual inflation which should be
contained within the high single digits. Meanwhile, GDP growth
looks to have bottomed out with Q3 growth at 5.5% year-on-year, up
from around 4.9% in H113.

Moreover, the macro-stabilisation trend has not been thrown off
course by the financial volatility which has gripped other
regional economies. In India and Indonesia, such volatility has
raised currency strains, left corporate and bank balance sheets
somewhat vulnerable, and resulted in policy tightening.

One reason for Vietnam's relative financial stability is the shift
in the current account position to a surplus since 2011. This has
sharply lowered the net external financing requirement and helped
rebuild foreign-currency reserves to around USD27bn by end-May -
around 2.7 months of current external payments.

Another reason is that Vietnam is less dependent on the type of
portfolio flows that have proven rather fickle - amid expectations
of an eventual tapering of the Fed's quantitative easing policies,
and heightened global investor scrutiny of emerging-market

Lastly, a healthy trend in foreign direct investment (FDI) - up
36% year-on-year to USD15bn in the year to September - has
buffered the balance of payments. Vietnam has historically
attracted more FDI (as a percentage of GDP) than its rated peers,
and this has also contributed to a structural transformation of
the export base. That, in turn, has underpinned a robust pace of
export growth since 2012.

"Nonetheless, we remain doubtful as to whether Vietnam's GDP
growth rate can pick up sharply and revert to a 7% level - as was
the case in the last decade. This is due to two important
reasons," Fitch says.

"First, the banking sector remains encumbered by substantial bad
loans. We do not think the current asset restructuring measures -
through the creation of a state-owned asset management company
(VAMC) - will replenish capital sufficiently or swiftly enough to
bring about a healthy pace of credit extension to the productive
sector any time soon.

"Greater foreign participation in the banking sector, as hinted
recently by the prime minister, would lift ownership restrictions.
That could bring in much-needed capital and facilitate a quicker
restructuring of Vietnamese banks. But the details and timing of
any such liberalisation is still uncertain.

"Second, SOE reforms have progressed slowly at best. Recent
statements suggesting a possible speeding-up of their ownership
and governance structures would accord with greater transparency
and market-driven principles, and could be credit positive. But
removal of political protection, and introduction of competition
in this area, is easier said than done.

"The upshot of all this is that macro-stabilisation is evident,
but the prospect of a sharp improvement in growth prospects is not
obvious. Vietnam's banking sector has extended significant credit,
with a private credit/GDP ratio of 95% at end-2012. Moreover, the
highly indebted and largely unreformed SOEs play a very large
strategic role. Thus a protracted pace of asset restructuring and
SOE deleveraging, unless speeded up, will continue to weigh on
economic activity and place large contingent risks on the
sovereign's (B+/Stable) credit profile."


* Upcoming Meetings, Conferences and Seminars

Nov. 1, 2013
      NCBJ/ABI Educational Program
         Atlanta Marriott Marquis, Atlanta, Ga.
            Contact: 1-703-739-0800;

Dec. 2, 2013
      19th Annual Distressed Investing Conference
          The Helmsley Park Lane Hotel, New York, N.Y.
          Contact: 240-629-3300 or

Dec. 5-7, 2013
      Winter Leadership Conference
         Terranea Resort, Rancho Palos Verdes, Calif.
            Contact: 1-703-739-0800;


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

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

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


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

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

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

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

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

                 *** End of Transmission ***