/raid1/www/Hosts/bankrupt/TCRAP_Public/140701.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
Tuesday, July 1, 2014, Vol. 17, No. 128
Headlines
A U S T R A L I A
COMPLETE WHOLESALE: Hall Chadwick Appointed as Administrators
FAIRFAX MEDIA: S&P Revises Outlook on 'BB+' Rating to Stable
NEXBIS PTY: KordaMentha Appointed as Administrators
C H I N A
CHINA PROPERTIES: S&P Revises Outlook to Neg. & Affirms 'B-' CCR
CHINA SOUTH: Moody's Upgrades Corporate Family Rating to B1
FUTURE LAND: Moody's Assigns Ba3 Corporate Family Rating
LDK SOLAR: Provides Update on Provisional Liquidation
ZHONG AN REAL: S&P Lowers CCR to 'B-'; Outlook Stable
I N D I A
APURVA BIOSCIENCES: CRISIL Cuts Rating on INR230MM Loans to 'D'
ARM OVERSEAS: CRISIL Reaffirms 'B' Rating on INR287.5MM Loan
BHANSALI TRADE: CRISIL Assigns 'B+' Rating to INR10MM Loans
C I L TEXTILES: CRISIL Reaffirms 'B' Rating on INR111.8MM Loan
CLASSIC HYUNDAI: CRISIL Assigns 'B' Rating to INR100MM Loans
DAIRY ICE: CRISIL Suspends 'D' Rating on INR100MM Loans
FABRIZIO INDUSTRIES: CRISIL Reaffirms D Rating on INR253.5MM Loan
GO GREEN: CARE Assigns 'B' Rating to INR19.75cr Bank Loan
GREENCRAFT PAPER: CRISIL Assigns 'B+' Rating to INR199.9MM Loan
HEM COTEX: CRISIL Assigns 'B' Rating to INR70MM Cash Credit
JAI SHIV: CRISIL Reaffirms 'B' Rating on INR100MM Loan
JINDAL NICKEL: CRISIL Suspends 'B+' Rating on INR64MM Loan
LEADE LIQUOR: CRISIL Reaffirms 'D' Rating on INR97.5MM Loans
NAVDURGA AGRO: CRISIL Assigns 'B' Rating to INR80MM Loans
PUNJAB MEDICAL: CRISIL Reaffirms 'D' Rating on INR204.2MM Loan
SANJEEVANI ASSOCIATES: CRISIL Puts 'B' Rating on INR120MM Loans
SATYAM COMPUTER: Court to Pronounce Date of Verdict on July 28
SHAHI SHIPPING: CRISIL Assigns 'C' Rating to INR80MM Loans
SHRI KRISHAN: CRISIL Suspends 'B+' Rating on INR95.6MM Loans
SILVER SPRINGS: CRISIL Reaffirms 'D' Rating on INR240.9MM Loans
SITARAM FOOD: CRISIL Reaffirms 'B' Rating on INR62.5MM Loans
SM JDB: CARE Reaffirms 'B+' Rating on INR50.64cr Bank Loans
SPECTRA CHEMICALS: CRISIL Rates INR15MM Cash Credit at 'B'
SRI SATYA: CRISIL Suspends 'D' Rating on INR100MM Loans
SUVARNA SHILPI: CRISIL Assigns 'B+' Rating to INR120MM Loans
SUYOG ANJANI: CARE Assigns 'B+' Rating to INR18cr Bank Loans
THE WATERBASE: CRISIL Assigns 'C' Rating to INR507.3MM Loans
TRACTEL TIRFOR: CRISIL Reaffirms 'B+' Rating on INR78MM Loans
TRIPATHI HOSPITAL: CRISIL Reaffirms 'B' Rating on INR90MM Loan
VIKRAM PVT: CRISIL Suspends 'B' Rating on INR131MM Loans
VIKRANTH PUBLISHERS: CRISIL Suspends 'B' Rating on INR125MM Loans
J A P A N
AOZORA RE LTD: S&P Rates Series 2014-1 Class B Notes 'BB(sf)'
MT. GOX: Karpeles Believes No More Bitcoins Will Be Found
N E W Z E A L A N D
GFNZ GROUP: S&P Affirms & Withdraws 'B-/C' Issuer Credit Ratings
SOLID ENERGY: Confirms 185 Redundancies
S O U T H K O R E A
MAGNACHIP SEMICONDUCTOR: Moody's Cuts Corp. Family Rating to B2
* SOUTH KOREA: Banks' Loan Delinquency Rate Up in May 2014
S R I L A N K A
PEOPLE'S MERCHANT: Fitch Affirms 'BB+lka' Rating; Outlook Stable
X X X X X X X X
* BOND PRICING: For the Week June 23 to June 27, 2014
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A U S T R A L I A
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COMPLETE WHOLESALE: Hall Chadwick Appointed as Administrators
-------------------------------------------------------------
Richard Albarran and Shahin Hussain of Hall Chadwick were
appointed as administrators of Complete Wholesale Tyres Pty Ltd on
June 26, 2014.
A first meeting of the creditors of the Company will be held at
offices of Hall Chadwick, Level 19, 144 Edward St, in Brisbane,
Queensland, on July 8, 2014, at 10:00 a.m.
FAIRFAX MEDIA: S&P Revises Outlook on 'BB+' Rating to Stable
------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised the
outlook on its 'BB+' long-term rating on Fairfax Media Ltd. to
stable from negative. S&P has affirmed the 'BB+' rating on the
company and raised the recovery rating to '3' from '4' on the
company's outstanding senior unsecured notes. At the same time,
S&P has assigned 'BB+' ratings and recovery ratings of '3' on the
company's syndicated bank facilities.
"The outlook revision reflects our view that management has
properly identified the structural challenges facing the media
industry and adopted a credible strategy to stabilize group
earnings over the medium term," Standard & Poor's credit analyst
Graeme Ferguson said. "This strategy emphasizes the development
of complementary media products while pursuing group-wide
efficiencies aimed at reducing its fixed-cost base."
Fairfax's established market position has supported the creation
and development of complementary products. This capability is
evidenced by the strong earnings multiple realized with the Stayz
divestment and the growing prominence of the Domain and Events
businesses in the group's profile. As Fairfax transitions to a
more digitally-orientated business, S&P become increasingly
mindful of the segment's complex and evolving dynamic.
Nevertheless, S&P expects Fairfax will continue to make
incremental progress in identifying and executing new
opportunities.
Fairfax has made meaningful progress in restructuring its high
fixed-cost base over the past two years. Initiatives include the
rationalization of the company's printing plants, distribution
network, and downsizing of the group's employment base through
outsourcing and redundancies. While S&P expects that Fairfax will
continue to meet its cost-out targets, ongoing initiatives to make
its cost base more scalable is an important determinant of the
group's resilience to cyclical and structural forces, and will
remain a key ratings factor over the medium term. Furthermore,
S&P is alert to the material execution risk associated with this
transition.
Fairfax's "weak" business risk profile reflects its exposure to
the ongoing structural erosion of traditional newspaper revenues,
cyclical advertising volumes, and a high fixed-cost base. Partly
tempering these weaknesses is the company's strong market position
from a moderately diversified media portfolio of metropolitan and
regional newspaper mastheads, radio, and digital assets.
Fairfax's "modest" financial risk profile is supportive of the
rating. In S&P's view, the group has adopted an appropriately
defensive financial posture and, over the past two years, has
materially reduced debt through asset divestments and internally
generated cash flows. S&P expects Fairfax's more conservative
balance sheet will provide it with an important buffer should
structural forces intensify beyond S&P's base-case expectations.
S&P has also raised Fairfax's management and governance score to
"satisfactory" from "fair". Management's current strategy
accommodates the uncertain industry outlook and provides some
buffer against an acceleration of structural forces. In
particular, S&P views favorably management's expertise and
experience, and operational effectiveness, including strategies
aimed at simplifying the business, improving operational
efficiency, and diversifying revenue streams. Fairfax has
established a sound, albeit limited, track record in delivering
against these strategies.
The rating outlook on Fairfax is stable. Given Fairfax's focus on
diversifying its revenue streams and managing its cost base, S&P
expects the group's earnings to stabilize over the medium term,
albeit at a structurally lower level. Moreover, S&P expects the
traditional print business to continue to meaningfully contribute
to earnings, which should provide some support as the group
transitions to a more digitally-orientated business. S&P's base
case assumes that Fairfax will maintain conservative leverage
levels until there is evidence of stabilization in the group's
earnings. S&P notes, however, the stable outlook does not
incorporate any event risk associated with transaction activity
that may be prompted by changes to Australia's media ownership
laws.
Mr. Ferguson added: "Downward pressure could occur if the
structural erosion of traditional earning streams does not
stabilize over the medium term or are not replaced by new and
defensible earnings streams, if cost-out initiatives fail to be
realized, or if there is an overall increase in the group's
financial risk appetite such that its debt-to-EBITDA is greater
than 2x."
An upgrade is unlikely in the short term given the level of
uncertainty regarding how the broader industry operating
environment will evolve. However, S&P may consider upward rating
action if Fairfax establishes a track record of sufficiently
offsetting the reduction in print earnings with new and
sustainable earnings streams, while maintaining a prudent
financial approach. In addition, upward rating action would be
contingent upon further evidence that the group had meaningfully
addressed its sizable fixed-cost base.
NEXBIS PTY: KordaMentha Appointed as Administrators
---------------------------------------------------
David John Winterbottom and Cameron Duncan of KordaMentha were
appointed as administrators of Nexbis Pty Limited on June 27,
2014.
A first meeting of the creditors of the Company will be held at
Level 5, Chifley Tower 2 Chifley Square, in Sydney, New South
Wales, on July 4, 2014, at 8:30 a.m.
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C H I N A
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CHINA PROPERTIES: S&P Revises Outlook to Neg. & Affirms 'B-' CCR
----------------------------------------------------------------
Standard & Poor's Ratings Services said it revised the rating
outlook on China-based property developer China Properties Group
Ltd. (CPG) to negative from stable. At the same time, S&P
affirmed its 'B-' long-term corporate credit rating on CPG and the
'B-' issue rating on the company's outstanding senior unsecured
notes. In line with the outlook revision, S&P lowered its long-
term Greater China regional scale rating on CPG and on the notes
to 'cnB-' from 'cnB.'
"We revised the outlook to negative because we anticipate that
CPG's contracted sales are likely to remain sluggish and
insufficient to cover its interest expenses over the next six to
12 months," said Standard & Poor's credit analyst Christopher Yip.
"We believe that CPG could find it more difficult to obtain both
onshore and offshore funding to refinance its large short-term
debt maturities. These factors have significantly weakened the
company's liquidity."
"In our view, CPG's contracted sales are likely to remain weak
over the next year, given increasing competition. The company's
project developments have been materially delayed and its sales
execution is very weak. CPG's contracted sales in 2013 were less
than 15% of our base-case expectation of Chinese renminbi (RMB)
1.6 billion and less than 5% of its full-year budget of
RMB5.5 billion. We anticipate that revenue and EBITDA margins
will decline in 2014, given very poor sales for the past three
years. For 2014, we expect the company's contracted sales to
remain weak at RMB200 million-RMB300 million," S&P added.
CPG could face higher refinancing risk over the next year. With
consistently poor sales performance and tighter funding
conditions, the company may resort to higher-cost funding to fund
construction, refinance about Hong Kong dollar (HK$) 1.9 billion
in maturities due 2014, and pay some HK$900 million in interest
expenses. As of the end of 2013, over one-third of the company's
total borrowings are in trust loans. CPG's average borrowing cost
as a percentage of total debt was over 11% in 2013, and is
unlikely to improve.
S&P believes the financial support from the company's largest
shareholder will support its liquidity to some extent. As of
Dec. 31, 2013, CPG has HK$891 million in shareholder's loans and
HK$324 million in convertible bonds, to which its chairman
Mr. Wong Sai Chung has subscribed. The shareholder loans are
interest free and have no fixed repayment dates.
In S&P's view, the company's business strategy is inconsistent
with its execution capabilities; the company has significantly
delayed project development and sales in the past several years.
In addition, S&P sees increased information risk. Less-than-
timely information from the company may prove critical, given its
current liquidity position. S&P therefore assess CPG's management
and governance as "weak."
S&P could lower the rating if CPG is unable to meet its
operational or financial obligations. This could happen if: (1)
shareholder support for the company weakens; (2) CPG cannot
refinance its short-term debt; (3) the company's property sales
fails to improve; or (4) information disclosure is not timely or
sufficient.
S&P could revise the outlook to stable if CPG improves its
property sales execution and establishes a visible and concrete
refinancing plan for its maturities for the next 12 months.
CHINA SOUTH: Moody's Upgrades Corporate Family Rating to B1
-----------------------------------------------------------
Moody's Investors Service has upgraded China South City Holdings
Limited's (CSC) corporate family rating to B1 from B2 and its
senior unsecured debt rating to B2 from B3.
The rating outlook is stable.
Ratings Rationale
"The rating upgrade reflects CSC's strong sales execution, which
has resulted in a high cash balance and strong interest cover,
therefore positioning the company at the high B level for rated
non-residential Chinese developers," says Jiming Zou, a Moody's
Assistant Vice President and Lead Analyst for CSC.
CSC recorded HKD14.1 billion in contracted sales for the fiscal
year ended March 2014, up 72% from a year ago. Contracted sales
mainly came from its trade and logistics centers located in Xi'an,
Nanchang, Nanning, Zhengzhou and Hefei, with the latter two
sharing high contributions.
The strong sales indicate that the company is developing its track
record of sales outside its home base in Shenzhen.
CSC's strong sales have been supported by the improved
infrastructure and relocation needs of wholesale and trade
markets, as well as investment appetites in those regions in which
it operates.
Moreover, Tencent Holdings Limited's (A3 stable) investment in CSC
opens up new growth opportunities.
Moody's expects CSC to leverage on Tencent's expertise in Internet
services to establish integrated e-commerce services, outlet
services for branded goods, online-to-offline retail businesses,
as well as online payment and warehousing and logistics
arrangements.
These new businesses will help CSC to generate more value-added
revenue, which is evidenced by the achievement of HKD189 million
E-commerce income in FY2013/14.
Based on its current sales momentum and its large gross floor
areas available for sale at new trader centers, Moody's expects
the company to further increase its annual contracted sales to
around HKD16-17 billion in the coming 12-18 months.
CSC's cash balance rose to around HKD11.3 billion as of March
2014, up from HKD6.8 billion as of March 2013. Its cash balance
covers well its short-term debt of around HKD5.8 billion. The
company's issuance of RMB1 billion in medium-term notes in May
2014 further enhanced its liquidity position.
CSC achieved 80% year-on-year revenue growth to HKD13.5 billion in
the fiscal year ending March 2014. As a result, the company
maintained a high adjusted EBITDA/Interest expense cover of 4.3x
in FY2013/14 which is strong for its B1 rating. Moody's expects
the company to maintain interest cover of around 4x in the next
12-18 months.
CSC's B1 corporate family rating reflects its unique business
model, which involves the successful development and operation of
integrated trade centers.
It also considers CSC's ability to access large suburban land
plots at a low cost, as well as the support it receives from local
governments on infrastructure improvement projects and the
favorable terms of these projects. As a result, it has achieved
high gross margins that offer flexibility in pricing in a down-
cycle.
Nevertheless, CSC's rating is constrained by the execution risk
from its fast expansion to new locations and any delay in the
development of infrastructure around its projects. In addition,
volatility in regional economies and the availability of
commercial bank credit could also affect its sales performance.
Another rating constraint is the large funding requirements
associated with the company's large scale of development. As of
March 2014, CSC had 7 million square meters GFA under development.
Its B1 rating also reflects the low level of recurring rental
income from the trade centers that are held as an investment.
Almost all of its rental and management income has been generated
from Shenzhen and accounted for less than 5% of its total revenue.
Moody's expects this situation will continue for the next 2 years.
CSC's bond rating is one notch below its corporate family rating,
reflecting the risk of structural subordination arising from the
company's bank loans at its domestic subsidiaries, which accounted
for nearly 20% of total assets as of March 2014. Moody's expects
this ratio will not materially change in the coming 2 years.
Upward rating pressure could emerge if CSC (1) can demonstrate a
track record of achieving its budget contracted sales and revenue
which come from various regions; (2) exercises prudence in
managing its growth and development scale, without risking its
liquidity position or materially raising its debt leverage; (3)
maintains strong liquidity, such that cash to short-term debt is
above 1.5x; and (4) maintains consistent sound credit metrics -
EBITDA/interest remains above 4.5x -- 5.0x and revenue/debt above
1x.
On the other hand, the ratings could be downgraded, if CSC (1)
shows weakened sales; or (2) undertakes debt-funded aggressive
expansion to the detriment of its financial profile, such that
EBITDA/interest falls below 2.5x; revenue to debt below 0.7x; or
(3) shows a weakened liquidity position, as evidenced by an
unrestricted cash balance which is below short-term debt.
The principal methodology used in this rating was the Global
Homebuilding Industry published in March 2009.
China South City Holdings Limited, listed on the Hong Kong Stock
Exchange, is a developer and operator of large-scale integrated
logistics and trade centers in China. The company operates one
trade center in Shenzhen and is developing new trade centers in
Nanning, Nanchang, Xian, Harbin, Zhengzhou, Hefei and Chongqing.
FUTURE LAND: Moody's Assigns Ba3 Corporate Family Rating
--------------------------------------------------------
Moody's Investors Service has assigned a first time Ba3 corporate
family rating to Future Land Holdings Limited.
Moody's has also assigned a first-time B1 rating to Future Land's
senior unsecured debt. At the same time, Moody's has assigned B1
ratings to Future Land's USD200 million senior unsecured bond due
2018, and RMB1.5 billion senior notes due 2016.
The ratings outlook is stable.
Ratings Rationale
"Future Land's Ba3 corporate family rating reflects its long and
solid track record in Jiangsu Province," says Lina Choi, a Moody's
Vice President and Senior Analyst.
"The rating also recognizes that the company has reached an
operating scale similar to that of developers rated at the low end
of the Ba rating category. It has done so through its four
standard product lines that maximize efficiency and strengthen its
sales execution," adds Choi, who is also the Lead Analyst for
Future Land.
Future Land exhibits a strong market position in the city of
Changzhou in Jiangsu Province, where 38% of its land bank is
located. It has accumulated more than a decade of operating
experience along the Yangtze River Delta, achieving a total of
RMB20.6 billion in contracted sales in 2013.
The company's deep local knowledge and sales experience has
resulted in it offering four types of residential products
catering to different customer needs. The products are categorized
as: FirstHome, SweetHome, DreamHome, and PrestigeHome.
Future Land has adjusted the proportion of its products over the
years to maximize its sales in accordance with property cycles.
"Future Land's strong sales has resulted in credit metrics
comparable to those of companies rated at the low end of the Ba
rating category," says Choi.
The company achieved revenues totaling RMB20.8 billion in 2013,
and EBITDA margins of around 18%. Its fast recognition of revenues
has resulted in a better-than-peer revenue-to-debt ratio of 1.5x.
In addition, its EDITDA/interest of 3.1x is in line with that of
developers rated at the low end of the Ba rating scale.
Moody's expects Future Land's revenue/debt and EBITDA/interest to
measure around 1.25x and 2.5x respectively over the next 12--18
months. Such results will continue to support its Ba3 rating.
"On the other hand Future Land's Ba3 rating is constrained by the
lack of geographic diversification in its portfolio," says Choi.
Some 86% of Future Land's revenues in 2013 was from Changzhou,
Shanghai, Nanjing and Suzhou. Its heavy reliance on revenues from
these four cities exposes it to regional economic volatility.
Nevertheless, in recent years, Future Land has expanded its
operational scope to mix-use properties and to areas outside
Jiangsu Province.
While Future Land's expansion beyond Changzhou improves its
geographic diversification, the company has yet to establish a
sound track record outside these cities.
"Another ratings constraint is its investment holding in a
Mainland listed subsidiary," says Choi.
Future Land's property projects are held by its directly owned
subsidiaries (non-Mainland listed property portfolio), as well as
by its 58.86%-owned B-share listed company, Jiangsu Future Land Co
Ltd (unrated).
Jiangsu Future Land accounts for over 60% of the group's cash
holdings and over 80% of the group's revenues and operating cash
flows. It also holds approximately 50% of the group's total debt.
This structure indicates a constraint on the free flow of cash
from Jiangsu Future Land to the rest of the group; and therefore a
higher liquidity risk faced by the group.
Nonetheless, Future Land's total cash holdings -- held under its
non-Mainland listed property portfolio -- totaled around RMB3.3
billion at 31 December 2013. This amount was more than sufficient
to cover its short-term debt maturing over the next 12 months of
RMB400 million. Moreover, Future Land's cash holdings on a group
basis totaled RMB8.3 billion in the same period, an amount which
was 3.8x its total short-term debt.
As for subordination risk, Future Land's priority debt to total
assets (excluding Jiangsu Future Land) was at approximately 26% in
2013. Moody's expects that this ratio will remain around 20%-25%
over the next two years. Consequently, Future Land's senior
unsecured debt is rated one notch below its corporate family
rating to reflect the subordination risk.
If its priority debt to total assets (excluding Jiangsu Future
Land) exceeds 30%-35%, Moody's may consider further lowering its
bond rating relative to its corporate family rating.
The stable outlook reflects Moody's expectation that the company
can maintain its strong sales results, adequate liquidity
position, and disciplined land acquisitions.
Moody's also expects that Future Land will increase the scale of
its operations related to its non-Mainland listed property
portfolio.
Upward pressure on the ratings is limited in the near future.
Nevertheless, medium-term upgrade ratings pressure may emerge if
Future Land:
(1) Achieves its contracted sales targets over the next 1-2 years;
(2) Shows good financial discipline and expands cautiously, while
maintaining a sound liquidity profile and strong credit metrics.
Its cash holdings, for instance, should cover the short-term debt
held by its non-Mainland listed property portfolio;
(3) Improves the balance of its revenues and profits between its
non-Mainland listed property portfolio and Jiangsu Future Land;
and/or
(4) Improves its credit metrics such that its EBITDA/interest
coverage (excluding minority interests) exceeds 3.5x-4.0x.
On the other hand the ratings could be downgraded if Future Land:
(1) Demonstrates a significant fall in sales;
(2) Materially increases its investments in projects funded by
debt;
(3) Shows evidence of a material weakening in balance sheet
liquidity; in particular, if its cash/short-term debt coverage
falls below 1.0x; and/or
(4) Demonstrates worsened credit metrics; in particular, if
EBITDA/interest falls below 2.0x-2.5x, and/or revenue/adjusted
debt falls below 80%.
The principal methodology used in this rating was the Global
Homebuilding Industry published in March 2009.
Future Land Development Holdings Limited was founded in 1996 by
its Chairman, Mr. Wang Zhenhua. Mr. Wang has been in the property
development business in China since 1993. The company became
listed on the Hong Kong Stock Exchange in November 2012.
The company's 58.86% owned subsidiary, Jiangsu Future Land Co Ltd
is a B-share company listed on the Shanghai Stock Exchange since
1997.
Future Land has more than 50 projects under development. Its land
bank totaled approximately 13.85 million sqm of gross floor area
at Dec. 31, 2013.
LDK SOLAR: Provides Update on Provisional Liquidation
-----------------------------------------------------
LDK Solar Co., Ltd., in provisional liquidation and its Joint
Provisional Liquidators, Tammy Fu -- tammy.fu@zolfocooper.ky --
and Eleanor Fisher -- eleanor.fisher@zolfocooper.ky -- both of
Zolfo Cooper (Cayman) Limited, provided an update on the Company's
on-going provisional liquidation as sanctioned by the Grand Court
of the Cayman Islands on Feb. 27, 2014.
With respect to the announcement by the Company on March 28, 2014,
of its receipt of the various signature pages to the restructuring
support agreement relating to the 10% Senior Notes due 2014, the
restructuring support agreement relating to the convertible
preferred shares of an affiliate of the Company and involving
claims against the Company, and the commitment letter from Heng
Rui Xin Energy (HK) Co., Limited, relating to the interim
financing by the Company up to an aggregate principal amount of
US$14 million, the Cayman Court sanctioned each of them at a
hearing on April 2, 2014.
Initially, following the Sanction Hearing, the JPLs encountered
delays in obtaining the full amount of the Interim Financing. To
date, however, the JPLs have received an aggregate of US$10.8
million in Interim Financing through a combination of HRX advances
and internally generated funds from the Company.
The Interim Financing received to date is sufficient to enable the
restructuring to continue to be progressed, although further
funding is required to complete the restructuring. The JPLs are
working with their advisors and the Company's management to pursue
a number of potential options to raise the funding required to
meet the agreed commitments under the Senior Notes RSA and the
Preferred Obligations RSA, as well as the costs of the offshore
restructuring process and the forecasted offshore working capital
requirements of the Company.
The JPLs, supported by their advisors and the Company, continue to
consider and progress discussions with a number of parties in
respect of the Exit Financing and remain hopeful that commitments
for the Exit Financing can be secured in the near term. The JPLs
will seek binding commitments for the Exit Financing prior to
applying to the Cayman Court for orders convening meetings of
creditors to ensure that the offshore restructuring can be
successfully completed. Any delays in raising the Exit Financing
will impact the timetable for the completion of the offshore
restructuring.
The Company said a further update will be provided once the Exit
Financing discussions have been concluded and the JPLs are in a
position to proceed with applying to the Cayman Court for orders
convening meetings of creditors in relation to the offshore
restructuring.
About LDK Solar
LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi-
Tech Industrial Park, Xinyu City, Jiangxi Province, People's
Republic of China, is a vertically integrated manufacturer of
photovoltaic products, including high-quality and low-cost
polysilicon, solar wafers, cells, modules, systems, power
projects and solutions.
LDK Solar was incorporated in the Cayman Islands on May 1, 2006,
by LDK New Energy, a British Virgin Islands company wholly owned
by Xiaofeng Peng, LDK's founder, chairman and chief executive
officer, to acquire all of the equity interests in Jiangxi LDK
Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin
Industrial Limited.
LDK Solar Co disclosed a net loss of $1.05 billion on $862.88
million of net sales for the year ended Dec. 31, 2012, as compared
with a net loss of $608.95 million on $2.15 billion of net sales
for the year ended Dec. 31, 2011.
KPMG, in Hong Kong, China, issued a "going concern" qualification
on the consolidated financial statements for the year ended
Dec. 31, 2012. The independent auditors noted that the Group has
a net working capital deficit and a deficit in total equity as of
Dec. 31, 2012, and is restricted from incurring additional
indebtedness as it has not met a financial covenant ratio as
defined in the indenture governing the RMB-denominated US$-settled
senior notes. These conditions raise substantial doubt about the
Group's ability to continue as a going concern.
ZHONG AN REAL: S&P Lowers CCR to 'B-'; Outlook Stable
-----------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on Zhong An Real Estate Ltd. to
'B-' from 'B'. The outlook is stable. S&P also lowered its long-
term Greater China regional scale rating on the company to 'cnB'
from 'cnB+'.
"We lowered the rating to reflect our view that the company's cash
flows are likely to weaken and become more volatile over the next
12 months due to worsening operating conditions," said Standard &
Poor's credit analyst Dennis Lee. "The company's ability to pay
back its maturing debt in 2015 will therefore largely depend on
its refinancing ability, which is uncertain given the tight credit
conditions in China. However, we believe the company does not
face immediate liquidity risk because its cash balance as of
Dec. 31, 2013, can cover debt maturing in 2014."
S&P believes operating conditions in the Yangtze Delta Region,
particularly in Zhong An's biggest market of Hangzhou, have become
more challenging. S&P expects overall supply in Hangzhou to
increase in the second half of 2014, which could increase price
competition. Zhong An's market position and cash flow will likely
weaken under such conditions.
S&P sees execution risk in Zhong An's transition strategy, which
focuses on the mass market. In S&P's view, the company's ability
to deliver projects in a timely manner on a larger operating scale
is untested. The challenging market conditions also add to the
execution risk. S&P expects the company's contract sales to
decline to about RMB3.2 billion in 2014 and 2015, from
RMB3.6 billion in 2013.
S&P expects Zhong An's profit margin to decline in 2014 due to:
(1) increasing revenue contribution from lower margin end-user
products; (2) intensifying competition; (3) higher selling,
general, and administrative expenses to support the company's
transition strategy. The lower profit margin, together with
declining contract sales, will weaken Zhong An's credit profile.
The company's sizable low-cost land bank and established market
position in Hangzhou will support its profit margin. However, S&P
believes these factors are not enough to reverse the overall
declining trend in profitability. In S&P's base case, it
forecasts Zhong An's EBITDA margin to hover at 21%-24% in 2014-
2015, compared with 24.2% in 2013. S&P also expects the
company's profitability to become more volatile as it executes its
business transition.
S&P expects Zhong An's capital requirements to remain high over
the next 12 months, mainly to support construction. Land
acquisitions are likely to be limited, given that Zhong An's land
reserves should be sufficient for development for four to five
years.
In S&P's base case, Zhong An's contract sales will not entirely
offset its capital requirement, raising its debt level in 2014 and
2015. The company's enlarged revenue will not be enough to offset
the negative impact of declining profitability and increasing
debt. S&P expects the ratio of debt to EBITDA to therefore
increase to 11x-12x in 2014 and 2015, commensurate with a "highly
leveraged" financial risk profile. Zhong An's liquidity is
"weak," as defined in our criteria.
"The stable outlook reflects our expectation that Zhong An will
not face immediate liquidity risk in 2014 and the company will
proactively manage its debt-maturity profile for 2015," said
Mr. Lee. S&P anticipates the company's leverage to remain high as
contract sales are likely to weaken in 2014 and 2015.
S&P could lower the rating if Zhong An's cash inflows are
insufficient to meet its cash outflows, particularly its debt
obligations. This could happen if Zhong An's sales are materially
lower than S&P's expectation of RMB3.2 billion in 2014. S&P could
also lower the rating if the company's refinancing risk heightens
or it has difficulty in securing funding to repay debt in 2015.
S&P may raise the rating if Zhong An can weather the challenging
market conditions while improving its liquidity and leverage.
This could happen if Zhong An's contract sales meet or exceed
S&P's expectation in 2014, the company's gross margins are stable,
and it can extend its debt maturity profile. EBITDA interest
coverage of more than 2.0x and debt-to-EBITDA ratio less than 6.0x
on a sustained basis could indicate such improvement.
=========
I N D I A
=========
APURVA BIOSCIENCES: CRISIL Cuts Rating on INR230MM Loans to 'D'
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Apurva Biosciences Pvt Ltd to 'CRISIL D' from 'CRISIL B-
/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Proposed Long Term 70.5 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B-/Stable')
Term Loan 149.5 CRISIL D (Downgraded from
'CRISIL B-/Stable')
The rating downgrade reflects instances of delays by ABPL in
servicing its term debt obligations caused by the company's weak
liquidity. Its weak liquidity is driven by delay in commencement
of ABPL's operations.
The rating continues to reflect ABPL's weak financial risk
profile, which is constrained mainly by the company's large on-
going debt-funded capital expenditure project. The rating also
factors in ABPL's exposure to risks related to the start-up phase
of its operations, susceptibility to intense industry competition,
and expected small scale of operation. These rating weaknesses are
partially offset by the benefits that ABPL derives from the
extensive experience of its promoter in the pharmaceutical generic
drugs industry.
ABPL, incorporated in 2010, is promoted by Mr. Sambhaji R Varne.
It is setting up a pharmaceutical formulations facility at Amrapur
near Manor (Maharashtra).
ARM OVERSEAS: CRISIL Reaffirms 'B' Rating on INR287.5MM Loan
------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of ARM Overseas
Pvt Ltd continues to reflect ARM's below-average financial risk
profile, marked by a highly leveraged capital structure, its
working-capital-intensive nature and modest scale of operations in
the highly fragmented rice industry, and the susceptibility of its
operating margin to volatility in rice prices. These rating
weaknesses are partially offset by the extensive industry
experience of ARM's promoters.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 287.5 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that ARM will continue to benefit over the medium
term from its promoters' extensive industry experience. However,
the company's financial risk profile is expected to remain weak
over this period because of its large working capital
requirements. The outlook may be revised to 'Positive' if ARM
registers significant improvement in its capital structure and
scale of operations, along with improvement in its margins.
Conversely, the outlook may be revised to 'Negative' if the
company's working capital cycle deteriorates or it undertakes a
large debt-funded capital expenditure (capex) programme.
Update
For 2013-14 (refers to financial year, April 1 to March 31), ARM's
turnover is estimated at INR2.45 billion, higher than earlier
expectations. With the company's plans to increase capacities over
the medium term, CRISIL expects it to maintain its turnover growth
at of 20 to 25 per cent; however, the growth will remain
susceptible to crop supply because of the vagaries of the monsoon,
to the economic scenario, and to government policies. In 2013-14,
ARM's operating profitability margin is expected to have been in
line with CRISIL's estimate of 1.3 per cent. Over the medium term,
CRISIL believes that the margin will remain low at 1.5 to 1.9 per
cent.
In 2013-14, ARM's operations have remained working capital
intensive with high gross current assets (GCA). As on March 31,
2014, the GCA is estimated to be around 96 days against 86 days a
year earlier. Over the medium term, CRISIL expects the GCA to
remain at 90 to 100 days, while the company's overall working
capital requirements would increase with the increase in its scale
of operations.
As on March 31, 2014, ARM's gearing decreased year-on-year to
around 6.4 times because of capital infusion of INR10 million and
moderate working-capital-related debt due to moderation in sales
growth. However, in 2014-15, with large debt-funded capex plans of
setting up another mill, the gearing is expected to rise to around
7.0 times. Over the medium term, the gearing is estimated at 7.0
to 7.5 times on account of incremental debt to service its working
capital requirements as against modest accruals. Over this period,
the company's financial risk profile is expected to be
constrained, with a modest net worth, average debt protection
metrics, and stretched liquidity.
ARM's profit after tax (PAT) and sales are estimated at INR8
million and INR2.45 billion, respectively, for 2013-14; the
company had reported a PAT of INR3.6 million on sales of INR2.7
billion for 2012-13.
ARM, incorporated in 2008, mills and processes basmati rice, which
it sells to exporters in India. It is managed by Mr. Anand Goel
and his family.
BHANSALI TRADE: CRISIL Assigns 'B+' Rating to INR10MM Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Bhansali Trade Impex.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 0.5 CRISIL B+/Stable
Bank Loan Facility
Cash Credit 9.5 CRISIL B+/Stable
Letter of Credit 60.0 CRISIL A4
The ratings reflect BTI's modest scale of operations and working
capital intensive nature of operations. These rating weaknesses
are partially offset by extensive experience of BTI's partners in
the metal trading industry and financial support from partners.
Outlook: Stable
CRISIL believes that BTI will maintain its business risk profile
over the medium term, backed by its partners' extensive industry
experience. The outlook may be revised to 'Positive' if BTI
demonstrates higher-than-expected growth in revenues, while
maintaining its profitability margins and capital structure.
Conversely, the outlook may be revised to 'Negative' in case of
lower-than-expected growth in revenues and margins or if there is
elongation of the working capital cycle, thereby impacting the
financial risk profile of the firm.
BTI, formed in 2003, is a partnership firm of Mr. Suresh Bhansali,
his brother Mr. Naresh Bhansali and their cousin Mr. Chandanmal
Bhansali. It is engaged in the business of trading of ferrous and
non-ferrous metals such as steel and nickel scrap as well as
stainless steel pipes, tubes and coils. BTI's main office is
located in Mumbai.
BTI reported a profit after tax (PAT) of INR1.2 million on net
sales of INR202.5 million For 2012-13 (refers to financial year,
April 1 to March 31); the firm reported a PAT of INR1.3 million on
net sales of INR209.7 million for 2011-12.
C I L TEXTILES: CRISIL Reaffirms 'B' Rating on INR111.8MM Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of C I L Textiles Pvt Ltd
continue to reflect CIL's weak financial risk profile, marked by
high gearing, and weak debt protection measures and expected to
remain constrained by large capital expenditure (capex) plans, and
exposure to risks related to geographical concentration in revenue
profile and small scale of operations. These rating weaknesses are
partially offset by the benefits that CIL derives from the
longstanding experience of its directors in the textile industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Export Packing Credit 45 CRISIL A4 (Reaffirmed)
Foreign Bill Discounting 100 CRISIL A4 (Reaffirmed)
Foreign Bill Purchase 30 CRISIL A4 (Reaffirmed)
Letter of Credit 5 CRISIL A4 (Reaffirmed)
Term Loan 111.8 CRISIL B/Stable
(Reaffirmed)
Outlook: Stable
CRISIL believes that CIL will continue to benefit over the medium
term because of its directors' experience in the textile business.
The company's financial risk profile is expected to remain
constrained by large debt-funded capital expenditure (capex) and
weak debt protection metrics. The outlook may be revised to
'Positive' if CIL's capital structure improves or if the company
enhances its scale of operations, while improving its operating
margin. Conversely, the outlook may be revised to 'Negative' in
case the company's financial risk profile weakens further, most
likely because of deterioration of operating margin or significant
increase in working capital requirements.
Update
CIL reported a turnover of around INR450 million estimated for
2013-14 (refers to financial year, April 1 to March 31) as against
INR 400 million in the previous year. The revenues have improved,
driven by increase in utilization of its plant capacities. The
company's operating profitability is also estimated to improve to
about 7 per cent in 2013-14 as against 3 per cent in the previous
year marked by improved realization of its textile products. Over
the medium term, the operating profitability is expected to remain
under similar levels.
CIL's working capital requirements are expected to be moderate,
with gross current assets estimated at around 150 days; driven by
improvement in debtor cycle to about 30 days as against 90 days in
the previous year and moderate inventory levels of around 75 days.
The company has a stretched liquidity position. The company is
estimated to generate annual cash accruals of around INR10 -15
million against which it has term debt obligations of INR15
million in 2014-15 . CIL does not have any major capex plan for
the medium term. However its financial risk profile remains below
average, with a modest net worth of INR35 million estimated as on
Mar 31, 2014 and high gearing of above 4 times, estimated as on
March 31, 2014. Moreover, the company's debt-protection metrics is
estimated to be average with its interest coverage and net cash
accruals to debt ratios estimated to be at 1.2 times and 0.05
times respectively for 2013-14.
CIL is a manufacturer and exporter of textile products, including
grey/ processed fabrics, stretched frames, and textile made-ups
such as tarpaulin and horse rugs, manufactured in the width range
of 26 inches to 144 inches. CIL exports more than 95 per cent of
its products to US, Europe, Australia, South Africa, China and the
Gulf countries.
CIL reported a net loss of INR2.8 million on net sales of
INR399 million for 2012-13 (refers to financial year, April 1 to
March 31), against a profit after tax (PAT) of INR2.8 million on
net sales of INR481 million for 2011-12.
CLASSIC HYUNDAI: CRISIL Assigns 'B' Rating to INR100MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Classic Hyundai (CH).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 30 CRISIL B/Stable
Cash Credit 50 CRISIL B/Stable
Inventory Funding
Facility 20 CRISIL B/Stable
The rating reflects CH's modest scale of operations in the
intensely competitive automobile dealership industry and its
below-average financial risk profile, marked by weak debt
protection metrics. These rating weaknesses are partially offset
by the extensive experience of the firm's promoters in the
automobile dealership industry and its established relationship
with its principal.
Outlook: Stable
CRISIL believes that CH will continue to benefit over the medium
term from its promoters' extensive industry experience and its
established relationship with its principal. The outlook may be
revised to 'Positive' if the firm reports a sustainable increase
in its revenue and profitability, thereby strengthening its
financial risk profile. Conversely, the outlook may be revised to
'Negative' if it generates lower-than-expected cash accruals or
its working capital management deteriorates or it undertakes a
large debt-funded capital expenditure programme, resulting in
weakening of its financial risk profile.
Set up in 2011, CH is an authorised dealer of Hyundai Motor India
Ltd (rated 'CRISIL A1+/Stable') for passenger vehicles. CH is
promoted by Mr. CP Abdullah and his friends.
For 2012-13 (refers to financial year, April 1 to March 31), CH
reported net loss of INR10.7 million on net sales of INR485.3
million as against net loss of INR18.2 million on net sales of
INR296.6 million for 2011-12.
DAIRY ICE: CRISIL Suspends 'D' Rating on INR100MM Loans
-------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Dairy Ice Cream and Frozen Foods Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 20 CRISIL D Suspended
Proposed Long Term
Bank Loan Facility 80 CRISIL D Suspended
The suspension of ratings is on account of non-cooperation by DIFF
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, DIFF is yet to
provide adequate information to enable CRISIL to assess DIFF's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
DIFF was set up in 1980 by Mr. Shyam Jumani and his family in
Hyderabad. The company was later acquired and merged with Ripples
in 2002. Ripples, is a firm set up in 1999 and owned by Mr. Ajay
Kumar Vaddi. DIFF was a sick unit when it was acquired by Mr. Ajay
Kumar Vaddi in 2002. DIFF primarily manufactures ice-creams under
four brands, namely, Jumani, Halka, Exotica and Diffys. Jumani is
the flagship brand of DIFF. The company has also won a gold medal
for its Exotica brand in the 'Great Indian Ice-cream contest'
conducted by Indian Dairy Association. DIFF's manufacturing
capacity of 4500 litres per day (ltd) was recently expanded to
about 15,000 ltd, on account of the company's new manufacturing
unit at Bhongir in Hyderabad.
FABRIZIO INDUSTRIES: CRISIL Reaffirms D Rating on INR253.5MM Loan
-----------------------------------------------------------------
CRISIL's rating on the bank loan facilities of Fabrizio Industries
Pvt Ltd continues to reflect instances of delay by the company in
servicing its debt; the delays have been caused by the company's
weak liquidity due to its cash losses.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 54.5 CRISIL D (Reaffirmed)
Term Loan 199 CRISIL D (Reaffirmed)
FIPL also has a weak financial risk profile marked by its negative
net worth, high debt levels and below-average debt protection
metrics. However, FIPL continues to benefit from the favourable
demand prospects for its product, and its exclusive technology
tie-up with GEFIT SpA, Italy.
Incorporated in 2009 in Mapusa (Goa), FIPL is promoted by Mr.
Desai. The company manufactures security closures for spirit
bottles.
GO GREEN: CARE Assigns 'B' Rating to INR19.75cr Bank Loan
---------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of The Go
Green Buildtech Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 19.75 CARE B Assigned
Rating Rationale
The rating assigned to the bank facilities of The Go Green
Buildtech Private Limited is constrained by the residual project
implementation risk, leveraged capital structure, presence in a
competitive industry and dependency on the real estate sector.
The rating, however, favourably takes into account the experience
of the promoters in the end-user industry, ie, real estate.
Going forward, the ability of GBP to successfully implement the
project within the envisaged time & cost estimates and achievement
of the estimated revenue and profitability shall be the key rating
sensitivities.
The Go Green Buildtech Private Limited was incorporated on
December 26, 2012. GBP is setting up a manufacturing unit of civil
construction materials such as fly ash brick and autoclaved
aerated concrete (AAC) block at Dadri, Uttar-Pradesh, with an
installed capacity to manufacture 5 crore fly ash brick per annum
and 150,000 cubic metre AAC block per annum. The main raw material
for manufacturing the products will be fly ash and the same will
be procured from NTPC's power plant at Dadri, Uttar-Pradesh, and
other raw material will be procured from the local market. GBP is
a part of the "Velveleen Group" which has interests in the
manufacturing of velvet and fabric, real estate infrastructure
development and education. The group associates of GBP are UC Jain
Foundation Trust (rated CARE B) and The Rishabh Winpro Private
Limited (rated CARE B).
The total cost of the project is INR31.40 crore which is being
funded in debt/equity mix of 1.34:1. The company has spent
INR12.54 crore on the project till April 29, 2014, and the
commercial production of fly ash brick is expected to commence
from June 2014.
GREENCRAFT PAPER: CRISIL Assigns 'B+' Rating to INR199.9MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Greencraft Paper Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 199.9 CRISIL B+/Stable
The rating reflects GPPL's working capital intensive operations
and limited scale of operations in highly fragmented information
technology (IT) hardware trading business. These rating weaknesses
are partially offset by the extensive industry experience of
GPPL's promoter, and above-average financial risk profile.
Outlook: Stable
CRISIL believes that GPPL will continue to benefit over the medium
term from its promoter's extensive industry experience in IT
hardware trading. However, GPPL's liquidity is expected to remain
stretched due to its working-capital-intensive operations and
tender-based nature of business. The outlook may be revised to
'Positive' if GPPL's liquidity improves; most likely due to
prudent working capital management or fresh capital infusion by
the promoter. Conversely, the outlook may be revised to 'Negative'
if the GPPL's liquidity deteriorates further because of an
increase in working capital requirements or if GPPL reports
significantly lower-than-expected cash accruals.
GPPL was incorporated in 2011 in New Delhi by Ms. Zeba Urfi. The
company supplies office automation equipment - projectors, access
controllers, networking equipment, computers and 3-dimensional
screens - primarily to government departments, including Ministry
of Defence (MoD) and Ministry of Agriculture.
HEM COTEX: CRISIL Assigns 'B' Rating to INR70MM Cash Credit
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of Hem Cotex.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 70 CRISIL B/Stable
The rating reflects HC's initial and nascent stage of operations
in the highly competitive cotton industry, and its expected weak
financial risk profile, marked by average debt protection metrics
and high gearing. These rating weaknesses are partially offset by
the extensive industry experience of the firm's promoters, and the
proximity of its unit to the cotton-growing belt in Gujarat.
Outlook: Stable
CRISIL believes that HC will continue to benefit over the medium
term from its promoters' extensive experience in the cotton
industry. The outlook may be revised to 'Positive' if the firm
scales up its operations and achieves higher-than-expected
accruals, or if its capital structure improves through capital
infusion. Conversely, the outlook may be revised to 'Negative' if
HC's financial risk profile deteriorates, most likely because of
increased working capital borrowings or large debt-funded capital
expenditure, or if its operations are negatively impacted by any
change in government policies.
Established in June 2013, HC has set up a ginning and pressing
unit with a capacity of producing 250 bales per day in Rajkot
district (Gujarat). The plant has commenced operations from April
2014. Its day-to-day operations will be managed by Mr. Dineshbhai
Parsottambhai Davda, who has a decade's experience in the cotton
ginning and pressing industry.
JAI SHIV: CRISIL Reaffirms 'B' Rating on INR100MM Loan
------------------------------------------------------
CRISIL's rating on the bank facilities of Jai Shiv Foods continues
to reflect JSF's weak financial risk profile marked by a highly
leveraged capital structure and weak debt protection metrics, its
small scale of operations in the intensely competitive rice
industry, and exposure to high customer concentration risk. These
rating weaknesses are partially offset by the benefits that JSF
derives from its proprietor's extensive experience in the basmati
rice industry and his financial support.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Warehouse Receipts 100 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that JSF will continue to benefit over the medium
term from its proprietor's extensive industry experience. The
outlook may be revised to 'Positive' in case of significant
improvement in JSF's capital structure, most likely driven by
capital infusion by the promoter, and significant improvement in
its scale of operations and operating profitability. Conversely,
the outlook may be revised to 'Negative' if JSF registers decline
in profitability and pressure on revenue, or if large working
capital requirements lead to deterioration in its capital
structure.
Update
JSF is likely to report operating income of INR852.4 million for
2013-14 (refers to financial year, April 1 to March 31), against
INR581.1 million in 2012-13. The revenue registered compound
annual growth rate of 54.45 per cent from 2009-10 to 2013-14,
driven by the firm's established relationship with customers.
JSF's profitability remained stagnant, in the range of 1.5 to 2.0
per cent, over the period on account of the trading nature of its
business and the intense competition in the fragmented rice
industry.
JSF's financial risk profile remains weak, marked by estimated
interest coverage ratio of 1.07 times in 2013-14 and high total
outside liabilities to tangible net worth (TOLTNW) ratio of 8.1
times as on March 31, 2014. The firm had an interest coverage
ratio of 1.13 times for 2012-13 and a TOLTNW ratio of 5.81 times
as on March 31, 2013. Its liquidity remains weak, marked by 100
per cent utilisation of its working capital limits of INR160
million over the 12 months ended March 31, 2014, and low estimated
cash accruals of INR1 million for 2013-14. CRISIL believes that
JSF's financial risk profile, particularly its liquidity, will
remain weak over the medium term, driven by low operating margin
resulting in low accretion to reserves.
JSF was set up as a proprietorship firm by Mr. Shiv Charan in
2009. It trades in rice and paddy. The firm is based in Narela
(New Delhi).
JSF reported a book profit of INR0.89 million on net sales of
INR581.1 million for 2012-13, against a book profit of INR0.8
million on net sales of INR212.9 million for 2011-12.
JINDAL NICKEL: CRISIL Suspends 'B+' Rating on INR64MM Loan
----------------------------------------------------------
CRISIL has suspended its rating on the bank facility of
Jindal Nickel and Alloys Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 64 CRISIL B+/Stable Suspended
The suspension of ratings is on account of non-cooperation by JNAL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, JNAL is yet to
provide adequate information to enable CRISIL to assess JNAL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
JNAL was incorporated in 1999, promoted by its three current
directors, Mr. Ashwani Jindal, Mr. Mangat Rai, and Mr. Sandeep
Gupta. The company trades in stainless steel scrap and ferrous
metals such as nickel, aluminium, and magnesium.
LEADE LIQUOR: CRISIL Reaffirms 'D' Rating on INR97.5MM Loans
------------------------------------------------------------
CRISIL's ratings on the bank facilities of Leade Liquor
Manufacturing Pvt Ltd continue to reflect instances of delay by
LLMPL in servicing its debt; the delays have been caused by the
company's weak liquidity driven by depressed cash accruals because
of low profitability.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL D (Reaffirmed)
Proposed Long Term
Bank Loan Facility 25 CRISIL D (Reaffirmed)
Term Loan 67.5 CRISIL D (Reaffirmed)
LLMPL also has a below-average financial risk profile marked by
modest net worth and weak debt protection metrics, and is exposed
to customer concentration risk. However, the company benefits from
its promoters' extensive experience in the Indian-made foreign
liquor (IMFL) bottling business and its tie-up with Pernod Ricard
India Pvt Ltd.
LLMPL was promoted in 2010-11 (refers to financial year, April 1
to March 31) by Mr. Sumit Kumar Jain and his family members to set
up an IMFL bottling plant in Hooghly (West Bengal). The plant
commenced commercial operations in December 2012. LLMPL has
bottling capacity of around 100,000 cases per month.
NAVDURGA AGRO: CRISIL Assigns 'B' Rating to INR80MM Loans
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Navdurga Agro Industries.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 20 CRISIL B/Stable
The rating reflects NAI's modest scale of operations in the highly
competitive agricultural commodities industry, and its weak
financial risk profile marked by average gearing and below-average
debt protection metrics. These rating weaknesses are partially
offset by the extensive industry experience of NAI's promoter in
the agri-commodity industry.
Outlook: Stable
CRISIL believes that NAI will benefit over the medium term from
its promoter's industry experience. The outlook may be revised to
'Positive' if the firm generates large cash accruals or if its
capital structure improves significantly by equity infusion.
Conversely, the outlook may be revised to 'Negative' if its
accruals are lower than expectation because of reduced order flow
or profitability, or if its financial risk profile deteriorates,
most likely because of stretch in working capital cycle or
substantial debt-funded capital expenditure.
Set up in 2009, NAI is a proprietorship firm promoted by Unjha
(Gujarat) based, Mrs. Dakshaben Patel. NAI processes melon seed
kernels and trades in cattle feed.
For 2013-14 (refers to financial year, April 1 to March 31), NAI
reported, on a provisional basis, a book profit of INR2 million on
net sales of INR256.3 million, against a book profit of
INR1.7 million on net sales of INR213.6 million for 2012-13.
PUNJAB MEDICAL: CRISIL Reaffirms 'D' Rating on INR204.2MM Loan
--------------------------------------------------------------
CRISIL's rating on the bank loan facilities of Punjab Medical
Foundation Charitable Trust (PMFCT) continues to reflect instances
of delay by PMFCT in servicing its term loan; the delays have been
caused by the trust's weak liquidity due to delay in
implementation of its on-going capital expenditure.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 204.2 CRISIL D (Reaffirmed)
PMFCT is also exposed to project implementation risk and
geographical concentration in revenue profile. The trust, however,
has an established track record and moderate financial risk
profile.
PMFCT was set up in 1990 by Mr. Balbir Singh, who is one of the
nine trustees. The trust has been operating a hospital named
Kidney Hospital & Lifeline Medical Institutions (KHLM) since 1988-
89 (refers to financial year, April 1 to March 31) and a pharmacy
named K H Medicos in Jalandhar (Punjab) since 2006. KHLM is a
multi-specialty hospital with 110 beds. The trust is currently
setting up new departments for lever dialysis, orthopaedics and
oncology.
SANJEEVANI ASSOCIATES: CRISIL Puts 'B' Rating on INR120MM Loans
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Sanjeevani Associates.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 70 CRISIL B/Stable
The rating reflects Sanjeevani's below-average financial risk
profile, marked by a modest net worth, high gearing, and sub-par
debt protection metrics. The rating also factors in its modest
scale of operations with high geographical and end-user industry
concentration in its revenue profile. These rating weaknesses are
partially offset by the funding support that the firm receives
from its proprietor, and the benefits it derives from its
association with the Kale group of companies.
Outlook: Stable
CRISIL believes that Sanjeevani will continue to benefit over the
medium term from its proprietor's funding support and its
association with the Kale group of companies. The outlook may be
revised to 'Positive' in case of significantly better-than-
expected cash accruals, primarily driven by increasing sales to
third parties along with efficient working capital management.
Conversely, the outlook may be revised to 'Negative' if the firm's
cash accruals are lower than expected, or its working capital
requirements are higher than expected, or it provides any
unanticipated funding support to its group entities, adversely
impacting its liquidity.
Sanjeevani has been trading in various types of building material
such as cement, flooring, and bricks, since 2013. It was set up as
proprietorship firm in 2009 and is owned and managed by Mr. Sunil
D Madane. The firm is a part of the Baramati (Maharashtra)-based
Kale group, which is primarily engaged in real estate development.
Sanjeevani's clientele comprises of group entities and external
customers.
SATYAM COMPUTER: Court to Pronounce Date of Verdict on July 28
--------------------------------------------------------------
The Times of India reports that a special court trying the case of
multi-crore rupee accounting fraud in erstwhile Satyam Computer
Services Limited said it will pronounce the date of verdict on
July 28.
Special Judge BVLN Chakravarthi of XXI court of additional chief
metropolitan magistrate (ACMM) posted the matter to July 28 for
giving the date for pronouncement of judgment in the case, CBI's
special public srosecutor K Venu Madhav said, the report relates.
According to the report, the CBI's counsel said the court also
gave a direction that all the ten accused in the case, including
prime accused Satyam Computers founder and former chairman B
Ramalinga Raju, should appear before it on that date.
All the ten accused attended the court proceedings on June 26.
However, media persons were not allowed inside the court hall, the
report notes.
Touted as India's biggest accounting fraud, the scam came to light
on January 7, 2009, after Ramalinga Raju allegedly confessed to
manipulating his company's account books and inflating profits
over many years to the tune of several crores of rupees, the
report recounts.
TOI relates that Raju was arrested by the crime investigation
department of Andhra Pradesh Police two days later along with his
brother.
In February that year, the report recalls, CBI took over the
investigation and filed three chargesheets (on April 7, 2009,
November 24, 2009 and January 7, 2010), which were later clubbed
into one.
According to the report, Raju and others were charged with
offences ranging from cheating, criminal conspiracy, forgery,
breach of trust under relevant sections of IPC by way of inflating
invoices and incomes, account falsification, faking fixed
deposits, besides allegedly falsifying returns through violation
of various I-T laws.
During the trial, the report relates, the CBI alleged that the
scam caused a loss of INR14,000 crore to Satyam shareholders,
while the defence countered the charges saying the accused were
not responsible for the fraud and all the documents filed by the
central agency relating to the case were fabricated and not
according to law.
Raju later retracted his confession statement and contended that
all charges levelled by the CBI were false, the report notes.
Satyam Computer Services Ltd afterwards merged with Tech Mahindra.
Besides Raju, his brother and Satyam's former MD B Rama Raju, ex-
CFO Vadlamani Srinivas, former PwC auditors Subramani
Gopalakrishnan and T Srinivas, Raju's another brother B
Suryanarayana Raju, former employees G Ramakrishna, D Venkatpathi
Raju and Ch Srisailam, and Satyam's former internal chief auditor
V S Prabhakar Gupta are the others accused in the case, TOI
discloses.
At present, all the 10 accused, against whom the enforcement
directorate also filed a chargesheet in October last year under
the Prevention of Money Laundering Act, are out on bail, the
report adds.
Headquartered in Secunderabad, India, Mahindra Satyam, formerly
known as Satyam Computer Services Limited, is an information,
communications and technology (ICT) company providing business
consulting, information technology and communication services.
The Company is powered by a pool of information technology (IT)
and consulting professionals across enterprise solutions, client
relationship management, business intelligence, business process
quality, operations management, engineering solutions, digital
convergence, product lifecycle management, and infrastructure
management services. The Company is a part of the Mahindra Group,
a global industrial conglomerate in India.
SHAHI SHIPPING: CRISIL Assigns 'C' Rating to INR80MM Loans
----------------------------------------------------------
CRISIL has assigned its 'CRISIL C/CRISIL A4' ratings to the bank
facilities of Shahi Shipping Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 20 CRISIL C
Bank Guarantee 20 CRISIL A4
Cash Credit 60 CRISIL C
The ratings reflect instances of delay by SSL in servicing its
debt (not rated by CRISIL); the delays have been caused by the
company's weak liquidity, driven by its low cash accruals
vis-a -vis scheduled debt repayments and stretched receivables.
The ratings also factor in SSL's high customer concentration, and
working-capital-intensive operations. These rating weaknesses are
partially offset by the promoter's extensive experience in the
logistics industry and their funding support.
SSL was established as a partnership firm in 1985 promoted by Mr S
K Shahi In 1990, the firm was reconstituted as a company, renamed
as Shahi Shipping Transport Pvt Ltd,. Thereafter, the company was
renamed as SKS Logistics Ltd, and subsequently as SSL, when it was
reconstituted as a public limited company in 2013.
SSL is engaged in the shipping industry, and provides
transportation through barges. The company had a fleet of 22
vessels as on March 31, 2013, comprising mini bulk carriers,
general cargo carriers, chemical carriers, petroleum carriers,
water supply barges, tugs and launches.
SSL reported a net loss of INR15.7 million on net sales of
INR214.5 million for 2012-13 (refers to financial year, April 1 to
March 31), as against a profit after tax of INR9.3 million on net
sales of INR228.3 million for 2011-12.
SHRI KRISHAN: CRISIL Suspends 'B+' Rating on INR95.6MM Loans
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Shri Krishan Rice and General Mills.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 70 CRISIL B+/Stable Suspended
Proposed Long Term
Bank Loan Facility 20 CRISIL B+/Stable Suspended
Term Loan 5.6 CRISIL B+/Stable Suspended
The suspension of ratings is on account of non-cooperation by
SKRGM with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SKRGM is yet to
provide adequate information to enable CRISIL to assess SKRGM's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
SKRGM; a proprietorship firm set up by Mr. Naresh Kumar Sorout in
1996, processes basmati and non-basmati rice under its own brand,
Rishta and sells its produce in the domestic as well as export
market.
SILVER SPRINGS: CRISIL Reaffirms 'D' Rating on INR240.9MM Loans
---------------------------------------------------------------
CRISIL's rating on the bank facilities of Silver Springs Pleasure
Resorts Pvt Ltd continues to reflect instances of delay by SSPRPL
in servicing its term debt; the delays have been caused by the
company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Lease Rental 92.4 CRISIL D (Reaffirmed)
Discounting Loan
Long Term Loan 88.5 CRISIL D (Reaffirmed)
Overdraft Facility 60 CRISIL D (Reaffirmed)
SSPRPL also has a below-average financial risk profile marked by
moderate gearing and weak debt protection metrics, and is
susceptible to geographical concentration risk. The company,
however, benefits from its promoters' extensive industry
experience.
Update
SSPRPL has been continuously delaying its term debt obligations.
The delays are on account of the company's weak liquidity, with
annual cash accruals inadequate to meet debt obligations. The
company generates cash accruals of around INR14 million annually
vis-a-vis debt obligations of around INR35 million per annum.
SSPRPL's cash accruals are expected to be inadequate to meet its
debt obligations over the medium term; hence, CRISIL believes that
SSPRPL's liquidity will remain weak over the medium term.
Established in 1994, SSPRPL operates a five-star hotel and a
casino at Varca beach in Goa. The company was demerged from group
entity Zuri Hospitality Pvt Ltd with effect from April 1, 2012.
Its day-to-day operations are managed by directors Mr. Aditya
Kamani and Mr. Abishek Kamani, supported by a professional
management team.
SITARAM FOOD: CRISIL Reaffirms 'B' Rating on INR62.5MM Loans
------------------------------------------------------------
CRISIL's ratings on the bank facilities of Sitaram Food Products
Pvt Ltd continue to reflect its modest scale of operations in the
highly fragmented rice industry and its below-average financial
risk profile marked by modest net worth, high gearing and weak
debt-protection metrics. The ratings also factor in the company's
susceptibility to volatility in raw material prices. These rating
weaknesses are partially offset by its promoters' extensive
entrepreneurial experience.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.5 CRISIL A4 (Reaffirmed)
Cash Credit 20 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 12.5 CRISIL B/Stable (Reaffirmed)
Term Loan 30 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SFP will continue to benefit over the medium
term from its promoters' extensive entrepreneurial experience. The
outlook may be revised to 'Positive' in case of substantial
increase in the company's scale of operations, improvement in its
working capital management, or infusion of capital by its
promoters leading to a significantly improved financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
SFP's accruals are lower than expected, its working capital cycle
is stretched, or if it undertakes a large debt-funded capital
expenditure programme, weakening its financial risk profile,
particularly its liquidity.
SFP, incorporated in 2011, is engaged in milling and processing of
paddy into rice. Its rice mill is in Burdwan (West Bengal).
SM JDB: CARE Reaffirms 'B+' Rating on INR50.64cr Bank Loans
-----------------------------------------------------------
CARE reaffirms ratings assigned to bank facilities of SM JDB
Estate Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 50.64 CARE B+ Reaffirmed
Rating Rationale
The rating is constrained by the promoter's lack of experience in
the hospitality business, project implementation risk involved
with the setting up of the hotel, high competition from
established & upcoming hotels in Guwahati and inherent cyclicality
associated with the hotel industry. However, the rating derives
strength from the long & established track record of the group,
locational advantages in sync with the need of business travellers
and in terms of favorable government policies.
The ability to complete the proposed project as per the revised
schedule without any further cost & time overrun and operate the
hotel at the envisaged occupancy & tariff rate would be the key
rating sensitivity.
SM JDB Estate Pvt Ltd was incorporated in October 2012 by the SM
group and JDB group of Guwahati for implementing a 129-room 4-star
hotel at Guwahati, Assam at a cost of INR88.8 crore. The project
is proposed to be funded at a debt equity ratio of 1.76x and
expected to be operational from July 2015. Financial closure of
the debt has already been achieved. Till May 31, 2014, the company
has spent INR28.38 crore on the project, which was met through
equity of INR13.25 crore, term-debt of INR14.12 crore and
creditors for the supply of capital items of INR1.01 crore.
SPECTRA CHEMICALS: CRISIL Rates INR15MM Cash Credit at 'B'
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Spectra Chemicals (SC, part of the Spectra
Group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 15 CRISIL B/Stable
Letter of Credit 66 CRISIL A4
The ratings reflect Spectra Group's exposure to intense
competition in the fragmented chemical trading industry,
susceptibility of its operating margins to volatility in prices of
traded goods and exchange rates. These rating weaknesses are
partially offset by the extensive experience of the proprietor in
the chemical trading business and its established customer
relationships.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of SC and Seaco Enterprises (SE). This is
because these entities, together referred to as the Spectra group,
are in the same line of business and have common management.
Outlook: Stable
CRISIL believes that Spectra group will maintain its business risk
profile over the medium term backed by the proprietors' extensive
industry experience and established relation with suppliers and
customers. The outlook may be revised to 'Positive' if the group
reports significant increase in its revenues and profitability,
resulting in substantial increase in cash accruals, or receives
any large equity infusion leading to improvement in its capital
structure. Conversely, the outlook may be revised to 'Negative' in
case of lower than expected revenues and profitability, or
lengthening of its working capital cycle or any significant
withdrawals by the proprietor leading to deterioration in its
liquidity.
SC, setup in 1978 is a proprietorship concern of Mr. Mrugesh
Gandhi. SE is a partnership firm of Mr. Gandhi and his son Mr.
Sanket Gandhi. Both the entities are based out of Mumbai and are
engaged in trading of chemical products.
SC, on a standalone basis, reported a profit after tax (PAT) of
INR6.6 million on net sales of INR141.9 million for 2013-14
(refers to financial year, April 1 to March 31); the firm reported
a loss of INR5.6 million on net sales of INR119.1 million for
2012-13.
SRI SATYA: CRISIL Suspends 'D' Rating on INR100MM Loans
-------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Sri Satya Sai Balagam Reddy Oils Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL D Suspended
Proposed Long Term
Bank Loan Facility 42.3 CRISIL D Suspended
Term Loan 17.7 CRISIL D Suspended
The suspension of rating is on account of non-cooperation by SSSB
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SSSB is yet to
provide adequate information to enable CRISIL to assess SSSB's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
Incorporated in 2011, SSSB extracts crude rice bran oil and de-
oiled rice bran. The company is promoted by Mr. U V S Narayana,
who has an experience of about three years' in the edible oil
industry. SSSB's manufacturing facility in Rajahmundry (Andhra
Pradesh) has a capacity of 200 tonnes per day and was acquired by
the current management in January 2011.
SUVARNA SHILPI: CRISIL Assigns 'B+' Rating to INR120MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Suvarna Shilpi Jewellers Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 72.5 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 47.5 CRISIL B+/Stable
The rating reflects SSJPL's weak financial risk profile, marked by
a high gearing and weak debt protection metrics; the rating also
factors in the company's modest scale of operations in the
intensely competitive jewellery industry, and geographical
concentration in its revenue profile. These rating weaknesses are
partially offset by the extensive industry experience of SSJPL's
promoters.
Outlook: Stable
CRISIL believes that SSJPL will continue to benefit over the
medium term from its promoters' experience in the jewellery
industry. The outlook may be revised to 'Positive' in case of
geographical diversification in the company's revenue profile
along with improvement in its financial risk profile, most likely
due to better-than-expected cash accruals or equity infusion.
Conversely, the outlook may be revised to 'Negative' if SSJPL's
operating margin or operating income declines, or if its financial
risk profile deteriorates further, most likely due to a stretch in
its working capital cycle or larger-than-expected debt-funded
capital expenditure.
Incorporated in 2005, SSJPL is promoted by Ahmedabad (Gujarat)-
based Mr. Arvindkmar Soni and his son Mr. Alpesh Soni. The company
is engaged in manufacturing, retailing, and wholesaling of
jeweller made of gold, silver, diamond, and other precious stones.
It has a single showroom at Ahmedabad.
For 2012-13 (refers to financial year, April 1 to March 31), SSJPL
reported profit after tax (PAT) of INR2.9 million on net sales of
INR821 million, against a PAT of INR2.2 million on net sales of
INR785 million for 2011-12.
SUYOG ANJANI: CARE Assigns 'B+' Rating to INR18cr Bank Loans
------------------------------------------------------------
CARE assigns 'CARE B+' rating to bank facilities of Suyog Anjani
Avishkar Associates.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 18.00 CARE B+ Assigned
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at
present. The rating may undergo a change in case of the withdrawal
of the capital or the unsecured loan brought in by the partners in
addition to the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Suyog Anjani
Avishkar Associates (SAA) is constrained on account of the
execution risks for the residential project under implementation
as well as significant marketing risks associated given the
increasing competition within the real estate industry in Pune,
geographical concentration risks with operations being
confined to Pune region and the susceptibility of real estate
markets to economic cycles.
Besides these risks, the rating also takes into account the firm's
constitution as a partnership concern. The rating, however,
favorably factors in the promoter's experience in the real estate
development,, modest sales velocity leading to satisfactory
visibility of customer advances and financial closure achieved for
the project.
The firm's ability to complete the ongoing project without any
time and cost overrun and achieve sales of the project
space in a timely manner at envisaged prices are the key rating
sensitivities.
Established in the year 2011, SAA is a Pune based joint venture of
Suyog Group, Anjani Group, and Avishkar Associate. The groups have
undertaken real estate projects predominantly in Pune region and
have presence in real estate business since 1998 through various
companies and partnership/proprietorship entities.
The promoters have established SAA with an objective to undertake
a real estate project in Pune region. SAA is currently developing
integrated residential project called "Sai Avishkar" at Dhayari,
Pune, Maharashtra with total saleable area of 1.66 lakh square
feet (lsf). The firm started project construction in February 2012
and firm plans to offer possession by September 2017.
The firm will develop the project in two phases. The firm launched
Phase I for sale on March 2012, which comprises of 5 building
(wing A, B, C, F, and G) of 4 storied with total 80 units for
sale. Out of total 80 flats, the firm has already sold 35 flats
till March 31, 2014. The firm is yet to launch the Phase II (wing
D, E, H, I, and J) of the project, which will be launched in
November-2014. The Phase II will also have 5 buildings with total
80 flats.
The estimated total cost of the project (Phase I and Phase II) is
INR 49.50 crore which is proposed to be funded by the partner's
contribution of INR18.50 crore, sanctioned bank debt of INR18
crore and remaining INR13 crore through customer advances. Out of
the total cost of INR 49.50 crore, the firm has expensed INR24.52
crore till March 31, 2014 which is almost 50% of the total project
cost. This is funded by customer advances of INR9.00 crore,
partner's contribution of INR10.47 crore and balance by debt of
INR4.82 crore.
THE WATERBASE: CRISIL Assigns 'C' Rating to INR507.3MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL C' rating to the bank facilities
of The Waterbase Ltd. The rating reflects the non-repayment by
TWL of its debt (not rated by CRISIL) due to a dispute, which is
currently under litigation.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 152 CRISIL C
Letter of Credit 355.3 CRISIL C
The rating also reflects TWL's exposure to risks inherent in the
seafoods industry. However, TWL benefits from its promoters'
extensive experience in the shrimp feed industry and its above-
average financial risk profile, marked by healthy debt protection
metrics.
Incorporated in 1992, TWL has a shrimp- feed manufacturing unit
and a shrimp processing unit. The company's operations are
managed by Mr. Ashok Nanjappa.
For 2013-14 (refers to financial year, April 1 to March 31), TWL
reported a profit after tax (PAT) of INR 135.6 million on total
income of INR 2.28 billion; the company reported a PAT of INR 60.1
million on total income of INR1.57 billion for 2012-13.
TRACTEL TIRFOR: CRISIL Reaffirms 'B+' Rating on INR78MM Loans
-------------------------------------------------------------
CRISIL's rating on bank facilities of Tractel Tirfor India Private
Limited continues to reflect TTIPL's stretched liquidity profile
on account of working capital intensive operations and modest
scale of operations in the material handling systems segment.
These rating weaknesses are partially offset by the benefits that
TTIPL derives from its promoter's business experience and its
established relationship with its customers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 57 CRISIL A4 (Reaffirmed)
Cash Credit 70 CRISIL B+/Stable (Reaffirmed)
Term Loan 8 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that TTIPL will continue to benefit over the
medium term from its established relationship with its customers
and its promoter's extensive experience in the material handling
systems business. The outlook may be revised to 'Positive' if the
firm significantly improves its working capital requirements
resulting in improvement in liquidity profile or in case of
significant increase in scale and profitability. Conversely, the
outlook may be revised to 'Negative' if TTIPL faces pressure on
its revenues and profitability, or if its working capital cycle
deteriorates further, or if it undertakes a large, debt-funded
capital expenditure programme over the medium term.
Update
TTIPL reported estimated net sales of INR285 million for 2013-14
(refers to financial year, April 1 to March 31), registering a
year-on-year decline of ~30 per cent which was below CRISIL
expectation. The decline in sales is on account of delay in
payments from its customers, resulting in stretch in working
capital requirements and as a result the company could not execute
further orders due to paucity of funds. TTIPL's operating margins
are estimated to remain at around 8 per cent for 2013-14, in line
with CRISIL's expectations. Gross Current Asset (GCA) days are
estimated at 220 days as on March 31, 2014 as against CRISIL's
expectations of 166 days on account of increase in debtor days due
to delay in payments from TTIPL's customers. Liquidity profile of
the company continues to remain stretched as depicted by highly
utilized bank limits due to working capital intensive operations.
TTIPL's Cash Credit (CC) bank limits were highly utilized
averaging at around 93 per cent over the last 12 months through
May 2014. CRISIL believes TTIPL's liquidity profile will remain
stretched over the medium term. TTIPL's financial risk profile
remains moderate on account of moderate gearing with estimated
gearing of less than 1 times as on
March 31, 2014 and average debt protection metrics with interest
coverage and net cash accruals to total debt ratio estimated at
around less than 2 times and 0.10 times respectively for 2013-14.
CRISIL believes that the financial risk profile will remain
moderate over the medium term.
TTIPL reported a profit after tax (PAT) of INR12.20 million on net
sales of INR371.1 million for 2012-13 (refers to financial year,
April 1 to March 31), against a PAT of INR8.1 million on net sales
of INR326.70 million for 2011-12.
Incorporated in 1964, Tractel Tirfor India Private Limited (TTIPL)
is promoted by Mr. K C Chakravarty. TTIPL is engaged in
manufacturing of material handling equipment's. Product range
consist of Pulling and Lifting machines, Overhead cranes, chain
pully blocks, Ratchet liver hoists, Electric wire rope hoists, ,
Rack and Pinion hoists etc., which have major applications in
infrastructure companies and other industrial use.
TRIPATHI HOSPITAL: CRISIL Reaffirms 'B' Rating on INR90MM Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Tripathi Hospital
Private Limited continue to reflect THPL's small scale of
operations and risks related to implementation of its ongoing
multi-specialty hospital project. The rating also factors in risks
attached to successful stabilisation of operations and hence,
achievement of revenues and cash accruals. These rating weaknesses
are partially offset by the benefits that the company derives from
the extensive industry experience of the promoters.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 90 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL expects THPL to maintain its stable business risk profile
over the medium term, backed by its promoter's extensive industry
experience and established market position. The outlook may be
revised to 'Positive' if the company significantly expands its
scale of operations aided by timely implementation and
stabilisation of the proposed hospital along with an improvement
in operating profitability, resulting in higher than expected cash
accruals and hence, improvement in the financial risk profile.
Conversely, the outlook may be revised to 'Negative' if the
company's scale of operations remain stagnant and financial and
liquidity risk profile deteriorate due to time and cost overruns
in the proposed project or larger than expected debt funded
capital expenditure.
Incorporated in November 2001, THPL is engaged in the business of
providing medical services in the fields of Orthopedics and
Gynecology/Obstetrics. The hospital first established as a
partnership firm in 2000 was later converted into a private
company in 2001. The husband and wife duo of Mr. B.K. Tripathi and
Mrs. Nidhi Tripathi actively manage the hospital. The company is
in the process of setting up a 100 bedded hospital in Noida.
VIKRAM PVT: CRISIL Suspends 'B' Rating on INR131MM Loans
--------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Vikram Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 Suspended
Cash Credit 118 CRISIL B/Stable Suspended
Proposed Long Term
Bank Loan Facility 13 CRISIL B/Stable Suspended
The suspension of ratings is on account of non-cooperation by VPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, VPL is yet to
provide adequate information to enable CRISIL to assess VPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
VPL was incorporated in 2000. The company manufactures sponge iron
at its unit in Lahunipara (Orissa). It also engages in
opportunistic trading in steel products, such as structural and
torque steel. VPL's day-to-day operations are managed by Mr.
Dibyaranjan Behera.
VIKRANTH PUBLISHERS: CRISIL Suspends 'B' Rating on INR125MM Loans
-----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Vikranth Publishers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable Suspended
Proposed Long Term
Bank Loan Facility 75 CRISIL B/Stable Suspended
The suspension of ratings is on account of non-cooperation by VP
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, VP is yet to
provide adequate information to enable CRISIL to assess VP's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'
VP, a partnership firm, was set up in 2005 by Mr. G Narayana Rao
and Mr. G Chakravarthy in Vijayawada (Andhra Pradesh). It operates
in the book publishing business; it mainly publishes school text
books.
=========
J A P A N
=========
AOZORA RE LTD: S&P Rates Series 2014-1 Class B Notes 'BB(sf)'
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its
'BB(sf)' rating to the Series 2014-1 Class B notes issued by
Aozora Re Ltd. The notes provide indemnity coverage to Sompo
Japan Insurance Inc. and NIPPONKOA Insurance Co. Ltd. (the ceding
insurers) for losses from typhoons (including windstorm and flood)
on a per-occurrence basis. The Class A notes were not issued so
the preliminary 'BB(sf)' rating has been withdrawn. This is the
first catastrophe bond rated by Standard & Poor's providing
indemnity coverage for losses from typhoon in Japan. The risk
interest spread of 2.00% is the lowest to date of a natural-
catastrophe (nat-cat) bond rated by Standard & Poor's that it
assigned a rating below investment grade.
The rating is based on the lowest of the nat-cat risk factor
('BB'), the rating on the asset (JPMorgan JPY Cash Liquidity Fund)
in the collateral account ('AAAm'), and the rating on the ceding
insurers.
"When determining the nat-cat risk factor, we base our analysis on
the probability of attachment. This transaction has a variable
reset feature that allows the ceding insurer to adjust the modeled
expected loss within a range of 0.52% to 1.04% at each reset date.
The probability of attachment based on the maximum expected loss
is 1.15% and is the probability of attachment used to determine
the nat-cat risk factor. This spread of 11 basis points between
the maximum expected loss (1.04%) and probability of attachment
(1.15%) is based on the initial modeled results and may change at
reset. However, we expect any changes to be within two or three
basis points. The initial probabilities of attachment and
exhaustion are 0.57% and 0.49%, respectively," S&P said.
In adjusting the modeled probability of attachment S&P considered
the transactions' strengths, concerns, and mitigating factors. As
a result of certain concerns, the adjustment made to the
probability of attachment was greater than the 20% indicative
stress level set forth in S&P's criteria.
RATINGS LIST
New Rating
Aozora Re Ltd.
Series 2014-1 Notes
Class B BB(sf)
MT. GOX: Karpeles Believes No More Bitcoins Will Be Found
---------------------------------------------------------
Takashi Mochizuki and Eleanor Warnock at The Wall Street Journal
reports that scared, frustrated and angry -- that is how
Mark Karpeles, head of defunct bitcoin exchange Mt. Gox, said he
felt when he realized in February that the exchange had lost
nearly half a billion dollars' worth of the internet currency.
He said he has spent many sleepless nights since then. "I was
always worried: 'What if all the bitcoins got stolen?'" the 29-
year-old Frenchman said in an interview, his first since a
Feb. 28 news conference to announce the exchange's bankruptcy
filing. The Tokyo-based exchange blamed hacking attacks for the
loss of 850,000 bitcoins, mostly those of customers. Since then
Mr. Karpeles has rediscovered 200,000 bitcoins, but he doesn't
believe more will be found.
"As the company head, my mission was to protect customers and
employees," the Journal quotes Mr. Karpeles as saying. "I'm deeply
sorry. I'm frustrated with myself."
The Journal recalls that a court-appointed trustee for Mt. Gox in
Japan said in April that Mt. Gox would be liquidated. And on June
18, a Texas bankruptcy court approved Mt. Gox's application for
bankruptcy protection of its U.S. assets. Mr. Karpeles is still
the CEO of Mt. Gox but he has transferred all of the company's
assets to the trustee, the Journal notes.
From his 33rd-floor apartment in Tokyo's upscale Meguro
neighborhood, Mr. Karpeles has been busy trying to keep alive his
other business, web-services company Tibanne, which was the de
facto operator of Mt. Gox, according to the Journal. The report
relates that Mr. Karpeles said he plans to auction off domain
names as one way of keeping that business alive. Among the domain
names Tibanne owns are bitcoins.com and akb.com, short for AKB48,
a popular Japanese pop group. He didn't say whether mtgox.com
would be for sale.
The Journal relates that Mr. Karpeles said the trustee would
monitor the sale of the domain names, and any proceeds after
Tibanne has been funded through the end of the year would go to
Mt. Gox creditors. He said he wants to find a new head for
Tibanne -- named for his orange-and-white cat, which stayed close
during the interview, the Journal relates. He would then stay on
as an engineer to help develop the company's services.
According to the Journal, Mr. Karpeles said the failure to find
experienced executives to help him deal with day-to-day operations
was a critical mistake. Instead of focusing on the company's
technology, he often spent hours each day in meetings with lawyers
and bankers, the report relays. "The weakest point of my company
was management," said Mr. Karpeles, who was the sole executive of
the company. "I failed to lay out appropriate corporate
structures."
The Journal relates that Mr. Karpeles said he would prefer for
someone to take over the exchange, which the court has allowed for
if a suitable buyer is found, and that there are several groups
interested.
A police investigation is still under way in Japan concerning the
missing bitcoins, the report notes. According to the report,
Mr. Karpeles said that in addition to hacking attacks that took
advantage of a system weakness called transaction malleability,
there were physical break-ins at the company's offices and that at
least one former employee pilfered electronic data. A Metropolitan
Police Department spokesman said on June 27 that he couldn't say
anything about the investigation.
"If anyone wants to start a bitcoin exchange, I would say, 'Be
sure to have 24-hour security guards,'" Mr. Karpeles, as cited by
the Journal, said.
The Journal adds that Mr. Karpeles said the exchange's fast growth
had been too much for him. In just three months after he bought
Mt. Gox from founder Jed McCaleb in March 2011, the 3,000 accounts
surged by a factor of 20, he said. Mr. Karpeles said he tried to
hire experienced managers but profit in the early days wasn't
enough.
Mr. Karpeles said that since Mt. Gox fell apart he has returned to
the habits of his early days in Tokyo, including eating less-than-
$2 instant noodles. He continues to work after arriving home at
night, trying to find customers for a new Tibanne service, adds
the Journal.
About Mt. Gox
Bitcoin exchange MtGox Co., Ltd., filed a petition under Chapter
15 of the U.S. Bankruptcy Code on March 9, 2014, days after the
company sought bankruptcy protection in Japan. The bankruptcy in
Japan came after the bitcoin exchange lost 850,000 bitcoins valued
at about $475 million "disappeared."
The Japanese bitcoin exchange that halted trading in February
2014. It filed for bankruptcy protection in the U.S. to prevent
customers from targeting the cash it holds in U.S. bank accounts.
The Chapter 15 case is In re MtGox Co., Ltd., Case No. 14-31229
(Bankr. N.D. Tex.). The Chapter 15 Petitioner is Robert Marie
Mark Karpeles, the company's chief executive officer. Mr.
Karpeles is represented by John E. Mitchell, Esq., and David
William Parham, Esq., at Baker & Mcckenzie LLP, in Dallas, Texas.
The company said it has estimated assets of $10 million to $50
million and debts of $50 million to $100 million.
====================
N E W Z E A L A N D
====================
GFNZ GROUP: S&P Affirms & Withdraws 'B-/C' Issuer Credit Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'B-/C' issuer
credit ratings on GFNZ Group Ltd. and GFNZ Group's wholly owned
subsidiary, Quest Insurance Group Ltd., have been affirmed and
subsequently withdrawn at the request of GFNZ Group. At the time
of withdrawal, the outlooks on both entities were positive.
S&P notes that GFNZ Group Ltd. reported a loss of NZ$4.2 million
for the year ended March 31, 2014, driven by a review of its
impairment provisions on its portfolio of legacy receivables. The
company completed a NZ$6 million rights issue in May 2014,
offsetting the financial impact of the recent loss.
SOLID ENERGY: Confirms 185 Redundancies
---------------------------------------
Sarah-Jane O'Connor at The Press reports that Solid Energy has
confirmed 185 employees and contractors on the West Coast will be
made redundant in a restructuring.
The Press relates that the state-owned company announced the
proposal to staff at its Stockton coal mine on June 6, and on June
27 confirmed it would go ahead.
According to the report, Solid Energy chief executive Dan Clifford
said changes had been made following consultation. Two fewer
positions than proposed are being made redundant, but 102 mining
jobs will still be lost, the report relates. A further 33
management, technical, support services and administrative jobs
have been cut, as well as 50 contractors.
The Press relates that a process to determine who will stay on at
the mine is expected to be completed by the end of July.
Engineering, Printing and Manufacturing Union (EPMU) West Coast
organiser Garth Elliott said it was a "sad day for our miners,"
The Press relates.
"We knew it was coming, but it's still a heavy blow," the report
quotes Mr. Elliott as saying.
The Press adds that miners would now be able to apply for
voluntary redundancy.
"There still aren't a lot of jobs out there on the West Coast and
when that money runs out, things will get tough," Mr. Elliott, as
cited by The Press, said.
The EPMU believed mismanagement by Solid Energy's previous board
had led to the present struggles, The Press says. "We hold the
Government accountable for Solid Energy's current position, and
for not addressing the high dollar or creating jobs in our region.
Miners are now paying the price for the politicians' inaction."
As reported in the Troubled Company Reporter-Asia Pacific on
May 22, 2013, The New Zealand Herald said stricken state owned
coal miner Solid Energy's future appears bleak according to a
recently completed report on the company, Prime Minister John Key
had indicated. According to the Herald, Mr. Key said corporate
advisers KordaMentha had just completed their report on the
company which is on the brink of collapse after being crippled by
low coal prices and almost NZ$400 million in debts.
Solid Energy New Zealand Ltd is New Zealand's largest coal mining
company and an investor in research and commercialisation of
sustainable forms of energy that use coal, coal seam gas, biomass,
biodiesel and solar. Solid Energy's core mining business
includes hard coking coal, primarily for export to steel mills
throughout Asia, and thermal coal for the Huntly power station
and other domestic customers in the steel, dairy and cement
industries.
====================
S O U T H K O R E A
====================
MAGNACHIP SEMICONDUCTOR: Moody's Cuts Corp. Family Rating to B2
---------------------------------------------------------------
Moody's Investors Service has downgraded MagnaChip Semiconductor
Corporation's corporate family rating as well as the senior
unsecured rating on its $225 million, 6.625% notes due 2021, to B2
from B1.
The ratings remain on review for further downgrade.
Ratings Rationale
"The rating action reflects Moody's concern over MagnaChip's
financial controls, as well as ongoing delays in its filing of
financial results," says Yoshio Takahashi, a Moody's Assistant
Vice President and Analyst.
On 26 June, MagnaChip filed a Form 8-K to the US Securities and
Exchange Commission (SEC) and said that it had received on 20 June
a notice of default from the trustee of its $225 million notes due
to its failure to meet the reporting requirements under the
relevant covenants of the notes.
Specifically, the company did not file its financial statements
for the full year of 2013 or first quarter of 2014 to the SEC
within the time periods specified in the relevant covenants of the
notes.
The failure to meet the reporting requirements was caused by the
need to restate its financial statements for each of the first,
second and third quarters of 2013 and 2012 and for the years ended
December 2012 and December 2011, as it had incorrectly recognized
revenues on certain transactions with distributors.
The company stated in its filing to the SEC dated 12 May that
while substantial progress had been made, the restatements and the
audit of the financial statements for the year ended December 2013
will take several more months to complete.
In Moody's view, this move raises concerns regarding the extent to
which MagnaChip has control over its financial management as well
as the magnitude of the restatement, although its ongoing effort
to strengthen its financial controls could help improve the
quality of its financial reporting over the medium term.
MagnaChip has appointed a new chief accounting officer and interim
chief financial officer to oversee the financial restatement,
together with the company's external professionals, and to
evaluate its accounting policy and internal controls.
With respect to the bonds, Moody's understands that MagnaChip has,
and will continue to, make interest payments in full and on time.
Following receipt of the notice of default, MagnaChip has a 60-day
grace period from 20 June 2014 to comply with reporting
requirements. Should the company fail to comply during this
period, an event of default could be declared on 19 August 2014.
MagnaChip can then elect, as sole remedy for its failure to comply
with its reporting requirements, to pay additional interest of
0.25% per annum on the notes for up to 180 days from August 19
2014. Failure to comply with reporting requirements, prior to the
expiration of the 180-day period, could result in acceleration of
the notes on 14 February 2015.
It is Moody's expectation that MagnaChip will file its financial
statements to the SEC ahead of the February deadline and thus
acceleration will be avoided.
Moody's also expects that MagnaChip will continue to make timely
interest payments on the notes, including additional interest
during the 180-day remedy period (estimated at $14.9 million per
annum, plus $0.3 million additional interest).
At end-2013, MagnaChip had no other debt facilities apart from its
$225 million, senior unsecured 6.625% notes maturing in 2021. The
company held cash and cash equivalents of approximately $154
million at the same date.
Moody's also notes that its reported EBITDA for the 12-month
period ended September 2013 was $155 million, based on the
company's previous financial statements, but which also can no
longer be relied on, in light of the restatements.
However, while continued growth in demand for mobile products, as
well as MagnaChip's stable customer relationships, should continue
to support its earnings, it is difficult to verify such an
assumption if the substantial delay in its financial reporting
continues.
Moody's review will focus on the impact of the restatements, the
assessment of MagnaChip's up-to-date business and financial
performance, as well as the company's plan to strengthen its
governance and internal controls.
The principal methodology used in this rating was the Global
Semiconductor Industry Methodology published in December 2012.
MagnaChip is a Korean-based designer and manufacturer of analog
and mixed-signal semiconductor products, mainly for high-volume
consumer applications, such as TVs, PCs, mobile phones, and
tablets.
* SOUTH KOREA: Banks' Loan Delinquency Rate Up in May 2014
----------------------------------------------------------
Yonhap News reports that the delinquency rate on bank loans gained
a tad higher in May as the banks added more fresh soured debts but
cleared off less, the financial watchdog said June 30.
According to the report, the Financial Supervisory Service (FSS)
said the average delinquency rate of bank loans stood at
0.98 percent at the end of May, up 0.07 percentage point from a
month earlier.
Banks added fresh bad loans worth 1.9 trillion won (US$1.87
billion) during May, while they cleared off 900 billion won of
such debt over the cited period, the report discloses.
According to Yonhap, the delinquency rates for both corporate and
household loans rose. The overdue rate for corporate loans gained
0.1 percentage point to 1.17 percent over the cited period, with
household loans rising 0.05 percentage point to 0.74 percent.
Yonhap says outstanding corporate loans rose by 2.9 trillion won
on-month in May to 179.8 trillion won, while those extended to
households climbed by 2 trillion won to 484.1 trillion won last
month, according to the watchdog.
"The delinquency rate remained relatively stable compared to the
same period last year," the FSS, as cited by Yonhap, said. "The
FSS will continue to monitor the bank loans, considering such
negative factors as the sluggish domestic economy and rising bank
loan delinquency rate among small- and medium-size companies."
================
S R I L A N K A
================
PEOPLE'S MERCHANT: Fitch Affirms 'BB+lka' Rating; Outlook Stable
----------------------------------------------------------------
Fitch Ratings Lanka has affirmed People's Merchant Finance PLC's
(PMF) National Long-Term rating at 'BB+lka'. The Outlook is
Stable.
KEY RATING DRIVERS - NATIONAL RATINGS AND SENIOR DEBT
PMF's rating reflects Fitch's expectation that support would be
forthcoming from its main shareholder, state-owned People's Bank
(PB; 'AA+(lka)'/Stable), if required. PB has a 36% effective
shareholding in PMF, directly and via PB's subsidiary People's
Leasing & Finance PLC ('AA-(lka)'/Stable). Fitch's view of
support is also based on PMF's association with, and consequent
reputational risk to, PB's franchise given the common brand
identity, PB's representation on PMF's board and support
demonstrated by PB in the form of borrowings and equity
injections. Nevertheless, there is a multiple notch differential
between PMF's and PB's ratings, taking into account PMF's
relatively less important role in and lower integration with the
group's overall operations.
RATING SENSITIVITIES- NATIONAL RATINGS AND SENIOR DEBT
PMF's rating may be downgraded if there is any change to PB's
ability or propensity to extend support. This may stem from a
change to PB's National Long-Term Rating or a material weakening
of linkages with PB, such as a dilution of PB's effective
shareholding or board control.
PMF's standalone profile is very weak and characterised by
continuing operating losses, deteriorating asset quality, and a
thin loss-absorption capacity.
The company made a pre- impairment operating loss of LKR6.7m in
FY14 as a result of lower net interest margins and high operating
costs. PMF also incurred significant loan impairment charges of
3% of average loans in FY14. This stemmed from a further
weakening of PMF's asset quality along with a challenging
macroeconomic environment, which has affected its largely subprime
customer base. Fitch believes that PMF's loan book could face
further asset quality stress unless risk management is
strengthened.
PMF's funding is predominantly from term deposits, which, although
improving, remains concentrated. Fitch expects liquidity support
from PB to be forthcoming if required.
Fitch believes that PMF is likely to be merged or acquired as a
part of the Government of Sri Lanka's 'Master Plan' to consolidate
the financial system.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week June 23 to June 27, 2014
-----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
BOART LONGYEAR MAN 7.00 04/01/21 USD 74.75
BOART LONGYEAR MAN 7.00 04/01/21 USD 76.38
GRIFFIN COAL MININ 9.50 12/01/16 USD 71.88
GRIFFIN COAL MININ 9.50 12/01/16 USD 71.88
MIDWEST VANADIUM P 11.50 02/15/18 USD 41.56
MIDWEST VANADIUM P 11.50 02/15/18 USD 45.88
MIRABELA NICKEL LT 8.75 04/15/18 USD 23.25
MIRABELA NICKEL LT 8.75 04/15/18 USD 24.00
NEW SOUTH WALES TR 0.50 09/14/22 AUD 74.30
NEW SOUTH WALES TR 0.50 10/07/22 AUD 74.09
NEW SOUTH WALES TR 0.50 10/28/22 AUD 73.90
NEW SOUTH WALES TR 0.50 12/16/22 AUD 73.86
NEW SOUTH WALES TR 0.50 11/18/22 AUD 73.70
NEW SOUTH WALES TR 0.50 02/02/23 AUD 73.97
NEW SOUTH WALES TR 0.50 03/30/23 AUD 72.86
RELIANCE RAIL FINA 2.97 09/26/20 AUD 71.75
RELIANCE RAIL FINA 2.97 09/26/20 AUD 71.75
TREASURY CORP OF V 0.50 11/12/30 AUD 52.38
TREASURY CORP OF V 0.50 08/25/22 AUD 75.09
TREASURY CORP OF V 0.50 03/03/23 AUD 73.44
CHINA
-----
CHANGCHUN CITY DEV 6.08 03/09/16 CNY 70.52
CHANGCHUN CITY DEV 6.08 03/09/16 CNY 70.57
CHANGZHOU SMALL & 6.18 11/29/14 CNY 60.21
CHINA GOVERNMENT B 1.64 12/15/33 CNY 64.28
DANYANG INVESTMENT 6.30 06/03/16 CNY 70.00
GUANGXI XINFAZHAN 5.75 11/30/14 CNY 39.86
KUNSHAN ENTREPRENE 4.70 03/30/16 CNY 69.28
KUNSHAN ENTREPRENE 4.70 03/30/16 CNY 69.32
QINGZHOU HONGYUAN 6.50 05/22/19 CNY 49.92
QINGZHOU HONGYUAN 6.50 05/22/19 CNY 49.18
ZHENJIANG CITY CON 5.85 03/30/15 CNY 70.13
ZHENJIANG CITY CON 5.85 03/30/15 CNY 70.41
ZHUCHENG ECONOMIC 7.50 08/25/18 CNY 57.16
ZIBO CITY PROPERTY 5.45 04/27/19 CNY 59.08
ZOUCHENG CITY ASSE 7.02 01/12/18 CNY 70.75
INDONESIA
---------
DAVOMAS INTERNATIO 11.00 12/08/14 USD 19.38
DAVOMAS INTERNATIO 11.00 12/08/14 USD 19.38
INDONESIA TREASURY 6.38 04/15/42 IDR 74.87
PERUSAHAAN PENERBI 6.75 04/15/43 IDR 74.80
PERUSAHAAN PENERBI 6.10 02/15/37 IDR 70.50
INDIA
-----
3I INFOTECH LTD 5.00 04/26/17 USD 41.13
CORE EDUCATION & T 7.00 05/07/15 USD 9.25
COROMANDEL INTERNA 9.00 07/23/16 INR 16.12
DEWAN HOUSING FINA 5.50 09/24/23 INR 72.32
GTL INFRASTRUCTURE 2.53 11/09/17 USD 36.49
INDIA GOVERNMENT B 0.23 01/25/35 INR 20.06
JCT LTD 2.50 04/08/11 USD 20.00
MASCON GLOBAL LTD 2.00 12/28/12 USD 10.00
PYRAMID SAIMIRA TH 1.75 07/04/12 USD 1.00
REI AGRO LTD 5.50 11/13/14 USD 55.88
REI AGRO LTD 5.50 11/13/14 USD 55.88
SHIV-VANI OIL & GA 5.00 08/17/15 USD 25.99
JAPAN
-----
ELPIDA MEMORY INC 0.70 08/01/16 JPY 13.13
ELPIDA MEMORY INC 0.50 10/26/15 JPY 14.25
ELPIDA MEMORY INC 2.10 11/29/12 JPY 14.25
ELPIDA MEMORY INC 2.29 12/07/12 JPY 16.13
ELPIDA MEMORY INC 2.03 03/22/12 JPY 14.38
JAPAN EXPRESSWAY H 0.50 03/18/39 JPY 70.43
JAPAN EXPRESSWAY H 0.50 09/17/38 JPY 70.92
KOREA
-----
EXPORT-IMPORT BANK 0.50 10/23/17 TRY 72.39
EXPORT-IMPORT BANK 0.50 12/22/17 BRL 66.85
EXPORT-IMPORT BANK 0.50 12/22/17 TRY 71.05
EXPORT-IMPORT BANK 0.50 12/22/16 BRL 75.16
EXPORT-IMPORT BANK 0.50 11/21/17 BRL 68.31
GREAT KODIT SECURI 10.00 09/29/14 KRW 73.16
HYUNDAI MERCHANT M 7.05 12/27/42 KRW 45.45
KIBO ABS SPECIALTY 10.00 08/22/17 KRW 32.34
KIBO ABS SPECIALTY 10.00 02/19/17 KRW 29.82
KIBO ABS SPECIALTY 10.00 09/04/16 KRW 30.47
KOREA LAND & HOUSI 3.99 03/26/44 KRW 73.90
SINBO CONSTRUCTION 10.00 09/29/14 KRW 73.16
SINBO SECURITIZATI 5.00 03/14/16 KRW 72.39
SINBO SECURITIZATI 8.00 02/02/15 KRW 74.88
SINBO SECURITIZATI 5.00 02/02/16 KRW 73.03
SINBO SECURITIZATI 8.00 03/07/15 KRW 74.20
SINBO SECURITIZATI 5.00 12/07/15 KRW 72.51
SINBO SECURITIZATI 5.00 01/19/16 KRW 72.45
SINBO SECURITIZATI 5.00 09/13/15 KRW 73.10
SINBO SECURITIZATI 5.00 09/13/15 KRW 62.52
SINBO SECURITIZATI 5.00 08/24/15 KRW 70.81
SINBO SECURITIZATI 5.00 07/19/15 KRW 70.93
SINBO SECURITIZATI 5.00 05/27/16 KRW 30.16
SINBO SECURITIZATI 5.00 10/05/16 KRW 29.83
SINBO SECURITIZATI 5.00 09/28/15 KRW 70.77
SINBO SECURITIZATI 5.00 10/05/16 KRW 29.83
SINBO SECURITIZATI 5.00 12/13/16 KRW 29.66
SINBO SECURITIZATI 5.00 07/26/16 KRW 29.94
SINBO SECURITIZATI 5.00 07/26/16 KRW 29.94
SINBO SECURITIZATI 5.00 01/29/17 KRW 29.57
SINBO SECURITIZATI 5.00 06/29/16 KRW 30.05
SINBO SECURITIZATI 5.00 02/21/17 KRW 27.95
SINBO SECURITIZATI 5.00 08/16/16 KRW 30.08
SINBO SECURITIZATI 5.00 08/31/16 KRW 29.85
SINBO SECURITIZATI 5.00 08/31/16 KRW 29.85
SINBO SECURITIZATI 5.00 08/16/17 KRW 30.07
SINBO SECURITIZATI 5.00 08/16/17 KRW 30.07
SINBO SECURITIZATI 5.00 05/27/16 KRW 30.16
SINBO SECURITIZATI 4.60 06/29/15 KRW 72.45
SINBO SECURITIZATI 4.60 06/29/15 KRW 72.45
SINBO SECURITIZATI 5.00 02/21/17 KRW 29.45
SINBO SECURITIZATI 5.00 03/13/17 KRW 29.47
SINBO SECURITIZATI 5.00 07/08/17 KRW 30.27
SINBO SECURITIZATI 5.00 07/08/17 KRW 30.27
SINBO SECURITIZATI 5.00 03/13/17 KRW 29.47
SINBO SECURITIZATI 5.00 06/07/17 KRW 27.47
SINBO SECURITIZATI 5.00 06/07/17 KRW 27.47
TONGYANG CEMENT & 7.50 04/20/14 KRW 70.00
TONGYANG CEMENT & 7.50 07/20/14 KRW 70.00
TONGYANG CEMENT & 7.50 09/10/14 KRW 70.00
TONGYANG CEMENT & 7.30 06/26/15 KRW 70.00
TONGYANG CEMENT & 7.30 04/12/15 KRW 70.00
U-BEST SECURITIZAT 5.50 11/16/17 KRW 29.85
WOONGJIN ENERGY CO 2.00 12/19/16 KRW 60.89
SRI LANKA
---------
SRI LANKA GOVERNME 5.35 03/01/26 LKR 65.49
MALAYSIA
--------
BANDAR MALAYSIA SD 0.35 02/20/24 MYR 64.13
BANDAR MALAYSIA SD 0.35 02/22/21 MYR 74.96
BRIGHT FOCUS BHD 2.50 01/22/31 MYR 68.57
BRIGHT FOCUS BHD 2.50 01/24/30 MYR 69.97
SENAI-DESARU EXPRE 1.35 12/31/29 MYR 57.32
SENAI-DESARU EXPRE 1.15 06/30/23 MYR 70.04
SENAI-DESARU EXPRE 1.35 06/29/29 MYR 58.21
SENAI-DESARU EXPRE 1.35 06/30/28 MYR 60.04
SENAI-DESARU EXPRE 1.15 12/30/22 MYR 71.64
SENAI-DESARU EXPRE 1.35 12/31/30 MYR 55.57
SENAI-DESARU EXPRE 1.35 12/29/28 MYR 59.13
SENAI-DESARU EXPRE 1.15 06/30/25 MYR 64.52
SENAI-DESARU EXPRE 1.35 06/30/27 MYR 61.99
SENAI-DESARU EXPRE 1.15 12/31/24 MYR 65.71
SENAI-DESARU EXPRE 1.10 06/30/22 MYR 72.91
SENAI-DESARU EXPRE 1.35 12/31/25 MYR 65.07
SENAI-DESARU EXPRE 1.35 06/30/31 MYR 54.71
SENAI-DESARU EXPRE 1.35 06/28/30 MYR 56.47
SENAI-DESARU EXPRE 1.15 06/28/24 MYR 66.99
SENAI-DESARU EXPRE 1.15 12/29/23 MYR 68.50
SENAI-DESARU EXPRE 1.35 06/30/26 MYR 63.99
SENAI-DESARU EXPRE 1.35 12/31/26 MYR 62.99
SENAI-DESARU EXPRE 1.35 12/31/27 MYR 61.01
PHILIPPINES
-----------
BAYAN TELECOMMUNIC 13.50 07/15/06 USD 22.75
BAYAN TELECOMMUNIC 13.50 07/15/06 USD 22.75
SINGAPORE
---------
BAKRIE TELECOM PTE 11.50 05/07/15 USD 11.10
BAKRIE TELECOM PTE 11.50 05/07/15 USD 9.25
BLD INVESTMENTS PT 8.63 03/23/15 USD 30.00
BUMI CAPITAL PTE L 12.00 11/10/16 USD 52.45
BUMI CAPITAL PTE L 12.00 11/10/16 USD 50.02
BUMI INVESTMENT PT 10.75 10/06/17 USD 49.75
BUMI INVESTMENT PT 10.75 10/06/17 USD 50.53
ENERCOAL RESOURCES 9.25 08/05/14 USD 35.03
INDO INFRASTRUCTUR 2.00 07/30/10 USD 1.88
THAILAND
--------
G STEEL PCL 3.00 10/04/15 USD 13.63
MDX PCL 4.75 09/17/03 USD 17.13
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, and Peter A. Chapman,
Editors.
Copyright 2014. 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 ***