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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

          Wednesday, November 5, 2014, Vol. 17, No. 219


                            Headlines


A U S T R A L I A

CARRINGTON COLBY: First Creditors' Meeting Set For November 11
NEXUS ENERGY: Heavyweights Join Battle Against Takeover
NORTH WEST EQUIPMENT: First Meeting Slated For November 7
ON DEMAND: Goes Into Liquidation
PLUTON RESOURCES: Battles Receivership Appointment

SOU'WEST SEAFOODS: Put Business Up for Sale


C H I N A

CHINA OIL: Bond Issue Gets Moody's (P)Ba1 Sr. Unsec. Bond Rating
CHINA OIL: S&P Rates Proposed US$-Denom. Sr. Unsec. Notes 'BB+'
NEXTEER AUTOMOTIVE: Moody's Assigns Ba1 Corporate Family Rating
NEXTEER AUTOMOTIVE: S&P Assigns 'BB+' LT CCR; Outlook Stable


I N D I A

A-1 HEIGHTS: CRISIL Reaffirms B Rating on INR91.5MM Term Loan
ARIHANTANAM LIFE: CRISIL Cuts Rating on INR90MM Cash Loan to B+
AVA APPARELS: ICRA Assigns B+ Rating to INR0.85cr Bank Loan
BULKTAINER SHIPPING: CRISIL Cuts Rating on INR45MM Cash Loan to D
CHANDRALOK TEXTILE: ICRA Ups Rating on INR9cr Cash Credit to B-

DIRCO POLYMERS: CRISIL Reaffirms B Rating on INR100MM Cash Loan
G.J. AGRO: CRISIL Reaffirms B- Rating on INR55MM Bank Loan
G. N. PET: CRISIL Reaffirms 'D' Rating on INR35.5MM Term Loan
HERALD MARINE: CRISIL Assigns B Rating to INR45MM Rupee Term Loan
INDIAN OVERSEAS: S&P Lowers LT ICR to 'BB+' on Weak Asset Quality

J.B. GOLD: CARE Reaffirms 'B' Rating on INR9cr LT Bank Loan
J.R.M FOODS: ICRA Suspends B+ Rating on INR21cr FB Facilities
KUNVAR NANDAN: CRISIL Rates INR75MM Cash Credit at 'B+'
L. K. AND SONS: CRISIL Assigns B Rating to INR60MM Cash Credit
LAKSHMI VENKATA: ICRA Reaffirms B- Rating on INR5.17cr FB Limit

MORAKHIA METAL: ICRA Suspends 'D' Rating on INR50.15cr LOC
MS INFRAENGINEERS: CRISIL Places B Rating on INR90MM Cash Credit
N. V. ENTERPRISES: CRISIL Reaffirms B+ Rating on INR60M Cash Loan
P. K. & COMPANY: ICRA Reaffirms B+ INR27cr Bank Guarantee Rating
PIONEER PET: ICRA Suspends B+ Rating on INR8cr Fund Based Loan

POWER ENGINEERING: ICRA Cuts Rating on INR17cr Loan to 'C'
PURNA GLOBAL: CRISIL Cuts Rating on INR144.6MM Term Loan to D
RADIANT TEXTILES: CRISIL Ups Rating on INR500MM Cash Loan to B+
RKD EXIM: ICRA Suspends 'D' Rating on INR6.59cr Term Loan
SADHBHAWANA IMPEX: ICRA Assigns B+ Rating to INR25cr Term Loan

SANTPURIA ALLOYS: CRISIL Ups Rating on INR150MM Cash Loan to B+
SHREEJEE COTEX: CRISIL Assigns B- Rating to INR35MM Cash Credit
SIDDHESHWARI PAPER: CRISIL Assigns B Rating to INR49.5MM Loan
SUBHASH GUAR: CRISIL Ups Rating on INR60MM Cash Loan to 'B'
SUNDER ISPAT: CARE Assigns B+ Rating to INR8cr LT Bank Loan

SWATANTRA POWER: CARE Puts B+ Rating on INR11.5cr LT Bank Loan
VELAVAN STORES: CRISIL Rates INR200 Million Term Loan at 'B'
VINTAGE DISTILLERS: CRISIL Assigns B+ Rating to INR120M Term Loan
VTC ESTATES: CRISIL Reaffirms 'B' Rating on INR61.1MM Term Loan
YAMA ENTERPRISE: CRISIL Reaffirms 'D' Rating on INR76.3MM Loan


N E W  Z E A L A N D

ISABEL ESTATE: Woolworths Unit Buys New Zealand Wine Company


P H I L I P P I N E S

PUERTO AZUL: High Court Upholds Decision Approving Rehab Plan


S O U T H  K O R E A

* SOUTH KOREA: Banks' Loan Delinquency Rate Edges Down in Sept.


V I E T N A M

VIETNAM: Fitch Ups IDR to 'BB-'; Outlook Stable
VIETNAM NATIONAL: Vietcombank Sells $19-Mil. Debt to DATC


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


CARRINGTON COLBY: First Creditors' Meeting Set For November 11
--------------------------------------------------------------
John Frederick Lord -- JohnL@jirschsutherland.com.au -- and Trent
Andrew Devine -- TrentD@jirschsutherland.com.au -- of Jirsch
Sutherland were appointed as administrators of Carrington Colby
Pty Ltd on Oct. 30, 2014.

A first meeting of the creditors of the Company will be held at
Christie Conference Centre, Level 2 Boardroom, 320 Adelaide
Street, in Brisbane, Queensland, on Nov. 11, 2014, at
10:00 a.m.


NEXUS ENERGY: Heavyweights Join Battle Against Takeover
-------------------------------------------------------
Leo Shanahan at The Australian reports that Liberal Party
president Richard Alston and a group of high-profile investors
including legendary corporate raider Ron Brierley have joined the
legal battle against the Kerry Stokes-controlled Seven Group
Holdings' AUD180 million takeover of failed miner Nexus Energy.

In an escalation of the resistance against the purchase of Nexus
by Seven, Seven Group managing director and former Nexus chairman
Don Voelte is the focus of a shareholder campaign against the
takeover, with submissions to Australian Securities Investments
Commission outlining serious concerns about Mr Voelte's dual roles
in the lead-up to the takeover bid, The Australian says.

The Australian relates that a group of larger shareholders,
representing just over 22 per cent of the company stock, have
joined in the legal action objecting to the takeover.  The report
says the group includes former senator and Liberal Party president
Richard Alston; Mr Brierley; Azure Capital chairman John Poynton;
Andrew Greig of Betchel Corporation; Karoon Gas chairman Bob
Hosking; and the managing director of the Victor Smorgon Group,
Peter Edwards.

According to the report, the Nexus Energy buyout forms a major
part of Seven's and Kerry Stokes's expanding investment in the
resources sector.

The offer by Seven Group will see shareholders get nothing for
their shares, after they rejected a 2c per share offer by Seven in
June after it purchased Nexus's senior debt, the report notes.
Shareholders rejected the offer because the company's share price
was at 7.7c at the time Mr. Voelte stepped down from Nexus, just
six weeks before the Seven offer was made.  Following that
rejection, Nexus went into administration, the report notes.

The report says Seven then made another AUD180 million offer for
Nexus that would pay out creditors and employees but leave
shareholders empty-handed.

The offer was approved by creditors in August but remains
vehemently opposed by shareholders, the report recalls. It would
see Seven Group get Nexus for about AUD80 million less than the
value of its liabilities and AUD30 million less than the previous
2c offer.

The Australian notes that the deed of company arrangement still
needs to be approved by ASIC, and on October 31 lawyers for
administrators McGrath Nicole, ASIC and shareholders appeared in
the NSW Supreme Court.

A new 255-page independent report on the bid, prepared by Lonergan
Edwards, was released to the ASX on October 31 by administrators,
The Australian notes.

It recommends that the Seven buyout proceed, The Australian says.

"In our opinion, the realisable value of Nexus' interest in the
assets under a realisation scenario is likely to be significantly
less than the value implied by the DOCA (deed of arrangement),"
the report, as cited by The Australian, stated.

However, barrister Peter Brereton SC, acting for the major
shareholders, said the company would be better off going into
liquidation than accepting the Seven offer, the Australian relays.

Meanwhile, a group of smaller shareholders known as Nexus Battle
have made submissions to ASIC objecting to the bid, citing what
they claim were conflicting roles of Mr Voelte in the lead-up to
the offer, The Australian adds.

Nexus Energy Limited (ASX:NXS) is a Melbourne-based, Australian
Stock Exchange listed oil and gas company.  In 2009, Nexus
transitioned from explorer to producer with the start up of the
Longtom gas project.  The company holds interests in eight permits
located offshore Australia.  Operations are focused on the
Gippsland Basin, offshore Victoria and the Browse Basin, offshore
Western Australia.

McGrathNicol announced on June 12, 2014, that partners
Matthew Caddy, Tony McGrath, and Jason Preston have been appointed
joint and several Voluntary Administrators to Nexus Energy
Limited.


NORTH WEST EQUIPMENT: First Meeting Slated For November 7
---------------------------------------------------------
Cliff Sanderson -- cliff@restructuringworks.com.au -- of
Restructuring Works Pty Ltd was appointed as administrator of
North West Equipment Hire Pty Ltd on Oct. 28, 2014.

A first meeting of the creditors of the Company will be held at
the Boardroom at RedEarth Boutique Hotel, Corner Rodeo Drive &
West Street, in Mount Isa, Queensland, on Nov. 7, 2014, at
1:00 p.m.


ON DEMAND: Goes Into Liquidation
--------------------------------
Cliff Sanderson at Dissolve.com.au reports that On Demand Pty Ltd,
a digital print business in Melbourne, has entered liquidation.
Hamish Alan MacKinnon of Bent and Cougle was appointed liquidator
of the company on October 31, 2013.

The business continues to trade as a buyer is sought,
Dissolve.com.au says.


PLUTON RESOURCES: Battles Receivership Appointment
--------------------------------------------------
Esmarie Swanepoel at miningweekly.com reports that iron-ore junior
Pluton Resources is battling receivership after junior Chinese
creditor Rizhao Port Group appointed receivers and managers,
prompting fellow-listed Watpac to suspend an existing mining
services contract at the Cockatoo Island project.

According to the report, Pluto told shareholders on Nov. 3 that
the receivers and its solicitors had refused the company's
requests for details of the appointment.

miningweekly.com relates that the junior miner pointed out that
the actions by the receivers contravened specific provisions of
the Priority and Subordination Deed which did not permit such
appointments without the consent of the first ranking security
holder, which in this case was General Nice Resources Commercial
Offshore De Macaw Limitada (GNR), which had not been provided.  As
such, Pluton has ordered its employees and suppliers not to
provide the receivers with any information, the report says.

The report says Pluton noted that initial discussions with Rizhao
regarding refinancing of amounts owed to the Chinese firms had
confirmed that Pluton joint venture (JV) partner Wise Energy Group
had prompted Rizhao's actions.

At the end of October, Wise tried to remove Pluton as the manager
of the Cockatoo Island project, the report recalls. It is believed
that the dispute with Wise emerged around project costs at
Cockatoo Island, with Pluton claiming that its JV partner owed
outstanding payments, says miningweekly.com.

miningweekly.com  reports that Pluton, meanwhile, was in
discussions with GNR, which has advised the company that it would
seek the removal of Rizhao's receivers, and would work
cooperatively with Pluton management to ensure that interruptions
to the operation were minimised and that the company proceeded to
refinance the Rizhao debt as soon as practical.

According to miningweekly.com, Watpac on Nov. 3 stated that it
expected to meet with Pluton's receivers early this week, after
which the company would assess the status of the contract and
whether to resume mining services at Cockatoo Island.

The mining contract would be worth between AUD50 million and AUD60
million in revenues to Westpac for the year ended June 2015, and
the contractor has warned that if mining services were not
resumed, it could adversely affect the company's own net profits
for the 2015 financial year, the report notes.


SOU'WEST SEAFOODS: Put Business Up for Sale
-------------------------------------------
Cliff Sanderson at Dissolve.com.au reports that Sou'West Seafoods
has been shut down.  The abalone canning business' building is on
the market along with the plant processing equipment, the report
says.

According to Dissolve.com.au, the company had been trying to see a
buyer; however, did not succeed in attracting any interest. This
is the reason the business was closed offering its 15 workers a
redundancy package. SKB Real Estate is selling the property, the
report notes.



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


CHINA OIL: Bond Issue Gets Moody's (P)Ba1 Sr. Unsec. Bond Rating
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)Ba1 senior
unsecured bond rating to China Oil and Gas Group Limited's (COG,
Ba1 stable) proposed bond issue.

The ratings outlook is stable.

COG plans to use the bond proceeds for debt refinancing and
general corporate purposes.

Moody's will remove the provisional status of the bond after COG
completes the issuance on satisfactory terms and conditions.

Ratings Rationale

"The proposed bond issuance will not materially change COG's debt
leverage as the net proceeds will be partly used for debt
refinancing," says Ivy Poon, a Moody's Analyst.

COG plans to centralize its financing activities at the holding
company level by gradually repaying debt at the operating company
level in China over the next 18 months. It also plans to repay the
HKD700 million loan borrowed by the holding company from China
Petroleum HongKong (Holding) Limited (unrated), a subsidiary of
China National Petroleum Corporation (CNPC, Aa3 stable).

Moody's expects that COG's financial profile will be temporarily
weakened in 2014, due to its sizable acquisition of Baccalieu
Energy Inc (BEI, unrated) in July.

In addition, COG's long delays in passing on higher gas costs to
end users in its core market of Qinghai Province will lead to
margin compression.

Nevertheless, the company's credit metrics are expected to improve
starting in 2015, after it fully consolidates its oil and gas
business, which exhibits higher margins and ramp-up operations.

Moody's expects COG's retained cash flow to debt will stay at 20%-
30%, and its debt/capitalization will be at 40%-45% during 2014-
2016. Such credit metrics provide moderate financial headroom for
its current ratings level.

In addition, COG's Ba1 corporate family rating is underpinned by
its steady revenues from city gas operations, which in turn are
supported by the favorable operating and regulatory environments
in the natural gas distribution industry in China.

Moody's expects COG to continue to maintain its close working
relationship with CNPC and Kunlun Energy (unrated), given Kunlun
Energy owns 49% of COG's joint venture named China City Natural
Gas Investment Group (CCNG), despite the proposed repayment of
CNPC loans.

However, COG's expansion into the upstream oil and gas business
through BEI introduces higher business and integration risks.
COG's higher business risk will position the company at the lower
end of its Ba1 ratings category.

The Ba1 rating is further constrained by the small operating scale
of COG's city gas operations, heavy concentration in Qinghai
Province as well as the presence of considerable minority interest
in CCNG.

While Moody's does not see near term upward pressure on the
ratings, such pressure may emerge over time if: 1) COG achieves
its plan of building a larger and geographically more diversified
operating portfolio, or 2) it lowers its reliance on CCNG, such
that consolidated revenue exceeds RMB12 billion, and revenue
contributions from Qinghai Province and CCNG are less than 30% and
60% respectively.

Financial indicators for an upgrade include debt/capitalization
below 35%, and retained cash flow/debt exceeding 25%-30% on a
sustained basis.

On the other hand, the ratings could be downgraded if (1)
aggressive debt-funded expansion projects or acquisitions occur,
(2) COG's relationship with Kunlun Energy and CNPC deteriorates,
(3) COG's liquidity position weakens, excluding cash in CCNG, (4)
the regulatory environment becomes unfavorable, (4) COG is
required to provide significant financial support to BEI, and/or
(5) BEI's daily production levels and reserves fall materially.

Financial indicators for a downgrade include debt/capitalization
in excess of 50%, and retained cash flow/debt below 15%-20% on a
consistent basis, or if unencumbered cash and liquid securities
held by the holding company and majority controlled subsidiaries
other than CCNG total less than RMB700 million.

The principal methodology used in this rating was Regulated
Electric and Gas Utilities published in December 2013.

China Oil and Gas Group Limited engages in the piped city gas
business in China, as well as the transportation and distribution
of compressed natural gas, and liquefied natural gas.

The company is listed on the Hong Kong Exchange. Mr. Xu Tieliang,
the company's chairman, is the largest shareholder, with a 21.81%
stake.


CHINA OIL: S&P Rates Proposed US$-Denom. Sr. Unsec. Notes 'BB+'
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' long-term
issue rating and 'cnBBB' long-term Greater China regional scale
rating to a proposed issue of U.S. dollar-denominated senior
unsecured notes by China Oil and Gas Group Ltd. (BB+/Negative/--;
cnBBB/--).  The ratings on the notes are subject to S&P's review
of the final issuance documentation.

The issue rating is the same as the corporate credit rating on
China Oil and Gas.  In S&P's view, the diverse city-gas concession
projects mitigate structural subordination risk associated with
debt at the holding company level.  The company intends to use the
notes' proceeds for refinancing and general corporate purposes.

The negative outlook on China Oil and Gas reflects the risks
surrounding the company's strategy and its ability to manage
potential cash flow volatility in the upstream business.  That
said, S&P anticipates that the company can maintain its
"intermediate" financial risk profile because of strong growth in
cash flows from its gas distribution business.


NEXTEER AUTOMOTIVE: Moody's Assigns Ba1 Corporate Family Rating
---------------------------------------------------------------
Moody's Investors Service has assigned a first-time Ba1 corporate
family rating to Nexteer Automotive Group Limited.

Moody's has also assigned a provisional (P) Ba1 senior unsecured
rating to Nexteer's proposed bond issue.

The ratings outlook is stable.

The proceeds from the notes issuance will be used for debt
repayment, capital expenditure and other general corporate
purposes.

Moody's will remove the provisional status from the bond rating
after Nexteer completes the issuance on satisfactory terms and
conditions.

Ratings Rationale

"Nexteer's Ba1 corporate family rating incorporates its standalone
credit profile, and a two-notch uplift, based on Moody's
expectation of strong support in times of need, mainly from its
key shareholder, Aviation Industry Corporation of China," says
Chenyi Lu, a Moody's Vice President and Senior Analyst.

"As for Nexteer's standalone credit profile, its profile reflects
the company's long history in the auto parts business, and strong
technical ability; both of which support its solid market position
in the steering and halfshafts industries," adds Lu, who is also
the Lead Analyst for Nexteer.

Founded in 1906, Nexteer is among the top steering and halfshafts
suppliers in the world. The company's strong technical capability
is evidenced by its production of key products, such as electric
power steering (EPS), which will help revitalize its product
offerings and provide impetus for growth over the next few years,
as the company will benefit from the industry's conversion to EPS
from hydraulic power steering.

Moody's points out that Nexteer's standalone credit profile also
reflects the high cost of entry to its business, which provides
some protection for its revenues.

Because auto manufacturers demand high standards on parts to
fulfill safety requirements, such standards impose demanding
requirements on parts suppliers such as Nexteer to meet the
specifications of auto manufacturers.

On the other hand, the cost of switching parts suppliers is high
for auto manufacturers. Moreover, manufacturers need to work
closely with their parts suppliers to develop new models.
Qualified parts suppliers therefore typically exhibit long term
relationships with auto manufacturers. Consequently, entry
barriers for the parts supply business are high.

Moody's says that Nexteer's history, as a former division of
General Motors Company (GM, Ba1 stable) helps it secure orders and
expand on a global basis. In particular, Nexteer's strong
relationship with GM adds visibility to its revenues. GM accounted
for 50.6%, 52.3% and 53.8% of Nexteer's total sales in 2011, 2012,
and 2013, respectively.

Through the GM relationship, Nexteer has secured parts supply
contracts from GM Shanghai, which in turn helps its expansion
across China. Nexteer also plans to work with other global auto
manufacturers in China.

However, Moody's says that Nexteer's rating is constrained by its
business concentration, as reflected by its revenues from GM. The
rating is also constrained by its geographic concentration in the
North America.

Moody's expects GM's percentage contribution to Nexteer's revenues
to gradually decline over the next two years, given Nexteer's
growing customer base. For example, the company has already
expanded its relationship with Bayerische Motoren Werke
Aktiengesellschaft (BMW, (P)A2 stable) to supply EPS products to
the auto manufacturer.

As previously mentioned, Nexteer's geographic concentration is
high. It generated 71% of its total sales in North America in
2013, exposing the company to changes in US economic growth rates.

Nonetheless, the company has a strong global footprint. Nexteer
has 20 manufacturing plants, nine customer service centers and
five regional application engineering centers spread across North
and South America, Europe and Asia.

Moody's expects Nexteer's revenue contribution from North America
to fall gradually over the next two years, owing to a gradual
recovery of the auto market in Europe and Nexteer's higher market
share in China.

Moody's further notes that while Nexteer's rating is also
constrained by its low profit margins, improvements over the next
12--18 months will result in credit metrics in line with a rating
at the low- to mid-end of the Ba rating range.

Moody's points out that Nexteer has taken restructuring actions to
reduce its operating costs in the United States, resulting in its
adjusted EBITA margins improving to 4.0% in 2013 from -0.1% in
2012, when the company began restructuring. But its margins are
lower than those of global players such as Delphi Corporation
(Baa3 stable) which achieved in 2013, adjusted EBITA margins of
12%, including Moody's standard adjustments.

Nevertheless Moody's expects Nexteer to sell more EPS and expand
its China operations, which in turn will help it achieve a further
improvement in its adjusted EBITA margins to around 5.2% over the
next 12--18 months.

Consequently, the company's credit metrics over the same period
should improve, such that its adjusted debt/EBITDA should be
around 3.1x versus 4.2x in 2013, and its adjusted EBITDA/interest
should be around 5.9x from 4.7x in 2013. Such improved results
would be in line with a rating in the low- to mid-end of the Ba
rating range.

Moody's says the two-notch uplift to Nexteer's final rating of Ba1
reflects Moody's expectation that Aviation Industry Corporation of
China (AVIC, unrated) will provide financial support to Nexteer,
in situations of financial distress.

Nexteer accounted for about 4.2% of AVIC's total revenues in 2013.
Nexteer is also an important platform for AVIC to develop its auto
parts business, and to diversify beyond its traditional aviation
and military-related business.

AVIC, as well as Nexteer's other major shareholder, Beijing E-Town
International Investment & Development Co. Ltd. (unrated), have
exhibited a track record of providing financial support to
Nexteer, in the form of a capital injection in late 2010, and
guarantees covering Nexteer's long-term bank loans from Export-
Import Bank of China.

Nexteer's liquidity position is adequate. Its cash holdings,
expected cash flows from operations and undrawn committed credit
facilities can cover its capital expenditures and refinancing
requirements over the next 12 months.

Nexteer's bond rating is not notched down for subordination, given
the upstream guarantees from Project Rhodes Holding Corporation
(Delaware) and Rhodes Holding I S.….r.l. (Luxembourg), as Moody's
expect the company's priority debt level will stay below 15% over
the next 1-2 years.

The guarantees effectively improve the position of the company's
holding company creditors as these creditors will have closer
claims to the operating companies' assets and cash flows.

The stable outlook reflects Moody's expectation that Nexteer will
maintain its relationships with its key auto manufacturer clients
and strong market position, and that it will maintain its prudent
financial discipline.

Upward rating pressure could arise over the longer term, if
Nexteer demonstrates a track record of: (1) improving adjusted
EBITA margins; (2) decreasing concentration on GM and on its US
operations; (3) expanding its business scale, and (4) improving
its credit metrics such that adjusted debt/EBITDA is kept below
2.5x on a sustained basis.

On the other hand the rating could come under downward pressure if
Nexteer: (1) experiences a consistent fall in market share, or
loses major customers; (2) faces a deterioration in its profit
margins, such that its adjusted EBITA margin falls below 3.5% on a
sustained basis; (3) suffers material financial losses from
product recalls; or (4) increases its debt leverage, such that
adjusted debt/EBITDA exceeds 4x on a sustained basis

The principal methodology used in this rating was Global
Automotive Supplier Industry published in May 2013.

Headquartered in Saginaw, Michigan in the United States, and
listed on the Hong Kong Stock Exchange in October 2013, Nexteer
Automotive Group Limited manufactures steering and driveline
systems. The company has 20 manufacturing plants located across
North and South America, Europe and Asia.

Nexteer is 67.3%-owned by Pacific Century Motors, Inc., which in
turn is 51% owned by AVIC Automobile Industry Holding Co., Ltd.
(AVIC Auto, unrated), and 49% owned by Beijing E-Town
International Investment & Development Co. Ltd. (unrated), which
is controlled by Beijing's municipal government,

AVIC Auto is wholly owned by Aviation Industry Corporation of
China (unrated), a Chinese central government-owned enterprise.


NEXTEER AUTOMOTIVE: S&P Assigns 'BB+' LT CCR; Outlook Stable
------------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'BB+' long-term corporate credit rating and 'cnBBB+' long-term
Greater China regional scale rating to Nexteer Automotive Group
Ltd.  The outlook is stable.  S&P also assigned its 'BB+' long-
term issue rating and its 'cnBBB+' long-term Greater China
regional scale rating to Nexteer's proposed issue of senior
unsecured notes.  The issue rating is subject to S&P's review of
the final issuance documentation.  S&P is also assigning a
recovery rating of '4'. U.S.-based Nexteer supplies automotive
steering and driveline systems to global markets.

"The rating on Nexteer reflects the company's limited product
offering, and the high competition and quality-related risks in
China's auto steering and driveline supplies industry.  These
weaknesses are tempered by Nexteer's high earnings visibility and
solid operating cash flows," said Standard & Poor's credit analyst
Leo Hu.

S&P expects the competitive landscape to remain the same for the
next two years.  Nexteer's major customers are original equipment
manufacturers (OEM), such as General Motors and Ford.  The OEMs'
strong bargaining power means relatively low profitability for
steering suppliers such as Nexteer.  The company's revenue could
also decline if its reputation is impaired due to quality issues
related to its major products.  The company's limited product
portfolio intensifies such risks.  Nexteer announced in June 2014
that General Motors and Ford would recall certain models that used
Nexteer's steering system.  S&P expects the company's financial
liability to be limited as some elements of the recalls are due to
auto-design issues that are unrelated to Nexteer's product
quality.  All these factors contribute to S&P's assessment of a
"fair" business risk profile.

On the other hand, Nexteer is likely to continue to benefit from
high revenue visibility over the next two years, given its good
product expertise and favorable competitive position.  S&P expects
the company to maintain its key customers because major OEMs tend
to work only with existing suppliers, given the importance of
steering systems to safety and driving performance.  In addition,
Nexteer's long corporate history and strong research and design
capability have helped the company to accumulate good product
expertise.  Its most technologically advanced product, Electric
Power Steering (EPS), has increasingly penetrated global markets.
S&P therefore expects Nexteer's revenue to grow higher than the
industry average over the coming two years.

S&P anticipates that Nexteer's operating cash flows will continue
to moderately improve over the next two years, due to the higher
contribution from high-margin EPS products.  Capital investments
should remain stable.  Free operating cash flows should remain
positive over the same period because the company is unlikely to
aggressively expand, which will help it to maintain moderate
leverage.  S&P therefore assess the financial risk profile as
"intermediate."

S&P assess Nexteer as a "moderately strategic" subsidiary of its
ultimate parent, Aviation Industry Corp. of China (AVIC).

"The stable outlook reflects our view that Nexteer's revenue will
grow steadily and its profitability will moderately improve over
the next 12 to 24 months, given the company's order backlog, and
our expectation that Nexteer will maintain stable relationships
with key customers.  The outlook also reflects the limited free
operating cash flows that the company can generate over the next
12-24 months to retire debt," said Mr. Hu.

S&P could lower the rating if Nexteer's financial position
deteriorates significantly, such that ratio of debt to EBITDA is
close to 3x.  This scenario could materialize if competition
within the auto supplies industry intensifies -- for example, as a
result of a significant economic downturn and slow auto sales --
leading to a decline in the company's revenue or profitability.
The deterioration may also occur if the financial liability for
recent product recalls turns out to be significantly larger than
S&P expected, or if Nexteer encounters major product quality
issues that lead to large scale product recalls or loss of key
clients.

S&P could also lower the rating on Nexteer if it lowers its
assessment of AVIC's group credit profile.

An upgrade is unlikely in the coming 12 months, in S&P's view.
S&P could consider raising the rating if: (1) it raises its
assessment of AVIC's group credit profile; and (2) Nexteer's
financial position strengthens significantly, such that the ratio
of debt to EBITDA is consistently lower than 1.5x.  S&P believes
this will materialize if the company consistently improves its
profitability and steadily increases its revenue while using its
free operating cash flows to deleverage.  This also assumes that
the recent product recalls have a limited financial impact.

S&P may also upgrade the company if we significantly raise AVIC's
group credit profile assessment, which S&P believes to be unlikely
in the coming 12 months.



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


A-1 HEIGHTS: CRISIL Reaffirms B Rating on INR91.5MM Term Loan
-------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of A-1 Heights &
Hospitality Pvt Ltd (A-1) continues to reflect A-1's exposure to
risk regarding completion of its ongoing hotel project and
stabilisation of operations of the hotel on time. These rating
weaknesses are partially offset by the favourable location of
A-1's upcoming hotel with proximity to the city center and
business district of Mumbai, and the extensive experience of A-1's
promoters in the realty industry.

                         Amount
   Facilities           (INR Mln)    Ratings
   ----------           ---------    -------
   Proposed Long Term
   Bank Loan Facility      8.5       CRISIL B/Stable (Reaffirmed)

   Term Loan              91.5       CRISIL B/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that the timely implementation and stabilisation
of operations and demand for A-1's ongoing hotel project will
influence its credit risk profile over the medium term. The
outlook may be revised to 'Positive' if the company completes its
project on time and generates substantial cash accruals, driven by
higher occupancy rates and average room realisations, resulting in
improvement in its financial risk profile. Conversely, the outlook
may be revised to 'Negative' in case of significant delays in
commissioning of the project or low cash accruals, impacting A-1's
debt servicing ability.

A-1 is part of the Milan group, and is developing a three-star
hotel, Aureole Hotel, at Andheri in Mumbai. The company's
operations are managed by Mr. Nikhil Samani, promoter of the Milan
group. The hotel is expected to be completed by December 2014.

The Milan group is a Mumbai-based real estate development group,
promoted by the Samani family. The group has an established
presence in the real estate sector in Mumbai.


ARIHANTANAM LIFE: CRISIL Cuts Rating on INR90MM Cash Loan to B+
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Arihantanam Life Care Pvt Ltd (ALPL) to 'CRISIL B+/Stable/CRISIL
A4' from 'CRISIL BB-/Stable/CRISIL A4+'.

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

   Letter of Credit         52.5     CRISIL A4 (Downgraded from
                                     'CRISIL A4+')

   Term Loan                 7.4     CRISIL B+/Stable (Downgraded
                                     from 'CRISIL BB-/Stable')

The downgrade reflects CRISIL's belief that ALPL's business and
financial risk profiles will remain under pressure over the medium
term, with continued small scale of operations, working capital
intensive operations leading to high gearing and below average
debt protection metrics. The company's financial risk profile has
weakened and is marked by increased gearing and low debt
protection metrics because of incremental working capital debt vs.
modest accruals. As of March 2014 the gearing of the firm
significantly increased year on year(y-o-y) to around 2.3 times on
account of increase in its working capital debt to the tune of
INR45 million coupled with moderate accruals. Over the medium
term, the gearing is expected to marginally ease up, albeit remain
high to around 1.8 times on account of incremental debt to service
its working capital requirements vs. modest accruals. ALPL's debt
protection metrics deteriorated due to significant increase in its
working capital debt out pacing its improvement in profitability.
Its debt protection metrics were below average in 2013-14 with
interest coverage and net cash accruals to total debt (NCATD)
estimated at 1.98 times and 0.09 times respectively. The debt
protection metrics are expected to improve marginally but remain
below average over the medium term, on account of moderate
profitability vis-a-vis increased debt to fund working capital
requirements.

The ratings reflect ALPL's susceptibility to intense competition
in the pharmaceutical industry restricting its scale of
operations, and average financial risk profile, marked by modest
capitalization. These rating weaknesses are partially offset by
the extensive experience of ALPL's promoters in the
pharmaceuticals business, its improved product profile, and its
plant's high operating efficiency marked by high utilization
rates.

Outlook: Stable

CRISIL believes that ALPL will continue to benefit from its
promoters' extensive industry experience, over the medium term.
The outlook may be revised to 'Positive' if ALPL increases its
scale of operations, while maintaining/improving its profitability
and strengthening its financial risk profile particularly its
networth. Conversely, the outlook may be revised to 'Negative' in
case of significant stretching of ALPL's working capital
requirements, and/or if the company undertakes a larger-than-
expected debt-funded capital expenditure programme deteriorating
its financial risk profile.

ALPL was set up as a partnership concern, Arihantanam Organics, in
2007, and was reconstituted as a private limited company in
October 2010. ALPL is promoted by Mr. R K Singh and Mr.
Hasmukhbhai Patel. The company manufactures bulk drugs and active
pharmaceutical ingredients (APIs). It has a plant in Vapi
(Gujarat). The company's product portfolio includes nutroniks,
such as methylcobalamin, antimalarial drugs, antihistamin,
antituberculosis, and anti-inflammatory drugs.

In 2013-14, ALPL's net profit is estimated at INR7.2 million on
net sales of INR332 million, as against a net profit of INR6.6
million on net sales of INR451 million for 2012-13.


AVA APPARELS: ICRA Assigns B+ Rating to INR0.85cr Bank Loan
-----------------------------------------------------------
ICRA has assigned its long-term rating of [ICRA]B+ to the INR0.851
crore fund-based bank facilities of AVA Apparels LLP. ICRA has
also assigned its short-term rating of [ICRA]A4 to the INR4.25
crore fund-based bank facilities and INR7.40 crore proposed bank
facilities of AVA.

                       Amount
   Facilities        (INR crore)      Ratings
   ----------        -----------      -------
   Fund-based bank       0.85         [ICRA]B+; assigned
   facilities

   Fund-based bank       4.25         [ICRA]A4; assigned
   facilities

   Unallocated           7.40         [ICRA]A4; assigned

The assigned ratings take into account AVA's modest scale of
operations and weak financial profile characterized by low
profitability and high working capital intensity of operations.
The firm's modest scale of operations coupled with its limited
client base and geographic concentration, exposes the firm's
revenues to any slowdown in demand from its customers. Further,
the profitability is exposed to adverse movement in foreign
exchange rates and raw material costs, as reflected in the
volatile operating profit margins over the last three years.
Although the firm's business is not very capital intensive however
the working capital requirements are relatively high due to long
cash conversion cycle and seasonality in demand. Given the limited
cash accruals, the firm relies on debt to meet its funding
requirements.

However, the ratings draw comfort from the promoters' prior
experience in the garmenting industry and the firm's established
relations with its key customers, which has resulted in repeat
orders and revenue growth. Notwithstanding the moderate scale of
operations, recent capacity expansion and the firm's efforts to
diversify its client base are expected to drive growth in the near
term.

Going forward, the firm's ability to retain its key clients, add
new clients thereby achieving customer diversification, improve
profitability of its operations and prudently manage its working
capital cycle will be the key rating sensitivities. Further,
timely funding of incremental working capital requirements, while
maintaining the pace of revenue growth, will remain crucial to
maintaining adequate liquidity.

Formed in 2010 as an LLP concern, AVA is engaged in manufacturing
and export of knitted readymade garments largely for women and
girls. The firm currently operates two units in Delhi and Noida
(Uttar Pradesh) which are equipped with a total of 470 sewing
machines with a total capacity to manufacture ~15 lakh garment
pieces per year. The firm's key markets are European countries
like France and Spain. The promoters have experience of around two
decades in the garmenting industry and they ventured into garment
manufacturing in 2006 through another entity whose operations were
later transferred to AVA.


BULKTAINER SHIPPING: CRISIL Cuts Rating on INR45MM Cash Loan to D
-----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Bulktainer Shipping Limited to 'CRISIL D/CRISIL D' from 'CRISIL
C/CRISIL A4'.

                         Amount
   Facilities           (INR Mln)      Ratings
   ----------           ---------      -------
   Bank Guarantee           1.9        CRISIL D (Downgraded from
                                       'CRISIL A4')

   Cash Credit             45.0        CRISIL D (Downgraded from
                                       'CRISIL C')

   Proposed Long Term       2.1        CRISIL D (Downgraded from
   Bank Loan Facility                  'CRISIL C')

   Term Loan               35.6        CRISIL D (Downgraded from
                                       'CRISIL C')

The rating downgrade reflects instances of delay by BSL in
servicing its debt. The delays have been caused by the weakening
in the company's liquidity resulting from a stretch in its
receivables cycle.

BSL has a below-average financial risk profile marked by its small
net-worth, high gearing, and average debt protection metrics. The
company's operations are working-capital-intensive, and are
susceptible to changes in the overall level of economic activity.
However, the company benefits from the extensive experience of its
promoters in the road transport industry.

BSL was set up in 1988 as a proprietary concern - Bulktainer
Roadways - by Mr. Sanjay Sharma; it was reconstituted as a closely
held public limited company in 1995.

The company provides freight transport services by roads. The
company operates a fleet of gas trailers and multi-axle bulkers,
and transports liquefied petroleum gas, butadiene, and alumina,
among others.


CHANDRALOK TEXTILE: ICRA Ups Rating on INR9cr Cash Credit to B-
----------------------------------------------------------------
ICRA has upgraded the long-term rating to [ICRA]B- from [ICRA]C
for INR9.32 crore (enhanced from INR9.16 crore) fund based bank
facilities of Chandralok Textile Industries Private Limited.

                          Amount
   Facilities           (INR crore)    Ratings
   ----------           -----------    -------
   Long Term Fund Based     0.32       [ICRA]B-; Upgraded
   Limit - Term Loans

   Long Term Fund Based     9.00       [ICRA]B-; Upgraded
   Limit - Cash Credit

The rating upgradation takes into consideration Chandralok Textile
Industries Private Limited's (CTIPL) improved credit profile of
the company with regularization of limit utilization and as well
as marginal improvement in capital structure of the company. The
ratings also favourably factor in the promoter's experience in the
textile industry and the location advantage due to its presence in
the textile belt of Bhiwandi with proximity to customers and raw
material sources.

The assigned ratings however continue to be constrained by small
scale of operations with volatility in sales and weak financial
profile characterized by low profitability, leveraged capital
structure and tight liquidity position with slow debtor
realization leading to extended payables and almost full
utilization of working capital limits. ICRA also takes into
consideration the company's exposure to high degree of competition
and the low value additive nature of business, which has resulted
in low profitability levels.

CTIPL was incorporated in the year 2003 and is engaged in the
business of processing grey cloth in order to produce fabric that
is used to make suiting, shirting and dress materials. The company
has a registered office in Mumbai and its manufacturing unit is in
Bhiwandi (Thane). Mr. Chandramohan Chaudary is the key director of
the company having an experience of more than four decades within
the textile industry.

Recent Results
CTIPL recorded a net profit of INR0.28 crore on an operating
income of INR45.00 crore as per FY14 Audited figures.


DIRCO POLYMERS: CRISIL Reaffirms B Rating on INR100MM Cash Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Dirco Polymers Private
Limited continue to reflect DPPL's small scale of operations in
the highly fragmented dyes and pigments industry, and its weak
financial risk profile, marked by a small net worth and weak debt
protection metrics. These rating weaknesses are partially offset
by the extensive industry experience of DPPL's promoters.

                      Amount
   Facilities         (INR Mln)      Ratings
   ----------         ---------      -------
   Cash Credit            100        CRISIL B/Stable (Reaffirmed)

   Letter of Credit        70        CRISIL A4 (Reaffirmed)

   Proposed Cash Credit
   Limit                   40        CRISIL B/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility      55.4      CRISIL B/Stable (Reaffirmed)


CRISIL has upgraded its rating on the long-term bank facilities of
DPPL to 'CRISIL B/Stable' from 'CRISIL B-/Stable', and has
reaffirmed its rating on the company's short-term bank facilities
at 'CRISIL A4' on 22 October, 2014.

Outlook: Stable

CRISIL believes that DPPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of substantial
improvement in the company's financial risk profile, most likely
driven by fresh equity infusion and reduction in incremental
working capital requirements. Conversely, the outlook may be
revised to 'Negative' in case of decline in DPPL's revenue or
profitability, leading to lower cash accruals, or any large debt-
funded capital expenditure, weakening its capital structure.

DPPL was incorporated in 1996, promoted by Mr. Naresh Goyal and
Mr. Surender Goel. The company manufactures masterbatches and
compounds that are primarily used to manufacture a variety of
plastic products for the automobile, electronic, furniture, and
packaging industries. DPPL has three manufacturing units at
Manesar and Gurgaon (both in Haryana), with capacity utilisation
of 80 per cent on an average.


G.J. AGRO: CRISIL Reaffirms B- Rating on INR55MM Bank Loan
----------------------------------------------------------
CRISIL's rating on the long-term bank facilities of G.J. Agro
Industries continues to reflect GJAI's weak financial risk
profile, marked by below-average debt protection metrics and high
total outside liabilities to adjusted net worth (TOLANW) ratio;
the rating also factors in the firm's small scale of operations in
the intensely competitive rice industry and working-capital-
intensive operations. These rating weaknesses are partially offset
by the extensive experience of GJAI's promoters in the rice
industry and largely assured offtake from Food Corporation of
India (FCI).

                        Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            45        CRISIL B-/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility     55        CRISIL B-/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that GJAI will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the firm improves its
capital structure either by equity infusion or sizeable cash
accruals, backed by improvement in scale of operations and working
capital management. Conversely, the outlook may be revised to
'Negative' if GJAI's financial risk profile deteriorates on
account of further decline in its revenue and profitability or in
case of substantially large debt-funded capital expenditure, or if
the firm's liquidity weakens significantly on account of increase
in its working capital requirements.

Update
GJAI's turnover in 2013-14 (refers to financial year, April 1 to
March 31) was INR134.1 million, a fall from INR151.2 million in
2012-13 due to reduced demand as the firm mostly focused on
meeting FCI's target. CRISIL believes that GJAI's scale of
operations will increase gradually but will remain small over the
medium term.

GJAI's operating margin was 5.9 per cent for 2013-14, up from 5.6
per cent in 2012-13. The operating margin has remained average due
to job work activity for FCI. CRISIL believes that GJAI's
operating margin will remain at similar level over the medium
term.

GJAI's financial risk profile has remained weak, marked by below-
average debt protection metrics, with interest coverage and net
cash accruals to total debt ratios of 1.5 times and 0.05 times,
respectively, for 2013-14. It had high TOLANW ratio of 7.98 times
as on March 31, 2014. This was due to low accretion to reserves
and small net worth of INR7.9 million as on March 31, 2014. CRISIL
believes that GJAI's financial risk profile will remain below
average over the medium term.

GJAI's operations are working capital intensive, as reflected in
gross current assets of around 200 days as on March 31, 2014,
which have increased from 168 days as on March 31, 2013. GJAI's
debtors have remained moderate at 40 days; however, inventory has
remained large at 145 days as on March 31, 2014. Despite trade
credit support from its suppliers, the firm's reliance on external
borrowings has remained high. CRISIL believes that GJAI's working
capital requirements will remain large over the medium term.

GJAI does not have any major term debt obligations and has
received adequate funding from its partners. However, its bank
limit utilisation has remained high at over 90 per cent for the 12
months ended September 30, 2014, while its unencumbered cash and
bank balance were low at INR0.7 million as on March 31, 2014;
leading to stretched liquidity. CRISIL believes that GJAI's
liquidity will remain stretched over the medium term due to large
working capital requirements.

For 2013-14, GJAI reported a net profit of INR0.9 million on net
sales of INR134.1 million, against a net profit of INR0.9 million
on net sales of INR151.2 million for the previous year.

GJAI was set up as a partnership firm in 2003 by Mr. Mukesh Jain
and Mr. Sanjay Jain. The firm trades in rice and also shells and
mills rice for FCI on commission basis. GJAI also purchases paddy
and mills and processes raw rice, bran, and husk. Its rice mill is
in Fazalpur in Jalandhar district (Punjab).


G. N. PET: CRISIL Reaffirms 'D' Rating on INR35.5MM Term Loan
-------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of G. N. Pet
(GNP; part of the GN group) continue to reflect instances of delay
by the GN group in meeting its term debt obligations on account of
its weak liquidity.

                         Amount
   Facilities           (INR Mln)      Ratings
   ----------           ---------      -------
   Cash Credit              25         CRISIL D (Reaffirmed)

   Funded Interest
   Term Loan                13.7       CRISIL D (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility        0.2       CRISIL D (Reaffirmed)

   Working Capital
   Term Loan                25.6       CRISIL D (Reaffirmed)

   Term Loan                35.5       CRISIL D (Reaffirmed)

The group has delayed paying the instalments on its term loan by
more than a day. The GN group's topline declined whereas the
interest burden of the group has remained large. The group has
also incurred losses for the past two years along with muted net
cash accruals. The group paid the instalment on Funded Interest
Term-Loan (FITL) due on September 30, 2014, after October 10,
2014. CRISIL believes that the GN group's liquidity will remain
weak over the medium term on account of yet-to-stabilise
operations.

The GN group also has a weak financial profile marked by muted
debt-protection measures and high gearing, small scale of
operations in the intensely competitive packaging industry, and
working-capital-intensive operations. However, the group has a
moderate operating efficiency supported by fiscal benefits and
diverse applications of its product.

For arriving at its rating, CRISIL has combined the business and
financial risk profiles of GNP and Garib Nawaz Polymers Pvt Ltd
(GNPPL). This is because the two entities, together referred to as
the GN group, are in the same line of business, have close
operational and financial linkages, and are under a common
management.

In 2009, Mr. Sunil Bansal established the proprietorship concern,
GNP, which manufactures polyethylene terephthalate bottles for
consumers in the pharmaceuticals industry. GNP commenced
commercial operations in 2011.

GNPPL, incorporated in 2007 and promoted by Mr. Sunil Bansal, is
also in the same line of business. It commenced commercial
operations in 2008. Both the group entities' manufacturing
facilities are located in Baddi (Himachal Pradesh).


HERALD MARINE: CRISIL Assigns B Rating to INR45MM Rupee Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Herald Marine Products Pvt Ltd.

                         Amount
   Facilities           (INR Mln)      Ratings
   ----------           ---------      -------
   Rupee Term Loan          45         CRISIL B/Stable

   Proposed Long Term
   Bank Loan Facility        7         CRISIL B/Stable

   Bank Guarantee            8         CRISIL A4

   Cash Credit              20         CRISIL B/Stable

The ratings reflect the start-up nature of HMPL's operations and
its below-average financial risk profile, marked by small net
worth and high gearing. These rating weaknesses are partially
offset by the entrepreneurial experience of HMPL's promoters and
susceptibility of its margins to volatility in raw material costs.

Outlook: Stable

CRISIL believes that HMPL will continue to benefit over the medium
term from its promoters' entrepreneurial experience. The outlook
may be revised to 'Positive' if the company reports a significant
improvement in its scale of operations and profitability, leading
to a substantial increase in its accruals. Conversely, the outlook
may be revised to 'Negative' if HMPL's cash accruals are low or if
its working capital cycle is stretched, thereby adversely
impacting its liquidity.

HMPL was established as a private limited company in 2012 by Mr.
Abdul Shukoor along with his friends, Mr. Shyamsundar and Mr.
Roshan. The company manufactures fish oil and fish meal and began
commercial production from May 2014.


INDIAN OVERSEAS: S&P Lowers LT ICR to 'BB+' on Weak Asset Quality
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term issuer
credit rating on India-based Indian Overseas Bank (IOB) to 'BB+'
from 'BBB-'.  The outlook is stable.  At the same time, S&P
lowered its short-term rating on the bank to 'B' from 'A-3'.  S&P
also lowered its issue ratings on IOB's senior unsecured debt to
'BB+' from 'BBB-'.

S&P downgraded IOB following a recent deterioration in the bank's
asset quality and S&P's expectation that it will remain weak over
the next 12 months.  S&P revised its assessment of the bank's risk
position to "weak" from "moderate," as its criteria define those
terms.  Accordingly, S&P lowered the bank's stand-alone credit
profile (SACP) to 'bb' from 'bb+'.

The rating continues to reflect IOB's "adequate" business
position, "moderate" capital and earnings, "above average"
funding, and "strong" liquidity, as S&P's criteria define those
terms.  S&P still sees a "very high" likelihood that the
government of India will provide timely and sufficient
extraordinary support if the bank comes under financial distress.

"We expect IOB's credit costs to remain high because of the bank's
weak asset quality," said Standard & Poor's credit analyst Amit
Pandey.  "We believe that it could be another two quarters before
the pace of creation of stressed assets starts receding for the
industry as a whole and IOB in particular.  In our view, IOB's
aggressive growth over the past several years has stressed its
internal control system."

Moreover, IOB's focus on the corporate segment brings in some
concentration in that segment.  The bank's exposure to high-risk
sectors, such as iron and steel and textiles, is also greater than
peers'.  The bank's reported nonperforming loan ratio rose sharply
to 7.3% as of Sept. 30, 2014, from 5% as of March 31, 2014, to
become the highest among the Indian banks that S&P rates.  The
share of gross standard restructured loans outstanding in IOB's
loan book is also high at 7.85%.

S&P expects IOB's earnings to remain under pressure because of
high credit costs.  The bank's mediocre internal capital
generation is unlikely to support its moderate loan growth.  IOB
relies on large capital infusion on an ongoing basis to support
its growth owing to its low retained earnings.  S&P anticipates
that new capital from the government or the capital markets will
keep IOB's risk-adjusted capital (RAC) ratio (pre-diversification)
under Standard & Poor's framework above 5% over the next 12-18
months; the ratio was 5.6% as of March 31, 2014.  However, S&P
could lower its forecast RAC ratio if the economic risk in India
increases because it calibrates risk weights to the underlying
economic risk in a country.  This may negatively affect S&P's
assessment of capital and earnings.

IOB's business position reflects the bank's adequate domestic
business franchise, and satisfactory business and geographic
diversification.  IOB's stable funding ratio of 126% underpins its
funding profile.

"The stable outlook reflects our expectation that IOB will
continue to benefit from a very high likelihood of government
support," said Mr. Pandey.  Therefore, a weakening in IOB's SACP
may not result in a lower rating.  For IOB to be downgraded
because of a weaker SACP, the SACP must be lowered by two notches
to 'b+', a scenario which we view as unlikely in the next 12
months.  S&P could lower IOB's SACP to 'bb-' from 'bb' if: (1) the
bank's funding profile deteriorates; or (2) the RAC ratio declines
to below 5%, which could happen if IOB can't raise sufficient
capital to support its growth or the economic risk in India rises.

S&P could upgrade the bank if its risk management improves, and
its asset quality improves sharply and is more in line with that
of the industry.


J.B. GOLD: CARE Reaffirms 'B' Rating on INR9cr LT Bank Loan
-----------------------------------------------------------
CARE reaffirms rating assigned to bank facilities of J.B. Gold
Private Limited.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long term Bank Facilities      9         CARE B Reaffirmed

Rating Rationale

The rating assigned to the bank facilities of J.B. Gold Private
Limited (JBG) continues to remain constrained by the limited
experience of its promoters, short track record of JBG's
operations and its weak financial risk profile characterized by
the modest scale of operations, low profitability margins,
leveraged capital structure and weak debt coverage indicators.

The ratings are further constrained by the competition from the
organized and unorganized players and the risk associated
with the fluctuating gold prices.

The above constraints are partially offset by the positive outlook
of the domestic gems and jewellery industry.

Going forward, the ability of JBG to increase its scale of
operations along with an improvement in the profitability margins
and capital structure shall be the key rating sensitivities.

Delhi-based JB Gold Private Limited (JBG) was incorporated in 2011
as a private limited company by Mr Rajnish Gupta and his wife, Ms
Nisha Gupta. JBG is engaged in the wholesale trading of gold
jewellery, diamond jewellery and loose cut & polished diamonds and
has its office located in Karol Bagh, Delhi. The company procures
jewellery, cut & polished diamond from wholesalers and jewellery
manufacturers and then sells it to various retail jewellers in
Delhi. The company has also started in-house manufacturing of gold
& diamond jewellery in FY14 (refers to the period April 1 to March
31) and sells the same under its own brand name 'Kiyan'. JBG sells
hallmark certified gold and diamond jewellery.

Roshni Jewellers Private Limited (CARE B) is a group associate of
JBG and is engaged in the same line of business.

As per the provisional results for FY14, JBG reported a total
operating income of INR63.27 crore and a PAT of INR0.34 crore.
During 5MFY15 (provisional), JBG achieved a total operating income
of INR22.08 crore.


J.R.M FOODS: ICRA Suspends B+ Rating on INR21cr FB Facilities
-------------------------------------------------------------
ICRA has suspended [ICRA]B+ rating assigned to the INR21 Crores
fund based facilities of J.R.M Foods Private Limited. The
suspension follows ICRA's inability to carry out a rating
surveillance in the absence of the requisite information from the
company.


KUNVAR NANDAN: CRISIL Rates INR75MM Cash Credit at 'B+'
-------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Kunvar Nandan Cotton (KNC).

                         Amount
   Facilities           (INR Mln)       Ratings
   ----------           ---------       -------
   Cash Credit              75          CRISIL B+/Stable

The rating reflects KNC's modest scale of operations in the highly
competitive trading business leading to low operating margin, and
its subdued financial risk profile marked by modest net worth,
weak debt protection metrics, and deteriorating total outside
liabilities to tangible net worth ratio. These rating weaknesses
are partially offset by the extensive experience of KNC's
promoters in the trading business leading to established
relationship with customers and suppliers.

Outlook: Stable

CRISIL believes that KNC will maintain its business risk profile
over the medium term backed by its promoters' extensive trading
experience and its diversified business profile. The outlook may
be revised to 'Positive' in case of sustained and substantial
increase in KNC's scale of operations and profitability leading to
improvement in its financial risk profile. Conversely, the outlook
may be revised to 'Negative' if the firm reports low accruals
because of decline in revenue or profitability, or if the firm's
working capital requirements increase leading to deterioration in
its liquidity, or if the firm undertakes any debt-funded capital
expenditure programme.

KNC was incorporated in 2006, and is promoted by Rajkot (Gujarat)-
based Mr. Sagarbhai and his family. The firm trades in cotton,
cotton seed and bales, and other agricultural products. The firm
recently set up a guar gum manufacturing unit in July 2014 with
capacity of 50 tonnes per day.


L. K. AND SONS: CRISIL Assigns B Rating to INR60MM Cash Credit
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' rating to the
bank loan facilities of L. K. and Sons (LK).

                         Amount
   Facilities           (INR Mln)      Ratings
   ----------           ---------      -------
   Bank Guarantee           10         CRISIL A4
   Cash Credit              60         CRISIL B/Stable

The rating reflects LK's large working capital requirements and
modest scale of operations along with geographic concentration in
its revenue profile. These rating weaknesses are partially offset
by the extensive experience of the firm's promoters in the civil
construction industry.

Outlook: Stable

CRISIL believes that LK will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' if the firm's scale of
operations and profitability improve, or better working capital
management, leading to an improvement in its financial risk
profile, especially its liquidity. Conversely, the outlook may be
revised to 'Negative' if LK's working capital cycle stretches, it
undertakes a significant debt-funded capital expenditure
programme, or its profitability is low, leading to deterioration
in its liquidity.

Established in 1999, LK undertakes civil construction work, mainly
related to construction of roads and bridges for the government.
Its daily operations are being managed by Mr. Laishram Kadamjit
Singh.


LAKSHMI VENKATA: ICRA Reaffirms B- Rating on INR5.17cr FB Limit
---------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B- assigned to
INR5.17 crore fund based limits and INR2.83 crore unallocated
limits of Lakshmi Venkata Sai Rice Industries.

                       Amount
   Facilities        (INR crore)      Ratings
   ----------        -----------      -------
   Fund Based Limits     5.17         [ICRA]B- reaffirmed
   Unallocated Limits    2.83         [ICRA]B- reaffirmed

The reaffirmation of ratings factors in the intensely competitive
nature of rice industry with presence of several small-scale
players which increases pressure on the operating margins; weak
financial profile of the firm characterized by low profitability,
high gearing levels and modest coverage indicators; and risks
inherent to a partnership firm. This apart, the ratings are also
constrained by the susceptibility of profitability & revenues to
agro-climatic risks which impact the availability of paddy in
adverse weather conditions. The ratings, however, take comfort
from the long track record of the promoters in the rice mill
business, presence of rice mill in major rice growing area results
in easy availability of paddy and favorable demand prospects for
rice with India being the second largest producer and consumer of
rice internationally.

Going forward, the ability of the firm to improve its financial
profile by efficiently managing its working capital requirements
remains the key rating sensitivity.

Founded in the year 2010 as a partnership firm, Lakshmi Venkata
Rice Industries (LVSRI) is engaged in the milling of paddy and
produces raw & boiled rice. The firm started its operations from
November 2012. It was promoted by Mr. B. Chandrasekhar. The firm
has a milling unit in Pothy reddypalem village of Nellore district
of Andhra Pradesh with an installed capacity of 4 tons per hour.

Recent Results
For FY2014, the firm reported profit after tax of INR0.02 crore on
operating income of INR13.03 crore as against profit after tax of
INR0.02 crore on operating income of INR6.99 crore in FY2013.


MORAKHIA METAL: ICRA Suspends 'D' Rating on INR50.15cr LOC
----------------------------------------------------------
ICRA has suspended the long term and short term rating of [ICRA]D
assigned to the INR50.15 crore line of credit of Morakhia Metal &
Alloys Private Limited. The suspension follows ICRA's inability to
carry out a rating surveillance in the absence of the requisite
information from the company.

Established in 1990, MMPL is engaged in the manufacturing and
trading of copper and copper based alloy products; which include
tubes, pipes, bus bars, flats, wires, sections etc. The
manufacturing facility of the company is located at GIDC Chhatral
in the Gandhinagar district of Gujarat with an installed capacity
of 8,000 metric tonnes per annum (MTPA). The company's key raw
materials comprise of copper cathodes and copper & copper alloy
scrap. MMPL's customers include public sector and reputed private
sector companies.


MS INFRAENGINEERS: CRISIL Places B Rating on INR90MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of MS Infraengineers Pvt Ltd.

                         Amount
   Facilities           (INR Mln)       Ratings
   ----------           ---------       -------
   Bank Guarantee           40          CRISIL A4
   Cash Credit              90          CRISIL B/Stable

The ratings reflect MIPL's weak financial risk profile, marked by
an average capital structure due to its ongoing debt-funded
capital expenditure (capex) to purchase a commercial complex, and
weak liquidity, driven by large working capital requirements that
result in almost fully utilised bank limits. The ratings also
factor in MIPL's modest scale of operations and exposure to risks
related to the tender-based nature of its business. These rating
weaknesses are partially offset by the extensive experience of
MIPL's promoters in the construction industry, its healthy order
book, and its moderate profitability.

Outlook: Stable

CRISIL believes that MIPL will continue to benefit over the medium
term from its promoters' extensive industry experience and its
healthy order book. The outlook may be revised to 'Positive' in
case of a sharp improvement in the company's liquidity, driven by
significantly higher cash accruals or a better working capital
cycle. Conversely, the outlook may be revised to 'Negative' if
MIPL's financial risk profile, particularly its liquidity,
deteriorates, most likely because of lower cash accruals, a
substantial increase in its working capital requirements, or
additional debt-funded capex.

MIPL, based in Cuttack (Odisha), took over the business of its
promoter's proprietorship concern Mahendra Swain with effect from
September 2011. The company is involved in civil construction and
mainly undertakes works for irrigation dams, canals, and road
construction. It derives more than 95 per cent of its revenue from
irrigation and from work for the Public Works Department, Odisha.


N. V. ENTERPRISES: CRISIL Reaffirms B+ Rating on INR60M Cash Loan
-----------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of N. V.
Enterprises Pvt Ltd continues to reflect NVEPL's small scale of
operations in the fragmented steel products trading industry, and
its weak financial risk profile, marked by an aggressive capital
structure and weak debt protection metrics. These rating
weaknesses are partially offset by the extensive industry
experience of the company's promoters.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit           60        CRISIL B+/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility    20        CRISIL B+/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that NVEPL will continue to benefit over the
medium term from its promoters' extensive industry experience, and
its established customer relationships. The outlook may be revised
to 'Positive' if the company reports a significant increase in its
accruals, leading to better debt protection metrics, or if its
capital structure improves, supported by substantial capital
infusion. Conversely, the outlook may be revised to 'Negative' if
NVEPL's operating margin declines, or if its financial risk
profile deteriorates, most likely because of a stretch in its
working capital cycle.

Update
NVEPL's business performance has remained in line with CRISIL's
expectations, with sales of INR290 million in 2013-14 (refers to
financial year, April 1 to March 31). It has registered sales of
INR150 million in the six months through September 2014, and
expects to achieve sales of INR300 million in 2014-15.

The company's operations remain working capital intensive; it had
large receivables, estimated at around 90 days, and moderate
inventory, estimated at around 33 days, as on March 31, 2014. With
the limited credit period available from suppliers, NVEPL
continues to remain heavily dependent on short-term bank debt, as
reflected in its high bank limit utilisation.

NVEPL's financial risk profile remains weak with high debt levels
and a small net worth; its gearing is estimated at around 11.8
times as on March 31, 2014. It mainly has short-term debt availed
to fund its working capital requirements. Its bank limits continue
to be highly utilised, at an average of around 96 per cent during
the 12 months through September 2014. Its debt protection metrics
remain weak, with high debt levels and low accruals; it had a weak
interest coverage ratio of around 1.1 times in 2013-14. However,
it is supported by unsecured loans from its promoters, the balance
of which is estimated at around INR19 million as on March 31,
2014. CRISIL believes that NVEPL's financial risk profile will
remain constrained over the medium term because of its significant
reliance on short-term debt to fund its large working capital
requirements.

NVEPL was incorporated in 1990 in Jalandhar (Punjab). The company
trades in hot-rolled (HR) and cold-rolled (CR) steel products such
as HR and CR closed annealed products, and HR coils and plates.

The company's promoters, members of the Aggarwal family, have been
engaged in the trading business since the 1950s. Mr. Narinder
Aggarwal is the promoter and managing director; he oversees the
company's day-to-day operations.


P. K. & COMPANY: ICRA Reaffirms B+ INR27cr Bank Guarantee Rating
----------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ to the
INR7.50 crore (enhanced from INR5.00 crore earlier) fund based
bank facility and INR27.00 crore (reduced from INR30.00 crore
earlier) non-fund based bank facility of P. K. & Company.

                         Amount
   Facilities          (INR crore)   Ratings
   ----------          -----------   -------
   Fund Based Limit-       7.50      [ICRA]B+ reaffirmed/assigned
   Cash Credit

   Non Fund Based         27.00      [ICRA]B+ reaffirmed
   Limit-Bank Guarantee

The rating reaffirmation takes into account PKC's modest scale of
operations with a declining operating income observed during the
last three years and significant increase in working capital
intensity of operations, which also remained high in the past few
years, that results in stretched liquidity position as reflected
by high utilizations of working capital limit, restricting
financial flexibility of the firm. The rating also factor in the
highly competitive nature of the construction industry, which
coupled with a tender based contract awarding system followed by
Government departments, keeps the margins under check; high
geographical concentration risks as the entire operations being
limited to the states of Assam and Meghalaya, and also, the risk
associated with the entity's status as a partnership firm
including the risk of capital withdrawal by the partners. The
rating, however, continues to derive comfort from the long
experience of the partners in the construction business and its
status as a Class 1(A) contractor with Public Works Department
(PWD) of Assam and Meghalaya, which enables PKC to bid for large
government contracts in these two states. The rating also
considers the comfortable profitability indicators of the firm;
although, the same has declined to an extent in 2013-14, moderate
level of gearing and the current order book of around INR54 crore
as on March 31, 2014 (2.21x of OI in 2013-14), which provides
revenue visibility in the near term at-least.

PKC, established in 1992 as a partnership firm, is promoted by the
Agarwala family based out of Guwahati. PKC is a Government
registered road and bridge contractors and has executed various
small and medium scale construction projects in the North Eastern
part of India.

Recent Results
The firm reported a net profit of INR2.44 crore (provisional) in
2013-14 on an operating income of INR24.59 crore (provisional); as
compared to a net profit of INR2.66 crore on an operating income
of INR25.74 crore during 2012-13.


PIONEER PET: ICRA Suspends B+ Rating on INR8cr Fund Based Loan
--------------------------------------------------------------
ICRA has suspended [ICRA]B+ rating assigned to the INR8 Crores
fund based facilities of Pioneer Pet Industries. The suspension
follows ICRA's inability to carry out a rating surveillance in the
absence of the requisite information from the company.


POWER ENGINEERING: ICRA Cuts Rating on INR17cr Loan to 'C'
----------------------------------------------------------
ICRA has downgraded the long-term rating assigned to the fund
based facilities aggregating to INR17.00 crore of Power
Engineering (India) Private Limited from [ICRA]B- to [ICRA]C.
Further, ICRA has re-affirmed short-term rating of [ICRA]A4 to the
fund based and non-fund based facilities aggregating to INR33.00
crore of PEIPL.

                         Amount
   Facilities          (INR crore)     Ratings
   ----------          -----------     -------
   Fund Based Limits-      17.00       [ICRA]C; downgraded
   Cash Credit/Packing                 from [ICRA]B-
   Credit

   Fund Based Limits-       2.00       [ICRA]A4 re-affirmed
   Bill Discounting

   Non-Fund Based          31.00       [ICRA]A4 re-affirmed
   Limits- LC/BG

The rating downgrade takes into account the deterioration in
company's financial risk profile as indicated by stretched cash
flow position and erosion of net worth position owing to losses
reported by the company in FY 2014. The ratings are further
constrained by the company's moderate size of operations coupled
with high fixed cost structure, high working capital intensity of
operations and intense competitive pressures from both organized
as well as unorganized players. Further, the company's
profitability levels also remain exposed to adverse forex
fluctuations as well as to unfavourable fluctuations in prices of
basic raw materials/bought-outs.

The ratings, however, favourably factor in the long standing
experience of the company's promoters in the power gensets
manufacturing business, favourable long term demand prospects for
power gensets and wide product portfolio catering to various
industries, which partly insulates the company from downturn in
any particular industry.

Power Engineering (I) Private Limited (PEIPL), promoted by Mr.
Atul Pai Kane, was incorporated on November 6, 1996 and is engaged
in the manufacturing of diesel and gas based generators. The
company acquires various fabricated components like Acoustic
Enclosures, Base Frames, Control Panels etc. from its' wholly
owned subsidiaries while bought-out items like diesel engines,
alternators and batteries are procured from the respective
manufacturers. The company's manufacturing facility is based in
Goa.

Recent Results (Consolidated)
For FY 2013, the company reported profit after tax of INR5.60
crore on an operating income of INR161.32 crore. For FY 2014, the
company reported loss of INR13.86 crore on an operating income of
INR95.64 crore (provisional).


PURNA GLOBAL: CRISIL Cuts Rating on INR144.6MM Term Loan to D
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Purna Global Textiles Park Ltd (PGT) to 'CRISIL D' from 'CRISIL
B-/Stable'.

                         Amount
   Facilities           (INR Mln)      Ratings
   ----------           ---------      -------
   Term Loan              144.6        CRISIL D (Downgraded from
                                       'CRISIL B-/Stable')

The rating downgrade reflects instances of delay by PGT in
servicing its debt; the delays have been caused by weak liquidity,
arising out of mismatches in cash flows. Phase 1 of the textile
park is already operational; however, owing to delays in
establishment of end-user units in the textile park and in
stabilisation of operations of existing units, PGT has been unable
to collect user charges, resulting in weak liquidity.

The rating also reflects off-take risks arising out of delays in
operationalising the remaining units in the textile park, and
cyclicality in the textile industry. These rating weaknesses are
partially offset by the funding support that PGT receives from
government grants under the Scheme for Integrated Textile Parks
(SITP).

PGT, set up on December 31, 2007, is a special-purpose vehicle for
developing, implementing, operating, and managing an upcoming
textile park in Hingoli (Maharashtra). PGT was set up under SITP,
supported by the Ministry of Textiles, Government of India. PGT is
one of 10 textile parks in Maharashtra to be approved under SITP.


RADIANT TEXTILES: CRISIL Ups Rating on INR500MM Cash Loan to B+
---------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Radiant Textiles Ltd (RTL) to 'CRISIL B+/Stable' from 'CRISIL
B/Stable'.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit             500        CRISIL B+/Stable (Upgraded
                                      from 'CRISIL B/Stable')

   Corporate Loan           60        CRISIL B+/Stable (Upgraded
                                      from 'CRISIL B/Stable')

   Proposed Long Term
   Bank Loan Facility      202.6      CRISIL B+/Stable (Upgraded
                                      from 'CRISIL B/Stable')

   Term Loan               247.4      CRISIL B+/Stable (Upgraded
                                      from 'CRISIL B/Stable')

The rating upgrade reflects significant improvement in RTL's
revenue to INR3045.4 million in 2013-14 (refers to financial year,
April 1 to March 31), driven by healthy orders from its key
domestic and export customers; the revenue increased by 45 per
cent year-on-year. However, the company's operating profitability
declined to 11.9 per cent in 2013-14 from 14.3 per cent in 2012-
13, on account of higher manufacturing expenses, increased direct
traded sales, and rising cotton prices through the year.

RTL's liquidity has improved, driven by improved cash accruals.
The company has met its debt obligations on time for more than a
year. It received unsecured loans of INR100 million during 2013-
14, which supported its liquidity. RTL utilised its bank limits
moderately, at an average of 60 per cent, over the 12 months ended
September 30, 2014.

RTL's financial risk profile has improved, as reflected in decline
in its gearing to 3.13 times as on March 31, 2014, from 3.81 times
as on March 31, 2013, on account of repayment of term loans and
increase in net worth. While the company's interest coverage ratio
is in line with past level, at 1.99 times for 2013-14, its net
cash accruals to total debt ratio improved to 12 per cent in 2013-
14 from 9 per cent in 2012-13.

The rating reflects RTL's weak financial risk profile marked by
high gearing and average debt protection metrics, and its large
working capital requirements. These rating weaknesses are
partially offset by the extensive experience of RTL's promoters in
the cotton industry and their funding support to the company.

Outlook: Stable

CRISIL believes that RTL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company's capital
structure improves, either through equity infusion by its
promoters or substantial cash accruals backed by increase in its
scale of operations or improvement in its working capital
management. Conversely, the outlook may be revised to 'Negative'
if RTL's financial risk profile deteriorates on account of decline
in its revenue and profitability, or if the company undertakes a
large debt-funded capital expenditure programme, or if its
liquidity weakens significantly on account of increase in its
working capital requirements.

RTL was set up in October 2005 by Mr. Ramesh Kumar, Mr. Mohan Lal,
Mr. Gian Chand, Mr. Rajesh Goyal, and Mr. Varun Kumar. It
commenced commercial production in January 2008. The company
manufactures cotton yarn at its plant in Samana (Punjab).

RTL reported a net profit of INR37.4 million on net sales of
INR2685.2 million for 2013-14, against a net profit of INR13
million on net sales of INR1852.9 million for 2012-13.


RKD EXIM: ICRA Suspends 'D' Rating on INR6.59cr Term Loan
---------------------------------------------------------
ICRA has suspended the [ICRA]D) rating, assigned to the INR6.59
crore of term loan and INR2.25 crore of cash credit facility of
RKD Exim Private Limited. The suspension follows ICRA's inability
to carry out a rating surveillance in the absence of the requisite
information from the company.

Promoted by Mr. Shailesh Radadiya, Mrs. Nehal Radadiya and Mr.
Dilip Radadiya in July 2011, the company is currently engaged in
trading of art silk grey cloth and planning to foray into
manufacture of variety of fabrics such as art silk, kota silk,
dupion silk, satin and roto. The Company has its registered office
and manufacturing facility in Surat, Gujarat.


SADHBHAWANA IMPEX: ICRA Assigns B+ Rating to INR25cr Term Loan
--------------------------------------------------------------
ICRA has assigned its long-term rating of [ICRA]B+ to the INR27.50
crore bank facilities and INR7.00 crore non fund based facilities
of Sadhbhawana Impex Private Limited.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Term Loan            25.00        [ICRA]B+; Assigned
   Cash Credit           2.50        [ICRA]B+; Assigned
   Bank Guarantee        7.00        [ICRA]B+; Assigned

The assigned rating factors in the risks associated with timely
stabilization of operations of the company's green field steel
rolling plant, which is expected to be commissioned by December
2014. The rating is also constrained by the company's future
financial risk profile, which is expected to remain modest, given
the moderate scale of operations, high gearing, moderate coverage
indicators and sizeable debt repayment burden when compared to
cash accruals in the early years of operations. The rating also
factors in the risks of time and cost overruns associated with the
project, these are however considerably diminished given that the
project is close to commissioning. The rating also factors in the
highly fragmented and competitive nature of the steel industry,
marked by the presence of a large number of participants in the
unorganized sector, given the low entry barriers and relatively
low technical and capital intensity.

However, the rating favourably factors in the extensive experience
of the promoters in the steel industry and low funding risk for
the project given that the entire debt requirement has been tied
up and the equity contribution has been brought in by the
promoters. The rating also derives comfort from the company's
agreement with Steel Authority of India Ltd which ensures assured
job work income and eliminates off take risk to an extent.
Going forward, the ability of the firm to complete its project
with minimal time and cost overruns; and achieve timely
stabilization of operations will remain the key rating
sensitivities.

Incorporated in the year 1997, SIPL is a closely held company
promoted by Mr. Ashwani Garg and his family members. Till FY2014,
the company was engaged in supply of transmission accessories and
other hardware to Punjab State Transmission Corporation Ltd from
its plant in Punjab. The company has closed down its operations in
Punjab and is setting up a steel rolling mill in Bahraich, Uttar
Pradesh for manufacturing of TMT Bars. The total cost of the
project is estimated at INR40 crore which is to be funded by
promoters' funds of INR15 crore and term loan of INR25 crore. The
plant will have a capacity of 1,25,000 metric tonnes per annum and
is expected to be commissioned by December 2014.


SANTPURIA ALLOYS: CRISIL Ups Rating on INR150MM Cash Loan to B+
---------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of
Santpuria Alloys Pvt Ltd (SAPL; part of the Mongia group) to
'CRISIL B+/Stable/CRISIL A4' from 'CRISIL D/CRISIL D'.

                         Amount
   Facilities           (INR Mln)      Ratings
   ----------           ---------      -------
   Bank Guarantee           30         CRISIL A4 (Upgraded from
                                       'CRISIL D')

   Cash Credit             150         CRISIL B+/Stable (Upgraded
                                       from 'CRISIL D')

   Letter of Credit         30         CRISIL A4 (Upgraded from
                                       'CRISIL D')

   Term Loan                65         CRISIL B+/Stable (Upgraded
                                       from 'CRISIL D')

The rating upgrade reflects timely repayment of debt by the Mongia
group following improvement in its liquidity. Improvement in the
Mongia group's liquidity is reflected in an increase in the
group's net cash accruals, which were at INR77 million in 2013-14
(refers to financial year, April 1 to March 31) against which the
group had debt obligations of INR42 million. Increase in accruals
has been due to improvement in the group's operating performance,
as reflected in its operating income of INR2.4 billion in 2013-14
as against INR2.12 billion during the previous year. This was
aided by improvement in the Mongia group's operating margin, which
increased to 7 per cent in 2013-14 from 3 per cent in 2012-13.
Furthermore, the group's working capital cycle has improved, as
reflected in gross current assets of 211 days as on March 31,
2014, against 222 days as on March 31, 2013.

The ratings reflect the Mongia group's large working capital
requirements. These rating weaknesses are partially offset by the
Mongia group's moderate business risk profile supported by
significant integration of operations and established brand image.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Mongia Steel Ltd (MSL) and SAPL. This
is because the two companies, together referred to as the Mongia
group, are under a common management, in similar line of business,
and have inter-company financial transactions. Moreover, there are
strong operational linkages between the two companies as SAPL
sells all its output to MSL.

Outlook: Stable

CRISIL believes that the Mongia group will benefit over the medium
term from the extensive experience of its promoters in the steel
industry. The outlook may be revised to 'Positive' if the group's
operating performance improves with improvement in operating
income and profitability and significant increase in cash
accruals, or if there is a substantial equity infusion by the
promoters. Conversely, the outlook may be revised to 'Negative' if
the group undertakes a sizeable debt-funded capital expenditure
programme, thereby weakening its capital structure, or if its
operating income and operating margin declines sharply.

SAPL, incorporated in 1983, manufactures sponge iron, around 90
per cent of which is sold to MSL. MSL manufactures steel products
such as ingots, thermo-mechanically treated bars, and other long
products.


SHREEJEE COTEX: CRISIL Assigns B- Rating to INR35MM Cash Credit
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term
bank facilities of Shreejee Cotex - Shahada (SC).

                         Amount
   Facilities           (INR Mln)      Ratings
   ----------           ---------      -------
   Cash Credit              35         CRISIL B-/Stable
   Term Loan                30         CRISIL B-/Stable

The rating reflects SC's nascent stage of operations in the highly
competitive cotton ginning industry, and its average financial
risk profile, with expectations of a leveraged capital structure
and below-average debt protection metrics. These rating weaknesses
are partially offset by the extensive experience of the firm's
partners in the cotton ginning and pressing industry.

Outlook: Stable

CRISIL believes that SC will continue to benefit over the medium
term from its partners' extensive industry experience. The outlook
may be revised to 'Positive' if the firm stabilises its operations
earlier than expected, leading to an improvement in its financial
risk profile. Conversely, the outlook may be revised to 'Negative'
if SC's revenue and profitability are lower than anticipated,
resulting in weakening of its financial risk profile, particularly
its liquidity.

SC was established in September 2014 by Mr. Ajay Goyal and his
family in Shahada (Maharashtra). The firm will be engaged in
cotton ginning and pressing, with operations expected to commence
by the end of October 2014.


SIDDHESHWARI PAPER: CRISIL Assigns B Rating to INR49.5MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Siddheshwari Paper Mil (SPM).

                         Amount
   Facilities           (INR Mln)       Ratings
   ----------           ---------       -------
   Term Loan               49.5         CRISIL B/Stable
   Cash Credit             10           CRISIL B/Stable
   Proposed Long Term
   Bank Loan Facility      20.5         CRISIL B/Stable

The rating reflects SPM's start-up phase and modest scale of
operations in the highly competitive industrial paper industry,
and its large working capital requirements. These rating
weaknesses are partially offset by the SPM management's extensive
experience in the paper industry.

Outlook: Stable

CRISIL believes that SPM will benefit over the medium term from
its management's extensive industry experience. The outlook may be
revised to 'Positive' if SPM stabilises its operations on time,
leading to large cash accruals, or improves its working capital
cycle. Conversely, the outlook may be revised to 'Negative' if the
firm's accruals are low because of reduced order flow or
profitability, or if the firm's financial risk profile weakens
because of stretch in working capital cycle or large debt-funded
capital expenditure.

SPM, set up in 2013, will manufacture kraft paper. Its production
facility is in Palanpur (Gujarat) and has capacity of 9036 tonnes
per annum. SPM is likely to begin commercial operations in April
2015.


SUBHASH GUAR: CRISIL Ups Rating on INR60MM Cash Loan to 'B'
-----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Subhash Guar Gum Industry Pvt Ltd (SGL) to 'CRISIL B/Stable' from
'CRISIL B-/Stable'.

                         Amount
   Facilities           (INR Mln)      Ratings
   ----------           ---------      -------
   Cash Credit              60         CRISIL B/Stable (Upgraded
                                       from 'CRISIL B-/Stable')

   Term Loan                60         CRISIL B/Stable (Upgraded
                                       from 'CRISIL B-/Stable')

The rating upgrade reflects CRISIL's belief that SGL's business
risk profile will improve over the medium term, supported by the
sustenance of its increased scale of operations and improved
profitability because of higher utilisation of its current
capacities. The company's is expected to achieve moderate revenue
growth levels over the medium; its revenues increased to INR 1.1
billion in 2013-14 (refers to financial year, April 1 to March 31)
from INR130 million in 2012-13, supported by its diversified
customer base. The rating upgrade also factors in improvement in
SGL's financial risk profile, driven by steady cash accruals and
fresh equity infusion of INR20 million in 2013-14. CRISIL believes
that SGL's financial risk profile will remain moderate over the
medium term because of low working capital requirements and the
absence of any debt-funded capital expenditure (capex) plans over
the medium term.

The ratings reflect SGL's weak liquidity, low profitability, and
the start-up phase of its operations in the intensely competitive
guar gum industry. These rating weaknesses are partially offset by
the extensive industry experience of the company's promoters, and
its moderate financial risk profile.

Outlook: Stable

CRISIL believes that SGL will continue to benefit over the medium
term from its promoters' extensive industry experience and its
large customer base. The outlook may be revised to 'Positive' in
case of a significant increase in the company's scale of
operations leading to steady improvement in its cash accruals.
Conversely, the outlook may be revised to 'Negative' if SGL's
financial risk profile weakens, most likely because of a stretch
in its working capital cycle or any debt-funded capex.

SGL was set up in 2010-11 by Mr. Subhash Chander and his family
members. It manufactures guar gum powder at its facility in Sirsa
(Haryana). The company started commercial production in February
2013.


SUNDER ISPAT: CARE Assigns B+ Rating to INR8cr LT Bank Loan
-----------------------------------------------------------
CARE assigns 'CARE B+' & 'CARE A4' ratings to bank facilities of
Sunder Ispat Limited.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long term Bank Facilities       8        CARE B+ Assigned
   Short term Bank Facilities      5        CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Sunder Ispat
Limited are constrained by the small scale of current operations
and weak financial profile characterized by thin profitability and
nominal cash accruals, leveraged capital structure and stretched
debt coverage metrics. The ratings are further constrained by
vulnerability of the company's profitability to adverse
fluctuations in raw material prices coupled with intense
competition on account of the fragmented industry structure.

The ratings, however, derive strength from the long experience of
the promoters of over five decades and the company's established
track record of operations.

Going forward, the ability of the company to scale up its
operations and improve its profitability amidst the volatility in
raw material prices are the key rating sensitivities.

SIL was established in 1995 by Mr Mukund Lal Agarwal (the Managing
Director). The company is engaged in the manufacturing of thermo
mechanically treated bars, sponge iron and billets. The company is
presently managed by the managing director supported by his two
sons; Mr Vinay Kumar Agarwal and Mr Girish Kumar Agarwal who are
the directors of the company. The company's manufacturing unit is
located at Ranga Reddy District, Telangana, with an installed
capacity to manufacture 9,000 Metric Tonnes Per Annum (MTPA) of
TMT bars, 9,000 MTPA billets and 30,000 MTPA of sponge iron.

During FY14 (Provisional; refers to the period April 1 to
March 31), SIL reported a PAT of INR 0.65 crore on a total
operating income of INR78.62 crore as compared to a PAT of INR0.06
crore on a total operating income of INR44.38 crore in FY13.


SWATANTRA POWER: CARE Puts B+ Rating on INR11.5cr LT Bank Loan
--------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Swatantra Power Private Limited.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Long term Bank Facilities    11.50       CARE B+ Assigned
   Short term Bank Facilities    8.30       CARE A4 Assigned

Rating Rationale

The ratings assigned to the bank facilities of Swatantra Power
Private Limited are constrained on account of its modest scale of
operations, elongated operating cycle with high utilisation of
working capital limits, debt-funded capex with project
implementation risk, susceptibility of margins to volatility in
lead prices and presence in a competitive business segment.

The ratings, however, derive strength from the wide experience of
the promoters, robust growth in income on the back of better
capacity utilisation, moderate capital structure and favourable
industry prospects for power backup systems.

The ability of the company to complete the ongoing capex and
achieve the envisaged growth in revenue and profitability amidst
volatility in lead prices is the key rating sensitivity.

Pune-based, Swatantra Power Private Limited was incorporated in
February 2012 and is promoted by Mr Hemant Rohera. SPPL was
earlier known as Rohera Industries (RI), which was taken over by
SPPL in the year 2012. The company is engaged in the manufacturing
of batteries, invertors, uninterrupted power systems (UPS), power
savers and battery life enhancers. Products of the company include
grey oxide, red lead and various types of lead acid batteries in
different sizes and capacities primarily used in power back-up
systems and solar panels.

Since February 2014, the company ventured into trading of solar
panels, wherein batteries required in the panels are mnufcatured
in-house. Branded as "Helios", products of the company are sold
through 80 dealers and about 3500 distributors in Maharashtra,
Rajasthan, Gujarat, Madhya Pradesh, Karnataka, Andhra Pradesh,
Bihar, Uttar Pradesh and others. Raw material required for
manufacturing includes lead oxide, lead ingots, PP (polypropylene)
battery containers and transformers, which is sourced primarily
from the suppliers based in Maharashtra.

The company is currently undertaking capex of INR6 crore for
augmenting its manufacturing capacity for battery unit. The
capex is likely to be completed by November 2014.

During FY14(refers to the period April 1 to March 31), the company
warned PAT of INR0.01 crore on a total operating income of INR9.98
crore against PAT of INR 0.03 crore on a a total operating income
of INR3.18 crore in FY13.


VELAVAN STORES: CRISIL Rates INR200 Million Term Loan at 'B'
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Velavan Stores Jewellers (VSJ; part of the Velavan
group).

                         Amount
   Facilities           (INR Mln)       Ratings
   ----------           ---------       -------
   Term Loan                200         CRISIL B/Stable

The rating reflects the Velavan group's below-average financial
risk profile marked by high gearing, and its exposure to intense
competition in the retail industry. These rating weaknesses are
partially offset by the extensive experience of the Velavan
group's promoters and its established regional presence in the
retail segment.

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of VSJ, Velavan Stores (VS), and Velavan
Hyper Market (VH). This is because the three entities,
collectively referred to as the Velavan group, are in similar
lines of business and under the same management, and have
significant financial fungibility.

Outlook: Stable

CRISIL believes that the Velavan group will continue to benefit
over the medium term from its promoters' extensive experience in
the retail industry. The outlook may be revised to 'Positive' in
case of improvement in the group's financial risk profile through
greater than expected cash accruals or fund infusion by its
promoters. Conversely, the outlook may be revised to 'Negative' in
case of lower than expected cash accruals or stretch in working
capital requirements, resulting in deterioration in the group's
financial risk profile.

VS, established in 1998, is engaged in apparel retail. VSJ was
established in 2007 and is engaged in jewellery retail. VH was
established in 2014 and operates a supermarket in Tuticorin (Tamil
Nadu). The group's day-to-day operations are managed by Mr. T.
Maharajan.


VINTAGE DISTILLERS: CRISIL Assigns B+ Rating to INR120M Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Vintage Distillers Ltd (VDL).

                         Amount
   Facilities           (INR Mln)       Ratings
   ----------           ---------       -------
   Cash Credit             80           CRISIL B+/Stable
   Term Loan              120           CRISIL B+/Stable

The rating reflects, and VDL's average financial risk profile
marked by large on-going capital expenditure and average capital
structure, low profitability and susceptibility to adverse
regulatory changes in the distilleries industry. These rating
weaknesses are partially offset by the benefits that VDL derives
from its established regional presence as well as the healthy
growth prospects for the industry.

Outlook: Stable

CRISIL believes that VDL will maintain its credit risk profile,
backed by its established regional presence in the distilleries
industry. The outlook may be revised to 'Positive' if VDL
commences and stabilises its on-going capex leading to
significantly better-than-expected cash accruals, while
maintaining its capital structure. Conversely, the outlook may be
revised to 'Negative' if any regulatory changes adversely impact
the company's revenues or profitability, or VDL's financial risk
profile deteriorates owing to a larger-than-expected, debt-funded
capital expenditure programme.

VDL, incorporated in 1988, is promoted by the Jain family. VDL
manufactures country liquor and sells under the 'Dholamaru'  and
'Lovelyline' brands. Its manufacturing facility is at Alwar
(Rajasthan).

VDL, on provisional basis, reported net sales of INR1002.1 million
in 2013-14 (refers to financial year, April 1 to March 31). For
2012-13, VDL reported a net loss of INR0.9 million on net sales of
INR681.5 million, against a profit-after-tax and net sales of
INR7.5 million and INR953.4 million, respectively, in 2011-12.


VTC ESTATES: CRISIL Reaffirms 'B' Rating on INR61.1MM Term Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of VTC Estates
(VTC) continues to reflect VTC's small scale of operations, with
limited track record, and exposure to competition and economic
downturns in the hospitality industry. These rating weaknesses are
partially offset by the funding support extended to VTC by its
partners, and the strategic location of its hotel.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit           5         CRISIL B/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility   13.9       CRISIL B/Stable (Reaffirmed)

   Term Loan            61.1       CRISIL B/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that VTC will continue to benefit over the medium
term from funding support from its partners. The outlook may be
revised to 'Positive' in case the firm generates higher-than-
expected cash accruals, led by significant increase in occupancy
at its hotel. Conversely, the outlook may be revised to 'Negative'
in case VTC faces continued pressure on its cash accruals, thereby
weakening its liquidity further.

Update
VTC's overall business risk profile has been below CRISIL's
expectations, as reflected in the firm's lower-than-expected
operating income of INR29 million for 2013-14 (refers to financial
year, April 1 to March 31). VTC's lower-than-expected operating
income was primarily because of intense competition from hotels
operating in the region resulting in dip in average room rent
(ARR) to INR3500 for 2013-14 vis-a -vis levels of around INR4000
in 2012-13. However VTC's operating margin of 41.7 per cent in
2013-14 was higher than CRISIL's expectations, on account of
higher occupancy rates of around 80 per cent along with efficient
cost management. Consequently, this resulted in net cash accruals
of the firm improving to around INR11 million in 2013-14 as
compared to around INR8 million in 2012-13. CRISIL believes that
VTC's overall business risk profile will remain stable over the
medium term, backed by sustenance of occupancy rates.

VTC's capital structure improved in 2013-14, with gearing reducing
to 0.28 times as on March 31, 2014 from the previous year's level
of around 1.05 times, driven by infusion of funds by promoters to
enable prepayment of term debt obligations. However, VTC's overall
cash accruals remain tightly matched against its term debt
repayments. As a result, the firm has been highly dependent on
financial support from its promoters to service its debt on time.
CRISIL believes that VTC's liquidity will remain weak, marked by
tightly matched cash accruals against term debt repayments, over
the near term.
About the Firm

Established in August 2008 as a partnership firm, VTC owns and
operates a 3-star hotel called The TOY Hotel in Chandigarh
(Punjab). The hotel has 25 rooms, which include five designer
suites. Facilities offered by the hotel include a restaurant, two
banquet halls, a bar and a lounge.


YAMA ENTERPRISE: CRISIL Reaffirms 'D' Rating on INR76.3MM Loan
--------------------------------------------------------------
CRISIL 's rating on the long-term bank facilities of Yama
Enterprise Pvt Ltd continues to reflects delays in payment of
interest and installments on project cash credit availed of by
Yama for undertaking a residential real estate project in Gangtok
(Sikkim). The delays have been on account of weak liquidity.
The rating continues to reflect risks related to implementation
and offtake of its ongoing projects. This is partially offset by
its promoter's extensive experience in the real estate and
construction business.

                         Amount
   Facilities           (INR Mln)      Ratings
   ----------           ---------      -------
   Cash Credit             76.3        CRISIL D (Reaffirmed)

Update
Yama was sanctioned project cash credit of INR     76.3 million
for its residential complex project 'Yama- Green Residency' in
Gangtok, Sikkim. The account was restructured in March-2014. The
company has delayed the repayment obligations of its project cash
credit limits since August-2014. The delays are primarily driven
by weak liquidity position as the company is yet to receive
bookings for the project.

Yama, promoted by Mr. Thukchuk Lachungpa, was incorporated in
1988. It commenced commercial operations in 2006. The company
undertakes real estate development and property management in
Gangtok.



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


ISABEL ESTATE: Woolworths Unit Buys New Zealand Wine Company
------------------------------------------------------------
The Marlborough Express report that Pinnacle Drinks, a subsidiary
of Woolworths Ltd, are the new owners of Marlborough wine company
Isabel Estate Vineyard on Hawkesbury Rd in Renwick.

Family-owned Isabel Estate Vineyard and two other entities, Isabel
Estate Partnership and Shelby Estate Ltd, which together trade as
Isabel Estate, went into receivership in July after racking up
more than NZ$12.4 million in debt, The Marlborough Express
relates.

According to the report, a Woolworths spokeswoman said Pinnacle
Drinks was in the final stage of acquiring Isabel Estate. The
purchase, subject to Overseas Investment Office approval, included
all existing elements of Isabel Estate, including its inventory.

"Purchasing a respected Marlborough-based winemaking operation
will expand opportunities for Pinnacle in the Australian wine
market. The acquisition also represents an opportunity for us to
establish a base in Marlborough."

The spokeswoman said Pinnacle Drinks bought the wine brand to
strengthen its relationships with growers and show its commitment
to the region, the report relates.

Pinnacle Drinks winemaker Corey Ryan, of Dorrien Estate Winery in
South Australia, would oversee operations, she said, the report
adds.

Receivers John Fisk and Richard Longman of PwC were appointed as
receivers of family-owned vineyard, Isabel Estate Vineyard on July
2, 2014.  The company is owned by Michael and Robyn Tiller, who
established it in 1982.



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


PUERTO AZUL: High Court Upholds Decision Approving Rehab Plan
-------------------------------------------------------------
BusinessWorld Online reports that the developer of the Puerto Azul
seaside estate in Cavite can proceed with its rehabilitation plan,
the Supreme Court has ruled, reversing an appellate court decision
that sided with the resort developer's creditors.

In its Sept. 17 ruling released to media on November 2, the high
court's first division said it finds in favor of the Puerto Azul
Land, Inc. (PALI), the report says.

Regulatory filings with the Securities and Exchange Commission
show Rebecco E. Panlilio and his family as the incorporators of
PALI, BusinessWorld Online discloses.

According to the report, listed company Boulevard Holdings, Inc.,
also headed by the Panlilio group, began talks last year with
property giant Ayala Land, Inc. for the sale of Puerto Azul -- a
sprawling mountainous beach-golf resort and country club in
Ternate, Cavite -- but last month, Ayala Land said it is no longer
pursuing the deal.

BusinessWorld says the Supreme Court's Sept. 17 decision reverses
a 2008 ruling by the Court of Appeals (CA) that favored PALI's
creditors -- proxies of the now defunct Equitable PCI Bank (which
merged with BDO Unibank, Inc.) and Export and Industry Bank.

PALI creditors took the case to the appellate court after a Manila
trial court approved in 2005 the rehabilitation plan of the Puerto
Azul developer, the report recalls.

PALI owed PHP640 million at the time, the report notes. According
to BusinessWorld, PALI sought rehabilitation on Sept. 14, 2004
after its finances wobbled, citing as reasons the Philippine Stock
Exchange's denial for it to raise more capital through an initial
public offering; the 1997 Asian financial crisis that depressed
real estate values; and the real estate bubble burst.

BusinessWorld says creditors objected to the rehabilitation plan,
which included among others a 50% haircut on PALI's principal
obligation, as well as the condonation of penalties and interests.

"We find nothing erroneous in the terms of PALI's rehabilitation.
The Interim Rules on Corporate Rehabilitation provides for means
of execution of the rehabilitation plan," the high court, as cited
by BusinessWorld, said.

The Supreme Court also said that the restructuring of the debts of
Puerto Azul Land is "part and parcel" of its rehabilitation, the
report adds.

"Per findings of the RTC (regional trial court) and as affirmed by
the CA, the restructuring of debts of PALI would not be
prejudicial to the interest of PWRDC as a secured creditor," the
high court said, referring to Pacific Wide Realty Development
Corp. (PWRDC), the creditors' proxy, BusinessWorld relays.



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


* SOUTH KOREA: Banks' Loan Delinquency Rate Edges Down in Sept.
---------------------------------------------------------------
Yonhap News reports that the delinquency rate on loans extended by
South Korean banks inched down in September from the previous
month, the financial watchdog said on October 30.

According to the report, the Financial Supervisory Service (FSS)
said the combined delinquency rate of loans stood at 0.86 percent
at the end of September, down 0.1 percentage point from a month
earlier.

The decline came as the amount of cleared bad debts, worth
KRW3.1 trillion (US$2.94 billion) outpaced fresh bad loans worth
KRW2 trillion during September, the report relates.

Yonhap says the delinquency rate of both corporate and household
loans decreased. The overdue rate for corporate loans fell 0.08
percentage point to 1.07 percent, with household loans retreating
0.12 percentage point to 0.59 percent, the report relays.

The outstanding amount of won-dominated loans stood at
KRW1.22 quadrillion as of end-September, up KRW8.3 trillion, or
0.7 percent from the previous month, according to Yonhap.

The watchdog said those extended to households reached
KRW500.2 trillion, up KRW4.3 trillion over the cited period, while
corporate loans added KRW2.7 trillion to KRW696.4 trillion, adds
Yonhap.



=============
V I E T N A M
=============


VIETNAM: Fitch Ups IDR to 'BB-'; Outlook Stable
-----------------------------------------------
Fitch Ratings has upgraded Vietnam's Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) to 'BB-' from 'B+'. The
Outlook is revised to Stable from Positive.

The issue ratings on Vietnam's senior unsecured foreign and local
currency bonds are also upgraded to 'BB-' from 'B+'. The Country
Ceiling is upgraded to 'BB-' from 'B+' and the Short-Term Foreign
Currency IDR is affirmed at 'B'.

KEY RATING DRIVERS

The upgrade of Vietnam's IDR to 'BB-' reflects the following key
rating drivers:

- Improved Macroeconomic Stability: Vietnam's macroeconomic policy
mix has moved towards policies aimed at achieving macroeconomic
stability. The State Bank of Vietnam has tightened its monetary
stance, contributing to a slowdown in credit growth to a projected
12% in 2014 from 32% in 2010. Real GDP growth has remained
relatively strong at a three-year average of 5.6% against a 'BB'
range median of 3.7%. Inflation has moderated to 3.2% as of
October 2014, down from an average of 6.6% in 2013. High savings
and investment rates compared with peers support growth prospects.

- Stronger External Balances: Macroeconomic stabilisation has
contributed to a sharp turnaround in the current account from a
deficit of 3.7% in 2010 to a projected surplus of 4.1% in 2014.
Vietnam is now on track to report its fourth consecutive year of
current account surpluses, driven by strong export growth and
remittances. Consistent net FDI inflows averaging 4.5% of GDP over
2011-13 have contributed to balance of payments surpluses and
modest foreign reserve accumulation. Net external debt of 14% of
GDP is in line with the 'BB' median of 16%.

Our revised rating assessment continues to incorporate the
following factors:

- Contingent Risks Large, Yet Manageable: Vietnam's contingent
liabilities are high, but not high enough to keep it at 'B+'.
Fitch's latest assessment of the degree of contingent liability
facing the sovereign from debts in the banking and state-owned
enterprise (SOE) sectors is not inconsistent with a rating in the
'BB' category.

- Rising Public Indebtedness: Vietnam's public debt stock is high
compared to peers. Persistent fiscal deficits and off-budget
expenditures will result in direct government debt rising to an
estimated 44% of GDP in 2014 (versus a 'BB' median of 39%). Recent
fiscal policy decisions, such as cutting corporate tax rates, may
lead to further deterioration in government debt ratios. Vietnam
lacks a formal medium-term fiscal framework, although the
authorities have articulated policy goals of reducing the budget
deficit by 2020 and of observing a 65% ceiling for the debt-to-GDP
ratio. The country's relatively modest sovereign external debt
service burden is driven by the fact that approximately 94% of
sovereign external debt is concessionary in nature.

- Thinly Capitalized Banking Sector: Fitch believes stricter
classification of NPLs would reveal under-capitalisation of the
banking sector. Banks officially report NPLs of approximately
4.2%, while other estimates range from 9% (State Bank of Vietnam)
to 15% (Fitch). If the true NPL ratio were 15%, Fitch estimates
the banking sector's equity capital base could fall to US$10bn
from US$32bn.

- Unconvincing SOE Reform: Aggregate SOE debt is high at
approximately 42% of GDP, and proposed reforms to the sector are
too cautious to impact our view of contingency risk. The
equitization program - a plan to restructure state-owned companies
- will keep the government as the controlling shareholder (greater
than 50% stake) across a large number of industry groups, and
Fitch remains sceptical that the government is prepared to see
through material improvements to efficiency and corporate
governance.

- Vietnam's levels of average income, measured in either market
exchange rates or purchasing power parity, remain well below the
'B' and 'BB' peer rating group medians.

Rating Sensitivities

The Stable Outlook reflects Fitch's assessment that upside and
downside risk to the rating are well balanced.

The main factors that individually, or collectively, could trigger
positive rating action are:

- A commitment to rein in fiscal deficits, contributing to an
improved outlook for government debt ratios.

- Greater transparency into the full scale of contingent
liabilities, including increased disclosure pertaining to the
banking and SOE sectors.

- Progress in banking sector reform.

The main factors that individually, or collectively, could trigger
negative rating action are:

- A move away from the current macroeconomic policy mix aimed at
achieving macroeconomic stability, low and stable inflation, and
external equilibrium.

Key Assumptions

- Fitch assumes the problems in Vietnam's banking system do not
crystallise in a manner that would disrupt economic or financial
stability, or lead to an immediate large requirement for sovereign
resources.

- No escalation of regional or geopolitical disputes to a level
that disrupt trade and financial flows.

- Global economic conditions broadly in line with Fitch's recent
"Global Economic Outlook".


VIETNAM NATIONAL: Vietcombank Sells $19-Mil. Debt to DATC
---------------------------------------------------------
Biz Hub, citing the tinnhanhchungkhoan.vn news website, reports
that Vietcombank has successfully sold off the US$19-million debt
of Vietnam National Shipping Lines (Vinalines) to Vietnam Debt and
Asset Trading Corporation (DATC).

Vinalines borrowed the money from Vietcombank when it purchased
Vinalines Sky vessel for more than US$35 million in 2007, Biz Hub
notes.

According to the report, Vietcombank had agreed to have this loan,
which is due this year, reconstructed once, but Vinalines failed
to pay because of financial difficulties.

Biz Hub notes that Vinalines has been preparing for its parent
company's equitisation in the second quarter of 2015 in line with
the Government's directive. It has also negotiated with
Vietcombank on numerous occasions for a second loan restructuring,
the report relates.

To support Vinalines in its corporate restructuring plan and help
banks and credit institutions revoke loans from this business, the
Government has assigned the DATC to buy the debts of Vinalines,
according to Biz Hub.

Vietcombank is the first one to implement this method, the report
notes. The sale of the debt to the DATC is seen as a success for
Vietcombank, which was able to collect on a huge debt from a
difficult business such as Vinalines at this stage, says Biz Hub.

According to the report, Vinalines has proposed that the
Government refrain from collecting additional paid-in capital
raised from its initial public offerings of sea ports, which will
be launched by the end of this year.

If the Government approves the proposal, the paid-in capital will
serve as a financial source for the DATC to buy Vinalines' debts
and an opportunity for banks to revoke debts from this business,
adds Biz Hub.

Vietnam National Shipping Lines engages in port and marine
businesses. Vinalines was founded in 1995 and is based in Ha Noi,
Vietnam with branches in Hai Phong City, Ho Chi Minh City, HaNoi,
CanTho city, and Nha Trang City, Vietnam; and Southpoint,
Singapore.



                             *********

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.


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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 202-362-8552.



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