TCRAP_Public/150304.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

           Wednesday, March 4, 2015, Vol. 18, No. 044


                            Headlines


A U S T R A L I A

AUSDRILL LIMITED: Moody's Cuts CFR to 'B1', Outlook Negative
ECABLES PTY: Goes Into Liquidation
FIRSTMAC BOND 2-2005: Fitch Affirms BBsf Rating on Class B Notes
GOW CONSTRUCTION: First Creditors' Meeting Set For March 11
MAPLE PROPERTIES: First Creditors' Meeting Set For March 12

N P C INDUSTRIES: First Creditors' Meeting Slated For March 11
PEABODY ENERGY: Fitch Cuts Issuer Default Rating to 'B'
SUMMERLAND OLIVE: First Creditors' Meeting Set For March 11
TAMMA GRAINS: Placed Into Receivership


C H I N A

CHINA SHANSHUI: Fitch Rates Proposed US$ Sr. Unsecured Notes BB
PIONEER IRON: Intends to Declare Final Dividend to Creditors
TIANYIN PHARMA: Receives NYSE MKT Listing Non-Compliance Notice
TIMES PROPERTY: Fitch Assigns B+ Rating to Proposed US$ Sr. Notes
TIMES PROPERTY: S&P Assigns 'B' Rating to Proposed US$ Sr. Notes

WINLAND OCEAN SHIPPING: Meeting of Creditors Set for April 14
* CHINA: Dangerously Close to Slipping Into Deflation


I N D I A

ADIG JEMTEX: ICRA Assigns B+ Rating to INR5.5cr Term Loan
B.S. INDUSTRIES: CRISIL Reaffirms B+ Rating on INR50MM Loan
CAPITAL OVERSEAS: CRISIL Assigns B+ Rating to INR125MM Cash Loan
D C METALS: ICRA Upgrades Rating on INR30cr Fund Based Loan to B
DAYANAND COTTON: CRISIL Reaffirms B- Rating on INR50MM Cash Loan

DEV RAJ: CRISIL Reaffirms B- Rating on INR97.5MM Term Loan
ECO LITE: ICRA Reaffirms D Rating on INR11.16cr LT Loan
ELTEL POWER: ICRA Reaffirms B Rating on INR49cr Non-FB Bank Loan
FLOOR GARDENS: CRISIL Rates INR47.5MM Export Packing Loan at B
FREEZE ENGINEERING: CRISIL Rates INR75MM Export Packing Loan B+

GANESHPRASAD IMPEX: ICRA Reaffirms B Rating on INR2cr Cash Loan
GRAFFITI CLOTHING: CRISIL Lowers Rating on INR105MM Loan to B+
HOME ASSOCIATES: CRISIL Cuts Rating on INR97.5MM LT Loan to B
JINDAL RICE: ICRA Assigns B- Rating to INR23.06cr LT Loan
KTC CARS: CRISIL Reaffirms B Rating on INR50MM Long Term Loan

M.S.KAARTHIKEYAN: CRISIL Ups Rating on INR52.5MM Term Loan to B+
MEHALA CARONA: CRISIL Cuts Rating on INR234.9MM Cash Loan to D
NAMRATA PROMOTERS: CRISIL Reaffirms B+ Rating on INR100MM Loan
PATEL WOOD: ICRA Reaffirms B Rating on INR4.5cr Cash Credit
PROVIDENCE TEXTILES: ICRA Assigns B Rating to INR8cr Cash Credit

PURUSHOTTAM JAIRAM: CRISIL Assigns C Rating to INR25MM Cash Loan
R D ENGINEERS: CRISIL Reaffirms B- Rating on INR50MM Cash Credit
RADHESHYAM SPINNING: ICRA Reaffirms B+ Rating on INR22.5cr Loan
RAJHANS COLD: ICRA Suspends B- Rating on INR2.5cr Cash Credit
RELIANCE COMMUNICATIONS: Fitch Assigns 'BB-' Local Currency IDR

RUDHRAYAN POLYESTERS: CRISIL Puts B+ Rating on INR49MM Cash Loan
SAHARA GROUP: Sebi Cancels Unit's Portfolio Management License
SAKTHI TRADERS: CRISIL Assigns B Rating to INR52.5MM Cash Credit
SARWATI HOME: CRISIL Assigns B Rating to INR47.6MM Cash Credit
SHARDA TIMBERS: ICRA Rates INR5.85cr Fund Based Loan at B+

SHINDE DEVELOPERS: CRISIL Reaffirms D Rating on INR450MM Loan
SM EBERSPAECHER: CRISIL Reaffirms B- Rating on INR100MM Loan
SONY FIREWORKS: CRISIL Reaffirms B+ Rating on INR62.5MM Loan
SPICEJET LTD: No 'Overlaps' in SpiceJet-Singh Deal, CCI Says
SRI DURAIAPPA: ICRA Assigns B Rating to INR11cr LT Loan

SRI JAGDAMBA: CRISIL Cuts Rating on INR500MM Cash Loan to D
SYSTEM 5S: CRISIL Rates INR15MM New Working Capital Loan at B+
VARDHMAN RICE: CRISIL Ups Rating on INR100MM Cash Loan to B+
VINAYAGA FIREWORKS: CRISIL Reaffirms B+ Rating on INR70MM Loan
VINAYAGA FIREWORKS: CRISIL Reaffirms B+ INR55MM Cash Loan Rating

VOHRA FOODS: CRISIL Assigns B+ Rating to INR80MM Cash Loan
WATTSUN ENERGY: ICRA Puts SP 3D Grading on Weak Fin'l Strength


J A P A N

* JAPAN: 1,726 Business Failures Linked to March 2011 Disasters


N E W  Z E A L A N D

SOLID ENERGY: Lenders Could Face More Losses on Loans
SOLID ENERGY: Government Resisting Pressure to Inject More Cash


T H A I L A N D

TMB BANK: Fitch Keeps 'BB+' Support Rating Floor


                            - - - - -


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A U S T R A L I A
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AUSDRILL LIMITED: Moody's Cuts CFR to 'B1', Outlook Negative
------------------------------------------------------------
Moody's Investors Service downgraded Ausdrill Limited's corporate
family rating (CFR) to B1 from Ba3.  At the same time, Moody's
have downgraded the senior unsecured rating of Ausdrill Finance
Pty Ltd to B2 from B1.  The outlook on all ratings is negative.

"The downgrade in the ratings reflect the continued challenging
conditions for mining services companies and which is leading to
Ausdrill's credit profile deteriorating to a level that is no
longer consistent with the previous rating", says Saranga
Ranasinghe, a Moody's Analyst.

"Our expectation is that operating conditions for mining services
companies will remain weak through 2016 as mining companies will
continue to focus on cost saving programs and the deferral of non-
essential capital expenditure, increasing uncertainty around
Ausdrill's ability to improve earnings and delever." adds
Ranasinghe.

Prices for iron ore which represents around 20% of Ausdrill's
revenue are trading at very weak levels due to poor fundamentals,
and we do not expect a material improvement in the near term.  At
the same time, we do not expect a material increase in gold
exploration and production activity in the next 12 months as
investor sentiment remains weak.

"We expect Ausdrill's financial leverage, as represented by the
ratio of adjusted debt-to-EBITDA to be between 4.0x-4.5x for the
financial year ending 30 June 2015, compared to the 3.25x
threshold set for the previous rating" says Ranasinghe.

The negative outlook reflects these concerns and our view that
there could be risk to the downside with potential contract
deferrals and/or cancellations.

The company's focus on debt reduction, combined with normalizing
mining activities, should mitigate some of the earnings pressure
in the coming year.  However, Moody's does not expect its credit
metrics to improve materially.

Moody's expects Ausdrill to maintain sufficient liquidity over the
next 12 months, supported by its cash balances, undrawn credit
facilities and reduced capital expenditure.

Downward rating pressure could emerge if operating conditions
deteriorate beyond Moody's expectations or if the company is
unable to reduce its debt, as indicated by debt-to-EBITDA above
4.25x.

In addition, negative rating actions could occur if the company is
unable to comply with the covenants in its syndicated facilities.

On the other hand, the outlook could revert to stable if Ausdrill
secures new contracts and increases revenue and earnings, such
that gross adjusted debt-to-EBITDA remains comfortably below 3.25x
on a consistent basis.

The principal methodology used in these ratings was Business and
Consumer Service Industry published in December 2014.

Ausdrill Limited was established in 1987 as a drill and blast
company in the Australian mining services sector.  It has since
expanded into a vertically integrated provider of mining services
to the resources industry in Australia and Africa, with in-house
capabilities in manufacturing, logistics and supply.


ECABLES PTY: Goes Into Liquidation
----------------------------------
Electrical Engineering News reports that the Approved Cables
Initiative (ACI) is reporting more trouble in the Australian
electrical supply chain as a new product recall has resulted in
the collapse of another cable importer.

The collapse of Ecables Pty may leave contractors and building
owners having to fund the removal of dangerous cabling products
themselves, according to Electrical Engineering News.   So
concerned is Master Electricians Australia (the country's
equivalent to the Electrical Contractors' Association) that it is
calling for urgent reform of electrical product safety
certification, the report notes.

The report relates that Ecables Pty was placed into liquidation
after Energy Safe Victoria ordered a full recall of its ECABLES
brand Copper Clad Aluminium RE 110 insulated power cables.
Independent testing found the cables failed to meet the required
standard and that insulation melted at less than half the
temperature they were rated to withstand, the report relates.

"The faulty cables presented a serious risk of fire or electrical
shock.  The company's collapse was bad news for building owners
and electrical contractors who installed the cable and may now be
required to remove it.  It also creates great uncertainty as to
how the cost of the removal and replacement of dangerous cable
will be funded," the report quoted Master Electricians Australia
state manager for Victoria, Simon Tengende, as saying.

"This underlines the importance of choosing reputable tradespeople
and insisting on quality products.  We encourage our members to
carry insurance to cover the cost of recalls and urge them only to
source products from reputable manufacturers and suppliers who
have the financial strength to meet the cost of product recalls,"
Mr. Tengende continued, the report notes.

This latest incident follows a national recall of Infinity and
Olsent brand electrical cables last year and highlights a
potential problem with the certification process in Australia
which allows importers or manufacturers to self-assess their
compliance with standards, the report relates.

"This is an issue that we are following very closely in the UK.
Earlier this month we questioned UK distributors and importers
awareness of their responsibilities under the revised Low Voltage
Directive (2014/35/EU).  The recently recast Directive highlights
clear responsibilities and we want to make sure that those in the
cable supply chain are fully aware of what they need to be doing
to ensure compliance," a spokesperson for the ACI said, the report
relays.  "It's also important for UK contractors to be more
watchful in their purchasing decisions and to consider the peace
of mind only buying third party approved cable provides."

"We believe by urging its members to only purchase from reputable
manufacturers, the Master Electricians Australia may be able at
avert a further cable recall.  These are valuable messages for UK
contractors to take note of," continued the ACI, the report
discloses.

Following last year's recall of Infinity and Olsent-branded
electrical cable,  a regulatory task force established by the
Australian Competition and Consumer Commission (ACCC), the UK's
Office of Fair Trading equivalent in Australia, estimated the
average cost of fully rewiring affected households could be $4000,
taking the total clean-up bill to as much as $160 million (GBP88
million), the report adds.


FIRSTMAC BOND 2-2005: Fitch Affirms BBsf Rating on Class B Notes
----------------------------------------------------------------
Fitch Ratings has affirmed 38 classes of notes issued through 14
FirstMac RMBS transactions and has also affirmed FirstMac Mortgage
Funding Trust Series 1E-2007's Class A-1 notes' currency swap
obligation.  All transactions are backed by pools of conforming
Australian residential mortgages sourced directly or by way of
third-party introducers. The mortgages were originated in the name
of nominee companies on behalf of the trustee, FirstMac Fiduciary
Services Pty Ltd, and sold to the various trusts through FirstMac
warehouses.

KEY RATING DRIVERS

The affirmations reflect Fitch's view that available credit
enhancement supports the notes at their current ratings, the
agency's expectations of Australia's economic conditions, and that
the credit quality and performance of the underlying loans have
remained within the agency's expectations.

All transactions are paying down on a sequential basis with
principal collections being allocated to the senior notes with the
exception of FirstMac Bond Series 1C-2006, FirstMac Mortgage
Funding Trust Series 1E-2007, FirstMac Mortgage Funding Trust
Series 1-2010, and the Class A and AB notes in FirstMac Bond
Series 2-2005 Trust and FirstMac Mortgage Funding Trust Series 1-
2007 which are currently paying pro-rata. The amortisation of the
notes has resulted in improvements in credit enhancement since
closing.

As at end-December 2014, 30+ days arrears ranged between 0.05% for
FirstMac Mortgage Funding Trust Series 2E-2013 and 4.3% for
FirstMac Bond Series 2-2005 Trust. Since closing, across the 14
Firstmac transactions rated by Fitch, 199 loans have defaulted,
resulting in zero losses across the outstanding Fitch rated notes.
Lenders' mortgage insurance (LMI) has covered 86% of the principal
shortfall, with the remainder being covered by excess spread or by
the originator. No performance data has been received to date for
FirstMac Mortgage Funding Trust No.4 Series 3PP-2014, which was
issued on 17 December 2014.

The reported weighted average (WA) current loan-to-value ratio
(LVR) ranged from 57.7% (FirstMac Mortgage Funding Trust Series
1E-2007) to 74.8% (FirstMac Bond Series 1C-2006). FirstMac Bond
Series 2-2005 Trust benefitted the most from indexation with WA
LVR improving to 56.26%, down from 68.11%. FirstMac Mortgage
Funding Trust Series 1E-2007 recorded the lowest indexed WA LVR at
48.4%.

The pools contain a significant portion of loans collateralised by
investment properties, ranging from 38.4% (Firstmac Mortgage
Funding Trust No. 4 Series 3-PP-2014) to 67.3% (FirstMac Mortgage
Funding Trust Series 1-2007). The portion of interest-only loans
is also relatively high, ranging from 28.7% (FirstMac Bond Series
2-2005) to 72.9% (FirstMac Bond Series 1C-2006).

All transactions have LMI provided by one or more of the following
insurers: QBE Lenders' Mortgage Insurance Limited (Insurer
Financial Strength rating: AA-/Stable); or Genworth Financial
Mortgage Insurance Pty Ltd (Insurer Financial Strength rating:
A+/Stable). No transactions have experienced any losses to date.

RATING SENSITIVITIES
The sequential pay-down has improved credit enhancement for senior
notes, especially for well-seasoned transactions. As at end-
December 2014, the senior notes could withstand multiples of
latest-reported arrears. Class A notes remain independent of a
downgrade to the LMI provider's rating. Class AB notes of recently
originated transactions remain sensitive to any change in the LMI
provider's ratings.

The 'AAAsf' modelled loss severities after LMI ranged between 22%
and 37%, with the senior notes of each transaction able to
withstand default rates of between 1% and 100%, with LMI, at the
current modelled 'AAAsf' loss severities levels. This analysis
excludes credit to excess spread, which has been strong and stable
in each of the transactions. As a result, Fitch considers that the
likelihood of any of the notes currently rated 'AAAsf' being
downgraded remote.

The ratings of the Fitch-rated Class B notes are unlikely to see
negative ratings action unless excess spread levels reduce
dramatically, or FirstMac does not call transactions.

The 'F1+sf' rating of FirstMac Mortgage Funding Trust No.4 Series
1A-2014's Class A-2A notes is linked to the Short-Term rating of
National Australia Bank Limited (AA-/Stable/F1+).

Fitch's key rating drivers and rating sensitivities are further
discussed in the new issue reports listed under 'Related
Research', and available on www.fitchratings.com. Included as
appendices to the reports are descriptions of the representations,
warranties, and enforcement mechanisms.

The full list of rating actions is as follows:

FirstMac Bond Series 2-2005 Trust:

AUD56.8 million Class A1 notes (ISIN AU300FMA5015) affirmed at
'AAAsf'; Outlook Stable;
AUD3.2 million Class AB notes (ISIN AU300FMA5023) affirmed at
'AAAsf'; Outlook Stable; and
AUD16.5 million Class B notes (ISIN AU300FMA5031) affirmed at
'BBsf'; Outlook Stable.

FirstMac Bond Series 1E-2006 Trust:

EUR48.1 million Class A notes (ISIN XS0250012498) affirmed at
'AAAsf'; Outlook Stable; and
AUD50.5 million Class B notes (ISIN AU300FMA9017) affirmed at
'BBsf'; Outlook Stable.

FirstMac Bond Series 1C-2006:
AUD103.8 million Class A notes (ISIN AU3FN0010708) affirmed at
'AAAsf'; Outlook Stable.

FirstMac Mortgage Funding Trust Series 1-2007:
AUD109.4 million Class A notes (ISIN AU0000FMAHA0) affirmed at
'AAAsf'; Outlook Stable;
AUD13.4 million Class AB notes (ISIN AU3FN0001889) affirmed at
'AAAsf'; Outlook Stable; and
AUD27.0 million Class B notes (ISIN AU3FN0001897) affirmed at
'BBsf'; Outlook Stable.

FirstMac Mortgage Funding Trust Series 1E-2007:
EUR46.1 million Class A1 notes (ISIN XS0305486127) affirmed at
'AAAsf'; Outlook Stable;
Class A-1 Currency Swap Obligation affirmed at 'AAAsf'; Outlook
Stable;
AUD124.6 million Class A2 notes (ISIN AU3FN0003026) affirmed at
'AAAsf'; Outlook Stable; and
AUD13.2 million Class B notes (ISIN AU3FN0003018) affirmed at
'BBsf'; Outlook Stable.

FirstMac Mortgage Funding Trust Series 1-2010:
AUD4.9 million Class A-2 notes (ISIN AU3FN0011433) affirmed at
'AAAsf'; Outlook Stable;
AUD173.7 million Class A-3 notes (ISIN AU3FN0011441) affirmed at
'AAAsf'; Outlook Stable; and
AUD23.6 million Class AB notes (ISIN AU3FN0011458) affirmed at
'AAAsf'; Outlook Stable.

FirstMac Mortgage Funding Trust Series 2-2011:
AUD84.2 million Class A-2 notes (ISIN AU3FN0014775) affirmed at
'AAAsf'; Outlook Stable;
AUD87.7 million Class A-3 notes (ISIN AU3FN0014783) affirmed at
'AAAsf'; Outlook Stable; and
AUD11.7 million Class AB notes (ISIN AU3FN0014791) affirmed at
'AAAsf'; Outlook Stable.

FirstMac Mortgage Funding Trust Series 1-2012:
AUD36.2 million Class A-1 notes (ISIN AU3FN0016127) affirmed at
'AAAsf'; Outlook Stable;
AUD131.1 million Class A-2 notes (ISIN AU3FN0016135) affirmed at
'AAAsf'; Outlook Stable; and
AUD13.4 million Class AB notes (ISIN AU3FN0016143) affirmed at
'AAAsf'; Outlook Stable.

FirstMac Mortgage Funding Trust RMBS Series 3-2012:
AUD187.6 million Class A-1 notes (ISIN AU3FN0017570) affirmed at
'AAAsf'; Outlook Stable;
AUD73.0 million Class A-2 notes (ISIN AU3CB0203313) affirmed at
'AAAsf'; Outlook Stable; and
AUD18.5 million Class AB notes (ISIN AU3FN0017588) affirmed at
'AAAsf'; Outlook Stable.

FirstMac Mortgage Funding Trust Series 1E-2013:
AUD172.8 million Class A-1 notes (ISIN AU3FN0019436) affirmed at
'AAAsf'; Outlook Stable;
GBP92.0 million Class A-2 notes (ISIN XS0942504639) affirmed at
'AAAsf'; Outlook Stable; and
AUD22.0 million Class AB notes (ISIN AU3FN0019279) affirmed at
'AAAsf'; Outlook Stable.

FirstMac Mortgage Funding Trust Series 2E-2013:
AUD124.4 million Class A-1 notes (ISIN AU3FN0020939) affirmed at
'AAAsf'; Outlook Stable; and
GBP85.0 million Class A-2 notes (ISIN XS0993136174) affirmed at
'AAAsf'; Outlook Stable.

FirstMac Mortgage Funding Trust No.4 Series 1A-2014:
AUD228.8 million Class A-1 notes (ISIN AU3FN0023453) affirmed at
'AAAsf'; Outlook Stable;
USD270.0 million Class A-2A notes (ISIN USQ3873CAA10) affirmed at
'F1+sf';
AUD0 million Class A-2R notes affirmed at 'AAAsf'; Outlook Stable;
and
AUD27.8 million Class A-3 notes (ISIN AU3FN0023461) affirmed at '
AAAsf '; Outlook Stable.

Firstmac Mortgage Funding Trust No. 4 Series 2-2014:
AUD253.3 million Class A-1 notes (ISIN AU3FN0024618) affirmed at
'AAAsf'; Outlook Stable;
AUD280.0 million Class A-2 notes (ISIN AU3FN0024626) affirmed at
'AAAsf'; Outlook Stable; and
AUD29.6 million Class A-3 notes (ISIN AU3FN0024634) affirmed at
'AAAsf'; Outlook Stable.

Firstmac Mortgage Funding Trust No. 4 Series 3PP-2014:
AUD595.0 million Class A-1 notes (ISIN AU3FN0016127) affirmed at
'AAAsf'; Outlook Stable; and
AUD35.0 million Class A-2 notes (ISIN AU3FN0016135) affirmed at
'AAAsf'; Outlook Stable.


GOW CONSTRUCTION: First Creditors' Meeting Set For March 11
-----------------------------------------------------------
Steven Nicols of Nicols + Brien was appointed as administrator of
Gow Construction Pty Ltd, trading as GJ Gardner Homes Illawarra,
on Feb. 27, 2015.

A first meeting of the creditors of the Company will be held at
City Diggers Wollongong, 82 Church Street, in Wollongong, New
South Wales, on March 11, 2015, at 2:00 p.m.


MAPLE PROPERTIES: First Creditors' Meeting Set For March 12
-----------------------------------------------------------
Altan Djenab of Wild Apricot Corporate Insolvency & Advisory
Services was appointed as administrator of Maple Properties Pty
Ltd on March 2, 2015.

A first meeting of the creditors of the Company will be held at
offices of Wild Apricot Corporate Insolvency & Advisory Services,
Level 1, 5 Everage Street, in Moonee Ponds, Victoria, on
March 12, 2015, at 10:30 a.m.


N P C INDUSTRIES: First Creditors' Meeting Slated For March 11
--------------------------------------------------------------
Daniel Jon Quinn and Stephen Wesley Hathway of SV Partners were
appointed as administrators of N P C Industries Pty Limited on
March 2, 2015.

A first meeting of the creditors of the Company will be held at
Suite 3, Level 3, 426 King Street, in Newcastle, on March 11,
2015, at 2:00 p.m.


PEABODY ENERGY: Fitch Cuts Issuer Default Rating to 'B'
--------------------------------------------------------
Fitch Ratings has downgraded Peabody Energy Corporation's
(Peabody, NYSE: BTU) Issuer Default Rating (IDR) and senior
unsecured notes to 'B' from 'BB-', and assigned a 'BB-/RR2' rating
to the proposed $1 billion second lien notes. Net proceeds of the
notes are intended to be used to fund the tender offer for the
$650 million senior unsecured notes due 2016 and for general
corporate purposes.

Approximately $7.3 billion in face amount of debt, including the
$650 million of notes tendered for, is affected by today's rating
actions.

The Rating Outlook has been revised to Stable from Negative. Fitch
believes the coal markets are at or near the bottom of the cycle
and should show slow recovery.

KEY RATINGS DRIVERS
Peabody's credit ratings reflect its large, well-diversified
operations, good control of low-cost production, exposure to high-
growth markets in Asia, top-line visibility in the domestic
market, strong liquidity, and high financial leverage. Weakness in
pricing for the company's Australian coals, partially offset by
cost reductions and currency moves, coupled with high interest
expense following the 2011 leveraged acquisition of Macarthur Coal
Limited, has resulted in low earnings, cash flows and debt
repayment. The downgrade is the result of Fitch's expectations
that leverage could be above 7x through 2016 before declining.

Company Profile:
Peabody is the largest global private sector coal company, with 26
active mining operations producing primarily low-sulfur thermal
coal from the Powder River Basin (PRB; 2014, 142 million tons
sold), high heat thermal coal from the Illinois Basin (IB; 2014,
25 million tons sold), and thermal and metallurgical (met) coal in
Australia primarily for the Pacific Basin seaborne markets (2014,
met 18 million tons sold, steam 20 million tons sold). As of Dec.
31, 2014, proven and probable reserves were 7.6 billion tons, down
from 8.3 billion tons at Dec. 31, 2013.

Operating Environment:
The industry is heavily regulated as to safety and the
environment. The company has a good compliance history. Shipments
can be disrupted by geology, weather, or transportation events
beyond management control.

Industry Risk:
Steam coal demand in the U.S. is recovering, supply has been
disciplined, stocks are falling and prices should improve going
forward. Growth is constrained by the availability and price of
natural gas. Globally, both the met and steam coal markets are in
excess supply and prices are weak. Coal producers have been
running for cash with a focus on reducing costs, which has delayed
price recovery. In particular, Fitch believes the hard coking coal
benchmark price could average below $135/tonne (t) and the
Newcastle steam coal benchmark average below $75/t beyond 2015.
The industry is consolidating, which should benefit supply/demand
dynamics longer term.

Financial Flexibility:
At Dec. 31, 2014, cash and equivalents were $298 million, of
which, $195 million was held by U.S. entities. The $1.65 billion
secured revolver due September 2018 was utilized only for letters
of credit (LOCs), in the amount of $114.9, million and the $275
million off-balance sheet asset securitization facility due April
2016 was drawn in the amount of $30 million and had outstanding
LOCs in the amount of $15 million. Pro forma for the $1 billion
second lien issuance, liquidity was $2.3 billion. Pro forma
scheduled maturities of long-term debt over the next five years
are estimated at $21 million in 2015, $19 million in 2016, $13
million in 2017, $1.5 billion in 2018 and $12 million in 2019.

Amendment to the Credit Agreement:
On Feb. 5, 2015, Peabody obtained an amendment to its credit
agreement intended to improve availability under its revolver and
allow secured refinancing of upcoming bond maturities. The
facility now has a minimum interest coverage covenant of 1x
through maturity and a net first lien leverage maximum of 4.5x
through maturity. In addition, second lien financings are
unlimited.

Collateral Structure:
In exchange for the amendment, the revolver and term loan gained
additional security including a first lien on substantially all
domestic collateral. This is in addition to the original security
of the pledge of 65% of equity in the holding company for
Australian operations and 100% of the shares in the entity that
holds the intercompany receivable from Australian operations.
Fitch notes that first priority interests in security over real
property interests located in the U.S. with gross book value
greater than 1% of consolidated net tangible assets (CTN, or
substantially total assets less intangibles less current
liabilities) is capped at 15% of CTN less $50 million. The cap is
currently estimated at $1.7 billion. This increase in collateral
drove the affirmation of the senior secured credit facilities at
'BB' despite downgrades across the rest of the capital structure.

Recovery:
Despite the cap on real property interests, the bank facilities
have a priority interest in cash flows by virtue of pledged shares
and Fitch expects outstanding recovery ('RR1') of the first lien
debt in the event of a default. The second lien notes, anticipated
to be $1 billion, are expected to have superior recovery ('RR2'),
the senior unsecured notes are expected to have average recovery
('RR4') and the subordinated notes are expected to have poor
recovery ('RR6') in the event of default.

Expectations:
Fitch believes operating EBITDA could drop below $500 million for
2015 on low average metallurgical coal prices and Asia Pacific
steam coal prices. Under the same assumptions, negative free cash
flows could be as much as $450 million. Peabody guides to 2015
capital expenditure of $180 million to $200 million before coal
lease expenditures ($280 million in 2015). Currently, cash
interest expense runs about $400 million and dividends are about
$3 million, annually. Fitch believes pro forma cash interest
expense could be more than $450 million depending on the size of
the issue and the interest rate. Management believes the 2014
capital spending level can be maintained through 2016.

Key Assumptions:
-- 2015 benchmark hard coking coal and Newcastle prices of $120/t
and $65/t, respectively;
-- Production in the Western U.S. at 3 million tons below
guidance;
-- Other production, dividends and capital spending at guidance;
-- New debt up to $1 billion;
-- 2015 aggregate cash operating cost improvement of 4% over 2014;
-- No asset sale proceeds.

Capital Structure:
Total debt with equity credit of $6 billion compares to
preliminary 2014 operating EBITDA of $767 million at 7.8x. Fitch
expects scant debt reduction in advance of 2017 absent asset
sales. Total debt could increase to as much as $6.3 billion with
the second lien issue. Fitch expects leverage could be above 7x
through 2016 before declining.

Ratings Sensitivities:

Negative: Future developments that may, individually or
collectively, lead to a negative rating action include:

-- Expectations of operating EBITDA less than $750 million in
2016;
-- Expectations of total debt/EBITDA greater than 7x in 2017;
-- Expectations of funds from operations fixed charges coverage
sustainably below 1.5x

Positive: Future developments that may lead to a positive rating
action include:

-- Rationalization of excess supply in the seaborne metallurgical
and steam coal markets resulting in improved prices;
-- Expectations of total debt/EBITDA sustainably less than 4.5x
and positive free cash flow.

Fitch has taken the following rating actions:

-- IDR downgraded to 'B' from 'BB-';
-- Senior unsecured notes downgraded to 'B/RR4' from 'BB-';
-- Convertible junior subordinated debentures downgraded to
'CCC+/RR6' from 'B';
-- Senior secured revolving credit and terms loan affirmed and RR
assigned at 'BB/RR1'.

In addition, Fitch has assigned the following rating:

-- Prospective senior secured second lien notes rated 'BB-/RR2'.


SUMMERLAND OLIVE: First Creditors' Meeting Set For March 11
-----------------------------------------------------------
Christopher John Palmer of O'Brien Palmer was appointed as
administrator of Summerland Olive Products Australia Pty Limited
on March 2, 2015.

A first meeting of the creditors of the Company will be held at
O'Brien Palmer, Level 14, 9 Hunter Street, in Sydney, on
March 11, 2015, at 11:00 a.m.


TAMMA GRAINS: Placed Into Receivership
--------------------------------------
Brad Thompson at The West Australian reports that Tamma Grains, a
major grain storage and handling business long considered a prime
target for overseas interests looking for supply chain control in
West Australia, has fallen into the hands of receivers.

The West Australian relates that Tamma Grains owner Kim Packer
said the business had been under pressure from banks for some time
but stressed that all growers had been paid.

Despite the appointment of Ferrier Hodgson this month, Mr. Packer
said he remained in talks with overseas investors aimed at
securing Tamma's future, the report says.

His preferred option is to bring in an equity partner to grow the
family business founded in 1986, according to The West Australian.

"The Bunges of this world that we have spoken to and the Chinese
companies we are working with, they know that," the report quotes
Mr. Packer as saying.

The West Australian says Mr. Packer confirmed the family was
selling farmland and that negotiations on other assets were at a
delicate stage.

If Mr. Packer cannot seal a deal with an equity partner, Tamma
will be put on the market in a rapidly changing storage and
handling landscape, the report adds.

Tamma is based 45km east of Pingelly and draws grain from farmers
in a 250km radius, including Yealering, Kondinin, Kulin, Hyden and
Corrigin. It has storage capacity of more than 36,000t and
operates a containerised grain shipping service.



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


CHINA SHANSHUI: Fitch Rates Proposed US$ Sr. Unsecured Notes BB
---------------------------------------------------------------
Fitch Ratings has assigned China Shanshui Cement Group Limited's
(Shanshui; BB/Negative) proposed US dollar senior unsecured notes
an expected rating of 'BB(EXP)'.  The notes will be issued by
Shanshui and guaranteed by Shanshui's subsidiaries incorporated or
organised outside of China, except for a subsidiary organized in
the United States.

Shanshui plans to use the proceeds of the proposed notes to redeem
its outstanding USD400m 8.5% notes due May 2016.

The notes are rated at the same level as Shanshui's senior
unsecured debt rating as they represent direct, unconditional,
unsecured and unsubordinated obligations of the company.  The
final rating of the proposed notes is contingent upon the receipt
of documents conforming to information already received.

KEY RATING DRIVERS

Slower Deleveraging Progress: Sluggish cement average selling
prices (ASP) in Shanshui's main markets resulted in weaker cash
flow generation in 2014 than one year ago.  As Shanshui did not
significantly scale back capex and acquisitions in its original
budget, Fitch expects the company's leverage to remain above 4x
even though it received HKD1.56bn in cash at end-2014 from an
equity stake sale.  With the cement ASP remaining weak, Fitch
expects Shanshui to deleverage to below 4x in 2016 at the
earliest, later than originally expected, if it does not divest
any significant assets.  Shanshui's leverage at end-2013 was 5.0x,

Lower ASP: Cement ASP has been under pressure since the Chinese
property market slowed down in 2014.  For the first half of 2014,
Shanshui's cement ASP was CNY240.3/ton, compared with CNY250.5/ton
during the same period in 2013.  This was mainly due to a 9.9%
fall in ASP in northeastern China and a 4% decline in ASP in
Shanxi province.  However, ASP in Shandong, Shanshui's core
market, was stable at CNY240.6/ton (1H13: CNY243.7/ton).

Business Profile Intact: Shanshui's market position remains strong
in Shandong, where Shanshui and China National Building Material
Co., Ltd (CNBM) together controlled half of the Shandong cement
market, underpinning the healthy ASP.  CNBM now owns 16.67% of
Shanshui, making it the third-largest shareholder.  The tie-up
between Shanshui and CNBM could further strengthen their pricing
power and profitability.

KEY ASSUMPTIONS

Fitch's key assumptions within our rating case for the issuer
include:

   -- Cement ASP in Shanshui's main markets remains stable;
   -- Shanshui's cash gross profit per ton remains stable;
   -- Total capex (including acquisitions) between 2015-2017 no
      higher than CNY3bn;
   -- The company is able to roll over short-term debt and
      refinance outstanding US dollar bonds.

RATING SENSITIVITIES

Positive: Future developments that may, individually or
collectively, lead to the rating Outlook being revised back to
Stable include:

   -- Consolidated gross profit sustained above CNY75/ton
   -- FFO-adjusted net leverage sustained below 4.0x

Negative: Future developments that may, individually or
collectively, lead to negative rating action include:

   -- Negative free cash flow (post-capex and acquisition)
   -- Consolidated gross profit sustained below CNY75/ton
   -- FFO-adjusted net leverage sustained above 4.0x


PIONEER IRON: Intends to Declare Final Dividend to Creditors
------------------------------------------------------------
Pioneer Iron & Steel Group Co. Ltd. disclosed in a notice that it
will declare a second and final dividend.

Only creditors who are able to file their proofs of debt by
March 5, 2015, will be included in the company's dividend
distribution.

Pioneer Iron & Steel Group Co. Ltd. is an iron and steel company
based in China. It has interests in steel manufacturing,
logistics, holdings, and investments. Its supply chain services
include resources, investment and development, commodity trading,
shipping, and other logistics services.

In 2010, Pioneer Iron and Steel went into provisional liquidation
owing more than US$516 million to creditors. The liquidators are
Roderick Sutton, Asia-Pacific chairman of advisory firm FTI
Consulting, and Stuart Mackellar, managing partner of
restructuring company Zolfo Cooper, according to government
documents cited by the South China Morning Post.


TIANYIN PHARMA: Receives NYSE MKT Listing Non-Compliance Notice
---------------------------------------------------------------
Tianyin Pharmaceutical Inc., a pharmaceutical company that
specializes in the patented biopharmaceutical, modernized
traditional Chinese medicine (mTCM), branded generics and active
pharmaceutical ingredients (API), received notice on Feb. 24, 2015
from the NYSE MKT LLC indicating that the Company is below certain
of the Exchange's continued listing standards, as set forth in
Sections 134 and 1101 of the NYSE MKT Company Guide, due to the
delay in filing of its Quarterly Report on Form 10-Q for the
period ended December 31, 2014. Under NYSE MKT rules, until the
Company files the Form 10-Q, its common stock will remain listed
on the NYSE MKT under the symbol "TPI," but will be assigned an
".LF" indicator to signify late filing status. Five business days
following the receipt of the noncompliance letter, the Company
will be added to the list of NYSE MKT noncompliant issuers on the
website and the indicator will be disseminated with the Company's
ticker symbol. The indicator will be removed when the Company has
regained compliance with all applicable continued listing
standards.

In order to maintain its listing, the Company must submit a plan
of compliance by March 10, 2015 addressing how it intends to
regain compliance with Sections 134 and 1101 of the NYSE MKT
Company Guide by May 22, 2015. If the plan is accepted, the
Company may be able to continue its listing but will be subject to
periodic reviews by the Exchange. If the plan is not accepted or
if it is accepted but the Company is not in compliance with the
continued listing standards by May 22, 2015, or if the Company
does not make progress consistent with the plan, the Exchange will
initiate delisting procedures as appropriate. The Company intends
to submit a compliance plan on or before the deadline set by the
Exchange.

Currently the Company is working diligently with the auditor to
compile and disseminate the information required to be included in
the Form 10-Q, as well as the required review of the Company's
financial information. The Company expects to file the Form 10-Q
as soon as possible and before the deadline set by the Exchange.

                            About TPI

Headquartered at Chengdu, China, TPI --
http://www.tianyinpharma.com-- is a pharmaceutical company that
specializes in the development, manufacturing, marketing and sales
of patented biopharmaceutical, mTCM, branded generics and API. TPI
currently manufactures a comprehensive portfolio of 58 products,
24 of which are listed in the highly selective national medicine
reimbursement list, 10 are included in the essential drug list
(EDL) of China. TPI's pipeline targets various high incidence
healthcare indications.


TIMES PROPERTY: Fitch Assigns B+ Rating to Proposed US$ Sr. Notes
-----------------------------------------------------------------
Fitch Ratings has assigned Times Property Holdings Limited's
(B+/Stable) proposed US dollar senior notes a 'B+(EXP)' expected
rating.

The notes are rated at the same level as Times Property's senior
unsecured rating because they are regarded as direct and senior
unsecured obligations of the company.  The final rating is subject
to the receipt of final documentation conforming to information
already received.

Times Property intends to use the proceeds from the issuance to
refinance part of its existing borrowings and fund its existing
and new property development projects and for other general
corporate purposes.  As end of December 31, 2014, Times Property
had total outstanding borrowings of CNY10.8bn, of which CNY1.8bn
would be due within one year, versus CNY2.7bn cash on hand and
CNY2.7bn restricted bank deposits.  The weighted borrowing cost
was estimated at 12.8% in 2014.

Times Property is a pure residential property developer targeting
first-time home-buyers and upgraders in Guangdong province.  Its
ratings are supported by its low cost of land bank, its contracted
sales scale, its urban redevelopment project pipeline in Guangzhou
and its improving capital structure.  The ratings are constrained
by its high leverage and its geographical concentration in the
Guangdong province.

KEY RATING DRIVERS

Good Land Bank Quality: Times had a total land bank size of 9.4m
sqm as at end 2014.  The company's land bank is of good quality as
reflected by its project locations and low unit costs.  In 2014,
as much as 70% of the company's contracted sales came from
Guangzhou and Foshan in Guangdong province.  Fitch estimated that
about half of Times' sellable resources are located in these two
cities, where the end-user demand is the strongest and most stable
in Guangdong.  Given the low land bank cost and the future
acquisition of urban redevelopment projects, Fitch believes Times
can maintain a gross profit margin of 30%.

Sustainable Land Bank Drives Growth: Times is in negotiations for
20 urban redevelopment projects in Guangzhou that could be
converted to its land bank in the future.  This could enhance its
product mix and profitability, so as to support its future sales
growth.  As of June 2014, Times has converted one urban
redevelopment site, while the conversion of two other sites is in
progress.  Fitch believes that Times' land bank can support its
sales performance, as reflected by its 2014 contracted sales of
CNY15.2bn, compared with CNY11bn in 2013.

Improving Capital Structure: Times has been optimising its capital
structure in 2014 by diversifying funding channels and reducing
effective borrowing costs.  The company repaid some of its trust
loans that have higher interest costs and issued longer-tenor
offshore bonds at lower rates.  It is one of the most active
offshore bond issuers in the 'B' rating category, issuing four
tranches of US dollar and Chinese yuan bonds in the last nine
months amounting to USD550m.

Geographical Concentration in Guangdong: Times is a regional
property developer focused on Guangdong with exposure in
Guangzhou, Foshan, Zhuhai, Zhongshan and Qingyuan. I t also has
some operations in Changsha in Hunan province.  The company's
geographical concentration and scale constrain the ratings.  Fitch
believes that Times will concentrate on expanding its size within
Guangdong province and is unlikely to expand into other provinces
before solidifying its position in its home province.

High Leverage During Expansion: Times' leverage is likely to
remain at an above-average level as the company is expanding.
However, given the company's disciplined land acquisition strategy
and its modest growth target, Fitch believes that leverage will
not reach excessively high levels.  Fitch expects Times' leverage,
as measured by net debt divided by adjusted inventory, to remain
at 40%-50% in 2014-2015.

Sufficient Liquidity to Repaying Debt: At end 2014, Times had cash
and cash equivalents of CNY2.7bn and restricted bank deposits of
CNY2.7bn.  The company also has a good track record in accessing
the capital market.  Hence, Fitch believes that Times has
sufficient liquidity to cover its short term debt of CNY1.8bn.

RATING SENSITIVITIES

Negative: Future developments that may, individually and
collectively, lead to negative rating action include:

   -- Net debt/adjusted inventory sustained above 50%
   -- Contracted sales/total debt sustained below 1x
   -- Annual contracted sales falling below CNY12bn
   -- EBITDA margin sustained below 15%

Fitch does not expect further positive rating action until Times
significantly increases its scale and diversifies geographically.


TIMES PROPERTY: S&P Assigns 'B' Rating to Proposed US$ Sr. Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
issue rating and 'cnBB-' long-term Greater China regional scale
rating to a proposed issue of U.S. dollar-denominated senior
unsecured notes by Times Property Holdings Ltd. (B+/Stable/--;
cnBB/--).  The ratings are subject to S&P's review of the final
issuance documentation.

The issue rating is one notch lower than the long-term corporate
credit rating on Times Property to reflect the structural
subordination risk.  Times Property intends to use the proceeds
from the proposed notes to repay debt, finance existing projects,
and for general corporate purposes.

S&P expects Times Property to use part of the proceeds to repay
high-cost trust financing, which could reduce the company's
interest expenses.  At the same time, the replacement of short-
term borrowings with longer-term senior notes could also extend
Times Property's debt maturity and increase its financial
flexibility.

Times Property's sales execution was better than S&P expected in
2014.  The company's total contracted sales reached Chinese
renminbi (RMB) 15.2 billion, compared with RMB12 billion in S&P's
base-case scenario.  Times Property also controlled its leverage
while expanding, such that the debt-to-EBITDA ratio is below S&P's
downgrade trigger of 5x.  In S&P's view, the recent relaxation of
the Chinese government's measures towards the property sector and
credit loosening are credit positive and could further support
Times Property's sales momentum in 2015.  The company targets
total contract sales of RMB16.5 billion in 2015.

The ratings on Times Property reflect S&P's view of the company's
geographic concentration in the Guangdong province, limited number
of projects, execution risk associated with its rapid expansion,
and short track record of prudent financial management following
its IPO.  The company's long operating record and experience in
the province and satisfactory sales execution under a fast-churn
model temper the weaknesses.


WINLAND OCEAN SHIPPING: Meeting of Creditors Set for April 14
-------------------------------------------------------------
The meeting of creditors of Winland Ocean Shipping Corp. is set to
be held on April 14, at 10:00 a.m., according to a filing with the
U.S. Bankruptcy Court for the Southern District of Texas.

The meeting will be held at Suite 3401, 515 Rusk Avenue, in
Houston, Texas.

The court overseeing the bankruptcy case of a company schedules
the meeting of creditors usually about 30 days after the
bankruptcy petition is filed. The meeting is called the "341
meeting" after the section of the Bankruptcy Code that requires
it.

A representative of the company is required to appear at the
meeting and answer questions under oath. The meeting is presided
over by the U.S. trustee, the Justice Department's bankruptcy
watchdog.

                   About Winland Ocean Shipping

Winland Ocean Shipping Corp. is mainly engaged in ocean
transportation of dry bulk cargoes worldwide through the ownership
and operation of dry bulk vessels and chartering brokerage
services. The company operates in the People's Republic of China,
Japan, Korea, the Russian Federation, and southern and eastern
Asia. Winland Ocean Shipping is based in Sheung Wan, Hong Kong.

Winland Ocean Shipping Corporation and its five affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D.
Tex. Lead Case No. 15-60007) on Feb. 12, 2015. The petitions were
signed by Robert E. Ogle, chief restructuring officer.

The cases are assigned to Judge David R Jones.

The Debtors are represented by Matthew Scott Okin, Esq., George Y.
Nino, Esq., and Ruth E. Piller, Esq., at Okin & Adams LLP, in
Houston, Texas.


* CHINA: Dangerously Close to Slipping Into Deflation
-----------------------------------------------------
Shanghai Daily reports that China is dangerously close to slipping
into deflation, the central bank's newspaper warned on Feb. 25,
highlighting increasing nervousness in policy-making circles as a
sputtering economy struggles to pick up speed despite a raft of
stimulus steps.

The article, published in Finance News, quoted the secretary-
general of the China Urban Finance Society Chan Xiangyang as
saying that risk of deflation is greater than many appreciate,
according to Shanghai Daily.

Shanghai Daily relates that the society is a national academic
group not directly affiliated with the People's Bank of China, but
in many cases the publication of such pieces in the central bank's
newspaper indicates tacit approval of the message.

As a slowdown in China's economy over the past year was
accompanied by a chill in global demand, Beijing has stepped up
measures to prevent the country from stumbling, the report says.

Shanghai Daily recalls that in November, the PBOC startled markets
with an unexpected interest rate cut -- the first since 2012 --
and then followed up with a cut to banks' required reserve ratio
in early February.

According to Shanghai Daily, analysts have said the PBOC will be
forced to increase aggressive easing steps in the coming months if
price and credit data continue to drift lower.

Shanghai Daily relates that Mr. Chan said the deteriorating macro-
economic environment, combined with enduring industrial
overcapacity, widespread speculative and inefficient investment,
and slowing foreign capital inflows are all weighing heavily on
prices.

That risks setting off a debilitating deflationary cycle in the
world's second-largest economy, similar to the "lost decades"
experienced by Japan under similar -- but not identical --
circumstances that began in the 1990s, in which inexorable price
declines discouraged investment, Shanghai Daily states.

Shanghai Daily adds that Chinese policy-makers and market
participants have been trying to determine to what extent China's
weak prices are driven by domestic factors, including demand from
Chinese consumers and industrial overcapacity, as opposed to a
globally weak price environment.



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


ADIG JEMTEX: ICRA Assigns B+ Rating to INR5.5cr Term Loan
---------------------------------------------------------
ICRA has assigned its long term rating of [ICRA]B+ on the INR5.50
Crore term loans, INR1.50 crore fund based facilities and INR3.00
crore unallocated limits of Adig Jemtex Private Limited.

                          Amount
   Facilities          (INR crore)     Ratings
   ----------          -----------     -------
   Long Term Fund-Based
   Limits-Term Loans        5.50       [ICRA]B+ (Assigned)

   Long Term Fund Based
   Limits-Cash Credit       1.50       [ICRA]B+ (Assigned)

   Long Term Fund Based
   Limits-Unallocated       3.00       [ICRA]B+ (Assigned)

ICRA's rating takes into consideration the risks associated with
the ability to scale up operations and achieve adequate capacity
utilization in AJPL's green-field sizing unit. Due to the
scheduled repayments of the borrowings for setting up the
processing facility and incremental working capital requirements,
the liquidity of the company is likely to be under pressure. The
ratings is also constrained on account of fragmented industry and
the commoditized nature of the product limits the company's
pricing power. The rating, however, derives comfort from the group
presence in fabric weaving (through Aarti Suiting and R.S.
Spuntex, both rated [ICRA]B+) which partially mitigates the
offtake risk for AGPL. The group concerns being established
players in fabric processing mitigates market risks for AJPL and
facilitates backward integration benefits by virtue of AJPL's
sizing unit being a supplier to the group concerns.

Going forward, AJPL's ability to successfully ramp up its
operations, while maintaining adequate profitability and
liquidity, will be the key rating sensitivities.

Incorporated in 2010, AJPL is promoted by Jindal family of
Bhilwara who are also managing two other group companies RSPL and
ASPL. AJPL has set up a sizing unit in District Bhilwara having
one high speed sizing unit in the vicinity of group concerns. The
processing plant commenced operations in FY2015. Prior to the
setting up of the processing unit, the company was trading in
fabric and yarn on a small scale.


B.S. INDUSTRIES: CRISIL Reaffirms B+ Rating on INR50MM Loan
-----------------------------------------------------------
CRISIL's rating of the long term bank facilities of
B.S. Industries continues to reflect the firm's weak business risk
profile driven by large working capital requirements,
susceptibility of its margins to volatility in raw material prices
and adverse regulations. The firm's financial risk profile is also
weak, marked by weak debt protection metrics and moderate gearing.
These rating weaknesses are partially offset by the extensive
experience of B.S. Industries' partners in the cotton industry,
and the funding support that the firm receives from them in the
form of unsecured loans.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit           50        CRISIL B+/Stable (Reaffirmed)
   Proposed Long Term
   Bank Loan Facility     3.8      CRISIL B+/Stable (Reaffirmed)
   Term Loan              5.0      CRISIL B+/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that B.S. Industries will continue to benefit from
its partners' extensive industry experience and financial support
over the medium term. The outlook may be revised to 'Positive' if
the firm ramps up its accruals significantly, with improvement in
revenues and profitability while prudently managing its working
capital. Conversely, the outlook may be revised to 'Negative' if
the firm's working capital management deteriorates or its
liquidity weakens significantly, most likely because of lower-
than-expected cash accruals, or the firm undertakes any large
debt-funded capital expenditure (capex) programme, further
weakening its capital structure.

B.S. Industries was set up in 2007 as a partnership firm by the
Tayal family of Madhya Pradesh. The firm is engaged in cotton
ginning and pressing through its processing facility in Lasur,
Aurangabad (Maharashtra) with a capacity of producing 18,000
cotton bales per year.

For 2013-14 (refers financial year April 1 to March 31), B.S.
Industries reported a PAT of INR 4.9 million on sales of INR 184.9
million against PAT of INR 4.6 million on sales of INR 129.3
million in 2012-13.


CAPITAL OVERSEAS: CRISIL Assigns B+ Rating to INR125MM Cash Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Capital Overseas Private Limited (COPL).

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Cash Credit           125        CRISIL B+/Stable

The rating reflects COPL's small scale of operations in fragmented
industry and below average financial risk profile. These rating
weaknesses are partially offset by the benefits that COPL derives
from its partners' business experience, and financial support from
its promoters.

Outlook: Stable

CRISIL believes that COPL will maintain its business risk profile,
backed by the extensive experience of its promoters in the rice
industry. The outlook may be revised to 'Positive' in case of
significant improvement in its scale of operations leading to
improvement in the company's financial risk profile. Conversely,
the outlook may be revised to 'Negative' in case of deterioration
in the COPL's financial risk profile due to significant increase
in working capital requirements, leading to large incremental bank
borrowings or in case of a debt-funded capital expenditure
programme.

COPL is primarily engaged in milling of basmati rice, with its
milling unit based out of district Taran Taran, Punjab in close
proximity to the local grain market. The company is started by Mr.
Pawan mittal and family.


D C METALS: ICRA Upgrades Rating on INR30cr Fund Based Loan to B
----------------------------------------------------------------
ICRA has upgraded the long term rating from [ICRA]D to [ICRA]B for
the INR30.00 crore fund based facilities of M/s. D C Metals.

                        Amount
   Facilities          (INR crore)    Ratings
   ----------          -----------    -------
   Fund-Based Limits      30.00       Revised to [ICRA]B
                                      from [ICRA]D

The rating upgrade takes into consideration the regularization of
debt service obligations by the firm in the current year. The
rating continues to favourably factor in the long standing
experience of the partners in aluminium trading business coupled
with financial support extended by the partners in the form of
unsecured loans and capital infusion.

Nonetheless, the rating continues to remain constrained by the
firm's thin profitability margins on account of intense
competition and limited value adding nature of the trading
business. The rating also reflects DCM's weak capital structure
and depressed coverage indicators along with the stretched
liquidity position due to the high receivables and the firm's
exposure to cyclicality inherent in metal trading business.

Established in 1984, M/s. D C Metals is a partnership firm engaged
in the trading of aluminium products namely ingots, wire rods,
cast strips, cold rolled/hot rolled products etc. The firm is
promoted by Mr. Kesarimal Bhansali, who has an industry experience
of over 40 years. The customer base of the firm mainly comprises
end users making value added products such as automobile parts,
aluminium conductors, utensils, sheets etc.

Recent Results
In FY2014, DCM reported a profit after tax (PAT) of INR0.39 crore
on an operating income of INR188.02 crore. As per unaudited
results for the first six months of FY2015, the firm reported a
profit before tax (PBT) of INR0.22 crore on an operating income of
INR92.65 crore.


DAYANAND COTTON: CRISIL Reaffirms B- Rating on INR50MM Cash Loan
----------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Dayanand
Cotton Ind (DCI) continues to reflect the firm's weak financial
risk profile, marked by high gearing and weak debt protection
metrics, its exposure to intense competition in the fragmented
cotton ginning industry, and its vulnerability to changes in
government policies. These rating weaknesses are partially offset
by the proximity of DCI's operations to the cotton-growing belt in
Gujarat.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit           50        CRISIL B-/Stable (Reaffirmed)
   Term Loan             10        CRISIL B-/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that DCI will continue to benefit over the medium
term from the proximity of its operations to the cotton-growing
belt; however, the firm's financial risk profile will remain
constrained over this period owing to low cash accruals and a weak
capital structure. The outlook may be revised to 'Positive' if the
firm scales up its operations and posts higher-than-expected
accruals, or in case of substantial equity infusion by its
partners leading to improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if there is a
significant decline in DCI's cash accruals or deterioration in its
working capital management, or if it undertakes a large debt-
funded capital expenditure programme, further weakening its
financial risk profile, particularly its liquidity.

Update
For 2013-14 (refers to financial year, April 1 to March 31), DCI's
turnover increased by around 32 per cent year on year (y-o-y) to
around INR263 million. The topline of the firm, however, is
estimated to decline to INR170 million for 2014-15 due to a delay
in monsoon and decline in raw material prices. DCI's operating
profitability is estimated to be around 2.8 per cent in 2014-15
and CRISIL expects that it will remain at similar levels over the
near to medium term. The firm's profitability remains susceptible
to volatility in raw material prices. In 2014-15, the company's
operating cycle is expected to deteriorate with its gross current
assets (GCA) at 130 days against 70 days a year earlier due to
increase in inventory levels. CRISIL expects DCI's GCAs to remain
high in the range of 100 to 110 days and the overall working
capital requirements are expected to increase with its scale of
operations. Although the firm's liquidity has been supported by
partner funding of INR8.5 million as on December 31, 2014, its
cash accruals continue to remain stretched to service its term
debt obligations over the medium term.

DCI reported net profit of INR0.4 million on net sales of INR263
million for 2013-14.

DCI is a partnership firm that started commercial production from
February 2012. The firm is engaged in ginning and pressing of raw
cotton (kapas). There are 12 partners in the firm with Mr.
Jerambhai Dubriya (15 per cent stake), Mr. Jitendrakumar Khokhani
(10 per cent), and Mr. Chunilal Ghetiya (10 per cent) actively
handling its operations.


DEV RAJ: CRISIL Reaffirms B- Rating on INR97.5MM Term Loan
----------------------------------------------------------
CRISIL's rating on the bank facility of Dev Raj Institute of
Management and Technology Society (DRIMT) continues to reflect
DRIMT's limited track record of operations as well as exposure to
intense competition in the education sector and restrictions
imposed by regulatory bodies. These rating weaknesses are
partially offset by the healthy demand prospects of the education
industry in Punjab.

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Term Loan            97.5        CRISIL B-/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that DRIMT will register moderate growth over the
medium term, backed by its new course offerings. The outlook may
be revised to 'Positive' if the company scales up its operations,
registering a significant increase in intake of students across
the courses it offers, resulting in improvement in its net cash
accruals and consequently its financial risk profile. Conversely,
the outlook may be revised to 'Negative' if DRIMT records a
substantial decline in student intake or if it undertakes any
large debt-funded capital expenditure programme, resulting in
weakening of its financial risk profile.

Update
DRIMT has registered slight growth in its enrolments to around 45
per cent from 40 per cent (total seats - 540). The society has
applied for new courses (Bachelor of Commerce and post graduate
diploma in computer application) to the All India Council for
Technical Education and Punjab Technical University, Jalandhar for
which approvals are still awaited. The society's operating margin
is expected to decline by 2 to 5 per cent owing to increased
employee cost on new faculty for the courses to be added in 2014-
15 (refers to financial year, April 1 to March 31). The institute
is expected to report an operating income of around INR47 million
in 2015-16. CRISIL believes that the institute will achieve higher
enrolment over the medium term if DRIMT gets approval for the new
courses. The institute generated a total operating income (tuition
fees and other fees) of INR37.7 million in 2013-14, with a net
loss of INR0.8 million. The institute had tight liquidity owing to
low occupancy of seats in 2013-14. The bank restructured the
institute's term loan in December 2014, and as per the revised
structure, repayments will start from September 2016 (half-yearly
for five years). The interest obligations have been converted into
funded interest term loan. The institute has no term repayment
obligation in 2014-15 and 2015-16 which will provide some cushion
to its liquidity. Given the losses the institute incurred, DRIMT's
net worth was negative at INR4.7 million as on March 31, 2014 and
is expected to be around INR3 million as on March 31, 2015. Thus,
the financial risk profile is likely to remain weak over the
medium term. The interest coverage ratio is also expected to
remain between 1.2 and 1.4 times over the medium term.

DRIMT was set up in 2010 by the Ferozepur (Punjab)-based Gupta
family. The firm is promoted by its chairman, Mr. Ravi Kant Gupta,
and his brother, Mr. Rohit Gupta. DRIMT offers educational
services through its institute, Dev Raj Group's Technical Campus.


ECO LITE: ICRA Reaffirms D Rating on INR11.16cr LT Loan
-------------------------------------------------------
ICRA has reaffirmed its long-term and short term rating of [ICRA]D
on the INR19.16 crore (enhanced from INR14.16 crore) fund based
and non fund based limits of Eco Lite Technologies.

                          Amount
   Facilities          (INR crore)     Ratings
   ----------          -----------     -------
   Long Term Fund-based
   bank facilities         11.16       [ICRA]D; Reaffirmed

   Short Term Non fund
   Based bank facilities    8.00       [ICRA]D; Reaffirmed

Rating Rationale
ICRA's ratings continue to reflect the delays by ELTL in debt
servicing, owing to its stretched liquidity position. While the
operating scale of the firm has increased over the years (~34%
year-on-year increase in FY2013-14), on account of the firm's high
working capital intensity (NWC/OI at ~64% as on year end 2014) it
has continuously required additional working capital, which
coupled with high debt repayment obligations and low cash accruals
has led to a stretched liquidity position. Further, ICRA also
takes note of the weak financial profile of the firm as indicated
by its high gearing and weak debt coverage indicators. ICRA also
takes note of the partnership constitution of the entity which
exposes it to risks of capital withdrawal, dissolution etc.

In ICRA's view, a track record of timely debt servicing by the
firm will be the key rating sensitivity going forward.

Incorporated in April 2010 as a partnership firm, ELTL is engaged
in the supply of Light Emitting Diode (LED) based lighting
products with its product range including LED bulbs, MR
(Multifaceted Reflector) 16 lamps, tube lights, down lights, bay
lights and street lights. The manufacturing facilities of the firm
are located at Industrial Model Township at Manesar, Haryana.

Recent Results
The firm reported a net profit of INR0.10 crore on an operating
income of INR14.01 crore in FY 2013-14, as against a net loss of
INR0.69 crore on an operating income of INR10.48 crore in the
previous year.


ELTEL POWER: ICRA Reaffirms B Rating on INR49cr Non-FB Bank Loan
----------------------------------------------------------------
ICRA has reaffirmed its long-term rating of [ICRA]B on the
INR7.001 crore fund-based bank facilities and the INR49.00 crore
(reduced from INR55.00 crore) non fund-based bank facilities of
Eltel Power Private Limited. ICRA has also reaffirmed its short-
term rating on the INR2.00 crore (reduced from INR8.00 crore) non
fund-based bank facilities of EPPL at [ICRA]A4.

                        Amount
   Facilities          (INR crore)    Ratings
   ----------          -----------    -------
   Fund-based bank
   facilities/Cash
   credit                  7.00       [ICRA]B; reaffirmed

   Non fund based bank
   facilities             49.00       [ICRA]B; reaffirmed

   Non fund based bank
   facilities              2.00       [ICRA]A4; reaffirmed

ICRA's rating continues to be constrained on account of slow
movement in order book which has resulted in blockage of funds in
working capital. As a result, the liquidity profile of the company
remains stretched owing to high levels of unbooked inventory, long
receivable cycle and margin funding for various bank guarantees
issued for relatively large order book, as also reflected in
consistently high utilization of the bank limits and dependence on
unsecured loans from the promoter group. While the company had an
outstanding order book of ~INR110 crore in December 2013 proposed
to be completed in 2014-15, the execution remained slow with
~INR95 crore of works remaining outstanding in November 2014. The
slow pace of order execution has not only kept the operating
income (OI) modest but has also restricted its ability to bid for
fresh orders due to limited financial flexibility as its non fund-
based (NFB) limits remain highly utilised for the existing orders.
The rating is also constrained by the company's weak financial
profile, given the modest profitability and leveraged capital
structure with TOL/TNW of 5.2x and also high customer and regional
concentration with all the orders being from one customer Madhya
Pradesh Poorv Kshetriya Vidyut Vitaran Company Limited (MPPKVCL)
in Madhya Pradesh though the counterparty credit risk remains low
as the client is a Government entity. Nevertheless, the rating
continues to positively factor in the long track record of Eltel
group in executing projects relating to electrical contracts in
Madhya Pradesh (MP).

Going forward, the ability of the company to successfully execute
the existing orders in a time bound manner, while improving its
liquidity position and maintaining healthy profitability will
remain the key rating sensitivities.

Incorporated in March 2011 by Mr. V.K. Agarwal in Satna, Madhya
Pradesh, EPPL is engaged in erection and installation of power
transmission infrastructure projects on turnkey basis. The company
caters to customers such as MPPKVCL and Madhya Pradesh Road
Development Corporation Limited (MPRDCL).

Recent Results

EPPL reported a profit after tax (PAT) of INR0.43 crore on an
operating income (OI) of INR22.91 crore in 2013-14 as compared to
a PAT of INR0.73 crore on an OI of INR21.29 crore in the previous
year. During the six-month period ended 30th September 2014, the
company reported a PAT of INR0.46 crore on an OI of INR8.27 crore.


FLOOR GARDENS: CRISIL Rates INR47.5MM Export Packing Loan at B
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Floor Gardens (FG).

                           Amount
   Facilities             (INR Mln)     Ratings
   ----------             ---------     -------
   Export Packing Credit     47.5       CRISIL B/Stable
   Letter of Credit           2.5       CRISIL A4

The ratings reflect the firm's modest scale of operations and
below-average financial risk profile marked by high gearing. These
rating weaknesses are partially offset by the promoter's extensive
experience in the home furnishings segment and FG's established
customer base.
Outlook: Stable

CRISIL believes that FG will continue to benefit over the medium
term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' if the firm improves its
financial risk profile with a significant increase in its net cash
accruals through enhanced scale of operations and profitability.
Conversely, the outlook may be revised to 'Negative' if FG's
financial risk profile weakens with a considerable decline in its
cash accruals or deterioration in its working capital management.

Set up in 2007, FG manufactured coir-based home furnishings. The
firm is based in Allepey (Kerala). The promoter, Mr. K.A. Sugathan
manages FG's daily operations.

FG reported profit after tax (PAT) of INR1.1 million on revenue of
INR123.6 million for 2013-14 (refers to financial year, April 1 to
March 31); the firm reported PAT of INR0.5 million on revenue of
INR63.8 million for 2012-13.


FREEZE ENGINEERING: CRISIL Rates INR75MM Export Packing Loan B+
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Freeze Engineering Industries Pvt Ltd (FEIPL).
The ratings reflect FEIPL's modest scale of operations in the
intensely competitive sea food exports segment, and its below-
average financial risk profile, marked by high gearing. These
rating weaknesses are partially offset by the company's
diversified product portfolio and the extensive industry
experience of its promoters.

                            Amount
   Facilities              (INR Mln)     Ratings
   ----------              ---------     -------
   Export Packing Credit       75        CRISIL B+/Stable
   Foreign Bill Purchase       35        CRISIL B+/Stable

The ratings reflect FEIPL's modest scale of operations in the
intensely competitive sea food exports segment, and its below-
average financial risk profile, marked by high gearing. These
rating weaknesses are partially offset by the company's
diversified product portfolio and the extensive industry
experience of its promoters.

Outlook: Stable

CRISIL believes that FEIPL 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
financial risk profile improves with an increase in its revenue
and profitability. Conversely, the outlook may be revised to
'Negative' if the company's financial risk profile weakens,
because of a decline in its cash accruals, or large debt-funded
capital expenditure, or sizeable capital withdrawals by the
promoters.

FEIPL, set up in Kollam (Kerala) in 1980 is engaged in the
processing and exports of sea fish such as cuttlefish, mackerels,
leatherjacket fish, cods, tuna and shrimps among others. The
firm's daily operations are managed by Mr. Syed Alavi.

FEIPL reported a profit after tax (PAT) of INR2.5 million on an
operating income ofINR324.5 million for 2013-14 (refers to
financial year, April 1 to March 31), against a net profit of
INR0.4 million on an operating income of INR220 million for 2012-
13.


GANESHPRASAD IMPEX: ICRA Reaffirms B Rating on INR2cr Cash Loan
---------------------------------------------------------------
ICRA has reaffirmed the long term rating outstanding on the
INR2.00 crore (enhanced from INR1.00 crore) cash credit facility
and INR10.50 crore (reduced from INR11.50 crore) unallocated
limits of Ganeshprasad Impex Private Limited at [ICRA]B. ICRA has
reaffirmed the short term rating outstanding on the INR9.50 crore
(enhanced from INR8.50 crore) non-fund based facilities and
INR10.50 crore (reduced from INR11.50 crore) unallocated limits at
[ICRA]A4. The proposed limits of INR10.50 crore have been rated on
both the scales and will attract rating as per the tenure of
usage. The INR2.00 crore fund based facility is a sub limit of
INR9.50 crore non fund based facility. As such the total
utilization of the non fund based facility should not exceed
INR9.50 crore at given point in time.

                                Amount
   Facilities                (INR crore)    Ratings
   ----------                -----------    -------
   Fund Based-Cash Credit       (2.00)      [ICRA]B reaffirmed
   Non-fund Based-Letter
   of Credit                     9.50       [ICRA]A4 reaffirmed
   Fund Based-Buyers Credit     (7.00)      [ICRA]A4 reaffirmed

   Non Fund Based-Unallocated
   amount                        10.50      [ICRA]A4 reaffirmed

The ratings reaffirmation reflect Ganeshprasad Impex Private
Limited's (GIPL) weak financial profile as reflected in small
scale of operations and subdued profit margin emanating from
highly competitive nature of the timber trading industry. Besides,
the working capital structure has remained stretched on account of
high inventory and debtor days, which has been funded largely by
payables backed by LC of 180-330 days resulting in high TOL/TNW of
9.96 times as on 31st March 2014 and a leveraged capital
structure. The ratings also take into account margin
susceptibility to fluctuation in timber prices and adverse
movements in foreign exchange and the vulnerability of earnings to
change in regulatory policies of exporting countries and India.
ICRA notes that the recent ban enforced by Myanmar government has
restricted the supply of round logs and is expected to disrupt
sourcing capabilities of Indian timber importers in the near to
medium term. Hence the company's ability to establish supply
arrangements with other importing countries and generate adequate
margins from import of processed timber would remain critical. The
ratings, however, factor in the management's established track
record in the timber industry and diversified clientele with
market presence across the country.

Incorporated in 2004, as a private limited company, GIPL is
engaged in the import of round log and cut to size Burmese teak
timber and caters to the domestic market. The firm gets the order
unloaded at Tuticorin and Mumbai ports. The firm has its head
office located in Reay Road, Mumbai. Patel Wood Works & Timber
Mart (rated [ICRA]B/[ICRA]A4) is an associate concern of GIPL and
is engaged in the same line of business.

Recent Results
GIPL recorded a net profit of INR0.15 crore on an operating income
of INR10.46 crore for the year ending March 31, 2014.


GRAFFITI CLOTHING: CRISIL Lowers Rating on INR105MM Loan to B+
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility of
Graffiti Clothing (GC) to 'CRISIL B+/Stable' from 'CRISIL BB-
/Stable'.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit          105        CRISIL B+/Stable (Downgraded
                                   from 'CRISIL BB-/Stable')

The rating downgrade reflects significant pressure on GC's
liquidity because of its large working capital requirements. The
firm's operating cycle has lengthened in 2013-14 due to increase
in inventory holding to 173 days as on March 31, 2014, from 94
days as on March 31, 2013. Its working-capital-intensive
operations are also reflected in the full utilisation of its bank
lines, with a few instances of overdrawn limits. CRISIL believes
that GC's large working capital requirements will continue to
pressurise its liquidity and hence would remain a key rating
sensitivity factor, over the medium term.

The rating reflects GC's large working capital requirements and
modest scale of operations. These rating weaknesses are partially
offset by the extensive experience of the firm's proprietor in the
garment retail industry.

Outlook: Stable

CRISIL believes that GC will continue to benefit over the medium
term from its proprietor's extensive industry experience. The
outlook may be revised to 'Positive' if the firm increases its
scale of operations while maintaining its profitability, leading
to increased cash accruals, and improves its working capital
management. Conversely, the outlook may be revised to 'Negative'
if GC's margins decline considerably, if its working capital
management deteriorates, or if it undertakes a large debt-funded
capital expenditure programme.

GC was established in 2001 by Mr. Aftabh Kareem as a sole
proprietorship concern in Kochi. The firm manufactures ready-made
garments, mostly ethnic wear, for women, men, and children; it
sells these garments through its own retail stores.


HOME ASSOCIATES: CRISIL Cuts Rating on INR97.5MM LT Loan to B
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility of
Home Associates (Home) to 'CRISIL B/Stable' from 'CRISIL
B+/Stable'.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Long Term Loan       97.5       CRISIL B/Stable (Downgraded
                                   from 'CRISIL B+/Stable')

   Proposed Long Term    2.5       CRISIL B/Stable (Downgraded
   Bank Loan Facility              from 'CRISIL B+/Stable')

The rating downgrade reflects the expected pressure on Home's
liquidity on account of low customer advances due to low
incremental bookings and large capital withdrawal by partners. The
significantly low cash inflow is likely to exert significant
pressure on Home's liquidity, given its large repayments in 2015-
16 (refers to financial year, April 1 to March 31); it has large
debt obligations of INR97.5 million for 2015-16. The firm's
liquidity is expected to remain highly susceptible to incremental
booking of housing units and flow of customer advances. CRISIL
believes that Home's liquidity will remain under pressure over the
medium term on account of the muted demand scenario.

The rating reflects Home's susceptibility to risks related to
saleability and funding of its ongoing project, and to cyclicality
in the real estate industry in India. These rating weaknesses are
partially offset by the extensive experience of Home's partners in
the real estate industry and the favourable location of its
project.

Outlook: Stable

CRISIL believes that Home will continue to benefit over the medium
term from its partners' extensive experience in the real estate
industry in Pune (Maharashtra). The outlook may be revised to
'Positive' in case of better bookings of units and receipt of
customer advances, leading to large cash inflow. Conversely, the
outlook may be revised to 'Negative' in case of a time or cost
overrun in Home's project or fewer booking for its housing units,
leading to low cash inflow and deterioration in the firm's
financial risk profile, particularly its liquidity.

Home was established in 2011 as a special-purpose vehicle by Home
Construwell, Kundan Lifespaces, and Tribute Landmarks. The firm
develops residential property in the Undri area of Pune. It is
developing a project of about 0.2 million square feet under the
name, The Landmark.


JINDAL RICE: ICRA Assigns B- Rating to INR23.06cr LT Loan
---------------------------------------------------------
ICRA has assigned its long term rating of [ICRA] B- to the INR9.74
crore fund based bank limits of Jindal Rice and General Mills.

                      Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term Fund
   Based Limits        23.06       [ICRA]B- outstanding/assigned

   Short Term Non
   Fund Based Limits    0.62       [ICRA]A4 outstanding

ICRA also has a long term rating of [ICRA] B - outstanding on the
INR13.32 crore fund based limits and a short term rating of
[ICRA]A4 outstanding on the INR0.62 crore non fund based limits of
JRGM.

The reaffirmation of the ratings continues to be constrained by
company's weak credit profile as reflected by high gearing arising
out of substantial debt funding of large working capital
requirements and poor coverage indicators due to increase in the
interest cost burden and debt repayments. The capital structure of
the company is expected to remain highly leveraged on account of
debt funded capex and enhancement in the working capital
borrowings of the firm. The rating also takes into account the low
profitability margins at the operating and net levels due to high
intensity of competition in the rice milling industry and agro
climatic risks which can affect the availability of paddy in
adverse weather conditions. The ratings however, favorably takes
into account extensive experience of promoters with long standing
relationships with several customers and suppliers, healthy growth
in the operating income in the past four years and proximity of
the mill to major rice growing area which results in easy
availability of paddy.

JRGM was established in 1996 as a partnership firm with Mrs. Anita
Rani, Mrs. Poonam Devi, Mr. Mukesh Kumar, Mr. Sat Narain and Mr.
Sushil Kumar as partners. The firm undertakes processing and
trading of Basmati as well as non-Basmati rice in the domestic
market. It also performs custom milling operations for the state
government of Haryana. The manufacturing unit of the firm is
located at Gullarpur Road, Nissing, Haryana with a milling
capacity of 6 tons/hour of paddy.

Recent Results
JRGM reported a net profit of INR0.02 crore on an operating income
of INR37.53 crore for 2013-14 and a net profit of INR0.01 crore on
an operating income of INR28.96 crore for the previous year.


KTC CARS: CRISIL Reaffirms B Rating on INR50MM Long Term Loan
-------------------------------------------------------------
CRISIL's rating on the bank facilities of KTC Cars (India) Pvt Ltd
(KCPL) continues to reflect the company's nascent stage of
operations and weak financial risk profile marked by negative
Total outside Liabilities to Total Net worth ratio (TOLTNW) and
net worth, driven by  large working capital requirements. These
rating weaknesses are partially offset by the extensive experience
of the company's promoters in the automobile dealership business
in Kerala.

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Bank Guarantee       80          CRISIL A4 (Reassigned)
   Long Term Loan       50          CRISIL B/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that KCPL will benefit over the medium term from
its promoters' extensive experience in the automobile dealership
business. The outlook may be revised to 'Positive' if the company
reports significant ramp up of its operations, leading to improved
cash accruals. Conversely, the outlook may be revised to
'Negative' in case of lower than expected revenues, or larger-
than-expected working capital requirements, resulting in pressure
on its liquidity.

Update
KCPL reported operating income of INR0.8 million for 2013-14
(refers to financial year, April 1 to March 31). The company's
operations are expected to be modest over the medium term as they
commenced operations only in April 2014. Moreover, revenue will be
constrained as the company faces competition from dealers of other
automobile manufacturers in the vicinity and the limited range of
Volkswagen India Pvt Ltd's (Volkswagen) cars. Also, KCPL's
profitability is expected to be low with operating margin of 2 to
3 per cent due to trading nature of operations. CRISIL believes
that KCPL's scale of operations will remain small over the medium
term due to the nascent stage of operations and intense
competition in the automobile industry.

KCPL's weak financial risk profile is marked by negative TOLTNW
and net worth as on March 31, 2014. The financial risk profile is
expected to improve over the medium term, driven by improvement in
the accretion to reserves.

KCPL's liquidity profile is below average marked by tightly
matched cash accruals to meet their repayment obligations however
the same has been supported by need based infusion of unsecured
loans by the promoters. The liquidity profile is further
constrained by large working capital requirements as reflected by
average bank limit utilization of 83 per cent during the period of
7 months through December 2014. The liquidity profile is expected
to improve with improvement in operating performance over the
medium term.

KCPL, incorporated in 2013, is an authorised dealer for Volkswagen
in Kerala. The company's area of operations includes Thrissur,
Malappuram, Guruvayoor, and Kunnamangalam.


M.S.KAARTHIKEYAN: CRISIL Ups Rating on INR52.5MM Term Loan to B+
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
M.S.Kaarthikeyan Garments (MSK) to 'CRISIL B+/Stable' from 'CRISIL
B/Stable', and has reaffirmed its rating on the firm's short-term
facilities at 'CRISIL A4'.

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Foreign Bill
   Discounting          32.5        CRISIL A4 (Reaffirmed)

   Inland/Import
   Letter of Credit      5          CRISIL A4 (Reaffirmed)

   Packing Credit       60          CRISIL A4 (Reaffirmed)

   Proposed Rupee
   Term Loan            52.5       CRISIL B+/Stable (Upgraded
                                   from 'CRISIL B/Stable')

The rating upgrade reflects CRISIL's belief that MSK will maintain
its improved business risk profile over the medium term, driven by
a steady increase in its revenue and sustenance of its moderate
operating margin. The firm reported revenue growth of 41 per cent
for 2013-14 (refers to financial year, April 1 to March 31), and
its revenue growth is expected to be healthy over the medium term.
CRISIL believes that MSK's operating margin will remain at current
levels over the medium term, supported by the firm's established
relationships with customers.

The ratings reflect MSK's modest scale of operations in the highly
competitive ready-made garments industry and the firm's below-
average financial risk profile, marked by a weak capital structure
and stretched liquidity on account of large working capital
requirements. These rating weaknesses are partially offset by the
extensive experience of MSK's promoters in the ready-made garments
industry.

Outlook: Stable

CRISIL believes that MSK will maintain a stable its business risk
profile on the back of its promoters' extensive industry
experience. The outlook may be revised to 'Positive' if the firm
significantly improves its scale of operations, while improving
its capital structure. Conversely, the outlook may be revised to
'Negative' if MSK's liquidity deteriorates because of larger
working capital requirements, low cash accruals, or a decline in
revenue or profitability.

Established in 1992 as a partnership firm, MSK manufactures and
exports ready-made garments. The firm's day-to-day operations are
managed by Mr. S Karthikeyan and his family members.


MEHALA CARONA: CRISIL Cuts Rating on INR234.9MM Cash Loan to D
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Mehala
Carona Textiles Pvt Ltd (MCT; part of the Mehala group) to 'CRISIL
D/CRISIL D' from 'CRISIL C/CRISIL A4.'

                        Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Cash Credit            234.9       CRISIL D (Downgraded from
                                      'CRISIL C')

   Funded Interest         66.6       CRISIL D (Downgraded from
   Term Loan                          'CRISIL C')

   Letter of Credit        55.0       CRISIL D (Downgraded from
                                      'CRISIL A4')

   Proposed Long Term      10.8       CRISIL D (Downgraded from
   Bank Loan Facility                 'CRISIL C')

   Term Loan               85.0       CRISIL D (Downgraded from
                                      'CRISIL C')

   Working Capital        219.9       CRISIL D (Downgraded from
   Term Loan                          'CRISIL C')

The rating downgrade reflects instances of delays by the Mehala
Group in meeting the repayment obligations on its term debt. The
delays have been caused by the group's weak liquidity.

The Mehala group also has a below-average financial risk profile,
marked by a small net worth and weak debt protection metrics, and
is susceptible to volatility in raw material prices. The group,
however, benefits from its established position in the textile
cotton yarn market and its promoter's industry experience.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of MCT and Dharani Textiles Pvt Ltd
(DTPL). This is because MCT and DTPL, together referred to as the
Mehala group, are in the same line of business, have close
operational and financial linkages, including fungible cash flows,
and are under a common management.

MCT was set up in 1994 by Mr. R Doraisamy in Tirupur (Tamil Nadu).
The company manufactures hosiery yarn.


NAMRATA PROMOTERS: CRISIL Reaffirms B+ Rating on INR100MM Loan
--------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Namrata
Promoters & Builders (NPB) continues to reflect NPB's exposure to
intense competition and to the risks and cyclicality inherent in
the Indian real estate industry.

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

   Proposed Long Term
   Bank Loan Facility    75        CRISIL B+/Stable (Reaffirmed)

These rating weaknesses are partially offset by the extensive
industry experience of the firm's promoters, their funding
support, and its established brand image in Pune (Maharashtra) and
surrounding areas.

Outlook: Stable

CRISIL believes that NPB will continue to benefit over the medium
term from the promoters' extensive industry experience and their
funding support. The outlook may be revised to 'Positive' if the
firm retains the profits from its ongoing project. Conversely, the
outlook may be revised to 'Negative' if NPB's liquidity is
constrained by low cash inflows, or if it undertakes significantly
large debt-funded projects.

Update
NPB had competed around 90 per cent of its ongoing real estate
project by January 31, 2015, at a cost of around INR400 million.
The firm has received healthy bookings for over 90 per cent of the
total area of the project. The total sales value of the project is
expected at INR550 million, out of which around INR460 million has
already been received. For the project, the firm has availed a
term loan of INR68.5 million, which is expected to be fully repaid
by the end of March 2015.

NPB was expected to undertake a new project at a total cost of
INR255 million; this project has now been taken up in a another
company. The firm does not have any upcoming projects,
constraining its business visibility over the medium term.

NPB, established in 1994, is part of the Pune-based Namrata group.
The group was set up in 1987 by Mr. Deepak Shah and his brother,
Mr. Shailesh Shah. The Namrata group has executed numerous
residential and commercial projects in Pune over the past 25
years. NPB is currently executing Eco City, a 320-flat residential
project in Talegaon (Maharashtra).


PATEL WOOD: ICRA Reaffirms B Rating on INR4.5cr Cash Credit
-----------------------------------------------------------
ICRA has reaffirmed the long term rating outstanding on the
INR4.50 crore (enhanced from INR3.50 crore) cash credit facility,
sublimit of short term non fund based facility of Patel Wood Works
& Timber Mart (PWTM or the firm) at [ICRA]B. ICRA has also
reaffirmed the short term rating outstanding on the INR20.40 crore
(enhanced from INR18.90 crore) non-fund based facilities at
[ICRA]A4. The utilization of total limits should not exceed
INR20.40 crore at any given point in time.

                            Amount
   Facilities            (INR crore)    Ratings
   ----------            -----------    -------
   Fund Based-Cash Credit   (4.50)      [ICRA]B reaffirmed
   Non-fund Based-Letter
   of Credit                20.10       [ICRA]A4 reaffirmed
   Fund Based-Buyers
   Credit                  (14.00)      [ICRA]A4 reaffirmed
   Non Fund Based-Bank
   Guarantee                 0.30       [ICRA]A4 reaffirmed

The ratings reaffirmation takes into account Patel Wood Works &
Timber Mart's (PWTM) weak financial profile as reflected in
decline in operating income and modest profitability emanating
from highly competitive nature of the timber trading industry.
Besides, the working capital structure has remained stretched on
account of high inventory and debtor days, which has been funded
largely by payables backed by LC of 180-330 days resulting in high
TOL/TNW of 7.37 times as on 31st March 2014 and a moderately
leveraged capital structure. The ratings also take into account
margin susceptibility to fluctuation in timber prices and adverse
movement in foreign exchange market and vulnerability of earnings
to change in regulatory policies of exporting countries and India.
ICRA notes that the recent ban enforced by Myanmar government has
restricted the supply of round logs and is expected to disrupt
sourcing capabilities of Indian timber importers in the near to
medium term. Hence the company's ability to establish supply
arrangements with other importing countries and generate adequate
margins from import of processed timber would remain critical. The
ratings, however, factor in the management's established track
record in the timber industry and diversified clientele with
market presence across the country.

Established in the 1960s, as a partnership firm, PWTM is engaged
in the import of round log and cut to size Burmese teak timber and
caters to the domestic market. The firm gets the orders unloaded
at Kandla, Mangalore, Tuticorin and Mumbai ports. It has its head
office located in Reay Road, Mumbai. Ganeshprasad Impex Private
Limited (rated [ICRA]B/[ICRA]A4) is an associate concern of PWTM
and is engaged in the same line of business.

Recent Results
PWPL recorded a net profit of INR0.27 crore on an operating income
of INR14.08 crore for the year ending March 31, 2014.


PROVIDENCE TEXTILES: ICRA Assigns B Rating to INR8cr Cash Credit
----------------------------------------------------------------
ICRA has assigned its [ICRA]B rating to the INR8.00 crore long
term, fund based bank limits of Providence Textiles. ICRA has also
assigned its [ICRA]A4 rating to the INR2.00 crore short term fund
based bank limits of the firm.

                         Amount
   Facilities          (INR crore)    Ratings
   ----------          -----------    -------
   Cash Credit             8.00       [ICRA]B; assigned
   Bill Discounting        2.00       [ICRA]A4; assigned

ICRA's ratings are constrained by the weak financial profile of
the firm, characterized by low profitability, high gearing and
weak coverage indicators (Operating margin of 2.22% in 2013-14,
gearing of 3.88 times, Debt/OPBDITA of 16.36 times, NCA/Debt of 1%
as on March 31, 2014). Given the trading nature of business, the
firm's profitability remains low, which along with high dependence
on debt has resulted in weak debt coverage. This apart, the
ratings take into account the firm's high working capital
intensity (NWC/OI** of 41.0% in 2013-14) owing to high inventory
and debtor levels. The ratings also factor in the intense
competition in the textile industry, and the risks associated with
the partnership constitution like withdrawal of capital,
dissolution of the firm etc. However the rating favourably factors
in the extensive experience of the promoters in the textile
industry, strengths derived from being a part of the Bansal group
of Punjab which has also enabled the firm achieve sustained
revenue growth, albeit on a modest base, since inception.

Going forward, the ability of the firm to maintain its revenue
growth, improve debt coverage indicators and optimally manage its
working capital cycle will be the key rating sensitivities.

Incorporated in 2011 as a partnership firm by Mr Sanjay Bansal,
Providence Textiles is engaged in trading of woolen yarn and
garments in domestic and export markets. The firm is based in
Ludhiana, Punjab. The two partners of the firm are Mr Sanjay
Bansal and Ms Kanika Bansal and majority of the firm's exports are
to European countries such as Italy, Spain, Ireland etc.

Recent Results
In 2013-14, Providence Textiles reported a net profit of INR0.09
crore on an operating income of INR23.58 crore, as compared to a
net profit of INR0.03 crore on an operating income of INR17.83
crore in the previous year.


PURUSHOTTAM JAIRAM: CRISIL Assigns C Rating to INR25MM Cash Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL C/CRISIL A4' ratings to the bank
facilities of Purushottam Jairam and Co. (PJC).

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit            25       CRISIL C
   Letter of Credit       90       CRISIL A4

The ratings reflect PCJ's weak liquidity, driven by its stretched
working capital cycle, leading to instances of overdrawn cash
credit limits. The ratings also factor in the firm's weak
financial risk profile, marked by an aggressive capital structure
and inadequate debt protection metrics, its modest scale of
operations, and its exposure to risks relating to changes in
regulatory policies regarding timber import. These rating
weaknesses are partially offset by the extensive experience of
PCJ's promoters in the timber business and their continued fund
support.

PJC was originally established in 1964 as a proprietorship firm by
Mr. Purushottam Jairam Tank, later on it was reconstituted as a
partnership firm, with Mr. Purushottam Jairam Tank and Mr. Mitesh
Tank as partners. The firm trades in and processes timber logs. It
has a timber processing plant in Lakadganj, Nagpur (Maharashtra).


R D ENGINEERS: CRISIL Reaffirms B- Rating on INR50MM Cash Credit
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of R D Engineers India Pvt
Ltd (RDEPL) continue to reflect RDEPL's working-capital-intensive
operations, weak financial risk profile, marked by high gearing
and weak debt protection metrics, small scale of operations, and
high end-user-industry concentration.

                         Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit             50       CRISIL B-/Stable (Reaffirmed)
   Cheque Purchase          5       CRISIL A4 (Reaffirmed)
   Letter Of Guarantee    125       CRISIL A4 (Reaffirmed)
   Letter of Credit         5.8     CRISIL A4 (Reaffirmed)

These rating weaknesses are partially offset by the extensive
experience RDEPL's promoters in the engineering goods industry,
and its established relationships with customers and suppliers.
Outlook: Stable

CRISIL believes that RDEPL will continue to benefit over the
medium term from the extensive industry experience of its
promoters. The outlook may be revised to 'Positive' if there is an
improvement in the company's working capital cycle and if its net
cash accruals increase significantly, leading to a sustainable
improvement in its capital structure and liquidity. Conversely,
the outlook may be revised to 'Negative' RDEPL's working capital
cycle deteriorates further, or its operational performance is
weaker than expected, or if it undertakes an unanticipated debt-
funded capital expenditure programme.

RDEPL, incorporated in 1984 and promoted by Mr. S R Dua, is
engaged in design and fabrication of critical process equipment
such a pressure vessels, heat exchangers, columns, and towers for
refinery, petrochemicals, and fertiliser industries. The company
has its manufacturing facilities in Mumbai and Nashik
(Maharashtra).


RADHESHYAM SPINNING: ICRA Reaffirms B+ Rating on INR22.5cr Loan
---------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ assigned to
the INR22.50 crore term loan facility and to the INR12.50 crore
cash credit facility of Radheshyam Spinning Mill Private Limited
(RSMPL). ICRA has also reaffirmed the [ICRA]A4 rating to the
INR2.05 crore short term non-fund based limits of RSMPL.

                        Amount
   Facilities          (INR crore)    Ratings
   ----------          -----------    -------
   Term Loan              22.50       [ICRA]B+ reaffirmed
   Cash Credit            12.50       [ICRA]B+ reaffirmed
   Bank Guarantee          1.65       [ICRA]A4 reaffirmed
   Credit Exposure Limit   0.40       [ICRA]A4 reaffirmed

The assigned ratings continue to be constrained by the modest
scale of operation of RSMPL and the highly competitive business
environment given the fragmented nature of cotton industry thus,
limiting the company's ability to fully pass on the increase in
raw material prices and vulnerability of profitability to
unexpected movements in cotton prices which are in turn subject to
seasonality and crop harvest. ICRA also takes notes of the debt
funded nature of project undertaken by the company leading to
stretched capital structure and high working capital intensity of
its operations.

The ratings, also, favorably take into account the long experience
of promoters in the cotton industry and plant stabilisation in
first year of operation. The ratings also considers the close
proximity to raw material sources as the company is located in the
major cotton growing belt of India; operational support from group
concern ensuring steady supply of raw material (cotton bales) and
fiscal benefits in terms of interest subsidy, subsidized power
tariffs and refund of VAT.

Radheshyam Spinning Mill Private Limited (RSMPL) was incorporated
in March 2011 by Mr. Ramnik Bhalala, Mr. Dhansukh Nandaniya, Mr.
Rahul Patel and other 3 promoters. The company has installed 1440
rotors having an installed capacity of producing 5520 MTPA of
denim yarn. The commercial production of spinning unit has
commenced from 05th June 2013 against the estimate of April 2013
due to delay in getting power connection from GEB. Mr. Ramnik is
also a director in Shree Ram Cottex Industries Private Limited
which is engaged in cotton ginning and pressing as well as
cottonseed crushing activities.

Recent Results
During FY 2014, the company reported net profit of INR0.10 crore
on an operating income of INR63.15 crore.


RAJHANS COLD: ICRA Suspends B- Rating on INR2.5cr Cash Credit
-------------------------------------------------------------
ICRA has suspended the [ICRA]B- rating assigned to the INR1.52
crore term loans, INR0.40 crore cash credit facility, INR2.50
crore cash credit under APML (Agricultural Produce Marketing Loan)
and INR0.78 crore untied fund based bank facilities of Rajhans
Cold Storage Private Limited. The suspension follows lack of co-
operation from the company."


RELIANCE COMMUNICATIONS: Fitch Assigns 'BB-' Local Currency IDR
----------------------------------------------------------------
Fitch Ratings has assigned India-based telecom service provider,
Reliance Communications Limited (Rcom), Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDR) of 'BB-'. The Outlook
is Stable.

KEY RATING DRIVERS

Higher Leverage than Peers: Rcom's 'BB-' IDR is constrained due to
its higher leverage and weaker market position than average for
Fitch's-rated Asian telcos. Fitch's forecast for Rcom's funds flow
from operations (FFO)-adjusted net leverage of 5.0x for the
financial year ending 31 March 2015 (FY15) is much higher than for
its Indian peers. Market leader Bharti Airtel Limited's (Bharti;
BBB-/Stable) leverage is below 2.5x and third-largest operator
Idea Cellular Ltd's is below 3.5x. The forecast leverage assumes
payments in FY15 for licenses in the March 2015 spectrum auction.

Commitment to Deleverage: The ratings incorporate management's
commitment to deleverage and Fitch's expectation that Rcom will
manage its leverage below 4.5x during 2015-16.  We believe that
deleveraging will be mainly driven by an EBITDA expansion and a
planned sale of non-core assets. Fitch acknowledges management's
commitment to repay part of its USD6bn in net debt through sale of
assets including its sub-sea cable subsidiary Global Cloud Xchange
(GCX; B+/Stable), real estate and its pay-TV business. Management
intends to achieve a target debt/EBITDA of below 3.0x by end-March
2017.

Weaker Market Position: Rcom's IDR is currently capped at 'BB-'
given its market position as the fourth-largest telco in India,
with a revenue market share of only 8% in the USD30bn Indian
telecom services industry. The top three operators - Bharti,
Vodafone India and Idea - collectively have about 70% revenue
market share. However, Rcom's integrated approach and high cash
generation visibility with large proportion of recurring and
contractual revenue contribution from its wireless post-paid,
enterprise, tower and sub-sea cable businesses mitigates its
weaker market position.

Positive FCF on Low Capex: We believe that Rcom will generate at
least USD200m in annual free cash during FY16-18 as capex and
interest costs decline following its debt reduction. We forecast
that Rcom's FY15 cash flow from operations of USD700m-750m will be
sufficient to fund its capex of around USD500m-550m and dividends.
We expect Rcom to pay about USD400m-450m in interest and taxes. A
lower capex/revenue of 15%-16% than peers (top three telcos: 20%)
is driven by infrastructure sharing with Reliance Jio, part of
Reliance Industries Ltd (RIL; BBB-/Stable), an under-utilised
asset base and a smaller expected spectrum investment in March
2015 than peers.

During 2014, Rcom agreed to share around 43,000 towers and
120,000km of inter- and intra-city fibre network with Reliance Jio
for 17-20 years. Rcom's FY15 cash generation and leverage will
benefit as it will receive an up-front cash benefit and recurring
revenue each year from Reliance Jio. Under the agreement, Rcom has
reciprocal access to existing and future tower and fibre assets of
Reliance Jio, on similar terms.

Lower Spectrum Payments: We believe that Rcom is likely to commit
around INR40bn (USD667m) to renew its spectrum licences that are
expiring in seven circles in the March 2015 spectrum auction. That
is mainly because there is likely to be limited competition for
spectrum in these circles. Management expects this cost to be
lower. The top three telcos' are likely to commit about USD2bn-4bn
each to renew expiring spectrum licences. Also, we expect Rcom's
future spectrum outlays to be minimal given the majority of its
spectrum assets expire only in 2021.

Improving Competition: Rcom's ratings factor in a gradual increase
in average revenue per user (ARPU) as we expect industry
overcapacity to reduce and major telcos to increase tariffs during
2015 in response to high spectrum prices, inelastic demand and
lower competition from smaller telcos. However, we believe that
the benefits of improving voice tariff realizations will be
diluted by a decline in data tariffs caused by the increase in
competition in the data segment as Reliance Jio enters the market
in 2015.

Price competition in the Indian telco industry has declined
significantly since 2012, when three-four smaller operators exited
or scaled-back operations after the Indian Supreme Court cancelled
122 licenses. Further, during 2013-14, some pricing power returned
to the top companies as high costs prevented the financially
weaker bottom-six operators from acquiring spectrum in auctions.

KEY ASSUMPTIONS

Fitch's key assumptions within our rating case for the issuer
include:

- Revenue to grow by mid-single-digit percentage in FY16 driven by
improvement in ARPUs, increase in data services and income from
assets leased to Reliance Jio.

- Operating EBITDAR margin to improve by 150-200bp (FY14:31.3%)
driven by improving voice tariff realisation and growing economies
of scale in data segment. (Please refer to "2015 Outlook: Indian
Telecommunications Services", dated 10 November 2014 for details
on Fitch's view on the industry.)

- Rcom to generate at least USD200m in annual FCF. Capex/revenue
will be around 17%-18% in FY15 before trending down to 15%-16%
during FY16-18. FY15 capex will be higher due to additional
spectrum payments of INR10bn, which will account for 25% of total
spectrum commitment of INR40bn. Management assumes a lower amount.

- Effective interest rate of about 6.5%-7% over the Fitch base
case.

RATING SENSITIVITIES

Positive: Although unlikely in the short term, future developments
that may, individually or collectively, lead to a positive rating
action include:

- Improvement in competitive environment leading to higher cash
generation, resulting in Rcom's funds from operations (FFO)-
adjusted net leverage improving to below 3.5x on a sustained
basis.

Negative: Future developments that may, individually or
collectively, lead to negative rating action include:

- Higher-than-expected competition and/or an indication of that
management is less committed to deleverage, resulting in funds
from operations (FFO)-adjusted net leverage remaining above 4.5x
on a sustained basis.


RUDHRAYAN POLYESTERS: CRISIL Puts B+ Rating on INR49MM Cash Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Rudhrayan Polyesters (RP).

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Cash Credit           49         CRISIL B+/Stable
   Term Loan             12.5       CRISIL B+/Stable

The rating reflects RP's average financial risk profile marked by
modest net worth and average debt protection metrics, and the
susceptibility of its margins to volatility in polyester yarn
prices. These rating weaknesses are partially offset by the
extensive experience of RP's promoters in the textile industry.

Outlook: Stable

CRISIL believes that RP will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if RP achieves significant
profitability, increases its scale of operations substantially,
and witnesses improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if RP's
financial risk profile weakens because of decline in sales or any
large debt-funded capital expenditure.

Set up in 2010 as a partnership firm, RP undertakes texturising
and twisting of polyester partially oriented yarn (POY). It
manufactures texturised and twisted yarn in the denier range of 70
to 90.

RP reported a profit after tax (PAT) of INR1.18 million on net
sales of INR268.3 million for 2013-14 (refers to financial year,
April 1 to March 31), against a PAT of INR2.00 million on net
sales of INR230.7 million for 2012-13.


SAHARA GROUP: Sebi Cancels Unit's Portfolio Management License
--------------------------------------------------------------
The Times of India reports that the Securities and Exchange Board
of India (SEBI) on Feb. 27 cancelled the portfolio management
licence of Sahara Asset Management (AMC). Under this business,
Sahara AMC managed nearly INR77 lakh worth of funds for six
clients as of January 2015, according to the Sebi order.

The Sebi decision, however, will not impact Sahara's mutual fund
business under which the conglomerate managed assets worth nearly
INR148 crore as of December 2014, TOI relates.

According to the report, the order said that Sahara AMC was not a
'fit and proper person' to act as a portfolio manager and, hence,
the regulator rejected its application for renewal of certificate
of registration for that service.

"Sahara AMC shall, within thirty days from the date of
cancellation of certificate of registration as a portfolio
manager, transfer its business to another Sebi-registered
portfolio manager or allow the client to withdraw the securities
and funds in its custody at the option of the client, and in
either case, without any additional cost to the client. The option
shall be granted to each client separately," the order, as cited
by TOI, said.

Based in Maharashtra, India, Sahara Asset Management Company
Private Limited is a privately owned investment manager. The firm
manages separate client focused equity portfolios. It also manages
equity, fixed income, and balanced mutual funds for its clients.
The firm invests in the public equity and fixed income markets.
Sahara Asset Management Company Private Limited operates as a
subsidiary of Sahara India Financial Corporation Limited.

As reported in the Troubled Company Reporter-Asia Pacific on
Feb. 15, 2013, The Economic Times said the Securities & Exchange
Board of India (Sebi) on Feb. 13, 2013, seized bank accounts and
properties of two Sahara Group companies and its promoter, Subrata
Roy.  The move comes following the group's failure to refund
INR24,000 crore to investors as directed by the Supreme Court.

Sahara Group operates businesses ranging from finance, housing,
manufacturing and the media.  Sahara also sponsors the Indian
hockey team and owns a stake in Formula One racing team, Force
India.


SAKTHI TRADERS: CRISIL Assigns B Rating to INR52.5MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Sakthi Traders Shri Sakthi Hitech Agro Foodss
(STSSHAF).

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit          52.5       CRISIL B/Stable
   Long Term Loan        6.0       CRISIL B/Stable

The rating reflects STSSHAF's modest scale of operations in the
intensely competitive rice-milling industry and the susceptibility
of the firm's operating profitability to adverse government
regulations and to raw material price volatility. The rating also
factors in the firm's below-average financial risk profile, which
is marked by weak capital structure and debt protection metrics.
These rating weaknesses are partially offset by the extensive
experience of STSSHAF's promoters in the rice industry and healthy
demand prospects for the same.

Outlook: Stable

CRISIL expects the STSSHAF to maintain its moderate business risk
profile on the back of the long standing industry experience of
its management. The outlook may be revised to 'Positive' if the
company's revenues increase substantially, while maintain its
profitability, leading to an improvement in its financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
the company undertakes aggressive, debt funded expansions, or if
its revenues and profitability declines substantially leading to
deterioration in its financial risk profile.

STSSHAF, incorporated in 1994 and based in Karaikudi (Tamil Nadu),
is engaged in milling and processing of paddy into rice, rice
bran, broken rice and husk. The company's day-to-day operations
are managed by Mr. G. Palanichamy.

STSSHAF, reported profit after tax (PAT) of INR0.35 million on
total revenue of INR196.4 million for 2013-14 (refers to financial
year, April 1 to March 31), as against PAT of INR0.23 million on
total revenue of INR128.8 million for 2012-13.


SARWATI HOME: CRISIL Assigns B Rating to INR47.6MM Cash Credit
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating on the long-term
bank facilities of Sarwati Home Furnishings (SHF).

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit          47.6       CRISIL B/Stable
   Term Loan            35.1       CRISIL B/Stable

The rating reflects SHF's nascent stage of operations, along with
significant offtake risks, and exposure to intense competition in
the textile industry. These rating weaknesses are partially offset
by the promoters' extensive experience in the industry.

Outlook: Stable

CRISIL believes that SHF will continue to benefit from the
extensive experience of the promoters in the textile industry over
the medium term. The outlook may be revised to 'Positive' in case
of successful commissioning of the firm's plant and its strong
revenue and profitability. Conversely, the outlook may be revised
to 'Negative' in case of lower-than-expected revenue or
profitability leading to significant impact on SHF's debt
servicing ability.

SHF was set up in May 2014 as a partnership firm by Mr. Jughminder
Das Jain, Mr. Sachin Jain, and Mr. Punita Jain. The firm is
setting up a unit to manufacture polyester fabrics at Panipat
(Haryana). The unit is expected to begin commercial production
from April 2015.


SHARDA TIMBERS: ICRA Rates INR5.85cr Fund Based Loan at B+
----------------------------------------------------------
ICRA has assigned its long term rating of [ICRA]B+ to the INR5.85
crore fund based facilities of Sharda Timbers. ICRA has also
assigned its short term rating of [ICRA]A4 to the INR19 crore non
fund based facilities and INR5.15 crore unallocated non fund based
limits of the firm.

                             Amount
   Facilities              (INR crore)    Ratings
   ----------              -----------    -------
   Fund based facilities       5.85       [ICRA]B+; Assigned
   Non fund based facilities  19.00       [ICRA]A4; Assigned
   Unallocated non fund
   based facilities            5.15       [ICRA]A4; Assigned

For arriving at its ratings, ICRA has combined the business and
financial risk profiles of Sharda Timbers and group firm Ambica
Timbertrade Private Limited (ATT) (together referred to as 'the
group'). This is because the two entities have common promoters
and operate in the same line of business.

ICRA's rating is constrained by the group's moderate scale of
operations, which, coupled with the high competitive intensity in
the industry, has led to low operating margins and profits. The
ratings are further constrained by the group's weak financial
profile as reflected in its low net worth, high gearing, high
TOL/TNW ratio and weak debt coverage indicators. The ratings also
take into account the vulnerability of the group's profitability
to fluctuations in exchange rates, as most of the purchases are
from imports. Moreover, the proprietorship nature of the firm
exposes it to inherent risks like dissolution, withdrawal of
capital etc. The rating, however, favourably factors in the
extensive experience of the promoters in trading of timber and the
group's low debt repayment obligations.

Going forward, the ability of the group to scale up its operations
in a profitable manner while optimally managing its working
capital intensity will be the key rating sensitivities.

Sharda Timbers is a proprietorship firm owned by Mr Raj Kumar
Bansal and was established in 1995. The firm imports timber mainly
from Malaysia, Singapore and New Zealand. The variety of timber
that the firm deals in is mainly used in furniture making and
light construction work. The firm's factory at Gandhidham, Gujarat
is engaged in cleaning and sawing of logs to make clean squared
timber blocks. These blocks are thereafter sold from the firm's
offices in Nangloi, Haryana and Gandhidham, Gujarat.

Recent Results
The firm reported a net profit of INR0.15 crore on an operating
income of INR54.3 crore in FY14 as against a net profit of INR0.20
crore on an operating income of INR44.4 crore in the previous
year.


SHINDE DEVELOPERS: CRISIL Reaffirms D Rating on INR450MM Loan
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Shinde Developers Pvt
Ltd (SDPL) continue to reflect instances of delay by SDPL in
servicing its debt; the delays have been caused by the company's
weak liquidity arising out of tightly matched cash accruals with
debt repayments; and significant stretch in its working capital
cycle, especially its receivables.

                         Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Bank Guarantee         450         CRISIL D (Reaffirmed)
   Cash Credit            150         CRISIL D (Reaffirmed)
   Term Loan               61.6       CRISIL D(Reaffirmed)
   Working Capital
   Demand Loan             50         CRISIL D (Reaffirmed)

SDPL also has a below-average financial risk profile, marked by
its modest net worth and high gearing, and small scale of
operations with geographical concentration. The company, however,
benefits from the extensive industry experience of its promoters
in the civil construction and infrastructure development industry.

Update
SDPL reported an operating revenue of INR780 million in 2013-14
(refers to financial year, April 1 to March 31) with year-on-year
growth of 23 per cent. The company's operating margin remains
healthy, at 26.3 per cent for 2013-14. However, long working
capital cycle, with gross current assets of 380 days as on March
31, 2014, has put pressure on SDPL's financial risk profile,
especially liquidity. This has resulted in the company
overutilising its cash credit limit and delaying servicing its
debt.

SDPL's capital structure remains aggressive, marked by a modest
net worth of INR279 million and high gearing of 1.47 times, as on
March 31, 2014. The company's debt-servicing ability has been
hampered by stretched working capital cycle.

SDPL was established in 1997 by Mr. Sunil Shinde. The company
undertakes civil construction activities such as irrigation
projects, road development, highway maintenance, and storm water
drainage for the Government of Maharashtra as well as private
players in Maharashtra. The company also provides logistic
services.


SM EBERSPAECHER: CRISIL Reaffirms B- Rating on INR100MM Loan
------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of SM
Eberspaecher Exhaust Pvt Ltd (SME) continues to reflect SME's weak
financial risk profile on account of losses, and its below-average
business risk profile because of vulnerability to volatility in
raw material prices and large working capital requirements.

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Cash Credit         100          CRISIL B-/Stable (Reaffirmed)
   Term Loan            93.5        CRISIL B-/Stable (Reaffirmed)

These rating weaknesses are partially offset by SME's established
relationships with original equipment manufacturers (OEMs), and
its promoters' extensive experience in manufacturing four-wheeler
exhausts and their funding support to the company.

Outlook: Stable

CRISIL believes that SME will continue to benefit over the medium
term from its promoters' established relationship with OEMs and
extensive industry experience. The outlook may be revised to
'Positive' if SME substantially improves its turnover and
profitability on a sustainable basis, and hence, breaks even at
the net level. Conversely, the outlook may be revised to
'Negative' if continued cash losses or any large debt-funded
capital expenditure (capex) or lengthening of working capital
cycle strains the company's liquidity.

Update
In 2014-15 (refers to financial year, April 1 to March 31), SME's
turnover is expected to decline by around 40 per cent from INR631
million in 2013-14, driven by reduced order flow from its key
customers Tata Motors Ltd and General Motors India Pvt Ltd.
Furthermore, because of continued under-utilisation of capacity,
SME is likely continue incurring cash losses. While the company's
working capital cycle remains large, around five months, lower
turnover and continued promoter funding has resulted in minimal
reliance on external debt.

Because of continuous losses, SME's net worth has been declining.
The net worth is expected at around INR210 million as on March 31,
2015. However, because of limited reliance on external debt, the
company's gearing is expected to remain below 1 time as on March
31, 2015. SME is implementing a capex programme of INR165 million
towards setting up a plant in Chennai. The capex will be funded in
a debt-to-equity ratio of about 1.5 times which will lead to
marginal weakening of the company's gearing over the medium term.
SME's liquidity remains constrained by cash losses and debt
obligations. However, the liquidity is supported by funds from
promoters. CRISIL believes that SME's financial risk profile,
particularly its liquidity, will remain susceptible to cash
losses.

SME was incorporated in 1997 as a 50:50 joint venture between SM
Auto Engineering Pvt Ltd (rated CRISIL BBB-/Stable) and
Eberspaecher GmbH & Co. KG, Germany. SME manufactures four-wheeler
exhausts.


SONY FIREWORKS: CRISIL Reaffirms B+ Rating on INR62.5MM Loan
------------------------------------------------------------
CRISIL's ratings on the bank loan facilities on Sony Fireworks Pvt
Ltd (SFPL; part of the Sony Fireworks group) continue to reflect
the Sony Fireworks group's below-average financial risk profile,
marked by weak debt protection metrics, its working-capital-
intensive operations, and its exposure to intense industry
competition. These rating weaknesses are partially offset by the
extensive experience of the group's promoters in the fireworks
industry.

                      Amount
   Facilities        (INR Mln)   Ratings
   ----------        ---------   -------
   Bank Guarantee       .3       CRISIL A4 (Reaffirmed)
   Cash Credit        62.5       CRISIL B+/Stable (Reaffirmed)
   Letter of Credit    1.5       CRISIL A4 (Reaffirmed)
   Long Term Loan      1.7       CRISIL B+/Stable (Reaffirmed)

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SFPL, Sqny Fireworks (SF), Sony Pyro
International (SPI), Micky Paper Caps Works(MPCW), Vinayaga
Fireworks (VF), and Vinayaga Fireworks Industries (VFI).
Previously, CRISIL had combined the business and financial risk
profiles of SFPL, VF, and VFI. This is because all these five
entities, together referred to as the Sony Fireworks group, have
strong operational and financial linkages, and are under the same
management.

Outlook: Stable

CRISIL believes that the Sony Fireworks group will continue to
benefit over the medium term from its promoters' extensive
industry experience. The outlook may be revised to 'Positive' if
the group reports significant improvement in scale of operations
and profitability leading to sustained improvement in cash
accruals and capital structure. Conversely, the outlook may be
revised to 'Negative' in case of deterioration in the group's
financial risk profile, particularly its liquidity, most likely
because of elongation of working capital cycle or significant
debt-funded capital expenditure.

SFPL, incorporated in 1991 and based in Sivakasi (Tamil Nadu), is
promoted by Mr. P Karvannan and Mr. P Ganesan. The company
manufactures and distributes fireworks. VF, SF, SPI, MPCW and VFI
were established as partnership firms and are engaged in the same
business.


SPICEJET LTD: No 'Overlaps' in SpiceJet-Singh Deal, CCI Says
------------------------------------------------------------
The Times of India reports that the Competition Commission of
India (CCI) has said Ajay Singh's acquisition of controlling stake
in SpiceJet Ltd will have no "horizontal overlaps or vertical
relationship" between the two parties.

As part of a revival plan, Singh has snapped up 58.46 per cent
stake in SpiceJet after getting green signal from CCI, the report
says.

Clearing the deal, the fair trade watchdog said it was not "likely
to cause any appreciable adverse effect on competition in India,"
notes TOI.

In its order, dated February 19 and made public on February 27,
CCI said that Singh is not associated with the operations or
ownership of any other existing airline, TOI relates.

"Accordingly, there are no horizontal overlaps or vertical
relationship between the SpiceJet and the acquirer (Singh) . . .
the proposed combination is a transfer of shares and control in
SpiceJet from the sellers to the acquirer," the fair trade
watchdog, as cited by TOI, said.

Citing the notice given by Singh, CCI said that he is a first
generation entrepreneur and has experience in the businesses of
information technology and airline operations, according to the
report.

Singh, who co-founded the airline some years back, purchased 58.46
per cent stake from former promoters Marans as part of the revival
plan that would also see INR1,500 crore capital infusion into the
airline, TOI notes.

                          About Spicejet

SpiceJet Limited -- http://www.spicejet.com/-- is an India-based
low-budget air carrier.  The Company operates daily flights
between major cities in India. The carrier is India's second-
biggest budget airline, after IndiGo.

As reported in the Troubled Company Reporter-Asia Pacific on
May 21, 2014, The Times of India said SpiceJet has posted its
highest ever annual loss of INR1,003.2 crore in the financial year
2013-14 up five times from INR191 crore in the previous fiscal.

As reported in the TCR-AP on Nov. 17, 2014, The Times of India
said auditors of financially struggling SpiceJet airlines have
cast 'significant' doubts on the ailing company's future.  The
low-cost carrier incurred a loss of INR310 crore in the quarter
ended Sept. 30, 2014, down 45% from the loss of INR560 crore in
same period last fiscal.

"As of that date (Sept. 30, 2014) the company's total liabilities
exceed its total assets by INR1,459.7 crore. These conditions
. . . indicate the existence of a material uncertainty that may
cast significant doubt about the company's ability to continue as
auditors point out that SpiceJet had made no provision for
interest of INR7.5 crore. "Had the same been accounted for, the
net loss for the quarter ended Sept.30, 2014, would have been
higher by INR7.5 crore," the auditor said.


SRI DURAIAPPA: ICRA Assigns B Rating to INR11cr LT Loan
-------------------------------------------------------
ICRA has assigned long-term rating of [ICRA]B to the INR11.00
crore fund based facilities Sri Duraiappa & Co.

                          Amount
   Facilities          (INR crore)     Ratings
   ----------          -----------     -------
   Long-term: Fund
   based facilities        11.00       [ICRA]B/assigned

While arriving at the ratings, ICRA has considered the
consolidated operational and financial risk profile of Sri
Duraiappa & Co, Sri Duraiappa Stores and Sri Duraiappa Agency. The
entities are collectively referred to as "the Group".

The rating takes into consideration the significant experience of
the promoters in the edible oil trading business of over three
decades and the healthy growth in the Group's operating income
aided by growth in volumes over the years. The rating is, however,
constrained by the Group's weak financial profile characterized by
thin profit margins inherent to the nature of the business with
limited value addition, weak capital structure with a high gearing
of 3.4 times as on March 31, 2014 on account of low accruals and
promoter drawings, and stretched coverage indicators. The rating
is further constrained by the Group's relatively small scale of
operations which limits its financial flexibility and
susceptibility of margins to volatility in edible oil prices. The
impact is, however, mitigated to some extent from diversification
benefit provided by income from two convenience stores run by the
Group.

Sri Duraiappa & Co was established as sole proprietorship in 1990
by Mr. S Murugan. The Firm is engaged in the refined edible oil
trading business in Chennai, Tamil Nadu. The Firm has two
associate entities viz. Sri Duraiappa Stores and Sri Duraiappa
Agency which are also into similar line of business. The Group
(refers to the three entities) also operates two convenience
stores in Chennai (Alandur and Tambaram). The stores are located
adjacent to the warehouses for storing the oil. In Alandur, the
warehouse-and-store complex is spread over an area of 7,600 sq.
ft. while the one in Tambaram is spread over an area of 5,900 sq.
ft.

Recent Results
The Firm reported a net profit of INR0.5 crore on an operating
income of INR180.4 crore during 2013-14 as against a net profit of
INR0.4 crore on an operating income of INR159.4 crore during 2012-
13.


SRI JAGDAMBA: CRISIL Cuts Rating on INR500MM Cash Loan to D
-----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Sri Jagdamba Ginning and Pressing Pvt Ltd (Part Ix Company) (SJG)
to 'CRISIL D/CRISIL D' from 'CRISIL BB+/Stable/CRISIL A4+'

                         Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bill Discounting        100       CRISIL D (Downgraded from
                                     'CRISIL A4+')

   Cash Credit             500       CRISIL D (Downgraded from
                                     'CRISIL BB+/Stable')

   Long Term Loan           10       CRISIL D (Downgraded from
                                     'CRISIL BB+/Stable')

   Standby Line of Credit   40       CRISIL D (Downgraded from
                                     'CRISIL BB+/Stable')

The rating downgrade reflects instances of delays by SJG in
servicing its debt. The delays have been caused by the company's
weak liquidity on account of the recent disruption at its plant
arising from limited availability of cotton.

SJG's operations remain susceptible to availability of cotton and
the volatility in cotton prices. The company is exposed to intense
competition and regulatory changes in the cotton ginning industry.
SJG also has a weak financial risk profile marked by its small
net-worth, high gearing, and below-average debt protection
metrics. However, the company benefits from its promoters
extensive experience in the cotton ginning business.

SJG was set up in 2007 by Mr. Raj Kumar Agarwal and his family
members. SJG is engaged in ginning and pressing of raw cotton. The
firm's ginning unit is located in Adilabad district in Telangana.


SYSTEM 5S: CRISIL Rates INR15MM New Working Capital Loan at B+
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of System 5S Pvt Ltd (SSPL).

                          Amount
   Facilities           (INR Mln)      Ratings
   ----------           ---------      -------
   Term Loan                 5         CRISIL B+/Stable

   Proposed Working
   Capital Facility         15         CRISIL B+/Stable

   Proposed Cash Credit
   Limit                     8         CRISIL B+/Stable

   Proposed Bank
   Guarantee                 6         CRISIL A4

   Bank Guarantee            4         CRISIL A4

   Cash Credit              12         CRISIL B+/Stable

The ratings reflect SSPL's modest scale of operations in the
highly fragmented safety equipment industry, and its below-average
financial risk profile, marked by a modest net worth. These rating
weaknesses are partially offset by the extensive industry
experience of the company's promoters.

Outlook: Stable

CRISIL believes that SSPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of a significant
increase in the company's scale of operations and profitability
leading to an improvement in its business risk profile.
Conversely, the outlook may be revised to 'Negative' if SSPL
undertakes any aggressive debt-funded expansion, or its cash
accruals decline substantially, leading to deterioration in its
financial risk profile.

Set up in 1991 as a proprietary concern and reconstituted as a
private limited company in 2003, SSPL is a Chennai (Tamil Nadu)-
based safety equipment manufacturer.

SSPL reported a profit after tax (PAT) of INR2.48 million on a
total revenue of INR86.18 million for 2013-14 (refers to financial
year, April 1 to March 31), against a PAT of INR1.48 million on a
total revenue of INR71.24 million for 2012-13.


VARDHMAN RICE: CRISIL Ups Rating on INR100MM Cash Loan to B+
------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Vardhman Rice Exports Pvt Ltd (VREPL) to 'CRISIL B+/Stable' from
'CRISIL B-/Stable'.

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit           100       CRISIL B+/Stable (Upgraded
                                   from 'CRISIL B-/Stable')

   Proposed Long Term      5       CRISIL B+/Stable (Upgraded
   Bank Loan Facility              from 'CRISIL B-/Stable')

The rating upgrade reflects improvement in VREPL's business and
financial risk profiles, driven by an increase in its revenue and
accruals, which are expected to increase further over the medium
term. The company has witnessed healthy improvement in its sales
volumes and capacity utilisation in 2014-15 (refers to financial
year, April 1 to March 31) backed by addition of customers and
robust demand from them. VREPL's revenue is expected to increase
by over 158per cent year-on-year to INR523.8 million in 2014-15,
and by about 10 per cent in 2015-16. CRISIL believes that VREPL's
improved turnover and expected stable operating margin will lead
to better cash accruals, which will cover its term loan
obligations over the medium term. The company's financial risk
profile will also be supported by funds from promoters.

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

Outlook: Stable

CRISIL believes that VREPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company reports a
significant increase in its sales and cash accruals, leading to
improvement in its liquidity and capital structure. Conversely,
the outlook may be revised to 'Negative' if VREPL's capital
structure and liquidity weaken, most likely because of low cash
accruals, substantial increase in its working capital
requirements, or large debt-funded capital expenditure.

VREPL was established in 2013 by Mr. Prem Chand, Mr. Sunil Kumar,
Mr. Hans Raj, and Mr. Raj Kumar. The company mills basmati rice.
Its manufacturing unit in Patran (Punjab) has milling and sorting
capacities of 4 tonnes per annum each.


VINAYAGA FIREWORKS: CRISIL Reaffirms B+ Rating on INR70MM Loan
--------------------------------------------------------------
CRISIL's ratings on the bank loan facilities on Vinayaga Fireworks
(VFI; part of the Sony Fireworks group) continue to reflect the
Sony Fireworks group's below-average financial risk profile,
marked by weak debt protection metrics, its working-capital-
intensive operations, and its exposure to intense industry
competition. These rating weaknesses are partially offset by the
extensive experience of the group's promoters in the fireworks
industry.

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Cash Credit           70         CRISIL B+/Stable (Reaffirmed)

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Sony Fireworks Private Limited (SFPL),
Sqny Fireworks (SF), Sony Pyro International (SPI), Micky Paper
Caps Works(MPCW), Vinayaga Fireworks (VF), and VFI. Previously,
CRISIL had combined the business and financial risk profiles of
SFPL, VF, and VFI. This is because all these five entities,
together referred to as the Sony Fireworks group, have strong
operational and financial linkages, and are under the same
management.

Outlook: Stable

CRISIL believes that the Sony Fireworks group will continue to
benefit over the medium term from its promoters' extensive
industry experience. The outlook may be revised to 'Positive' if
the group reports significant improvement in scale of operations
and profitability leading to sustained improvement in cash
accruals and capital structure. Conversely, the outlook may be
revised to 'Negative' in case of deterioration in the group's
financial risk profile, particularly its liquidity, most likely
because of elongation of working capital cycle or significant
debt-funded capital expenditure.

SFPL, incorporated in 1991 and based in Sivakasi (Tamil Nadu), is
promoted by Mr. P Karvannan and Mr. P Ganesan. The company
manufactures and distributes fireworks. VF, SF, SPI, MPCW and VFI
were established as partnership firms and are engaged in the same
business.


VINAYAGA FIREWORKS: CRISIL Reaffirms B+ INR55MM Cash Loan Rating
----------------------------------------------------------------
CRISIL's rating on the bank loan facility on Vinayaga Fireworks
Industries (VFI; part of the Sony Fireworks group) continue to
reflect the Sony Fireworks group's below-average financial risk
profile, marked by weak debt protection metrics, its working-
capital-intensive operations, and its exposure to intense industry
competition. These rating weaknesses are partially offset by the
extensive experience of the group's promoters in the fireworks
industry.

                      Amount
   Facilities        (INR Mln)      Ratings
   ----------        ---------      -------
   Cash Credit           55         CRISIL B+/Stable (Reaffirmed)

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of Sony Fireworks Private Limited (SFPL),
Sqny Fireworks (SF), Sony Pyro International (SPI), Micky Paper
Caps Works(MPCW), Vinayaga Fireworks (VF), and VFI. Previously,
CRISIL had combined the business and financial risk profiles of
SFPL, VF, and VFI. This is because all these five entities,
together referred to as the Sony Fireworks group, have strong
operational and financial linkages, and are under the same
management.

Outlook: Stable

CRISIL believes that the Sony Fireworks group will continue to
benefit over the medium term from its promoters' extensive
industry experience. The outlook may be revised to 'Positive' if
the group reports significant improvement in scale of operations
and profitability leading to sustained improvement in cash
accruals and capital structure. Conversely, the outlook may be
revised to 'Negative' in case of deterioration in the group's
financial risk profile, particularly its liquidity, most likely
because of elongation of working capital cycle or significant
debt-funded capital expenditure.

SFPL, incorporated in 1991 and based in Sivakasi (Tamil Nadu), is
promoted by Mr. P Karvannan and Mr. P Ganesan. The company
manufactures and distributes fireworks. VF, SF, SPI, MPCW and VFI
were established as partnership firms and are engaged in the same
business.


VOHRA FOODS: CRISIL Assigns B+ Rating to INR80MM Cash Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Vohra Foods Pvt Ltd (VFPL).

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Term Loan               9.5        CRISIL B+/Stable
   Cash Credit            80          CRISIL B+/Stable
   Proposed Long Term
   Bank Loan Facility     35.5        CRISIL B+/Stable

The rating reflects VFPL's below-average financial risk profile,
marked by its leveraged capital structure and average debt
protection metrics. The rating also factors in the company's
modest scale of operations in the intensely competitive basmati
rice market and susceptibility of its operating margin to any
adverse impact of government regulations and to volatility in raw
material prices. These rating weaknesses are partially offset by
the promoters' extensive industry experience, their financial
support, and healthy growth prospects for the basmati rice
industry.

Outlook: Stable

CRISIL believes that VFPL will continue to benefit over the medium
term from the promoters' extensive experience in the rice
industry. The outlook may be revised to 'Positive' in case of
significant improvement in the company's financial risk profile on
account of better-than-expected accruals led by improvement in the
scale and operating profitability or due to capital infusion by
the promoters. Conversely, the outlook may be revised to
'Negative' if VFPL undertakes aggressive debt-funded expansion or
reports a substantial decline in revenue and profitability, or if
there is a stretch in its working capital cycle, thereby weakening
its financial risk profile.

VFPL was established in 2008 by the Kumar family based in
Ferozepur (Punjab). The company is promoted by Mr. Raj Kumar, Mr.
Mohit Kumar, Mr. Pankaj Kumar, Mrs. Shashi Rani, and Mrs. Raj
Karni. It is engaged in milling, processing, and selling of
parmal, paddy and basmati rice in domestic markets. Its plant is
located in Ferozepur.

VFPL reported profit after tax (PAT) of INR0.5 million on net
sales of INR281.0 million for 2013-14 (refers to financial year,
April 1 to March 31) vis-a-vis PAT of INR0.3 million on net sales
of INR176.0 million for 2012-13.


WATTSUN ENERGY: ICRA Puts SP 3D Grading on Weak Fin'l Strength
--------------------------------------------------------------
ICRA has assigned 'SP 3D' grading to Wattsun Energy India Private
Limited (WEIPL), indicating 'Moderate Performance Capability' and
'Weak Financial Strength' of the channel partner to undertake off-
grid solar projects. The grading is valid till February 25, 2017
after which it will be kept under surveillance.

Grading Drivers
Strengths Technically sound promoters with experience in solar and
related industry Strong technical team , who are well qualified
for solar projects Increasing awareness and support from both
central and state governments for the promotion of solar power;
hence, good demand in off-grid segment.

Risk Factors

Stretched financial profile as characterized by small scale of
operations and low net-worth Projects and O&M network concentrated
in Southern India Company has installed ~61KWp of solar power
plants indicating the moderate installation levels Large number of
unorganized players indicating high level of competition which may
lead to pressure on margins.

Fact Sheet
Year of Establishment: 2014
Office Address: TC: 36/38 (1), Aiswarya Tower, First Floor,
                Chackai, Trivandrum 695024
President: Mr. Terance Alex

WattSun Energy India Private Limited is an ISO 50001-2011 Energy
Management Systems Certified Company. Incorporated in March 2014,
they provide on grid and off grid solar PV installation solutions.
The company serves all three segments of customers such us
domestic, commercial and industrial customers. The company is
registered with small scale industries and also empanelled in
Kerala Small Industries Development Corporation.

Promoter Track Record: Mr. Terance Alex has an overall experience
of more than 10 years at different organisations in India, UK, and
UAE. He has worked in business development at Medacs, Orient
Financial Brokers, Spencer Holidays, and with Rensync Technologies
for two years where he gained knowledge of solar based products
and subsequently set up WEIPL in 2014. Mr. Jimmy S. has ~10 years
of experience as accounts manager and finance controller and has
expertise in human resource management. The company was
incorporated in March 2014, and has installed 61 KWp of solar
plants.

Technical competence and adequacy of manpower: The company is
primarily engaged in the integration of Solar power plants and
other solar products. The technical competence is adequate as
represented by positive feedback from the customers and well
qualified management profile.

The company has a total of 16 employees including top and middle
management, of which ~8 are engaged in technical department. The
team members of WEIPL are well trained in fabrication and
installation of solar products. The technical competence is
adequate as represented by positive feedback from the customers
and well qualified management profile. The employee base for the
company is adequate for the size of operations for the company.
Quality of suppliers and tie ups: The Company procures materials
like panels, inverters, battery, structures, cables, etc for the
installation of its solar power plants, etc. The Company is
associated with Emmvee Photovoltaic, Emerson, Renesola, Exide and
Vikram Solar etc. The Company has a rigorous process for choosing
the suppliers indicating their highest level of commitment to best
quality delivery. Additional manpower is hired on contract basis
based on requirement during project Installation & Commissioning.
Customer and O&M Network: The Company's operations are currently
concentrated in Kerala. The Company, however, has a diversified
customer base having installed products in both the residential
and commercial segments. The quality of company's products,
timeliness in execution and after sales service has led to
satisfactory feedback from customers. The warranty for the
products of the installation is 5 years while for the performance
is 25 years. Currently, the technical team handles the maintenance
requirements as well. However company is planning to increase the
O&M team size in near future based on requirement.

Financial Strength: Weak
Revenues: INR0.0 crore in FY14
Return on Capital Employed (RoCE): -8.2% in FY14
Total Outside Liabilities/Tangible Net worth: 0.02 times
Interest Coverage Ratio: NA
Net-Worth: INR0.01 crore for company in FY14
Rs 1.44 crore of promoters
Current Ratio: 11.7 times
Relationship with bankers: Bankers are satisfied with company's
conduct

The overall financial profile of the firm is Weak.



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


* JAPAN: 1,726 Business Failures Linked to March 2011 Disasters
---------------------------------------------------------------
Jiji Press reports that a total of 1,726 businesses went bankrupt
due to reasons linked to the March 2011 earthquake and tsunami and
subsequent nuclear accident, according to Teikoku Databank Ltd.

Liabilities left by the failed companies comes to
JPY1.56 trillion, the private credit research company said on
March 2, notes the report.

According to Jiji Press, the number of bankruptcies stood at 650
in the first year following the disasters, then decreased to 489
in the second year, 354 in the third year and 233 in the fourth
year.

Still, Teikoku Databank said bankruptcies are expected to continue
occurring sporadically, Jiji Press notes. In the fourth year, many
companies that had managed to continue operations despite damage
from the disasters were finally forced to shut down, the research
company said, the report relays.

Recently, about 20 companies have gone bust per month, Teikoku
Databank, as cited by Jiji Press, said.

In comparison, 394 companies went bankrupt in the first three
years after the Kobe area was devastated by a major earthquake in
January 1995, according to the report.

Jiji Press relates that with the impact of the 2011 disasters
spreading to wide areas of the country, the number of bankruptcies
in the four years totaled 409 in Tokyo, followed by 146 in Miyagi
Prefecture, 94 in Ibaraki Prefecture, and 92 each in Hokkaido and
Shizuoka Prefecture. The number stood at 34 in Iwate Prefecture
and 55 in Fukushima Prefecture.

Iwate, Miyagi and Fukushima were the three prefectures hit hardest
by the quake and tsunami, the report notes.

According to Jiji Press, Teikoku Databank said by industry, the
number of bankruptcies came to 380 in the services sector, 349 in
the wholesale sector and 337 in the manufacturing sector.

Of all bankruptcies in the four years, 180 were caused by the
effects of the nuclear accident, the report says. In the fourth
year, the number of such bankruptcies came to 36, or 15.5 percent
of the total of 233 bankruptcies. The proportion was up from 11.3
percent in the third year, Jiji Press adds.



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


SOLID ENERGY: Lenders Could Face More Losses on Loans
-----------------------------------------------------
Hamish Rutherford at Stuff.co.nz reports that Solid Energy is
negotiating a fresh restructure which could see lenders to the
state owned enterprise accept more losses on their loans.

Stuff.co.nz relates that Kevin Murphy, the chief executive of New
Plymouth-based TSB Bank, on March 2 confirmed that talks were
underway about a package for Solid Energy, which has racked up
hundreds of millions of dollars of losses as ambitious projects
foundered and coal prices fell.

Last week TSB Bank wrote off the entire value of its
NZ$54 million loan to Christchurch-based Solid Energy, the report
says.

According to Stuff.co.nz, Mr. Murphy said the move was one of
prudence, and the bank was still hopeful of getting at least some
of the money back.

"We have been part of some discussions with the other banks in
putting together a package that would hopefully help the company
see its way through," the report quotes Mr. Murphy as saying.
"Those discussions are ongoing."

On Feb. 28, State Owned Enterprises Minister Todd McClay said the
Government was not willing to put more taxpayer funds at risk in a
bid to help Solid Energy, something Murphy said had been
communicated to lenders, Stuff.co.nz relates.

While he would not say what form a restructure might take,
Mr. Murphy indicated TSB Bank was also unwilling to come up with
more loans for Solid Energy, the report relays.

"We're not prepared to put any more money. Where the other banks
sit on that, I don't know," Mr. Murphy said, before adding that it
was "absolutely" the preference that it recovered at least some of
its loans, according to the report.

TSB took a hit of around NZ$13 million in late 2012 when a group
of lenders were forced to convert NZ$75 million of loans into
redeemable preference shares, a low value form of equity. This saw
the company's debt fall from just under NZ$400 million to NZ$320.5
million at the end of June, 2014, the report discloses.

Stuff.co.nz notes that the deal was highly controversial as many
in the financial sector claim lending to state owned enterprises
carries an implied government guarantee.

According to Stuff.co.nz, Finance Minister Bill English repeatedly
warned that if the banks were not willing to accept the deal, the
Government would put the company into receivership.

Nevertheless the Bank of Tokyo-Mitsubishi, which converted NZ$16.3
million of loans into shares, challenged the restructure in court,
the report says.  Jim Farmer, QC, acting for the Japanese bank,
said the move would effectively result in a haircut for banks as
the shares "have little or no value," Stuff.co.nz relates.

                         About Solid Energy

Solid Energy New Zealand Ltd is New Zealand's largest coal mining
company and an investor in research and commercialisation of
sustainable forms of energy that use coal, coal seam gas, biomass,
biodiesel and solar. Solid Energy's core mining business
includes hard coking coal, primarily for export to steel mills
throughout Asia, and thermal coal for the Huntly power station
and other domestic customers in the steel, dairy and cement
industries.

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 6, 2014, BusinessDesk said Solid Energy posted its third
annual loss in a row as the financially distressed state-
owned coal miner wrote down the value of its export operations
amid lower coal price assumptions, and warned of more red ink to
come.

BusinessDesk related that the Christchurch-based state-owned
enterprise reported a loss of NZ$181.9 million in the 12 months
ended June 30, compared to a loss of NZ$335.4 million a year
earlier, it said in its annual report tabled in Parliament on
October 31.  The company's board doesn't anticipate it will return
to profitability until the 2017 financial year, based on its
current projections, BusinessDesk added.


SOLID ENERGY: Government Resisting Pressure to Inject More Cash
---------------------------------------------------------------
BusinessDesk reports that Prime Minister John Key said it is "not
the government's preferred option" to make a fresh capital
injection into the troubled state-owned coal miner, Solid Energy,
but dodged journalists' questions at his weekly press conference
on whether that might prove necessary, insisting the company and
its banks were responsible for its debts.

Asked whether Solid Energy was depending for its ability to trade
on its "implicit government guarantee", Mr. Key said: "No. It
still has equity and cash in the bank," the report relays.

He would not discuss the reason for last week's resignation of
Solid Energy chair Pip Dunphy, although he was aware of her
reasons and described Solid as being in a "very delicate
position," according to BusinessDesk.

BusinessDesk notes that the company went through a government-
backed bailout in October 2013 after announcing heavy losses that
forced a clean-out of senior management and directors, and
required banks with lending to Solid take a NZ$75 million "hair-
cut", while the government extended NZ$100 million in secured
working capital and mortgages.

According to BusinessDesk, sources close to the company suggested
that with global coal prices remaining low for the foreseeable
future, the company's rate of cash burn cash means it will require
either another bailout, new lending terms, another round of
restructuring, or even receivership.

BusinessDesk relates that Mr. Key said the company had "a
reasonable amount of private sector debt" and the government had
made it clear that remained the responsibility of both the company
and its banks.  BusinessDesk says TSB Bank on Feb. 27 announced it
was writing off the entire NZ$54 million value of loans it had
made to the Christchurch-headquartered state-owned coal company.
Other lenders at the time of the 2013 bail-out were ANZ, BNZ, ASB,
and Bank of Tokyo, the last of which unsuccessfully attempted
court action to block its writedown.

"Banks have an exposure to the company and the question is how do
they best believe they can get some of that money back," the
report quotes Mr. Key as saying.

BusinessDesk sought comment from Solid Energy board members late
last week, ahead of a board meeting from which the company
announced it would delay release of its accounts for the first
half of the financial year, citing the potential impact of forward
pricing for coal to have an impact on its ability to meet debt
repayments when they come due next year. Other SOEs are releasing
their profit results this week, the report notes.

According to BusinessDesk, directors Keiran Home, a Christchurch
lawyer, and David Reece, a Queensland-based mining safety expert,
both said they intended to remain on the board, with Mr. Reece
saying Solid Energy was not trading with negative equity "from my
point of view, but we have meetings and things we are working
through."

"There are a number of plans that we have put forward to make sure
it holds together," Mr. Reece, as cited by BusinessDesk, said.

BusinessDesk says Solid Energy is a victim of both market factors
that have worked against it and the legacy of various capital-
intensive projects that were promoted to move Solid Energy into
renewable and new fuels businesses, none of which was successful
before being closed or sold after the company posted a
NZ$335 million loss in the year to June 30, 2013.

The company was once slated for partial sale under the
government's "mixed ownership model" programme, but is now
expected to remain in state ownership indefinitely while its
financial difficulties are worked through, adds BusinessDesk.

                         About Solid Energy

Solid Energy New Zealand Ltd is New Zealand's largest coal mining
company and an investor in research and commercialisation of
sustainable forms of energy that use coal, coal seam gas, biomass,
biodiesel and solar. Solid Energy's core mining business
includes hard coking coal, primarily for export to steel mills
throughout Asia, and thermal coal for the Huntly power station
and other domestic customers in the steel, dairy and cement
industries.

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 6, 2014, BusinessDesk said Solid Energy posted its third
annual loss in a row as the financially distressed state-
owned coal miner wrote down the value of its export operations
amid lower coal price assumptions, and warned of more red ink to
come.

BusinessDesk related that the Christchurch-based state-owned
enterprise reported a loss of NZ$181.9 million in the 12 months
ended June 30, compared to a loss of NZ$335.4 million a year
earlier, it said in its annual report tabled in Parliament on
October 31.  The company's board doesn't anticipate it will return
to profitability until the 2017 financial year, based on its
current projections, BusinessDesk added.


===============
T H A I L A N D
===============


TMB BANK: Fitch Keeps 'BB+' Support Rating Floor
------------------------------------------------
Fitch Ratings has assigned an expected 'BBB-(EXP)' rating to TMB
Bank Public Company Limited's (TMB; BBB-/Stable) proposed Chinese
yuan-denominated senior unsecured notes, issued under its USD3.0bn
euro medium-term note (EMTN) programme. The EMTN programme has
been rated 'BBB-'.

The proposed tenor for the notes is three years and they will be
issued out of TMB's Cayman Islands branch, with proceeds planned
for general corporate purposes, including meeting funding
requirements of the bank.

The final rating is subject to the receipt of final documentation
conforming to information already received.

KEY RATING DRIVERS
The notes are rated at the same level as Thailand-based TMB's EMTN
programme and Long-Term Foreign-Currency Issuer Default Rating
(IDR) of 'BBB-', as they represent unsecured and unsubordinated
obligations of the bank.

TMB's IDR reflects its stand-alone credit strength. TMB is
Thailand's seventh-largest commercial bank by assets as of
December 2014, and its rating is supported by continued
improvements in its financial performance.

RATING SENSITIVITIES
The rating on the senior unsecured notes would be directly
impacted by any changes in TMB's EMTN which, in turn, would be
affected by changes in the bank's IDR.

TMB's ratings could be hurt by a major deterioration in its
financial performance, such as in a weaker economic environment,
or from an increase in the bank's risk appetite. Meanwhile, the
bank's ability to maintain or improve its financial performance
and a clear strengthening of its domestic franchise would be
positive to the ratings.

The other ratings of TMB are unaffected by this action, and are as
follows:

Long-Term IDR: 'BBB-'; Outlook Stable
Short-Term IDR: 'F3'
USD3. bn senior unsecured medium-term note programme: 'BBB-'
Viability Rating: 'bbb-'
Support Rating: '3'
Support Rating Floor: 'BB+'
National Long-Term Rating: 'A+(tha)'; Outlook Stable
National Short-Term Rating: 'F1(tha)';
National subordinated debt rating: 'A(tha)'


Fitch Affirms Sri Lanka Telecom at 'BB-'/'AAA(lka)'/Stable
Ratings   Endorsement Policy
02 Mar 2015 2:26 AM (EST)
Fitch Ratings-Singapore/Colombo/Sydney-02 March 2015: Fitch
Ratings has affirmed Sri Lanka Telecom PLC's (SLT) Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BB-
'. The agency also affirmed SLT's National Long-Term Rating at
'AAA(lka)'. The Outlook is Stable.

KEY RATING DRIVERS

Tax Changes are Credit Negative: "We believe that the Sri Lankan
government's interim budget plan to impose significant recurring
and one-off taxes will cause a decline in SLT's 2015 operating
EBITDAR margin to 26% (2014: 30%) and its funds flow from
operation (FFO)-adjusted net leverage to deteriorate to 1.8x
(2014: 1.3x). SLT is likely to pay around LKR3.5bn-4bn in
additional taxes. However, SLT's ratings will remain unaffected as
headroom is sufficient."

The interim budget introduced a one-off super gains tax of 25% on
profits and a one-off tax of LKR250m on each mobile operator. It
also shifted the burden of a recurring telecom levy of 25% on
prepaid revenue on telcos from consumers; operators can no longer
pass these taxes onto consumers given retail pricing changes
require approval from the telecom regulator. The budget proposals,
once enacted, will be effective from 1 April 2015.

Acquisition Risk: "We think that SLT's plan to do a debt-funded
acquisition of a smaller operator in 2015 has the potential to
threaten its National Long-Term Rating, although probably not its
IDRs. Any rating action would depend on the acquisition price and
forecast financial profile of the combined entity," Fitch said.

"We believe that the taxation changes will hasten industry
consolidation as the number of telcos may be reduced to three from
five. Two smaller loss-making operators including Hutchison Lanka
and Bharti Airtel Limited's (BBB-/Stable) Sri Lanka subsidiary,
Airtel Lanka, may exit the industry," Fitch said.

Reduced Ratings Headroom: SLT's 'BB-' IDRs have sufficient ratings
headroom to accommodate a debt-funded acquisition of a smaller
operator as long as FFO-adjusted net leverage remains below 2.5x.
The ratings are underpinned by its market leading position in
fixed-line and second-largest position in the mobile market, along
with its ownership of a country-wide optical fibre network.

Negative FCF to Continue: "We forecast that SLT will have negative
free cash flows (FCF) in 2015-18 given lower EBITDA due to new
recurring taxes and a large capex plan. SLT will continue to
invest about 25%-28% of revenue in capex each year to expand its
optical fibre infrastructure and 3G/4G mobile networks. Dividends
would likely remain similar to the historical levels at LKR1.5bn,"
Fitch said.

Profitability to Decline: Fitch expects SLT's 2015 revenue to rise
by high single-digits driven by mobile data and fixed-broadband
services, which will more than offset declines in fixed-voice and
international revenue. Voice usage is likely to grow as
subscribers save 25% of their telecom spend as a result of the
shift of the telecom levy to telcos. Fitch forecasts that
operating EBITDAR margin will also fall, apart from tax changes,
due to a change in the revenue mix as low-margin data services
replace relatively higher-margin voice and text revenue.

KEY ASSUMPTIONS

Fitch's key assumptions within our rating case for the issuer
include:

- The tax changes proposed in the budget in February 2015 are
ratified by the parliament and effectively come in force starting
1 April 2015.
- Revenue to rise by high single-digits, driven by higher voice
usage on telecom levy savings and fast-growing data services.
- Operating EBITDAR margin to decline by 400bp-450bp due to higher
recurring taxes and a change in revenue mix as a low-margin data
revenue replaces more profitable voice and international service
revenue.
- Capex/revenue to remain high around 25%-28% as SLT expands it
fibre and 3G/4G networks.

RATING SENSITIVITIES

Negative: Future developments that may individually, or
collectively, lead to negative rating action include:

-A downgrade in the rating on the Sri Lanka sovereign (BB-/Stable)
will result in a corresponding action on SLT's IDRs as the
government directly and indirectly holds a majority stake in SLT.
-FFO-adjusted net leverage increasing to above 2.5x (2014: 1.3x)
on a sustained basis would lead to a downgrade of SLT's Foreign-
Currency IDR.
-A debt-funded acquisition of a smaller operator may threaten
SLT's National Long-Term Rating depending on the acquisition price
and the financial profile of the combined entity.

Positive: Future developments that may individually or
collectively lead to a positive rating action include:
-An upgrade in the rating on the Sri Lanka sovereign is likely to
lead to a corresponding upgrade in SLT's IDRs.
-As the ratings are currently constrained by government ownership,
the weakening of links with the sovereign may result in SLT's
Local-Currency IDR being upgraded above Sri Lanka's Local-Currency
IDR. However, SLT's Foreign-Currency IDR will remain constrained
by the Country Ceiling of 'BB-'.



                             *********

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

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

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


                            *********


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

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

Copyright 2015.  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.



                 *** End of Transmission ***