/raid1/www/Hosts/bankrupt/TCRAP_Public/151201.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, December 1, 2015, Vol. 18, No. 237
Headlines
A U S T R A L I A
FORTESCUE METALS: Deleveraging Supports 'BB+' LT IDR, Fitch Says
INJET DIGITAL: First Creditors' Meeting Set For Dec. 9
MISSION NEW ENERGY: All Resolutions Approved at Annual Meeting
PARK TRENT: ASIC Obtains Final Order Against Firm
WESLO STAFF: First Creditors' Meeting Set For Dec. 8
* Melbourne SMEs Closing Doors; Blame Parking Restrictions
C H I N A
CHINA GINSENG: Incurs $750,000 Net Loss in First Quarter
JIANGSU LVLING: Sees Uncertainty in Making Bond Payment
KU6 MEDIA: Reports Q3 Fiscal Year 2015 Financial Results
LOGAN PROPERTY: Moody's to Retain Ba3 CFR on Equity Issuance
SICHUAN SHENGDA: Unsure It Can Repay Notes Dec. 5 if Redeemed
SOUND GLOBAL: S&P Raises CCR to 'CCC+'; Outlook Stable
TIMES PROPERTY: Moody's to Retain B1 CFR on Land Acquisition
WINSWAY ENTERPRISES: Moody's Lowers CFR to C; Outlook Stable
H O N G K O N G
CHINA FISHERY: Fitch Lowers IDR to 'C' & Removes from Watch Neg.
CHINA FISHERY: Moody's Lowers CFR to Ca; Outlook Still Negative
CHINA FISHERY: S&P Lowers CCR to 'SD' on Missed Payment
CHINA FISHERY: KPMG Appointed as Provisional Liquidators
I N D I A
A-1 HEIGHTS: CRISIL Reaffirms B Rating on INR100MM Term Loan
AGARWAL AND ASSOCIATES: CRISIL Ups Rating on INR75MM Loan to B+
AL MANAMA: CRISIL Assigns B+ Rating to INR124MM Cash Loan
APOLLO CREATIONS: ICRA Withdraws B Rating on INR12cr Bank Loan
B.BUCHA REDDY: CRISIL Reaffirms 'D' Rating on INR80MM Bank Loan
BABA STRUCTURAL: CRISIL Reaffirms B- Rating on INR83.5MM Loan
BENZFAB TECHNOLOGIES: ICRA Suspends D Rating on INR7cr Loan
CHALAPATHI EDUCATIONAL: ICRA Reaffirms B+ INR10.21cr Loan Rating
COMMERCIAL AUTO: Ind-Ra Hikes Long-Term Issuer Rating to IND BB-
CORAL COVE: CRISIL Assigns 'B' Rating to INR41MM Term Loan
DTC PROJECTS: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating
EMBIOTIC LABORATORIES: CRISIL Rates INR120MM Cash Loan at B+
GAURI SHANKAR: ICRA Suspends 'B' Rating on INR9cr LT Loan
H.J. INDUSTRIES: Ind-Ra Assigns 'IND D' Long-Term Issuer Rating
IDBI BANK: S&P Assigns 'BB+' Rating on Proposed Sr. Unsec. Notes
INDIAN OVERSEAS: S&P Affirms 'BB+' ICR; Outlook Stable
JAIN SARVODAYA: Ind-Ra Assigns B+ Rating on INR541MM Term Loans
KEWIN CHEMICALS: CRISIL Reaffirms B+ Rating on INR15MM Loan
MADINENI INFRA: CRISIL Reaffirms B Rating on INR75MM Cash Loan
NEHANI TILES: ICRA Reaffirms 'B' Rating on INR6.48cr Term Loan
O. M. S. TAMARIND: CRISIL Ups Rating on INR15MM LT Loan to B+
P.G. ENTERPRISES: ICRA Suspends 'B' Rating on INR10.30cr Loan
PARAG MILK: Ind-Ra Assigns BB LT Issuer Rating; Outlook Stable
PATIDAR BOARDS: CRISIL Assigns B+ Rating to INR160MM LT Loan
PAXAL CORPORATION: ICRA Reaffirms B Rating on INR7.0cr Loan
RADHA RUKMANI: CRISIL Cuts Rating on INR50MM Cash Loan to 'D'
RAIGARH FOODS: ICRA Reaffirms B+ Rating on INR5.0cr Loan
RAJAT ISPAT: ICRA Reaffirms B+ Rating on INR6.0cr Cash Credit
RAJESHWARA FORGINGS: Ind-Ra Assigns IND B+ LT Issuer Rating
RAMA FERRO: CRISIL Reaffirms B+ Rating on INR30MM Cash Loan
RKR GOLD: ICRA Assigns 'B' Rating to INR20cr Fund Based Loan
RYTHU MITRA: CRISIL Reaffirms 'D' Rating on INR102.5MM LT Loan
S M RICE: CRISIL Reaffirms B+ Rating on INR50MM Cash Loan
SAHARA POULTRY: CRISIL Reaffirms B+ Rating on INR55MM Cash Loan
SHREE HANUMAN: ICRA Assigns 'B+' Rating to INR59.50cr Loan
SIVA SAI: ICRA Reaffirms 'B' Rating on INR11.25cr Loan
SOUNDARYA DECORATORS: CRISIL Ups Rating on INR125MM Loan to B+
SRI SAI: ICRA Reaffirms B+ Rating on INR9.50cr Cash Credit
SRI VENKATESWARA: ICRA Reaffirms B Rating on INR12.25cr Loan
VEHLNA STEELS: ICRA Reaffirms B+ Rating on INR6.68cr LT Loan
I N D O N E S I A
ALAM SUTERA: Fitch Affirms 'B+' LT IDR & Revises Outlook to Neg.
SRI REJEKI: S&P Revises Outlook to Negative & Affirms 'BB-' CCR
TOWER BERSAMA: S&P Lowers LT CCR to 'BB-'; Outlook Stable
* Indonesian Banks Under Stress, FT Reports
J A P A N
TOSHIBA CORP: Mulls Splitting Off Chip Business and Listing It
M A L A Y S I A
CHINA STATIONERY: Exits PN17 Status After Upliftment
M O N G O L I A
STATE BANK: Fitch Cuts LT Issuer Default Rating to 'B-'
T H A I L A N D
* Fitch Says Volatile Stock Market Pressure Thai Securities Firms
X X X X X X X X
* BOND PRICING: For the Week Nov. 23 to Nov. 27, 2015
- - - - -
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A U S T R A L I A
=================
FORTESCUE METALS: Deleveraging Supports 'BB+' LT IDR, Fitch Says
----------------------------------------------------------------
Fitch Ratings says that Australia-based iron ore miner Fortescue
Metals Group Limited's continued drive to cut its production costs
and deleverage supports its 'BB+' Long-Term Issuer Default Rating.
Fortescue reduced its cash production costs (C1 costs) by 47% yoy
to USD16.9/tonne in the first quarter of fiscal year ending 30
June 2016 (1QFY16), or by about USD2.4 bil. a year. This reflects
not only the company's deliberate cost reduction programmes, but
also the improved processing and upgrades of the ore.
The company expects its C1 costs, which include mining,
processing, port and rail costs, to average USD15/tonne or less in
FY16, assuming the AUD/USD exchange rate remains at 0.72.
Fortescue's all-in breakeven cost per ton, which includes
discounts for product grade and moisture content, as well as
interest and sustaining capex, improved to less than USD39/tonne
in 1QFY16. This provides Fortescue with some headroom against a
further drop in the iron ore price. Iron ore prices based on 62%
Fe-content insured and delivered to Tianjin port in China hovered
near a multi-year low of USD46.07/tonne on Nov. 25, 2015. Fitch
expects the average iron ore price to remain at USD50/tonne in
2015 and 2016.
The main driver of Fortescue's lower costs is its improved product
blend, stemming from the inclusion of iron ore from its new mines
at Solomon starting in early 2014. These mines have lower strip-
ratios, which make them cheaper to mine. Lower costs are also due
to increased ore processing and beneficiation, which has allowed
Fortescue to mine ore with higher impurities and lower iron
content and still maintain the quality of its output. Better
operating efficiencies, and to a lesser extent a weaker exchange
rate, have also helped to trim costs.
Fitch expects Fortescue's FFO-adjusted net leverage to remain
around 3.0x at FYE16 - the threshold beyond which negative rating
action may be considered, and to reduce thereafter. FFO adjusted
net leverage stood at 2.9x at FYE15, and is better than we
previously expected because the company achieved a higher average
iron ore price for FY15 than Fitch forecasts. On Nov. 25, 2015,
Fortescue announced that it repurchased USD750 mil. of its senior
unsecured notes (that were trading at a discount) through a tender
offer. This will reduce its debt maturities in 2019 and 2022 by
USD311 mil. and USD439 mil. respectively. Fortescue also bought
back bonds with face value of USD384 mil. via on-market purchases
in 1HFY16. Together, this will reduce its annual interest cost by
USD88 mil.
The Negative Outlook on Fortescue's Long-Term IDR continues to
reflect the medium-term uncertainty in the market price for iron
ore, driven by ongoing demand-supply imbalances. For example,
more than 145 million tonnes of new supply is set to come on
stream in aggregate, in 2015 and 2016, which is more than 10% of
the estimated seaborne iron ore market of around 1.3bn tonnes. In
addition, the closure of high-cost iron ore mines has been slower
than Fitch previously anticipated, despite the sharp fall in iron
ore prices since 2014. Global demand, led by China, has also been
weaker than Fitch previously anticipated, and is likely to remain
muted through 2016.
INJET DIGITAL: First Creditors' Meeting Set For Dec. 9
------------------------------------------------------
Michael Peldan and Morgan Lane of Worrells Solvency & Forensic
Accountants were appointed as administrators of Injet Digital
Aerosols Ltd on Nov. 27, 2015.
A first meeting of the creditors of the Company will be held at
Worrells Solvency & Forensic Accountants, 8th Floor 102 Adelaide,
in St Brisbane, Queensland, on Dec. 9, 2015, at 10:30 a.m.
MISSION NEW ENERGY: All Resolutions Approved at Annual Meeting
--------------------------------------------------------------
At Mission NewEnergy Limited's annual general meeting held
Nov. 25, 2015, all the following resolutions put to the members
were passed on a show of hands:
Resolution 1: Adoption of remuneration report
Resolution 2: Re-election of Director - Mr. James Garton
Resolution 3: Re-election of Director - Admiral (Retired) Tan
Sri Dato' Sri Mohd Anwar bin Haji Mohd Nor
Resolution 4: Approval of 10% Placement Facility
CEO's Statement at Annual Meeting
Thank you, Mr Chairman.
On behalf of my fellow directors of the company, I also bid you a
warm welcome to the 2015 Annual General Meeting of Mission
NewEnergy Limited.
The Annual report which was available to all shareholders a month
ago has most of the facts & figures of the year under review. My
team and I would be delighted to answer any queries that you may
have on the contents of the report at the end of this address.
I would like to use this opportunity to update you on the status
of the company's operations and some of the initiatives that we
will be seeking to implement in the forthcoming months.
As you may be aware, your Board and the Company's Executive
Management team have been focussed on completing the restructure
of the group's operations that was initiated in early 2012. The
restructure included the closure of unprofitable operations,
divestment of core assets, sale of redundant assets, settlement of
ongoing legal matters and settlement of the convertible note.
Some of the earlier initiatives were undertaken and completed
prior to 2015 and shareholders have been updated on these through
market announcements and annual reports of prior years.
2015 however has been a significant year where the restructure was
finally completed. Material elements to this restructure achieved
in the 2015 fiscal year included;
* the settlement of the Indonesian arbitration matter,
resulting in over US$3 million being received, of which US$2m
was utilized towards convertible note settlement,
* the sale of our 250,000 tpa refinery for US$22.5 million. As
part of the refinery sale we re-invested a portion of the
proceeds to retain a 20% stake in the refinery joint venture
with Felda Global Ventures Holdings Berhad , the world's
largest palm oil producer, and Benefuels a US based company
with a ground breaking disruptive and patented technology
process that will allow the refinery to be re-commissioned
and operated using substantially lower cost feedstock. The
joint venture is in the final stages of a detailed
engineering study which will determine the full anticipated
cost of the retrofit and expected time frame for the retrofit
to be completed and the refinery commissioned,
* Full settlement of the convertible notes facility with a
final payment of US$12 million, realising a net savings of
around AS$7.6 million for the Company,
* Amicable out of court settlement of the long-standing
disagreement with the EPCC contractor of our 250,000 tpa
refinery.
These initiatives have now left Mission with no debt, an equity
stake in a refinery and some cash to maintain operations and look
for new opportunities.
Your Board continues to look for new opportunities that are
achievable within cash constraints although new fund raising may
be required in due course to grow the business.
In closing, once again my heartfelt thanks to colleagues on the
Board for their invaluable guidance and my sincere appreciation to
Mission's dedicated employees who continue to contribute their
best during these times. To all our investors, my gratitude for
your support over these challenging times.
Thank you.
About Mission NewEnergy
Based in Subiaco, Western Australia, Mission NewEnergy Limited is
a producer of biodiesel that integrates sustainable biodiesel
feedstock cultivation, biodiesel production and wholesale
biodiesel distribution focused on the government mandated markets
of the United States and Europe.
The Company is not operating its biodiesel refining segment. The
refineries are being held in care and maintenance either awaiting
a return to positive operating conditions or the sale of assets.
The Company has materially diminished its Jatropha contract
farming operation and the company is now focused on divesting the
remaining Indian assets. The Company intends to cease all Indian
operations.
Mission NewEnergy reported profit of $28.4 million on $7.27
million of total revenue for the year ended June 30, 2015,
compared to a loss of $1.09 million on $9.68 million
of total revenue for the year ended June 30, 2014.
As of June 30, 2015, the Company had $12.6 million in total
assets, $5.85 million in total liabilities and $6.76 million in
total equity.
"Although we incurred an operating profit for the year ended June
30, 2015 of A$28.3 million (2014: A$1.1 million loss), we have a
history of net losses and there is a substantial doubt about our
ability to continue as a going concern," the Company states in its
annual report for the year ended June 30, 2015.
PARK TRENT: ASIC Obtains Final Order Against Firm
-------------------------------------------------
The Supreme Court of New South Wales has handed down final orders
further to the judgment delivered against Park Trent Properties
Group Pty Ltd on Oct. 15, 2015.
The court made the following orders against Park Trent:
* declarations that Park Trent had unlawfully carried on
an unlicensed financial services business for over 5 years
by providing advice to clients to purchase investment
properties through a self-managed super fund (SMSF); and
* a permanent injunction against Park Trent restraining them
from providing unlicensed financial product advice to clients
regarding SMSF's.
The orders also require Park Trent to post a notice on its website
outlining the orders made against it.
In his judgment, his Honour Acting Justice Sackville said that
'the publication of a notice on its website appropriately
recognises the seriousness of Park Trent's contravention and the
public interest in bringing Park Trent's conduct to the attention
of the community'.
ASIC Commissioner Greg Tanzer said: 'This outcome sends a strong
message, that there are serious consequences for property
spruikers who break the law by providing unlicensed financial
advice.'
ASIC launched legal proceedings in November 2014 against
Park Trent who, by the time of the trial in June 2015 had advised
over 860 members of the public to establish and switch funds into
an SMSF.
On Oct. 15, 2015, the Supreme Court of NSW found Park Trent had
been unlawfully carrying on a financial services business for over
5 years by providing advice to clients to purchase investment
properties through a SMSF.
WESLO STAFF: First Creditors' Meeting Set For Dec. 8
----------------------------------------------------
Michael Oscar Basedow and Leigh Deveron Prior of Pitcher Partners
were appointed as administrators of Weslo Staff Pty Ltd on Nov.
27, 2015.
A first meeting of the creditors of the Company will be held at
the offices of Pitcher Partners, Level 1, 100 Hutt Street, in
Adelaide, on Dec. 8, 2015, at 10:00 a.m.
* Melbourne SMEs Closing Doors; Blame Parking Restrictions
----------------------------------------------------------
Broede Carmody at SmartCompany reports that small businesses in
Melbourne's inner west are being forced to close their doors after
the local council introduced paid parking meters, with one
business owner saying there was zero consultation with the small
business community.
Bev Aisbett, the owner of Piece Gallery in Yarraville, told
SmartCompany she is closing her retail shop because the local
council introduced new restrictions in August that have resulted
in a significant drop in foot traffic.
According to the report, parking meters have been a highly emotive
issue in Melbourne's inner west recently, with a councillor at a
Maribyrnong City Council meeting punched in the head earlier this
month.
"It was almost a desert for the first couple of weeks [after the
parking meters were introduced]," SmartComany quotes Ms. Aisbett
as saying. "I'm looking out of the window at this very moment and
there are four people out there. If I relied only on this trade, I
would be begging on the streets a long time ago.
"This is not only affecting me. Two others have packed up and gone
in the last two months. There has been a lot of crying."
SmartCompany relates that Ms. Aisbett said she knew of one
business owner who was running a cupcake and muffin business and
was only making AUD6 a day after the parking meters came in.
"She was closing her doors at three o'clock and having to throw
out all of the stock she had made in case people did come in," Ms.
Aisbett told SmartCompany. "Emotionally, it takes a very big toll
if you're just sitting there waiting and waiting. It's our lives."
Mr. Aisbett said she received no letter in the mail regarding the
new parking restrictions.
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C H I N A
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CHINA GINSENG: Incurs $750,000 Net Loss in First Quarter
--------------------------------------------------------
China Ginseng Holdings, Inc., filed with the Securities and
Exchange Commission its quarterly report on Form 10-Q disclosing a
net loss of $751,000 on $21,600 of revenue for the three months
ended Sept. 30, 2015, compared to a net loss of $571,000 on $5,242
of revenue for the same period a year ago.
As of Sept. 30, 2015, the Company had $8.58 million in total
assets, $19.09 million in total liabilities and a total
stockholders' deficit of $10.5 million.
"[E]ven if the Company does raise sufficient capital to support
its operating expenses and generate adequate revenues, there can
be no assurance that the revenue will be sufficient to enable the
Company to develop business to a level at which it will generate
profits and cash flow from operations. These matters raise
substantial doubt about the Company's ability to continue as a
going concern," the Company states in the report.
A full-text copy of the Form 10-Q is available for free at:
http://is.gd/OG5Qkc
About China Ginseng
Changchun City, China-based China Ginseng Holdings, Inc., conducts
business through its four wholly-owned subsidiaries located in
China. The Company has been granted 20-year land use rights to
3,705 acres of lands by the Chinese government for ginseng
planting and it controls, through lease, approximately 750 acres
of grape vineyards. However, recent harvests of grapes showed
poor quality for wine production which indicates that the
vineyards are no longer suitable for planting grapes for wine
production. Therefore, the Company has decided not to renew its
lease for the vineyards with the Chinese government upon
expiration in 2013 and, going forward, it intends to purchase
grapes from the open market in order to produce grape juice and
wine.
China Ginseng reported a net loss of $3.90 million on $272,600 of
revenue for the year ended June 30, 2015, compared with a net loss
of $4.76 million on $2.61 million of revenue for the year ended
June 30, 2014.
Cowan, Gunteski & Co., P.A., in Tinton Falls, NJ, issued a "going
concern" qualification on the consolidated financial statements
for the year ended June 30, 2015, citing that the Company had net
losses of $3.90 million and $4.76 million for the years ended June
30, 2015 and 2014, respectively, an accumulated deficit of $18.1
million at June 30, 2015 and a working capital deficit of $16.5
million at June 30, 2015, and there are existing uncertain
conditions the Company faces relative to its ability to obtain
working capital and operate successfully. These conditions raise
substantial doubt about its ability to continue as a going
concern.
JIANGSU LVLING: Sees Uncertainty in Making Bond Payment
-------------------------------------------------------
Lianting Tu at Bloomberg News reports that a Chinese fertilizer
maker is unsure it can make a bond payment as it faces a cash
crunch amid a halt in production, highlighting mounting risks in
the local note market after at least six firms defaulted this
year.
Jiangsu Lvling Runfa Chemical Co. flagged the concern about the
so-called collective notes, which typically are issued by several
small- and medium-sized companies that don't have the ability to
sell securities on their own, in a Nov. 23 filing on China Money's
website, Bloomberg relates. The manufacturer, based in the
eastern city of Suqian, must repay CNY53.1 million ($8.3 million)
in principal and interest on Dec. 4 on the 6.2 percent notes that
have a total face value of CNY100 million, according to a
statement cited by Bloomberg. The filing didn't specify the other
issuers, Bloomberg notes.
Bloomberg says defaults are spreading in China as the weakest
economic growth in a quarter century drags on profits. China
Shanshui Cement Group Ltd. became the latest defaulter on domestic
notes when it missed payments earlier this month. About 43
companies have canceled or delayed CNY46.7 billion of bonds since
the cement maker issued a default warning on Nov. 5, Bloomberg
discloses.
According to Bloomberg, Jiangsu Lvling Runfa failed to deposit the
CNY53.1 million in its payment account before Nov. 20 as required
by the bond prospectus. Jiangsu Re-Guarantee is the guarantor for
the notes and will be responsible for payment in case of a
default, Bloomberg reports citing the company's filing.
KU6 MEDIA: Reports Q3 Fiscal Year 2015 Financial Results
--------------------------------------------------------
Ku6 Media Co., Ltd. announced its unaudited financial results for
the third quarter ended Sept. 30, 2015.
Mr. Feng Gao, chief executive officer of Ku6 Media, commented,
"The third quarter represented a period of advancement in our
services, as well as positive trends in our financials. We have
consistently seen user expansion as individuals are providing a
wider variety of content on our platform. Ku6 is focusing on the
trend toward video social communication with the creation of our
'Model Interactive Community'. We are also expanding our share of
the mobile market through the launching of the mobile application
'Modo', which is part of our cooperation agreement with Beijing
Modo. Ultimately, our goal is to continue to increase user
traffic while simultaneously enhancing our advertising
partnerships. In the third quarter, we have increased revenues
and continued to progress towards profitability, and have been
pleased with our current trends heading into 2016."
The Company reported a net loss of $641,000 on $2.45 million of
total revenues for the three months ended Sept. 30, 2015, compared
to a net loss of $932,000 on $1.61 million of total revenues for
the same period during the prior year.
For the nine months ended Sept. 30, 2015, the Company reported a
net loss of $2.13 million on $7.18 million of total revenues
compared to a net loss of $10.68 million on $5.11 million of total
revenues for the same period a year ago.
As of Sept. 30, 2015, the Company had $8.79 million in total
assets, $14.39 million in total liabilities and a total
shareholders' deficit of $5.59 million.
About Ku6 Media
Ku6 Media Co., Ltd. -- http://ir.ku6.com/-- is an Internet video
company in China focused on User-Generated Content. Through its
premier online brand and online video Web site --
http://www.ku6.com/-- Ku6 Media provides online video uploading
and sharing service, video reports, information and entertainment
in China.
Ku6 Media reported a net loss of $10.7 million in 2014 following a
net loss of $34.4 million in 2013.
PricewaterhouseCoopers Zhong Tian LLP, in Shanghai, the People's
Republic of China, issued a "going concern" qualification on the
consolidated financial statements for the year ended Dec. 31,
2014, citing that the Company's recurring losses, negative working
capital, net cash outflows, and uncertainties associated with
significant changes made, or planned to be made, in respect of the
Company's business model, raise substantial doubt about the
Company's ability to continue as a going concern.
LOGAN PROPERTY: Moody's to Retain Ba3 CFR on Equity Issuance
------------------------------------------------------------
Moody's Investors Service says that Logan Property Holdings
Company Limited's proposed equity issuance is credit positive, but
will not immediately impact the company's Ba3 corporate family
rating, B1 senior unsecured rating, and stable ratings outlook.
On Nov. 26, 2015, Logan announced that it had entered into a
placing and subscription agreement to issue up to 557 million
shares to investors, representing around 11.15% of its existing
issued share capital. The new shareholders include RRJ Capital
(unrated) and Value Partners Group Limited (unrated), who will
respectively hold 5.0% and 1.5% of Logan's shares upon completion
of the transaction.
The share placement will generate estimated net proceeds of
approximately HKD1.5 billion, which accounted for about 7% of its
reported debt as of June 2015.
"The proceeds from the equity issuance will enhance Logan's
liquidity position and lower its financial leverage, which in turn
provides greater financial flexibility for the company to execute
its growth strategy," says Dylan Yeo, a Moody's Analyst.
"The impact on the company's credit quality will be moderate,
given the modest size of the proceeds relative to its debt." adds
Yeo.
The equity issuance will further bolster Logan's liquidity, which
has already been adequate for its cash needs.
Its cash-on-hand, including restricted cash, was RMB6.4 billion at
end-June 2015. In addition, it raised RMB5 billion through two
domestic bond issuances in 3Q 2015, which it will use to refinance
maturing trust and bank loans.
Together with operating cash flow and contributions from its
project partners, Logan has sufficient internal cash sources to
cover its short-term debt, committed land payments and estimated
dividends in the next 12 months.
In addition, the proposed equity issuance will lower Logan's
reliance on debt for the funding needs of its growth plan.
Assuming that the proceeds from the share placement will allow
Logan to reduce the rate of growth in total debt, Moody's expects
Logan's financial leverage, in terms of revenue-to-debt, to
improve to about 78-83% in 2016, from our previous expectation of
75%-80%.
Logan is expanding its operations in the Shenzhen market; it made
large land purchases in the city amounting to RMB4.7 billion and
RMB11.25 billion in 2014 and 2015, respectively.
Moody's expects sales growth of about 10%-15% in 2016, stemming
from our expectation of continued pricing power at existing
projects and a step-up in contributions from projects in Shenzhen.
The company exhibited strong sales execution this year, with
contracted sales of RMB16 billion in the first ten months of 2015,
and is on track to meet its target of RMB18 billion for the full-
year. The full-year target represents a 35% increase from its
2014 contracted sales.
The financial ratios mentioned in this press release are based on
Moody's standard adjustments and the definitions stated in Moody's
Homebuilding And Property Development Industry, published in April
2015. Debt amounts do not include adjustments for mortgage
guarantees.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in April 2015.
Established in 1996, Logan Property Holdings Company Limited is a
property developer based in Shenzhen. The company's principal
focus is on residential projects in Shantou, Nanning and Huizhou.
The company listed on the Hong Kong Stock Exchange in December
2013. At end-June 2015, its land bank totaled 12.9 million square
meters in gross floor area across 14 cities in China, including in
Shantou, Nanning, and cities in the Pearl River Delta.
SICHUAN SHENGDA: Unsure It Can Repay Notes Dec. 5 if Redeemed
-------------------------------------------------------------
Bloomberg News, citing Chinamoney, reports that Sichuan Shengda
Group Ltd. is uncertain it can repay notes due in 2018 that
holders can opt to sell back early on Dec. 5.
Bank of Tianjin Co., the trustee manager on Sichuan Shengda's
notes, said it will hold a bondholder meeting on Dec. 3, according
to a statement to Chinamoney on Nov. 26, Bloomberg relates.
Sichuan Shengda's subsidiary's pig iron production is in halt
because of falling prices and the cash shortage, Bloomberg reports
citing the lender in a separate statement.
Bank of Tianjin said Sichuan Shengda and its subsidiary had a
total of CNY514.41 million of overdue borrowings as of Nov. 25,
Bloomberg relays.
Sichuan Shengda Group Ltd. is a pig iron producer based in the
southwestern province of Sichuan, China.
SOUND GLOBAL: S&P Raises CCR to 'CCC+'; Outlook Stable
------------------------------------------------------
Standard & Poor's Ratings Services said it raised its long-term
corporate credit rating on Sound Global Ltd. to 'CCC+' from 'CCC'.
The outlook is stable. At the same time, S&P raised its long-term
Greater China regional scale ratings on the company to 'cnCCC+'
from 'cnCCC'. S&P then withdrew the ratings at the company's
request. Sound Global is a water and wastewater treatment
solution provider based in China.
S&P upgraded Sound Global prior to the rating withdrawal because
S&P don't expect the company to face an immediate liquidity crisis
after it fully redeemed its senior unsecured debt due 2017. S&P
believes the company's liquidity pressure will have lessened over
the next 12 months, given that its outstanding debt is mostly
related to onshore bank loans at project level. However, S&P
lacks details over how Sound Global financed the redemption in
full of the outstanding amount of its US$150 million senior
unsecured notes due 2017.
S&P believes Sound Global's capital expenditure is associated with
its construction plans for wastewater treatment projects, which
depends on the company's financing capability. However, the
company may find it difficult to raise fresh funding from the
capital markets, in S&P's view, due to doubts about its financial
reliability and transparency. The suspension of trading in its
shares on the Stock Exchange of Hong Kong (SEHK) could also hamper
financing efforts.
In S&P's view, Sound Global still has governance deficiencies in
terms of internal controls and the reliability and transparency of
financial reporting. The company still has to provide independent
reports regarding its internal controls and a forensic
investigation before it can resume trading on the SEHK. On
Nov. 24, 2015, Sound Global announced its long-delayed preliminary
financial results for full-year 2014. The results were agreed by
the newly appointed auditors, HLB Hodgson Impey Cheng Ltd.
The stable outlook prior to the rating withdrawal reflected S&P's
view that Sound Global will not face a liquidity crisis over the
next 12 months. S&P believes the company's early redemption of
its senior notes is a positive step, but it is not aware how the
company is to sustain its business growth strategy and financing
capability.
TIMES PROPERTY: Moody's to Retain B1 CFR on Land Acquisition
------------------------------------------------------------
Moody's Investors Service says that Times Property Holdings
Limited's acquisition of a residential land plot in Panyu,
Guangzhou, is credit negative.
However, there is no immediate impact on its B1 corporate family
rating, B2 senior unsecured rating, and stable outlook.
On Nov. 24, 2015, Times Property announced its acquisition of a
land plot in Panyu, Guangzhou, for RMB2.47 billion.
The plot has a gross floor area of around 154,826 square meters
(sqm) based on a plot ratio of 3.4x.
The unit land cost is estimated at approximately RMB16,000 sqm.
"We are concerned that the Panyu project could decrease the profit
margin of Times Property and hence the acquisition is credit
negative," says Kaven Tsang, a Moody's Vice President and Senior
Credit Officer.
The land plot's location and Times Property's track record in the
Guangzhou could partly mitigate the business risks associated with
the new project.
However, the high unit cost of the land will increase the risk of
a profit margin squeeze and a decline in pricing flexibility.
Times Property's gross margin has been declining due to rising
land costs; it fell to 25.7% in 1H 2015 from 29.5% in 2H 2014.
The Panyu land acquisition will further pressure the company's
profit margin because of the high unit land cost relative to the
current average selling price of residential projects in adjacent
areas.
"This new acquisition also reflects the company's increased
appetite for lands which adds financial burden," adds Tsang.
Times Property has been active in land acquisitions in 2015. It
purchased nine plots of land for an attributable cost of RMB7.19
billion between January and November 2015. This amount was a
considerable increase from the RMB2.87 billion in 2014.
The average cost for land purchased this year was also high, at
around RMB6,000 per sqm, when compared to the unit land cost of
RMB1,305 per sqm at end-2014.
While land payments for each project will be paid over time, the
aggregate payments for the new projects will weaken the company's
financial and liquidity profiles, which will in turn pressure its
ratings.
Specific indicators of downward rating pressure include balance-
sheet cash -- specifically restricted and unrestricted cash --
representing less than 100% of debt maturing in 12 months, and/or
revenue/adjusted debt falling below 75% or adjusted EBIT coverage
of interest falling below 2.0x-2.5x.
Moody's expects Times Property would raise debt to fund the
development of the Panyu project.
Nevertheless, Moody's expects its revenue/adjusted debt will stay
at around 75%-80% over the next 12-18 months and the EBIT coverage
of interest at 2.5x-3.0x for the same period. These levels are
still appropriate for its B1 corporate family rating.
In Moody's view, Times Property will have adequate cash to cover
its short-term obligations if it does not acquire more land in the
near future.
At end-June 2015, the company had cash holdings of RMB6.6 billion,
which can cover its short-term debt of RMB2.5 billion. The
company has also raised a total of RMB5 billion through onshore
bond issuances since July 2015.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in April 2015.
Times Property Holdings Limited is a small-to mid-sized property
developer based in Guangdong Province. It focuses on meeting end-
user demand for mass-market housing.
At end-June 2015, it had 30 property projects spread between five
cities in Guangdong Province, as well as in Changsha city in Hunan
Province. Its land bank totaled around 10.1 million sqm at end-
June 2015.
WINSWAY ENTERPRISES: Moody's Lowers CFR to C; Outlook Stable
------------------------------------------------------------
Moody's Investors Service has downgraded Winsway Enterprises
Holdings Limited's corporate family rating and senior unsecured
rating to C from Caa3 and Ca respectively.
The ratings outlook is stable.
RATINGS RATIONALE
The rating action follows Winsway's announcement on Nov. 26, 2015,
on the proposed debt restructuring of its $309 million senior
unsecured notes.
Under the proposed plan, the outstanding notes and all accrued
interest payments will be redeemed, subject to the consent of
bondholders and the completion of a rights issue, through a
combination of:
(1) Cash of $50 million, minus a consent fee for bondholders and
success fee for the financial advisor, which will be raised
through the proposed rights issue;
(2) New shares of the company of not less than 18.75% of total
issued shares on a fully diluted basis upon completion of the
restructuring; and
(3) Contingent value rights, with 5-year maturity, payable if
the company's cash profit before tax exceeds $100 million in any
certain year.
"The downgrade reflects the low expected recovery for bondholders
under the proposed debt restructuring plans and the weakness of
the company's business model," says Dylan Yeo, a Moody's Analyst.
Under the proposed plan, the expected recovery for bondholders
from the aggregate of the cash, share and contingent value rights
consideration will be less than 35% of the original repayment
obligation of the outstanding notes.
Furthermore, the completion of the proposed rights issue in
uncertain. The cash consideration of the proposed debt
restructuring plan is contingent on the completion of the rights
issue.
Winsway's operations had been loss-making since the steep decline
in coking coal prices in 2012, which affected its coal trading
operations. It had planned to focus on its logistics business and
provide integrated supply-chain solutions for its bulk commodities
trading business, while reducing its exposure to the highly
volatile coal trading business by divesting its coal mining
operations.
However, the ongoing default situation limits the company's access
to liquidity for working capital, and management will have to
prioritize its resources towards establishing its debt-
restructuring plan. This will constrain the company's ability to
turnaround its operations.
The stable outlook reflects the ongoing restructuring and Moody's
expectation that Winsway's weak operating profile will persists
for the next 12-18 months.
An upgrade is unlikely due to the ongoing default situation and
the severe weakness in the company's business model.
The principal methodology used in these ratings was Trading
Companies published in March 2015.
Winsway Enterprises Holdings Limited is an integrated commodity
supply-chain service provider in China. Its operations include
coal processing and logistic services to its main clients, which
are Chinese steel makers and coke plants. It listed on the Hong
Kong Stock Exchange in October 2010 and is 40.24% controlled by
its founder, Mr. Wang Xingchun.
===============
H O N G K O N G
===============
CHINA FISHERY: Fitch Lowers IDR to 'C' & Removes from Watch Neg.
----------------------------------------------------------------
Fitch Ratings has downgraded China Fishery Group Limited's Issuer
Default Rating to 'C' from 'B-'. It has also downgraded the
senior unsecured rating and the rating on the USD300 mil. senior
unsecured notes issued by CFG Investment S.A.C. to 'C' from 'B-',
with Recovery Ratings of 'RR4'. All the ratings have been removed
from Rating Watch Negative.
The downgrade follows HSBC's application to the High Court of Hong
Kong to appoint provisional liquidators to China Fishery and China
Fisheries International Ltd. This winding-up petition, if
successful, will result in the liquidation of China Fishery and
its ratings will then be downgraded to 'D'.
RATING SENSITIVITIES
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- Approval of the winding up petition by the Hong Kong court
will result in the IDR being downgraded to 'D'.
Positive: Future developments that may, individually or
collectively, lead to positive rating action include:
-- Rejection by the Hong Kong court of the winding-up petition
-- China Fishery has secured sufficient bank facilities for
refinancing and its operational needs
-- Redemption of USD300 mil. notes due 2019 and other debt is
not accelerated
CHINA FISHERY: Moody's Lowers CFR to Ca; Outlook Still Negative
---------------------------------------------------------------
Moody's Investors Service has downgraded to Ca from Caa2 China
Fishery Group Limited's corporate family rating and the rating on
the senior unsecured bonds issued by its subsidiary -- CFG
Investment S.A.C. -- and guaranteed by China Fishery.
The outlook on the ratings remains negative.
RATINGS RATIONALE
"The downgrade reflects the consideration that the recovery
prospects for senior unsecured bondholders could fall further
after actions taken by a lender for the group," says Lina Choi, a
Moody's Vice President and Senior Credit Officer.
On Nov. 26, 2015, Pacific Andes International Holdings Limited
(unrated), the parent of China Fishery, suspended trading in its
shares and announced that one of the lenders of China Fishery had
taken certain actions.
At the same time, Moody's notes from the auditing firm KPMG's
website that Edward Middleton, Fergal Power, and Kris Beighton --
all KPMG employees -- have been appointed by the High Court of
Hong Kong as joint and several provisional liquidators of China
Fishery.
While the appointment of the provisional liquidators is intended
to preserve the assets of the company, it also indicates that the
process of debt restructuring has become more challenging.
In addition, the appointment of the provisional liquidators has
triggered the acceleration of the repayment of its senior
unsecured bonds due July 2019.
Looking ahead, China Fishery's debt restructuring will likely
involve its lending banks, bond holders and potentially any other
creditors which would be admitted to the negotiations on the basis
that they sought an acceleration in payments.
With the increased complexity and lengthening of the debt-
restructuring process, the company will be deprived of normal
credit. Its cash flow will also weaken substantially and its
assets will erode. As a result, the recovery rate for bond
holders will likely fall further.
The negative ratings outlook reflects the risk of a further
decline in recovery prospects for bondholders.
Further downward ratings pressure could emerge if the company goes
into receivership or commences liquidation.
Upward ratings pressure could arise if it takes measures to
significantly improve its liquidity position or enters into a
satisfactory debt restructuring that provides improved recovery
prospects for bond holders.
The principal methodology used in these ratings was Global Protein
and Agriculture Industry published in May 2013.
China Fishery Group Limited is headquartered in Hong Kong and
listed in Singapore. It is engaged in the Peruvian fishmeal and
fish oil business and fishing fleet operations. China Fishery is
46.5% effectively owned by the Pacific Andes group, through
Pacific Andes International Holdings Limited (PAIH, unrated), a
Hong Kong-listed integrated fish and seafood products processor.
The Carlyle Group, a global alternative asset management firm,
holds a 6.02% stake in China Fishery Group.
CHINA FISHERY: S&P Lowers CCR to 'SD' on Missed Payment
-------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on China Fishery Group Ltd. to
'SD' from 'CCC+'. At the same time, S&P lowered its issue rating
on the senior unsecured notes due 2019 issued by CFG Investment
S.A.C. to 'CC' from 'CCC+'; China Fishery guarantees the notes.
S&P also lowered its Greater China regional scale ratings on China
Fishery to 'SD' from 'cnCCC+' and on the outstanding notes to
'cnCC' from 'cnCCC+'. S&P removed all the ratings from
CreditWatch, where they were placed with negative implications on
Oct. 19, 2015. China Fishery is a Singapore-listed fishing
company with operations or business in Peruvian, Russian, and
African waters.
"We downgraded China Fishery to 'SD' (selective default) because
we believe the company failed to repay a US$31 million principal
installment on its US$650 million club loan facility due earlier
this month," said Standard & Poor's credit analyst Lillian Chiou.
The missed payment resulted in one of the lenders filing a
petition in the Hong Kong high court to liquidate China Fishery.
The court has appointed provisional liquidators and is seeking to
wind up the company. S&P views China Fishery's failure to repay
the principal installment as a default on the club loan. However,
the company has serviced all interest payments on its guaranteed
senior unsecured bonds to this point.
The missed principal installment was originally due on Sept. 28,
2015, according to the amortization schedule of the club loan.
The company has been able to obtain multiple, successive waivers
from its lenders. However, S&P believes that the company has
missed such a payment, and one of the lenders is no longer willing
to participate in further discussions and filed a liquidation
petition with the court in Hong Kong.
"The missed payment and appointment of provisional liquidators may
trigger events of default on the company's guaranteed US$300
million senior unsecured notes due 2019," said Ms. Chiou.
Principal and unpaid interest payments may be accelerated if the
company fails to obtain a waiver from a majority of the
noteholders in time. S&P believes the company currently does not
have the means to repay the outstanding notes if they become due
immediately. Therefore, such an event may trigger a general
default whereby the ratings on the notes may be lowered to 'D'
from 'CC' and the issuer to 'D' from 'SD'.
China Fishery's liquidity position is vulnerable, in S&P's
opinion. S&P understands the company was already in the process
of amending the installment schedule of its club loan. S&P
expects China Fishery will not meet the installments in the next
12 months. S&P's view is based on the company's low cash balance
and weak operating performance at its Peruvian operation, which
accounts for 55%-60% of its total revenues and most of its EBITDA.
A meaningful recovery in China Fishery's operating cash flows is
unlikely because the total allowable catch in Peru is low for this
season, less than half of the amount in the prior season.
China Fishery and its parent companies are also under
investigation by financial regulators in both Hong Kong and
Singapore. Information on the direction and scale of the
investigation is not transparent. Any material and negative
rulings from such regulators may lead to business disruptions for
China Fishery and could result in further weakening in the
company's prospects.
CHINA FISHERY: KPMG Appointed as Provisional Liquidators
--------------------------------------------------------
Lianting Tu at Bloomberg News reports China Fishery Group Ltd.
failed to repay a $31 million installment due earlier this month
on a $650 million loan, according to Standard & Poor's.
"As a result, one of the lenders successfully applied for
provisional liquidators, indicating that the lender is unwilling
to negotiate for further extensions or waivers," Bloomberg quotes
S&P as saying in a statement on Nov. 26. Moody's Investors Service
cut its rating by two levels to Ca on Nov. 27 as a
Hong Kong court appointed three executives from KPMG as
provisional liquidators, Bloomberg relates. The grade indicates
the company is likely in, or very near default, the report notes.
According to Bloomberg, HSBC Holdings Plc, one of the lenders to
the loan, has filed an application to the High Court of Hong Kong
to appoint provisional liquidators to the Singapore-listed fishing
group.
China Fishery, with operations in Peru, has seen a decline in
profits since the beginning of this year. Its cash position
dwindled to $41.3 million as at June 28 from $170.5 million half a
year earlier, Bloomberg notes. Its 9.75 percent notes due 2019
fell 0.18 cent to a record 31.85 cents on the dollar as of
4:53 p.m. [Nov. 27] in Hong Kong, on Bloomberg-compiled prices
show.
Singapore Investigation
In August, China Fishery and its parent Pacific Andes
International Holdings Ltd. said they had received notices from
the Monetary Authority of Singapore and the Commercial Affairs
Department stating they were being investigated for an offense
under the Securities and Futures Act, Bloomberg recalls.
"We believe creditor banks might have found it difficult to roll
over the maturing debt given a lack of transparency of the
investigations and the potential impact of El Nino," Bloomberg
quotes JPMorgan Chase & Co. analyst Daniel Fan as saying in a Nov.
26 research note. "The key focus is more about whether China
Fishery's rights-to-catch in Peru is being affected on the latest
round of negative developments, which is more important than asset
coverage."
The process of debt restructuring at China Fishery has become more
challenging after KPMG employees Edward Middleton, Fergal Power
and Kris Beighton were appointed provisional liquidators, Moody's
said in a statement, citing information posted on the accounting
firm's website, Bloomberg relays.
"With the increased complexity and lengthening of the debt
restructuring process, the company will be deprived of normal
credit," Moody's said. "Its cash flow will also weaken
substantially and its assets will erode. As a result, the recovery
rate for bond holders will likely fall further."The process of
debt restructuring at China Fishery has become more challenging
after KPMG employees Edward Middleton --
edward.middleton@kpmg.com.hk -- Fergal Power --
fergal.power@kpmg.com -- and Kris Beighton -- krisbeighton@kpmg.ky
-- were appointed provisional liquidators, Moody's said in a
statement, citing information posted on the accounting firm's
website.
"With the increased complexity and lengthening of the debt
restructuring process, the company will be deprived of normal
credit," Moody's said. "Its cash flow will also weaken
substantially and its assets will erode. As a result, the recovery
rate for bond holders will likely fall further."
=========
I N D I A
=========
A-1 HEIGHTS: CRISIL Reaffirms B Rating on INR100MM Term Loan
------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of A-1 Heights
and Hospitality Private Limited (AHH) continue to reflect the
company's stretched liquidity with its cash accruals expected to
tightly match its debt repayment obligations, and its below-
average financial risk profile marked by its small net-worth, high
gearing, and weak debt protection metrics.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 100 CRISIL B/Stable (Reaffirmed)
The rating of the company is also constrained on account of its
exposure to risks related to stabilisation of its hotel, and its
susceptibility to cyclicality inherent in the hospitality
industry. These rating weaknesses are partially offset by the
strategic location of the company's hotel, and the extensive
experience of its promoters in the real estate industry.
Outlook: Stable
CRISIL believes that AAH business risk profile will benefit over
the medium term from strategic location of its hotel and its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if there is a substantial and sustained
increase in the company's profitability, or there is substantial
improvement in its liquidity on the back of sizeable equity
infusion from its promoters.. Conversely, the outlook may be
revised to 'Negative' in case of lower-than-expected cash accruals
adversely impacting the company's debt servicing ability.
AAH is a part of the Milan group, and operates a three-star hotel,
Aureole Hotel, in Andheri in Mumbai (Maharashtra). The hotel
commenced operations in July 2015.
The Milan group, promoted by the Samani family, is engaged in
development of real estate in Mumbai.
AGARWAL AND ASSOCIATES: CRISIL Ups Rating on INR75MM Loan to B+
---------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Agarwal and Associates Impex Private Limited (AAIPL) to 'CRISIL
B+/Stable' from 'CRISIL B/Stable', while reaffirming its rating on
the short-term bank facility at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 75 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Letter of Credit 85 CRISIL A4 (Reaffirmed)
Proposed Long Term 6.1 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
Term Loan 8.9 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The upgrade follows improvement in AAIPL's liquidity reflected in
lower average bank limit utilisation at 95 per cent over the 12
months through October 2015, against instances of overutilisation
in the past. The improvement in liquidity is attributed to steady
increase in net cash accruals supported by AAIPL's growing revenue
profile under its Engineer Ply brand. Also, there is increased
cushion between expected cash accrual and maturing debt. For 2015-
16 (refers to financial year, April 1 to March 31), the company is
likely to generate cash accrual of INR12.0-12.3 million against
debt repayment obligation of INR3.7 million.
The ratings reflect AAIPL's modest scale of operations in the
highly fragmented and competitive wood industry, large working
capital requirement, and weak financial risk profile because of
high gearing and subdued debt protection metrics. These rating
weaknesses are partially offset by the extensive experience of
promoters in the wood industry.
Outlook: Stable
CRISIL believes AAIPL will benefit over the medium term from the
promoters' extensive industry experience. The outlook may be
revised to 'Positive' in case of significant improvement in the
scale of operations and profitability, leading to improvement in
debt protection metrics. Conversely, the outlook may be revised to
'Negative' in case of slowdown in revenue or deterioration in
profitability, capital structure, or debt protection metrics.
AAIPL, a Noida (Uttar Pradesh [UP])-based private limited company,
manufactures and distributes natural veneers, reconstituted
veneers, veneer doors, wardrobes, and decorative ply doors. Mr.
Ankur Agarwal, the managing director, manages the company's
operations. Its registered office is in Noida and manufacturing
facilities are in Surajpur (UP).
AL MANAMA: CRISIL Assigns B+ Rating to INR124MM Cash Loan
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Al Manama Retail Private Limited (Al Manama).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 124 CRISIL B+/Stable
Term Loan 116 CRISIL B+/Stable
The rating reflects the early stage of operations in the intensely
competitive organised retail business, and below-average financial
risk profile marked by small net worth and high total outside
liabilities to tangible net worth ratio. These weaknesses are
partially offset by the promoters' experience in the retail
industry, and its moderate brand equity in the Kerala market.
Outlook: Stable
CRISIL believes Al Manama will continue to benefit over the medium
term from the extensive experience of its promoters. The outlook
may be revised to 'Positive' if the company stabilises operations
in its new stores earlier than expected and subsequent increase in
revenue and profitability leads to an improvement in its financial
risk profile. Conversely, the outlook may be revised to 'Negative'
if deterioration in revenue or operating margin or a stretch in
working capital cycle weakens the financial risk profile and
liquidity materially.
Set up as a partnership firm in 2012, Al Manama was subsequently
converted to a private limited company under the current name. The
company is in the organised retail business through its stores in
Kerala.
APOLLO CREATIONS: ICRA Withdraws B Rating on INR12cr Bank Loan
--------------------------------------------------------------
ICRA has withdrawn the [ICRA]B rating assigned to the INR12.0
crore bank facilities of Apollo Creations Private Limited, as the
notice period of three years since suspension of rating has
expired.
B.BUCHA REDDY: CRISIL Reaffirms 'D' Rating on INR80MM Bank Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of B.Bucha Reddy and Co
(BBRC) continues to reflect the weak liquidity profile of the firm
marked by delays in servicing of its debt.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 80 CRISIL D (Reaffirmed)
Overdraft Facility 55 CRISIL D (Reaffirmed)
Proposed Long Term
Bank Loan Facility 5 CRISIL D (Reaffirmed)
BBRC's business profile is constrained by exposure to high
customer concentration risk and working-capital-intensive
operations. However, the firm benefits from the extensive
experience of BBRC's partners in the civil construction industry.
Established in 1991 by Mr. B Bucha Reddy, BBRC is a partnership
firm engaged in civil construction work, mainly related to
irrigation projects in Andhra Pradesh (AP).
BABA STRUCTURAL: CRISIL Reaffirms B- Rating on INR83.5MM Loan
-------------------------------------------------------------
CRISIL's ratings on the bank facilities of Baba Structural Private
Limited (BSPL) continue to reflect BSPL's large working capital
requirement, exposure to intense competition resulting in low
profitability, and weak interest coverage ratio. These rating
weaknesses are partially offset by the promoters' extensive
experience in the steel industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 6 CRISIL A4 (Reaffirmed)
Cash Credit 83.5 CRISIL B-/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 29.5 CRISIL B-/Stable (Reaffirmed)
Term Loan 51 CRISIL B-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes BSPL will continue to benefit over the medium term
from its promoters' extensive industry experience. The outlook may
be revised to 'Positive' if the scale of operations and
profitability improve, resulting in substantial increase in cash
accrual. Conversely, the outlook may be revised to 'Negative' if
the financial risk profile, particularly liquidity, weakens
further, because of decline in profitability, large working
capital requirement, or substantial capital expenditure plan.
BSPL, established in 2011 by the Agarwal family, is a part of the
Baba group. It manufactures mild steel (MS) angles, MS channels,
MS strips, and electric resistance welded pipes at its facility in
Raniganj (West Bengal).
BENZFAB TECHNOLOGIES: ICRA Suspends D Rating on INR7cr Loan
-----------------------------------------------------------
ICRA has suspended [ICRA]D rating assigned to the INR7.00 crore
cash credit facility & INR8.00 crore non-fund based facilities of
Benzfab Technologies Private Limited. The suspension follows
ICRA's inability to carry out a rating surveillance in the absence
of the requisite information from the company.
CHALAPATHI EDUCATIONAL: ICRA Reaffirms B+ INR10.21cr Loan Rating
----------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B+ assigned to
the INR10.21 crore (enhanced from INR5.21 crore) term loan,
INR2.60 crore fund based facilities and INR3.19 crore (reduced
from INR8.23 crore) unallocated limits of Chalapathi Educational
Society.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Term
Loans 10.21 [ICRA]B+ reaffirmed
Fund Based Overdraft 2.60 [ICRA]B+ reaffirmed
Unallocated 3.19 [ICRA]B+ reaffirmed
The reaffirmation of rating is constrained by tight liquidity
position of the society due to significant delays in fee
reimbursements from Government of Andhra Pradesh (AP); and drop in
operating profit margins to 19.8% during FY2014-15 (as against
28.1% during FY2013-14) on account of higher employee expenses
owing to new recruitments. The rating also is constrained on
account the ongoing capex which is expected to stretch the capital
structure, the increasing competition with presence of many
existing and upcoming engineering colleges in Andhra Pradesh and
fee fixation by the Govt of AP limits the growth potential for the
society. However, the rating favourably factors in the long
standing experience of the promoters of over two decades in the
field of education, established brand name of the society in
imparting technical education in Guntur District of Andhra Pradesh
and its diversified presence across various streams lending
stability to revenues. The rating also takes note of the healthy
growth in operating income of the society with a CAGR of 14%
during the period FY 2010-15 owing to long standing experience and
healthy occupancy level at 84% for AY2015-16.
Going forward, timeliness of fee receivables, improvement in
operating profit margins, attracting and retaining quality
faculty, maintaining liquidity levels in midst of capex will be
the key rating sensitivities.
Chalapathi Educational Society (CES) was established in 1995 as a
non-profit society by its chief promoter Mr. Y.V. Anjaneyulu. The
society operates five institutions including two Engineering
colleges, Pharmacy College, Degree college and Junior college. The
establishments of CES, namely, Chalapathi Institute of Engineering
& Technology, Chalapathi Institute of Technology, Chalapathi
Institute of Pharmaceutical Sciences, Chalapathi Degree College
and Chalapathi Junior College are based in Guntur, Andhra Pradesh.
The society has a current capacity of 1890 seats across all
institutions.
COMMERCIAL AUTO: Ind-Ra Hikes Long-Term Issuer Rating to IND BB-
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Commercial Auto
Products Pvt. Ltd. (CAPPL) Long-Term Issuer Rating to 'IND BB-'
from 'IND B+'. The Outlook is Stable.
KEY RATING DRIVERS
The upgrade reflects the improvement in CAPPL's liquidity position
and credit metrics. The liquidity is now comfortable with 95.38%
average maximum working capital utilisation during the 12 months
ended October 2015 as against almost full utilisation last year.
InFY15, net financial leverage improved to 3.8x (FY14: 5.0x) and
interest coverage to 1.7x (FY14: 1.6x). However the scale of
operations remains small as evident from the company's top line of
INR307m in FY15 (FY14: INR309m).
The ratings continue to be constrained by CAPPL's high customer
concentration risk with around 80%-85% of the revenue coming
mainly from Mahindra & Mahindra Limited ('IND AAA'/Stable) and
International Tractors Limited and Escorts Ltd ('IND A-'/Stable).
The ratings draw comfort from the over three decades of experience
of the company's promoter in the current line of business.
RATING SENSITIVITIES
Positive: A substantial improvement in the scale of operations and
in the overall credit metrics will be positive for the ratings.
Negative: Any deterioration in the scale of operations as well as
the overall credit metrics will be negative for the ratings.
COMPANY PROFILE
CAPPL was incorporated in August 1985. The company operates in the
automobile radiator manufacturing industry. CAPPL used to
manufacture only copper and brass radiators until FY08-FY09 when
it expanded its product segment to manufacture aluminium
radiators.
The company mainly supplies to the tractor segment with
concentration in north India.
CORAL COVE: CRISIL Assigns 'B' Rating to INR41MM Term Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating on the long-term
bank facilities of Coral Cove Hotels and Resorts Private Limited
(CCHRPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Term Loan 24 CRISIL B/Stable
Term Loan 41 CRISIL B/Stable
The rating reflects the geographical concentration in the
company's revenue profile and its susceptibility to cyclicality in
the hospitality industry and exposure to the risk associated with
the timely completion and stabilisation of its ongoing hotel
project. These weaknesses are partially offset by the extensive
experience of the promoters in the industry.
Outlook: Stable
CRISIL believes CCHRPL will continue to benefit from its
promoters' extensive industry experience over the medium term. The
outlook may be revised to 'Positive' if the company implements its
hotel project in a timely manner without any significant cost
overrun and is able to demonstrate higher-than-expected occupancy
levels leading to improvement in liquidity. Conversely, the
outlook may be revised to 'Negative' in case of any significant
time or cost overrun in commissioning of CCHRPL's project leading
to pressure on liquidity.
CCHRPL, incorporated in 2014, is engaged in the hospitality
business. The company is promoted by Andaman and Nicobar Islands-
based Mr. Ameet J Arora and Mrs. Nupur Arora, who are setting up a
3-star resort at Mini Bay, Port Blair.
DTC PROJECTS: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned DTC Projects
Private Limited (DTCPPL) a Long-Term Issuer Rating of 'IND BB-'.
The Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect the nascent stage of the company's residential
project in Kolkata and the associated time and cost overrun risks.
The project is likely to be completed by March 2020. The ratings
also consider the company's high dependence on customer advances
for the completion of the project.
The ratings are supported by the promoter's experience of
completing two projects in Kolkata over the last decade.
RATING SENSITIVITIES
Positive: The timely completion of the project and the sale of a
substantial number of housing units leading to a strong visibility
of cash flow will be positive for the ratings.
Negative: Any slowing down in the bookings of housing units
leading to a cash flow shortfall will be negative for the ratings.
COMPANY PROFILE
DTCPPL was incorporated in 1995 by the DTC Group for its real
estate work. Mr Satya Narayan Jalan, Ayush Jalan and Mrs Poonam
Jalan are the directors of the company. The company has a
registered office in Netaji Subhas Road, Kolkata and a corporate
office in AJC Bose Road, Kolkata. The company's ongoing
residential project DTC Southern Heights is located in Pailan,
South 24 Parganas near Joka, Kolkata. This is the company's first
project.
DTCPPL's directors belong to DTC Group. The group has 40 years of
experience in several business activities such as real estate,
finance, mining and infrastructure.
EMBIOTIC LABORATORIES: CRISIL Rates INR120MM Cash Loan at B+
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Embiotic Laboratories Private Limited (ELPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 120 CRISIL B+/Stable
The rating reflects ELPL's modest scale of operations in a
fragmented pharmaceuticals industry and its exposure to risks
relating to customer concentration. The rating also factors in the
working capital-intensive operations and the below-average
financial risk profile because of modest net worth and weak debt
protection metrics. These weaknesses are partially offset by the
extensive experience of the promoters in the pharmaceuticals
industry and their established presence and long track record in
the contract manufacturing industry.
Outlook: Stable
CRISIL believes ELPL will maintain its business risk profile aided
by the promoters' extensive industry experience and established
relations with customers. The outlook could be revised to
'Positive' if there is substantial improvement in the financial
risk profile backed by sustained improvement in operating
performance and profitability. Conversely, the outlook may be
revised to 'Negative' if there is further deterioration in the
financial risk profile led by large, debt-funded capital
expenditure or lengthening of ELPL's working capital cycle.
Set up in 1987, ELPL produces various pharmaceutical formulations
in the form of oral solid dosages and liquids. It is based in
Bengaluru and also undertakes contract manufacturing.
ELPL reported profit after tax (PAT) of INR3.7 million on net
sales of INR264.5 million in 2014-15 (refers to financial year,
April 1 to March 31) as against PAT of INR3.4 million on net sales
of INR312.3 million for 2013-14.
GAURI SHANKAR: ICRA Suspends 'B' Rating on INR9cr LT Loan
---------------------------------------------------------
ICRA has suspended the long term rating of [ICRA] B outstanding on
the INR9 crore long term bank facilities of Gauri Shankar
Educational Trust. The suspension follows ICRA's inability to
carry out a rating surveillance in the absence of the requisite
information from the trust.
H.J. INDUSTRIES: Ind-Ra Assigns 'IND D' Long-Term Issuer Rating
---------------------------------------------------------------
India Ratings has assigned H.J. Industries (India) Private Limited
(HJIIPL) a Long-Term Issuer Rating of 'IND D'. The agency has also
assigned the company's INR37.22m long-term loans a Long-term 'IND
D' rating.
KEY RATING DRIVERS
The rating reflects HJIIPL's delays in servicing its term debt in
October 2015.
RATING SENSITIVITIES
Three consecutive months of timely debt servicing could be
positive for the rating.
COMPANY PROFILE
HJIIPL commenced production in 2011. It manufactures polypropylene
(PP) woven fabric, PP yarn and all types of flexible intermediate
bulk container bags including various other packaging bags.
IDBI BANK: S&P Assigns 'BB+' Rating on Proposed Sr. Unsec. Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' long-term
issue rating to a proposed issue of U.S.-dollar-denominated senior
unsecured notes by IDBI Bank Ltd. (foreign currency BB+/Stable/B).
The bank will issue the notes under its US$5 billion medium-term
notes program.
The rating on the notes reflects the long-term issuer credit
rating on IDBI. The proposed notes will constitute direct,
unconditional, unsecured, and unsubordinated obligations of the
bank. They shall at all times rank at par among themselves and
with all other unsecured obligations of the bank.
IDBI is offering noteholders the option to redeem the notes on
occurrence of a change in control, which would happen if the
aggregate of the government of India's direct and indirect legal
or beneficial ownership in the bank becomes less than 51% of the
issued and paid-up equity shares of the bank. This is a standard
acceleration clause present in the offer documents of many other
Indian banks, and does not affect S&P's issue ratings.
IDBI intends to use the bond proceeds to finance or refinance
certain eligible current or future transportation and renewable
energy (or "green") projects. However, the bank intends to pay
the principal and interest on the notes from its general funds;
the payments will not be directly linked to the performance of the
projects.
The rating on the notes is subject to S&P's review of the final
issuance documentation.
INDIAN OVERSEAS: S&P Affirms 'BB+' ICR; Outlook Stable
------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'BB+' long-term issuer credit rating on India-based Indian
Overseas Bank (IOB). The outlook is stable. At the same time,
S&P affirmed its 'B' short-term rating and 'BB+' long-term issue
rating on the bank.
"The rating affirmation reflects our expectation that a "very
high" likelihood of timely and sufficient extraordinary support
from the government of India will help IOB withstand continuing
weakness in operating performance," said Standard & Poor's credit
analyst Amit Pandey.
IOB's aggressive growth over the past several years has stressed
its internal control system, in S&P's view. The bank's reported
nonperforming loan (NPL) ratio rose sharply to 11% in Sept. 30,
2015, from 7.35% as of Sept. 30, 2014, and is the highest among
the Indian banks that S&P rates. The bank's standard restructured
ratio is also one of the highest, at 8.9%. Most of this
restructuring took place during the past few years and S&P expects
slippages to continue to occur in the restructured loan book. The
resultant high credit costs have strained IOB's earnings, which
remain abysmally low.
The Reserve Bank of India, the country's central bank, initiated a
"prompt corrective action" on IOB on Oct. 6, 2015, probably due to
the bank's low earnings, which in turn are a result of its weak
asset quality. S&P's assessment of IOB's stand-alone credit
profile (SACP) already factors in the bank's inherent weakness in
asset quality, moderate capitalization, and ongoing stress on
earnings. That said, developments around the prompt corrective
action on IOB could be a key credit factor.
"IOB's weak operating performance and negative retained earnings
have lowered the bank's capital ratios, which are close to the
minimum regulatory capital requirement," said Mr. Pandey.
IOB's Tier 1 ratio is 7.56% (after incorporating a recent capital
infusion by the government of India), compared with the regulatory
requirement of 7%. However, the regulatory requirement for Tier 1
(including capital conservation buffer) is set to increase to
7.625% effective March 31, 2016. Accordingly, IOB will have to
raise further capital to meet the regulatory requirement.
Moreover, further losses will necessitate further capital infusion
to meet the regulatory requirements.
S&P believes it would be challenging for IOB to tap the market for
capital infusion, given its currently weak performance. In S&P's
base case, it expects the bank to raise capital from the
government or from government-related entities to meet the minimum
capital requirement. S&P's view is based on the government's
public commitment as part of its plan ("Indradhanush") to revamp
public sector banks and help these banks, including IOB, to
maintain a safe buffer over and above their Basel III
requirements. However, IOB's inability to raise sufficient
capital, such that it breaches the regulatory capital requirement,
could lead to a multiple notch downgrade.
The stable outlook on IOB reflects S&P's expectation that there is
very high likelihood that the government of India will continue to
support the bank, including through ongoing capital infusion, and
help the bank maintain its regulatory minimum capital requirements
over the next 12 months at least.
S&P could lower the rating on IOB by multiple notches if it
believes that the bank could breach the regulatory capital
requirement.
S&P could also downgrade the bank to 'BB' if its SACP
deteriorates. This could happen if IOB's pre-diversification
risk-adjusted capital (RAC) ratio declines to less than 5% or if
the bank's asset quality materially deteriorates, such that its
stressed assets increase above 25% or gross NPL rises above 16% on
a sustained basis with low provision coverage. IOB's RAC ratio
could decline if the bank is unable to raise sufficient capital to
support growth or if economic risk in India rises.
The ratings on IOB could also face downward pressure if the prompt
corrective action results in a weakening of the bank's business or
credit profile.
The probability of an upgrade of IOB over the next 12 months is
remote, in S&P's view.
JAIN SARVODAYA: Ind-Ra Assigns B+ Rating on INR541MM Term Loans
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Jain Sarvodaya
Vidhya Gyanpith Samiti's (JSVGS) INR541 mil. term loans an
'IND B+' rating. The Outlook is Stable. The total rated term
loans now amount to INR1,041 mil.
KEWIN CHEMICALS: CRISIL Reaffirms B+ Rating on INR15MM Loan
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Kewin Chemicals Private
Limited (KCPL) continue to reflect the average financial risk
profile because of leveraged capital structure and subpar debt
protection metrics. This rating weakness is partially offset by
the extensive experience of promoters in trading activity and
their funding support, coupled with established relations with
customers and suppliers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 15 CRISIL B+/Stable (Reaffirmed)
Foreign Discounting
Bill Purchase 70 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 0.4 CRISIL B+/Stable (Reaffirmed)
Secured Overdraft
Facility 3.6 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes KCPL will continue to benefit over the medium term
from the promoters' extensive industry experience. The outlook may
be revised to 'Positive' in case of a significant increase in
scale of operations and profitability, resulting in higher-than-
expected cash accrual and improvement in the financial risk
profile, or a sizeable equity infusion by the promoters leading to
improvement in capital structure. Conversely, the outlook may be
revised to 'Negative' if revenue or profitability declines,
resulting in lower-than-anticipated accrual, or if working capital
cycle is stretched, leading to deterioration in liquidity, or in
case of a substantial, debt-funded capital expenditure.
Update
KCPL's sales increased to INR320.3 million in 2014-15 (refers to
financial year, April 1 to March 31) from INR289.5 million in
2013-14, mainly driven by higher order intake. Operating margin
remained in the range of 4.0-4.5 per cent, and is likely to remain
at similar levels over the medium term. The operations continue to
be working capital intensive, with gross current assets estimated
at 131 days as on March 31, 2015, primarily because of stretched
debtors. However, the bank limit utilisation remained average at
about 55 per cent, over the 12 months ended September 30, 2015,
backed by high credit period available to the company. The
interest coverage ratio was subdued at 1.9 times in 2014-15, and
the total outside liabilities to tangible networth ratio was high
at over 4 times as on March 31, 2015. The capital structure is
expected to improve, yet remain high over the medium term.
Incorporated in 1999, KCPL is based in Ahmedabad (Gujarat) and
owned and managed by brothers Mr. Devang Shah and Mr. Mitesh Shah.
It trades in chemical intermediates, dyes, and pigments.
KCPL's profit after tax (PAT) rose to INR4.1 million on sales of
INR320 million in 2014-15, from a PAT of INR3.1 million on sales
of INR289.5 million.
MADINENI INFRA: CRISIL Reaffirms B Rating on INR75MM Cash Loan
--------------------------------------------------------------
The ratings continue to reflect Madineni Infra Pvt Ltd (MIPL)
modest scale of operations in the intensely competitive civil
construction segment and its below-average financial risk profile
marked by low networth. These rating weaknesses are partially
offset by MIPL's moderate order book and its promoter's extensive
industry experience.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 20 CRISIL A4 (Reaffirmed)
Cash Credit 75 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that MIPL will continue to benefit over the medium
term from its moderate order book and its promoter's industry
experience. The outlook may be revised to 'Positive' if MIPL
significantly scales up operations and improves its working
capital management, thereby enhancing its liquidity. Conversely,
the outlook may be revised to 'Negative' if the company's revenue
and operating margin decline because of delay in execution of
projects; or if its working capital management weakens leading to
stretch in liquidity; or if it undertakes a large debt-funded
capital expenditure programme, weakening its financial risk
profile.
Incorporated in 2012 by Mr. Madineni Sitaramaiah, Hyderabad
(Telangana)-based MIPL is engaged in civil construction; it
undertakes building of roads, culverts, irrigation project works,
and low-cost housing, among others.
NEHANI TILES: ICRA Reaffirms 'B' Rating on INR6.48cr Term Loan
--------------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]B assigned to
the INR6.48 crore (reduced from INR6.50 crore) term loan
facilities and INR4.00 crore cash credit facilities of
Nehani Tiles Private Limited. ICRA has also reaffirmed the short-
term rating of [ICRA]A4 assigned to the INR1.50 crore non-fund-
based Bank guarantee facilities of NTPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 4.00 [ICRA]B; reaffirmed
Term Loan 6.48 [ICRA]B; reaffirmed
Bank Guarantee 1.50 [ICRA]A4: reaffirmed
The ratings continues to remain constrained by NTPL's limited
operational track record entailing weak financial profile as
reflected by net losses, stretched capital structure and weak debt
protection metrics. While reaffirming the ratings, ICRA considers
the vulnerability of profitability and cash flows to fluctuating
prices of gas though its MGO contract with GSPC is expected to
result in considerable saving in fuel cost going forward. The
ratings also take into account vulnerability of NTPL's
profitability to the cyclicality inherent in the real estate
industry, which is the main consumer sector and fragmented nature
of the industry and intense competition among the ceramic players.
The ratings, however, favourably takes into account the long
experience of key promoters in the ceramic industry as well as
marketing support from the group company engaged in the similar
line of business. The ratings further consider the location
advantage enjoyed by the company due to its presence in Morbi
(Gujarat), India's ceramic hub giving it easy access to raw
material.
Nehani Tiles Private Limited (NTPL) was established in August 2013
and is promoted by Mr. Kalpesh Maksana, Jaysukh Soriya, Mr.
Balvant Soriya and other family members. The company is engaged in
manufacturing of digitally printed ceramic wall tiles along with
body clay having its manufacturing facility at Morbi, Gujarat with
an installed capacity of 27,000 MTPA of wall tiles and 1,20,000
MTPA of body clay. Presently, the company manufactures digitally
printed ceramic wall tiles in four different sizes of 12" x 12",
12 x 18", 12" x 24" and 10" x 30". The promoters of the company
have experience in ceramic industry owing to their association
with the group concern namely Neha Ceramic Industries.
O. M. S. TAMARIND: CRISIL Ups Rating on INR15MM LT Loan to B+
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
O. M. S. Tamarind Merchants Private Limited (OMS) to 'CRISIL
B+/Stable' from 'CRISIL B/Stable', and has assigned its 'CRISIL
A4' rating to the short-term facility.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 65 CRISIL A4 (Reassigned)
Proposed Long Term 15 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
The rating upgrade reflects improvement in OMS's business risk
profile, led by an increase in scale of operations; CRISIL
believes the increase will be sustained over the medium term,
supported by a well-established distributorship network in Tamil
Nadu. The firm's operating income increased to INR390.9 million in
2014-15 (refers to financial year, April 1 to March 31) from
INR339.2 million in 2013-14, while it sustained its operating
profitability at around 3 percent. Its working capital cycle has
remained stable with gross current assets of 85-90 days in the
three years ended March 31, 2015. Improvement in scale of
operations has led to better liquidity, with annual cash accrual
estimated at INR3.5-5.0 million per annum over the medium term,
sufficient to meet maturing debt obligations and fund incremental
working capital requirement.
The ratings reflect OMS's modest scale of operations and below-
average financial risk profile because of a high total outside
liabilities to tangible net worth ratio. These rating weaknesses
are partially offset by the extensive experience of the company's
promoter in the commodity trading industry and need-based
financial support received from him.
Outlook: Stable
CRISIL believes OMS will continue to benefit over the medium term
from its promoter's extensive industry experience. The outlook may
be revised to 'Positive' in case of an improvement in scale of
operations and profitability, leading to better cash accrual and
capital structure. Conversely, the outlook may be revised to
'Negative' in case of considerably low sales or profitability, or
a stretch in the company's working capital cycle, resulting in
further weakening of the financial risk profile, especially
liquidity.
Set up in 1950, and based in Chennai, OMS trades in tamarind,
pulses, edible oil, sugar, and chilly. Mr. C Raja Sankaralingam
manages the company's daily operations.
The company's profit after tax (PAT) was INR1.6 million on an
operating income of INR390.9 million for 2014-15 (refers to
financial year, April 1 to March 31), against a PAT of INR0.8
million on an operating income of INR339.2 million for 2013-14.
P.G. ENTERPRISES: ICRA Suspends 'B' Rating on INR10.30cr Loan
-------------------------------------------------------------
ICRA has suspended the [ICRA]B rating assigned to the INR10.30
crore term loan facility and INR1.70 crore unallocated limits of
P.G. Enterprises. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the requisite
information from the firm.
P.G. Enterprises is a partnership firm engaged in development of
residential space. The firm is a part of Makwana Group of
companies based in Mumbai.
PARAG MILK: Ind-Ra Assigns BB LT Issuer Rating; Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Parag Milk Foods
Limited (PMFL) a Long-Term Issuer Rating of 'IND BB'. The Outlook
is Stable.
KEY RATING DRIVERS
PMFL has a moderate financial profile with net leverage (net
adjusted debt/EBITDAR) of 3.9x in FY15 (FY14: 5.5x) and interest
coverage ratio (operating EBITDAR/gross interest expense + rents)
of 2.3x (1.7x). Revenue grew 33% in FY15 to INR14,441 mil. The
company registered EBITDA of 7.4% in FY15 (FY14: 7.2%).
PMFL is present across product categories ranging from pasteurized
milk, ghee, cheese, ultra-heat treatment milk, etc. Value-added
products, which constituted around 82% of the revenue, in FY15
(FY14: 79%) helped the company earn higher margins as the
pasteurized milk segment is highly competitive with low margins.
The company has built established brands across value categories
with the primary unique selling point of all products being 100%
made from cow's milk. PMFL has a pan-India distribution network
comprising depots, super stockists and dealers as well as a strong
institutional sales network.
PMFL has a robust milk procurement network among local farmers and
has tie-ups with over 3,400 village level collection centres. It
has also set up chilling centres and bulk cooling units across
Manchar/Palamner. PMFL has set up a dairy farm under its
subsidiary Bhagyalaxmi Dairy Farm Pvt. Ltd., which primarily
supplies to the company's Pride of Cow brand. The company has a
new management team with the new chief financial officer bringing
in experience across multi-national companies in the similar
industry. The management team has introduced policies and
processes to strengthen internal controls.
PMFL has forward and backward integration and is present across
the value chain through its dairy farm for milk procurement and
established brands for ensuring retail market reach. This enables
the company to leverage the dairy industry value chain, ensure
efficiency in costs and operating margins and exercise control
over the production process, resulting in quality products.
The company's liquidity is comfortable as reflected in its
unutilized working capital limits of INR57 mil. on Oct. 31, 2015.
The company raised INR600 mil. in August 2015 through private
placement of compulsory convertible debentures (CCDs). The
company utilized the proceeds from CCDs to prepay loans of around
INR177m during 1HFY16. Debt repayments aggregate to INR663.7 mil.
over FY16-FY18.
There were a few instances of delays in debt servicing noted in
PMFL's annual report of 2015. This is attributed to lack of
oversight on the part of the company. There were also a few
instances of technical delays in debt servicing in FY16, pending a
dispute on penal interest. However, the agency notes that the
company had sufficient liquidity to support debt servicing during
the current financial year. The company has instituted risk
management policies as well as liquidity and debt servicing
practices during FY16 and put in place processes and policies to
improve its management information systems and reporting. Ind-Ra
believes the effectiveness of the risk and liquidity management
policies will be gradually demonstrated.
RATING SENSITIVITIES
Positive: The effective implementation of the risk management
policies for at least two quarters could lead to a positive rating
action.
Negative: Deterioration in the liquidity position and the
ineffectiveness of the risk management policies implemented could
lead to a negative rating action.
COMPANY PROFILE
Incorporated in 1992, PMFL is engaged in the dairy business. The
company is promoted by Mr. Devendra Shah and his family. Its
plants are located at Manchar (1.2 million litres per day) and
Palamnar (0.8 million litres per day).
PATIDAR BOARDS: CRISIL Assigns B+ Rating to INR160MM LT Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Patidar Boards Private Limited (PBPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL B+/Stable
Long Term Loan 160 CRISIL B+/Stable
The rating reflects PBPL's early stage of operations, average
financial risk profile marked by modest networth and average debt
protection metrics. These weaknesses are partially offset by
promoter's experience in the particle board industry.
Outlook: Stable
CRISIL believes PBPL will maintain the credit risk profile because
of promoter's experience particle board industry over the medium
term. The outlook may be revised to 'Positive' if the company
significantly increases the scale of operations and improves its
profitability levels, backed by timely stabilisation of
manufacturing operations leading to improvement in financial risk
profile. Conversely, the outlook may be revised to 'Negative' in
case of lower-than-expected sales or profitability, or a stretch
in the working capital cycle. The outlook may also be revised to
'Negative' if considerably large, debt-funded capital expenditure
leads to deterioration in the financial risk profile, particularly
liquidity.
Incorporated in 2013, PBPL manufactures particle boards. The
company is promoted by Mr. Govind Patel and Mr. Bhupendra Limbani,
and is based in Kolhapur (Maharashtra).
PAXAL CORPORATION: ICRA Reaffirms B Rating on INR7.0cr Loan
-----------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B to INR7.00
crore (earlier 5.00 crore) fund based facilities and a short term
rating of [ICRA]A4 to INR11.00 crore (earlier 8.00 crore) non fund
based bank limits of Paxal Corporation.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 7.00 [ICRA]B reaffirmed
Letter of Credit 11.00 [ICRA]A4 reaffirmed
The reaffirmation of the rating draws comfort from long track
record of the promoters in the steel trading industry and
established relationship with primary steel producers which ensure
regular supply of traded materials. The rating also takes into
consideration strong and diversified client base of the firm over
the years ensuring repeated orders. The rating also benefits from
the forward integration done by the firm into precision cutting
which is likely to increase business opportunities and expand its
customer base.
The rating remains constrained by high working capital intensity
of operations, as characterized by high debtor and inventory days
coupled with low creditor days. The rating also takes into
consideration the moderate financial profile of Paxal Corporation
as characterized by modest scale of operations, high gearing and
moderate debt protection metrics. Further, the ratings are
constrained by susceptibility of the firm to foreign exchange
fluctuation risk; however risk is partially mitigated by hedging
through forward contracts. Furthermore; steel trading is
characterized by intense competition with the presence of large
number of organised/unorganized players which keeps profitability
metrics of the firm under pressure.
Paxal Corporation was incorporated in 2007 as a partnership firm.
The firm is mainly involved in trading of steel products such as
sheets, coils, strips etc. It imports stainless-steel from various
suppliers in Malaysia, Spain, Vietnam, China etc and sells to
multiple small traders and manufacturers in Bangalore and some
parts of Tamil Nadu.
Recent Results
Paxal Corporation reported profit after tax of INR0.85 Crore on an
operating income of INR29.43 Crore in FY2015, as against a PAT of
INR0.36 Crore on an operating income of INR29.56 Crore in FY2014.
RADHA RUKMANI: CRISIL Cuts Rating on INR50MM Cash Loan to 'D'
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Radha Rukmani Spinners Pvt Ltd (RRSPL) to 'CRISIL D/CRISIL D' from
'CRISIL B-/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Letter of Credit 50 CRISIL D (Downgraded from
'CRISIL A4')
The rating downgrade reflects RRSPL's overdrawn cash credit
account for more than 30 consecutive days; this was due to weak
liquidity.
The company also has a weak financial risk profile. Moreover, it
is susceptible to price volatility because of the commodity nature
of its business. However, it benefits from its promoters'
extensive industry experience.
Established in 2007, RRSPL trades in yarn and textiles. The
company, based in Mumbai, is promoted by Mr. Pradeep Kumar Goyal.
RAIGARH FOODS: ICRA Reaffirms B+ Rating on INR5.0cr Loan
--------------------------------------------------------
ICRA has reaffirmed the [ICRA]B+ rating assigned to the INR5.00
crore cash credit facility and INR0.75 crore of standby line of
credit of Raigarh Foods & Hotel Business Private Limited. ICRA has
also reaffirmed the [ICRA]A4 rating assigned to the INR2.00 crore
non-fund based (bank guarantee) facility of RFHBPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit
Cash Credit 5.00 [ICRA]B+ reaffirmed
Fund Based Limit
Stand By Line of
Credit 0.75 [ICRA]B+ reaffirmed
Non Fund Based Limit
Bank Guarantee 2.00 [ICRA]A4 reaffirmed
The reaffirmation of the ratings take into account RFHBPL's weak
financial profile characterized by low profitability and depressed
level of debt-coverage indicators along with stretched liquidity
position as reflected by full utilization of the bank limits,
which limits the financial flexibility of the company. ICRA has
also taken into account RFHBPL's small scale of current
operations, exposure to the inherent risks in agro based business,
such as changes in Government policies and agro-climatic
conditions which affect the harvest and availability of paddy,
and, the highly fragmented industry with low entry barriers
characterized by intense competition among a large number of
players keeping the margins under pressure. The ratings, however,
favourably considers the experience of the promoters in the rice
milling business and proximity to raw material sources, leading to
low landed cost and easy availability of paddy.
RFHBPL was incorporated as a private limited company in 1996 by
Mr. Subhash Agarwal based in Raigarh, Chhattisgarh. The company is
engaged in milling of raw and parboiled rice and has an installed
milling and sorting capacity of 48,000 metric tonne per annum
(MTPA). RFHBPL has a group company, viz. Rajat Ispat Private
Limited (rated at [ICRA]B+/[ICRA]A4), which is engaged in
manufacturing of MS Ingots.
Recent Results
During the first five and a half months of 2015-16, the company
reported profit before depreciation and taxes of INR0.31 crore
(provisional) on an operating income of INR24.25 crore
(provisional). The company reported a net profit of INR0.30 crore
during 2014-15 on an operating income of INR51.41 crore.
RAJAT ISPAT: ICRA Reaffirms B+ Rating on INR6.0cr Cash Credit
-------------------------------------------------------------
ICRA has reaffirmed the [ICRA]B+ rating to the INR6.00 crore cash
credit facility of Rajat Ispat Private Limited. ICRA has also
reaffirmed the [ICRA]A4 rating to the INR0.50 crore non-fund based
bank facility of RIPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limit
Cash Credit 6.00 [ICRA]B+ reaffirmed
Non Fund Based Limit
Letter of Credit 0.50 [ICRA]A4 reaffirmed
The reaffirmation of the ratings take into consideration RIPL's
weak financial profile characterised by declining top-line since
the last three fiscals, low profitability, nominal cash accruals
and depressed debt coverage indicators, and limited financial
flexibility as reflected by the high utilisation of bank limits.
The ratings are also constrained by the company's relatively small
scale of current operations, and limited value addition in the
existing stand-alone ingot manufacturing business, which keeps
margins under check. The ratings, however, take note of the
experience of the promoters in the steel industry, locational
advantage of RIPL's manufacturing unit in close proximity to raw
material sources, and the company's established relationship with
suppliers, which ensures regular supply of raw materials. ICRA
also takes note of the steady improvement in the gearing over the
years, which stood at a comfortable level of 0.95 times as on 31st
March, 2015.
RIPL was incorporated in 1996, as Mahendra Ispat Private Limited
by Mr. Subhash Agarwal. Later on the name of the company was
changed to Rajat Ispat Private Limited and started its operation
in 2005. RIPL is engaged in manufacturing of ingots and cast iron
moulds with an installed capacity of 18,000 metric tonne per
annum. The manufacturing facility of the company is located at
O.P. Jindal Industrial Park, Raigarh in Chhattisgarh.
Recent Results
During the first five months of 2015-16, the company reported
profit before depreciation and taxes of INR0.11 crore
(provisional) on an operating income of INR13.53 crore
(provisional). The company reported a net profit of INR0.22 crore
during 2014-15 on an operating income of INR39.91 crore.
RAJESHWARA FORGINGS: Ind-Ra Assigns IND B+ LT Issuer Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Rajeshwara
Forgings Private Limited (RFPL) a Long-Term Issuer Rating of 'IND
B+'. The Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect RFPL's small scale of operations and weak
credit metrics along with a tight liquidity position. In FY15,
revenue was INR149m (FY14: INR151m), EBITDA interest coverage was
1.7x (1.7x) and net financial leverage was 4.0x (4.4x). The
company reported multiple instances of working capital
overutilisation of up to three days during the 12 months ended
October 2015.
The ratings benefit from the directors' over two decades of
experience in manufacturing steel bearings.
RATING SENSITIVITIES
Positive: An increase in the scale of operations along with an
improvement in the liquidity position will be positive for the
ratings.
Negative: Further liquidity deterioration will be negative for the
ratings.
COMPANY PROFILE
Incorporated in 2001, RFPL manufactures steel bearings and has an
installed capacity of 3,000 tons per annum.
RAMA FERRO: CRISIL Reaffirms B+ Rating on INR30MM Cash Loan
-----------------------------------------------------------
CRISIL's ratings on the bank facilities of Rama Ferro Alloys and
Finance Pvt Ltd (RFAFPL) continue to reflect large working capital
requirement and below-average financial risk profile because of
small net worth and weak debt protection metrics. These rating
weaknesses are partially offset by the promoter's extensive
experience in the ferroalloys industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL B+/Stable (Reaffirmed)
Foreign Letter of
Credit 30 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 30 CRISIL A4 (Reaffirmed)
Outlook: Stable
CRISIL believes RFAFPL will continue to benefit over the medium
term from its promoter's extensive industry experience and an
established clientele. The outlook may be revised to 'Positive' in
case of higher-than-expected cash accrual and improved financial
risk profile, driven by fresh capital infusion or efficiently
managed working capital cycle. Conversely, the outlook may be
revised to 'Negative' if the financial risk profile deteriorates
on account of stretched working capital cycle, or large debt-
funded capital expenditure plan.
RFAFPL, incorporated in 1996, manufactures various ferroalloys,
such as ferro molybdenum, ferro vanadium, ferro titanium, ferro
boron, ferro nickel, low and medium-carbon ferro manganese, ferro
aluminium, and ferro chrome. The factory is in Kolkata and the
operations are managed by promoter-director Mr. Dinesh Kapoor, who
has four decades' experience in the business.
RKR GOLD: ICRA Assigns 'B' Rating to INR20cr Fund Based Loan
------------------------------------------------------------
ICRA has assigned the long term rating of [ICRA]B to the INR20.0
Crore long term fund based facilities of RKR Gold Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Facilities 20.0 [ICRA]B/assigned
The assigned rating takes into account the significant experience
of the promoters and long standing presence of the company in the
jewellery manufacturing and wholesale market of Tamil Nadu and
RGPL's diversified revenue profile with a wide product portfolio
and growing market reach in the domestic and export markets. The
company is in the process of expanding its capacity, which would
help the company in improving its product offering and also focus
on further market diversification apart from lending scale
economics and other related cost advantages. The rating is however
constrained by the stretched financial profile of RGPL,
characterized by high leverage and strained liquidity position,
owing to the high working capital requirements in the business
leading to periodical over-drawls. Profitability and liquidity
position are also constrained by RGPL's low operating margins -
inherent in the gold jewellery industry on account of modest value
addition, considerable portion of revenues generated from bullion
trading (undertaken through a subsidiary) and high volatility in
gold prices witnessed, with earnings and pricing flexibility
limited further by significant competition from unorganized and
organized players. Thus the ability of the company to improve its
scale of operations amidst a challenging demand environment and
also improve its liquidity position through the proposed fund
infusion from promoters and through sale of land over the near
term would be critical to improve its credit profile.
RKR Gold Private Limited, promoted by Mr S V Sreenivasan, is
primarily engaged in manufacturing of gold jewellery catering
largely to the Chennai and TN market, apart from trading of
bullion. From being a player primarily catering to handmade
jewellery, the company over the years has diversified into
castings with niche varieties including wooden jewellery and
tessellated marble jewellery, with its product portfolio
encompassing 45 different product ranges and more than 50,000
designs. The company also exports jewellery to the Middle East,
Malaysia and Singapore markets. The company currently has two
manufacturing facilities in INRPuram at Coimbatore and is in the
process of doubling its capacity with a third unit at the same
location, which is expected to commence operations by end of the
current fiscal.
RYTHU MITRA: CRISIL Reaffirms 'D' Rating on INR102.5MM LT Loan
--------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Rythu Mitra
Fertilizers Pvt Ltd (RMF) continues to reflect instances of delay
by RMF in servicing its term debt; the delays have been caused by
RMF's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 47.5 CRISIL D (Reaffirmed)
Long Term Loan 102.5 CRISIL D (Reaffirmed)
RMF's also has modest scale of operations, and is exposed to
intense competition and to changes in government regulations in
the fertilizer segment. However, the company benefits from
extensive industry experience of its promoters'.
RMF, based in Andhra Pradesh, is engaged in manufacturing of
nitrogen, phosphorus and potassium (NPK) fertilizer. RMF is
promoted by Mr. M Sambasiva Rao and Mr. G Gopichand.
S M RICE: CRISIL Reaffirms B+ Rating on INR50MM Cash Loan
---------------------------------------------------------
CRISIL has assigned its 'CRISIL A4' rating to the short-term bank
facilities of S M Rice Land Pvt. Ltd (SMRPL) and reaffirmed its
rating on the company's long-term bank facility at 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B+/Stable (Reaffirmed)
Packing Credit 50 CRISIL A4 (Reassigned)
Proposed Short Term
Bank Loan Facility 218.7 CRISIL A4 (Reassigned)
The ratings continues to reflect SMRPL's weak financial risk
profile because of modest net worth, high gearing, and subdued
debt protection metrics, and its susceptibility to volatility in
raw material prices. These weaknesses are partially offset by
strong track record of new promoters, Mr. Ramneek Singh and Mr.
Kawaljit Singh, in the rice industry.
Outlook: Stable
CRISIL believes SMRPL will continue to benefit over the medium
term from promoters' extensive industry experience. The outlook
may be revised to 'Positive' if profitability improves
significantly, leading to considerable cash accrual, along with
capital infusion, resulting in a better capital structure.
Conversely, the outlook may be revised to 'Negative' if financial
risk profile deteriorates, most likely because of significant
increase in inventory, leading to large incremental bank
borrowing, or debt-funded capital expenditure.
Set up in 1982 as a partnership firm by Mr. Sunil Mittal and his
family and friends, and reconstituted as a private limited company
in 2010, SMRPL processes basmati rice, mainly parboiled rice. It
was taken over by Mr. Ramneek Singh and Mr. Kawaljit Singh in
2014-15 (refers to financial year, April 1 to March 31).
SAHARA POULTRY: CRISIL Reaffirms B+ Rating on INR55MM Cash Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Sahara Poultry
Farm (SPF) continues to reflect SPF's high working capital
requirements, modest scale of operations, and average financial
risk profile marked by a high gearing and modest debt protection
metrics. These weaknesses are partially offset by its partners'
extensive experience in the poultry industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 55 CRISIL B+/Stable (Reaffirmed)
Credit Limit Under
Gold Card 11 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 7.5 CRISIL B+/Stable (Reaffirmed)
Term Loan 1.5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes SPF will continue to benefit over the medium term
from its partners' extensive industry experience. The outlook may
be revised to 'Positive' if the firm increases its scale of
operations or profitability substantially, leading to higher-than-
expected cash accrual, while prudently managing working capital
requirement. Conversely, the outlook may be revised to 'Negative'
if cash accrual declines, or working capital cycle lengthens, or
capital structure weakens because of large debt-funded capital
expenditure.
Update
SPF reported operating income of INR153 million in 2014-15 (refers
to financial year, April 1 to March 31) against INR148 million in
2013-14. SPF's operating profitability has remained in range of 8-
9 percent in past four years through 2014-15. CRISIL expects, the
firm to continue to draw benefit from partners extensive
experience and its operating income to continue to grow at modest
pace of around 5 percent with maintained operation profitability,
over medium term.
The firm has high working capital requirements as indicated by
gross current assets of above 250 days as on March 31, 2015. SPF
keeps inventory of five months as it tries to buy feed at lower
prices. The raw materials for feed (bajra, maize, protein, and
vitamins) are procured locally against credit of 30 days. The firm
sells eggs in wholesale to traders in Delhi, Uttar Pradesh, Bihar,
and Srinagar, and offers negligible credit. SPF has reported
average bank limit utilization at 94 percent in past 12 months
through October, 2015. Further, the firm is expected to generate
modest cash accruals of around INR6 million against debt repayment
obligation of INR0.6 million, in 2015-16. Liquidity is partially
supported by unsecured loans infused by promoters of INR2.86
million, outstanding as on March 31, 2015 (treated as neither debt
nor equity). Due to modest cash accruals and large working capital
requirements, CRISIL believes, the firm will continue to have high
dependency on bank lines.
SPF has average financial risk profile. As on March 31, 2015, SPF
has reported high gearing at 1.89 times and small networth of
INR35.1 million. Further, the debt protection metrics continues to
be modest with interest coverage of around 2 times and net cash
accruals to total debt of 0.08 times for 2014-15. CRISIL believes
that the financial risk profile will continue to remain average
over medium term.
SPF, set up as a partnership firm in 1998, operates a poultry farm
in Barwala (Haryana) with 250,000 layer birds. The firm is
promoted by Ms. Kusum Mittal, Ms. Anita Mittal, Mr. Ram Kumar and
Mr. Rupak.
SHREE HANUMAN: ICRA Assigns 'B+' Rating to INR59.50cr Loan
----------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B+ to the INR59.50
crores term loans of Shree Hanuman Trust.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 59.50 [ICRA]B+; Assigned
The assigned rating factors in the extensive experience and
established track record of the Mittal Group in the real estate
space, the attractive location of the leased out property at
Nariman Point, Mumbai, the presence of escrow mechanism which
facilitates debt servicing with the property being leased out to
The Income Tax Department, Government of India and the lease
continuously being renewed since the past 33 years. The rating is,
however, constrained by the significant asset concentration risk
as the entire income is derived from a single property. Further,
with the cash inflow solely dependent on a single tenant, the
trust is exposed to client concentration risk. The rating is also
constrained by the delays in renewal of rent agreement and receipt
of arrears which has resulted in dependence on group companies to
bridge the shortfall in debt servicing. The rating is further
constrained by the absence of a debt service reserve account which
would further result in dependence on group companies in the event
of delays in receipt of rent from the lessee.
Incorporated in 1982, Shree Hanuman Trust (SHT) is engaged in
leasing of the 3rd floor of Mittal Court developed by the Mittal
Group with an area of 22,111 sq. ft. at 244, Nariman Point, Mumbai
to The income Tax Department, Government of India. The trust is a
part of the Mittal Group, which is engaged in real estate
development since 1952.
Recent Results
For the full year FY15, the trust reported a net profit of INR6.03
crore on a topline of INR6.27 crore, as compared to a net profit
of INR7.51 crore for FY14 on a topline of INR8.08 crore.
SIVA SAI: ICRA Reaffirms 'B' Rating on INR11.25cr Loan
------------------------------------------------------
ICRA has reaffirmed the long-term rating assigned to INR11.25
crore (revised from INR11.85 crore) fund based limits of Siva Sai
Exports at [ICRA]B. ICRA has also reaffirmed the rating of [ICRA]B
assigned to INR1.75 crore (revised from INR1.15 crore) unallocated
limits of SSE.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based limits 11.25 [ICRA]B reaffirmed
Unallocated limits 1.75 [ICRA]B reaffirmed
The reaffirmation of the rating is primarily constrained by large
debt funded capex incurred towards expansion of frozen food
processing facility; high geographic concentration risk with
entire exports to Russia; and high customer concentration risk
with three customers accounting for all SSE's exports. Further,
the rating also factors in exposure of firm's profitability to
forex risk given no defined hedging mechanism; risks associated
with food processing industries viz. susceptibility to diseases,
agro-climatic risks, and policy changes from the governments in
the domestic market and overseas markets. ICRA also notes the
significant funding risk for the project given the pending
financial closure and receipt of subsidy from government. However,
the ratings positively factor in significant increase in operating
margins owing to a drop in raw material prices and addition of
sweet corn to product portfolio in FY15; and favorable demand
outlook for food exports to Russia due to banning of food imports
from European Union to Russia. The frozen food processing facility
is located in a large fruit growing cluster in India which ensures
easy availability of raw materials and the firm's established
relationship with farmers and agents.
Going forward, ability of the firm to complete the frozen food
processing facility without time and cost overruns, ramp up of
revenues post commissioning of the facility while managing its
working capital requirements will remain key rating drivers from
credit perspective.
Siva Sai Exports (SSE) is a partnership firm, was formed in 2007
to undertake export of fruits and vegetables to Russia. The
operations are managed by the two partners, Mr. Samba Siva Rao,
Mrs. Siva Kumari and their son, Mr. Naresh Choudhary, who are
settled in Russia. The firm exports grapes, pomegranate, potatoes,
ginger, garlic, onion and other fruits and vegetables. The firm is
in the process of setting up a cold storage and a frozen food
processing facility at a cost of INR60 crore, to be funded by ~Rs.
32 crore of term loan, promoter's capital of ~Rs. 17 crore and
INR10 crore of central government subsidy. The firm is expected to
commence the first phase of operations of the new facility in
March 2016.
Recent Results
As per FY2015 audited financials, the firm reported INR47.96 crore
of operating income and PAT of INR3.77 crore as compared to
INR41.99 crore of operating income and PAT of INR2.57 crore in
FY2014.
SOUNDARYA DECORATORS: CRISIL Ups Rating on INR125MM Loan to B+
--------------------------------------------------------------
CRISIL has upgraded its long term rating on the bank loan
facilities of Soundarya Decorators Pvt Ltd (SDPL) to 'CRISIL
B+/Stable' from 'CRISIL B/Stable' while reaffirmed its short term
rating at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 300 CRISIL A4 (Reaffirmed)
Cash Credit 75 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Proposed Long Term 125 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
The rating upgrade reflects CRISIL's belief that SDPL will sustain
its improved financial risk profile, particularly liquidity, over
the medium term. The company reported revenue of INR1.06 billion
for 2014-15 (refers to financial year, April 1 to March 31), a
healthy year-on-year growth of 86 per cent. Its operating
profitability also increased to 11.5 per cent in 2014-15 from
negative 3.59 per cent in 2013-14. Consequently, cash accrual
remained healthy at INR62.5 million against repayment obligations
of INR0.9 million, in 2014-15. CRISIL believes the company's cash
accrual will remain steady, thus further improving its financial
risk profile, over the medium term.
The ratings reflect the extensive experience of SDPL's promoters
in the interior decoration industry, the funding support it
receives from them, and their established relationship with
clients. These rating strengths are partially offset by working-
capital-intensive operations and a weak financial risk profile
because of a small net worth, high gearing, and below-average debt
protection metrics.
Outlook: Stable
CRISIL believes SDPL will continue to benefit over the medium term
from its promoters' extensive industry experience. The outlook may
be revised to 'Positive' if there is significant and sustainable
growth in revenue and margins, while the capital structure
improves. Conversely, the outlook may be revised to 'Negative' in
case of a significant decline in accrual, a stretch in the
company's working capital cycle, or substantial debt-funded
capital expenditure, adversely impacting the financial risk
profile.
SDPL, set up in 1992, is promoted by Mr. Balaji Rajaraman and Mr.
Sathyamurthy Durai. The company designs interiors and manufactures
custom furniture. Its registered office is in Chennai.
SRI SAI: ICRA Reaffirms B+ Rating on INR9.50cr Cash Credit
----------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ assigned to
INR9.50 crore Cash Credit and INR0.50 crore unallocated limits of
Sri Sai Balaji Tobaccos Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 9.50 [ICRA] B+ reaffirmed
Unallocated 0.50 [ICRA] B+ reaffirmed
The reaffirmed of the rating continues to factors in low
profitability margins inherent to tobacco trading business and
weak financial profile of the firm characterized by high gearing,
weak coverage indicators, and constrained liquidity position as
indicated by high average utilization of working capital limits.
The assigned rating is also constrained by high working capital
intensive nature of the business on account of high inventory due
to seasonality associated with tobacco availability and
susceptibility to agro climatic risks affecting the raw material
availability. Tobacco is a seasonal crop and its production and
auctioning are controlled by the Tobacco Board of India. The board
prescribes the quantity of tobacco to be cultivated and also the
prices for its auction.
However, the rating of the company continues to derive comfort
from long-standing experience of the promoter in tobacco industry
and presence of the company in the major tobacco growing region in
Andhra Pradesh.
Going forward, the company's ability to improve its profitability
and effective management of working capital requirements are key
rating sensitivities from credit perspective.
Sri Sai Balaji Tobaccos Private Limited (SSBTPL) was incorporated
in 2011 by Mr.Showraiah & family to undertake the business of
trading in tobacco. The company is registered with the Tobacco
Board as a tobacco dealer and can participate in the auctions
conducted by the same. The firm is involved in trading of tobacco
leaves, primarily Virginia Flue Cured (VFC) and non-VFC. The
company is situated in Guntur district of Andhra Pradesh which is
among high tobacco growing regions in the state.
Recent Results
According to audited results, the company reported profit after
tax of INR0.27 crore on an operating income of INR36.03 crore
during FY2015 as against profit after tax of INR0.24 crore on an
operating income of INR29.33 crore during FY2014.
SRI VENKATESWARA: ICRA Reaffirms B Rating on INR12.25cr Loan
------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B assigned to
INR12.25 crore fund based limits of Sri Venkateswara Polymers.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund
based Limits 12.25 [ICRA]B; reaffirmed
The rating reaffirmation continues to be constrained by the
limited track record of operations of the firm with the operations
starting from December 2013; highly fragmented nature of the poly
woven sacks industry resulting in stiff competition and thin
profitability margins; and vulnerability of profitability to
fluctuations in polymer prices though it is mitigated to a certain
extent by the firm ability to pass on the same to customers. The
rating is further constrained by weak financial profile of the
firm characterised by high gearing and weak coverage indicators on
account of debt funded capital expenditure coupled with high
working capital borrowings; insufficiency of cash accruals for
term loan repayments with the shortfall funded by promoter funds
and risks inherent to the partnership nature of the firm. The
rating reaffirmation however takes comfort from the firm's
proximity to its client base (cement units) with many cement
players in the nearby region; improvement in capacity utilisation
to ~58% in its first full year of operations relative to ~30% for
the previous year (3 months of operations); and the proposed
cement hub facility in Koilkuntla near Nandyal (Kurnool) in Andhra
Pradesh is expected to augur well for the firm in future.
Going forward, the firm's ability to improve its scale of
operations, profitability and effectively manage its working
capital coupled with timely infusion of equity to support debt
servicing would be the key rating sensitivity.
Sri Venkateswara Polymers (SVP) is a partnership firm involved in
the manufacture of Poly Propylene (PP) sacks of various grades
used in different industries. The firm was established in December
2013 by Mr. Kasi Reddy, Mr. Masthan Reddy and Mr. Raghurami Reddy.
The plant is situated in Nandyal in Kurnool district in Andhra
Pradesh and has an installed capacity of 3600 metric tonnes per
annum. The PP sacks are used for packaging commodities like
cement, fertilizers, mineral, chemicals, food grains, Fast Moving
Consumer Goods (FMCG), etc.
Recent Results
For FY2015, the firm reported net loss of 0.81 crore on an
operating income of 22.96 crore, as against a net loss of INR0.44
crore on an operating income of INR1.95 crore during FY2014 (three
months of operations). For H1FY2016 (provisional), it has reported
an operating income of INR17.26 crore.
VEHLNA STEELS: ICRA Reaffirms B+ Rating on INR6.68cr LT Loan
------------------------------------------------------------
ICRA has reaffirmed its long term rating of [ICRA]B+ on the
INR6.22 crore (reduced from INR6.68 crore) fund based bank
facilities and INR1.56 crore (enhanced from INR1.09 crore)
unallocated limits of Vehlna Steels and Alloys Private Limited.
ICRA has withdrawn its short term rating of [ICRA]A4 on the
INR0.01 crore non-fund based bank facilities of VSAPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits
Long Term 6.68 [ICRA]B+; reaffirmed
Unallocated-Long
Term 1.09 [ICRA]B+; reaffirmed
Non Fund Based
Limits Short Term 0.01 [ICRA]A4; withdrawn
The rating reaffirmation takes into account the muted growth in
VSAPL's operating income in 2014-15 owing to low volume growth,
and its subdued operating and net profit margins. ICRA's ratings
continue to derive comfort from the long track record of the
promoters, easy availability of raw material and forward
integration of the firm into flat steel products. The ratings are,
however, constrained by VSAPL's modest scale of operations and the
highly competitive and cyclical nature of the steel industry in
which it operates, which leads to low bargaining power and is
likely to exert pressure on its profit margins in the future as
well. The ratings also factor in the vulnerability of the
company's profitability to raw material price fluctuations and the
company's weak coverage metrics with interest coverage of 1.26
times and debt service coverage ratio of 0.91 times, in 2014-15.
Going forward the company's ability to ramp up its scale of
operations, improving its profit margins and optimally managing
its working capital cycle will be the key rating sensitivities.
VSAPL was established in 1999 and was initially engaged in the
manufacturing of MS (Mild Steel) Ingots. From 2009-10, it also
started production of MS Flats. The company has been promoted by
Mr. Yogesh Jain, Mr. Arun Kumar Maheshwari and Mr. Brij Mohan
Aggarwal. The company has one induction furnace for steel ingots
and two rolling units for MS flats/MS bars/girders. The
manufacturing unit of the company is located in Muzaffarnagar
(Uttar Pradesh) and has an installed capacity for manufacturing
15,000 Metric Tonnes Per Annum (MTPA) of MS ingots and 51,075 MTPA
of MS flats.
Recent Results
VSAPL reported a net profit of INR0.03 crore on an operating
income of INR36.64 crore for 2014-15 as compared to a net profit
of INR0.02 crore on an operating income of INR36.75 crore for the
previous year.
=================
I N D O N E S I A
=================
ALAM SUTERA: Fitch Affirms 'B+' LT IDR & Revises Outlook to Neg.
----------------------------------------------------------------
Fitch Ratings has revised Indonesia-based homebuilder PT Alam
Sutera Realty Tbk's (ASRI) Outlook to Negative from Stable. At
the same time the agency has affirmed the company's Long-Term
Issuer Default Rating at 'B+'.
The Negative Outlook reflects increased uncertainty about ASRI's
ability to improve its presales in 2016, and the resultant strain
on its cash collections, given the slow domestic macroeconomic
environment. There is also a risk that presales could be
constrained by buyers exercising caution on asset purchases due to
the government's clampdown on tax evasion. Fitch also believes
the company could face some residual challenges in re-launching
its residential units at its Pasar Kemis township. The higher
proportion of commercial property sales in ASRI's presales mix
also increases uncertainty that ASRI will meet its 2016 presales
targets, given buyers in this segment typically delay purchases
during economic downturns.
KEY RATING DRIVERS
Weak Presales in 2015: ASRI sold about IDR1.5tn of property in the
nine months to 30 September 2015 (9M15), which is just 32% of its
annual target of IDR4.5tn. This shortfall is one of worst across
the Indonesian homebuilders that Fitch rates. Consequently ASRI's
sales efficiency, measured by the ratio of presales / gross debt
weakened to 0.33x based on annualized 9M15 sales, compared with
0.7x in 2014, and 1.1x in 2013. However if the company achieves
its revised sales target of IDR4.5 bil. for FY15, its sales
efficiency will increase above the 0.75x negative rating trigger.
More Commercial Property Sales: ASRI expects most of the rebound
in presales in 2016 to stem from commercial property, but the
company is also planning to re-launch residential clusters in its
Pasar Kemis project, which had a healthy take up in 1H15.
Furthermore, several of its residential and commercial high-rise
projects are due to be completed in 2016, which should help the
company to boost sales. However to reflect the increase of
commercial property in the sales mix, Fitch has amended the ratios
where it would consider negative rating action. In particular,
the negative trigger on leverage (defined as net debt/property
assets less customer advances) has been reduced to 50% from 60%
previously.
Good Assets, Ample Landbank: The affirmation of ASRI's ratings
reflects our view that the company's business risk profile has not
weakened significantly. ASRI has ample low-cost land bank of
around 2,000 hectares (ha) to meet its future sales, including
240ha of land in its established Alam Sutera township, which it
plans to start selling towards end-2017.
Comfortable Debt Maturities: In 2015, ASRI repurchased all of its
2017 US dollar notes. The next significant debt maturity of
USD225m (about IDR3trn) at today's exchange rates) only comes up
for repayment in 2019, which provides the company with comfortable
headroom space to effect a turnaround in reinvigorate its
presales. However, based on Fitch's conservative estimates for
2016, it expects ASRI will need to draw down additional debt if it
is to fund its planned land acquisitions of IDR800 bil.
KEY ASSUMPTIONS
Fitch's key assumptions within our rating case for the issuer
include:
-- Presales will increase to IDR3.1tn in 2016, from around
IDR2tn in 2015
-- Presales / gross debt will recover to 0.4x in 2015, and
0.6x in 2016
-- Leverage will remain around 45%-46% in 2016-2017
-- ASRI will spend IDR800bn on land acquisitions in 2016
RATING SENSITIVITIES
Positive: Factors that may individually, or collectively, lead to
the outlook being revised to Stable:
-- A sustained increase in presales /gross debt to more than
0.75x, while maintaining leverage of less than 50% (2016
projection: 45%)
Negative: Factors that may individually, or collectively, lead to
a negative rating action include:
-- Presales/gross debt sustained below 0.75x beyond 2016
-- A sustained increase in leverage more than 50%
-- Higher spending into non-core businesses
FULL LIST OF RATING ACTIONS
PT Alam Sutera Realty Tbk
Long-Term Issuer Default Rating affirmed at 'B+'; Outlook
revised to Negative from Stable
Senior unsecured rating affirmed at 'B+' and Recovery Rating of
'RR4'
Alam Synergy Pte Ltd
USD235 mil. senior unsecured notes maturing in 2019 affirmed at
'B+' and Recovery Rating of 'RR4'
USD225 mil. senior unsecured notes maturing in 2020 affirmed at
'B+' and Recovery Rating of 'RR4'
SRI REJEKI: S&P Revises Outlook to Negative & Affirms 'BB-' CCR
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on PT Sri Rejeki Isman Tbk. (Sritex) to negative from
stable. At the same time, S&P affirmed its 'BB-' long-term
corporate credit rating on the company. In line with the outlook
revision, S&P lowered its ASEAN regional scale rating on Sritex to
'axBB' from 'axBB+'. In addition, S&P also affirmed its 'BB-'
long-term issue ratings on notes issued by Golden Legacy Pte. Ltd.
and guaranteed by Sritex, an Indonesia-based textile producer.
"We revised the outlook to reflect our view that Sritex's cash
flows are likely to fall short of its funding needs for capital
expenditure and working capital over the next 12 months," said
Standard & Poor's credit analyst Vishal Kulkarni. This follows
the company's substantial investment in working capital over the
nine months ended Sept. 30, 2015. Sritex also has still-sizable
capital spending plans for the next 12 months, which will continue
to reduce the company's liquidity headroom.
Sritex's investment in working capital over the past three
quarters has been materially higher that S&P earlier anticipated.
The company invested more than US$50 million over the period,
through growth in inventories (about US$34 million) and
receivables (about US$14 million). S&P acknowledges that Sritex
made part of this working capital build-up, especially that of
inventories, in anticipation of the festive season and new
contracts.
Sritex expects some unwinding of working capital in the quarter
ending Dec. 31, 2015, as inventory rationalizes. However, the
company is yet to demonstrate its ability to structurally reduce
working capital investment as it grows. The release of working
capital in the fourth quarter of 2015 would have to be
substantial--at more than US$30 million--for the company's total
yearly investment in working capital to moderate and support its
liquidity.
In S&P's view, Sritex's sizable capital spending plans for the
next 12 months will increase cash outflows and could test
liquidity. S&P anticipates the company will spend close to
US$85 million during the 12 months ending Sept. 30, 2016,
including US$40 million-US$50 million in the fourth quarter of
2015 alone. Given an unencumbered cash balance of about
US$28 million, Sritex may need to tie-up additional funding in
case the release of working capital is further delayed.
S&P considers Sritex's decision to not go ahead with the building
of a captive power plant as positive from a credit standpoint.
Had the company progressed with the construction, further leverage
and project execution risk beyond its core competencies could have
put pressure on the ratings. However, Sritex's appetite for such
debt-funded growth suggests that management's strategy and
financial policy could be becoming somewhat more unpredictable,
with some degree of event risk for financial metrics.
Sritex has previously indicated its willingness to invest
downstream into retailing, through organic expansion or mergers
and acquisitions. While S&P' understands the company has no
concrete near-term plans in that regard, management's discipline
in managing capex and operating investments will be key to
demonstrating prudent financial management and for the rating to
remain at the 'BB-' level.
"We affirmed the rating because Sritex's operating performance for
2015 is in line with our expectations," said Mr. Kulkarni. As
Sritex brings on-stream its new capacity, we expect it to match
our projection for its operating performance in 2016 as well.
EBITDA for the nine months ended Sept. 30, 2015, represented about
78% of our full-year forecast.
S&P assess Sritex's liquidity position as "adequate." A
normalization of the company's working capital over the next 12
months should allow liquidity sources to exceed its liquidity
needs by about 1.2x over the next 12 months. Nevertheless, S&P
believes Sritex's liquidity sources may barely cover its liquidity
needs if working capital management does not improve and the
company continues to spend heavily over the period.
Principal liquidity sources:
-- FFO that S&P expects to be US$70 million over the next 12
months.
-- A cash balance of US$27.9 million as of Sept. 30, 2015. S&P
do not include about US$52.5 million in restricted cash that
the company holds as deposits for back-to-back bank
facilities.
-- Working capital release of a maximum of US$40 million in the
quarter ended Dec. 31, 2015, although this number could be
lower.
Principal liquidity uses:
-- Debt maturities of about US$28.6 million, including accrued
interest.
-- Working capital investments of no more than US$20 million
for the nine months ended Sept. 30, 2016.
-- Annual capital spending of about US$83 million over the next
12 months, even though S&P believes the company would spend
less in a tighter liquidity situation.
The negative outlook indicates a one-in-three likelihood of a
downgrade over the next six to 12 months if persistent investments
in working capital and sustained capital expenditure continue to
erode Sritex's liquidity.
S&P could lower the rating if it assess Sritex's liquidity as
having sustainably eroded. This could materialize if the company
continues to aggressively invest in working capital and expansion,
such that the ratio of liquidity sources to liquidity needs falls
toward 1.0x with no prospect of recovery.
S&P could also lower the rating if: (1) S&P assess Sritex's
strategy and financial policies have become more aggressive. This
could happen if the company undertakes large debt-funded
investments outside its core operations; (2) Sritex's operating
performance is materially weaker than our expectation, such that
the ratio of FFO to debt is sustainably below 15%; or (3) if the
company's U.S. dollar-denominated sales decline significantly,
increasing the currency mismatch between cash flows and debt-
servicing needs.
S&P could revise the outlook on Sritex to stable if the company
has a longer record of prudent liquidity management and
structurally improves its working capital practices. A revision
of the outlook to stable would also be contingent on a stronger
commitment to a prudent financial policy, supported by viable
capital expenditure plans and the maintenance of a ratio of FFO to
debt approaching 20%.
TOWER BERSAMA: S&P Lowers LT CCR to 'BB-'; Outlook Stable
---------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on PT Tower Bersama
Infrastructure Tbk. (TBIG) to 'BB-' from 'BB'. The outlook is
stable. S&P also lowered its long-term issue rating on the
company's guaranteed senior unsecured notes to 'BB-' from 'BB'.
At the same time, S&P lowered its long-term ASEAN regional scale
rating on the Indonesia-based telecom tower operator to 'axBB+'
from 'axBBB-'.
"We lowered the rating on TBIG because we regard the company's
announcement of more generous shareholder return policies as
indicative of more aggressive financial policies and higher debt
tolerance levels than we earlier anticipated," said Standard &
Poor's credit analyst Annabelle Teo.
On Nov. 23, 2015, TBIG announced that it will initiate a formal
shareholder policy that will entail substantial payments to
shareholders from 2016 onwards. The company expects to spend
about Indonesian rupiah (IDR) 1 trillion on dividends or share
buybacks. The company also expects this amount to grow each year.
S&P's earlier base case contemplated shareholder returns of no
more than IDR400 billion through to 2016.
S&P estimates that TBIG's new shareholder return policies,
together with the company's organic and inorganic spending on
growth, will translate into a steady-state ratio of net debt to
EBITDA of about 5.0x. S&P understands that the company has no
intention of deleveraging over the next 24 months at least, even
if it slows down its capital spending. S&P therefore expects the
ratio of funds from operations (FFO) to debt to be below 12% and
the EBITDA interest coverage to be marginally above 2.0x over the
next 24 months. These levels are at the weaker end of S&P's
"aggressive" financial risk profile and are no longer commensurate
with a 'BB' rating.
TBIG announced on Nov. 9, 2015, that it had raised a US$275
million bank facility with very competitive pricing. The company
used proceeds from this facility to repay short-term loans. TBIG
therefore does not have any debt maturities until the second half
of 2018. S&P acknowledges that the company's solid domestic
position, high quality counterparties, and minimal operating costs
enhance the predictability of its operating cash flows.
Nevertheless, S&P believes that TBIG's revised shareholder return
policy may require the company to raise more debt to fund its
organic and inorganic growth.
"The stable outlook on TBIG reflects our expectation that the
company will operate within its target leverage (net debt-to-
EBITDA ratio) of about 5.0x and that its EBITDA interest coverage
will remain above 2.0x over the next 12 months at least," said
Ms. Teo.
S&P may downgrade TBIG if the company's appetite for debt-funded
acquisitions, capital expenditure, or shareholder returns
increases beyond S&P's expectations. EBITDA interest coverage
below 1.75x with no prospect of recovery would indicate such
deterioration.
An upgrade is unlikely over the next 12 months, given TBIG's
revised shareholder return policy. However, S&P may raise the
rating if the company commits to a more conservative financial
policy. A FFO-to-debt ratio approaching 15% and EBITDA interest
coverage consistently above 2.5x would indicate such improvement.
* Indonesian Banks Under Stress, FT Reports
-------------------------------------------
Gavin Bowring at The Financial Times reports that published data
would suggest Indonesian banks are holding up well, in spite of
the commodity downturn, a lack of diversification in the economy
and protracted currency weakness.
But there is good reason to believe such data do not tell the full
story. While the true extent of stress is hard to gauge, it is
unlikely that medium-sized banks, in particular, will be able to
maintain healthy profits for long, according to FT Confidential
Research, an FT investment research service.
Across the banking sector, nonperforming loans (NPLs) were 2.6 per
cent of total loans at the middle of this year, up from 2.2 per
cent last year. They are likely to edge up past 3 per cent in
2016, FT says.
That is still a manageable level. Other data, too, look
comfortable. Average capital adequacy ratios and net interest
margins have edged up, while loan-to-deposit ratios have declined,
FT relays citing Bank Indonesia, the central bank.
But these figures may be misleading. There are more than 120 banks
in Indonesia, yet the country's "big four" - Bank Mandiri, Bank
Central Asia, Bank Rakyat Indonesia and Bank Negara Indonesia -
account for 40 per cent of total banking assets. So the outward
display of banking sector health owes much to them. Smaller banks,
however, are increasingly under pressure, says FT.
FT notes that smaller banks, however, are increasingly under
pressure. The rate of credit growth has slowed to 11 per cent a
year, well below the 20 per cent to 30 per cent of recent years.
This will cut into banks' earnings and make it harder for their
customers to refinance their debts.
In the mining sector, for example, recorded NPLs are running at
3.5 per cent. This severely understates the extent of stress in
the sector, where many banks are allowing clients to extend their
loans or are taking their assets as collateral, forcing them to
cut operations to meet repayments, according to FT. This is adding
to pain in the sector, which invested heavily into the boom in
Chinese demand between 2009 and 2013 and is caught in a supply
glut, FT states.
With coal prices having tumbled more than half from their peak,
dozens or perhaps hundreds of small and medium-sized miners are
struggling to service their debts, says FT.
FT discloses that real estate and construction is another risk
area, with the rising official NPL rate close to 6 per cent.
The sector has been one of the biggest drivers of private-sector
external debt, which more than trebled over the past decade to
$162 billion in the third quarter, according to the central bank,
FT relays.
FT adds that the rupiah's slide against the US dollar has made
servicing these debts especially hard. Since many developers have
borrowed both overseas and at home, banks are also exposed. The
real estate sector posted strong profits in the first half but
this robustness is certain to weaken in the second half of this
year, FT notes.
=========
J A P A N
=========
TOSHIBA CORP: Mulls Splitting Off Chip Business and Listing It
--------------------------------------------------------------
Reuters reports that Toshiba Corp said Nov. 27 it was thinking of
splitting off most of its chip business into a separate company,
with listing the business an option -- a move that would help it
raise capital in the wake of a $1.3 billion accounting scandal.
But Toshiba Chief Executive Masashi Muromachi told reporters that
NAND flash memory chips remained a core part of the conglomerate's
business and that division would not be sold, Reuters relates.
About Toshiba Corp.
The Troubled Company Reporter-Asia Pacific, citing Reuters,
reported on July 22, 2015, that an independent investigation said
in a report on July 21 that Toshiba Corp. overstated its operating
profit by JPY151.8 billion ($1.22 billion) over several years in
accounting irregularities involving top management.
The investigating committee said in a report filed by Toshiba to
the Tokyo Stock Exchange that Toshiba President and Chief
Executive Hisao Tanaka and his predecessor, Vice Chairman Norio
Sasaki, were aware of the overstatement of profits and delay in
reporting losses in a corporate culture that "avoided going
against superiors' wishes," according to Reuters.
The TCR-AP, citing Bloomberg News, reported on July 22, 2015, that
Toshiba Corp. President Hisao Tanaka and two other executives quit
to take responsibility for a $1.2 billion accounting scandal that
caused the maker of nuclear reactors and household appliances to
restate earnings for more than six years.
Norio Sasaki, the vice chairman, and Atsutoshi Nishida, a former
president who was serving as adviser, also resigned, the Tokyo-
based company said July 21, more than two months after announcing
it was investigating possible accounting irregularities, according
to Bloomberg.
On Nov. 12, 2015, the TCR-AP reported that Moody's Japan K.K. has
downgraded the issuer rating and long-term senior unsecured bond
ratings of Toshiba Corporation to Baa3 from Baa2, as well as its
subordinated debt rating to Ba2 from Ba1. Moody's has also changed
the rating outlook to negative from stable. At the same time,
Moody's has downgraded Toshiba's short-term rating to Prime-3 from
Prime-2.
Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is
a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others. The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-scale
integrated (LSI) circuits for image information systems and liquid
crystal displays (LCDs), among others. The Social Infrastructure
segment offers various generators, power distribution systems,
water and sewer systems, transportation systems and station
automation systems, among others. The Home Appliance segment
offers refrigerators, drying machines, washing machines, cooking
utensils, cleaners and lighting equipment. The Others segment
leases and sells real estate.
===============
M A L A Y S I A
===============
CHINA STATIONERY: Exits PN17 Status After Upliftment
----------------------------------------------------
The Sun Daily reports that China Stationery Limited is no longer
classified a Practice Note 17 (PN17) company effective Nov. 26.
The report relates that the company exited PN17 status, after
Bursa Malaysia Securities Bhd approved its application for a
waiver to submit a regularisation plan and upliftment from being a
PN17 company vide a letter dated Nov 26, 2015.
The upliftment was approved after the company recorded net profits
for three consecutive quarters, according to Sun Daily.
The Sun Daily relates that in the recent financial announcement,
China Stationery recorded a net profit of RMB57.53 million in the
third quarter ended Sept 30, 2015 on the back of RMB215.93 million
revenue.
According to the report, China Stationery CEO and executive
chairman Chan Fung @ Kwan Wing Yin said the upliftment is expected
to put the group on a much stronger footing to regain the
investors' confidence in the Group's prospects.
"We will improve the quality of our products and expand the
product range through in-house research and development. On top of
that, we will also widen our distributorship in China market and
penetrate into new markets," the report quotes Mr. Chan as saying.
The Sun Daily notes that China Stationery was classified as an
affected listed issuer on July 8, 2014 due to the issuance of the
disclaimer of opinion for its financial statements for the FY2013
by its external auditors Messrs RT LLP following the fire incident
in one its plants in China.
The auditors, however, had on Jan 15, 2015 completed its special
audit on the financial statement of the company and its
subsidiaries for the nine months financial period ended Sept 30,
2014 (9MFY2014), the report relates.
According to Sun Daily, the audited report showed that China
Stationery's audited net loss for 9MFY2014 was lower at RMB330.59
million compared to the previously announced unaudited net loss of
RMB396.72 million.
The Sun Daily says the variance of RMB66.13 million represents a
16.7% difference. The deviation was due to the recognition of
deferred tax assets from losses of RMB128.29 million from the
Company's indirect wholly owned subsidiaries namely Sakura
(Fujian) Plastics Enterprise Co., Ltd and Sakura (Fujian)
Packaging & Stationery Co., Ltd.
The deviation was also reconciled with a provision for doubtful
debts of RMB60.36 million for debts exceeding 90 days in the
Company's indirect wholly owned subsidiary namely Ruiyuan (Fujian)
Enterprise Co., Ltd, Sun Daily relays.
China Stationery Limited (KLSE: CSL) is a Malaysia-based
investment holding company. The Company, through its subsidiaries,
is a manufacturer and seller of plastic stationery products. The
Company has two main business segments: patent and non-patent. The
patent segment comprises products, including the plastic tape
printer, net bag and files with cover that may be locked. The main
patented product is the plastic tape printer. The non-patented
segment involves in designing, manufacturing and selling plastic
filing and storage products, such as expendables files, document
files, moveable document cases, expanding folders, CD holders,
filing bags, display books, envelope bags and lever clip files.
The Company also supplies the ink that is specifically formulated
for the patented tape printer.
===============
M O N G O L I A
===============
STATE BANK: Fitch Cuts LT Issuer Default Rating to 'B-'
-------------------------------------------------------
Fitch Ratings has downgraded the Long-Term Issuer Default Ratings
(IDRs) of Mongolia-based State Bank LLC to 'B-' from 'B'. The
Outlook is Stable. Fitch has affirmed the IDRs of Khan Bank LLC
at 'B', with Negative Outlook.
At the same time, the Support Rating (SR) of State Bank was
downgraded to '5' from '4' and Support Rating Floor (SRF) was
revised to 'B-' from 'B'. These actions follow the downgrade in
the Mongolian sovereign to 'B' from 'B+' on 24 November 2015.
KEY RATING DRIVERS
IDRs AND VRs
The affirmation of Khan Bank's IDRs and VR reflects the bank's
manageable asset quality, reasonable risk standards and adequate
capitalisation that is better than that of its Fitch-rated peers.
The bank's large retail loan portfolio of 59% of total loans at
end-1H15 had an impaired loan ratio of just 0.5%. The Fitch Core
Capital ratio remained stable at 14.1% end-1H15. The bank
maintains a strong business franchise and has better strategic
discipline compared with peers.
Khan Bank has good liquidity support from bilateral institutions
and the bank's corporate governance benefit from the involvement
of international shareholders in its management.
Khan Bank's Outlook remains Negative because of the pressure on
asset quality from the weakening operating environment.
State Bank's VR reflects the bank's limited loss-absorption
capacity, less stable liquidity relative to Fitch-rated peers and
low profitability. Capital is considered tight and the bank has
weak access to capital and funding from multilateral institutions.
Profitability continues to be constrained by the regulatory net
loan-to-total asset ratio cap of 57%. The bank's VR is balanced by
its large franchise, stable asset quality and low risk appetite
relative to Fitch-rated peers.
IDRs, SUPPORT RATING AND SUPPORT RATING FLOOR
The downgrade of State Bank's IDRs, SR and SRF is a function of
the downgrade of the sovereign's rating as this indicates the
state's ability to support the bank has weakened, although our
expectation of the government's propensity to provide support has
not reduced. The bank is 100% state-owned and remains the domestic
bank most likely to receive state support in case of need. The
Outlook on State Bank is Stable, which mirrors the Outlook on the
sovereign's IDRs.
Khan Bank's SR and SRF have been affirmed at '5' and 'B-'
respectively, reflecting Fitch's view that sovereign support,
although possible, cannot be relied upon. This is in spite of
Fitch's views that the sovereign's propensity to support the bank
remains strong given its systemic importance.
RATING SENSITIVITIES
IDRs AND VRs
Fitch would downgrade Khan bank's IDRs and VR if the bank were to
become more vulnerable to the deteriorating operating environment
than in the past. Positive rating actions could be driven by a
stabilisation of the operating environment leading to improved
asset quality and liquidity conditions.
State Bank's VR is sensitive to any change in its intrinsic
profile, including but not limited to, the bank's capital, loan
quality, operating performance and liquidity position.
The VR of State Bank now sits on its SRF. The bank's IDRs would be
downgraded only if Fitch were to downgrade its VR and SRF.
SUPPORT RATING AND SUPPORT RATING FLOOR
The banks' SR and SRF are sensitive to the sovereign's ability and
propensity to support, as expressed in any change in the sovereign
ratings of Mongolia.
The rating actions are as follows:
State Bank LLC
Long-Term Foreign-Currency IDR downgraded to 'B-' from 'B';
Outlook Stable
Short-Term Foreign-Currency IDR affirmed at 'B'
Long-Term Local-Currency IDR downgraded to 'B-' from 'B'; Outlook
Stable
Viability Rating affirmed at 'b-'
Support Rating downgraded to '5' from '4'
Support Rating Floor revised to 'B-' from 'B'
Khan Bank LLC
Long-Term Foreign-Currency IDR affirmed at 'B'; Outlook Negative
Short-Term Foreign-Currency IDR affirmed at 'B'
Long-Term Local-Currency IDR affirmed at 'B'; Outlook Negative
Viability Rating affirmed at 'b'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'B-'
===============
T H A I L A N D
===============
* Fitch Says Volatile Stock Market Pressure Thai Securities Firms
-----------------------------------------------------------------
Weakening economic conditions and a volatile stock market would
prove challenging for Thai securities companies in 2016, Fitch
Ratings says in a new special report.
Brokerage income formed 68% of Thai securities companies' total
revenue in 2014. As a result, volatility in securities trading
volume would directly impact the companies' earnings.
Furthermore, related businesses, such as investment banking,
margin loans, trading and asset management, are also likely to be
affected by stock market conditions.
The securities industry in Thailand remains highly competitive and
fragmented with the top 10 companies accounting for about 50% of
traded value during the first nine months of 2015. Competition is
likely to continue increasing in the near to medium term as the
barriers to entries are low. Nevertheless, Fitch expects
securities companies' ratings in Thailand to remain largely
unchanged in the near term. This is because the companies'
ratings remain underpinned by group support (for securities
subsidiaries) and long-established franchises with sound financial
strength (for independent securities companies).
Fitch applies two rating approaches in rating securities companies
in Thailand. The first approach is based on the agency's
expectation that the companies will receive extraordinary support
from their parents, if needed. The second approach is based on
the companies' standalone profiles.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week Nov. 23 to Nov. 27, 2015
-----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
AUSDRILL FINANCE P 6.88 11/01/19 USD 71.00
AUSDRILL FINANCE P 6.88 11/01/19 USD 73.00
BOART LONGYEAR MAN 7.00 04/01/21 USD 40.00
BOART LONGYEAR MAN 7.00 04/01/21 USD 41.50
CML GROUP LTD 9.00 01/29/20 AUD 0.90
CRATER GOLD MINING 10.00 08/18/17 AUD 30.50
EMECO PTY LTD 9.88 03/15/19 USD 58.00
EMECO PTY LTD 9.88 03/15/19 USD 59.00
FMG RESOURCES AUGU 6.88 04/01/22 USD 73.74
FMG RESOURCES AUGU 6.88 04/01/22 USD 73.74
IMF BENTHAM LTD 6.38 06/30/19 AUD 71.50
KBL MINING LTD 12.00 02/16/17 AUD 0.32
KEYBRIDGE CAPITAL 7.00 07/31/20 AUD 0.68
LAKES OIL NL 10.00 03/31/17 AUD 6.50
MIDWEST VANADIUM P 11.50 02/15/18 USD 3.20
MIDWEST VANADIUM P 11.50 02/15/18 USD 3.20
STOKES LTD 10.00 06/30/17 AUD 0.40
TREASURY CORP OF V 0.50 11/12/30 AUD 62.80
CHINA
-----
CHANGCHUN CITY DEV 6.08 03/09/16 CNY 40.20
CHANGZHOU INVESTME 5.80 07/01/16 CNY 40.30
CHANGZHOU WUJIN CI 5.42 06/09/16 CNY 50.11
CHINA GOVERNMENT B 1.64 12/15/33 CNY 74.10
DANDONG CITY DEVEL 6.21 09/06/17 CNY 71.00
DATONG ECONOMIC CO 6.50 06/01/17 CNY 70.00
DRILL RIGS HOLDING 6.50 10/01/17 USD 69.00
DRILL RIGS HOLDING 6.50 10/01/17 USD 69.80
ERDOS DONGSHENG CI 8.40 02/28/18 CNY 67.50
GRANDBLUE ENVIRONM 6.40 07/07/16 CNY 71.35
GUOAO INVESTMENT D 6.89 10/29/18 CNY 67.27
HANGZHOU XIAOSHAN 6.90 11/22/16 CNY 40.50
HEBEI RONG TOU HOL 6.76 07/08/21 CNY 74.60
HEILONGJIANG HECHE 7.78 11/17/16 CNY 41.25
HEILONGJIANG HECHE 7.78 11/17/16 CNY 40.50
HUAIAN CITY URBAN 7.15 12/21/16 CNY 70.48
JIANGSU HUAJING AS 5.68 09/28/17 CNY 50.55
JINGJIANG BINJIANG 6.80 10/23/18 CNY 70.03
KUNSHAN ENTREPRENE 4.70 03/30/16 CNY 40.08
LIAOYUAN STATE-OWN 7.80 01/26/17 CNY 81.50
LINHAI CITY INFRAS 7.98 11/06/16 CNY 51.67
NANJING NANGANG IR 6.13 02/27/16 CNY 52.50
NANJING YURUN FOOD 6.45 03/17/16 CNY 56.00
NANTONG STATE-OWNE 6.72 11/13/16 CNY 40.00
OCEAN RIG UDW INC 7.25 04/01/19 USD 46.44
OCEAN RIG UDW INC 7.25 04/01/19 USD 47.00
PANJIN CONSTRUCTIO 7.70 12/16/16 CNY 71.40
QINGZHOU HONGYUAN 6.50 05/22/19 CNY 40.10
SHAOYANG CITY CONS 7.40 09/11/18 CNY 88.60
SHENGZHOU HOTEL CO 9.20 02/26/16 CNY 100.00
TAIZHOU CITY CONST 6.90 01/25/17 CNY 70.47
TONGLIAO CITY INVE 5.98 09/01/17 CNY 69.00
WUXI COMMUNICATION 5.58 07/08/16 CNY 50.40
XINJIANG SHIHEZI D 7.50 08/29/18 CNY 65.04
YANGZHOU ECONOMIC 6.10 07/07/16 CNY 50.30
YANGZHOU URBAN CON 5.94 07/23/16 CNY 40.43
YIJINHUOLUOQI HONG 8.35 03/19/19 CNY 70.25
YUNNAN INVESTMENT 5.25 08/24/17 CNY 71.22
ZOUCHENG CITY ASSE 7.02 01/12/18 CNY 61.91
INDONESIA
---------
BERAU COAL ENERGY 7.25 03/13/17 USD 34.00
BERAU COAL ENERGY 7.25 03/13/17 USD 32.02
GAJAH TUNGGAL TBK 7.75 02/06/18 USD 57.25
GAJAH TUNGGAL TBK 7.75 02/06/18 USD 59.00
INDONESIA TREASURY 6.38 04/15/42 IDR 71.78
PERUSAHAAN PENERBI 6.10 02/15/37 IDR 71.19
INDIA
-----
3I INFOTECH LTD 5.00 04/26/17 USD 12.75
BLUE DART EXPRESS 9.30 11/20/17 INR 10.13
BLUE DART EXPRESS 9.50 11/20/19 INR 10.24
BLUE DART EXPRESS 9.40 11/20/18 INR 10.18
COROMANDEL INTERNA 9.00 07/23/16 INR 15.51
GTL INFRASTRUCTURE 4.03 11/09/17 USD 26.75
INCLINE REALTY PVT 10.85 08/21/17 INR 8.12
JAIPRAKASH ASSOCIA 5.75 09/08/17 USD 70.75
JCT LTD 2.50 04/08/11 USD 24.63
MADHYA PRADESH 8.25 09/09/25 INR 7.92
MADHYA PRADESH 8.27 08/12/25 INR 7.92
PRAKASH INDUSTRIES 5.25 04/30/15 USD 20.00
PYRAMID SAIMIRA TH 1.75 07/04/12 USD 1.00
REI AGRO LTD 5.50 11/13/14 USD 4.16
REI AGRO LTD 5.50 11/13/14 USD 4.16
STATE OF ANDHRA PR 8.24 09/09/25 INR 7.90
SVOGL OIL GAS & EN 5.00 08/17/15 USD 22.63
JAPAN
-----
AVANSTRATE INC 5.55 10/31/17 JPY 37.00
AVANSTRATE INC 5.55 10/31/17 JPY 31.00
ELPIDA MEMORY INC 0.70 08/01/16 JPY 8.25
ELPIDA MEMORY INC 0.50 10/26/15 JPY 8.38
ELPIDA MEMORY INC 2.03 03/22/12 JPY 8.25
ELPIDA MEMORY INC 2.29 12/07/12 JPY 8.25
ELPIDA MEMORY INC 2.10 11/29/12 JPY 8.25
SHARP CORP/JAPAN 1.60 09/13/19 JPY 73.13
TAKATA CORP 0.58 03/26/21 JPY 64.88
KOREA
-----
2014 KODIT CREATIV 5.00 12/25/17 KRW 30.16
2014 KODIT CREATIV 5.00 12/25/17 KRW 30.16
DOOSAN CAPITAL SEC 20.00 04/22/19 KRW 38.75
HYUNDAI HEAVY INDU 4.90 12/15/44 KRW 54.00
HYUNDAI HEAVY INDU 4.80 12/15/44 KRW 54.93
HYUNDAI MERCHANT M 7.05 12/27/42 KRW 36.11
KIBO ABS SPECIALTY 10.00 08/22/17 KRW 25.42
KIBO ABS SPECIALTY 10.00 02/19/17 KRW 36.38
KIBO ABS SPECIALTY 5.00 12/25/17 KRW 28.92
KIBO ABS SPECIALTY 10.00 09/04/16 KRW 38.78
KIBO ABS SPECIALTY 5.00 01/31/17 KRW 32.00
KIBO ABS SPECIALTY 5.00 03/29/18 KRW 29.10
KIBO GREEN HI-TECH 10.00 12/21/15 KRW 71.74
LSMTRON DONGBANGSE 4.53 11/22/17 KRW 29.76
POSCO ENERGY CORP 4.66 08/29/43 KRW 66.58
POSCO ENERGY CORP 4.72 08/29/43 KRW 66.03
POSCO ENERGY CORP 4.72 08/29/43 KRW 65.93
PULMUONE CO LTD 2.50 08/06/45 KRW 55.29
SINBO SECURITIZATI 5.00 01/30/19 KRW 26.40
SINBO SECURITIZATI 5.00 10/30/19 KRW 19.58
SINBO SECURITIZATI 5.00 01/30/19 KRW 26.40
SINBO SECURITIZATI 5.00 08/31/16 KRW 34.57
SINBO SECURITIZATI 5.00 02/21/17 KRW 32.67
SINBO SECURITIZATI 5.00 01/15/18 KRW 29.96
SINBO SECURITIZATI 5.00 01/15/18 KRW 29.96
SINBO SECURITIZATI 5.00 12/07/15 KRW 70.81
SINBO SECURITIZATI 5.00 03/13/17 KRW 32.43
SINBO SECURITIZATI 5.00 05/27/16 KRW 35.68
SINBO SECURITIZATI 5.00 05/27/16 KRW 35.68
SINBO SECURITIZATI 10.00 12/27/15 KRW 68.81
SINBO SECURITIZATI 5.00 01/19/16 KRW 52.88
SINBO SECURITIZATI 5.00 02/02/16 KRW 49.91
SINBO SECURITIZATI 8.00 02/02/16 KRW 54.70
SINBO SECURITIZATI 5.00 10/01/17 KRW 30.65
SINBO SECURITIZATI 5.00 10/01/17 KRW 30.65
SINBO SECURITIZATI 5.00 10/01/17 KRW 30.65
SINBO SECURITIZATI 5.00 06/29/16 KRW 35.31
SINBO SECURITIZATI 5.00 07/08/17 KRW 31.62
SINBO SECURITIZATI 5.00 07/08/17 KRW 31.62
SINBO SECURITIZATI 5.00 07/24/17 KRW 30.48
SINBO SECURITIZATI 5.00 07/24/18 KRW 28.34
SINBO SECURITIZATI 5.00 07/24/18 KRW 28.34
SINBO SECURITIZATI 5.00 12/13/16 KRW 33.52
SINBO SECURITIZATI 5.00 12/25/16 KRW 32.49
SINBO SECURITIZATI 5.00 01/29/17 KRW 32.94
SINBO SECURITIZATI 5.00 02/21/17 KRW 32.67
SINBO SECURITIZATI 5.00 12/23/18 KRW 26.72
SINBO SECURITIZATI 5.00 12/23/18 KRW 26.72
SINBO SECURITIZATI 5.00 12/23/17 KRW 28.94
SINBO SECURITIZATI 5.00 07/26/16 KRW 34.98
SINBO SECURITIZATI 5.00 08/31/16 KRW 34.57
SINBO SECURITIZATI 5.00 10/05/16 KRW 34.20
SINBO SECURITIZATI 5.00 10/05/16 KRW 32.57
SINBO SECURITIZATI 5.00 07/26/16 KRW 34.98
SINBO SECURITIZATI 5.00 08/29/18 KRW 27.85
SINBO SECURITIZATI 5.00 08/29/18 KRW 27.85
SINBO SECURITIZATI 5.00 08/16/16 KRW 33.60
SINBO SECURITIZATI 5.00 08/16/17 KRW 31.21
SINBO SECURITIZATI 5.00 08/16/17 KRW 31.21
SINBO SECURITIZATI 5.00 02/11/18 KRW 29.48
SINBO SECURITIZATI 5.00 02/11/18 KRW 29.48
SINBO SECURITIZATI 5.00 03/12/18 KRW 29.24
SINBO SECURITIZATI 5.00 03/13/17 KRW 32.43
SINBO SECURITIZATI 5.00 06/07/17 KRW 23.89
SINBO SECURITIZATI 5.00 03/12/18 KRW 29.24
SINBO SECURITIZATI 5.00 06/07/17 KRW 23.89
SINBO SECURITIZATI 5.00 06/27/18 KRW 28.55
SINBO SECURITIZATI 5.00 06/27/18 KRW 28.55
SINBO SECURITIZATI 5.00 03/14/16 KRW 42.60
SINBO SECURITIZATI 5.00 09/26/18 KRW 27.63
SINBO SECURITIZATI 5.00 09/26/18 KRW 27.63
SINBO SECURITIZATI 5.00 09/26/18 KRW 27.63
SK TELECOM CO LTD 4.21 06/07/73 KRW 64.82
TONGYANG CEMENT & 7.50 04/20/14 KRW 70.00
TONGYANG CEMENT & 7.50 09/10/14 KRW 70.00
TONGYANG CEMENT & 7.30 04/12/15 KRW 70.00
TONGYANG CEMENT & 7.50 07/20/14 KRW 70.00
TONGYANG CEMENT & 7.30 06/26/15 KRW 70.00
U-BEST SECURITIZAT 5.50 11/16/17 KRW 30.90
SRI LANKA
---------
SRI LANKA GOVERNME 5.35 03/01/26 LKR 73.91
MALAYSIA
--------
BANDAR MALAYSIA SD 0.35 12/29/23 MYR 70.93
BANDAR MALAYSIA SD 0.35 02/20/24 MYR 70.44
BIMB HOLDINGS BHD 1.50 12/12/23 MYR 71.76
BRIGHT FOCUS BHD 2.50 01/22/31 MYR 65.25
BRIGHT FOCUS BHD 2.50 01/24/30 MYR 68.27
LAND & GENERAL BHD 1.00 09/24/18 MYR 0.29
ORO NEGRO IMPETUS 11.00 12/04/15 USD 54.75
SENAI-DESARU EXPRE 0.50 12/31/40 MYR 67.80
SENAI-DESARU EXPRE 0.50 12/31/38 MYR 64.41
SENAI-DESARU EXPRE 0.50 12/31/47 MYR 74.62
SENAI-DESARU EXPRE 0.50 12/29/45 MYR 72.73
SENAI-DESARU EXPRE 0.50 12/30/44 MYR 71.96
SENAI-DESARU EXPRE 0.50 12/31/43 MYR 71.08
SENAI-DESARU EXPRE 0.50 12/31/46 MYR 73.52
SENAI-DESARU EXPRE 0.50 12/30/39 MYR 66.30
SENAI-DESARU EXPRE 0.50 12/31/42 MYR 70.26
SENAI-DESARU EXPRE 0.50 12/31/41 MYR 68.65
SENAI-DESARU EXPRE 1.10 06/30/22 MYR 73.10
SENAI-DESARU EXPRE 1.15 12/29/23 MYR 68.55
SENAI-DESARU EXPRE 1.35 12/31/29 MYR 54.74
SENAI-DESARU EXPRE 1.35 06/30/28 MYR 58.18
SENAI-DESARU EXPRE 1.10 12/31/21 MYR 74.78
SENAI-DESARU EXPRE 1.15 06/30/23 MYR 70.11
SENAI-DESARU EXPRE 1.15 12/31/24 MYR 65.51
SENAI-DESARU EXPRE 1.15 06/30/25 MYR 64.05
SENAI-DESARU EXPRE 1.35 06/30/31 MYR 51.40
SENAI-DESARU EXPRE 1.35 06/30/27 MYR 60.52
SENAI-DESARU EXPRE 1.35 06/28/30 MYR 53.65
SENAI-DESARU EXPRE 1.35 12/31/26 MYR 61.73
SENAI-DESARU EXPRE 1.35 12/31/27 MYR 59.36
SENAI-DESARU EXPRE 1.15 12/30/22 MYR 71.72
SENAI-DESARU EXPRE 1.35 12/31/30 MYR 52.54
SENAI-DESARU EXPRE 1.35 12/29/28 MYR 57.01
SENAI-DESARU EXPRE 1.15 06/28/24 MYR 67.03
SENAI-DESARU EXPRE 1.35 06/30/26 MYR 62.92
SENAI-DESARU EXPRE 1.35 06/29/29 MYR 55.86
SENAI-DESARU EXPRE 1.35 12/31/25 MYR 64.14
UNIMECH GROUP BHD 5.00 09/18/18 MYR 1.22
PHILIPPINES
-----------
BAYAN TELECOMMUNIC 13.50 07/15/06 USD 22.75
BAYAN TELECOMMUNIC 13.50 07/15/06 USD 22.75
SINGAPORE
---------
AXIS OFFSHORE PTE 7.59 05/18/18 USD 53.60
BAKRIE TELECOM PTE 11.50 05/07/15 USD 3.29
BAKRIE TELECOM PTE 11.50 05/07/15 USD 3.68
BERAU CAPITAL RESO 12.50 07/08/15 USD 32.91
BERAU CAPITAL RESO 12.50 07/08/15 USD 74.78
BLD INVESTMENTS PT 8.63 03/23/15 USD 8.88
BUMI CAPITAL PTE L 12.00 11/10/16 USD 19.50
BUMI CAPITAL PTE L 12.00 11/10/16 USD 20.02
BUMI INVESTMENT PT 10.75 10/06/17 USD 21.82
BUMI INVESTMENT PT 10.75 10/06/17 USD 18.35
ENERCOAL RESOURCES 6.00 04/07/18 USD 10.00
GOLIATH OFFSHORE H 12.00 06/11/17 USD 20.09
INDO INFRASTRUCTUR 2.00 07/30/10 USD 1.88
ORO NEGRO DRILLING 7.50 01/24/19 USD 69.00
OSA GOLIATH PTE LT 12.00 10/09/18 USD 62.00
OTTAWA HOLDINGS PT 5.88 05/16/18 USD 56.50
OTTAWA HOLDINGS PT 5.88 05/16/18 USD 50.66
SWIBER HOLDINGS LT 7.13 04/18/17 SGD 73.50
TRIKOMSEL PTE LTD 5.25 05/10/16 SGD 20.00
TRIKOMSEL PTE LTD 7.88 06/05/17 SGD 22.88
THAILAND
--------
G STEEL PCL 3.00 10/04/15 USD 3.74
MDX PCL 4.75 09/17/03 USD 37.50
VIETNAM
-------
DEBT AND ASSET TRA 1.00 10/10/25 USD 49.65
DEBT AND ASSET TRA 1.00 10/10/25 USD 49.63
VINGROUP JSC 9.80 06/02/17 VND 1.00
*********
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 ***