/raid1/www/Hosts/bankrupt/TCRAP_Public/160113.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, January 13, 2016, Vol. 19, No. 8
Headlines
A U S T R A L I A
DICK SMITH: CEO Nick Abboud Resigns
VENTIS HQ: Business Up For Sale Following Collapse
C H I N A
CHINA AOYUAN: Fitch Affirms 'B+' Long-Term Foreign-Currency IDR
EVERGRANDE REAL: Fitch Rates Proposed USD Notes 'BB-(EXP)'
EVERGRANDE REAL: Moody's Rates Proposed USD Sr. Unsec. Notes B3
EVERGRANDE REAL: Moody's Lowers CFR to B2; Outlook Negative
EVERGRANDE REAL: S&P Puts 'B' Rating to Proposed USD Sr. Notes
FUFENG GROUP: S&P Raises CCR to 'BB+'; Outlook Stable
GEELY AUTOMOBILE: 2015 Profit Supports Ba2 CFR, Moody's Says
H O N G K O N G
NOBLE GROUP: Chairman Elman Increases Holding as Shares Sink
PACIFIC ANDES: Defaults on SGD200 Million 2017 Notes
I N D I A
AATREYEE NIRMAN: CRISIL Suspends B+ Rating on INR80MM Cash Loan
AKAR TOOLS: Ind-Ra Assigns 'IND BB+' Long-Term Issuer Rating
ANUPAM SYNTHETICS: CRISIL Suspends B+ Rating on INR61MM LT Loan
AURO ISPAT: CRISIL Suspends D Rating on INR70MM Cash Loan
B.V.S DISTILLERIES: Ind-Ra Assigns LT Issuer Rating of 'IND B-'
BANSAL EARTHMOVERS: CRISIL Suspends D Rating on INR60MM Loan
BDH ENTERPRISES: CRISIL Suspends B+ Rating on INR150MM Cash Loan
BHOOMIKA INFRABUILDCON: CRISIL Suspends B Rating on INR135MM Loan
CHANDRAKONA COLD: CRISIL Suspends D Rating on INR59.4MM Cash Loan
CHHOTEY LAL: CRISIL Suspends B+ Rating on INR55MM Cash Loan
CRAVE CLOTHING: Ind-Ra Assigns 'IND B+' LT Issuer Rating
DEEPAK AGRAWAL: Ind-Ra Assigns 'IND BB-' LT Issuer Rating
DRS DILIP: Ind-Ra Assigns Long-Term Issuer Rating of 'IND B+'
EASTERN GOURMET: CRISIL Suspends B- Rating on INR59MM Term Loan
ELLEN TEXTILES: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating
G B CHOWDHURY: CRISIL Suspends B+ Rating on INR33.5MM Cash Loan
GODARA COTTON: CRISIL Suspends B Rating on INR40MM Cash Loan
GOYAL KNITWEARS: CRISIL Suspends B- Rating on INR148.5MM Loan
GREENLANDS (A. & M.): CRISIL Suspends B+ Rating on INR75MM Loan
GURU RICE: CRISIL Suspends B+ Rating on INR180MM Cash Loan
IMPERIAL FABRICS: CRISIL Suspends B+ Rating on INR125MM Loan
J. N. TAYAL: CRISIL Suspends B+ Rating on INR50MM Cash Loan
JAIPUR CENTRE: CRISIL Suspends D Rating on INR300MM LT Loan
JINDAL CHAWAL: CRISIL Suspends B+ Rating on INR40MM Cash Loan
KANDARP CONSTRUCTIONS: Ind-Ra Assigns 'IND D' LT Issuer Rating
KIWI ALLOYS: CRISIL Suspends B Rating on INR42.5MM Cash Loan
KRISHAN KUMAR: CRISIL Suspends B+ Rating on INR200MM Cash Loan
LADHAR PAPER: CRISIL Suspends B- Rating on INR90MM Cash Loan
LORD KRISHNA: CRISIL Suspends 'D' Rating on INR132.5MM Term Loan
MAA MANASHA: CRISIL Suspends 'D' Rating on INR465.5MM LT Loan
MATRIX GLOBAL: CRISIL Suspends D Rating on INR40MM Loan
MOUNT SHIVALIK: CRISIL Suspends B+ Rating on INR349.7MM Term Loan
MRG AUTO: CRISIL Suspends B Rating on INR230MM Cash Loan
MUKUND AGRO: CRISIL Suspends D Rating on INR50MM Cash Loan
NIRULAS CORNER: CRISIL Suspends B Rating on INR67.5MM Term Loan
NORTH EAST: CRISIL Suspends B Rating on INR50MM Cash Loan
PEE JAY: CRISIL Reaffirms 'B' Rating on INR85MM Cash Loan
PIONEER COMBINES: CRISIL Suspends D Rating on INR98MM Cash Loan
PROMPT PULP: CRISIL Ups Rating on INR52.5MM LT Loan to 'C'
R.K. MAHAJAN: CRISIL Suspends B+ Rating on INR23MM LT Loan
SHANKAR ENTERPRISES: Ind-Ra Upgrades LT Issuer Rating to 'IND BB'
STARWING PLASTIC: CRISIL Assigns 'B' Rating to INR40MM Cash Loan
TRANSTECH GREEN: CRISIL Suspends D Rating on INR382.4MM Loan
VIGHNESHWAR ISPAT: CRISIL Assigns B Rating to INR45MM Cash Loan
VIKAS CONSTRUCTION: CRISIL Suspends B+ Rating on INR86.7MM Loan
J A P A N
SHARP CORP: To Seek Additional Financial Aid From Creditor Banks
P H I L I P P I N E S
LBC DEVELOPMENT: Court Starts Garnishing LBC Group's Deposits
- - - - -
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A U S T R A L I A
=================
DICK SMITH: CEO Nick Abboud Resigns
-----------------------------------
Patrick Hatch and Jessica Gardner at The Sydney Morning Herald
reports that Nick Abboud stepped down from the helm of struggling
electrical retailer Dick Smith on Jan. 11 as the iconic chain
battles to stay alive.
According to SMH, Receiver Ferrier Hodgson said on Jan. 12 that it
had installed former Retail Fusion Brands chief executive Don
Grover as interim CEO.
SMH says Mr. Grover is a 30-year retail veteran. He formerly
oversaw footwear chains diana ferrari, Williams, Mathers and
Colorado as Fusion's CEO and managing director, and also headed up
bookseller Dymocks. He has also held a number of roles at
department store giant David Jones.
SMH notes that Mr. Abboud took the reins at Dick Smith when
private equity firm Anchorage Capital Partners bought the company
from Woolworths in November 2012 for AUD115 million.
He steered a massive turnaround at the company, which floated on
the stock exchange for AUD520 million just over a year later, the
report relates.
As well as resigning from his job, Mr Abboud -- Dick Smith's
second largest shareholder -- has lost a small fortune through the
company's collapse, according to SMH.
His 15.3 million shares were worth AUD34 million when the company
floated in 2013 but had fallen to AUD5.4 million when the company
entered administration last week, SMH notes.
According to the report, Ferrier Hodgson said on Jan. 12 it had
received more than 40 expressions of interest from potential
buyers for Dick Smith's 393 stores in Australia and New Zealand.
The company owes about AUD140 million to its banks and another
AUD250 million to unsecured creditors, SMH discloses.
Dick Smith's creditors called in the receiver last week after the
company ran out of money and was unable to secure a new loan to
buy stock. That followed two profit downgrades.
Administrator McGrath Nicol has called the first creditors'
meeting to be held in Sydney at midday on January 14, adds SMH.
About Dick Smith
Dick Smith Holdings Limited Ltd (ASX:DSH) --
http://dicksmithholdings.com.au/-- is a retailer of consumer
electronics products. The Company sells a range of products across
four categories: office, mobility, entertainment, and other
products and services. The Company has two segments: Dick Smith
Australia and Dick Smith New Zealand. The Company connects with
its customers through four physical store formats, catering for
three distinct consumer demographics: Dick Smith, MOVE, David
Jones Electronics Powered by Dick Smith and MOVE by Dick Smith
Sydney International Airport. The Company's store network consists
of approximately 393 stores across Australia and
New Zealand, which include approximately 351 Dick Smith stores,
approximately 10 MOVE stores, approximately four MOVE by Dick
Smith stores and approximately 28 David Jones Electronics Powered
by Dick Smith stores.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 6, 2016, Dick Smith Holdings Ltd was placed in receivership
on Jan. 5 following the appointment of Voluntary Administrators.
Ferrier Hodgson partners Mr James Stewart, Mr Jim Sarantinos and
Mr Ryan Eagle were appointed Receivers and Managers over DSH and a
number of associated entities. The appointment was made by a
syndicate of lenders which hold security over the group.
Receiver Mr James Stewart said it was too early to clearly
identify the primary causes of the company's current financial
position and the reasons for its decline other than saying the
business had become cash constrained in recent times. He said it
would be business as usual while the Receivers look at the
restructuring and realisation opportunities for the Group.
"Dick Smith is one of the best known brands associated with,
consumer electronics in Australia and New Zealand," Mr Stewart
said. "We are immediately calling for expressions of interest for
a sale of the business as a going concern."
Mr Stewart said that employees will continue to be paid by the
Receivers and that it is expected that Australian employee
entitlements will be covered under the Fair Entitlements Guarantee
(FEG) scheme if the business cannot be sold as a going concern.
Mr Stewart added that the New Zealand business was profitable and
expected it would be attractive to potential buyers. He also
stated that due to the financial circumstances of the Group,
unfortunately, outstanding gift vouchers cannot be honoured and
deposits cannot be refunded. Affected customers will become
unsecured creditors of the Group.
VENTIS HQ: Business Up For Sale Following Collapse
--------------------------------------------------
Eloise Keating at SmartCompany reports that former Smart50
finalist Ventis HQ is for sale, after the business was placed in
voluntary administration on Christmas Eve.
Ventis HQ was founded in 2010 and specialises in the sale,
manufacture and installation of environmentally friendly home
ventilation systems.
In 2014, the company was ranked 11th in SmartCompany's annual
Smart50 Awards, with revenue of AUD17.7 million in the 2013-14
financial year and an average growth rate over three years of
136.52%.
At the time, Ventis HQ operated a network of eight franchises,
four of which were company-owned, and employed approximately 80
staff.
Ventis HQ was placed in voluntary administration on December 24,
2015, with Bradd Morelli and Trent Devine of Jirsch Sutherland
were appointed to manage the administration, SmartCompany
discloses.
On the same day, Mr. Morelli was also appointed liquidator of
several related companies, including Ventis Illawarra, Ventis NB,
Ventis Newcastle, Ventis ES and Ventis Canberra.
Mr. Morelli confirmed to SmartCompany last week the liquidation of
these five companies is related to the voluntary administration of
Ventis HQ, saying his appointment was a group one.
However, Mr. Morelli said there are other entities in the group
that are not affected by the voluntary administration.
Mr. Morelli told SmartCompany last week the administrators were
"currently assessing the viability of continuing to trade" the
business.
While the causes of the company's voluntary administration were
still to be determined, the contributing factors are "likely to
include overhead costs and working capital issues as a result of
growth," adds SmartCompany.
=========
C H I N A
=========
CHINA AOYUAN: Fitch Affirms 'B+' Long-Term Foreign-Currency IDR
---------------------------------------------------------------
Fitch Ratings has affirmed China Aoyuan Property Group Limited's
(Aoyuan) Long-Term Foreign-Currency Issuer Default Rating (IDR) at
'B+'. The Outlook has been revised to Positive from Stable. Fitch
has also affirmed Aoyuan's senior unsecured rating and the ratings
on its outstanding notes at 'B+' with Recovery Rating of 'RR4'
The Outlook revision reflects the increase in Aoyuan's sales even
as it remained disciplined about land acquisition and maintained a
consistent financial profile. The ratings are supported by its
good execution track record but constrained by the quality of its
land bank, in which sites in lower tier cities form more than one
third of the total.
KEY RATING DRIVERS
Improving Operational Strength: Fitch estimates Aoyuan's
contracted sales will reach CNY20bn in 2017, based on its plans
for project launches. This makes Aoyuan's scale comparable with
'BB-' rated Chinese homebuilders. Fitch also estimates that the
share of contracted sales from Guangdong, Aoyuan's home market,
will continue decrease to less than 50% compared with 67% in 2014.
Aoyuan's contracted sales in 2015 increased 24% to CNY15.2bn,
which was almost triple the contracted sales in 2012. This is
mainly because of it consistently increased the number of
properties ready for sale. Its larger scale gives the company a
more stable sales base and greater financial flexibility in making
land acquisitions.
Disciplined Land Acquisition: Fitch expects Aoyuan to maintain its
current pace of land acquisitions, and the land premium for 2016-
2017 will not exceed CNY6bn a year, or less than a third of its
estimated full-year contracted sales. Aoyuan has purchased land at
a stable pace of CNY4bn-5bn a year in the last six years, even
though its contracted sales increased significantly. Meanwhile,
Aoyuan also reduced its exposure to commercial properties, which
are more cyclical than residential properties. Fitch estimates
commercial properties (including retail property) will account for
about 30% of total contracted sales in 2015-2016 compared with 50%
in 2014.
Stable Financial Profile: What sets Aoyuan apart from its fast-
growing peers rated in the 'B' category is that it has maintained
healthy leverage despite rapid expansion. Its leverage, as
measured by net debt/adjusted inventory, was 31.3% at end-June
2015, and its sales efficiency - measured by contracted
sales/total debt - remained above 1.0x in the past three years.
Fitch expects Aoyuan will continue to maintain its fast-churn
model and prudent land acquisition strategy; thus its financial
profile will remain healthy in the next 18 months, which will
support its credit profile.
Low-Tier City Exposure, Low ASP: Aoyuan's leadership in its core
markets in Guangdong Province has supported steady growth in
contracted sales, and provides a strong base for expansion into
other cities. However, the contracted average selling price (ASP)
is lower compared with peers' due to its higher exposure to lower-
tier cities. Fitch estimates that more than a third of the
company's total land bank is in Tier-3 cities. It is still not
clear if Aoyuan will be able to secure sites in higher tier
cities. However, the higher risks associated with exposure to
Tier-3 cities are partly mitigated by its good execution ability
and strategy of selecting sites in lower tier cities that can be
easily accessed by people working in the big cities.
Healthy Liquidity: Aoyuan's current liquidity position is healthy
and strong, which supports its planned expansion. Total cash was
CNY6.7bn at end-June 2015, with an undrawn credit facility of
CNY5.5bn, which exceeded its short term debt of CNY4.1bn. The
company has also established diversified funding channels,
including onshore and offshore capital markets, and successfully
launched onshore corporate bonds in 2015, which reduced its
funding cost.
KEY ASSUMPTIONS
Fitch's key assumptions within our rating case for the issuer
include:
-- Pace of land acquisitions to be stable in 2016-2017
-- Contracted sales estimated based on properties available for
sale in 2015, and the sell-through ratio, which Fitch
estimates will reach close to CNY20bn by 2017.
-- The company's average selling price for its contracted sales
will be slightly lower in 2016-2017 due to product mix
-- Company will maintain its fast churn and high cash-flow
turnover business model
RATING SENSITIVITIES
Positive: Future developments that may individually or
collectively, lead to positive rating action include:
-- Continued expansion with contracted sales rising to more than
CNY18bn a year
-- EBITDA above 25% on a sustained basis
-- Maintaining the ratio of net debt to adjusted inventory below
35% on a sustained basis
-- Maintaining the ratio of contracted sales to gross debt above
1.0x on a sustained basis;
-- No substantial increase of contracted sales contribution from
retail properties.
Negative: Future developments that may individually or
collectively, lead to negative rating action include:
-- Failing to maintain the positive guidelines will lead to the
Outlook reverting to Stable
EVERGRANDE REAL: Fitch Rates Proposed USD Notes 'BB-(EXP)'
----------------------------------------------------------
Fitch Ratings has assigned Evergrande Real Estate Group Limited's
(Evergrande; BB-/Negative) proposed US dollar senior notes a 'BB-
(EXP)' expected rating.
The notes are rated at the same level as Evergrande's senior
unsecured rating because they constitute direct and senior
unsecured obligations of the company. The final rating is subject
to the receipt of final documentation conforming to information
already received.
KEY RATING DRIVERS
Leverage Stabilised; Remains High: Evergrande's ratings remain
constrained by its high leverage, although this has stopped rising
rapidly from 0.28x in 2012 and 0.42x in 2013, when the company was
expanding aggressively into higher-tier cities. Fitch expects
Evergrande's leverage will not fall further over the next 12
months as the leverage reduction from 0.57x in 1H14 to 0.51x in
1H15 was partly supported by the large 54% increase in payables,
which is hardly sustainable. Debt increased by 21% and adjusted
inventory rose by 31% over the same period.
Improved Geographical Diversification: Evergrande's business
profile has been strengthened following its expansion into Tier 1
and Tier 2 cities. Evergrande's contracted sales rose 24% to
CNY131bn in 2014 and further increased 53% to CNY201bn in 2015,
surpassing its CNY180bn adjusted contracted sales target for 2015.
Tier 1 and Tier 2 cities accounted for 63% of its contracted sales
in 1H15 compared with 55% in 1H14 and 44% in 2013, indicating that
its diversification into higher-tier cities has been well
implemented.
High SG&A Expenses: Evergrande's profitability is dragged down by
its high sales, general and administrative (SG&A) expenses that
amounted to 10% of contracted sales in 2014 and 9.4% in 1H15.
This, together with interest payments that amounted to 12% of its
contracted sales value in 2014, means that very little of the 30%
gross margin of its housing sales is left to support business
expansion. This has partly been mitigated by the increased use of
lower-cost onshore borrowings to help Evergrande trim its
borrowing costs. This change reduced 1H15 interest expenses to 9%
of contracted sales.
Active Share Capital Management: Evergrande repurchased shares
totalling CNY5.47bn in July 2015, more than the CNY4.6bn it raised
in June 2015 from a new share issuance. Although shareholder value
has been enhanced because the price of the repurchased shares was
15% less than the price of the shares issued, this cash outflow,
together with the CNY6.7bn dividend payable at end-1H15 (which we
have deducted from cash in calculating net debt) will put pressure
on Evergrande's leverage. The possibility of further share
repurchases to enhance shareholder value may be limited because of
the falling free-float level.
KEY ASSUMPTIONS
Fitch's key assumptions within our rating case for the issuer
include:
-- Assume land replenishment rate of 1.1x contracted sales gross
floor area
-- Contracted sales growth of 5% per annum; land cost and
average selling price growth of 3% per annum (to reflect
continued increase in exposure to higher-tier cities)
-- SG&A expenses to stay at 10% of contracted sales but interest
cost to reduce from utilising more onshore borrowings
-- Dividend payout ratio of 30% on core earnings
RATING SENSITIVITIES
Positive: As the current rating is on Negative Outlook, Fitch does
not anticipate developments with a material likelihood,
individually or collectively, of leading to a rating upgrade.
However, if Evergrande maintains its 1H15 financial profile, where
its net debt/adjusted inventory was at 0.51x and contracted
sales/gross debt at 0.73x for the next six months, the Outlook may
be revised to Stable
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- Net debt/adjusted inventory sustained above 0.6x
-- Contracted sales/gross debt falls below 0.6x on a sustained
basis
-- Tightened liquidity position due to weaker access to
financing channels
EVERGRANDE REAL: Moody's Rates Proposed USD Sr. Unsec. Notes B3
---------------------------------------------------------------
Moody's Investors Service has assigned a B3 rating to the USD
senior unsecured notes proposed by Evergrande Real Estate Group
Limited.
The rating outlook is negative.
The proceeds from the issuance will be used for refinancing the
company's existing debt and general corporate purposes.
RATINGS RATIONALE
"The rating of the proposed USD notes is notched down to B3 --
from its corporate family rating of B2 -- due to subordination
risk from the company's secured and subsidiary debt," says Franco
Leung, a Moody's Vice President and Senior Analyst.
The B2 corporate family rating reflects Evergrande's strong market
position as one of the top five property developers in China in
terms of contracted sales and the size of its land bank.
In addition, the rating reflects its national coverage in China,
as well as its broad geographic coverage, strong sales execution,
low-cost land bank and focus on mass-market residential
properties.
On the other hand, the rating is constrained by the high business
and financial risks associated with Evergrande's strategy to
pursue rapid debt-funded growth. Its debt leverage and financial
metrics are weak for its B2 corporate family rating.
The negative outlook reflects Evergrande's high levels of
business, financial and liquidity risks, given its aggressive
debt-funded acquisitions.
Downward rating pressure could emerge if: (1) Moody's expects the
company's liquidity position to weaken further due to a
deterioration in contracted sales, and/or high levels of payments
on debt and land, or high levels of deferred acquisition payables;
(2) the company raises more debt, and which results in
revenue/adjusted debt (including perpetual securities) falling
below 40%, or (3) the company takes on more debt-funded
acquisitions.
Upward rating pressure is unlikely, given the negative outlook.
However, the rating could return to stable if the company (1)
reduces its debt leverage, such that revenue/adjusted debt rises
above 60% and EBIT/interest rises to 2x or higher; and (2)
improves its liquidity position.
The principal methodology used in this rating was Homebuilding And
Property Development Industry published in April 2015.
Evergrande Real Estate Group Limited is one of the major
residential developers in China. It has a standardized operating
model.
Founded in 1996 in Guangzhou, the company has rapidly expanded its
business across the country over the past few years. At June 30,
2015, its land bank totaled 144 million square meters in gross
floor area across 154 Chinese cities.
EVERGRANDE REAL: Moody's Lowers CFR to B2; Outlook Negative
-----------------------------------------------------------
Moody's Investors Service has downgraded Evergrande Real Estate
Group Limited's corporate family rating to B2 from B1 and its
senior unsecured debt rating to B3 from B2.
The outlook for the ratings is negative.
RATINGS RATIONALE
"The downgrade reflects Evergrande's increased level of financial
risk, which is in turn because of its highly acquisitive appetite
and debt-funded strategy for acquisitions," says Franco Leung, a
Moody's Vice President and Senior Analyst.
In 2H 2015, Evergrande announced acquisitions including but not
limited to (1) various Chinese property-development project
companies from New World Development (China) Limited (unrated) and
Chow Tai Fook Enterprises Ltd (unrated); (2) an investment
property in Hong Kong; and (3) a 50% equity stake in a life
insurance company.
These acquisitions -- which totaled around RMB59.5 billion in cost
-- will be paid for by instalments over the next 2-6 years,
starting from the dates of each transaction's announcement.
In 2016, Evergrande will be required to pay around RMB30 billion.
Moody's considers such acquisitions as highly aggressive, and they
also raise business risk because the company is expanding when
China's property market remains challenging due to the oversupply
of inventory in the lower tier cities.
Evergrande also still has land banks in these lower tier cities.
Moody's expects Evergrande's debt leverage -- measured by
revenue/adjusted debt -- to remain weak in the 47%-53% range over
the next 12-18 months, versus around 53% at end-June 2015.
Such a level is weak for its B2 corporate family rating.
The company's high level of debt -- with the resultant heavy
annual repayments -- will also strain cash flow over the next 2
years, in turn weakening its liquidity position.
"The downgrade also reflects the aggressive buy-back options
offered in its presales contracts, a situation which adds
uncertainty to its cash flow," says Leung, who is also the Lead
Analyst for Evergrande.
Evergrande has offered buyers an option to sell back their
purchased properties, and Moody's expects cash outflows will
consequently increase when the property market weakens.
The B2 corporate family rating reflects Evergrande's strong market
position as one of the top five property developers in China in
terms of contracted sales and the size of its land bank.
In addition, the rating reflects its national coverage in China,
as well as its broad geographic coverage, strong sales execution,
low-cost land bank and focus on mass-market residential
properties.
On the other hand, the rating is constrained by the high business
and financial risks associated with Evergrande's strategy to
pursue rapid debt-funded growth. Its debt leverage and financial
metrics are weak for its B2 corporate family rating.
Evergrande's liquidity position is also weak because it has to
fund high levels of construction costs and deferred acquisition
payments -- in addition to its debt repayments -- to support its
large scale of development.
Such cash outflows will consume its cash-on-hand and presales
proceeds.
Moody's notes that the company raised contracted sales and
borrowings in 2015, resulting in a high level of cash at end-
December 2015, and which totaled RMB158 billion on an unaudited
basis.
The negative outlook reflects Evergrande's high levels of
business, financial and liquidity risks, given its aggressive
debt-funded acquisitions.
Downward rating pressure could emerge if: (1) Moody's expects the
company's liquidity position to weaken further due to a
deterioration in contracted sales, and/or high levels of payments
on debt and land, or high levels of deferred acquisition payables;
(2) the company raises more debt, and which results in
revenue/adjusted debt (including perpetual securities) falling
below 40%, or (3) the company takes on more debt-funded
acquisitions.
Upward rating pressure is unlikely, given the negative outlook.
However, the rating could return to stable if the company (1)
reduces its debt leverage, such that revenue/adjusted debt rises
above 60% and EBIT/interest rises to 2x or higher; and (2)
improves its liquidity position.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in April 2015.
Evergrande Real Estate Group Limited is one of the major
residential developers in China. It has a standardized operating
model.
Founded in 1996 in Guangzhou, the company has rapidly expanded its
business across the country over the past few years. At
June 30, 2015, its land bank totaled 144 million square meters in
gross floor area across 154 Chinese cities.
EVERGRANDE REAL: S&P Puts 'B' Rating to Proposed USD Sr. Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
issue rating and 'cnB+' long-term Greater China regional scale
rating to a proposed issue of U.S.-dollar-denominated senior
unsecured notes by Evergrande Real Estate Group Ltd.
(B+/Negative/--; cnBB-/--). The rating is subject to S&P's review
of the final issuance documentation.
The issue rating is one notch below the long-term corporate credit
rating on Evergrande to reflect the structural subordination.
Evergrande plans to use the proceeds for refinancing its existing
debt and for general working capital purposes.
The rating on Evergrande reflects the company's weak financial
position due to aggressive debt-funded expansion, its limited
record of prudent financial management, and execution risk in new
industries. Evergrande's strong sales execution, competitively
priced projects, good cost control, and improved onshore credit
conditions temper these weaknesses. The company's sales
performance was strong in 2015. Its contracted sales for the past
year at Chinese renminbi (RMB) 201 billion exceeded its full-year
sales target of RMB180 billion. The sales growth was stronger
than that of its major peers.
The negative outlook reflects S&P's expectation that Evergrande's
leverage and EBITDA interest coverage will remain weak over the
next 12 months because of its aggressive debt-funded growth. S&P
also expects the company's liquidity to remain tight despite some
improvement. S&P estimates that Evergrande's debt-to-EBITDA ratio
will hover at 9x-10x for 2015 and 2016, from 8.9x in 2014, due to
its high capital requirements in construction and land or project
acquisitions.
FUFENG GROUP: S&P Raises CCR to 'BB+'; Outlook Stable
-----------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Fufeng Group Ltd. to 'BB+' from 'BB'. The
outlook is stable. S&P also raised its Greater China regional
scale credit rating on the China-based manufacturer of corn-based
biochemical products to 'cnBBB+' from 'cnBBB'.
The company has early redeemed all its outstanding senior
unsecured notes in September 2015. S&P is therefore withdrawing
its 'BB' issue rating and 'cnBBB' Greater China regional scale
rating on the company's notes.
"The upgrade reflects our expectation that Fufeng's financial risk
profile will strengthen over the next 12-24 months as low funding
costs in China improve the company's fixed charge protection,"
said Standard & Poor's credit analyst Sophie Lin. "We anticipate
steady profitability in the monosodium glutamate (MSG) segment and
lower interest expenses and capital spending to outweigh the
negative impact of sluggish xanthan gum (XG) prices. We expect
Fufeng to improve its EBITDA interest coverage to above 6x while
maintaining its debt-to-EBITDA ratio at below 3x over the next 12
months."
S&P expects the profit margin of Fufeng's MSG segment to stay
relatively stable on the completion of industry consolidation.
The top two MSG manufacturers in China--Fufeng and Meihua Group--
account for about 80% of market sales, while most smaller players
run at thin or negative margins. S&P estimates the gross margin
of Fufeng's MSG segment will stabilize at 14%-15% in 2015-2017, as
a potential decline in selling prices offsets the benefits of
lower corn prices. Corn is a major raw material for producing
MSG, representing about 60% of total production cost.
"We believe Fufeng can weather further deterioration of the XG
business, supported by stable operating performance in MSG and
lower capital spending requirements. We expect a gradual recovery
of selling prices and profit margin in 2017, with the exit of
smaller and loss-making players," Ms. Lin said.
XG accounted for about 10% of Fufeng's total revenue and about 20%
of its gross profit in the first half of 2015.
More disciplined capital expenditure over the next two to three
years underpins S&P's upgrade of Fufeng. S&P expects limited
capacity expansion for the MSG business given the matured and
consolidated market. In addition, Fufeng may also cut its capital
expenditure on XG in response to a weak price trend and slower
demand growth, in S&P's view.
Fufeng's interest expenses should decrease materially after the
company refinanced its senior unsecured notes with a coupon rate
of 7.625% by issuing domestic corporate bonds at 3.98% in the
second half of 2015. This also supports S&P's anticipation of the
company's EBITDA interest coverage exceeding 6x over the next 12-
24 months.
"We expect Fufeng to maintain its strong market position and cost
leadership in the MSG and XG markets in the next two to three
years. However, the company's lack of product differentiation,
less diversified revenue generation and exposure to raw material
price fluctuation will continue to weigh on its competitive
position, in our view," Ms. Lin said.
The stable outlook on Fufeng reflects S&P's expectation that the
company will maintain its leading market position in the MSG and
XG markets over the next 12 months. S&P also expects Fufeng to
maintain its debt-to-EBITDA ratio at below 3x, supported by steady
profitability of its MSG segment and more disciplined capital
spending, despite a substantial margin erosion of the XG business.
S&P could lower the rating if Fufeng's debt-to-EBTIDA ratio
exceeds 3x on a sustained basis, or if its EBITDA margin
deteriorates to below 10%. This could happen if the company
undertakes aggressive expansion, or if market competition is more
intense than we expect due to an increase in supply or weakening
in demand.
S&P may upgrade Fufeng if its operating performance continues to
improve and the company generates positive free cash flow, such
that its debt-to-EBITDA ratio falls below 2.0x.
GEELY AUTOMOBILE: 2015 Profit Supports Ba2 CFR, Moody's Says
------------------------------------------------------------
Moody's Investors Service says Geely Automobile Holdings Limited's
positive profit alert for its 2015 consolidated net profit
supports its Ba2 corporate family and senior unsecured bond
ratings.
The ratings outlook remains stable.
"Geely's expected improved results in 2015 from 2014 are
consistent with Moody's expectations," says Gerwin Ho, a Moody's
Vice President and Senior Analyst.
On Jan. 6, Geely announced that it expects its 2015 consolidated
net profit to rise 50%-60% year-on-year to RMB2.1-2.3 billion from
RMB1.4 billion in 2014.
The expected profit includes (1) an unrealized foreign exchange
loss recorded by the company's subsidiary in Russia (Ba1 stable)
as a result of the depreciation of the Russian Rouble against the
USD and RMB; and (2) an unrealized currency translation loss
recorded for the principal amount of its USD300 million senior
notes as a result of the depreciation of the RMB against USD.
Excluding the foreign-exchange-related losses, Geely's expected
solid net profit in 2015 was driven mainly by increased unit sales
volumes.
The company's unit sales grew 22% year-on-year to 509,863 in 2015.
Its domestic sales grew 35% year-on-year to 484,129 units,
offsetting a 57% year-on-year decline in its export sales to
25,734 units.
Its sales growth in 2015 reflects (1) a recovery from the 24%
year-on-year unit sales decline in 2014, driven by a sharp decline
in export sales and the restructuring of the company's dealership
network in China (Aa3 stable); and (2) a positive market response
to its new models.
Geely also benefitted from stronger year-on-year auto market unit
sales growth since October 2015 as a result of China's cut in the
vehicle-purchase tax for passenger vehicles with engine sizes 1.6L
and below, which will remain in place until December 2016.
Moody's expects Geely will record about 10% year-on-year sales
volume growth in 2016. The projected sales growth will be driven
by China's growing auto sales and the company's new model
launches.
Although Moody's expects Geely's debt leverage to rise in the next
12-18 months -- driven by its acquisition of the Volvo Car
Corporation (unrated) co-developed Compact Modular Architecture
(CMA) platform from its parent Zhejiang Geely Holding Group
Company Limited (Zhejiang Geely, unrated) in 2016 -- it is
expected to remain low, as measured by debt/EBITDA of around 2.0x
to 2.5x and debt/book capitalization of 20% to 25%. These levels
support its Ba rating.
Geely has solid liquidity. Geely's reported a net cash position,
excluding assets and liabilities held for sale, of RMB5.8 billion
at 1H2015.
Moody's expects Geely's liquidity to decline over the next 12-18
months because it will acquire the CMA platform from Zhejiang
Geely in 2016.
Despite such cash spending, its liquidity position is expected to
remain solid in the next 12 to 18 months, with cash and marketable
securities to debt at 100%-150%. This level supports its Ba
rating.
The principal methodology used in this rating was Global
Automobile Manufacturer Industry published in June 2011.
Geely Automobile Holdings Limited is one of the largest privately
owned, local brand automakers in China. Geely develops,
manufactures and sells passenger vehicles that are sold in China
and globally. Its chairman and founder Mr. Li Shufu and his
family held a 42.8% stake in the company at end-June 2015. The
company is incorporated in the Cayman Islands and listed on the
Hong Kong Stock Exchange.
This publication does not announce a credit rating action.
================
H O N G K O N G
================
NOBLE GROUP: Chairman Elman Increases Holding as Shares Sink
------------------------------------------------------------
Jasmine Ng at Bloomberg News reports that Noble Group Ltd.
Chairman Richard Elman stepped up his defense of the commodity
trader that he founded by boosting his stake after the stock sank
to the lowest since 2008, the company's credit rating was cut to
junk and analysts scaled back price targets.
Bloomberg relates that Mr. Elman bought 10 million shares on Jan.
8 for SGD3.19 million ($2.2 million), raising his holding to 22.13
percent, according to a statement to the Singapore exchange on
Jan. 11. After news of the purchase, made at an average price of
31.85 Singapore cents, the stock fell as much as 8.8 percent to 31
cents amid a region-wide drop in raw-material shares, Bloomberg
discloses.
According to Bloomberg, Noble Group, which lost about two-thirds
of its market value last year amid attacks on its accounts, has
extended losses in 2016 after Standard & Poor's joined Moody's
Investors Service in cutting its rating below investment grade.
Over the past year, the Hong Kong-based company has sought to
reassure investors by paring debt, selling assets and boosting
transparency, with Elman pledging to shareholders last June to
"right the damage," Bloomberg relays. That defense has been
undermined as China's slowdown hurts commodity demand and prices,
prompting investors to shun raw-material companies.
"Richard Elman is trying to say that he thinks this current bout
of selloff we're seeing is overdone," Bloomberg quotes Angus
Nicholson, an analyst at IG Markets Ltd. in Melbourne, as saying
by e-mail. "Unfortunately, his actions are unlikely to really
alter investor perceptions on the company. China demand fears are
dominating trade in commodities-related companies," said
Nicholson, citing losses also seen on Jan. 11 in Rio Tinto Group
and BHP Billiton Ltd, Bloomberg discloses.
Mr. Elman, a former scrap-yard worker who dropped out of school at
15, built Noble Group into Asia's largest commodity trading
company by revenue, the report notes. He worked at another trader,
Phibro, before setting up his own firm with $100,000 in savings in
Hong Kong. He remains Noble Group's biggest owner, ahead of
China's sovereign wealth fund, according to data tracked by
Bloomberg.
According to Bloomberg, Mr. Elman has bought stock at least eight
times over the past year, raising his holdings as the company
parried criticism of its accounts from a group called Iceberg
Research, whose members operate anonymously, and attacks from
short-seller Muddy Waters LLC. Since March, Mr. Elman bought at
least 40.8 million shares, according to a tally by Bloomberg based
on exchange filings.
Noble Group executives led by Chief Executive Officer Yusuf
Alireza have made efforts to buoy the company's creditworthiness
as its shares slumped, the report says. They agreed in December to
sell the remaining 49 percent of its agricultural unit to China's
Cofco Corp. for at least $750 million to reduce debt. Cofco
already owned the other 51 percent, according to Bloomberg.
Even after the deal was announced, S&P said that liquidity, or
short-term financing, was no longer strong enough to sustain Noble
Group's investment-grade rating. The outlook for the commodity
trader's "capital raising could be complicated by depressed" raw-
materials markets, it said.
Noble Group said last week that an increase in calls for
collateral, or demands it set aside more cash to guarantee trades,
after the downgrades was still below the $100 million to $200
million range that CEO Alireza had estimated in comments to
analysts last year, Bloomberg recalls. The company will receive
about $200 million after selling receivables to shore up its
balance sheet, Bloomberg reports citing people with knowledge of
the matter.
About Noble Group
Noble Group Limited (SGX:N21) -- http://www.thisisnoble.com/-- is
a Hong Kong-based company engaged in supply of agricultural,
industrial and energy products. The Company supplies agricultural
and energy products, metals, minerals and ores .Agriculture
products include grains, oilseeds and sugar to palm oil, coffee,
and cocoa. Energy business includes coal, gas and liquid energy
products. In metals, minerals and ores (MMO), it supplies iron
ore, aluminum, special ores and alloys. The Company operates
nearly in 140 locations. It supplies growth demand markets in Asia
and Middle East. Alcoa World Alumina and Chemicals is the
subsidiary of this company.
As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 11, 2016, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on Hong Kong-based commodities
trading company Noble Group Ltd. to 'BB+' from 'BBB-'. At the
same time, S&P lowered the long-term issue rating on Noble's
outstanding senior unsecured notes to 'BB' from 'BBB-'.
Standard & Poor's also lowered its long-term Greater China
regional scale rating on Noble to 'cnBBB' from 'cnBBB+' and on the
company's notes to 'cnBB+' from 'cnBBB+'. The ratings remain on
CreditWatch with negative implications.
The TCR-AP on Jan. 4, 2016, reported that Moody's Investors
Service has downgraded Noble Group Limited's senior unsecured bond
ratings to Ba1 from Baa3 and the provisional rating on its senior
unsecured MTN program to (P)Ba1 from (P)Baa3.
At the same time, Moody's has assigned a Ba1 corporate family
rating to Noble and has therefore withdrawn the company's issuer
rating. The rating actions conclude Moody's review for downgrade
initiated on Nov. 16, 2015. The outlook for the ratings is
negative.
PACIFIC ANDES: Defaults on SGD200 Million 2017 Notes
----------------------------------------------------
Christopher Langner, David Yong and Lianting Tu at Bloomberg News
report that Singapore's bond market may see its second default in
as many months after creditors said Pacific Andes Resources
Development Ltd. hasn't honored some obligations on SGD200 million
($139 million) of notes.
Bloomberg relates that the Hong Kong-based firm said in a
Singapore exchange filing Jan. 10, it received a letter from bond
trustee HSBC Holdings Plc alleging breaches on the 2017
securities. Investors can request full immediate repayment if the
company's shares are suspended, according to the bond's terms.
Pacific Andes has halted trading in Singapore since Nov. 25,
Bloomberg notes.
According to Bloomberg, the HSBC letter adds a new twist to
skirmishes at the troubled fishery group amid court battles and
regulatory probes in Singapore and Hong Kong into its business
transactions. In November, Singapore's bond market had its first
default since 2009 when Indonesian phone retailer PT Trikomsel Oke
missed coupon payments on its debt, Bloomberg notes.
"This situation is opening a can of worms in Singapore," Bloomberg
quotes Raymond Chia, head of credit research for Asia ex-Japan in
Singapore at Schroder Investment Management, as saying. "Very few
local corporate bonds are rated, and a number of issuers have weak
credit profiles or challenging business dynamics, and that's
starting to show."
Bloomberg notes that Singapore investors have turned to high
yielding bonds in the past seven years after interest rates hit a
record low in the aftermath of the global financial crisis. The
number of notes with coupons of more than 6 percent, a level
associated with speculative grade in the local market, jumped from
one in 2010 to 24 in 2014 before falling to 13 last year, the
report discloses.
Notes issued by Pacific Andes and its unit China Fishery Group
Ltd. are mired in distressed levels. The 8.5 percent bonds due
July 2017 were last quoted at 20.5 cents on the dollar on
Jan. 11, according to prices compiled by Bloomberg. The securities
fell 34 cents in December, capping a 73-cent plunge for the year.
Hong Kong-listed Pacific Andes International Holdings Ltd. owns
about 66 percent of Pacific Andes Resources Development, which in
turn controls 69.7 percent of China Fishery Group, Bloomberg
discloses citing company filings.
Both China Fishery and Pacific Andes have to make semi-annual
coupon payments on Jan. 30, Bloomberg notes.
Bloomberg says the Pacific Andes group is seeking to sell its Peru
business while it fights some creditors to dismiss winding-up
petitions and provisional liquidators in Hong Kong and Cayman
Islands.
Geoffrey Walsh, a Hong Kong-based spokesman for Pacific Andes,
declined to comment on the HSBC notice, says Bloomberg. The
company is seeking legal advice on the matter and is "in an active
dialogue with a substantial holder of the bonds with a view to
establishing a transparent process for discussions" with other
debt holders, it said in the filing, Bloomberg relays.
"There hadn't been a default in the Singapore dollar market in so
many years that investors weren't vigilant enough and a certain
complacency had set in," Bloomberg quotes Todd Schubert, the head
of fixed-income research at Bank of Singapore, Oversea Chinese
Banking Corp.'s private banking unit, as saying. "Over the years
as the number of outside, non-government related issuers
increased, so did the potential for a default."
Pacific Andes Resources Development Limited (SGX:P11), a
Hong Kong-based company, is engaged in sourcing, processing,
distribution and sales of seafood products. The Company is focused
on the development, marketing and distribution of fish, frozen
fish and fish products. The Company provides a range of at-sea
transportation and logistical services to fishing companies. The
Company operates fishing fleets and fishmeal processing facilities
in fishing grounds. The Company's supply chain sources frozen
seafood products from oceans across the world.
=========
I N D I A
=========
AATREYEE NIRMAN: CRISIL Suspends B+ Rating on INR80MM Cash Loan
---------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Aatreyee
Nirman Pvt Ltd (ANPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B+/Stable
The suspension of rating is on account of non-cooperation by ANPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, ANPL is yet to
provide adequate information to enable CRISIL to assess ANPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
ANPL, a real estate developer, was incorporated in 2007 and
promoted by Kolkata (West Bengal)-based Mr. Indrajit Roy and Mrs.
Jayati Roy. The company is primarily based in Kolkata and is
involved in construction of budget and semi-premium residential
projects.
AKAR TOOLS: Ind-Ra Assigns 'IND BB+' Long-Term Issuer Rating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Akar Tools
Limited (ATL) a Long-Term Issuer Rating of 'IND BB+'. The Outlook
is Stable.
KEY RATING DRIVERS
The ratings reflect ATL's moderate credit metrics, volatile
profitability and moderate scale of operations. Net leverage
(total Ind-Ra adjusted debt net of cash/EBITDA) was 3.8x in FY15
(FY14: 4.1x) and EBITDA interest cover was 1.6x (1.7x). ATL
reported revenue of INR1.6bn in FY15 (FY14: INR1.4bn) with
operating EBITDA margins in the range of 5.6%-7.8% over FY12-FY15
due to raw material prices movements.
However, ATL's liquidity position is comfortable with the fund-
based facility being utilised at an average of 90.3% over the 12
months ended November 2015.
The ratings are also supported by the promoter's over three
decades of experience in the automobile industry.
RATING SENSITIVITIES
Positive: The stabilisation of profitability and a sustained
improvement in the credit metrics will be positive for the
ratings.
Negative: Continued volatility in the operating profitability or
deterioration in the credit metrics could be negative for the
ratings.
COMPANY PROFILE
Incorporated in 1989, ATL situated in Waluj near Aurangabad,
Maharashtra, and manufactures and sells hand tools, automobile
forgings, leaf springs and parabolic springs.
ATL's ratings are as follows:
-- Long-Term Issuer Rating: assigned 'IND BB+'; Outlook Stable
-- INR45 million long-term loans: assigned 'IND BB+'/Stable
-- INR343 million fund-based facilities: assigned 'IND
BB+'/Stable/'IND A4+'
-- INR60 million non-fund-based facilities: assigned 'IND A4+'
ANUPAM SYNTHETICS: CRISIL Suspends B+ Rating on INR61MM LT Loan
---------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Anupam
Synthetics Private Limited (Anupam).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 55 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 61 CRISIL B+/Stable
Term Loan 4 CRISIL B+/Stable
The suspension of rating is on account of non-cooperation by
Anupam with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Anupam is yet to
provide adequate information to enable CRISIL to assess Anupam's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
Anupam, incorporated in 1985, operates in three different lines of
business: selling cotton and polyester fabrics for suiting and
shirting; selling fabric for furniture products; and cutting,
sewing, and packaging on a job-work basis for other companies, in
its garmenting unit. The company is promoted by Mr. Gulshan Kumar
Luthra along with his sons, Mr. Kshitij Luthra and Mr. Shrey
Luthra.
AURO ISPAT: CRISIL Suspends D Rating on INR70MM Cash Loan
---------------------------------------------------------
CRISIL has suspended its rating on the bank facility of Auro Ispat
India Private Limited (GRPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 70 CRISIL D
The suspension of rating is on account of non-cooperation by GRPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, GRPL is yet to
provide adequate information to enable CRISIL to assess GRPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
Incorporated in 2004, AIPL was taken over by the current promoters
Mr. Kaushik Mohanty, Mr. Abinash Mohanty, Mr. B Nayak and Mr.
Anshuman Samantray in January 2012. AIPL manufactures ingots at
its facility in Khuntuni (Odisha).
B.V.S DISTILLERIES: Ind-Ra Assigns LT Issuer Rating of 'IND B-'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned B.V.S
Distilleries Private Limited a Long-Term Issuer Rating of 'IND B-
'. The Outlook is Stable. The agency has also assigned BVSDPL's
INR290m term loan an 'IND B-' rating with Stable Outlook.
KEY RATING DRIVERS
The ratings reflect BVSDPL's lack of operational track record as
the company is in the construction stage and commercial operations
are likely to commence in 2HFY16. The company has not yet started
utilising its fund-based working capital facilities.
While the interest is being serviced on time, the principal
repayments for the term loans availed will start from April 2016.
RATING SENSITIVITIES
The stabilisation of operations leading to a substantial
improvement in revenue and profitability from Ind-Ra's projections
will lead to a positive rating action.
COMPANY PROFILE
Incorporated in 2011, BVSDPL manufactures Indian made foreign
liquors.
BANSAL EARTHMOVERS: CRISIL Suspends D Rating on INR60MM Loan
------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Bansal
Earthmovers Pvt Ltd (BEPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL D
Proposed Long Term
Bank Loan Facility 5.4 CRISIL D
Term Loan 4.3 CRISIL D
The suspension of rating is on account of non-cooperation by BEPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BEPL is yet to
provide adequate information to enable CRISIL to assess BEPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
BEPL, incorporated in 2009 in Siliguri (West Bengal), is an
authorised dealer for JCB India Ltd for north-east West Bengal and
Sikkim. The company's overall operations are managed by Mr. Sanjay
Bansal.
BDH ENTERPRISES: CRISIL Suspends B+ Rating on INR150MM Cash Loan
----------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
BDH Enterprises India (BDH).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 150 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 50 CRISIL B+/Stable
The suspension of rating is on account of non-cooperation by BDH
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BDH is yet to
provide adequate information to enable CRISIL to assess BDH's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
BDH was established in 1994 as a partnership firm by Mr. Sushil
Goel and his brother; it was reconstituted as a proprietorship
firm in 2004 post separation of the brothers. The firm is an
authorised dealer of Oswal Woollen Mills Ltd's yarn. It also
trades in knitted fabric and yarn procured from other spinning
mills in Ludhiana (Punjab). The firm is currently owned and
managed by Mr. Sushil Goel and is headquartered in Ludhiana.
BHOOMIKA INFRABUILDCON: CRISIL Suspends B Rating on INR135MM Loan
-----------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Bhoomika
Infrabuildcon Private Limited (BIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 5 CRISIL B/Stable
Term Loan 135 CRISIL B/Stable
The suspension of rating is on account of non-cooperation by BIPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, BIPL is yet to
provide adequate information to enable CRISIL to assess BIPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
BIPL was established in 2012 by Mr. Raj Kumar Narang and his
family members. The company is engaged in real estate development
and is developing a commercial project with saleable area of
100,000 square feet spread over 2041 square metres in Noida (Uttar
Pradesh).
CHANDRAKONA COLD: CRISIL Suspends D Rating on INR59.4MM Cash Loan
-----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Chandrakona Cold Storage Pvt Ltd (CCSPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.9 CRISIL D
Cash Credit 59.4 CRISIL D
Proposed Long Term
Bank Loan Facility 9.9 CRISIL D
Working Capital
Facility 12.4 CRISIL D
The suspension of ratings is on account of non-cooperation by
CCSPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, CCSPL is yet to
provide adequate information to enable CRISIL to assess CCSPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
CCSPL was established in 1982 by Mr. Jayanta Kumar Roy and Mr.
Kanailal Roy. The company has set up a cold storage unit (with
four chambers) in Paschim Mednipur (West Bengal).
CHHOTEY LAL: CRISIL Suspends B+ Rating on INR55MM Cash Loan
-----------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Chhotey
Lal and Sons Jewellers (CLSJ).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 55 CRISIL B+/Stable
The suspension of rating is on account of non-cooperation by CLSJ
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, CLSJ is yet to
provide adequate information to enable CRISIL to assess CLSJ's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
CLSJ was established as a proprietorship in Delhi in 1973. The
firm retails gold and diamond jewellery from its showroom in Karol
Bagh (Delhi). The promoter, Mr. Raj Khandelwal, manages CLSJ's
daily operations.
CRAVE CLOTHING: Ind-Ra Assigns 'IND B+' LT Issuer Rating
--------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Crave Clothing
Company Private Limited (CCCPL) a Long-Term Issuer Rating of 'IND
B+'. The Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect CCCPL's small scale of operations and weak
credit metrics. In FY15, revenue was INR377m (FY14: INR418m), net
leverage (net debt/EBITDA) was 4.8x (5.6x) and interest coverage
was 1.9x (1.7x). The slight improvement in credit metrics in FY15
was primarily due to improved profitability (13.7%, up 380bp yoy)
on restoration of operations post a fire incident in the unit in
October 2013. Though the company compensated its sales in FY14 by
outsourcing orders on job work, its profitability dipped.
The ratings factor in the working capital intensive nature of
CCCPL's business with a net cash conversion cycle of 207 days
(FY14: 91 days). Liquidity is moderate with the average working
capital use of 96.8% during the 12 months ended October 2015.
The ratings are supported by the decade-long experience of CCCPL's
founders in garment manufacturing.
RATING SENSITIVITIES
Positive: A positive rating action could result from a substantial
increase in the revenue and operating profitability leading to an
improvement in the credit metrics.
Negative: A negative rating action could result from any decline
in the operating profitability leading to deterioration in the
credit profile.
COMPANY PROFILE
Incorporated in 2003, CCCPL is a Mumbai-based company engaged in
manufacturing garments. The company has two units based in Daman
with a total installed capacity of 12,70,000 units.
Total debt outstanding on 31 March 2015 was INR250.2m, comprising
long term loans of INR29.1m, working capital debt of INR136.3m and
unsecured loans from promoters of INR84.7m.
CCCPL's ratings:
-- Long-Term Issuer Rating: assigned 'IND B+'/Stable
-- INR19 million long-term loans: assigned Long-term 'IND
B+'/Stable
-- INR160 million fund-based limits: assigned Long-term 'IND
B+'/Stable
DEEPAK AGRAWAL: Ind-Ra Assigns 'IND BB-' LT Issuer Rating
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Deepak Agrawal
(DKA) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is
Stable.
KEY RATING DRIVERS
DKA's ratings reflect the proprietorship nature of its business
along with its small scale of operations, with revenue of INR135m
during FY15. Moreover, the credit profile of the entity is
moderate, with interest coverage (operating EBITDA/gross interest
expenses) of 2.8x and net financial leverage (total Ind-Ra
adjusted net debt/operating EBITDAR) of 2.9x in FY15.
The ratings factor in DKA's moderate liquidity profile with 92.4%
utilisation of the working capital facility for the 12 months
ended November 2015.
The ratings are however supported by over a decade of experience
of DKA's promoters in the construction business.
RATING SENSITIVITIES
Positive: A substantial improvement in the scale of operations
along with an increase in the operating profitability will be
positive for ratings.
Negative: Any deterioration in the credit profile will be negative
for ratings.
COMPANY PROFILE
DKA has been into the construction business since 2002. The firm
executes several government orders on tender basis.
DKA's ratings:
-- Long-Term Issuer Rating: assigned 'IND BB-'/Stable.
-- INR20.0 million fund-based working capital limit: assigned
'IND BB-'/Stable
-- INR70.0m non-fund-based working capital limit: assigned 'IND
A4+'
DRS DILIP: Ind-Ra Assigns Long-Term Issuer Rating of 'IND B+'
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned DRS Dilip Road
Lines Private Limited (DRSDRL) a Long-Term Issuer Rating of 'IND
B+'. The Outlook is Stable. The agency has also assigned DRSDRL's
INR150m fund-based limit a Long-Term 'IND B+' rating with a Stable
Outlook.
KEY RATING DRIVERS
Ind-Ra has taken a consolidated view of the financial and
operational profiles of DRSDRL and its group company DRS
Warehousing (South) Private Limited (DWSPL; 'IND B+'/Stable) to
arrive at the ratings. These companies have a common management
and strong operational inter-linkages.
The ratings are constrained by the imminent term debt servicing
risk for the two companies on their continued negative free cash
flow because of capex. Free cash flow is likely to remain negative
in the near term as working capital requirements increase on
revenue growth.
The ratings factor in the moderate consolidated credit and
financial profile. In FY15, EBITDA interest coverage was 1.9x, net
leverage (net debt/EBITDA) was 5.6x, turnover was INR1,455m and
EBITDA margins were 7.0%.
RATING SENSITIVITIES
Negative: Further stress on the liquidity and/or a decline in the
operating profitability leading to deterioration in the credit
metrics will be negative for the ratings.
Positive: A rise in the operating profitability leading to an
improvement in the credit metrics along with improvement in the
liquidity will be positive for the ratings.
COMPANY PROFILE
Incorporated in 2009, DRSDRL is engaged in the transportation of
household items, commercial and industrial goods and parcel
movement across the country and operates through its 100 branch
offices and agencies.
DWSPL has a 400,000 sq ft warehouse facility in Medak district,
Telangana. It has assigned the management of its warehouse to
DRSDRL for seven years through a memorandum of understanding since
January 2013. During this period, DRSDRL will lease out the
warehouse, receive rent and meet all the related expenses and also
repay DWSPL's term loan irrespective of monthly rental receipts.
EASTERN GOURMET: CRISIL Suspends B- Rating on INR59MM Term Loan
---------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Eastern
Gourmet Private Limited (EGPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 15.7 CRISIL B-/Stable
Term Loan 59 CRISIL B-/Stable
The suspension of rating is on account of non-cooperation by EGPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, EGPL is yet to
provide adequate information to enable CRISIL to assess EGPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
Incorporated in June 2011, EGPL manufactures pasta with capacity
of 600 tonnes per month. The company, promoted by Mr. S N Sahoo,
has a manufacturing plant in Cuttack (Odisha), which commenced
commercial operations in November 2012.
ELLEN TEXTILES: Ind-Ra Assigns 'IND BB-' Long-Term Issuer Rating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Ellen Textiles
Private Limited (ETPL) a Long-Term Issuer Rating of 'IND BB-'. The
Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect ETPL's small scale of operations, moderate
credit metrics and volatile profitability. In FY15, revenue was
INR288m (FY14: INR254m) while EBITDA margins fluctuated between
2.7% and 6.9% over FY12-FY15 on volatile raw material prices. Net
leverage was 4.78x in FY15 (FY14: 6.14x) and EBITDA interest cover
was 1.95x (1.66x). The ratings also factor in the risks associated
with the agricultural commodity based manufacturing business.
The ratings are supported by the promoters' three-decade-long
experience in yarn manufacturing and the company's comfortable
liquidity position as reflected in its 76.8% average use of the
fund-based working capital facility during the 12 months ended
December 2015.
RATING SENSITIVITIES
Positive: Any substantial growth in the top line with a rise in
the EBITDA margins leading to a sustained improvement in the
credit metrics could be positive for the ratings.
Negative: Any deterioration in the EBITDA margins leading to
sustained deterioration in the credit metrics could be negative
for the ratings.
COMPANY PROFILE
ETPL was established in 1980. The company manufactures polyester
yarn in the count range of 48-64 and combed cotton yarn in the
count range of 40-60.
ETPL's ratings:
-- Long-Term Issuer Rating: assigned 'IND BB-'; Outlook Stable
-- INR16.00 million long-term loans: assigned 'IND BB-'; Outlook
Stable
-- INR25.00 million fund-based facilities: assigned 'IND BB-
'/Outlook Stable; and 'IND A4+'
-- INR2.80 million non-fund-based facilities: assigned 'IND A4+'
G B CHOWDHURY: CRISIL Suspends B+ Rating on INR33.5MM Cash Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
G B Chowdhury Holdings Pvt Ltd (GBHPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 150 CRISIL A4
Cash Credit 33.5 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 20.1 CRISIL B+/Stable
Term Loan 23.1 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by
GBHPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, GBHPL is yet to
provide adequate information to enable CRISIL to assess GBHPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
GBHPL has been trading in SIM cards, recharge vouchers, and e-top
ups for Vodafone India Ltd since 2009. The company also started
operating in the logistics business from 2010-11; it transports
foodgrain and sugar for FCI in North-East India.
GODARA COTTON: CRISIL Suspends B Rating on INR40MM Cash Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Godara
Cotton Ginning and Pressing Factory (GCGPF).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL B/Stable
Inventory Funding
Facility 91.9 CRISIL A4
Term Loan 8.1 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by
GCGPF with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, GCGPF is yet to
provide adequate information to enable CRISIL to assess GCGPF's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
GCGPF, set up in 1984 by Mr. Sunder Godara, is engaged in ginning
and pressing of cotton and crushing of cotton and mustard seeds.
Its factory is in Anupgarh (Rajasthan). The firm also has a cold
storage and a chilling facility in Anupgarh.
GOYAL KNITWEARS: CRISIL Suspends B- Rating on INR148.5MM Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Goyal
Knitwears Private Limited (GKPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Purchase 5 CRISIL A4
Cash Credit 148.5 CRISIL B-/Stable
Packing Credit 51.5 CRISIL A4
Proposed Long Term
Bank Loan Facility 55 CRISIL B-/Stable
The suspension of ratings is on account of non-cooperation by GKPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, GKPL is yet to
provide adequate information to enable CRISIL to assess GKPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
Set up in 1999 by Mr. Kamal Prakash Goyal and his brothers, GKPL
manufactures ready-made garments (hosiery) such as sweaters, T-
shirts, gloves, and caps at its facility in Ludhiana (Punjab). The
company sells these garments in both domestic as well as export
markets.
GREENLANDS (A. & M.): CRISIL Suspends B+ Rating on INR75MM Loan
---------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Greenlands (A. & M.) Corporation (GAMC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 75 CRISIL B+/Stable
Overdraft Facility 61 CRISIL B+/Stable
The suspension of rating is on account of non-cooperation by GAMC
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, GAMC is yet to
provide adequate information to enable CRISIL to assess GAMC's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
Based in Allahabad (Uttar Pradesh), GAMC started operations in
1950 with a Tractor and Farm Equipment Ltd (TAFE) dealership. The
firm's promoters have since added dealerships of five other
original equipment manufacturers: TVS Motors Ltd (TVS; since
1985), Force Motors (2008), Terex Equipments Pvt Ltd (2009), Atul
Auto Ltd (2010), and VE Commercial Vehicles Ltd (October 2010).
GAMC also provides transportation services, mainly to India Yamaha
Motor Pvt Ltd and TVS. The firm is expanding and setting up
outlets in cities such as Allahabad, Kaushambi, and Varanasi in
Uttar Pradesh.
GURU RICE: CRISIL Suspends B+ Rating on INR180MM Cash Loan
----------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Guru
Rice Mills (GRM).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 180 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 22 CRISIL B+/Stable
Term Loan 8 CRISIL B+/Stable
The suspension of rating is on account of non-cooperation by GRM
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, GRM is yet to
provide adequate information to enable CRISIL to assess GRM's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
GRM was established as a partnership firm in 2001 in Amritsar
(Punjab) by Ms. Rekha Dhawan, Mr. Anil Kumar, Mr. Mukesh Kumar,
and Mr. Naresh Kumar. The firm is mainly engaged in milling and
marketing of high-grade varieties of rice, such as basmati. GRM's
partners have over two decades of experience in the rice-milling
industry through group entities.
IMPERIAL FABRICS: CRISIL Suspends B+ Rating on INR125MM Loan
------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Imperial
Fabrics Pvt Ltd (IFPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 75 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 125 CRISIL B+/Stable
The suspension of rating is on account of non-cooperation by Code
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Code is yet to
provide adequate information to enable CRISIL to assess Code's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
Set up in 2002 by Mr. Sushil Goel and his friends, IFPL is engaged
in trading of knitted fabrics, interlining material (used for
pockets, jackets inner side and others) and yarn. The company is
based put of Ludhiana (Punjab).
J. N. TAYAL: CRISIL Suspends B+ Rating on INR50MM Cash Loan
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
J. N. Tayal Steels Private Limited (JNTSPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B+/Stable
Letter of Credit 20 CRISIL A4
Proposed Long Term
Bank Loan Facility 10.3 CRISIL B+/Stable
Term Loan 19.7 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by
JNTSPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, JNTSPL is yet to
provide adequate information to enable CRISIL to assess JNTSPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
Incorporated in 2011-12 (refers to financial year, April 1 to
March 31), JNTSPL manufactures steel ingots at its facility in
Ludhiana (Punjab). The company is promoted by brothers Mr. Nitin
Tayal and Mr. Jatin Tayal.
JAIPUR CENTRE: CRISIL Suspends D Rating on INR300MM LT Loan
-----------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Jaipur Centre Developers Pvt Ltd (JCDPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 300 CRISIL D
Term Loan 250 CRISIL D
The suspension of rating is on account of non-cooperation by JCDPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, JCDPL is yet to
provide adequate information to enable CRISIL to assess JCDPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
JCDPL, formerly known as HV Hotels Pvt Ltd, is a special purpose
vehicle for developing real estate projects. The company is
promoted by Mr. Deepak Jain (co-promoter of Rishabh Diamond Group)
and Mr. Kailash Agarwal (co-promoter of Varun Industries Ltd). The
company was acquired by the current promoters in 2007-08 (refers
to financial year, April 1 to March 31). JCDPL is setting up a
0.24 million square feet, high-end shopping-cum-office complex,
Jaipur Centre, at intersection of Tank Road and Jawahar Circle in
Jaipur (Rajasthan). The total cost of the project is estimated at
INR1234 million, which to be funded in a debt-equity ratio of
0.8:1. The project is expected to be completed by October 2014.
JINDAL CHAWAL: CRISIL Suspends B+ Rating on INR40MM Cash Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Jindal
Chawal Nigam (JCN).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL B+/Stable
Packing Credit 60 CRISIL A4
The suspension of ratings is on account of non-cooperation by JCN
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, JCN is yet to
provide adequate information to enable CRISIL to assess JCN's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
JCN was established in 1984 as a partnership firm by the Jindal
family in Patiala (Punjab). The firm is mainly engaged in shelling
of basmati and non-basmati rice.
KANDARP CONSTRUCTIONS: Ind-Ra Assigns 'IND D' LT Issuer Rating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Kandarp
Constructions (India) Private Limited (KCIPL) a Long-Term Issuer
Rating of 'IND D'.
KEY RATING DRIVERS
The ratings reflect KCIPL's continuous overutilisation of the
fund-based limits during October-December 2015 and the non-payment
of interest due to its weak liquidity position. The average
maximum utilisation of its fund-based limit stood at 101.56%
during the 12 months ended December 2015.
RATING SENSITIVITIES
Timely debt servicing for at least three consecutive months with a
satisfactory track record of at least 90 days could result in a
positive rating action.
COMPANY PROFILE
KCIPL is a Lucknow-based entity incorporated in 2001. The entity
is engaged in the business of civil and road construction works.
KCIPL's ratings:
-- Long-Term Issuer Rating: assigned Long-term 'IND D'
-- INR60.0 million fund-based facilities: assigned Long-term
'IND D' and Short Term 'IND D'
-- INR100.0 million term loan facilities: assigned Long-term
'IND D'
KIWI ALLOYS: CRISIL Suspends B Rating on INR42.5MM Cash Loan
------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Kiwi
Alloys Limited (KAL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 42.5 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 25 CRISIL B/Stable
Term Loan 25 CRISIL B/Stable
The suspension of rating is on account of non-cooperation by KAL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, KAL is yet to
provide adequate information to enable CRISIL to assess KAL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
KAL, incorporated in 2010, was promoted by Mr. Nitin Gupta and his
family members; however, the company started operations in October
2011. It manufactures mild steel ingots. The facility is located
in Bhiwadi (Rajasthan).
KRISHAN KUMAR: CRISIL Suspends B+ Rating on INR200MM Cash Loan
--------------------------------------------------------------
CRISIL has suspended its rating on the bank facility of Krishan
Kumar and Co. - Kaithal (KKC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 200 CRISIL B+/Stable
The suspension of rating is on account of non-cooperation by KKC
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, KKC is yet to
provide adequate information to enable CRISIL to assess KKC's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
Established in 2013 and based in Kaithal (Haryana), KKC is a
proprietorship firm owned and managed by Mr. Krishan Miglani. The
firm processes basmati rice, primarily for the export market. It
commenced operations in March 2014.
LADHAR PAPER: CRISIL Suspends B- Rating on INR90MM Cash Loan
------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Ladhar
Paper Mills (LPM).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 90 CRISIL B-/Stable
Proposed Long Term
Bank Loan Facility 36 CRISIL B-/Stable
Term Loan 4 CRISIL B-/Stable
The suspension of rating is on account of non-cooperation by LPM
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, LPM is yet to
provide adequate information to enable CRISIL to assess LPM's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
LPM, a partnership firm, was set up in 2006 by two brothers, Mr. S
Amarjit Singh Ladhar and Mr. S Baldev Singh Ladhar who are both
non-resident Indians. The firm started commercial production in
September 2010. It manufactures writing and printing paper, with
an installed capacity of 80 tonnes per day, based on waste paper
as raw material, at Nakodar (Jalandhar, Punjab).
LORD KRISHNA: CRISIL Suspends 'D' Rating on INR132.5MM Term Loan
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Lord
Krishna Education Trust (LKET).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 37.5 CRISIL D
Term Loan 132.5 CRISIL D
The suspension of ratings is on account of non-cooperation by LKET
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, LKET is yet to
provide adequate information to enable CRISIL to assess LKET's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
LKET, registered in 2004, operates the Lord Krishna College of
Engineering and Lord Krishna College of Management from its campus
in Ghaziabad (Uttar Pradesh), affiliated to the Mahamaya Technical
University, and Gautam Buddh Technical University. LKET offers
under-graduate courses in engineering and post-graduate courses in
management. The trust is currently managed by Mr. Manoj Kumar
Singh, Mr. Jagmohan Garg and Mr. J Shrivastava.
MAA MANASHA: CRISIL Suspends 'D' Rating on INR465.5MM LT Loan
-------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
Maa Manasha Devi Alloys Private Limited (MMDAPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 21 CRISIL D
Proposed Long Term
Bank Loan Facility 465.5 CRISIL D
Term Loan 33.5 CRISIL D
The suspension of rating is on account of non-cooperation by
MMDAPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MMDAPL is yet to
provide adequate information to enable CRISIL to assess MMDAPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
MMDAPL was set up the Apat family of Odisha and was constituted as
a private limited company in 2009. MMDAPL has an ingot
manufacturing unit and an iron crushing unit at Koira (Odisha).
Currently, the company is being managed by Mr. Bhimsen Apat, Mr.
Naba Apat (brother of Mr. Bhimsen Apat), and Mr. Jitendra Kumar
Apat (son of Mr. Bhimsen Apat).
MATRIX GLOBAL: CRISIL Suspends D Rating on INR40MM Loan
-------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Matrix
Global Pvt Ltd (MGPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 40 CRISIL D
Cash Credit 5 CRISIL D
Packing Credit 25 CRISIL D
Proposed Long Term
Bank Loan Facility 40 CRISIL D
Proposed Short Term
Bank Loan Facility 40 CRISIL D
The suspension of ratings is on account of non-cooperation by MGPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MGPL is yet to
provide adequate information to enable CRISIL to assess MGPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
MGPL, incorporated in 2007, is an export trader of educational
books, laboratory equipment, medical equipment, and agricultural
equipment. The company participates in government tenders in
Africa and Russia. MGPL is promoted by Mr. Rajesh Sondhi and Mr.
Prabhat Kumar. The promoters have been in the business of merchant
trading for more than a decade.
MOUNT SHIVALIK: CRISIL Suspends B+ Rating on INR349.7MM Term Loan
-----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Mount
Shivalik Breweries Limited (MSBL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 20 CRISIL A4
Bills Discount/
Cheque Purchase 5 CRISIL A4
Cash Credit 170 CRISIL B+/Stable
Funded Interest
Term Loan 69.5 CRISIL B+/Stable
Letter of Credit 80 CRISIL A4
Proposed Long Term
Bank Loan Facility 5.8 CRISIL B+/Stable
Term Loan 349.7 CRISIL B+/Stable
Working Capital
Term Loan 50 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by MSBL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MSBL is yet to
provide adequate information to enable CRISIL to assess MSBL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
Established by Mr. B D Bali in 1974, MSBL manufactures beer at its
two facilities in Bhankarpur (Punjab) and Saha (Haryana), having
installed capacities of 45 million litres per annum (lpa) and 25
million lpa, respectively.
MRG AUTO: CRISIL Suspends B Rating on INR230MM Cash Loan
--------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of MRG AUTO
Private Limited (MRG Auto).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 230 CRISIL B/Stable
Overdraft Facility 60 CRISIL B/Stable
The suspension of rating is on account of non-cooperation by MRG
Auto with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MRG Auto is yet
to provide adequate information to enable CRISIL to assess MRG
Auto's ability to service its debt. The suspension reflects
CRISIL's inability to maintain a valid rating in the absence of
adequate information. CRISIL considers information availability
risk as a key factor in its rating process as outlined in its
criteria 'Information Availability - a key risk factor in credit
ratings'.
MRG Auto was set up by Shri Ishwar Dass Garg in 1997, to manage an
auto dealership. The company currently operates two showrooms
under the Pioneer Hyundai brand in Ludhiana. In 2013-14, MRG Auto
launched a showroom for used Hyundai cars under the Hyundai
Advantage brand. The promoter also manages dealerships for Honda
through a separate legal entity.
MUKUND AGRO: CRISIL Suspends D Rating on INR50MM Cash Loan
----------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Mukund
Agro Products Pvt Ltd (MAPPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL D
Term Loan 5.2 CRISIL D
The suspension of rating is on account of non-cooperation by MAPPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MAPPL is yet to
provide adequate information to enable CRISIL to assess MAPPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
Incorporated in 1998, MAPPL is engaged in milling of non-basmati
rice. Its manufacturing facility is at Midnapore (West Bengal).
The company's day-to-day operations are looked after by its
promoter-director, Mr. Sachdanand Ojha.
NIRULAS CORNER: CRISIL Suspends B Rating on INR67.5MM Term Loan
---------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Nirulas
Corner House Pvt Ltd (Nirulas).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 32.5 CRISIL B/Stable
Proposed Cash
Credit Limit 5 CRISIL B/Stable
Proposed Term Loan 45 CRISIL B/Stable
Term Loan 67.5 CRISIL B/Stable
The suspension of rating is on account of non-cooperation by
Nirulas with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Nirulas is yet
to provide adequate information to enable CRISIL to assess
Nirulas's ability to service its debt. The suspension reflects
CRISIL's inability to maintain a valid rating in the absence of
adequate information. CRISIL considers information availability
risk as a key factor in its rating process as outlined in its
criteria 'Information Availability - a key risk factor in credit
ratings'.
Nirulas is one of the oldest fast food restaurant chains in North
India, primarily operating in the National Capital Region (NCR).
Currently, the company has around 30 outlets (owned and
franchisee) in the Delhi-NCR region-, Punjab, Haryana, Bihar,
Rajasthan, Madhya Pradesh and Uttar Pradesh. The promoters, Mr.
Pardeep Chadha and his son, Mr. Amit Chadha, oversee Nirulas's
daily operations.
NORTH EAST: CRISIL Suspends B Rating on INR50MM Cash Loan
---------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of North
East Ferro Alloys Company Pvt Ltd (NEFA).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.5 CRISIL A4
Cash Credit 50 CRISIL B/Stable
Letter of Credit 12.5 CRISIL A4
Proposed Term Loan 15.9 CRISIL B/Stable
Term Loan 24.1 CRISIL B/Stable
The suspension of ratings is on account of non-cooperation by NEFA
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, NEFA is yet to
provide adequate information to enable CRISIL to assess NEFA's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
NEFA, incorporated in 2008, manufactures mild steel ingots at its
facilities in Siliguri (West Bengal). The company was established
by Mrs. Minu Goyal and Mrs. Indu Goyal; the manufacturing
operations are managed by their husbands, Mr. Arun Goyal and Mr.
Mukesh Goyal, respectively. The Goyal family has been associated
with the iron and steel industry through its group entities for
over a decade.
PEE JAY: CRISIL Reaffirms 'B' Rating on INR85MM Cash Loan
---------------------------------------------------------
CRISIL's rating on the long-term bank facility of Pee Jay Imports
Exports continues to reflect the firm's weak financial risk
profile because of high gearing and subdued debt protection
metrics, modest scale of operations, and customer concentration in
revenue profile. These weaknesses are partially offset by
extensive experience of Pee Jay's promoters in the textile
industry and no term debt obligation.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 85 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes Pee Jay will continue to benefit over the medium
term from promoters' extensive industry experience. The outlook
may be revised to 'Positive' if liquidity improves because of
significant increase in profitability and turnover, leading to
better-than-expected cash accrual, or if partners infuse
substantial capital. Conversely, the outlook may be revised to
'Negative' if financial risk profile deteriorates due to sizeable
working capital requirement, decline in turnover, or debt-funded
capital expenditure.
Set up as a partnership firm in 1997 by Mr. Sanjiv Gupta, Mr.
Rajinder Bansal, Mr. Sanjay Gupta, and Ms. Kamlesh Gupta (mother
of Mr. Sanjiv Gupta), Pee Jay manufactures T-shirts, sweaters, and
jackets at its unit in Ludhiana, Punjab.
Pee Jay reported a book profit of INR1.0 million on net sales of
INR295.4 million for 2014-15 (refers to financial year, April 1 to
March 31), against a book profit of INR0.07 million on net sales
of INR298.9 million for 2013-14.
PIONEER COMBINES: CRISIL Suspends D Rating on INR98MM Cash Loan
---------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Pioneer
Combines Private Limited (PCPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 98 CRISIL D
Proposed Long Term
Bank Loan Facility 52 CRISIL D
The suspension of rating is on account of non-cooperation by PCPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, PCPL is yet to
provide adequate information to enable CRISIL to assess PCPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
PCPL was established in 2007 in the style of a partnership firm.
Later, it was reconstituted as corporate body in 2010. The company
is based out of Odisha and is engaged in trading of iron-ore fines
and lumps. The company is primarily engaged in exports and derived
around 70 percent of its turnover from exports. The day-to-day
operations of the company are looked after by Mr. Nihar Satpathy,
Mr. B.B. Acharya and Mr. Pradyumna Mohanty who are the directors
of the company.
PROMPT PULP: CRISIL Ups Rating on INR52.5MM LT Loan to 'C'
----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Prompt Pulp and Fibres Pvt Ltd to 'CRISIL C' from 'CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 22.5 CRISIL C (Upgraded from
'CRISIL D')
Long Term Bank 52.5 CRISIL C (Upgraded from
Facility 'CRISIL D')
The rating upgrade reflects PPFPL's timely servicing of debt over
the six months through November 2015. The company's liquidity,
however, remains weak on account of depressed cash accrual, which
is expected to be inadequate to meet term debt repayment
obligations over the medium term.
The rating reflects PPFPL's weak financial risk profile because of
a small networth, high gearing, and weak debt protection metrics.
The rating also factors in the company's limited track record,
small scale of operations, large working capital requirement, and
exposure to intense competition in the paper manufacturing
business. These rating weaknesses are partially offset by the
extensive industry experience of the company's promoters.
PPFPL was set up in 2006 by Mr. Anand Dayama, Mrs. Renu Agarwal,
Mr. Vijay Agarwal, and their family members. The company
manufactures tissue, napkin, and poster papers. It commenced
operations in 2014 at its plant in Medak district, Telangana.
R.K. MAHAJAN: CRISIL Suspends B+ Rating on INR23MM LT Loan
----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of R.K.
Mahajan Govt. Contractor (RK's).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 60 CRISIL A4
Cash Credit 21 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 23 CRISIL B+/Stable
Term Loan 6 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by RK's
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, RK's is yet to
provide adequate information to enable CRISIL to assess RK's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
RK is a proprietorship firm, set up in Himachal Pradesh in 1972 by
Mr. Rakesh Kumar Mahajan. The firm is a Class-A civil contractor
registered with the Public Works Departments in Himachal Pradesh
and Punjab. RK constructs, maintains and improves roads.
SHANKAR ENTERPRISES: Ind-Ra Upgrades LT Issuer Rating to 'IND BB'
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Shankar
Enterprises' (SE) Long-Term Issuer Rating to 'IND BB' from 'IND
BB-'. The Outlook is Stable.
KEY RATING DRIVERS
The upgrade reflects SE meeting Ind-Ra's positive rating guideline
by achieving gross interest coverage (operating EBITDAR/gross
interest expenses) of 14.2x during FY15 (FY14: 4.5x) due to higher
operating EBITDA of INR38m (FY14:INR30m) and lower working capital
requirements. The upgrade also reflects firm's maintenance of
strong net financial leverage of 0.7x during FY15 (FY14: 0.6x).
The ratings factor in the company's strong liquidity position as
reflected in its average maximum working capital utilisation of
36.12% during the 12 months ended November 2015. Also, SE's net
cash cycle was negative 27 days during FY15 due to the long credit
period received from its suppliers.
The ratings benefit from over 10 years of experience of the
company's founders in civil construction.
The ratings are, however, constrained by SE's weak work order book
of only INR117.82m at end-December 2015. The ratings also factor
in the proprietorship structure of its organisation.
RATING SENSITIVITIES
Positive: An improvement in the scale of operations along with the
maintenance of strong net financial leverage will lead to a
positive rating action.
Negative: A decline in the profitability leading to deterioration
in the credit profile will lead to a negative rating action.
COMPANY PROFILE
SE is into the civil construction industry since 2000. The firm is
led by Sri Ramesh Jaiswal, and has been actively engaged in
construction work since then, and has completed a number of
projects for its clients. It carries out projects for both
government and private entities.
SE's ratings:
-- Long Term Issuer Rating: upgraded to 'IND BB'/Stable from
'IND BB-'/Stable
-- INR40.00 million fund-based working capital limit: upgraded
to 'IND BB'/Stable from 'IND BB-'
-- INR60.00 million non-fund-based working capital limit:
affirmed at 'IND A4+'
STARWING PLASTIC: CRISIL Assigns 'B' Rating to INR40MM Cash Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Starwing Plastic and Chemicals Private Limited
(SPCPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL B/Stable
Letter of Credit 110 CRISIL A4
The rating reflects SPCPL's small scale of operations, low
operating profitability, and below-average financial risk profile
because of modest net worth and subdued debt protection metrics.
These weaknesses are partially offset by promoter's extensive
experience and funding support.
Outlook: Stable
CRISIL believes SPCPL will continue to benefit over the medium
term from promoter's industry experience and funding support. The
outlook may be revised to 'Positive' if significant and
sustainable growth in scale of operations and profitability
results in sizeable cash accrual and improved debt protection
metrics. Conversely, the outlook may be revised to 'Negative' if
stretch in working capital cycle or constrained profitability
adversely affects liquidity.
SPCPL trades in polymers and chemicals and commenced commercial
operations in September 2013. Operations are managed by Mr. Karan
Dube.
TRANSTECH GREEN: CRISIL Suspends D Rating on INR382.4MM Loan
------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Transtech Green Power Private Limited (TGPPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL D
Cash Credit 75 CRISIL D
Proposed Long Term
Bank Loan Facility 32.6 CRISIL D
Term Loan 382.4 CRISIL D
The suspension of ratings is on account of non-cooperation by
TGPPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, TGPPL is yet to
provide adequate information to enable CRISIL to assess TGPPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
TGPPL, incorporated in 2007, started commercial operations by
setting up a 12-megawatt power plant in Sanchore (Rajasthan) in
July 2010. The company is a subsidiary of Teletech Finsec India
(P) Ltd (TFIPL). TFIPL holds 99.48 per cent stake in TGPPL, while
the promoters/directors hold the remaining 0.52 per cent.
VIGHNESHWAR ISPAT: CRISIL Assigns B Rating to INR45MM Cash Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long term
bank facilities of Vighneshwar Ispat Private Limited (VIPL).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 45 CRISIL B/Stable
Term Loan 10 CRISIL B/Stable
The rating reflects the company's below-average financial risk
profile because of modest networth and weak debt protection
metrics. The rating also factors in the vulnerability of operating
margin to volatility in raw material prices and limited pricing
power because of intense industry competition. These weaknesses
are partially offset by the promoters' extensive experience in the
steel industry.
Outlook: Stable
CRISIL believes VIPL will benefit over the medium term from the
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the company witnesses a substantial and
sustained increase in operating income and accrual, along with
efficient working capital management, leading to improvement in
the financial risk profile and liquidity. Conversely, the outlook
may be revised to 'Negative' if VIPL's profitability or revenue
declines significantly, resulting in low cash accrual, or if the
company witnesses a stretch in the working capital cycle or
undertakes any large, debt-funded capital expenditure programme
leading to deterioration in its financial risk profile,
particularly liquidity.
VIPL, incorporated in October 2009, manufactures mild-steel
ingots. The company is promoted and managed by Mr. Hemant Tayal
and Mr. Akshit Tayal who are also the directors. Its facility is
located in Raipur (Chhattisgarh).
VIKAS CONSTRUCTION: CRISIL Suspends B+ Rating on INR86.7MM Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Vikas
Construction (VC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 13.3 CRISIL A4
Cash Credit/
Overdraft facility 20 CRISIL B+/Stable
Term Loan 86.7 CRISIL B+/Stable
The suspension of ratings is on account of non-cooperation by VC
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, VC is yet to
provide adequate information to enable CRISIL to assess VC's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key factor in its rating process as outlined in its criteria
'Information Availability - a key risk factor in credit ratings'.
VC, incorporated in 2007, is engaged in civil works contracts as
well as godown construction in Uttar Pradesh. Its day-to-day
operations are managed by Mr. Atif Raza.
=========
J A P A N
=========
SHARP CORP: To Seek Additional Financial Aid From Creditor Banks
----------------------------------------------------------------
The Japan Times reports that Sharp Corp. is planning to ask its
major creditor banks for additional financial assistance of
JPY150 billion in line with a rehabilitation plan with the
government-backed corporation turnaround fund, according to
sources.
Under the restructuring plan of the Innovation Network Corp. of
Japan, the struggling electronics manufacturer will spin off its
money-losing liquid crystal display business, the report relates.
The Japan Times relates that the fund will invest some JPY200
billion in Sharp to secure a majority stake with the aim of taking
the lead in its rehabilitation, the sources said Jan. 11.
According to the report, the sources said Sharp's interest-bearing
debt stood at about JPY760 billion as of September. Of this sum,
about JPY150 billion will be transferred to a new entity to be
created by the spinoff of its LCD business and will be converted
to preferred shares through a debt-for-equity swap.
Sharp's two major creditor banks -- Mizuho Bank and the Bank of
Tokyo-Mitsubishi UFJ -- extended a total of JPY200 billion in
loans to Sharp last June, the report recalls.
The Japan Times adds that Taiwan's Hon Hai Precision Industry Co.,
known for the Foxconn brand, has proposed buying Sharp or
investing in the LCD business, while some investment funds and
Samsung Electronics Co. of South Korea are offering to purchase
the company or some of its businesses, the sources said.
While Sharp is likely to study the INCJ's plan as the most
plausible option, it may also consider other proposals if talks
with the corporate turnaround body fail, the report notes.
According to the report, sources said the INCJ aims to integrate
Sharp's LCD business with Japan Display Inc., a maker of small and
medium-sized LCDs in which the public-private sector fund has a
stake.
With the envisioned integration, the INCJ hopes to boost Japan's
global competitive edge by forming the alliance between the sector
heavyweights, the report states.
The report relates that the INCJ is also supporting a realignment
of Japanese electronics appliance manufacturers by the possible
integration of Sharp's white goods business with Toshiba Corp.,
which is reeling in the wake of a major accounting scandal, the
sources said.
Sharp chalked up a group net loss of JPY83.61 billion for the
first half of fiscal 2015, the report discloses.
Based in Osaka, Japan, Sharp Corporation (TYO:6753) --
http://sharp-world.com/-- manufactures and sells electronic
telecommunication devices, electronic machines and components.
As reported in Troubled Company Reporter-Asia Pacific on
Nov. 6, 2015, Standard & Poor's Ratings Services said that it has
lowered its long-term corporate credit and debt ratings on Japan-
based electronics company Sharp Corp. to 'CCC+' from 'B-' and its
short-term corporate credit and commercial paper program ratings
on the company to 'C' from 'B'. S&P has also lowered its long-
term corporate credit rating on overseas subsidiary Sharp
International Finance (U.K.) PLC to 'CCC+' and the rating on its
commercial paper program to 'C'. The outlook on the long-term
corporate credit ratings on both companies is negative.
=====================
P H I L I P P I N E S
=====================
LBC DEVELOPMENT: Court Starts Garnishing LBC Group's Deposits
-------------------------------------------------------------
Daphne J. Magturo at BusinessWorld reports that the Araneta
family's LBC group is anticipating "administrative" and
"operational" challenges, as a Makati regional trial court started
garnishing its bank accounts in relation to the
PHP1.8 billion collection claim filed by the Philippine Deposit
Insurance Corp. (PDIC).
BusinessWorld relates that in a letter to the Securities and
Exchange Commission (SEC), LBC Express Holdings, Inc. Chairman,
President and CEO Miguel Angel A. Camahort said six peso current
bank accounts, with deposits totalling PHP9.98 million, have been
attached by the court sheriff as of 12 noon Jan. 9.
Branch 143 of the Regional Trial Court of Makati City served the
summons and writ of preliminary attachment on LBC Express last
Dec. 28, 2015, according to BusinessWorld.
BusinessWorld says the defendants in the case filed by the PDIC,
on behalf of shuttered LBC Development Bank, Inc. (LBC Bank),
include LBC Development Corp. and LBC Express, Inc. -- the listed
firm's parent and subsidiary, respectively.
Other defendants are LBC Properties, Inc., former LBC Bank
President and Chairman Ma. Eliza G. Berenguer, and Juan Carlos
Araneta, Santiago G. Araneta, Fernando G. Araneta, Monica G.
Araneta, Carlos Araneta, Ofelia F. Cuevas, Apolonia L. Ilio,
Joseph Jeffrey Rodriguez, and Arlan T. Jurado, BusinessWorld
notes.
"Nevertheless, we anticipate that as the Writ of Preliminary
Attachment is being executed and until LBC Express shall have
implemented its remedies designed to meet and/or challenge said
Writ of Preliminary Attachment, LBC Express will need to take
measures and find alternative channels of payments to its
suppliers, lessors and other counterparties," BusinessWorld quotes
Mr. Camahort as saying.
A writ of attachment is a court order for the attachment or
seizure of a property, and is generally used to freeze the assets
of a defendant while awaiting the results of a legal action to
satisfy the plaintiff's claim and costs of suit, the report notes.
"This may pose some administrative and operational challenges
given that we anticipate further garnishment of bank accounts,"
Mr. Camahort, as cited by BusinessWorld, added.
According to BusinessWorld, LBC Express said it is talking to its
bankers and advised stakeholders to "coordinate" with the firm "to
ensure continued payments and services."
"LBC Express Inc. is thoroughly assessing the situation through
the assistance of legal counsel, and will exhaust all legal
remedies to resolve this matter as soon as possible,"
BusinessWorld quotes Mr. Camahort as saying.
However, the company maintained the case has had no "immediate
material impact" yet, and that LBC Express is continuing "regular"
business operations, says the report.
"[T]he writ is a provisional remedy and the assets or cash of LBC
Express shall be made to answer only upon final judgment being
rendered against LBC Express," Mr. Camahort said, notes
BusinessWorld.
"We are very much aware, however, that whether or not the claims
against LBC Express are successfully proven, there can be no
assurance that these claims will not cause business interruptions
or reputational harm to LBC Express Holdings, Inc. and may
ultimately have a material adverse effect on its financial
performance and prospects," he added.
About LBC
LBC Development Bank is a 20-unit thrift bank. Its head office
is located at 809 J. P. Rizal St., Poblacion, Makati City. Its
19 branches are located nationwide.
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 13, 2011, the Monetary Board placed LBC Development Bank
under receivership of the Philippine Deposit Insurance
Corporation by virtue of MB Resolution No. 1354 dated Sept. 9,
2011.
LBC Development incurred non-performing loans of PHP316.3 million
representing 27.29% of its total loan portfolio of more than
PHP1 billion as of December 2010, according to Manila Standard
Today. The bank also had more than PHP725 million in classified
loans and other risk assets as of December last year. Against
these high-risk loans, the bank had only PHP158.7 million in
specific provision for loan losses. While LBC Development Bank
had nearly PHP6 billion in deposit liabilities, its net loans and
receivables amounted to less than PHP1 billion, the Manila
Standard disclosed.
*********
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 2016. 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 ***