TCRAP_Public/160831.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, August 31, 2016, Vol. 19, No. 172

                            Headlines


A U S T R A L I A

AMORE REALTY: First Creditors' Meeting Slated for Sept. 7
BLACTON STONEMASONRY: First Creditors' Meeting Set for Sept. 6
FORTESCUE METALS: S&P Affirms BB CCR & Revises Outlook to Stable
HENTSCHKE TRANSPORT: First Creditors' Meeting Set for Sept. 7
UNITED CIVIL: First Creditors' Meeting Set for Sept. 7

WILBRO CONSULTANTS: First Creditors' Meeting Set for Sept. 6
WILLOW: To Close Shop End of September
WOOLWORTHS LIMITED: To Close 63 Masters Home Improvement Stores


C H I N A

CENTRAL CHINA: Moody's Retains Ba3 CFR on 1st-Half 2016 Results
CHINA XD: S&P Puts 'B+' CCR on CreditWatch Negative
GUANGZHOU R&F: Moody's Retains Ba3 CFR on 1st-Half 2016 Results
HENGDELI: Fin'l Profile Stable Despite Profit Fall, Fitch Says
HONGHUA GROUP: Fitch Lowers LT Issuer Default Rating to CCC

HONGHUA GROUP: Moody's Retains Caa1 CFR on Increased Leverage
JIANGSU NEWHEADLINE: Fitch Rates Proposed USD Notes BB+
SUNAC CHINA: Fitch Affirms 'BB' Issuer Default Rating
YUZHOU PROPERTIES: Moody's Retains B1 CFR on 1H 2016 Results
YESTAR INTERNATIONAL: Moody's Assigns Ba3 CFR, Outlook Stable

YESTAR INTERNATIONAL: S&P Assigns 'BB-' CCR, Outlook Stable



I N D I A

A. S. BETGERI: CRISIL Reaffirms B+ Rating on INR30MM Cash Loan
ASSOCIATED MANUFACTURING: CRISIL Suspends B+ Cash Credit Rating
ATLAS CYCLES: CRISIL Reaffirms 'FC' Rating on INR300MM Loan
BALODIA RICE: CRISIL Assigns B+ Rating to INR22.5MM Cash Loan
BHASKAR TEA: Ind-Ra Lowers Long-Term Issuer Rating to 'D'

DELHI AIRPORT: Moody's Lowers CFR to Ba2, Outlook Stable
EAST COAST DISTRIBUTORS: CRISIL Cuts INR150MM Loan Rating to B-
ELITE PROPERTIES: CRISIL Suspends 'B' Rating on INR100MM Loan
FARIDABAD STEEL: Ind-Ra Assigns BB Long-Term Issuer Rating
GIRDHARILAL MANOHARLAL: CRISIL Hikes INR112.2M Loan Rating to B+

GOWTHAMI INFRATECH: Ind-Ra Suspends D Long-Term Issuer Rating
GRAPE MARKETING: CRISIL Lowers Rating on INR40MM Cash Loan to B
HOPE HEALTHWAYS: Ind-Ra Suspends D Long-Term Issuer Rating
INEX INDUSTRIES: CRISIL Suspends 'D' Rating on INR54.4MM Loan
JAI JAGDAMBA: Ind-Ra Suspends B Long-Term Issuer Rating

K. MAGANLAL: Ind-Ra Affirms 'IND BB+' Long-Term Issuer Rating
KAIRALI EXPORTS: CRISIL Hikes Rating on INR210MM LT Loan to B+
KEYEM ENGINEERING: CRISIL Suspends 'B' Rating on INR125MM Loan
LINK MARBLE: CRISIL Reaffirms 'B' Rating on INR110MM LT Loan
LOKNETE SUNDERRAOJI: CRISIL Assigns 'B+' Rating to INR300MM Loan

MAKKAR TEXTILE: CRISIL Reaffirms 'B' Rating on INR85MM Term Loan
MALVIKA TECHNICAL: CRISIL Assigns B+ Rating to INR6MM Cash Loan
MICRO ORGO: CRISIL Suspends 'B+' Rating on INR110MM Cash Loan
NAAGAAMI INFRATECH: Ind-Ra Assigns 'IND BB-' LT Issuer Rating
NEW RISHIKESH: CRISIL Suspends 'D' Rating on INR50MM Term Loan

PARAS COTSPIN: CRISIL Ups Rating on INR75.8MM LT Loan to B-
PEE GEE: CRISIL Upgrades Rating on INR60MM Cash Loan to 'B-'
R. M. REALTY: CRISIL Suspends 'D' Rating on INR150MM Term Loan
RSA MARINES: CRISIL Assigns 'B+' Rating to INR42.5MM Term Loan
S. D. GURAV: CRISIL Reaffirms 'D' Rating on INR60MM Cash Loan

SAI JYOT: CRISIL Suspends 'D' Rating on INR100MM LT Loan
SANGAM RICE: CRISIL Reaffirms 'B' Rating on INR110MM Loan
SARADA PROJECTS: CRISIL Reaffirms 'B' Rating on INR150MM LT Loan
SIVA ENGINEERING: CRISIL Reaffirms 'D' Rating on INR170MM Loan
SLS MERCANTILE: CRISIL Suspends B+ Rating on INR120MM Cash Loan

SOLAN SPINNING: CRISIL Lowers Rating on INR56MM Cash Loan to D
SRI PADMABALAJI: CRISIL Suspends D Rating on INR490MM Cash Loan
SUBH SANKET: Ind-Ra Suspends B+ Long-Term Issuer Rating
THRIARR POLYMERS: CRISIL Suspends 'C' Rating on INR51.7MM Loan
TIME POLYURETHANE: CRISIL Suspends 'D' Rating on INR37.5MM Loan

VINAYAKA CASHEW: CRISIL Ups Rating on INR120MM Packing Loan to B
VYANKTESH PLASTICS: CRISIL Cuts Rating on INR50MM Cash Loan to B+


I N D O N E S I A

CIKARANG LISTRINDO: S&P Assigns 'BB' Rating on US$550MM Notes


M O N G O L I A

BOGD BANK: Moody's Lowers Foreign Currency Deposit Rating to Caa1
MONGOLIA: Moody's Lowers Issuer Rating to B3 & Puts on Review
TRADE AND DEVELOPMENT: S&P Affirms 'B-' ICR, Outlook Negative


S I N G A P O R E

PACTERA TECHNOLOGY: Moody's Lowers CFR to B2, On Review


S O U T H  K O R E A

HANJIN SHIPPING: Creditors End Support for Shipping Firm
SK E&S: S&P Affirms 'BB+' Rating on Securities; Outlook Negative


                            - - - - -


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


AMORE REALTY: First Creditors' Meeting Slated for Sept. 7
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Amore
Realty Pty Ltd will be held at Hall Chadwick, Level 10, at 575
Bourke Street, in Melbourne, Victoria, on Sept. 7, 2016, at
10:30 a.m.

David Ross and Richard Albarran of Hall Chadwick were appointed as
administrators of Amore Realty on Aug. 26, 2016.


BLACTON STONEMASONRY: First Creditors' Meeting Set for Sept. 6
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Blacton
Stonemasonry Pty Limited will be held at the offices of Worrells
Solvency & Forensic Accountants, Level 2, AMP Building 1 Hobart
Place, in Canberra, on Sept. 6, 2016, at 10:30 a.m.

Stephen John Hundy & Simon John Cathro of Worrells Solvency &
Forensic Accountants were appointed as administrators of Blacton
Stonemasonry on Aug. 25, 2016.


FORTESCUE METALS: S&P Affirms BB CCR & Revises Outlook to Stable
----------------------------------------------------------------
S&P Global Ratings said that it had revised the outlook on the
issuer credit rating on Australia-based mining company Fortescue
Metals Group Ltd. to stable from negative.  At the same, S&P
affirmed the 'BB' corporate credit rating on the company, as well
as the 'BB+' senior secured and 'B+' senior unsecured issue
ratings.  The recovery rating on the senior secured debt issue
remains at '2' and the recovery rating on the senior unsecured
debt remains at '6'.

"We revised the outlook to stable because of Fortescue's improved
resilience to lower iron ore prices, given the company's further
cuts in production costs and repayment of a significant portion of
debt over the year ended June 30, 2016," said S&P Global Ratings
credit analyst Sam Heffernan.

S&P expects Fortescue to maintain adequate buffer in the credit
metrics in line with the current rating.  This could occur even if
iron ore prices (62% iron (Fe) Platts delivered to China) fall to
US$40 per ton over the remainder of 2016 and through 2017, a level
below our current price assumption.

However, in S&P's opinion the company's credit metrics will still
be sensitive to iron ore prices, despite further cuts in its C1
cash costs and absolute debt.  C1 cash costs include the cost of
mining, processing, port, and rail transport, and exclude shipping
costs.  The company's strong operating margins can quickly erode
during prolonged periods of weakness in iron ore prices.  As such,
further reduction in the company's absolute debt levels would
enhance its credit quality.  Over fiscal 2016, Fortescue
repurchased US$2.9 billion of debt using accumulated cash,
generating annual interest savings of US$185 million.

S&P expects Fortescue to continue reducing its production costs to
between US$12 and US$13 per wet metric ton (wmt) though fiscal
2017, due to further production efficiencies the company had
identified.  Over fiscal 2016, its productivity and efficiency
gains have reduced its C1 costs to US$14.31 per wmt for the June
2016 quarter.  S&P forecasts its all-in breakeven costs would be
about US$30 per dry metric ton (dmt) at the end of fiscal 2017.
These costs include interest expense and sustaining capital
expenditure on a 62% Fe Platts price incorporating delivery costs
to China.

With the sustained and our expected decline in the company's
costs, Fortescue is at the lowest end of the cost curve, improving
its resilience to iron ore prices.  The company's production costs
could be the lowest among its peers', although its margins may be
lower due to the grade adjustment on Fortescue's 58% blend versus
62% Fe Platts.  Nevertheless, Fortescue's lack of product and
customer diversity means the company is highly sensitive to
economic growth in China, particularly compared with more
diversified peers such as Rio Tinto PLC and BHP Billiton Ltd.

S&P continues to assess Fortescue's business risk as satisfactory,
based on the company's large-scale iron ore production,
competitive cost position, and long reserve life.  Tempering these
strengths is the company's lack of customer and product diversity.

S&P recently revised upward its price assumption for iron ore.
S&P's price assumptions for iron ore for the rest of 2016 are
US$50 per ton, and US$45 per ton for 2017 and 2018.  This is to
reflect the current positive momentum in China's steel sector,
driven by the government's stimulus measures, and also some delays
in the ramp-up of new capacity.  However S&P don't see any
fundamental changes in the industry supply and demand dynamics and
expect iron ore prices to soften in 2017.

The stable outlook reflects S&P's view that the company has
improved its resilience to lower iron ore prices through continued
cost reduction, operating efficiencies, and progressive debt
reduction.

Mr. Heffernan added: "We view Fortescue's credit metrics have
sufficient headroom at the current rating level to withstand
moderate downside risk in iron ore prices should external
pressures intensify.  This includes our expectation of slower
demand growth from China's struggling steel industry and a
continued increase in the supply of low-cost seaborne iron ore."

S&P could lower the rating if Fortescue's key credit metrics
weaken such that the company's funds from operations (FFO) to debt
falls to about 12% or debt to EBITDA approaches 5x.  This scenario
could occur if benchmark iron ore prices fall below US$40 per ton
for a prolonged period (assuming an 85% realization rate for
Fortescue's products) and the company fails to offset this through
deeper debt or cost reduction.

S&P could raise the rating if Fortescue further reduced its
absolute debt levels and maintains its FFO to debt above 30% and
debt to EBITDA below 3x during periods of increased iron ore price
pressure.  In addition, a higher rating could occur if the
company's growth aspiration or capital management is not more
aggressive than what S&P expects.


HENTSCHKE TRANSPORT: First Creditors' Meeting Set for Sept. 7
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Hentschke
Transport Pty Ltd will be held at the offices of BRI Ferrier,
Level 4, 12 Pirie Street, in Adelaide, on Sept. 7, 2016, at
11:30 a.m.

Des Munro, Stuart Otway, and Andre Strazdins of BRI Ferrier were
appointed as administrators of Hentschke Transport on Aug. 26,
2016.


UNITED CIVIL: First Creditors' Meeting Set for Sept. 7
------------------------------------------------------
A first meeting of the creditors in the proceedings of United
Civil & Structural Pty Ltd will be held at Cliftons Melbourne,
Level 1, at 440 Collins Street, in Melbourne, on Sept. 7, 2016, at
10:30 a.m.

Richard Trygve Rohrt of Hamilton Murphy was appointed as
administrator of United Civil on Aug. 26, 2016.


WILBRO CONSULTANTS: First Creditors' Meeting Set for Sept. 6
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Wilbro
Consultants Pty Ltd will be held at the Boardroom of Chifley
Advisory, Suite 3.04, Level 3, at 39 Martin Place, in Sydney, on
Sept. 6, 2016, at 3:00 p.m.

Gavin Moss & James McPherson of Chifley Advisory were appointed as
administrators of Wilbro Consultants on Aug. 25, 2016.


WILLOW: To Close Shop End of September
--------------------------------------
Eloise Keating at SmartCompany reports that Australian fashion
label Willow will be wound-up at the end of September, after owner
Apparel Group was unable to find a buyer for the brand.

SmartCompany relates that the Willow online store closed on August
29 and according to a notice on the brand's website, its four
stores in Melbourne and Sydney will close their doors in "late
September".

According to the report, Willow was founded by Kit Willow
Podgornik, who continued to work for the label as creative
director until 2013. Apparel Group (APG & Co) acquired the brand
in 2011 and fashion label sat alongside sister brands JAG,
Sportscraft and Saba.

However, APG & Co put Willow on the market earlier this year,
after deciding the brand no longer fit with its long-term
strategy, SmartCompany reports.


WOOLWORTHS LIMITED: To Close 63 Masters Home Improvement Stores
---------------------------------------------------------------
Great American Group (GA), a leading provider of asset disposition
and auction solutions and a subsidiary of B. Riley Financial,
Inc., was appointed by Woolworths Limited to manage the closure of
its Masters Home Improvement Stores in Australia.

Great American Group's Australian subsidiary, GA Australia, will
manage the going-out-of-business sales for all 63 Masters
locations. The sales will offer significant discounts on the
retailer's inventory of appliances, electrical tools, lighting and
other home improvement goods.

"Following a seven-month process and extensive due diligence with
Woolworths advisors, Great American was selected based on our 40-
year track record of helping international specialty retailers
effectively manage complicated situations and maximize the value
of inventories," said Andrew Gumaer, CEO of Great American Group.
"Not only is this is a tremendous opportunity to assist in one of
the largest single liquidations globally, but this is an important
step in Woolworths decision to exit the Masters Home Improvement
Stores."

Kevin Olson, Managing Director of GA Australia added: "We're proud
to have been awarded the privilege of assisting Masters with the
sale of their inventory. Loyal customers and the general public
will be able to shop in stores and receive significant savings on
a wide variety of quality merchandise. Every item in every
department will be discounted until all the merchandise is sold."

Woolworths has stated that it will honor all customer gift cards,
product warranties, returns and lay-bys, and the completion of any
contracted installation projects such as kitchens, bathrooms and
floor coverings. Gift cards can be used at other Woolworths Group
stores and at Masters up until closure.

The going-out-of-business sales are expected to last several weeks
before all of the merchandise is sold in all locations.



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


CENTRAL CHINA: Moody's Retains Ba3 CFR on 1st-Half 2016 Results
---------------------------------------------------------------
Moody's Investor Services says that Central China Real Estate
Limited (CCRE) showed a weakened level of credit metrics in 1H
2016.

But, its Ba3 corporate family and senior unsecured ratings or
their stable outlook are not immediately affected.

"CCRE's revenue/debt and EBIT/interest for the 12 months ended
June 2016 -- including from the company's share in joint
ventures -- weakened on lower revenue recognition and increased
borrowings in 1H 2016," says Kaven Tsang, a Moody's Vice President
and Senior Credit Officer.

"However, we expect its higher level of completed properties for
delivery in 2H 2016 and its improved credit metrics over the next
12-18 months will continue to support its Ba3 corporate family
rating," adds Tsang, who is also the lead analyst for CCRE.

CCRE's revenues fell 35% year-on-year to RMB2.5 billion in 1H
2016.  Moody's estimates that its revenue -- including from its
share of joint ventures -- was down by 19% year-on-year.  Such
declines were mainly due to the company's low level of delivery of
completed properties in 1H 2016.

Adjusted debt -- including from its share in joint ventures --
also rose 14% to RMB19.6 billion at June 2016 from RMB17.2 billion
at year-end 2015 because the company has prefunded part of its
refinancing needs for 2H 2016 and its joint ventures have
increased borrowings to fund their development.

As a result, leverage, as measured by revenue/debt -- including
from its share in joint ventures -- fell to 72% for the 12 months
to end-June 2016 from 86% in 2015.

EBIT/interest coverage -- including from its share in joint
ventures -- dipped to 2.0x for the 12 months to June 2016 from
2.1x in 2015, substantially driven by the decline in revenue.

Moody's expects CCRE to complete 27 projects/phases that have a
gross floor area of 1.85 million sqm, more than the 359,192 sqm
completed in 1H 2016.  Thus, it will recognize a higher level of
revenue in 2H 2016 when compared with 1H 2016.

Moreover, its strong contracted sales of RMB10.7 billion (+58%
year-on-year) and increased average selling price in the first
seven months of 2016 will likely support revenue growth and profit
margins in the next 12-18 months.

Moody's notes that the company's plan to increase management fee
and recurring income through its light-asset model will enhance
income stability and margin.  However, the contribution will
remain small in the next 12-18 months.

Moody's expects revenue/debt -- including from its share in joint
ventures -- will improve to around 80% in the next 12-18 months,
while EBIT/interest -- including from its share in joint
ventures -- will improve to around 2.5x-3.0x.  Such credit metrics
will support the company's Ba3 corporate family rating.

CCRE's liquidity is adequate, as supported by its strong
contracted sales.  It had a cash balance of RMB10.9 billion as of
June 2015.  Adjusted cash/short-term debt -- including amounts due
to and from its joint ventures -- improved to 1.7x at end-June
2016 from 1.5x at end-2015.

The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in April 2015.

Central China Real Estate Limited is a leading property developer
in Henan Province.  Founded in 1992, it listed on the Hong Kong
Stock Exchange in June 2008.


CHINA XD: S&P Puts 'B+' CCR on CreditWatch Negative
---------------------------------------------------
S&P Global Ratings placed its 'B+' long-term corporate credit
rating and 'cnBB-' long-term Greater China regional scale rating
on China XD Plastics Co. Ltd. (CXDC) on CreditWatch with negative
implications.  S&P also placed its 'B' long-term issue rating and
our 'cnB+' long-term Greater China regional scale rating on CXDC's
guaranteed senior unsecured notes on CreditWatch with negative
implications. CXDC is a China-based modified plastics producer
listed on NASDAQ.

"The CreditWatch placement reflects our view that a shortened debt
maturity profile and less than adequate liquidity expose CXDC to
meaningful refinancing risks," said S&P Global Ratings credit
analyst Yuehao Wu.  "The company's balance sheet has materially
weakened.  In addition, we expect its net debt to increase in the
next 12-18 months."

CXDC's reliance on short-term bank loans for working capital
outlays, project expansion, and refinancing of maturing long-term
loans has shortened its debt maturity profile.  The company's
weighted average debt maturity shortened to just above one year as
of June 30, 2016.  Debt of about US$570 million maturing over the
next 12 months represents just under 90% of total reported debt.
Of this, the company's short-term loan more than doubled to about
US$310 million in the first six months of 2016.  Also, CXDC has to
redeem its US$150 million notes originally due in February 2019 by
the end of August 2016.  S&P is uncertain about CXDC's ability to
refinance these maturities with long-dated debt.  The company's
onshore subsidiaries have never raised debt in the domestic
capital market.  Therefore, S&P believes the company will likely
seek to negotiate long-term loans with banks, the progress of
which is uncertain.

S&P continues to assess CXDC's liquidity as less than adequate
because S&P expects the company to generate negative free
operating cash flows over the next 12 months.  As of June 30,
2016, the company's cash and time deposits of US$340 million were
also meaningfully lower than its debt maturity of about
US$570 million.  S&P believes CXDC will have to resort to
additional borrowing to address the liquidity shortfall.  These
potentially new short-term loans would further increase the
pressure on its liquidity.

S&P expects CXDC's net debt (on a reported basis) to increase by
US$50 million more than S&P had previously expected.  Net debt
will almost double to US$340 million-US$360 million by the end of
2016, from that at the end of 2015, because of negative free
operating cash flows for working capital and capital expenditure.
Aggressive working capital outlay of at least US$100 million-
US$120 million, mostly in inventory, in the first half of 2016 has
weakened the cash conversion of CXDC's otherwise good EBITDA
generation.

The CreditWatch placement indicates a one-in-two likelihood of a
downgrade over the next three months.

"We aim to resolve the CreditWatch over the next three months
after we review CXDC's plans to lengthen its debt maturity profile
and protect its balance sheet," said Ms. Wu.

S&P may lower the rating -- most likely by one notch -- if CXDC's
debt maturity profile remains short and poses material refinancing
risk to the company.  A permanent and significant reliance on
short-term debt could indicate such risk.  Another indication
could be lack of articulation of refinancing plans for large long-
term debt maturing over the next 18 months.


GUANGZHOU R&F: Moody's Retains Ba3 CFR on 1st-Half 2016 Results
---------------------------------------------------------------
Moody's Investors Service says that Guangzhou R&F Properties Co.,
Ltd.'s 1H 2016 results are in line with expectations.

There is no immediate impact on its Ba3 corporate family rating
and the rating's stable outlook.

"Guangzhou R&F's 1H 2016 results showed a moderate improvement in
its interest coverage position and liquidity, supported by strong
growth in revenue and contracted sales, a reduction in funding
costs, and prefunding of maturing debt," says Kaven Tsang, a
Moody's Vice President and Senior Credit Officer.

"While Guangzhou R&F's financial metrics remain weak for its Ba3
rating, we expect them to improve in the next 6-12 months as the
company uses the cash raised, mainly from its onshore bond
issuance, to repay debt and continues to manage down funding
costs," adds Tsang.

Guangzhou R&F reported a strong 76% year-on-year growth in
revenues to RMB22.4 billion, which offset the impact of a decline
in its gross margin to 25.4% in 1H 2016 from 29.5% in 1H 2015.

Meanwhile, its contracted sales grew 44% year on year to
RMB29.8 billion in 1H 2016, supported by its focus on first- and
second-tier cities where demand was strong.

Moody's expects that its sales and revenues will continue to
benefit from its well-located land banks, such as those in
Beijing, Shanghai, Tianjin, and Guangzhou.

Guangzhou R&F's adjusted debt (including perpetual capital
securities) rose to RMB113 billion as of June 2016 from RMB93.5
billion as of December 2015 as the company prefunded its debt
repayments for the next 6-12 months.

As a result, revenue/adjusted debt (including perpetual capital
securities) only edged up to 48% for the 12 months to June 2016
from 47% as of December 2015.

Despite an increase in total adjusted debt (including perpetual
securities), lower funding costs helped improve EBIT/interest to
2.5x for the 12 months ended June 2016 from 2.3x for the full year
of 2015.

Moody's expects Guangzhou R&F's revenue/adjusted debt (including
perpetual capital securities) to trend up to 55%-60% in the next
12-18 months, as the company repays maturing debt with cash and
continues its disciplined approach to land acquisitions.  This
level remains weak for its Ba3 rating.

EBIT/interest will also improve to around 2.5x-3.0x in the next
12-18 months, as gross margins will likely rise in 2H 2016 against
the company's planned recognition of a higher proportion of high-
margin products and lower funding costs.

The company has actively managed down its financing cost by
issuing onshore corporate bonds over the last 12-18 months.  It
issued RMB27.3 billion of onshore bonds in 1H 2016 after issuing
RMB6.5 billion in 2015, mainly to refinance its high-cost
financing, including its perpetual capital securities.

As a result, its weighted average cost (including perpetual
capital securities) fell to 6.68% in June 2016 from 8.13% in 2015.

In addition, Guangzhou R&F has significantly slowed its land
acquisitions since 2015.  In 1H 2016, it acquired seven pieces of
land with an attributable premium of RMB5.5 billion.

Moody's expects it to keep its land investments at a manageable
level in the next 12 months, given that it has a sufficient land
bank to support development for the next 3-4 years.

Guangzhou R&F's liquidity is adequate.  Its cash holding rose to
RMB37.3 billion as of June 2016 from RMB21.3 billion as of
December 2015, resulting in cash/short-term debt coverage of
1.25x.  Most of the incremental cash will be used for refinancing.

The principal methodology used in this rating was Homebuilding And
Property Development Industry published in April 2015.

Established in 1994 and listed on the Hong Kong Stock Exchange in
2005, Guangzhou R&F Properties Co., Ltd. is a mid-sized developer
in China's residential and commercial property sector.  As of June
2016, the company's land bank totaled 38.2 million square meters
(sqm) in attributable saleable area, spread across 31 locations:
28 in cities and areas in China, one in Malaysia and two in
Australia.  Mr. Li Sze Lim and Mr. Zhang Li are the company's co-
founders and own 33.52% and 32.02% in equity interests,
respectively.


HENGDELI: Fin'l Profile Stable Despite Profit Fall, Fitch Says
--------------------------------------------------------------
The financial profile of China-based watch retailer, Hengdeli
Holdings Limited (Hengdeli; B+/Stable), remains stable despite the
difficult operating environment, says Fitch Rating. The agency
expects Hengdeli to generate positive FCF in 2016, as lower
inventory, capex and interest costs help offset weak revenue and
margins.

Hengdeli's cash flow from operation was aided by a CNY289 million
decline in inventory in 1H16, as the company was able to return
some slow-moving watch models to its major suppliers. Hengdeli
expects a further drop in inventory in 2H16. Capex needs are
limited, at around 1% of revenue in 2016 and 2017. In addition,
the company did not pay a final dividend after its 2015 results
and Fitch believes management may not declare a dividend for 2016
unless operations improve significantly.

Fitch expects FFO-adjusted net leverage to remain elevated at 4x-
5x over the next year or two, as FFO, which does not take into
account working capital movements, shrinks in line with EBITDA.
However, positive FCF should allow Hengdeli to gradually lower its
debt and the company has cut its interest costs by repurchasing
36% of its outstanding senior notes in June and replacing them
with lower-cost bank loans.

There are signs that watch sales in Hong Kong and China are
beginning to stabilise. According to Hengdeli's management, the
yoy revenue decline started to narrow in July and August in all
the company's major markets, which echoes comments by some other
retailers. That said, data points continue to paint a mixed
picture and Fitch does not expect a recovery within the next year
or two.


HONGHUA GROUP: Fitch Lowers LT Issuer Default Rating to CCC
-----------------------------------------------------------
Fitch Ratings has downgraded China-based drilling rig manufacturer
Honghua Group Limited's Long-Term Issuer Default Rating (IDR) to
'CCC' from 'B-'. Its senior unsecured rating has also been
downgraded to 'CCC' from 'B-', with a Recovery Rating of 'RR4'. No
Outlook has been assigned to the IDR.

The downgrade reflects substantial weakness in operations and
financials in a sharp industry downturn. The company failed to
unlock cash from working capital to reduce debt as revenue dropped
dramatically. Operational scale has shrunk rapidly due to muted
demand, and is not likely to recover under current market
conditions. Liquidity is not an immediate issue, but the company
has on offshore bond due in 2019, which may be difficult to
refinance without significant recovery in the oil and gas
exploration industry.

KEY RATING DRIVERS

Weak 1H16 Results: Honghua's 1H16 results turned weaker from a low
base. Revenue declined by 42% yoy to CNY1.3 billion, and EBITDA
turned negative. As its operating scale fell, net debt remains as
high as CNY3.1 billion (2015: CNY3.1 billion). The company has to
rely on rolling over existing debt to sustain liquidity.

Adverse Operating Environment: Fitch expects the weak operating
environment to persist. The sustained soft global oil prices have
affected the oil and gas value chain, and Honghua's operations are
challenged by both a shrinking order book and margin pressure. The
company's clients still remain cautious on capacity expansion even
with the recent price recovery, with a focus on capital
preservation.

No Immediate Liquidity Pressure: Fitch believes liquidity would
not become a major problem in the next 6-12 months. Honghua has
CNY2.3 billion of debt due within one year, with CNY1.3 billion
cash on hand and CNY11.4 billion in unused banking facilities. The
local government has helped in securing bank refinancing of short-
term loans. Moreover, Honghua appears to be maintaining
relationships with a number of major banks, and its average
financing cost is down compared with 2015.

Uncertainty Surrounding Debt Repayment: Honghua has a USD200
million offshore bond maturing in September 2019, which might be
challenging to refinance unless market conditions improve
significantly. It is highly unlikely that meaningful FCF would be
generated in the interim to repay the bonds.

KEY ASSUMPTIONS

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

   -- Working capital requirement to decrease following the
      falling revenue
   -- Non-core operating segments to stay cash flow neutral-
      Short-term bank loan will be rolled over every year

RATING SENSITIVITIES

Positive: Developments that may, individually or collectively,
lead to positive rating action include:

   -- Sustained improvement in order book, revenue growth and
      margin

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

   -- Increasing pressure on liquidity


HONGHUA GROUP: Moody's Retains Caa1 CFR on Increased Leverage
-------------------------------------------------------------
Moody's Investors Service says that Honghua Group Limited's
increased financial leverage for the 12 months ended June 30,
2016, has no immediate impact on its Caa1 corporate family and
Caa2 senior unsecured bond ratings.

The ratings outlook remains negative.

"Honghua's financial leverage increased in 1H 2016, driven mainly
by weaker earnings as persistently low global oil prices reduced
the demand for its land drilling rigs and oil and gas engineering
services," says Chenyi Lu, a Moody's Vice President and Senior
Analyst.

"Honghua's financial and liquidity positions remain weak for the
parameters of its Caa1 rating category, and we expect its leverage
to increase slightly over the next 12-18 months," adds Lu.

The company's adjusted debt/EBITDA rose to about 18x for the 12
months ended June 30, 2016, from 12.7x in 2015, mainly due to a
decrease in EBITDA and despite a slight drop in its adjusted debt
to RMB4.5 billion at end-June 2016 from RMB4.8 billion at end-
2015.

The persistent low global oil prices resulted in lower revenue and
a weaker adjusted EBITDA margin.  Honghua's revenue fell by 42%
year-on-year to RMB1.3 billion in 1H2016, underpinned mainly by
lower revenues from land drilling rigs (down by 76%) and oil and
gas engineering services (down by 46%) as its customers lowered
exploration and production spending in response to the lower
global oil prices.  Its adjusted EBITDA margin also dropped to
8.6% in 1H 2016 from 10.3% in 1H 2015.

Moody's expects adjusted debt/EBITDA to increase to about 19.0x-
21.0x over the next 12-18 months, driven by: (1) a mid-30% decline
in revenue in 2016, owing to continued low exploration and
production spending by its customers, and mid-single-digit revenue
growth in 2017; (2) an adjusted EBITDA margin maintained at the
current level, driven by cost and expense controls, including
additional headcount reductions; and (3) relatively stable debt
levels, underpinned by lower capital expenditure to maintain its
operations.

This ratio is weak for the Caa1 rating category, and is reflected
in the negative ratings outlook.

Honghua's liquidity position also remains weak.  Unrestricted
cash/short-term debt fell to 28% at end-June 2016 from 47% at end-
2015.  Given its weak liquidity levels and overall weak financial
profile, Moody's expects Honghua's refinancing risk to remain
elevated.

The principal methodology used in these ratings was Global
Oilfield Services Industry Rating Methodology published in
December 2014.

Honghua Group Limited listed on the Stock Exchange of Hong Kong in
2008.  It is a wholly owned and major subsidiary of Sichuan
Honghua Petroleum Equipment Co., Ltd. (unrated).  It was formerly
known as Chuanyou Guanghan Honghua Co. Ltd., which was founded in
1997.

Honghua Group manufactures land-based drilling rigs and equipment,
offshore drilling platforms, and equipment packages.  It also
engages in oil and gas engineering services.


JIANGSU NEWHEADLINE: Fitch Rates Proposed USD Notes BB+
--------------------------------------------------------
Fitch Ratings has assigned Jiangsu NewHeadLine Development Group
Co., Ltd's (Jiangsu NHL, BB+/Stable) proposed senior unsecured US
dollar notes an expected rating of 'BB+(EXP)'.

The final ratings on the notes are contingent upon the receipt of
final documents conforming to information already received.

KEY RATING DRIVERS

The notes will be issued by a wholly owned subsidiary of Jiangsu
NHL, ZHIYUAN Group (BVI) Co., Ltd., and will be unconditionally
and irrevocably guaranteed by HK Zhiyuan Group Limited, also a
wholly owned subsidiary of Jiangsu NHL. The notes will be senior
unsecured obligations of HKZY and rank pari passu with all its
other obligations.

Jiangsu NHL has granted a keepwell and liquidity support deed and
a deed of equity interest purchase undertaking in place of a
guarantee to ensure HKZY has sufficient assets and liquidity to
meet its obligations under the guarantee for the notes.

The notes are rated at the same level as Jiangsu NHL's Issuer
Default Rating, due to the strong link between Jiangsu NHL and
HKZY and because the keepwell and liquidity support deed and deed
of equity interest purchase undertaking transfer the ultimate
responsibility of payment to Jiangsu NHL.

Fitch sees the keepwell and liquidity support deed and the deed of
equity interest purchase undertaking as signalling a strong
intention from Jiangsu NHL to ensure HKZY has sufficient funds to
honour the debt obligations. The agency also believes Jiangsu NHL
intends to maintain its reputation and credit profile in the
international offshore market and is unlikely to default on its
offshore obligations. In addition, a default by HKZY could have
significant negative repercussions on Jiangsu NHL for any future
offshore funding.

Jiangsu NHL's ratings are credit-linked to Lianyungang
Municipality, located in China's north-eastern Jiangsu Province.
This is reflected in the 100% state-ownership of Jiangsu NHL,
strong municipal oversight of its financials and strategic
importance of the entity's operation to the municipality.

RATING SENSITIVITIES

Any rating action on Jiangsu NHL will result in similar rating
action on the rated bonds issued by ZHIYUAN Group (BVI) Co., Ltd.

An upgrade of Fitch's credit view on Lianyungang Municipality, as
well as a stronger or more explicit support commitment from the
municipality, may trigger positive rating action on Jiangsu NHL.

Significant weakening of Jiangsu NHL's strategic importance to the
municipality, dilution of the municipality's shareholding to below
75% or reduced explicit and implicit municipality support may
result in a downgrade. A downgrade could also result from a weaker
fiscal performance or increased indebtedness of the municipality,
leading to deterioration in the sponsor's internally assessed
creditworthiness and, as a result, of Jiangsu NHL's ratings.


SUNAC CHINA: Fitch Affirms 'BB' Issuer Default Rating
-----------------------------------------------------
Fitch Ratings has affirmed China-based property developer Sunac
China Holdings Limited's (Sunac) Long-Term Foreign-Currency Issuer
Default Rating (IDR) at 'BB'. The Outlook is Stable. Fitch has
also affirmed Sunac's senior unsecured rating and the rating on
its outstanding USD400 million 8.75% senior notes due 2019 at
'BB'.

Sunac started expanding rapidly in 2H15, and since then has
entered 15 new cities through acquisitions and land auctions. The
homebuilder maintained low leverage of 26.4% at end-2015, giving
it the headroom for large-scale land acquisitions. However, as its
leverage has surged in the past year, Fitch believes Sunac is
exhausting its buffer and will closely monitor key ratios in 2H16
to see if further expansion will significantly increase the
company's credit risks.

KEY RATING DRIVERS

Aggressive Nationwide Expansion: Sunac's business strategy to
establish nationwide operations in major Tier 1 and Tier 2 cities,
from its more regional focus previously, can enhance its business
profile if successfully executed. Sunac has a good record in
geographical expansion, but the rapid pace in the current market
conditions comes at significant market risk. Margin uncertainty as
a result of policy intervention in response to sharp rises in
housing prices can derail Sunac's business plans.

This is mitigated by the reasonable prices of most of the land
that Sunac acquired in the past year; particularly land acquired
from other developers. Fitch will closely monitor Sunac's sales
performance in the new markets it entered.

Expansion Exhausting Leverage Buffer: Fitch estimates Sunac's
leverage, measured by net debt/adjusted inventory, will exceed 40%
by end-2016, compared with 26.4% at end-2015. The homebuilder's
low leverage and strong liquidity in 2015 supported its recent
expansion, but the buffer could be quickly eroded at its current
land acquisition pace. Sunac acquired over 13 million square
metres (sq m) of attributable gross floor area (GFA) so far in
2016, which will increase its total attributable land bank of 18
million sq m at end-2015 by 70%. The attributable land bank
acquired in 1H16 was about 4x of attributable GFA sold in the same
period.

Margins Remain Subdued. "The homebuilder's margins are under
pressure, as the company has sacrificed higher margins to achieve
its fast expansion. We estimate Sunac's EBITDA margin in 2016 at
around 20%, excluding the effect of acquisition revaluations.
Fitch expects the homebuilder's EBITDA margin to remain in the
high-teens to low-twenties over the next 12-18 months, taking into
account the estimated margins of the land and projects it has
acquired since 2015. We believe any operational cost savings from
greater economies of scale from the company's nationwide expansion
would be marginal relative to the surging land costs," Fitch said.

Sales Efficiency Supports Liquidity: Sunac's high sales efficiency
generates strong cash inflow that could support its increased
leverage of around 40%. The company's contracted sales surged 149%
yoy to CNY36 billion in 1H16 and sales are likely to remain robust
as the company has been building a nationwide operation, with over
150 projects in 26 cities. Sunac's sales efficiency of 1.0x,
measured by attributable contracted sales/total debt, together
with a contracted sales cash collection rate of over 90%, enhances
the homebuilder's cash inflow and supports its liquidity against
the recent leverage increase.

KEY ASSUMPTIONS

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

   -- continued nationwide expansion in 2H16, slowing from 2017

   -- increasing contracted sales following the company's land
      acquisition scale in the past year

   -- higher average land costs due to limited land supply and
      potentially fierce competition for land acquisitions in
      targeted cities

   -- EBITDA margin, excluding the effect of acquisition
      revaluations, remaining under pressure and hovering in the
      high-teens to low twenties over the next 12-18 months.

RATING SENSITIVITIES

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

  -- net debt/adjusted inventory sustained above 45% (2015: 26%)

  -- attributable contracted sales/adjusted inventory sustained
     below 0.8x (2015: 0.8x)

  -- EBITDA margin, excluding the effect of revaluation of
     acquisitions, sustained below 18% (2015:19%)

  -- significant increase in JVs and associates leading to
     structural subordination of cash flows.

Positive: Future developments that may, individually or
collectively, lead to positive rating action include:

   -- contracted sales sustained above CNY100 billion on an
      attributable basis and the establishment of core markets in
      multiple regions

   -- net debt/adjusted inventory sustained below 35%

   -- EBITDA margin, excluding the effect of revaluation of
      acquisitions, sustained above 23%

Fitch does not expect the company to achieve the above positive
guidelines in 2016.


YUZHOU PROPERTIES: Moody's Retains B1 CFR on 1H 2016 Results
------------------------------------------------------------
Moody's Investors Service said that Yuzhou Properties Company
Limited's 1H 2016 results support its B1 corporate family and
senior unsecured debt ratings.  The ratings outlook remains
stable.

"Yuzhou Properties' growing operating scale, improving geographic
diversity, robust profitability and strong liquidity position will
remain well positioned relative to its B1 peers," said Franco
Leung, a Moody's Vice President and Senior Credit Officer, and
also the International Lead Analyst for Yuzhou.

While Yuzhou's 1H 2016 revenue rose 18% of year on year to
RMB4.1 billion, Moody's expects revenue recognition to increase
meaningfully in the next 1-2 years, supported by robust sales
growth.

The company's contracted sales in 1H 2016 reached RMB12.9 billion,
representing a 124% increase compared to 1H 2015.

Approximately 66% of the contracted sales in 1H 2016 came from
cities outside its home market of Xiamen.  Moody's expects its
geographic diversification to further improve in the next few
years with 80% of its land bank at end-June 2016 situated outside
Xiamen.

In addition, Yuzhou maintained a high gross profit of 32.5% in 1H
2016, outperforming its industry peers.

Accordingly, EBIT/interest coverage increased to 3.2x in the 12
months to June 2016 from 2.9x in 2015.  Moody's expects this ratio
to remain stable at around 3.0x-3.5x in all of 2016.  Such a level
positions it well relative to its B1 peers.

However, Yuzhou has been active in land acquisitions following its
strong sales performance.  It purchased eight plots of land for a
total RMB15.2 billion in the first seven months of 2016 compared
to a total spend of RMB8.6 billion for all of 2015.

Moody's estimates that the required land payment attributable to
the company will be around RMB10-13 billion for 2016.

As a result, Yuzhou's adjusted debt increased by 17% to RMB23.5
billion at end-June 2016 from RMB20.1 billion at end-2015.
Revenue/adjusted debt remained weak at 47% in the 12 months to
June 2016.

Moody's expects the ratio to recover to 60%-65% for the full year
of 2016 and gradually trend towards 70%-75% in the next 12-18
months on the back of growing revenue from strong contracted sales
in 2015 and 1H 2016.

"Yuzhou's liquidity position remains strong, despite its increased
land investments.  Its large cash balance also provides
flexibility in terms of managing leverage," adds Cindy Yang, a
Moody's Analyst and the Local Market Analyst for Yuzhou.

Yuzhou maintains an adequate liquidity profile.  Its cash balance
of RMB15.7 billion at end-June and strong contracted sales
performance will enable it to meet its short-term debt obligations
of RMB5.7 billion as well as its committed land premiums.

The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in April 2015.

Yuzhou Properties Company Limited is a property developer that
focuses on residential housing in West Strait Economic Zone and
Yangtze River Delta.  The company recently moved its headquarters
to Shanghai from Xiamen.  At end-June 2016, it had a land bank of
over 9.04 million square meters in terms of total saleable GFA.
Of this land bank, 53% were in the Yangtze River Delta, 44% in the
West Strait Economic Zone, and 3% in the Pan-Bohai Rim.


YESTAR INTERNATIONAL: Moody's Assigns Ba3 CFR, Outlook Stable
-------------------------------------------------------------
Moody's Investors Service has assigned a first-time Ba3 corporate
family rating to Yestar International Holdings Company Limited.

The rating outlook is stable.

                        RATINGS RATIONALE

"Yestar's Ba3 rating reflects the company's strengthening
positioning in the distribution of medical consumable products in
China, its strong and sustainable partnership with leading global
players, a risk-controlled M&A strategy, and prudent financial
management," says Gloria Tsuen, a Moody's Vice President and
Senior Analyst.

"At the same time, the rating is constrained by the company's
modest size with high supplier concentration, relatively short
operating history in distributing in vitro diagnostic products
(IVD), and high cash investment requirements as it continues to
pursue growth," adds Tsuen, also the Lead Analyst for Yestar.

Established in 2000, Yestar is the largest partner of FUJIFILM
Holdings Corporation (A1 stable) for film products in China,
including medical, dental and industrial film, in addition to
color photographic film.  In addition, through acquisitions in
2014 and 2015, it has become a key distributor of high-margin IVD
consumables for Roche Holding AG (A1 stable) in Shanghai, Jiangsu
and Anhui.  Yestar also distributes IVD products for Thermo Fisher
Scientific Inc. (Baa2 stable) and Becton, Dickinson and Company
(Baa2 stable).

Between IVD products, medical and dental film, medical consumables
represented 68% and 75% of Yestar's revenue and gross profits
respectively in 2015.  Moody's expects their contribution to
increase to 83% and 88% of the company's revenue and gross profits
respectively by 2018.

Use of medical imaging and IVD is increasing given China's growing
demand for healthcare services as well as increasing investments
in the country's medical facilities.  Yestar is well positioned in
the segment given its relationships with Roche and Fujifilm.
Roche is the leading IVD supplier in China with a 24% market share
in 2015 that is expected to increase to 28% by 2018 (according to
Renub Research), while Fujifilm was among the top five largest
medical film suppliers (according to Frost & Sullivan as of 2012).

Yestar also has manufacturing capabilities in the film segment, as
the only processor for Fujifilm in China in color photographic
paper, medical film, and industrial printed wiring board (PWB)
film.  Its three factories in Guangxi also make industrial non-
destructive testing (NDT) x-ray film and dental film under the
company's own "Yes!Star" brand.

Although Yestar's partnership with Roche started only in 2014, the
company has demonstrated its ability to cultivate strategic long-
term supplier relationships given its success with Fujifilm over
the past 15 years.

Moreover, although Yestar does not have exclusive long-term
supplier contracts with Roche or other IVD suppliers, business
risk is reduced by the company's access to and the stickiness of
end-customers.  These end-customers include hospitals, clinics and
sub-distributors that typically have long-term contracts with
Yestar.

Yestar will seek further acquisitions to build up its scale in IVD
and expand into new geographies.  The company is prudent with its
M&A activities, however, as it structures its deal terms to
minimize execution and financial risks.

In both of its completed acquisitions in IVD, Yestar initially
acquired a 70% stake, and the remainder only after certain net
profit targets are met after three years.  The two acquisitions
were also financed using a mix of cash, new equity issuance and
bank loans, in order to control leverage.

Yestar's rating is constrained by its small size (around $378
million in revenue in 2015) relative to its rated global
healthcare peers.  It is also heavily dependent on two key
supplier relationships -- Fujifilm and Roche -- which respectively
drove over 60% and over 30% of the company's revenue in 2015.

Yestar is also a relative newcomer in IVD distribution, although
it has built up experience working with healthcare providers
through its medical and dental film business.  Moody's further
notes that healthcare is a heavily regulated industry in China,
and that there are regulatory risks.

Yestar's operating cash flows are solid and can cover its rising
working capital due to the high receivable days associated with
its growing IVD segment, modest capex and a 30%-50% dividend
payout ratio.

Moody's expects Yestar to manage its leverage -- as measured by
adjusted debt/EBITDA -- at around 2.7x in 2016, declining towards
2.5x in 2018, as the company prefunds its acquisition-related cash
outlays this year.

Yestar's liquidity is adequate.  Its RMB385 million in cash at
end-June 2016 and projected cash flow from operations of around
RMB 160 million over the next 12 months -- supported by solid
EBITDA generation -- more than cover its RMB320 million short-term
debt, as well as capex and dividends that Moody's estimates will
be around RMB130 million.  However, the company will need to
obtain funding for any new acquisitions.

The stable outlook reflects Moody's expectation that Yestar will
maintain (1) its stable relationships with its key suppliers and
customers, (2) a steady film business, while its IVD consumable
business continues to grow, (3) a prudent M&A strategy and
financial management (including prefunding of M&A and no change to
existing dividend policy), (4) strong corporate governance.

Given the short history of Yestar's IVD business and the company's
small scale, an upgrade is unlikely in the near term.
Nevertheless, upward rating pressure could emerge if Yestar
continues to build a strong M&A and execution track record, grows
its scale, and diversifies its key supplier relationships.

Credit metrics indicative of upward rating pressure include
adjusted debt/EBITDA below or around 2.0x, and retained cash flow
(RCF)/debt above 20% on a sustained basis.

On the other hand, downward rating pressure could emerge if
Yestar's operating performance and/or financial profile
deteriorate, due to (1) weakening key supplier relationships, (2)
a decline or significant competitive landscape change in the film
or IVD market, (3) the pursuit of a more aggressive financial
management policy or failure to maintain sound corporate
governance.

Credit metrics indicative of downward rating pressure include
adjusted debt/EBITDA above 3.0x or RCF/debt below 12%.

The principal methodology used in this rating was Distribution &
Supply Chain Services Industry published in December 2015.

Headquartered in Shanghai and listed on the Hong Kong Stock
Exchange since October 2013, Yestar International Holdings Company
Limited is the largest distributor of Fujifilm products in China
and has been transforming itself into a high-margin medical
consumables manufacturer and distributor since 2014.

It generated about $378 million in revenue in 2015.

As of June 28, 2016, Yestar was owned 62% by its founder, chairman
and CEO Mr. James Hortono and his siblings, and 38% by public
shareholders.  Among its public shareholders are global healthcare
investors, including OrbiMed Global Healthcare Master Fund, L.P.
(unrated) and Vivo VII Galaxy Investment Limited (unrated).


YESTAR INTERNATIONAL: S&P Assigns 'BB-' CCR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings said that it had assigned its 'BB-' long-term
corporate credit rating to Yestar International Holdings Co. Ltd.
The outlook is stable.  S&P also assigned its 'cnBB+' long-term
Greater China regional scale rating to the company.

Yestar distributes Roche and BD branded in-vitro-diagnostic (IVD)
products in Shanghai and in Jiangsu and Anhui provinces.  The
company also processes and distributes photographic papers and
industrial imaging products, and processes medical films primarily
for Fujifilm Holdings Corp. in China.

"The rating on Yestar reflects the company's concentrated service
offerings and high reliance on a limited number of suppliers when
compared with its global peers," said S&P Global Ratings credit
analyst Shalynn Teo.  "These weaknesses are tempered by robust
industry growth in the IVD market, the good market position of
Yestar's Fujifilm distribution business, and the company's long
and established relationship with Fujifilm."

S&P expects Yestar's IVD distribution business to remain its
largest revenue source as the company continues to consolidate IVD
distribution in China.  S&P anticipates IVD distribution will
account for more than 50% of Yestar's revenue and over 60% of the
gross profits in 2016.

In S&P's view, Yestar has a short operating record in the IVD
distribution business and faces integration risks following its
recent acquisitions.  It transformed into an IVD distributor only
after the acquisitions of Jiangsu Uno Technology Development Co.
Ltd. and Shanghai Emphasis Investment Management Consulting Co.
Ltd. in the past two years.  S&P believes it will take time for
Yestar to demonstrate a proven record of integrating the acquired
IVD business, especially after the three-year period when the
original founders of the acquired companies are allowed to sell
their remaining interests to Yestar.  In addition, Yestar has
limited geographical diversity.

As one of the largest distributors for Roche in China, Yestar
benefits from Roche's good brand recognition in the region.
Yestar's market position is supported by the established
distribution network it acquired.  The company also benefits from
healthy growth in the IVD market in China due to the low base and
rising healthcare demand.

Yestar also has an established market position in film
distribution in China, thanks to its long-term relationship with
Fujifilm, its established sales force and distribution network, as
well as good operating track record.

The color photographic papers industry will likely continue to
face limited growth, primarily due to the digitalization trend.

S&P anticipates that Yestar's EBITDA margin will increase to 15%-
16% over the next two years, from 14.5% in 2015, due to the
increasing contributions from Shanghai Emphasis' IVD business,
which has higher margins.  However, Yestar's profitability could
face some pricing pressure over the longer term because of
intensifying competition in the IVD business and a government-
policy-induced decline in IVD product sales prices.

S&P expects Yestar to show prudent financial discipline amid its
acquisitions in the IVD distribution business.  Following the
company's potential bond issuance in late 2016 to fund the
acquisitions, S&P anticipates that its debt-to-EBITDA ratio will
temporarily increase to 4.5x-5.0x, from 3.0x in 2015.  S&P expects
the ratio to improve to about 3.3x-3.8x in 2017 as revenue from
the potential acquisitions starts to kick in while Yestar
carefully manages the pace and financing of future expansion.  The
company has an earn-out arrangement for its acquisition of the 70%
interests in Jiangsu Uno and Shanghai Emphasis.  Yestar granted
put options to the original founders to sell their remaining 30%
non-controlling interest after they fulfilled profit targets
within three years.  S&P considers these earn-outs as potential
cash-outflow and include them in its adjusted debt figure.

"The stable outlook reflects our expectation that Yestar will
maintain its good growth and profitability over the next 12
months," said Ms. Teo.  "We expect the company's debt-to-EBITDA
ratio to rise to 4.5x-5.0x following the potential bond issuance
in 2016.  However, we anticipate leverage to materially improve in
2017 after the new acquisitions are fully consolidated and given
Yestar's continued good organic growth."

S&P also expects the company to maintain good financial discipline
and carefully manage the pace of acquisitions and funding sources,
such that its debt-to-EBITDA ratio declines and consistently stays
below 4x from 2017 onward.

S&P may lower the rating if Yestar: (1) pursues debt-funded
acquisitions in a more aggressive manner than S&P expects; (2)
takes longer than S&P anticipates to integrate the newly acquired
companies; or (3) has lower profitability than S&P estimates due
to intensified competition, such that its debt-to-EBITDA ratio
stays above 4.0x in 2017 without signs of significant improvement.

Rating upside is limited in the next 12 months unless the company
demonstrates a significantly faster and more material deleveraging
plan than S&P anticipates.

Over the longer term, S&P could raise the rating if the company
demonstrates a longer track record of prudent financial management
and improves its leverage profile, such that its debt-to-EBITDA
ratio decreases to below 3.0x on a sustained basis.



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


A. S. BETGERI: CRISIL Reaffirms B+ Rating on INR30MM Cash Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of A. S. Betgeri continues
to reflect ASB's modest scale of operations, large working-capital
requirements, and susceptibility to risks related to intense
competition in the civil construction industry. These rating
weaknesses are partially offset by above-average financial risk
profile albeit constrained by small net worth, and the extensive
experience of the promoters' in the civil construction industry.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bank Guarantee          50       CRISIL A4 (Reaffirmed)
   Cash Credit             30       CRISIL B+/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that ASB will continue to benefit over the medium
term from its experienced management. The outlook may be revised
to 'Positive' if the firm diversifies and improves its scale of
operations and profitability on a sustainable basis, leading to
improvement in its business and financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case its
financial risk profile deteriorates owing to reduced revenue and
margins, or if the firm undertakes a large debt-funded capital
expenditure programme, or if there is a delay in receipt of bills
from various principals.

Set up in 1995 by Mr. A S Betgeri as a proprietorship firm, ASB
undertakes civil construction works of buildings primarily for the
Karnataka Public Works Department.


ASSOCIATED MANUFACTURING: CRISIL Suspends B+ Cash Credit Rating
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Associated Manufacturing LLP (formerly Associated Manufacturing
Company, AML).

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit             55       CRISIL B+/Stable
   Letter of Credit        20       CRISIL A4

The suspension of ratings is on account of non-cooperation by AML
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, AML is yet to
provide adequate information to enable CRISIL to assess AML'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'

Associated Manufacturing LLP, is manufacturing of precision sheet
metal components for wide range of applications. Established in
1979, AMLLP is an ISO/TS 16949 certified organization with state-
of-the-art facility spread over 100,000 Sq. Ft. at Chakan, Pune.


ATLAS CYCLES: CRISIL Reaffirms 'FC' Rating on INR300MM Loan
-----------------------------------------------------------
CRISIL's rating on the fixed deposit programme of Atlas Cycles
(Haryana) Limited continues to be based only on publicly available
information as the company has not cooperated with CRISIL in its
surveillance process.

                               Amount
   Facilities                (INR Mln)     Ratings
   ----------                ---------     -------
   Fixed Deposit Programme       300        FC (Reaffirmed)

The rating continues to reflect stretched liquidity as weak
operating profitability led to low cash accrual. Financial risk
profile is below average because of weak debt protection metrics.
These rating weaknesses are partially offset by the established
Atlas brand, backed by a long track record, and promoters'
extensive experience, in the bicycle industry.

Atlas was originally incorporated as Atlas Industries Ltd in 1951,
promoted by Mr. Janki Das Kapur; the name was changed in fiscal
2003. The company manufactures bicycles for the domestic and
export markets under the Atlas brand. Its manufacturing facilities
are in Sonipat, Haryana, and Sahibabad, Uttar Pradesh. It also
manufactured tubes at its plant in Bawal, Haryana; however,
operations at this unit and at the bicycle unit in Malanpur,
Madhya Pradesh, were shut down in fiscal 2015. Atlas is listed on
National Stock Exchange (NSE) and Bombay stock Exchange (BSE).

For the nine months through December 2015, revenue was INR4428.4
million, a decline of around 7% as compared with the corresponding
period of the previous year, and there was a net loss of INR58.5
million.

On provisional basis, for the first quarter (April to June) of
fiscal 2017, net profit was INR12.4 million on sales of INR1688.7
million. Atlas's net loss was INR189.5 million on net sales of
INR6072.7 million in fiscal 2015, as against a net loss of
INR100.8 million on net sales of INR6689.4 million in fiscal 2014.


BALODIA RICE: CRISIL Assigns B+ Rating to INR22.5MM Cash Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Balodia Rice Mill.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Term Loan              16.6      CRISIL B+/Stable
   Proposed Long Term
   Bank Loan Facility      0.9      CRISIL B+/Stable
   Bank Guarantee         30.0      CRISIL A4
   Cash Credit            22.5      CRISIL B+/Stable

The ratings reflect a modest scale of operations in the highly
fragmented and intensely competitive rice industry and
vulnerability of operating profitability to fluctuation in raw
material prices and to government regulations. The ratings also
factor in a below-average financial risk profile because of high
gearing and a small networth. These weaknesses are partially
offset by the extensive experience of the firm's promoters in the
rice milling business and an established and diversified customer
base.

Outlook: Stable

CRISIL believes BRM will maintain its business risk profile over
the medium term backed by the extensive industry experience of its
promoters and diversified customer base, along with stable demand
for rice. The outlook may be revised to 'Positive' if there is a
substantial and sustained increase in scale of operations and cash
accrual, or infusion of significant equity, along with improved
working capital management, leading to a better financial risk
profile. The outlook may be revised to 'Negative' if lower-than
expected accrual, a stretched working capital cycle, or any large,
debt-funded capital expenditure weakens the financial risk
profile, particularly liquidity.

Established in December 1994, BRM is managed by its partner Mr.
Pawan Agarwal along with his son Mr. Akhil Agarwal and his brother
Mr. Manoj Agarwal. The firm mills non-basmati rice under its own
brand as well as on a job-work basis for Food Corporation of India
Ltd. Its manufacturing facility is at Saraipali, in the Mahasamund
district of Chhattisgarh.


BHASKAR TEA: Ind-Ra Lowers Long-Term Issuer Rating to 'D'
---------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Bhaskar Tea &
Industries Private Limited's (BTIL, earlier known as Bhaskar Tea &
Industries Limited) Long-Term Issuer Rating to 'IND D' from
'IND B-'.  The Outlook was Stable.  Simultaneously, Ind-Ra has
reassigned BTIL a Long-Term Issuer Rating of 'IND B-' with a
Stable Outlook.

                         KEY RATING DRIVERS

The downgrade reflects the overutilization of BTIL's working
capital limits for more than 30 days in the month of April 2016.
However, the reassignment indicates that the over utilization was
regularized within 10 days during the last three months ended July
2016.

The ratings are constrained on account of the company's continued
weak credit profile and liquidity position.  According to
provisional financials for FY16, the company's revenue was
INR294 mil., operating EBITDA margin was negative 7.1%, interest
coverage was negative 1.2x, and net financial leverage (total
adjusted net debt/operating EBITDAR) stood at negative 7.6x.  The
liquidity profile of the company is also weak with instances of
over utilization which were regularized between 1-31 days during
the 12 months ended July 2016.

The ratings are supported by the promoters' experience of almost
four decades in the tea processing business.

                       RATING SENSITIVITIES

An improvement in the overall credit profile will be positive for
the ratings.

                         COMPANY PROFILE

Incorporated in 1938, BTIL is engaged in tea processing.  The
company has three tea gardens named Tingalibam Tea Estate, Gabroo
Purbat Tea Estate and Dahingeapar Tea Estate in Assam.  The
company has its registered office in Kolkata, West Bengal.  The
company is managed by Mr Mohta.  With effect from March 2016 the
company has been converted into a Private Limited Company from a
Limited Company.

BTIL's ratings:

   -- Long-Term Issuer Rating: downgraded to 'IND D' from
      'IND B-'; reassigned 'IND B-'/Stable
   -- INR54 mil. fund-based working limits: downgraded to 'IND D'
      from 'IND B-'; reassigned 'IND B-'/Stable
   -- INR0.7 mil. non-fund-based working capital limits:
      downgraded to 'IND D' from 'IND A4'; reassigned 'IND A4'


DELHI AIRPORT: Moody's Lowers CFR to Ba2, Outlook Stable
--------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating and senior secured ratings of Delhi International Airport
Private Limited's to Ba2 from Ba1.  The ratings outlook is stable.

                         RATINGS RATIONALE

"The downgrade reflects continued concerns about the level of cash
flow generation following the regulator's previous tariff order,
which will see regulated revenues reduced materially over the
2015-2019 regulatory period to levels that were not incorporated
in our previous expectation", says Abhishek Tyagi, a Moody's Vice
President and Senior Analyst.

Furthermore, the rating downgrade considers DIAL's new expansion
program that is planned over the next 3-5 years, and which will
further pressure financial metrics", Tyagi adds.

The tariff order which the regulator - Airports Economic
Regulatory Authority (AERA) -- announced in December 2015, will
apply to DIAL over the 2016-2019 period, and will lead to a
substantial decrease in annual aeronautical revenue by around
Rs20bn or around 70% from 2018 fiscal year", says Tyagi.

"This will also alter the revenue mix, with the proportion of the
higher risk non-aeronautical revenues increasing to a higher level
than previously anticipated", Tyagi says.

"We also see ongoing uncertainty regarding future regulatory
decisions, thereby raising the business risk for DIAL to a level
that was not incorporated in the previous rating, Tyagi says,
adding "Prior to today's rating action, the previous rating was on
negative outlook reflecting these concerns".

The tribunal authority -- The Airports Economic Regulatory
Authority Appellate Tribunal (AERAAT) -- is currently reviewing
the previous tariff order (covering the period 2010 to 2014).  The
impact of the order pertaining to 2015-2019 will only likely be
known when the tribunal completes the review of the previous
tariff order.

Over the next 4-5 years, DIAL plans to implement an expansion
program (Project 3A), which includes airfield enhancements,
expansion of terminals, construction of new runway and other
utilities.

Moody's understands that DIAL has yet to engage the design
consultants for this expansion project, but Project 3A is likely
to require capex in the range of Rs40-70 billion over next 3-5
years, depending on the project final size and composition.

While the expansion project is indicative of passenger growth
being experienced by DIAL, the rating downgrade takes into account
the incremental amount of debt to part-fund the project as well as
the construction and execution risk associated with it.

DIAL's leverage as reflected by funds from operations (FFO)/Debt
will likely decline to mid-single digit, a level that is
incorporated in the Ba2 rating.

DIAL's current liquidity position profile is adequate, with the
free cash on hand of INR17.9 billion as of June 30, 2016, and a
debt servicing and capex requirement totaling around
INR2.8 billion over next 12 months.

The stable outlook reflects DIAL's adequate liquidity, and Moody's
view that the company's financial profile over the next 12-18
months is manageable at the Ba2 rating level.

Upward rating movement in the near term is unlikely, given the
planned expansion program and the uncertainty associated with the
regulatory process.  Over time, ratings can be upgraded if DIAL
demonstrates an ability to maintain robust financial metrics,
including funds from operations /gross adjusted debt above 10% and
debt service coverage ratio exceeding 1.5x on a consistent basis.

On the other hand, the ratings could be downgraded if there is a
deterioration in financial leverage which could be due to higher
expansion program, or missteps in implementing the planned project
3A, or a reduction in aeronautical and/or non-aeronautical
revenues relative to our base case expectation.  Financial metrics
that could indicate a weakness in leverage include FFO/Debt
declining below 3%-4% on a consistent basis.

Moody's has used its Joint Default Analysis approach for
Government Related Issuers in assessing DIAL's rating, because the
company is more than 20% government-owned through the Airports
Authority of India (AAI), a government agency.

DIAL's Ba2 rating combines: (1) the company's baseline credit
assessment (BCA) of ba2; and (2) the low likelihood of support
that Moody's believes the Government of India (Baa3/positive) will
provide to DIAL in the event that extraordinary financial support
is required.  This assumption of support results in the absence of
uplift to the company's BCA.

The methodologies used in these ratings were Privately Managed
Airports and Related Issuers published in December 2014, and
Government-Related Issuers published in October 2014.

Delhi International Airport Private Limited (DIAL) is the
concessionaire for Indira Gandhi International Airport, which is
located in the political capital of India under an Operations,
Management and Development Agreement (OMDA), entered in 2006 with
the Airports Authority of India (AAI), a government agency.  The
concession is for a 30-year period, and DIAL has an option to
extend it for another 30 years, subject to meeting defined
performance criteria.


EAST COAST DISTRIBUTORS: CRISIL Cuts INR150MM Loan Rating to B-
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of East Coast Distributors Pvt Ltd to 'CRISIL B-/Stable' from
'CRISIL BB-/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             150       CRISIL B-/Stable (Downgraded
                                     from 'CRISIL BB-/Stable')

   Proposed Long Term       70       CRISIL B-/Stable (Downgraded
   Bank Loan Facility                from 'CRISIL BB-/Stable')

The downgrade reflects deterioration in ECDPL's business risk
profile on account of decline in profitability and CRISIL's belief
that ECDPL's business risk profile will remain weak over the
medium term because of low operating profitability, and liquidity
will remain stretched on account of expected negative cash accrual
and large working capital requirement. Continued support from the
promoters through unsecured loans will be a key rating sensitivity
factor.

ECDPL's revenue fell 9% year-on-year to INR568 million in fiscal
2016 and operating margin weakened to a negative 5% from a
negative 2% in fiscal 2015 because of high advertisement expenses
and discounts. Its financial risk profile also weakened, because
of fall in networth to INR89 million as on March 31, 2016, from
INR200 million as on March 31, 2014, and increase in total outside
liabilities to tangible networth (TOLTNW) ratio to 4.4 times from
2 times. CRISIL believes ECDPL will turn profitable in the next
two years, but expects the operating margin to remain low,
stretching the company's liquidity.

The rating reflects the company's below-average financial risk
profile because of small networth, high TOLTNW ratio, and weak
debt protection metrics, and its large working capital
requirement. These weaknesses are partially offset by its
promoters' extensive experience in the houseware industry, and
their funding support by way of unsecured loans.
Outlook: Stable

CRISIL believes ECDPL will continue to benefit from its promoters'
extensive industry experience and funding support. The outlook may
be revised to 'Positive' in case of substantial and sustained
increase in the company's profitability and revenue, leading to
large cash accrual. The outlook may be revised to 'Negative' if
the company takes longer than expected to improve its
profitability, or if its financial risk profile deteriorates
because of a stretch in its working capital cycle or decline in
funding support from promoters.

ECDPL, incorporated by Mr. Shyam Sunder Agarwal and his brother
Mr. Suresh Kumar Agarwal in 1999, trades in houseware and
tableware, such as gift articles, glass and crystal ware, and
crockery, under its Roxx brand. The company is a part of the RB
Agarwala group, which has interests in the paper, yarn, castings,
real estate, and houseware industries. ECDPL is managed by the
promoters along with Mr. Shyam Sunder Agarwal's son, Mr. Abhinav
Agarwal.


ELITE PROPERTIES: CRISIL Suspends 'B' Rating on INR100MM Loan
-------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Elite
Properties.

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

   Proposed Long Term
   Bank Loan Facility      90        CRISIL B/Stable

   Term Loan               10        CRISIL B/Stable

The suspension of ratings is on account of non-cooperation by EP
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, EP is yet to
provide adequate information to enable CRISIL to assess EP's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information.

EP is a partnership firm established in 2006 by Mr. Pramod Patil
and his family members. The firm owns and operates the Elite-Orbit
Mall in Amravati (Maharashtra). The mall was opened to the public
in May 2010 and is built over about 85,000 square feet. EP is part
of the Elite group, promoted by the Patil family, which has been
engaged in real estate development in Maharashtra for more than
two decades.


FARIDABAD STEEL: Ind-Ra Assigns BB Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Faridabad Steel
Mongers Pvt Ltd (FSMPL) a Long-Term Issuer Rating of 'IND BB'.
The Outlook is Stable.  The agency has also assigned FSMPL's
INR500 mil. fund-based working capital limits a Long-term 'IND BB'
rating with a Stable Outlook and a Short-term 'IND A4+' rating.

                         KEY RATING DRIVERS

The ratings reflect FSMPL's low EBITDA margins, which averaged
1.5% over FY12-FY15, mainly due to the trading nature of the
company's operations.  The margins are also exposed to volatility
mainly on account of the fluctuations in steel prices.
Provisional (P) FY16 financials indicate that the company's EBITDA
margin was 1.76% (FY15: 1.4%).

FSMPL has recorded a healthy scale-up in operations, with revenue
increasing at a CAGR of 41% over FY12-FY15 to INR5.5 bil.
However, FY16 (P) results indicate that its revenue declined by
6.9% yoy to INR5.1 bil., mainly on account of a steep decline in
realizations, which fell by 20% yoy to INR33,015 in FY16 (P).
However, a 17% yoy growth in sales volumes to 156,595mt in FY16
(P) mitigated the drop in revenue.

FSMPL's credit metrics have remained modest, mainly due to low
profit margins and its working-capital-intensive nature of
operations.  Its net leverage (total adjusted net debt/operating
EBITDAR) and gross coverage (operating EBITDAR/(gross interest
expense + rents) averaged 7.48x and 1.45x, respectively, over
FY12-FY15.  In FY16 (P), slightly higher EBITDA margins, along
with lower interest costs, led to an improvement in credit
metrics, with net leverage being 6.14x (FY15: 6.65x) and gross
coverage being 1.87x (1.43x).

The company maintains an inventory of about 30 days and extends a
similar credit period to its customers, though the former tends to
fluctuate slightly in response to market dynamics.  Credit from
suppliers remains low, but advances from new customers have helped
ease the company's working capital cycle to some extent.  FSMPL
recorded 97% average maximum utilization of its sanctioned fund-
based limits for the 12 months ended July 2016, reflecting the
tight liquidity.

FSMPL has a diversified customer base and its top 10 customers
accounted for less than 16% of sales in FY16, indicating a low
customer concentration risk.  The company's philosophy of limiting
exposure to any single customer has facilitated this
diversification.  To limit payment default risks, given that
majority of its customers are traders and small-scale
manufacturers, the company mostly deals in cash with new customers
and offers credit only after the demonstration of a healthy
payment track record.

The ratings benefit from the experience of the FSMPL's promoter,
who has an operational track record of more than three decades in
the steel trading business.

                        RATING SENSITIVITIES

Positive: A sustained rise in profitability, leading to an
improvement in credit metrics, along with an improvement in
liquidity, may lead to a positive rating action.

Negative: A decline in revenue and profitability, resulting in
deterioration in credit metrics or liquidity, may lead to a
negative rating action.

                           COMPANY PROFILE

Incorporated in June 2009, FSMPL was initially set up by
Mr. Yogesh Gupta as a partnership firm named SP Industries.  It
was converted into a private limited company later that year.  The
company is a Memorandum of Understanding customer of Steel
Authority of India Limited (SAIL: 'IND AA'/Negative) and trades in
HR coils, HR plates, HSM plates, PM plates and CR coils.


GIRDHARILAL MANOHARLAL: CRISIL Hikes INR112.2M Loan Rating to B+
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank loan
facilities of Girdharilal Manoharlal Glass Works No.2 to 'CRISIL
B+/Stable' from 'CRISIL B/Stable'.

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

   Proposed Long Term      7.8       CRISIL B+/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL B/Stable')

   Term Loan             112.2       CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B/Stable')

The upgrade reflects the improvement in GMGW's business and
financial risk profiles in fiscal 2016. The firm's operating
income increased by 28% to INR606 million in fiscal 2016 from
INR474 million in fiscal 2015, in line with CRISIL's expectation,
on account of full capacity utilization and price increment
offered by customers. The operating income is expected to grow by
7% over the medium term. Also, the partners infused equity of
INR23 million in fiscal 2016 which led to increase in the firm's
networth to INR65 million as on March 31, 2016, from INR34 million
a year earlier, and improvement in its total outside liabilities
to tangible networth (TOLTNW) ratio to 1.09 times from 1.60 times.
Moreover, the partners extended incremental unsecured loan of
INR12 million in fiscal 2016. The unsecured loans stood at INR148
million as on March 31, 2016, against INR136 million as on March
31, 2015.

CRSIL has treated the unsecured loans from the partners as neither
debt nor equity as they are subordinate to bank debt and are
expected to remain in the business over the medium term.

The rating reflects GMGW's large working capital requirement,
moderate interest coverage. These weaknesses are partially offset
by its partners' extensive experience in the glass industry, and
their financial support.
Outlook: Stable

CRISIL believes GMGW will continue to benefit from it partners'
extensive industry experience. The outlook may be revised to
'Positive' if the firm registers a substantial increase in its
revenue and improves its operating margin, leading to a better
financial risk profile. Conversely, the outlook may be revised to
'Negative' in case of low revenue or profitability, resulting in
modest cash accrual, and deterioration in the financial risk
profile because of debt-funded capital expenditure or capital
withdrawal.

GMGW, based in Firozabad, Uttar Pradesh, was established in 1977
to manufacture drinking glasses. After reconstitution of the
firm's partnership in 2011, its partners amended the scope of its
operations and set up a glass bottle manufacturing unit, which
commenced operations in January 2013. The firm is owned and
managed by Mr. Manish Bansal, Mr. Mohit Mohan Agarwal, Mr. Rohit
Agarwal, Mr. Pradeep Gupta, Mr. Deepak Gupta, and Mr. Sanjeev
Gupta.


GOWTHAMI INFRATECH: Ind-Ra Suspends D Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Gowthami
Infratech Private Limited's 'IND D' Long-Term Issuer Rating to the
suspended category.  The rating will now appear as
'IND D(suspended)' on the agency's website.

The ratings have been migrated to the suspended category due to
lack of adequate information.  Ind-Ra will no longer provide
ratings or analytical coverage for GIPL.

The ratings will remain in the suspended category for a period of
six months and be withdrawn at the end of that period.  However,
in the event the issuer starts furnishing information during the
six-month period, the ratings could be reinstated and will be
communicated through a rating action commentary

GIPL's ratings:

   -- Long-Term Issuer Rating: migrated to 'IND D(suspended)'
      from 'IND D'
   -- INR62 mil. fund-based working capital limits: migrated to
      Long-term 'IND D(suspended)' from 'IND D' and Short-term
      'IND D(suspended)' from 'IND D'
   -- INR455.4 mil. non-fund-based working capital limits:
      migrated to Short-term 'IND D(suspended)' from 'IND D'
   -- INR50 mil. term loan: migrated to Long-term
      'IND D(suspended)' from 'IND D'


GRAPE MARKETING: CRISIL Lowers Rating on INR40MM Cash Loan to B
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Grape Marketing Pvt Ltd to 'CRISIL B/Stable/CRISIL A4' from
'CRISIL BB-/Stable/CRISIL A4+'.


                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             40        CRISIL B/Stable (Downgraded
                                     from 'CRISIL BB-/Stable')

   Foreign Exchange        17.5      CRISIL A4 (Downgraded from
   Facility                          'CRISIL A4+')

   Proposed Long Term      22.5      CRISIL B/Stable (Downgraded
   Bank Loan Facility                from 'CRISIL BB-/Stable')

The rating downgrade reflects deterioration in GMPL's business
risk profile on account of decline in sales and profitability to
an estimated INR486 million and 1.5%, respectively, in fiscal
2016, from INR522 million and 1.96% in fiscal 2015, following
decline in imports due to appreciation in dollar prices. Business
risk profile will continue to be sensitive to volatility in forex
rates. Financial risk profile remains constrained by low networth
and moderate total outside liabilities to tangible net worth
(TOLTNW) ratio, estimated at INR15.3 million, and 3.3 times,
respectively, as on March 31, 2016. Debt protection metrics have
weakened, too, with interest coverage estimated at 0.9 time for
the fiscal, owing to dip in operating profitability.

The rating continues to factor in GMPL's weak financial risk
profile, with high total outside liabilities to tangible networth
(TOLTNW) ratio, and moderate debt protection metrics. These
weaknesses are partially offset by the promoters' extensive
experience and healthy relationships with customers and suppliers.
Outlook: Stable

CRISIL believes GMPL will continue to benefit from the experience
of its promoters and established relationships with customers and
suppliers. The outlook may be revised to 'Positive' if higher
revenue and operating profitability lead to stronger cash accrual
and debt protection metrics; or equity infusion by the promoters
and prudent working capital management strengthen financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
higher-than-expected working capital requirement or low revenue
considerably weakens key credit metrics.

Incorporated in 2000, GMPL imports and trades in nonferrous metals
such as lead, zinc and aluminum, which are used in manufacture of
batteries. The company imports metals primarily from Europe and
USA and sells to manufactures all over India. The operations are
headed by Mr. Chetan Jain. The company is based in New Delhi.

Net profit was INR2.35 million on net sales of INR486 million for
fiscal 2016, against net profit and net sales of INR1.4 million
and INR522 million, respectively, for fiscal 2015.


HOPE HEALTHWAYS: Ind-Ra Suspends D Long-Term Issuer Rating
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Hope Healthways'
'IND D' Long-Term Issuer Rating to the suspended category.  The
rating will now appear as 'IND D(suspended)' on the agency's
website.  The agency has also migrated Hope Healthways' INR80 mil.
long-term loans to Long-term 'IND D(suspended)' from Long-term
'IND D'.

The ratings have been migrated to the suspended category due to
lack of adequate information.  Ind-Ra will no longer provide
ratings or analytical coverage of Hope Healthways.

The ratings will remain in the suspended category for a period of
six months and be withdrawn at the end of that period.  However,
in the event the issuer starts furnishing information during this
six-month period, the ratings could be reinstated and will be
communicated through a rating action commentary.


INEX INDUSTRIES: CRISIL Suspends 'D' Rating on INR54.4MM Loan
-------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of Inex
Industries Limited.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit            12.9       CRISIL D

   Funded Interest
   Term Loan              30.7       CRISIL D

   Proposed Long Term
   Bank Loan Facility     40         CRISIL D

   Term Loan              54.4       CRISIL D

   Working Capital
   Term Loan              32.0       CRISIL D

The suspension of ratings is on account of non-cooperation by Inex
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Inex is yet to
provide adequate information to enable CRISIL to assess Inex's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information.

Inex, based in Nagpur (Maharashtra), manufactures glass basins,
tiles, and mosaics, as well as stainless steel mosaics. The
company is promoted by Mr. Sachin Palsokar, who is a first-
generation entrepreneur.


JAI JAGDAMBA: Ind-Ra Suspends B Long-Term Issuer Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Jai Jagdamba
Dairy's 'IND B' Long-Term Issuer Rating to the suspended category.
The Outlook was Stable.  The rating will now appear as 'IND
B(suspended)' on the agency's website.

The ratings have been migrated to the suspended category due to
lack of adequate information.  Ind-Ra will no longer provide
ratings or analytical coverage for JJD.

The ratings will remain in the suspended category for a period of
six months and be withdrawn at the end of that period.  However,
in the event the issuer starts furnishing information during the
six-month period, the ratings could be reinstated and will be
communicated through a rating action commentary.

JJD's ratings:

   -- Long-Term Issuer Rating: migrated to 'IND B(suspended)'
      from 'IND B'/Stable

   -- INR7.57 mil. term loans: migrated to 'IND B(suspended)'
      from 'IND B'/Stable

   -- INR55 mil. fund-based limits: migrated to
      'IND B(suspended)'/'IND A4(suspended)' from
      'IND B'/Stable/'IND A4'


K. MAGANLAL: Ind-Ra Affirms 'IND BB+' Long-Term Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed K. Maganlal
Impex's Long-Term Issuer Rating at 'IND BB+'. The Outlook is
Stable. Ind-Ra has also affirmed the company's INR110 mil. fund-
based working capital limits at 'IND BB+' with a Stable Outlook.

KEY RATING DRIVERS

The affirmation reflects KMI's continued moderate credit profile
with interest coverage of 1.7x (FY15: 1.9x) and net financial
leverage (total adjusted net debt/operating EBITDAR) of 8x (7.1x)
according to provisional (P) financials for FY16. The affirmation
further reflects the improvement in the operating EBITDA margin to
1.8% in FY16 from 1.4% in FY15. The company posted revenue of
INR936 mil. in FY16P as against INR1,248 mil. in FY15. The ratings
also take into account the volatility in diamond prices and
exchange rates as most of the company's revenue is derived from
exports to countries such as Hong Kong, Belgium and Dubai.

The ratings are constrained by the company's tight liquidity
profile with full utilization of its working capital limits for
the 12 months ended July 2016 along with instances of over
utilization which were regularized within 13 days. The ratings are
further constrained by the partnership nature of KMI's business.

The ratings are, however, supported by the over 10 years of
experience of KMI's founders in the diamond business.

RATING SENSITIVITIES

Positive: An improvement in the scale of operations while
maintaining the profitability will be positive for the ratings.

Negative: A decline in the scale of operations on a sustained
basis will be negative for the ratings.

Incorporated in 2002, KMI is a partnership firm engaged in the
import of rough diamonds and manufacturing, cutting and export of
polished diamonds. KMI is a member of the Gem & Jewellery Export
Promotion Council. It has its registered office in Mumbai and a
factory in Gujarat. The firm is managed by Kalubhai Jivabhai
Dudhat, Maganlal Jivabhai Dudhat and Dineshbhai Jivabhat Dudhat.


KAIRALI EXPORTS: CRISIL Hikes Rating on INR210MM LT Loan to B+
--------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Kairali Exports to 'CRISIL B+/Stable' from 'CRISIL B/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Packing Credit          120       CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B/Stable')

   Proposed Long Term      210       CRISIL B+/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL B/Stable')

The upgrade reflects improvement in the firm's liquidity on
account of increase in cash accrual and continued financial
support from its promoter. While revenue fell to INR433 million in
fiscal 2016 from INR451 million in fiscal 2015, operating
profitability improved marginally to 5.8%, leading to increase in
cash accrual to INR10.2 million. Furthermore, unsecured loans of
INR25 million from the promoter supported the firm's liquidity in
fiscal 2016. Consequently, its average bank line utilization
reduced to 80% from 95% in the previous fiscal. Despite proposed
debt-funded capital expenditure, cash accrual is likely to be
sufficient to meet debt obligation, over the medium term. CRISIL
believes KE's financial risk profile, especially liquidity, will
improve, supported by steady cash generation and need-based funds
from its promoter.

The rating reflects KE's below-average financial risk profile
because of modest networth and high gearing, and its large working
capital requirement. These weaknesses are partially offset by its
promoter's extensive experience and its established market
position in processing and exporting cashew kernels.
Outlook: Stable

CRISIL believes KE will continue to benefit from its promoter's
industry experience. The outlook may be revised to 'Positive' if
the firm's financial risk profile improves because of significant
increase in cash accrual and better working capital management.
The outlook may be revised to 'Negative' in case of deterioration
in working capital management, or a significant decline in cash
accrual because of lower revenue or operating profitability,
weakening the liquidity.

KE, set up by Mr. Mohan Chandra Nair in Kerala in 2010, processes
and exports cashew kernels.


KEYEM ENGINEERING: CRISIL Suspends 'B' Rating on INR125MM Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Keyem Engineering Enterprises.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             125       CRISIL B/Stable
   Letter of Credit         25       CRISIL A4

The suspension of ratings is on account of non-cooperation by KEE
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, KEE is yet to
provide adequate information to enable CRISIL to assess KEE's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information.

Set up in 1996 as a proprietorship firm by Mr. Ramachandran,
Chennai (Tamil Nadu)-based KEE undertakes civil construction works
such as installation of underground drainage systems, pumping
stations, and water treatment plants.


LINK MARBLE: CRISIL Reaffirms 'B' Rating on INR110MM LT Loan
------------------------------------------------------------
CRISIL's ratings on the bank facilities of Link Marble and
Granites Private Limited continue to reflect LMGPL's below-average
financial risk profile, marked by a highly leveraged capital
structure and weak debt protection metrics, along with its small
scale of operations in the intensely competitive granite and
marble trading segments. These rating weaknesses are partially
offset by the extensive industry experience of LMGPL's promoters.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee          10        CRISIL A4 (Reaffirmed)

   Bill Discounting        25        CRISIL A4 (Reaffirmed)

   Cash Credit             92.5      CRISIL B/Stable (Reaffirmed)

   Export Packing Credit   62.5      CRISIL A4 (Reaffirmed)

   Letter of Credit       170.0      CRISIL A4 (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility     110.0      CRISIL B/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that LMGPL will continue to benefit over the
medium term, from its established relations with customers and
suppliers, and the promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of improvement in
LMGPL's financial risk profile and working capital management,
supported by an increase in its scale of operations and
profitability leading to an improvement in its capital structure.
Conversely, the outlook may be revised to 'Negative' if LMGPL's
financial risk profile weakens because of low profitability or
revenue, or if the company undertakes a large, debt-funded capital
expenditure (capex) programme, or if the promoters withdraw their
unsecured loans extended to the company.

LMGPL was set up in Bengaluru (Karnataka) in 2004 by Mr. Gurmeet
Singh Modi and his family. The company trades and processes
various types of marble, granite, and other natural stones.


LOKNETE SUNDERRAOJI: CRISIL Assigns 'B+' Rating to INR300MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Loknete Sunderraoji Solanke Sahakari Sakhar
Karkhana Limited.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Long Term Loan          300       CRISIL B+/Stable

The ratings reflect the company's below-average financial risk
profile because of high gearing, its large working capital
requirement, and susceptibility to cyclicality and regulatory
changes in the sugar industry. These weaknesses are partially
offset by adequate operating efficiency backed by integrated
operations, and extensive industry experience of its promoters.

Outlook: Stable

CRISIL believes LSSSSKL's credit risk profile will continue to
benefit from its promoter's extensive experience. The outlook may
be revised to 'Positive' if the company registers higher-than-
expected cash accrual, or there is an improvement in its liquidity
on the back of sizeable equity infusion by the promoters.
Conversely, the outlook may be revised to 'Negative' if a steep
decline in profitability margin, or substantial weakening in its
capital structure on the back of any large debt-funded capital
expenditure, or stretch in working capital cycle.

LSSSSKL was established in 1992 by Late Sunderraoji Solanke and
his family. The company is based in Beed (Maharashtra)
manufactures sugar and has a cane crishing capacity of 5000 tonnes
crushed per day, a 22 megawatt co-generation power plant and 45
kilolitres per day distillery.


MAKKAR TEXTILE: CRISIL Reaffirms 'B' Rating on INR85MM Term Loan
----------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Makkar Textile
Mills Private Limited continues to reflect a below-average
financial risk profile because of a modest networth, an average
interest coverage; ratio, and weak liquidity driven by large
working capital requirement. The rating also factors in a small
scale of operations and susceptibility to volatility in raw
material prices.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit             60       CRISIL B/Stable (Reaffirmed)
   Proposed Term Loan      56       CRISIL B/Stable (Reaffirmed)
   Term Loan               85       CRISIL B/Stable (Reaffirmed)

These rating weaknesses are partially offset by the established
track record of the company's promoters in the shawl manufacturing
industry.
Outlook: Stable

CRISIL believes MTM will continue to benefit over the medium term
from its established market position, and the extensive industry
experience of its promoters. The outlook may be revised to
'Positive' in case of a significant increase in revenue and/or
profitability, leading to higher net cash accrual and consequently
to an improvement in capital structure and liquidity. The outlook
may be revised to 'Negative' in case of a decline in operating
margin or revenue, or a further stretch in the company's working
capital cycle, or large, debt-funded capital expenditure.

MTM, incorporated in 1994 and promoted by Mr. Makkar, manufactures
shawls from acrylic, viscose, and polyester yarn. The company also
has a retail presence in the domestic market.


MALVIKA TECHNICAL: CRISIL Assigns B+ Rating to INR6MM Cash Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Malvika Technical Services.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Letter of Credit        14        CRISIL A4
   Bank Guarantee          31        CRISIL A4
   Cash Credit              6        CRISIL B+/Stable

The ratings reflect modest and volatile revenue, limited
geographic reach, working capital-intensive operations, and an
average financial risk profile due to small networth. These rating
weaknesses are partially offset by the extensive experience of the
firm's promoter in water and sewage treatment industry and her
funding support.
Outlook: Stable

CRISIL believes MTS will continue to benefit over the medium term
from the extensive industry experience of its promoter and its
moderate current order book. The outlook may be revised to
'Positive' if revenue growth is as anticipated while profitability
and working capital cycle are maintained, leading to higher cash
accrual. The outlook may be revised to 'Negative' if the financial
risk profile, especially liquidity, deteriorates due to lower cash
accrual, a stretched working capital cycle, or unanticipated
capital expenditure.

MTS, based in Jaipur, was set up as proprietorship firm in 2010 by
Ms Seema Dullar. The firm undertakes turnkey projects with regard
to water, sewage, and effluent treatment plants.


MICRO ORGO: CRISIL Suspends 'B+' Rating on INR110MM Cash Loan
-------------------------------------------------------------
CRISIL has suspended its rating on the bank facility of Micro Orgo
Chem.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit              110      CRISIL B+/Stable

The suspension of ratings is on account of non-cooperation by MOC
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MOC is yet to
provide adequate information to enable CRISIL to assess MOC's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information.

Set up in 1992, MOC is a partnership firm owned and managed by Mr.
Manish Jain and Mr. Maheshkumar Ranka. It manufactures
pharmaceutical bulk drugs. Its facility is in Vapi (Gujarat).


NAAGAAMI INFRATECH: Ind-Ra Assigns 'IND BB-' LT Issuer Rating
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Naagaami
Infratech Private Limited a Long-Term Issuer Rating of 'IND BB-'.
The Outlook is Stable.

KEY RATING DRIVERS

The ratings reflect Naagaami Infratech's moderate scale of
operations as reflected by its revenue of INR733 mil. in FY16
(FY15: INR651 mil.) and operating EBITDA margin of 10.7% (10.8%).
Until FY16 the company was debt free. However, the net leverage is
likely to deteriorate from the FY16 levels of negative 0.01x as
the company is planning to avail fresh debt.

The ratings are also constrained by the high geographical
concentration risk as all the contracts are executed in the states
of Nagaland and Assam and the long working capital cycle of 367
days in FY16 mainly on account of its high inventory levels.

The ratings benefit from the promoter's over three decades of
experience in the present line of business and the presence of an
escalation clause in all its orders safeguarding the margins from
fluctuations.

RATING SENSITIVITIES

Positive: An improvement in the scale of operations and in the
operating. EBITDA margin would be positive for the ratings.

Negative: Any deterioration in the scale of operations will lead
to a negative rating action.

COMPANY PROFILE

Incorporated in 2016, Naagaami Infratech is engaged in the
construction of roads, bridges and civil structures. The company
was converted into a private limited company from a proprietorship
firm in March 2016. NIPL executes only central and state
government projects, in Assam and Nagaland.


NEW RISHIKESH: CRISIL Suspends 'D' Rating on INR50MM Term Loan
--------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of
New Rishikesh Medical Foundation and Research Centre Private
Limited.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             2.5       CRISIL D
   Proposed Long Term
   Bank Loan Facility     10.0       CRISIL D
   Term Loan              50.0       CRISIL D

The suspension of ratings is on account of non-cooperation by NRMF
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, NRMF is yet to
provide adequate information to enable CRISIL to assess NRMF's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information.

Incorporated in 2005, NRMF has set up a multispecialty hospital at
Nashik (Maharashtra) under the name of Rishikesh Hospital.


PARAS COTSPIN: CRISIL Ups Rating on INR75.8MM LT Loan to B-
-----------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Paras
Cotspin Limited to 'CRISIL B-/Stable/CRISIL A4' from 'CRISIL
D/CRISIL D'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee          2.5       CRISIL A4 (Upgraded from
                                     'CRISIL D')

   Cash Credit            65.0       CRISIL B-/Stable (Upgraded
                                     from 'CRISIL D')

   Proposed Long Term     75.8       CRISIL B-/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL D')

   Rupee Term Loan        28.2       CRISIL B-/Stable (Upgraded
                                     from 'CRISIL D')

The upgrade reflects timely servicing of debt by the company
because of improved liquidity driven by funding support of INR24.9
million from its promoters in fiscal 2016. While cash accrual is
likely to increase over the medium term, it will remain barely
sufficient to meet debt obligation, necessitating timely financial
support from the promoters. Also, the company's financial
flexibility remains constrained by high bank line utilisation (94%
on an average over the 18 months through July 2016).

The ratings reflect PCL's below-average financial risk profile
because of high total outside liabilities to tangible networth
ratio and modest networth, and its small scale of operations in
the intensely competitive cotton spinning industry. These
weaknesses are partially offset by its promoters' extensive
industry experience.

Outlook: Stable

CRISIL believes PCL will continue to benefit from the industry
experience of its promoters. The outlook may be revised to
'Positive' in case of a significant increase in revenue and
profitability, leading to rise in net cash accrual, and
consequently, a better financial risk profile. The outlook may be
revised to 'Negative' if the financial risk profile, particularly
liquidity, deteriorates, because of large, debt-funded capital
expenditure or a stretch in working capital cycle.

PCL, incorporated by Mr. Dinesh Kataria and his family and friends
in 2007, began commercial production in fiscal 2009. Fiscal 2010
was its first full year of operations. The company manufactures
cotton yarn (in counts of 10-18s) at its facility in Samana,
Punjab.


PEE GEE: CRISIL Upgrades Rating on INR60MM Cash Loan to 'B-'
------------------------------------------------------------
CRISIL has revised its long term rating on the bank facilities of
Pee Gee International (Delhi) from 'CRISIL B/Stable' to
'CRISIL D' and simultaneously upgraded it to 'CRISIL B-/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Buyer Credit Limit      60        CRISIL B-/Stable (Revised
                                     from 'CRISIL B/Stable'
                                     to 'CRISIL D' and
                                     simultaneously upgraded
                                     to 'CRISIL B-/Stable')

   Cash Credit             60        CRISIL B-/Stable (Revised
                                     from 'CRISIL B/Stable'
                                     to 'CRISIL D' and
                                     simultaneously upgraded
                                     to 'CRISIL B-/Stable')

The rating revision takes into account irregularity in servicing
of debt during February to May 2016. The company has been timely
in servicing debt since then.

The rating continues to reflect a weak financial risk profile
because of high gearing and a small networth, and a modest scale
of operations in the highly fragmented metal-trading industry.
Outlook: Stable

CRISIL believes PGI will continue to have high dependence on bank
borrowing for meeting working capital requirement. The outlook may
be revised to 'Positive' in case of significant improvement in
profitability and thus liquidity. The outlook may be revised to
'Negative' if an increase in working capital requirement or
withdrawal results in deterioration in the financial risk profile.

Set up as a proprietorship firm in 2002 by Mr. Gauri Shankar,
Delhi-based PGI trades in aluminium scrap and other metals.


R. M. REALTY: CRISIL Suspends 'D' Rating on INR150MM Term Loan
--------------------------------------------------------------
CRISIL has suspended its rating on the bank facilities of R. M.
Realty Developers.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit            150        CRISIL D
   Term Loan              150        CRISIL D

The suspension of ratings is on account of non-cooperation by RMRD
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, RMRD is yet to
provide adequate information to enable CRISIL to assess RMRD's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information.

RMRD is a partnership firm established by members of the Thakur
family in 2010-11 (refers to financial year, April 1 to March 31)
to undertake residential real estate projects, Hiras Nagar and
Felej, in Pune. Mr. Nitin Thakur manages the firm's operations.


RSA MARINES: CRISIL Assigns 'B+' Rating to INR42.5MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of RSA Marines.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Term Loan              42.5       CRISIL B+/Stable
   Proposed Long Term
   Bank Loan Facility      7.5       CRISIL B+/Stable
   Foreign Discounting
   Bill Purchase          95.0       CRISIL A4
   Packing Credit         25.0       CRISIL A4

The ratings reflect a modest scale of operations, large working
capital requirement, and a below-average financial risk profile
because of a small networth and high gearing and it's recently
completed debt-funded capital expenditure (capex). The ratings
also factors in susceptibility to volatility in raw material
prices. These rating weaknesses are partially offset by the
extensive experience of the firm's promoters in the seafood
industry and longstanding relationship with key customers.

Outlook: Stable

CRISIL believes RSA will continue to benefit over the medium term
from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' if revenue increases
significantly leading to large cash accrual, along with equity
infusion, resulting in a healthy financial risk profile. The
outlook may be revised to 'Negative' if the financial risk
profile, particularly liquidity, deteriorates because of larger-
than-expected working capital requirement, less-than-expected
ramp-up in operations, or additional debt-funded capex.

RSA was incorporated in 2002, promoted by Mr. M. Rahim, Mr. Hanse,
and Mr. Sharafudeen. Based in Alappuzha, Kerala, the firm
processes seafood products, which it sells to various exporting
units in Kerala.


S. D. GURAV: CRISIL Reaffirms 'D' Rating on INR60MM Cash Loan
-------------------------------------------------------------
CRISIL's rating to the long-term bank facility of S. D. Gurav
continue to reflect the firm's overdrawn working capital limits
for more than 30 days, on account of weak liquidity.

                           Amount
   Facilities            (INR Mln)     Ratings
   ----------            ---------     -------
   Cash Credit/Overdraft
   facility                   60       CRISIL D (Reaffirmed)

The weak liquidity is on account of large working capital
requirements. The rating also reflects SDG's below-average
financial risk profile marked by its small net worth. However,
these rating weaknesses are partially offset by SDG's promoters'
extensive industry experience.

Established in 1995 as a sole proprietor firm, SDG is a Belgaum
(Karnataka) based civil contractor & interior designer. The
company primarily undertakes construction of residential projects.


SAI JYOT: CRISIL Suspends 'D' Rating on INR100MM LT Loan
--------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Sai
Jyot Textiles.

                          Amount
   Facilities            (INR Mln)     Ratings
   ----------            ---------     -------
   Cash Credit/Overdraft
   facility                   50       CRISIL D
   Proposed Long Term
   Bank Loan Facility        100       CRISIL D

The suspension of ratings is on account of non-cooperation by SJT
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SJT is yet to
provide adequate information to enable CRISIL to assess SJT's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information.

Set up as a partnership in 2003 by Mr. Sunder Wadhwani, SJT
manufactures denim wear. Its office is in Ulhasnagar (Maharashtra)
and operations are managed by Mr. Sunder Wadhwani and Mr. Pradeep
Agicha.


SANGAM RICE: CRISIL Reaffirms 'B' Rating on INR110MM Loan
---------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Sangam Rice
Private Limited continues to reflect the company's below-average
financial risk profile because of weak capital structure, its
small scale of operations in a highly fragmented industry, and its
susceptibility to fluctuations in rainfall and to changes in
government policies. These weaknesses are partially offset by its
promoters' extensive experience in the rice milling industry.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Cash Credit            55.0      CRISIL B/Stable (Reaffirmed)
   Long Term Loan          5.5      CRISIL B/Stable (Reaffirmed)
   Proposed Term Loan     14.5      CRISIL B/Stable (Reaffirmed)
    Warehouse Receipts   110.0      CRISIL B/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes SRPL will continue to benefit from its promoters'
extensive industry experience. The outlook may be revised to
'Positive' if its capital structure improves because of equity
infusion or significantly high profitability. The outlook may be
revised to 'Negative' in case of low profitability or steep
increase in working capital requirement, leading to deterioration
in its financial risk profile.

Update
The company's sales volume grew at a healthy pace of 26% despite
declining rice prices in fiscal 2016. Its revenue was INR114
million in the first quarter of fiscal 2017, and is expected to
grow 10% to INR300-310 million per annum over the medium term. Its
net profitability margin is expected at 0.3-0.4%.

SRPL maintains inventory of 4-5 months as it purchases its raw
material 'paddy' in bulk during the peak season (October to March)
to meet requirement throughout the year. With no major change in
its inventory policy and customer profile, its working capital
cycle will remain stable over the medium term.

SRPL has adequate liquidity, indicated by moderate bank limit
utilisation of 64% over the 12 months through March 2016. Its cash
accrual is expected at INR2.4-2.6 million over the medium term,
against debt obligation of INR1.1 million. The liquidity is
expected to remain adequate in the absence of any capital
expenditure over the medium term.

The company's financial risk profile is below average because of
estimated high total outside liabilities to tangible networth
ratio of 4.7 times as on March 31, 2016, and weak interest
coverage of 1.3 times for fiscal 2016. The financial risk profile
is expected to remain weak on account of large bank debt and low
net profit margin.

SRPL, set up in 2008, mills, processes, and markets rice. Its
plant is in Patran, Punjab. The company is managed by Mr. Sanjiv
Kumar and Mr. Deepak Garg.


SARADA PROJECTS: CRISIL Reaffirms 'B' Rating on INR150MM LT Loan
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Sarada Projects Limited
continue to reflect the company's modest scale of operations, its
large working capital requirement, the high geographic
concentration in its order book, and its exposure to intense
competition in the construction industry. These weaknesses are
partially offset by its promoters' extensive experience in the
construction industry.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee          50        CRISIL A4 (Reaffirmed)

   Cash Credit             10        CRISIL B/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility     150        CRISIL B/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes SPL will continue to benefit from its promoters'
extensive industry experience. The outlook may be revised to
'Positive' if the company registers a substantial and sustained
increase in revenue, while maintaining its profitability, or if
its working capital cycle improves. The outlook may be revised to
'Negative' in case of a steep decline in its profitability, or
significant weakening of its capital structure because of a
stretch in its working capital cycle.

SPL was set up by Mr. Boppana Ramesh Kumar and his family members
as a partnership concern in 1991, and was reconstituted as a
public limited company in 1996. The company executes civil
construction projects for government departments. It is based in
Hyderabad.


SIVA ENGINEERING: CRISIL Reaffirms 'D' Rating on INR170MM Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Siva Engineering
Company continue to reflect the firm's delays in servicing its
debt. The delays have been caused by weak liquidity, driven by
large working capital requirement.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee         100        CRISIL D (Reaffirmed)

   Cash Credit            170        CRISIL D (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility      53.4      CRISIL D (Reaffirmed)

Siva has a below-average financial risk profile because of high
gearing and subdued debt protection metrics, has large working
capital requirement, and is exposed to risks related to
geographical concentration in revenue and to intense competition.
However, the firm benefits from its promoters' extensive
experience in the infrastructure construction sector.

Siva, set up in 1978 as a partnership firm, constructs bridges,
buildings, and water-treatment plants, primarily in Tamil Nadu.
Its operations are managed by Mr. R Muthuswamy and Mr. Siva
Subramaniam.


SLS MERCANTILE: CRISIL Suspends B+ Rating on INR120MM Cash Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
SLS Mercantile Pvt Ltd.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit            120        CRISIL B+/Stable
   Letter of Credit        30        CRISIL A4
   Proposed Long Term
   Bank Loan Facility      40        CRISIL B+/Stable

The suspension of ratings is on account of non-cooperation by SLS
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SLS is yet to
provide adequate information to enable CRISIL to assess SLS's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information.

Set up in 2007, SLS trades in iron and steel (long and flat)
products. Its day-to-day operations are managed by its director,
Mr. Praveen Sonthalia.


SOLAN SPINNING: CRISIL Lowers Rating on INR56MM Cash Loan to D
--------------------------------------------------------------
CRISIL has downgraded its rating on long-term bank facilities of
Solan Spinning Mills Private Limited to 'CRISIL D' from 'CRISIL
B+/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit              56       CRISIL D (Downgraded from
                                     'CRISIL B+/Stable')

   Proposed Long Term       19       CRISIL D (Downgraded from
   Bank Loan Facility                'CRISIL B+/Stable')

   Term Loan                75       CRISIL D (Downgraded from
                                     'CRISIL B+/Stable')

The downgrade reflects recent instances of delay in servicing debt
obligation due to stretched liquidity, as payments from customers
were not received on time. Stretched liquidity was further
accentuated by internal funding of capex of INR6.5 million towards
capacity enhancement.

The rating also reflects the modest scale of operations,
susceptibility to volatile raw material prices, weak financial
risk profile and working capital-intensive nature of operations.
However, these weaknesses are offset by extensive experience of
promoters in the cotton spinning industry.

SSMPL, established in 2003, manufactures cotton yarn. The company
is promoted and currently managed by Mr. Aseem Gupta . The
manufacturing unit is at Baddi in Solan (Himachal Pradesh).


SRI PADMABALAJI: CRISIL Suspends D Rating on INR490MM Cash Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Sri
Padmabalaji Steels Private Limited (part of the Padmabalaji
group).

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee          20.7      CRISIL D
   Cash Credit            490        CRISIL D
   Letter of Credit       250        CRISIL D
   Long Term Loan         276.5      CRISIL D

The suspension of ratings is on account of non-cooperation by
SPSPL with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SPSPL is yet to
provide adequate information to enable CRISIL to assess SPSPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SPSPL and Suryabalaji Steels Pvt Ltd.
This is because the two companies, together referred to as the
Padmabalaji group, are in the same line of business, and have
common promoters and fungible funds.

SPSPL was set up in 1995 by Mr. M Ravichandhiran and primarily
manufactures steel and ferro alloy castings, mild-steel (MS)
ingots, and thermo-mechanically treated (TMT) bars and roads. The
company has three manufacturing facilities, one each in Annur
(Coimbatore, Tamil Nadu), Karaikal (Puducherry), and Kanjikode
(Kerala). SSPL was set up in 2007 and manufactures only MS ingots.
SSPL has a manufacturing facility at Pudukottai (Tamil Nadu).


SUBH SANKET: Ind-Ra Suspends B+ Long-Term Issuer Rating
-------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Subh Sanket
Traders Private Limited's 'IND B+' Long-Term Issuer Rating to the
suspended category.  The Outlook was Stable.  This rating will now
appear as 'IND B+(suspended)' on the agency's website. The agency
has also migrated SSTPL's INR80 mil. fund-based working capital
limits to 'IND B+(suspended')/'IND A4(suspended) from 'IND
B+'/'IND A4' ratings.

The ratings have been migrated to the suspended category due to
lack of adequate information.  Ind-Ra will no longer provide
ratings or analytical coverage for SSTPL.

The ratings will remain in the suspended category for a period of
six months and be withdrawn at the end of that period.  However,
in the event the issuer starts furnishing information during this
six-month period, the ratings could be reinstated and will be
communicated through a rating action commentary.


THRIARR POLYMERS: CRISIL Suspends 'C' Rating on INR51.7MM Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Thriarr
Polymers Private Limited.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit            51.7       CRISIL C
   Proposed Long Term
   Bank Loan Facility     19.8       CRISIL C

The suspension of ratings is on account of non-cooperation by TPPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, TPPL is yet to
provide adequate information to enable CRISIL to assess TPPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information.

TPPL was set up in 1977 by Mr. S Thyagarajan. The company
manufactures plastic products such as switchgear components,
kitchenware, and automobile components. It has three manufacturing
facilities in Maharashtra.


TIME POLYURETHANE: CRISIL Suspends 'D' Rating on INR37.5MM Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Time
Polyurethane Pvt Ltd.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit            37.5       CRISIL D
   Letter of Credit       37.5       CRISIL D
   Proposed Long Term
   Bank Loan Facility     12.0       CRISIL D
   Term Loan              13.0       CRISIL D

The suspension of ratings is on account of non-cooperation by TPPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, TPPL is yet to
provide adequate information to enable CRISIL to assess TPPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information.

TPPL was founded by Mr. Sharad Padwal and Mr. Vilas Deshpande in
Mumbai (Maharashtra) in 2008. The company trades in chemicals used
in the paint and construction industry.


VINAYAKA CASHEW: CRISIL Ups Rating on INR120MM Packing Loan to B
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
Vinayaka Cashew Company to 'CRISIL B/Stable' from 'CRISIL B-
/Stable' and has reaffirmed its 'CRISIL A4' rating on the firm's
short-term bank facility.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Packing Credit          120       CRISIL B/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

   Proposed Short Term
   Bank Loan Facility       40       CRISIL A4 (Reaffirmed)

The upgrade reflects improvement in VCC's liquidity on account of
increase in cash accrual and continued financial support from its
promoters. While revenue declined to INR287 million in fiscal 2016
from INR391 million in fiscal 2015, operating profitability
remained stable at 4.5%. The average bank limit utilisation in
fiscal 2016 reduced to 86% from 97% in the previous fiscal. The
firm has no debt-funded capital expenditure plan and no debt
obligation over the medium term. CRISIL believes VCC's financial
risk profile, especially liquidity, will improve because of steady
cash generation and need-based funds from its promoters.

The ratings reflect VCC's average financial risk profile because
of modest networth and high gearing, and high working capital
requirement. These weaknesses are partially offset by its
promoters' extensive experience and its established market
position in processing and exporting cashew kernels.
Outlook: Stable

CRISIL believes VCC will continue to benefit from its promoters'
industry experience. The outlook may be revised to 'Positive' if
the firm's financial risk profile improves because of significant
increase in cash accrual and better working capital management.
The outlook may be revised to 'Negative' in case of deterioration
in working capital management, or a significant decline in cash
accrual because of lower revenue or operating profitability,
weakening the liquidity.

VCC, a partnership firm set up in Kerala in 2005, processes and
exports cashew kernels.


VYANKTESH PLASTICS: CRISIL Cuts Rating on INR50MM Cash Loan to B+
-----------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
Vyanktesh Plastics and Packaging Private Limited to 'CRISIL
B+/Stable/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit              50       CRISIL B+/Stable (Downgraded
                                     from 'CRISIL BB-/Stable')

   Inland/Import            20       CRISIL A4 (Downgraded from
   Letter of Credit                  'CRISIL A4+')

The rating downgrade reflects deterioration of financial risk
profile on account of steady decline in its operating
profitability and increased dependence on external debt. The
operating margins of the company declined to 1.4 per cent in 2015-
16 from 3.3 per cent in 2012-13. The decline has led to sharp
reduction in cash generation to less than Rs.1.4 million from
Rs.3.3 million. With decline in operating margins and cash
generation, the debt protection metrics has weakened for the
company. Going forward, the margins are expected to slightly
improve with installation of new offset printing machine in 2015-
16, however it's expected to remain below 2 per cent, which will
continue to lead to weak debt protection metrics for the company.
Furthermore, its working capital intensive operations and modest
cash generation has led to fully utilized bank lines, which offers
little comfort for tightly matching debt obligations to cash
generation. The increase in cash generation and controlled working
capital cycle will remain key rating sensitivity factors over the
medium term.

The rating continue to reflect VPPL's average financial risk
profile, marked by moderate total outside liabilities to tangible
net worth (TOLTNW) ratio and weak debt protection metrics. The
ratings also factor the company's large working capital
requirements and modest scale of operations in the large and
intensely competitive Indian paper industry.

These rating weaknesses are partially mitigated by the extensive
experience of VPPL's promoters in the paper industry.
Outlook: Stable

CRISIL believes that VPPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company enhances its
cash accruals with improved margins, and while improves uponits
working capital management. Conversely, the outlook may be revised
to 'Negative' in case of deterioration of liquidity profile with
cash generation fails to pick up and that working capital cycle
lengthens or in case of large debt funded capital expenditure
plans.

VPPL, incorporated in Ujjain (Madhya Pradesh) in 1989, trades in
kraft paper. The company is promoted by Mrs. Saroj Bangar.



=================
I N D O N E S I A
=================


CIKARANG LISTRINDO: S&P Assigns 'BB' Rating on US$550MM Notes
-------------------------------------------------------------
S&P Global Ratings assigned its 'BB' long-term rating to a
proposed issuance of up to US$550 million in senior unsecured
notes guaranteed by Indonesian power producer PT Cikarang
Listrindo Tbk. (BB/Stable/--; axBBB-/--).

Cikarang Listrindo intends to use most of the proceeds from the
proposed notes to refinance US$500 million in senior unsecured
notes issued by Listrindo Capital B.V. and guaranteed by Cikarang
Listrindo and pay transaction-related premium and expenses.  As a
result, S&P projects a minimal increase in net debt at the power
producer if the transaction goes ahead and the issuance does not
affect S&P's long-term issuer credit rating on the company.

Cikarang Listrindo's balance sheet will remain solid despite
marginally higher reported debt if the transaction goes ahead.
S&P projects cash flow adequacy ratios to remain mostly in line
with the ones S&P earlier anticipated when it raised its long-term
corporate credit rating on the company to 'BB' from 'BB-' on
Aug. 18, 2016.  S&P still forecasts the ratio of funds from
operations (FFO) to debt to be 40%-45% and its ratio of debt to
EBITDA to stay comfortably below 2.5x in 2017 and 2018 if the
transaction proceeds.  S&P believes those ratios can accommodate
incremental debt from a proposed project with General Electric Co.
(GE), a U.S.-based conglomerate.

The proposed terms and conditions of the transaction are mostly
similar to the previous notes.  Cikarang Listrindo intends to
raise the funds through the same special purpose vehicle it used
earlier (Listrindo Capital B.V.).  S&P assess the changes in the
proposed covenants to be immaterial given the company's enhanced
credit buffer, limited need for additional debt funding post
transaction, and S&P's expectation that Cikarang Listrindo will
maintain prudent financial policies over the next three years.
Allowed debt carve-outs for working capital, for example, would
increase to US$100 million (or 7.5% of assets), compared with
US$80 million previously. Restricted payments could also be made
if the company is in compliance with specific fixed charge
coverage and leverage ratios.  Potential debt from the project
with GE would not be incorporated in the debt incurrence covenant
computations because it would be developed outside of the
restricted group using non-recourse financing.

The company has not finalized the notes' tenor, but S&P expects it
to be at least five years.  This will support the company's
liquidity, given Cikarang Listrindo has no other debt maturities
besides the 2019 senior notes.

The stable outlook on the corporate credit rating reflects S&P's
expectation that Cikarang Listrindo will maintain steady cash flow
adequacy through 2018.  It also reflects S&P's view that the
company's management will remain prudent in its spending decision,
maintain moderate leverage, and manage cash outflows such that the
company's FFO-to-debt ratio stays comfortably above 30% through
2018.



===============
M O N G O L I A
===============


BOGD BANK: Moody's Lowers Foreign Currency Deposit Rating to Caa1
-----------------------------------------------------------------
Moody's Investors Service has downgraded the foreign currency
long-term deposit ratings of seven Mongolian banks to Caa1 from
B3, and initiated a review for further downgrade.

The seven banks are: Bogd Bank LLC; Capital Bank LLC; Golomt Bank
LLC; Khan Bank LLC; State Bank LLC; Trade and Development Bank of
Mongolia LLC; and XacBank LLC.

Moody's has also downgraded the local currency deposit ratings of
Golomt Bank LLC, Khan Bank LLC, State Bank LLC, Trade and
Development Bank LLC, and XacBank LLC to B3 from B2, and has
placed the ratings on review for further downgrade.

Moody's has also placed on review for downgrade the B3 local
currency deposit ratings of Bogd Bank LLC and Capital Bank LLC.

At the same time, Moody's has downgraded the foreign currency
long-term issuer rating of Development Bank of Mongolia LLC to B3
from B2.

The rating actions follow Moody's downgrade of Mongolia's
sovereign ratings to B3 from B2 and the placing of the ratings on
review for further downgrade on Aug. 26, 2016.

                         RATINGS RATIONALE

The rating action on the seven banks' ratings is based on the
consideration that the creditworthiness of the Mongolian banking
system is highly correlated to that of the sovereign.

The sovereign downgrade was driven by the sharp deterioration in
fiscal metrics which -- compounded by weak growth and already very
low foreign exchange buffers -- significantly exacerbates the
fiscal challenges and liquidity risks facing the government.

The review for further downgrade is attributable to considerable
uncertainty regarding both Mongolia's current fiscal position and
future trajectory.  That uncertainty has, in turn, undermined
investor confidence in the sovereign's credit profile, potentially
impeding its access to international debt markets.

As a result of this rating action, (1) local currency deposit
ratings of Golomt Bank, Khan Bank, State Bank, and Trade and
Development Bank of Mongolia, and XacBank have been downgraded to
the same level Mongolia's sovereign rating, (2) the seven banks'
foreign currency deposit ratings have been downgraded to
Mongolia's foreign currency ceiling of Caa1, and (3) all long-term
ratings of the seven banks have been placed on review for
downgrade.  The banks' senior unsecured debt ratings, where
applicable, are unchanged, but are also placed on review for
downgrade.

Moody's assigns b3 Baseline Credit Assessments (BCAs) -- which
reflect our opinion of a bank's intrinsic or standalone financial
strength -- to six of the banks (except Capital and DBM), in line
with the B3 issuer rating of the sovereign, and have also placed
the BCAs under review for further downgrade.

Khan Bank's BCA was downgraded to b3 from b2, reflecting the
increased asset risk related to its domestic government bond
holdings.  However, neither Capital Bank's nor Development Bank of
Mongolia's BCAs of caa1 are changed by this rating action.

The rating action on Development Bank of Mongolia LLC (DBM) is
driven by its strong linkages with the government through direct
ownership and its clear public policy mandate.

DBM also benefits from certain forms of explicit government
support through the DBM Law.  Consequently, its ratings are
closely linked to the sovereign rating, and Moody's expects the
government to support the bank, if needed.

What Could Change the Rating -- Up: Bogd Bank LLC; Golomt Bank
LLC; Khan Bank LLC; State Bank LLC; Trade and Development Bank of
Mongolia LLC; and XacBank LLC

Because these banks' b3 BCAs are at the same level as the rating
of the government, an upgrade is unlikely in the near term.

A return to a stable outlook for each bank would require a return
to a stable outlook for the sovereign rating, as well as evidence
that asset quality pressures can be contained within the review
period.  For those banks with significant overseas ownership and
access to overseas capital, the ratings outlook could return to
stable before the sovereign rating returns to stable.

The stabilization of the banks' ratings at current levels with a
negative outlook could result if the government's issuer rating is
maintained at its current B3 with a negative outlook.

What Could Change the Rating - Down: Bogd Bank LLC; Golomt Bank
LLC; Khan Bank LLC; State Bank LLC; Trade and Development Bank of
Mongolia LLC; and XacBank LLC

Factors that could result in a downgrade include, but are not
limited to, these:

  1) A downgrade of Mongolia's sovereign rating; or
  2) A downgrade of their BCAs

The banks' BCAs could be downgraded if: (1) a significant
deterioration in asset quality occurs; for example, problem
loans/gross loans exceeds 7.5% for a sustained period; (2)
tangible common equity falls below 8% ; or (3) profitability
significantly deteriorates, such that net income declines below
1.0% of tangible assets on a sustained basis.

What Could Change the Rating - Up: Capital Bank LLC

The bank's long-term rating incorporates a one-notch uplift from
its BCA and is currently at the same level as the sovereign
rating.  As such, positive rating action is unlikely in the
absence of upward pressure on the sovereign rating.

A return to a stable outlook for the bank would require a return
to a stable outlook for the sovereign rating.

A stabilization of the bank's ratings at current levels with a
negative outlook could result if the government's issuer rating is
maintained at its current B3 with a negative outlook.

However, Moody's would consider upgrading Capital Bank's BCA if
the bank improves its funding structure and establishes a track
record of maintaining healthy capital, asset quality and
profitability metrics through the economic cycle.

What Could Change the Rating - Down: Capital Bank LLC

Factors that could result in a downgrade include, but are not
limited to:

  1) A downgrade of Mongolia's sovereign rating; or
  2) Downgrade of its BCA

The bank's BCA could be downgraded if: (1) its tangible common
equity falls below 8.0%; (2) its annual net income/tangible assets
falls below 0.5% due to a sharp rise in credit losses; or (3) its
asset quality deteriorates significantly; for example, new
nonperforming loans (NPLs)/gross loans exceeds 4.0%; or (4) a
significant deterioration in asset quality for a sustained period
results in tangible common equity falling below 8% and leading to
profitability materially falling on a sustained basis.

What Could Change the Rating - Up: Development Bank of Mongolia
LLC (DBM)

The bank's long-term rating incorporates a one-notch uplift from
its BCA and is currently at the same level as the sovereign
rating.  As such, positive rating action is unlikely in the
absence of upward pressure on the Government of Mongolia rating.

A return to a stable outlook would require a return to a stable
outlook for the sovereign rating.

A stabilization of the bank's ratings at current levels with a
negative outlook could result if the government's issuer rating is
maintained at its current B3 with a negative outlook.

An upgrade of the BCA of caa1 could be considered if DBM
demonstrates a track record of stable asset quality over the next
4-6 quarters and, at the same time, improves its capitalization,
while maintaining its current liquidity position.

What Could Change the Rating - Down: Development Bank of Mongolia
LLC (DBM)

Factors that could result in a downgrade include, but are not
limited to:

  (1) A downgrade of Mongolia's sovereign rating; or
  (2) If there is a large increase in the losses incurred from
      its policy function, without a corresponding increase in
      capital.

The bank's BCA could be downgraded if: (1) its tangible common
equity capital falls below 7.0%; (2) its annual net
income/tangible assets falls below 0.5% due to a sharp increase in
credit losses; or (3) a significant deterioration occurs in asset
quality; for example, new past due loans/gross loans exceeds 5.0%.

The resultant ratings and actions are:

Bogd Bank LLC

   -- Foreign Currency Deposit Rating downgraded to Caa1 from B3,
      and placed on review for further downgrade
   -- B3 Local Currency Deposit Rating, b3 Baseline Credit
      Assessment (BCA)/adjusted BCA placed on review for
      downgrade, and B2(cr) long-term Counterparty Risk Assessment
      placed on review for downgrade
   -- Short-term LC/FC Deposit Rating of NP and Short-term
      Counterparty Risk Assessment of NP(cr) affirmed

Capital Bank LLC

   -- Foreign Currency Deposit Rating downgraded to Caa1 from B3,
      and placed on review for further downgrade
   -- B3 Local Currency Deposit Rating placed on review for
      downgrade
   -- caa1 BCA/adjusted BCA, NP Short-term LC/FC Deposit Rating
      and NP(cr) Short-term Counterparty Risk Assessment affirmed
   -- Long-term Counterparty Risk Assessment downgraded to B3(cr)
      from B2(cr), and placed on review for downgrade

Golomt Bank LLC

   -- Local Currency Deposit Rating downgraded to B3 from B2, and
      Foreign Currency Deposit Rating downgraded to Caa1 from B3,
      and placed on review for further downgrade
   -- b3 BCA/adjusted BCA and B2(cr) Long-term Counterparty Risk
      Assessment placed on review for downgrade
   -- Short-term Counterparty Risk Assessment of NP(cr) affirmed

Khan Bank LLC

   -- Local Currency Deposit Rating downgraded to B3 from B2,
      Foreign Currency Deposit Rating downgraded to Caa1 from B3,
      LC FC issuer rating/FC and LC senior unsecured MTN/FC and
      LC subordinated MTN downgraded to B3/(P)B3/(P)Caa1 from
      B2/(P)B2/(P)B3, and placed on further review for downgrade

   -- BCA/adjusted BCA downgraded to b3 from b2 and Counterparty
      Risk Assessment downgraded to B2(cr) from B1(cr), and
      placed on review for downgrade

   -- Short-term Bank Deposit Rating of NP and Short-term
      Counterparty Risk Assessment of NP(cr) affirmed

State Bank LLC

   -- Local Currency Deposit Rating downgraded to B3 from B2 and
      Foreign Currency Deposit Rating downgraded to Caa1 from B3,
      and placed on review for further downgrade
   -- b3 BCA/adjusted BCA and B2(cr) Long-term Counterparty Risk
      Assessment placed on review for downgrade
   -- Short-term Counterparty Risk Assessment of NP(cr) affirmed

Trade and Development Bank of Mongolia LLC

   -- Local Currency Deposit Rating downgraded to B3 from B2,
      Foreign Currency Deposit Rating downgraded to Caa1 from B3,
      and placed on review for further downgrade
   -- Mongolia government backed senior unsecured downgraded to
      B3 from B2, and placed on review for further downgrade
   -- LC and FC issuer rating/FC senior unsecured/FC senior
      unsecured MTN/FC subordinated MTN of
      B3/B3/(P)B3/(P)Caa1,BCA/adjusted BCA of b3, and Long-term
      Counterparty Risk Assessment of B2(cr) placed on review for
      downgrade
   -- Short-term Bank Deposit rating/ Short-term Issuer rating/
      Other Short-term Program rating of NP/NP/(P)NP and Short-
      term Counterparty Risk Assessment of NP(cr) affirmed

XacBank LLC

   -- Local Currency Deposit Rating downgraded to B3 from B2,
      Foreign Currency Deposit Rating downgraded to Caa1 from B3,
      and placed on review for further downgrade
   -- LC and FC issuer rating/FC senior unsecured MTN of
      B3/(P)B3,BCA/adjusted BCA of b3 and Long-term Counterparty
      Risk Assessment of B2(cr) placed on review for downgrade
   -- Short-term Bank Deposit rating/ Short-term Issuer rating/
      Other Short-term Program rating of NP/NP/(P)NP and Short-
      term Counterparty Risk Assessment of NP(cr) affirmed

Development Bank of Mongolia LLC

   -- Foreign Currency Issuer Rating downgraded to B3 from B2,
      and placed on review for further downgrade
   -- Foreign Currency backed senior unsecured/backed senior
      unsecured MTN downgraded to B3/(P)B3 from B2/(P)B2 and
      Long-term Counterparty Risk Assessment downgraded to B3(cr)
      from B2(cr),and placed on review for downgrade
   -- caa1 BCA/adjusted BCA and NP(cr) Short-term Counterparty
      Risk Assessment affirmed

                     PRINCIPAL METHODOLOGIES

The principal methodology used in rating Bogd Bank LLC, Capital
Bank LLC, Golomt Bank LLC, Khan Bank LLC, State Bank LLC, Trade
and Development Bank of Mongolia LLC and XacBank LLC was Banks
published in January 2016.  The principal methodology used in
rating Development Bank of Mongolia LLC was Government-Related
Issuers published in October 2014.

All entities are headquartered in Ulaanbaatar.  Below are details
of their assets as of Dec. 31, 2015:

   -- Bogd Bank LLC: MNT44.3 billion(USD22.2 million)
   -- Capital Bank LLC: MNT745.6 billion (USD374.1 million)
   -- Golomt Bank LLC: MNT 3,805.2billion (USD1,909.3 million)
   -- Khan Bank LLC: MNT 5,117.2billion (USD2,567.6 million)
   -- State Bank LLC: MNT 1,702.9billion (USD854.5 million)
   -- Trade and Development Bank of Mongolia LLC:
      MNT5,544.1billion (USD2,781.8 million)
   -- XacBank LLC: MNT 1,936.1billion (USD971.5 million)
   -- Development Bank of Mongolia LLC: MNT6,070 billion
      (USD3,045.9 million)


MONGOLIA: Moody's Lowers Issuer Rating to B3 & Puts on Review
-------------------------------------------------------------
Moody's Investors Service has downgraded Mongolia's government
issuer rating to B3 from B2, and initiated a review for further
downgrade.

The key driver for the downgrade is the sharp deterioration in
fiscal metrics, which Moody's does not expect will reverse
materially in the next few years.  Compounded by weak growth and
already very low foreign exchange buffers, this will significantly
exacerbate fiscal challenges and liquidity risks facing the
government.

The review will allow Moody's to assess the speed and
effectiveness of the policy response to these heightened
challenges, and their implications for growth and the management
of external liquidity, which would depend partly on the
availability and cost of external financing.

Moody's expects to complete the review within three months.

Concurrently, Moody's has downgraded the government's senior
unsecured debt rating to B3 and the senior unsecured MTN rating to
(P)B3.  The review for downgrade also applies to these ratings.
The short-term issuer rating remains unchanged at Not Prime.

                         RATINGS RATIONALE

RATIONALE FOR DOWNGRADE TO B3: DETERIORATING DEBT AND FISCAL
METRICS

Mongolia's core fiscal and economic fundamentals have worsened
materially since the rating was affirmed in January of this year.
That trend exacerbates the sovereign's already high exposure to a
reversal in investor sentiment, exacerbating domestic and external
liquidity pressures.

Mongolia's fiscal deficit has widened very significantly in recent
months, due to revenue underperformance and a sharp increase in
spending in the first half of this year, which coincided with the
run-up to national elections at the end of June.  This will raise
the government's near-term financing needs and add to external
vulnerability pressures.  While some of the spending is likely
one-off rather than recurrent, Moody's estimates that the
government's fiscal consolidation efforts will now start from a
much weaker base, with a budget gap of around 15% of GDP, versus
our earlier expectations of about 5% of GDP for 2016.  In 2017,
Moody's assumes that growth in expenditure will slow markedly
while revenues may recover somewhat.  Still, Moody's expects the
deficit to be only marginally smaller, at around 14% of GDP.

Larger fiscal deficits will translate into a marked increase in
the debt burden.  In addition, with more than three-quarters of
government debt denominated in foreign currency, the recent
depreciation in the Mongolian togrog will inflate the value of
existing debt.  Any further weakening of the currency would raise
the debt burden further.  Higher domestic interest rates will also
push up refinancing costs.  Overall, Moody's estimates that
government debt could rise to 71% of GDP in 2017 from 63% in 2015,
considerably higher than what Moody's projected previously and
above the 53% median debt-to-GDP ratio amongst B-rated sovereigns
in 2016.

Debt affordability, as measured by interest payments to revenues,
has already worsened significantly over recent years, to 12.2% in
2015 from 2.5% in 2012.  The rise in risk premia that Moody's
thinks will largely persist for some time implies that debt
servicing costs will deteriorate further.

Efforts to strengthen the fiscal position will be more challenging
in the current adverse growth environment.  The 450 basis point
hike in central bank interest rates on Aug. 18, and any further
tightening of monetary policy should pressure on the exchange rate
persist, will likely dampen GDP growth in the next two years.
Already, recent developments point to a weaker and delayed
recovery compared with our previous expectations.  On the back of
a decline in mining and construction activity, GDP growth
moderated to 1.4% year-on-year during the first half of 2016, from
2.0% during the same period in the last year.  With little
prospect of an imminent pick-up in the mining sector, Moody's
expects real GDP for the full year to rise 1.5% year-on-year,
weaker than the 2.8% that Moody's previously forecasts.  In 2017
and 2018, the implementation of the Oyu Tolgoi copper mining
project should lead to some pickup in growth, pushing GDP growth
up to around 3.5-5.0%.  This would still remain significantly
below Mongolia's GDP growth in the past decade and, in turn, weigh
on the effectiveness of fiscal consolidation measures.

In an environment of sharply higher government financing needs,
uncertainty about the nature and effectiveness of policies to
reduce them and weaker growth, already very low foreign exchange
reserves could come under further pressure and accentuate already
material government liquidity risks.

                  RATIONALE FOR REVIEW TO DOWNGRADE

Recent developments have created considerable uncertainty
regarding both the current fiscal position in Mongolia and its
future trajectory.  That uncertainty has in turn undermined
investor confidence in Mongolia's credit profile, potentially
impeding its access to international debt markets.  The review
will allow Moody's to determine whether the rating remains
appropriately positioned in the 'B' range or whether external
financing pressures are more consistent with a Caa1 rating.

While the new government has announced its intention to narrow
deficit and debt levels, and its wider deficit projections suggest
its willingness to be more transparent than previous
administrations in its calculation of budgetary data, a high
degree of uncertainty exists about the level and nature of the
budget gap, the impact on the government's debt burden and how the
government plans to achieve its broader economic policy goals.

The review period will allow Moody's to assess the government's
plans to address the worsening position, and their impact on
growth and external metrics.  More details on the 2016 Budget,
which is due within the review period, should also emerge.

Moody's will also gauge the impact of the fiscal deterioration on
Mongolia's ability to continue to meet its substantial external
finance needs over the coming years, and the implications for its
foreign exchange reserves buffer.

       WHAT COULD STABILIZE THE RATING AT THE CURRENT LEVEL

At the end of the review period, Moody's could maintain the
current B3 rating with a stable outlook, if it were to conclude
that the government's response to the worsening fiscal position
was likely to stabilize the fiscal position, support the
resumption in growth and inward investment and allow Mongolia to
retain access to international debt markets at affordable rates.

WHAT COULD STABILIZE THE RATING AT THE CURRENT LEVEL, WITH A
NEGATIVE OUTLOOK

Moody's could maintain the current B3 rating with a negative
outlook if it were to conclude that, notwithstanding the emergence
of policies intended to stabilize the fiscal position and support
growth, there were likely to remain persistent negative pressure
on Mongolia's credit metrics over the next 12-18 months, whether
related to the effectiveness of fiscal tightening, the impact on
GDP growth or a diminishing likelihood for Mongolia to meet its
widening gross borrowing requirements and ability to refinance its
external debt repayments.

                WHAT COULD CHANGE THE RATINGS DOWN

Triggers for a further downgrade at the end of the review would
most likely stem from the lack of a well-defined set of policies
aimed at curbing rising fiscal deficits and the growing debt
burden, heightening the risk of investor confidence quickly
deteriorating and external metrics and liquidity worsening
sharply, to such an extent that Mongolia's credit metrics are no
longer comparable with B3-rated sovereigns.

  GDP per capita (PPP basis, US$): 12,147 (2015 Actual) (also
   known as Per Capita Income)
  Real GDP growth (% change): 2.3% (2015 Actual) (also known as
   GDP Growth)
  Inflation Rate (CPI, % change Dec/Dec): 1.9% (2015 Actual)
  Gen. Gov. Financial Balance/GDP: -5% (2015 Actual) (also known
   as Fiscal Balance)
  Current Account Balance/GDP: -4.8% (2015 Actual) (also known as
   External Balance)
  External debt/GDP: 185.6% (2015 Actual)
  Level of economic development: Low level of economic resilience
  Default history: At least one default event (on bonds and/or
   loans) has been recorded since 1983.

On Aug. 23, 2016, a rating committee was called to discuss the
rating of the Mongolia, Government of.  The main points raised
during the discussion were: The issuer's fiscal or financial
strength, including its debt profile, has materially decreased.
The issuer's economic fundamentals, including its economic
strength, have not materially changed.  The issuer's
susceptibility to event risks has not materially changed.

The principal methodology used in these ratings was Sovereign Bond
Ratings published in December 2015.

The weighting of all rating factors is described in the
methodology used in this credit rating action, if applicable.


TRADE AND DEVELOPMENT: S&P Affirms 'B-' ICR, Outlook Negative
-------------------------------------------------------------
S&P Global Ratings said it has revised to negative from stable its
outlooks on two major Mongolian commercial banks - Trade and
Development Bank of Mongolia LLC (TDB) and Golomt Bank of
Mongolia.  At the same time, S&P affirmed its 'B-' long-term
issuer credit ratings on the banks.

In S&P's opinion, a weaker economic growth outlook and
deteriorated fiscal and external conditions could undermine the
operating environment for Mongolia's banks.  These factors were
also key considerations in S&P's lowering of the Mongolian
sovereign ratings on Aug. 19, 2016.  In S&P's view, profitability
of the country's banking sector will likely remain under
significant pressure mainly due to deteriorating asset quality.
Mongolia's weak external condition could also add to banking
system risks and increase overall funding costs.  In turn, S&P
holds the view that the challenging operating environment could
significantly undermine the industry stability and overall
creditworthiness of the Mongolian banks.

"We expect asset quality at Mongolia's banks to continue to
deteriorate and credit costs to remain elevated while demand and
prices for commodities remain weak.  We expect Mongolian economic
growth to slow to 1.3% this year, compared with our previous
estimate of 2.6%.  We project growth to average about 3.2% through
2019 (4% previously).  Our lower growth estimates stem partly from
the ancillary effects of Mongolia's weaker terms of trade and
partly from the country's mixed mining policies, which have
discouraged foreign direct investment.  We also note that
Mongolia's external position continues to weaken.  We project the
country's current account deficit will return to double digits as
a percentage of GDP for the forecast horizon (2016-2019) because
the import content of the two big mining projects is high.  We
also note that about a third of banking system loans are in
foreign currency, suggesting balance sheet vulnerabilities
especially given recent sharp local currency depreciation.  We
think the banks will likely face a more challenging condition from
external capital markets.  While Bank of Mongolia hiked its policy
rates to 15% from 10.5% on Aug. 18, 2016, to restore local
currency confidence, banks will likely face upward pressure on
overall funding costs, in our view," S&P said.

Reflecting the challenging banking operating environment, S&P now
regards Mongolia banks' industry risk trend as negative and
revised the outlooks on TDB and Golomt Bank to negative.  In S&P's
view, Mongolia remains one of the highest risk banking systems by
global standards along with countries such as Egypt, Greece,
Ukraine, and Belarus.

                              OUTLOOK

The negative outlooks on TDB and Golomt Bank reflect S&P Global
Ratings' view that there is at least one-in-three chance that S&P
would revise the banks' anchors down as the banking sector faces
the challenge of maintaining current levels of profitability and
funding profiles in the coming 12-18 months.

                               TDB

S&P could lower the ratings on TDB if the banking sector's
profitability and funding profiles weaken significantly.  S&P
could lower the ratings on TDB if the bank's asset quality
deteriorates substantially with aggressive growth in the coming
few years, exposing it to riskier and more concentrated assets.

S&P could revise the outlook back to stable if: (1) banking system
risk falls on recovering profitability and stabilized external
funding conditions; 2) the bank improves and sustains its
capitalization with a risk-adjusted capital (RAC) ratio above 3%
in the coming two years; or (3) the bank maintains better asset
quality and lower credit costs than its peers.

                            GOLOMT BANK

S&P could lower the ratings on Golomt Bank if the banking sector's
profitability and funding profiles weaken significantly.  S&P
could also lower the ratings on Golomt Bank if the bank's
capitalization weakens further, with an RAC ratio below 3%, in the
coming two years; or its asset quality measures deteriorate faster
and credit costs rise sharply higher than the industry average.

S&P could revise the outlook back to stable if the bank continues
to improve its management and governance structure while
sustaining its business stability, or it significantly improves
and maintains its asset quality measures and profitability with
low credit costs.

BICRA SCORE SNAPSHOT

                                 SCORE
                                 To                    From
BICRA*                           10                    10
Economic Risk*                   10                    10
Economic Risk Trend              Stable                Stable
Economic Resilience              Very High Risk        Very High
Risk
Economic Imbalances              Very High Risk        Very High
Risk
Credit Risk In The Economy       Extremely High Risk   Extremely
High Risk
Industry Risk*                   9                     9
Industry Risk Trend              Negative              Stable
Institutional Framework          Extremely High Risk   Extremely
High Risk
Competitive Dynamics             High Risk             High Risk
Systemwide Funding               Very High Risk        Very High
Risk

*On a scale of 1 (lowest risk) to 10 (highest risk)

RATINGS LIST
                         To               From

Trade and Development Bank of Mongolia LLC
Issuer Credit Rating
                         B-/Negative/B    B-/Stable/B
Senior unsecured
                         B-               B-

Golomt Bank of Mongolia

Issuer Credit Rating
                         B-/Negative/B    B-/Stable/B



=================
S I N G A P O R E
=================


PACTERA TECHNOLOGY: Moody's Lowers CFR to B2, On Review
-------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Pactera Technology International Ltd. to B2 from B1.

Moody's has also downgraded to B2 from B1 the senior secured debt
rating on the notes issued by BCP Singapore VI Cayman Financing
Company Ltd (BCP Financing Co.) and guaranteed by Pactera.

Both ratings are on review for downgrade.

                        RATINGS RATIONALE

"The downgrade of Pactera's corporate family rating to B2 reflects
our concerns that ongoing operational challenges will continue to
pressure the company's operating margin below the levels expected
for the B1 rating category," says Lina Choi, a Moody's Vice
President and Senior Credit Officer.

Since 1Q 2015, Pactera has reported operating profit margins below
3%, as against previous levels of 5%-10%.  Moody's had earlier
expected that Pactera's profitability would recover starting at
end-2015.  Moody's notes that Pactera has continued to face a high
cost base and increasing working capital needs in China.

Persistently weak operating margins and working capital outflows
have negatively affected Pactera's cash flow generation and raised
its short-term debt.  Moody's estimates that the company's funds
from operations to debt will stay below 8%-10% over the next 12-18
months; a result which would no longer support a B1 rating.

"The review for downgrade reflects our concerns over Pactera's
ability to meet the potential notes repayment of $275 million,
given that the announced exit of The Blackstone Group, a
shareholder with a majority stake, will trigger the change of
control clause and mandatory notes redemption offer," adds Choi,
who is also the Lead Analyst for Pactera.

On Aug. 22, 2016, Pactera announced that Blackstone and certain
other shareholders had entered into a share purchase agreement
with the HNA Group (unrated), pursuant to which the HNA Group
would purchase substantially all of the issued and outstanding
shares of BCP Financing Co.'s parent company.

The completion of the transaction remains subject to regulatory
approvals and the satisfaction of certain other closing
conditions, but is expected to close prior to mid-2017.  There has
been no disclosure about the funding plan of this transaction.

Based on the indenture of the secured notes issued by BCP
Financing Co. and guaranteed by Pactera, the share purchase
transaction would trigger the change of control clause.  The
change of control clause stipulates that if current shareholders
sell down more than 50% of BCP Financing Co.'s voting stock, BCP
Financing Co. may need to offer to repurchase the full amount of
the notes within 30 days of the completion of the deal.

At June 30, 2016, Pactera reported cash of $52 million and
accounts receivables totaling $338 million.  Based on the average
159 days for accounts receivables, these cash sources are
insufficient to cover the potential notes redemption requirement
of around $275 million in a timely manner.

Moody's is also concerned that the instability of the capital
structure will further exacerbate operational challenges for
Pactera and cause business disruptions.

Moody's points out that Pactera's ability to service its financial
obligations depends mainly on the intentions and ability of HNA
Group, and that such factors remain uncertain.  A prolonged delay
in finalizing funding sources could result in a multiple notch
downgrade of Pactera's rating.

Moody's review will focus on:1) further information becoming
available regarding the terms of the share purchase agreement with
HNA Group; 2) a clear funding framework from the HNA Group, with a
specific time line to service financial obligations associated
with the change of control; and 3) whether or not Pactera's
capital structure is stable over the long term, which would in
turn depend primarily on the financial capability of the HNA Group
and the potential new shareholder's willingness to support
Pactera.

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

Pactera Technology International Ltd. and its subsidiaries provide
IT services to multinational and Chinese corporations.  It was
formed from the merger of VanceInfo Technologies Inc (unrated) and
Hisoft Technology International Limited (unrated) in 2012 and
currently operates 16 delivery centers across 12 countries and PRC
special administrative regions.  In 2015, the company reported
revenue of USD777 million.



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


HANJIN SHIPPING: Creditors End Support for Shipping Firm
--------------------------------------------------------
Yonhap News Agency reports that creditors of Hanjin Shipping Co.
on August 30 decided not to extend additional support to the cash-
strapped shipper, creditor sources said, triggering speculation
about its possible court receivership.

Yonhap relates that a creditor-led restructuring scheme for the
largest South Korean shipper is set to end Sept. 4, which means
the Hanjin Group will be left with little choice but to file for
receivership before the deadline.

According to Yonhap, the creditors, led by the state-run Korea
Development Bank (KDB), have been ratcheting up pressure on the
world's eighth-largest shipping line to roll out stronger self-
rescue plans with a threat to put it under receivership.

But Hanjin Shipping's latest restructuring scheme centered on an
infusion of KRW400 billion (US$357 million) from its largest
shareholder, Korean Air Lines, which fell short of the demands of
creditors, which have asked for at least KRW600 billion, Yonhap
relates.

"We have reached the conclusion that we cannot accept (Hanjin)'s
request for fresh funds, though both sides made efforts to narrow
differences," the report quotes Lee Dong-geol, head of the KDB, as
saying in a news conference, citing a lack of responsibility of
the company's biggest shareholder.

He also expressed the concern that the Korean creditors' possible
infusion of additional cash into the debt-ridden shipping firm
would only be used to repay its debts to overseas creditors,
instead of being spent to improve its corporate value, Yonhap
says. He described any fresh cash injections as "pouring water
into a broken jar."

Asked to comment on speculation by an association of local
shippers that Hanjin's court receivership would incur a loss of
KRW17 trillion (for creditors), Lee said, "The estimate could be
right or wrong, but the situation may not deteriorate to that
level. We'll strive to minimize our losses," according to Yonhap.

Yonhap says Lee then ruled out a possible scenario of merging
Hanjin Shipping into its smaller domestic rival Hyundai Merchant
Marine. "At present, the merger is not on the table, though it can
be an option in the future."

Yonhap relates that touching on the concern that a liquidation of
Hanjin would deter the competitiveness of the nation's shipping
industry, the KDB head said, "(Creditors) will collect various
opinions on the matter before coming up with the best package."

According to the report, Hanjin Shipping has been striving to cut
its chartered rates and extend the maturity of its debts in the
face of its worsening financial health stemming from a continued
fall in freight rates.

The shipper said early this week that some foreign financial
institutions had agreed to extend the maturity of its debts, which
would ease its financial strain, adds Yonhap.


SK E&S: S&P Affirms 'BB+' Rating on Securities; Outlook Negative
----------------------------------------------------------------
S&P Global Ratings said that it had revised its outlook on SK E&S
Co. Ltd. to negative from stable.  At the same time, S&P affirmed
its 'BBB' long-term corporate credit rating on the company and
'BB+' long-term issue rating on its subordinated perpetual capital
securities.  SK E&S is a Korea-based power generation and
metropolitan gas distribution company.

"The outlook revision reflects our view that SK E&S' financial
metrics could weaken over the next 12 months because of lower
profitability and high debt," said S&P Global Ratings credit
analyst Jun Hong Park.

S&P expects the company to face ongoing profitability pressure in
its power generation business over the next one to two years,
mainly due to weak electricity selling prices in Korea.  Also, S&P
estimates that the company's debt will remain high in 2016
primarily due to its aggressive capital investments.  These
investments include a new liquefied natural gas power plant in
Jangmoon and combined heat and power plant in Wirye.

"We affirmed the ratings because we expect SK E&S' operating
performance to improve from 2017 onward because of additional
profits from its new power plants," said Mr. Park.  However, the
extent of the improvement is currently unclear, given the
challenging industry conditions.  In S&P's view, operating
conditions for Korean independent power producers (IPPs) will
remain tough over the next two years due to an increase in
electricity capacity and reserve rate as well as a declining
system marginal price in the country's electricity market.
However, S&P believes favorable fuel-sourcing agreements could
help SK E&S maintain higher operating profit in the power business
than its domestic peers.

"We expect SK E&S will make ongoing efforts to improve its
financial metrics through asset disposals and reduced capital
investment.  Under our base-case scenario, we assume the company
will sell some of its noncore assets over the next 12 months and
use the proceeds to reduce debt.  Also, we expect SK E&S' capital
investments to decline to Korean won (KRW) 600 billion to KRW800
billion in 2016 and KRW300 billion to KRW500 billion in 2017, from
about KRW1.6 trillion in 2015.  This is mainly due to the planned
completion of its Jangmoon and Wirye plants in early 2017.  As a
result, we estimate the company's adjusted debt-to-EBITDA ratio to
improve to about 3.0x-4.0x in 2017, from about 5.4x in 2015, under
our base case.  However, we see uncertainties over the company's
execution capabilities and capital market conditions," S&P said.

The highly stable and regulated nature of SK E&S' gas distribution
business supports the company's relatively good competitive
position compared to peers, in S&P's view.  Also, the company has
significant assets on its balance sheet, which S&P believes it may
dispose of to improve its financial strength.  S&P assess SK E&S'
comparable rating analysis as positive to reflect these factors.

The negative outlook reflects S&P's expectation that SK E&S' weak
operating performance and higher debt as a result of aggressive
investments could weaken measures of its credit quality over the
next 12-18 months.  Although S&P expects the company to improve
its financial metrics from 2017, mainly through asset disposals
and additional profit contribution from its new plants, S&P sees
some uncertainties and execution risks on these plans.

S&P could lower the ratings if SK E&S' adjusted debt-to-EBITDA
ratio does not materially improve toward 4.0x over the next 12
months as a result of: (1) slower-than-expected progress on asset
disposals and debt reductions; (2) a more significant
deterioration in profitability than S&P expected, mainly due to a
rapid decline in electricity sales prices; or (3) significant
delay in the execution of its new plants.

S&P may revise the outlook to stable if the company reverses the
deterioration in its financial metrics through asset disposals and
business restructuring while improving its operating performances.
A revision hinges on the adjusted debt-to-EBITDA ratio improving
comfortably below 4.0x on a sustainable basis.


                             *********

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 ***