TCRAP_Public/170721.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

             Friday, July 21, 2017, Vol. 20, No. 144

                            Headlines


A U S T R A L I A

APD BUILDING: First Creditors' Meeting Set for July 31
GAG BRICKLAYING: First Creditors' Meeting Set for July 28
LENDINGPOST GROUP: First Creditors' Meeting Set for July 26
M T MILK: First Creditors' Meeting Set for July 28
MESOBLAST LIMITED: Issues 6.03 Million Ordinary Shares to Osiris

NEOLINK PTY: Second Creditors' Meeting Set for July 28
NUON PTY: Second Creditors' Meeting Set for July 27


C H I N A

COUNTRY GARDEN: Moody's Assigns Ba1 Rating to Proposed USD Notes
SUNSHINE 100: S&P Lowers Corporate Credit Rating to 'CCC+'


I N D I A

ALLIED FIBRE: Ind-Ra Migrates Issuer Rating to D Not Cooperating
ANUBHAV TRADING: Ind-Ra Gives 'BB-' Issuer Rating, Outlook Stable
ANUJ TEXTILES: Ind-Ra Affirms 'BB' Issuer Rating, Outlook Stable
AZURE POWER: Fitch Rates Proposed USD Sr. Notes 'BB-(EXP)'
AZURE POWER: Moody's Assigns (P)Ba3 Rating to Proposed USD Notes

CHUGH INDUSTRIES: CRISIL Assigns B+ Rating to INR6.5MM Loan
DOLPHIN OFFSHORE: CRISIL Cuts Rating on INR7.0MM Loan to 'C'
EUGEN LABORATORIES: CRISIL Assigns 'B' Rating to INR39MM LT Loan
HI-CAN INDUSTRIES: CRISIL Assigns 'B' Rating to INR15MM Loan
HI BLUE: CRISIL Raises Rating on INR4MM Cash Loan to B+

KAMAL AUTO: CRISIL Reaffirms 'B' Rating on INR15MM Cash Loan
KAVERI INDUSTRIES: CRISIL Assigns B- Rating to INR4.5MM Term Loan
MGM EDIBLE: Ind-Ra Migrates Issuer Rating to BB- Not Cooperating
NOVEL SUGAR: Ind-Ra Migrates Issuer Rating to BB Not Cooperating
NOVELTY ASSOCIATES: Ind-Ra Upgrades LT Issuer Rating to 'BB-'

ONEUP MOTORS: CRISIL Reaffirms 'B' Rating on INR14MM Loan
PANIPAT JALANDHAR: CRISIL Reaffirms 'D' Rating on INR3.64BB Loan
PRABHA KALYAN: CRISIL Assigns 'B' Rating to INR6.5MM Term Loan
PUSHPANJLI STRIPS: Ind-Ra Migrates Rating to BB Not Cooperating
RAMESHWAR PRASAD: Ind-Ra Ups Issuer Rating to BB, Outlook Stable

RHIZOME DISTILLERIES: CRISIL Ups Rating on INR9.5MM Loan to BB-
ROYAL LATEX: Ind-Ra Affirms 'BB-' Issuer Rating, Outlook Stable
SHREE BALAJI: Ind-Ra Moves Issuer Rating to BB+ Not Cooperating
SOBHA PROJECT: Ind-Ra Assigns 'BB+' Issuer Rating, Outlook Stable
SRI SARAVANA: CRISIL Raises Rating on INR5MM Cash Loan to B+

UTTAM INDUSTRIAL: Ind-Ra Ups Issuer Rating to BB, Outlook Stable
VELVET RESORTS: CRISIL Upgrades Rating on INR6.7MM Loan to 'B'


J A P A N

TAKATA CORP: Unjust to Halt Air Bag Cases, Victims' Lawyers Say
TK HOLDINGS: Hires Weil Gotshal as Attorneys
TOSHIBA CORP: Resumes Blocking WD Access to Databases


S I N G A P O R E

CONTINUUM ENERGY: Fitch Puts B+(EXP) Rating to Proposed USD Notes
CONTINUUM ENERGY: Moody's Rates Proposed USD Senior Notes (P)B1
SWISSCO HOLDINGS: Disposes Five Offshore Vessels


T A I W A N

JIH SUN: Fitch Affirms 'B' Short-Term Foreign Currency IDR
YUANTA COMMERCIAL: Fitch Affirms BB+ Support Rating Floor


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A U S T R A L I A
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APD BUILDING: First Creditors' Meeting Set for July 31
------------------------------------------------------
A first meeting of the creditors in the proceedings of APD
Building Pty Ltd will be held at Level 3, 95 Macquarie Street, in
Parramatta, NSW, on July 31, 2017, at 10:00 a.m.

Riad Tayeh and Suelen McCallum of de Vries Tayeh were appointed
as administrators of APD Building on July 19, 2017.


GAG BRICKLAYING: First Creditors' Meeting Set for July 28
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Gag
Bricklaying Pty Ltd will be held at the offices of The Boardroom
APL Insolvency, Level 5, 150 Albert Road, in South Melbourne,
Victoria, on July 28, 2017, at 10:30 a.m.

Jeremy Robert Abeyratne of APL Insolvency was appointed as
administrator of Gag Bricklaying on July 19, 2017.


LENDINGPOST GROUP: First Creditors' Meeting Set for July 26
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of
Lendingpost Group Pty Ltd will be held at the offices of HLB Mann
Judd, Level 19, 207 Kent St, in Sydney, NSW, on July 26, 2017, at
1:00 p.m.

Barry Anthony Taylor of HLB Mann Judd was appointed as
administrator of Lendingpost Group on June 21, 2017.


M T MILK: First Creditors' Meeting Set for July 28
--------------------------------------------------
A first meeting of the creditors in the proceedings of M T Milk
Supplies Pty Limited will be held at the offices of Bernardi
Martin, Ground Floor, 195 Victoria Square, in Adelaide, SA, on
July 28, 2017, at 10:00 a.m.

Hugh Sutcliffe Martin and Michael Dirk Hawker van Dissel of
Bernardi Martin were appointed as administrators of M T Milk on
July 19, 2017.


MESOBLAST LIMITED: Issues 6.03 Million Ordinary Shares to Osiris
----------------------------------------------------------------
Mesoblast Limited has issued 6,029,545 fully paid ordinary shares
in the Company to Osiris Therapeutics Inc. as contingent
consideration in relation to the ongoing Crohn's disease program.
This consideration was included in the original purchase
agreement for the acquisition in 2013 of the mesenchymal stem
cell (MSC) business of Osiris Therapeutics.

Mesoblast advised that:

   1. the Shares were issued without disclosure to investors
      under Part 6D.2 of the Corporations Act;

   2. this notice is being given under section 708A(5)(e) of the
      Corporations Act;

   3. as at July 10, 2017, Mesoblast has complied with:

      (a) the provisions of Chapter 2M of the Corporations Act as
          they apply to Mesoblast; and

      (b) section 674 of the Corporations Act;

   4. as at July 10, 2017, there is no excluded information of
      the type referred to in sections 708A(7) and 708A(8) of the
      Corporations Act; and

   5. it remains in exclusive negotiations with Mallinckrodt
      Pharmaceuticals in regard to a potential commercial and
      development partnership for two of its lead product
      candidates.

                     About Mesoblast Ltd.

Melbourne, Australia-based Mesoblast Limited (ASX:MSB;
Nasdaq:MESO) develops cell-based medicines.  The Company has
leveraged its proprietary technology platform, which is based on
specialized cells known as mesenchymal lineage adult stem cells,
to establish a broad portfolio of late-stage product candidates.
Mesoblast's allogeneic, 'off-the-shelf' cell product candidates
target advanced stages of diseases with high, unmet medical needs
including cardiovascular diseases, immune-mediated and
inflammatory disorders, orthopedic disorders, and
oncologic/hematologic conditions.

Mesoblast reported a loss before income tax of $90.82 million for
the year ended June 30, 2016, compared to a loss before income
tax of $96.24 million for the year ended June 30, 2015.  As of
Dec. 31, 2016, Mesoblast had $660.9 million in total assets,
$150.4 million in total liabilities, and $510.51 million in total
equity.

PricewaterhouseCoopers, in Melbourne, Australia, issued a "going
concern" qualification on the consolidated financial statements
for the year ended June 30, 2016, citing that the Company has
suffered recurring losses from operations that raise substantial
doubt about its ability to continue as a going concern.


NEOLINK PTY: Second Creditors' Meeting Set for July 28
------------------------------------------------------
A second meeting of creditors in the proceedings of Neolink Pty
Ltd has been set for July 28, 2017, at 10:00 a.m., at the offices
of Worrells Solvency & Forensic Accountants, Suite 1 Level 15, 9
Castlereagh Street, in Sydney, NSW.

The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 26, 2017, at 4:00 p.m.

Nicholas Craig Malanos of Worrells Solvency was appointed as
administrator of Neolink Pty on July 5, 2017.


NUON PTY: Second Creditors' Meeting Set for July 27
---------------------------------------------------
A second meeting of creditors in the proceedings of Nuon Pty Ltd
and Nuon IP Pty Ltd has been set for July 27, 2017, at 3:00 p.m.,
at the offices of Chartered Accountants Australia and New Zealand
Level 18 Bourke Place, 600 Bourke Street, in Melbourne, Victoria.

The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by July 26, 2017, at 4:00 p.m.

Craig David Crosbie and Robert Scott Ditrich of PPB Advisory were
appointed as administrators of Nuon Pty on June 22, 2017.



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COUNTRY GARDEN: Moody's Assigns Ba1 Rating to Proposed USD Notes
----------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 senior unsecured
rating to Country Garden Holdings Company Limited's proposed USD
notes.

The rating outlook is stable.

The company plans to use the bond proceeds to refinance existing
debt and for general working capital purposes.

RATINGS RATIONALE

"The proposed notes will not materially affect Country Garden's
debt leverage, because the majority of the proceeds will be used
to refinance the company's existing debt," says Franco Leung, a
Moody's Vice President and Senior Credit Officer.

Moody's expects the size of the new issuance will not be material
relative to Country Garden's total debt. The issuance will also
slightly improve the company's debt maturity profile given the
company's refinancing plans.

Moody's forecasts that its debt leverage - as measured by revenue
to adjusted debt (including guarantees for joint ventures and
associates) - will trend towards 105%-110% in the next 12-18
months from around 94% at end-2016, as revenue growth should
outpace the expected increase in debt.

Country Garden's Ba1 ratings reflect its large scale and good
geographic coverage, as well as its established track record in
suburban property development in China.

On the other hand, the ratings are constrained by the challenges
that Country Garden faces in lower-tier cities, where inventory
levels are generally high. The ratings also consider profit
margin pressure in its mass-market portfolio, as well as weakened
credit metrics, due in part to its fast business expansion.

The stable rating outlook reflects Moody's expectation that
Country Garden will maintain its strong sales execution, and
improve debt leverage by continuing to achieve growth in revenue
and controlling the growth in debt.

Upward rating pressure could emerge if Country Garden: (1)
maintains a strong liquidity profile, such that cash/short-term
debt exceeds 1.5x-2.0x; and (2) maintains strong credit metrics,
such that EBIT/interest coverage stays consistently above 5x, and
revenue/debt exceeds 120%-130%.

On the other hand, downward rating pressure could arise if
Country Garden's: (1) sales and liquidity position weaken, such
that cash/short-term debt falls below 1.25x; (2) its gross profit
margins weaken below 20%; or (3) debt leverage deteriorates, as
evidenced by revenue/debt below 100%-110% or revenue/net debt
below 130%-140%; or (4) adjusted EBIT/interest coverage falls
below 3.5x on a sustained basis.

The rating could also be affected if Moody's assessment of
subordination risk on the company's senior unsecured bond ratings
changes as a result of the proposed introduction in Moody's
rating methodology of specific guidance on structural
subordination.

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

Country Garden Holdings Company Limited- founded in 1997 and
listed on the Hong Kong Stock Exchange -is a leading Chinese
integrated property developer. At end-2016, its total gross floor
area (GFA) in China, including that of joint ventures and
associates, was 166 million square meters (sqm).

The company owned and operated 51 hotels with a total of 13,810
rooms at end-2016. The hotels are located mainly in Guangdong
Province and complement its township development projects.


SUNSHINE 100: S&P Lowers Corporate Credit Rating to 'CCC+'
----------------------------------------------------------
S&P Global Ratings said it lowered its long-term corporate credit
rating on Sunshine 100 China Holdings Ltd. (Sunshine) to 'CCC+'
from 'B-'. S&P said, "At the same time, we lowered our long-term
issue rating on the company's senior unsecured notes to 'CCC'
from 'CCC+'.

"In addition, we lowered our long-term Greater China regional
scale rating on Sunshine and its notes to 'cnCCC+' and 'cnCCC',
from 'cnB-' and 'cnCCC+', respectively. We also placed all
ratings of the Chinese property developer on CreditWatch with
negative implications."

Sunshine is a Beijing-based property development company.

S&P said, "We lowered the ratings on Sunshine because we believe
the company's high leverage is not sustainable over the longer
term. This is because we estimate the company's contracted sales
will not be able to cover its related interest, construction, and
operating expenses over the coming two years. The company's
EBITDA interest coverage has dropped to 0.3x in 2016, indicating
a weak debt-servicing ability. We expect the ratio will remain
substantially below 1x in 2017 and 2018, despite the company's
better sales performance and a likely recovery in its margin.

"We are placing the ratings on CreditWatch with negative
implications to reflect the increased uncertainty surrounding the
refinancing of Sunshine's US$215 million outstanding senior
unsecured notes due Oct. 8, 2017. The company is still
considering various financing options and yet to finalize the
refinancing plan for the notes. In addition, these options may be
subject to relevant approvals from regulators or banks. From our
understanding, Sunshine could choose to restructure its debt if
borrowing plans fall through. In such a case, we may consider the
offer as distressed and deem it as a selective default.

"In our view, Sunshine's high reliance on short-term borrowings
makes it dependent on the willingness of its lenders and
counterparties. As of Dec. 31, 2016, the company had short-term
borrowings of Chinese renminbi (RMB) 8.6 billion, compared with
an unrestricted cash balance of only about RMB4.5 billion. This
does not include a RMB1.5 billion 7.99% onshore bond, with a put
option due October 2017.

"We believe Sunshine's debt-servicing ability will remain weak,
given that its debt level will further increase over the next two
years. Its cash generation is likely to be less than operating
and financing expenses. The company's debt increased materially
to RMB26 billion at the end of 2016, from RMB20 billion in 2015.
Following this increase, we expect the company's construction
expenditure to remain considerable to support sales.

"We view the sale of equity interest in its Chongqing project as
a short-term liquidity boost, bringing in approximately RMB3.4
billion in 2017 and 2018 (from sales consideration and collection
of shareholder loan). However, the project is one of Sunshine's
better-quality assets and the disposal dampens its saleable
resources. We believe the disposal is part of its strategy of
redirecting its resources and investments to Eastern and Southern
China. In our view, the company may continue to reposition its
land bank through asset disposals, but a large-scale project
disposal leading to material improvement in leverage is unlikely.

"We expect to resolve the CreditWatch status within the next one
to two months after assessing the feasibility of Sunshine's
refinancing plan.

"We may further lower the rating if Sunshine fails to develop a
concrete refinancing plan within the next one to two months and
if the likelihood of a debt restructuring or exchange has
increased.

"We could affirm the ratings and revise the rating outlook to
negative if we have greater visibility on Sunshine's refinancing
plan."



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ALLIED FIBRE: Ind-Ra Migrates Issuer Rating to D Not Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Allied Fibre
Industries' (AFI) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND D(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating actions are:

-- INR36.8 mil. Term loan migrated to non-cooperating category
    with IND D(ISSUER NOT COOPERATING) rating; and

-- INR29.0 mil. Fund-based limits migrated to non-cooperating
    category with IND D(ISSUER NOT COOPERATING)/IND D(ISSUER NOT
    COOPERATING) rating

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
20 May 2016. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 2014, AFI manufacturers pet flakes at its factory
in Kashipur, Uttarakhand.


ANUBHAV TRADING: Ind-Ra Gives 'BB-' Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Anubhav Trading
(AT) a Long-Term Issuer Rating of 'IND BB-'. The Outlook is
Stable. The instrument-wise rating action is:

-- INR80 mil. Fund-based limit assigned with IND BB-/Stable
    rating

KEY RATING DRIVERS

The ratings reflect AT's small scale of operations and moderate
credit metrics. According to provisional financials for FY17,
revenue was INR420 million (FY16: INR315 million), interest
coverage (operating EBITDA/gross interest expense) was 1.5x
(1.5x) and net financial leverage (total adjusted net
debt/operating EBITDAR) was 7.1x (8.2x). Revenue growth was
driven by higher demand for electronic goods. Net financial
leverage improved due to a rise in EBITDA to INR15 million in
FY17 from INR11 million in FY16.

The ratings also reflect AT's tight liquidity profile, indicated
by an average utilisation of fund-based limits about 99% during
the 12 months ended June 2017; low operating margin of 3.5% in
FY17 (FY16: 3.5%); and proprietorship nature of business. The
margin was low owing to the trading nature of the business.

The ratings, however, are supported by the proprietor's
experience of almost 10 years in the trading business.

RATING SENSITIVITIES

Negative: Deterioration in credit metrics will be negative for
the ratings.

Positive: An improvement in credit metrics will be positive for
the ratings.

COMPANY PROFILE

Incorporated in 2008, AT is a distributor of electronic
appliances of various companies in Bhagalpur, Bihar. It is
managed by Mr Dilip Jaiswal.


ANUJ TEXTILES: Ind-Ra Affirms 'BB' Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Anuj Textiles
Private Ltd.'s (ATPL) Long-Term Issuer Rating at 'IND BB'. The
Outlook is Stable. The instrument-wise rating actions are:

-- INR300 mil. (increased from INR275 mil.) Fund-based working
    capital limit affirmed with IND BB/Stable

KEY RATING DRIVERS

The affirmation reflects ATPL's continued moderate scale of
operations and modest credit metrics. According to provisional
financials for FY17, revenue was INR915.59 million (FY16:
INR857.81 million), interest coverage (operating EBITDA/gross
interest expense) was 1.31x (1.15x) and net financial leverage
(total adjusted net debt/operating EBITDAR) was 5.5x (4.44x). The
increase in revenue was driven by a rise in sales volume to 3.10
million pieces in FY17 from 3.01 million pieces in FY16, and the
improvement in interest coverage was on account of a fall in
total interest cost to INR41.41 million in FY17 from INR54.34
million in FY16. Meanwhile, the deterioration in net financial
leverage was due to lower cash and equivalent of INR6.2 million
in FY17 (FY16: INR25.53 million).

The ratings continue to reflect ATPL's tight liquidity position,
indicated by nearly 98% working capital limit utilisation during
the 12 months ended June 2017.

The ratings, however, continue to be supported by ATPL's
founder's over four-decade experience in the saree manufacturing
business.

RATING SENSITIVITIES

Negative: Deterioration in the overall liquidity profile could be
negative for the ratings.

Positive: An improvement in credit metrics could be positive for
the ratings.

COMPANY PROFILE

Incorporated in 1988, ATPL sells printed cotton sarees in West
Bengal, Assam, Odisha and Bihar. Sarees sold are mostly processed
and printed on a job work basis by its group companies. ATPL
sells sarees under the brands Kohinoor and Sananda.


AZURE POWER: Fitch Rates Proposed USD Sr. Notes 'BB-(EXP)'
----------------------------------------------------------
Fitch Ratings has assigned Azure Power Energy Ltd.'s (APEL)
proposed US dollar senior notes an expected rating of 'BB-(EXP)'.
The rating on the proposed notes reflects the credit profile of a
restricted group of operating entities under Azure Power Global
Limited (APGL), a company engaged in solar power generation in
India. The proposed issuance will be the group's first US dollar
debt.

APEL, a subsidiary of NYSE-listed APGL, will use the proceeds of
the proposed US dollar notes mainly to subscribe to rupee-
denominated debt (a combination of non-convertible debentures and
external commercial borrowings) to be issued by the entities in
the restricted group. APEL will not undertake any business
activity other than investing in the proposed rupee bonds via
issuance of the proposed US dollar notes.

The rating benefits from restrictions on cash outflow and
additional indebtedness of the restricted group and reflects the
restricted group's diversified and stable portfolio of solar
power assets, high quality counterparty mix and a moderate
financial profile. The notes also benefit from limits on prior
ranking debt in the restricted group.

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

KEY RATING DRIVERS

Ratings Linked to Restricted Group: Fitch's rating on the
proposed US dollar notes reflects the credit strengths and
weaknesses of the debt structure and assets of the operating
entities that form the restricted group. The US dollar note
holders will benefit from a first charge over the shares of the
SPV. The rupee debt in turn is secured by a first charge on all
assets (excluding current assets and receivables) and cash flows
of the operating entities in the restricted group.

The indentures on the proposed US dollar notes and rupee debt
limit cash outflows and debt incurrence. The restricted group is
not permitted to incur additional debt or make restricted
payments if they raise the restricted group's ratio of gross debt
to EBITDA to above 5.5x subject to certain carve-outs.

Stable Solar Assets: The restricted group's portfolio of 621MW
focuses on solar power, which has lower yield volatility and
seasonal variation arising from weather conditions, compared with
other renewable energy sources. At end-March 2017, 84% of the
restricted group's portfolio was operational with the remaining
one asset expected to be commissioned in September 2017. About
36% of the assets began operation during or prior to the
financial year ended March 2016 (FY16), with consistently strong
performance, reflected in average plant availability of more than
99% and grid availability of around 98%.

Well-Diversified Operations: The restricted group's portfolio is
highly diversified in terms of geography and number of assets,
which limits risks relating to any particular location, weather
pattern and counterparties. The portfolio consists of 17 solar
assets located in eight states, with no state accounting for more
than 31% of generation capacity.

Price Certainty, Volume Risks: The restricted group benefits from
long-term power purchase agreements (PPAs) for all of its
operating and under-development capacities. All of the PPAs have
terms of 25 years, except one 10MW project in Uttar Pradesh with
term of 12 years. While the long-term PPAs provide protection
from price risk, production volumes may vary with solar radiation
patterns.

Moderate to Weak Counterparties: The rating also reflects the
credit profiles of the key counterparties of the restricted
group. The PPAs with NTPC Limited (BBB-/Stable) and Solar Energy
Corporation of India Limited (SECI) make up 33% of its capacity;
with the state-owned power distribution utilities accounting for
the rest. While most state utilities have relatively weaker
credit profiles, the risk is mitigated by the substantial
exposure to NTPC and SECI, which have more robust credit
profiles, and diversification among many counterparties.

FX Risk Largely Hedged: Foreign-exchange risk arises as the
earnings of the restricted group's assets are in Indian rupees
while the notes are denominated in US dollars. However, APEL
plans to fully hedge the semi-annual coupon payments and hedge
the principal using call spreads.

Financial Profile to Improve: Fitch expects the restricted
group's financial profile to improve in FY18 because about 48% of
the portfolio's capacity is due to be commissioned in FY17, and
will contribute to a full year of earnings. Fitch expects the
restricted group's net leverage (net adjusted debt/operating
EBITDAR) to improve to below 5.5x by end-FY18 (FY17: 8.3x). Fitch
believes that free cash flows may remain negative over the medium
term as APGL intends to add assets to the restricted group.
Nonetheless, Fitch expects the higher EBITDA from additional
capacities to further improve net leverage to around 4.5x and
EBITDAR net fixed-charge coverage to over 2.0x (FY17: 1.7x) over
the medium term.

Refinancing Risk: The proposed US dollar notes face refinancing
risk as the cash balance at the restricted group is not likely to
be sufficient to repay the notes at maturity. However this risk
is mitigated by the restricted group's relatively good access to
funding in the domestic market and potential support from its
strong equity investors.

Parent Guarantee: The ratings on the proposed notes are not
linked to APGL's credit quality, although APGL plans to guarantee
the notes. The proposed guarantee may not be available for the
entire term of notes and will "fall away" if the restricted
group's total debt to EBITDA falls below 5.5x. However, Fitch
expects the restricted group to benefit from APGL's strong
capabilities in development and maintenance of solar projects.

DERIVATION SUMMARY

The rating on the proposed notes reflects restrictions on cash
outflow and additional indebtedness of the restricted group, its
diversified portfolio of solar generation assets, moderate to
weak but diversified counterparties and expectations of a
moderate financial profile. The restricted group's reasonable
scale, well-diversified portfolio of solar assets and relatively
better counterparty credit profile results in its business
profile being better than its peers such as Neerg Energy Ltd
(notes rated B+) and Greenko Investment Company (GIL, notes rated
B+). Fitch expects the restricted group's financial profile to
improve over the medium term and be similar to GIL's but better
than Neerg's.

The rating on the proposed notes is comparable to that assigned
to Greenko Dutch B.V.'s (GBV) proposed notes (BB-(EXP)) that are
also issued by a restricted group of entities. GBV's entities
have a large scale, longer operating history and better expected
financial profile, while APGL's restricted group has a better
counterparty profile and more stable solar assets. The credit
profile of the restricted group is a notch below Melton Renewable
Energy UK PLC (MRE UK, BB/Stable) given MRE UK's stronger
financial profile, expectations of positive free cash flow
generation, and favourable UK regulations relating to renewables
obligation scheme despite the price risk on the renewables
obligation.

KEY ASSUMPTIONS

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

- Plant load factors in line with historical performance,
   ranging from 17%-20% for most of the assets.
- Plant-wise tariff in accordance with the power purchase
   agreements.
- Strong EBITDA margins in the range of 88% - 90% over the
   medium term.
- Average receivable period of around 2.5 months.
- Capex of around INR6.5 billion in FY18 for its assets under
   development. Capex of INR 3.5 billion- 4 billion a year from
   FY19 onwards.
- No dividend payouts from the restricted group over the medium
   term.

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- EBITDAR net fixed-charge coverage of 2.5x or more on a
   sustained basis. Fixed charges include the cost of forex
   hedging;
- Improvement in leverage, as measured by net adjusted
   debt/operating EBITDAR, to below 3.5x on a sustained basis

Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- EBITDAR net fixed-charge coverage not meeting Fitch's
   expectation of around 2.0x on a sustained basis over
   the medium term
- Significant increase in refinancing risk.
- Failure to adequately mitigate foreign-exchange risk.

LIQUIDITY

Liquidity to Improve: The refinancing of the restricted group's
project-level debt by the proposed US dollar notes is likely to
improve the group's liquidity with minimum debt maturity in the
medium term. Further, the restricted group intends to maintain
minimum cash of about USD15 million and limit the amount of
equity investment in new solar assets to be added to the
restricted group to about 70% of operational cash generated.


AZURE POWER: Moody's Assigns (P)Ba3 Rating to Proposed USD Notes
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)Ba3
rating to the proposed 5-year USD backed senior unsecured notes
of Azure Power Energy Ltd (APE).

The notes are guaranteed by its holding company Azure Power
Global Limited (APGL, unrated).

The rating outlook is stable.

The provisional status of the rating will be removed upon
completion of the transaction under satisfactory terms.

APE is a special purpose vehicle which will use the proceeds from
the USD notes to subscribe to senior secured Indian rupee (INR)-
denominated bonds to be issued by 17 restricted subsidiaries in
the restricted group (Azure RG).

The restricted subsidiaries are wholly- or majority-owned by
APGL. APE is also a part of the Azure RG.

The holders of the USD notes will benefit from a guarantee from
APGL, and from a share pledge over the issuer, thereby
establishing a linkage between the credit profile of APE, Azure
RG and APGL. APGL's guarantee on the USD notes will not be
released unless Azure RG's combined leverage ratio, defined as a
debt/EBITDA ratio, falls below 5.5x.

APGL is a leading solar power company in India, with 38 projects
-- including 26 operational projects with a total capacity of 771
megawatts (MW) and projects under construction with a total
capacity of 298 MW -- across 18 states as of March 31, 2017.

Azure RG sells the power generated from its solar power plants to
sovereign-owned entities, including NTPC Limited (Baa3 positive)
and Solar Energy Corporation of India (SECI, unrated), and state-
owned distribution companies. The sales are implemented under
long-term power purchase agreements (PPAs) with mostly fixed
tariffs.

The proceeds of the proposed 5-year USD senior notes will be used
to (1) refinance the existing project debt of the restricted
subsidiaries and (2) raise funds for general corporate purposes.

RATINGS RATIONALE

"The (P)Ba3 rating of the proposed USD notes mirrors the credit
quality of Azure RG, which is in turn supported by its geographic
diversification across various states in India, and the
diversification of offtakers, which include sovereign-owned
entities, such as NTPC and SECI," says Mic Kang, a Moody's Vice
President and Senior Analyst.

"The rating also benefits from APGL's strong operating
management, good disclosure standards, and strong and committed
shareholders," Kang adds.

At the same time, the rating considers Azure RG's high financial
leverage, the limited track record of the majority of projects
within Azure RG, and its exposure to financially weak state-owned
distribution companies which account for around two-thirds of
revenues. Other rating considerations include India's evolving
policy framework for renewables.

Moody's expects that Azure RG will maintain visible operating
cash flows for at least the next one to two years, supported by
Moody's expectations of lower exposure to seasonality, leading in
turn to narrower volatility in generation volumes relative to
other renewable sources, such as wind.

Moody's projects that Azure RG's funds from operation (FFO)/debt
and FFO/interest coverage ratios will be in the 6%-8% range and
the 1.6x-1.7x range over the next one to two years. The
achievement of these metrics will be assisted by incremental
operating cash flow from recently commissioned projects and by
the near completion of a new project (with a capacity of 100MW)
scheduled to start commercial operation by December 2017.

Also, Moody's views Azure RG as representing backbone assets in
APGL's value chain -- from in-house engineering, procurement &
construction (EPC), operation & management (O&M), power
generation, and sales to offtakers -- and which serve as a key
platform in the shareholders' investments in India's renewable
sectors.

The presence of an experienced management team will mitigate the
ramp-up risk associated with new projects. Azure RG's total solar
power capacity is scheduled to increase to 621MW by December 2017
from 521 MW in March 2017.

Furthermore, the credit profile of Azure RG benefits from a
degree of support from International Finance Corporation (IFC,
Aaa stable) and Caisse de depot et placement du Quebec (CDPQ,
unrated) which own 29% and 20% of APGL. It is likely that they
will provide support for APGL in case of need, consistent with
their shareholdings.

To mitigate the currency risk stemming from the absence of USD-
based revenues to service the proposed USD notes, APE will
undertake a hedging program to manage USD/INR exchange rate
movements by implementing a full hedge for the coupon and call-
spread hedges of the principal for INR movements as far as an
exchange rate of INR90 against the dollar.

In addition, Moody's expects APGL to ensure that APE is not
exposed to significant foreign-exchange risks which would be
incurred by the INR's depreciation against the USD to above the
defined level, given Azure RG's importance in its value chain.

The terms of the proposed USD notes include restrictions on Azure
RG's debt incurrence and restricted payments to the parent with
certain carve-outs, thereby mitigating concerns over potential
material cash leakages to any entities outside Azure RG.

The USD notes will be secured by a first priority pledge of APE
shares and an escrow account of APE. The INR bonds to be issued
by Azure RG will be secured by the moveable and immovable assets
of the restricted subsidiaries under the subsidiary, as well as
by 51% share pledges and by rights under project documents. The
INR bonds will be cross guaranteed by the restricted
subsidiaries.

The stable outlook reflects Moody's expectation that incremental
cash flows from newly commissioned projects under long-term PPAs
will lead Azure RG to maintain its credit metrics within the
tolerance levels of a Ba3 rating category over the next 12-18
months, without any material ramp-up risk, and APGL's credit
quality will not deteriorate materially.

Azure RG is solidly positioned in its rating. Upward rating
momentum could evolve if FFO/debt and FFO/interest coverage
ratios are maintained above 9% and 2.0x on a sustained basis and
if APGL's credit quality improves. Such improvements could be
achieved with a track record of larger and stable operations.

The rating could come under downward pressure if APGL's credit
quality deteriorates and/or Azure RG's FFO/debt falls towards 4%
on a sustained basis.

The principal methodology used in this rating was Power
Generation Projects published in May 2017.

Azure Power Energy Ltd is a special purpose vehicle, which was
incorporated in Mauritius in 2017 as a wholly owned subsidiary of
Azure Power Global Limited (APGL). The restricted subsidiaries
under the proposed USD notes issuance are wholly or majority
owned ultimately by APGL. The restricted subsidiaries operate
solar power plants with a total capacity of 521 MW in March 2017
and are scheduled to commission an additional solar power plant
with a 100 MW capacity by December 2017.

Listed on the New York Stock Exchange, APGL is one of the largest
solar power companies in India, with a total capacity of 1,069 MW
(including 298 MW solar plants under construction) across 18
states as of March 31, 2017. APGL is 29.3% owned by IFC and 20.3%
by CDPQ, while the remainder is owned by Foundation Capital
(14.1%), Helion Venture Partners (13.2%), its founders (6.8%) and
the public (16.2%).


CHUGH INDUSTRIES: CRISIL Assigns B+ Rating to INR6.5MM Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facility of Chugh Industries (CI).

                       Amount
   Facilities         (INR Mln)    Ratings
   ----------         ---------    -------
   Warehouse Receipts     6        CRISIL B+/Stable
   Cash Credit            6.5      CRISIL B+/Stable
   Term Loan              2.5      CRISIL B+/Stable

The rating reflects the firm's modest scale of operations in the
fragmented rice industry, weak financial risk profile, and large
working capital requirement. These weaknesses are partially
offset by the extensive experience of its proprietor in the rice
industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations in a highly fragmented industry:
Scale of operations is modest as reflected in turnover of
INR49.88 crore in fiscal 2017 and its moderate capacity compared
to other large players. The rice industry is highly fragmented
due to low capital intensity and limited value addition,
resulting in low entry barriers.

* Working capital-intensive operations: Operations are working
capital intensive, with gross current assets of 170 days as on
March 31, 2017. Large working capital was mainly due to
considerable inventory. This is because paddy, the major raw
material for rice processors, is available in crop season only
from October to January-February.

* Weak financial risk profile: Financial risk profile is
constrained by high gearing of 5.06 times as on March 31, 2017,
and weak debt protection metrics, with interest coverage ratio at
1.37 times and net cash accrual to total debt ratio at 0.03 time
for fiscal 2017.

Strength

* Extensive experience of proprietor: The proprietor has an
extensive experience of over 25 years in the rice industry. This
has helped them in establishing a customer base as well as
forging relations with local suppliers. Their experience has also
helped them gain a sound understanding of the market dynamics.

Outlook: Stable

CRISIL believes CI will benefit from its proprietor's extensive
industry experience. The outlook may be revised to 'Positive' if
there is a substantial improvement in its financial risk profile
driven by higher-than-expected growth in revenue leading to high
cash accrual, or capital infusion along with efficient working
capital management. The outlook may be revised to 'Negative' if
cash accrual is lower than expected, or if working capital
requirement is larger than expected, or if the firm undertakes
large, debt funded capital expenditure, leading to pressure on
its liquidity.

Chugh Industries (CI) was established as a proprietorship firm in
2013 by Mr. Sunny Chugh. The firm is engaged in the milling,
processing and packaging of basmati and non-basmati rice. The
production facilities are situated in Jalalabad, Punjab with a
milling and sorting capacity of around 4 tonnes per hour, of
which 80% is utilised

For fiscal 2017, the firm had a net profit of INR0.03 crore on
net sales of INR49.88 crore, against a net profit of INR0.05
crore on net sales of INR36.92 crore in fiscal 2016.


DOLPHIN OFFSHORE: CRISIL Cuts Rating on INR7.0MM Loan to 'C'
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Dolphin Offshore Shipping Limited (DOSL; part of the Dolphin
group) to 'CRISIL C' from 'CRISIL B/Stable'.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            1.5       CRISIL C (Downgraded from
                                    'CRISIL B/Stable')

   Fund & Non Fund        3.5       CRISIL C (Downgraded from
   Based Limits                     'CRISIL B/Stable')

   Proposed Long Term     7.0       CRISIL C (Downgraded from
   Bank Loan Facility               'CRISIL B/Stable')

The rating downgrade reflects the stretched working capital cycle
on account of significant delays in receivable resulting in weak
liquidity position.

The ratings reflect weakening of the Dolphin group's business
risk profile in the offshore services/engineering, procurement,
and construction (EPC) segment because of pressure on
profitability, and working-capital-intensive operations. Also,
the group's operations are exposed to risks related to high
revenue dependence in its vessel-chartering business and its
operating margins exposed to vulnerability in charter rates.
These rating weaknesses are partially offset by its promoters'
extensive experience in the offshore services and vessel
chartering industry, and its established relationship with
customers.
Analytical Approach

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of DOEIL and its wholly owned
subsidiaries Dolphin Offshore Shipping Ltd (DOSL) and DOEMPL,
together referred to as the Dolphin group. This is because the
companies have significant financial and operational linkages.

Key Rating Drivers & Detailed Description

Weaknesses

* Working capital intensive nature of operations
The working capital cycle of the group has deteriorated on
account of significant increase in incremental working capital
requirement due to stretched in receivable cycle. CRISIL believes
that the Dolphin group's operations will remain working capital
intensive over the medium term.

* High revenue dependence on the vessel chartering business and
vulnerability of its operating margins to charter rates
The group's business risk profile has been under pressure on
account of lower order book in EPC (engineering, procurement, and
construction) segment.  Further Revenue in the chartering
business is also expected to decline on account of repair and
maintenance of a charter ship.

Strengths

* Promoters' extensive experience in the offshore services and
vessel chartering industry
The Dolphin group's promoters have been in the shipping industry
for more than three decades; this has enabled the group establish
a strong customer base.

DOEIL, incorporated in 1979, is the flagship company of the
Dolphin group; it provides the complete range of offshore support
services to oil and gas exploration companies. The services
provided include diving and underwater engineering, marine
operations and management (vessel management), fabrication and
installation, ship repair, geo-technical services, and EPC
activities. The company is listed on Bombay Stock Exchange and
National Stock Exchange.

DOEIL has two wholly-owned subsidiaries, DOSL and DOEMPL, which
are engaged in chartering of vessels and tugs to oil and gas
exploration companies.

DOEIL has reported, net loss of INR26.28 crore on total operating
income of INR44.11 crore during fiscal 2016, against net loss of
INR44.35 crore on total operating income of INR67.10 crore during
fiscal 2015.

On Consolidated basis, Dolphin group has reported, Profit after
tax of about INR41.16 crore on total operating income of
INR168.77 crore, against Profit after tax of about INR35.69 crore
on total operating income of INR206.41 crore.


EUGEN LABORATORIES: CRISIL Assigns 'B' Rating to INR39MM LT Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facility of Eugen Laboratories Private Limited (Eugen). The
rating reflect Eugen's exposure to risks related to on-going
project. These weakness are partially offset by underpenetrated
market of pre-clinical research involving the use of non-human
primates (NHPs).

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Proposed Long Term
   Bank Loan Facility      39       CRISIL B/Stable

Key Rating Drivers & Detailed Description

Weakness

* Exposure to risks related to on-going project: The company is
setting up facility with integrated research and development at
outskirt of Vizag (Andhra Pradesh), to support pre-clinical
research involving the use of NHPs. The firm has adequate funds
for initial deposit to Vizag Cancer Research (VCR) Park for
acquisition of land from promoters own funds. The land possession
is expected by month end.

Strengths

* Underpenetrated market of pre-clinical research involving the
use of NHPs: In India there  are no commercial NHP  facilities
that confirm to stringent stipulations of Drugs Controller
General of India (DCGI) , forcing  pharmaceuticals companies to
head  for China  and other  Asian countries for drug testing .
National Centre for Laboratory Animal Science (NCLAS) and
Laboratory Animal Science Association of India (LASAI) at the
National Institute of nutrition (NIN) state that of 651 studies
conducted on NHP only 54 were conducted in India.

Outlook: Stable

CRISIL notes that Eugen outlook may be revised to 'Positive' if
Eugen stabilizes operations of its proposed facility in a timely
manner. Conversely, the outlook may be revised to 'Negative' in
case the company faces delays in the commencement of its
operations, or generates lower-than-expected cash accruals during
the initial phase of its operations, resulting in a pressure on
its liquidity.

Eugen Laboratories Private Limited (Eugen) incorporated in Sept-
2016, is setting up facility with integrated research and
development, to support pre-clinical research involving the use
of NHPs at outskirt of Vizag (Andhra Pradesh). The firm is
promoted by Mr. Abishek Valluru and Maganti Damodara Ravindranath
Chowdary.

The company is expected to commence operations during second half
of the financial year 2019 ' 20.


HI-CAN INDUSTRIES: CRISIL Assigns 'B' Rating to INR15MM Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank loan facilities of Hi-Can Industries Private Limited (HIPL).
CRISIL had, on November 29, 2016, suspended the ratings as HIPL
had not provided the information required to maintain a valid
rating. The company has now shared the requisite information,
enabling CRISIL to assign ratings to the bank facilities.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit             15       CRISIL B/Stable (Assigned;
                                    Suspension Revoked)

   Term Loan                1       CRISIL B/Stable (Assigned;
                                    Suspension Revoked)
The rating reflects a weak financial risk profile with stretched
liquidity because of highly working capital-intensive operations,
and a modest scale of operation in the competitive and fragmented
tin packaging industry. These weaknesses are partially offset by
the extensive industry experience of the promoters and an
established relationship with customers and suppliers.

Key Rating Drivers & Detailed Description

Weaknesses

* Weak financial risk profile: The networth was small at INR2.22
crore and gearing high at 9.5 times, as on March 31, 2017. The
debt protection metrics were weak with net cash accrual to total
debt and interest coverage ratios of 0.07 time and 1.46 times,
respectively, in fiscal 2017.

Liquidity is stretched as indicated by high bank limit
utilisation and low cash accrual, but is sufficient to meet debt
repayment obligation.

* Working capital-intensive operations: Gross current assets were
high at 302 days as on March 31, 2017. That's due to large
inventory of 213 days and debtors of 120 days. Limited credit of
about two months is received from suppliers, and hence there is
reliance primarily on debt to fund the working capital
requirement.

* A modest scale of operations in a competitive and fragmented
industry: The tin can industry is fragmented because of low entry
barriers driven by limited capital and technology requirements,
small gestation period, and easy availability of raw materials.
The intense competition will continue to exert pricing pressures.
The scale has remained modest, reflected in a topline of INR19.7
crore in fiscal 2017.

Strengths

* Extensive industry experience of the promoters: The main
promoter, Mr Shailesh Makadia, has about a decade's experience in
the tin can industry. A focus on delivering high quality cans has
resulted in a strong clientele. The promoters have extended
interest-free unsecured loans of INR4.77 crore as of March 31,
2017.

* Established clientele: The company deals with reputed customers
such as Himalya International Ltd, Patson Foods (India) Pvt Ltd,
Gujarat Co-operative Milk Marketing Federation Ltd and others.

Outlook: Stable

CRISIL believes HIPL will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' if revenue and profitability improve, leading to
higher-than-expected cash accrual, along with better working
capital management. The outlook may be revised to 'Negative' in
case of lower-than-expected cash accrual, further deterioration
in working capital management, or higher debt-funded capital
expenditure, further weakening the financial risk profile,
especially liquidity.

HIPL, incorporated in 2009, is promoted by Mr Shailesh Makadia
and his brother, Mr Nilesh Makadia. The company manufactures
metal tin cans used in packaging of food products. Its customers
mainly include manufacturers of food and milk products. The
manufacturing facility in Vadodara, Gujarat, has a capacity of
about 9000 cans per hour.

Profit after tax (PAT) was INR44 lakh on net sales of INR19.71
crore in fiscal 2017, against a net loss of INR2.43 crore on net
sales of INR19.29 crore in fiscal 2016.


HI BLUE: CRISIL Raises Rating on INR4MM Cash Loan to B+
-------------------------------------------------------
CRISIL has upgraded its rating on the long term bank facilities
of HI Blue Interiors Private Limited (HBIPL) to 'CRISIL
B+/Stable' from 'CRISIL B/Stable'.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit             4        CRISIL B+/Stable (Upgraded
                                    from 'CRISIL B/Stable')

   Long Term Loan          2        CRISIL B+/Stable (Upgraded
                                    from 'CRISIL B/Stable')

The upgrade reflects CRISIL's belief that HBIPL's credit risk
profile would improve over the medium term supported by larger
revenues and accruals. The company reported INR10 crores of
revenues in its first full year of operations, fiscal 2017, with
a healthy operating margin. Revenues are expected to grow
steadily over the medium term supported by stable demand. HBIPL
is expected to generate cash accruals of over INR1.5 crores per
annum against repayment obligations of INR28 lacs per annum over
the medium term.

The rating also reflects HBIPL's modest scale and working
capital-intensive operation because of high inventory levels.
These rating weaknesses are partially offset by a moderate
financial risk profile and extensive promoters' experience.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations
HBIPL is a modest sized player in a highly competitive business
with the presence of large number of players. Hence the company's
revenues and operating margins are susceptible to its pricing
power which is dependent on the extent of competition in the
vicinity.

* Working capital intensive operations
HBIPL's business is working capital intensive as reflected by
estimated gross current assets (GCA) of 250 days estimated as on
March 31, 2017. The company maintains and inventory of 250 days
and have a receivable cycle of around 30 days. The company gives
credit of 30 days to its customers.

Strengths

* Moderate financial risk profile
HBIPL is estimated to report TOLTNW of 1.1 times as on March 31,
from 1.6 times a year before. HBIPL is estimated to report net
cash accruals to total debt and interest coverage ratios at 0.36
time and 3.96 times, respectively, in fiscal 2017.  The net worth
is modest estimated at INR5.1 crore as on March 31, 2017.

* Promoter's extensive industry experience
The promoter, Mr. Surendranath, has over 20 years of experience
in Hardware industry. Through these years he has established
strong supplier and client relationships and hence the company's
scale has ramped up significantly since inception.

Outlook: Stable

CRISIL believes HBIPL will continue to benefit over the medium
term from promoters' extensive experience. The outlook may be
revised to 'Positive' if higher-than-expected revenue and
accretion to reserves, and efficient working capital management
strengthen business and financial risk profile. Conversely, the
outlook may be revised to 'Negative' if significant decline in
revenue or profitability, increase in working capital
requirement, or debt-funded capex weakens the financial risk
profile.

Incorporated in 2015, HBIPL operates a hardware store in
Vijayawada where it sells interior items such as plywood, MDF,
veneer, laminates, wall papers, window dressing, bath
accessories, and carpets. Operations are managed by Mr.
Surendranath.

HBIPL started commercial operations in January 2016. It reported
a net profit of INR1.3 lakh on operating income of INR1.9 crore
for fiscal 2016.


KAMAL AUTO: CRISIL Reaffirms 'B' Rating on INR15MM Cash Loan
------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facilities
of Kamal Auto Industries (KAI) at 'CRISIL B/Stable'.


                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            15        CRISIL B/Stable (Reaffirmed)

   Standby Letter of
   Credit                  2        CRISIL B/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility      0.5      CRISIL B/Stable (Reaffirmed)

   Inventory Funding
   Facility                1.5      CRISIL B/Stable (Reaffirmed)

The rating continues to reflect the firm's high geographical
concentration and modest financial risk profile due to modest
interest coverage ratio, high leverage, and modest networth.
These weaknesses are mitigated by comfortable return on capital
employed (RoCE) and established position in the auto dealership
market.

Key Rating Drivers & Detailed Description

Weakness

* High geographical concentration: All its showrooms and service
stations located in Rajasthan (in and around Kota) exposing it to
geographic concentration.

* Modest financial risk profile: KAI's financial risk profile
continues to remain modest. Total outside liabilities to tangible
net worth (TOLTNW) deteriorated to 12.65 times as on March 31,
2016 from 6.17 times in previous year. Further, interest coverage
in fiscal 2016 was 0.8 times as against 1.12 times in previous
year. Networth was reported at INR3.4 crores as on March 31, 2016
as against INR6.6 crores in previous year. Financial risk profile
is estimated to have remained and is expected to remain modest
over the medium term.

Strengths

* Comfortable RoCE: The RoCE has been in the 11.3-18.4% range in
the three years through fiscal 2016 and is likely to remain at a
similar levels over the medium term.

* Established market position: Presence of over four decades in
the auto dealership segment has enabled the promoters to form
strong relationship with principals, Bajaj Auto Ltd (since 1972;
BAL; rated 'CRISIL AAA/FAAA/Stable/CRISIL A1+) and Hyundai Motors
India Ltd (since 2000; HMIL; rated 'CRISIL A1+').

Outlook: Stable

CRISIL believes KAI will continue to benefit over the medium term
from its established track record in the auto dealership
business. The outlook may be revised to 'Positive' in case of
significant increase in revenue with sustained profitability,
along with improvement in capital structure and debt protection
metrics. The outlook may be revised to 'Negative' if low
operating margin or revenue, or large, debt-funded capital
expenditure further weakens financial risk profile.

Set up in 1972 as a partnership firm by Jaipur-based Mr. Kasliwal
and family, KAI is an authorised dealer of passenger vehicles and
spare parts manufactured by HMIL; and of motorcycles and spare
parts of BAL.

KAI reported loss of INR3.2 crore on net sales of INR103 crore
for fiscal 2016, against profit after tax of INR0.25 crore
against net sales of INR90.5 crore for fiscal 2015. In fiscal
2017, estimated operating income was INR122 crores.


KAVERI INDUSTRIES: CRISIL Assigns B- Rating to INR4.5MM Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' ratings to the bank
facilities of Kaveri Industries Private Limited (KIPL).  The
rating reflects expected leverage financial risk profile for
KIPL. These weakness are partially offset by extensive industry
experience of the promoters and established relations with the
customers.
                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Term Loan              4.5       CRISIL B-/Stable
   Cash Credit            3.0       CRISIL B-/Stable
   Proposed Long Term
   Bank Loan Facility     2.5       CRISIL B-/Stable

Key Rating Drivers & Detailed Description

Weaknesses

* Leveraged financial risk profile: KIPL is expected to have an
average financial risk profile with high gearing and moderate
debt protection metrics. The project is aggressively funded
through debt and further, due to high working capital
requirements, the gearing is expected to be high over the medium
term.

Strengths

* Extensive industry experience of the promoters and established
relations with the customers: The company is promoted by Guntur
based Reddy family, has over 10 years of experience in the pipe &
allied manufacturing business through  another entity Kaveri
Gold. The promoters have businesses in both manufacturing and
trading line. The promoters already run similar business in
Kaveri Gold & allied manufacturing's of the same capacity in
Guntur and have established good customer and supplier relations.
It already has established network of about 100 traders with whom
they have been associated for more than 5 years. Also, have
strong supplier relations with suppliers through its other
businesses.

Outlook: Stable

CRISIL believes that KIPL will benefit from the promoters'
extensive industry experience over the medium term. The outlook
may be revised to 'Positive' if KIPL stabilises operations of its
proposed plant in a timely manner and generates higher -than
'expected revenue and profitability leading to higher cash
accruals. Conversely, the outlook may be revised to 'Negative' in
case the company faces delays in the commencement of its
operations, or generates lower-than-expected cash accruals during
the initial phase of its operations, resulting in a pressure on
its liquidity.

KIPL is setting-up PVC pipes & fitting manufacturing unit at
Guntur (Andhra Pradesh). The company is promoted by Guntur based
Reddy family, Mr Srinivas Reddy has over 10 years of experience
in the pipe & allied manufacturing business.

Fiscal 2018 would be the first year of operation for KIPL.


MGM EDIBLE: Ind-Ra Migrates Issuer Rating to BB- Not Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated MGM Edible Oils
Private Limited's (MGM) Long-Term Issuer Rating to the non-
cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating actions are:

-- INR12.42 mil. Long-term loan migrated to Non-Cooperating
   Category with IND BB-(ISSUER NOT COOPERATING) rating;
-- INR75 mil. Fund-based limit Migrated to Non-Cooperating
   Category with IND BB-(ISSUER NOT COOPERATING)/IND A4+(ISSUER
   NOT COOPERATING) rating; and
-- INR130 mil. Non-fund-based limit migrated to Non-Cooperating
Category with IND A4+(ISSUER NOT COOPERATING)rating

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
24 June 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

MGM was established in 2004 and supplies palmolein oil to
wholesalers and retailers.


NOVEL SUGAR: Ind-Ra Migrates Issuer Rating to BB Not Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Novel Sugar
Limited's (NSL) Long Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND BB(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating action is:

-- INR47.50 mil. Fund-based facilities migrated to non-
    cooperating category with IND BB(ISSUER NOT COOPERATING) /IND
    A4+(ISSUER NOT COOPERATING) rating

Note: ISSUER Not COOPERATING: The ratings were last reviewed on 1
April, 2016. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.

COMPANY PROFILE

Established in 2003 by Yogesh Kumar Agarwal and Anupam Singhal,
NSL manufactures khandsari sugar. Its 150 metric tonnes per day
plant is located in Pilibhit, Uttar Pradesh.


NOVELTY ASSOCIATES: Ind-Ra Upgrades LT Issuer Rating to 'BB-'
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Novelty
Associates Private Limited's (NAPL) Long-Term Issuer Rating to
'IND BB-' from 'IND B+'. The Outlook is Stable. The instrument-
wise rating actions are:

-- INR900 mil. (increased from INR720 mil.) Fund-based bank
    facilities upgraded with IND BB-/Stable/IND A4+ rating; and
-- INR120 mil. Long-term loans due on June 2022 assigned with
    IND BB-/Stable rating

KEY RATING DRIVERS

The upgrade reflects an improvement in NAPL's revenue, operating
profit and interest coverage, with net leverage remaining stable.
According to provisional financials for FY17, gross interest
coverage (operating EBITDA/gross interest expense) was 1.7x
(FY16: 1.3x) and net leverage (total adjusted net debt/operating
EBITDAR) was 11.1x (11.1x). The improvement in coverage was
driven by a rise in EBITDAR (FY17: INR133 million; FY16: INR114
million) and a decline in interest expense (FY17: INR74 million;
FY16: INR84 million).

Moreover, NAPL reported 34% growth in revenue to INR4,521 million
for FY17, driven by the addition of a new showroom and an
increase in sales of existing showrooms. Total car sales volume
increased to 6,331 units in FY17 from 5,411 units in FY16,
primarily driven by the dealership nature of its business. New
cars contribute about 96% to revenue, followed by spares,
accessories and services (about 4%).

The ratings, however, remain constrained by a low EBITDAR margin
of 2.9%-4.0% over FY13-FY17. The margin declined to 2.9% in FY17
from 3.4% in FY16 despite healthy sales volume growth.

The ratings continue to be constrained by NAPL's stretched
liquidity position. Net cash conversion cycle was 109 days in
FY16. The company's fund-based working capital facilities were
nearly fully utilised over the 12 months ended June 2017.

The ratings, however, are supported by NAPL's stable business
profile. NAPL is the oldest authorised dealership of Hyundai
Motors India Limited (HMIL) in the Amritsar and Gurdaspur
districts of Punjab. HMIL is the second-largest passenger car
original equipment manufacturer in India, with a market share of
about 17% as of March 2017, according to Society of Indian
Automobile Manufacturers. HMIL displayed steady sales volume
growth at a CAGR of 6% over FY11-FY17. The growth level is nearly
double the passenger vehicle industry CAGR of 3.34% during the
same period.

The ratings are also supported by continued financial support to
NAPL from its promoter in terms of equity infusion and interest-
free unsecured loans. The promoter's infused equity totalling
INR30 million over FY15-FY16. As on 31 March 2017, total
unsecured loans outstanding were INR491 million. Net leverage
(excluding unsecured loans) was 7.4x (FY16: 6.8x).

RATING SENSITIVITIES

Negative: Any decline in revenue and profitability leading to
deterioration in the liquidity profile could result in a negative
rating action.

Positive: An improvement in revenue and operating profit, along
with strengthening of credit metrics and liquidity profile, could
be positive for the ratings.

COMPANY PROFILE

NAPL is a part of the Novelty group formed by Mr S Kartar Singh
in 1950. The group owns the famous Novelty sweets in Amritsar and
has interests in the food, automobile and real estate businesses.


ONEUP MOTORS: CRISIL Reaffirms 'B' Rating on INR14MM Loan
---------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facilities
of Oneup Motors India Private Limited (OMIPL) at 'CRISIL
B/Stable'.

                       Amount
   Facilities         (INR Mln)      Ratings
   ----------         ---------      -------
   Electronic Dealer
   Financing Scheme
   (e-DFS)                 14        CRISIL B/Stable (Reaffirmed)

   Inventory Funding
   Facility                 7.25     CRISIL B/Stable (Reaffirmed)

   Proposed Inventory
   Funding                  0.25     CRISIL B/Stable (Reaffirmed)

The rating continues to reflect OMIPL's weak financial risk
profile because of highly leveraged capital structure and modest
scale of operations in an immensely competitive automobile
dealership industry. The weaknesses are partially offset by the
extensive experience of promoters and established relationship
with the principal, Maruti Suzuki India Ltd (MSIL; rated 'CRISIL
AAA/Stable/CRISIL A1+').

Key Rating Drivers & Detailed Description

Weaknesses

* Weak financial risk profile
OMIPL had a high gearing of 2.47 times and a moderate networth of
INR11.29 crore as on March 31, 2017. High gearing is because of
working capital borrowings for payments to MSIL on a cash basis,
and purchase of demo vehicle loans.

* Modest scale of operations in an immensely competitive
automobile dealership industry:
Scale is modest with operating income of INR162 crore on a
provisional basis, in fiscal 2017. Intense competition from other
dealers of MSIL and dealers of other principals keep the scale
small despite over a decade of operations.

Strength

* Promoters' extensive experience in the auto dealership
business:
The promoters have longstanding experience in the auto dealership
industry and were among the first ones to open an authorised MSIL
dealership in Lucknow, Uttar Pradesh. Currently, it operates two
showrooms and four workshops, and two true value stores, all
located in Lucknow.

Outlook: Stable

CRISIL believes OMIPL will maintain the business risk profile
over the medium term backed by its promoters' extensive
experience and established relationship with MSIL. The outlook
may be revised to 'Positive' if sizeable accrual led by
improvement in scale and operating profitability strengthens the
financial risk profile. Conversely, the outlook may be revised to
'Negative' if working capital borrowings increase substantially
or if any debt-funded capital expenditure leads to deterioration
in the financial risk profile.

Incorporated in 2006, OMIPL is a dealer of MSIL vehicles and has
two showroom-cum-service centres and three service centres in
Lucknow.

OMIPL recorded net profit of INR2.27 crore on net sales of
INR154.80 crore in fiscal 2017 against a net profit of INR.60
crore on net sales of INR140.72 crore.


PANIPAT JALANDHAR: CRISIL Reaffirms 'D' Rating on INR3.64BB Loan
----------------------------------------------------------------
CRISIL's rating on the long-term bank facility of Panipat
Jalandhar NH-1 Tollway Private Limited (PJNTPL) continues to
reflect weak liquidity because of ongoing delays in interest
payment on the term loan. The project was also impacted due to
non-availability of approvals from National Highways Authority of
India (NHAI; rated 'CRISIL AAA/Stable') and interrupted debt
disbursement by the lenders, leading to significant time and cost
overruns.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Term Loan             3,646      CRISIL D (Reaffirmed)

The name of the company was changed from Soma-Isolux Nh One
Tollway Private Limited to Panipat Jalandhar Nh-1 Tollway Private
Limited in fiscal 2017.

Key Rating Drivers & Detailed Description

Weakness

* Delays in debt servicing
There have been delays in servicing of debt obligations by
PJNTPL. This has been confirmed based on the discussion with the
company and the feedback from the PJNTPL's banker.

* Exposure to volatility in traffic volumes and hence toll
collections
Tolling began on October 1, 2015, with receipt of provisional
completion certificate for 91.03% of the total project. Currently
the project is 96% complete. Toll revenue was INR40 crs per month
since commencement of commercial operations. It has now increased
to INR41 crs per month. Nonetheless, lower-than-expected toll
revenue resulted in shortfall in cash flow, adversely impacting
the company's debt servicing ability. The company expects to
receive claims from NHAI pertaining to change of scope of the
project of INR512 crore and arbitration claim of INR2300 crore
over the medium term.

Strengths

* Good traffic potential supported by strategic location of the
project
The Panipat-Jalandhar road stretch on NH-1 provides connectivity
to the northern states. NH-1 is one of the largest projects of
NHAI's National Highways Development Project (NHDP) V programme,
and crosses various tourist and industrial hubs and connects
prominent cities/towns in Punjab and Haryana (Karnal, Ambala,
Ludhiana, and Kurukshetra), which provide good economic potential
for the road stretch. Furthermore, the Panipat-Jalandhar road
stretch has existed for several years, which mitigates the risk
of resistance to toll charges. The concession agreement also
provides for indexed escalation (linked to wholesale price index)
for the entire tenure of the concession. Though there are
alternative routes, these are relatively longer, have only two or
four lanes, and are in poor condition. PJNTPL's toll income is
expected to pick up gradually over the medium term, backed by
robust traffic potential of the road stretch. Public Sector
Pension Investment Board (PSP; rated 'AAA/Stable/A-1+' by S&P
Global Ratings) made investments in the Isolux Corsan group,
which holds 51% stake in PJNTPL, thereby improving the group's
financial risk profile. However, pick-up in toll collection and
resultant cash flow adequacy as well as timely financial support
from the sponsors will remain the key rating sensitivity factors.

Incorporated in 2008, PJNTPL is a special-purpose vehicle
promoted by the Isolux Corsan group and Soma Enterprises Ltd in
the ratio of 61:39. PJNTPL has entered into a concession
agreement with NHAI for execution, operation, and maintenance of
the project on a build-operate-transfer (BOT) basis.

The company has been awarded the right to widen the four-lane
Panipat'Jalandhar section of NH 1 to six lanes, to be executed on
a BOT-toll basis. The concession period is for 15 years, which
includes a construction period of 30 months. The revised project
cost of INR5690 crore was funded in a debt-equity ratio of 64:36.
The project was delayed by 46 months and it achieved provisional
completion certificate on September 30, 2015. PJNTPL had high
premium payout to NHAI of 26% of revenue earned in fiscal 2016
prior to debt servicing (premium to be increased by 1% y-o-y till
the end of the concession period). While the company is expecting
claims reimbursement from NHAI, it is also in talks for putting
in request for deferring of premium.

PJNTPL earned toll revenue of INR464 crs in fiscal 2017.


PRABHA KALYAN: CRISIL Assigns 'B' Rating to INR6.5MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facility of Prabha Kalyan Samiti (PKS).

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Term Loan              6.5       CRISIL B/Stable

The rating reflects PKS's modest scale of operations in the
intensely competitive education industry, and exposure to
stringent regulations by government agencies. These rating
weaknesses are partially offset by the trustees' extensive
experience.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: PKS runs a school and a college in
Lucknow and Kanpur, respectively. The scale of operations remains
modest, with revenue of INR2 crore in fiscal 2017.

* Exposure to stringent regulations: Operations are regulated by
government agencies such as the University Grants Commission
(UGC), All India Council for Technical Education (AICTE),
universities, and state governments. The trust, therefore, needs
to invest regularly in augmenting its workforce and
infrastructure.

Strength

* Trustees' extensive experience: The trust benefits from the
management's extensive experience of over 2 decades in the
education industry.

Outlook: Stable

CRISIL believes PKS will continue to benefit from its
management's strong track record. The outlook may be revised to
'Positive' if ramp-up in scale of operations and stable
profitability result in higher-than-expected cash accrual. The
outlook may be revised to 'Negative' if adverse regulatory
changes, or sizeable capital expenditure weakens liquidity.

Formed in 2003, PKS runs a college and school in Kanpur and
Lucknow, respectively. The trust is managed by Mr Akhilesh
Katiyar and Mr Ravikant Gadiyal.

The trust reported profit after tax of INR0.23 crore on net sales
of INR1.62 crore in fiscal 2016 vis-a-vis profit after tax of
INR0.16 crore on net sales of INR1.45 crore in fiscal 2015.


PUSHPANJLI STRIPS: Ind-Ra Migrates Rating to BB Not Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Pushpanjli
Strips's Long-Term Issuer Rating to the non-cooperating category.
The issuer did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND
BB(ISSUER NOT COOPERATING)' on the agency's website. The
instrument-wise rating actions are:

-- INR130 mil. Fund-based facility migrated to non-cooperating
    category with IND BB(ISSUER NOT COOPERATING)/IND A4+(ISSUER
    NOT COOPERATING) rating

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
June 24, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Established in 2007, Pushpanjli Strips manufactures steel rounds,
squares and flats at its steel rolling plant located at Mandi
Gobindgarh in Punjab and trades allied products. The firm caters
to the construction and other manufacturing industries.


RAMESHWAR PRASAD: Ind-Ra Ups Issuer Rating to BB, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has taken the following
rating actions on Rameshwar Prasad Sharma Contractor (RPSC):

-- Issuer rating upgraded with IND BB/Stable rating;
-- INR62.5 mil. Fund-based limit, long-term rating upgraded;
    short-term rating affirmed, with IND BB/Stable/IND A4+
    rating;
-- INR65 mil. Non-fund-based limit affirmed with IND A4+ rating
-- INR37.5 mil. Fund-based working capital limit* assigned with
    IND BB/Stable/IND A4+ rating;
-- INR35 mil. Non-fund-based facility* assigned with IND A4+
    rating

* The final ratings were assigned based on the sanction letters
provided by RPSC to Ind-Ra.

KEY RATING DRIVERS

The upgrade reflects an improvement in RSPC's credit profile on
the back of timely completion of orders and lower crude oil
price, which led to a reduction in price of one of its key raw
material. As per provisional financials for FY17, revenue
substantially rose to INR1,000.43 million (FY16: INR414.59
million; FY15: INR573.77 million) and EBITDA margin to 9.53%
(7.07%; 5.32%). Consequently, interest coverage (operating
EBITDA/gross interest expense) improved to 3.19x in FY17P (FY16:
2.75x; FY15: 2.17x) and gross leverage (total adjusted
debt/operating EBITDA) to 2.72x (6.66x; 3.08x).

The ratings also factor in RSPC's healthy order book of INR1.3
billion as of June 2017, to be executed by March 2018, and the
promoters' three-decade-long experience in the infrastructure
business.

However, the ratings remain constrained by RSPL's elongated
operating cycle of 112 days in FY17P (FY16: 137 days; FY15: 171
days) on account of high debtor days and tight liquidity position
with around 97.64% utilisation of fund-based limits during the 12
months ended June 2017.

RATING SENSITIVITIES

Positive: Improvement in the top-line leading to an improvement
in the credit metrics could be positive for the ratings.

Negative: Deterioration in the top-line and/or substantial
deterioration in the net working capital cycle leading to
deterioration in the credit metrics could be negative for the
ratings.

COMPANY PROFILE

RPSC, established in 1997, is an AA class road construction
contractor, working for various government authorities in
Rajasthan.


RHIZOME DISTILLERIES: CRISIL Ups Rating on INR9.5MM Loan to BB-
---------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of Rhizome Distilleries Private Limited (RDPL) to 'CRISIL BB-
/Stable' from 'CRISIL B+/Stable.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            9.5       CRISIL BB-/Stable (Upgraded
                                    from 'CRISIL B+/Stable')

   Long Term Loan         7.5       CRISIL BB-/Stable (Upgraded
                                    from 'CRISIL B+/Stable')

The upgrade reflects CRISIL's belief that the company's business
and financial risk profiles will continue to improve over the
medium term because of healthy growth in revenue and
profitability and hence better debt protection metrics.
Provisional gross and net revenues is INR72.27 Cr. and INR37.22
Cr. respectively for the Fiscal 2017 compared to INR46.79 Cr. and
INR30.47 Cr. in Fiscal 2016. Gross revenue and net revenue are
expected to increase by around 60-70% and 20-25% in the Fiscal
2018 on account of full utilization of enhanced capacities,
however the same is subjected to the availability of additional
working capital limits.

Working capital limits are expected to increase to around INR20
Cr. in the Fiscal 2018, to support the increase in revenues and
revised excise duty structure in Telangana State. However any
deviation from expected enhancement in working capital limits may
result in adverse effect on business risk profile. The upgrade
also factors in moderate liquidity due to adequate cash accrual
for debt repayment. Though bank lines stand fully utilized the
same is expected to improve with increase in the limits.
Financial risk profile is expected to improve with prepayment of
term loan in the Fiscal 2018 which will be funded through
infusion of fresh equity of INR5 crore and unsecured loans of
INR3.5 crore by the promoters.

The rating reflects the extensive industry experience of the
promoters and established relationship with the suppliers and
Telangana State Beverages Corporation Limited. This rating
strength is partially offset by modest scale of operations and
large working capital requirements. The rating also factors in
the average financial risk profile and susceptibility to
regulatory changes in the distillery industry.

Key Rating Drivers & Detailed Description

Strengths

* Extensive industry experience of promoters
The company was earlier promoted by Rupani family and currently
Mr.Nishnath Bezawada has taken over the operations. RDPL's
manufacturing facility is located in Medchal. The company sells
its product under the brand, Rhizome in Telangana. Under the
leadership RDPL has created a market for its own brand in
Telangana market Furthermore, the company also undertakes job
work for companies such as Allied Blenders and Distillers Pvt Ltd
(ABD).

Weaknesses

* Modest scale of operations and large working capital
requirements: Scale of operations remain modest with provisional
gross and net revenues of INR72.27 Cr. and INR37.22 Cr.
respectively in the Fiscal 2017, Scale of operations is expected
to increase but should remain small over the medium term.
Furthermore RDPL's operations are working capital intensive as
reflected in high GCA, provisional at 377 days as on March 31
2017. Operations are expected to remain working capital intensive
over the medium term.


* Average financial risk profile: Net worth was moderate at
around INR14.0 Cr. as on March 31 2017. Furthermore, debt
protection metrics is estimated to be average marked by interest
coverage ratio and net cash accruals to adjusted debt ratio of
around 1.74 times and 9%, for the Fiscal 2017. Debt protection
metrics is expected to improve with prepayment of term loan in
the fiscal 2018.

* Susceptibility of operations to regulatory changes in
distillery industry
RDPL operates in the liquor industry, which is highly regulated
and vulnerable to policy changes and excise duty revisions. Sale
and distribution of liquor in a state are regulated by the state
government, with regulations spanning production, wholesale and
retail distribution, raw material availability, and pricing.

Outlook: Stable

CRISIL believes RDPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of sustained
increase in scale of operations and profitability, or a
substantial improvement in the company's working capital cycle.
Conversely, the outlook may be revised to 'Negative' in case of a
steep decline in profitability margins or lower than expected
scale of operations, or deviation in capital structure vis-a-vis
expected, caused most likely by a stretched working capital cycle
or if the term loan is not prepared.

RDPL was set up in 1993 by Mr. Manoj Rupani and his family
members, and was taken over by Mr. Nishanth Bezawada and his
family members in 2014-15. The company manufactures and sells
India-made foreign liquor in Telangana and also does job-work.
The company's manufacturing unit is in Hyderabad.

RDPL reported Profit After Tax (PAT) of INR0.77 crore on net
revenue of INR37.22 crore in fiscal 2017 (Provisional), against
INR0.31 crore and net revenue of INR30.47 crore in fiscal 2016.


ROYAL LATEX: Ind-Ra Affirms 'BB-' Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Royal Latex
Private Limited's (RLPL) Long-Term Issuer Rating at 'IND BB-'.
The Outlook is Stable. The instrument-wise rating actions are:

-- Long-term loan due on September 2019 INR 1.66 mil. (reduced
    from INR2.477 mil.) affirmed with IND BB-/Stable rating;
-- INR 140 mil. (increased from INR90 mil.) Fund-based
    facilities affirmed with IND BB-/Stable/IND A4+ rating; and
-- INR  18.34 mil. (reduced from INR27.5 mil.) Non-fund-based
    facilities affirmed with IND A4+ rating

KEY RATING DRIVERS

The affirmation reflects RLPL's continued weak credit metrics and
moderate scale of operations. In FY17 EBITDA interest coverage
(operating EBITDA/gross interest expense) was 1.4x (FY16: 1.6x,
FY15:1.4x) and net financial leverage (total adjusted net
debt/operating EBITDA) was 6.1x (5.2x, 4.5x). Revenue was
INR1,215 million in FY17 (FY16:1,062 million and FY15: INR864
million). Increase in revenue is primarily on account of an
increase in the number of orders received from long standing
customers. RLPL has booked revenue of INR150 million 3MFY18 and
has a current order book of INR19.95 million which will be
executed by August 2017. The ratings reflect RLPL's operating
profitability of INR14 million in FY17 (FY16:INR13 million). The
ratings factor in the risks inherent in commodity processing
business as reflected in RLPL's fluctuating profitability (FY17:
1.1%, FY16: 1.3%, and FY15: 1.5%, FY14: 1.2%).

The ratings further reflect RLPL's tight liquidity position,
indicated by four-six days of overutilisation of fund-based
facilities during the six months ended June 2017. The average
peak utilisation of the fund-based working capital facilities was
101.5% over the 12 months ended June 2017.

The ratings, however, derive support from more than two decades
of experience of the promoters in the rubber industry.

RATING SENSITIVITIES

Positive: Substantial growth in top-line and profitability
improvement leading to sustained improvement in the overall
credit metrics will be positive rating action.

Negative: Deterioration in the operating profitability leading to
deterioration in overall credit metrics will be negative for the
ratings.

COMPANY PROFILE

RLPL was incorporated in 2006 by Mr Rijo Mathew. RLPL is engaged
in manufacturing and trading of centrifuged latex and skim rubber
with its manufacturing facility located in Kerala.


SHREE BALAJI: Ind-Ra Moves Issuer Rating to BB+ Not Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shree Balaji
Alumnicast Private Limited's (SBAPL) Long-Term Issuer Rating to
the non-cooperating category. The issuer did not participate in
the surveillance exercise despite continuous requests and follow
ups by the agency. Therefore, investors and other users are
advised to take appropriate caution while using these ratings.
The rating will now appear as 'IND BB+(ISSUER NOT COOPERATING)'
on the agency's website. The instrument-wise rating actions are:

-- INR150 mil. Fund-Based Working Capital Limits migrated to
    non-cooperating category with IND BB+ (ISSUER NOT
    COOPERATING)
    rating;
-- INR1,050 mil. Non Fund-Based Working Capital Limits migrated
    to non-cooperating category with IND A4+ (ISSUER NOT
    COOPERATING) rating; and
-- INR120 mil. Term loan migrated to non-cooperating category
    with IND BB+ (ISSUER NOT COOPERATING) rating

Note: ISSUER NOT COOPERATING:  The ratings were last reviewed on
18 May 2016. Ind-Ra is unable to provide an update as the agency
does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 2007 by Mr. Sunil Aggarwal, SBAPL supplies
aluminium alloy ingots to major die cast component producers. It
has a head office in Gurgaon and its manufacturing facilities are
located in Dharuhera, Gurgaon, Ludhiana and Binola. The company
is commissioning a new manufacturing facility in Bangalore and
management plans to commence operations by June 2016. In FY15,
its revenue grew by almost 50% yoy to INR5,063 million. As at
9MFY16 SBAPL recorded revenue of INR3,810 million, which has been
largely accounted for by its manufacturing business.


SOBHA PROJECT: Ind-Ra Assigns 'BB+' Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Sobha Projects
and Trade Private Limited (SPTPL) a Long-Term Issuer Rating of
'IND BB+'. The Outlook is Stable. The instrument-wise rating
actions are:

-- INR490 mil. Fund-based working capital limits assigned with
    IND BB+/Stable/IND A4+ rating;
-- INR260 mil. Non-fund-based limits assigned IND BB+/Stable/IND
    A4+ rating;
-- INR100 mil. Proposed fund-based working capital limits*
    assigned with Provisional IND BB+/Stable/Provisional IND A4+
    rating;
-- INR650 mil. Proposed non-fund-based limits* assigned with
    Provisional IND BB+/Stable/Provisional IND A4+ rating

*The ratings are provisional and the final ratings will be
assigned subject to execution of sanction letter for the above
facilities.

KEY RATING DRIVERS

The ratings reflect SPTPL's moderate credit metrics with interest
cover of 1.66x as per FY17 provisional results (FY16: 1.2x) and
net leverage of 5.03x (5.98x) primarily owing to large advances
(INR744.6 million outstanding as of 31 March 2017) extended to a
group company in the past.

The ratings are also constrained by the company's elongated
working capital cycle of 126 days in FY17 (FY16: 144 days) with
receivables of 174 days (218 days) and inventory of 148 days (133
days).

The ratings also factor in the company's moderate liquidity
position with near full utilisation of fund-based working capital
limits for the 12 months ended May 2017. However, SPTPL does not
have any scheduled debt obligations in the near term.

The company also faces the risk of delays in project execution,
in case the project counterparty slows down execution in response
to slow sales. The company currently caters mostly to the
residential real estate industry, on which Ind-Ra maintains a
Negative Outlook to reflect continued slow sales in the sector.
Funding the execution of the large order book, given the long
working capital cycle, is another risk. However, the company
expects to receive a part of the advances extended to the group
company in FY18 which will help fund working capital requirement
and ease the leverage position.

The ratings are, however, supported by SPTPL's strong order book
of INR6.63 billion as of April 2017, which provides revenue
visibility over the next couple of years. A successful execution
of the order book will result in revenue more than doubling in
FY18 (FY17: INR1,018.7 million, FY16: INR866.8 million). While
the order book is concentrated with the top five customers
accounting more than 80% of the order book and the top five
projects contributing more than 70% to the order book, the
concentration risk is partly mitigated due to the strong client
profile, which consists of reputed players in the real estate
industry such as Prestige Estate Projects Limited, Sobha Limited,
Mantri Developers Private Limited, Emami Limited and Mahindra
Lifespace Developers Limited. EBITDA margin remained in the range
of 13%-15% over FY14-FY17 (FY17: 14.7%, FY16: 13.1%) and is
expected to remain at similar levels over the medium term.

The ratings also benefit from the promoter's extensive track
record in the real estate and construction industry in India and
the Middle East.

RATING SENSITIVITIES

Positive: Successful execution of the order book, improvement in
working capital cycle and receipt of repayment of advances from
related party, leading to a significant improvement in the credit
metrics could lead to a positive rating action.

Negative: Inability to improve the working capital cycle or a
fall in operating profitability leading to weakening of liquidity
position will be negative for the ratings.

COMPANY PROFILE

SPTPL is a part of the STC Group, headed by Mr. PNC Menon. The
Group has interests in real estate and construction businesses in
Oman, the UAE, Qatar and India. Sobha Limited, a Bangalore-based
real estate company, is the flagship company of the Group.

SPTPL initially started by providing fire and safety services to
the civil construction industry but it has now expanded its
services into mechanical, electrical and plumbing services.

As per provisional financials for FY17, the company had revenue
of INR1,018.7 million (FY16: INR866.8 million), operating EBITDA
of INR149.2 million (INR113.5 million) and net profit of INR52.1
million (INR20.5 million). As of FYE17, the company had debt of
INR758.1 million (FYE16: INR704.8 million) and cash & equivalents
of INR7.1 million (INR26.3 million).


SRI SARAVANA: CRISIL Raises Rating on INR5MM Cash Loan to B+
------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of Sri Saravana Hi-Tech Agro Foods (SSHAF) to 'CRISIL B+/Stable'
from 'CRISIL B/Stable'.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit             5        CRISIL B+/Stable (Upgraded
                                    from 'CRISIL B/Stable')

   Long Term Loan          3.5      CRISIL B+/Stable (Upgraded
                                    from 'CRISIL B/Stable')

The upgrade reflects CRISIL's belief that company will sustain
its improved liquidity profile over the medium term marked by
improved cash accruals. The firm has reported revenue growth of
10 percent in fiscal 2017 while maintaining its operating
profitability at around 12 percent leading to improve cash
accruals. CRISIL believes that the firm's liquidity will continue
to be supported by improving cash accruals though constrained by
high utilization of bank lines due to large working capital
requirements.

The rating continues to reflect SSHAF's modest scale of
operations and exposure to intense competition in the rice
milling industry, and its working capital-intensive operations.
These weaknesses are partially offset by the extensive experience
of its proprietor in the rice milling business.

Analytical Approach

Unsecured loans of INR1.25 crore as on March 31, 2017, from the
partners have been treated as neither debt nor equity.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations and exposure to intense competition
in the rice milling industry
The modest scale of operations limits the firm's pricing power in
the intensely competitive and fragmented rice milling industry.

* Large working capital requirement
Gross current assets were at 180 days in the 2 fiscals through
March 2017 on account of large inventory of 150-180 days

Strengths

* Extensive experience of the Partners in the rice milling
industry
The partners have experience of around 3 decades in the rice
milling industry, and have established relationships with
suppliers and customers.

Outlook: Stable

CRISIL believes SSHAF will continue to benefit from its
proprietor's extensive industry experience. The outlook may be
revised to 'Positive' if revenue and operating profitability
increase, leading to a better financial risk profile. The outlook
may be revised to 'Negative' if SSHAF undertakes aggressive,
debt-funded expansion, or if its revenue and profitability
decline substantially, or if the proprietor withdraws capital,
weakening the financial risk profile.

Set up in 2013 as a partnership firm, SSHAF processes paddy into
rice. Operations are managed by Mr M. Rajendran, the partner.

SSHAF booked Profit after Tax (PAT) of INR45 lakhs on revenues of
INR17.71 crores in fiscal 2016 against loss of INR17.71 lakhs on
revenues of INR17.19 crores in fiscal 2015.


UTTAM INDUSTRIAL: Ind-Ra Ups Issuer Rating to BB, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Uttam Industrial
Engineering Private Limited's (UIEPL; formerly Uttam Industrial
Engineering Limited) Long-Term Issuer Rating to 'IND BB' from
'IND BB-'. The Outlook is Stable. The instrument-wise rating
actions are:

-- INR60.0 mil. (reduced from INR121.0 mil.) Long-term loan due
    on April 2018 to March 2028 upgraded with IND BB/Stable
    rating;
-- INR5.0 mil. Fund-based limits upgraded with IND BB/Stable
    rating; and
-- INR442.2 mil. (increased from INR370.0) mil. Non-fund-based
    limits affirmed with IND A4+ rating

KEY RATING DRIVERS

The upgradation reflects a significant improvement in revenue and
credit metrics, with liquidity remaining moderate. Revenue was
INR1,838 million in FY17 (FY16: INR344 million). The majority of
revenue growth was driven by a major order worth INR1,412
million, about 90% of which was executed in FY17. However, Ind-Ra
expects revenue to moderate to INR700-800 million in FY18 on
account of a low order book position for FY18 (June 2017:
INR1,778 million; May 2016: INR2,644 million).

Moreover, in FY17, gross interest coverage was 4.0x (FY16: 2.0x;
FY15: 2.5x) and leverage (total debt, excluding corporate
guarantee/operating EBITDA) was 0.8x (FY16: 2.6x; FY15: 3.5x).
Leverage, including corporate guarantees (FY17: INR5,033 million;
FY16: INR4,375 million), remained high at 44x at FYE17 (FYE16:
93x; FYE15: 143x). The improvement in gross interest coverage was
driven by higher EBITDA (FY17: INR116 million; FY16: INR48
million; FY15: INR40 million).

The ratings are constrained by a low order book position of
INR1,778 million as of June 2017, providing revenue visibility
for FY18 predominantly. The cyclicality in the sugar industry
leads to fluctuations in order book and revenue. Furthermore, the
order book remains concentrated, given the top five orders
account for nearly 85% of the current order book. Any delays in
order execution or delay in receipt of payment could lead to
volatility in revenue and EBITDA margin.

The ratings are also constrained by a decline in EBITDA margin to
6.3% in FY17 from 13.8% in FY16. The decline was due to a higher
proportion of bought-out items, where margins were low, in orders
executed during the period. Given a low revenue visibility for
FY18, Ind-Ra expects EBITDA to be lower in FY18 on a year-on-year
basis. UIEPL expects EBITDA margin to be 6-8% in FY18.

The ratings, however, are supported by UIEPL's moderate liquidity
position. UIEPL had a negative working capital over FY14-FY17 on
account of high creditor days due to advances received from
customers. Average trade creditor period was around four months
during FY17.

RATING SENSITIVITIES

Negative: A sustained decline in revenue, deterioration in credit
metrics and liquidity profile will be negative for the ratings.

Positive: A sustained improvement in revenue, credit metrics and
liquidity will be positive for the ratings.

COMPANY PROFILE

UIEPL is a privately held company primarily engaged primarily in
the engineering of equipment and machinery and execution of
turnkey projects for the sugar industry.


VELVET RESORTS: CRISIL Upgrades Rating on INR6.7MM Loan to 'B'
--------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities
of Velvet Resorts Private Limited (VRPL) to 'CRISIL B/Stable'
from 'CRISIL C', and has reaffirmed its 'CRISIL A4' rating on the
short-term bank facilities.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Overdraft               2        CRISIL A4 (Reaffirmed)

   Term Loan               6.7      CRISIL B/Stable (Upgraded
                                    from 'CRISIL C')

The upgrade reflects improvement in VRPL's business risk profile.
On provisional basis, revenue increased by 53% to reach INR5.8
core in fiscal 2017 from INR3.8 crore in fiscal 2016 due to rise
in average occupancy to around 65%. Operating profitability also
improved significantly to 44% from previous year's 13.1% leading
to sufficient net cash accrual against maturing term debt
obligation. The company is estimated to generate NCA of INR1.38
crore in fiscal 2018 against the term debt repayment obligations
of around INR1.31 crore. During fiscal 2017, the promoters have
also infused USL of INR3.13 crore to support the liquidity of the
company. Operating income is estimated to improve to more than
INR7.0 crore in fiscal 2018 led by expected improvement in the
ARR and occupancy levels.

Key Rating Drivers & Detailed Description

Weaknesses

* Weak financial risk profile: The financial risk profile with
negative networth of INR0.09 crore and debt of INR14.09 crore as
on March 31, 2017 is expected to remain weak in the near term due
to low cash accrual in the initial phase of operations.

* Early stage, and hence, small scale of operations in the
intensely competitive hotel industry: Revenue is modest at
INR5.83 crore in fiscal 2017, because of the early stage of
operations and intense competition. Occupancy levels are around
65%; however, the demand is seasonal in nature and picks up
during the wedding season.

Strengths

* Experience of promoters: The promoters have over two decades of
experience through group concern and resort, Choice Resorts.
Their experience helped establish healthy relationship with
suppliers and develop in-depth knowledge and understanding of the
industry

* Funding support from promoters: The promoters extended
unsecured loans (outstanding at INR7.03 crore as on March 31,
2017, against INR3.9 crore a year ago) to support the business.

Outlook: Stable

CRISIL believes VRPL will benefit over the medium term from the
experience of promoters. The outlook may be revised to 'Positive'
if cash accrual and scale of operations increase substantially
with efficient working capital management. Conversely, the
outlook may be revised to 'Negative' if financial risk profile
weakens because of stretched working capital cycle or
considerably low average room occupancy.

Incorporated in 2009 by Mr Bhagwant Singh and his son, Mr Dilraj
Singh, VRPL started Hotel Clark in August 2015. The hotel is in
Jakirpur (Delhi-Chandigarh Highway)

Net profit on provisional basis, was INR0.28 crore on operating
income of INR5.83 crores in fiscal 2017, against net loss of
INR1.37 crores on operating income of INR3.86 crores in fiscal
2016.



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


TAKATA CORP: Unjust to Halt Air Bag Cases, Victims' Lawyers Say
---------------------------------------------------------------
Reuters reports that lawyers for people injured by Takata Corp's
defective air bags told a U.S. judge on July 18 there was "no
basis" for an "unjust" request by the company's U.S. unit to halt
hundreds of consumer lawsuits against car companies that used the
air bags.

When the U.S. unit filed for bankruptcy in June, litigation
against the unit for injuries, wrongful death, economic losses
and breaches of consumer protection laws were automatically
stayed, the report says.

Last week, Takata's U.S. unit asked for a preliminary injunction
that would halt similar lawsuits against Honda Motor Co, Toyota
Motor Corp and other car companies that used the air bags, the
report relates.

Halting the litigation would help Takata sell its healthy
business to Key Safety Systems, which is owned by China's Ningbo
Joyson Electronic Corp, Reuters says citing TK Holdings Inc, the
U.S. unit. Funds from that $1.6 billion proposed sale will be
used to compensate injured drivers, Reuters adds citing court
papers filed in the U.S. Bankruptcy Court in Wilmington,
Delaware, Reuters notes.

At a hearing on July 18, attorney Dean Ziehl said there was "no
basis" to block claims against the automakers during the
bankruptcy. He represents an official committee of injured
drivers in the bankruptcy that was appointed earlier this month,
Reuters reports.

According to the report, Mr. Ziehl said the requested injunction
was solely to benefit automakers.

Adam Levitt, a lawyer for the state of New Mexico, which has sued
Takata and automakers for violating consumer protection laws,
called the request "unjust" and "extraordinary," the report
relays.

According to the report, U.S. Bankruptcy Judge Brendan Shannon
set an Aug. 9 hearing on the requested injunction, a schedule
Mr. Ziehl criticized as "aggressive." Mr. Ziehl said his
committee intended to seek "substantial, expedited discovery" to
investigate the motivation for requesting the injunction.

The requested injunction would not affect a $553 million class
action settlement over economic losses, which was reached with
Toyota, BMW AG, Mazda Motor Co and Subaru Corp, adds Reuters.

                       About Takata Corp

Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/-- develops, manufactures and sells
safety products for automobiles.  The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts.
Headquartered in Tokyo, Japan, Takata operates 56 plants in 20
countries with approximately 46,000 global employees worldwide.
The Company has subsidiaries located in Japan, the United States,
Brazil, Germany, Thailand, Philippines, Romania, Singapore,
Korea, China and other countries.

In May 1995, a voluntary recall in the U.S. affecting 8 million
predominantly Japanese built vehicles made from 1986 to 1991 with
seat belts manufactured by the Takata was conducted.  Large
recalls of vehicles due to faulty Takata-made airbags then began
in 2013.

Takata is facing massive costs of recalling 100 million defective
airbag inflators worldwide and lawsuits tied to at least 16
deaths and numerous injuries.

As of May 19, 2015, Takata has already recalled 40 million
vehicles across 12 vehicle brands for defective airbags.

In November 2015, Takata was fined $200 million by U.S. federal
regulators for mishandling the way it recalled its air bag
inflators.  The fine is the largest civil penalty in NHTSA
history.

After reaching a deal to sell all its global assets and
operations to Key Safety Systems (KSS) for US$1.588 billion,
Takata and its Japanese subsidiaries commenced proceedings under
the Civil Rehabilitation Act in Japan in the Tokyo District Court
on June 25, 2017.

In addition, Takata's main U.S. subsidiary TK Holdings Inc. and
11 of its U.S. and Mexican affiliates each filed voluntary
petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del.
Lead Case No. 17-11375) on June 25, 2017.

Nagashima Ohno & Tsunematsu is the counsel in the Japanese
proceedings.  Weil, Gotshal & Manges LLP  and Richards, Layton &
Finger, P.A., are serving as counsel in the U.S. cases.
PricewaterhouseCoopers is serving as financial advisor, and
Lazard is serving as investment banker to Takata.  Ernst & Young
LLP is tax advisor.

Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, KPMG is serving as financial advisor, Jefferies LLC is
acting as lead financial advisor while UBS Investment Bank also
provides financial advice to KSS.  Prime Clerk is the claims and
noticing agent.


TK HOLDINGS: Hires Weil Gotshal as Attorneys
--------------------------------------------
TK Holdings Inc., et al., seek authorization from the U.S.
Bankruptcy Court for the District of Delaware to employ Weil,
Gotshal & Manges LLP as attorneys, nunc pro tunc to the June 25,
2017 petition date.

The Debtor requires Weil Gotshal to:

  (a) prepare on behalf of the Debtors, as debtors in possession,
      all necessary motions, applications, answers, orders,
      reports and other papers in connection with the
      administration of the Debtors' estates;

  (b) take all necessary action to protect and preserve the
      Debtors' estates, including the prosecution of actions on
      the Debtors' behalf, the defense of any actions commenced
      against the Debtors, the negotiation of disputes in which
      the Debtors are involved and the preparation of objections
      to claims filed against the Debtors' estates;

  (c) take all necessary actions in connection with any chapter
      11 plan and related disclosure statement and all related
      documents, and such further actions as may be required in
      connection with the administration of the Debtors' estates;
      and

  (d) perform all other necessary legal services in connection
      with the prosecution of these Chapter 11 Cases.

Weil Gotshal will be paid at these hourly rates:

        Members/Counsel          $940-$1,400
        Associates               $510-$930
        Paraprofessionals        $220-$375

Weil Gotshal will also be reimbursed for reasonable out-of-pocket
expenses incurred.

Prior to the petition date, since August 2015, Weil Gotshal
received payments totaling $19,100,677 for professional services
performed and expenses incurred, including in preparation for the
commencement of these Chapter 11 Cases.  Of that amount, Weil
Gotshal received payments totaling $9,907,392 during the 90 days
prior to the petition date.  As of the Petition Date, Weil
Gotshal held an advance payment retainer of $931,737.28.

Marcia L. Goldstein, member of Weil Gotshal, assured the Court
that the firm is a "disinterested person" as the term is defined
in Section 101(14) of the Bankruptcy Code and does not represent
any interest adverse to the Debtors and their estates.

In accordance with Appendix B-Guidelines for Reviewing
Applications for Compensation and Reimbursement of Expenses Filed
under 11 U.S.C. Sec. 330 for Attorneys in Larger Chapter 11
Cases, the following is provided in response to the request for
additional information:

  -- Weil did not agree to any variations from, or alternatives
     to, its standard or customary billing arrangements for this
     engagement;

  -- None of Weil's professionals included in this engagement
     have varied their rate based on the geographic location for
     these Chapter 11 Cases;

  -- Weil was engaged by the Debtors in August 2015. In October
     2016, prior to the Petition Date, Weil increased its
     standard billing rates for its professionals across the Firm
     in the ordinary course. The billing rates and material
     financial terms of Weil's engagement have not changed post-
     petition from the prepetition arrangements or rates
     established in October 2016; and

  -- Weil, in conjunction with the Debtors, is developing a
     prospective budget and staffing plan for these Chapter 11
     Cases. Weil and the Debtors will review such budget
     following the close of the budget period to determine a
     budget for the following period.

Weil Gotshal can be reached at:

       Marcia L. Goldstein, Esq.
       WEIL GOTSHAL & MANGES LLP
       767 Fifth Avenue
       New York, NY 10153
       Tel: (212) 310-8214
       Fax: (212) 310-8007
       Email: marcia.goldstein@weil.com

                       About Takata Corp

Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/-- develops, manufactures and sells
safety products for automobiles.  The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts.
Headquartered in Tokyo, Japan, Takata operates 56 plants in 20
countries with approximately 46,000 global employees worldwide.
The Company has subsidiaries located in Japan, the United States,
Brazil, Germany, Thailand, Philippines, Romania, Singapore,
Korea, China and other countries.

In May 1995, a voluntary recall in the U.S. affecting 8 million
predominantly Japanese built vehicles made from 1986 to 1991 with
seat belts manufactured by the Takata was conducted.  Large
recalls of vehicles due to faulty Takata-made airbags then began
in 2013.

Takata is facing massive costs of recalling 100 million defective
airbag inflators worldwide and lawsuits tied to at least 16
deaths and numerous injuries.

As of May 19, 2015, Takata has already recalled 40 million
vehicles across 12 vehicle brands for defective airbags.

In November 2015, Takata was fined $200 million by U.S. federal
regulators for mishandling the way it recalled its air bag
inflators.  The fine is the largest civil penalty in NHTSA
history.

After reaching a deal to sell all its global assets and
operations to Key Safety Systems (KSS) for US$1.588 billion,
Takata and its Japanese subsidiaries commenced proceedings under
the Civil Rehabilitation Act in Japan in the Tokyo District Court
on June 25, 2017.

In addition, Takata's main U.S. subsidiary TK Holdings Inc. and
11 of its U.S. and Mexican affiliates each filed voluntary
petitions under Chapter 11 of the Bankruptcy Code (Bankr. D. Del.
Lead Case No. 17-11375) on June 25, 2017.

Nagashima Ohno & Tsunematsu is the counsel in the Japanese
proceedings.  Weil, Gotshal & Manges LLP  and Richards, Layton &
Finger, P.A., are serving as counsel in the U.S. cases.
PricewaterhouseCoopers is serving as financial advisor, and
Lazard is serving as investment banker to Takata.  Ernst & Young
LLP is tax advisor.

Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, KPMG is serving as financial advisor, Jefferies LLC is
acting as lead financial advisor while UBS Investment Bank also
provides financial advice to KSS.  Prime Clerk is the claims and
noticing agent.


TOSHIBA CORP: Resumes Blocking WD Access to Databases
-----------------------------------------------------
The Japan Times reports that Toshiba Corp. said on July 19 it has
resumed blocking Western Digital Corp.'s access to the databases
of their joint chip venture after a U.S. appellate court allowed
the action in a temporary order.

According to the report, the decision by the California Court of
Appeal in San Francisco came after the San Francisco County
Superior Court ordered Toshiba last week to stop blocking Western
Digital's access to chip development data, which the Japanese
firm started in June. Toshiba appealed the superior court
decision.

Reeling from massive losses linked to its now-bankrupt U.S.
nuclear subsidiary, Toshiba is aiming to quickly sell the chip
unit, Toshiba Memory Corp., to raise cash and avoid a stock
market delisting, the report says.

Western Digital, which has jointly invested in Toshiba's flash
memory operations in Yokkaichi, Mie Prefecture, says a sale of
the unit without its consent would violate the joint venture
contract, according to the report.

"This particular ruling allows TMC to reaffirm its commitment to
protecting its intellectual property and prevent Western Digital
employees from accessing confidential information stored in its
databases, an action Toshiba has already implemented," Toshiba
said in a statement released July 19.

The Japan Times relates that the U.S. appellate court said
Western Digital has until Tuesday to file its opposition.

The escalating legal dispute continues to complicate the sale of
the unit, the report adds.

                          About Toshiba

Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is
a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others.  The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-
scale integrated (LSI) circuits for image information systems and
liquid crystal displays (LCDs), among others.  The Social
Infrastructure segment offers various generators, power
distribution systems, water and sewer systems, transportation
systems and station automation systems, among others.  The Home
Appliance segment offers refrigerators, drying machines, washing
machines, cooking utensils, cleaners and lighting equipment.  The
Others segment leases and sells real estate.

As reported in the Troubled Company Reporter-Asia Pacific on
June 19, 2017, S&P Global Ratings said it has kept its 'CCC-'
long-term and 'C' short-term ratings on Japan-based capital goods
and diversified electronics company Toshiba Corp. on CreditWatch
with negative implications.  The long- and short-term ratings on
Toshiba have remained on CreditWatch with negative implications
since December 2016, when S&P also lowered the long-term ratings
because of a likelihood that the company might recognize massive
losses in its U.S. nuclear power business.  S&P kept them on
CreditWatch negative when it lowered the long- and short-term
ratings in January 2017 and when S&P lowered the long-term
ratings in March 2017.

The ratings remain on CreditWatch, reflecting S&P's view that
creditor banks' support for Toshiba together with the company's
liquidity levels warrant continued close monitoring because its
plan to sell its memory business has yet to materialize and
additional losses or financial burdens might still arise in
connection with its U.S. nuclear power business.  S&P continues
to hold the view that without unanticipated, significantly
favorable changes in Toshiba's circumstances, the company might
become unable to fulfill its financial obligations in a timely
manner or might undertake a debt restructuring S&P classifies as
distressed in the next six months.



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


CONTINUUM ENERGY: Fitch Puts B+(EXP) Rating to Proposed USD Notes
-----------------------------------------------------------------
Fitch Ratings has assigned Continuum Energy Levanter Pte Ltd.'s
(Continuum Levanter) proposed US dollar senior notes an expected
rating of 'B+(EXP)', with Recovery Rating of 'RR4'. The proposed
issuance will be the group's first US dollar notes.

Continuum Levanter is a subsidiary of Continuum Wind Energy Ltd
(Continuum), which is mainly involved in wind power generation in
India. Continuum has a portfolio of about 2.2GW of generation
capacity, of which around 404MW is operational, 150MW is under
construction, 450MW is ready to construct, and the rest is under
development. Continuum Levanter plans to use the proceeds from
the proposed notes to refinance existing debt at operating
entities within a restricted group of companies that is defined
in the indenture to the proposed note issue. The operating
entities plan to issue secured Indian rupee-denominated bonds to
Continuum Levanter as part of this debt refinancing.

KEY RATING DRIVERS

Ratings Linked to Restricted Group: Fitch's rating on the
proposed US dollar notes reflects the credit strengths and
weaknesses of the debt structure and assets of the operating
entities that form the restricted group. The US dollar note
holders will benefit from a first charge over the shares of
Continuum Levanter. The rupee bonds will be secured by a first
charge on certain assets (excluding accounts receivable) and cash
flows of the operating entities in the restricted group. Although
there is no guarantee from Continuum, it has demonstrated a
willingness to extend support to subsidiaries.

The indenture on the proposed US dollar notes restricts cash
outflows and debt incurrence if they raise the restricted group's
ratio of gross debt to EBITDA to above 5.5x. The restricted group
would not have significant prior-ranking debt, aside from a
working capital debt facility of up to USD35 million that is
secured exclusively against accounts receivables. The total
prior-ranking debt at the restricted group will be limited to 15%
of total assets.

Seasoned Portfolio; Large Wind Farms: The restricted group has a
total generation capacity of 370MW, with weighted average (by
capacity) life of about two and a half years. The projects came
online in phases from June 2013 to December 2015. The assets also
benefit from their large scale with an average size of 185MW per
wind farm.

Strong Operating Performance: The projects have performed better
than peers in similar locations over the last few years. The
company's full ownership of operations from development to
evacuation enables it to install system upgrades seamlessly,
closely monitor operating performance and take preventive
measures. These, combined with economies of scale and evacuation
via high voltage transmission lines instead of distribution lines
leading to potential or lower curtailment, drive better
electricity generation by the assets.

Price Certainty, Volume Risks: About 87% of the restricted
group's total capacity is locked into long-term power purchase
agreements (PPAs) with tenors of 13 to 25 years. Fitch expects
the off-take agreement with a predetermined tariff for the rest
of the capacity to be signed shortly. The long-term PPAs provide
protection from price risk, but production volumes will vary with
wind patterns.

Limited Diversification: The restricted group's lack of diversity
constrains the rating. The group consists of only two assets in
India, both of which are wind-based. The off-take is also limited
to the corresponding two state utilities. There is no exposure to
direct sales.

Weak Counterparty Profile: The rating reflects the weak credit
profiles of the counterparties of the restricted group - state-
owned power distribution utilities, which account for all of the
restricted group's offtake. The utility in Madhya Pradesh has a
record of paying within five months. However, payments from the
Maharashtra utility have been significantly delayed in over last
few years due to a delay in signing PPAs amid lack of clarity on
renewable energy-related incentives, and the stressed financial
position of the state utility.

However, the Maharashtra utility has streamlined its processes
and policies including incentives related to renewable energy,
leading to improvement in the restricted group's receivable
position. There have been no payment defaults by the state
utilities to the renewable sector to date, despite the payment
delays.

FX Risk Largely Hedged: Foreign-exchange risk arises as the
earnings of the restricted group's assets are in Indian rupees
while the notes are denominated in the US dollars. However,
Continuum Levanter plans to substantially hedge the principal of
its US dollar notes and its semi-annual coupon payments.

Financial Profile To Improve Further: The restricted group's net
leverage (net debt/EBITDA) improved to 5.2x at end-FY17 from
15.5x at end-FY16 as the FY17 results included the first full
year of operation of the 170MW Ratlam I power project. The
management intends to retain cash generated from operations
within the restricted group to address liquidity concerns, if
any, and has no plans to add new assets to the restricted group.
This should further reduce net leverage to around 4.0x by FY21,
according to Fitch's estimates.

The proposed US dollar notes face refinancing risk as the cash
balance at the restricted group is likely to be insufficient to
repay the notes at maturity. However this risk is mitigated by
Continuum's good access to funding and potential support from its
strong equity investors, and its cash accruals.

DERIVATION SUMMARY

The rating on the notes benefits from restrictions on cash
outflow and additional indebtedness of the restricted group, its
reasonable operating history, large project size, stronger
operating performance and moderate financial profile. These are
offset by a lack of diversity and weak counterparties

Neerg Energy Ltd (senior note rating: B+) offers better
diversification than Continuum Levanter in terms of number of
assets (10 versus 2), fuel source (both wind and solar versus
only wind), exposure to different states of India (five versus
two) and direct sales (20% of electricity volumes versus nil).
However, assets under Continuum Levanter are bigger with better
operating history (both in terms of duration and performance).
Fitch also expects Continuum Levanter to deliver better plant
load factors at higher fixed tariffs, and retain cash within the
restricted group, resulting in a stronger financial profile;
these factors counterbalance Neerg's better diversification.

Greenko Investment Company (senior note rating, based on
guarantee from parent: B+; standalone profile is weaker) offers
better diversification than Continuum Levanter in terms of number
of assets (seven versus two), fuel source (both wind and hydro
versus only wind), exposure to different states of India (five
versus two) and direct sales (36% of electricity volumes versus
nil). However, assets under Continuum Levanter are bigger with
much better operating history (both in terms of duration and
performance) and are exposed to stronger state utilities.
Continuum Levanter also has higher fixed tariff and plans to
raise less debt on a per MW basis while retaining cash within the
restricted group, which result in a stronger financial profile.
In Fitch views, these features more than offset Greenko
Investment Company's better diversification and warrant a higher
rating for Continuum Levanter's notes.

KEY ASSUMPTIONS

Fitch's key assumptions within Fitch ratings case for the issuer
include:
- Plant availability factors better than benchmarks assumed in
   wind resource assessment reports
- Plant load factors at about 26% for the 200MW Bothe power
   project and around 25% for the 170MW Ratlam power project
- Plant-wise tariff in accordance with the power purchase
   agreements
- EBITDA margins to decline to 84% in FY21 from 87% in FY18
- Blended receivable days of 4 months in the medium term
- Cash accruals to be retained within the restricted group
- No dividend payouts from the restricted group over next 4-5
   years
- The recovery ratings are based on the liquidation value of
   total assets. Fitch assigns a liquidation value under a
   distressed scenario for the restricted group of about INR16.8
   billion. The liquidation value estimate reflects Fitch's view
   of the value of receivables under a liquidation scenario with
   a 75% advance rate and a 60% advance rate for the fixed
   assets, given no history of default by counterparties (state
   utilities) and the long life of the projects, respectively.
   Fitch then reduces the liquidation value by 10% to account for
   bankruptcy-related administrative claims.
- Fitch generally assumes a fully drawn working capital facility
   of USD35 million, the extent allowed under the intended
   covenants of the proposed US dollar notes, in its recovery
   analyses because working capital debt is tapped when companies
   are under distress. Any proceeds from receivables will be
   applied first to satisfy all obligations under the working
   capital facility with only the excess, being available for the
   US dollar notes. The fixed assets will be applied to the
   proposed USD dollar notes. The waterfall results in a recovery
   of around 50% for the proposed US dollar note holders.
- However, Fitch has rated the senior unsecured bonds 'B+/RR4'
   because, under Fitch Country-Specific Treatment of Recovery
   Ratings criteria, India falls into Group D of creditor
   friendliness, and the instrument ratings of issuers with
   assets in this group are subject to a soft cap at the issuer's
   IDR.

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- EBITDAR net-fixed-charge coverage of 2.5x or more on a
   sustained basis (FY17: 22x). The fixed charge includes the
   cost of forex hedging.
- Improvement in net adjusted leverage, as measured by net-
   adjusted debt/operating EBITDA, to below 3.5x on a sustained
   basis (end-FY17: 5.2x)

Developments That May, Individually or Collectively, Lead to
Negative Rating Action
- Lack of commitment to retain cash accruals within the
   restricted group
- Failure to adequately mitigate foreign-exchange risk.
- EBITDAR net-fixed-charge coverage not meeting Fitch's
   expectation of around 2x on a sustained basis over the medium
   term

LIQUIDITY

The refinancing of the restricted group's project-level debt by
the proposed US dollar notes is likely to improve the group's
liquidity. The notes are likely to have a five-year maturity,
resulting in minimal debt maturities in the medium term.
According to the management, the cash generated from operations
is also expected to be retained within the restricted group.


CONTINUUM ENERGY: Moody's Rates Proposed USD Senior Notes (P)B1
---------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B1 senior
unsecured rating to the proposed 5-year USD senior notes of
Continuum Energy Levanter Pte. Limited.

The outlook on the rating is stable.

The provisional status of the rating will be removed upon
completion of the transaction on satisfactory terms.

Continuum will use the proceeds from the USD notes for the
subscription to the Non-Convertible Debentures (NCDs) issued by
the three restricted companies (the restricted group), which are
wholly-owned by Continuum Wind Energy (India) Pvt. Ltd (CWE
India, unrated) which is turn is wholly owned by Continuum Wind
Energy Limited (Parent, CWE Singapore). The Issuer will also
advance onshore External Commercial Borrowings (ECBs) denominated
in USD to the restricted group. Holders of the USD notes will be
secured by first priority share pledge by the Parent over the
capital stock of the issuer, thereby establishing a linkage
between the credit profile of restricted group and the Issuer.

The proceeds from the NCDs and ECBs will be used to refinance the
existing debt of the restricted subsidiaries.

The restricted companies are: Bothe Windfarm Development Pvt Ltd,
DJ Energy Pvt Ltd and Uttar Urja Projects Pvt Ltd. All three
companies are unrated.

RATINGS RATIONALE

"The (P)B1 rating of the notes is closely linked to the credit
quality of the restricted group, which benefits from its 370MW
fully operational portfolio across two states in India," says
Abhishek Tyagi, a Moody's Vice President and Senior Analyst.

"The (P)B1 rating is also supported by the experienced management
team and credible financial sponsors, which have infused equity
at the parent level, CWE Singapore," Tyagi adds.

"On the other hand, the (P)B1 rating factors in the short
operating track record of most of the group's projects, limited
diversification of restricted group's assets and the aggressive
growth plans of the parent," adds Tyagi.

The (P)B1 ratings is also constrained by weak financial profile
of its offtakers which are state-owned distribution companies.

Moody's expects the restricted group to have high financial
leverage, with FFO interest coverage at around 1.5x and funds
from operations (FFO) to debt at around 3%-6% over the next 12-24
months. These levels are in line with a B1 rating.

The restricted group is also exposed to limited operating risks,
as its long-term equipment warranties for wind turbines, limited
term performance guarantees, and operating and maintenance
contracts as per standard industry practice mitigate the
technology and operational risks of its projects. The full
ownership of operations from development to transmission enables
the company to install system upgrades, monitor operating
performance and take preventive measures. In addition, the
connectivity of the assets to high voltage transmission network
lowers the risk of curtailment for the restricted group.

Further, as the restricted group companies are wholly owned by
CWE India, Moody's believes that there is a close relationship
between the credit profile of the issuer and that of CWE India.
As such, any marked deterioration in CWE India's credit profile
could impact the rating of the senior notes.

However, the terms of the proposed USD notes include restrictions
on the restricted group's leverage and on the upstreaming of
dividends and other types of payments to its parent and
affiliates. These terms help mitigate concerns over potential
material cash leakages to the parent.

In addition, Moody's expects the parent will show a strong
commitment to avoiding a material deterioration in the restricted
group's credit profile, given its importance to the parent.

The rating also takes into account the hedging arrangement
provided by Continuum, which includes a full hedge for the coupon
with no currency risk and a call spread for the principal amount.
This structure protects Continuum against foreign exchange
movements up to a defined level.

The USD notes will be secured by a first priority pledge of
Continuum shares and an escrow account of Continuum. The NCDs and
ECBs in turn will be secured by the moveable and immovable assets
of the restricted group as well as by majority share pledges and
by rights under project documents.

The NCDs and ECBs will benefit from a financial support
arrangement whereby restricted subsidiaries will enter into an
agreement with each of other restricted subsidiaries. Although
not a guarantee, this arrangement obliges restricted subsidiaries
to support debt service.

The stable outlook reflects Moody's expectation of stable cash
flows from long-term Power Purchase Agreements over the next few
years and the absence of construction risk for the portfolio of
assets in the restricted group. These factors should support the
ability of the restricted group to maintain financial metrics
within the tolerance levels of its (P)B1 ratings category.

Upward pressure on the notes' rating is unlikely over the next
12-18 months, based on the company's business profile and
financial strategy. The ratings could be upgraded over time if
the restricted group maintains FFO to debt above 8% on a
sustained basis.

The rating could come under pressure if FFO/debt declines below
3% on a sustained basis for the restricted group. Additionally,
the rating could face downward pressure if there is a material
change in the restricted group's growth plans and financial
strategy, leading to reduced financial flexibility within its
(P)B1 rating.

The principal methodology used in this rating was Power
Generation Projects published in May 2017.

Continuum Energy Levanter Pte. Limited is a special purpose
vehicle (SPV) incorporated in Singapore and is fully owned by CWE
Singapore. Continuum is the issuer for the proposed USD notes.
Continuum will use the proceeds from the USD notes to subscribe
to NCDs and ECBs issued by three restricted companies (the
restricted group), which are wholly-owned by CWE India. The 3
subsidiaries have a combined capacity of 370 MW of wind projects
in India all of which are operational. CWE Singapore, the
ultimate parent, has a consolidated capacity of 404 MW.


SWISSCO HOLDINGS: Disposes Five Offshore Vessels
------------------------------------------------
Seatrade Maritime reports that the judicial managers of Swissco
Holdings have arranged the disposal of five vessels of the OSV
firm for the purpose of repaying debts and reducing asset
liabilities.

Seatrade Maritime relates that Singapore's Swissco has disposed
of five vessels, namely Swissco Venus, Selat Goodman, Selat
Topman, Selat Hope and Swissco Opal.

Based on the aggregate net book value of the five vessels as at
Sept. 30, 2016, of approximately $15.7 million and sale proceeds
of $11.2 million, Swissco is expected to incur a loss on disposal
of around $4.5 million, according to the report.

"The judicial managers are of the view that such disposals will
help to reduce the group's liabilities in view of the net cash
inflow therefrom," Swissco, as cited by Seatrade, said.

According to Seatrade Maritime, the company added that the move
is "a more advantageous realisation of the group's assets than
would be effected by a winding up" and can help with the survival
of the group as a going concern.

Swissco revealed that one of the ships, the 2013-built
accommodation workboat Swissco Venus, had not been under charter
and was maintained at the group's shipyard premises with no crew
or operational systems running, the report says.

The unnamed purchaser of Swissco Venus is in the business of
owning and operating offshore and special purpose vessels, adds
Seatrade Maritime.

The other four vessels -- accommodation workboats Selat Goodman
(1992-built) and Selat Topman (1992-built), and anchor handling
tugs Selat Hope (2003-built) and Swissco Opal (2013-built) -- are
all on bareboat charter to Selat until Dec. 31, 2018, adds
Seatrade.

In April 2017, a Singapore court approved the application made by
Swissco to be placed under judicial management after the debt-
ridden company failed to receive support from its major
creditors, Seatrade Maritime discloses.

Swissco Holdings Limited (SGX:ADP), along with its subsidiaries
-- http://swissco.net/html/index.php-- is a Singapore-based
integrated oil and gas service provider. The Company provides
drilling rigs, accommodation jackups and vessel chartering
services for the oil and gas industry. The Company's segments are
Drilling, which includes drilling rig chartering; Offshore
support vessels (OSV), which includes vessel chartering (such as
sale of out-port-limit services), ship repair and maintenance
services, maritime related services (such as sale of vessels) and
OSV related investment activities; Service assets, which includes
accommodation and service rig chartering, and Others segment,
which includes corporate activities. Its OSV segment owns and
operates a fleet of over 40 offshore support vessels that provide
a range of offshore chartering services for the marine, offshore
oil and gas, and civil construction industries. Its subsidiaries
include Swissco Energy Services Pte Ltd, Swissco Offshore (Pte)
Ltd and Seawell Drilling Pte Ltd.



===========
T A I W A N
===========


JIH SUN: Fitch Affirms 'B' Short-Term Foreign Currency IDR
-----------------------------------------------------------
Fitch Ratings has affirmed the ratings of Jih Sun Financial
Holding Co., Ltd (JSH) and its subsidiaries, Jih Sun Securities
Co., Ltd (JSS) and Jih Sun International Bank (JSIB). The Outlook
on all three entities is Stable.

KEY RATING DRIVERS
IDRS, NATIONAL RATINGS AND VIABILITY RATING

The Issuer Default Ratings (IDR), National Ratings and Viability
Rating reflect a holistic assessment of JSH's credit profile and
that of its two fully owned subsidiaries. Fitch does not believes
the profiles of the three entities can be meaningfully
disentangled due to high integration, consolidated supervision
and limited restriction of capital and liquidity fungibility
within the group.

The affirmation reflects the group's stable credit profile,
largely underpinned by its sustained modest core profitability,
moderate risk taking and low use of leverage. Fitch believes the
group's credit strength will remain constrained by its weak
franchise. The group does not have pricing power in either the
securities or commercial banking business and lacks a competitive
niche. This makes it vulnerable to fluctuations in the operating
environment and capital markets, leading to variable performance
over economic cycles. JSH's return on assets has ranged from
0.5%-1% during 2012-2016.

The Stable Outlook reflects Fitch expectations that the group
will continue to expand selectively with adequate underwriting
prudence. Its balance sheet has only grown modestly at about 3.6%
per year over 2012-2016. Thus, the group is likely to maintain
strong capitalisation with manageable asset quality.

Fitch believes the group's intention to increase its small-to-
medium enterprise exposure and its proprietary trading position
will not alter Fitch assessments of the group's risk appetite,
which Fitch considers as modest relative to peers. For example,
JSIB's loan composition is not overly aggressive, with about 70%
of its loan book being secured. About half of the loan portfolio
consisted of mortgages, which are mostly owner-occupied and have
a loan/value ratio of about 40%. Furthermore, stockholdings
accounted for about 3% of total group assets, with a large part
of its investment portfolio being government bonds and
investment-grade private-sector bonds.

The 'A-(twn)' National Ratings of the three entities correspond
to their IDRs and reflect moderate default risk relative to
domestic issuers in Taiwan.

JSIB's Support Rating of '5' and Support Rating Floor of 'No
Floor' reflect Fitch beliefs that there is low likelihood of
sovereign support due to its small deposit franchise and limited
systemic importance.

SUBORDINATED DEBT

JSIB's non-Basel III-compliant subordinated bond is rated one
notch below its National Long-Term Rating to reflect its
subordinated status and the absence of going-concern loss-
absorption features. JSIB's Taiwanese Basel III Tier 2 (BIIIT2)
capital is rated two notches below its anchor rating - the
National Long-Term Rating. This comprises of zero notching for
non-performance risk and two notches for loss severity. Wider
notching than Fitch's base case of one notch reflects the poor
recovery prospects for Taiwanese BIIIT2 debt at the point of non-
viability or government receivership. Taiwan's authorities would
only move a bank into insolvency administration when it reaches a
very low capital level or a 2% capital adequacy ratio, reducing
the recovery prospects for BIIIT2 debt. The above notching
practices are in accordance with Fitch's criteria on rating bank
regulatory capital and similar securities.

RATING SENSITIVITIES
IDRS, NATIONAL RATINGS AND VIABILITY RATING

The group's IDRs and National Ratings are Viability Rating-driven
and have a Stable Outlook. The ratings have already captured its
weakened securities franchise, as brokerage market share has
dropped to 3.2% in 2016, from 4.1% in 2010. Rating downgrade
pressure is limited unless the group incurs unexpected large
trading losses or loan impairments that significantly weaken its
capital profile. An upgrade is likely if the group can improve
its franchise meaningfully, bringing up its profitability to
sector average while maintaining stable risk appetite.

SUPPORT RATING AND SUPPORT RATING FLOOR

The Support Rating and Support Rating Floor are sensitive to any
change in assumptions around the propensity or ability of
Taiwan's government to provide timely support to JSIB.

SUBORDINATED DEBT

Any rating action on JSIB's National Long-Term Rating could
trigger a similar move on its debt ratings.

The full list of rating actions is:

JSH
Long-Term Foreign-Currency IDR affirmed at 'BB+'; Outlook Stable
Short-Term Foreign-Currency IDR affirmed at 'B'
National Long-Term Rating affirmed at 'A-(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F2(twn)'
Viability Rating affirmed at 'bb+'

JSIB

Long-Term Foreign-Currency IDR affirmed at 'BB+'; Outlook Stable
Short-Term Foreign-Currency IDR affirmed at 'B'
National Long-Term Rating affirmed at 'A-(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F2(twn)'
Viability Rating affirmed at 'bb+'
Subordinated debt (non-Basel III-compliant) rating affirmed at
'BBB+(twn)'
Subordinated debt (Basel III Tier 2 capital) rating affirmed at
'BBB(twn)'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'NF'

JSS
Long-Term Foreign-Currency IDR affirmed at 'BB+'; Stable Outlook
Short-Term Foreign-Currency IDR affirmed at 'B'
National Long-Term Rating affirmed at 'A-(twn)'; Stable Outlook
National Short-Term Rating affirmed at 'F2(twn)'


YUANTA COMMERCIAL: Fitch Affirms BB+ Support Rating Floor
---------------------------------------------------------
Fitch Ratings has affirmed all the ratings of Taiwan-based Yuanta
Financial Holding Co., Ltd. (YFHC) and its subsidiaries,
including Yuanta Securities Co., Ltd. (YS) and Yuanta Commercial
Bank Co., Ltd. (YCB). The Outlook for the three entities is
Stable.

KEY RATING DRIVERS
IDRS, NATIONAL RATINGS AND SENIOR DEBT

The ratings affirmation reflects Yuanta group's strengthening
franchise from several acquisitions - including Ta Chong Bank in
2016 and Tong Yang Securities Inc and New York Life Taiwan in
2014 - which have improved revenue diversity by product and
geography as well as the group's funding profile.

Fitch expects YFHC to slow its expansion in 2017-2018 as it
focuses on consolidating recent acquisitions and organic growth
opportunities that are not capital intensive. The group's earning
structure has shifted, with the securities business and
commercial banking operations each contributing about 50% to
group profits in 2016, compared with a high reliance on
securities earnings in 2014-2015. Fitch expects YFHC's earnings
profile to gradually improve as it benefits from group
integration.

YFHC has maintained stable risk appetite and asset quality. Asset
quality, on a group-consolidated basis, is comparable with the
industry average, with the impaired loans ratio at 1.5% and
adequate impairment coverage at end-2016. In addition, YFHC's
capitalisation is stronger on a group-consolidated basis than
that of its bank-centric peers based on Fitch's assessment,
partly due to the more strict regulatory capital requirement for
securities operations. Fitch expects the group to maintain its
capital position for the next two years, supported by stable
profits and a slowdown in acquisitions. The group's regulatory
capital adequacy ratio indicates a sufficient capital buffer,
although the ratio declined to 129% at end-2016, from 142% at
end-2015, due to the acquisition of Ta Chong Bank.

The Stable Outlook reflects the stability of the group companies'
operating performance while the group works on consolidating its
franchise. YCB's senior unsecured bonds are rated at the same
level as its National Long-Term Rating, reflecting the bonds
relative probability of default within Taiwan's national scale.

VIABILITY RATING

YFHC's Viability Rating reflects its credit profile on a
consolidated basis. The Viability Rating for YCB is aligned with
the group's rating.

SUPPORT RATING AND SUPPORT RATING FLOOR

YCB's Support Rating and Support Rating Floor reflect its
moderate systemic importance and moderate probability of state
support, if needed, based on its aggregate 3% deposit market
share.

RATING SENSITIVITIES
IDRS, NATIONAL RATINGS AND SENIOR DEBT

Negative ratings action could result from a weakened risk
appetite, which could arise from overly aggressive acquisitions
that significantly dilute group capitalisation or from excessive
risk-taking for yield that compromises underwriting standards and
risk controls.

A rating upgrade is less likely in the near-term, as the group
will need to demonstrate its ability to successfully integrate
and synergise its subsidiaries and improve its profitability.

The rating actions are:

Yuanta Financial Holding Co., Ltd.:
Long-Term Foreign-Currency IDR affirmed at 'BBB+'; Outlook Stable
Short-Term Foreign-Currency IDR affirmed at 'F2'
National Long-Term Rating affirmed at 'AA-(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F1+(twn)'
Viability Rating affirmed at 'bbb+'

Yuanta Securities Co., Ltd.:
Long-Term Foreign-Currency IDR affirmed at 'BBB+'; Outlook Stable
Short-Term Foreign-Currency IDR affirmed at 'F2'
National Long-Term Rating affirmed at 'AA-(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F1+(twn)'

Yuanta Commercial Bank Co., Ltd.:
Long-Term Foreign-Currency IDR affirmed at 'BBB+'; Outlook Stable
Short-Term Foreign-Currency IDR affirmed at 'F2'
National Long-Term Rating affirmed at 'AA-(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F1+(twn)'
Viability Rating affirmed at 'bbb+'
Support Rating affirmed at '3'
Support Rating Floor affirmed at 'BB+'
Senior unsecured debt affirmed at 'AA-(twn)'



                             *********

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 2017.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
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without prior written permission of the publishers.
Information contained herein is obtained from sources believed
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