TCRAP_Public/170726.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

            Wednesday, July 26, 2017, Vol. 20, No. 147

                            Headlines


A U S T R A L I A

AQUATIC NO 4: First Creditors' Meeting Set for Aug. 2
BIS INDUSTRIES: Moody's Cuts Rating on US$250MM Sr. Notes to 'C'
BMC CONSTRUCTION: First Creditors' Meeting Set for Aug. 4
CELL FRESH: In Administration; First Meeting Set for July 28
HERRINGBONE PTY: Private Equity-Backed Management Buys Assets

IRONBRIDGE HOLDINGS: First Creditors' Meeting Set for July 31
NATIONAL GROUP: First Creditors' Meeting Set for Aug. 2
RENT BEYOND: First Creditors' Meeting Set for Aug. 2
RESIMAC 2017-2: S&P Assigns Prelim. BB Rating on Class D Notes
SLEAT ROAD: Second Creditors' Meeting Set for Aug. 2


C H I N A

CHINA HONGQIAO: S&P Cuts CCR to B, Still on CreditWatch Negative
CHONGQING IRON: Deadline for Creditor's Rights Report Set Aug. 11
GUANGZHOU R&F: Fitch Puts 'BB' Long-Term IDR on Watch Negative
GUANGZHOU R&F: Planned Asset Buy No Impact on Moody's Ba3 CFR


I N D I A

A. K. AHAMED: CRISIL Assigns B+ Rating to INR12MM Cash Loan
AAKASH DEVELOPERS: Ind-Ra Assigns BB LT Issuer Rating
AKAS MEDICAL: CRISIL Reaffirms B+ Rating on INR7.42MM Loan
ANUP MALLEABLES: CRISIL Reaffirms B+ Rating on INR6MM Cash Loan
ARKA CARBON: CRISIL Lowers Rating on INR100MM Loan to D

AXIS BANK: Moody's Lowers Baseline Credit Assessments to ba1
CREAATIVE POWERTECH: CRISIL Reaffirms B+ Rating on INR26MM Loan
DECCAN CHRONICLE: NCLT Appoints IRP for Insolvency Process
ELECTROSPARK: Ind-Ra Moves Issuer Rating to BB+ Non-Cooperating
GPR INFRA: Ind-Ra Assigns 'BB' LT Issuer Rating; Outlook Stable

HOME FLOORING: CRISIL Reaffirms B+ Rating on INR10MM Loan
IENERGY WIND: Ind-Ra Moves Bank Loan Rating to BB Not Cooperating
INCOM CABLES: Ind-Ra Lowers Issuer Rating to 'D' Not Cooperating
INDIAN OVERSEAS: Moody's Lowers LT Bank Deposit Ratings to Ba3
INNOVENTIVE INDUSTRIES: NCLT Extends Deadline to Submit Plan

JAS EQUIPMENT: CRISIL Lowers Rating on INR5.5MM Cash Loan to B
JDS FOUNDATION: CRISIL Reaffirms B Rating on INR12.25MM LT Loan
K MANIAR: Ind-Ra Assigns 'IND BB' Issuer Rating; Outlook Stable
KHUSHBU ENTERPRISE: CRISIL Assigns B+ Rating to INR1.5MM LT Loan
LEAP LEGAL: Moody's Assigns (P)Ba3 Corporate Family Rating

MULTI FOOD: CRISIL Assigns B+ Rating to INR4.0MM Cash Loan
OM SHIV: CRISIL Assigns 'B' Rating to INR12MM Term Loan
P.D. SHAH: Ind-Ra Assigns BB- LT Issuer Rating, Outlook Stable
PRECISION ELECTRONIC: CRISIL Assigns B+ Rating to INR5.25MM Loan
PURI CONSTRUCTION: CRISIL Cuts Rating on INR88.36MM Loan to B+

SAHIL PACKAGING: CRISIL Lowers Rating on INR8.0MM Loan to D
SARAYA INDUSTRIES: Ind-Ra Puts Issuer Rating to D Non-Cooperating
SIKKIM ORGANICS: CRISIL Lowers Rating on INR12MM Cash Loan to B+
SURAJ PULSES: CRISIL Reaffirms B+ Rating on INR12MM Cash Loan
SWASTIK COAL: CRISIL Lowers Rating on INR252MM Loan to 'D'

VISION FREIGHT: CRISIL Cuts Rating on INR9.5MM Cash Loan to D


J A P A N

SHARP CORP: S&P Raises CCR to B+ on Strong Operating Performance


N E W  Z E A L A N D

TOTAL DEBT: Liquidator Allowed to Recover Fees from Trust Account


S I N G A P O R E

AVATION PLC: Fitch Affirms B+ Long-Term Issuer Default Rating
TRANSPORTATION PARTNERS: Fitch Affirms B- Long-Term IDR


S R I  L A N K A

PEOPLE'S LEASING: Fitch Affirms 'B' LT Issuer Default Rating


                            - - - - -


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


AQUATIC NO 4: First Creditors' Meeting Set for Aug. 2
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Aquatic
No 4 Pty Ltd will be held at the offices of Grant Thornton
Australia Ltd, Level 17, 383 Kent Street, in Sydney, NSW, on Aug.
2, 2017, at 11:00 a.m.

Stephen Dixon -- stephen.dixon@au.gt.com -- and John McInerney --
john.mcinerney@au.gt.com -- of Grant Thornton were appointed as
administrators of Aquatic No 4 on July 21, 2017.


BIS INDUSTRIES: Moody's Cuts Rating on US$250MM Sr. Notes to 'C'
----------------------------------------------------------------
Moody's Investors Service has downgraded the rating on Artsonig
Pty Limited's 5 year US$250 million senior unsecured PIK notes to
C from Caa3. Artsonig is a wholly owned subsidiary of Bis
Industries Group Ltd. The corporate family rating (CFR) of Bis
Industries Group Limited remains unchanged at Caa1. Following
this action, the outlook on Artsonig Pty Limited is stable, while
the outlook on the Bis' CFR remains negative.

RATINGS RATIONALE

On July 20, 2017, as part of its capital restructure, Bis has
announced that Bis, KKR and certain senior lender and PIK
noteholder representatives, have agreed to a debt-to-equity swap
by way of schemes of arrangement that, subject to receipt of
necessary approvals, will result in senior lenders and PIK
noteholders assuming ownership of the Bis operating entities. The
proposed debt-to-equity swap will reduce total debt by around
80%, or AUD1 billion.

Given the agreement was reached by majority of the key
stakeholders, Moody's expects the transaction to have a high
probability of being implemented. If implemented, Moody's expects
the majority of the USD250 million senior unsecured PIK notes
issued under Artsonig to enter the debt-for-equity swap.

"If the transaction proceeds, it will constitute a distressed
debt exchange, which is a default event under Moody's definition,
given Moody's assessment of the resulting high economic loss when
compared to the original payment promise for the senior unsecured
PIK notes," says Shawn Xiong, a Moody's Analyst.

Moody's recognizes that the completion of the transaction will
significantly reduce gross debt on Bis' balance sheet and will
re-assess the company's credit profile post transaction.

The company expects the transaction to be completed in the fourth
quarter of 2017. The transaction is conditional on the necessary
approvals.

Upon the successful completion of the proposed transaction, the
outlook on Bis' CFR could revert to stable if there is sustained
improvement in the company's operational performance, its
earnings profile as well as a more stable operating environment.

Conversely, further downward rating pressure could emerge if a
worse-than-expected macro environment, operating
underperformance, and/or competitive pressure lead to a large
number of Bis' contracts being terminated or not renewed on
similar terms, thus reducing its revenue and cash flow generation
further.

The principal methodology used in this rating was Business and
Consumer Service Industry published in October 2016.


BMC CONSTRUCTION: First Creditors' Meeting Set for Aug. 4
---------------------------------------------------------
A first meeting of the creditors in the proceedings of BMC
Construction Pty Ltd will be held at the offices of McLeod &
Partners, Hermes Building, Level 1, 215 Elizabeth Street, in
Brisbane, Queensland, on Aug. 4, 2017, at 10:00 a.m.

Jonathan Paul Mcleod & Bill Karageozis of McLeod & Partners were
appointed as administrators of BMC Construction on July 25, 2017.


CELL FRESH: In Administration; First Meeting Set for July 28
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Cell Fresh
Pty Ltd will be held at Level 3, 65 York Street, in Sydney, NSW,
on July 28, 2017, at 11:00 a.m.

David Anthony Hurst of HoskingHurst was appointed as
administrator of Cell Fresh on July 18, 2017.


HERRINGBONE PTY: Private Equity-Backed Management Buys Assets
-------------------------------------------------------------
Mathew Dunckley at The Sydney Morning Herald reports that
upmarket menswear brands Rhodes & Beckett and Herringbone will
live on after administrators for the troubled companies sealed a
deal for a private equity-backed management buyout.

The high-profile brands ran into trouble earlier this year and
administrators at Cor Cordis almost immediately closed seven
stores and began a stock clearance as they sought a buyer, the
report says.

SMH relates that under the deal unveiled on July 25, a company
headed by Rhodes & Beckett and Herringbone's current brand
director Michel Boutin and backed by Hong Kong-based private
equity firm AO Capital will take over the company's assets.

As part of the deal eight Rhodes & Beckett concession outlets in
Myer will be closed, the report discloses. The move follows the
closure of TOPSHOP concessions in Myer as part of that chain's
administration process, SMH adds.

According to SMH, Cor Cordis partner Luke Targett said the Myer
deal had been due to expire at the end of July and had been
retained through the administration to give options to potential
buyers.

Mr. Targett said the closure of the stores and the stock
clearance would allow the new owners to make a fresh start, the
report says.

"They can start with a blank canvas," the report quoted Mr.
Targett as saying.

SMH relates that Mr. Targett said AO Capital had some retail
heritage and declined to comment on the structure of the deal.

"The Rhodes & Beckett and Herringbone brands will survive and
jobs have been saved," Mr. Targett said, notes the report.  "We
are really pleased because retail is notorously difficult in
these sort of insolvency situations. We are really happy the
brands will survive."

Mr. Targett said the deal would save about 100 jobs including
casuals, adds SMH.

SMH states that the two brands went under owing about $40 million
to creditors and Mr. Targett declined to comment on either the
value of the deal or likely returns to those owed money.

This was partly due to ongoing negotiations with landlords of the
15 remaining Rhodes & Beckett and Herringbone stand-alone stores
and continuing efforts to clear stock, the report notes.

Bruno A Secatore, Luke C Targett & Daniel P Juratowitch of Cor
Cordis Chartered Accountants were appointed as administrators of
clothing retailers Herringbone Pty Ltd and Rhodes & Beckett on
Feb. 6, 2017.


IRONBRIDGE HOLDINGS: First Creditors' Meeting Set for July 31
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Ironbridge
Holdings Pty Ltd will be held at the Offices of RSM Australia
Partners, 8 St Georges Terrace, in Perth, WA, on July 31, 2017,
at 9:00 a.m.

Gregory Bruce Dudley and Neil Raymond Cribb of RSM Australia
Partners were appointed as administrators of Ironbridge Holdings
on July 21, 2017.


NATIONAL GROUP: First Creditors' Meeting Set for Aug. 2
-------------------------------------------------------
A first meeting of the creditors in the proceedings of National
Group of Companies Pty Ltd will be held at the Conference Room of
Level 4, 16 St Georges Terrace, in Perth, WA, on Aug. 2, 2017, at
10:30 a.m.

David Allan Ingram and Cameron Shaw of Hall Chadwick were
appointed as administrators of National Group on July 21, 2017.


RENT BEYOND: First Creditors' Meeting Set for Aug. 2
----------------------------------------------------
A first meeting of the creditors in the proceedings of Rent
Beyond Pty Ltd will be held at the Conference Room, Plaza Level,
BGC Centre, 28 The Esplanade, in Perth, WA, on Aug. 2, 2017, at
3:00 p.m.

Dino Travaglini and Cliff Rocke of Cor Cordis were appointed as
administrators of Rent Beyond on July 21, 2017.


RESIMAC 2017-2: S&P Assigns Prelim. BB Rating on Class D Notes
--------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to six
classes of prime residential mortgage-backed securities (RMBS) to
be issued by Perpetual Trustee Co. Ltd. as trustee for RESIMAC
Triomphe Trust - RESIMAC Premier Series 2017-2. RESIMAC Triomphe
Trust - RESIMAC Premier Series 2017-2 is a securitization of
prime residential mortgages originated by RESIMAC Ltd.

The preliminary ratings reflect:

-- S&P's view of the credit risk of the underlying collateral
    portfolio, including that this is a closed portfolio, which
    means no further loans will be assigned to the trust after
    the closing date.
-- S&P's view that the credit support is sufficient to withstand
    the stresses it applies. This credit support comprises note
    subordination and lenders' mortgage insurance to 31.8% of the
    portfolio, which covers 100% of the face value of these
    loans, accrued interest, and reasonable costs of enforcement.
-- S&P's expectations that the various mechanisms to support
    liquidity within the transaction, including a liquidity
    facility equal to 0.75% of the outstanding balance of the
    notes, and principal draws, are sufficient under its stress
    assumptions to ensure timely payment of interest.
-- The extraordinary expense reserve of A$150,000, funded by
    RESIMAC Ltd. before closing, available to meet extraordinary
    expenses. The reserve will be topped up via excess spread if
    drawn.
-- The management of interest-rate risk. Interest-rate risk
    between any fixed-rate mortgage loans and the floating-rate
    obligations on the notes are appropriately hedged via
    interest-rate swaps to be provided National Australia Bank
    Ltd. and Westpac Banking Corp.

A copy of S&P Global Ratings' complete report for RESIMAC
Triomphe Trust - RESIMAC Premier Series 2017-2 can be found on
RatingsDirect, S&P Global Ratings' web-based credit analysis
system, at http://www.globalcreditportal.com.

PRELIMINARY RATINGS ASSIGNED

  Class      Rating        Amount (A$ mil.)
  A1         AAA (sf)       50.0
  A2         AAA (sf)      400.0
  AB         AAA (sf)       23.0
  B          AA (sf)        14.0
  C          A (sf)          6.0
  D          BB (sf)         5.0
  E          NR              2.0

  NR--Not rated.


SLEAT ROAD: Second Creditors' Meeting Set for Aug. 2
----------------------------------------------------
A second meeting of creditors in the proceedings of Sleat Road
Investments Pty Ltd has been set for Aug. 2, 2017, at 11:00 a.m.,
at the offices of DCS Advisory, Level 1, 680 Murray Street, in
West Perth, WA.

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 Aug. 1, 2017, at 5:00 p.m.

Shaun William Boyle of DCS Advisory was appointed as
administrator of Sleat Road on June 29, 2017.



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


CHINA HONGQIAO: S&P Cuts CCR to B, Still on CreditWatch Negative
----------------------------------------------------------------
S&P Global Ratings lowered its long-term corporate credit rating
on China Hongqiao Group Ltd. to 'B' from 'B+'. S&P said, "We also
lowered the issue rating on Hongqiao's outstanding senior
unsecured notes to 'B' from 'B+'. In addition, we lowered our
long-term Greater China regional scale ratings on Hongqiao and
the notes to 'cnB+' from 'cnBB-'. All the ratings remain on
CreditWatch with negative implications, where they were placed on
March 24, 2017.

"We downgraded Hongqiao and kept the ratings on CreditWatch with
negative implications to reflect the company's increased
management and governance risks following an unexpected change in
auditor in a crucial period leading up to deadline for the filing
of its financial statements. The downgrade also reflects possible
increasing liquidity risk, if the company fails to file the
financial statements by Aug. 31, 2017."

Hong Kong stock exchange listing rules require the company to
file its audited annual report for 2016 within 90 days after the
closing of its financial year on Dec. 31, 2016. The terms of
Hongqiao's US$700 million syndicated loan also require the
company to provide audited 2016 financial statements within 120
days of the end of its financial year. The lenders of the
syndicated loan granted Hongqiao extensions on the publication
deadline twice, in April and June. The deadline is now pushed to
end August.

The company announced on July 12, 2017, that ShineWing HK will
take over the auditor role from Baker Tilly. This is the second
auditor change following the resignation of Ernst & Young on
April 27, 2017.

Hongqiao said that Baker Tilly is not able to complete the 2016
annual report audit work on schedule due to the latter's existing
commitments of resources and timetables for planned work.
Hongqiao also stated that it will cooperate with ShineWing to
publish its 2016 annual report and to resume the trading of its
shares as soon as possible, after ShineWing HK completes the
client acceptance procedures. At this stage, the timing of the
annual report publication is still uncertain.

S&P said, "In our view, the frequent auditor changes and
prolonged delay in the publication of its annual report further
revealed the company's deficiencies in its internal control. We
also view the delayed response to allegations by short sellers
presents a less-than-favorable perception on the company's
transparency."

Hongqiao could face increasing liquidity risk if the company
can't publish its audited 2016 financial statements by end of
August. The company will need to apply for a further extension of
the waiver if this deadline is not met. While creditors have
already extended the deadline twice, it is not certain that the
company will be granted a further waiver. If the banks instead
ask to accelerate the loan repayment, the company may not have
enough offshore cash on hand.

S&P said, "We aim to resolve the CreditWatch as soon as we have
more clarity on the publication timing of Hongqiao's audited 2016
annual report, the validity of the short-seller reports, and the
impact of the above on Hongqiao's liquidity and overall credit
profile.

"We could lower our ratings on Hongqiao by one or more notches if
the company's liquidity deteriorates substantially or if any of
the allegations in the short-seller reports, including those
related to production costs, prove to be true. We could also
suspend the ratings if no new information is available for a
prolonged period.

"We could affirm the ratings on Hongqiao if the company publishes
audited 2016 annual report with an unqualified auditor's opinion,
resumes trading of its shares, responds to the short-seller
reports with solid evidence, while maintaining adequate liquidity
position."


CHONGQING IRON: Deadline for Creditor's Rights Report Set Aug. 11
-----------------------------------------------------------------
Reuters reports that the administrator of Chongqing Iron & Steel
Co Ltd has announced update on the progress of the company's
reorganization.

The administrator said it has initiated reporting, registration &
investigation of creditor's rights, Reuters relates.

Deadline for reporting creditor's rights is Aug. 11, 2017,
according to Reuters.

Upon review, administrator preliminarily confirmed 233 claims of
creditor's rights with a total amount of RMB4.12 billion, Reuters
discloses.

Chongqing Iron & Steel Company Limited is a company principally
engaged in the manufacture and distribution of iron and steel
products. The Company's main products consist of steel panels,
steel billets, reinforcing steel bars, cold rolled sheets,
sections, wire rods, coated plates and other by-products, among
others. The Company's products are mainly applied in
shipbuilding, heat exchanger, separator, storage machinery,
bridges, mine machinery, engineering machinery, high building,
heavy automobile, motorcycle, security door and steel structure
plant, among others. In addition, it is involved in the
electrical engineering design and installation services and
freight transportation.


GUANGZHOU R&F: Fitch Puts 'BB' Long-Term IDR on Watch Negative
--------------------------------------------------------------
Fitch Ratings has placed Guangzhou R&F Properties Co. Ltd.'s 'BB'
Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDR), senior unsecured rating and ratings of all of its
outstanding notes issued by subsidiaries on Rating Watch Negative
(RWN).

This follows its plan to acquire Dalian Wanda Commercial Property
Co. Ltd.'s (BBB/Negative) hotel assets for CNY20 billion. Fitch
believes the acquisition will push up Guangzhou R&F's total debt
level and keep its leverage, as measured by net debt/adjusted
inventory, near Fitch's 60% threshold. Guangzhou R&F's strong
1H17 contracted sales, which rose 30%, could have helped it
deleverage, but undertaking this acquisition will slow the
deleveraging process. The hotel assets will also be a marginal
drag on the company's EBITDA as Fitch believes the hotel
businesses in Guangzhou R&F's own portfolio and the new portfolio
it is acquiring generate an EBITDA of below 20%. The company's
churn rate, as measured by contracted sales/gross debt is likely
fall below 0.6x and may be sustained below this level, which will
breach Fitch's thresholds and may result in a rating downgrade;
if recurring EBITDA does not increase sufficiently to offset this
weakened credit metric.

KEY RATING DRIVERS

Slower Deleveraging: Fitch forecasts Guangzhou R&F's leverage to
remain close to 60% (2016: 59%) due to the planned acquisition,
after accounting for guarantees to joint ventures and associates,
based on the company's expectation of a hotel asset-book value of
CNY33 billion at end-2017. The acquisition will increase
Guangzhou R&F's adjusted inventory by more than 20%.

Inferior Hotel Segment Margin: The expanded hotel portfolio may
pressure Guangzhou R&F's EBITDA margin to keep within the 20%-23%
range. Guangzhou R&F's EBITDA margin of around 23% in 2016 was
superior to its 18% hotel segment EBITDA margin and Wanda's 2016
annual report estimates an EBITDA margin below 20% for its 77
hotels. In addition, the EBITDA margin trend for Guangzhou R&F's
existing and planned hotels has been falling.

Acquisition Weakens Churn Rate: The acquisition, if fully funded
by debt, is likely to increase Guangzhou R&F's gross debt to
above CNY143 billion based on pro-forma 2016 numbers and keep its
churn rate below 0.6x, even if the company exceeds its contracted
sales target in 2017. Guangzhou R&F's 2016 pre-acquisition churn
rate of 0.5x would have improved above 0.6x following strong
contracted sales growth, which was up by 30% in 1H17 to achieve
53% of the company's CNY73 billion 2017 sales target.

Higher Recurring EBITDA: Guangzhou R&F's post-acquisition hotel
revenue will climb to more than CNY7.0 billion in 2017, from
CNY1.4 billion in 2016. Its hotel EBITDA will reach CNY1.5
billion and, together with rental EBITDA of CNY0.7 billion, see
recurring EBITDA rise to CNY2.2 billion, from around CNY1.0
billion in 2016. Fitch expects the company's recurring
EBITDA/gross interest to improve above 0.3x post acquisition,
from 0.2x in 2016. An improvement in the company's post-
acquisition hotel-business EBITDA margin is possible, as around
40% of the portfolio consists of new hotels with less than three
years of operation. Stronger hotel performance could offset
credit-metric deterioration if interest coverage can improve to
above 0.5x, which would be comparable with that of higher-rated
peers, such as Longfor Properties Co. Ltd. (BBB-/Stable) and
Shimao Property Holdings Limited (BBB-/Stable).

Post-Acquisition Credit Profile: The resolution of the RWN will
depend on whether the transaction is completed, and if it is, how
Guangzhou R&F's business and financial profile evolves in the
following year or two. Possible outcomes are discussed in rating
sensitivities below.

DERIVATION SUMMARY

Guangzhou R&F's business profile is comparable with 'BB+' and
'BBB-' rated peers, but its financial profile is comparable with
'BB-' and 'B+' rated peers. The company's homebuilding scale,
geographical diversification and project profitability is
comparable with that of Shimao, but the latter had a higher churn
rate of 1.0x and much lower leverage of 32% at end-2016. Shimao
also had superior recurring EBITDA/interest coverage due to its
lower debt levels, with both companies generating around CNY2.3
billion in rental and hotel revenue in 2016.

Guangzhou R&F has a superior EBITDA margin than highly leverage
peers, such as Greenland Holding Group Company Limited
(BB/Negative, standalone assessment BB-/Negative), Sunac China
Holdings Limited (BB-/RWN) and China Evergrande Group
(B+/Stable), which all have leverage of close to 60% or higher.
Guangzhou R&F's leverage is also more stable and it has a
stronger business profile, despite its smaller scale, which is
supported by its larger landbank that can last for more than six
years, against around four years for peers. The company has
meaningful pre-acquisition recurring EBITDA/gross interest
coverage of 0.2x against minimal peer recurring EBITDA/gross
interest coverage.

No country-ceiling, parent/subsidiary or operating environment
aspects impact the rating.

KEY ASSUMPTIONS

Fitch's key assumptions within Fitch ratings case for the issuer
include:
- Contracted sales to meet management's 2017 expectation
- Contracted sales by gross floor area to increase by 2%-3% over
   2017-2018
- Average selling price for contracted sales to increase by
   2%-3% for 2017-2018
- EBITDA margin at 26%-27% in 2017-2018
- Slower land bank acquisition in 2017-2018, with a land premium
   of around CNY7 billion-10 billion a year

RATING SENSITIVITIES

Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- If the transaction takes place and after reviewing interim
   results, the ratings may be downgraded if contracted
   sales/total debt remain below 0.6x for a sustained period and
   recurring income/gross interest expenses remains below 0.5x
   for a sustained period
- Net debt/adjusted inventory over 60% for a sustained period

Developments that May, Individually or Collectively, Lead to
Positive Rating Action

- If the transaction takes place and after reviewing interim
   results, the ratings may be affirmed with a Negative Outlook
   if contracted sales/total debt remains below 0.6x over the
   next 12 months but Fitch expects the ratio to be sustained
   above 0.6x thereafter
- If the transaction takes place and after reviewing interim
   results, the ratings may be affirmed with a Stable Outlook if
   contracted sales/total debt is sustained between 0.5x and
   0.6x, but Fitch expects recurring income/gross interest
   expenses to be sustained above 0.5x from 2018
- If transaction does not take place and interim results show
   contracted sales/total debt to be above 0.6x, the ratings may
   be affirmed with a Stable Outlook

LIQUIDITY

Acquisition Does Not Stretch Liquidity: Fitch expects Guangzhou
R&F to be able to meet the payment for the hotel acquisition
through its available cash of CNY25 billion at end-2016, which
Fitch expects to be higher by end-1H17 following strong
contracted sales of CNY38.8 billion in 1H17. The payment terms
for this acquisition, which stretch until January 2018, also give
the company ample time to manage liquidity by balancing between
contracted sales and land acquisition expenditure in 2H17.

FULL LIST OF RATING ACTIONS

Guangzhou R&F Properties Co. Ltd.
- Long-Term Foreign-Currency IDR of 'BB' placed on RWN
- Long-Term Local-Currency IDR of 'BB' placed on RWN
- Senior unsecured rating of 'BB' placed on RWN

Easy Tactic Limited
- USD725 million 5.75% senior unsecured notes due January 2022
   of 'BB' placed on RWN


GUANGZHOU R&F: Planned Asset Buy No Impact on Moody's Ba3 CFR
-------------------------------------------------------------
Moody Investors Service says that Guangzhou R&F Properties Co.,
Ltd.'s (Ba3 negative) proposed acquisition of hotel assets from
Dalian Wanda Commercial Properties Co., Ltd. (DWCP, Baa3
negative), if completed, will slow Guangzhou R&F's pace of debt
deleveraging.

Nevertheless, the proposed transaction will not immediately
affect its Ba3 corporate family rating, or the B1 corporate
family rating of its wholly owned subsidiary, R&F Properties (HK)
Company Limited (R&F HK), or the negative outlook on the ratings.

"The proposed acquisition, if completed, will be credit negative
as it will slow the pace of Guangzhou R&F's deleveraging, given
that it is likely to be partly debt funded. However, Moody's
believes the company will likely control its land investments,
such that its deleveraging trends will continue through 2018,"
says Kaven Tsang, a Moody's Vice President and Senior Credit
Officer.

Guangzhou R&F's negative outlook reflects Moody's concerns over
Guangzhou R&F's high debt leverage, which limits its financial
flexibility. Such risk will continue in the near term.

If the acquisition is successfully completed, Moody's expects
Guangzhou R&F's debt leverage - as measured by revenue to
adjusted debt - will only trend up towards 50%-60% by 2018 from
around 42% at end-2016. Moody's had previously forecasted that
Guangzhou R&F's revenue to adjusted debt can rise to 60%-70% by
end-2018.

"On the other hand, the acquisition will provide Guangzhou R&F
with some business diversification benefits, given that the hotel
business exhibits a somewhat different cycle from property
development," adds Tsang.

Moody's forecasts the company's proportion of non-property
development revenue to total revenue will rise to around 15% in
2018 from 8% in 2016.

Guangzhou R&F's hotel portfolio (operating and under
construction) will increase to around 100 hotels upon completion
of the transaction. Currently, it operates 14 hotels, with
another nine hotels under or pending development as of December
2016.

Guangzhou R&F will need to pay RMB10 billion in cash to DWCP
within three months of the agreement date, and the balance of
around RMB9.9 billion on or before end-January 2018.

Moody's expects that Guangzhou R&F has sufficient liquidity to
support the acquisition. Its cash balance as of June 2017 should
have remained largely stable from RMB46 billion at end-2016,
supported by its strong contracted sales and operating cash flow.
The company recorded a 30% year-on-year growth in contracted
sales during the first half of 2017 to RMB38.8 billion, putting
it well on track to meet its full-year target of RMB73 billion.

Guangzhou R&F Properties Co., Ltd.'s Ba3 corporate family rating
also continues to reflect its sizeable scale and track record of
operating through the cycle, as evidenced by its robust sales
performance over the last 3-4 years. In addition, its good
geographic diversification lowers its exposure to the volatility
in local economies and the risk of regulatory changes by local
governments.

In addition, R&F HK's B1 corporate family rating reflects its
standalone credit strength and a one-notch rating uplift, based
on Moody's assessment of financial and operating support from
Guangzhou R&F in times of need. Its negative outlook further
reflects the negative outlook of Guangzhou R&F.

On July 20, 2017, Guangzhou R&F announced that it had entered
into an agreement with DWCP for the acquisition of a 100%
interest in 76 hotels and a 70% interest in another hotel for a
total consideration of around RMB19.9 billion.

The closing of this transaction is subject to the approval by
Guangzhou R&F's shareholders.

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

Established in 1994 and listed on the Hong Kong Stock Exchange in
2005, Guangzhou R&F Properties Co., Ltd. is a mid-sized developer
in China's residential and commercial property sector. At end-
2016, the company's land bank totaled 38.5 million square meters
across 35 locations: 32 in cities and areas in China, one in
Malaysia and two in Australia. Li Sze Lim and Zhang Li, the
company's co-founders, own 33.52% and 32.02% in equity interests,
respectively.

R&F Properties (HK) Company Limited and its subsidiaries are
principally engaged in the development and sale of properties,
property investments and hotel operations in China. It serves as
an offshore funding vehicle and holding company for some of
Guangzhou R&F Properties Co., Ltd.'s property projects in China
and overseas. Guangzhou R&F fully owns R&F HK.



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


A. K. AHAMED: CRISIL Assigns B+ Rating to INR12MM Cash Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facility of A. K. Ahamed Modern Rice Mill (ARM). The
rating reflects the small scale of operations and large working
capital requirement. These weaknesses are partially offset by the
extensive experience of the partners, and their longstanding
relationship with customers.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit             12       CRISIL B+/Stable

Key Rating Drivers & Detailed Description

Weakness

* Small scale of operations: Estimated revenue of around INR35
crore in fiscal 2017, reflects the small scale of operations,
which constrains profitability.

* Large working capital requirement: Gross current assets were
estimated at 214 days as on March 31, 2017, mainly led by the
large inventory requirement.

Strengths

* Extensive experience of the partners: The two decade-long
experience of the partners in the rice milling industry, and
their established relationship with a wide clientele, will
continue to support the business risk profile.

Outlook: Stable

CRISIL believes ARM will continue to benefit from the extensive
experience of its partners. The outlook may be revised to
'Positive' if significant improvement in capital structure,
revenue, and operating margin, strengthens the financial risk
profile. The outlook may be revised to 'Negative' if intense
competition weakens profitability, or a stretch in the working
capital cycle weakens liquidity.

ARM, established in 1996, processes paddy to produce rice. The
processing facility, at Salem, Tamil Nadu, has a capacity of 5
mtph (metric ton per hour). Daily operations are managed by Mr
Rafeek.

ARM reported net profit of INR0.1 crore on operating income of
INR35.56 crores in fiscal 2016 against net profit of INR0.13
crore on operating income of INR29.69 crores in fiscal 2015.


AAKASH DEVELOPERS: Ind-Ra Assigns BB LT Issuer Rating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Aakash
Developers (AD) a Long-Term Issuer Rating of 'IND BB'. The
Outlook is Stable. The instrument-wise rating action is:

-- INR500 mil. Proposed long-term loan* assigned with
    Provisional IND BB/Stable rating

* The rating is provisional and shall be confirmed upon the
sanction and execution of loan documents for the above facilities
by AD to the satisfaction of Ind-Ra.

KEY RATING DRIVERS

The ratings reflect the nascent stage of AD's upcoming
residential project. AD will commence project construction in
November 2017, with project completion likely by September 2020.

The ratings also reflect the partnership structure of the
organisation.

The ratings factor in AD's high dependence on customer advances
for project completion. Therefore, any delays in receiving
advances could affect project progress.

The ratings, however, are supported by the managing partner's
experience of more than a decade in completing several
residential and commercial projects in and around Mumbai, and the
project's strategic location in Kandivali East, which is in
proximity to all basic amenities such as schools, colleges,
hospitals and markets.

RATING SENSITIVITIES

Negative: Any slowdown in bookings leading to a cash flow
shortfall will be negative for the ratings.

Positive: Sale of substantial number of housing units leading to
strong cash flow visibility will be positive for the ratings.

COMPANY PROFILE

AD will develop a residential project in Kandivali East, Mumbai.
The total built-up area of the project is 1,184,030.15 square
feet.


AKAS MEDICAL: CRISIL Reaffirms B+ Rating on INR7.42MM Loan
----------------------------------------------------------
CRISIL has reaffirmed the ratings on the bank facilities of
Akas Medical (AM)) at 'CRISIL B+/Stable/CRISIL A4'.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee        0.60       CRISIL A4 (Reaffirmed)
   Cash Credit           7.42       CRISIL B+/Stable (Reaffirmed)
   Letter of Credit      1.08       CRISIL A4 (Reaffirmed)
   Long Term Loan        2.82       CRISIL B+/Stable (Reaffirmed)

The rating reaffirmation reflects AM's below-average financial
risk profile because of leveraged capital structure, and modest
scale of operations in the intensely competitive healthcare
equipment industry. These weaknesses are partially offset by
promoters' extensive experience, and the firm's diversified
customer profile.

Key Rating Drivers & Detailed Description

Weakness

* Below-average financial risk profile:
Financial risk profile remains below average owing to high
gearing of 2.59 times estimated as on March 2017. Limited
operating profitability and high dependence on working capital
debt has resulted in modest debt protection metrics; Interest
coverage ratio and Net cash accruals to total debt ratios were
estimated at 1.60 times and 8 per cent respectively in fiscal
2017.

* Modest scale of operations in the intensely competitive
healthcare equipment industry: AM is a modest player in the
highly fragmented medical equipment trading and manufacturing
industry as indicated by its revenues of INR14.5 Crores in fiscal
2017. Majority of the firm's revenues are from trading of medical
equipment like patient monitor, oxy concentrator, infusion pumps,
syringe pumps etc.

Strength

* Extensive experience of the promoters and diversified customer
profile: The promoters of the firm Mr. Arjun Sooraj and Mr. Arun
Krishna are engineers by qualification and have over 15 years of
experience in the medical equipment manufacturing and trading
industry. Further the firm has a wide customer base spread across
India. The customer base of the firm includes individual doctors
in addition to hospitals across India. The extensive customer
base is primarily on account of the well-established dealer
network of the firm with around 80 to 90 dealers spread across
the country.

Outlook: Stable

CRISIL believes AM will continue to benefit over the medium term
from promoters' extensive industry experience. The outlook may be
revised to 'Positive' in case of significant increase in revenue
and profitability, or substantial equity infusion, leading to
improvement in financial risk profile. Conversely, the outlook
may be revised to 'Negative' if financial risk profile declines
on account of reduced cash accrual, or aggressive debt-funded
expansion, or increased working capital requirement.

AM, set up in 2007 in Chennai (Tamil Nadu), manufactures and
trades in medical equipment. It is promoted by Mr. Arjun Sooraj
and Mr. Arun Krishna.

AM's net profit was INR0.3 crores on sales of INR16.1 crores for
2015-16 (refers to financial year, April 1 to March 31), against
net profit of INR0.2 crores on sales of INR14.8 crores for 2014-
15.


ANUP MALLEABLES: CRISIL Reaffirms B+ Rating on INR6MM Cash Loan
---------------------------------------------------------------
CRISIL has been consistently following up with Anup Malleables
Limited (AML) for information through letters and emails, apart
from telephonic communication. CRISIL had, through a director
letter dated January 31, 2017, and a senior director letter dated
February 28, 2017, informed the company of the extant guidelines
and requested for cooperation. However, the issuer remains non-
cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee          3        CRISIL A4 (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

   Cash Credit             6        CRISIL B+/Stable (Issuer Not
                                    Cooperating; Rating
                                     Reaffirmed)

   Term Loan               5.36     CRISIL B+/Stable (Issuer Not
                                    Cooperating; Rating
                                    Reaffirmed)

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale
CRISIL has reaffirmed its ratings on the bank loan facilities of
AML at 'CRISIL B+/Stable/CRISIL A4'.

Inadequate information and lack of management cooperation
restrict CRISIL from taking a forward-looking view on the credit
quality of the firm. AML scores low ('L') on availability of past
information. It scores low ('L') on future information due to
unavailability of management's public-stated stance on
expectations, strategic decisions, and capital expenditure. It
also scores low ('L') on the stability attributes listed in
CRISIL's criteria for surveillance of ratings of non-cooperative
issuers. The available information is consistent with a 'CRISIL
B' category rating, leading to reaffirmation of the ratings.

Outlook: Stable

CRISIL believes AML will continue to benefit from the extensive
industry experience of its promoters and long-standing
relationship with customers. The outlook may be revised to
'Positive' if the financial risk profile improves significantly,
driven most likely by a substantial increase in scale of
operations and profitability. The outlook may be revised to
'Negative' if the financial risk profile weakens because of
significant, debt-funded capital expenditure.

AML was incorporated as a public limited company (closely held)
in fiscal 1985 in Dhanbad, Jharkhand, to continue the business of
the partnership firm, Anup Malleables, which was established in
1972. The company manufactures locomotive parts such as co-co
bogies, flexi coil bogies, and flexi coil bogie bolsters. It is
managed by Mr Ashok Khaitan and Mr Ayush Agarwalla.

In fiscal 2017, profit after tax was INR0.30 crore (Rs 0.35 crore
in fiscal 2016) on net sales of INR29.97 crore (Rs 25.91 crore).


ARKA CARBON: CRISIL Lowers Rating on INR100MM Loan to D
-------------------------------------------------------
CRISIL has been consistently following up with Arka Carbon Fuels
Private Limited for obtaining information through letters and
emails dated Nov 22, 2016, and Jan 25, 2017, among others, apart
from telephonic communication. However, the issuer has remained
non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit             9        CRISIL D (Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL BBB-/Stable')

   Letter of Credit      100        CRISIL D (Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL A3')

   Overdraft               1        CRISIL D (Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL BBB-/Stable')

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

CRISIL has downgraded its ratings on the bank facilities of Arka
carbon to 'CRISIL D/CRISIL D' from 'CRISIL BBB-/Stable/CRISIL A3'
based on information adequacy risk framework.

The downgrade reflects CRISIL's inability in maintaining the
ratings of Arka carbon at 'CRISIL BBB-/Stable/CRISIL A4+' due to
inadequate information and lack of management cooperation,
thereby restricting CRISIL from taking a forward looking view on
the credit quality of the entity. Arka carbon scores high ('H')
on availability of past information on account of availability of
financial statements of the company. It scores low ('L') on
future information due to non-availability of financials. It
scores low ('L') on the stability attributes listed in CRISIL's
criteria for surveillance of ratings of non-cooperative issuers.

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of Arka carbon. The revision in
rating reflects expected weak liquidity of the company based on
feedback from its bankers confirming devolvement in non-fund
based bank lines that have not been regularized for more than 30
days. On the basis of the aforementioned, CRISIL believes the
available information is consistent with a CRISIL D category
rating, leading CRISIL to downgrade the rating to 'CRISIL
D/CRISIL D'.

Analytical Approach

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SCCPL, Arka Carbon Fuels Pvt Ltd (Arka
Carbon), and Shree Ganpatlal Onkarlal Agarwal & Company (Shree
Ganpatlal). This is because the three entities, together referred
to as the Swastik group, are held and managed by the same
promoters and have operational and financial linkages.

SCCPL and Arka Carbon, based in Indore (Madhya Pradesh), trade in
indigenous and imported coal. The group also provides logistic
services through Shree Ganpatlal. Established in 1984 by members
of the Bindal family for trading in indigenous coal, the group is
now focused on imported coal; it both directly imports coal from
international suppliers and relies on merchant importers in
India.


AXIS BANK: Moody's Lowers Baseline Credit Assessments to ba1
------------------------------------------------------------
Moody's Investors Service has affirmed the local currency and
foreign currency bank deposit ratings of Axis Bank Ltd and ICICI
Bank Limited at Baa3/P-3, respectively.

At the same time, Moody's has downgraded the baseline credit
assessments (BCAs) and adjusted BCAs of Axis and ICICI to ba1
from baa3.

Furthermore, Moody's has downgraded the Counterparty Risk
Assessments (CR Assessments) of both Axis and ICICI to
Baa3(cr)/P-3(cr) from Baa2(cr)/P-2(cr).

The foreign currency senior unsecured debt ratings, as well as
the foreign currency senior unsecured medium-term note (MTN)
program ratings for ICICI's branches, Axis Bank Limited, DIFC
Branch and Axis Bank Limited, Hong Kong Branch have been affirmed
at Baa3 and (P)Baa3 respectively.

The outlooks on all ratings, where applicable, have been revised
to stable from positive.

RATINGS RATIONALE

DOWNGRADE OF BCA DRIVEN BY AN INCREASE IN NON-PERFORMING LOANS
(NPL)

The downgrade of ICICI and Axis' BCA is primarily driven by an
increase in NPLs over the last year. ICICI's reported gross non-
performing loan (NPL) ratio increased to 7.9% at end March 2017
from 5.2% at end-March 2016, while that of Axis increased to 5.0%
from 1.7% over the same period.

Although both banks have had relatively high exposures to large
corporates with weak credit metrics, the recent increase in NPLs
has exceeded Moody's expectations. In early 2016, both banks
publicly disclosed a list of loan accounts with weak credit
metrics, but that were not yet classified as NPLs. Although this
disclosure signaled a deterioration in asset quality, the
slippage from this list to NPLs was higher than expected, in
addition to meaningful slippages from outside these exposures.

Moody's expects the pace of NPL formation to decline materially
from the very high levels seen in the year ending March 2017, but
to remain elevated. Both banks remain exposed to weak corporates
that have not yet been classified as NPLs, thus representing a
potential source of asset quality stress.

Moody's assessment of ICICI's asset quality also factors in the
decline in low loan loss coverage ratio to 40% at end-March 2017
from 51% in the year ending March 2016 and 59% in the year ending
March 2015.

At the same time, the banks' BCAs factor in their strong core
profitability, with pre-provision income (PPI)/average total
assets at 3.3% and 3.0% for ICICI and Axis, respectively, in the
year ending March 2017. This high level of profitability, in part
driven by their strong retail franchises, provides these banks
with the ability to absorb a high level of credit costs and
should allow them to gradually build up their loan loss buffers
over the next two years.

ICICI's BCA also benefits from its very strong capital levels,
with a reported CET1 ratio of 13.7% at end-March 2017. In
addition, the bank has significant unrealized gains on its 55%
stake in ICICI Prudential Life Insurance and its 63% in ICICI
Lombard General Insurance. Although Moody's expects the bank will
retain its majority stakes in these strategic subsidiaries, the
shareholdings provide a potential source of capital should there
be a scenario of acute solvency stress.

SUPPORTED RATINGS AFFIRMED AS THEY BENEFIT FROM ONE NOTCH OF
SYSTEMIC SUPPORT

ICICI and Axis had a 4.5% and 3.8% share of system deposits at
end-March 2017 respectively. At this size, and given the
corresponding systemic importance, Moody's expects a 'high' level
of support from the Indian government (Baa3 positive) for these
banks in case of need. The 'high' level of support also
differentiates private sector banks from rated Indian public
sector banks, which are in the 'very high' support bucket. The
differentiation reflects the government's shareholding in public
sector banks and the systemic importance of the entire public
sector banks sector, which represents over 70% of banking system
assets.

The support assumptions for Axis and ICICI lead to a one-notch
uplift from their BCAs, placing the supported rating at Baa3. At
the same time, the change in outlook to stable from positive
reflects Moody's expectation that the supported ratings will no
longer be upgraded if India's sovereign rating is upgraded.

ICICI BANK LIMITED

WHAT COULD CHANGE THE RATINGS -- UP

ICICI's deposit ratings could be upgraded if both the bank's BCA
and the Indian sovereign rating are upgraded.

WHAT COULD CHANGE THE RATINGS -- DOWN

Downward pressure on ICICI's BCA could develop if: (1) its NPL
ratio deteriorates significantly from the current level; or (2) a
decline in earnings leads to a significant decrease in internal
capital generation.

The deposit ratings could be downgraded if India's sovereign
rating is downgraded

AXIS BANK LTD

WHAT COULD CHANGE THE RATINGS -- UP

AXIS's deposit ratings could be upgraded if both the bank's BCA
and the Indian sovereign rating are upgraded.

WHAT COULD CHANGE THE RATINGS -- DOWN

Downward pressure on Axis's BCA could develop if: (1) its NPL
ratio deteriorates significantly from current levels; (2) a
decline in earnings leads to a significant decrease in internal
capital generation; or (iii) there is material weakening of its
capital from current levels.

The deposit ratings could be downgraded if India's sovereign
rating is downgraded

BACKGROUND

Axis Bank Ltd is headquartered in Mumbai. As of March 2017, Axis
reported standalone assets of INR6,014 billion (approximately
USD92.8 billion).

ICICI Bank Limited is headquartered in Mumbai. As of March 2017,
ICICI reported standalone assets of INR7,717 billion
(approximately USD119.1 billion).

The principal methodology used in these ratings was Banks
published in January 2016.

The full list of ratings for Axis Bank Ltd is:

   Long-term local currency deposit rating affirmed at Baa3;
   outlook revised to Stable from Positive

   Short-term local currency deposit rating affirmed at P-3

   Long-term foreign currency deposit rating affirmed at Baa3;
   outlook revised to Stable from Positive

   Short-term foreign currency deposit rating affirmed at P-3

   BCA and Adjusted BCA downgraded to ba1 from baa3

   Counterparty Risk Assessment downgraded to Baa3(cr) / P-3(cr)
   from Baa2(cr) / P-2(cr)

   Outlook for the bank has been revised to stable from positive.

The full list of ratings for Axis Bank Limited, DIFC Branch is:

   Foreign currency senior unsecured debt rating affirmed at
   Baa3; outlook revised to Stable from Positive

   Foreign currency senior unsecured MTN program rating affirmed
   at (P)Baa3

   Foreign currency subordinated MTN program rating downgraded to
   (P)Ba2 from (P)Ba1

   Foreign currency junior subordinated MTN program rating
   downgraded to (P)Ba3 from (P)Ba2

   Foreign currency other short term rating affirmed at (P)P-3

   Counterparty Risk Assessment downgraded to Baa3(cr)/P-3(cr)
   from Baa2(cr) / P-2(cr)

   Outlook for the bank has been revised to stable from positive.

The full list of ratings for Axis Bank Limited, Hong Kong Branch
is:

   Foreign currency senior unsecured debt rating affirmed at
   Baa3; outlook revised to Stable from Positive

   Foreign currency senior unsecured MTN program rating affirmed
   at (P)Baa3

   Foreign currency subordinated MTN program rating downgraded to
   (P)Ba2 from (P)Ba1

   Foreign currency junior subordinated MTN program rating
   downgraded to (P)Ba3 from (P)Ba2

   Foreign currency other short term rating affirmed at (P)P-3

   Counterparty Risk Assessment downgraded to Baa3(cr)/P-3(cr)
   from Baa2(cr) / P-2(cr)

   Outlook for the bank has been revised to stable from positive.

The full list of ratings for Axis Bank Ltd, Singapore Branch is:

   Foreign currency senior unsecured MTN program rating affirmed
   at (P)Baa3

   Foreign currency subordinated MTN program rating downgraded to
   (P)Ba2 from (P)Ba1

   Foreign currency junior subordinated MTN program rating
   downgraded to (P)Ba3 from (P)Ba2

   Counterparty Risk Assessment downgraded to Baa3(cr)/P-3(cr)
   from Baa2(cr) / P-2(cr)

   Outlook for the bank has been revised to stable from positive.

The full list of ratings for ICICI Bank Limited is:

   Long-term local currency deposit rating affirmed at Baa3;
   outlook revised to Stable from Positive

   Short-term local currency deposit rating affirmed at P-3

   Long-term foreign currency deposit rating affirmed at Baa3;
   outlook revised to Stable from Positive

   Short-term foreign currency deposit rating of P-3

   Foreign currency senior unsecured MTN program rating affirmed
   at (P)Baa3

   Foreign currency subordinated MTN program rating downgraded
   to (P)Ba2 from (P)Ba1. This program rating will be withdrawn
   as the program has been terminated.

   Foreign currency junior subordinated MTN program rating
   downgraded to (P)Ba3 from (P)Ba2. This program rating will
   be withdrawn as the program has been terminated.

   BCA and Adjusted BCA downgraded to ba1 from baa3

   Counterparty Risk Assessment downgraded to Baa3(cr)/P-3(cr)
   from Baa2(cr) / P-2(cr)

   Outlook for the bank has been revised to stable from positive.

The full list of ratings for ICICI BANK LIMITED, NEW YORK BRANCH
is:

   Long-term local currency senior unsecured debt rating affirmed
   at Baa3; outlook revised to Stable from Positive

   Local currency senior unsecured MTN program rating affirmed at
   (P)Baa3

   Local currency subordinated MTN program rating downgraded to
   (P)Ba2 from (P)Ba1. This program rating will be withdrawn as
   the program has been terminated.

   Local currency junior subordinated MTN program rating
   downgraded to (P)Ba3 from (P)Ba2. This program rating will
   be withdrawn as the program has been terminated.

   Counterparty Risk Assessment downgraded to Baa3(cr) / P-3(cr)
   from Baa2(cr) / P-2(cr)

   Outlook for the bank has been revised to stable from positive.

The full list of ratings for ICICI Bank Limited, Bahrain Branch
is:

   Long-term foreign currency senior unsecured debt rating
   affirmed at Baa3; outlook revised to Stable from Positive

   Foreign currency senior unsecured MTN program rating affirmed
   at (P)Baa3

   Foreign currency subordinated MTN program rating downgraded to
   (P)Ba2 from (P)Ba1. This program rating will be withdrawn as
   the program has been terminated.

   Foreign currency junior subordinated MTN program rating
   downgraded to (P)Ba3 from (P)Ba2. This program rating will be
   withdrawn as the program has been terminated.

   Counterparty Risk Assessment downgraded to Baa3(cr) / P-3(cr)
   from Baa2(cr) / P-2(cr)

   Outlook for the bank has been revised to stable from positive.

The full list of ratings for ICICI Bank Limited, Dubai Branch is:

   Long-term foreign currency senior unsecured debt rating
   affirmed at Baa3; outlook revised to Stable from Positive

   Foreign currency senior unsecured MTN program rating affirmed
   at (P)Baa3

   Foreign currency subordinated MTN program rating downgraded to
   (P)Ba2 from (P)Ba1. This program rating will be withdrawn as
   the program has been terminated.

   Foreign currency junior subordinated MTN program rating
   downgraded to (P)Ba3 from (P)Ba2. This program rating will be
   withdrawn as the program has been terminated.

   Counterparty Risk Assessment downgraded to Baa3(cr) / P-3(cr)
   from Baa2(cr) / P-2(cr)

   Outlook for the bank has been revised to stable from positive.

The full list of ratings for ICICI Bank Limited, Hong Kong Branch
is:

   Long-term local currency deposit note/CD program rating
   affirmed at (P)Baa3

   Short-term local currency deposit note/CD program rating
   affirmed at (P)P-3

   Long-term foreign currency senior unsecured debt rating
   affirmed at Baa3; outlook revised to Stable from Positive

   Foreign currency senior unsecured MTN program rating affirmed
   at (P)Baa3

   Foreign currency subordinated MTN program rating downgraded to
   (P)Ba2 from (P)Ba1. This program rating will be withdrawn as
   the program has been terminated.

   Foreign currency junior subordinated MTN program rating
   downgraded to (P)Ba3 from (P)Ba2. This program rating will be
   withdrawn as the program has been terminated.

   Counterparty Risk Assessment downgraded to Baa3(cr) / P-3(cr)
   from Baa2(cr) / P-2(cr)

   Outlook for the bank has been revised to stable from positive.

The full list of ratings for ICICI Bank Ltd, Singapore Branch is:

   Long-term foreign currency senior unsecured debt rating
   affirmed at Baa3; outlook revised to Stable from Positive

   Foreign currency senior unsecured MTN program rating affirmed
   at (P)Baa3

   Foreign currency subordinated MTN program rating downgraded to
   (P)Ba2 from (P)Ba1. This program rating will be withdrawn as
   the program has been terminated.

   Counterparty Risk Assessment downgraded to Baa3(cr) / P-3(cr)
   from Baa2(cr) / P-2(cr)

   Outlook for the bank has been revised to stable from positive.


CREAATIVE POWERTECH: CRISIL Reaffirms B+ Rating on INR26MM Loan
---------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long-
term bank facilities of Creaative Powertech Private Limited.

                       Amount
   Facilities         (INR Mln)    Ratings
   ----------         ---------    -------
   Cash Credit            2        CRISIL B+/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility     26       CRISIL B+/Stable (Reaffirmed)

The rating continues to reflect the company's modest scale of
operations, large working capital requirement, expected
deterioration in capital structure because of large, debt-funded
capacity expansion project, and susceptibility to successful
completion of, and timely ramp-up in sales from, the proposed
project. These weaknesses are partially offset by the extensive
experience of its promoters in the electrical components and
structures manufacturing business and established customer base.

Analytical Approach

For arriving at the rating, estimated unsecured loans of INR1.17
crore (as on March 31, 2017) from promoters have been treated as
neither debt nor equity as these will be retained in the business
over the medium term.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations: With revenue of INR5.2 crore in
fiscal 2017 due to limited capacities, scale remains small.

* Weak financial risk profile: Networth was modest at INR1.7
crore and gearing high at 2.21 times, as on March 31, 2017. Also,
debt protection metrics were average, with interest coverage and
net cash accrual to total debt ratios of 1.8 times and 0.09 time,
respectively, for fiscal 2017.

* Exposure to risks associated with implementation of proposed
capital expenditure (capex): Estimated capex of INR26 crore will
be funded in a debt-equity ratio of 3:1. The company remains
exposed to risks related to timely completion of capex within
budgeted cost, and subsequent ramp up of operations.

Strengths

* Extensive experience of promoters: Presence of about two
decades has enabled the promoters to gain sound understanding of
market dynamics and establish strong relationship with customers
and suppliers.

* Reputed customer profile: Clientele includes reputed names such
as Crompton Greaves Ltd, Siemens Ltd, and Bharat Heavy
Electricals Ltd.

Outlook: Stable

CRISIL believes CPPL will continue to benefit over the medium
term from the extensive experience of its promoters. The outlook
may be revised to 'Positive' if the company accrues expected
benefits in terms of revenue and cash accrual from proposed
capacity expansion project. The outlook may be revised to
'Negative' if slower-than-expected scale up of operations, low
cash accrual, or significantly stretched working capital cycle
further weakens financial risk profile, particularly liquidity.

Nashik-based CPPL was incorporated on May 28, 2008, and is
promoted by Mr. Lalit Palwe, Mr. Chhabu Dagadu Nagare, and Mr.
Bhagwat Dhudale. The company manufactures isolators, fabricated
structures, and epoxy-cast moulded components used in the
switchgear industry. CPPL is undertaking capex programme to begin
manufacturing new products (breaker assemblies, radiators, and
other electric products) and consolidate operations.

Profit after tax (PAT) was INR0.22 crore on net sales of INR5.2
crore in fiscal 2017, against a PAT of INR0.14 crore on net sales
of INR7.02 crore in fiscal 2016.


DECCAN CHRONICLE: NCLT Appoints IRP for Insolvency Process
----------------------------------------------------------
The Economic Times reports that the Hyderabad bench of the
National Company Law Tribunal (NCLT) on July 19 appointed an
interim resolution professional to initiate insolvency process
against the ailing media house Deccan Chronicle Holdings in a
petition filed by one of its lenders Canara Bank.

According to the report, Canara Bank had filed the insolvency
petition before NCLT claiming that Deccan Chronicle Holdings,
which publishes dailies Deccan Chronicle, Financial Chronicle and
Andhra Bhoomi, had defaulted over INR723 crore.

ET relates that the NCLT bench, which admitted the petition of
Canara Bank filed under Insolvency and Bankruptcy Code (IBC)
2016, heard the arguments of the media house and its lender and
pronounced its orders on July 19.

The bench has appointed the interim resolution professional to
manage day-to-day affairs at Deccan Chronicle and convene
meetings of all creditors to find resolution to revive the media
house's operations within 30 days, ET says.

The creditors can either continue with the same resolution
professional even after 30 days or appoint a permanent resolution
professional, the Canara Bank's council Dishit Bhattacharjee told
ET.

ET relates that the bench also ordered a moratorium of 180 days
wherein no creditors can take any legal action against the media
house with all the ongoing cases stayed. The creditors were
directed to make all their claims before the resolution
professional appointed by the bench, he said.

The resolution professional will be required to report to the
bench the outcome of insolvency initiatives after 180 days, the
report notes.

A senior executive of Canara Bank, who did not want to be
identified, said the lender was considering a proposal to avail
the services of one of the big four accounting firms in the
insolvency process, adds ET.

India-based Deccan Chronicle Holdings Limited engages in the
printing and publishing of newspapers and periodicals.  The
company publishes Deccan Chronicle, an English daily; Financial
Chronicle, a financial daily; and Andhra Bhoomi, a regional
daily. It also owns franchise rights for the Hyderabad team of
the Indian Premier League.

As reported in the Troubled Company Reporter-Asia Pacific on
July 7, 2017, The Economic Times said in a fresh round of trouble
for the beleaguered media group Deccan Chronicle Holdings
Limited, the Hyderabad bench of National Company Law Tribunal
(NCLT) on July 5 accepted a plea by the Canara Bank, seeking
initiation of insolvency resolution process and has asked the
bank to appoint an interim resolution professional (IRP).

Sources in the bank said that they are in talks with the big four
accounting firms -- Pricewaterhouse Coopers, Ernst & Young,
Deloitte and KPMG -- to be appointed as an IRP, ET related.


ELECTROSPARK: Ind-Ra Moves Issuer Rating to BB+ Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Electrospark's
(ESRK) 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:

-- INR50 mil. Fund-based facilities migrated to non-cooperating
    category with IND BB+(ISSUER NOT COOPERATING)/IND A4+(ISSUER
    NOT COOPERATING) rating; and

-- INR13.17 mil. Term loan due on December 2017 migrated to non-
    cooperating category with IND BB+(ISSUER NOT COOPERATING)
    rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on 9
May 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 1995 at Manesar, Haryana, ESRK is one of India's
leading manufacturers of display fixtures with an annual
installed capacity of 1.20 million units. The company sells its
products under the brand name, Retailware.


GPR INFRA: Ind-Ra Assigns 'BB' LT Issuer Rating; Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned GPR INFRA (GPR)
a Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The
instrument-wise rating actions are:

-- INR90 mil. Fund-based working capital limit assigned with
    IND BB/Stable/IND A4+ rating; and
-- INR300 mil. Non-fund-based working capital limit assigned
    with IND A4+ rating.

KEY RATING DRIVERS

The ratings reflect GPR's moderate credit profile and limited
operational track record as FY16 was the first full year of
operations. As per provisional financials for FY17, revenue grew
to INR482.7 million (FY16: INR369.3 million) on account of an
increase in orders and timely order execution. Consequently,
EBITDA margins improved to 13.9% in FY17P (11.5%), net financial
leverage (Ind-Ra adjusted net debt/operating EBITDAR) to 1.8x
(FY16: 2.3x) and EBITDA interest coverage (operating EBITDA/gross
interest expense) to 3x (1.9x).

The ratings also factor in the partnership structure of the
organisation.

However, the ratings are supported by GPR's comfortable liquidity
position and healthy order book providing revenue visibility in
the medium term. The company's average peak use of fund-based
limits during the 12 months ended June 2017 was around 30%. It
had an order book of INR2,155.4 million (4.4x of FY17 revenue) as
of April 2017, scheduled to be executed by March 2019.

The ratings also benefit from the partners' more than two decades
of experience in executing civil contracting works.

RATING SENSITIVITIES

Negative: A decline in the revenue and/or EBITDA margins leading
to a sustained deterioration in the credit metrics and liquidity
could lead to a negative rating action.

Positive: A substantial improvement in the revenue while
maintaining the EBITDA margins and credit metrics could lead to a
positive rating action.

COMPANY PROFILE

Established in December 2013, GPR is an engineering, procurement
and construction firm.


HOME FLOORING: CRISIL Reaffirms B+ Rating on INR10MM Loan
---------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable/CRISIL A4' ratings on
the bank facilities of Home Flooring And Decor Private Limited.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bill Purchase         14.75      CRISIL A4 (Reaffirmed)

   Export Packing
   Credit                10.00      CRISIL B+/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility     0.25      CRISIL B+/Stable (Reaffirmed)

The ratings reaffirmation reflects CRISIL's expectation of a
stable business and financial risk profile, in the medium term.
Turnover grew by 16% year-on-year to INR121 crore estimated in
fiscal 2017, led by higher domestic sales and recovery in
exports. Turnover is expected to grow at a moderate pace of 5-10%
over the medium term. Operating margin, estimated around 2.9% in
fiscal 2017, is likely to remain constrained by the intense
competition. Gross current assets (GCAs) were estimated around
400 days as on March 31, 2017, and may continue to be high, in
line with the past. Financial risk profile is weak with total
outside liabilities to adjusted networth (TOL/ANW) ratio of
around 3.0 times estimated as on March 31, 2017 and moderate
interest coverage ratio of 1.7 times in fiscal 2017. With no
major capital expenditure, liquidity remains adequate, backed by
sufficient cash accrual against no major debt repayment, despite
the high bank limit utilisation.

Key Rating Drivers & Detailed Description

Weakness
* Modest scale of operations: Intense competition in the home
furnishings industry keeps the scale of operations modest, as
reflected in estimated revenue and operating margin of INR121
crore and around 3%, respectively, in fiscal 2017. Operations
remain highly working capital intensive, marked by gross current
assets of around 400 days, owing to raw material inventory, long
processing time and extended credit offered to customers.

* Below-average financial risk profile: Financial risk profile
was weak, marked by the high TOL/ANW ratio of around 3 times
estimated as on March 31, 2017, and subdued interest coverage
ratio of 1.7 times estimated for fiscal 2017, owing to muted
profitability and large working capital requirement.

Strengths
* Extensive experience of the promoters: The four decade-long
experience of the promoters, in the home furnishing industry, has
helped the company build relationships with customers in the
domestic and export markets.

Outlook: Stable

CRISIL believes HFDPL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if an improvement in operating margin and working
capital management, strengthens the capital structure and debt
protection metrics. The outlook may be revised to 'Negative' if
financial risk profile weakens due to a decline in profitability,
stretch in the working capital cycle, or any major debt-funded
capital expenditure.

HFDPL was promoted in 1995, by Mr Mohd Rizwan Ansari and Mr Meraj
Ahamad as Sheikh Bhullan Carpets Pvt Ltd, and got its current
name in 2015. The company manufactures and exports handmade rugs,
carpets, and home furnishing products, made of wool, cotton, and
leather. The manufacturing facility is in Bhadoi, Uttar Pradesh.

Profit after tax of INR0.24 crore was reported on operating
income of INR104 crore for fiscal 2016, vis-a-vis INR1.8 crore
and INR102 crore, respectively, for fiscal 2015. The company has
reported an estimated operating income of INR121 crore in fiscal
2017.


IENERGY WIND: Ind-Ra Moves Bank Loan Rating to BB Not Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated iEnergy Wind
Farms (Theni) Private Limited's bank loan ratings 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 ratings
will now appear as 'IND BB(ISSUER NOT COOPERATING)' on the
agency's website. The instrument-wise rating actions are as
follows:

-- INR680 mil. Senior project bank loans migrated to non-
    cooperating category with IND BB(ISSUER NOT COOPERATING)
    rating; and
-- INR25 mil. Working capital loans migrated to non-cooperating
    category with IND BB(ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 26, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

iEnergy Wind Farms (Theni)  is sponsored by Indian Energy Ltd.
through intermediate holding companies. It has been operating a
16.5MW wind farm in Theni, Tamil Nadu, since August 2010.


INCOM CABLES: Ind-Ra Lowers Issuer Rating to 'D' Not Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Incom Cables
Private Limited's (INCOM) Long-Term Issuer Rating to 'IND D' from
'IND BB+'. The ratings have also been migrated to the non-
cooperating category. The issuer did not participate in the
surveillance exercise despite continuous requests and follow-ups
by the agency. Thus, the rating is based on the best available
information and feedback from a banker. The rating will now
appear as 'IND D(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating actions are:

-- INR425 mil. Fund-based limit (long- and  short term)
    downgraded and migrated to non-cooperating category with IND
    D(ISSUER NOT COOPERATING) rating;
-- INR425 mil. Non-fund-based limit (short-term) downgraded and
    migrated to non-cooperating category with IND D(ISSUER NOT
    COOPERATING) rating; and
-- INR60.6 mil. Long-term loans (long-term) due on July 2019
    downgraded and migrated to non-cooperating category with IND
    D(ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on
best available information

KEY RATING DRIVERS

The downgrade reflects INCOM's defaults on debt obligations,
continuous overutilisation of fund-based limits during the 12
months ended March 2017, as well as devolvement in non-fund-based
limits. The details of the devolvement are not available.

RATING SENSITIVITIES

Positive: Timely debt servicing, satisfactory track record and
utilisation of working capital facilities within the sanctioned
limits for at least three consecutive months could result in an
upgrade.

COMPANY PROFILE

Incorporated in 1979, INCOM manufactures telecommunication,
signalling and power cables, and sells them under the brand name
of INCOM. The product mix includes different types of electric
wires, power cables, control cables, low tension cables, railway
signalling cables, railway quad cables and telephone cables.
INCOM has a manufacturing unit in Sikandarabad, Uttar Pradesh.
INCOM is an ISO 9001:2008 certified company and is approved by
the Research Design and Standards Organization as a Part 1
supplier of cables to Indian Railways. The company also has
regulatory approvals from various state electricity boards.


INDIAN OVERSEAS: Moody's Lowers LT Bank Deposit Ratings to Ba3
--------------------------------------------------------------
Moody's Investors Service has affirmed the local and foreign
currency bank deposit ratings of seven Indian public sector banks
(PSBs) at Baa3/Prime-3. The affected banks are: (1) Bank of
Baroda (BOB), (2) Bank of India (BOI), (3) Canara Bank (Canara),
(4) Oriental Bank of Commerce (OBC), (5) Punjab National Bank
(PNB), (6) Syndicate Bank (Syndicate) and (7) Union Bank of India
(Union Bank). The counterparty risk assessment (CRA) of these
banks affirmed at Baa3(cr)/P-3(cr).

Moody's also downgraded the long term local and foreign currency
bank deposit ratings of Indian Overseas Bank (IOB) and Central
Bank of India (CBI) to Ba3 from Ba1. In addition, Moody's
downgraded IOB and Indian Overseas Bank, Hong Kong Branch's
senior unsecured medium-term note (MTN) program rating to (P)Ba3
from (P)Ba1 and IOB's Hong Kong branch's senior unsecured debt
rating to Ba3 from Ba1. The long term CRA of these banks has also
been downgraded to Ba2(cr) from Ba1(cr).

Moody's also downgraded the standalone credit profile or the
baseline credit assessment (BCA) of Syndicate to ba3 from ba2,
and as a result, downgraded the subordinated MTN and junior
subordinated MTN program ratings of the bank to (P)Ba3 and (P)B1
from (P)Ba2 and (P)Ba3, respectively.

Moody's changed the outlook to stable from positive for BOB and
its London branch, Canara and its London branch, PNB, and
Syndicate and its London branch, changed the outlook to negative
from positive for BOI and its London branch and Jersey branch,
OBC, and Union Bank and its Hong Kong branch, and changed the
outlook to stable from negative for IOB and its Hong Kong branch.
Outlook for CBI was maintained at stable.

The ratings of State Bank of India (SBI, Baa3 positive, ba1) and
IDBI Bank Ltd (IDBI, Ba2 ratings under review, caa1) are not
affected by this rating action.

RATINGS RATIONALE

MODERATION IN THE LEVEL OF GOVERNMENT SUPPORT FACTORED INTO
BANKS' RATINGS

Moody's uses the joint default analysis (JDA) model to determine
government support for banks. Under JDA, Moody's places each bank
in a support bucket, which can be "very high", "high",
"moderate", or "low". As a function of a government's sovereign
credit rating and a bank's designated support bucket, JDA
provides a range of potential notches of support.

Until this rating action, Moody's support assumptions were
generally at the maximum of the "very high" support bucket range.
With this rating action, Moody's has repositioned the support
assumption towards the mid-point of the "very high" support
bucket range. This means that typically the maximum rating uplift
above the BCA is three notches.

Indian PSBs have experienced significant asset quality problems
and capital shortages over the last three years. In 2015, the
government announced its "Indradhanush" plan to address its own
estimate of INR 1,800 billion shortfall in capital that PSBs
would need between 2015 to 2019 to meet Basel III requirements.
Under this plan, the government would allocate INR700billion for
capital injections to public sector banks over the financial
years ending in March 2016 to March 2019, with the expectation
that banks could access the equity capital market for additional
capital.

Despite receiving INR 500 billion in capital injections under the
Indradhanush plan, PSBs remain undercapitalized and burdened by
bad debts. The Indradhanush plan will only provide INR200bn of
additional capital in the two financial years up to March 2019,
which falls short of the amount still required for banks to
address solvency challenges and recapitalize themselves. The
government has not increased its planned capital injections,
although most public sector banks have not been able to raise the
required capital from the equity capital markets.

Other policies seem to indicate a gradual shift in approach. The
introduction of the Financial Resolution and Deposit Insurance
Bill, 2017, indicates the government's preference to introduce
more market discipline in the resolution of financial
institutions. A stated intention of the resolution framework is
to limit the use of public money to bail out distressed entities.

These actions suggest that the extent of support that the
government would provide to some banks is likely lower than what
Moody's has previously assumed. As a result, banks benefiting
from the very highest levels of support are likely to see less
support over time.

Nevertheless, Moody's continues to position the rated public
sector banks in the "very high" support bucket, reflecting the
systemic importance of public sector banks in India. The
government owns a majority stake in these banks and is visibly
involved in their management, including appointment of senior
managers and setting of key performance indicators. In addition,
the viability of public sector banks is crucial for maintaining
overall systemic stability, given that these banks cumulatively
account for around 74% of the banking system assets.

STABLE BUT WEAK BCAs; NEGATIVE PRESSURE FOR SOME BANKs

Moody's expect asset quality to remain the key credit weakness
for the rated PSBs. Net non-performing loan (NPL) formation
rates, while moderating compared to the levels seen in the last
two years, will remain elevated on an absolute basis.

At the same time, the need to improve loan loss provisioning
levels will require banks to maintain a high level of credit
costs, leading to low profitability over the next 12-18 months.

Capital levels will remain weak for most rated PSBs over the next
12-18 months, as low profitability impinges on their ability to
build capital levels through retained earnings. Moody's expects
the government to remain the key source of external capital for
these banks.

Nevertheless, because their current BCA's incorporate
considerations for solvency weakness described above, Moody's has
affirmed the BCA's for eight banks. Despite weaker asset quality
and capital metrics, the BCAs of rated public sector banks
benefit from sound funding and liquidity metrics, with the
liquidity coverage ratio (LCR) of all rated public sector banks
at or above 100%.

At the same time, the BCAs of three banks remain weak and could
face further downward pressure. The position of the BCAs at the
top of the range indicates potential for a further deterioration
to lead to a downward BCA adjustment. At the same time, Moody's
has downgraded the BCA of Syndicate to ba3 from ba2.

DISCUSSIONS ON INDIVIDUAL BANK RATING ACTIONS

Bank of Baroda and Bank of Baroda (London)

Moody's has affirmed BOB's local and foreign currency bank
deposit ratings at Baa3/Prime-3. Moody's has also affirmed Bank
of Baroda (London)'s senior unsecured debt and senior unsecured
medium-term note (MTN) program ratings at Baa3 and (P)Baa3. At
the same time, Moody's has affirmed the bank's BCA and Adjusted
BCA at ba2. Moody's has also affirmed the CRA of Baa3(cr)/Prime-
3(cr) for both the bank and London Branch. The outlook, where
applicable, has been revised to stable from positive.

The affirmation of BOB's BCA and ratings reflects Moody's
expectations that the financial profile will broadly remain
stable over the next 12-18 months. Asset quality has largely
stabilized and new NPL formation has moderated in the financial
year ended March 2017 (FY 2017). New NPL formation has
meaningfully declined in FY 2017 and Moody's expects further
improvements in the next financial year. BOB's capitalization
profile is also somewhat stronger than that of its peers and
Moody's expects the bank may be able to raise external capital
from the equity capital market if its financial profile
stabilizes further. In addition, Moody's expects improvement in
the profitability profile as credit costs will gradually come
down given the relatively stronger loan loss coverage and Moody's
expectations of a stable asset quality. Moody's expects funding
and liquid profile to remain stable and support the overall
financial profile.

The outlook on the bank's ratings has been revised to stable from
positive to reflect some moderation in Moody's expectations of
extra ordinary support from the Indian government given the
issues outlined earlier in this press release.

What could change the rating up:

Given the stable outlook, BOB's ratings are unlikely to face
upward pressure in the next 12-18 months. However, the outlook
could be revised to positive if the bank is able to improve its
profitability profile on a sustainable basis, and or if the
bank's capital position is significantly strengthened by way of
external capital.

What could change the rating down:

Downward pressure on BOB's rating will arise if further credit
losses worsen its capital position. Any indication that
government support has diminished beyond what Moody's anticipates
in this rating action could also lead to a downgrade of the
bank's ratings.

Bank of India; Bank of India (London) and Bank of India, Jersey
Branch

Moody's has affirmed BOI's local and foreign currency bank
deposit ratings at Baa3/Prime-3. Moody's has also affirmed the
bank and its branches, Bank of India (London) and Bank of India,
Jersey Branch's foreign currency senior unsecured medium-term
note (MTN) program rating at (P)Baa3. For the London and Jersey
branches, Moody's has affirmed the foreign currency senior
unsecured debt ratings at Baa3. The outlook, where applicable,
has been revised to negative from positive.

At the same time, Moody's affirmed the bank's BCA and Adjusted
BCA at ba3. As a result, Moody's affirmed the bank and the London
and Jersey branch's subordinate MTN program rating at (P)Ba3. In
addition, Moody's has affirmed the bank's preferred stock (non-
cumulative) rating of B3(hyb). For the Jersey branch, Moody's has
also affirmed the foreign currency junior subordinate MTN program
rating at (P)B1.Moody's has affirmed the bank and its branches'
CRA at Baa3(cr)/ P-3(cr).

The affirmation of the bank's ratings with a negative outlook
reflects the negative pressures on the BCA in light of the recent
deterioration in asset quality as well as expectation of pressure
on the bank's profitability as it continues to build its loan
loss buffers. Nevertheless, Moody's note that loan loss
provisioning coverage is somewhat better than that of its peers
and as such the negative impact on profitability may be limited
as the underlying asset quality stabilizes. In addition, the
bank's capitalization profile is somewhat weaker and the ability
to generate internal capital is limited. As such, Moody's expects
BOI will be dependent on capital infusion from the Indian
government. Nevertheless, Moody's expects funding and liquid
profile to remain stable and support the overall financial
profile.

The negative outlook on BOI's ratings also reflects some
moderation in Moody's expectations of extra ordinary support from
the Indian government given the issues outlined earlier in this
press release. As such, BOI's BCA and ratings could be downgraded
during the outlook horizon to reflect these factors.

What could change the rating up:

Given the negative outlook, BOI's ratings are unlikely to face
upward pressure in the next 12-18 months. However, the outlook
could be revised to stable if the bank returns to profitability
on a sustainable basis, and or the capital position is
significantly strengthened by way of external capital.

What could change the rating down:

BOI's ratings could be downgraded if further credit losses worsen
its capital position. Any indication that government support has
diminished beyond what Moody's anticipates in this rating action
could also lead to a downgrade of the bank's ratings.

Canara Bank and Canara Bank, London Branch

Moody's has affirmed Canara's local and foreign currency bank
deposit ratings at Baa3/Prime-3. Moody's has also affirmed Canara
Bank, London Branch's senior unsecured debt and senior unsecured
medium-term note (MTN) program ratings at Baa3/(P)Baa3. The
outlook, where applicable, has been revised to stable from
positive.

At the same time, Moody's has affirmed the bank's BCA and
Adjusted BCA at ba3. As a result, Moody's affirmed the London
branch's foreign currency subordinated and junior subordinate MTN
program ratings at (P)Ba3 and (P)B1 respectively. Moody's has
also affirmed the CRA of Baa3(cr)/Prime-3(cr) for both the bank
and London Branch.

The affirmation of the Canara's BCA and ratings reflects Moody's
expectations that the bank's financial profile will broadly
remain stable over the next 12-18 months. Asset quality has
largely stabilized and new NPL formation has moderated in the
financial year ended March 2017. Given the amount of recognition
done over the last 2-3 years, Moody's expects the pace of new NPL
formation to gradually slow down. While the capitalization
profile of the bank has improved, it is weaker than global peers
and as such Moody's expects the bank to remain dependent on
capital infusion from the Indian government. In addition,
profitability profile will remain under pressure as it continues
to builds provisioning buffer. Nevertheless, Moody's expects the
bank's funding and liquid profile to remain stable and support
the overall financial profile.

The outlook on the bank's ratings has been revised to stable from
positive to reflect some moderation in Moody's expectations of
extra ordinary support from the Indian government given the
issues outlined earlier in this press release.

What could change the rating up:

Given the stable outlook, Canara's ratings are unlikely to face
upward pressure in the next 12-18 months. However, the outlook
could be revised to positive if the bank is able to improve its
profitability profile on a sustainable basis, and or capital
position is significantly strengthened by way of external
capital.

What could change the rating down:

Downward pressure on Canara's rating will arise if further credit
losses worsen its capital position. Any indication that
government support has diminished beyond what Moody's anticipates
in this rating action could also lead to a downgrade of the
bank's ratings.

Central Bank of India

Moody's has downgraded CBI's long term local and foreign currency
bank deposit ratings to Ba3 from Ba1. At the same time, Moody's
has affirmed the bank's BCA and Adjusted BCA at b3. Moody's has
also downgraded the bank's long term CRA to Ba2(cr) from Ba1(cr).
The short-term local and foreign currency bank deposit rating was
affirmed at Not-Prime and the banks' short-term CRA was affirmed
at Not-Prime(cr). The outlook, where applicable, is maintained at
stable.

The downgrade of CBI's long-term deposit ratings reflect the
banks's weak BCA of b3 and some moderation in Moody's
expectations of extra ordinary support from the Indian government
given the issues outlined earlier in this press release. As such,
the uplift from the BCA has been lowered to three notches
compared to the earlier five notches.

At the same time, the affirmation of the BCA at b3 reflects
Moody's expectations that CBI's financial profile will broadly
remain stable, although very weak, over the next 12-18 months.
Asset quality has largely stabilized and new NPL formation has
moderated in the financial year ended March 2017. Given the
amount of recognition done over the last 2-3 years, Moody's
expects the pace of new NPL formation to gradually slow down.
While the capitalization profile of the bank has improved,
continued losses will exert pressure on the capital levels.
Despite severe pressure on its solvency profile, the bank's
funding and liquidity have remained stable and support the
overall financial profile. Moody's note that the bank has been
placed under prompt corrective action by the Reserve Bank of
India (RBI). As such, Moody's expects greater regulatory scrutiny
by the RBI, but that should not negatively impact the CBI's
performance.

What could change the rating up:

Given the stable outlook, CBI's ratings are unlikely to face
upward pressure in the next 12-18 months. However, the outlook
could be revised to positive if the bank returns to profitability
on a sustainable basis, and or the capital position is
significantly strengthened by way of external capital.

What could change the rating down:

Downward pressure on CBI's rating will arise if further credit
losses worsen its capital position. Any indication that
government support has diminished beyond what Moody's anticipates
in this rating action could also lead to a downgrade of the
bank's ratings.

Indian Overseas Bank and Indian Overseas Bank, Hong Kong Branch

Moody's has downgraded IOB's long term local and foreign currency
bank deposit ratings to Ba3 from Ba1. Moody's has affirmed IOB's
short term foreign currency bank deposit ratings at Not Prime.
Moody's has also affirmed the bank and its branch, Indian
Overseas Bank, Hong Kong Branch's other short term program rating
at (P)Not Prime. Moody's has downgraded the bank and its branch's
senior unsecured medium-term note (MTN) program rating to (P)Ba3
from (P)Ba1. Moody's has also downgraded the branch's senior
unsecured debt rating to Ba3 from Ba1. The outlook, where
applicable, has been revised to stable from negative.

At the same time, Moody's affirmed the bank's BCA and Adjusted
BCA at b3. As a result, Moody's affirmed the bank and the Hong
Kong branch's subordinate and junior subordinate MTN program
rating at (P)B3 and (P)Caa1 respectively. Moody's has downgraded
the bank and its branch's long term CRA to Ba2(cr) from Ba1(cr).
The short-term CRA was affirmed at NP(cr).

The downgrade of IOB's ratings reflect the bank's weak BCA of b3
and some moderation in Moody's expectations of extra ordinary
support from the Indian government given the issues outlined
earlier in this press release. As such, the uplift from the BCA
has been downgraded to three notches compared to the earlier five
notches.

At the same time, the affirmation of the bank's BCA at b3
reflects Moody's expectations that IOB's financial profile will
broadly remain stable, although very weak, over the next 12-18
months. Asset quality has largely stabilized and new NPL
formation has moderated in the financial year ended March 2017.
Given the amount of recognition done over the last 2-3 years,
Moody's expects the pace of new NPL formation to gradually slow
down. While the capitalization profile of the bank has improved,
continued losses will exert pressure on the capital levels. As
such Moody's expects the bank to remain dependent on capital
infusion from the Indian government. Despite severe pressure on
its solvency profile, the bank's funding and liquidity have
remained stable and support the overall financial profile.
Moody's note that the bank has been placed under prompt
corrective action by the RBI. As such, Moody's expects greater
regulatory scrutiny by the RBI, but that should not negatively
impact IOB's performance.

What could change the rating up:

Given the stable outlook, IOB's ratings are unlikely to face
upward pressure in the next 12-18 months. However, the outlook
could be revised to positive if the bank returns to profitability
on a sustainable basis, and or the capital position is
significantly strengthened by way of external capital.

What could change the rating down:

IOB's ratings could be downgraded if further credit losses worsen
its capital position. Any indication that government support has
diminished beyond what Moody's anticipates in this rating action
could also lead to a downgrade of the bank's ratings.

Oriental Bank of Commerce

Moody's has affirmed OBC's local and foreign currency bank
deposit ratings at Baa3/Prime-3. At the same time, Moody's has
affirmed the bank's BCA and Adjusted BCA at ba3. Moody's has also
affirmed the bank's CRA at Baa3(cr)/ Prime-3(cr). The outlook,
where applicable, has been changed to negative from positive.

The affirmation of OBC's ratings with a negative outlook reflects
the negative pressures on the BCA in light of the recent
deterioration in asset quality as well as expectation of pressure
on profitability as it continues to build its loan loss buffers.
Nevertheless, Moody's expects the bank's funding and liquidity
profile to remain stable and support the overall financial
profile.

The negative outlook on the bank's ratings also reflects some
moderation in Moody's expectations of extra ordinary support from
the Indian government given the issues outlined earlier in this
press release. As such, the bank's BCA and ratings could be
downgraded during the outlook horizon to reflect these factors.

What could change the rating up:

Given the negative outlook, OBC's ratings are unlikely to face
upward pressure in the next 12-18 months. However, the outlook
could be revised to stable if the bank returns to profitability
on a sustainable basis, and or the capital position is
significantly strengthened by way of external capital.

What could change the rating down:

OBC's ratings could be downgraded if further credit losses worsen
its capital position. Any indication that government support has
diminished beyond what Moody's anticipates in this rating action
could also lead to a downgrade of the bank's ratings.

Punjab National Bank

Moody's has affirmed PNB's local and foreign currency bank
deposit ratings at Baa3/Prime-3. Moody's has also affirmed the
bank's foreign currency issuer rating at Baa3. At the same time,
Moody's has affirmed the bank's BCA and Adjusted BCA at ba3.
Moody's has also affirmed the bank's CRA at Baa3(cr)/ Prime-
3(cr). The outlook, where applicable, has been changed to stable
from positive.

The affirmation of the PNB's BCA and ratings reflects Moody's
expectations that the bank's financial profile will broadly
remain stable over the next 12-18 months. Asset quality has
largely stabilized and new NPL formation has moderated in the
financial year ended March 2017. Given the amount of recognition
done over the last 2-3 years, Moody's expects the pace of new NPL
formation to gradually slow down. The capitalization profile of
the bank is weaker than global peers, nevertheless Moody's note
that the bank has potential to release capital from the sale of
non-core assets such as its housing finance subsidiary.
Nevertheless, given weak equity market valuation, Moody's expects
the bank will remain dependent on capital infusion from the
Indian government. In addition, the bank's profitability profile
will gradually improve given the strong pre-provisioning profits
and some moderation in credit costs compared to the past two
years in line with Moody's views of stable asset quality. The
banks funding and liquidity profile remain stable and are key
strengths of its financial profile.

The outlook on the bank's ratings has been revised to stable from
positive. This reflects some moderation in Moody's expectations
of extra ordinary support from the Indian government given the
issues outlined earlier in this press release.

What could change the rating up:

Given the stable outlook, PNB's ratings are unlikely to face
upward pressure in the next 12-18 months. However, the outlook
could be revised to positive if the bank is able to improve its
profitability profile on a sustainable basis, and or the capital
position is significantly strengthened by way of external
capital.

What could change the rating down:

Downward pressure on PNB's rating will arise if further credit
losses worsen its capital position. Any indications that
government support has diminished beyond what Moody's anticipates
in this rating action could also lead to a downgrade of the
bank's ratings.

Syndicate Bank and Syndicate Bank, London Branch

Moody's has affirmed Syndicate Bank's (Syndicate) local and
foreign currency bank deposit ratings at Baa3/Prime-3. Moody's
has also affirmed the bank and its branch's senior unsecured
medium-term note (MTN) program rating at (P)Baa3. Moody's has
also affirmed the branch's senior unsecured debt rating at Baa3.
The outlook, where applicable, has been revised to stable from
positive.

At the same time, Moody's has downgraded the bank's BCA and
Adjusted BCA to ba3 from ba2. As a result, Moody's has also
downgraded the bank and the London branch's subordinate and
junior subordinate MTN program rating to (P)Ba3 from (P)Ba2 and
to (P)B1 from (P)Ba3 respectively. Moody's has affirmed the bank
and its branch's CRA at Baa3(cr)/ Prime-3(cr).

The downgrade of the BCA reflects the deterioration in
Syndicate's financial performance due to asset quality
deterioration as well as expectation of pressure on the
profitability profile as it continues to build its loan loss
buffers. In addition, the bank's capitalization profile is
somewhat weaker than other similarly rated peers and its ability
to generate internal capital is limited. As such, Moody's expects
the bank will be dependent on capital infusion from the Indian
government. Nevertheless, Moody's expects funding and liquid
profile to remain stable and support the overall financial
profile.

What could change the rating up:

Given the stable outlook, Syndicate's ratings are unlikely to
face upward pressure in the next 12-18 months. However, the
outlook could be revised to positive if the bank is able to
improve its profitability profile on a sustainable basis, and or
the capital position is significantly strengthened by way of
external capital.

What could change the rating down:

Downward pressure on Syndicate's rating will arise if further
credit losses worsen its capital position. Any indications that
government support has diminished beyond what Moody's anticipates
in this rating action could also lead to a downgrade of the
bank's ratings.

Union Bank of India and Union Bank of India, Hong Kong Branch

Moody's has affirmed Union Bank of India's (Union Bank) local and
foreign currency bank deposit ratings at Baa3/Prime-3. Moody's
has also affirmed the bank and its branch's senior unsecured
medium-term note (MTN) program rating at (P)Baa3. Moody's has
also affirmed the branch's senior unsecured debt rating at Baa3.
The outlook, where applicable, has been revised to negative from
positive.

At the same time, Moody's has affirmed the bank's BCA and
Adjusted BCA at ba3. As a result, Moody's has also affirmed the
bank and the Hong Kong branch's subordinate and junior
subordinate MTN program rating at (P)Ba3 and (P)B1. Moody's has
affirmed the bank and its Hong Kong branch's CRA at Baa3(cr)/
Prime-3(cr).

The affirmation of the banks' ratings with a negative outlook
reflects negative pressures on the BCA in light of the recent
deterioration in asset quality as well as expectation of pressure
on profitability profile as it continues to build its loan loss
buffers. In addition, Union Bank's capitalization profile is
weaker than other rated peers in India. Nevertheless, Moody's
expects funding and liquid profile to remain stable and support
the overall financial profile.

The negative outlook on the bank's ratings also reflects some
moderation in Moody's expectations of extra ordinary support from
the Indian government given the issues outlined earlier in this
press release. As such, Union banks' BCA and ratings could be
downgraded during the outlook horizon to reflect these factors.

What could change the rating up:

Given the negative outlook, Union Banks' ratings are unlikely to
face upward pressure in the next 12-18 months. However, the
outlook could be revised to stable if the bank returns to
profitability on a sustainable basis, or if the banks' capital
position is significantly strengthened by way of external
capital.

What could change the rating down:

Union Bank's ratings could be lowered if further credit losses
worsen its capital position. Any indication that government
support has diminished beyond what Moody's anticipates in this
rating action could also lead to a downgrade of the bank's
ratings.

The principal methodology used in these ratings was Banks
published in January 2016.

The ratings and outlook of the affected financial institutions
are listed below.

Bank of Baroda (Lead Analyst: Srikanth Vadlamani)

Long-term local and foreign currency bank deposit ratings
affirmed at Baa3; outlook changed to stable from positive

Short-term local and foreign currency bank deposit ratings
affirmed at P-3

BCA and Adjusted BCA affirmed at ba2

CRA affirmed at Baa3(cr)/P-3(cr)

Outlook for the bank revised to stable from positive

Bank of Baroda, headquartered in Baroda(Gujarat) and corporate
office in Mumbai, reported total consolidated assets of INR 7,192
billion ($111 billion) as of March 31, 2017.

Bank of Baroda (London) (Lead Analyst: Srikanth Vadlamani)

Foreign currency senior unsecured debt rating affirmed at Baa3;
outlook changed to stable from positive

Foreign currency senior unsecured MTN program rating affirmed at
(P)Baa3

CRA affirmed at Baa3(cr)/P-3(cr)

Outlook for the branch revised to stable from positive

Bank of India (Lead Analyst: Srikanth Vadlamani)

Long-term local and foreign currency bank deposit ratings
affirmed at Baa3; outlook changed to negative from positive

Short-term local and foreign currency bank deposit ratings
affirmed at P-3

Foreign currency senior unsecured MTN program rating affirmed at
(P)Baa3

Foreign currency subordinated MTN program rating affirmed at
(P)Ba3

Pref. stock (non-cumulative) rating affirmed at B3(hyb)

BCA and Adjusted BCA affirmed at ba3

CRA affirmed at Baa3(cr)/P-3(cr)

Outlook for the bank revised to negative from positive

Bank of India, headquartered in Mumbai, reported total
consolidated assets of INR 6,320 billion ($98 billion) as of
March 31, 2017.

Bank of India (London) (Lead Analyst: Srikanth Vadlamani)

Foreign currency senior unsecured debt rating affirmed at Baa3;
outlook changed to negative from positive

Foreign currency senior unsecured MTN program rating affirmed at
(P)Baa3

Foreign currency subordinated MTN program rating affirmed at
(P)Ba3

CRA affirmed at Baa3(cr)/P-3(cr)

Outlook for the branch revised to negative from positive

Bank of India, Jersey Branch (Lead Analyst: Srikanth Vadlamani)

Foreign currency senior unsecured debt rating affirmed at Baa3;
outlook changed to negative from positive

Foreign currency senior unsecured MTN program rating affirmed at
(P)Baa3

Foreign currency subordinated MTN program rating affirmed at
(P)Ba3

Foreign currency junior subordinate MTN program rating affirmed
at (P)B1

CRA affirmed at Baa3(cr)/P-3(cr)

Outlook for the branch revised to negative from positive

Canara Bank (Lead Analyst: Alka Anbarasu)

Long-term local and foreign currency bank deposit ratings
affirmed at Baa3; outlook changed to stable from positive

Short-term local and foreign currency bank deposit ratings
affirmed at P-3

BCA and Adjusted BCA affirmed at ba3

CRA affirmed at Baa3(cr)/P-3(cr)

Outlook for the bank revised to stable from positive

Canara Bank, headquartered in Bangalore, reported total
consolidated assets of INR 5,962 billion ($92 billion) as of
March 31, 2017.

Canara Bank, London Branch (Lead Analyst: Alka Anbarasu)

Foreign currency senior unsecured debt rating affirmed at Baa3;
outlook changed to stable from positive

Foreign currency senior unsecured MTN program rating affirmed at
(P)Baa3

Foreign currency subordinated MTN program rating affirmed at
(P)Ba3

Foreign currency junior subordinate MTN program rating affirmed
at (P)B1

CRA affirmed at Baa3(cr)/P-3(cr)

Outlook for the branch revised to stable from positive

Central Bank of India (Lead Analyst: Alka Anbarasu)

Long-term local and foreign currency bank deposit ratings
downgraded to Ba3 from Ba1; outlook maintained at stable

Short-term local and foreign currency bank deposit ratings
affirmed at NP;

BCA and Adjusted Baseline Credit Assessment affirmed at b3

Long-term CRA downgraded to Ba2(cr) from Ba1(cr)

Short-term CRA affirmed at NP(cr)

Outlook for the bank maintained at stable

Central Bank of India, headquartered in Mumbai, reported total
consolidated assets of INR 3,347 billion ($52 billion) as of
March 31, 2017.

Indian Overseas Bank (Lead Analyst: Alka Anbarasu)

Long-term local and foreign currency bank deposit ratings
downgraded to Ba3 from Ba1; outlook changed to stable from
negative

Short-term foreign currency bank deposit ratings affirmed at NP

Foreign currency other short term program rating affirmed at
(P)NP

Foreign currency senior unsecured MTN program rating was
downgraded to (P)Ba3 from (P)Ba1

Foreign currency subordinate MTN program rating affirmed at (P)B3

Foreign currency junior subordinate MTN program rating affirmed
at (P)Caa1

BCA and Adjusted BCA affirmed at b3

Long-term CRA downgraded to Ba2(cr)) from Ba1(cr)

Short-term CRA affirmed at NP(cr)

Outlook for the bank changed to stable from negative

Indian Overseas Bank, headquartered in Chennai, reported total
consolidated assets of INR 2,472 billion ($38 billion) as of
March 31, 2017.

Indian Overseas Bank, Hong Kong branch (Lead Analyst: Alka
Anbarasu)

Foreign currency other short term program rating affirmed at
(P)NP

Foreign currency senior unsecured debt rating downgraded to Ba3
from Ba1, outlook changed to stable from negative

Foreign currency senior unsecured MTN program rating downgraded
to (P)Ba3 from (P)Ba1

Foreign currency subordinate MTN program rating affirmed at (P)B3

Foreign currency junior subordinate MTN program rating affirmed
at (P)Caa1

Long-term CRA downgraded to Ba2(cr) from Ba1(cr)

Short-term CRA affirmed at NP(cr)

Outlook for the bank changed to stable from negative

Oriental Bank of Commerce (Lead Analyst: Srikanth Vadlamani)

Long-term local and foreign currency bank deposit ratings
affirmed at Baa3; outlook changed to negative from positive

Short-term local and foreign currency bank deposit ratings
affirmed at P-3

BCA and Adjusted BCA affirmed at ba3

CRA affirmed at Baa3(cr)/P-3(cr)

Outlook for the bank revised to negative from positive

Oriental Bank of Commerce, headquartered in New Delhi, reported
total consolidated assets of INR 2,531 billion ($39 billion) as
of March 31, 2017.

Punjab National Bank (Lead Analyst: Alka Anbarasu)

Long-term local and foreign currency bank deposit ratings
affirmed at Baa3; outlook changed to stable from positive

Short-term local and foreign currency bank deposit ratings
affirmed at P-3

Foreign currency issuer rating affirmed at Baa3; outlook changed
to stable from positive

BCA and Adjusted BCA affirmed at ba3

CRA affirmed at Baa3(cr)/P-3(cr)

Outlook for the bank revised to stable from positive

Punjab National Bank, headquartered in New Delhi, reported total
consolidated assets of INR 7,333 billion ($113 billion) as of
March 31, 2017.

Syndicate Bank (Lead Analyst: Srikanth Vadlamani)

Long-term local and foreign currency bank deposit ratings
affirmed at Baa3; outlook changed to stable from positive

Short-term local and foreign currency bank deposit ratings
affirmed at P-3

Foreign currency senior unsecured MTN program rating affirmed at
(P)Baa3

Foreign currency subordinated MTN program rating downgraded to
(P)Ba3 from (P)Ba2

Foreign currency junior subordinate MTN program rating downgraded
to (P)B1 from (P)Ba3

BCA and Adjusted BCA downgraded to ba3 from ba2

CRA affirmed at Baa3(cr)/P-3(cr)

Outlook for the bank revised to stable from positive

Syndicate Bank, headquartered in Bangalore, reported total
consolidated assets of INR 3,006 billion ($46 billion) as of
March 31, 2017.

Syndicate Bank, London Branch (Lead Analyst: Srikanth Vadlamani)

Foreign currency senior unsecured debt rating affirmed at Baa3;
outlook changed to stable from positive

Foreign currency senior unsecured MTN program rating affirmed at
(P)Baa3

Foreign currency subordinated MTN program rating downgraded to
(P)Ba3 from (P)Ba2

Foreign currency junior subordinate MTN program rating downgraded
to (P)B1 from (P)Ba3

CRA affirmed at Baa3(cr)/P-3(cr)

Outlook for the branch revised to stable from positive

Union Bank of India (Lead Analyst: Alka Anbarasu)

Long-term local and foreign currency bank deposit ratings
affirmed at Baa3; outlook changed to negative from positive

Short-term local and foreign currency bank deposit ratings
affirmed at P-3

Foreign currency senior unsecured MTN program rating affirmed at
(P)Baa3

Foreign currency subordinated MTN program rating affirmed at
(P)Ba3

Foreign currency junior subordinate MTN program rating affirmed
at (P)B1

BCA and Adjusted BCA affirmed at ba3

CRA affirmed at Baa3(cr)/P-3(cr)

Outlook for the bank revised to negative from positive

Union Bank of India, headquartered in Mumbai, reported total
consolidated assets of INR 4,557 billion ($70 billion) as of
March 31, 2017.

Union Bank of India, Hong Kong Branch (Lead Analyst: Alka
Anbarasu)

Foreign currency senior unsecured debt rating affirmed at Baa3;
outlook changed to negative from positive

Foreign currency senior unsecured MTN program rating affirmed at
(P)Baa3

Foreign currency subordinated MTN program rating affirmed at
(P)Ba3

Foreign currency junior subordinate MTN program rating affirmed
at (P)B1

CRA affirmed at Baa3(cr)/P-3(cr)

Outlook for the branch revised to negative from positive


INNOVENTIVE INDUSTRIES: NCLT Extends Deadline to Submit Plan
------------------------------------------------------------
The Economic Times reports that Innoventive Industries, India's
first company to be tried under the new Insolvency and Bankruptcy
Code, has failed to finalize a debt resolution plan in the
stipulated six months, prompting the National Company Law
Tribunal (NCLT) to extend the deadline by another three months-
the maximum permissible -- before liquidation.

If the company fails to resolve the debt problem in the next
three months with banks taking a haircut and promoters bringing
in equity, it would face liquidation, the report says.

As creditors and the borrower could not conclude on the revival
plan, they agreed on seeking the additional time, three sources
familiar with the matter told ET. "The promoter may too bid for
the company on a personal capacity, a move aimed at preventing a
possible liquidation of the company as there is disagreement over
the revival plan," one of the persons told ET.

On January 17, largest private sector lender ICICI Bank dragged
it to Mumbai NCLT, ET recalls. The company had to pay about
INR1,300 crore to a group of 21 financial creditors, including
Bank of India, SBI-IFB Pune, Bank of Maharashtra, IDBI Bank.

ICICI Bank and Innoventive Industries did not respond to ET's
emails seeking comments on the matter.

There are about 90 operational creditors that supplied goods and
services to Innoventive Industries, but did not receive their
dues in full, ET says.

Dhinal Shah, a partner at Ernst & Young, is the insolvency
professional looking after the company's day-to-day operations,
the report discloses.

Innoventive Industries Ltd (NSE:INNOIND) is an India-based
company engaged in offering steel tube (electric resistance
welded (ERW), cold drawn electric welded (CEW) and Pilger); steel
sheets (membrane strips and sheets), and auto parts (two-three
wheelers and structures). The Company's segments include
Precision Tube segment, Auto Components segment, and Cold Rolled
Coils & Other Products segment. The Company operates through
three divisions: Tube, Sheet and Auto Products. The Company
manufactures precision steel tubes, membrane panel strips, auto
components and other steel products catering to industries in
automobile, boiler and heat exchangers, energy, oil and general
engineering sectors. It specializes in processing various types
of steel. The Company caters to both domestic and international
markets. The Company's manufacturing plants are located in Pune,
India.


JAS EQUIPMENT: CRISIL Lowers Rating on INR5.5MM Cash Loan to B
--------------------------------------------------------------
CRISIL has been seeking information and a discussion with the
management of JAS Equipment & Engineers Private Limited (JASEPL)
since December 2016. Despite several emails and calls, the
company has not submitted any information. CRISIL had, through a
letter from the director dated February 7, 2017 and one from
senior director dated March 22, 2017, informed the company of the
extant guidelines and requested cooperation. The issuer, however,
remains non-cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            5.5       CRISIL B/Stable (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL B+/Stable')

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of JAS Equipment & Engineers Pvt
Ltd (JASEPL). This restricts CRISIL's ability to take a forward
looking view on the credit quality of the entity. CRISIL believes
that the information available for JAS Equipment & Engineers Pvt
Ltd (JASEPL) is consistent with 'Scenario 1' outlined in the
'Framework for Assessing Consistency of Information with CRISIL
B' category or lower. Based on the last available information,
CRISIL has downgraded the rating to 'CRISIL B/Stable'.from
'CRISIL B+/Stable'

Incorporated in 2007, JASEPL is promoted by Mr. Ahindra Narayan
Basuroychowdhury and is engaged in the fabrication of heavy
structural components of boilers, conveyors and pollution control
equipment. The company has its fabrication and machining units at
Durgapur (West Bengal).


JDS FOUNDATION: CRISIL Reaffirms B Rating on INR12.25MM LT Loan
---------------------------------------------------------------
CRISIL has been consistently following up with JDS Foundation
(JDS) for obtaining information through letters and emails dated
February 8, 2017, and March 22, 2017, among others, apart from
telephonic communication. However, the issuer has remained non-
cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Proposed Long Term
   Bank Loan Facility    12.25      CRISIL B/Stable (Issuer Not
                                    Cooperating; Reaffirmed)

   Term Loan              0.25      CRISIL B/Stable (Issuer Not
                                    Cooperating; Reaffirmed)

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of JDS. This restricts CRISIL's
ability to take a forward looking view on the credit quality of
the entity. CRISIL believes that the information available for
JDS is consistent with 'Scenario 1' outlined in the 'Framework
for Assessing Consistency of Information with CRISIL B Rating
category or lower.' Based on the last available information,
CRISIL has reaffirmed the rating at 'CRISL B/Stable'.

JDS is a charitable trust set up in December 2011 to run the JDS
Private Industrial Training Institute, which specialises in
training individuals in industrial skills. The trust was set up
and is managed by Mr Sajal Ghosh of Kolkata. Mr Ghosh is also a
trustee of Pinnaccle Education Trust, whose flagship institution
is Kolkata-based Elitte Institute of Engineering & Management, a
diploma engineering and hotel management institute set up in
2009.


K MANIAR: Ind-Ra Assigns 'IND BB' Issuer Rating; Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned K Maniar (KM) a
Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable. The
instrument-wise rating action is:

-- INR500 mil. Proposed long-term loan* assigned with
    Provisional IND BB/Stable rating.

* The rating is provisional and shall be confirmed upon the
sanction and execution of loan documents for the above facility
by KM to the satisfaction of Ind-Ra.

KEY RATING DRIVERS

The ratings reflect the risk of time and cost overruns faced by
KM with regard to its ongoing residential project, Sethia
Grandeur. Only 56% of the total construction has been completed
so far, with the remaining likely to be completed by
December 2018.

The ratings also reflect the partnership nature of the
organisation.

The ratings factor in that project completion is largely
dependent on customer advances from booking of flats. Therefore,
any delay in the booking of flats may affect project progress of
the project.

The ratings, however, are supported by the promoter's experience
of over 10 years in the real estate sector and the project's
favourable location in Bandra East, Mumbai, with proximity to
schools, colleges and markets. Moreover, 51 flats of the 95 flats
(53.68%) have been sold so far.

RATING SENSITIVITIES

Negative: Any slowdown in the flat bookings leading to a cash
flow shortfall will be negative for the ratings.

Positive: Sale of a substantial number of housing units leading
to strong cash flow visibility will be positive for the ratings.

COMPANY PROFILE

KM is building Sethia Grandeur in Bandra East, Mumbai. The
construction commenced in March 2016.


KHUSHBU ENTERPRISE: CRISIL Assigns B+ Rating to INR1.5MM LT Loan
----------------------------------------------------------------
CRISIL has assigned 'CRISIL B+/Stable/CRISIL A4' ratings to the
bank facilities of Khushbu Enterprise - Mumbai (KE).

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Proposed Long Term
   Bank Loan Facility     1.5       CRISIL B+/Stable

   Bank Guarantee         3.0       CRISIL A4

   Cash Credit            2.5       CRISIL B+/Stable

The ratings reflect modest scale of operations with high
geographical concentration in revenue and exposure to intense
competition in the highly fragmented industry. These weaknesses
are partially offset by the extensive experience of its
proprietor in the civil construction business and funding support
from proprietor.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations and high geographical concentration
in revenue: Scale of operations remains small in the competitive
civil construction segment. Also, majority of the projects are
from the Municipal Corporation of Mumbai, scale of operations
becomes proportional to the number of tenders floated in the
region.

* Exposure to intense competition: Low entry barrier has led to
many players in the civil construction industry, which affects
the players' ability to win tenders and maintain profitability.

Strengths

* Extensive experience of proprietor: Presence of around 25 years
in the civil construction industry has enabled the proprietor to
undertake several projects for the Municipal Corporation of
Mumbai without significant delays.

* Fund support from proprietor: The proprietor have extended
need-based fund support in the form of unsecured loans' estimated
at INR5.5 crore as on March 31, 2017.

Outlook: Stable
CRISIL believes KE will continue to benefit from the experience
of its proprietor over the medium term. The outlook may be
revised to 'Positive' if there is significant improvement in
scale of operations and profitability leads to high cash accrual.
The outlook may be revised to 'Negative' if sizeable, debt-funded
capital expenditure, failure to execute projects on time, or
aggressive bidding exerts pressure on margins.

Set up as a partnership firm in 1997, KE undertakes civil
construction work for Municipal Corporation of Mumbai.

Profit after tax (PAT) was INR0.48 crore on net sales of INR13.16
crore in fiscal 2017(provisional) against INR0.42 crore and
INR12.47 crore in fiscal 2016.


LEAP LEGAL: Moody's Assigns (P)Ba3 Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has assigned a provisional corporate
family rating (CFR) of (P)Ba3 to LEAP Legal Software Pty Limited.
At the same time, Moody's has assigned a provisional (P)Ba3
rating to the proposed backed senior secured term loan facility
of AUD350 million to be entered into by LEAP.

The rating is assigned on the basis that LEAP acquires InfoTrack
Pty Ltd in a transaction to be funded through a combination of
the term loan facility, scrip and cash.

This is the first time that Moody's has assigned ratings to LEAP.
The outlook on the ratings is stable.

The facilities will be fully and unconditionally guaranteed on a
joint and several basis by group entities subject to a guarantor
coverage test.

The (P)Ba3 corporate family and backed senior secured ratings are
based on Moody's review of draft documentation. Definitive
ratings will be assigned upon a satisfactory review of final
documentation and upon successful close of the transaction.

RATINGS RATIONALE

"The (P)Ba3 CFR reflects the combined company's leading position
in Australia's market for legal practice management platforms for
smaller legal and conveyancing firms, and strong position in
integrated search and services platforms for professionals; solid
cash flow generation and high barriers to entry resulting from
its entrenched first-mover advantage in delivering integrated
systems; well-diversified and growing customer base; and solid
liquidity profile," says Shawn Xiong, a Moody's Analyst.

Moody's expects growth in LEAP's EBITDA and cash flow generation
to be driven by sustained demand for integrated legal practice
management systems and search and services platforms. Demand
growth expectations are supported by the ability to expand its
product offering from legal and property-related services to a
broader range of search products.

However, the ratings are constrained by the company's high
adjusted debt-to-EBITDA leverage and relatively small scale.

Moody's expects adjusted debt-to-EBITDA, pro forma for the
consolidated entity in 2016 and acquisition debt, to be just over
6.0x, which is high for the rating. However, EBITDA growth,
coupled with modest debt reduction, should support deleveraging
to below 5.0x by the end of the fiscal year ending June 2018. The
rating incorporates Moody's expectation that this deleveraging
will occur.

The stable outlook considers Moody's view that LEAP is a highly
leveraged small business when compared to similarly rated
issuers. However, this factor is mitigated by its solid and
predictable margins supported by a high degree of repeat and
retention business, stable cash flow generation, solid EBITDA
growth prospects and an expectation for significant deleveraging
over the next two years.

LEAP's liquidity is expected to remain solid over the next 12-18
months, supported by cash balances of up to AUD50 million and
consistent free cash flow generation. Moody's expects free cash
flow to be allocated to debt reduction.

If adjusted debt-to-EBITDA fails to trend towards or below 5.0x
in the 12-18 months following close of the transaction, the
ratings could be downgraded. Further, sustained adjusted EBITA-
to-interest expense below 2.5x or adjusted retained cash flow-to-
net debt below 10% could also result in a ratings downgrade.

The ratings are unlikely to be upgraded over the next two years,
given LEAP's small scale and high leverage. Moody's is unlikely
to consider an upgrade prior to the company lowering its adjusted
debt-to-EBITDA on a sustained basis below 4.0x.

The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.

LEAP Legal Software Pty Limited provides a cloud-based legal
practice management platform to small and medium-sized Australian
legal and conveyancing firms. InfoTrack Pty Ltd is a premium
cloud-based Software-as-a-Service (SaaS) integrated search and
services platform for professionals.


MULTI FOOD: CRISIL Assigns B+ Rating to INR4.0MM Cash Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facilities of Multi Food Products Private Limited.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            4.00      CRISIL B+/Stable
   Term Loan              2.48      CRISIL B+/Stable

The rating reflectsthe moderate scale of operations amidst
intense competition, and susceptibility of profitability to
volatile raw material cost. These rating weaknesses are partially
offset by extensive experience of the promoters in the rice
milling industry.

Analytical Approach

For arriving at the ratings, CRISIL has treated unsecured loans
extended by the promoters of MFPPL, as neither debt nor equity as
these loans carry an interest rate lower than the market rate,
and are likely to remain in the business over the medium term.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations amidst intense competition
Intense competition from several unorganised players, has kept
the scale of operations modest, as reflected in estimated revenue
of INR21.14crore in fiscal 2017.

* Susceptibility to volatility in commodity prices and vagaries
of monsoon
Operating margin has been moderate at 3.5-4.5% over a period
oftime, due to low value addition. Profitability will also remain
susceptible to volatile commodity prices. Rice prices are also
dependent on factors such as rainfall and change in government
regulations

Strengths

* Extensive experience of the promoters in the agri-commodity
industry
The decade-long experience of the promoters, and established
relationships with many distributors/retailers and merchant
exporters, ensuring a hassle-free selling process, will continue
to support the business risk profile.

Outlook: Stable

CRISIL believes MFPPL will continue to benefit from the extensive
experience of its promoters and their funding support, leading to
a moderate financial risk profile. The outlook may be revised to
'Positive' if an improvement in revenue and profitability leads
to substantial cash accrual. The outlook may be revised to
'Negative' in case of lower-than-expected accrual or stretch in
the working capital cycle, weakening the financial risk profile
and liquidity.

MFPPL, established on January 4, 2006 processing i.e. mills,
polishes and sorts basmati and non-basmati rice. The Ahmedabad-
based company has been promoted by MrHaresh Kumar Khanchandani,
MrMukeshKhanchandani and Mrs Sarita Khanchandani.

In fiscal 2017, estimated net profit was INR0.31 crore on
operating income of INR21.14 crore, against INR0.01 croreand
INR20.12 crore, respectively, in fiscal 2016.


OM SHIV: CRISIL Assigns 'B' Rating to INR12MM Term Loan
-------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Om Shiv Foods (OSF).

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            12        CRISIL B/Stable
   Term Loan              12        CRISIL B/Stable

The rating reflects the firm's exposure to high offtake risk amid
intense competition and below-average financial risk profile
because of debt-funded project. These weaknesses are partially
offset by the extensive experience of its promoters.

Key Rating Drivers & Detailed Description

Weaknesses

* High offtake risk amid intense competition: The firm is
expected to start operations in October 2017. The rice business
is highly fragmented with numerous unorganised players catering
to local demand, which may hamper ramp-up post commencement of
operations and limit ability to bargain with suppliers and
customers.

* High expected gearing: Gearing is expected to be high at 4.48
times for fiscal 2017 and is expected to remain leveraged over
the medium term.

Strength

* Extensive experience of promoters: One of the promoters, Mr.
Ajay Mittal, has been in the rice industry for three decades and
has developed strong industry insight and relationship with
customers and suppliers.

Outlook: Stable

CRISIL believes OSF will benefit over the medium term from the
extensive experience of its management. The outlook may be
revised to 'Positive' if successful commissioning of project
leads to higher-than-expected revenue and profitability and
hence, better financial risk profile. The outlook may be revised
to 'Negative' if delay in commissioning of project or lower-than-
expected revenue further weakens financial risk profile,
particularly liquidity.

Established in 2017 as a partnership firm by Ms. Saroj Sharma,
Ms. Pushpa Saravagi, Mr. Ajay Mittal, Mr. Vijay Kumar Mittal, and
Mr. Sonam Sharma, OSF is setting up a rice milling unit in
Gwalior, Madhya Pradesh.


P.D. SHAH: Ind-Ra Assigns BB- LT Issuer Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned P.D. Shah & Sons
Traders Private Limited (PDSPL) a Long-Term Issuer Rating of 'IND
BB-'. The Outlook is Stable. The instrument-wise rating action
is:

-- INR210 mil. Fund-based cash credit facilities assigned with
    IND BB-/Stable/IND A4+ rating.

KEY RATING DRIVERS

The ratings reflect PDSPL's small-to-moderate scale of operations
and tight liquidity position. As per provisional financials for
FY17, revenue grew to INR1,010.4 million (FY16: INR560.8 million)
on the back of improved product portfolio and sales volume.

The company had an elongated working capital cycle of 178 days in
FY17P (FY16: 211 days) on account of high debtor days. PDSPL had
fully utilised its fund-based facilities during the 12 months
ended May 2017.

The ratings also factor in PDSPL's moderate EBITDA margins and
weak but improving credit metrics. EBITDA margins increased to
7.82% in FY17P (FY16: 4.97%) on back of the growth in the top
line. Consequently, gross interest coverage (operating
EBITDA/gross interest expense) improved to 1.76x in FY17P (FY16:
0.74x) and net leverage (total adjusted net debt/operating
EBITDA) to 5.04x (10.03x).

However, the ratings are supported by PDSPL's promoters' almost
four decades of experience in the trading of milk and milk
products.

RATING SENSITIVITIES

Negative: A decline in the liquidity position on account of
elongation of the working capital cycle or/and a decline in the
EBITDA margins on a sustained basis will lead to a negative
rating action.

Positive: A sustained growth in the revenue and EBITDA margins
leading to an improvement in the overall credit metrics on a
sustained basis will lead to a positive rating action.

COMPANY PROFILE

Incorporated in 2014 in Pune, PDSPL is involved in trading of
milk and milk products. It is an agent and distributor of Shree
Warana Sahakari Dudh Utpadack Prakriva Sangh Ltd. The company is
also an agent of Karnataka Cooperative Milk Producers Federation
Ltd since 2016. PDSPL is also involved in trading of agri-
products such as frozen fruits and vegetables, cosmetic products,
among others. The company is promoted by Mr. Ashok Shah and his
family.


PRECISION ELECTRONIC: CRISIL Assigns B+ Rating to INR5.25MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Precision Electronic Instruments Company.

                          Amount
   Facilities            (INR Mln)     Ratings
   ----------            ---------     -------
   Proposed Long Term
   Bank Loan Facility        1.55      CRISIL B+/Stable

   Long Term Loan            0.45      CRISIL B+/Stable

   Foreign Bill
   Discounting               0.25      CRISIL B+/Stable

   Bank Guarantee            0.50      CRISIL A4

   Cash Credit               5.25      CRISIL B+/Stable

The ratings reflect PEIC's small scale of operations, exposure to
intense competition, and working capital-intensive operations.
These ratings weaknesses are partially offset by the extensive
experience of its proprietor and moderate financial risk profile.

Analytical Approach

Unsecured loans of INR9.1 crore have been treated as neither debt
nor equity as these are expected to remain in business over the
medium term and are low interest bearing.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations and exposure to intense competition:
With estimated net sales of INR26.57 crore in fiscal 2017, scale
remains small in the highly fragmented weighbridge and measuring
solutions segment.

* Working capital-intensive operations: Gross current assets are
estimated at 197 days as on March 31, 2017, due to large
inventory of 153 days and moderate receivables of 48 days.

Strengths

* Extensive experience and wide distribution network: The firm
has been in the weighbridge and measuring solutions business
since the past two decades, leading to healthy relationship with
customers and suppliers.

* Moderate financial risk profile: Gearing is estimated to be
comfortable at 0.72 times as on March 31, 2017, while debt
protection metrics were comfortable, with estimated interest
coverage and net cash accrual to total debt ratios of 1.71 times
and 0.28 time, respectively, for fiscal 2017.

Outlook: Stable

CRISIL believes PEIC will benefit over the medium term from its
track record and diverse clientele in the weighing instruments
industry. The outlook may be revised to 'Positive' upon
significant improvement in scale of operations, while maintaining
profitability and improvement in working capital requirements.
The outlook may be revised to 'Negative' if slowdown in revenue,
weakening of profitability, or capital withdrawal adversely
affect the capital structure.

Set up as a proprietorship concern in 1995 by Mr. Rajnish Kumar
Agarwal, PEIC manufactures weighbridges, scales, vehicle metres,
and tracking devices under the Goldtech brand. Unit is in
Bahadurgarh, Haryana.

Provisional profit after tax (PAT) is INR34.20 lakh on an
operating income of INR26.57 crore in fiscal 2017; PAT was INR15
lakh on an operating income of INR21.96 crore in fiscal 2016.


PURI CONSTRUCTION: CRISIL Cuts Rating on INR88.36MM Loan to B+
--------------------------------------------------------------
CRISIL has been consistently following up with Puri Construction
Private Limited (PCPL) for obtaining information through letters
dated March 29, 2017 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee        86.64      CRISIL A4 (Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL A3')

   Long Term Loan        75.00      CRISIL B+/Stable (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL BBB-/Stable')

   Proposed Long Term     88.36     CRISIL B+/Stable (Issuer Not
   Bank Loan Facility               Cooperating; Downgraded from
                                    'CRISIL BBB-/Stable')

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PCPL. This restricts CRISIL's
ability to take a forward looking view on the credit quality of
the entity. CRISIL believes that the information available for
PCPL is consistent with 'Scenario 1' outlined in the 'Framework
for Assessing Consistency of Information with CRISIL B Rating
category or lower.' Based on the last available information,
CRISIL has downgraded the rating to 'CRISIL B+/Stable/CRISIL A4'
from 'CRISIL BBB-/Stable/CRISIL A3'.

Founded in 1971 by Mr. Mohinder Puri, PCPL primarily engaged in
construction. In 1997, the company began focusing on the
residential real estate segment. Its ongoing projects are Anand
Vilas, Emerald Bay, Diplomatic Green, Pratham and 81 High Street.
Further, PCPL is planning to launch its township in March 2016 in
Faridabad.


SAHIL PACKAGING: CRISIL Lowers Rating on INR8.0MM Loan to D
-----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Sahil Packaging (SP) to 'CRISIL D' from 'CRISIL B/Stable'. The
downgrade reflects instances of delay in servicing term loan
because of stretched liquidity.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            3.5       CRISIL D (Downgraded from
                                    'CRISIL B/Stable')

   Proposed Cash          3.5       CRISIL D (Downgraded from
   Credit Limit                     'CRISIL B/Stable')

   Term Loan              8.0       CRISIL D (Downgraded from
                                     'CRISIL B/Stable')

SP's financial risk profile remains below average, and its scale
of operations small. These weaknesses are, however, partially
offset by the proprietor's experience in the corrugated packaging
industry.

Key Rating Drivers & Detailed Description

Weakness

* Recent delays in servicing term loan: The firm has delayed
servicing its term loan instalments between April and June of
2017 due to weak liquidity.

* Modest scale of operations: Scale of operations remains small,
with revenue of INR5.6 crore in fiscal 2016, in the intensely
competitive packaging industry.

* Below-average financial risk profile: Financial risk profile
continues to be weak on account of high gearing and low networth
estimated at 2.6 times and INR3.75 crore as on March 31, 2016.

Strength

* Extensive industry experience of the promoters: The proprietor
has experience of over a decade in the packaging industry, and
has helped maintain healthy relations with customers and
suppliers.

Based in Goa, SP is proprietorship firm set up by Mr Rajesh
Bohra, and has been operational since September 2015. It
manufactures corrugated boxes.

The firm reported net loss and sales of INR0.07 crore and INR5.60
crore, respectively, during fiscal 2016.


SARAYA INDUSTRIES: Ind-Ra Puts Issuer Rating to D Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Saraya
Industries Limited's (SIL) 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 action are:

-- INR275 mil. Fund-based facilities (Long-term/Short-term)
    migrated to non-cooperating category with IND D(ISSUER NOT
    COOPERATING)/IND D (ISSUER NOT COOPERATING) rating;

-- INR355.85 mil. Term loan (Long-term) due on December 2018
    migrated to non-cooperating category with IND D(ISSUER NOT
    COOPERATING) rating; and

-- INR126 mil. Non-fund-based limit (Short-term) migrated to
    non-cooperating category with IND D(ISSUER NOT COOPERATING)
    rating.

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

COMPANY PROFILE

SIL is a closely held flagship company of a century old Saraya
Group. SIL manufactures sugar and rectified spirits, country
liquor and Indian-made foreign liquor.


SIKKIM ORGANICS: CRISIL Lowers Rating on INR12MM Cash Loan to B+
----------------------------------------------------------------
CRISIL has been consistently following up with Sikkim Organics
(SO) for obtaining information through letters, apart from
telephonic communication. Despite several emails and calls, the
firm has not submitted any information. CRISIL had, through a
senior director letter dated March 22, 2017, informed the firm of
extant guidelines and requested for cooperation. The issuer,
however, remains non-cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee         3.09      CRISIL A4 (Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL A4+')

   Cash Credit           12.00      CRISIL B+/Stable (Issuer Not
                                    Cooperating; Downgraded from
                                    'CRISIL BB-/Stable')

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.'

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SO. This restricts CRISIL's
ability to take a forward looking view on the firm's credit
quality. CRISIL believes the information available for SO is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL B Rating
category or lower.' Based on the last available information,
CRISIL has downgraded its ratings to 'CRISIL B+/Stable/CRISIL A4'
from 'CRISIL BB-/Stable/CRISIL A4+'.

Outlook: Stable

CRISIL believes SO will continue to benefit over the medium term
from the extensive experience of its proprietor. The outlook may
be revised to 'Positive' if scale of operations increases while
improving profitability, or better capital structure and working
capital cycle lead to a strong financial risk profile. The
outlook may be revised to 'Negative' if liquidity weakens because
of stretched working capital cycle or large, debt-funded capital
expenditure.

Set up in 2005 as a proprietorship concern by Mr. Sunil Jaiswal,
SO blends various organic and inorganic chemicals, mainly
condensate, toluene, benzene, and mineral turpentine oil.
Facility is in Manipur, Sikkim.


SURAJ PULSES: CRISIL Reaffirms B+ Rating on INR12MM Cash Loan
-------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank loan facilities of
Suraj Pulses (SP) at 'CRISIL B+/Stable/CRISIL A4'. The ratings
continue to reflect a below-average financial risk profile and
exposure to intense competition in the agricultural commodities
industry. These weaknesses are partially offset by the extensive
industry experience of the partners.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee          3        CRISIL A4 (Reaffirmed)

   Cash Credit            12        CRISIL B+/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility      1        CRISIL B+/Stable (Reaffirmed)

Key Rating Drivers & Detailed Description

Weakness

* Below-average financial risk profile: Large debt and low
profitability led to muted debt protection metrics. The interest
coverage ratio was 1.2-1.3 times for fiscal 2017, and the gearing
was high on a low networth of INR2.0-2.5 crore as on March 31,
2017.

* Exposure to intense competition in the agricultural commodities
industry: The scale of operations remains modest in an intensely
competitive industry that has many small and unorganised, and
large players. Also, limited value addition and the tender-based
nature of business constrain the operating margin. Furthermore,
as customers are mainly government departments, revenue is
susceptible to the ability to bid successfully for tenders.

Strengths

* Extensive industry experience of the partners: The partners
have an experience of over 15 years in the industry. This has
enabled them to bid successfully for tenders from various
government organisations, such as the armed forces. The extensive
experience of the partners should continue to help in getting
grants in a timely manner.

Outlook: Stable

CRISIL believes SP will continue to benefit from the industry
experience of, and funding support from, its partners. The
outlook may be revised to 'Positive' in case of sizeable cash
accrual, driven by improvement in profitability and scale of
operations, or significant capital infusion, leading to a better
financial risk profile. The outlook may be revised to 'Negative'
in case of deterioration in the financial risk profile,
particularly liquidity, because of low cash accrual, a stretched
working capital cycle, or substantial capital withdrawal.

SP was formed in 2002 as a partnership concern by Raipur,
Chhattisgarh-based Mr Rohit Goyal and six others. The firm
processes agricultural commodities such as moong dal, chana dal,
arhar dal, urad dal, and masoor dal.

The firm reported a net profit of INR0.69 cr on net sale of
INR142.8 cr in 2016-17, as against a net profit of INR0.24 cr on
net sale of INR42.9 cr in 2015-16.


SWASTIK COAL: CRISIL Lowers Rating on INR252MM Loan to 'D'
----------------------------------------------------------
CRISIL has been consistently following up with Swastik Coal
Corporation Private Limited (SCCPL) for obtaining information
through letters and emails dated Nov 21, 2016, and Jan 25, 2017,
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bill Discounting       9.85      CRISIL D (Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL BBB-/Stable')

   Cash Credit           15.00      CRISIL D (Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL BBB-/Stable')

   Letter of Credit     252.00      CRISIL D(Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL A3')

   Overdraft             18.15      CRISIL D (Issuer Not
                                    Cooperating; Downgraded
                                    from 'CRISIL BBB-/Stable')

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

CRISIL has downgraded its ratings on the bank facilities of SCCPL
to 'CRISIL D/CRISIL D' from 'CRISIL BBB-/Stable/CRISIL A3'.

The downgrade reflects CRISIL's inability in maintaining the
ratings of SCCPL at 'CRISIL BBB-/Stable/CRISIL A4+' due to
inadequate information and lack of management cooperation,
thereby restricting CRISIL from taking a forward looking view on
the credit quality of the entity. SCCPL scores high ('H') on
availability of past information on account of availability of
financial statements of the company. It scores low ('L') on
future information due to non- availability of financials. It
scores low ('L') on the stability attributes listed in CRISIL's
criteria for surveillance of ratings of non-cooperative issuers.

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SCCPL. The revision in rating
reflects expected weak liquidity of the company based on feedback
from its bankers confirming devolvement in non-fund based bank
lines that have not been regularized for more than 30 days. On
the basis of the aforementioned, CRISIL believes the available
information is consistent with a CRISIL D category rating,
leading CRISIL to downgrade the rating to 'CRISIL D'.


Analytical Approach
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SCCPL, Arka Carbon Fuels Pvt Ltd (Arka
Carbon), and Shree Ganpatlal Onkarlal Agarwal & Company (Shree
Ganpatlal). This is because the three entities, together referred
to as the Swastik group, are held and managed by the same
promoters and have operational and financial linkages.

SCCPL and Arka Carbon, based in Indore (Madhya Pradesh), trade in
indigenous and imported coal. The group also provides logistic
services through Shree Ganpatlal. Established in 1984 by members
of the Bindal family for trading in indigenous coal, the group is
now focused on imported coal; it both directly imports coal from
international suppliers and relies on merchant importers in
India.

Status of non-cooperation with previous CRA
SCCPL has not cooperated India ratings and research which marked
its ratings as issuer non-cooperative vide a release dated April
20th, 2017. The reason provided by India ratings and research was
delay in furnishing of information by SCCPL for monitoring the
ratings.

SCCPL has not cooperated with ICRA ratings which had suspended
its rating vide released dated December 30th, 2016. The reason
provided by ICRA ratings for suspension of ratings is non-
furnishing of information required for monitoring of ratings.


VISION FREIGHT: CRISIL Cuts Rating on INR9.5MM Cash Loan to D
-------------------------------------------------------------
CRISIL has downgraded its rating on the long term bank facilities
of Vision Freight Solutions India Private Limited (VFSIL) to
'CRISIL D' from 'CRISIL BB/Stable' and assigned its 'CRISIL D'
rating to the short term facility.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Bank Guarantee         0.5       CRISIL D (Downgraded from
                                    'CRISIL BB/Stable')

   Cash Credit            9.5       CRISIL D (Downgraded from
                                    'CRISIL BB/Stable')

   Standby Line of
   Credit                 1.0       CRISIL D (Assigned)

   Proposed Cash
   Credit Limit           2.08      CRISIL D (Assigned)

   Long Term Loan          2.42     CRISIL D (Assigned)

The downgrade reflects irregularity in paying instalments on term
loan due to stretched liquidity.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations
Scale of operations has been modest, with revenue estimated at
INR48.42 crore in fiscal 2017, and limits x bargaining power with
large corporate customers, thereby impacting profitability and
stretching receivables. Hence, any significant increase/decrease
in customer base and revenue will remain a rating sensitivity
factor over the medium term.

* Working capital-intensive operations
Operations are moderately working capital intensive, with gross
current assets (GCAs) estimated at 163 days as on March 31, 2017,
led by receivables of 151 days. Operations are likely to remain
working capital intensive over the medium term, with GCAs
expected to remain stable.

Strength

* Experience of promoters
The two decade-long experience of the promoters, helped add few
large corporates such as Dabur India Ltd, HCL Technologies Ltd,
Idea Cellular Ltd, and Singer India Ltd, to the customer profile,
and expand geographic presence with around 30 warehouses across
the country.

VFSIL was incorporated in 2005, by promoters, Mr Sunil Gupta and
Mr Anil Gupta, who currently manage operations, along with Mr
Yogendra Pratap Singh. The Jaipur-based company offers
warehousing and transportation services.

Net profit was estimated at INR1.28 crore on net sales of
INR48.42 crore in fiscal 2017, against INR1.11 crore and INR51.37
crore, respectively, in fiscal 2016.



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


SHARP CORP: S&P Raises CCR to B+ on Strong Operating Performance
----------------------------------------------------------------
S&P Global Ratings said that it has raised by two notches to 'B+'
from 'B-' its long-term corporate credit rating on Japan-based
electronics maker Sharp Corp. and has raised by one notch to 'B'
its senior unsecured debt rating on the company. We also raised
by two notches to 'B+' from 'B-' our long-term corporate credit
rating on overseas Sharp subsidiary Sharp International Finance
(U.K.) PLC. S&P said, "We affirmed our 'B' short-term corporate
credit and commercial paper programs on both companies. The
outlook on the long-term corporate credit ratings on both
companies is stable.

"We raised our long-term corporate credit rating on Sharp given
its operating performance has largely exceeded our assumptions
because of the benefits of cost reductions it has realized
steadily since joining Taiwan-based Hon Hai Precision Industry
Co. Ltd.'s (A-/Stable/--) corporate group in mid-2016. The
upgrade also reflects our expectation that a gradual recovery of
the company's ability to generate earnings and somewhat stabilize
its financial standing will continue for the next one to two
years thanks to its steps to stabilize earnings, mainly in its
liquid crystal display (LCD) business."

Since receiving a capital injection from Hon Hai in August 2016,
Sharp has enjoyed mutual benefits as part of the Hon Hai group,
mainly in the form of lower costs. Use of Hon Hai's supply chain
has allowed the company to reduce procurement costs, underpinning
a substantial recovery in operating performance in fiscal 2016
(ended March 31, 2017). S&P said, "Although fluctuations in
supply and demand are likely to produce volatility in the
earnings of its main LCD business, we expect Sharp to somewhat
improve and stabilize the business' ability to generate earnings
compared with previously. This is because Sharp is using Hon
Hai's network to expand its own customer base, and it is taking
steps to increase its operating rate by shifting its product mix
to items that enjoy relatively higher demand, such as camera
modules rather than commoditized LCD panels. We also think Sharp
will continue to generate stable profits from its home electric
appliance and copier businesses thanks to their unique
characteristics and its solid customer base. Nonetheless, Sharp
will not find it easy to maintain its market position and
competitiveness in the LCD market, where growth is slowing, in
our view, because of fierce competition with cash-rich Korean
electronics makers and Chinese rivals that have significantly
increased capacity. Furthermore, organic light emitting diode
(OLED) displays have rapidly expanded their share of the market
for high-definition and high-value-added displays, in which Sharp
has had strengths. Sharp plans to bring an OLED pilot production
line into operation by the end of fiscal 2017, but earnings
contributions from the OLED business will be very limited in the
immediate future, in our view. Also, its other areas of focus,
camera modules and electronic devices, are very susceptible to
market fluctuations, as is its LCD business. Accordingly, we
revised out assessment of Sharp's business risk profile to weak
from vulnerable."

Sharp recovered its capital base in fiscal 2016 with a capital
injection from Hon Hai and a narrower net loss. It also broke out
of negative net worth in fiscal 2016 with the completion of Hon
Hai's capital injection and applied to the Tokyo Stock Exchange
at the end of June 2017 to have its shares moved to the bourse's
first section from the current second section. S&P said, "If the
Tokyo Stock Exchange approves the move, Sharp's access to capital
markets will improve, allowing it more financial flexibility, in
our view. However, the company will begin to enhance its
production facilities--a task it put on the back burner while
performing poorly--which is likely to produce negative free
operating cash flow in fiscal 2017, in our view. Although we
expect Sharp's debt to EBITDA to recover to the lower-5x range in
fiscal 2017 from 5.9x the previous year, thanks to improved
operating rates and a recovery in profitability under Hon Hai,
Sharp's ability to generate cash flow is potentially vulnerable
to external conditions and is likely to remain weak. Accordingly,
we continue to assess Sharp's financial risk profile as highly
leveraged. Nonetheless, given ample cash at hand and our
expectation of moderately improving financial stability in the
future, we regard the company's financial risk profile as in the
upper end of the highly leveraged category.

"We assess Sharp's liquidity as less than adequate. Sharp has
received extensions on syndicated loans and retains Hon Hai's
capital injection as cash and deposits. As a result, we estimate
Sharp's liquidity sources over the next year will be at least
1.5x annual uses. However, the company's liquidity will continue
to come under pressure, in our view, because its funding remains
vulnerable to the attitudes of banks supporting the company as
well as to the prospect of increasing working capital
requirements. These factors constrain our assessment of the
company's liquidity as less than adequate."

S&P's base-case scenario for Sharp assumes the following:

-- Profits from the LCD business will increase year on year in
    fiscal 2017 because changes in the application of LCD panels
    and an enhanced customer base will far outstrip the effect of
    fierce competition and price declines;
-- Sound profitability will continue in copiers and home
    electric appliances in non-LCD segments;
-- Sharp will continue to utilize Hon Hai's supply chain and
    reduce costs; and
-- Annual capital investments will total about รน140 billion,
    including for an OLED pilot production line.

Under these base-case assumptions, S&P expects the following key
financial ratios for Sharp in fiscal 2017:

-- Operating profit of just over JPY80 billion and an EBITDA
    margin in the upper 6% range; and
-- Debt to EBITDA in about the lower-5x range and EBITDA
    interest coverage in the 8x-9x range.

S&P said, "Our assessments of Sharp's business risk and financial
risk profiles produce a stand-alone credit profile (SACP) of 'b'
for the company; the SACP excludes the likelihood of
extraordinary support from the Hon Hai group. Our corporate
credit rating on Sharp incorporates one notch of uplift for
support from Hon Hai, which has much higher creditworthiness than
Sharp. We make this adjustment because we believe Hon Hai is
likely to support Sharp if it is financially weakened, given
Sharp's importance to Hon Hai's medium- to long-term strategy,
under which Hon Hai aims to change its business model from its
current one as an electronics manufacturing service provider.

"Our rating on Sharp's senior unsecured debt is a notch lower
than the long-term corporate credit rating. To arrive at this
rating, we lower the senior unsecured debt rating on Sharp two
notches from the long-term corporate credit rating on the basis
of our estimate that priority liabilities, including secured
debt, account for about 40% of Sharp's total assets. We had also
incorporated two notches of uplift in the senior unsecured debt
rating, reflecting our expectation of continued support from
banks on the basis of Hon Hai's strong creditworthiness, but we
have narrowed the uplift to one notch in this latest rating
action. The somewhat stabilizing credit quality of Sharp under
Hon Hai leads us to believe that if the company defaults on any
of its debt, there is a slightly reduced possibility the company
will receive banks' support in the form of a debt-to-equity swap
(or a loan waiver).

"The stable outlook reflects our view that, amid a harsh
operating environment, Sharp will continue to reap the benefits
of its partnership with Hon Hai and will somewhat stabilize
earnings in its LCD business and gradually improve major
financial ratios. We also believe Sharp is able to increase
capital investments using capital Hon Hai injected.

"We might consider a downgrade if we see a heightened likelihood
of Sharp's operating profits decreasing substantially and its
EBITDA margin falling to and remaining below 6% despite support
from Hon Hai and cost reductions. This could occur primarily if
its LCD business loses competitiveness. We might also consider a
downgrade if we see a heightened likelihood of increased capital
investments causing widely negative free operating cash flow,
which would again erode the soundness of Sharp's capital base.

"Conversely, we might consider an upgrade if Sharp improves its
ability to generate cash flows by offsetting cash flow volatility
in its LCD business with cash flows from stable businesses and we
determine that debt to EBITDA will fall to and stay below 4x on a
sustained basis while Sharp retains abundant cash and deposits."



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


TOTAL DEBT: Liquidator Allowed to Recover Fees from Trust Account
-----------------------------------------------------------------
Taranaki Daily News reports that customers owed almost NZ$200,000
from a failed debt collection agency will not see a cent because
of the company's "extremely poor" book keeping, a court has
heard.

Taranaki Daily News relates that the company -- which was owned
by majority shareholder and sole director Tim Levchenko-Scott, of
Palmerston North, and Colin and Margaret Comber, of New
Plymouth -- owed customers NZ$191,075 but held only NZ$25,156 in
a bank trust account as money received from debtors.

According to the report, liquidators Malcolm Hollis and Wendy
Somerville applied to the High Court to retrieve payment of their
fees from the account, which was operated as a trust account by
TDS.

The liquidators, who were owed NZ$44,000 in fees, said the
booking was "extremely poor" and as a result they were unable to
determine which customers were entitled to money from the trust
account, the report relays.

Taranaki Daily News says the court was told the only way to find
out which customers were entitled to a share of the trust funds
would be to do a time consuming "retrospective tracing" of bank
statements -- the cost of which would exceed the funds in the
trust account.

According to the report, High Court Associate Judge John Matthews
said to do the reconciliation was "unrealistic".

"Even if the reconciliation was undertaken the claimants would
only receive less than 10 cents in the dollar," the report quotes
Judge Matthews as saying.  "The liquidators would also have no
prospect of receiving any sum on account of fees incurred to
date."

The money in the trust account was only enough to cover half the
liquidators' fees, he said.

In his decision Judge Matthews ordered the remaining funds from
the trust account to be used to pay expenses and fees of the
liquidators in spite of any reconciliation being undertaken, adds
Taranaki Daily News.

Total Debt Solutions went into liquidation in December 2015.



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


AVATION PLC: Fitch Affirms B+ Long-Term Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has affirmed Avation PLC's Long-Term Issuer Default
Rating (IDR) at 'B+' and assigned a 'B+' IDR to Avation Capital
S.A., Avation's unsecured debt issuing subsidiary. Fitch has also
re-classified Avation's senior unsecured debt under Avation
Capital S.A. and affirmed the rating at 'B+/RR4'. The Rating
Outlook is Stable.

These actions are being taken in conjunction with a broader
aircraft leasing industry peer review conducted by Fitch, which
includes eight publicly rated firms.

KEY RATING DRIVERS - IDR AND SENIOR DEBT

The affirmation of the IDR reflects Avation's current market
position as a lessor of turboprop and jet aircraft in the Asia-
Pacific and European regions. Credit strengths include the
company's young average fleet age of 2.8 years (excluding finance
leases) as of Dec. 31, 2016; supportive demand dynamics for the
majority of Avation's fleet; and operating performance that is
benefiting from favorable industry trends including growth in
passenger traffic and a continued shift by airlines toward
utilizing operating leases to meet their business needs.

These strengths are counterbalanced by Avation's limited
economies of scale and high aircraft concentration when compared
to larger lessors; the presence of niche aircraft in the
portfolio; exposure to certain lower credit quality lessees;
elevated balance sheet leverage as measured by gross debt to
tangible common equity coupled with continued fleet growth over
the near to medium term; a primarily secured funding profile; and
potential limitations in connection with corporate governance and
management depth.

Rating constraints applicable to the aircraft leasing industry
more broadly include the monoline nature of the business;
vulnerability to exogenous shocks; potential exposure to residual
value risk; sensitivity to oil prices; reliance on wholesale
funding sources; and increased competition.

Avation's fleet totaled 40 aircraft as of Dec. 31, 2016,
primarily composed of ATR72 500-600s. Despite recent pressures on
turboprop lease rates due to oversupply, demand for ATRs recently
increased in countries such as China and India to support
regional air travel (e.g. IndiGo signed a term sheet for 50 ATR
72-600s in May 2017), which may help stabilize lease rates over
the near term.

Longer term, ATR's turboprop market forecast projects 3.9% annual
traffic growth through 2035, driven by new route creations
(expected to comprise 50% of the growth), expansion of the
existing network, and upsizing to a larger capacity, particularly
in emerging markets. Fitch believes that turboprops benefit from
fuel efficiency and lower risks of technological change than
other regional jets due to the use of propeller engines, which
may reduce residual value risk. These dynamics supported
Avation's 100% utilization rate at Dec. 31, 2016.

Avation's overall performance and growth are expected to be
supported by additional aircraft deliveries, as the company had
nine aircraft on order as of Dec. 31, 2016. The company has took
delivery of one aircraft in June 2017 and has two other ATR 72-
600s on order for delivery in 2017. In the long term, Fitch
expects Avation's fleet to evolve as the company expands further
into more widely-utilized aircraft, as evidenced by its ownership
of 11 Airbus A320-200 and A321-200 aircraft. The company sold six
ATR72-600 aircraft to Chorus Aviation Inc. in March 2017 and may
use a portion of the sale proceeds for additional growth. Avation
also regularly examines growth via direct orders, sale and
leaseback transactions, and second hand aircraft acquisitions.

Avation has been profitable since inception with growing lease
revenue and consistent lease yields. As of Dec. 31, 2016,
Avation's lease yield was 10.6%, which was down from 12.2% at
Dec. 31, 2015 as the company has continued to reduce its fleet
age, thereby lowering risk. Fitch believes Avation's historically
elevated lease yields correspond to asset and lessee risk
associated with the company's primary focus on turboprop aircraft
which are often leased to weaker credit quality airlines.

All of Avation's airline customers remain current on lease
payments. As of Dec. 31, 2016, top lessees included Virgin
Australia Holdings Limited (35% of lease revenue), VietJet
Aviation Joint Stock Company (25%), Flybe Group plc (11%), Thomas
Cook Group plc (10%; Fitch IDR of 'B'/Positive Outlook) and Air
India Limited (5%). The devaluation of the British Pound
following the Brexit vote last year has negatively influenced
Flybe and Thomas Cook's operating results, though moderate oil
prices have supported these airlines' earnings.

Avation's leverage, calculated as gross debt to tangible common
equity, has been increasing over the past several years and was
4.1x as of Dec. 31, 2016, which is higher than peers and up from
3.6x as of June 30, 2016 and 3.4x as of June 30, 2015. The
increase in leverage was expected by Fitch, as the company has
used the proceeds from debt issuances to grow its fleet base.
While leverage initially declined given proceeds from the sale of
six ATR72-600 aircraft, the company subsequently issued $20
million of senior notes as a tack-on to its May 2015 offering of
$100 million 7.5% notes due 2020. Fitch anticipates that leverage
will remain just below 4.0x over the long term.

While the issuances of unsecured notes diversified the company's
funding profile and demonstrated access to the unsecured markets,
secured funding comprised 86.8% of Avation's debt as of Dec. 31,
2016. Avation's high proportion of secured debt constrains the
company's financial flexibility. The $20 million senior notes
tack-on lowered secured debt to 84.5% of total debt using Dec.
31, 2016 balances, all else being equal.

The Stable Outlook reflects Fitch's view that while Avation is
benefitting from supportive demand dynamics for its fleet, modest
diversification and incremental unsecured debt, the rating
remains constrained by Avation's limited economies of scale when
compared to larger lessors, primarily secured funding profile,
and evolving aircraft portfolio.

Fitch has assigned an IDR of 'B+' to Avation Capital S.A., the
issuer of the unsecured debt, which is guaranteed by Avation PLC.
The affirmation of the unsecured debt ratings at 'B+/RR4'
maintains the equalization with the company's IDR, reflecting
Fitch's continued expectation of average recoveries for the
senior unsecured debtholders.

RATING SENSITIVITIES- IDR AND SENIOR DEBT

Avation's IDR and senior unsecured debt ratings could be
positively influenced by improved fleet, geographic and/or lessee
diversification, provided such actions are undertaken at a
moderate pace and do not adversely affect underwriting or pricing
terms. Reduced leverage, increased utilization of unsecured
funding sources, improved scale efficiencies and continued
demonstration of residual-value risk management would also be
viewed positively.

The ratings could be adversely affected by the credit
deterioration of underlying lessees, particularly those which
represent a meaningful portion of Avation's portfolio, which
could result in lower revenue yields and the need to redeploy
aircraft. Factors that could also lead to negative rating
momentum include: maintenance of leverage between 4.0x-5.0x over
the long term; rapid expansion that is not accompanied by
consistent underwriting standards and commensurate growth in
capital levels and staffing; deterioration in residual value
realizations; or an inability to successfully navigate market
downturns.

The ratings assigned to the senior unsecured debt could be
notched below Avation's IDR should secured debt increase to such
an extent that expected recoveries to the senior unsecured debt
were adversely affected.

Fitch has affirmed the following rating:

Avation PLC
-- Long-term IDR at 'B+'.

Fitch has assigned the following rating:
Avation Capital S.A.
-- Long-Term IDR 'B+'.

Fitch has reclassified and affirmed the following rating under
Avation Capital S.A., which is guaranteed by Avation PLC:
-- Senior unsecured debt at 'B+/RR4'.

The Rating Outlook is Stable.

Avation is a Singapore-headquartered commercial passenger
aircraft leasing company focused on turboprop and jet aircraft in
the Asia-Pacific and European regions. As of Dec. 31, 2016, its
fleet contained 24 ATR72 500-600s and 16 narrow-body regional
jets (A320-321s and F100s). The company was incorporated in
England and Wales in 2006 and is listed on the London Stock
Exchange under the ticker AVAP.


TRANSPORTATION PARTNERS: Fitch Affirms B- Long-Term IDR
-------------------------------------------------------
Fitch Ratings has affirmed the long-term Issuer Default Rating
(IDR) of Transportation Partners Pte. Ltd. (TP) at 'B-'. The
Rating Outlook is Stable. Fitch has also withdrawn the 'B-
(EXP)/RR4' rating assigned to the unsecured debt, as the bond
issuance was cancelled.

These rating actions are being taken in conjunction with a
broader aircraft leasing industry peer review conducted by Fitch,
which includes eight publicly rated firms. There have been no
material changes to TP's credit profile since Fitch assigned
first-time ratings on May 16, 2017.

KEY RATING DRIVERS

IDR AND SENIOR DEBT

The IDR is supported by TP's relatively young and liquid
commercial aircraft portfolio; cash flow generation supported by
solid lease yields; adequate interest coverage of near-term debt
obligations; and low leverage for the rating.

The IDR is constrained by elevated key-man risk linked to one of
TP's co-founders; weaker corporate governance relative to larger,
listed peers; material customer concentrations related to Lion
Air Group and its affiliates; funding and placement risks
associated with TP's outsized order book which can be placed with
the Lion Air Group of airlines for their external financing; an
untested credit risk management framework relative to peers; and
lack of financial performance track record through credit and
aviation cycles.

Rating constraints applicable to the aircraft leasing industry
more broadly include the monoline nature of the business;
vulnerability to exogenous shocks; potential exposure to residual
value risk; sensitivity to oil prices; reliance on wholesale
funding sources; and increased competition.

Elevated key-man risk resides with one of TP's co-founders, Rusdi
Kirana, who is also the co-founder and co-owner of Jakarta-based
airline, Lion Air. While key-man risk is not uncommon for
aircraft lessors rated by Fitch, Kirana is actively involved in
all aspects of TP's business, including advising management on
the strategic direction and providing oversight of the business,
which includes TP and its largest customers (airlines affiliated
with Lion Air Group).

Fitch believes TP has a weaker corporate governance framework, as
evidenced by a lack of independent director membership and
numerous related party transactions. The Chief Executive Officer
and Chief Financial Officer roles are also currently being shared
on an interim basis, but are expected to be filled during the
course of 2017. Fitch would view a strengthened corporate
governance framework favorably.

TP's fleet totaled 65 aircraft, 10 engines and one helicopter, as
of Dec. 31, 2016. The aircraft portfolio primarily comprised
narrowbody and turboprop aircraft with an average age of 2.5
years, which is among the lowest when compared to aircraft
lessors rated by Fitch. The ATR72-500/600 aircraft, which
represented 63.5% of TP's total net book value (NBV), have
experienced a resurgence in orders over the past few years
primarily driven by favorable operating economics. Though viewed
by Fitch as niche, these planes have an established operator
base, and, compared to regional jets, ATRs are more fuel
efficient and less exposed to technological disruption.

TP's near-term performance and growth is expected to be supported
by modest additional ATR deliveries, but in the medium- to
longer-term, Fitch expects the fleet to evolve as the lessor
expands further into widely-utilized aircraft, as evidenced by
TP's impending deliveries of current and next-generation Boeing
B737 and Airbus A320 family aircraft. Still, the order book is
aggressive, in Fitch's view, and as of Dec. 31, 2016 represented
475 aircraft with staggered deliveries through 2035, translating
to 731% growth of the existing fleet. TP has the option to not
take deliveries, electing to place its near-term deliveries with
Lion Air Group's airlines for their external financing.

As of Dec. 31, 2016, TP's portfolio was highly concentrated in
Lion Air Group and its affiliates. TP's asset quality performance
has been solid to date, as the firm has not taken an impairment
charge on its portfolio. Nevertheless, the firm's financial
performance and credit risk management framework have not been
tested through a credit cycle given its inception in 2011. TP's
lessee concentrations represent a constraint to the IDR, due to
the non-investment grade credit profile of many of its airlines,
though not uncommon among aircraft lessors. Management is seeking
to diversify its customer base through the placement of its order
book deliveries with third-party airlines in the medium term.
However, Fitch believes there is execution risk with the ability
of TP to successfully diversify away from affiliate airlines, as
well as the competitiveness of the overall aircraft leasing
environment, which could pressure lease pricing, and ultimately
earnings in the medium term.

The company has been profitable since inception with growing
lease revenue and stable lease yields. In 2016, TP reported
favorable net income margins (NIMs) relative to peers, which are
attributed to the combination of higher lease yields and
relatively lower funding costs associated with its secured
funding profile. Fitch believes TP's favorable lease yields also
correspond to asset and/or lessee risk associated with the
company's turboprop aircraft which are often leased to smaller,
regional airlines. Nevertheless, Fitch expects current NIMs and
interest coverage metrics will normalize to 15.8% and 3x,
respectively in the medium term, as the firm shifts its funding
profile toward unsecured funding, which is relatively more
expensive compared to securitizations, and other forms of secured
funding.

Given operating cash flow generation is supported by long-term
contractual lease terms, TP has sufficient liquidity and cash
balances to support near-term debt maturities. However, Fitch
believes TP remains exposed to potential funding risk associated
with its sizeable order book commitments, with deliveries through
2035.

Leverage, calculated as total debt to tangible equity, was 3.28x
as of Dec. 31, 2016. This ratio is expected to remain relatively
stable, as cash flow from underlying lease payments is used to
repay outstanding secured borrowings to deleverage the balance
sheet, but will be offset by additional borrowings as TP funds
its order book over time. Fitch believes TP's leverage is
consistent with peers, and the assigned rating given the
company's monoline business model, as well as its current revenue
and customer concentrations.

The USD denominated unsecured debt is rated 'B-'/RR4, equalized
with TP's IDR of 'B-', reflecting the firm's predominately
secured funding profile and Fitch's expectations for average
recovery prospects for unsecured debtholders in a stressed
scenario.

The Stable Outlook reflects Fitch's expectations of stable
operating cash flow generation supported by solid lease yields;
maintenance of a portfolio of relatively young, liquid aircraft;
and relatively low leverage for the rating.

RATING SENSITIVITIES
IDR AND SENIOR DEBT

TP's ratings could be positively influenced by an improved
corporate governance framework; the ability to place the order
book deliveries in a manner that provides additional geographic
and/or lessee diversification, provided such actions do not
adversely affect underwriting or pricing terms; demonstration of
credit risk and residual value management; improved scale
efficiencies; increased funding flexibility; and maintenance of
leverage below 3.0x.

The IDR could be adversely affected by credit deterioration of
underlying lessees, particularly those which represent a
meaningful portion of TP's portfolio; maintenance of leverage
above 5.0x over the long term; inability to fund and place order
book deliveries; rapid expansion that is not accompanied by
consistent underwriting standards and commensurate growth in
capital levels and staffing; deterioration in residual value
realizations and/or an increase in impairments; or the inability
to successfully navigate market downturns.

The ratings of the unsecured debt are sensitive to changes to
TP's IDR and the level of unencumbered balance sheet assets
relative to outstanding debt. The unsecured debt ratings could be
notched from the IDR should secured debt increase and/or the
level of unencumbered assets decrease to such an extent that
expected recoveries on the senior unsecured debt were adversely
affected.

TP is a specialized aircraft leasing company formed in 2011 and
based in Singapore. The company has a narrowbody and turboprop
portfolio totaling 65 aircraft on lease with total assets
amounting to USD2.3 billion, as of Dec. 31, 2016.

Fitch has taken the following rating actions:

Transportation Partners Pte. Ltd.
-- Long-term IDR affirmed at 'B-';
-- Senior unsecured debt withdrawn at 'B-(EXP)/RR4'.

The Rating Outlook is Stable.



================
S R I  L A N K A
================


PEOPLE'S LEASING: Fitch Affirms 'B' LT Issuer Default Rating
------------------------------------------------------------
Fitch Ratings has affirmed the ratings of the following finance
companies:

- People's Leasing & Finance PLC (PLC)
- Central Finance Company PLC (CF)
- Melsta Regal Finance Ltd (MRF)
- HNB Grameen Finance Limited (HGL)
- LB Finance PLC (LB)
- Siyapatha Finance PLC (Siyapatha)
- Senkadagala Finance PLC (Senka)
- AMW Capital Leasing And Finance PLC (AMWCL)
- Singer Finance (Lanka) PLC (SFL)
- Mercantile Investments and Finance PLC (MIF)

In addition, Fitch assigned Siyapatha's proposed subordinated
debentures an expected rating of 'BBB+(lka)(EXP)'.

KEY RATING DRIVERS
IDRS, NATIONAL RATINGS AND SENIOR DEBT

The rating actions follow Fitch's periodic review of the large
and mid-sized finance companies in Sri Lanka.

Fitch expects capitalisation in the sector to come under pressure
as a result of asset quality pressures stemming from a
challenging operating environment and unfavourable weather
conditions and declining profitability due to higher funding and
credit costs. Fitch sees that the shift in the business mix of
the entities considered in this peer review has become more
apparent given the slowdown in the vehicle financing segment
following the increase in import tariffs, imposition of lower
allowable loan-to-value ratios coupled with a high interest rate
environment. Licensed finance companies have increasingly engaged
in term/working capital financing - a segment that Fitch believes
is more risky due to larger transaction amounts and poor
collateral such as third-party guarantees or post-dated cheques.

Fitch's ratings on the finance companies in the peer group are
primarily driven by their business model, franchise and risk
appetite, which is reflected in their exposure to more vulnerable
customer segments.

Finance Companies with Institutional Support-Driven Long-Term
Ratings
PLC's Issuer Default Rating and National Long-Term Rating reflect
Fitch's view that PLC's parent, the state-owned and systemically
important People's Bank (Sri Lanka) (PB: AA+(lka)/Stable) would
provide PLC with extraordinary support, if required. PB's
propensity to support PLC stems from its role in the group as a
strategically important subsidiary and the high reputational risk
to PB should PLC default as PB owns 75% of PLC and they share a
common brand. PB's ability to provide support to PLC is limited,
and stems from Sri Lanka's rating of 'B+'/Stable.

PLC accounted for 10.1% of PB's assets and contributed 25.5% to
PB's post-tax profit for the quarter ended March 2017. In
addition to its own branches, PLC has 101 window offices within
PB's branches and has board representation from PB.

MRF's rating reflects Fitch's expectation of support from its
group through MRF's parent Melstacorp PLC (MC). The Rating Watch
Negative (RWN) reflects Fitch's assessment that MC's ability to
provide support to MRF is dependent on the resolution of the RWN
on Distilleries Company of Sri Lanka PLC (DIST: AAA(lka)/RWN), a
significant subsidiary within the group. Fitch expects capital
support from MC for MRF to meet the enhanced regulatory minimum
capital requirement imposed by the regulator.

MRF is of limited strategic importance to the group and the level
of its operational integration within the consolidated group's
core business is low. MRF accounted for just 1.3% of group pre-
tax profit and 5.1% of group assets at financial year end-March
2017. Fitch believes that the disposal of MRF would not
significantly alter the group's operations or earnings, although
that is not currently in MC's plans.

HGL's rating reflects Fitch's expectation of support from its
parent, Hatton National Bank PLC (HNB; AA-(lka)/Stable), Sri
Lanka's fourth-largest domestic commercial bank. This view is
based on HNB's majority shareholding (51%), its involvement in
the strategic direction of HGL through board representation and
the common HNB brand.

The two-notch differential reflects HGL's limited role in the
group. HGL is mainly engaged in microfinance, which is not a
significant product for HNB. Furthermore, there is limited
operational integration between the entities.

AMWCL's rating reflects Fitch's view that support would be
forthcoming from Associated Motorways Private Limited (AMW),
which owns 90% of AMWCL, given the finance company's strategic
importance to the parent. This is based on AMWCL's role in the
group, the common AMW brand and the existence of common
creditors, which mean high reputational risk for AMW if AMWCL
were to default. About 75% of its advances comprised vehicle
finance facilities provided to its parents' clients at end-March
2017 (end-2015: 74% and 2014: 46%). AMWCL also benefits from
business referrals from AMW's branch network and has 11 branches
within AMW's branches.

Siyapatha's rating reflects Fitch's view that support would be
forthcoming from its parent, Sampath Bank PLC (A+(lka)/Negative),
which owns 100% of Siyapatha and is involved in the strategic
direction of Siyapatha through board representation. Siyapatha is
rated two notches below its parent because of Siyapatha's limited
contribution to the group's core businesses; group leasing book
accounted for just 7% of group advances at end-2016, of which
Siyapatha provided 42%. In addition Siyapatha's contribution to
group profit remains low and Siyapatha is branded independently
from its parent.

Finance Companies with Long-Term Ratings Driven by Intrinsic
Strength
CF's rating reflects its strong capitalisation supported by its
above-industry profitability and retention rates. CF's regulatory
Tier-1 ratio improved to 32.3% at the end of the financial year
to March 2017 (29.9% as at end-FY16), maintaining its position as
the highest capitalised non-bank financial institution among
Fitch rated peers. However, these strengths are counterbalanced
to an extent by its still-weak asset quality relative to similar
rated peers, high risk appetite stemming from its loan book
concentration to registered three-wheelers and potential pressure
on profitability from a weakening market share. Even though CF's
asset quality and provisioning have been improving, they still
remain weaker compared with similar rated peers.

LB's rating reflects its established franchise and satisfactory
capital levels supported by sound profitability from its higher-
yielding products. These are counterbalanced by its higher risk
appetite given high exposure to gold-backed lending. Fitch
believes this exposure has so far been managed through active
monitoring and risk-control measures. However, an unexpected
sharp decline in gold prices could pressure its asset quality.
The ratings also reflect its increasing liquidity risk given its
high loan growth relative to its assets (gross loans to total
assets: 89% at end-March 2017), which could potentially reduce
its liquidity buffer.

Senka's rating reflects the satisfactory credit profile that it
has maintained through economic cycles, its relatively strong
franchise among finance companies in Sri Lanka and better matched
maturity gaps. These positive factors are counterbalanced by its
deposit base and capitalisation, which are weaker compared with
higher rated peers. Senka's asset quality has been satisfactory
with key ratios such as the regulatory gross NPL ratio improving
to 1.64% at end-FY17 (end-FY16: 2.02%). However, Fitch sees that
there are still downside risks to asset quality given Senka's
high gross loan growth of 40% in FY17 (FY16: 24%). A rights issue
of LKR580 million in April 2017 helped improve the regulatory
Tier-1 capital adequacy ratio to 16.44% after falling to 14.19%
at end-FY17 (end-FY16: 15.98%) as a result of high loan growth.

SFL's rating reflects its relatively measured risk appetite,
weaker-than-peers franchise and overall stable financial
indicators. SFL's capitalisation is higher than that of its
similar rated peers amid modest loan growth, and its asset-
quality metrics have improved. The rating is underpinned by
Fitch's view that the rating on SFL's parent, retailing company
Singer (Sri Lanka) PLC (Singer; A-(lka)/Stable), provides a floor
for SFL's rating that is two notches below. This reflects
Singer's majority ownership in SFL, the common Singer brand and
Singer's influence on SFL's strategic direction through
representation on the finance company's board.

MIF's rating reflects its high risk appetite, stemming from
weaker underwriting standards, declining profitability relative
to peers and greater reliance on concentrated and short-term
funding. MIF's rating also captures its long operating history,
satisfactory capitalisation and loan book exposure to less risky
customer segments relative to peers. Fitch estimates the six-
month regulatory gross NPL ratio to have increased sharply to
nearly 7% by end-March 2017 from 3.4% in FY16 after two new large
defaults which are backed by collateral. The company's
capitalisation metrics remain supportive to its current rating
levels. However, any NPLs without provisions could weaken capital
buffers.

The ratings on the senior debentures of PLC, CF, Senka, SFL, MIF
and Siyapatha are in line with their National Long-Term Ratings
according to Fitch criteria. Fitch has not provided any rating
uplift for the collateralisation of CF's and SFL's secured notes
as their recovery prospects are considered to be average and
comparable with those of unsecured notes in a developing legal
system.

SUBORDINATED DEBT

Subordinated debentures of CF, LB, Senka and Siyapatha and the
proposed subordinated debentures of Siyapatha are rated one notch
below their National Long-Term Ratings to reflect the
subordination to senior unsecured creditors. The final rating on
Siyapatha's debentures is subject to the receipt of final
documentation conforming to information already received.

RATING SENSITIVITIES
IDRS, NATIONAL RATINGS AND SENIOR DEBT

Finance Companies with Institutional Support Driven Long-Term
Ratings
A downgrade of PLC's IDR and National Ratings would occur if PB's
ability to support PLC were to weaken or PB were to cede its
majority ownership in PLC, or if PLC's strategic importance to
its parent were to diminish over time, which would reflect a
reduced propensity to support PLC, but Fitch does not anticipate
this in the foreseeable future. PLC's ratings are also sensitive
to changes in the sovereign rating, as this would affect PB's
ability to provide support to PLC.

The ratings on AMWCL, Siyapatha, and HGL are similarly sensitive
to changes in Fitch's assessment of their respective parents'
ability and propensity to provide support, none of which is
expected by Fitch to change materially in the short to medium
term.

The resolution of MRF's RWN will depend on the resolution of the
RWN on DIST and the ability of Fitch to form an opinion of the
restructuring's full impact on MC's credit profile.

Finance Companies with Long-Term Ratings Driven by Intrinsic
Strength
The rating of CF could be upgraded if its risk appetite
moderates, which Fitch does not expect in the medium term.
However, CF's rating could be downgraded if it is not able to
provide a buffer against further loan quality deterioration
through provisioning and further continuous decline in its market
share which could pressure future profitability.

Downgrade triggers for LB include capital pressures stemming from
weaker profitability, increase in liquidity risk or a further
increase in risk appetite. This could be indicated through
aggressive loan growth or deterioration in asset quality. An
upgrade of LB's rating is contingent on the company achieving
stronger capitalisation levels, lower exposure to risky assets
and a more comfortable liquidity position.

An upgrade of Senka's rating is contingent upon the company
sustaining stronger capital levels and a more robust deposit
franchise that would allow the company to expand in a controlled
manner. Rating could be downgraded if its asset quality weakens,
leading to a significant decline in capitalisation or excessive
asset encumbrance.

An upgrade of SFL's ratings from an improvement in its standalone
strength is unlikely as Fitch expects its franchise to remain
materially weaker compared with that of its more established,
higher-rated peers. The more likely driver of an upgrade of SFL's
rating would be its relationship with its parent, in particular
its strategic importance to Singer. A sustained deterioration in
SFL's standalone credit profile in terms of its capitalisation
and asset quality relative to similarly rated peers would not
result in a downgrade of SFL's rating unless Fitch assessments of
parental support were to also change.

MIF's ratings could be downgraded if its large maturity
mismatches were to increase or if MIF were to experience an
increase in capital impairment risks due to sustained
deterioration in profitability and asset quality relative to
better rated peers. An upgrade of MIF's ratings is contingent
upon a moderation of its risk appetite as seen through better
underwriting standards and risk controls alongside improvements
in asset quality and profitability.

The ratings on the senior debt of PLC, CF, Senka, SFL, MIF and
Siyapatha will move in tandem with their National Long-Term
Ratings.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

The assigned subordinated debt ratings will move in tandem with
their National Long-Term Ratings.

FULL LIST OF RATING ACTIONS

The following ratings were affirmed:

People's Leasing & Finance PLC:
Long-Term Foreign-Currency Issuer Default Rating at 'B'; Outlook
Stable
Long-Term Local-Currency Issuer Default Rating at 'B'; Outlook
Stable
National Long-Term Rating at 'AA-(lka)'; Outlook Stable
National Long-Term Rating for senior unsecured debt at 'AA-(lka)'

Central Finance Company PLC:
National Long-Term Rating at 'A+(lka)'; Outlook Stable
National Long-Term Rating for senior secured debt at 'A+(lka)'
National Long-Term Rating for senior unsecured debt at 'A+(lka)'
National Long-Term Rating for subordinated debt at 'A(lka)'

Senkadagala Finance PLC
National Long-Term Rating at 'BBB+(lka)'; Outlook Stable
National Long-Term Rating for senior unsecured debt at
'BBB+(lka)'
National Long-Term Rating for subordinated debt at 'BBB(lka)'

Singer Finance (Lanka) PLC
National Long-Term Rating at 'BBB(lka)'; Outlook Stable
National Long-Term Rating for senior secured debt at 'BBB(lka)'
National Long-Term Rating for senior unsecured debt at 'BBB(lka)'

AMW Capital Leasing And Finance PLC
National Long-Term Rating at 'BBB+(lka)'; Outlook Stable

Siyapatha Finance PLC
National Long-Term Rating at 'A-(lka)'; Outlook Negative
National Long-Term Rating for senior unsecured debt at 'A-(lka)'
National Long-Term Rating for subordinated debt at 'BBB+(lka)'
National Long-Term Rating for proposed subordinated debt at
'BBB+(lka)(EXP)'

Melsta Regal Finance Ltd:
National Long-Term Rating at 'A+(lka)'; Rating Watch Negative

HNB Grameen Finance Ltd.:
National Long-Term Rating at 'A(lka)'; Outlook Stable

LB Finance PLC:
National Long-Term Rating at 'A-(lka)'; Outlook Stable
National Long-Term Rating for subordinated debt at 'BBB+(lka)'

Mercantile Investments and Finance PLC
National Long-Term Rating at 'BBB-(lka)'; Outlook Stable
National Long-Term Rating for senior unsecured debt at 'BBB-
(lka)'



                             *********

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, Ivy B. Magdadaro and
Peter A. Chapman, Editors.

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

This material is copyrighted and any commercial use, resale or
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