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        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

            Monday, September 4, 2017, Vol. 20, No. 175

                            Headlines


A U S T R A L I A

CRUSADE ABS 2013-1: Fitch Affirms BB Rating on Class E Notes
QUINTIS LTD: S&P Lowers CCR to 'D' on Missed Interest Payment


C H I N A

BIOSTAR PHARMA: Receives Nasdaq Listing Non-Compliance Notice
BIOSTAR PHARMACEUTICALS: Receives Deficiency Notice From Nasdaq
CHINA EVERGRANDE: Drop in Leverage in 1H17 Backs Fitch B+ Rating
GREENLAND HK: 1H 2017 Results Within Expectations, Moody's Says
RONSHINE CHINA: S&P Revises Outlook to Neg., Affirms B LT CCR


I N D I A

AL GAYATHRI: Ind-Ra Migrates BB+ Issuer Rating to Not Cooperating
BINAYAK HI-TECH: Ind-Ra Moves BB Issuer Rating to Not Cooperating
CRD FOODS: Ind-Ra Migrates B+ Issuer Rating to Not Cooperating
DTC SECURITIES: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
GOPALA POLYPLAST: Ind-Ra Affirms BB Issuer Rating, Outlook Stable

HAQ ENTERPRISES: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
HAQ STEELS: Ind-Ra Affirms BB LT Issuer Rating, Outlook Stable
HT GLOBAL: S&P Affirms BB- CCR & Senior Secured Notes Rating
IRAKI TRADING: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
RAMESH CHANDRA: Ind-Ra Moves B+ Issuer Rating to Not Cooperating

SHASHANK NIDHI: Ind-Ra Moves BB- Issuer Rating to Not Cooperating
TARUN ENTERPRISE: Ind-Ra Affirms BB Issuer Rating, Outlook Stable


I N D O N E S I A

MEDCO ENERGI: Fitch Assigns Final 'B' Rating to US$400MM Notes


N E W  Z E A L A N D

NELSON BUILDING: Fitch Affirms B Short-Term Foreign Currency IDR


S I N G A P O R E

CONTINUUM WIND: Fitch Withdraws B+ Rating on USD Senior Notes


V I E T N A M

BANK FOR FOREIGN TRADE: S&P Affirms 'BB-/B' ICR, Outlook Stable
BANK FOR INVESTMENT: S&P Affirms 'B+/B' ICR, Outlook Stable
VIETNAM JOINT: S&P Alters Outlook to Negative & Affirms BB-/B ICR
VIETNAM TECHNOLOGICAL: S&P Revises Rating Outlook to Stable


                            - - - - -


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A U S T R A L I A
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CRUSADE ABS 2013-1: Fitch Affirms BB Rating on Class E Notes
------------------------------------------------------------
Fitch Ratings has affirmed 21 tranches of notes from four Crusade
ABS Series transactions. The transactions are securitisations of
Australian auto receivables originated by St. George Finance
Limited and Westpac Banking Corporation (AA-/Stable).

KEY RATING DRIVERS

The affirmations reflect Fitch's view that the available credit
enhancement is sufficient to support the notes' current rating,
and the agency's expectations of Australia's economic conditions.
Credit quality and performance of the underlying receivables have
also remained within the agency's expectations. Total net losses
after the sale of collateral have been in line with Fitch's base
cases to date and excess spread has been more than sufficient to
cover any losses incurred.

At the end of July 2017, all transactions, except Crusade ABS
2017-1 Trust, had 30+ days arrears above the Fitch's 1Q17 Dinkum
ABS Index for Australia of 1.6%. Net losses have been below 1.1%
of total assets for all transactions - below Fitch's modelled
expectations at closing. Strong excess spread since closing has
covered all realised losses.

Crusade ABS 2017-1 Trust has a 12-month revolving period that ends
in April 2018. All principal proceeds to date have been allocated
or retained to purchase additional receivables. Crusade ABS Series
2013-1 Trust, Crusade ABS Series 2015-1 Trust and Crusade ABS
Series 2016-1 Trust are currently amortising and the principal
proceeds are allocated to noteholders on a pro-rata basis.

RATING SENSITIVITIES

Net losses have been low therefore a rating downgrade is remote
given the performance. Unexpected increases in delinquencies,
defaults and losses would be necessary before Fitch would consider
negative rating action.

The full list of rating actions are:

Crusade ABS Series 2013-1 Trust:
AUD134.3 million Class A notes affirmed at 'AAAsf'; Outlook Stable
AUD7.9 million Class B notes affirmed at 'AAsf'; Outlook Stable
AUD5.9 million Class C notes affirmed at 'Asf'; Outlook Stable
AUD4.8 million Class D notes affirmed at 'BBBsf'; Outlook Stable
AUD2.8 million Class E notes affirmed at 'BBsf'; Outlook Stable

Crusade ABS Series 2015-1 Trust:
AUD289.2 million Class A notes affirmed at 'AAAsf'; Outlook Stable
AUD17.8 million Class B notes affirmed at 'AAsf'; Outlook Stable
AUD12.9 million Class C notes affirmed at 'Asf'; Outlook Stable
AUD11.4 million Class D notes affirmed at 'BBBsf'; Outlook Stable
AUD7.1 million Class E notes affirmed at 'BBsf'; Outlook Stable

Crusade ABS Series 2016-1 Trust:
AUD928.3 million Class A notes affirmed at 'AAAsf'; Outlook Stable
AUD57.3 million Class B notes affirmed at 'AAsf'; Outlook Stable
AUD45.8 million Class C notes affirmed at 'Asf'; Outlook Stable
AUD32.1 million Class D notes affirmed at 'BBBsf'; Outlook Stable
AUD22.9 million Class E notes affirmed at 'BBsf'; Outlook Stable

Crusade ABS Series 2017-1 Trust:
AUD741 million Class A1 notes affirmed at 'AAAsf'; Outlook Stable
AUD1,000 million Class A2 notes affirmed at 'AAAsf'; Outlook
Stable
AUD108 million Class B notes affirmed at 'AA+sf'; Outlook Stable
AUD86 million Class C notes affirmed at 'Asf'; Outlook Stable
AUD60 million Class D notes affirmed at 'BBBsf'; Outlook Stable
AUD36 million Class E notes affirmed at 'BB+sf'; Outlook Stable


QUINTIS LTD: S&P Lowers CCR to 'D' on Missed Interest Payment
-------------------------------------------------------------
S&P Global Ratings today said it has lowered its long-term
corporate credit rating on Quintis Ltd. to 'D' from 'CCC-'. At the
same time, S&P lowered the rating on the company's senior secured
notes to 'D' from 'CCC-'.

S&P said, "We lowered the ratings because we consider Quintis had
defaulted on its interest payment. The company failed to make the
interest payment of its US$250 million 8.75% senior secured notes
within a 30-day grace period from the initial interest payment
date of Aug. 1, 2017.

"We believe the company has entered into a forbearance agreement
with noteholders, where interest will not be paid and principal
payment will not be accelerated. Nevertheless, in our view, the
missed interest payment constitutes a default."

The ratings will remain on 'D' until the outstanding senior
secured notes have been restructured.



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C H I N A
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BIOSTAR PHARMA: Receives Nasdaq Listing Non-Compliance Notice
-------------------------------------------------------------
Biostar Pharmaceuticals, Inc. on Aug. 22, 2017 received a
notification letter from Nasdaq Listing Qualifications ("Nasdaq")
advising the Company that, since it had not filed its Quarterly
Report on Form 10-Q for the fiscal year ended June 30, 2017, the
Company was not in compliance with Nasdaq Listing Rule 5250(c)(1)
for continued listing. The Company is required within 60 calendar
days of the Nasdaq notification to submit a plan of compliance
with the foregoing continued listing deficiency. If the Company's
plan is approved by the Nasdaq staff, the Company may be eligible
for a listing exception of up to 180 calendar days (or until
February 12, 2018) to regain compliance. If the Nasdaq staff
concludes that the Company will not be able to cure the
deficiency, or if the Company determines not to submit the
required materials or make the required representations, the
Company's common stock will be subject to delisting by Nasdaq.

Based in Xianyang, China, Biostar Pharmaceuticals, Inc.
(NASDAQ: BSPM) develops, manufactures and markets pharmaceutical
and health supplement products for a variety of diseases and
conditions.

For the year ended Dec. 31, 2016, the Company reported a net loss
of $5.69 million for the year ended Dec. 31, 2016, compared to a
net loss of $25.11 million for the year ended Dec. 31, 2015. As of
March 31, 2017, Biostar had $41.49 million in total assets, $5.31
million in total liabilities, all current, and $36.18 million in
total stockholders' equity.

Mazars CPA Limited, Certified Public Accountants, in Hong Kong,
issued a "going concern" qualification on the consolidated
financial statements for the year ended Dec. 31, 2016, stating
that the Company had experienced a substantial decrease in sales
volume which resulting a net loss for the year ended Dec. 31,
2016. Also, part of the Company's buildings and land use rights
are subject to litigation between an independent third party and
the Company's chief executive officer, and the title of these
buildings and land use rights has been seized by the PRC Courts so
that the Company cannot be sold without the Court's permission. In
addition, the Company already violated its financial covenants
included in its short-term bank loans. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.


BIOSTAR PHARMACEUTICALS: Receives Deficiency Notice From Nasdaq
---------------------------------------------------------------
Biostar Pharmaceuticals, Inc., received on Aug. 22, 2017, a
notification letter from Nasdaq Listing Qualifications advising
the Company that, since it had not filed its Quarterly Report on
Form 10-Q for the fiscal year ended June 30, 2017, the Company was
not in compliance with Nasdaq Listing Rule 5250(c)(1) for
continued listing. The Company is required within 60 calendar days
of the Nasdaq notification to submit a plan of compliance with the
foregoing continued listing deficiency. If the Company's plan is
approved by the Nasdaq staff, the Company may be eligible for a
listing exception of up to 180 calendar days (or until
Feb. 12, 2018) to regain compliance. If the Nasdaq staff concludes
that the Company will not be able to cure the deficiency, or if
the Company determines not to submit the required materials or
make the required representations, the Company's common stock will
be subject to delisting by Nasdaq.

Based in Xianyang, China, Biostar Pharmaceuticals, Inc.
(NASDAQ: BSPM) develops, manufactures and markets pharmaceutical
and health supplement products for a variety of diseases and
conditions.

For the year ended Dec. 31, 2016, the Company reported a net loss
of $5.69 million for the year ended Dec. 31, 2016, compared to a
net loss of $25.11 million for the year ended Dec. 31, 2015. As of
March 31, 2017, Biostar had $41.49 million in total assets, $5.31
million in total liabilities, all current, and $36.18 million in
total stockholders' equity.

Mazars CPA Limited, Certified Public Accountants, in Hong Kong,
issued a "going concern" qualification on the consolidated
financial statements for the year ended Dec. 31, 2016, stating
that the Company had experienced a substantial decrease in sales
volume which resulting a net loss for the year ended Dec. 31,
2016. Also, part of the Company's buildings and land use rights
are subject to litigation between an independent third party and
the Company's chief executive officer, and the title of these
buildings and land use rights has been seized by the PRC Courts so
that the Company cannot be sold without the Court's permission. In
addition, the Company already violated its financial covenants
included in its short-term bank loans. These conditions raise
substantial doubt about the Company's ability to continue as a
going concern.


CHINA EVERGRANDE: Drop in Leverage in 1H17 Backs Fitch B+ Rating
----------------------------------------------------------------
China Evergrande Group's (B+/Stable) slight fall in net leverage
in 1H17 supports its ratings, but further deleveraging will depend
on the execution of its land acquisition strategy and sales
growth, Fitch Ratings says.

The 224% surge in 1H17 net profit has no rating impact as it was
due to the timing of accounting profit recognition, which has no
impact on cash flow. However, Evergrande's EBITDA margin doubled
to 28.2% in 1H17 from 14.1% in 2016, which is evidence that its
expansion has had a positive impact on profitability.

Evergrande's net leverage, as measured by net debt / adjusted
inventory, slightly decreased to an estimated 54.1% in 1H17 from
55.1% in 2016 and 59.6% in 2015. This was achieved even though
payables remained flat while gross inventory increased by 21% in
1H17, suggesting that Evergrande is using a lower proportion of
supplier credits in building up its inventory. The mild
deleveraging was helped by strong contracted sales and the receipt
of the full proceeds from its CNY70 billion equity-raising for its
onshore subsidiary from new investors.

Fitch believes Evergrande's plan to deleverage will yield
meaningful results if it slows its land acquisitions to a level
that does not materially exceed the gross floor area it sells in
the same year. This is in contrast to its past aggressive
acquisitions. For example, land acquired in 1H17 was 2.7x the
gross floor area sold while the ratio in 2016 was 2.3x. Evergrande
faces little pressure to replenish land aggressively in the next
18 to 24 months because its total land bank was 276 million sq m
at end-1H17, which is sufficient for around five years of
development,

The deleveraging will also be supported by the third round of
strategic investment by investors in Evergrande's onshore
subsidiary of CNY30 billion-50 billion in 2H17. However, this
would reduce Evergrande's equity stake in the onshore subsidiary
after the share sale, which could leave Evergrande's debt-holders
structurally subordinated to the debt-holders of the onshore
company. Fitch will assess the group and debt structure after the
reorganisation to determine if the potential structural
subordination has any impact on the Evergrande's rating. Fitch
will also take into account the operational performance at the
holding company level after the restructuring.


GREENLAND HK: 1H 2017 Results Within Expectations, Moody's Says
---------------------------------------------------------------
Moody's Investors Service says Greenland Hong Kong Holdings
Limited's (Ba2 negative) 2017 interim results showed improved
credit metrics, and were broadly within expectations.

The company's Ba2 Corporate Family Rating incorporates a two-notch
rating uplift based on expected strong support from Greenland
Holding Group Company Limited (Ba1 negative).

The negative outlook reflects Greenland Holding's high debt
leverage, which could affect its ability to support Greenland Hong
Kong.

"Greenland Hong Kong's improved 1H 2017 sales and financial
metrics reflect its efforts to strengthen its standalone credit
profile," says Franco Leung, a Moody's Vice President and Senior
Credit Officer.

Moody's expects Greenland Hong Kong's debt leverage -- as measure
by revenue/adjusted debt -- will remain above 90%, a level that is
strong for its current standalone credit profile.

Greenland Hong Kong reported a decline in reported debt to RMB15.6
billion at the end of June 2017 from RMB17.5 billion at the end of
2016. As a result, its debt leverage improved to around 100% for
the 12 months ended June 2017 from 92% during 2016.

Moody's believes the company achieved deleveraging through robust
operating cash flow, in turn driven by strong 77% year-on-year
contracted sales growth to RMB16.3 billion for 1H 2017.

In addition, Moody's expects Greenland Hong Kong's interest
coverage - as measured by adjusted EBIT/interest - will trend
towards 3.5x-3.7x over the next 12-18 months.

Greenland Hong Kong's interest coverage improved significantly to
around 3.5x for the 12 months ended June 2017 from around 2.75x
during FY2016. The company reported a significant increase in its
gross profit margin to 20.9% in 1H 2017 from 9% in 1H 2016, while
a further reduction in its average interest cost to 4.3% in 1H
2017 more than offset the negative impact from a 9.1% year-over-
year revenue decline.

Moody's expects Greenland Hong Kong's gross profit margins to
stabilize at around 20% over the next 12-18 months.

The negative outlook could revert to stable if the company's
standalone credit profile strengthens, supported by a healthy
sales growth momentum while maintaining debt leverage above 75%-
80% on a sustained basis. In addition, the outlook on Greenland
Holding would need to revert to stable.

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

Greenland Hong Kong Holdings Limited is principally engaged in the
development of large-scale, high-end residential communities, city
center integrated projects, and travel and leisure projects that
target the mid to high-end customer segment.

As of end-June 2017, the company's land bank totaled 14.6 million
square meters and was located in key cities in the Yangtze River
Delta and in southern China's coastal areas. Greenland Holding
Group Company Limited owned approximately 59.07% of Greenland Hong
Kong.


RONSHINE CHINA: S&P Revises Outlook to Neg., Affirms B LT CCR
-------------------------------------------------------------
S&P Global Ratings revised its outlook on Ronshine China Holdings
Ltd. to negative from stable. S&P said, "At the same time, we
affirmed our 'B' long-term corporate credit rating on the China-
based property developer. We also affirmed our 'B-' long-term
issue rating on Ronshine's outstanding senior unsecured notes."

S&P said, "We revised the rating outlook on Ronshine to reflect
the company's more aggressive debt-funded expansion than our
previous expectation. Ronshine's financial leverage has increased
significantly, with the rolling 12-month ratio of debt to EBITDA
rising to around 17x in June 2017, compared with 7.6x a year
earlier.

"Ronshine has limited discipline relating to its financial
leverage, in our view. In the 18 months between January 2016 and
June 2017, the company's attributable land costs reached Chinese
renminbi (RMB) 39.1 billion, which was 97% of its contracted sales
during the period. This reflects the company's aggressive growth
strategy and opportunistic scale expansion. The company's margin
also deteriorated during the period due to the booking of low
profits in projects sold in 2014 and 2015.

"We affirmed the ratings on Ronshine based on our expectation that
the company will materially slow down its land acquisitions in the
second half of the year. In our view, Ronshine has adequate land
reserves to support its growth over the next one to two years.
Including the proposed acquisition of equity interest in Ningbo
Hailiang Property Investment Co. Ltd. and Anhui Hailiang Property
Co. Ltd. Ronshine has 9 million square meter (sq.m) of land in
2017, increasing its total land bank to 20 million sq.m.

"We believe a recovery in Ronshine's leverage in the next one to
two years will hinge on the company's sales execution, improvement
in sales margin, and prudent acquisitions. We estimate that
Ronshine's margin will improve in the next 12-18 months, supported
by an increase in the company's average selling price (ASP). In
the first seven months of 2017, the ASP for Ronshine's contracted
sales was RMB24,301 per sq.m, allowing a reasonable margin, given
its average land costs of RMB8,463 per sq.m.

"Ronshine's liquidity has also deteriorated, in our view, due to a
rise in short-term borrowings and lower cash holdings. At the end
of June 2017, the company's short-term borrowings were RMB18.9
billion, and its debt due in one to two years was RMB25.2 billion;
in comparison, the company had a readily available cash balance
(including term deposits) of RMB9.9 billion. We believe Ronshine
will face heightened refinancing risk if its sales do not improve
in the second half of 2017 and if onshore funding conditions
continue to remain tight in 2018.

"We believe Ronshine's good sales prospect could temper the
liquidity risk in the next 12 months. In the second half of the
year, the company has nine new projects (compared to four in the
first half) to be launched, which will likely boost sales. We
estimate cash proceeds from sales to be RMB30 billion-RMB35
billion in the next 12 months. In addition, of the RMB18.9 billion
short-term borrowings, RMB4.5 billion are onshore corporate bonds,
for which investors may not exercise their put options.

"The negative outlook reflects our view that Ronshine's liquidity
and leverage may continue to worsen over the next 12 months unless
the company improves its sales and adopts a more prudent approach
to debt-funded expansion.

"We could lower the rating if Ronshine continues to pursue debt-
funded expansion, such that its gross debt continues to rise, its
debt-to-EBITDA ratio does not materially improve, or its EBITDA
interest coverage remains below 1.5x. We could also lower the
rating if Ronshine's liquidity continues to deteriorate as
indicated by an increase in short-term debt compared to cash
levels or a decrease in the weighted debt maturity profile to less
than two years.

"We could revise the outlook to stable if Ronshine significantly
improves its financial leverage and liquidity position through
better sales execution, and if the company lengthens its debt
maturity."



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

-- INR55 mil. Fund-based limit migrated to non-cooperating
    category with IND BB+(ISSUER NOT COOPERATING) rating; and

-- INR1 mil. Non-fund-based limit migrated to non-cooperating
    category with IND A4+(ISSUER NOT COOPERATING) rating.

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

COMPANY PROFILE

Incorporated in 1993, Al Gayathri Trading Company is engaged in
the tea trading business.


BINAYAK HI-TECH: Ind-Ra Moves BB Issuer Rating to Not Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Binayak Hi-Tech
Engineering Limited's (BHTEL) 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:

-- INR140 mil. Fund-based working capital limit migrated to non-
    cooperating category with IND BB(ISSUER NOT COOPERATING)/IND
    A4+(ISSUER NOT COOPERATING) rating;

-- INR65 mil. Proposed term loan migrated to non-cooperating
    category with Provisional IND BB (ISSUER NOT COOPERATING)
    rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 11, 2016. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.

COMPANY PROFILE

Incorporated in 1995, BHTEL manufactures cast manhole covers,
curb/service/valve boxes, garden benches, fence panels, railings,
moulded plastic products, forgings, fabricated access/duct covers
and gratings.

BHTEL exports to more than 20 countries across North America,
Europe, the Middle East, Africa and Australia. Its registered
office is located in Kolkata. The company is managed by Mahesh
Kumar Jhunjhunwala, Kiran Jhunjhunwala and Atul Jhunjhunwala.


CRD FOODS: Ind-Ra Migrates B+ Issuer Rating to Not Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated CRD Foods Private
Limited's (CRD) 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 B+(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating actions are:

-- INR100 mil. Fund-based working capital limits migrated
    to non-cooperating category with IND B+(ISSUER NOT
    COOPERATING)/IND A4(ISSUER NOT COOPERATING) rating; and

-- INR178 mil. Term loan migrated to non-cooperating category
    with IND B+(ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 12, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

CRD was incorporated in September 2010 to set up a cold storage
unit in Mathura, Uttar Pradesh.


DTC SECURITIES: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed DTC Securities
Limited's (DTCSL) Long-Term Issuer Rating at 'IND BB'. The Outlook
is Stable. The instrument-wise rating actions is:

-- INR305 mil. Proposed term loan* affirmed 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
DTCSL to the satisfaction of Ind-Ra.

KEY RATING DRIVERS

The ratings continue to reflect DTCSL's single property rental-
based revenue stream and moderate debt service capabilities due to
a marginal difference between annual rental income and annual debt
repayment commitments.

The ratings also continue to reflect DTCSL's small scale of
operations and moderate credit profile. According to provisional
financials for FY17, revenue was INR58.6 million (FY16: INR50.3
million), interest coverage was 1.3x (1.1x) and net financial
leverage was 6.8x (9.4x). The interest coverage mainly improved on
account of a rise in operation margin to 73.5% in FY17 (FY16:
63.3%). The improvement in margins and revenue was due to an
improvement in rental income. Also, net financial leverage
improved on account of a decline in total debt along with an
improvement in EBITDA.

Ind-Ra continues to consolidate the cash flows of DTCSL and East
Commercial Private Limited (ECPL) to arrive at the ratings. ECPL
is the owner of the property and DTCSL is acting as a service
provider to the lessee, for which DTCSL has obtained a no
objection certificate from ECPL. The entire rent collected is
deposited in an escrow bank account and residual cash is available
to the companies only after the debt service obligations have been
met.

The ratings, however, continue to be supported by the presence of
a strong lessor (Pantaloon Retail India Limited), which has taken
the property on lease for 15 years, starting 2007. Also, DTCSL's
promoters have over 10 years of experience in the real estate and
development business.

RATING SENSITIVITIES

Negative:  Termination of lease by the tenant could result in a
rating downgrade.

Positive: A substantial improvement in the credit profile will be
positive for ratings.

COMPANY PROFILE

DTCSL was incorporated in 1995 by DTC Group. Mr Dinesh Jalan,
Satya Narayan Jalan, and Mrs Poonam Jalan are the directors of the
company. The company has its registered office in Kolkata. DTC
Group has leased out a 63,000sf. commercial mall to Pantaloon
Retail India. ECPL is part of DTC Group and was incorporated in
1990 by DTC group.


GOPALA POLYPLAST: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Gopala Polyplast
Limited's (GPL) Long-Term Issuer Rating at 'IND BB-'. The Outlook
is Stable. The instrument-wise rating actions are:

-- INR225.7 mil. (reduced from INR273.1 mil.) Secured term loan
    due on March 2021 affirmed with IND BB-/Stable rating;

-- INR500 mil. (increased from INR472 mil.) Cash credit facility
    affirmed IND BB-/Stable rating; and

-- INR23 mil. (increased from INR18 mil.) Non-fund-based limits
    affirmed with IND A4+ rating.

KEY RATING DRIVERS

The ratings continue to reflect GPL's small scale of operations,
weak credit metrics and stretched liquidity position due to high
working capital requirements, competition in the plastic packaging
industry and volatile margins because of crude oil price
fluctuations. In FY17, revenue increased 1.8% yoy to INR3,098.4
million driven primarily by higher volumes. Net financial leverage
(adjusted net debt/EBITDA) marginally improved to 7.8x in FY17
(FY16: 8.2x), while interest coverage ratio (EBITDA/gross
interest) was almost stable at 1.2x (1.3x). The company reported
EBITDA margins of 2%-4.4% over FY14-FY17 (FY17: 3.8%; FY16: 3.7%,
FY15: 2.0%).

Net working capital cycle was 80 days in FY17 (FY16: 77 days). The
company's utilisation of its bank limits was near full for the 12
months ended July 2017.

GPL has repayment obligations of INR69.7 million and INR66.9
million in FY18 and FY19, respectively. Ind-Ra believes that in
case of cash flow mismatches, unsecured loans from promoters will
ensure timely repayment of the company's debt obligations.

The ratings, however, remain supported by the company's promoters'
three-decade-long experience in the manufacturing of polypropylene
sacks and woven fabrics. The ratings also remain supported by
GPL's reputed clientele comprising JK Lakshmi Cement Limited and
Ultratech Cement Limited ('IND AAA'/Stable), and steady demand
from the cement sector which contributes around 70% to the
company's revenue. Although GPL plans to add another line of
machinery of approximately INR50 million for producing high margin
yielding block bottom bags by end FY18, Ind-Ra expects the credit
metrics to remain commensurate with the current rating level.

RATING SENSITIVITIES

Negative: Deterioration in the revenue and profitability margins
leading to a sustained decline in the overall credit metrics would
lead to a negative rating action. In addition, a further stretch
in the liquidity profile with deterioration in the working capital
cycle would be negative for the ratings.

Positive: A significant improvement in the top line, coupled with
a sustained improvement in the credit metrics and an improvement
in the cash conversion cycle is likely to result in a positive
rating action.

COMPANY PROFILE

Established in 1984 as a private limited company, GPL manufactures
polypropylene/high density polyester woven sacks, which are used
in cement packaging. It also manufactures woven labels, which are
fitted onto readymade garments. The company was listed on the
Bombay Stock Exchange in 1994. It has an operational facility at
Gandhinagar in Gujarat with a capacity of 18,210MTPA.


HAQ ENTERPRISES: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed HAQ Enterprises
Private Limited's (HEPL) Long-Term Issuer Rating at 'IND BB'. The
Outlook is Stable. The instrument-wise rating action is:

-- INR200 mil. Fund-based working capital limits affirmed with
    IND BB/Stable/IND A4+ rating.

KEY RATING DRIVERS

The affirmation reflects HEPL's continued moderate credit profile
and volatile EBITDA profitability. Revenue declined 3% to
INR1,147.4 million in FY17 (provisional) due to a general slowdown
in the market. EBITDA margins decreased to 3.6% in FY17 (FY16:
4.4%) and was volatile at 3.6%-4.8% over FY13-FY17. The company's
commodity trading business is exposed to the vagaries of price
fluctuations and thin margins.

Net leverage (total Ind-Ra-adjusted debt net of cash/EBITDAR)
improved to 3.8x in FY17 (FY16: 4.3x) on account of a significant
reduction in total debt to INR159.1 million (INR228.5 million)
while EBITDA interest coverage (operating EBITDAR/gross interest
expense + rents) improved to 1.9x (1.0x) due to lower interest
expenses as a result of the lower debt.

The ratings however continue to be supported by HEPL's comfortable
liquidity. Its utilisation of the working capital facilities was
43% during the 12 months ended July 2017. The ratings are further
supported by the company's promotors' around four decades of
operating experience in the metal trading business, leading to
longstanding relationships with its customers and suppliers.

RATING SENSITIVITIES

Negative: A decline in revenue and/or profitability leading to
deterioration in credit metrics and/or liquidity on a sustained
basis will lead to a negative rating action.

Positive: Substantial revenue growth, while maintaining
profitability, leading to an improvement in credit metrics on a
sustained basis will lead to a positive rating action.

COMPANY PROFILE

Established in 2008, HEPL is engaged in the trading of pig iron,
iron scraps and casts. It also acts as a carrying and forwarding
agent for Sathavahana Ispat Ltd. It sells pig iron and other metal
scrap products to foundries and induction furnace units in
Gujarat.


HAQ STEELS: Ind-Ra Affirms BB LT Issuer Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed HAQ Steels
Private Limited's (HSPL) Long-Term Issuer Rating at 'IND BB'. The
Outlook is Stable. The instrument-wise rating actions are:

-- INR180 mil. Fund-based working capital limits affirmed with
    IND BB/Stable/IND A4+ rating;

-- INR146.5 mil. (reduced from INR193.3 mil.) Term loan due on
    September 2022 affirmed with IND BB/Stable rating.

KEY RATING DRIVERS

The affirmation reflects HSPL's continued moderate credit profile,
despite a sustained improvement in line with Ind-Ra's
expectations. FY16 was the first full year of operations. Margins
are sensitive to fluctuations in TMT bar prices.

According to FY17 provisional financials, revenue increased 32%
yoy to INR2,441.9 million on account of increased orders from the
existing customers. Net leverage (Ind-Ra adjusted net
debt/operating EBITDAR) improved to 4.1x in FY17 (FY16: 8.0x) and
interest coverage (Ind-Ra operating EBITDA/gross interest expense)
to 2.6x (1.4x) on account of increased absolute EBITDA. EBITDA
margin also increased to 4.8% FY17 (FY16: 3.6%).

Ind-Ra expects HSPL's credit profile to improve in FY18 on account
of steady revenue growth and scheduled repayments of term debts.

The ratings continue to be supported by HSPL's comfortable
liquidity with its average utilisation of the working capital
facilities being 60% during the 12 months ended July 2017. The
ratings are further supported by the company's promotors' around
four decades of operating experience in the metal trading
business, leading to longstanding relationships with its customers
and suppliers.

RATING SENSITIVITIES

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

Positive: A substantial revenue growth leading to a sustained
improvement in the profitability and credit metrics could lead to
a positive rating action.

COMPANY PROFILE

Established in 2013, HSPL manufactures TMT steel bars at its 1,
08,000mtpa plant. The company sells its product under the brand
name German.


HT GLOBAL: S&P Affirms BB- CCR & Senior Secured Notes Rating
------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' long-term corporate credit
rating on HT Global IT Solutions Holdings Ltd., an India-based
service provider of information technology (IT) and business
process outsourcing. The outlook is stable.

S&P said, "We also affirmed our 'BB-' long-term issue rating on
the company's outstanding senior secured notes due 2021. HT Global
will use the proceeds from additional notes to fund its proposed
shareholder distributions.

"The rating on the notes is subject to our review of the final
consent waiver from existing notes holders and the issuance
documentation."

HT Global owns 71% of Hexaware Technologies Ltd. and is wholly
owned by Baring Asia Private Equity Fund V L.P. Hexaware is an
India-listed IT products and solutions provider.

S&P said, "We affirmed the rating because we believe HT Global's
faster-than-industry growth and stable margins should temper the
impact of increased debt to fund a proposed shareholder
distribution.

"We do not expect the company to breach our downgrade trigger of a
debt-to-EBITDA ratio of 4.0x if it proceeds with plans to raise
about US$80 million?US$85 million of debt to fund the dividends.
We estimate the additional debt will result in pro forma leverage
of 3.1x for 2017, higher than our previous estimate of 2.7x.

"HT Global's proposal to increase debt is subject to the consent
of a waiver from the majority of its existing notes holders. In
our view, the proposed notes will not breach the covenants under
the existing notes, but the headroom of a 3.75x total leverage
ratio will be reduced. We estimate the pro forma total leverage
ratio for the 12-month period ended June 30, 2017, to be 3.66x.
The tight covenants under the senior secured notes will continue
to restrict the company from raising further debt over the rating
horizon.

"HT Global has material unencumbered cash on its balance sheet,
but we have not adjusted our credit metrics for this due to the
company's weak business risk profile and financial sponsor-led
ownership. In our view, HT Global's significant ownership in
Hexaware provides it with the flexibility to access this cash
through dividends and reduce its leverage, if needed.

"HT Global's operating performance for the six months ended June
30, 2017, was better than our estimate, with year-on-year revenue
growth of 17.7% and EBITDA margin of about 18%. Higher volumes and
improved utilization underpinned the strong performance. However,
we believe the Indian IT sector in general faces headwinds in
terms of decelerating growth and higher operating costs from
increasing on-site investments. We therefore believe that it would
be difficult for HT Global to sustain a similar performance.
Nevertheless, we believe the company will continue to grow faster
than the industry average, albeit on a small revenue base. We also
expect the company to maintain sufficient headroom in the rating
despite the higher leverage.

"Our issue rating on the notes is equal to the issuer credit
rating because we believe India's bankruptcy law and practices do
not allow a meaningful distinction between the various seniority
claims of creditors.

"The stable outlook reflects our view that HT Global will maintain
its competitive position, good profitability, free operating cash
flows, and adequate liquidity over the next 12-18 months. We also
do not expect the company to increase its leverage over the
period.

"We may lower the rating if HT Global adopts a more aggressive
financial policy, driven by debt-funded acquisitions or
shareholder distributions, such that its debt-to-EBITDA ratio
increases above 4.0x for a prolonged period. In an unlikely
situation, we may also lower the rating if HT Global loses one or
more key clients, causing its revenue and operating income to
decline materially.

"We see limited potential for an upgrade over the next 12 months,
given HT Global's small size and a financial sponsor-led
management. However, in an unlikely situation, we may raise the
rating if HT Global ceases to be a financial sponsor-controlled
company and has a conservative financial policy."


IRAKI TRADING: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Iraki Trading
Co.'s (ITC) Long-Term Issuer Rating at 'IND BB'. The Outlook is
Stable. The instrument-wise rating actions are:

-- INR40 mil. Fund-based working capital limits affirmed
    with IND BB/Stable/IND A4+ rating;

-- INR75 mil. Non-fund-based working capital limits affirmed
    with IND A4+ rating.


KEY RATING DRIVERS

The affirmation reflects ITC's continued moderate credit profile
and volatile profitability. Revenue declined to INR265.2 million
in FY17 from INR622.4 million in FY16 due lower realisations and a
market slowdown. EBITDA margin was 5.9% in FY17 (FY16: 4.8%) and
2.1%-5.9% over FY13-FY17. The volatility in EBIDA margin was due
to the trading nature of business. The management expects revenue
to improve in FY18 on account of stable market conditions. It
booked INR390.0 million in revenue for 1QFY18. FY17 financials are
provisional in nature.

Net leverage (Ind-Ra-adjusted net debt/operating EBITDAR) and
interest coverage (operating EBITDAR/gross interest expense +
rents) deteriorated to 4.6x and 1.9x, respectively, in FY17 from
3.2x and 2.0x in FY16 on account of a decrease in absolute EBIDTA.

The ratings continue to be supported by ITC's comfortable
liquidity position. Its average use of the working capital
facilities was about 59% during the 12 months ended July 2017.
FY17 year-end cash balance was INR18.7 million (FY16: INR10.3
million). The ratings are further supported by the company's
proprietor's experience of over four decades in the trading of
metals. The extensive experience has led to well-established
relationships with customers and suppliers.

RATING SENSITIVITIES

Negative: A decline in revenue and/or profitability leading to
deterioration in credit metrics on a sustained basis will lead to
a negative rating action.

Positive: Substantial revenue growth, while maintaining
profitability, leading to an improvement in credit metrics on a
sustained basis will lead to a positive rating action.

COMPANY PROFILE

Established in 1994, ITC is engaged in the trading of pig iron and
acts as a carrying and forwarding agent for SLR Metaliks Ltd. It
sells pig iron to foundries and induction furnace units in
Gujarat. The firm's proprietor is Mr Inamulhaq Iraki.


RAMESH CHANDRA: Ind-Ra Moves B+ Issuer Rating to Not Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Ramesh Chandra
Rai's (RCR) 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 B+(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating actions are:

-- INR20 mil. Fund-based working capital limit migrated to non-
    cooperating category with IND B+(ISSUER NOT COOPERATING)/IND
    A4(ISSUER NOT COOPERATING) rating; and

-- INR45 mil. Non-fund-based working capital limit migrated to
    non-cooperating category with IND A4(ISSUER NOT COOPERATING)
    rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
July 1, 2015. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.

COMPANY PROFILE

Established in 2009, RCR is engaged in trading of both country and
foreign liquor.


SHASHANK NIDHI: Ind-Ra Moves BB- Issuer Rating to Not Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shashank Nidhi
Construction Private Limited's (SNCPL) 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:

-- INR120 mil. Fund-based working capital limit migrated to non-
    cooperating category with IND BB-(ISSUER NOT COOPERATING)
    rating; and

-- INR8.50 mil. migrated to non-cooperating category with IND
    BB-(ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
May 5, 2016. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.

COMPANY PROFILE

SNCPL was previously started as a partnership firm Shashank Nidhi
& Associate by two partners Ranjit Narayan Mishra and Suresh
Prashad Sinha in 2004, and was engaged in reselling of land. On
April 18, 2007, the firm was changed into a private limited
company, SNCPL with the then existing partners as directors of the
newly formed company, and entered into the real estate business.
The company has completed four projects and is constructing a
residential project - Platina Dream City Phase II. It plans to
construct two new projects in Jamshedpur.


TARUN ENTERPRISE: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Tarun
Enterprise's (TE) Long-Term Issuer Rating at 'IND BB'. The Outlook
is Stable. The instrument-wise rating actions are:

-- INR40 mil. Fund-based working capital limits affirmed
    with IND BB/Stable/IND A4+ rating;

-- INR75 mil. Non-fund-based working capital limits affirmed
    with IND A4+ rating.

KEY RATING DRIVERS

The affirmation reflects TE's continued moderate credit profile
and volatile profitability on account of the trading nature of
business. In FY17, revenue was INR450.6 million (FY16: INR437.6
million) and EBITDA margin was 6.3% (5.9%). However, EBITDA margin
ranged between 1.8% and 6.3% over FY13-FY17. FY17 financials are
provisional in nature.

Moreover, net leverage (Ind-Ra adjusted net debt/operating
EBITDAR) deteriorated to 4.0x in FY17 from 3.2x in FY16 owing to
an increase in unsecured loans. On the other hand, EBITDA interest
coverage (operating EBITDAR/gross interest expense + rents)
improved to 3.9x in FY17 from 1.4x in FY16 on account of a fall in
finance cost due to low working capital utilisation.

The ratings continue to be supported by TE's comfortable liquidity
with average peak use of the cash credit limits being 59% for the
12 months ended July 2017. The ratings are further supported by
the company's proprietor's experience of over four decades in the
trading of metals. The extensive experience has led to well-
established relationships with customers and suppliers.

RATING SENSITIVITIES

Negative: A decline in revenue and/or profitability leading to
deterioration in credit metrics and/or liquidity on a sustained
basis will lead to a negative rating action.

Positive: Substantial revenue growth, while maintaining
profitability, leading to a sustained improvement in credit
metrics will lead to a positive rating action.

COMPANY PROFILE

Established in 1970, TE is a proprietorship firm engaged in the
trading of pig iron. It also acts as a carrying and forwarding
agent for Tata Metaliks Ltd. It sells pig iron to foundries and
induction furnace units in Gujarat.



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


MEDCO ENERGI: Fitch Assigns Final 'B' Rating to US$400MM Notes
--------------------------------------------------------------
Fitch Ratings has assigned Indonesia-based upstream oil and gas
producer PT Medco Energi Internasional Tbk's (Medco, B/Stable)
US$400 million unsecured unsubordinated notes a final 'B' rating
and a Recovery Rating of 'RR4'.

Medco will use the proceeds from the notes to fund the interest
reserve account equivalent to one semi-annual coupon, as well as
to repay a number of its debt facilities maturing in the next 12
to 18 months. The notes are issued by Medco's wholly owned
subsidiary, Medco Strait Services Pte Ltd, and guaranteed by Medco
and several of its subsidiaries.

The notes are rated at the same level as Medco's 'B' Long-Term
Issuer Default Rating as they constitute its direct and unsecured
unsubordinated obligations. The final rating follows the receipt
of documents conforming to information already received and is in
line with the expected rating assigned on July 28, 2017.

KEY RATING DRIVERS

Small Oil and Gas Producer: Medco's ratings reflect its business
profile as a small upstream producer, with proved (1P) reserves of
242 million barrels of oil equivalent (mmboe) and proved and
probable (2P) reserves of 328 mmboe; 70% of proved reserves were
developed as of end-2016. Its 1P reserve life stood at nine years
at end-2016. Medco has mostly controlling interests in six fields
in Indonesia from which it derives nearly 90% of production. It
also has a small international presence in Oman, the US and
Tunisia.

Growth from Acquisitions: Medco purchased a 40% stake in the South
Natuna Sea Block B in 2016, with 33 mmboe of 2P reserves. It also
boosted its stake in Block A Aceh deposit to 85% - with 2P
reserves of 58 mmboe. Medco achieved a higher production run-rate
of 90 million barrels per day (mbpd) in 1Q17 (2016: 66 mbpd),
supported by the acquisition of Block B. Fitch expects a
production rate of around 80 mbpd over the next three to four
years. Medco plans around USD300 million-350 million in annual
capex in the next two years - nearly half to develop phase one of
Block A in Aceh, with the first gas likely in 2018.

Fixed-Price Gas Sales: Around 35% of EBITDA in 2017 will be
derived from upstream gas production which is sold based on fixed-
price take-or-pay contracts with the Indonesian state. A further
36% stems from take-or-pay gas contracts indexed to crude oil
prices, with in-built annual price escalations, contracted with
large overseas counterparties. The existing contracts have tenors
of 10-15 years, and their fixed or indexed-pricing and take-or-pay
nature reduces the volatility of operating cash flows to an
extent.

High Leverage to Moderate: Fitch expects FFO adjusted net leverage
to improve to 4.7x by end-2018 (end-2016: 15.5x). Deleveraging
will be supported by higher production from recent acquisitions,
as well as Fitch expectations for a gradual rise in crude oil
prices over the next four years. Lower costs will also help
deleveraging. Cash costs per barrel (bbl) have also come down
considerably, to USD8.8 per bbl in 2016 (2015: USD12 per bbl), due
to ramping up production and cost-containment efforts.

The company is also working on a number of measures to reduce
leverage faster than Fitch currently expects. These include a
rights issue of USD150 million targeted for 4Q17, as well as the
disposal of non-core assets of more than USD600 million over the
next 12-18 months.

Power Business Investments Factored in: Fitch has included in
Fitch ratings case Medco's USD88 million investment in its 49%-
joint venture PT Medco Power Indonesia (MPI), which is spread
across the next four years. This is its share of a total USD175
million capex plan at MPI which will fund new power plants at MPI
with additional capacity of 685 megawatts. Fitch also considers it
likely that Medco will purchase a further 39.6% effective stake in
MPI from PT Saratoga Power, in the event that the latter sells out
as currently envisaged. Fitch's forecasts include an estimate for
the value of Saratoga's stake, along with Saratoga's estimated
contribution to MPI's medium-term capex. These investments are
outside of the bond's restricted group structure, and are allowed
so long as aggregate investments do not exceed 15% of the
restricted group's total assets (around USD400 million at end-
2016).

Fitch will continue to treat MPI as an equity investment when
assessing Medco's credit risk, even if Medco purchases a
controlling stake. This is because MPI's operations are largely
project-financed on a non-recourse basis, and because there are no
cross-default clauses linking MPI's debt to Medco, which limits
fungibility of cash flows. Furthermore MPI's business profile is
sound, and it is able to finance its own operations except for the
new power plants in development.

DERIVATION SUMMARY

Medco's 'B'/Stable Long-Term IDR compares well with upstream oil
and gas producers rated in the 'B' category. The business risk
profile is similar to that of PT Saka Energi Indonesia Tbk, which
is assessed at 'B+' on a standalone basis. Medco has a larger
production base and proved reserves, longer reserve life, and a
similar mix of operating cash flows stemming from fixed-price gas
contracts. However, Fitch expects Saka's production base and
reserves to catch up with Medco in the next two years. On the
other hand, Medco's leverage is considerably higher than that of
Saka. As a result, Saka's standalone rating is one notch higher
than Medco's.

Medco is rated in line with Kosmos Energy Ltd. (B/Stable) in the
US. Medco's business risk profile is considerably stronger than
that of Kosmos on account of larger proved reserves and production
volumes, and lower production costs. This is counterbalanced by
Medco's higher leverage.

KEY ASSUMPTIONS

- Brent Crude oil price to average USD52.5/bbl in 2016,
   USD55/bbl in 2017, USD60/bbl in 2018, and USD65/bbl thereafter
- Oil and gas production of 25.8 mmboe in 2017, 28.3 mmboe in
   2018, 26.6 mmboe in 2019, and 27.3 mmboe in 2020
- Cash operating costs per mmboe to remain between USD12-13
- Annual capex of around USD300 million-350 million in 2017 and
   2018, including USD88 million into MPI
- USD130 million purchase of Saratoga's stake in MPI, together
   with USD70 million of further capex investments spread across
   2018-2020.

Fitch's key assumptions for bespoke recovery analysis include:
- The recovery analysis assumes that Medco would be considered a
'going concern' in bankruptcy and that the company would be
reorganised rather than liquidated. Fitch has assumed a 10%
administrative claim.

- Medco's going-concern EBITDA is based on expected 2018 EBITDA
which Fitch feel reflects sustainable production levels and
factors in a USD55/bbl crude oil price - which is closer to Fitch
long-term price expectation of USD65/bbl than the depressed levels
at present. It also captures production from Medco's new oil and
gas assets. However, the going-concern EBITDA is about 25% below
expected 2018 EBITDA to reflect the risks associated with oil
price volatility, potential challenges in maintaining production
of maturing fields, and other factors.

- An enterprise value (EV) multiple of 5.5x is used to calculate a
post-reorganisation valuation and reflects a mid-cycle multiple
for oil and gas, and metals and mining companies globally, which
is somewhat higher than the observed lowest multiple of 4.5x. The
higher multiple took into consideration that most of Medco's
production volumes stem from long-term fixed-price and indexed
take-or-pay gas contracts which provide greater cash flow
visibility across economic cycles than for the average global
upstream oil and gas production company.

- Fitch has assumed secured and prior ranking debt of USD689
million to be repaid before Medco's senior unsecured creditors,
including the investors of the US dollar bonds. Prior ranking debt
include project-finance debt at non-guarantor subsidiaries PT
Medco E&P Tomori Sulawesi, and future drawdown of the USD360
million facility at PT Medco E&P Malaka, as well as the USD150
million secured debt drawn down in May 2017 at PT Api Metra Graha.

- The payment waterfall results in a 69% recovery corresponding to
a 'RR3' recovery for the USD400 million unsecured notes. However,
Fitch has rated the senior unsecured bonds 'B'/'RR4' because
Indonesia falls into Group D of creditor-friendliness under Fitch
Country-Specific Treatment of Recovery Ratings criteria, and the
instrument ratings of issuers with assets in this group are
subject to a soft cap at the issuer's IDR.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- Ability to sustain FFO adjusted net leverage at less than
   4.0x, while maintaining its current business risk profile

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- A sustained increase in FFO adjusted net leverage to over 5.0x
- A sustained decline in Medco's oil and gas business risk
   profile, or a significant weakening in liquidity

LIQUIDITY

Manageable Refinancing Risk: Medco had unrestricted cash of USD157
million at end-March 2017, and approved-but-undrawn credit lines
of USD98 million. Fitch estimates Medco will generate negative
free cash flow in 2017 and its cash balance and undrawn lines
should be sufficient to fund this. Medco will use the 2022 notes'
net proceeds of USD383 million to repay its 2016 Natuna facility
of USD220 million, its SGD100 million medium-term notes, and fund
the interest rate reserve account of USD17 million. The balance
will be kept in escrow to repay its rupiah-denominated bonds which
are due in the next six months.


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


NELSON BUILDING: Fitch Affirms B Short-Term Foreign Currency IDR
----------------------------------------------------------------
Fitch Ratings has affirmed the ratings of the following seven
New Zealand financial institutions:

- Kiwibank Limited;
- TSB Bank Limited;
- Southland Building Society (SBS);
- The Co-operative Bank Limited (Co-op);
- Nelson Building Society (NBS);
- Credit Union Baywide (CUB); and
- Wairarapa Building Society (WBS).

At the same time, the agency has assigned Local-Currency Issuer
Default Ratings (IDR) to TSB, Co-op and CUB.

The affirmation of the IDRs, Viability Ratings and instrument
ratings for the seven institutions reflects Fitch views that they
are likely to continue performing solidly over the next year or
two. However, Fitch maintains a negative sector outlook for New
Zealand, reflecting rising household indebtedness and high
property prices, which could lead to asset quality deterioration
if unemployment or interest rates rise. Conversely, dairy
exposures, for the institutions that have them, are likely to see
improved asset quality if higher global dairy prices are sustained
into 2018.

Many of these entities are planning for strong loan growth.
However, Fitch believes market conditions and regulatory action,
including already-implemented macro-prudential tools, may make it
increasingly difficult for the banks to sustain such growth
levels.

KEY RATING DRIVERS

IDRs
Kiwibank's IDRs reflect Fitch's view that there is an extremely
high capacity and likelihood of support from the bank's ultimate
owner, the New Zealand sovereign (AA/Stable), if required.
Kiwibank is directly owned by New Zealand Post, New Zealand
Superannuation Fund and Accident Compensation Corporation, which
are all sovereign-owned entities.

The IDRs of TSB, SBS, Co-op, NBS, CUB and WBS are aligned with
their respective Viability Ratings. See below for details of the
key rating drivers.

VIABILITY RATINGS

Kiwibank
Kiwibank's Viability Rating reflects its robust asset quality,
controlled risk appetite and funding profile. Kiwibank operates a
simple business model focusing on the retail segment. The bank is
significantly larger by total assets than its regional bank peers,
but its low market share of around 4% means it has similarly
limited pricing power. Kiwibank's growth over recent years has
been moderate relative to peers. Fitch does not expect the bank's
asset quality and funding profile to significantly change over the
next two years in the absence of an external shock.

The bank's capitalisation has historically been a weakness
relative to peers. However, the gap has closed following strong
growth from other regional banks and capital injections from
Kiwibank's shareholders, if retained. Fitch expects the bank's
capitalisation to gradually improve over the long term due to its
moderate growth levels and willingness of shareholders to reinvest
dividends. Fitch considers the bank's access to capital as
stronger than peers.

TSB
TSB's Viability Rating reflects its conservative risk appetite,
simple business model and financial metrics that on the whole are
stronger than that of peers, while also capturing its small
domestic franchise, geographic concentration and limited access to
new capital. The bank has experienced strong loan growth through
2016 and into 2017, although this does not appear to have been at
the expense of underwriting standards or risk controls. However,
TSB expects to maintain strong loan growth levels, which may
negatively affect its capitalisation and funding profile.

The loan growth follows TSB's five-year strategy to replace less-
liquid securities with customer loans. The loan book remains fully
deposit funded despite the strong loan growth, although the level
of on-balance-sheet liquidity has declined. Profitability is
likely to decline in the short- to medium-term as the bank
continues to invest in systems and processes to accommodate
customer growth, although this should ultimately support higher
profitability in the longer term.

TSB's credit profile should not be significantly affected by the
funding and special dividend it has provided to its parent to
assist with the purchase of a further stake in Fisher Funds
Management Limited. However, Fitch continues to monitor the growth
and nature of the non-bank operations of TSB's parent to determine
what, if any, risk they pose to TSB's profile.

SBS
SBS's Viability Rating reflects its conservative risk appetite,
improving asset quality and earnings, and sound capital ratios. It
is offset by a modest domestic franchise and limited pricing
power. The bank's growth strategy has given rise to strong loan
growth, particularly for residential mortgages and consumer
lending. The August 2017 announcement of the acquisition of the
Warehouse Financial Services Group is consistent with this
strategy.

The strength of SBS's balance-sheet growth has pressured its
capitalisation and funding profiles, although Fitch expects these
to remain in line with those of peers and the bank's ratings. Its
strategy is likely to assist earnings and profitability in the
medium term, which should ultimately support capitalisation,
although growth in non-mortgage consumer loans may increase
impaired assets and charge-offs over the cycle.

Co-op
Co-op's Viability Rating reflects its modest risk appetite, sound
asset quality and stable funding profile. This is offset by the
bank's moderate franchise and resulting limited pricing power.

Fitch expects Co-op's strong expansion - which does not appear to
have been achieved at the expense of higher risk appetite or
weakening underwriting - to continue. Residential mortgages
comprise the bank's core business segment, although Fitch expects
it to develop other retail lending. The bank's expansion is likely
to continue pressuring its Fitch Core Capital ratio in the short-
term, but it has kept its total capital ratio stable by raising
Tier 2 capital.

NBS
The society's ratings are constrained by its modest franchise,
small absolute size and capitalisation, as reflected in its low
pricing power and higher concentration risk than that of peers.
This is offset by NBS's conservative risk appetite, robust asset
quality and stable funding position.

NBS continues to deliver double-digit asset growth and high
deposit growth, with strong community support in its home region.
Competition may challenge profitability growth, but robust loan
volume should provide a buffer. NBS has limited access to new
common equity and its capitalisation ratios remain pressured by
strong growth.

CUB
CUB's Viability Rating reflects its greater risk appetite against
that of most domestic peers, with a focus on higher loan/value
mortgages and consumer lending. This increases the susceptibility
of its loan performance to a weaker operating environment through
the cycle. CUB's risk controls are adequate for its size and
consistent with regional peers, but are not as developed as those
of larger banks.

CUB's risk-weighted and unrisk-weighted capitalisation ratios have
historically been above those of peers. However, Fitch expects
ongoing growth, which exceeds internal capital generation, to
pressure capitalisation over the next two years. The credit union
has a small absolute capital base and limited ability to generate
fresh common equity outside of internal capital generation.

WBS
The society's Viability Rating reflects its modest franchise and
product offering, weaker earnings profile and higher concentration
risk relative to peers. WBS's property investment portfolio has
historically provided stable rental returns, but adds potential
volatility through fair-value market adjustments. These issues are
offset by the society's asset quality and conservative risk
appetite.

The society's conservative risk appetite is reflected in its
minimal historical losses and low loan/value mortgages across its
loan book, which supports asset quality. The society has reduced
its property investment holdings and says it is comfortable with
its current portfolio, but continues to monitor opportunities as
they arise. WBS's capital ratios are adequate, but it has a small
absolute capital base, limited access to new common equity and
concentration risk.

SUPPORT RATINGS AND SUPPORT RATING FLOORS

Kiwibank
Kiwibank's Support Rating reflects Fitch's view that there is an
extremely high capacity and likelihood of support from the bank's
ultimate owner, the New Zealand sovereign, if required.

TSB, SBS, Co-op, NBS, CUB, WBS
The Support Rating and Support Rating Floor of these six
institutions reflect Fitch views that while support from the New
Zealand sovereign is possible, it cannot be relied on. Fitch
believes the existence of the open bank resolution scheme (OBR)
lowers the propensity of the sovereign to support its banks. The
OBR allows for the imposition of losses on depositors and senior
debt holders to recapitalise a failed institution. NBS, CUB and
WBS are not covered by the OBR due to their status as non-bank
deposit-taking institutions; however, the existence of the
framework indicates authorities are unlikely to provide support to
these entities.

SENIOR DEBT
Kiwibank
Kiwibank's guaranteed senior debt ratings remain aligned with the
sovereign rating, as the guarantee covers existing liabilities,
including deposits, until final maturity. Ratings of new senior
debt issuances, which do not benefit of a guarantee, are likely to
be aligned with the relevant IDR.

TSB
The rating of the registered certificates of deposit programme is
aligned with the bank's Short-Term IDR, in line with Fitch's
criteria.

SBS
Deposits from customers are rated one notch above the bank's IDRs,
at 'BBB+', to reflect the substantial subordination provided by
other instruments to the deposits. Customer deposits rank equally
with wholesale funding and ahead of redeemable shares (SBS's main
senior funding source), subordinated instruments and equity.
Redeemable shares, subordinated instruments and equity equated to
over 75% of total assets at end-March 2017.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES
Co-op
The bank's subordinated notes are rated one notch below its
Viability Rating of 'bbb' to reflect the notes' below-average
recovery prospects compared with senior unsecured notes. The notes
would be written down in part or in full should the Reserve Bank
of New Zealand appoint a statutory manager or deem that Co-op was
non-viable without the write down. Fitch has not applied any
additional notching from the Viability Rating for non-performance,
as the Viability Rating already captures the point of non-
viability.

RATING SENSITIVITIES

IDRs
Kiwibank's IDRs are sensitive to the same factors that affect its
Support Rating. The IDRs of TSB, SBS, Co-op, NBS, CUB and WBS are
likely to move in line with their respective Viability Ratings.

Viability Ratings
Kiwibank
A weakening in the bank's capitalisation, earnings or
profitability, possibly due to deterioration in risk appetite,
could place downward pressure on its Viability Rating. Positive
rating action would require a sustained increase in capital ratios
or significant improvement in the bank's franchise.

TSB
The bank's IDRs and Viability Rating may face downward pressure if
its strong loan growth is maintained, even if it is not at the
expense of the bank's conservative risk appetite, as it is likely
to pressure TSB's financial metrics. This would shrink the buffers
it enjoys over the metrics of peers. Negative rating action could
also follow deterioration in the bank's risk appetite, which would
be reflected in softer underwriting standards or weaker risk
controls, as this could hurt its asset quality, operating
performance and capitalisation. Fitch does not believe an upgrade
is probable.

SBS
The bank's IDRs and Viability Ratings may be downgraded if
macroeconomic risks continue to rise and SBS quickly increases its
balance-sheet size at the expense of its conservative risk
appetite or its sound funding and capital positions. The IDRs and
Viability Rating may be upgraded if New Zealand's macroeconomic
risks decline and the bank maintains its risk appetite, capital
and funding positions while executing its growth strategy.

Co-op
Co-op's IDRs and Viability Rating may be downgraded if there is
deterioration in its risk appetite or a higher-than-Fitch-expected
decline in capital ratios. A heightened risk profile, possibly
through weaker underwriting criteria or unsustainable growth,
could weaken asset quality, operating performance and
capitalisation. An upgrade is not probable in the short to medium
term. Positive rating momentum would require significant
improvements in Co-op's franchise while maintaining or improving
its financial profile and risk appetite.

NBS
The society's IDRs and Viability Rating are sensitive to an
increase in risk appetite, possibly from weakening underwriting
criteria or aggressive growth resulting in a deterioration of its
asset quality, profitability or further erosion in its already-
modest capitalisation. An upgrade to NBS's ratings would require
sustained and significant improvement in its company profile and
capital position.

CUB
An upgrade of CUB's IDRs and Viability Rating would require an
improved risk appetite, possibly through lower risk underwriting
or a stronger risk-control framework, evidenced by performance
through the cycle. Conversely, a downgrade may result if risk
appetite increases substantially.

WBS
The society's IDRs and Viability Rating are sensitive to an
increase in its risk appetite, which could result in a
deterioration of its asset quality or erosion of its
capitalisation. An upgrade is not probable due to WBS's small
absolute capital base, modest franchise and higher concentration
risk relative to peers.

SUPPORT RATING AND SUPPORT RATING FLOOR

Kiwibank
Kiwibank's Support Rating is sensitive to the shareholders', and
ultimately, the sovereign's ability and propensity to provide
timely support to the bank.

TSB, SBS, Co-op, NBS, CUB, WBS
The Support Ratings and Support Rating Floors are sensitive to any
change in assumptions around the propensity or ability of the New
Zealand government to provide timely support.

SENIOR DEBT

Kiwibank
The legacy guaranteed debt ratings will move in line with the New
Zealand sovereign ratings.

TSB
The rating on TSB's registered certificates of deposit programme
is subject to the same factors that influence the IDRs.

SBS
The rating on SBS's customer deposits is subject to the same
factors that influence the IDRs. In addition, a downgrade could
result from a substantial increase in the proportion of senior
unsecured debt (customer deposits and wholesale funding) in the
funding structure, as this would lower the subordination provided
by other instruments. Such a downgrade would align the rating with
SBS's IDRs, although Fitch does not believes a downgrade is
probable due to the high level of subordination.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

Co-op
Co-op's subordinated debt ratings are sensitive to the same
considerations that might affect its Viability Rating.


The rating actions are:

Kiwibank Limited
Long-Term Foreign-Currency IDR affirmed at 'AA-'; Outlook Stable
Short-Term Foreign-Currency IDR affirmed at 'F1+'
Long-Term Local-Currency IDR affirmed 'AA'; Outlook Stable
Short-Term Local-Currency IDR affirmed at 'F1+'
Viability Rating affirmed at 'bbb'
Support Rating affirmed at '1'
Guaranteed foreign-currency senior debt affirmed at 'AA'
Guaranteed local-currency senior debt affirmed at 'AA+'
Commercial paper programme affirmed at 'F1+'

TSB Bank Limited
Long-Term IDR affirmed at 'A-'; Outlook Stable
Short-Term IDR affirmed at 'F2'
Long-Term Local-Currency IDR assigned at 'A-'; Outlook Stable
Short-Term Local-Currency IDR assigned at 'F2'
Viability Rating affirmed at 'a-'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor'
Registered certificates of deposit affirmed at 'F2'

Southland Building Society
Long-Term Foreign-Currency IDR affirmed at 'BBB'; Outlook Stable
Short-Term Foreign-Currency IDR affirmed at 'F2'
Long-Term Local-Currency IDR affirmed at 'BBB'; Outlook Stable
Short-Term Local-Currency IDR affirmed at 'F2'
Viability Rating affirmed at 'bbb'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor'
Commercial paper affirmed at 'F2'
Long-term senior unsecured debt (deposits from customers) affirmed
at 'BBB+'

The Co-operative Bank Limited
Long-Term Foreign-Currency IDR affirmed at 'BBB'; Outlook Stable
Short-Term Foreign-Currency IDR affirmed at 'F2'
Long-Term Local-Currency IDR assigned at 'BBB'; Outlook Stable
Short-Term Local-Currency IDR assigned at 'F2'
Viability Rating affirmed at 'bbb'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor'
Subordinated debt affirmed at 'BBB-'

Nelson Building Society
Long-Term Foreign-Currency IDR affirmed at 'BB+'; Outlook Stable
Short-Term Foreign-Currency IDR affirmed at 'B'
Long-Term Local-Currency IDR affirmed at 'BB+'; Outlook Stable
Short-Term Local-Currency IDR affirmed at 'B'
Viability Rating affirmed at 'bb+'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor'

Credit Union Baywide
Long-Term Foreign-Currency IDR affirmed at 'BB'; Outlook Stable
Short-Term Foreign-Currency IDR affirmed at 'B'
Long-Term Local-Currency IDR assigned at 'BB'; Outlook Stable
Short-Term Local-Currency IDR assigned at 'B'
Viability Rating affirmed at 'bb'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor'

Wairarapa Building Society
Long-Term Foreign-Currency IDR affirmed at 'BB+'; Outlook Stable
Short-Term Foreign-Currency IDR affirmed at 'B'
Long-Term Local-Currency IDR affirmed at 'BB+'; Outlook Stable
Short-Term Local-Currency IDR affirmed at 'B'
Viability Rating affirmed at 'bb+'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor'



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


CONTINUUM WIND: Fitch Withdraws B+ Rating on USD Senior Notes
-------------------------------------------------------------
Fitch Ratings has withdrawn the 'B+(EXP)' expected rating assigned
to Continuum Wind Energy Ltd's proposed US dollar senior notes as
the forthcoming debt issuance is no longer expected to convert to
final ratings. The expected rating on the notes that were to be
issued by Continuum's wholly owned subsidiary, Continuum Energy
Levanter Pte Ltd., was assigned on July 18, 2017.

RATING SENSITIVITIES

Not applicable



=============
V I E T N A M
=============


BANK FOR FOREIGN TRADE: S&P Affirms 'BB-/B' ICR, Outlook Stable
---------------------------------------------------------------
S&P Global Ratings said it affirmed its 'BB-' long-term and 'B'
short-term issuer credit ratings on Bank for Foreign Trade of
Vietnam (Vietcombank). The outlook on the long-term rating is
stable. S&P also affirmed and then withdrew its 'axBB+' long-term
and 'axB' short-term ASEAN regional scale ratings on the Vietnam-
based bank (see "S&P To Withdraw ASEAN And Greater China Regional
Scale Ratings; Global Scale Ratings Unaffected," published on
RatingsDirect on July 21, 2017).

S&P said, "At the same time, we removed the long-term rating from
under criteria observation (UCO), where we had placed it after our
revised criteria went into effect (see "Financial Institution
Ratings Placed Under Criteria Observation After Risk-Adjusted
Capital Framework Criteria Published," published July 20, 2017)."

"We affirmed the ratings primarily because we expect Vietcombank
to maintain its strong franchise, and satisfactory profitability
and asset quality compared with that of its peers in Vietnam,"
said S&P Global credit analyst Amit Pandey.

S&P said, "We see a high likelihood that the government of Vietnam
would provide timely and sufficient extraordinary support to
Vietcombank in the event of financial distress. The bank's weak
capitalization tempers these strengths. Further, after applying
our revised capital adequacy criteria in a review of the bank's
risk-adjusted capital (RAC) ratio, we are likely to maintain our
current assessment of the bank's capital and earnings. We assess
the bank's stand-alone credit profile (SACP) as 'bb-'.

"Our assessment of Vietcombank's business position as strong
reflects our view that the bank will maintain its market position
and business stability over the next 12-18 months. The bank is
among the top four in Vietnam, with a deposit market share of
about 10%.

"We believe Vietcombank will have to raise capital or reduce cash
dividends in the next 12-18 months to maintain its growth momentum
and build a capital cushion. We expect the bank's pre-
diversification RAC ratio to be 3%-3.5% over the next 12-18
months. We anticipate that the bank's loan growth will be 15%-16%.
We also expect profitability to marginally improve, with a ratio
of core earnings to average assets of 1%-1.1%, due to improving
net interest margins (given increasing share of retail loans) and
lower credit costs compared with the past five years'."

Vietcombank's asset quality and provision coverage are better than
the industry average in Vietnam, with a gross nonperforming loan
(NPL) ratio of 1.5% as of March 31, 2017, compared with the
industry average of 2.5% at end-2016. The bank has fully provided
for its NPLs and those sold earlier to Vietnam Asset Management
Co.

Vietcombank is likely to continue to benefit from its stable
deposit base and funding that is better than the industry average.
The bank's ratio of total loans (net) to customer deposits is 77%
as of Dec. 31, 2016. We believe the bank has sufficient liquidity
to cover short-term wholesale funding needs.

S&P said, "We attribute the high likelihood of government support
to the bank's high systemic importance, given its size in Vietnam,
and our assessment of the government as highly supportive.
However, the rating gets no uplift from this factor because the
bank's SACP is already the same as the sovereign credit rating on
Vietnam (BB-/Stable/B).

"The stable outlook on Vietcombank reflects our expectation that
the bank's experienced management will navigate tough operating
conditions in Vietnam and maintain the bank's financial profile
over the next 12-18 months.

"We could downgrade Vietcombank if: (1) the bank's pre-
diversification RAC ratio decline to less than 3% on sustainable
basis, which could be because of aggressive expansion, high cash
dividend payouts, or lower profitability; or (2) its asset quality
declines substantially.

"We are unlikely to upgrade Vietcombank over the next 12-18
months."


BANK FOR INVESTMENT: S&P Affirms 'B+/B' ICR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings affirmed the 'B+' long-term and 'B' short-term
issuer credit ratings on the Joint Stock Commercial Bank for
Investment and Development of Vietnam (BIDV). The outlook on the
long-term rating is stable.

S&P said, "We also affirmed and withdrew our 'axBB' long-term and
'axB' short-term ASEAN regional scale issuer ratings on the bank
(see article titled, "S&P To Withdraw ASEAN And Greater China
Regional Scale Ratings; Global Scale Ratings Unaffected,"
published on RatingsDirect on July 21, 2017)."

The issuer credit rating on BIDV reflects the bank's strong
franchise, and satisfactory profitability and asset quality as
compared with its peers in Vietnam. The bank's very weak
capitalization tempers these strengths. The rating benefits from
one notch of government support given the bank's size, government
ownership, and systemic importance to Vietnam's banking system.

S&P said, "We have lowered our assessment of BIDV's stand-alone
credit profile (SACP) to 'b' from 'b+'. This reflects our view
that the bank's risk-adjusted capital (RAC) ratio is likely to
remain less than 2% over the next 12 to 18 months. Our calculation
of the bank's RAC ratio was negatively affected by S&P Global
Ratings' updated methodology (titled "Risk-Adjusted Capital
Framework Methodology," July 21, 2017} for assessing bank
capitalization. Intrinsic pressure on capitalization also occurred
due to the bank's history of rapid loan growth, peaking at 34% in
2015; and high dividend payout, averaging 50%-60% of net income."

BIDV's shift in lending focus to the retail sector will diversify
its business and enhance its yield. The bank plans to moderate its
loan growth to 15%-16% in 2017 and 2018, with a focus on the
retail sector alongside its traditional strengths in the large
corporate and state-owned sector. Execution, however, is likely to
be challenging, considering that private sector banks are well-
entrenched in the retail segment and competition is stiff.
Management has recognized the need for capital conservation to
support growth, and S&P expects the bank's dividend payout to
gradually decline from a high base.

BIDV had in 2016 embarked on a disciplined identification and
cleanup (via provisioning) of legacy bad loans. Gross
nonperforming loans (NPLs) increased slightly to 2% in 2016 from
1.7% in 2015. S&P believes this reflects more stringent
identification and reclassification of potentially weak loans,
rather than a fundamental deterioration in underlying asset
quality. Credit provisioning costs are notably higher in 2016
compared with 2015, and are likely to remain somewhat elevated
going into 2017 to support the bank's cleanup efforts.

The stable outlook on BIDV reflects S&Ps's expectation that the
bank will maintain its strong franchise, satisfactory
profitability, and improve its asset quality, especially via
resolution of legacy bad loans, over the next 12 to 18 months.

S&P said, "We could downgrade BIDV if its asset quality declines
substantially due to aggressive loan growth or deterioration in
the operating environment. Our base-case expectations factor in
15%-16% of loan growth and robust economic growth of 6.2% in 2017.

"We could raise the rating on BIDV if we raise the bank's 'b' SACP
by two notches, which we believe is unlikely. This could happen if
large capital-raising activity improves the bank's pre-
diversification RAC ratio above 3%, mostly likely through a large-
scale sale of a stake in the bank to a strategic investor.
However, any sale of a stake in the bank has been protracted so
far."


VIETNAM JOINT: S&P Alters Outlook to Negative & Affirms BB-/B ICR
-----------------------------------------------------------------
S&P Global Ratings said it revised its outlook on Vietnam Joint
Stock Commercial Bank for Industry and Trade (Vietinbank) to
negative from stable. At the same time, S&P affirmed the 'BB-'
long-term and 'B' short-term issuer credit ratings on the
Vietnamese bank.

S&P said, "In line with the outlook revision, we lowered our long-
term ASEAN regional scale issuer rating on Vietinbank to 'axBB'
from 'axBB+'. We affirmed our 'axB' short-term ASEAN regional
scale rating. We then withdrew both of the ASEAN regional scale
ratings (see "S&P To Withdraw ASEAN And Greater China Regional
Scale Ratings; Global Scale Ratings Unaffected," published on
RatingsDirect on July 21, 2017).

"In addition, we removed the long-term issuer credit rating from
under criteria observation (UCO), where we had placed it after our
revised criteria went into effect (see "Financial Institution
Ratings Placed Under Criteria Observation After Risk-Adjusted
Capital Framework Criteria Published," published July 20, 2017)."

"We revised the outlook to negative to reflect a one-in-three
likelihood that Vietinbank's capitalization could weaken over the
next 12-18 months," said S&P Global Ratings credit analyst Amit
Pandey.

S&P said, "The outlook revision follows our review of the bank's
risk-adjusted capital (RAC) ratio under our revised capital
adequacy criteria. While we expect the bank to maintain its pre-
diversification RAC ratio at around 3%, downside risk could emerge
in the case of higher-than-expected growth, cash dividend payouts,
or weaker-than-expected profitability.

"We affirmed the ratings primarily because we expect Vietinbank to
maintain its strong franchise and satisfactory funding compared
with its peers in Vietnam. The bank's weak capitalization tempers
its strengths. We assess the bank's stand-alone credit profile
(SACP) as 'bb-'.

"Under our base-case scenario, we anticipate that the bank's loan
growth will be 15%-16% for the next 12-18 months. Profitability is
likely to marginally improve, with a ratio of core earnings to
average assets of around 0.8%-0.85%, due to higher net interest
margins (given an increasing share of retail loans). We believe
Vietinbank will have to raise capital or curtail cash dividends in
the next 12-18 months to build a capital cushion and maintain its
growth momentum.

"We expect Vietinbank to maintain its market position and business
stability over the next 12-18 months, underpinning our assessment
of its business position as strong. The bank is among the top
three in Vietnam with a deposit market share of over 10%."

Vietinbank's asset quality and provision coverage for
nonperforming loans (NPLs) is better than industry peers' in
Vietnam. The bank has a gross NPL ratio of around 1% against the
industry average of 2.5% as of end-2016; however, it has yet to
fully provide for NPLs sold to Vietnam Asset Management Co. Ltd.

S&P said, "Vietinbank is likely to continue to benefit from its
stable deposit base and large distribution network. We believe the
bank has sufficient liquidity to cover short-term wholesale
funding needs.

"The negative outlook on Vietinbank reflects our expectation of at
least a one-in-three likelihood that its capitalization could
weaken over next 12-18 months.

"We could downgrade Vietinbank if: (1) the bank's pre-
diversification RAC ratio declines to less than 3% on sustainable
basis, which could be because of higher-than-expected growth, cash
dividend payouts; or weaker-than-expected profitability, possibly
due to credit provisions; or (2) its asset quality declines
substantially.

"We could revise the outlook to stable if the bank builds a
capital cushion such that its pre-diversification RAC ratio is
comfortably above 3% on sustainable basis."


VIETNAM TECHNOLOGICAL: S&P Revises Rating Outlook to Stable
-----------------------------------------------------------
S&P Global Ratings revised its rating outlook on Vietnam
Technological And Commercial Joint Stock Bank (Techcombank) to
stable from negative. S&P affirmed its 'BB-' long-term and 'B'
short-term issuer credit ratings on the bank.

S&P said, "We raised our long-term ASEAN regional scale issuer
rating on Techcombank to 'axBB+' from 'axBB' following the outlook
revision. At the same time, we affirmed our 'axB' short-term ASEAN
regional scale rating on the bank. We also withdrew the ASEAN
regional scale ratings on Techcombank in line with our policy to
no longer assign these ratings (see "S&P To Withdraw ASEAN And
Greater China Regional Scale Ratings; Global Scale Ratings
Unaffected," published on RatingsDirect on July 21, 2017).

"We revised the rating outlook on Techcombank to stable because we
believe the bank can sustain its above-average profitability over
the next 12 months despite competition.

"In our view, Techcombank has adopted a balanced approach toward
profit enhancement and risk-taking. The bank is pursuing a retail-
focused strategy, particularly among the mass affluent, while
downsizing its chunky corporate exposures to enhance yields. It is
also considering downsizing its real estate and construction
exposure to de-risk its loan book."

Techcombank's asset quality has been improving since 2013
reflecting the bank's efforts to clean up its legacy weak loans
through increased provisions, and rehabilitation and recovery of
bad loans. Techcombank's gross nonperforming loan ratio declined
to 1.6% in 2016, from a peak of 3.7% in 2013. Its restructured
loans also fell to 0.5% from 9.7% over the same period.

S&P said, "We expect Techcombank to maintain its capitalization
and liquidity over the next 12 months. The bank has a history of
retaining profits with zero dividend payout to preserve capital to
support growth. Techcombank's stable deposit base is backed by a
sizable contribution from the retail segment, which underpins its
funding profile.

"The stable outlook on Techcombank reflects our view that the bank
will maintain its status as a leading privately owned bank in
Vietnam over the next 12 months with an entrenched retail
franchise and above-average profitability.

"We may lower the rating if Techcombank's business position
suffers due to strategic missteps or if its pre-diversification
risk-adjusted capital ratio falls below 3%.

"An upgrade is unlikely, in our view. The rating on Techcombank is
subject to the credit standing of Vietnam because the bank
primarily operates in that country. We do not expect the bank to
be able to withstand stress associated with a sovereign default."



                             *********

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

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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Peter Chapman at 215-945-7000 or Joseph Cardillo at 856-381-8268.



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