TCRAP_Public/171002.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

            Monday, October 2, 2017, Vol. 20, No. 195

                            Headlines


C H I N A

COUNTRY GARDEN: S&P Lowers Senior Unsecured Notes Rating to 'BB-'
HEALTH AND HAPPINESS: S&P Raises Issuer Rating to 'BB', Off UCO
HONGHUA GROUP: Fitch Affirms 'CCC' Long-Term FC IDR
LAI FUNG HOLDINGS: S&P Lowers Senior Unsecured Debt Rating to 'B'
LIANGSHAN STATE-OWNED: Fitch Publishes BB+ Long-Term IDR

SUNAC CHINA: S&P Affirms 'B+' CCR With Negative Outlook
WANDA COMMERCIAL: S&P Lowers CCR to 'BB', Outlook Negative


H O N G  K O N G

MELCO RESORTS: S&P Raises US$1BB Sr Unsecured Debt Rating to 'BB'
STUDIO CITY: S&P Raises US$825MM Guaranteed Notes Rating to 'B+'


I N D I A

KARAVALI FREEZERS: Ind-Ra Migrates BB- Rating to Non-Cooperating
LORDS MARK: Ind-Ra Affirms 'BB+' Issuer Rating, Outlook Stable
MN BIO-TECHNOLOGY: Ind-Ra Affirms 'BB-(SO)' Rating on NCDs
MN TAKSHILA: Ind-Ra Affirms 'BB-(SO)' Rating on NCDs
MORNING STAAR: Ind-Ra Moves BB Issuer Rating to Non-Cooperating

NAVA BHARATH: Ind-Ra Downgrades Bank Loans Rating to 'BB'/Stable
RAMKRISHNA COTSPIN: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
SAVANI TRANSPORTS: Ind-Ra Withdraws 'D' Long-Term Issuer Rating
SJLT SPINNING: Ind-Ra Moves BB+ Issuer Rating to Non-Cooperating
TUNIC FASHION: Ind-Ra Moves BB Issuer Rating to Non-Cooperating


I N D O N E S I A

SMARTFREN TELECOM: Fitch Affirms CCC National Long-Term Rating


S I N G A P O R E

GEO COAL: Fitch Rates Proposed USD Sr. Unsecured Notes B+
GEO ENERGY: Moody's Assigns B2 Rating to Proposed Unsec. Notes
GEO ENERGY: S&P Affirms 'B' CCR on Bond Re-Launch, Outlook Stable
INDIKA ENERGY: Fitch Rates Proposed USD Notes B+
INDIKA ENERGY: Moody's Assigns B2 Rating to Proposed Sr. Notes


                            - - - - -



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C H I N A
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COUNTRY GARDEN: S&P Lowers Senior Unsecured Notes Rating to 'BB-'
-----------------------------------------------------------------
S&P Global Ratings said that it has reviewed its senior unsecured
issue-level ratings on Country Garden Holdings Co. Ltd.
(BB/Positive/--) that were labeled as "under criteria observation"
(UCO) after publishing its revised issue ratings criteria,
"Reflecting Subordination Risk In Corporate Issue Ratings," on
Sept. 21, 2017. S&P said, "With our criteria review complete, we
are removing the UCO designation from these ratings and are
lowering our issue rating on Country Garden's senior unsecured
debts to 'BB-' from 'BB'."

S&P said, "These rating actions stem solely from the application
of our revised issue rating criteria and do not reflect any change
in our assessment of the corporate credit ratings on issuers of
the affected debt issues.

"Our rating action takes into consideration Country Garden's
capital structure, which consists of Chinese renminbi (RMB) 36
billion in secured debt and RMB62 billion in unsecured debt issued
or guaranteed by Country Garden, and RMB64 billion in unsecured
debt issued by or guaranteed its operating subsidiaries as of Dec.
31, 2016.

"We have therefore arrived at the following analytical conclusion:
The senior unsecured notes issued by Country Garden are rated 'BB-
', a notch below the corporate credit rating on Country Garden.
The notching reflects the significant subordination of these
senior unsecured debts relative to other debt in the issuer's
consolidated capital structure."


HEALTH AND HAPPINESS: S&P Raises Issuer Rating to 'BB', Off UCO
---------------------------------------------------------------
S&P Global Ratings said that it has reviewed its senior unsecured
issue-level ratings for Health and Happiness (H&H) International
Holdings Ltd. that were labeled as "under criteria observation"
(UCO) after publishing its revised issue ratings criteria,
"Reflecting Subordination Risk In Corporate Issue Ratings" on
Sept. 21, 2017. With its criteria review complete, S&P is removing
the UCO designation from this rating and are raising its issue
rating on Health and Happiness (H&H) International Holdings Ltd.'s
US$600 million senior unsecured notes to 'BB' from 'BB-'.

S&P said "This rating action stems solely from the application of
our revised issue rating criteria and does not reflect any change
in our assessment of the corporate credit ratings for issuers of
the affected debt issues.

"Our rating action takes into consideration H&H's capital
structure, which consists of US$600 million (equivalent to about
Chinese renminbi (RMB) 4.0 billion) in senior unsecured notes and
about RMB2.6 billion in senior secured bank loans borrowed by its
operating subsidiary. We rate the senior unsecured notes at 'BB',
the same as the corporate credit rating on the company, because we
believe the risk of subordination is not significant."


HONGHUA GROUP: Fitch Affirms 'CCC' Long-Term FC IDR
---------------------------------------------------
Fitch Ratings has affirmed Honghua Group Limited's (Honghua) Long-
Term Foreign-Currency Issuer Default Rating (IDR) at 'CCC'. The
company's senior unsecured rating and rating on the USD200 million
7.45% senior unsecured notes maturing 2019 have also been affirmed
at 'CCC'; the Recovery Rating remains at 'RR4'.

The affirmation resolves the Rating Watch Positive on the rating,
which was in place since Dec. 20, 2016. The ratings have been
affirmed because the operating environment for the company, which
mainly manufactures drilling rigs, remains challenging due to the
uncertainty of the global oil market. Fitch expects the company's
EBITDA and FFO to remain negative in 2017-2018, although the
group's short-term liquidity has improved after a recent equity
placement.

KEY RATING DRIVERS

Weak Oil Market Suppresses Demand: Honghua's overall sales
declined by 36.8% yoy in 1H17 to CNY819 million as the low oil
price continued to affect the industry value chain and led to a
substantial decrease in both volume and price in the company's
drilling rig, parts, and oil and gas services businesses.
Honghua's offshore drilling business has not begun any new
projects after the company's LNG power ship project ended in 1H17,
resulting in a drop in sales in this segment.

Profitability Remains Stressed: The company's adjusted EBITDA
margin also deteriorated significantly yoy to -22.3% in 1H17 from
-3.0% in 1H16. This was the company's third consecutive six-month
period of negative EBITDA. The losses were due to the fall in
revenue while part of the costs of its land drilling rigs and oil-
and-gas services businesses remained fixed. In addition, Honghua's
EBITDA is highly correlated with oil prices, and with Fitch
forecasting only a gradual recovery in the benchmark Brent oil
price in 2017-2020, the company's profitability is not likely to
rebound in 2017-2018.

PLNG Deal Timing Uncertain: Honghua in October 2016 entered into
an agreement with LNG 21 Partners, LLC to construct and deliver an
offshore LNG platform (PLNG) worth around USD2.2 billion. However,
the timeline for delivery and profit recognition remain uncertain
for the project, which is Honghua's first PLNG contract. According
to Honghua, the project just completed the Pre-FEED (pre- front-
end engineering design) stage and will move on to the FEED stage.
All details and terms of the contract will only be set within
three months of the completion of the FEED study. Based on
research published by PWC, the FEED stage of some LNG projects can
last as long as two years.

CASIC Synergy Not Clear Yet: Honghua completed a equity placement
to China Aerospace Science and Industry Corporation (CASIC) in May
2017, which will give Honghua better funding access to refinance
its short-term obligations due to CASIC's state-owned enterprise
status and boost the company's short-term liquidity. However,
Fitch does not see any direct impact on Honghua's operations yet.

Fitch will closely monitor how CASIC will facilitate and assist
the company's operations and access to funding. Although the
placement will make CASIC the largest shareholder in Honghua with
a 29.9% stake, it is too soon to tell if there are legal,
operational or strategic linkages between the two entities. As a
result, Fitch has not applied its parent-subsidiary linkage
methodology to determine if the ratings of the two entities should
be linked.

Transformation to Take Time: Honghua in its 1H17 financial
statement said it will gradually shift and diversify its business
towards the natural gas and offshore drilling rig businesses,
which will help it tap opportunities that arise from China's
emphasis on developing cleaner energy sources. However, Fitch
believes the transformation will take time to contribute to
profitability and will carry execution risks in the short term.
For example, Honghua could offer aggressive payment terms during
its entry into the natural gas and offshore drilling rig
industries, which would increase its working capital needs.

DERIVATION SUMMARY

Honghua's 'CCC' rating reflects substantial weakness in the
company's operations and financial performance amid a weak
operating environment. Honghua exhibited much higher volatility in
its profitability and leverage than other capital goods
manufacturers, such as Zoomlion Heavy Industry Science and
Technology Co. Ltd (B-/Stable) and Hilong Holding Limited (BB-
/Negative), during the industry downturn. Meanwhile, Honghua's
financial metrics are worse than those of companies rated in the
'B' category. Compared with Zoomlion and Hilong, the group has
weaker FFO margin and FFO fixed-charge coverage.

KEY ASSUMPTIONS

Fitch's key assumptions within Fitch ratings case for the issuer
include:
- Capex of CNY100 million each year in 2017 and 2018
- Revenue to decline in 2017 and start to recovery slowly in
   2018
- EBITDA remained negative in 2017 and 2018
- No major M&As
- No dividend in 2017-2020

Key Recovery Rating Assumptions:
Fitch recovery analysis is based on the liquidation value at the
moment as the company remains loss-making at the moment.
Assumptions rationale as below:
- Recovery analysis applied a haircut of 60% for account
   receivables, a 70% haircut for inventory and a 60% haircut for
   all property, plant and equipment. Fitch has applied a higher
   haircut on accounts receivable, inventory and property, plant
   and equipment, as Fitch expects recovery rates to be low in
   the event of an extended market downturn.
- Pledged cash of CNY315 million against bank borrowings is
   considered as available to creditors.
- 10% administrative claims are applied on the liquidation
   value.

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action
- Substantial improvement in operations and profitability
- Evidence of moderate or strong parent-subsidiary linkage with
   the largest shareholder, CASIC

Developments That May, Individually or Collectively, Lead Negative
Rating Action
- Substantial deterioration in liquidity

LIQUIDITY

Adequate Liquidity: The equity placement has improved Honghua's
short-term liquidity. Its net debt dropped to CNY1.9 billion at
end-1H17 from CNY3.4 billion at end-2016, while cash in hand
increased to CNY2.2 billion from CNY856 million. Fitch believes
that CASIC's shareholding may improve Honghua's ability to
refinance its short-term obligations. However, the company's
liquidity is likely to come under pressure again if there is no
significant improvement in the operation environment in the medium
term.


LAI FUNG HOLDINGS: S&P Lowers Senior Unsecured Debt Rating to 'B'
----------------------------------------------------------------
S&P Global Ratings said that it has reviewed its senior unsecured
issue-level rating for Lai Fung Holdings Ltd. (B+/Stable/--) that
was labeled as "under criteria observation" (UCO) after publishing
its revised issue ratings criteria, "Reflecting Subordination Risk
In Corporate Issue Ratings" on Sept. 21, 2017. With its criteria
review complete, S&P is removing the UCO designation from this
rating and are lowering its issue rating to 'B' from 'B+' on the
Chinese reminbi (RMB) 1.8 billion senior unsecured notes issued by
Lai Fung.

S&P said, "This rating action stems solely from the application of
our revised issue rating criteria and does not reflect any change
in our assessment of the corporate credit rating on the China-
focused developer.

"Our rating action takes into consideration Lai Fung's capital
structure. This consists of about RMB2.7 billion of secured debt
and RMB823 million of unsecured debt issued by the company's
operating subsidiaries. We therefore arrived at the following
analytical conclusion: The senior unsecured notes issued by Lai
Fung are rated a notch below our corporate credit rating on the
company, reflecting significant subordination of this senior
unsecured debt relative to other debt in the issuer's consolidated
capital structure."


LIANGSHAN STATE-OWNED: Fitch Publishes BB+ Long-Term IDR
--------------------------------------------------------
Fitch Ratings has published Liangshan State-Owned Investment and
Development Co., Ltd.'s (LSID) Long-Term Foreign- and Local-
Currency Issuer Default Ratings of 'BB+'. The Outlook is Stable.

KEY RATING DRIVERS

Links to Liangshan Yi Autonomous Prefecture: The ratings of LSID
are credit linked to, but not equalised with, Fitch's internal
assessment of the creditworthiness of the Liangshan Yi Autonomous
Prefecture (Liangshan). This is because Liangshan holds a majority
stake in LSID, has strong control and oversight over the entity,
and LSID's operations are of high strategic importance to the
prefecture. As a result, there is a high likelihood the prefecture
would extend extraordinary support to LSID, if needed.

Legal Status Assessed at 'Mid-Range': LSID is a leading public-
sector entity in Liangshan. It is registered as a wholly state-
owned limited liability company under China's Company Law, which
means it may file for bankruptcy and not all of its employees are
civil servants. The State-owned Assets Supervision and
Administration Commission of Liangshan (Liangshan SASAC), which is
appointed by the prefectural government to supervise state-owned
enterprises, owns 62% of LSID. The remaining 38% is owned by 10
county-level SASACs or treasuries. Under LSID's current legal
status, any major decisions, such as appointment of board members,
change in shareholding structure, or operating and financing
plans, will require approval from Liangshan SASAC.

Strategically Important to Prefecture: LSID is the sole financing
and investment platform responsible for the prefecture's mineral
product and hydro-electricity operation as well as transport and
infrastructure construction. The prefectural government has also
tasked LSID with boosting the economy and easing poverty. The
company is the leader in the prefecture in facilitating resource
mining, improving infrastructure, advancing the education level of
minority groups, increasing access to the prefecture and enhancing
the prefecture's competiveness by attracting external investments.

Government Support for Entity: Liangshan's government has been
supporting LSID via financial subsidies and capital and resource
injections to ensure LSID is able to sustain its operations.
Specific funds have been allocated to support LSID's poverty-
alleviation policy role as well. In 2015 and 2016, Liangshan SASAC
and the other shareholders injected assets and capital that made
up 60% of LSID's increase in assets in 2015 and 13% in 2016.

Strong Control and Oversight: Liangshan SASAC approves LSID's
operating and financing plans, appoints and supervises its board
members, and audits and monitors the company's performance.

Liangshan's Creditworthiness: Liangshan is an autonomous
prefecture occupying much of the southern extremity of Sichuan
Province in southwestern China. Liangshan's economy is relatively
small with a gross regional product (GRP) of CNY140.39 billion in
2016, which is below the average of all prefectures in Sichuan.
However, GRP increased by 6% in 2016 and prospects are bright as
the prefecture has been the focus of central and provincial
government efforts to alleviate poverty. A significant portion of
the prefecture's revenue comes from transfers from higher-level
governments.

Weak Standalone Profile: LSID's financial profile is characterised
by high leverage due to large capex. Total debt/Fitch-calculated
EBITDA averaged around 15x in 2014-2016. The ratio of FFO to debt
and interest has been low; it averaged 0.08x in 2014-2016 due to
weak operating cash flow. LSID's assets continue to grow rapidly
as a result of continued asset injections from various government
owners. Total assets rose 46% in 2016. Fitch expects the trend of
high leverage, low debt coverage and rapid asset growth to
continue in the medium term due to infrastructure development
needs in the prefecture and the company's policy role to alleviate
poverty. As such, Fitch assesses the standalone profile of LSID in
the 'B' category.

RATING SENSITIVITIES

Links with Municipality: An upgrade of Fitch's internal credit
view on Liangshan Prefecture, as well as a stronger or more
explicit support commitment from the government may trigger
positive rating action on LSID. Significant weakening of the
entity's strategic importance to the prefecture, dilution of the
prefecture's shareholding, or reduced explicit and implicit
prefectural support may result in a downgrade.

A downgrade may also stem from weaker fiscal performance or
increased indebtedness of the prefectural government, leading to
deterioration in its creditworthiness.


SUNAC CHINA: S&P Affirms 'B+' CCR With Negative Outlook
-------------------------------------------------------
S&P Global Ratings affirmed its 'B+' long-term corporate credit
rating on China-based property developer Sunac China Holdings Ltd.
(Sunac) and 'B' long-term issue rating on Sunac's outstanding
senior unsecured notes. The outlook is negative. S&P removed all
ratings from CreditWatch, where it had placed them with negative
implications on July 11, 2017.

S&P said, "We have affirmed the ratings because we expect Sunac's
revenue to grow and margin to recover, moderately improving its
debt leverage. However, we still expect the company's leverage to
remain high over the next 12 months, due to its aggressive
expansion appetite.

"We forecast the company's debt leverage will only moderately
improve over the coming 12 months despite our expectation of the
company's revenue growth and margin recovery. We also expect Sunac
to maintain its good sales execution, significantly reduce land
acquisitions, and not make any new investments during the period.

"These assumptions underpin our expectation that the company's
debt-to-EBITDA ratio, including proportional consolidated
financials of joint ventures (JVs) and associates, will be at 15x-
18x in 2017 and will marginally improve in 2018. In addition, we
assess Sunac's liquidity as adequate, given its cash on hand can
fully cover its current debt as of June 2017 and our expectation
of satisfactory cash collection from sales.

"We view Sunac's current pace of expansion as unsustainable given
that the company heavily relies on existing good market conditions
to support its high growth model. Sunac made significant land
acquisitions and expanded into noncore businesses during the year.
Including the asset acquisition from Dalian Wanda Commercial
Properties Ltd., we estimate that Sunac spent over Chinese
renminbi (RMB) 100 billion, about 65% of the total contracted
sales achieved during the first eight months."

However, management has committed to controlling its capital
expenditure and financial leverage over the next two years. The
company aims to reduce its net gearing ratio to below 200% by
year-end, 90% in 2018, and 70% in 2019.

S&P said, "Nevertheless, we consider the company's plans have
limited details to achieve this target, aside from reduced land
spending. A deviation from the company's stated intention to
reduce debt funding acquisitions and failure to deleverage could
result in further rating pressure.

"Tempering Sunac's high leverage and aggressive appetite is the
company's satisfactory sales execution. The developer accumulated
total contracted sales of RMB160 billion during the first eight
months. Sunac estimated that it has total saleable resources of
RMB387.9 billion for the second half of 2017. We expect the
developer will achieve total sales of RMB280 billion in 2017,
materially higher than our prior forecast of RMB225 billion. We
estimate the sales amount will further expand 20%-25% in 2018,
underpinned by large and good quality land reserves of over 100
million square meters (which excludes the projects recently
acquired from Dalian Wanda Commercial), established branding in
the mid-to-high end segment, and a record of good sales execution.

"In addition, we expect Sunac's profitability will improve due to
a material price increase in higher-tier cities during the past
two years. Sunac has large exposures to these cities. We also
expect the company to gradually clear low-quality assets that it
acquired from its mergers and acquisitions. We forecast its
overall gross margin will be slightly over 20% in 2017 and 2018.
In the first half of 2017, Sunac's gross margin was 19.6% (18.2%
on an attributable basis if JVs and associates are included).
We view the investment in Leshi and expansion into noncore
businesses as credit negative, given the loss-making nature of the
businesses and potential contingent risks. In the first half of
2017, Sunac made an impairment improvement of about RMB1.1 billion
on its investment in Leshi in less than six months, which
demonstrates its lack of investment discipline.

"However, we do not expect Sunac to invest further capital in
Leshi, including funding Leshi's operations or guaranteeing any of
the company's borrowings. We believe Leshi will need time to
restore normal business operations and creditor's and investor's
confidence. We see limited synergies on this investment over the
next 12 months. Therefore, we continue to assess the company's
financial policy as negative to reflect event risks.
The positive comparable rating analysis reflects our view that the
business risk profile of Sunac is at the strong end of the
satisfactory category.

"The negative outlook reflects our view that Sunac's financial
leverage will remain high and may not improve materially over the
next 12 months. Such improvement would largely hinge on continued
strong sales execution as well as controlled land acquisitions and
expansion appetite.

"We could downgrade the company if Sunac remains aggressive in
debt-funded acquisitions such that its financial leverage does not
significantly improve. An EBITDA interest coverage of below 1x
could also indicate such weakness.

"We could also lower the rating if Sunac's liquidity materially
weakens. This could happen if its contracted sales are materially
lower than our expectation of about RMB280 billion in 2017 and
RMB365 billion in 2018, while it maintains its pace on expansion.

"We could revise the outlook to stable if Sunac demonstrates good
financial discipline and develops a record of prudent financial
management such that its debt leverage improves significantly
better than our base case of around 15x-18x."


WANDA COMMERCIAL: S&P Lowers CCR to 'BB', Outlook Negative
----------------------------------------------------------
S&P Global Ratings lowered the its long-term corporate credit
rating on China-based property developer Dalian Wanda Commercial
Properties Co. Ltd. (Wanda Commercial) to 'BB' from 'BBB-'. S&P
said, "We also downgraded Wanda Commercial's 100% owned subsidiary
Wanda Commercial Properties (Hong Kong) Co. Ltd. (Wanda HK) to
'BB-' from 'BB+'. The rating outlooks on the two companies are
negative. Further, we downgraded our rating on the senior
unsecured notes guaranteed by Wanda HK to B+ from BB. We also
removed all these ratings from CreditWatch, where they were placed
with negative implications on July 17, 2017."

S&P said, "We lowered the ratings to reflect the uncertainty over
Wanda Commercial's change in business model following the
company's abrupt decision to sell the bulk of its property
development projects and its entire hotels portfolio in July 2017.
We expect Wanda Commercial's market position in its property
development segment to weaken following the transition. Moreover,
the prospects of the company's "A-share" listing are unclear, and
information risks have heightened.

"We believe there are lingering risks related to further shifts in
Wanda Commercial's business strategy. The company's appetite for
expansion is likely to stay high and it lacks strategic clarity
and predictability, in our view. Although the company has
mentioned that it will focus on its commercial property segment,
it has had swift changes in its business and financial goals over
the past few years. While Wanda Commercial emphasized an asset-
light model, it also significantly expanded its cultural and
tourism projects. This expansion required large capital outlays,
resulting in higher financial leverage in the past two years.
Similarly, despite disposing of projects at book value, Wanda
Commercial is again in negotiations with the Gansu provincial
government for a potential new cultural and tourism project in the
city of Lanzhou."

Wanda Commercial's sale of the bulk of its land reserves will
weaken its market position and competitive advantage, in our view.
The success of the company's commercial investment portfolio has
been underpinned by the strong cash generation of its property
development business as its commercial properties mature. In
addition, we believe that Wanda Commercial's comparative advantage
to directly negotiate with local governments for mixed-use land
plots at low costs may weaken.

S&P said, "We believe Wanda Commercial's large and stable rental
income and increasingly seasoned rental portfolio continue to be
key strengths for the company. Wanda Commercial has the largest
portfolio of shopping malls in China and an above-average yield
due to its low land costs. The operating performance of the
company's malls remains solid with very strong occupancy.

"We believe the recent large asset sales will benefit Wanda
Commercial's near-term liquidity and debt repayment capability.
However, the company does not have a clear debt reduction plan, in
our view. We expect Wanda Commercial to maintain a high debt and
strong cash balance in the near term. The high cash balance could
enhance the company's financial flexibility for unexpected
situations and provide greater capacity for new investments.
We expect the long-term impact on Wanda Commercial's debt leverage
to be largely neutral. That's because high construction
expenditure for its undelivered residential projects, high capital
expenditure for its large pipeline of commercial properties, and
reduced cash flow from property sales will offset the lower
borrowings. In our base case, we forecast that the debt-to-EBITDA
ratio will moderately improve to 4.0x-4.5x in 2017 and 2018, from
around 5.5x in 2016. We have offset the borrowings with 25% of
surplus cash to reflect the company's transition to a less capital
intensive and less restricted funding model.

"In our view, Wanda Commercial's untested financial policy and
risk tolerance remain a key event risk, particularly the use of
cash--for expansion in other segments, for reentering into
property development, or for other purposes. Despite an increase
in the company's cash position to Chinese renminbi (RMB) 137
billion in the first half of 2017, total debt also grew by a
similar magnitude to RMB279 billion, from RMB224 billion at the
end of 2016.

"In addition, we believe Wanda Commercial's access to funding
could weaken as policymakers in China clamp down on highly
leveraged companies with aggressive expansions overseas. Lenders
could turn cautious on such companies. Also, Wanda Commercial's
funding cost will likely have risen, as reflected in the
significant rise in its bond yields since July 2017."

Information and governance risk for Wanda Commercial is likely to
increase if the company's IPO fails to materialize in 2018.
Although Wanda Commercial continues to publish financial
information on a regular basis, it operates as a private company,
but without any disclosure from its parent. If the relisting plan
does not materialize, S&P sees increased risks that the parent
will extract value from Wanda HK if its own financial position
weakens. In addition, investors who participate in the
privatization may choose to exercise their right to exit the
investment with predefined returns, for which Wanda Commercial may
need to distribute cash for the buyback.

S&P continues to assess Wanda HK as a highly strategic subsidiary
of Wanda Commercial. The rating on the subsidiary is therefore one
notch lower than that on Wanda Commercial.

The negative outlook on Wanda Commercial over the next 12 months
reflects: (1) the increased risks related to the company's access
to funding; (2) the lack of visibility on its IPO; and (3)
although less likely, a possible early redemption of the company's
debt due to failure to secure waivers.

S&P said, "The outlook on Wanda HK reflects the outlook on Wanda
Commercial and our view that Wanda HK will maintain its highly
strategic status to the parent.

"We could lower the rating if Wanda Commercial has any difficulty
in obtaining borrowings at a reasonable cost.

"We may also lower the rating if the company's listing does not
materialize in the next six-12 months, because prolonged private
ownership will likely increase information and governance risks.
Also, continued limited and infrequent information disclosure
could result in a suspension of the rating.

"We may also lower the rating if Wanda Commercial's property sales
deteriorate more rapidly than we expect, or the company increases
its capital expenditure and continues aggressive expansion in
commercial property development or in other non-core segments. The
ratio of debt to EBITDA deteriorating and staying above 5x would
indicate such weakness.

"We may revise the outlook to stable if Wanda Commercial's access
to funding stabilizes, its contingent obligations such as early
repayment of offshore syndicated loan are resolved, and the
company completes the IPO in the next six-12 months."



================
H O N G  K O N G
================


MELCO RESORTS: S&P Raises US$1BB Sr Unsecured Debt Rating to 'BB'
-----------------------------------------------------------------
S&P Global Ratings said that it has reviewed its senior unsecured
issue-level ratings for Melco Resorts Finance Ltd. that were
labeled as "under criteria observation" (UCO) after publishing its
revised issue ratings criteria, "Reflecting Subordination Risk In
Corporate Issue Ratings" on Sept. 21, 2017. With S&P's criteria
review complete, it is removing the UCO designation from this
rating and are raising issue rating on Melco Resorts Finance's
US$1.0 billion senior unsecured notes to 'BB' from
'BB-'.

S&P said, "This rating action stems solely from the application of
our revised issue rating criteria and does not reflect any change
in our assessment of the corporate credit ratings for issuers of
the affected debt issues.

"Our rating action takes into consideration Melco Resorts
Finance's capital structure, which consists of US$1.0 billion
senior unsecured notes and about US$460 million senior secured
credit facilities borrowed by its operating subsidiaries. We rate
the senior unsecured notes at 'BB', the same as the corporate
credit rating on Melco Resorts (Macau) Ltd. (BB/Negative/--),
because we believe the risk of subordination is not significant.

"Melco Resorts Finance is a financing subsidiary of Melco
International Development Ltd. (Melco group). We reference our
issue rating on Melco Resorts Finance's senior unsecured notes to
the corporate credit rating on Melco Resorts (Macau) Ltd., because
we view the latter as the core operating subsidiary and major
driver of the Melco group's credit profile."


STUDIO CITY: S&P Raises US$825MM Guaranteed Notes Rating to 'B+'
----------------------------------------------------------------
S&P Global Ratings said that it has reviewed its senior unsecured
issue-level ratings for Studio City Finance Ltd. that were labeled
as "under criteria observation" (UCO) after publishing its revised
issue ratings criteria, "Reflecting Subordination Risk In
Corporate Issue Ratings," on Sept. 21, 2017. With S&P's criteria
review completed, it is removing the UCO designation from this
rating and are raising its issue rating to 'B+' from 'B' on the
US$825 million senior unsecured debt issued by Studio City Finance
Ltd. and guaranteed by its subsidiaries including Studio City Co.
Ltd. The rating on Studio City's other rated issues remains
unaffected.

S&P said, "This rating action stems solely from the application of
our revised issue rating criteria and does not reflect any change
in our assessment of the corporate credit ratings for issuers of
the affected debt issues.

"Our rating action takes into consideration Studio City's capital
structure, which consists of US$825 million of guaranteed senior
unsecured notes issued by Studio City Finance Ltd. and two senior
secured notes issued by Studio City Co. Ltd. of US$350 million and
US$850 million. We therefore arrived at the following analytical
conclusion: We rate the US$825 million guaranteed senior unsecured
notes issued by Studio City Finance Ltd. at 'B+', one notch below
the corporate credit rating on Studio City. We see material
subordination risk because the class of debt ranks behind a
significant amount of secured debt in the capital structure."




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


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

-- INR50.5 mil. Fund-based limits migrated to non-cooperating
    category IND BB-(ISSUER NOT COOPERATING)/IND A4+(ISSUER NOT
    COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on 30
January 2015. Ind-Ra is unable to provide an update, as the agency
does not have adequate information to review the ratings.

COMPANY PROFILE

KFE, incorporated in 2010 as a partnership entity, processes
seafood at its plant in Udupi Taluk in Karnataka.


LORDS MARK: Ind-Ra Affirms 'BB+' Issuer Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Lords Mark
Industries Private Limited's (LMIPL) Long-Term Issuer Rating at
'IND BB+'. The Outlook is Stable. The instrument-wise rating
actions are:

-- INR17 mil. (reduced from INR20.2 mil.) Term loan due on April
    2020 affirmed IND BB+/Stable rating;

-- INR230 mil. (reduced from INR290 mil.) Fund-based working
    capital limit affirmed IND BB+/Stable/IND A4+ rating; and

-- INR50 mil. Non-fund-based working capital limit withdrawn
    (repaid in full) with WD rating.

KEY RATING DRIVERS

The affirmation reflects LMIPL's continued moderate credit
profile. As per FY17 provisional financials, revenue grew at a
CAGR of 27.9% to INR1,504.5 million during FY12-FY17 (FY16:
INR872.4 million) on account of increased orders from the LED
lights manufacturing segment. As of 30 July 2017, the company
achieved revenue of around INR640 million, including INR330
million from the paper division and INR310 million from the
LED/solar division. It had unexecuted orders worth INR3,250
million at end-August 2017, majority of which are to be executed
by March 2019.

Net financial leverage (net adjusted debt/operating EBITDAR)
deteriorated to 6.1x in FY17P (FY16: 4.4x) due to higher use of
short-term working capital limits and infusion of interest-free
unsecured loan for the LED manufacturing segment. As a result,
total debt increased to INR216 million (INR413.8 million).
However, interest coverage improved to 2.3x in FY17P (FY16: 2.1x)
driven by a relatively lower increase in interest cost than debt
and an increase in absolute EBITDA to INR67.3 million (INR48.8
million). EBITDA margins remained volatile in the range of 4.5%-
6.5% during FY13-FY17 and declined to 4.5% in FY17P (FY16: 5.6%)
on account of management's strategy of propelling sales through
competitive bidding. The management expects the EBITDA margins to
improve in FY18 due to scale benefits.

The ratings continue to factor in LMIPL's moderate liquidity
profile as reflected by 90% average maximum use of fund-based
facilities over the 12 months ended July 2017.

However, the ratings continue to benefit from the promoters' over
two decades of experience in the manufacturing of paper and solar
LED lights.

RATING SENSITIVITIES

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

Negative: Any decline in profitability leading to a substantial
decline in credit metrics and/or liquidity could lead to a
negative rating action.

COMPANY PROFILE

LMIPL was incorporated in 1998 as a private limited company by Mr
Sachidanand Upadhyay. The manufacturing facilities are located at
Vasai, Maharashtra and Silvasa, Daman and Diu Union Territory.


MN BIO-TECHNOLOGY: Ind-Ra Affirms 'BB-(SO)' Rating on NCDs
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has undertaken the following
rating action on MN Bio-Technology Private Limited's (MNBTPL) non-
convertible debentures (NCDs):

-- INR536.0 mil. NCDs issued on October 4, 2016 with 11.00%
    p. a. coupon rate due on September 2021 affirmed with IND BB-
    (SO)/Stable rating.

The NCDs are backed by pari passu charge on receivables from
existing commercial leases at the rent generating properties in
Turkapally, Telangana; these are held in four different companies:
Genome Valley Tech Parks & Incubators Private Limited (Genome),
Takshila Tech Parks & Incubators (India) Private Limited
(Takshila), MN Life Science Centre (Pragnapur) Private Limited
(Pragnapur) and MN Science & Technology Park Private Limited (MN
Science). The charge of NCDs issued by MNBTPL on the receivables
of the aforementioned companies is pari passu with an INR1,675
million NCDs issuance by a group company: MN Takshila Industries
Private Limited (MNTIPL).

KEY RATING DRIVERS

Adequate Security Package: The NCDs issued by MNTIPL and MNBTPL
are backed by pari passu charge on the securities mentioned below
to be created in favour of a common security trustee:

-- Fixed assets, receivables, current assets, movable assets and
    bank accounts of MNBTPL and MNTIPL

-- Fixed assets, receivables, current assets, movable assets and
    bank accounts of Genome, Takshila, Pragnapur, MN Science, MN
    Gachibowli Tech Park Pvt. Ltd. (Gachibowli I), MN Gachibowli
    II Tech Park Pvt. Ltd. (Gachibowli II) and Deccan Bio
    Ventures Pvt. Ltd. (Deccan Bio). These companies houses
    buildings with a total leasable area of 0.534 million square
    feet, in addition to land parcels admeasuring 107 acres

-- A pledge of 93.05% shareholding of MN Science, 97.96%
    shareholding of Takshila, 66.82% shareholding of Genome and
    100% shareholding of Pragnapur

The NCDs shall also be guaranteed by MNTIPL, MN Science, Genome,
Takshila, Pragnapur, Gachibowli I, Gachibowli II and Deccan Bio.

Low Debt Service Coverage and Moderate LTV: At the current level
of operating income, the issuer would be able to service interest
obligations but there could be significant stress in repayment of
principal instalments as envisaged. However, according to
transaction documents, debt service coverage ratio (DSCR) for any
financial quarter shall not be less than 1.3x, and in the agency's
stabilised scenario, average DSCR is 1.13x over the first three
years from transaction closing.

Loan-to-value (LTV) is 41.0% as per the valuation provided by
Colliers International (India) Property Services Pvt. Ltd.
However, in Ind-Ra's stabilised scenario, the LTV for the
transaction is about 47.7%.  However, the agency estimates that
the LTV on the basis of the value of the rent-yielding assets
alone would be about 57.2%. These credit metrics are commensurate
with the assigned rating.

The rating takes comfort from an increase in rental income, while
occupancy of the underlying asset increased to 89% from 51% at the
time of final rating.

Concentrated Tenant Mix: There are 16 tenants occupying the
underlying asset. The top two tenants account for close to 45% of
the rental income, excluding maintenance income.

DSRA: Debt holders benefit from the presence of a pre-funded debt
service reserve account (DSRA) equivalent to the following three
months of interest service and principal repayments at the
transaction closing. The DSRA shall be available throughout the
tenor of the transaction.

Key Assumptions: Net operating income calculated by the agency is
based on the rent roll data provided. The agency expects that
future lease income would at worst be equal to the current lease
income in the base case.

RATING SENSITIVITIES

Negative: A decline of over 10% from the stabilised net operating
income assumed by the agency for the asset for the entire tenor of
the transaction could result in a one-notch downgrade.

COMPANY PROFILE

MNBTPL is a wholly owned subsidiary of LC Cerestra, which owns two
buildings with a total leasable area of 0.147 million square feet
in a biotech cluster located 45km from Hyderabad. It commenced
operations in October 2016.

LC Cerestra is a private limited company incorporated in Singapore
on 24 March 2016 as an exempt private company limited by shares.
The registered office of the fund is in Singapore. The fund shall
act as a pooling vehicle for investments to be made as per the
proposed transaction.

Lighthouse Canton Pte. Ltd. (LCPL) is the fund manager of LC
Cerestra, while Cerestra shall act as asset adviser.  LCPL is a
private limited company incorporated in Singapore on 29 July 2014
and has been appointed by the fund to manage, supervise, select
and evaluate investments. It will perform fund management, capital
raising, investor relations and other fund-related functions.

Cerestra was incorporated in 2007 as Religare Finance Limited.
Cerestra is currently an affiliate of The Capital Partnership and
is an investment adviser to real estate private equity funds
targeting investments in India. It is driven by professionals with
a cumulative real estate exposure of over 40 years.


MN TAKSHILA: Ind-Ra Affirms 'BB-(SO)' Rating on NCDs
----------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed MN Takshila
Industries Pvt. Ltd.'s non-convertible debentures (NCDs) as
follows:

-- INR1,651 mil. NCDs issued on October 4, 2016 with 11% coupon
    rate due on September 2021 affirmed with IND BB-(SO)/Stable
    rating.

The NCDs are backed by investors' pari passu charge on receivables
from the existing commercial leases at the rent generating
properties in Turkapally, Telangana; these are held in four
different companies: Genome Valley Tech Parks & Incubators Private
Limited (Genome), Takshila Tech Parks & Incubators (India) Private
Limited (Takshila), MN Life Science Centre (Pragnapur) Private
Limited (Pragnapur) and MN Science & Technology Park Private
Limited (MN Science). The charge of NCDs issued by MNTIPL on the
receivables of the aforementioned companies is pari passu with
INR545 million NCDs issuance by a group company: MN Bio-Technology
Private Limited (MNBTPL).

KEY RATING DRIVERS

Adequate Security Package: The NCDs issued by MNTIPL and MNBTPL
are backed by investors' pari passu charge on the securities
mentioned below to be created in favour of a common security
trustee:

-- Fixed assets, receivables, current assets, movable assets and
    bank accounts of MNBTPL and MNTIPL

-- Fixed assets, receivables, current assets, movable assets and
    bank accounts of Genome, Takshila, Pragnapur, MN Science, MN
    Gachibowli Tech Park Pvt. Ltd. (Gachibowli I), MN Gachibowli
    II Tech Park Pvt. Ltd. (Gachibowli II) and Deccan Bio
    Ventures Pvt. Ltd. (Deccan Bio). These companies house
    buildings with a total leasable area of 534 million sf, in
    addition to land parcels admeasuring 107 acres

-- A pledge of 93.05% shareholding of MN Science, 97.96%
    shareholding of Takshila, 66.82% shareholding of Genome and
    100% shareholding of Pragnapur

The NCDs shall also be guaranteed by MNBTPL, MN Science, Genome,
Takshila, Pragnapur, Gachibowli I, Gachibowli II and Deccan Bio.

Moderate-to-Low EBITDA and DSCR; Moderate LTV: According to the
transaction documents, net debt-to-EBITDA shall not exceed 6.5x
during the transaction tenor. Also, loan-to-value (LTV) shall not
be over 60% at transaction closing and at any time during the
transaction tenor and debt service coverage ratio (DSCR) for any
financial quarter shall not be below 1.3x. In the agency's
stabilised scenario, net cash flow will have an average DSCR of
1.24x over the next three years.

Additionally, the NCD issuance amount is 45.5% LTV of the
consolidated property's estimated value (value of rent generating
properties plus value of common land parcels) by Colliers
International, a real estate consultancy; this is below the
covenanted level. However, the agency estimates that the LTV on
the basis of the value of the rental asset alone would be about
54%. These credit metrics are commensurate with the rating.

Ind-Ra takes comfort from the increase in rental income while
occupancy of the underlying asset on a consolidated basis has
increased to 85% from 51% at the time of final rating.

Concentrated Tenant Mix: Takshila, which contributed about 79% to
the consolidated FY17 (FY16: 76%) net operating income of the
three asset SPVs in the agency's stabilised scenario, is highly
concentrated with the top tenant accounting for 61% (64% in FY16)
of its total FY17 rental income. The concentration risk is
mitigated by the remaining lease period of the tenant being more
than three years in most cases.

DSRA: Debt holders benefit from the presence of a pre-funded debt
service reserve account (DSRA) equivalent to the following three
months' of debt servicing at the transaction closing. The DSRA
shall be available throughout the tenor of the transaction.

Key Assumptions: The net operating income calculated by the agency
is based on the rent roll data provided. The agency expects that
the future lease income would at worst be equal to the current
lease income in the base case.

RATING SENSITIVITIES

Negative: An decline of over 10% from the stabilised net operating
income assumed by the agency for the three assets - Genome,
Takshila and Pragnapur - on a consolidated basis for the entire
tenor of the transaction could result in a one-notch rating
downgrade.

COMPANY PROFILE

MNTIPL is a wholly owned subsidiary of LC Cerestra Core
Opportunities Fund (LC Cerestra), which owns three SPVs holding
multiple assets with a total leasable area of 0.422 million sf in
Genome Valley and Pragnapur, a bio-tech cluster located 45km from
Hyderabad. It started operations in October 2016.

LC Cerestra is a private limited company incorporated in Singapore
on March 24, 2016 as an Exempt Private Company Limited by Shares.
The registered office of the fund is situated in the Republic of
Singapore. The fund shall act as a pooling vehicle for investments
to be made as per the proposed transaction.

Lighthouse Canton Pte. Ltd. is the fund manager of LC Cerestra,
while Cerestra act as the asset advisor. Lighthouse Canton is a
private limited company incorporated in Singapore on 29 July 2014
and has been appointed by the fund to manage, supervise, select
and evaluate investments; it will perform fund management, capital
raising, investor relations and other fund related functions.

Cerestra was incorporated in 2007 as Religare Finance Limited.
Cerestra is an affiliate of The Capital Partnership and is an
investment advisor to real estate private equity funds targeting
investments in India. It is driven by professionals with a
cumulative real estate exposure of over 40 years.


MORNING STAAR: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Morning Staar
Apparels' (Staar) 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:

-- INR15 mil. Fund-based working capital limits migrated to non-
    cooperating category with IND BB(ISSUER NOT COOPERATING)
    rating; and

-- INR20 mil. Non-fund-based working capital limits migrated to
    non-cooperating category with IND BB(ISSUER NOT
    COOPERATING)/IND A4+(ISSUER NOT COOPERATING) rating.

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

COMPANY PROFILE

Staar is a Tirupur-based partnership firm founded in 2003. The
company is engaged in manufacturing and exporting readymade
garments to retailers and wholesalers in Europe. It procures yarn
and outsources knitting and dying locally to companies in Tirupur.
The firm has an installed capacity of 50,000 pieces per day and
utilises 75% of the installed capacity.


NAVA BHARATH: Ind-Ra Downgrades Bank Loans Rating to 'BB'/Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has undertaken the following
rating actions on Nava Bharath Educational Trust's (NBET) bank
facilities:

-- INR86.08 mil. (increased from INR55.37 mil.) Bank loans
    downgraded with IND BB/Stable rating; and

-- INR30 mil. Fund-based working capital downgraded with IND
    BB/Stable rating.

KEY RATING DRIVERS

The downgrade reflects a decline in student enrolments leading to
a fall in net current balance margin. Student enrolments fell
7.05% yoy to 925 in FY17 from 1,152 in FY14 due to weak demand for
schools. NBET's total income marginally fell to INR111.02 million
in FY17 from INR117.88 million in FY14. However, it was stable at
about INR111 million over FY16-FY17. FY17 financials are
provisional in nature. Net current balance margin declined to
0.60% in FY17 from 3.65% in FY14 owing to a fall in student
enrolments.

The ratings reflect a tight liquidity. In FY17, available funds to
cover long-term debt and operating expenditure were 1.42% (FY16:
6.20%) and 2.70% (FY16: 12.87%), respectively.

Debt service coverage ratio, including rent, reduced to 1.05x in
FY17 from 1.20x in FY14 owing to a volatile operating margin,
excluding rent, for the period. Its debt, including rent/current
balance before interest, depreciation and rent (CBBIDR) improved
to 4.53x in FY17 from 5.09x in FY16 (FY15: 3.18x in FY15). The
trust undertook a debt-fund INR40 million capex in FY16-17 for the
renovation of existing buildings. This led to a 34.39% yoy rise in
debt to INR165.37 million and a 15.95% yoy fall in CBBIDR to
INR32.48 million in FY16. In FY17, net debt/CBBIDR was 4.46x
(FY16: 4.78x).

Operating margin, albeit volatile at 27.7%-38.9% over FY13-FY17,
was at a moderate level during the period. The margin increased to
29.26% in FY17 (FY16: 27.70%) despite a fall in student
enrolments, primarily due to an 8.45% yoy increase in average
tuition fee. Ind-Ra expects operating margin to remain moderate in
the near term, though an unexpected fall in headcount may
deteriorate the margin from the current level.

RATING SENSITIVITIES

Negative: Any unexpected fall in student demand, along a decline
in debt servicing ability, leading to weak coverage ratios could
trigger a negative rating action.

Positive: An improvement in operating performance, along with a
rise in available funds cover to long-term debt and an increase in
student headcount, on a sustained basis could lead to an upgrade.

COMPANY PROFILE

Established in 2007, NBET is registered as a public charitable
trust under the Indian Trusts Act, 1882. The trust's registered
office and schools are situated in Annur, Coimbatore. NBET
operates two K-12 schools, including a residential school, in
Coimbatore.


RAMKRISHNA COTSPIN: Ind-Ra Assigns 'BB' Long-Term Issuer Rating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Ramkrishna
Cotspin Private Limited (RCPL) a Long-Term Issuer Rating of 'IND
BB'. The Outlook is Stable. The instrument-wise rating actions
are:

-- INR610 mil. Long-term loans due on March 2026 assigned with
    IND BB /Stable rating; and

-- INR75 mil. Fund-based facilities assigned IND BB/Stable/IND
    A4+ rating.

KEY RATING DRIVERS

The ratings reflect RCPL's lack of operational track record,
considering it commenced commercial operations in May 2017 after
the completion of its cotton yarn manufacturing site in April
2017. The facility involved a cost of INR922 million (66% funded
by a term loan and 34% funded by the promoters).

RCPL booked INR335 million in revenue for May-August 2017.

The ratings, however, are supported by RCPL's comfortable
liquidity. Its average utilisation of fund-based facilities was
54% for the five months ended August 2017. Moreover, the promoters
have two-and-half-decade experience in cotton processing.

RATING SENSITIVITIES

Negative: Inability to achieve revenue and profitability as
projected by Ind-Ra leading to deterioration in credit metrics
will lead to negative rating action

Positive: Stabilisation of operations leading to strong revenue
generation and profitability will lead to a positive rating
action.

COMPANY PROFILE

Incorporated in August 2015, RCPL manufactures cotton yarn of
different sizes. Its production site is located at Soladi Village,
Dhrangadhra Taluka, Surendranagar District, Gujarat. The site has
a production capacity of 5,688.14 metric tons per annum. RCPL
expects 50% of the total installed capacity to be utilised in the
first year of operations.

The promoters are Mr Hasmukhbhai Trikambhai Patel, Mr Jayeshbhai
Ghanshyambhai Patel, Mr Rajesh Labhubhai Kotecha and Mr Dilip
Haribhai Gadhiya.


SAVANI TRANSPORTS: Ind-Ra Withdraws 'D' Long-Term Issuer Rating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has withdrawn Savani
Transports Private Limited's (STPL) Long-Term Issuer Rating of
'IND D'. The instrument-wise rating actions are:Term loan

-- INR12.57 mil. migrated to non-cooperating category withdrawn
    with WD rating;

-- INR175 mil. Fund-based working capital facilities withdrawn
    with WD rating; and

-- INR11.5 mil. Non-fund-based working capital facilities
    withdrawn with WD rating.

KEY RATING DRIVERS

Ind-Ra is no longer required to maintain the ratings, as the
agency has received no-objection certificates and a no-dues
certificate from the lenders. This is consistent with the
Securities and Exchange Board of India's circular dated 31 March
2017 for credit rating agencies. Ind-Ra will no longer provide
analytical and rating coverage for STPL.

COMPANY PROFILE

Formed in 1942, Mumbai-based STPL It provides cargo services via
surface transport across India.


SJLT SPINNING: Ind-Ra Moves BB+ Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated SJLT Spinning
Mills Private Limited's (SJLT) 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:

-- INR284.4 mil. Term loans migrated to non-cooperating category
    with IND BB+(ISSUER NOT COOPERATING) rating;

-- INR330 mil. Fund based working capital limits migrated to
    non-cooperating category with IND BB+(ISSUER NOT
    COOPERATING)/IND A4+(ISSUER NOT COOPERATING) rating;

-- INR100 mil. Non-fund based working capital limits migrated to
    non-cooperating category with IND A4+(ISSUER NOT COOPERATING)
    rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Sept. 2, 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 2005, SJLT is a Tamil Nadu-based cotton yarn
manufacturing company. It has an installed capacity of 68,000
spindles. It sources it raw material primarily from Gujarat and
Andhra Pradesh and also imports a small amount.


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

-- INR20 mil. Fund-based working capital limits migrated to non-
    cooperating category with IND BB(ISSUER NOT COOPERATING)
    rating.

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

COMPANY PROFILE

Tirupur-based Tunic is a partnership firm founded in 2001. It
manufactures and exports readymade garments primarily to retailers
and wholesalers in Europe. It procures yarn and outsources
knitting and dying to the companies located in Tirupur.



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


SMARTFREN TELECOM: Fitch Affirms CCC National Long-Term Rating
--------------------------------------------------------------
Fitch Ratings Indonesia has affirmed Indonesia-based PT Smartfren
Telecom Tbk's (Smartfren) National Long-Term Rating at 'CCC(idn)'.

'CCC' National Ratings denote very high default risk relative to
other issuers or obligations in the same country.

KEY RATING DRIVERS

Weak Cash Flow Generation: Fitch expects Smartfren's EBITDA to
remain weak in the next 18-24 months. EBITDA will be below IDR350
billion in 2017 and 2018, which will be insufficient to cover
annual interest expense of more than IDR600 billion. The company's
weak EBITDA forces Smartfren to continuously rely on external
funds to meet working capital, network investment and debt
servicing requirements.

Its EBITDA margin will decline to around 8% in 2017 after a
temporary improvement in 1H17. Smartfren's 1H17 EBITDA margin was
11% due to average revenue per user (ARPU) growth to IDR33,000
(2016: IDR28,000) and lower operational costs from the gradual
shutdown of its code division multiple access (CDMA) antenna since
4Q16. Fitch expects further margin pressure starting from 2H17 as
Smartfren's significant roll-out of a long-term evolution (LTE)
network will increase its operational costs while subscriber
numbers will remain relatively stagnant.

LTE Investment Adds Liquidity Pressure: Capex requirement for the
LTE network expansion will exacerbate Smartfren's cash flow
pressure. Fitch believes that extensive network coverage is
necessary to attract subscribers. Smartfren will have to invest
significantly to remain competitive in the Indonesian telco
industry. Smartfren is significantly behind in terms of nationwide
network coverage with fewer than 20,000 base transceiver stations
(BTS) compared with PT Indosat Tbk's (BBB+/AAA(idn)/Stable) 59,000
- although Smartfren's LTE BTS of more than 13,000 in 1H17 were
already ahead of Indosat's 5,533.

Fitch estimates the company will spend around IDR2 trillion on
capex in 2017 and 2018, which is significantly lower than PT XL
Axiata Tbk's (BBB/AAA(idn)/Stable) IDR4.5 trillion per annum since
2015.

Stagnant Subscriber Base: Subscriber acquisition will remain
challenging for Smartfren in 2017 and 2018 due to competitive
pricing in the Indonesian telco industry. The company's subscriber
base has remained relatively stagnant since 2015, with 10.7
million in 1H17 (2015-2016: 11 million), despite the company's
significant investment in its LTE network; the company's 4G BTS
increased to more than 13,000 in 1H17 from around 9,000 in 2015.
Smartfren needs a significantly larger subscriber base to generate
profits which are commensurate with its network investment. Fitch
expects monetisation of current data users to be gradual and slow
as the intense competition for subscribers among Indonesian telcos
will make it more difficult.

Uncertain Funding Source: Fitch estimates that Smartfren's current
funding sources will not be adequate to cover its short-term
liquidity. At end-June 2017, the company had around USD60 million
(IDR792 billion) in undrawn credit facilities and USD130 million
(IDR1,716 billion) in available capex facilities. Smartfren has
also fully utilised its mandatory convertible bonds (MCB) phase II
of IDR9 trillion in 1H17 with a IDR1,400 billion issuance. The
company is currently in talks with lenders for additional working
capital and capex facilities. In the past, Smartfren's financial
flexibility has been limited with liquidity mostly coming from MCB
issuance and China Development Bank facilities.

DERIVATION SUMMARY

The rating at the lower end of the scale is largely driven by
Smartfren's liquidity situation rather than peer comparison.
Smartfren's rating reflects its weak cash flow generation and
liquidity position. Fitch expects the company's EBITDA generation
in the next 18-24 months will not be sufficient to cover its
interest expense. Smartfren's available borrowing facilities at
end-June 2017 are not sufficient to cover its liquidity needs in
the next 18-24 months. Poor cash flow generation forces Smartfren
to rely on external liquidity sources to cover its cash shortfall
for working capital, capex and debt servicing requirements. The
rating also reflects the company's limited financial flexibility
due to its high credit risk. Funding sources in the past have been
limited mostly to the issuance of MCB and loans from China
Development Bank. 'CCC' National Ratings denote very high default
risk relative to other issuers or obligations in the same country.

KEY ASSUMPTIONS

Fitch's key assumptions within Fitch ratings case for the issuer
include:
- Stagnant subscriber base at 11 million in 2017 and 2018
- Blended average revenue per user of IDR30,000 - 33,000 in 2017
   and 2018
- EBITDA margin will improve to around 8% in 2017 and decline to
   around 6% in 2018
- Annual capex of around IDR2.0 trillion in 2017 and 2018

RATING SENSITIVITIES

Positive: Future developments that may, individually or
collectively, lead to positive rating action include:
- The company's ability to fund its operations without any
   reliance on further MCB issuance

Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
- Weakening liquidity or operating performance such that the
   company's ability to meet obligations appears unlikely

LIQUIDITY

Inadequate Short-Term Liquidity: Smartfren repaid its rupiah bonds
in June 2017 using the funds from the issuance of MCB. At end-June
2017, Smartfren had around IDR162 billion of cash and cash
equivalents and USD60 million (IDR792 billion) in undrawn working
capital facilities from Equimark Investment Holding Ltd and Niven
Holdings Limited. These facilities will not be sufficient to cover
debt maturing within 12 months of IDR1,909 billion.



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


GEO COAL: Fitch Rates Proposed USD Sr. Unsecured Notes B+
---------------------------------------------------------
Fitch Ratings has assigned Geo Coal International Pte. Ltd.'s (Geo
Coal) proposed US dollar senior unsecured guaranteed notes an
expected rating of 'B+(EXP)' and a Recovery Rating of 'RR4'.

Geo Energy Resources Limited (Geo, B+/Stable) and its key
subsidiaries will unconditionally and irrevocably guarantee the
proposed senior unsecured notes. Geo Coal is a wholly owned
subsidiary of Geo. The notes will rank pari passu with other
senior unsecured borrowings of Geo and its subsidiaries. The final
ratings on the proposed notes are contingent upon the receipt of
documents conforming to information already received.

Geo's 'B+' rating reflects its small scale of operations, low cost
position, minimal off-take and operational risks, comfortable
financial profile and liquidity. Geo has recently announced plans
for investing in an e-commerce venture. Fitch does not expects
this unrelated business to have a significant impact on Geo's
business and financial profile as it is in the initial stages and
the company's proposed investment is minimal. However, any
significant investment that increases the business risk profile of
Geo and/or weakens its financial profile may negatively impact its
rating.

KEY RATING DRIVERS

Small Scale of Operations: Geo has proved reserves of around 80
million metric tonnes (MMT), total reserves of around 95MMT and
produced around 6MMT of coal in 2016. Fitch expects the company to
ramp up production volumes to around 10MMT in 2017 and around
15MMT in 2018. Geo's current operations are also concentrated,
with its two key co-located mines in Indonesia accounting for the
majority of its reserves and production; the concessions for these
mines expire in 2022.

However, Fitch expects Geo to make further investments to boost
reserves and production, and extend its concession period. Geo's
commitment to expand its operations and reserves is also supported
by a mandatory obligation to repurchase the notes 3.5 years after
issue unless the company fulfils a specified minimum reserves
level and maintains producing mines with a specified concession
life.

Exposure to Cyclical Coal Industry: Geo remains vulnerable to the
commodity cycle, as its earnings and cash flow are linked to the
thermal coal industry. Thermal coal prices have come off a peak in
late 2016, reflecting China's policies aimed at managing coal
prices. Fitch expects some production uptick in response to higher
prices, which should lead to some moderation in prices over the
medium term. This is reflected in Fitch price assumptions (see
Updating Fitch's Mid-Cycle Commodity Price Assumptions, dated 2
March 2017). However, these risks are partially mitigated by Geo's
position as a low-cost producer.

Low-Cost Position: Geo has a competitive cost position, with its
low cash cost of production for its two key mines, PT Sungai Danau
Jaya (SDJ) and PT Tanah Bumbu Resources (TBR) (mid-range calorific
value (CV) of coal at 4,000 - 4,200 kcal). The company also
benefits from well-connected infrastructure and logistics for its
key mines. Fitch expects the low-cost position to support Geo's
stable profitability and operating cash flows over the medium
term.

Asset-Light Model: Geo has entered into production contracts for
its SDJ mine with PT Bukit Makmur Mandiri Utama (BUMA, BB-
/Stable), the second-largest coal mining contractor in Indonesia.
The company intends to follow this asset-light model over the
medium term, thereby limiting any large capex for its mines. Geo
has also entered into off-take agreements simultaneously with a
commodity trading company, minimising operational and off-take
risks. Coal off-take agreements expose Geo to customer
concentration and resultant counterparty risks. At the same time,
the mid-range CV of coal from its key mines, the flexibility to
sell directly (in the case of any default under the off-take
agreements), and Geo's relationships with end-buyers offset these
risks to a large extent. Geo is in the process of entering into
coal mining contracts with BUMA and off-take agreements with
advance funding options for the TBR mine.

Investments to Continue: Fitch expects Geo to continue investing
over the medium term to augment its coal reserves and production
scale. Geo acquired TBR (proved reserves of around 41MMT and total
reserves of around 45MMT) for a purchase consideration of USD90
million in June 2017. TBR's location, adjacent to SDJ, is likely
to help ramp up production swiftly and also provide synergies.
Fitch expects Geo to acquire additional mines/mining concessions
in the near term. Geo may focus primarily on producing - or nearly
producing - mines of acceptable CV, limiting the risks relating to
development of the acquired mines. Any investments in new coal
mines expose Geo to additional risks, while Fitch derive comfort
from the company's track record and previous experience as a coal-
mining contractor before divesting the business in early 2016.

Comfortable Financial Profile: Fitch anticipates Geo's operational
cash flows will improve, driven by rising coal volumes, its
competitive cost position and Fitch coal-price assumptions. This
is likely to support investments in the near to medium term.
Credit metrics are likely to remain comfortable, with FFO net
leverage of around 1.5x (2016:0.2x) and FFO fixed-charge cover of
over 5x (2016: 8.6x) over the medium term. This factors Fitch's
assumptions of continuing moderate investments of around USD250
million over the next three years (excluding TBR); in the absence
of these investments, Fitch expects Geo to achieve a net cash
position after 2018.

DERIVATION SUMMARY

Geo's rating of 'B+' reflects its small scale of operations, low
cost position, minimal off-take and operational risks, comfortable
financial profile and liquidity. By comparison, China's Yanzhou
Coal Mining Company Limited (B/Stable) is constrained by its
aggressive financial profile and weak liquidity. Geo's comfortable
financial profile and relatively lower cost position results in
the higher rating despite Yanzhou's much larger and diversified
operations with an improved cost position. PT ABM Investama Tbk's
(ABM, BB-/ Stable)'s rating is one notch higher than Geo's due to
its more diversified and integrated business despite ABM's
marginally weaker financial profile compared with Geo's.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for Geo include
- Coal prices in line with Fitch's mid-cycle commodity price
   assumptions, adjusted for difference in calorific value
   (average Newcastle 6000 kcal free-on-board (FOB): USD65/MT
   from 2018 onwards).
- Investments of around USD100 million-130 million in the next
   6-12 months
- Coal production volumes of around 9MMT in 2017 and around
   15MMT in 2018.
- Dividend pay-out of around 15%-20%

Fitch's key assumptions for bespoke recovery analysis include:
- The recovery analysis assumes that Geo 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.
- Geo's going-concern EBITDA is based on last 12 months (LTM)
   December 2016 EBITDA, and includes pro forma adjustments for
   the EBITDA contributions from the acquired TBR mines and other
   similar-sized acquisitions in the next 6-12 months.
- The going-concern EBITDA estimate reflects Fitch's view of a
   sustainable, post-reorganisation EBITDA level upon which Fitch
   base the valuation of the company. The going-concern EBITDA is
   25% below the mid-cycle EBITDA based on the long-term average
   thermal coal price assumptions used by Fitch. The post-
   reorganisation EBITDA assumes some post-default operating
   improvement, and is at a level that may violate the intended
   covenants for its proposed US dollar notes.

- Fitch generally assumes a fully drawn working-capital facility
   of USD40 million - the extent allowed under the intended
   covenants of the proposed US dollar notes - in its recovery
   analysis, since working-capital debt is tapped as companies
   are under distress.
- An enterprise value (EV) multiple of 4x is used to calculate a
   post-reorganisation valuation, and reflects a derived EBITDA
   multiple based on a distressed valuation metric of around
   USD3-USD5 per ton of Geo's proved reserves - including
   expected acquisitions subject to adjustment. The historical EV
   multiple for companies in the natural resources sector ranged
   from 5.8x-11x, with a median of 8.7x. However, Fitch has used
   a conservative multiple, due to the small size of Geo and its
   limited concession period.

- The waterfall results in a recovery of around 100% for the
   proposed US dollar note holders. However, Fitch applies a soft
   cap of 'RR4' for the Recovery Ratings of Geo as all of its
   mining operations are located in Indonesia, a Group D country.
   Fitch consequently rates the proposed senior unsecured US
   dollar notes at 'B+'/'RR4'.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- Fitch does not expects any upgrade, given the small size of
   Geo's operations, which constrains its business profile.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- Any significant increase in business risk profile as a result
   of investments in businesses unrelated to coal mining.
- Any sustained weakening in operating profile including
   production, reserves or cost position
- FFO net leverage of over 2.5x on a sustained basis
- FFO fixed-charge cover sustained below 5x

LIQUIDITY

Adequate Liquidity: Fitch expects liquidity to remain adequate in
the absence of any major debt maturities following the issuance of
the proposed US dollar notes. The company plans to use part of the
proceeds to repay its outstanding SGD100 million notes due 2018.
Fitch expects strong operating cash flows and the cash balance
from the proposed notes' proceeds to support investments in the
near to medium term. Fitch expects Geo to have access to alternate
financing, including advances against the sale of coal from the
TBR mine as part of an off-take agreement to support liquidity to
meet debt maturities in early 2018, even if the company does not
proceed with the proposed US dollar note issuance.


GEO ENERGY: Moody's Assigns B2 Rating to Proposed Unsec. Notes
--------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating to the proposed
senior unsecured guaranteed notes to be issued by Geo Coal
International Pte. Ltd., a wholly owned subsidiary of Geo Energy
Resources Limited (Geo Energy, B2, stable).

The outlook on the ratings is stable.

RATINGS RATIONALE

The proposed notes will be unconditionally and irrevocably
guaranteed by Geo Energy and substantially all its subsidiaries.
The bond proceeds will be primarily used for refinancing existing
debt -- specifically the outstanding notes of SGD100 million
(US$73.7) million due under Geo Energy's US$300 million Medium
Term Notes programme -- repaying advances received under the
company's offtake agreement, potential acquisition of new mines
for business growth and general corporate purposes.

The B2 rating is supported by Geo Energy's position as a low cost
coal producer in Indonesia, its moderate financial profile, and
its ongoing partnerships with significant operators within the
Indonesian coal sector. Geo Energy has contracted Bukit Makmur
Mandiri Utama (P.T.) (BUMA, Ba3 stable) as its mining service
contractor for the life of its mines.

The company is well positioned on the cost curve as outsourcing
its mining services to BUMA significantly reduces capex and
working capital requirements. With expected cash costs of
production in the range of US$26-28 at its existing mining
concession (PT Sungain Danau Jaya "SDJ") and newly acquired mining
concession (PT Tanah Bumbu Resources "TMB"), the company could
weather minor coal price adjustments.

"Geo Energy's improving financial and cash flow metrics should
allow the company flexibility to make acquisitions as well as
reasonable shareholder payments. The company's adjusted
debt/EBITDA is expected to be about 3.0-3.5x over the next 1-2
years, and (RCF-Dividends)/Debt is expected to remain in the range
of 10-20%," says Nidhi Dhruv, a Moody's Vice President-Senior
Analyst.

The company's H1 2017 financial results were in line with
expectations owing to the higher coal prices during the period.
Geo Energy's realized coal prices ranged between approximately
US$39-40 during H1 2017, resulting in an EBITDA of about US$48
million. Lower coal production of 1.5 MT in Q2 2017 was mainly
attributable to seasonal rains and is expected to pick up in H2.

Geo Energy's B2 rating also reflects the company's relatively
short track-record of operating as a pure-play coal producer, the
small scale of its business, a high degree of operational
concentration and the need to continue making acquisitions in
order to grow the business. The rating also accommodates the
refinancing pressure facing Geo Energy with respect to its US$73.7
million bond which matures in January 2018.

"With total proved and probable reserves of 90 million MT, Geo
Energy has a relatively short reserve life of about 6 years at
production levels of 15 million MT per annum. As such, the company
will need to keep reinvesting in the business and make
acquisitions in order to grow and replenish its mining reserves,"
adds Dhruv, also Moody's Lead Analyst for Geo Energy.

The ratings also consider Geo Energy's lack of diversification --
given its single operating concession (SDJ) and single product --
and its exposure to commodity cycles, as well as the uncertainty
in the regulatory environment.

"The company also faces a high level of concentration risk, with
Engelhart Commodities Trading Partners (ECTP) being the sole
offtaker of coal from the SDJ mine. However, Geo Energy's coal
trading experience and its relationships with the end-users of its
coal provide some mitigation against this sole offtaker risk,"
adds Dhruv.

Geo Energy transitioned into a pure play coal producer in 2016,
prior to which time it was an integrated mining company. The
company sold its mining services and coal haulage business in June
2016.

"Pro-forma for the bond issue, Geo Energy will have a good
liquidity position with cash holdings of US$100 million on an
ongoing basis. However, absent the bond, the company will face
imminent refinancing pressure and will need to tap other sources
in order to meet its debt repayment of US$73.7 million in January
2018," adds Dhruv.

The stable outlook reflects Moody's expectations that Geo Energy
will execute its business growth strategy as planned, and
successfully refinance its upcoming debt maturity while
maintaining its cost competitiveness and strong financial profile.

What Could Change the Rating -- Up

Upward pressure on the ratings could emerge if Geo Energy expands
its production capacity as planned while improving its financial
profile. Moody's would also like to see a track record of the
company's ability to acquire new mines and ramp up production,
while improving its mine reserve life. Some indicators that
Moody's would consider are adjusted consolidated debt/EBITDA below
3.0x and (CFO-Dividends)/Debt of above 20% on a sustainable basis.

What Could Change the Rating -- Down

Downward pressure on the rating could emerge if industry
fundamentals deteriorate, leading to a decline in free cash flow
that would constrain Geo Energy's ability to grow its business.
Some of the indicators Moody's would consider are adjusted
consolidated debt/EBITDA rising above 4.0x or adjusted
consolidated (CFO-Dividends)/Debt below 10% on a sustainable
basis. The rating could also be downgraded if the company is
unable to successfully refinance its upcoming maturity on a timely
basis.

Any change in laws and regulations, particularly with regard to
the mining concessions, which would adversely affect the business
could also pressure the rating.

The principal methodology used in these ratings was Global Mining
Industry published in August 2014.

Geo Energy Resources Limited is a coal mining group, established
since 2008, with offices in Singapore and Indonesia. The company
owns mining concessions in South and East Kalimantan. Geo Energy
has been listed on Singapore Stock Exchange's main board since
2012. As of 30 June 2017, its promoter shareholders, including
Charles Antonny Melati and Dhamma Surya own 47.9% of the company,
while the public owns 37.6%.


GEO ENERGY: S&P Affirms 'B' CCR on Bond Re-Launch, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'B' long-term corporate credit
rating on Singapore-based coal producer Geo Energy Resources Ltd.
The outlook is stable.

Geo Energy has a narrow business profile with modest production
and scale, single mineral and single-mine concentration, and a
short record of operations at larger production levels. The
company also has residual execution risk on its new projects, and
its cash flow adequacy will likely remain sensitive to variations
in coal prices. Geo Energy's sound cost position with low mining
costs and its adequate liquidity post a proposed notes issuance
partly offset its credit weaknesses.

S&P said, "We also assigned our 'B' long-term issue rating to the
proposed senior unsecured notes to be issued by Geo Coal
International Pte. Ltd. (GCI) and unconditionally guaranteed by
Geo Energy and substantially all of the company's subsidiaries.
Geo Energy is a Singapore-based holding company that owns
operating companies with coal mining concessions in Indonesia.

"The affirmation reflects that Geo Energy's credit profile has not
changed significantly since we assigned the rating in July. Coal
prices have remained supportive, but we continue to view the
company as having relatively modest production and scale. The
company also continues to have high mine and mineral exposure, and
a short track record as a midsize coal producer. The company faces
residual execution risk in bringing a new mine to production, and
its operating performance and credit ratios will remain sensitive
to fluctuations in coal prices. The sound cost position of Geo
Energy's mines and adequate liquidity post the proposed notes
transaction mitigate these constraints."

Geo Energy's second-quarter production was in line with S&P's
forecast for 2017, while the pricing environment remained
supportive. The company's revenues were US$58.9 million, up from
US$21.4 million in the same quarter in 2016, driven by both higher
prices and volumes. Second-quarter average coal prices were
US$40.12, compared with US$27.96 in the second quarter of 2016.
Volumes for the quarter declined to 1.45 million metric tons (MMT)
from 2.21 MMT in the first quarter; however, this is due to high
rainfall in South Kalimantan and the earlier Lebaran holiday. S&P
expects higher production in the third and fourth quarters, and it
recognizes that prices have been higher in August and September
than it had earlier anticipated. As a result, the company's ratio
of funds from operations (FFO) to debt will likely be at least 20%
in 2017, consistent with what we had earlier projected.

S&P said, "We previously expected the TBR mine to begin production
in the fourth quarter; however, we now expect this will be delayed
until the end of the year. Land clearing and topsoil removal is
expected to take about three months. The company is waiting on one
final forestry permit, for a small plot of land connecting the SDJ
and TBR mine sites. The clearing can begin without this permit and
should start in October regardless. However, the delay does not
materially affect our projected ratios for 2017 because coal
prices have been higher than we had earlier anticipated.

"The company announced that it set up a unit to invest in an
online e-commerce portal in Indonesia. We view this as distracting
to the core coal mining operations, but the small size mitigates
this risk. It was incorporated with Indonesian rupiah (IDR) 2.5
billion, or around US$200,000, with authorized capital of up to
IDR10 billion. Investment beyond this size would be negative, in
our opinion, but this currently does not impact our assessment of
the company.

"The stable outlook reflects our expectation that Geo Energy will
maintain a sound cash buffer over the next 12 months, given the
additional liquidity provided by the notes proceeds and steady
cash flows from growing production over the period. It also
reflects stable and profitable operations at SDJ.

"We could lower the rating if Geo Energy's liquidity weakens
materially. This could materialize if a sharp fall in realized
prices and profit per ton coincides with substantial cash outlays
from acquisitions. We could also lower the rating if the company
maintains cash or available bank facilities of less than US$50
million.

"An upgrade is dependent on Geo Energy lengthening its track
record of operations at a larger size with reduced execution risk
and with a record of cash accumulation sufficient to cushion price
and margin fluctuation through a pricing cycle. We believe that
sufficient buffer required to achieve a higher rating would entail
production being sustained at about 15 million tons per year while
EBITDA per ton exceeds US$15 with longer reserve life."


INDIKA ENERGY: Fitch Rates Proposed USD Notes B+
------------------------------------------------
Fitch Ratings has assigned Indika Energy Capital III Pte Ltd's
proposed US dollar-denominated notes, guaranteed by Indonesia-
based PT Indika Energy Tbk (Indika, B-/Rating Watch Positive), an
expected rating of 'B+(EXP)' with a Recovery Rating of 'RR4'.

The Rating Watch Positive (RWP) on Indika's rating reflects
Fitch's expectations of an improvement in Indika's credit profile
after the proposed acquisition of an additional 45% stake in PT
Kideco Jaya Agung (Kideco), Indika's key coal-mining asset. Fitch
believes that the acquisition will enhance Indika's control over
Kideco's operational and financial strategy and increase its
access to Kideco's cash, which will be credit-positive relative to
the incremental debt to finance the acquisition.

Fitch believes Indika's business profile and credit metrics will
be comparable with other low 'BB' rated coal peers following the
proposed share purchase; however, the lumpy debt maturities around
2022/2023 constrain the ratings. Fitch is likely to upgrade
Indika's ratings to 'B+' after it completes the proposed
acquisition - including the proposed bond issuance to finance it.

Indika, along with some of its subsidiaries, will unconditionally
and irrevocably guarantee the proposed senior unsecured notes. The
notes will rank pari passu with other senior unsecured borrowings
of Indika. The final ratings on the notes are contingent upon the
receipt of documents conforming to information already received.

KEY RATING DRIVERS

Additional Stake Value Accretive: Fitch expects Indika's proposed
plan to acquire the additional Kideco stake to be value accretive,
considering the proposed purchase consideration when weighed
against the benefits of additional cash access and greater
operational and financial control. The proposed transaction will
result in an initial payout of around USD517.5 million and a
deferred consideration of around USD160 million, on present-value
basis. The deferred consideration is to be paid upon fulfilment of
certain terms and conditions.

Fitch expects Indika's incremental dividends on account of the
additional stake in Kideco to be sufficient to repay more than
half of additional debt after meeting funding costs on the
additional debt over the next five years. Fitch also believes that
Indika will have greater control to influence the production plans
and timing of dividends.

Consolidated Approach: Fitch expects to take a consolidated view
of Indika including Kideco, with Kideco becoming a majority-owned
subsidiary of Indika, in addition to analysing Indika's holding
company cash flows on a standalone basis. The consolidated view
reflects Indika's greater control over Kideco's operations and
financial strategy. Fitch believes Indika's cash flows and credit
metrics will benefit from the favourable incremental dividends
relative to the additional debt.

Metrics to Improve: Fitch expects credit metrics to improve from
financial year 2018 (FY18, to December 2018) following the
completion of the share purchase. Consolidated EBITDAR fixed-
charge cover should be around 4x from FY18, while consolidated net
leverage (net adjusted debt/ EBITDAR) is likely to decline to
around 2x in FY18 and remain around 1.5x-2x over the medium term.
Fitch also expects Indika's standalone (holding company on a
standalone basis) EBITDA interest cover to improve and range
between 1.7x-4x over the next five years, with average interest
cover of 2x versus Fitch previous expectations of around 1.3x.

Lumpy Debt Maturities Constrain Ratings: Indika has USD265 million
notes maturing in 2022 and its USD500 million notes due in 2023.
The proposed US dollar notes for funding the additional share
purchase in Kideco are likely to further increase the debt
maturities around this period. Most coal-mining and coal-related
peers have more staggered debt maturities. Fitch believes that
Indika has some flexibility to manage its debt maturity profile
from call options on its existing US dollar notes, yet refinancing
risk remains against the backdrop of rising global interest rates
and coal-price volatilities, which constrain the ratings.

Cyclical Coal-Industry Exposure: Indika is vulnerable to the
commodity cycle, as its earnings and cash flow are linked to the
thermal coal industry. Thermal coal prices have come off their
late-2016 peak, reflecting China's coal-price management policies.
Fitch expects some production uptick in response to higher prices,
which should lead to further price moderation over the medium term
and is reflected in Fitch price assumptions. Furthermore, Fitch
expects Asian thermal coal prices to be highly susceptible to
import demand in the region, particularly Chinese demand and
policies relating to the coal sector.

Kideco's Low-Cost Operations: Kideco's benefits from the low-cost
structure of its key mines (first and second quartile) and high
production flexibility and capacity, which requires little capex.
It also benefits from the large reserves (proven reserves of
around 422 million tonnes) and relatively favourable reserve life
of its mines. The absence of any debt also supports its
profitability and pre-dividend free cash generation. Kideco
trimmed costs during 2016, but Fitch expects rising oil prices to
drive up costs marginally over the medium term. Notwithstanding
this, Kideco retains its ability to generate stronger cash flow
based on Fitch coal-price assumptions.

Subsidiaries' Operations to Improve Gradually: Fitch expects
operations of 70%-owned PT Petrosea Tbk (a mining contractor) and
51%-owned PT Mitrabahtera Segara Sejati Tbk (MBSS, coal barging
and handling) to improve gradually in 2017 and 2018, supported by
higher commodity prices. Fitch expects Petrosea and MBSS to turn
around and generate net profit from 2017 and 2018, respectively,
compared with their net losses in 2015 and 2016.

Fitch believes these subsidiaries will be able to fund their own
investment needs and will not require financial support from
Indika. Fitch expects order-book and revenues of fully owned
Tripatra (an engineering, procurement and construction company) to
benefit from a boost to infrastructure investments in Indonesia -
including the oil & gas sector - over the medium term. Tripatra's
revenues increased by 25% yoy during 1H17 to USD149 million.

DERIVATION SUMMARY

The RWP on Indika's ratings reflects Fitch's expectation of
improvement in Indika's profile following the completion of the
proposed agreement to purchase additional shares in Kideco - its
key coal-mining asset. Fitch expects Indika to benefit from
incremental cash flows and greater operational control of Kideco
when weighed against the proposed purchase consideration.

Fitch expects Indika's post-acquisition business profile to be
comparable with PT Bukit Makmur Mandiri Utama (BB-/Stable) and PT
ABM Investama Tbk (BB-/Stable) given the low-cost position of
Kideco - one of the top 3 coal producers in Indonesia - and
partially integrated operations in to coal-mine contracting and
transportation though its other subsidiaries. However, Fitch
expects Indika's financial profile to be weaker as its lumpy debt
maturities can expose the company to refinancing risks over the
medium term - resulting in its rating being one notch lower. Geo
Energy Resources Limited's (B+/Stable) business profile is weaker,
given its small scale of operations and limited reserves of its
mines compared with Indika. However, its stronger financial
profile than Indika's expected financial profile following the
proposed share purchase transaction results in their ratings being
similar.

Indika's current 'B-' ratings reflect the improved liquidity,
which is supported by the successful refinancing of its 2018 debt
maturities in April 2017 and improved cash flows from higher coal
prices. Indika has better liquidity than MIE Holdings Corporation
(CCC), which faces a significant challenge in refinancing its
outstanding notes due February 2018 and April 2019, made more
difficult by the company's depleted asset base relative to its
high indebtedness.

KEY ASSUMPTIONS

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

- Coal prices in line with Fitch's mid-cycle commodity price
   assumptions, adjusted for difference in calorific value
   (average Newcastle 6,000 kcal free-on-board (FOB): USD65/metric
   tonne in 2018 and thereafter). See Updating Fitch's Mid-Cycle
   Commodity Price Assumptions, dated 2 March 2017.
- Acquisition of 45% of additional equity stake in Kideco for
   around USD677.5 million in 2017, with USD517.5 million payable
   in 2017.
- Kideco coal volumes of around 32mt million tonnes (mt) in
   2017, 34mt in 2018 and around 36mt by 2019. Capex of around
   USD3 million in 2017 and around USD10 million in 2018 and
   2019.
- Dividend payout ratio for Kideco remaining high at around 95%-
   98%.
- No dividend from MBSS or Petrosea in 2017, with dividends of
   around USD1 million from Petrosea in 2018. Dividends from
   associate PT Cirebon Electric Power of about USD6 million per
   year over the medium term.
- Low capex at Tripatra and MBSS, and higher capex at Petrosea,
   to support new mining contracts, resulting in capex of around
   USD115 million in 2017 and in the range of USD75 million-100
   million a year thereafter.

RATING SENSITIVITIES

Fitch will resolve the Watch on Indika's rating and upgrade the
ratings to 'B+' upon successful completion of the proposed share
purchase including receipt of consent for the waivers of default
and change in certain provisions and issuance of the proposed US
dollar notes.

If the transaction is not completed, Fitch will affirm the ratings
with a Stable Outlook. Fitch does not anticipate taking negative
rating action in the near future.

LIQUIDITY

Comfortable Near to Medium-Term Liquidity: Indika's liquidity is
comfortable in the absence of any significant debt maturities.
Indika has a minimal debt amortisation schedule until 2021.
Significant liquidity needs for debt repayment will only happen in
2022 and 2023. The company expects to fund the proposed share
purchase through issuance of new US dollar notes, and is also in
the process of tying up a bridge-to-bond facility to fund the
transaction in case of any delay to the proposed issuance.


INDIKA ENERGY: Moody's Assigns B2 Rating to Proposed Sr. Notes
--------------------------------------------------------------
Moody's Investors Service has assigned a B2 rating to the proposed
backed senior secured notes to be issued by Indika Energy Tbk
(P.T.) (Indika)'s wholly-owned subsidiary, Indika Energy Capital
III Pte. Ltd., and guaranteed by Indika. The proposed notes are on
review for upgrade in line with the corporate family rating for
Indika.

RATINGS RATIONALE

Indika's B2 corporate family rating was placed on review for
upgrade on Sept. 25, 2017 on the back of its announced acquisition
of an additional 45% stake in Kideco Jaya Agung (P.T.),
Indonesia's third largest coal producer. Moody's ratings rationale
was set out in a press released published on the same day.

The proceeds from the proposed notes issuance will be used to
finance the acquisition.

In tandem with the proposed notes announcement, Indika is seeking
consent from the holders of its 2022 and 2023 notes to effect
certain proposed amendments to the notes indenture to (i) enable
the announced Kideco acquisition; (ii) substantially conform the
covenants of the 2022 and 2023 notes to the covenants of the
proposed notes; and (iii) remove certain provisions applicable to
Kideco upon Kideco becoming a restricted subsidiary.

At the same time, Indika is also seeking consent from the
noteholders to waive the breach of its restricted payment
covenant, after it extended bridge loans of $2.2 million to
Cirebon Energi Prasarana (CEPR) in May and July 2017. Indika holds
a 6.25% indirect equity interest in CEPR, which is a project
company that operates a 1,000 megawatt coal-fired power plant.

Moody's believes noteholders will likely waive the covenant breach
given that the proposed indenture amendments, including the
waiver, constitute a single proposal and has to be consented in
their entirety.

This covenant breach will become an event of default if the breach
is not cured within 30 days after receiving written notice from
the trustee or 25% of noteholders. Following that, there will be
acceleration of principal payment of the 2022 and 2023 notes
totaling $765 million.

The principal methodology used in this rating was the Global
Mining Industry published in August 2014.

Indika Energy Tbk (P.T.) is an Indonesian integrated energy group
listed on Indonesia's Stock Exchange. As of 30 June 2017, its
principal investment is a 46% stake in Kideco Jaya Agung (P.T.),
Indonesia's third-largest domestic coal producer and one of the
world's lowest-cost producers and exporters of coal.



                             *********

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
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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
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related conferences are encouraged.  Send announcements to
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Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
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Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
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Editors.

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

This material is copyrighted and any commercial use, resale or
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