/raid1/www/Hosts/bankrupt/TCRAP_Public/180402.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, April 2, 2018, Vol. 21, No. 064

                            Headlines


A U S T R A L I A

FLEXI ABS 2015-1: Fitch Affirms BBsf Rating on Class E Notes
LATITUDE AUSTRALIA: Fitch Rates AUD18.32MM Class E Notes 'BBsf'
LIBERTY SERIES 2017-3: Moody's Assigns Ba2 Rating to Cl. F Notes
* S&P Takes Various Actions on 18 Classes From 6 Interstar Deals


C H I N A

CHINA COMMERCIAL: Mingjie Zhao Quits as CEO and President
GUANGZHOU R&F: Fitch Cuts Long-Term IDR to BB- on High Leverage
HILONG HOLDING: Moody's Says Improved 2017 Results Support B1 CFR
JINGRUI HOLDINGS: Fitch Withdraws B- Long-Term IDR
SEVEN CLOUDS: Will Raise $40M in Private Placement Financing

YANGO GROUP: Fitch Withdraws B- Rating on New US Dollar Sr. Notes
ZHONG YI: Moody's Assigns Ba3 Rating to New Senior Secured Notes


H O N G  K O N G

CITIC RESOURCES: Moody's Hikes CFR to Ba3; Outlook Stable


I N D I A

AKSHAR SPINTEX: Ind-Ra Raises Long Term Issuer Rating to BB+
ANAND MINE: Ind-Ra Affirms BB LT Issuer Rating, Outlook Stable
BLUE WHEEL: Ind-Ra Assigns BB- Rating on INR540MM Bank Loans
MITTAL CLOTHING: Ind-Ra Lowers Long Term Issuer Rating to BB-
NEERG ENERGY: Fitch Affirms B+ Rating on US$475MM Senior Notes

SAA VISHNU: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
SANGAM FORGINGS: Ind-Ra Affirms 'B' Issuer Rating, Outlook Stable
SMJDB ESTATE: Ind-Ra Migrates BB- LT Rating to Non-Cooperating
SUNAHRI MULTI: Ind-Ra Raises Lon gTerm Issuer Rating to 'BB-'
TATA STEEL: Fitch Maintains Rating Watch Evolving on BB IDR


I N D O N E S I A

ALAM SUTERA: Fitch Affirms 'B' Long-Term IDR; Outlook Stable
PELABUHAN INDONESIA: S&P Lowers CCR to 'BB+', Outlook Stable


M A L A Y S I A

PRIME GLOBAL: Incurs US$126,700 Net Loss in First Quarter


N E W  Z E A L A N D

NEW ZEALAND ASSOCIATION: Fitch Lowers Long-Term IDR to BB


S O U T H  K O R E A

INDUSTRIAL BANK: Fitch Hikes Hybrid Notes Rating from BB+


                            - - - - -


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


FLEXI ABS 2015-1: Fitch Affirms BBsf Rating on Class E Notes
------------------------------------------------------------
Fitch Ratings has upgraded three and affirmed two tranches from
Flexi ABS Trust 2015-1 with Stable Outlooks. The transaction is a
securitisation of commercial finance receivables originated by
Flexirent Capital Pty Ltd, whose ultimate parent is FlexiGroup
Limited. The notes were issued by Perpetual Corporate Trust
Limited in its capacity as trustee.

The rating actions are as follows:
AUD16.5 million Class A notes (ISIN AU3FN0027256) affirmed at
'AAAsf'; Outlook Stable
AUD1.8 million Class B notes (ISIN AU3FN0027264) upgraded to
'AAAsf', from 'AAsf'; Outlook Stable
AUD1.8 million Class C notes (ISIN AU3FN0027272) upgraded to
'A+sf', from 'Asf'; Outlook Stable
AUD0.9 million Class D notes (ISIN AU3FN0027280) upgraded to
'BBB+sf', from 'BBBsf'; Outlook Stable
AUD1.2 million Class E notes (ISIN AU3FN0027298) affirmed at
''BBsf'; Outlook Stable

KEY RATING DRIVERS

The upgrades reflect Fitch's view that the build-up of credit
enhancement (CE) on the class B, C and D notes is sufficient to
support the notes at their current rating levels and that
performance has been above Fitch's expectations set at closing and
will remain supported by Australia's benign economic conditions.

The affirmations of the class A and E notes reflect Fitch's view
that available CE is sufficient to support the notes' current
rating and the agency's expectations of Australia's economic
conditions.

Credit quality and the performance of the underlying receivables
also remain within the agency's expectations. Total net losses
have been in line with Fitch's base cases to date and excess
spread has been sufficient to cover any losses incurred.

The transaction contains 10.7% of assets that had disputed
payments between Flexirent Capital Pty Ltd and one of the main
vendors to the transaction that acts as an introducer of
receivables. The reconciliation of the disputed payments has
progressed, with cash received and allocated against the
receivables. However, 30+ days arrears for the supplier remain
high, at 27.4%.

As of February 2018 reporting, 30+ days arrears were 5.34% and net
losses were 4.26%. Excess spread since closing has covered all
realised losses.

RATING SENSITIVITIES

Flexi 2015-1 is currently amortising pro rata, limiting additional
build-up of subordination. Fitch expects switch-back to sequential
payment if a charge-off occurs, the 60+ day arrears average over
six months is greater than 4% of the pool or when the aggregate
invested amount of all notes falls to below 10% of the initial
balance (currently 12.1%).

Unanticipated increases in the frequency of defaults and loss
severity on defaulted receivables could produce loss levels higher
than Fitch's base case, which is likely to result in a decline in
credit enhancement and remaining loss-coverage levels available to
the notes. Fitch has evaluated the sensitivity of the ratings to
increased gross default levels and decreased recovery rates over
the life of the transaction based on the most stressed portfolio
modelled.


LATITUDE AUSTRALIA: Fitch Rates AUD18.32MM Class E Notes 'BBsf'
---------------------------------------------------------------
Fitch Ratings has assigned final ratings to Latitude Australia
Credit Card Loan Note Trust Series 2018-1's floating-rate notes.
The issuance consists of notes backed by credit card receivables
originated by Latitude Finance Australia. The ratings are as
follows:

AUD353.45 million Series 2018-1 Class A1 notes: 'AAAsf'; Outlook
Stable
AUD52.32 million Series 2018-1 Class A2 notes: 'AAAsf'; Outlook
Stable
AUD28.80 million Series 2018-1 Class B notes: 'AAsf'; Outlook
Stable
AUD26.18 million Series 2018-1 Class C notes: 'Asf'; Outlook
Stable
AUD20.93 million Series 2018-1 Class D notes: 'BBBsf'; Outlook
Stable
AUD18.32 million Series 2018-1 Class E notes: 'BBsf'; Outlook
Stable
AUD23.56 million Series 2018-1 Originator VFN Subordination notes:
'NRsf'

Fitch has simultaneously affirmed the ratings of the following
tranches from Latitude Australia Credit Card Loan Note Trust
Series 2017-1, Latitude Australia Credit Card Loan Note Trust
Series 2017-2 and 2017-VFN:

AUD685.90 million Series 2017-1 Class A1: 'AAAsf'; Outlook Stable
AUD125.65 million Series 2017-1 Class A2: 'AAAsf'; Outlook Stable
AUD57.60 million Series 2017-1 Class B: 'AAsf'; Outlook Stable
AUD 52.35 million Series 2017-1 Class C: 'Asf'; Outlook Stable
AUD 41.86 million Series 2017-1 Class D: 'BBBsf'; Outlook Stable
AUD 36.64 million Series 2017-1 Class E: 'BBsf'; Outlook Stable

AUD 342.95 million Series 2017-2 Class A1: 'AAAsf'; Outlook Stable
AUD 62.83 million Series 2017-2 Class A2: 'AAAsf'; Outlook Stable
AUD 28.80 million Series 2017-2 Class B: 'AAsf'; Outlook Stable
AUD 26.18 million Series 2017-2 Class C: 'Asf'; Outlook Stable
AUD 20.93 million Series 2017-2 Class D: 'BBBsf'; Outlook Stable
AUD 18.32 million Series 2017-2 Class E: 'BBsf'; Outlook Stable

AUD 100.00 million 2017-VFN: 'Asf'; Outlook Stable

The 2018-1 notes were issued by Perpetual Corporate Trust Limited
in its capacity as trustee of Latitude Australia Credit Card
Master Trust.

The notes are collateralised by a pool of credit card receivables
originated by Latitude Financial Services Australia. Latitude's
total credit card portfolio has an average outstanding balance
across accounts of AUD2,108. The portfolio is well-seasoned; by
balance, 58.3% is held in accounts seasoned in excess of 36
months. The portfolio is geographically diversified among
Australian states, with no specific geographic concentration.

KEY RATING DRIVERS

Solid Asset Performance: Fitch has set a yield steady state
assumption of 12.5%, a charge-off steady state assumption of 5.5%
and a monthly payment rate (MPR) steady state of 13.5%. The yield
and MPR steady state assumptions are significantly lower than for
most other international credit card trusts. The charge-off steady
state is in line with, or lower than, other credit card trusts due
to solid performance and Australia's benign economic conditions.
Steady state assumptions remain unchanged except for MPR, which
has risen by 0.5%.

Variable Funding Notes (VFN): The structure also employs a
separate "Originator VFN" purchased and held by Latitude,
providing the funding flexibility typical and necessary for credit
card trusts. It provides credit enhancement to the rated notes,
adds protection against dilution and meets risk-retention
requirements.

Experienced Originator and Servicer: Latitude, through its
previous ownership, has been managing large portfolios of consumer
receivables for well over a decade in Australia. Fitch reviewed
Latitude's underwriting and servicing capabilities and found them
satisfactory. Latitude is not rated and servicer risk is mitigated
through back-up servicer arrangements.

Steady Asset Outlook: Fitch expects stable Australian credit card
performance in the medium-term, with marginal upward charge-off
movements in 2018, as current levels are unsustainable in the long
term. Fitch expects Australia's economic conditions to remain
benign.

RATING SENSITIVITIES

This section provides an insight into the model-implied
sensitivities the transaction faces when one or more risk factors
are stressed, while holding others equal. The modelling process
first uses estimation and stress of base-case assumptions to
reflect asset performance in a stressed environment, and second,
structural protection is analysed in a customised proprietary cash
flow model. The results below should only be considered as one
potential outcome, given that the transaction is exposed to
multiple dynamic risk factors.

Expected impact on ratings from increased charge-offs:
Increase base case by 25%: AAAsf / AA+sf / AA-sf / A-sf / BBB-sf /
BB-sf
Increase base case by 50%: AAAsf / AAsf / A+sf / BBB+sf / BB+sf /
B+sf
Increase base case by 75%: AAAsf / AA-sf / Asf / BBBsf / BBsf /
Bsf

Expected impact on ratings from decreased payment rates:
Decrease base case by 15%: AAAsf / AA+sf / A+sf / A-sf / BBB-sf /
BB-sf
Decrease base case by 25%: AAAsf / AAsf / Asf / BBB+sf / BB+sf /
B+sf
Decrease base case by 35%: AA+sf / A+sf / A-sf / BBB-sf / BBsf /
Bsf

Expected impact on ratings from decreased yield:
Decrease base case by 15%: AAAsf / AAAsf / AA-sf / Asf / BBB-sf /
BB-sf
Decrease base case by 25%: AAAsf / AA+sf / AA-sf / A-sf / BBB-sf /
B+sf
Decrease base case by 35%: AAAsf / AA+sf / AA-sf / A-sf / BBB-sf /
Bsf

Expected impact on ratings from decreased purchase rate:
Decrease base case by 50%: AAAsf / AA+sf / AA-sf / A-sf / BBB-sf /
BB-sf
Decrease base case by 75%: AAAsf / AA+sf / AA-sf / A-sf / BBB-sf /
B+sf
Decrease base case by 100%: AAAsf / AA+sf / A+sf / BBBsf / BBsf /
Bsf

Expected impact on ratings from increased charge-offs and
decreased payment rates:
Increase base case by 25%, decrease base case by 15%: AAAsf / AAsf
/ Asf / BBBsf / BB+sf / B+sf
Increase base case by 50%, decrease base case by 25%: AA+sf / Asf
/ BBB+sf / BB+sf / BB-sf / CCCsf
Increase base case by 75%, decrease base case by 35%: A+sf /
BBB+sf / BBB-sf / BBsf / Bsf / CCCsf

Expected impact on ratings from increased steady state charge-offs
to reduce the ratings:
- by one category
- to non-investment grade
- to 'CCCsf'

Class A1: 2.42 / 4.43 / 6.56
Class A2: 1.31 / 2.58 / 3.87
Class B: 1.37 / 2.12 / 3.25
Class C: 1.40 / 1.68 / 2.65
Class D: 1.43 / 1.30 / 2.20
Class E: 1.47 / n.a / 1.68


LIBERTY SERIES 2017-3: Moody's Assigns Ba2 Rating to Cl. F Notes
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on seven
classes of notes issued by two Liberty Series RMBS.

The affected ratings are:

Issuer: Liberty Series 2014-2 Trust

-- Class C Notes, Upgraded to Aa1 (sf); previously on Feb. 9,
    2017 Upgraded to Aa2 (sf)

-- Class D Notes, Upgraded to A2 (sf); previously on Feb. 9,
    2017 Upgraded to A3 (sf)

Issuer: Liberty Series 2017-3 Trust

-- Class B Notes, Upgraded to Aa1 (sf); previously on July 26,
    2017 Definitive Rating Assigned Aa2 (sf)

-- Class C Notes, Upgraded to A1 (sf); previously on July 26,
    2017 Definitive Rating Assigned A2 (sf)

-- Class D Notes, Upgraded to A3 (sf); previously on July 26,
    2017 Definitive Rating Assigned Baa1 (sf)

-- Class E Notes, Upgraded to Baa2 (sf); previously on July 26,
    2017 Definitive Rating Assigned Baa3 (sf)

-- Class F Notes, Upgraded to Ba1 (sf); previously on July 26,
    2017 Definitive Rating Assigned Ba2 (sf)

RATINGS RATIONALE

The upgrade was prompted by an increase in credit enhancement
(from note subordination and the Guarantee Fee Reserve Account)
available for the affected notes.

Sequential amortization of the notes since closing led to the
increase in note subordination. Liberty Series 2014-2 Trust has
been making pro-rata principle repayments between the rated notes
since December 2016.

The Guarantee Fee Reserve Account is non-amortizing and can be
used to cover charge-offs against the notes, and liquidity
shortfalls that remain uncovered after drawing on the liquidity
facility and principal.

In addition, the transaction portfolios have been performing
within Moody's expectations. Both scheduled and indexed loan to
value ratios have decreased.

Liberty Series 2014-2 Trust

Since closing, the note subordination available for the Class C
and Class D notes has increased to 8.1% and 4.6% from 3.6% and 2%.

The Guarantee Fee Reserve Account has accumulated AUD1.5 million
(0.8% of current total current note balance) from excess spread.

The performance of the transaction has been within expectations
since closing. As of February 2018, 4% of the outstanding pool was
30-plus day delinquent, and 3.5% was 90-plus day delinquent. The
deal has incurred AUD195,181 of losses to date.

Based on the observed performance and outlook, Moody's maintained
its expected loss assumption at 1% as a percentage of the original
pool balance.

Moody's decreased its MILAN CE assumption to 9.3% from 10.5% since
the last rating action, based on the current portfolio
characteristics.

Liberty Series 2017-3 Trust

Since closing, the note subordination available for the Class B,
Class C, Class D, Class E and Class F notes has increased to 8%,
5.6%, 4.4%, 3.3% and 2.4% from 6.7%, 4.7%, 3.7%, 2.8% and 2%.

The Guarantee Fee Reserve Account has accumulated AUD3.6 million
(0.4% of current total current note balance) from excess spread.

The performance of the transaction has been within expectations
since closing. As of February 2018, 0.7% of the outstanding pool
was 30-plus day delinquent, and 0.3% was 90-plus day delinquent.
The deal has incurred AUD18,166 of losses to date.

Based on the observed performance and outlook, Moody's maintained
its expected loss assumption at 1.2% as a percentage of the
original pool balance.

Moody's decreased its MILAN CE assumption to 9.2% from 10.5% since
closing, based on the current portfolio characteristics.

The MILAN CE and expected loss assumption are the two key
parameters used by Moody's to calibrate the loss distribution
curve, which is one of the inputs into the cash-flow model.

The transactions are Australian RMBS secured by a portfolio of
prime and non-conforming residential mortgage loans. A portion of
the portfolio consists of loans extended to borrowers with
impaired credit histories or made on a limited documentation
basis.


The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
September 2017.

Factors that would lead to an upgrade or downgrade of the ratings:

Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations, and (2) deleveraging of the capital
structure.

Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than
Moody's expectations, (2) decrease in the notes' available credit
enhancement, and (3) deterioration in the credit quality of the
transaction counterparties.


* S&P Takes Various Actions on 18 Classes From 6 Interstar Deals
----------------------------------------------------------------
S&P Global Ratings lowered its ratings on the class B notes issued
by Perpetual Trustee Co. Ltd. as trustee of Interstar Millennium
Series 2002-1G Trust, Interstar Millennium Series 2003-3G Trust,
Interstar Millennium Series 2004-1E Trust, Interstar Millennium
Series 2004-4E Trust, Interstar Millennium Series 2004-5 Trust,
and Interstar Millennium Series 2005-2L Trust.

At the same time, S&P lowered its rating on the Interstar
Millennium Series 2004-1E Trust class AB notes and affirmed our
ratings on the class A notes for Interstar Millennium Series 2003-
3G Trust, Interstar Millennium Series 2004-1E Trust, Interstar
Millennium Series 2004-4E Trust, Interstar Millennium Series 2004-
5 Trust, and Interstar Millennium Series 2005-2L Trust.

The lowered ratings on the class B notes reflect:

-- That the class B notes are the junior notes in these
    structures, not benefitting from any subordination or
    overcollateralization.

-- The small and increasingly concentrated nature of the pools.
    As of Dec. 31, 2017, five of the trusts have fewer than 500
    consolidated loans, with the exception of Interstar 2004-4E,
    which has 523 consolidated loans. Interstar 2003-3G and
    Interstar 2004-5 contain 214 and 224 consolidated loans,
    respectively.

-- That as outstanding assets and notes decrease significantly,
    S&P takes the view that tail risk takes greater precedence in
    transactional performance and our rating analysis. S&P
    expects that its ratings on pools beyond a 5% pool factor
    will be increasingly driven by the potential for event risk,
    and other tail risks.

-- That as of Dec. 31, 2017, all transactions have top 10
    borrower concentrations of greater than 10%, with the top 10
    borrowers in the Interstar 2003-3G and Interstar 2004-5
    trusts representing 17.26% and 19.16%, respectively.

-- That S&P has assessed pool concentrations by sizing an
    alternate loss scenario for the pool. Under this scenario,
    the top 10 loans at the 'AAA' rating level and top four loans
    at the 'BBB' rating level default and are recovered upon. The
    loss severity for each loan is the higher of 50%, the loan's
    loss severity, and the pool's weighted-average loss severity.
    The expected loss for the pool is the higher of that number,
    and the number sized applying S&P's "Australian RMBS Rating
    Methodology And Assumptions" criteria, published Sept. 1,
    2011. This approach is consistent with the "U.S. RMBS
    Surveillance Credit And Cash Flow Analysis For Pre-2009
    Originations" criteria, published March 2, 2016.

-- That arrears for these transactions are tracking
    significantly higher than S&P's Standard & Poor's Performance
    Index for prime residential mortgage-backed securities
    (RMBS). A total of 7.00% of the loans in the Interstar 2005-
    2L transaction are more than 30 days in arrears. The figure
    is 4.90% for the Interstar 2003-3G transaction.

-- The 'BBB' category ratings reflect the strong cash flows
    available to each trust, despite the small size of the pools.
    S&P Global Ratings' cash-flow modeling supports a higher-
    than-assigned rating level in certain scenarios; however,
    emerging event risk weakens the overall profile of the
    transactions. S&P Global Ratings assesses the financial
    strength of the class B notes as adequate, but they are more
    likely to have a weakened capacity to pay as the transaction
    size decreases further and the potential effect of event risk
    increases.

The lowered rating on the Interstar 2004-1E class AB notes
reflects:

-- The relatively small amount of credit enhancement available
    to this class of note in the form of subordination, which is
    now A$1.05 million, as a result of the pro-rata paydown of
    the structure. In S&P's opinion, this leaves this tranche
    vulnerable to increasing tail risk in a 'AAA' rating
    scenario.

The affirmations of our ratings on the class A notes reflect:

-- The buildup of credit support to the class A notes in the
    form of subordination provided by the class B notes is higher
    than the assessed level of credit support required at the
    'AAA (sf)' rating level in all cases.

-- S&P's view of the credit risk of the underlying collateral
    portfolios, which consist of loans to prime-quality
    borrowers, with lower weighted-average loan-to-value ratios,
    and seasoning of more than five years in all cases.

-- Lenders' mortgage insurance is provided for all loans in each
    of the portfolios.

-- The strong cash flows available to each trust, despite the
    small size of the pools.

A list of Affected Ratings can be viewed at:

                      https://bit.ly/2uxPdWm



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


CHINA COMMERCIAL: Mingjie Zhao Quits as CEO and President
---------------------------------------------------------
Mr. Mingjie Zhao resigned from his positions as chief executive
officer, president and a director of China Commercial Credit, Inc.
effective March 19, 2018. Mr. Zhao's resignation was not a result
of any disagreement with the Company relating to its operations,
policies or practices, according to a Form 8-K filed by China
Commercial with the Securities and Exchange Commission.

                Appointment of New CEO and President

Effective March 19, 2018, the Company's board of directors
appointed Mr. Chenguang Kang as CEO and president of the Company
and elected him as a director of the Board of to fill the vacancy
created by the resignation of Mr. Zhao.

Mr. Chenguang Kang was the co-founder and the general manager of
Beijing Supersfun Science and Technology Limited Company, a
company in automotive financial services and loans service for
small micro enterprises since July 2014. From December 2012 to
June 2014, Mr. Kang served as the vice president of operation at
Beijing Covigor Science and Technology Limited Company, a company
in live platform business. From August 2011 to November 2012, Mr.
Kang served as a city manager at Nuomi.com. Mr. Kang held a
Bachelor degree in Vocal Music from Bohai University. Mr. Kang's
abundant internet auto financial platform operation experience,
business aptitude and management ability qualified him as a
director of the Company.

Mr. Kang also entered into an executive employment agreement with
the Company, which sets his annual compensation at $50,000 and
establishes other terms and conditions governing his service to
the Company.

                   About China Commercial Credit

Founded in 2008, China Commercial Credit --
http://www.chinacommercialcredit.com/-- is a financial services
firm operating in China. Its mission is to fill the significant
void in the market place by offering lending, financial guarantee
and financial leasing products and services to a target market
which has been significantly under-served by the traditional
Chinese financial community. The Company's current operations
consist of providing direct loans, loan guarantees and financial
leasing services to small-to-medium sized businesses, farmers and
individuals in the city of Wujiang, Jiangsu Province.

China Commercial's independent accounting firm Marcum Bernstein &
Pinchuk LLP, in Shanghai, China, issued a "going concern"
qualification on the consolidated financial statements for the
year ended Dec. 31, 2016, citing that the Company has accumulated
deficit that raises substantial doubt about its ability to
continue as a going concern.

China Commercial reported a net loss of US$1.98 million for the
year ended Dec. 31, 2016, compared with a net loss of US$61.26
million for the year ended Dec. 31, 2015. The Company's balance
sheet as of Sept. 30, 2017, showed US$7.71 million in total
assets, US$8.48 million in total liabilities and a total
shareholders' deficit of US$774,251.


GUANGZHOU R&F: Fitch Cuts Long-Term IDR to BB- on High Leverage
---------------------------------------------------------------
Fitch Ratings has downgraded Guangzhou R&F Properties Co. Ltd.'s
Foreign- and Local-Currency Long-Term Issuer Default Ratings
(IDR), senior unsecured rating and ratings of all its outstanding
bonds to 'BB-' from 'BB'. Fitch has also removed the ratings from
Rating Watch Negative (RWN) and assigned a Negative Outlook on the
IDRs.

The ratings have been downgraded following the substantial
completion of Guangzhou R&F's hotel and office assets acquisition
from Dalian Wanda Commercial Management Group Co., Ltd. (BB+/RWN)
and Fitch expectation that its leverage, as measured by net
debt/adjusted inventory, will climb to around 65% in the next year
or two. The first batch of transaction consisted of 69 hotels and
one office building for total consideration of CNY18 billion,
which was paid in 2017. Guangzhou R&F's high leverage stems from
aggressive land acquisition in 2017, when it replenished 18
million square metres (sq m) of attributable gross floor area of
land bank for CNY58 billion - a land acquisition/contracted sales
value ratio of 0.7x, against 0.1x-0.3x in the previous three
years.

The Negative Outlook reflects limited headroom for leverage, which
is at around the threshold where Fitch would further downgrade
Guangzhou R&F's ratings. The company's pursuit of rapid scale
expansion, to CNY200 billion-300 billion of contracted sales, from
CNY82 billion in 2017, could see its land acquisition pace
increase above Fitch expectations to push leverage beyond 65%.

KEY RATING DRIVERS

Sustained High Leverage: Fitch expect Guangzhou R&F's leverage, as
measured by net debt/adjusted inventory, which stood at 60.2% at
end-2017 - above Fitch negative threshold of 60.0% - to rise to
65.0% in the next year or two, as the company must settle CNY22
billion of outstanding land premiums during 2018. The company also
plans to spend 30%-40% of contracted sales proceeds on land
acquisitions in 2018-2019 and accelerate its construction
expenditure to support growth in contracted sales scale towards
CNY200 billion-300 billion by 2020. Guangzhou R&F's accelerated
land acquisitions have raised its net debt by 45% yoy, to above
CNY112 billion at end-2017 (end-2016: CNY77 billion).

Wanda Acquisition Substantially Completed: Guangzhou R&F confirmed
that it completed its acquisition of 69 hotels and one office
building from Dalian Wanda, paying total consideration of CNY18
billion in 2017, according to its circular dated 19 March 2018 and
2017 results announcement. Another Wanda hotel was completed and
transferred in January 2018, while three Wanda hotels are pending
transaction completion by end-2019.

Higher Non-Development EBITDA: The company's hotel and rental
income revenue surged by 45% yoy to CNY3.3 billion in 2017 (2016:
CNY2.3 billion), with the newly acquired Wanda hotels contributing
around two months of revenue. Fitch expect Guangzhou R&F's non-
property development revenue to reach CNY8.1 billion in 2018 with
full-year contributions. The company's non-property development
EBITDA/gross interest expense ratio is likely to improve
moderately to 0.24x in 2018-2019, from 0.17x in 2017, on lower
profit margins and higher operating costs following the migration
to the newly acquired Wanda hotels.

Stabilising Margins: Fitch expect Guangzhou R&F's EBITDA margin to
fall to 24%-25% in 2018-2019. It had an EBITDA margin of 26% and a
gross profit margin of 35% in 2017, improved from 21% and 28%,
respectively, in 2016. The margins will be supported by the
company's unrecognised property sales of CNY45 billion, which
carried a gross profit margin of 38% as at February 2018 (2017
booked property sales gross profit margin: 37%). These sales will
be recognised over the next year or, two together with a
contracted average selling price that recovered to CNY13,278 per
sq m in 2M18, from CNY12,961 in 2016.

DERIVATION SUMMARY

Guangzhou R&F's geographical diversification is comparable with
'BB+' and 'BB' rated peers. Its homebuilding scale in contracted
sales is comparable with CIFI Holdings (Group) Co. Ltd.'s
(BB/Stable) CNY104 billion in 2017 and is higher than the CNY40
billion-70 billion of 'BB-' rated peers, such as Yuzhou Properties
Company Limited's (BB-/Stable) CNY40 billion.

However, Guangzhou R&F's ratings are constrained by its weakening
financial profile, following the substantial completion of hotel
and office asset acquisitions from Dalian Wanda, as well as its
aggressive land acquisitions. The company's leverage ratio, as
measured by net debt/adjusted inventory, of 60% at end-2017 is at
the higher range of the 50%-60% of 'B+' rated peers, such as China
Evergrande Group's (B+/Stable) 60%. Guangzhou R&F will also need
to maintain a land bank of five to six years to support its
expansion in contracted sales, which could limit room for de-
leveraging in the next two to three years. Fitch expect the
company's leverage to reach 65% in 2018-2019.

No Country Ceiling, parent/subsidiary or operating environment
aspects affect the rating.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Fitch Rating Case for the Issuer
- Attributable contracted sales to reach CNY131 billion in 2018
   and CNY167 billion in 2019 (2017: CNY82 billion)
- EBITDA margin of 24%-25% in 2018-2019, slightly lower than the
   26% in 2017 due to higher operating costs from Wanda asset
   migration
- Hotel and property rental revenue to reach CNY8 billion-9
   billion in 2018-2019
- Land bank life reduced to and sustained at four to five years,
   from a high of almost eight years at end-2017

RATING SENSITIVITIES

Developments that May Lead to the Outlook being changed to Stable
include:
- Net debt/adjusted inventory sustained below 65% (2017: 60%)

Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- Continued decline in property contracted sales
- Net debt/adjusted inventory at over 65% for a sustained period

LIQUIDITY

Sufficient Liquidity: Guangzhou R&F had a cash balance of CNY32
billion, including restricted cash of CNY13 billion as at end-
2017, sufficient to cover short-term debt of CNY28 billion and the
CNY767 million yet to be settled on the Wanda hotel acquisitions.
However, the cash/short-term debt ratio declined to 1.1x at end-
2017, from 1.4x at end-2016.

FULL LIST OF RATING ACTIONS

Guangzhou R&F Properties Co. Ltd.
- Long-Term Foreign-and Local-Currency IDRs downgraded to 'BB-'
   from 'BB', off RWN; Outlook Negative
- Senior unsecured rating downgraded to 'BB-' from 'BB+', off
   RWN

Easy Tactic Limited
- USD725 million 5.75% senior unsecured notes due January 2022
   downgraded to 'BB-' from 'BB', off RWN
- USD500 million 5.875% senior unsecured notes due February 2023
   downgraded to 'BB-' from 'BB', off RWN


HILONG HOLDING: Moody's Says Improved 2017 Results Support B1 CFR
-----------------------------------------------------------------
Moody's Investors Service says that Hilong Holding Limited's
improved 2017 results are in line with Moody's expectations and
support its B1 corporate family and senior unsecured ratings.

The ratings outlook remains stable.

"Hilong's debt leverage decreased to 3.9x in 2017 from 5.3x in
2016, driven largely by improved earnings from strong revenue
growth, especially from (1) its oilfield equipment manufacturing
and services and oilfield services businesses; and (2) the Russia
(Ba1 positive), Central Asia, East Europe and South Asia regions,"
says Chenyi Lu, a Moody's Vice President and Senior Credit
Officer.

Lu points out that these improvements were also supported by a
modest decrease in adjusted debt to RMB2.54 billion at the end of
2017 from RMB2.83 billion at the end of 2016 as the company used
internal cash to repay debt. Consequently, cash and cash
equivalents dropped to RMB389 million from RMB657 million over the
same period.

"We expect its debt leverage to further improve over the next 12-
18 months, driven by higher earnings from rising demand for
Hilong's products and services," adds Lu.

Moody's expects Hilong's adjusted debt/EBITDA to trend towards
3.5x over the next 12-18 months, driven by continued earnings
improvements from stronger revenue growth. However, its adjusted
debt will increase modestly to support higher capital expenditure
and to increase its cash and cash equivalent balance for working
capital purposes. This level of leverage is in line with Moody's
expectation and well supports its B1 rating.

Hilong's revenue increased 38.4% year-on-year to RMB2.67 billion
in 2017, partially due to a 123% increase in drill pipe sales
particularly in Russia, Central Asia and East Europe. However, its
adjusted EBITDA margin declined to 24.2% in 2017 from 27.7% in
2016, as lower gross margins from the line pipe technology and
services and oilfield services businesses were only partially
offset by an improved gross margin in the offshore engineering
services business.

Moody's projects Hilong's revenue to increase by 13.5% in 2018 and
12.5% in 2019, as upstream oil and gas companies will increase
their capital spending. Moreover, Moody's expects a relatively
stable oilfield services and drilling market over the next 12-18
months will improve demand for Hilong's products and services.

Moody's also projects for Hilong's adjusted EBITDA margin to
improve to about 25.0%-25.5% over the next 12-18 months as the
company focuses on expense and cost-control measures and on
growing product and service diversification to mitigate margin
volatility.

Hilong's liquidity profile is adequate. At year-end 2017, the
company had cash and cash equivalents of RMB389 million and
restricted cash of RMB150 million. These liquidity sources and its
expected operating cash flows of around RMB350 million over the
next 12 months are sufficient to cover its RMB544 million of
short-term debt, RMB166 million of bills payable, and estimated
RMB150 million of maintenance capital expenditure over the next 12
months.

The principal methodology used in these ratings was Global
Oilfield Services Industry Rating Methodology published in May
2017.

Hilong Holding Limited is an integrated oilfield equipment and
services provider. Its four main businesses are: (1) oilfield
equipment manufacturing and services, (2) line pipe technology and
services, (3) oilfield services, and (4) offshore engineering
services.

The company listed on the Hong Kong Stock Exchange in 2011. Mr.
Jun Zhang, the chairman and founder of the company, is the
controlling shareholder, with a 58.6% equity interest at end-2017.


JINGRUI HOLDINGS: Fitch Withdraws B- Long-Term IDR
--------------------------------------------------
Fitch Ratings has withdrawn Chinese homebuilder Jingrui Holdings
Limited's (Jingrui) Long-Term Foreign-Currency Issuer Default
Ratings of 'B-' and senior unsecured rating of 'CCC' with a
Recovery Rating of 'RR6'.

KEY RATING DRIVERS

Fitch has chosen to withdraw the ratings on Jingrui for commercial
reasons. As Fitch does not have sufficient information to maintain
the ratings, accordingly the agency has withdrawn the issuer's
ratings without affirmation and will no longer provide ratings or
analytical coverage for Jingrui.

DERIVATION SUMMARY

Not applicable

KEY ASSUMPTIONS

Not applicable

RATING SENSITIVITIES

Rating sensitivities are not applicable as the ratings have been
withdrawn

LIQUIDITY

Not applicable


SEVEN CLOUDS: Will Raise $40M in Private Placement Financing
------------------------------------------------------------
Seven Stars Cloud Group, Inc., has entered into a purchase
agreement with GT Dollar Pte. LTD., a Singaporean-based global
virtual credit clearing system operator connecting over 2 million
businesses worldwide, for US$40,000,000, in exchange for SSC
common stock and two Convertible Promissory Notes.  The Purchase
Agreement and Promissory Notes contain both customary and special
representations, warranties and covenants.

Pursuant to the terms of the Purchase Agreement and Convertible
Promissory Notes, the Company, in a private placement transaction,
has agreed to the following:

   (a) GTD will receive 13,773,010 shares of SSC Common Stock for
       a purchase price of US$25,066,878, or $1.82 per share.
       GTD has agreed to fund the US$25,066,878 on or before
       March 31, 2018.

   (b) The Company will issue to GTD two Promissory Notes -- one
       for US$10,000,000 and one for US$4,933,121, bringing
       Purchaser's total investment into the Company to
       US$40,000,000.  Upon satisfaction of certain conversion
       conditions, including but not limited to, obtaining
       approvals of the Company's stockholders and filing an
       Information Statement pursuant to Section 14(c) of the
       Securities Exchange Act of 1934, all of the principal and
       accrued but unpaid interest will be automatically
       converted into shares of SSC Common Stock at a conversion
       rate of $1.82 per share.  GTD has agreed to fund (i)
       US$4,933,121 on or before March 31, 2018 in exchange for a
       Promissory Note from SSC and (ii) US$10,000,000 on or
       before April 30, 2018, in exchange for a separate
       Promissory Note.

The Notes will bear interest at the rate of 0.56% per annum and
mature Dec. 31, 2019.  In the event of default, the Notes will
become immediately due and payable.  Until receipt of necessary
shareholder approvals for the transactions contemplated by these
agreements, the Notes note may not be converted, to the extent
that such conversion would result in GTD and its affiliates
beneficially owning more than 19.9% of the Company's outstanding
shares of Common Stock. Once the necessary shareholder approval is
received, the unpaid principal and interest on the Notes will
automatically convert into shares of Common Stock at a conversion
rate of $1.82.

SSC intends to use the proceeds to support growth, strategic
acquisitions, executive management hires, US headquarters costs,
infrastructure costs and for general working capital purposes.  In
addition, SSC and GTD intend to enter into a partnership that will
enhance SSC's ability to market its digital financial products by
leveraging GTD's vast financial products sales network in Asia.
Details of the partnership to be announced at a later date.

The securities being sold in this private placement have not been
registered under the Securities Act of 1933, as amended, or state
securities laws and may not be offered or sold in the United
States absent registration with the Securities and Exchange
Commission or an applicable exemption from such registration
requirements.

                     About Seven Stars

Seven Stars Cloud Group, Inc., formerly Wecast Network, Inc. --
http://www.sevenstarscloud.com/-- is aiming to become a next
generation Artificial-Intelligent (AI) & Blockchain-Powered,
Fintech company.  By managing and providing an infrastructure and
environment that facilitates the transformation of traditional
financial markets such as commodities, currency and credit into
the asset digitization era, SSC provides asset owners and holders
a seamless method and platform for digital asset securitization
and digital currency tokenization and trading.  The company is
headquartered in Tongzhou District, Beijing, China.

KPMG Huazhen LLP, in Beijing, China, issued a "going concern"
qualification in its report on the consolidated financial
statements for the year ended Dec. 31, 2016, noting that the
Company incurred recurring losses from operations, has net current
liabilities and an accumulated deficit that raise substantial
doubt about its ability to continue as a going concern.

Webcast reported a net loss of $27.43 million in 2016 following a
net loss of $8.54 million in 2015.  As of Sept. 30, 2017, Seven
Stars had $71.55 million in total assets, $47.76 million in total
liabilities, $1.26 million in convertible redeemable preferred
stock, and $22.53 million in total equity.


YANGO GROUP: Fitch Withdraws B- Rating on New US Dollar Sr. Notes
-----------------------------------------------------------------
Fitch Ratings has withdrawn the 'B-(EXP)' expected rating with
Recovery Rating of 'RR5' on Yango Group Co., Ltd's (B/Positive)
proposed US dollar senior notes. The expected bond ratings were
assigned on Jan. 28, 2018 and have been withdrawn for commercial
reasons.

KEY RATING DRIVERS

Not relevant.

DERIVATION SUMMARY

N/A

RATING SENSITIVITIES


ZHONG YI: Moody's Assigns Ba3 Rating to New Senior Secured Notes
----------------------------------------------------------------
Moody's Investors Service has assigned a B3 rating to the proposed
senior secured notes to be issued by Zhong Yi Holdings Limited,
which is a cross-border entrustment loan lender to Si Chuan
Province JuYang Group Limited (JuYang, B2 stable).

Through the assignment of rights of an entrustment loan agreement,
the bonds will indirectly benefit from:

* A personal guarantee provided by the Chairman of JuYang;

* A corporate guarantee provided by Ju Yang and its subsidiaries;

* The pledge of shares of three subsidiaries under JuYang, as well
as the tangible property assets of Sichuan JuYang Hotel Group
Luzhou Hotel Co., Ltd. and Lezhi County JuYang Hotel Investment
Co., Ltd.; and certain commercial and car park assets of Lezhi
County JuYang Real Estate Development Co., Ltd. and Chisuhi JuYang
Real Estate Development Co., Ltd.

The rating reflects Moody's expectation that JuYang will complete
the bond issuance on satisfactory terms and conditions, including
proper registrations with the National Development and Reform
Commission and the State Administration of Foreign Exchange in
China (A1 stable).

The net proceeds from the issuance will be used for the repayment
of existing onshore financial indebtedness, working capital
purposes, and the acquisition of hotel assets.

The ratings outlook is stable.

RATINGS RATIONALE

The secured bond rating is rated one notch below JuYang's CFR,
reflecting the structural complexities of the borrowing
arrangements under the cross-border entrustment loan agreement,
which is subject to legal and regulatory uncertainty.

Despite the pledge of tangible assets under the onshore credit
support terms for the entrustment loan, the issuer is not a direct
lender nor a direct mortgagee.

Moody's does not expect the bond to affect JuYang's credit profile
materially as the majority of the proceeds will be used to repay
existing debt and to fund the capex of projects under development.

The potential for an acquisition is budgeted within Moody's
projections for capex spending.

JuYang's B2 corporate family rating reflects the group's track
record in hotel management and property development in the south
of Sichuan Province.

On the other hand, the rating also reflects JuYang's relatively
small scale, and its high levels of revenue and geographic
concentration risk.

The group's B2 corporate family rating is also constrained by its
private company status, with weaker access to funding and weaker
level of corporate governance when compared with listed companies.

The company's plans to expand into tourism and cinema operations
will also increase execution and financial risks.

The rating also reflects the company's limited financial
flexibility because of its high exposure to secured debt.

The stable rating outlook reflects Moody's expectation that JuYang
will maintain (1) the profitability of its hotel management and
real estate development businesses; (2) an adequate liquidity
position; and (3) a measured approach in its investments in the
tourist and cinema businesses without a substantial rise in debt.

The rating could be upgraded if JuYang (1) increases its scale;
(2) maintains an adequate liquidity position, while its hotel
management and real estate development businesses remain
profitable and cash generating; and (3) improves its debt
leverage, with adjusted debt/EBITDA below 3.5x-4.0x.

Factors that could lead to a rating downgrade include (1) a
deteriorating liquidity position; (2) deteriorating profitability
or cash flow at the company's core hotel management business; (3)
a more aggressive expansion strategy in terms of size or level of
borrowings; or (4) adjusted debt/EBITDA exceeding 5.0x.

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

Founded in 2003, Si Chuan Province JuYang Group Limited (JuYang)
is a privately owned company with its headquarters in Luzhou in
Sichuan Province. It engages in real estate, finance, and hotel &
tourism businesses in China.

As of June 2017, it had seven hotels in operation, two hotels
under development and five completed commercial and residential
properties with an aggregate gross floor area of 691,100 square
meters.

The company's chairman, Mr. XianChun Yu, his wife, Mrs. WanXing
Huang, and brother, Mr. PengFei Yu, collectively owned 100% of
JuYang as of the end of June 2017.



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


CITIC RESOURCES: Moody's Hikes CFR to Ba3; Outlook Stable
----------------------------------------------------------
Moody's Investors Service has upgraded CITIC Resources Holdings
Limited's (CITIC Resources) corporate family rating to Ba3 from
B1.

At the same time, Moody's has changed the rating outlook to stable
from negative.

RATINGS RATIONALE

"The upgrade of CITIC Resources' corporate family rating to Ba3
reflects Moody's expectation that the company will sustain its
trend of improvement in debt leverage," says Chenyi Lu, a Moody's
Vice President and Senior Credit Officer, and the International
Lead Analyst for CITIC Resources.

"Furthermore, the rating action also reflects Moody's expectation
that the company's liquidity conditions will prove satisfactory
over the next 12 to 18 months," says Jin Wu, a Moody's Vice
President and Senior Credit Officer, and also the Local Market
Lead Analyst for CITIC Resources.

CITIC Resources has exhibited a trend of debt deleveraging. As
such, debt/EBITDA (not including adjustments for its joint-venture
oil businesses) improved to 8.4x at the end of 2017 from 13.3x at
the end of 2016, driven by improving earnings on the back of
recovering crude oil prices and its modest level of debt reduction
in 2017.

Moody's expects debt/EBITDA will fall to around 7.9x -7.8x over
the next 12 to 18 months as crude oil prices are unlikely to
decline materially and as the company's production will increase
as capital expenditures are implemented.

CITIC Resources' liquidity position has also improved after it
refinanced two term loans, including a USD490 million term loan
with a 5-year shareholder loan of USD500 million, in June 2017.

Moreover, the company had a cash balance of HKD1.4 billion at the
end of 2017 which was sufficient to cover its short-term debt of
HKD386 million at that time, planned capital expenditures, and
dividends of HKD196 million over the next 12 months.

CITIC Resources' Ba3 corporate family rating reflects the
company's standalone credit profile and a three-notch uplift based
on Moody's assessment of a high likelihood of extraordinary
financial support from its parent CITIC Group Corporation (CITIC
Group, A3 negative) in a financial distress situation.

The extraordinary financial support has considered (1) CITIC
Resources' important role as an overseas platform for resources
development within the CITIC Group; (2) the high reputational risk
for CITIC Group, should CITIC Resources default; and (3) the track
record of parental support, as evidenced by the provision of a
USD500 million shareholder term loan in 2017.

CITIC Resources' standalone credit profile further reflects the
company's established production record at its Karazhanbas
oilfield and the improvements in the profitability of its Seram
Block and Yuedong oilfield.

On the other hand, its standalone credit profile is constrained by
(1) its small scale in the oil exploration and production (E&P)
business; (2) the fluctuations in its revenues owing to the
volatility in oil, coal and metal prices; and (3) its still weak
credit metrics.

The stable outlook reflects Moody's expectations that CITIC
Resources' operational profile will remain largely stable, and
that the company will sustain its trend of deleverage and continue
to obtain financial support from its parent, CITIC Group.

CITIC Resources' Ba3 rating could experience upgrade pressure if
the company (1) grows its business scale, (2) shows improvements
in the production and debt capital structure of its oilfields,
including those under joint ventures; and (3) reduces its debt
leverage, such that E&P debt/average daily oil production is below
USD30,000 or adjusted debt/EBITDA is below 6.0x on a sustained
basis.

On the other hand, the rating would experience downgrade pressure
if Moody's assesses that parental financial support for the
company has weakened. Such a situation could be caused by a
decline in the strategic importance of CITIC Resources to its
parent, a decline in the shareholding held by CITIC Group, or a
material weakening of CITIC Group's credit quality.

The principal methodology used in this rating was Independent
Exploration and Production Industry published in May 2017.

CITIC Resources Holdings Limited is an energy and natural
resources investment holding company, with interests in aluminum
smelting; coal; import and the export of commodities; manganese;
and bauxite mining and alumina refining. It also has interests in
the exploration, development and production of oil. The company
serves as the principal natural resources and energy arm of its
parent, CITIC Group.



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


AKSHAR SPINTEX: Ind-Ra Raises Long Term Issuer Rating to BB+
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Akshar Spintex
Limited's (ASL; formerly Akshar Spintex Private Limited) Long-Term
Issuer Rating to 'IND BB+' from 'IND BB'. The Outlook is Stable.
The instrument-wise rating actions are as follows:

-- INR242.7 mil. (reduced from INR296 mil.)Term loan due on
    August 2022 upgraded with IND BB+/Stable rating;

-- INR60.0 mil.Fund-based working capital limits upgraded with
    IND BB+/Stable rating; and

-- INR13.5 mil.Non-fund-based working capital limits affirmed
    with IND A4+ rating.

KEY RATING DRIVERS

The upgrade reflects a substantial improvement in ASL's revenue
along with an improvement in the credit metrics. In FY17, revenue
grew to INR867.95 million (FY16: INR584.11 million) on account of
an increase in orders. ASL achieved revenue of INR924.3 million as
of February 2018. EBITDA interest coverage (operating EBITDA/gross
interest expense) improved to 1.4x in FY17 (FY16: 1.0x) and net
leverage (Ind-Ra adjusted net debt/operating EBITDAR) to 5.6x
(6.8x) because of a decline in total debt and an improvement in
absolute EBITDA. However, EBITDA margins remained declined to
around 8.7% in FY17 (FY16: 11.0%) because of an increase in raw
material cost.

The ratings also factor in the company's modest liquidity position
as indicated by around 93.4% average use of its working capital
limits during the 12 months ended February 2018. Net working
capital cycle improved to 60 days in FY17 (FY16: 74 days) owing to
a reduction in inventory holding period to 52 days (69 days).

RATING SENSITIVITIES

Positive: A substantial improvement in revenue and operating
profitability, along with an improvement in the credit metrics
could lead to a positive rating action.

Negative: A further decline in the operating profitability leading
to deterioration in the credit metrics could lead to a negative
rating action.

COMPANY PROFILE

ASL was incorporated in September 2013 as a private limited
company. On January 5, 2018, the company changed its constitution
to a public limited company. ASL manufactures carded cotton yarn,
semi-combed cotton yarn and combed cotton yarn of finer quality
with 16-44 count. Other than revenue from operations, the company
also obtained a subsidy income of INR43.17 million in FY17 (FY16:
INR55.32 million).

The company sells its product under the ASL brand. It is promoted
by Mr. Ashok Bhalala.


ANAND MINE: Ind-Ra Affirms BB LT Issuer Rating, Outlook Stable
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Anand Mine Tools
Private Limited's (AMTPL) Long-Term Issuer Rating at 'IND BB'. The
Outlook is Stable. The instrument-wise rating actions are given
below:

-- INR130 mil. (increased from INR60 mil.)Fund-based working
    capital limits affirmed with IND BB/Stable rating;

-- INR40 mil.Proposed fund-based working capital limits*
    assigned with Provisional IND BB/Stable rating;

-- INR27.5 mil. (reduced from INR40.15 mil.) Term loan due on
    July 2021 affirmed with IND BB/Stable rating; and

-- INR16 mil.Non-fund-based limits assigned with IND A4+ rating.

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

KEY RATING DRIVERS

The affirmation reflects AMTPL's continued modest credit metrics,
despite an improvement in the company's scale of operations to
modest from small, due to the working capital intensive nature of
the dealership business. Revenue surged to INR1,020 million in
FY17 (FY16: INR208 million) due to increased sale of low margin
JCBs. However, EBITDA margins declined to 3.56% in FY17 (FY16:
9.1%) due to an increase in material cost.

Interest coverage (operating EBITDA/gross interest expense)
improved to 2.42x in FY17 (FY16: 1.58x) and net leverage (total
adjusted net debt/operating EBITDAR) improved to 4.2x (5.2x) due
to an increase in absolute EBITDA to INR36 million (FY16:INR19
million), driven by the improvement in revenue.

The ratings are constrained by the company's tight liquidity
position as reflected by near full utilization of its fund-based
limits during the 12 months ended February 2018.

However, the ratings continue to benefit from the promoters'
experience of more than one decade in the trading of industrial
equipment.

RATING SENSITIVITIES

Negative: A substantial decline in revenue or profitability
margins resulting in a sustained deterioration in the credit
metrics will lead to a negative rating action.

Positive:  A substantial increase in the scale of operations while
maintaining profitability margins, leading to a sustained
improvement in the credit metrics will lead to a positive rating
action.

COMPANY PROFILE

Incorporated in 2010,AMTPL is an authorized dealer of JCB for
sales and services of all JCB equipment and spare parts in the
Nagpur, Chandrapur, Wardha, Yavatmal, Bhandara, Gondia, Gadchiroli
and Wani. The company also trades domestic as well as imported
Wilfley make pumps and spare parts.


BLUE WHEEL: Ind-Ra Assigns BB- Rating on INR540MM Bank Loans
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has rated Blue Wheel National
Health Care & Educational Trust's (BWNHET) bank facilities as
follows:

-- INR540 mil.Bank loans assigned with IND BB-/Stable rating.

KEY RATING DRIVERS

The rating reflects BWNHET's small scale of operations and modest
credit metrics. Total income grew at a CAGR of 21.56% over FY13-
FY17 to INR52.15 million (FY16: INR32.03 million), driven by a
63.31% yoy increase in tuition fee income to INR51.09 million.
Tuition fee income is the major source of revenue and contributed
average 98.52% to the total income during FY13-FY17.

The trust did not avail any bank loans during FY13-FY17. Its
debt/current balance before interest, depreciation and rent
(CBBIDR) improved to 0.26x in FY17 (FY16: 0.41x), mainly due to an
improvement in CBBIDR to INR26.30 million (INR9 million).
Debt/income ratio was comfortable at 12.88% for FY17 (FY16:
11.52%). BWNHET is setting up a 200-bed multi-specialty hospital
for an estimated cost of INR900.1 million, which will be funded
from debt (60%) and equity/internal accruals (40%) during FY18-
FY19. Thus, Ind-Ra expects debt burden to rise in FY18 from 0.26x
in FY17.

The trust maintained operating margins of above 21.62% during
FY13-FY17. Operating margin excluding rent improved to 46.41% in
FY17 (FY16: 21.62%) on account of a 62.56% yoy increase in
operating income to INR51.97 million, partially offset by a 11.15%
increase in key expenditure to INR27.85 million. Simultaneously,
the CBBIDR margin also improved to 50.43% in FY17 (FY16: 28.08%).

The rating also factors in the trust's moderate liquidity
position. During FY14-FY16, the available funds to cover operating
expenditure were in the range of 40% to 49%. In FY17, the trust's
available funds (cash and unrestricted investments) as a
percentage of operating expenditure increased to 123.58% (FY16:
49.84%) due to an increase in cash and bank balance, resulting
from increased surplus. Ind-Ra expects the capex plan is likely to
stress the liquidity profile during FY18-FY19.

Total headcount grew at a CAGR of 17.03% during academic year
2015-16 to 2017-18. Despite the increase in headcount (up 15.43%
yoy to 793 students) in the academic year 2017-18, capacity
utilization declined to 64.26% from 69.25%, due to lack of demand
for courses offered by Blue Wheel College.

BWNHET's interest service coverage ratio improved to 12.29x in
FY17 (FY16: 4.44x) owing to increased CBBIDR. However, interest
payments on term loans from FY18, is likely to stress the coverage
ratios during FY18-FY20.

RATING SENSITIVITIES

Negative: Any unexpected fall in student demand along an increase
in leverage, leading to weak coverage ratios would trigger a
negative rating action.

Positive: A sustained growth in student headcount and a
substantial increase in revenue, leading to improved operational
performance and comfortable leverage would trigger a positive
rating action.

COMPANY PROFILE

BWNHET was established as a Public Charitable Trust in 1999 and
registered under Indian Trust Act, 1872. It manages two nursing
colleges, and a science and commerce college in Odisha. The trust
started a new institute in 2016 at Shampur, Odisha with an annual
approved intake of 192 students.


MITTAL CLOTHING: Ind-Ra Lowers Long Term Issuer Rating to BB-
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Mittal Clothing
Private Limited's (MCPL) Long-Term Issuer Rating to 'IND BB-' from
'IND BB'. The Outlook is Stable. The instrument-wise rating
actions are as follows:

-- INR14.27 mil. (reduced from INR17.5 mil.)Term loan due on
    May 2021 downgraded with IND BB-/Stable rating; and

-- INR43.23 mil. (increased from INR40.0 mil.)Fund-based working
    capital facility (cash credit) downgraded with IND BB-/Stable
    rating.

KEY RATING DRIVERS

The downgrade reflects a decline in MCPL's scale of operations and
credit metrics in 9MFY18 on account of lower orders from existing
customers, following a change in the company's business model. The
company began manufacturing apparels under its own brand, Alena in
September 2017. Revenue declined to INR114.54 million in 9MFY18
(FY17: INR523 million, FY16: INR405 million). However, EBITDA
margin expanded to 13.44% in 9MFY18 (FY17: 3.8%; FY16: 5.5%) owing
to sale of high margin own brand apparels.

EBITDA interest coverage (operating EBITDA/gross interest expense)
declined to 2.3x in 9MFY18 (FY17: 2.9x, FY16: 2.3x) due to an
increase in interest expenses. Ind-Ra expects net financial
leverage (total adjusted net debt/operating EBITDAR) to
deteriorate in FY18 (FY17: 3.8x, FY16: 3.1x) owing to an increase
in short-term debt. Ind-Ra expects the credit metrics to remain
weak in FY18.

The ratings also factor in MCPL's modest liquidity position as
indicated by 83.92% average use of its fund-based facilities over
the 12 months ended February 2018. Ind-Ra expects net working
capital cycle to elongate in FY18 due to an increase in inventory
holding period owing to higher inventory, resulting from time
taken by the company to establish its own brand apparels. Net
working capital cycle stood at 74 days in FY17 (FY16: 85 days)
with an inventory holding period of 66 days (106 days).

However, the ratings remain supported by the promoters' over three
decades of experience in the apparel manufacturing business.

RATING SENSITIVITIES

Positive: A significant and sustained growth in revenue and EBITDA
margins, leading to an improvement in the credit metrics could
result in a rating upgrade.

Negative: A sustained decline in revenue and EBITDA margins, or
elongation of the net working capital cycle, resulting in
deterioration in the credit metrics could lead to a negative
rating action.

COMPANY PROFILE

MCPL is involved in yarn dyeing, weaving, fabric processing,
design and embroidery, and manufacturing of ethnic apparels for
women and children.


NEERG ENERGY: Fitch Affirms B+ Rating on US$475MM Senior Notes
--------------------------------------------------------------
Fitch Ratings has affirmed the rating on Neerg Energy Ltd's
US$475 million 6% senior notes due 2022 at 'B+' with a Recovery
Rating of 'RR4'. The notes' rating reflects the credit profile of
a restricted group of operating entities under ReNew Power
Ventures Private Limited, a company involved in renewable power
generation in India.

Neerg Energy is a SPV held by a trust and its ownership is not
linked to ReNew Power. The SPV used the note proceeds to subscribe
to masala bonds (offshore bonds denominated in Indian rupee but
settled in US dollars) issued by the entities in the restricted
group. The SPV does not undertake any business activity other than
investing in the masala bonds.

KEY RATING DRIVERS

FY17 Performance Meets Expectations: Total electricity sold by the
restricted group in the financial year ended March 2017 (FY17) was
largely in line with Fitch expectations. The outperformance of the
40MW Ron, 119.7MW Elutla and 25.2MW Jasdan power projects was
offset by lower-than-anticipated generation from the 23.1MW
Welturi 2 and 49.5MW Vasper 2 & 3 plants. The portfolio's
receivable position was supported by the recovery of dues from
Maharashtra's state utility. Andhra Pradesh's state utilities are
also likely to clear the majority of its dues in FY18 after the
resolution of tariff-related issues. The majority of loans to be
extended to related parties were delayed to FY18, improving end-
FY17 leverage metrics.

Financial Profile to Improve: Fitch expects the restricted group's
financial profile to improve, with net leverage falling below 5.5x
by end-FY20. This will be mainly supported by higher EBITDA
generation as existing assets chalk up full years of operations.
The management also plans to augment the restricted group's
capacity from FY19. The additional capacity will be financed via
cash flow from operations and external debt in conjunction with
the covenants of the notes.

The US dollar notes face refinancing risk as the cash balance at
the restricted group is not likely to be sufficient to repay the
notes at maturity. However, this risk is mitigated by ReNew
Power's relatively sound access to funding and support from its
strong equity investors.

Not-so-seasoned Portfolio, Diversified Operations: The restricted
group has a total generation capacity of 503.7MW. Around 38% of
capacity commenced commercial operations more than four years ago
but about 62% started power generation only within the last two
years. The assets of the restricted group are diversified by type
(wind: 78% of total capacity; solar: 22%) and location, which
mitigates risks from adverse climatic conditions. The wind assets
are spread across five Indian states; though wind patterns across
larger geographic areas tend to be correlated, they are
complemented by solar power plants.

Weak Counterparty Profile: The rating reflects the weak credit
profile of the key counterparties of the restricted group - state-
owned power distribution utilities - which account for about 80%
of the restricted group's offtake. The rest of the offtake is sold
directly to corporate customers, increasing the diversity of
counterparties. The utilities in the Indian states of Gujarat and
Madhya Pradesh have a record of timely payments to the restricted
group, but the receivable cycle has been longer for others.

There have been no payment defaults by state utilities to the
renewable sector to date, despite payment delays. Fitch expect an
improvement in the financial health of the state utilities and a
reduction in payment delays due to the introduction of reforms for
state distribution utilities in India. The states that purchase
power from the restricted group have signed up for these reforms.

Price Certainty, Volume Risks: The restricted group's assets
benefit from long-term power purchase agreements (PPAs) for all
its wind and solar assets, with tenors of 10-25 years for state
utility contracts, and 7-10 years for direct sales. Although the
long-term PPAs provide protection from price risk, production
volumes will vary with wind and solar radiation patterns.

Ratings Linked to Restricted Group: Fitch's rating on the US
dollar notes reflects the credit strengths and weaknesses of the
debt structure and assets of the operating entities that form the
restricted group. The US dollar noteholders benefit from a first
charge over the masala bonds in addition to a charge over the
banks' accounts and 100% of the shares of the SPV. The masala
bonds in turn are secured by a first charge on all assets
(excluding accounts receivables) and cash flows of the operating
entities in the restricted group.

The indentures on the US dollar notes and masala bonds restrict
cash outflows and debt incurrence. The restricted group is
constrained from incurring additional debt or making restricted
payments if they raise the restricted group's ratio of gross
debt/EBITDA to above 5.5x. The restricted group will not have
significant prior-ranking debt, aside from a working capital debt
facility of a maximum of USD30 million - secured exclusively
against accounts receivables. The total external debt at the
restricted group is limited to 15% of total assets.

Foreign Exchange Risk Largely Hedged: Foreign-exchange risk arises
as the earnings of the restricted group's assets are in Indian
rupees while the notes are denominated in US dollars. However, the
SPV has fully hedged its semi-annual coupon payments and
substantially hedged the principal of its US dollar notes. The
redemption premium on the masala bonds issued by the operating
entities in the restricted group, which is payable to the SPV,
also provide an additional cushion.

Inconsequential Guarantee: The notes' ratings are not linked to
ReNew Power's credit quality. ReNew Power guarantees the masala
bonds but the guarantee may not be available through the life of
the notes. This is because it is due to fall away once the
restricted group's gross debt/EBITDA falls below 5.5x.

DERIVATION SUMMARY

Fitch sees Greenko Dutch B.V (GBV, US dollar notes: BB-) and Azure
Power Energy Ltd. (APEL, US dollar notes: BB-) as Neerg Energy's
closest peers among the rated restricted groups from other Indian
renewable players.

GBV's credit profile benefits from diversification across fuel
type, a large number of power stations, strong record with a long
operating history across a majority of its capacity and stable
plant-load factors over the past few years. APEL has a shorter
operating record but its credit profile benefits from exposure to
stable and predictable solar-based power plants and a lower
counterparty risk profile, with a third of its capacity contracted
to sovereign-backed counterparties. In comparison, about 62% of
Neerg Energy's total capacity commenced operations within the
previous two years. Its net coverage is also weaker and Fitch
forecast the measure will remain under 2.0x over the life of the
notes. Fitch believe these factors, combined with higher net
borrowings per unit of capacity, justify Neerg Energy's credit
profile at a notch lower than that of the other two.

In terms of global peers, Concord New Energy Group Limited (CNE,
BB-/Stable) has 819MW of wind-based operational power capacity in
areas with low curtailment risk and a stable feed-in-tariff regime
in China. Counterparty risk is low as CNE's revenue stream relies
mostly on State Grid Corporation of China (A+/Stable) and China's
Renewable Energy Subsidy Fund. Fitch think CNE's leverage profile
is close to that of Neerg Energy but its coverage profile is much
stronger. CNE's construction risk, as it aims to add 200MW-550MW
of wind capacity per year from 2018-2021, time lag faced in
receiving subsidies and structural subordination from high
project-level debt counteract CNE's positives to an extent.
However, Fitch believe the one-notch difference is justified
between its ratings and that of Neerg Energy's US dollar notes.

Melton Renewable Energy UK PLC (BB/Stable) has total installed
capacity of 174MW across the UK, including biomass and landfill-
based power stations under the country's supportive regulatory
framework. However, about 35% of group revenue is exposed to
wholesale price risk, with a potentially significant impact on
cash flow. Nevertheless, the company's financial profile is much
stronger than that of Neerg Energy, justifying two notches of
difference in their credit profiles, in Fitch view.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Fitch Rating Case for the Issuer
- Plant-load factors ranging from 19% to 30% for all assets, in
   line with historical performance and Fitch expectations of
   improvement
- Plant-wise tariff in accordance with respective PPAs
- EBITDA margins in the region of 80%-90% for all assets, in
   line with historical performance
- Receivable days to improve to around 70 days in the next
   couple of years (FY17: 142 days)
- New assets to be added to the restricted group from FY19,
   subject to covenants of the notes
- Zero dividend payout in the medium term

RATING SENSITIVITIES

Developments that May, Individually or Collectively, Lead to
Positive Rating Action
- EBITDAR net-fixed charge coverage of above 2.0x on a sustained
   basis. The fixed charge includes the cost of forex hedging.
- Improvement in leverage, as measured by net-adjusted
   debt/operating EBITDAR, to below 4.5x on a sustained basis.

Developments that May, Individually or Collectively, Lead to
Negative Rating Action
- EBITDAR net-fixed charge coverage not meeting Fitch's
   expectation of above 1.5x on a sustained basis over the medium
   term
- Failure to adequately mitigate foreign-exchange risk
- Significant increase in refinancing risks
- A weakening of ReNew Power's credit profile

LIQUIDITY

Better Liquidity: The refinancing of the restricted group's
project debt by the US dollar notes has improved the group's
liquidity. The notes have a five-year maturity, resulting in
minimum debt maturities in the medium term. Fitch expect the
management to deploy a mix of cash flows generated from operations
and additional debt to augment the restricted group's capacity in
the medium term subject to covenants of the dollar notes.


SAA VISHNU: Ind-Ra Affirms BB+ LT Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Saa Vishnu Bakers
Private Limited's (SVBPL) Long-Term Issuer Rating at 'IND BB+'.
The Outlook is Stable. The instrument-wise rating actions are as
follows:

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

-- INR37.5 mil. (reduced from INR50 mil.)Fund-based working
    capital limit* assigned with IND BB+/Stable rating; and

-- INR346.2 mil. (increased from INR118.24 mil.) Term loan due
    on March 2026 affirmed with IND BB+/Stable rating.

* The final rating is based on the receipt of sanction letter by
Ind-Ra.

KEY RATING DRIVERS

The affirmation reflects SVBPL's continued modest credit metrics
due to its small scale of operations. In FY17, interest coverage
was 3.6x (FY16: 3.31x) and net financial leverage was 2.2x
(1.96x). The improvement in interest coverage was mainly due to a
rise in total absolute EBITDA (FY17: INR74.03 million; FY16:
INR68.9 million). However, net financial leverage deteriorated on
account of an increase in debt at year-end. Revenue increased to
INR355 million in FY17 from INR316 million in FY16 due to a higher
number of orders received and executed. SVBPL booked INR247
million in revenue for 9MFY18.

SVBPL is undertaking a debt-led capex to setup new plants in
Ranchi and Gaya. Ind-Ra expects the capex to marginally affect the
credit metrics during FY18-FY19. The total cost of the project is
INR440 million, which is being funded by term loans and equity in
a ratio of 7:4.

The ratings, however, continued to be supported by SVBPL's strong
operating margin of about 20.87% during FY17 (FY16: 21.79%) due to
the job work nature of business and associations with brands such
as Parle Products Private Limited and Haldirams Snacks Pvt Ltd.
Moreover, the liquidity profile of the company is comfortable with
average working capital utilization of around 76% during the 12
months ended February 2018.

RATING SENSITIVITIES

Negative: Any decline in the scale of operations or profitability
could be negative for the ratings.

Positive: Any further rise in the scale of operations while
maintaining the credit metrics could be positive for the ratings.

COMPANY PROFILE

Incorporated in 2009, SVBPL manufactures biscuits at its 46,500
metric tons per annum facility in Ranchi. The company is managed
by Mr. Anirudh Poddar and Mr. Dalmia. The key customer being Parle
Biscuits Pvt Ltd. Recently the company has entered into contract
with Haldiram Snacks Pvt Ltd for chips manufacturing.


SANGAM FORGINGS: Ind-Ra Affirms 'B' Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Sangam Forgings
Private Limited's (SFPL) Long-Term Issuer Rating at 'IND B'. The
Outlook is Stable. The instrument-wise rating actions are given
below:

-- INR30 mil. (reduced from INR60 mil.) Fund-based limits
     affirmed with IND B/Stable rating; and

-- INR15 mil. (reduced from INR45 mil.)Non-fund-based limits
     affirmed with IND A4 rating.

KEY RATING DRIVERS

The affirmation reflects SFPL's continued small scale of
operations and weak credit metrics. Revenue more than halved to
INR41 million during FY17 (FY16: INR100 million) due to receipt of
low orders. The company had an order book of INR17.59 million,
which provides low revenue visibility. The company recorded an
operating EBITDA of INR13 million in FY17, as against an operating
loss of INR16 million in FY16. EBITDA margin was 33.1%, interest
coverage (operating EBITDA/gross interest expense) was 1.7x and
net financial leverage (total adjusted net debt/operating EBITDA)
was 8.1x in FY17.

The ratings also remain constrained by SFPL's tight liquidity
position as indicated by full utilization of its fund-based limits
over the 12 months ended February 2018.

However, the ratings continue to be supported by the promoter's
experience of more than a decade in the forging business.

RATING SENSITIVITIES

Positive: An improvement in the operating profitability, leading
to an improvement in the overall credit metrics will be positive
for the ratings.

Negative: Any deterioration in the liquidity position will be
negative for the ratings.

COMPANY PROFILE

Incorporated in 1976, SFPL manufactures forging products.


SMJDB ESTATE: Ind-Ra Migrates BB- LT Rating to Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated SM-JDB Estate
Pvt. Ltd.'s (SMJDB) 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 as follows:

-- INR800 mil.Term loan due on September 2030 migrated to Non-
    Cooperating Category with IND BB-(ISSUER NOT COOPERATING)
    rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
March 27, 2017. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

SMJDB is setting up a four star hotel of 129 rooms with a
commercial retail space of 1,629sqm at G.S Road, Guwahati to cater
to the city's business and corporate sector and leisure/ health
tourists. The total cost of the project is INR1,299.80 million.

SUNAHRI MULTI: Ind-Ra Raises Lon gTerm Issuer Rating to 'BB-'
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has upgraded Sunahri Multi
Grain Private Limited's (SMGPL) Long-Term Issuer Rating to 'IND
BB-' from 'IND B+'. The Outlook is Stable. The instrument-wise
rating actions are as follows:

-- INR65 mil.Fund-based working capital limits upgraded with
    IND BB-/Stable rating; and

-- INR39.18 mil. (reduced from INR55 mil.) Term loan due on
    September 2019 upgraded with IND BB-/Stable rating.

KEY RATING DRIVERS

The upgrade reflects an improvement in SMGPL's revenue, leading to
an improvement in its credit metrics. However, the company's
financial profile remained modest due to the seasonal nature of
business. Revenue increased to INR353 million in FY17 (FY16:
INR274.96 million) on account of higher order execution. Interest
coverage (operating EBITDA/gross interest expense) improved to
1.6x in FY17 (FY16: 1.3x) and net financial leverage to 5.7x
(7.5x) mainly due to a decline in debt level. However, EBITDA
margin declined to 5.25% in FY17 (FY16: 5.83%) due to an increase
in raw material and manufacturing costs.

The ratings are constrained by the company's tight liquidity
position as reflected by around 98% average utilization of its
working capital limits during the 12 months ended February 2018.

The ratings, however, derive support from SMGPL's directors'
almost 10 years of experience in the rice industry.

RATING SENSITIVITIES

Positive: An improvement in the scale of operations and/or credit
metrics will be positive for the ratings.

Negative:  Deterioration in the scale of operations or operating
profitability will be negative for the ratings.

COMPANY PROFILE

Incorporated in 2009 as RLJ Multi Grain Private Limited, SMGPL is
engaged in rice production. The company commenced commercial
operations in 2012. It has its own paddy crushing unit, which has
an installed capacity of 48,000 metric tons per annum. It is
managed by Mr. Vinod Jain and has a manufacturing unit in
Jamshedpur. The company changed its name to SMGPL in January 2017.


TATA STEEL: Fitch Maintains Rating Watch Evolving on BB IDR
-----------------------------------------------------------
Fitch Ratings has maintained the Rating Watch Evolving on Tata
Steel Limited's (TSL) 'BB' Long-Term Issuer Default Rating (IDR)
and Tata Steel UK Holdings Limited's (TSUKH) 'B' Long-Term IDR.

Fitch estimates TSL's FFO adjusted net leverage to moderate to
below 4x by the end of the financial year to March 2018 (FYE18),
from 5x at FYE17 and 13x at FYE16, aided by robust profitability
at its Indian operations as well as equity inflows from a rights
issue in February 2018. The company is also on track to cut
exposure to structural weaknesses in the steel industry in Europe
by transferring its European flat steel assets and around EUR2.5
billion of term debt to a proposed 50:50 JV with thyssenkrupp AG
(BB+/Rating Watch Positive). However, Fitch also see risks to
TSL's financial and overall credit profile from its potential
acquisitions of distressed steel assets in India. TSL's ratings
remain on Rating Watch Evolving while Fitch awaits confirmation of
and further information on the JV in Europe and potential
acquisitions.

KEY RATING DRIVERS

Robust Profitability in India: TSL's reported EBITDA jumped 54%
yoy in 9MFY18, with the Indian operations accounting for about 60%
of the additional EBITDA. In India, TSL benefited from a 18% rise
in steel sales in 9MFY18 as its plant in Kalinganagar ramped up
output, and a 22% increase in EBITDA per tonne (in rupee terms).
Healthy steel prices and rising volumes helped to raise margin to
around INR14,100/tonne in 3Q from INR10,600/tonne in 1Q in India,
where TSL enjoys significant vertical integration. However, EBITDA
per tonne declined by 8% in Europe and south-east Asia in 9MFY18
as better price realisations were more than offset by higher raw
material and other operating costs.

Improved Industry Fundamentals: Hot-rolled steel-sheet spot prices
in China rose to an average of USD640/tonne so far in 2018 from
USD450 in April 2017, driven by healthy demand and capacity cuts
in the world's largest market and higher raw material costs.
Chinese steel exports fell around 30% in 2017, alleviating
pressure on other markets. Fitch expects producers to maintain
their margins in 2018, although prices are likely to moderate over
the year. Fitch believes impact of US steel import tariffs on
global markets should be limited even if steel previously shipped
to the US is diverted elsewhere, as US imports represent only a
small proportion of total world steel production.

India's steel demand growth was steady at around 5% in 9MFY18, and
the rate should be sustained in the near term due to government
infrastructure spending, improved agriculture-sector incomes and
an acceleration in economic activity. Robust international steel
prices have rendered India's anti-dumping duties ineffective.
However, risks to Indian steelmakers' margins are lower than for
their global peers due to regulatory protection should global
steel prices decline sharply.

Potential Acquisition of Distressed Assets: TSL intends to double
capacity in India from 13 million tonnes in the next five years by
acquiring assets under insolvency proceedings and organic growth.
TSL has won the bid for Bhushan Steel Limited (BSL), one of five
key steel assets up for sale in the first round of insolvency
proceedings, and is awaiting regulatory approval. TSL also bid for
Bhushan Power and Steel Limited and Electrosteel Steels Limited,
but results for these have not yet been announced. The three
assets are in mineral-rich eastern India, and acquiring them could
allow TSL to consolidate its market position there and use its
iron ore reserves to improve raw material access and profitability
for these entities.

TSL is likely to have a controlling stake in and consolidate BSL
in its financials. BSL's financial creditors have made claims
totalling INR560 billion, or two-thirds of TSL's consolidated FY17
debt, as of 15 January 2018. However, TSL has yet to announce
details of any debt restructuring and earnings improvement
potential at BSL. A significant medium-term increase in leverage
due to these potential acquisitions is a risk to TSL's credit
profile despite improvement in its capacity and market position,
in Fitch view.

European JV On Track:  TSL and thyssenkrupp expect to sign
definitive agreements for their JV in Europe after due diligence
and shareholder approval in the spring of 2018, and close the deal
after anti-trust and other regulatory approvals by the end of
2018. The JV will be the second-largest European flat steel
producer. The partners intend the JV to have a self-sustaining
capital structure, with the JV's liabilities having no recourse to
the partners. Fitch expects to use the equity accounting method
for this JV when assessing TSL, and focus on the significance of
its Indian business without the overhang of weaker demand, higher
conversion costs and lack of raw material sources in Europe.

Capex for Expansion, Upgrade: TSL plans to spend INR235 billion on
the second phase of its Kalinganagar plant to increase capacity by
5 million tonnes per annum (mtpa) and add a 2.2mtpa cold rolling
mill to produce high-end steel for use in products such as
automobiles. The project includes galvanizing and annealing lines
and investments to augment raw-material facilities at the site.
TSL aims to commission the additional capacity within four years
from the start of construction. The spending is likely to pick up
after 18-24 months, and will be significantly lower on a per-tonne
basis than the capex incurred for installation of the 3mpta
capacity in Phase 1, which was a green-field project.

Rating for TSUKH on Watch: The rating for TSUKH factors in a very
weak financial profile and a two-notch uplift due to strategic
ties with TSL. While TSUKH's profitability improved markedly in
FY17 due to TSL's restructuring efforts in Europe and higher steel
prices, its leverage and liquidity metrics remained poor. The
credit profile of TSUKH is likely to improve under the proposed JV
with thyssenkrupp, but the linkages between TSL and TSUKH have
weakened due to TSL's decision to transfer TSUKH's assets to the
JV. Fitch awaits details of the corporate structure, cost
optimisation plans and financial policy for TSUKH to resolve the
Rating Watch.

Tata Group Support for TSL: TSL's ratings benefit from a one-notch
uplift due to potential support from India's Tata Group based on
TSL's strategic importance to the group.

DERIVATION SUMMARY

TSL's standalone rating of 'BB-' can be compared with domestic
peer JSW Steel Limited (BB/Stable). TSL's standalone rating is
based on a combination of robust operations in India and a much-
weaker operating profile in Europe, where the company intends to
cut exposure. Vertical integration is a key advantage for TSL in
India, while JSW Steel's position as the market leader in steel
sales and cost-efficient operations are positives for the company.

While JSW Steel has also shown interest in Indian distressed
assets, it intends to keep a minority stake and ringfence itself
from their liabilities. This approach is more conservative
compared to that of TSL, which is likely to consolidate potential
distressed assets after acquiring a majority stake. TSL's leverage
was higher than that of JSW Steel in FY16 and FY17, and may remain
higher over the next two to three years depending on the amount of
debt retained or repaid by TSL at the acquired entities.

ArcelorMittal S.A. (BB+/Positive) is rated higher than TSL, as it
is larger and more diversified and has lower leverage. However,
the gap in the ratings is limited by ArcelorMittal's lower margin
due to its global manufacturing facilities, including in locations
with structurally high costs such as Europe and the US. TSL's
margins are driven by its Indian operations, where it benefits
from significant vertical integration.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Fitch Rating Case for the Issuer
- Consolidated steel sales volume of around 25 million tonnes in
   FY18 and FY19, falling to around 16 million tonnes from FY20
   after the transfer of assets in Europe to the JV with
   thyssenkrupp (FY17: 23.9 million tonnes)
- Consolidated EBITDA per tonne of around USD130 in FY18 and
   FY19, improving to over USD140 from FY20 due to increase in
   share of Indian operations in total sales (FY17: USD106)
- Average annual capex of around INR80 billion over FY18-21
- INR91 billion of equity inflow in FY18 and INR36 billion in
   FY19 from a rights issue in February 2018

RATING SENSITIVITIES

TSL

The Rating Watch Evolving will be resolved following a review of
TSL's credit profile once Fitch has confirmation of and further
details on the JV in Europe and potential acquisitions. An upgrade
is probable if TSL's FFO-adjusted gross leverage does not increase
materially above 4x. However, Fitch may downgrade the rating if
leverage increases significantly due to potential acquisitions.

TSUKH

The Rating Watch Evolving will be resolved following a review of
TSUKH's credit profile once details of the corporate structure and
financials for the proposed JV and TSUKH emerge.

LIQUIDITY

Adequate Liquidity: TSL reported cash and cash equivalents of
INR127 billion and undrawn credit lines of around INR99 billion as
of 31 December 2017. TSL only had INR24 billion of long-term debt
repayments due in FY19, according to its FY17 annual report. The
company enjoys strong banking relationships and access to
financial markets and its short-term debt is likely to be rolled-
over.

FULL LIST OF RATING ACTIONS

Fitch has maintained the Rating Watch Evolving on the following
ratings:
TSL
- Long-Term Foreign-Currency IDR of 'BB'
- Senior unsecured rating of 'BB'
- 'BB' ratings on USD500 million 4.85% senior unsecured
   guaranteed notes due 2020 and USD1 billion 5.95% senior
   unsecured guaranteed notes due 2024 issued by ABJA Investments
   Co Pte Ltd, a wholly owned subsidiary of TSL

TSUKH:
- Long-Term Foreign-Currency IDR of 'B'



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


ALAM SUTERA: Fitch Affirms 'B' Long-Term IDR; Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed Indonesia-based property developer PT
Alam Sutera Realty Tbk's (ASRI) Long-Term Issuer Default Rating
(IDR) at 'B' with a Stable Outlook. Fitch has also affirmed ASRI's
senior unsecured debt rating at 'B' with Recovery Rating of 'RR4'.

The affirmation of ASRI's ratings reflects Fitch view that the
company's business and financial risk profiles are largely intact,
despite the weaker-than-expected presales in 2017. Fitch believes
ASRI's rating is also supported by a large low-cost land bank,
quality assets and established domestic franchise. A full list of
rating actions is at the end of this commentary.

KEY RATING DRIVERS

Presales Likely to Improve: Fitch forecasts ASRI to book around
IDR3 trillion of presales in 2018 (2017: IDR2.2 trillion), around
half of which are likely to be from contracted land sales to its
Chinese development partner, China Fortune Land Development
(CFLD), and the remainder from the sale of existing inventory and
new project launches in both the Alam Sutera and Suvarna Sutera
townships. ASRI's presales underperformance in 2017 was primarily
due to weak sales at its prime office project, The Tower, which
represented 40% of the original 2017 target. Fitch does not assume
any sales from The Tower in 2018 and 2019.

Fitch also sees some short-term demand risk due to the upcoming
regional and presidential elections in 2018 and 2019. Fitch
believes the political uncertainty may deter consumers from big-
ticket purchases, such as property, and lead to weaker-than-
expected presales.

Land Sales Increase Concentration: ASRI's liquidity has benefited
from its partnership with CFLD in its Suvarna Sutera township
project in Pasar Kemis, under which CFLD buys raw, zoned land from
ASRI's deep local land bank in the area. This strategy does,
however, make ASRI's cash flow dependent on one buyer. CFLD's
involvement will accelerate the achievement of critical mass for a
development located on the outer edge of greater Jakarta, but ties
ASRI's own land bank in the area more closely to the development
success or failure of a third party.

Slight Shift in Development Strategy: ASRI's original Alam Sutera
township, close to Jakarta's central business district (CBD) and
served by retail, commercial and increasingly light-business
properties, is approaching maturity. Future residential
developments will probably comprise more high-rise units, where
ASRI has a shorter record, rather than houses. The company's
commercial projects are also likely to feature condominiums as
part of mixed-use developments, notably in the potential
redevelopment of ASRI's other Jakarta CBD property, the older
Wisma Argo Manunggal. The redevelopment of Wisma Argo Manunggal
will be timed to match sales from the completed The Tower.

Solid Land Bank: The company has a large low-cost land bank and an
established domestic franchise. The company has close to 20
million sq m of land available for development with a carrying
value of over IDR10 trillion at end-2017. In particular, ASRI
still benefits from around 120 ha of prime development land bank
within the original Alam Sutera township plus adjacent land
purchased or under negotiation for purchase from fellow developer,
PT Modernland Realty Tbk (B/Stable) and other land owners.

Finances Still Stretched: Land sales, including to CFLD, have
helped plug lower-than-anticipated presales in a market already
facing challenges from continued supply growth. This prudent move
has been at the cost of lowering operating cash flow quality and
overall realisation from the company's land bank. Operating cash
flow and working capital have been volatile over recent periods,
with gross debt climbing as presales and booked revenue fall

DERIVATION SUMMARY

ASRI's Long-Term IDR may be compared with those of peers, such as
Modernland and PT Kawasan Industri Jababeka Tbk (B+/Stable).
Around half of ASRI's and Modernland's property sales consist of
commercial and industrial property. Demand for these types of
properties is more cyclical during economic downturns than for
residential properties. However, ASRI has a better record of
selling residential properties and a larger land bank to support
sales compared with Modernland. Still, Modernland has demonstrated
stronger sales execution during the recent downturn. These
reasons, combined with Fitch view that both companies will
maintain comparable leverage levels, support their similar
ratings.

Jababeka is one of Indonesia's largest industrial property
developers, but its Long-Term IDR is primarily driven by the
strong recurring cash flows it derives from its thermal power
plant, which has a 20-year power purchase agreement with the
state-owned PT Perusahaan Listrik Negara (Persero) (BBB/Stable),
as well as from its dry port. These cash flows provide adequate
cover for Jababeka's interest expenses across economic cycles. The
stability of its recurring cash flow supports a higher rating than
for ASRI, whose property sales have been volatile in the last two
years. The cyclicality of Jababeka's industrial property sales are
counterbalanced by limited infrastructure and capex requirements.

KEY ASSUMPTIONS

Fitch's Key Assumptions within Fitch Rating Case for the Issuer
- Annual property presales of around IDR3 trillion in 2018
- EBITDA margins to remain around 50% in the next two years
- ASRI to spend around IDR2 trillion on land banking in 2018

Key Recovery Rating assumptions:
- The recovery analysis assumes ASRI will be liquidated in a
   bankruptcy rather than continue as a going-concern because it
   is an asset trading company
- For estimating the liquidation value, Fitch have assumed a 75%
   advance rate against the value of accounts receivable and a
   50% advance rate against its inventories and fixed assets.
   Fitch believes the company's reported land bank value, which
   is based on historical land cost, is at a significant discount
   to current market value and, thus, is already conservative
- Fitch have assumed that ASRI's IDR1.2 trillion secured bank
   loans outstanding as of 31 December 2017 will rank prior to
   its USD480 million senior unsecured notes in a liquidation, as
   well as the secured IDR65 billion undrawn debt facilities
   outstanding as of the same date which Fitch assume will be
   fully drawn down prior to liquidation
- Fitch have deducted 10% of the resulting liquidation value for
   administrative claims
- The above estimates result in a recovery of 91%-100% of ASRI's
   unsecured debt, corresponding to a 'RR1' Recovery Rating for
   the senior unsecured notes. Nevertheless, Fitch has rated the
   senior notes at 'B' with a Recovery Rating of 'RR4' because
   under Fitch's Country-Specific Treatment of Recovery Ratings
   criteria, Indonesia falls into 'Group D' of creditor
   friendliness. Instrument ratings of issuers with assets in
   this group are subject to a soft cap at the issuer's IDR.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- Annual presales, including sales to CFLD, sustained at more
   than IDR3.5 trillion
- Net debt/adjusted inventory sustained below 50%

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- Net debt/adjusted inventory above 60% for a sustained period
   (2017: 47%)
- Significant weakening in liquidity

LIQUIDITY

Satisfactory Liquidity: Structurally, the liquidity schedule looks
manageable. Only modest maturities - averaging around IDR400
billion a year from amortising construction and development loans
- are due each year until 2020, during which Fitch expect local
banks to be accommodating if cash flows do not permit
deleveraging. ASRI also employs corridor hedging for its US dollar
bonds, which represent around 85% of its debt, helping defray the
foreign-currency exposure arising from a dollar-funded, rupiah-
income profile.

FULL LIST OF RATING ACTIONS
PT Alam Sutera Realty Tbk
- Long-Term IDR affirmed at 'B'. Outlook Stable
- Senior unsecured rating affirmed at 'B' with Recovery Rating of
'RR4'

Alam Synergy Pte Ltd
- Rating on USD245 million 6.625% senior unsecured bond due 2022
affirmed at 'B' with Recovery Rating of 'RR4'
- Rating on USD235 million 6.95% senior unsecured bond due 2020
affirmed at 'B' with Recovery Rating of 'RR4'


PELABUHAN INDONESIA: S&P Lowers CCR to 'BB+', Outlook Stable
------------------------------------------------------------
S&P Global Ratings lowered its long-term corporate credit rating
on PT Pelabuhan Indonesia III (Persero) (Pelindo III) and the
issue rating on the company's senior unsecured notes to 'BB+' from
'BBB-'. The outlook on the long-term corporate credit rating is
stable.

S&P said, "We lowered the rating on Pelindo III because we project
higher leverage to fund significantly elevated capital spending
plans.

"We believe Pelindo III's leverage tolerance has increased, given
the acceleration of its spending and investment plans associated
with the Indonesian government's aim to improve nationwide sea
connectivity and infrastructure, particularly before the 2019
elections. However, port capacities remain underutilized and the
return on investments is not assured.

"We expect Pelindo III's cash outflows toward capital spending and
advance to suppliers for capital work to reach about Indonesian
rupiah (IDR) 8 trillion in 2018 and up to IDR6 trillion in 2019.
We previously estimated this at IDR3.5 trillion-IDR4.0 trillion
annually over the period. Our revised aggregated spending estimate
of IDR14 trillion in 2018 and 2019 corresponds to about 70% of the
company's own spending budget. This is because we believe such a
significant increase in capital expenditure can have execution and
funding challenges. We believe there is a possibility of capital
spending being lower than our estimate, but the ratio of funds
from operations (FFO) to debt is likely to remain below 20% even
if the capital spending is half the current estimate.

"Spending over the period is also higher than our earlier forecast
because we now assume that Pelindo III will buy back DP World's
49% stake in PT Terminal Petikemas Surabaya (TPS) in the next two
to three years, which will also include additional amounts for
related port equipment (included in capital spending).

"We expect Pelindo III's high spending will outpace its EBITDA
growth. We anticipate that, despite the company's ongoing port
optimization and increasing capacity, container traffic will
increase slightly more than Indonesia's GDP growth of about 5.5%.
This is because most of Pelindo III's ports are not running at
full capacity, with utilization rates of 40%-60%. Furthermore,
domestic tariffs have remained stagnant in the past 10 years, and
we believe the process of gaining approval from different
associations and the government to increase tariff will prove
challenging, particularly in the run-up to the election.

"We now project Pelindo III's reported EBITDA to exceed IDR4.0
trillion in 2018, growing to IDR4.3 trillion-IDR4.5 trillion in
2019. This follows solid EBITDA growth in 2017, reaching almost
IDR3.9 trillion. We believe further increase in international
container traffic and higher international tariffs amid broadly
well-controlled costs after the implementation of efficiency
initiatives will support margins of about 40%.

"Based on the higher spending and relatively moderate EBITDA
growth, we project Pelindo III will have negative free operating
cash flows of IDR5 trillion-IDR6 trillion in 2018 and IDR3
trillion-IDR4 trillion in 2019. As a result, we expect the
company's internal accruals and cash balance will not be able to
fund cash outflows related to capital spending and dividend
distributions. Reported net debt is therefore likely to increase
to about IDR15 trillion in 2018 and about IDR20 trillion in 2020,
from IDR8.5 trillion in 2017.

"In light of our significantly higher net debt expectations, we
project the ratio of FFO to debt will fall sharply to about 15% in
the next three years, from about 30% in 2017. We consider this
level to be more commensurate with a 'bb' stand-alone credit
profile (SACP).
"Our corporate credit rating on Pelindo III still reflects our
view of a very high likelihood of extraordinary support from the
Indonesian government. We consider the company has a strategic
role in managing ports for the economy and providing essential
connectivity throughout the Indonesian archipelago. We believe
Pelindo III's operations are well-aligned with the government's
major economic policy of infrastructure improvement, with the
government, as the sole shareholder, exerting substantial control
on the company's strategy.

"The stable outlook on Pelindo III reflects our expectation that
the company will continue to maintain its strategic role in
developing the regional economy through providing essential
nationwide sea connectivity. We therefore expect the company to
continue to benefit from its close relationship with the
Indonesian government over the next 12-24 months. The stable
outlook also reflects the outlook on Indonesia (BBB-/Stable/A-3).

"We could downgrade Pelindo III if: (1) we lower the sovereign
credit rating on Indonesia; (2) our assessment of the likelihood
of extraordinary government support to the company reduces; or (3)
we lower our assessment on Pelindo III's SACP to 'b+' or below.

"We could lower our assessment on Pelindo III's 'bb' SACP by one
notch if the company's FFO-to-debt ratio falls sustainably below
12%. This could occur due to relatively soft operations and
higher-than-expected spending, resulting in higher debt levels and
weaker operating cash flows.

"We could lower the SACP by two notches to 'b+' and downgrade
Pelindo III if elevated capital spending and weaker cash flows
sustainably weaken the FFO-to-debt ratio below 9%.

"We see limited upside potential in the next 12-24 months, given
the company's elevated long-term spending commitments. However, we
may raise the rating on Pelindo III if we believe the company will
maintain its improved cash flows, better operating performance,
and moderated capital spending, resulting in a FFO-to-debt ratio
of more than 20% over a sustained period."



===============
M A L A Y S I A
===============


PRIME GLOBAL: Incurs US$126,700 Net Loss in First Quarter
---------------------------------------------------------
Prime Global Capital Group Incorporated filed with the Securities
and Exchange Commission its quarterly report on Form 10-Q
reporting a net loss of US$126,666 on US$340,920 of net total
revenues for the three months ended Jan. 31, 2018, compared to a
net loss of US$170,522 on US$326,576 of net total revenues for the
year ended Jan. 31, 2017.

As of Jan. 31, 2018, Prime Global had US$48.06 million in total
assets, US$18.57 million in total liabilities and US$29.48 million
in total equity.

As of Jan. 31, 2018, the Company had cash and cash equivalents of
US$293,444, as compared to US$385,519 as of the same period last
year. Its cash and cash equivalents decreased as a result of cash
used in operation.

"We expect to incur significantly greater expenses in the near
future, including the contractual obligations that we have assumed
. . . to begin development activities.  We also expect our general
and administrative expenses to increase as we expand our finance
and administrative staff, add infrastructure, and incur additional
costs related to being a large accelerated filer, including
directors' and officers' insurance and increased professional
fees," the Company stated in the Report.

The Company added, "Our continuation as a going concern is
dependent upon improving our profitability and the continuing
financial support from our stockholders.  Our sources of capital
in the past have included the sale of equity securities, which
include common stock sold in private transactions and public
offerings, capital leases and short-term and long-term debts.
While we believe that we will obtain external financing and the
existing shareholders will continue to provide the additional cash
to meet our obligations as they become due, there can be no
assurance that we will be able to raise such additional capital
resources on satisfactory terms.  We believe that our current cash
and other sources of liquidity discussed below are adequate to
support operations for at least the next 12 months."

A full-text copy of the Form 10-Q is available for free at:

                       https://is.gd/d1LqMk

                       About Prime Global

Kuala Lumpur, Malaysia-based Prime Global Capital Group Inc
(OTCBB:PGCG) -- http://www.pgcg.cc/-- is engaged in the operation
of a durian plantation, leasing and development of the operation
of an oil palm plantation, commercial and residential real estate
properties.

Prime Global reported a net loss of US$960,069 on US$1.26 million
of net total revenues for the year ended Oct. 31, 2017, compared
to a net loss of US$911,522 on US$1.64 million of net total
revenues for the year ended Oct. 31, 2016.

ShineWing Australia, in Melbourne, Australia, issued a "going
concern" opinion in its report on the Company's consolidated
financial statements for the year ended Oct. 31, 2017, noting that
the Company has a working capital deficiency, accumulated deficit
from recurring net losses and significant short-term debt
obligations maturing in less than one year as of Oct. 31, 2017.
All these factors raise substantial doubt about its ability to
continue as a going concern.



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


NEW ZEALAND ASSOCIATION: Fitch Lowers Long-Term IDR to BB
---------------------------------------------------------
Fitch Ratings has downgraded the Long-Term Issuer Default Rating
of New Zealand Association of Credit Unions (trading as Co-op
Money NZ) to 'BB' from 'BB+'. The Outlook has been maintained at
Negative. At the same time, Fitch has affirmed the Short-Term
Issuer Default Rating at 'B'.

The rating downgrade reflects that the capitalisation and
liquidity positions of Co-op Money NZ are weaker than Fitch had
anticipated at its most recent annual review in December 2017,
suggesting reduced buffers against potential negative outcomes
from the sale of the insurance operations, the roll-out of a new
core banking system to members and its strategic business review.
The Negative Outlook is based on these uncertainties, as well as
the risk that the association's franchise and business generation
could weaken further.

KEY RATING DRIVERS

Co-op Money NZ's rating is driven by its modest franchise and
small customer base. Issues within the membership base could
remain a distraction and damage the reputation of Co-op Money NZ
and the industry in the long term. The association has a
specialised business model and its product offerings will become
less diverse once the sale of its insurance operations is
completed. In addition, there has been reduced member usage of its
treasury services amid a competitive deposit market.

Fitch had anticipated some short-term weakening in Co-op Money
NZ's capitalisation, but updated data indicate that the capital
adequacy ratio is much weaker than expected and likely to remain
so until the sale of the insurance business is finalised. There is
a risk that the transfer of existing policies and subsequent
release of capital could be delayed.

The association's liquidity guidance for the financial year ending
June 2018 (FY18) is weaker than Fitch's expectations, and although
there are short-term remediation options, the overall liquidity
position of the organisation is likely to remain weak. This is
primarily affected by an increased level of costs incurred
relative to budget in the development of the core banking system.

Fitch expects the association's earnings and profitability to
remain soft through to FYE19 with short-term profitability
impacted by relatively high operating and capital restructuring
costs. There is a risk that business generation from third parties
outside the member base does not meet management expectations,
resulting in operating losses and further eroding the capital
base.

RATING SENSITIVITIES

Co-op Money NZ's ratings could be downgraded if membership
disunity continues, reducing its membership base, and threatening
the viability of its business model. Failure to meet strategic
goals, which will be evident from slower-than-anticipated growth
of its non-member businesses, could also lead to a downgrade.

Negative rating action could also come from further deterioration
in Co-op Money NZ's capital and liquidity positions or if the
short-term remediation strategy, including the sale of the
insurance business and the final phase roll-out of the core
banking system, is unsuccessful or significantly delayed.

The Outlook could be revised to Stable if the association were
able to improve its financial profile on a sustainable basis, and
resolve the uncertainties around the strategy and viability of the
business model.

Co-op Money NZ's ratings are also sensitive to broader regulatory
or operating environment changes in New Zealand's non-bank
financial institutions sector.

CRITERIA VARIATION:

Fitch rates Co-op Money NZ under its Global Non-Bank Financial
Institutions Rating Criteria (NBFI criteria), reflecting its
treasury operations and business-to-business transactional service
offerings. Fitch has varied its NBFI criteria by:

- applying elements of both investment managers and financial
   market infrastructure subsectors within the NBFI criteria,
   as Co-op Money NZ operates in both segments; and

- performing a qualitative rather than quantitative assessment
   of the association's financial profile, as the core ratios
   in the NBFI criteria cannot be meaningfully calculated. This
   is because the issuer, which operates as a mutually owned
   support organisation, does not have any debt or measured
   client fund flow and does not charge investment fees like a
   traditional investment manager, which are required inputs into
   Fitch's core ratios.



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


INDUSTRIAL BANK: Fitch Hikes Hybrid Notes Rating from BB+
---------------------------------------------------------
Fitch Ratings has upgraded the rating on Industrial Bank of
Korea's (IBK; AA-/Stable) US dollar-denominated Basel III
compliant Additional Tier 1 (AT1) hybrid notes (ISIN US45604GAD16
and US45604HAD98) to 'BBB' from 'BB+'. The issue rating has been
removed from Rating Watch Positive.

The upgrade follows the publication of Fitch's Bank Rating
Criteria on March 23, 2018, which provides scope to factor in
government support for hybrid securities issued by a policy bank
when Fitch believes the support can effectively be used to
neutralise the hybrid securities' non-performance risk.

KEY RATING DRIVERS

The upgrade was driven by a change of the notes' anchor rating to
IBK's Long-Term Issuer Default Rating (IDR) of 'AA-', rather than
from its Viability Rating of 'a-', Fitch reassessment of
incremental non-performance risk of one notch, loss severity of
two notches embedded in the notes relative to those in senior
unsecured debt and the rating cap applied to IDR-anchored hybrid
notes as per the new criteria of 'BBB' in IBK's case.

The change to the anchor rating reflects Fitch belief that state
support would be extended to the AT1 notes, if required. Fitch
believe Korea's government (AA-/Stable) has a keen interest in
preventing the AT1 notes' loss-absorption features from kicking-
in, given a significant potential of reputational risk to
government and repercussions for the country's policy banks,
including a surge in funding costs for entities that the
government would be obliged to support in case of need. The
government's strong propensity to neutralise non-performance risk
is rendered by its controlling ownership - 55% of common equity at
end-4Q17 - in IBK and strong influence over the bank's management
and strategy. Fitch equalises IBK's IDR and senior debt with the
sovereign rating on account of a de facto solvency guarantee being
in place. IBK meaningfully contributes to the system's stability
as a key policy bank specialising in SME lending.

The one notch for incremental non-performance risk reflects the
probability of sovereign support for AT1 notes being moderately
lower than that for senior liabilities. It takes into account
Fitch's assessment of the government's ability to largely
neutralise non-performance risk, including discretionary coupon
skip risk, through pre-emptive capital injections, which Fitch
expects to come if needed. The notching is lower than the typical
three notches Fitch would apply to a Korean private sector bank's
AT1 notes with similar terms and conditions.

The notes' coupon payments may be partially or fully restricted if
IBK's regulatory capital ratios fall into the capital buffer zone
(see Fitch: AT1 Coupon Risk in Focus on New Korean Bank Capital
Rules, dated 17 March 2016) or if distributable retained earnings
fall short (see Solvency Guarantee Supports Korea's Key Policy
Banks, dated 25 August 2017. A forceful coupon cancellation may be
triggered if the local regulator imposes prompt-corrective
measures against IBK, pursuant to Article 97 of the Regulation on
Supervision of Banking Business, or an emergency measure pursuant
to Article 38 of the same regulation.

Fitch believes the risk of coupon restriction or forceful coupon
cancellation is largely mitigated by the government's
responsibility as IBK's majority shareholder and in helping the
bank meet its regulatory capital requirements. IBK had a surplus
of 3pp to the fully phased-in additional buffer requirements of
Common Equity Tier-1 as of end-2017, a 3.1pp surplus to Tier-1 and
3.7pp surplus to total capital-adequacy ratios, assuming the
current 0% countercyclical capital buffer holds. Fitch estimates
IBK's distributable retained earnings, over which the government
does not have full control, to total over KRW6 trillion at end-
2017, which is ample relative to probable payout levels.

The two notches for loss severity reflect the notes' poor recovery
prospects given the AT1 notes' full and permanent written-off
trigger if and when the local regulator designates IBK as an
insolvent financial institution, according to Article 2 of the
Structural Improvement of the Financial Industry Act; Korea's key
resolution legislation. The notes' rating is capped at 'BBB',
despite the notching, due to the rating caps applied to IDR-
anchored hybrid notes.

RATING SENSITIVITIES

The rating of IBK's AT1 notes is sensitive to a downgrade in the
bank's Long-Term IDR. For instance, a downgrade of the IDR to the
'A' category would prompt a two-notch downgrade in the rating of
AT1 notes to 'BB+', reflecting a change in the rating cap. On the
other hand, an upgrade in the IDR would not affect the issue
rating due to the existing rating cap.

The rating is also sensitive to a change in the anchor or
notching, potentially stemming from a change in Fitch's
assumptions around the state's ability and propensity to prevent
IBK from triggering the notes' loss-absorption features. For
example, the notes could be downgraded if it becomes clearer that
avoidance of coupon skip risk will become increasingly difficult.



                             *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

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


                            *********


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

Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.

Copyright 2018.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Peter Chapman at 215-945-7000.



                 *** End of Transmission ***