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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

          Wednesday, September 5, 2018, Vol. 21, No. 176

                            Headlines


A U S T R A L I A

ADANI ABOT: Moody's Alters Outlook to Pos., Affirms Ba2 Rating
BRIGHTON AUTOMOTIVE: First Creditors' Meeting Set for Sept. 13
DBCT FINANCE: Moody's Alters Outlook to Pos., Affirms Ba1 Rating
FOODORA AUSTRALIA: Unable to Repay Australian Debts
FOODORA AUSTRALIA: Workers' Right Legal Action Dropped

JOURNEY MANAGEMENT: First Creditors' Meeting Set for Sept. 11
ONE KEY: First Creditors' Meeting Set for Sept. 12
PATRA TRUCK: First Creditors' Meeting Set for Sept. 13
QUEENSLAND SCAFFOLDING: First Creditors' Meeting Set for Sept. 12
UNITED SECURITY: First Creditors' Meeting Set for Sept. 12

VICAL N.S.W.: First Creditors' Meeting Set for Sept. 11


C H I N A

GUANGDONG HELENBERGH: Fitch Assigns B(EXP) Rating to Sr. Notes
HC GROUP: Moody's Lowers CFR to B3, Outlook Stable
HOPSON DEVELOPMENT: Fitch Assigns B+ IDR, Outlook Stable
MAOYE INTL: Moody's Affirms B3 CFR & Alters Outlook to Positive
MEINAN ONEHEALTH: Fitch Assigns BB+ IDRs & Sr. Unsec. Rating

MEINIAN ONEHEALTH: Moody's Assigns Ba2 CFR, Outlook Stable
TONGCHUANGJIUDING INVESTMENT: S&P Affirms BB/B ICRs, Outlook Dev.


H O N G  K O N G

NOBLE GROUP: Moody's Raises CFR to Caa1, Outlook Stable


I N D I A

BABASAHEB BAPUSAHEB: CARE Lowers Rating on INR6cr Loan to B
BAJRANG AGRO: CARE Assigns B+ Rating to INR6.59cr LT Loan
BISHNUPRIYA FOOD: CARE Lowers Rating on INR14.76cr Loan to B
C. DOCTOR: CARE Reaffirms B Rating on INR1.75cr LT Loan
C.R. JEWELLERY: CRISIL Migrates Rating on 12cr Loan to B/Stable

CHERAN HARDWARES: CRISIL Withdraws D Rating on INR5.5cr Loan
FABRICATORS (INDIA): CRISIL Migrates B Rating to Non-Cooperating
GOKUL GINNING: CARE Reaffirms B+ Rating on INR6.59cr LT Loan
GOLITE FOOTWEAR: CARE Assigns B+ Rating to INR5.50cr LT Loan
GOVERDHAN TRANSFORMER: CARE Assigns B+ Rating to INR4.50cr Loan

GOYAL GLASSWARE: CRISIL Withdraws 'B' Rating on INR18cr Loan
KONER FOOD: CARE Assigns B+ Rating to INR8.90cr LT Loan to B+
LIKHITA ENERGY: CARE Reaffirms B+ Rating on INR14.21cr Loan
M L RICE: CARE Lowers Rating on INR24.50cr LT Loan to B
MONNET ISPAT: NCLT's Insolvency Resolution Plan Completed

MUSLIM EDUCATIONAL: CRISIL Hikes Rating on INR15.67cr Loan to B
PONMANI INDUSTRIES: CRISIL Withdraws B+ Rating on INR5.75cr Loan
QUADSEL SYSTEMS: CRISIL Lowers Rating on INR6cr Loan to D
RAIPUR SPECIALITY: CARE Reaffirms B+ Rating on INR5.61cr Loan
RD FORGE: CRISIL Reaffirms B+ Rating on INR5cr Packing Credit

SAHA & MONDAL: CARE Lowers Ratings on INR2cr LT Loan to B+
SATGURU AGRO: CARE Lowers Rating on INR20.50cr Loan to B-
S.H. ENTERPRISES: CARE Reaffirms B+ Rating on INR8cr LT Loan
SHREE RAMANJANEYA: CARE Lowers Rating on INR14.91cr Loan to B
SUPER INFRATECH: CARE Moves D Rating to Not Cooperating

SWARNA ACADEMY: CRISIL Assigns B+ Rating to INR4.5cr Cash Loan
VARRON ALUMINIUM: CARE Reaffirms D Rating on INR55cr ST Loan
VARRON AUTOKAST: CARE Reaffirms D Rating on INR322cr Loan
VARRON INDUSTRIES: CARE Reaffirms D Rating on INR142.80cr Loan
YASHODA COTTON: CARE Moves D Rating to Not Cooperating


I N D O N E S I A

CIPUTRA DEVELOPMENT: Fitch Corrects August 30 Ratings Release


J A P A N

ASAHI MUTUAL: Fitch Rates US$430MM Subordinated Bonds 'BB'
DROP: Animation Studio Files for Bankruptcy
KEFIR INC: Goes Bankrupt After Attracting Thousands of Investors


S I N G A P O R E

ADVIVA DISTRIBUTION: Faces Termination Notice Over Rent Default
OUE LIPPO: Former Executive Director Serves Court Documents


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A U S T R A L I A
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ADANI ABOT: Moody's Alters Outlook to Pos., Affirms Ba2 Rating
--------------------------------------------------------------
Moody's Investors Service has revised the outlook on Adani Abbot
Point Terminal Pty Ltd's (AAPT) to positive from stable and
affirmed the Ba2 senior secured ratings.

AAPT is part of an obligor group that has economic ownership of
the Abbot Point Coal Terminal in North Queensland under a 99-year
lease with state-owned lessor, North Queensland Bulk Port
Authority.

Adani Ports and Special Economic Zone Limited (Baa3 stable) is
the ultimate holding company of the AAPT obligor group.

RATINGS RATIONALE

"The positive outlook reflects our expectation that supportive
operating conditions for mining companies -- particularly those
producing metallurgical coal -- should underpin their demand for
AAPT's export capacity over the next few years," says Arnon
Musiker, a Moody's Senior Vice President.

AAPT's rating incorporates its exposure to both thermal and
metallurgical coal producers, with the latter accounting for the
majority of currently contracted throughput. Moody's believes
that prospects for metallurgical coal remain solid, given the
absence of viable alternatives for steel production, but that
thermal coal will remain subject to longer-term structural
challenges posed by the transition to lower emission generation.

Consequently, Moody's believes that metallurgical coal mines are
more likely to invest in new production and renew their export
contracts with the terminal over time. On the other hand,
notwithstanding prevailing high thermal coal prices, mines may
not make large scale investments in new thermal coal production,
although the proposed Carmichael mine could materially change
this situation.

Carmichael is a large greenfield thermal coal mine in the Galilee
Basin in north Queensland that would utilize AAPT capacity for
its coal exports. Carmichael is sponsored by Adani Mining and
includes a new rail link to AAPT.

AAPT's rating does not currently incorporate any additional
demand from Carmichael, because of the early stage of the project
and a degree of uncertainty associated with its development and
construction of the associated logistics.

Moody's will incorporate the credit implications for AAPT
associated with any capacity upgrades that it requires to handle
Carmichael's coal export, along with the associated funding plan,
once Moody's believes there is sufficient visibility around
Carmichael's production and AAPT's expansion plans.

Longer-term revenue visibility is an important credit
consideration for AAPT in view of its highly leveraged capital
structure. Over the next few years, Moody's expects AAPT's funds
from operations (FFO)/debt to remain around 7%, a level that
limits the terminal's financial flexibility.

The Ba2 ratings are supported by the take-or-pay contractual
arrangements with AAPT's coal mining counterparties, with the
contracts providing for the socialization of lost revenue in the
event of counterparty default or contract termination. Such
support represents an important rating consideration, given the
pressure that a coal market downturn would place on AAPT's
counterparties. AAPT's refinance risk has also materially reduced
following the full refinancing of its large (AUD976 million)
November 2018 debt maturities.

AAPT's ratings could be upgraded if Moody's believes that coal
market conditions are likely to remain supportive, FFO/debt will
remain above 7% on a sustained basis, and there is ongoing
stability in AAPT's counterparty base and throughput.

The outlook could be revised to stable if Moody's expects that
AAPTs FFO/debt will fall below 5% on a consistent basis. Such a
situation could result from counterparty default, or notice of
termination of a material contract, without a replacement.

The ratings could also be pressured if the company does not
maintain a track record of compliance with environmental
regulations.

Abbot Point Coal Terminal is situated 25km north of Bowen in
Queensland and is the northern most coal terminal in Australia.

Adani Abbot Point Terminal Pty Ltd (AAPT) subleases the land and
fixtures for the terminal from Mundra Port Holdings Trust (MPHT),
which has economic ownership of the terminal under a 99-year
lease with state-owned lessor, North Queensland Bulk Port
Authority (unrated). AAPT and MPHT together constitute an obligor
group under the senior secured finance documents.

The terminal is operated by Abbot Point Operations Pty Ltd (APO)
which has subcontracted the services to APB. APB has operated the
terminal since 2000 and was acquired by APO in October 2016 from
Glencore plc (Baa2 positive).

Adani Ports and Special Economic Zone Limited (Baa3 stable) is
the ultimate holding company of the obligors, and has entered
into an agreement to sell its equity stake in MPHT and AAPT to a
related party.

The principal methodology used in these ratings was Generic
Project Finance published in April 2018.


BRIGHTON AUTOMOTIVE: First Creditors' Meeting Set for Sept. 13
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Brighton
Automotive Investments Pty. Ltd. will be held at the offices of
Hamilton Murphy, Level 1, 255 Mary Street, in Richmond, Victoria,
on Sept. 13, 2018, at 10:30 a.m.

Richard Rohrt and Alexander Hugh Milne of Hamilton Murphy were
appointed as administrators of Brighton Automotive on Sept. 3,
2018.


DBCT FINANCE: Moody's Alters Outlook to Pos., Affirms Ba1 Rating
----------------------------------------------------------------
Moody's Investors Service has changed the outlook on DBCT Finance
Pty Ltd's senior secured ratings to positive from stable and
affirmed the Ba1 rating.

DBCT is the financing affiliate of DBCT Management Pty Limited
and DBCT Trust, which collectively have economic ownership of the
Dalrymple Bay Coal Terminal through a long-term lease, comprising
a 50-year initial and 49-year option period.

RATINGS RATIONALE

"The positive outlook reflects our expectation that continued
export demand for metallurgical coal from Bowen Basin mines in
DBCT's service area, which accounts for around 80% of the
terminal's throughput, will increase the likelihood of coal mines
continuing to invest in new production over time," says Arnon
Musiker, a Moody's Senior Vice President.

Although DBCT is substantially contracted for the next four to
five years, DBCT's highly leveraged capital structure is
predicated on continued demand for its services over a 10-to-15-
year period.

As such, continued long-term demand for export metallurgical coal
is a key determinant of the sustainability of DBCT's capital
structure.

In contrast with thermal coal, which Moody's believes remains
subject to the structural challenges posed by the transition to
lower emissions generation, the prospects for metallurgical coal,
particularly the high quality coal produced in the Bowen basin,
remain solid.

Moody's believes that increased miner confidence is shown by
DBCT's successful recontracting of maturing contracts over the
past year, and the increased number of enquiries from shippers
for capacity for new production. The bulk of DBCT's tonnes are
shipped by mines owned by Glencore plc (Baa2 positive) and Anglo
American plc (Baa3 positive), thereby providing a source of
support.

That said, some of the enquiries for new tonnage are from unrated
or newer entrants that have been acquiring mines from established
mining houses in recent years,

Continued cash flows from DBCT's coal counterparties will ensure
the terminal can recover its operating costs and earn a return on
the regulated asset value as approved by the regulator.

Based on DBCT's 2017 access undertaking, the terminal can recover
lost revenue by raising its charges should its counterparties
either not renew, or reduce their contracted capacity on contract
renewal dates. Similarly, the terminal can also recover any
shortfall in revenue caused by an underutilization of contracted
capacity under the take-or-pay provisions embedded within its
contract with coal counterparties.

DBCT's ability to recover lost revenue from its coal
counterparties is a key underpin to its credit profile, as it
protects the terminal from a decline in demand for capacity or a
shortfall in actual export volumes which could result from a coal
market downturn or adverse weather.

DBCT's credit profile continues to benefit from the terminal's
operating track record, its strong competitive position within
the coal chain, as well as the current absence of a requirement
for a material expansion program with associated execution risk.

The terminal's credit profile is constrained by its high
financial leverage, particularly given its concentrated exposure
to the coal industry through its counterparties. Over the next
three years, Moody's expects DBCT's funds from operations
(FFO)/debt to remain between 5.5% and 7%, which should leave the
terminal with limited capacity to swiftly de-gear its business
absent a recapitalisation.

The rating could be upgraded to Baa3 if Moody's believes that
investments by coal producers in DBCT's service area will
underpin long term demand for DBCT's export capacity, subject to
DBCT's maintaining of a stable capital structure.

The ratings face limited likelihood of a downgrade, given the
positive outlook. That said, the rating outlook could face
negative pressure if DBCT's financial profile materially weakens,
and/or Moody's believes that: (1) DBCT is experiencing
difficulties in achieving socialization of lost revenue following
a material contract termination, (2) DBCT's strategic importance
to users declines, (3) DBCT's operating track record weakens,
particularly if such weakening has environmental implications,
and/or (4) if financial leverage -- as indicated by FFO/debt --
is likely to decline below 5% on a consistent basis.

The principal methodology used in these ratings was Generic
Project Finance published in April 2018.

Dalrymple Bay Coal Terminal, which has a coal handling capacity
of 85 million tonnes per annum, is situated at the Port of Hay
Point, 38 km south of Mackay in Queensland, adjacent to the Hay
Point Coal Terminal. This latter terminal is owned by the BHP
Billiton Limited (A3/P-2 positive) Mitsubishi Corporation (A2/P-1
stable) alliance.

The DBCT Group is owned by Brookfield Infrastructure Partners
(BIP), which is in turn 30% owned by Brookfield Asset Management
Inc. (BAM, Baa2 stable) and 70% by the public. BIP owns and
operates long-life assets in the utilities, transport, energy and
communications sectors across North and South America,
Australasia and Europe. It is a publicly-traded partnership which
is also managed by BAM.


FOODORA AUSTRALIA: Unable to Repay Australian Debts
---------------------------------------------------
David Chau at ABC News reports that Foodora Australia is pulling
out of Australia because it owes AUD28.3 million in debt -- not
to mention its two lawsuits and unpaid taxes.

Nearly all of it, however, was for "associated loans" (totalling
AUD28 million), which it needs to repay to its German parent
company Delivery Hero, according to ABC News.

ABC News says the food delivery company is unlikely to pay all
its Australian liabilities, including the wages of delivery
riders.

It was also revealed, at the first creditors' meeting on Aug. 29,
that Foodora owes more than AUD558,000 in payroll tax to Revenue
NSW, the report discloses.

The Australian Taxation Office is also chasing Foodora for unpaid
superannuation, penalties and interest, but has not finished
calculating how much it is owed yet, ABC News adds.

According to ABC News, Foodora went into administration on Aug.17
-- despite earlier claims it was "solvent" -- amid accusations
that it systematically exploits and underpays its delivery
riders.

"Here we have Delivery Hero making a claim of over AUD28 million
on its own company while it has been ripping off taxpayers and
riders with its exploitative business model," the report quotes
Transport Workers Union's national secretary Tony Sheldon as
saying.

ABC News notes that despite its legal problems, Foodora is still
trading in several countries including Austria, Canada, Finland,
Germany, Norway and Sweden.

But it also recently withdrew from the Netherlands, France and
Italy earlier in August.

Meanwhile, its German parent, Delivery Hero, continues to grow
its business across 40 countries around the world and is worth
EUR9.18 billion (AUD14.7 billion), the report says.

Simon Cathro of Worrells Solvency was appointed as administrator
of Foodora Australia on Aug. 17, 2018.


FOODORA AUSTRALIA: Workers' Right Legal Action Dropped
------------------------------------------------------
Australian Associated Press reports that the Australian federal
workplace watchdog has dropped legal proceedings against
collapsing delivery service Foodora, which had been accused of
mistreating employees.

But the union insists it will not let the company "off the hook
over ripping off its riders," AAP relays.

According to the report, the Fair Work Ombudsman took the food
delivery company to the Federal Court in June alleging two
Melbourne bike riders and a Sydney driver were classed as
"independent contractors" when they did the work of full-time
employees.

AAP relates that the ombudsman said Foodora "breached sham
contracting laws" and misled the workers about the nature of
their employment.

Another rider appealed to the Fair Work Commission saying he was
unfairly dismissed after speaking out over low pay and poor
conditions, the report relays.

Foodora in early August announced it was going into
administration and would cease operations in Australia by August
20, AAP recalls.

AAP says the ombudsman on Sept. 3 announced its case could not
continue while Foodora was in administration without approval
from the Federal Court or the administrator.

The ombudsman confirmed it would not seek to continue
proceedings, the report notes.

AAP adds that the Transport Workers Union last week said Foodora
was being pursued by Australian authorities for unpaid taxes.

The union on Sept. 3 vowed to continue fighting the unfair
dismissal case despite the ombudsman's "startling inaction".

"When riders stood up and challenged Foodora, the company decided
to avoid its responsibilities and leave Australia altogether,"
TWU national secretary Michael Kaine said in a statement.  "We
will not stand by and allow them to do this."

Simon Cathro of Worrells Solvency was appointed as administrator
of Foodora Australia on Aug. 17, 2018.


JOURNEY MANAGEMENT: First Creditors' Meeting Set for Sept. 11
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Journey
Management Services Pty Ltd will be held at the offices of Jirsch
Sutherland, Level 12, 460 Lonsdale Street, in Melbourne,
Victoria, on Sept. 11, 2018, at 10:30 a.m.

Glenn Anthony Crisp and Liam Bellamy of Jirsch Sutherland were
appointed as administrators of Journey Management on Aug. 30,
2018.


ONE KEY: First Creditors' Meeting Set for Sept. 12
--------------------------------------------------
A first meeting of the creditors in the proceedings of One Key
Workforce Pty Ltd will be held at the offices of Karstens
Brisbane, Level 24, 215 Adelaide Street, in Brisbane, Queensland,
on Sept. 12, 2018, at 2:30 p.m.

Justin Denis Walsh and Adam Nikitins of Ernst & Young were
appointed as administrators of One Key on Aug. 31, 2018.


PATRA TRUCK: First Creditors' Meeting Set for Sept. 13
------------------------------------------------------
A first meeting of the creditors in the proceedings of Patra
Truck Bodies Pty Ltd will be held at Suite 601B, Level 6, 91
Phillip Street, in Parramatta, NSW, on Sept. 13, 2018, at
10:00 a.m.

Aaron Kevin Lucan of Worrells was appointed as administrator of
Patra Truck on Sept. 3, 2018.


QUEENSLAND SCAFFOLDING: First Creditors' Meeting Set for Sept. 12
-----------------------------------------------------------------
A first meeting of the creditors in the proceedings of Queensland
Scaffolding Pty Ltd will be held at the offices of SV Partners,
22 Market Street, in Brisbane, Queensland, on Sept. 12, 2018, at
2:30 p.m.

Anne Meagher of SV Partners was appointed as administrator of
Queensland Scaffolding on Aug. 31, 2018.


UNITED SECURITY: First Creditors' Meeting Set for Sept. 12
----------------------------------------------------------
A first meeting of the creditors in the proceedings of United
Security Enterprises Pty Ltd will be held at Level 7, 151
Castlereagh Street, in Sydney, NSW, on Sept. 12, 2018, at
11:00 a.m.

Shumit Banerjee and Jason Lloyd Porter of SVP Partners were
appointed as administrators of United Security on Aug. 31, 2018.


VICAL N.S.W.: First Creditors' Meeting Set for Sept. 11
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Vical
N.S.W. Pty Ltd and Arsonello Pty Ltd will be held at Belconnen
Community Centre, Meeting Room 1, 26 Chandler Street, in
Belconnen, ACT, at Sept. 11, 2018, at 3:00 p.m.

George Georges and Ryan Eagle of Ferrier Hodgson were appointed
as administrators of Vical N.S.W. on Aug. 30, 2018.



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GUANGDONG HELENBERGH: Fitch Assigns B(EXP) Rating to Sr. Notes
--------------------------------------------------------------
Fitch Ratings has assigned China-based homebuilder Guangdong
Helenbergh Real Estate Group Co., Ltd.'s (Helenbergh; B+/Stable)
proposed US dollar senior notes an expected rating of 'B+(EXP)'
with a Recovery Rating of 'RR4'. The notes will be issued by
Assure Rise Investments Limited, a wholly owned subsidiary of
Helenbergh.

The notes are rated at the same level as Helenbergh's senior
unsecured rating as they represent direct, unconditional,
unsecured and unsubordinated obligations of the company. The
final rating of the proposed notes is contingent upon receipt of
documents conforming to information already received.

Helenbergh's ratings are supported by its geographically
diversified land bank across five regions in China, which
mitigates the land bank's weaker quality as more than 90% of the
area is in Tier 2 and 3 cities. Its contracted sales of over
CNY25 billion a year compare favourably with most 'B' rated peers
with CNY10 billion-15 billion in sales, but are small compared
with 'BB-' rated peers, which mostly have more than CNY30 billion
in contracted sales. Helenbergh's leverage (defined as net
debt/adjusted inventory) of 40%-45%, and EBITDA margin (excluding
capitalised interest in cost of goods sold) of about 20% reflect
a healthy financial profile that supports its 'B+' ratings.

KEY RATING DRIVERS

Locations Mitigate Lower Land Quality: Helenbergh had about 15
million sq m of land at end-2017, which was spread equally over
Guangdong province and four other regions. Helenbergh is
diversifying its footprint by adding land in Tier 3 cities in
northern China, such as Baoding and Langfang. Its geographical
diversification mitigates the company's higher exposure to lower-
tier cities, which is evident from its contracted average selling
price (ASP) of below CNY10,000 per sq m in 2017, compared with
CNY14,000-17,000 for most rated homebuilders. Fitch expects
Helenbergh's contracted sales to exceed CNY40 billion in 2018,
with Guangdong accounting for 40%-50% of total sales, followed by
western and eastern China.

Low Land Cost: The company has enough land for five years of
development activity. The company obtains land mainly through
acquisitions, public auctions and redevelopment of old city
districts. About half of its land bank acquired during 2014-2016
and a majority of its land bank purchased during 2017 came from
acquisitions, which allowed the company to obtain land at lower
costs than bidding in public auctions. The company also
redevelops old districts in cities, which allows it to obtain
land in good locations and at reasonable costs. It has agreed to
take part in two redevelopment projects in Langfang and Baoding.

Reasonable Profitability and Quick Churn: Helenbergh's EBITDA
margin was 24% in 2017 (after adding back capitalised interest
and excluding evaluation gains) despite the low ASP, thanks to
its low-cost land bank. Fitch expects the average cost of land
(including projects under planning) to account for about 20% of
residential ASP, which is reasonable and allows the company to
achieve an average EBITDA margin of 20%-25%. Fitch expects sales
churn, indicated by the ratio of contracted sales to total debt,
to remain above 1.2x, as the company's products are positioned in
the peripheries of Tier 1 and 2 cities, where demand is strong.

Sufficient Land Bank Allows Deleveraging: Helenbergh's leverage
of 40%-45% is in line with that of peers rated 'B+', which can be
explained by its prudent land-acquisition strategy and bigger
accounts payables-to-inventory ratio. Its land bank life of about
five years will allow the company to deleverage gradually as it
only needs to use about 30% of its contracted sales proceeds to
replenish its land bank to sustain its contracted sales growth.

DERIVATION SUMMARY

Helenbergh's land-bank quality is weaker than that of its 'B+'
rated peers, given its focus on Tier 2 and 3 cities with lower
contracted ASP than its peers. This is mitigated by the
sufficient regional diversification of its land bank, which spans
key regions in China, with about 30 projects under development.
Its sales churn of 1.25x at end-2017 is fast relative to 'B'
category peers. Its EBITDA margin is similar to that of peers as
its land cost is low relative to its ASP while its leverage is
comparable with similar-sized peers rated 'B+'.

Helenbergh's leverage is higher than that of China Aoyuan
Property Group Limited (BB-/Positive), which has similar
contracted sales scale and churn. Most peers rated 'BB-' have
higher EBITDA margins of 25%-30%, including KWG Property Holding
Limited (BB-/Stable), which has an EBITDA margin of over 30% due
to its high-quality land bank.

KEY ASSUMPTIONS

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

  - Consolidated contracted sales of CNY40 billion-60 billion
    a year in 2018-2020 (CNY25.7 billion in 2017)

  - Contracted ASP at CNY9,000-11,000/sq m in 2018-2020
    (CNY9,772.3 in 2017)

  - Annual land premium accounting for about 30%-40% of
    attributable contracted sales (30% in 2017)

  - EBITDA margin (before capitalised interest and after business
    tax) of 20%-25% in 2018-2020 (23.6% in 2017)

Recovery Rating assumptions:

  - Helenbergh would be liquidated in a bankruptcy because it is
    an asset-trading company

  - 10% administrative claims

  - The liquidation estimate reflects Fitch's view of the value
    of inventory and other assets that can be realised and
    distributed to creditors

  - Helenbergh has excess cash, which is derived after deducting
    three months of contracted sales from available cash; a 60%
    advance rate is used for the excess cash as it is assumed to
    be invested for land banking

  - Fitch applied a haircut of 30% on its receivables, 30% on
    adjusted inventory, and 40% on its investment properties

  - Based on its calculation of the adjusted liquidation value
    after administrative claims, Fitch estimates the recovery
    rate of the offshore senior unsecured debt to be 100%.
    Fitch has rated the senior unsecured rating with a Recovery
    Rating of 'RR4', as China falls into Group D of creditor
    friendliness and instrument ratings of issuers with assets
    in this group are subject to a soft cap at the level of the
    issuer's Issuer Default Rating under its Country-Specific
    Treatment of Recovery Ratings Criteria.

RATING SENSITIVITIES

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

  - Contracted sales/total debt sustained at 1.3x or above

  - Attributable contracted sales sustained at CNY30 billion
    or more

  - EBITDA margin (excluding capitalised interest) sustained at
    20% or above

  - Leverage (net debt/adjusted inventory) sustained below 40%

Developments That May, Individually or Collectively, Lead to
Negative Rating Action

  - Attributable contracted sales sustained below CNY15 billion

  - EBITDA margin (excluding capitalised interest) sustained
    below 15%

  - Net debt/adjusted inventory sustained above 50%

LIQUIDITY

Sufficient Liquidity: At end-2017, Helenbergh had cash of CNY10
billion, which is sufficient to cover its short-term debt of
CNY8.8 billion. The company plans to issue domestic and offshore
bonds to refinance its borrowings due in 2018.


HC GROUP: Moody's Lowers CFR to B3, Outlook Stable
--------------------------------------------------
Moody's Investors Service has downgraded to B3 from B2 the
corporate family rating of HC Group Inc. (HC).

The rating outlook is stable.

RATINGS RATIONALE

"The downgrade reflects our concern that the fast growth in HC's
principal-model transaction business will heighten risk and
reduce profit margins, which is a significant departure from our
earlier expectations," says Lina Choi, a Moody's Vice President
and Senior Credit Officer.

Prompted by fast development in online sourcing activities, HC's
principal-model transaction services segment grew rapidly to 81%
of total revenue in the six months ended June 30, 2018 from 38%
for the same period last year.

This segment mainly includes its business-to-business (B2B)
online sourcing platform and the financing services provided to
merchants. HC continues to operate an agency-model for its
information marketing business, which now comprises less than 20%
of total revenue.

In a principal-model, the operator of the platform takes on
inventory from suppliers and sells to its customers. Revenue from
this segment primarily represents merchandise sales, and is
recognized when the buyers pay fully for the merchandise. In an
agency model, the operator of the platform simply matches
suppliers and buyers and does not take on inventory risks.

In the first half of 2018, the transaction services segment
mainly relied on three sub-platforms focusing on chemical
products, cotton, and construction material -- all exposed to
commodity-related counterparty risks. Such a high reliance on
commodity-related industries adds volatility to HC's cash flow
generation ability, especially during industry down cycles.

"The company's much decreased level of profitability, weakened
EBITDA generation, and increased leverage have also reduced the
company's financial buffer for weathering potential market
volatility," adds Choi.

HC reported an EBITDA margin of 6.3% for the six months to June
30, 2018 compared to 19.5% in same period last year. The
significant decline in the EBITDA margin was driven by the change
in HC's business strategy to develop lower-margin transaction
services.

Total EBITDA, after adjusting for one-off fair-value gains,
decreased by around 9% to about RMB238 million in the first half
of 2018. This growth rate is much lower than its earlier
expectations, which had assumed a higher EBITDA contribution from
the agency-model information marketing business.

Moody's expects that HC will continue to grow its principal-model
transaction services business to expand its business scale. The
company believes it can raise profitability at a larger scale of
operation through improved bargaining power against merchants.

While high revenue growth will continue off a low base, HC's
adjusted EBITDA margin will be much lower around 6%-8% in the
next 12-18 months, driven by the fast growth of the lower-margin
transaction business. This compares with its earlier expectations
of adjusted EBITDA margins around 15%.

With lower margins and slower EBITDA growth, HC's adjusted
debt/EBITDA was around 3.7x for the 12 months to June 30 2018,
and Moody's expects it will rise to the 4.0x-4.2x range in the
next 12-18 months. Moody's expects that the company's debt level
will increase moderately to fund the fast growth of its
transaction services business, while its EBITDA growth will
flatten.

As the company is transitioning its business to a lower-margin
principal model relying primarily on commodity-related
industries, Moody's believes that the related heightened business
risks position the company more appropriately at the B3 rating
level.

HC's B3 rating continues to reflect its established position in
China's business-to-business eCommerce market and steady revenue
from its core platforms, including "hc360.com" and "zol.com.cn".
Its integrated full service model increases the stickiness of its
subscribers. The model also helps HC gather upstream and
downstream demand and supply information, and raise monetization
potential.

At the same time, the rating also reflects HC's modest size
relative to its industry peers, reduced financial buffer as
demonstrated by weakened profitability and increased leverage,
high working capital requirements, and uncertainty relating to
its business model transition.

HC's liquidity is weak. As of June 30, 2018, its cash and cash
equivalents of RMB402 million was insufficient to cover its
short-term debt of RMB895 million.

The stable rating outlook reflects Moody's expectation that HC
will: (1) maintain its market position as a leading B2B service
provider in China; (2) continue to grow its revenue scale and
generate stable cash flows; and (3) demonstrate prudent financial
management and to maintain its access to funding.

Upward ratings pressure could arise if HC: (1) demonstrates
sustainable revenue and EBITDA growth from its principal-model-
driven transaction business; (2) contains its exposure to the
financial, reputation and execution risks related to the finance
business; (3) deleverages and improves its debt maturity profile;
and (4) starts to generate positive free cash flow on a
consistent basis.

Credit metrics indicating a potential rating upgrade include the
following on a sustained basis: EBITDA margins above 10%-12%, and
adjusted debt/EBITDA - including debt from its finance unit -
below 3.0x-3.5x.

On the other hand, Moody's will likely downgrade the company's
ratings if HC:

(1) Fails to maintain a steady EBITDA trend, due to a
     substantial decline in its core business and market share,
     which could affect its cash flow generation;

(2) Experiences significant financial impairment or capital
     calls from its finance business;

(3) Engages in aggressive acquisitions that pressure its balance
     sheet liquidity or raise its overall risk profile; or

(4) Shows a deterioration in its profit margin and weakened
     access to funding, due to increased competition or poor
     working capital management.

Metrics that would point to a downgrade include the following on
a sustained basis: EBITDA margins decrease to below 5%, or
adjusted debt/EBITDA - including debt from its finance unit -
trends toward 5.0x, and the company shows negative cash flow from
operations, all on a consistent basis.

Established in 1992 and listed on the Hong Kong Stock Exchange in
2003, HC Group Inc. is one of the leading B2B eCommerce operators
in China. HC provides one-stop integrated B2B business solutions
and a supply and demand platform for SMEs.


HOPSON DEVELOPMENT: Fitch Assigns B+ IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings has assigned Hopson Development Holdings Limited a
Long-Term Foreign-Currency Issuer Default Rating (IDR) of 'B+'
with a Stable Outlook.

Hopson's rating is supported by the China-based company's high-
quality land bank and consistently moderate leverage. The growing
investment-property (IP) portfolio also supports Hopson's rating
and gives it an additional funding channel to expand its assets.
Hopson's rating is constrained by poor sales visibility as it
only has one year, 2018, in which contracted sales are likely to
grow. The company has maintained a low asset churn, measured by
contracted sales/gross debt, of 0.15x in 2017 and below 0.3x
since 2014. Hopson's sales have been low, averaging under CNY8.8
billion in the past five years, and it has a high level of short-
term debt maturity relative to available liquidity, which leaves
creditors with a lower margin of safety.

KEY RATING DRIVERS

Large Well-Located Land Bank: Fitch believes Hopson's good-
quality land bank will support the company's ability to meet its
higher sales target of CNY20 billion (HKD23 billion) in 2018 from
under CNY9.2 billion (HKD11.4 billion) in 2017. Hopson had 21.4
million sq m of residential land bank as at end-2017and a total
land bank of 29.3 million sq m, including its IP portfolio, out
of which 16.5 million sq m were in Beijing, Shanghai and
Guangzhou with 7.6 million sq m of development-property land in
the central locations of these cities.

Sales Flexibility: Hopson has balanced its centrally located
projects with very large projects that are less-well located and
six of these projects amounted to 56% of its total development-
property land bank. A mix of projects in prime locations and near
Tier 1 and 2 cities, as well as a large number of development
projects (73 at end-2017), allow the company the flexibility to
manage its sales pace.

Stable and Moderate Leverage: Fitch expects Hopson's financial
profile to see limited changes in 2018 in line with the company's
maintenance of moderate leverage, measured by adjusted net
debt/adjusted inventory, at just under 40% in the past five
years. Its financial policy is moderately aggressive as Hopson
has relied on debt-funded expansion in 2013 and 2017. However, on
other occasions between 2014 and 2016 the company cut net debt by
HKD5 billion and the increase in its IPs, by HKD6 billion to
HKD31 billion, was substantially funded by HKD12 billion in net
development-property liquidation.

Stability from Investment Properties: Hopson's IP gross floor
area (GFA) has grown by 81% between 2013 and 2017, supporting a
threefold increase in rental income. The company will have two
assets that generate over HKD500 million of annual rental income
following the opening of the Hopson One mall in Beijing.

Fitch expects the company's aggregate rental rate to reach HKD125
per sq m per month, comparable with China's largest IP company,
Dalian Wanda Commercial Management Group Co., Ltd. (BB+/Stable)
and other investment-grade peers with strong IP portfolios like
China Resources Land Ltd (BBB+/Stable), Longfor Properties Co.
Ltd. (BBB/Stable) and Red Star Macalline Group Corporation Ltd.
(BBB-/Stable). Fitch believes Hopson's IPs still have room for
positive rental reversion because of their growing maturity and
prime locations, and the company is also building more
properties.

Completed Properties Support Liquidity: Fitch estimates that
Hopson has a large stock of completed properties for sale with a
saleable value in excess of CNY50 billion while it is carried on
its balance sheet at HKD27 billion. its estimate is based on
current selling prices of similar housing projects. This will
support Hopson's liquidity needs and selling the properties can
substantially reduce its leverage since no further investment is
needed for these assets in their present state. This asset pool
acts as a strong financial buffer to support its current rating.

The sale of the assets is however up to management's decision to
cut back on the stock of completed properties as Hopson was
holding on to 1.2 million sq m in GFA of its stock between 2013
and 2017, which was larger than its average annual contracted
sales GFA of 0.7 million sq m over the same period.

Uncertain Cash Flow: Fitch has estimated that Hopson's IP roll-
out plan will require a large increase in capex to more than
double its historical level from 2019 and this will have to be
supported by more development-property sales. Hopson has not been
aggressive on sales of its development properties to fund its IP
expansion but changes to this practice will depend on the
management. Until 2017 it had yet to step up its sales to support
its IP business. Hopson's sales churn fell to 0.15x in 2017 from
0.4x in 2013.

Its contracted sales in the first seven months of 2018 increased
by 50% to CNY7.6 billion but it is not clear if Hopson can
quickly put in place the operational capacity to support
continuing sales growth. Fitch believes Hopson's future
contracted sales at levels lower than its target of CNY20 billion
in 2018 will cause its leverage to rise above 50% and weaken its
credit profile.

Shareholder Risk: Fitch believes Hopson has sufficient corporate
governance safeguards as a Hong Kong-listed company, evident from
its clean record on related-party transactions for the past five
years after checks from independent directors. Hopson's largest
transaction was the purchase of services from related parties and
the average value was less than 3% of its total cost of sales in
the past five years. Hopson's internal corporate governance is an
important safeguard as its sister companies such as Pearl River
Life Insurance Co., Ltd. and Guangdong Pearl River Investment
Holding are materially more leveraged than Hopson and may
potentially need support from the Chu family that owns 69% of
Hopson.

DERIVATION SUMMARY

Hopson's rating reflects its good-quality land bank and the
company's consistency in maintaining moderate leverage at less
than 40%. The expansion in its IP portfolio also supports
Hopson's rating and helps the company in gaining new funding
sources to increase its assets.

Hopson's credit profile remains weaker than 'BB-' rated
homebuilders given its poorer sales visibility. Hopson and KWG
Group Holdings Limited (BB-/Stable) have comparable asset-
portfolio quality although the latter has a smaller scale. They
also have similar leverage and recurring EBITDA/interest levels,
but Hopson's significantly slower sales churn and the lack of a
track record in generating high sales growth mean its financial
profile may face greater uncertainty amid the company's IP
business expansion. Hopson and Times China Holdings Limited (BB-
/Stable) have comparable leverage but the uncertainty of Hopson's
development-property sales plan is its main weakness. Hopson also
has a stronger asset portfolio, which will not benefit its credit
profile if not put into more effective use.

Hopson's IP portfolio is much larger and better located than that
of Hong Yang Group Company Limited (B/Positive) but comparable
with that of LVGEM (China) Real Estate Investment Company Limited
(B/Stable). Hopson's credit profile, relative to Hong Yang, is
weighed down by it poor asset churn and uncertain sales
visibility that leaves creditors with a lower margin of safety.
This is however sufficiently mitigated by Hopson's HKD80 billion
of unencumbered property assets. Hopson is also less leveraged
than both Hong Yang and LVGEM by a wide margin, although LVGEM
has a higher recurring EBITA/gross interest ratio.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within its Rating Case for the Issuer

  - 2018 sales in line with management forecast; 25% GFA growth
    and 10% average selling price growth after 2018

  - Sales collection rate of 75% in 2018 and 80%-85% thereafter

  - Rental rates averaging around 5% higher than 2018 between
    2019 and 2021

  - Average funding cost for new borrowings at 7%

  - Capex intensity averaging 25% between 2019 and 2021

  - Dividend payout ratio of 25%

RATING SENSITIVITIES

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

Fitch believes positive rating action is not likely in the next
24 months due to the lack of a track record on sustainable
contracted sales

Developments That May, Individually or Collectively, Lead to
Negative Rating Action

  - Net debt/adjusted inventory above 50% for a sustained period

  - Failure to grow contracted sales above 2018 level

  - Material increase in related-party asset transactions that
    do not significantly enhance Hopson's business or financial
    profile and are beyond the company's current business scope

LIQUIDITY

Tight Liquidity Profile: Hopson has a low cash balance of HKD5.3
billion and another HKD402 million in pledged cash. This is small
compared with short-term debt of HKD15.6 billion. Fitch expects a
small outflow in Hopson's cash flow from operations and a
negative HKD3 billion in free cash flow (FCF). Hopson will
therefore have to raise almost HKD20 billion in debt to fund its
FCF shortfall as well as to refinance its maturing debt this
year. The company raised CNY5.6 billion through the issuance of
commercial mortgage-backed securities in June 2018 and is
planning other asset-backed financing structures to support its
funding needs of another CNY5 billion to CNY10 billion.

Hopson also had HKD38 billion in unutilised banking facilities at
end-2017, although the amount dropped from HKD60 billion in 2016.
Hopson has sufficient banking facilities in 2018 to meet its
funding needs although its total banking facilities fell to HKD91
billion in 2017 from HKD105 billion a year earlier.


MAOYE INTL: Moody's Affirms B3 CFR & Alters Outlook to Positive
---------------------------------------------------------------
Moody's Investors Service has changed to positive from stable the
outlook on the corporate family rating of Maoye International
Holdings Ltd.

At the same time, Moody's has affirmed the B3 corporate family
rating of Maoye.

RATINGS RATIONALE

"The change in outlook to positive from stable reflects the
progress Maoye has made in improving its capital structure and
debt maturity profile, thus lowering its financial risk and
strengthening its position within its B3 rating," says Danny
Chan, a Moody's Analyst.

"The positive outlook also considers its expectation of sustained
EBITDA growth that will translate into steady operating cash flow
generation, which together with reduced CAPEX will result in cash
surplus and allow it to further deleverage over the next 12-18
months," adds Chan, also Moody's Lead Analyst for Maoye.

Maoye's leverage and maturity profile have improved over the past
18 months on the back of a more prudent financial strategy, as
the company works to enhance its financial strength through the
faster divesture of non-core assets, optimizing its debt
structure and expanding its financing channels.

In particular, the company's short-term to long-term borrowings
ratio improved to 0.79x in 2017 from 1.52x in 2015, and Moody's
expects this positive momentum will continue over the next 1-2
years. The company has announced a number of large financing
plans over the past 3 months, including the issuance of assets-
backed securities and exchangeable bond onshore, with the aim to
replace part of its short-term borrowings and further bring down
its short-term to long-term borrowings ratio.

Moody's expects Maoye's EBITDA will remain above RMB3 billion
over the next 1-2 years, a level similar to that in 2017,
supported by (1) stabilized retail operations, (2) increasing
rental income from lifestyle malls, and (3) sizable unrecognized
property revenue that it will likely book in 2H2018 and 2019. The
stable rental income and the contracted sales from property
development provide strong visibility over the company's earnings
over the next 1-2 years.

The rating and positive outlook incorporate Moody's expectation
that Maoye will maintain its operating cash flow above RMB2.0-2.5
billion in the next 2 years, with about RMB1.5-2.0 billion of
that amount from retail income and net property sales. As of June
2018, the company had a saleable property inventory of RMB7.1
billion.

And with most store-upgrade projects have been completed or close
to completion, Maoye's annual capex will decline to around
RMB800-600 million, supporting a free cash flow positive in the
next 2 years.

With more cash surplus for deleverage, Moody's expects Maoye's
adjusted debt to EBITDA will decline to 5.5x-6.0x over the next
12-18 months from 7.7x in 2017. In the first six months of 2018,
Maoye reduced its gross debt by RMB800 million using its cash
surplus.

Maoye's liquidity remains weak, although it has been improving
over the past 18 months. As of the end of June 2018, the
company's unpledged cash/short-term debt remained low at 18%. Its
RMB1.56 billion of unrestricted cash was insufficient to cover
its short-term borrowings of RMB8.6 billion.

That said, Moody's believes the company can manage its debt
refinancing risk, based on its strong banking relationships and
ample unrestricted equity instruments and property inventories of
RMB7.2 billion, which could offer some capacity for refinancing,
if needed. At June 31, 2018, Maoye had unencumbered assets of
RMB37.9 billion, representing 78% of the company's total assets.

Maoye's B3 CFR rating continues to consider the company's (1)
strong market position in its home base, as well as its self-
owned-store strategy and concessionaire business model; and (2)
ability to manage the challenges in China's evolving retail
market.

At the same time, the rating is constrained by Maoye's (1) track
record of growth through acquisitions; (2) exposure to property
development risk until it fully disposes of its inventory; and
(3) modest credit metrics.

The ratings could be upgraded if the company further improves its
liquidity and debt leverage. Indicators for an upgrade include:
(1) debt/EBITDA at 6.0x or below; and (2) EBITDA/interest above
2.5x, all on a sustained basis.

A rating downgrade is unlikely, given the positive rating
outlook.

Nevertheless, the rating could come under pressure if (1) Maoye
fails to maintain its business profile due to intensified market
competition that pressures its revenue and/or profitability, or
is unlikely to deleverage, or (2) its liquidity deteriorates so
that it is unable to refinance its short-term debt, or if there
is a material increases its short-term debt as it takes on
significant debt-funded acquisitions.

The principal methodology used in this rating was Retail Industry
published in May 2018.

Maoye International Holdings Ltd. is a leading department store
operator in China (A1 stable). Headquartered in Shenzhen,
Guangdong Province, the company has built a strong position in
its home market while strategically expanding elsewhere in the
country. At the end of 2017, the company had 60 stores in 19
cities across China's four main regions.


MEINAN ONEHEALTH: Fitch Assigns BB+ IDRs & Sr. Unsec. Rating
------------------------------------------------------------
Fitch Ratings has published China-based health check-up services
provider Meinian Onehealth Healthcare Holdings Co., Ltd's
(Meinian) Long-Term Foreign-Currency Issuer Default Rating (IDR)
of 'BB+' with a Stable Outlook and senior unsecured rating of
'BB+'.

Meinian's ratings are supported by the company's leadership in
China's private health check-up market, stable customer base,
visible expansion path and positive industry dynamics. Meinian's
ratings are constrained by its relatively low FFO fixed-charge
coverage and high FFO adjusted gross leverage, which are
mitigated by its flexible rental terms. Meinian's scale is
currently small and while Fitch expects the company to benefit
from rapid industry growth, its post-investment free cash flow
may remain persistently negative and the company face execution
risks in the expansion.

KEY RATING DRIVERS

Market Leader in China: Fitch thinks Meinian's market-leading
position and strong portfolio of corporate customers will be
maintained in the coming years. Meinian has been the largest
medical examination service provider in China in recent years and
solidified its market position with last year's acquisition of
Ciming Health Checkup Management Group Co., Ltd. (Ciming), which
was previously the third-largest provider. Fitch estimates
Meinian's market share by revenue to be over 20% and expects its
high brand recognition and comprehensive network of check-up
centres and service platforms to support its market leadership in
the short to medium term.

Improving Customer Mix: While corporate customers provide a
stable client base, Meinian is expanding among individual
customers. Individual customers are typically less price
sensitive than corporate customers and individuals accounted for
23% of Meinian's health check-up revenue in 2017, up from 15% in
2016. Not only would a higher proportion of individual customers
increase revenue, but profitability would also benefit with
higher customer traffic and lower seasonality of visits,
resulting in better operating leverage as fixed costs of the
medical centre, like staff and rental costs, should remain the
same in general.

Increasing Health Consciousness: Fitch believes Meinian will
benefit from the growth in the medical examination industry. The
overall industry is likely to grow rapidly with structural
support from rising health awareness, an ageing population and
higher disposable income. Fitch expects growth of private
providers like Meinian to outpace the overall industry's thanks
to demand for higher quality services than those from public
providers, increasing demand for early detection of diseases and
enhanced corporate employee benefits.

Expansion Strategy: Meinian plans to almost triple the number of
check-up centres in the next three years through acquisitions of
minority and controlling interests in these centres. By the end
of 2020, Meinian may have a network of around 1,100 centres,
which will consist of over 600 minority-interest centres and over
400 controlling-stake centres. Expansion through acquisitions of
both minority and controlling interests in centres allows Meinian
to increase its network faster with limited financial commitments
than its peers, which generally rely on investment in centres
that they own and operate.

Promising Growth Prospects: Fitch expects Meinian to continue to
see high revenue growth and gradual improvements in profitability
as it expands its network, attracts more individual customers and
provides more customised services with higher margins. Fitch
believes Meinian has adequate internal and external resources to
support its expansion in through acquisitions. In addition,
Meinian has established a modern and standardised service and
management system, which helps to ensure consistent service
quality at individual check-up centres.

Moderately Weak Financial Profile: Meinian's financial profile
may remain moderately weak in the coming years given the
company's ambitious expansion plan. Fitch expects capex and
acquisitions to increase substantially in 2018-2021 from 2017
levels. In addition, rental expenses may increase in line with
the expansion in its check-up service network. As a result,
Meinian's FFO adjusted net leverage may rise moderately in 2018-
2019 to 3.4x-3.5x from 3.1x in 2017. Its FFO fixed-charge
coverage ratio may drop slightly to 2.4x in 2018-2019 from 2.6x
in 2017.

DERIVATION SUMMARY

Meinian's clear market leadership in China's private health
check-up market and stable customer base generally compare
favourably against peers and balances its financial profile,
which is moderately weak in the 'BB' range. Although there are no
other rated peers specifically in this market, Fitch benchmarks
against retail companies that also use leased operating premises,
but recognises the private health check-up market in China is
more stable and has higher growth visibility.

Meinian presents a stronger business profile relative to China-
based 361 Degrees International Limited (BB/Stable) as Meinian is
the leader in its market while 361 Degrees ranks lower in the
sportswear market. Although the sportswear market is also likely
to grow in China, Fitch thinks the less fragmented health check-
up market and the strong base of corporate customers provides
Meinian with more stable traffic and growth prospects. Meinian's
stronger business profile justifies a rating above 361 Degrees
despite a moderately weak financial profile due to rental
expenses forming a big share of costs.

Meinian's credit profile is more comparable to those of global
retail issuers, such as Tesco PLC (BB+/Stable) as rental expenses
are a large part of costs. Compared to Tesco, Meinian has a
smaller operation scale in terms of EBITDA size, but Tesco faces
challenges in its core UK market, including the still-uncertain
impact of Brexit on consumer behaviour in the medium term. In
contrast, Meinian enjoys a leading market position, good growth
potential and positive industry dynamics. Meinian also has a
moderately stronger financial profile with better margins, lower
leverage and slightly higher coverage, which Fitch believes
supports its rating parity with Tesco.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within its Rating Case for the Issuer

  - Average revenue growth of over 30% in 2018-2021.

  - EBITDA margin of 22%-23% in 2018-2021.

  - Rental expense to revenue ratio of 9%-10% in 2018-2021.

  - Capex of CNY1.4 billion-1.9 billion in 2018-2021 (including
    initial minority investments in new medical centres).

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action:

  - Greater operating scale coupled with sustained neutral or
    positive post-investment free cash flow.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action:

  - Significant loss of market share in health check-up services.

  - FFO adjusted gross leverage sustained above 4.5x (2017:
    4.5x).

  - FFO fixed charge coverage sustained below 2.2x (2017: 2.6x).

LIQUIDITY

Adequate Liquidity: Meinian's debt maturity profile is dependent
upon short-term financing (representing over 60% of total debt)
but its liquidity is sufficient to meet its obligations. Short-
term debt of almost CNY2 billion is well covered by CNY2.4
billion of available cash and around CNY1.9 billion of unutilised
credit facilities, which include CNY0.9 billion maturing by the
end of 2018.

FULL LIST OF RATING ACTIONS

Meinian Onehealth Healthcare Holdings Co., Ltd

  - Long-Term Foreign-Currency Issuer Default Rating (IDR)
    published at 'BB+'; Outlook Stable

  - Foreign-currency senior unsecured rating published at 'BB+'


MEINIAN ONEHEALTH: Moody's Assigns Ba2 CFR, Outlook Stable
----------------------------------------------------------
Moody's Investors Service has assigned Meinian Onehealth
Healthcare Holdings Co., Ltd. a first-time Ba2 corporate family
rating.

The rating outlook is stable.

RATINGS RATIONALE

"Meinian Onehealth's Ba2 corporate family rating reflects the
company's leading position in China's private medical examination
sector and exposure to the country's growing preventive
healthcare industry," says Gerwin Ho, a Moody's Vice President
and Senior Credit Officer.

Meinian Onehealth has established a leading position in China's
private medical examination sector, supported by its long
operating history. It was formed in 2011 from the merger of two
private medical examination operators that were formed in 2004
and 2006 respectively.

Meinian Onehealth's leading position is also supported by the
company's strategy of growing nationally in China and building
its network in less-developed tier-three and tier-four cities in
addition to developed tier-one and tier-two cities. It has grown
its network by investing in medical centers in multiple steps and
acquiring competing private medical examination network
operators.

Its extensive geographical coverage and long operating track
record help it to establish and maintain long-term relationships
with its corporate customers, which include multinational
corporations, private firms, government agencies and state-owned
enterprises.

Corporate customers made up 75-80% of its revenues in 2017, and
provide a stable and steady source of revenue.

In addition, Meinian Onehealth benefits from its exposure to
China's preventive healthcare industry, which will likely grow
over the next 3-5 years, driven by the rising disposable income
of Chinese consumers, as well as these same consumers' increasing
health awareness, the rising prevalence of chronic diseases and
the government's support of preventive healthcare.

Supported by the growth in China's preventive healthcare
industry, its leading market position, a rise in service volumes
and average revenue per account, Moody's expects that Meinian
Onehealth's revenue will grow about 30% over the next 12 months
versus the level in the last 12 months ended June 2018, when its
revenue reached RMB7.5 billion.

The likely rise in service volumes will in turn be supported by
the increased utilization of medical centers and the expansion of
the company's medical center network. Average revenue per account
is also expected to rise due to the expansion and upgrading of
its service offering.

Moody's expects Meinian Onehealth's debt leverage - as measured
by debt/EBITDA - to decline to about 3.0x over the next 12 months
from 3.9x in the 12 months ended June 2018, as the company grows
its EBITDA mainly through expanding its medical center network
and moderates its debt level. This level of leverage positions
the company at the Ba2 rating level.

The company faces some seasonality in its cashflows, with cash
flows and customer demand weaker in the first half of the year
due to the New Year and Chinese New Year holidays, and stronger
in the second half of the year as corporate demand picks up.

Nonetheless, Moody's expects that Meinian Onehealth's adjusted
EBITA margin will remain at about 18% over the next 12 months,
driven by its favorable cost structure, a result in turn of its
leading market position and operating scale, ongoing utilization
improvement at its newer medical centers, and growth in average
revenue per account.

"However, Meinian Onehealth's Ba2 rating is constrained by its
exposure to integration and execution risks, which stem from its
strategy of growing through multiple-step investments and
acquisitions, and exposure to regulatory risks," adds Ho, also
the Lead Analyst for Meinian Onehealth.

Meinian Onehealth grew its number of consolidated medical centers
to 208 at the end of 2017 from 107 at the end of 2015. Its
network expansion reflects multiple-step investments in new
medical centers and acquisitions, including raising its stake in
its leading competitor, Ciming Checkup, to 100% in 2017.

Moody's expects the company to continue to grow its medical
center network in the next 12 months, mainly via investing in
minority stakes in new medical centers and raising its stakes in
medical centers in which it currently has minority stakes and
consolidating them.

Meinian Onehealth's strategy of growing through multiple-step
investments and acquisitions also exposes the company to
execution and integration risks.

Its rating also factors in regulatory risk related to healthcare
services. For example, on August 6, the company announced adverse
findings from health authorities regarding its medical center in
Guangzhou, and has since taken measures to address the concerns.
Moody's expects the company will maintain robust in implementing
internal controls to address regulatory risks.

Meinian Onehealth's liquidity position is weak. Its cash of
RMB1.5 billion at the end of June 2018, combined with operating
cash flow of around RMB1.5 billion in the next 12 months is
insufficient to cover its short-term debt of RMB2.9 billion and
its planned investments.

However, the company has flexibility in its investment activities
to maintain its liquidity. Moody's expects the company will be
able to refinance its short-term funding, given its profitable
operations and strong market position.

Moody's further expects the company will improve its capital
structure over the next 6 to 12 months to reduce its reliance on
short-term borrowings, the inability of which will pressure its
rating.

The stable rating outlook reflects Moody's expectation that
Meinian Onehealth will: (1) maintain a leading position in
China's private medical examination sector; (2) continue to grow
its revenue and maintain its profitability levels; and (3)
demonstrate prudent financial management in its investments and
reduce its reliance on short term borrowings.

Upward rating pressure could arise, if Meinian Onehealth: (1)
expands its revenue scale and maintains its market position; (2)
improves its profitability and achieves EBITA margins above 20%
on a sustained basis; and (3) adopts a prudent financial policy,
as characterized by low leverage and adequate liquidity, such
that its debt/EBITDA falls below 2x and cash/short-term debt
remains above 100% on a sustained basis.

Downward rating pressure could emerge if: (1) Meinian Onehealth
exhibits a weakening in its sales and market position; (2) its
profitability weakens, with an EBITA margin below 15% on a
sustained basis; or (3) its liquidity fails to improve or credit
profile deteriorates, such that adjusted debt/EBITDA exceeds
3.5x-4.0x on a sustained basis.

Meinian Onehealth Healthcare Holdings Co., Ltd., headquartered in
Shanghai, is a leading Chinese preventive healthcare solutions
provider that offers medical examinations and other services. As
of December 31, 2017, its number of consolidated medical centers
reached 208.

Meinian Onehealth listed on the Shenzhen Stock Exchange in 2015.


TONGCHUANGJIUDING INVESTMENT: S&P Affirms BB/B ICRs, Outlook Dev.
-----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' long-term and 'B' short-term
issuer credit ratings on Tongchuangjiuding Investment Management
Group Co. Ltd. (Jiuding Group). At the same time, S&P removed the
ratings from CreditWatch with developing implications, where it
had placed them on March 16, 2018. The outlook on Jiuding Group
is developing.

S&P also affirmed its 'BB' long-term issue rating on the senior
unsecured notes that Jiuding Group Finance Co. Ltd. issued and
resolved the CreditWatch with developing implications on these
issues. The issuer is incorporated in the British Virgin Islands
and is ultimately wholly owned by Jiuding Group.

The actions reflect a potential improvement in Jiuding Group's
financial metrics and, on the other hand, the negative
implications from the ongoing China Securities Regulatory
Commission (CSRC) investigations that could impact its business
profile in the longer term.

Jiuzhou Securities Co. Ltd. (JZ Securities), the securities arm
of Jiuding Group, has proposed issuing new shares to a strategic
investor who intends to take the controlling stake. S&P expect
the overall impact of the proposed ownership change in the
securities arm to be positive for Jiuding Group's credit profile,
as the group is likely to use any proceeds from the deal to pay
down outstanding debt.

The positive aspect of the developing outlook reflects this
potential improvement in Jiuding Group's financial metrics. S&P
said, "We also consider that some uncertainties remain over
regulatory approval of this deal. Thus, we have not factored this
into our base-case forecast over the outlook horizon of 12
months."

On the other hand, Jiuding Group has been under investigation by
the CSRC regarding alleged violations of Chinese securities law
and regulations. The negative aspect of the developing outlook
reflects the potential adverse impact of this investigation for
Jiuding Group's business over the next 12 months, which includes
a potentially prolonged approval for the JZ Securities ownership
changes.

S&P said, "While the above scenarios reflect differing directions
in the overall credit profile of the Jiuding Group, our base-case
expectations over the next year reflect the group's more
conservative growth model, as it aims for a healthier level of
financial leverage to alleviate debt servicing pressures from
intensive borrowing over the past several years. We note the
group has reduced its interest bearing liabilities by 16% in the
first six months of this year.

"However, our base-case expectations do not contain further
improvement in Jiuding Group's financial leverage. In our view,
cash inflow, which the group could use to pay down debt, relies
heavily on gains from the company's financial investments. Given
current market conditions that have seen the implied returns on
financial investments drop and delays in the exits of private
equity (PE) projects, we believe the investment performance of
Jiuding Group is likely to be muted in the next 12 months."

PE asset management and mutual funds dominate Jiuding Group's
non-regulated business segment. The company's PE-dominated asset
management business had RMB 33.9 billion in assets under
management (AUM) as of end-2017, equivalent to an increase of 8%
from the previous year; there was a slight decrease in the
internal rate of return on harvested projects to 34.8% from
35.7%. The group saw similar steady growth in the mutual fund
segment, where AUM increased by about 21% year on year to RMB14.4
billion. As a result, AUM fee income grew 28.9% year on year to
RMB452.5 million in 2017.

S&P said, "Our ratings on Jiuding Group take into account the
group's nonregulated business segment, the stronger credit
profile of the life insurance operations through FTLife in Hong
Kong, and the slightly weaker credit profile of the brokerage
arm, JZ Securities Co. Ltd., in China's fragmented brokerage
industry.

"We derive the group credit profile (GCP) based on an equity
weighting of these three key business segments. In our view, the
equity approach better reflects the capital-intensive nature of
Jiuding's insurance, securities, and PE-related investments.
Since its inception in 2007, Jiuding Group has rapidly grown and
transformed itself from a PE investment manager into a financial
services conglomerate with a three-pronged business strategy.

"We equalize our ratings on Jiuding Group, the holding company,
with the unsupported GCP, considering the significant capital
allocation and revenue contribution from the group's nonregulated
businesses, and sufficient liquidity at the holding company.
However, any changes to current capital allocation, or a decline
of importance in the company's nonregulated business may change
our view."

The outlook is developing, reflecting the potential improvement
in Jiuding Group's financial metrics through proposed ownership
changes of its securities subsidiary and, on the other hand, the
potential adverse impact of the CSRC investigation on Jiuding
Group's business profile.

S&P said, "We could lower the ratings if: (1) the result of the
CSRC investigation has a worse-than-expected adverse impact on
Jiuding Group's business; (2) the company fails to control
financial leverage at its nonregulated segments; (3) FTLife's
credit profile weakens; or (4) a decline in importance or
contribution from the nonregulated business adversely affects the
holding company's liquidity or there are perceived barriers in
capital fungibility among nonregulated entities.

"We could upgrade Jiuding Group if the group manages to
significantly and sustainably lower its financial leverage at its
nonregulated segments without diminishing overall profitability
or significantly diluting its ownership in FTLife."



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


NOBLE GROUP: Moody's Raises CFR to Caa1, Outlook Stable
-------------------------------------------------------
Moody's Investors Service has upgraded Noble Group Limited's
corporate family rating to Caa1 from Caa3.

At the same time, Moody's has affirmed Noble's senior unsecured
ratings at Ca, and the rating on its senior unsecured medium-term
note (MTN) program at (P)Ca. The company is in default on its
existing debt obligations.

The ratings outlook is stable.

RATINGS RATIONALE

"The upgrade of Noble's CFR reflects its expectation that the
company's capital structure and liquidity will improve, following
its restructuring, which was approved by shareholders earlier
this week," says Gloria Tsuen, a Moody's Vice President and
Senior Analyst.

"Moody's expects that the restructuring will be completed by the
end of this year," adds Tsuen.

Under the restructuring, which has also received the approval of
more than 86% of the company's debtholders, exceeding the
required 75%, Noble's senior debt will be reduced to $1.7 billion
from $3.4 billion. Noble's reported debt/capitalization at
March 31, 2018 would total 77% pro forma for the restructuring
compared with 129% at the end of 2017.

The new $1.7 billion bonds will have maturities ranging from 3.5-
7.0 years, and the certain pay-in-kind interest payment options
provide some cash buffer to the company from interest expenses.

In addition, Noble will have a three-year $800 million trade
finance and hedging facility to support its core trading
operations in commodities, including energy coal, carbon steel
materials, metal, freight, liquefied natural gas, and Asian oil
liquids. The restructuring plan is subject to court approvals.

Noble had $441 million in cash, excluding balances with futures
brokers and a securities agent, at June 30, 2018. After the
restructuring, its short-term debt will be mainly comprised of
working capital funding, and Moody's expects its liquidity will
be sufficient for its operations for the next 12-18 months.

Noble's Caa1 CFR reflects the high level of uncertainty
surrounding the company's ability to turn around its operations
and return to profitability and positive cash flow generation,
given the challenging operating environment and Noble's weakened
business profile following prolonged liquidity pressure and the
disposal of its major businesses.

The company's operating performance has been weak, with a $152
million loss in operating income from supply chains in 2017
(excluding discontinued operations and exceptional items), and
negative reported operating cash flow every year since 2014.

In 1H 2018, Noble's operating profit from supply chains improved
to $91 million when adjusted for non-cash reserves. Its reported
operating cash flow remained negative at $188 million, although
cash flows from operating activities would be positive excluding
restructuring expenses and a cash collateral for trade finance.

While the commodity markets improved in 1H 2018, Noble's
performance continued to be hurt by constraints on liquidity, the
availability of trade finance to support its operations, and
costs related to implementing the restructuring.

The Ca ratings on Noble's senior unsecured notes reflect the
default on these obligations and an expected high economic loss
compared with the original payment promises.

The stable ratings outlook reflects Moody's expectation that the
restructuring will be completed successfully and the company will
start narrowing its losses and operating cash outflow over the
next 12-18 months.

Noble's ratings could be upgraded if the company: (1) turns
around it operations; and (2) improves its liquidity position
through growing its cash balance.

Key credit metrics that Moody's would consider for an upgrade
include: (1) a positive operating margin and operating cash flow;
and (2) adjusted debt/book capitalization below 75%.

Downward ratings pressure could re-emerge if the company's
liquidity weakens, or if it reports negative EBITDA or operating
cash flow on a sustained basis.

The principal methodology used in these ratings was Trading
Companies published in June 2016.

Noble Group Limited is a manager of global supply chains for
physical commodities. The company's activities across these
chains include the sourcing, storage, processing, transportation,
and distribution of various commodity products.



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


BABASAHEB BAPUSAHEB: CARE Lowers Rating on INR6cr Loan to B
-----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Babasaheb Bapusaheb Gunjate (BBG), as:

                    Amount
   Facilities     (INR crore)    Ratings
   ----------     -----------    -------
   Long term Bank      6.00      CARE B; Issuer not cooperating;
   Facilities                    Revised from CARE B+; Stable;
                                 on the basis of best available
                                 information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from BBG to monitor the rating
vide e-mail communications/letters dated July 11, 2018, August 8,
2018, August 16, 2018, August 20, 2018 and numerous phone calls.
However, despite CARE's repeated requests, the firm has not
provided the requisite information for monitoring the rating. In
line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the publicly available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating on BBG's bank facilities will now be denoted
as CARE B; ISSUER NOT COOPERATING.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.

The rating has been revised on account of non availability of
information. Further, the rating takes into account small
scale of operations with low capitalization, moderate capital
structure and debt coverage indicators, working capital
intensive nature of operation, high competitive intensity in the
civil construction segment and constitution of the entity
as proprietor firm. The above weaknesses are partially offset by
long track record of operations with experienced and qualified
proprietor, established relationship with government customers
and moderate order book position and fluctuating yet moderate
profit margin.

Detailed Description of Key Rating Drivers

At the time of last rating on October 5, 2017, the following were
the rating strengths and weaknesses.

Key rating Weakness

Small scale of operations: BBG's scale of operation grew at
Cumulative Annual Growth Rate (CAGR) of 32.95% during the period
FY15-FY17 owing to higher number of contracts being executed,
established relationship and repetitive orders from clients.
However, the scale of operation remained small with TOI of
INR20.49 crore and PAT of INR0.60 crore in FY17. Tangible net-
worth of BBG stood at INR4.17 crore as on March 31, 2017, low
net-worth base restricts the ability of the firm to execute large
size contracts.

Moderate capital structure and debt coverage indicators: The
firm's capital structure stood moderate owing to low net worth
base and higher dependence on external funds to support the
business requirement. Further, debt service coverage indicators
of the firm stood moderate despite high debt levels owing to
moderate profitability.

Working capital intensive nature of operation: The liquidity
position of the entity stood weak marked by low current ratio and
quick ratio and high utilization of working capital limits to
support the operations.

High competitive intensity in the civil construction segment: The
construction industry is highly fragmented in nature with
presence of large number of unorganized players and a few large
organized players which coupled with the tender driven nature of
construction contracts poses huge competition and puts pressure
on the profitability margins of the players. Further, as the firm
participates in tenders invited by government departments, high
competition and lower bargaining power restricts its
profitability margins.

Constitution of the entity as proprietor firm with inherent risk
of withdrawal of capital: Constitution as a proprietor firm has
the inherent risk of possibility of withdrawal of the capital at
the time of personal contingency which can adversely affect its
capital structure.

Key rating Strengths

Experienced and qualified proprietor and long track record of
operations: Mr. Babasaheb Bapusaheb Gunjate, proprietor, looks
after overall affairs of the firm. He has more than two decades
of experience in the civil construction industry. With long-
standing experience and in-depth knowledge in civil construction
industry of proprietor has benefited the firm and has able to
established good relationship with government departments and
other private players.

Established relationship with government customers and Moderate
order book position: BBG is an 'A' class approved contractor with
Public Works Department (PWD) of Maharashtra and due to
established relationship, BBG has been receiving repetitive
orders from its clients. As on August 31, 2017, BBG has an
outstanding order book position of INR13.08 crore with four
projects in hand reflecting moderate order book position.

Fluctuating yet moderate profit margin: Despite continuous growth
in TOI, the profitability margins of BBG has shown declining
trend during the period FY15-17 on account of increase in the
prices of raw material coupled with intense competition from
large number of registered contractors, leading to aggressive
biddings.

Sangali (Maharashtra) based Babasaheb Bapusaheb Gunjate (BBG) was
formed as a proprietorship concern in 1995 by Mr. Babasaheb
Bapusaheb Gunjate. BBG is registered Class-I (A) approved
contractor with PWD Maharashtra. The firm is engaged in execution
of civil construction projects which involve road work, deep
excavation, bridges, hard rock cuttings, blasting operations and
industrial building (civil work) and various other infrastructure
jobs for both private as well as government departments whereby
it gets orders through bidding and tendering process. The firm
also executes projects as sub-contractor for government projects
which are obtained through private corporates.


BAJRANG AGRO: CARE Assigns B+ Rating to INR6.59cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Bajrang Agro Industries (BAI), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities            6.59       CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of BAI is constrained
on account of risk associated with stabilisation of operations,
susceptibility of margins to fluctuations in cotton prices, its
presence in fragmented industry with susceptibility to government
regulations and the partnership nature of constitution.

The rating, however, draws support from the experience of the
partners and location advantage with respect to proximity to its
raw material.

The ability of the firm to stabilize its operations and achieve
the desired sales and profit along with shielding its margin from
susceptibility of raw material prices and efficiently managing
its working capital requirement remain the key rating
sensitivity.

Detailed description of the key rating drivers

Key Rating Weaknesses

Project stabilization risk: The entity has recently in February
2018 has commenced its operations and has registered a turnover
of INR7.20 crore in FY18. The stabilization of the said cap-ex
will be critical for the overall financial risk profile of the
entity.

Susceptibility to adverse changes in government regulations and
climatic condition: The price of raw cotton is highly volatile in
nature owing to its seasonal nature and the price is regulated
through function of Minimum Support Price (MSP) by the government
along with export of cotton. Hence, any adverse change in
government policy and climatic condition may negatively impact
the prices of raw cotton in domestic market and could result in
lower realizations and profit for BAI.

Presence in seasonal and fragmented industry: Operation of cotton
business is highly seasonal in nature, as the sowing season is
from March to July and the harvesting season is spread from
November to February. Furthermore, the cotton industry is highly
fragmented with large number of players operating in the
unorganized sector. Hence, BAI faces stiff competition from other
players operating in the same industry, which further result in
its low bargaining power against its customers.

Partnership nature of constitution: Being partnership nature of
constitution, the firm is exposed to the risk of withdrawal of
capital due to personal exigencies, dissolution of firm due to
retirement or death of promoter and restricted financial
flexibility due to inability to explore cheaper sources of
finance leading to limited growth potential.

Key Rating Strengths

Experienced partners: The entity is managed by Mrs. Vaishali
Kharse and Mr. Ishwar Kharse having an experience of three years
in the cotton ginning business which aids in smooth operations of
the entity. Prior to this, Mr. Ishwar had an experience in
construction industry. The partners look after the day to day
affairs of the business with adequate support from a team of
experienced personnel.

Location advantage emanating from proximity to raw material: The
manufacturing facility of the firm is located in the Vidarbha
region of Maharashtra. Out of the total production of
Maharashtra, 65% is contributed by Vidarbha region. Hence, raw
material is available in adequate quantity. Furthermore, the
presence of BAI in cotton producing region also fetches a
location advantage of lower logistics expenditure. Moreover,
there is robust demand of cotton bales and cotton seeds in the
region due to presence of spinning mills in Nagpur.

Wardha (Maharashtra) based BAI, a partnership firm was
established on November 26, 2015 and was promoted by Mrs.
Vaishali Kharse and Mr. Ishwar Kharse. The firm commenced its
operations on February 2018 and is engaged in the business of
cotton ginning and pressing at its processing facility located at
Wardha, Maharashtra, having an installed capacity of 900 quintals
per day.


BISHNUPRIYA FOOD: CARE Lowers Rating on INR14.76cr Loan to B
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Bishnupriya Food Industries Private Limited (BFIPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long term Bank       14.76       CARE B; Stable; ISSUER NOT
   Facilities                       COOPERATING Revised from
                                    CARE B+; Stable

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from BFIPL to monitor the
ratings vide email communications/ letters dated July 12, 2018,
July 20, 2018, July 31, 2018, August 6, 2018 and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the requiste information for monitoring the rating.
In the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines CARE's rating on BFIPL's bank
facilities will now be denoted as CARE B/A4; Stable; ISSUER NOT
COOPERATING.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.

Detailed description of the key rating drivers

The rating assigned to Bishnupriya Food Industries Private
Limited is constrained by volatile agro-commodity (flour) prices
with linkages to vagaries of the monsoon and regulated nature of
the industry, Intensely competitive nature of the industry with
presence of many unorganized The rating. However, it derives
strength from its experienced promoters and high growth prospects
of the industry.

Going forward, the company's ability to timely completion of the
project without any cost & time overrun and achieve the projected
scale of operations and profitability as envisaged and manage
working capital shall be the key rating sensitivities.

Key Rating Strengths

Experienced promoters: Mr. Sunil Chowdhury (aged 46 years) has
over two decades of experience in different business like food
supply chain with Integrated Child Development Services (ICDS
Dept), liquor business and bar cum restaurant business. Apart
from that, the other promoter Mr. Abdul Kader (aged 41 years) has
over a decade of experience in installation of different
electrical &
civil contractor business. Both of them look after the overall
management of the company, with adequate support from a team of
experienced personnel.

High growth prospects of the industry: Wheat based products, viz.
Maida, Suji and Atta have large consumption across the country in
the form of bakery products, cakes, biscuits and different types
of food dishes in home and restaurants. The demand has been
driven by the rapidly changing food habits of the average Indian
consumer, dictated by the lifestyle changes in the urban and
semiurban regions of the country.

Key Rating Weaknesses

Volatile agro-commodity (flour) prices with linkages to vagaries
of the monsoon and regulated nature of the industry BPFIPL is
proposed to primarily engage in the processing of wheat products
under its roller mills. Wheat being an agricultural produce and
staple food, its price is subject to intervention by the
government. In the past, the prices of wheat have remained
volatile mainly on account of the government policies in respect
of Minimum Support Price (MSP) & controls on its exports. The MSP
of wheat for 2018-19 is INR1750/quintal increased from
INR1625/quintal in 2017-18. Further to be noted, the prices of
wheat are also sensitive to seasonality, which is highly
dependent on monsoon. Any volatility in the wheat prices will
have an adverse impact on the performance of the flour mill.

Intensely competitive nature of the industry with presence of
many unorganized players: Flour milling industry is highly
fragmented and competitive due to presence of many players
operating in this sector owing to its low entry barriers, due to
low capital and technological requirements. West Bengal and
nearby states are a
major wheat growing area with many flour mills operating in the
area. High competition restricts the pricing flexibility of the
industry participants and has a negative bearing on the
profitability.

Bishnupriya Food Industries Private Limited (BPFIPL) was
incorporated as a Private Limited Company on January 11, 2017.
The company was engaged in setting up of a food processing unit
in Murshidabad, West Bengal with a proposed installed capacity of
200 tons per day. The company proposed to manufacture different
flour qualities like "Atta", "Maida", "bran" and "Suzi"etc.
BPFIPL proposes to procure wheat from wholesalers and commission
agents present in local grain markets and sell its products to
wholesale traders in the nearby states like West Bengal, Bihar,
and Orissa. Mr. Sunil Chowdhury, having over two decades of
experience in food chain, liquor and restaurant business along
with Mr. Abdul Kader, having a decade of experience in electrical
& civil contractor business expected to look after overall
management of the company.


C. DOCTOR: CARE Reaffirms B Rating on INR1.75cr LT Loan
-------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
C. Doctor India Private Limited (CDIPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long term/Short       2.50       CARE B; Stable/CARE A4
   term Bank                        Reaffirmed
   Facilities


   Long term Bank        1.75       CARE B; Stable Reaffirmed
   Facilities

   Short-term Bank       1.50       CARE A4 Reaffirmed
   Facilities

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of CDIPL are
constrained on account of decline in total operating income
(TOI), profitability and cash accruals. The ratings are further
constrained on account of its moderate debt coverage indicators,
moderate liquidity position, susceptibility of operating margins
to volatility in raw material prices and forex rates coupled with
tender-driven nature of business for few contracts.

The ratings, however, derives strength from experienced promoters
with established track record of operations and comfortable
capital structure.

The ability of CDIPL to increase its scale of operations and
improve its overall financial risk profile by improving its
profit margins, capital structure and debt coverage indicators
coupled with efficient working capital management are the key
rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Decline in scale of operations, profitability and cash accruals:
During FY18 (Prov.), CDIPL's TOI declined by 11.14% to INR12.05
crore due to moderate order book position and lower order
execution and PBILDT margin declined by 506 bps to INR1.48 crore
on account of higher cost of raw material. Further, cash accruals
reduced by 30% y-o-y and remained modest at INR0.81 crore.

Moderate debt coverage indicators and moderate liquidity
position: As on March 31, 2018 (Prov.), debt coverage Indicators
remained moderate as marked by TDGCA of 4.14x (4.40x as on
March 31, 2017) and during FY18 (Prov.) Interest coverage ratio
remained 2.14x as against 2.38x in FY17. Liquidity position
remained moderate as marked by current ratio of 0.90 times (0.90
times as on March 31, 2017) along with increased operating cycle
to 78 days during FY18. Further, average working capital
utilization remained 90% for trailing 12-month period ended June
2018.

Susceptibility of operating margins to volatility in raw material
prices and foreign exchange rates along with tender driven nature
of business for few contracts: The prices of primary raw
materials, i.e. steel sheets, plates and tubes is fluctuating in
nature, while the company also exports its finished goods to a
few countries which affects the margins of the company. Also, the
tender-driven contracts are awarded under a bidding process
wherein, the lowest bidder gets the work, which might further put
pressure on the margins of CDIPL.

Key Rating Strengths

Experienced promoters with established track record of
operations: While CDIPL was incorporated in 1958; the promoters
of CDIPL on an average have an experience of more than 2 decades
in the same line of business.

Comfortable capital structure: The capital structure has improved
and remained comfortable as marked by an overall gearing ratio at
0.53x as on March 31, 2018 (Prov.) as against 0.86x as on
March 31, 2017 on account of timely repayment of term loan, lower
working capital borrowings as on balance sheet date and repayment
of unsecured loan of INR1.19 crore.

Ahmedabad-based (Gujarat), CDIPL, an ISO 9001:2008 certified
private limited company was incorporated during 1958 as
Industrial Machinery Manufacturers Private Limited. Later on
during 2001, it resumed its current name. CDIPL is engaged in the
business of manufacturing of industrial heaters, air cooled
condensers and industrial vacuum cleaning system which finds
application in wide number of industries like power, cement,
paper, sugar, fertilizer etc. It operates from its manufacturing
facilities located at Ahmedabad. Mr. Suhas Mehta, Mr. Saurabh
Mehta, Ms. Chhaya Mehta and Mr. Sisir Chakraborty are the present
directors of CDIPL. The raw materials like steel plates and tubes
are mostly purchased locally while the finished goods are sold
mostly within India, while very less proportion is being exported
to few countries. The group companies include C Doctor and
Company Private Limited (CDCPL; rated CARE B-; Stable/ CARE A4,
engaged in the business of supply and erection of heating,
ventilation and air conditioning system on turnkey basis), CB
Doctor Ventilators Private Limited (CBVPL, rated CARE B+; Stable/
CARE A4, engaged into the business of manufacturing of industrial
fans and industrial blowers) and Mehta Machinery Private Limited
(engaged in the business of manufacturing of humidification
ventilation plant).


C.R. JEWELLERY: CRISIL Migrates Rating on 12cr Loan to B/Stable
---------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of C. R.
Jewellery (CRJ) from 'CRISIL BB-/Stable Issuer Not Cooperating'
to 'CRISIL B/Stable'.

                      Amount
   Facilities      (INR Crore)    Ratings
   ----------      -----------    -------
   Cash Credit           12       CRISIL B/Stable (Migrated from
                                  'CRISIL BB-/Stable ISSUER NOT
                                  COOPERATING')

Due to inadequate information, CRISIL had, in line with
Securities and Exchange Board of India guidelines, migrated its
ratings on the bank facility of CRJ to 'CRISIL BB-/Stable Issuer
Not Cooperating'. However, the management has started sharing
information necessary for carrying out a comprehensive review of
the rating. Consequently, CRISIL is migrating the rating from
'CRISIL BB-/Stable Issuer Not Cooperating' to 'CRISIL B/Stable'.

The downgrade reflects weakening of liquidity profile marked by
fully utilization of bank limits.

The rating continues to reflect the company's modest liquidity
profile and modest scale of operations in the highly fragmented
jewellery industry. These weaknesses are partially offset by
promoters' extensive experience and established client
relationship.

Key Rating Drivers & Detailed Description

Weaknesses

* Small scale of operations and Low operating profitability:
Jewellery industry in India is highly fragmented with numerous
players in both wholesale and retail segments. Despite efforts at
differentiation and branding, industry primarily attracts
customers through relationships, especially in wholesale sector.
CRISIL believes that CRJ will remain a relatively small player in
the jewellery industry, over the medium term.

* Modest liquidity profile: Modest networth coupled with high
working capital requirements led to full utilization of bank
limits.

Strengths

* Promoter's Extensive Industry experience: Promoters of CRJ,
based at Chennai, are into this industry for more than two
decades. Due to the strong connections developed by the
promoters, the firm's has registered revenues at INR51.2 cr in FY
2017-18. CRISIL believes that it is the promoter's vision and the
competence that has helped the firm to establish itself and
discover fresh growth opportunities in intense competitive
market.

Outlook: Stable

CRISIL believes that CRJ will continue to benefit over the medium
term from its improving market position. The outlook may be
revised to 'Positive' in case of sustainable increase in the
firm's revenue and profitability, resulting in substantial cash
accruals, or better inventory management, leading to improved
liquidity. Conversely, the outlook maybe revised to 'Negative' if
CRJ's cash accruals are low or its working capital cycle is
stretched, thereby weakening its financial risk profile,
particularly its liquidity.

Established in 2000, CRJ is a partnership firm promoted by Mr.
Anandmal Challani and his family members. The firm manufactures
and trades in silver jewellery, mainly on a wholesale basis; it
also trades in bullion on a retail basis.


CHERAN HARDWARES: CRISIL Withdraws D Rating on INR5.5cr Loan
------------------------------------------------------------
CRISIL has withdrawn its ratings on the bank facilities of Cheran
Hardwares (CH) on the request of the company and receipt of a no
objection/due certificate from its bank. The rating action is in
line with CRISIL's policy on withdrawal of its ratings on bank
loans.

                    Amount
   Facilities    (INR Crore)     Ratings
   ----------    -----------     -------
   Cash Credit         5.5       CRISIL D (ISSUER NOT
                                 COOPERATING; Rating Withdrawn)

CRISIL has been consistently following up with CH for obtaining
information through letters and emails dated January 27, 2017 and
March 6, 2017, among others, apart from telephonic communication.
However, the issuer has remained non-cooperative.

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of CH. This restricts CRISIL's
ability to take a forward CH is consistent with 'Scenario 1'
outlined in the 'Framework for Assessing Consistency of
Information with CRISIL BB rating category or lower. Based on the
last available information, the rating on bank facilities of CH
continues to be 'CRISIL D Issuer Not Cooperating'.

Established as a partnership firm in 1991, CH is an iron and
steel trader. Based in Coimbatore (Tamil Nadu), the firm is
promoted and managed by Mr. M Karunanithi and Mr. D Mohan.


FABRICATORS (INDIA): CRISIL Migrates B Rating to Non-Cooperating
----------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of The
Fabricators (India) (TFI) to 'CRISIL B/Stable/CRISIL A4 Issuer
not cooperating'.

                      Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Bank Guarantee       4.25       CRISIL A4 (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Cash Credit          2.00       CRISIL B/Stable (ISSUER NOT
                                   COOPERATING; Rating Migrated)

CRISIL has been consistently following up with TFI for obtaining
information through letters and emails dated May 31, 2018 and
June 30, 2018, among others, apart from telephonic communication.
However, the issuer has remained non cooperative.

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of The Fabricators (India) which
restricts CRISIL's ability to take a forward looking view on the
entity's credit quality. CRISIL believes information available on
The Fabricators (India) is consistent with 'Scenario 1' outlined
in the 'Framework for Assessing Consistency of Information with
CRISIL BB' rating category or lower'.

Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of The Fabricators (India) to 'CRISIL B/Stable/CRISIL
A4 Issuer not cooperating'.

Set up in 1984 as a proprietorship firm by Mr. Vinay Kumar
Agrawal, TFI supplies electrical and mechanical equipment and is
also engaged in substation and transmission line work for
government entities such as irrigation department of Uttar
Pradesh and Uttar Pradesh Power Corporation Ltd.


GOKUL GINNING: CARE Reaffirms B+ Rating on INR6.59cr LT Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Gokul Ginning Factory (GGF), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities            6.59       CARE B+; Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of GGF is continue to
remain constrained on account of its modest scale of operations
with constitution as a partnership firm, thin profitability
margins, leveraged capital structure and moderate liquidity
position. The rating is, further, continue to remain constrained
on account of operating margins susceptible to cotton price
fluctuation along with seasonality associated with the cotton
industry, its presence in the lowest segment of the textile value
chain and in a highly fragmented cotton ginning industry.

The rating, however, derive strength from experienced management
in the cotton ginning industry and established relations with
customers and suppliers and strategically located in the cotton
growing region.

The ability of the firm to increase its scale of operations along
with speedy execution of existing contracts and better management
of working capital would be key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Modest scale of operations with constitution as a partnership
firm, thin profitability margins, leveraged capital structure and
moderate liquidity position The scale of operations of the firm
stood modest with Total Operating Income (TOI) of INR22.22 crore
and PAT of INR0.05 crore in FY18 and tangible net-worth of
INR3.14 crore as on March 31, 2018. Further, its constitution as
a partnership firm restricts its overall financial flexibility in
terms of limited access to external funds for any future
expansion plans.  During FY18, the firm registered PBILDT and PAT
margin of 2.11% and 0.24% respectively.

The capital structure of the firm stood leveraged marked with an
overall gearing of 1.62 times as on March 31, 2018, improved from
1.89 times as on March 31, 2017. The debt service coverage
indicators of the firm stood weak with total debt to GCA at 42.01
times as on March 31 2018, improved from 44.32 times as on
March 31 2017. However, the interest coverage indicators stood
moderate at 1.35 times in FY18.

The firm has utilized its 80% working capital bank borrowings in
peak season i.e. November to February and 5-10% of its limit in
non-seasonal duration i.e. July to September. The current ratio
stood comfortable at 1.43 times as on March 31, 2018.  However,
quick ratio stood below unity at 0.28 times as on March 31, 2018.

Operating margins susceptible to cotton price fluctuation and
seasonality associated with the cotton industry: Operations of
cotton business are seasonal in nature, as sowing season is done
during March to July and harvesting cycle (peak season) is spread
from November to February every year. Prices of raw material i.e.
raw cotton are highly volatile in nature and depend upon factors
like monsoon condition, area under production, yield for the
year, international demand supply scenario, export policy decided
by government and inventory carried forward of the last year.

Presence in the lowest segment of the textile value chain and in
a highly fragmented cotton ginning industry High proportion of
small scale units operating in cotton ginning and pressing
industry has resulted in fragmented nature of industry leading to
intense competition amongst the players. As GGF operates in this
highly fragmented industry wherein large numbers of un-organised
players are also present, it has very low bargaining power
against both its customers as well as its suppliers. This coupled
with limited value addition in cotton ginning process results in
the firm operating at very thin profitability (PAT) margins.

Key Rating Strengths

Experienced management in the cotton ginning industry and
established relations with customers and suppliers: Mr. Praveen
Shah, has more than three decades of experience in the cotton
ginning industry and looks after overall affairs of the firm.
Being present in the industry since long period of time, the
proprietor has established relationship with the customers and
suppliers.

Strategically located in the cotton growing region: Gujarat,
Maharashtra, Andhra Pradesh, Haryana, Madhya Pradesh and Tamil
Nadu are the major cotton producer's states in India. The plant
of GGF is located in one of the cotton producing belt of Barwani
(Madhya Pradesh) in India. The presence of GGF in cotton
producing region results in benefit derived from lower logistics
expenditure (both on transportation and storage), easy
availability and procurement of raw materials at effective price.

Barwani (Madhya Pradesh) based Gokul Ginning Factory (GGF) was
formed in 2007 as a partnership firm by Mr. Parveen Shah, Ms
Nirupama Shah, Mr. Sharmila Shah and Mr.  Abhishek Shah in the
ratio of 20:14:33:33. The firm is engaged in the business of
cotton ginning and pressing along with the production of cotton
seed and cake. The manufacturing unit of the firm has installed
capacity to manufacture cotton bales of 120 Bales per Day (BPD)
as on March 31, 2017. GGF procures raw cotton directly from
farmers and local mandis and sells its finished products mainly
in Madhya Pradesh, Maharastra, Gujarat and South India.


GOLITE FOOTWEAR: CARE Assigns B+ Rating to INR5.50cr LT Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Golite
Footwear (Golite), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities            5.50       CARE B+; Stable Assigned

   Short-term Bank
   Facilities            1.00       CARE A4 Assigned

Detailed Rational and key rating drivers

The ratings assigned to the bank facilities of Golite are
primarily constrained by small scale of operations with low
partners' capital, and low profitability margins. The ratings are
further constrained by susceptibility of margins to the
volatility in the raw material prices and competition from
organized and unorganized players. The rating, however, draws
comfort from the experienced partners, moderate capital structure
and moderate operating cycle. Going forward; ability of the firm
to profitably increase its scale of operations while maintaining
its capital structure along with management of raw material price
fluctuation risk shall be the key rating sensitivities.

Key description and key rating drivers

Key rating weakness

Small scale of operations with low partners' capital: The scale
of operations stood small marked by total operating income and
gross cash accruals of INR20.75 crore and INR0.58 crore
respectively during FY17 (FY refers to April 1 to March 31).
Furthermore, the net worth base was relatively stood small at
INR3.19 crore as on March 31, 2017. The small scale limits the
firm's financial flexibility in times of stress and deprives it
from scale benefits. Further, the firm has achieved TOI of
about INR27.28 crore in FY18 (period refers to April 1 to March
31; based on provisional results).

Low profitability margins: The profitability margin of the firm
marked by PBILDT and PAT margin stood low mainly on account of
highly competitive nature of industry. Further, PBILDT margin of
the firm stood fluctuating and below 5% for the past three
financial years (FY15-FY17) on account of volatile nature of raw
material prices and inability of the firm to pass on any increase
in prices mainly due to intense market competition given the low
entry barriers on account of low capital investment required to
set up a new facility.

Industry risk and susceptibility of margins to the volatility in
the raw material prices: The main raw materials for Golite are
PVC (Polyvinyl Chloride), Leather, PU Chemicals, etc., prices of
which are linked with crude oil prices and are very volatile.
With intense competition in the footwear segment mainly on
account of significant presence of the unorganized sector and
availability of cheap imported products, it is not always
possible to pass on the entire increase in raw material prices to
the customers, which puts pressure on the firm's profitability.

Constitution of the entity being a partnership firm: Golite's
constitution as a partnership firm has the inherent risk of
possibility of withdrawal of the partners' capital at the time of
personal contingency and firm being dissolved upon the
death/retirement/insolvency of partner. Moreover, partnership
firms have restricted access to external borrowing as credit
worthiness of partners would be the key factors affecting credit
decision for the lenders.

Key rating strengths

Experienced partners: Golite is currently being managed by Mr.
Pawan Anand, Mr. Tushar Anand and Mr. Divit Anand. All the
partners are graduates by qualification. Mr. Pawan Anand holds
extensive experience of more than three and half decade in
footwear industry through his association with this entity along
with his experience with previous venture. He is well supported
by Mr. Tushar Anand and Mr. Divit Anand who look after production
& marketing division and finance department of the firm
respectively.

Moderate capital structure: The firm has debt mainly in form term
loans and working capital borrowings. The capital structure of
the firm marked by overall gearing ratio stood below 1.20x as on
past two balance sheet date ending March 31 '16-'17 mainly on
account of satisfactory partners' capital against debt levels as
on balance sheet date.

Moderate operating cycle: The firm maintains adequate inventory
of around two months in form of raw material for smooth running
of its production process and also of finished goods for meeting
the demand of its customers' resultant into an average inventory
period of 73 days. Further, being a highly competitive business,
the firm has to give extended credit period to its customer's
resultant into the average collection period stood at around 79
days during FY17. The firm receive credit period of around 4-5
month from its supplier's on account of long standing
relationship. The average utilization of working capital
borrowings of the firm stood at ~80% during past 12 month period
ending May 2018.

Bahadurgarh, Haryana based Golite Footwear (Golite) was
established as proprietorship firm in 2010. It was reconstituted
as partnership firm in 2011. The firm is being managed by Mr.
Pawan Anand, Mr. Tushar Anand and Mr. Divit Anand sharing profit
and losses equally. Golite is engaged in the manufacturing of
footwear such as shoes, slippers and sandals etc. for men and
women.


GOVERDHAN TRANSFORMER: CARE Assigns B+ Rating to INR4.50cr Loan
---------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Goverdhan Transformer Udyog Private Limited (GTPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities            4.50       CARE B+; Stable Assigned

   Short-term Bank
   Facilities            1.00       CARE A4 Assigned

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of GTPL is primarily
constrained by its small scale of operations, leveraged capital
structure and weak coverage indicators. The ratings are further
constrained on account of elongated operating cycle and presence
in highly competitive industry coupled with risk associated with
tender-based orders.  The rating however, draws comfort from
experienced management and moderate profitability margins.

Going forward, the ability of the company to increase its scale
of operations while improving its financial risk profile shall be
key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weakness

Small though growing scale of operation: The scale of operations
of the company has remained small marked by total operating
income and gross cash accruals of INR17.26 crore and INR0.29
crore respectively during FY18 (refers to the period April 1 to
March 31; based on provisional results).The small scale limits
the company's financial flexibility in times of stress and
deprives it from scale benefits.

Though, the risk is partially mitigated by the fact that the
scale of operation is growing continuously. GTPL's total
operating income grew from INR6.71 crore in FY16 to INR17.26
crore in FY18 reflecting a compounded annual growth rate of
60.38% owing to higher number of orders executed.

Leveraged capital structure and weak coverage indicators: The
capital structure of the company stood leveraged owing to higher
dependence on external borrowings to meet its working capital
requirements coupled with lower net worth base. The overall
gearing ratio remained above 3x for the balance sheet date of the
past two financial years i.e. FY17-FY18. Owing to higher total
debt and lower GCA levels the debt coverage indicators stood weak
as marked by interest coverage and total debt to GCA of below
1.60x and above 20x for the past two financial years i.e. FY17-
FY18.

Elongated Operating Cycle: The operating cycle of the company
stood elongated at 151 days for FY18 owing to high collection
period. The company's customers are mainly state owned
electricity boards and other government departments with which
they have payment term of 90-120 days but the same gets delayed
due to weak financial health of these utilities which resulted in
average collection period of 192 days in FY18. The inventory
requirements are based on the orders in hand and GTPL maintains
optimum inventory for smooth execution of contracts resulting in
an inventory holding period of 26 days in FY18. The company
receives a credit period of around three months resulting in an
average creditor period of 67 days in FY18. The average working
capital limits stood 65% utilized for the past 12-months ended
June 2018.

Competitive nature of industry coupled with business risk
associated with tender-based orders: GTPL faces direct
competition from various organized players and unorganized
players in the market. There are number of small and regional
players, catering to the same market which can exert pressure on
its margins. The company undertakes contracts from government
departments and corporates, which are awarded through the tender-
based system. The company is exposed to the risk associated with
the tender-based business, which is characterized by intense
competition. The growth of the business depends on its ability to
successfully bid for the tenders and emerge as the lowest bidder.
Further, any changes in the government policy or their spending
on projects are likely to affect the revenues of the company.

Key Rating Strengths

Experienced directors and long track record of operations: The
company started its commercial operations in 1987 and is
currently being managed by Mr. Rajesh Kapoor, Ms. Seema Kapoor
and Mr. Naman Kapoor. Mr. Rajesh Kapoor is a post-graduate by
qualification with an experience of almost four decades in
electrical equipment's industry through his association with
GTPL. Ms. Seema Kapoor and Mr. Naman Kapoor both are graduates by
qualification with three decades and 2 years respectively of
experiences in the electrical equipment industry through their
association with GTPL.

Moderate profitability margins: The profitability margins of the
company stood moderate owing to customized nature of product
being manufactured. The operating margin of the company remained
around 10% however the same declined in FY18 and stood at 5.82%
owing to steep rise in the raw material prices. Further the PAT
margin stood moderate around 1.50% for the past two financial
years i.e. FY17-FY18.

Uttar Pradesh based Goverdhan Transformer Udyog Private Limited
(GTPL) is a private limited company which was incorporated in
January, 1985 and is currently being managed by Mr. Rajesh
Kapoor; Ms. Seema Kapoor and Mr. Naman Kapoor. The company is
engaged in manufacturing of transformers for state owned
electricity boards and other government departments at its
manufacturing facility located at Shikohabad (Uttar Pradesh),
having an installed capacity of 6,000 units per annum as on March
31, 2018. The main raw-material for GTPL is copper & aluminium
wires, transformer oil and CRGO (Lamination) which are procured
domestically from traders and manufacturers across India.


GOYAL GLASSWARE: CRISIL Withdraws 'B' Rating on INR18cr Loan
------------------------------------------------------------
CRISIL is migrating the ratings on bank facilities of Goyal
Glassware Private Limited (GGL) from 'CRISIL B/Stable/CRISIL A4
Issuer Not Cooperating to 'CRISIL B/Stable/CRISIL A4'.The rating
action is in line with CRISIL's policy on withdrawal of bank loan
ratings.

                    Amount
   Facilities    (INR Crore)     Ratings
   ----------    -----------     -------
   Cash Credit         18        CRISIL B/Stable (Migrated from
                                 'CRISIL B/Stable ISSUER NOT
                                 COOPERATING'; Rating Withdrawn)

   Letter of Credit     4.25     CRISIL A4 (Migrated from
                                 'CRISIL A4 ISSUER NOT
                                 COOPERATING'; Rating Withdrawn)

   Proposed Long Term   0.52     CRISIL B/Stable (Migrated from
   Bank Loan Facility            'CRISIL B/Stable ISSUER NOT
                                 COOPERATING'; Rating Withdrawn)

   Term Loan           14        CRISIL B/Stable (Migrated from
                                 'CRISIL B/Stable ISSUER NOT
                                 COOPERATING'; Rating Withdrawn)

Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of GGL to 'CRISIL
B/Stable/CRISIL A4 Issuer Not Cooperating'. CRISIL has withdrawn
its rating on bank facility of GGL following a request from the
company and on receipt of a 'no dues certificate' from the
banker. Consequently, CRISIL is migrating the ratings on bank
facilities of GGL from 'CRISIL B/Stable/CRISIL A4 Issuer Not
Cooperating to 'CRISIL B/Stable/CRISIL A4'.The rating action is
in line with CRISIL's policy on withdrawal of bank loan ratings.

GGL, incorporated in 2013, manufactures glass bottles mainly for
the liquor industry; it is based in Firozabad (Uttar Pradesh).
The company was incorporated as Goyal Iron & Steel Works (GISW)
in Agra on April 4, 1996, and manufactured mild-steel ingots, and
other castings. The firm was reconstituted as GGL in 2013. GGL is
promoted by Mr. Nitesh Goyal along with his family and friends.


KONER FOOD: CARE Assigns B+ Rating to INR8.90cr LT Loan to B+
-------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Koner
Food Product (KFP), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities            8.90       CARE B+; Stable Assigned

   Short-term
   Facilities            0.45       CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of KFP are
constrained by its small scale and short track record of
operation with low profitability margins, project implementation
risk, regulated nature of the industry, fragmented and
competitive nature of the industry, high working capital
intensity and exposure to vagaries of nature. However, the
aforesaid constraints are partially offset by its experienced
partners, close proximity to raw material sources and favorable
industry scenario and stable demand outlook of rice.

The ability of the firm to grow its scale of operation and
profitability margins and ability to manage its working capital
effectively would be the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

Experienced partners: Mr. Uttam Koner (aged, 58 years) having
more than two decade of experience, Mr. Priyabrata Koner (aged,
32 years) having 06 years of experience and Mr. Arnab Koner
(aged, 25 years) having 04 years of experience in similar line of
business, looks after the day to day operations of the firm along
with other partners and a team of experienced professionals who
have rich experience in the similar line of business.

Close proximity to raw material sources and favorable industry
scenario: KFP's plant is located at Burdwan district which is in
the midst of paddy growing state i.e. West Bengal. The entire raw
material requirement is met locally from the farmers (or local
agents) which helps the firm to save on substantial amount of
transportation cost and also procure raw materials at effective
prices. Further, rice being a staple food grain with India's
position as one of the largest producer and consumer, demand
prospects for the industry is expected to remain good in
near to medium term.

Stable demand outlook of rice: Rice, being one of the primary
food articles in India, demand is high throughout the country and
with the change in life style and health consciousness; by-
products of the same like rice bran oil etc. are in huge demand.

Key Rating Weaknesses

Small scale and short track record of operation with low
profitability margins: Koner Food Product (KFP) was established
in 2015 and thus has small track record of operation. Moreover,
KFP is a relatively small player in rice milling industry with
revenue and PAT of INR4.75 crore and INR0.03 crore respectively,
in FY18 (provisional). Further, the net worth base and total
capital employed was low at INR1.36 crore and INR1.73 crore,
respectively, as on March 31, 2018 (provisional). This apart, the
PBILDT and PAT margin remained low at 2.16% and 0.61%,
respectively, during FY18. The small size restricts the financial
flexibility of the firm in times of stress and it suffers on
account of economies of scale. Moreover, the firm has achieved a
turnover of INR0.75 crore for 4MFY19.

Project implementation risk: The firm is engaged in the expansion
of its rice milling unit with an additional proposed installed
capacity of 14,400 metric tonne per annum (MTPA). The project is
estimated to be set up at a cost of INR8.03 crore, to be financed
by way of partner's contribution of INR3.13 crore and term loan
of INR4.90 crore. The term loan is under consideration by the
banker. The firm has invested INR3.13 crore towards the project
till July 31, 2018, which is met entirely through partner's
contribution. The project is expected to be operational from
February, 2019.

Regulated nature of the industry: The Government of India (GoI)
decides a minimum support price (MSP-to be paid to paddy growers)
for paddy every year limiting the bargaining power of rice
millers over the farmers. The MSP of paddy was increased during
the crop year 2018-19 to INR1750/quintal from INR1550/quintal in
crop year 2017-18. Given the market determined prices for
finished product vis-a-vis fixed acquisition cost for paddy, the
profitability margins are highly volatile. Such a situation does
not augur well for the firm, especially in times of high paddy
cultivation.

Fragmented and competitive nature of the industry: KFP's plant is
located in Burdwan district which is in close proximity to hubs
for paddy/rice cultivating region of West Bengal. Owing to the
advantage of close proximity to raw material sources, large
number of small units is engaged in milling and processing of
rice in the region. This has resulted in intense competition
which is also fuelled by low entry barriers. Given that the
processing activity does not involve much of technical expertise
or high investment, the entry barriers are low.

High working capital intensity and exposure to vagaries of nature
Rice milling is a working capital intensive business as the rice
millers have to stock rice by the end of each season till the
next season as the price and quality of paddy is better during
the harvesting season. Also, paddy cultivation is highly
dependent on monsoons, thus exposing the fate of the firm's
operation to vagaries of nature. Accordingly, the working
capital intensity remains high leading to higher stress on the
financial risk profile of the rice milling units. Accordingly,
the average utilization of working capital limits was around 90%
during last 12 months ended July, 2018.

Koner Food Product (KFP) was established in the July 2015. The
firm is engaged in manufacturing of raw rice and parboiled rice.
The milling unit of KFP is located at Burdwan, West Bengal with
processing capacity of 5,400 Metric Ton Per Annum (MTPA). The
firm is promoted by Burdwan based Mr. Uttam Koner, who has a long
experience in the rice milling industry. KFP procures paddy from
farmers & local agents and sells its products through the
wholesalers and distributors located in West Bengal. The Firm
sells the products under the brand name 'Trishool'.

The firm is engaged in the expansion of its rice milling unit
with an additional proposed installed capacity of 14,400 metric
tonne per annum (MTPA). The project is estimated to be set up at
a cost of INR8.03 crore, to be financed by way of partner's
contribution of INR3.13 crore and term loan of INR4.90 crore. The
term loan is under consideration by the banker. The project is
expected to be operational from February, 2019.

Mr. Uttam Koner, Mr. Priyabrata Koner and Mr. Arnab Koner, looks
after the day to day operations of the firm along with
other partners.


LIKHITA ENERGY: CARE Reaffirms B+ Rating on INR14.21cr Loan
-----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Likhita Energy Systems Private Limited (LESPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities            14.21      CARE B+; Stable Reaffirmed

   Short-term Bank
   Facilities             5.00      CARE A4 Reaffirmed

Detailed Rationale& Key Rating Drivers

The rating assigned to the bank facilities of LESPL are continues
to be constrained by small scale of operations, highly leveraged
capital structure and short-term revenue visibility from order
book position.

The ratings continue to derive benefits from experienced
promoter, increase in total operating income during FY18 (Prov.)
and PBILDT margin in FY18 (Prov.), and Strong and reputed
clientele, comfortable operating cycle. Going forward, ability of
the company to increase its scale of operations, maintain the
profitability margins, improve capital structure and manage
working capital requirements efficiently are the key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations: The company has a relatively small
scale of operations marked by total operating income of INR27.38
crore and PAT of INR2.71 crore during FY18 (Prov.) with low net
worth base of INR 4.11 crore as on March 31, 2018 (Prov.) as
compared to other peers in the industry.

Highly leveraged capital structure albeit improved debt coverage
indicators: The capital structure of the company improved and
remained leveraged. Despite increase in debt levels the debt
equity and overall gearing ratio improved from 4.54x and 5.81x
respectively as on March 31, 2017 to 1.31x and 5.28x respectively
as on March 31, 2018(Prov.) due to increase in tangible networth.
The company has raised an adhoc cash credit of INR 1.00 crore in
February, 2018 for three months and repaid the same was paid in
July'2018.

Key Rating Strengths

Experience of promoter for more than two decades in the
engineering industry: Mr. T.Y. Reddy, promoter and Managing
Director of Likhita Group of Companies, is a graduate in
Mechanical Engineering from the University of Marathwada in
India. He has more than 25 years of experience in engineering
industry. Mr. T.P Reddy has over a decade of experience in
architecture, design and development of large-scale distribution
systems and Mr. ASGS Sandilya has an experience of more than 20
years in manufacturing, marketing, customer support and
liasoning.

Strong and reputed clientele: Mr. T.Y. Reddy's experience in the
industry has enabled him to establish and maintain healthy
relationships with his customers. LESPL caters to a strong and
reputed client base like Suzlon Energy Limited, Bharat Heavy
Electricals Limited, BGR Energy Systems Limited, N.C.C. Limited
and Juwi India Renewable Energy among others.

Increasing total operating income during review period: The total
operating income has witnessed a growth of 42.09% during
FY18(Prov.) to INR 27.38 crore vis-Ö-vis INR 19.27 crore during
FY17. During FY17 (A) to FY18(Prov.), the operating income grew
at a CAGR of 22.95%. The increase in the scale of operations was
on account of increase in orders from existing customers as well
as addition of new customers, also the company has entered into
new business operations with Integral coach factory (Indian
Railways) for manufacturing of parts of coach. The company
manufactures products i.e., modular frames, side frames, luggage
rack and other steel parts, due to the above said factors, the
TOI has improved.

The PBILDT margin declined by 234 bps to 24.14% in FY18 (Prov.),
due to increase in raw material costs coupled with other
expenses. As the firm, have entered into new business segment of
operations of manufacturing of parts of coach to Integral coach
factory (Indian Railways) from November 2017, as the fluctuation
steel prices for their operations in solar and structural
segment. However, the PAT margin has improved from 9.24% in FY17
to 9.61% in FY18(Prov.) due to increase in PBILDT in absolute
terms.

Comfortable operating cycle: The operating cycle remained
comfortable at 51 days in FY18 (Prov.) on account of
diversification of business, as it takes much time for execution
of solar projects. The Inventory days remained high at 72 days,
as the firm stores adequate amount of raw material (steel and
solar materials), due to manufacturing nature of business also to
execute the project in timely manner. The firm receives payment
from its customers in 2-3 months and simultaneously makes payment
to its supplier in 2-3 months, also based upon the relationship
with the clients.

Revenue visibility from order book position: LESPL has moderate
order book of INR15.64 crore as on August 9, 2018 which
translates to 1.75x of total operating income of FY18 and the
same is likely to be completed by FY189. The said order book
provides revenue visibility for medium term.

Likhita Energy Systems Private Limited (LESPL) was incorporated
on June 21, 2010 and is engaged in fabrication/manufacturing of
tubular wind turbine towers, huge storage tanks and heavy
fabrication of structures for thermal power stations, harbour
projects, and refinery projects as per the orders received from
customers. The company has diversified its revenue segment and
generated around 37% of the total revenue [FY18 (Prov.)] from
manufacturing tubular towers for Suzlon Energy Ltd(Reaffirmed
CARE BBB/CARE) (Tower division), 29% from Solar segment, 16%
fabrication of structural steel and pipes, while remaining 17%
from Railways. The operations of the company are managed by Mr.
T. Y. Reddy, Mr. ASGS Sandilya and Mr. T. P. Reddy. LESPL is a
part of Likhita Group (ISO 9001:2008 Certified); an engineering
company established in 1996 and having diverse focus on multiple
business segments which includes manufacturing of bulk drugs
processing equipment and wind turbine towers for wind power
projects, construction of residential buildings and also have
presence in IT enabled services. The quality and safety of
Likhita Group is certified by 'TUV India' and 'TATA Projects Ltd'
and it is also an 'ISO 9001:2000' certified company.

Mr. T.Y. Reddy, promoter of the company, has also promoted
Likhita Process Industries (LPI) and Likhita Fabtech Engineers
(LFE). LPI was incorporated in 2005 and engaged in manufacturing
non-conventional energy equipments like windmill tower internals,
solar structures and power sub-station equipments. LFE is focused
on manufacturing chemical plant equipments like reactors,
condensers, heat exchangers, pressure vessels etc.


M L RICE: CARE Lowers Rating on INR24.50cr LT Loan to B
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
M L Rice Mills (MLR), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long term Bank       24.50       CARE B; Stable; Issuer not
   Facilities                       cooperating, Revised from
                                    CARE B+; Stable on the basis
                                    of best available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from MLR to monitor the
rating(s) vide e-mail communications/letters dated July 25, 2018
and numerous phone calls. However,  despite CARE's repeated
requests, the firm has not provided the requisite information for
monitoring the ratings. In the absence of minimum information
required for the purpose of rating, CARE is unable to express
opinion on the rating. In line with the extant SEBI guidelines
CARE's rating on M L Rice Mills's bank facilities will now be
denoted as CARE B; Stable; ISSUER NOT COOPERATING.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating(s).

The rating has been revised on account of the fragmented nature
of industry coupled with high level of government regulation and
partnership nature of constitution.

Detailed description of the key rating drivers

The revision in the ratings takes into consideration the
following factors

Key Rating Weaknesses

Fragmented nature of industry coupled with high level of
government regulation: The commodity nature of the product
makes the industry highly fragmented with numerous players
operating in the unorganized sector with very less product
differentiation.

Partnership nature of constitution: MLR's constitution as a
partnership firm has the inherent risk of possibility of
withdrawal of the partners' capital at the time of personal
contingency and firm being dissolved upon the
death/retirement/insolvency of partners.

M L Rice Mills (MLR) was established in October 1983 as a
partnership firm by Mr Janak Raj and his brothers. The firm is
currently being managed by Mr Janak Raj and his wife, Mrs Sudesh
Rani and their sons, Mr Ashok Kumar and Mr Ashu Girdhar, sharing
profit and losses in the ratio 2:2:3:3. The firm is engaged in
the processing of paddy at its manufacturing facility located in
Fazilka, Punjab, with an installed capacity of processing 36,000
tonnes of paddy per annum as on June 30, 2018.


MONNET ISPAT: NCLT's Insolvency Resolution Plan Completed
---------------------------------------------------------
BloombergQuint reports that Monnet Ispat & Energy Ltd. said the
insolvency resolution plan approved by National Company Law
Tribunal has been completed under which JSW Steel Ltd. has
provided a working capital advance of INR125 crore.

"This is to inform you that, as on Aug. 31, the company has
completed the necessary actions in respect of implementation of
the resolution plan," Monnet Ispat said in a regulatory filing.

The distressed company owes over INR11,000 crore to a clutch of
lenders, BloombergQuint discloses. It also said INR2,457 crore
has been paid to secured financial creditors.

BloombergQuint says Monnet Ispat, once one of India's foremost
steel makers, ran a successful coal-based sponge iron plant with
an annual capacity of 1.5 million tonne in Chhattisgarh.
According to BloombergQuint, the company ran into problems when
the coal mines attached to the plant were cancelled in 2014 after
a Supreme Court order. Crashing steel prices on account of
Chinese dumping further aggravated its crisis and resulted into
bankruptcy proceedings.

                        About Monnet Ispat

Monnet Ispat and Energy Limited is a holding company. The Company
is engaged in the business of conducting coal mining operations
and manufacturing coal-based sponge iron and various other
steel/iron-based products. The Company operates through three
segments: Iron & Steel, Power and Others. Its principal products
and services include steel and power. It has an integrated steel
plant at Raigarh that has a production capacity of 1.5 million
tons per annum (MTPA) to produce hot rolled (HR) plates, rebars
and structure profiles to cater to the infrastructure and
construction industry. The Company has coal blocks, such as Gare
Palma IV/5, Utkal B2, Urtan North, Raigmar dipside block and
Mandakini. It is also engaged in producing ferro-alloys, which
includes vital alloys, such as Ferro Manganese (Fe-Mn) and
Silico-Manganese (Si-Mn). These are supplied in diverse shapes
and forms from billets and ingots to powders, fillers and allied
reinforcements.

Monnet Ispat was one the 12 companies identified by the Reserve
Bank of India for action under the Insolvency and Bankruptcy Code
(IBC).

As reported in the Troubled Company Reporter-Asia Pacific on
April 11, 2018, BloombergQuint said Monnet Ispat's committee of
creditors on April 10 approved a resolution plan submitted by a
joint venture between AION Investments Pvt Ltd and JSW Steel Ltd.
The plan was approved by lenders with a 98.97 percent majority.
The bid will now be placed before the National Company Law
Tribunal for final approval, before being implemented.

On Feb. 27, BloombergQuint had reported that the JSW-AION
consortium had made a INR3,700 crore offer for Monnet Ispat. Of
this, INR2,650 crore were to be used to repay lenders against
admitted claims worth INR10,000 crore. That would mean that the
financial creditors would take a 76 percent haircut on their
exposure.


MUSLIM EDUCATIONAL: CRISIL Hikes Rating on INR15.67cr Loan to B
---------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of The
Muslim Educational Society (Regd.) Calicut (MES) to 'CRISIL
B/Stable/CRISIL A4' from 'CRISIL D/CRISIL D'.  The rating upgrade
reflects timely servicing of term debt for past 4 months and
improved liquidity driven by timely fee collection.

                      Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Bank Guarantee       5.35       CRISIL A4 (Upgraded from
                                   'CRISIL D')

   Overdraft            5.00       CRISIL A4 (Upgraded from
                                   'CRISIL D')

   Term Loan           15.67       CRISIL B/Stable (Upgraded
                                   from 'CRISIL D')

The ratings reflect exposure to intense competition and to risks
related to the regulated nature of the education sector.  These
rating weaknesses are partially offset by MES's established
position in the education sector and its wide and expanding range
of course offerings.

Key Rating Drivers & Detailed Description

Weaknesses:

* Exposure to intense competition in education sector:  MES faces
intense competition in Kerala due to presence of large number of
institutes. The sustained inflow of students will depend to a
large extent on the society's ability to offer quality education
through continuous infrastructure development, and by retaining
and recruiting the best faculty.

* Vulnerability to regulatory environment governing educational
sector: MES has to comply with specific operational and
infrastructure norms set by governmental and quasi-governmental
agencies. Any non-compliance has implications for the
continuation of the affiliation to various boards.

Strengths:

* Established position in education sector, and wide course
offerings: MES has strong presence in Kerala through long track
record of more than 5 decades. Over the years, the society gained
prominence in Kerala, and diversified its course offering across
various disciplines, through 160 institutes.

Outlook: Stable

CRISIL believes that MES will benefit over the medium term from
its established position in the education sector. The outlook may
be revised to 'Positive' if the society reports significantly
higher-than-expected cash accruals while maintaining its healthy
capital structure. Conversely, the outlook may be revised to
'Negative' if MES undertakes a larger-than expected debt-funded
capex programme or records significant decline in cash accruals,
resulting in weakening of its financial risk profile.

MES was established in 1964 by the late Dr. P K Abdul Gafoor in
Calicut (Kerala). The society operates 160 institutions,
including professional colleges, schools, hostels, hospitals,
orphanages, and technical institutes, mostly in Kerala.


PONMANI INDUSTRIES: CRISIL Withdraws B+ Rating on INR5.75cr Loan
----------------------------------------------------------------
CRISIL has withdrawn its ratings on the bank facilities of
Ponmani Industries (PI) on the request of the company and receipt
of a no objection from its bank. The rating action is in line
with CRISIL's policy on withdrawal of its ratings on bank loans.

                     Amount
   Facilities     (INR Crore)     Ratings
   ----------     -----------     -------
   Bank Guarantee      1.25       CRISIL A4 (ISSUER NOT
                                  COOPERATING; Rating Withdrawn)

   Cash Credit         5.75       CRISIL B+/Stable (ISSUER NOT
                                  COOPERATING; Rating Withdrawn)

CRISIL has been consistently following up with PI for obtaining
information through letters and emails dated January 27, 2017 and
February 22, 2017, among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

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

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PI. This restricts CRISIL's
ability to take a forward PI is consistent with 'Scenario 2'
outlined in the 'Framework for Assessing Consistency of
Information with CRISIL BB rating category or lower. Based on the
last available information, the rating on bank facilities of PI
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating.

PI, set up in 1985, is a sole proprietorship concern that
manufactures and supplies table-top wet grinders, primarily to
the Tamil Nadu government. Its day-to-day operations are managed
by its proprietor, Mr. P Kumaresan.


QUADSEL SYSTEMS: CRISIL Lowers Rating on INR6cr Loan to D
---------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
Quadsel Systems Private Limited (QSPL) to 'CRISIL D' from 'CRISIL
B/Stable'.  The downgrade reflects instances of delay by QSPL's
in servicing its debt, on account of weak liquidity.

                      Amount
   Facilities      (INR Crore)      Ratings
   ----------      -----------      -------
   Cash Credit           6          CRISIL D (Downgraded from
                                    'CRISIL B/Stable')

   Long Term Loan        2          CRISIL D (Downgraded from
                                    'CRISIL B/Stable')

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: Scale of operations remains modest,
as reflected in revenue of INR21 crore in fiscal 2017, but is
likely to improve in the medium term, driven by increasing orders
from existing customers and addition of new customers. However,
with bulk of revenue coming from a single principal, any slowdown
in HP's business can adversely impact QSPL.

* Modest financial risk profile: Networth stood at INR2.3 crore
as on March 31, 2017, constrained by a low capital base and
modest accretion to reserves. Total outside liabilities to
tangible networth ratio was high around 6.7 times, given the
sizeable reliance on working capital debt and debt funded capex.

Strength

* Extensive experience of promoters and established relationship
with principal: The two decade-long experience of the promoters
in the computer consumables industry, and established
relationship with key principal, HP, will continue to support the
business risk profile. QSPL is one of the top gold channel
partners in India for computers, laptops and printers.

Established in 1996, Chennai-based QSPL is a dealer and channel
partner of HP. Operations are managed by the promoter, Mr Girish
Madhavan.


RAIPUR SPECIALITY: CARE Reaffirms B+ Rating on INR5.61cr Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Raipur Speciality Steels Pvt. Ltd. (RSSPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities            5.61       CARE B+; Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating for the bank facilities of RSSPL continues to be
constrained by its small scale of operation, susceptibility to
fluctuation in traded products price, intensely competitive
nature of the industry with presence of many unorganized players
and working capital intensive nature of operation and moderate
financial risk profile marked by low profit margins, leveraged
capital structure and moderate liquidity position. However, the
aforesaid constraints are partially offset by its experienced
promoters with long track record.

The ability of the company to improve its scale of operation
along with profitability margins and efficient management of
working capital are the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Strengths

Experienced promoters with long track record: RSSPL is currently
managed by Mr. George Mathew, Managing Director, having over
three decades of experience in similar line of business. These
apart, all other two directors are also having over a decade of
experience in similar industry. The company has started its
operation from March 2004, thus having long track record of
operation of over a decade.

Key Rating Weaknesses

Small scale of operation: RSSPL is a small player in steel
trading business with revenue and PAT of INR27.55 crore and
INR0.09 crore respectively in FY18. Furthermore, the total
capital employed was also modest at INR8.65 crore as on March 31,
2018. The small scale restricts the financial flexibility of the
company in times of stress. According to the management, during
4MFY19, the company has earned a total operating income of
INR10.61 crore.

Susceptibility to fluctuation in traded products price: The major
traded products, like Iron & Steel, are highly price volatile.
The purchase cost of the traded product accounted for about
96.84% of the total cost in FY18. Accordingly, any volatility in
the prices of the traded products is likely to have an impact on
the profitability of the company.

Intensely competitive nature of the industry with presence of
many unorganised players: Iron and steel trading industry is
highly fragmented and competitive due to presence of many players
operating in this sector owing to its low entry barriers, due to
low capital and technological requirements. Chhattisgarh and
nearby states are emerging as a major residential and industrial
developing area in the country. High competition restricts the
pricing flexibility of the industry participants and has a
negative bearing on the profitability.

Working capital intensive nature of business: Due to the trading
nature of business, the operation of the company is working
capital intensive marked by moderately high working capital cycle
of 69 days during FY18. The working capital cycle is high due to
long collection period on account of high credit period offered
to the customer to retain them in the competitive market. The
average utilisation of bank borrowing during last 12 months
ending on July, 2018 was 90%.

Moderate financial risk profile marked by low profit margins,
leveraged capital structure and moderate liquidity position:
Financial risk profile of the company has been low over the
years. The PBILDT margin was low at 2.51% during FY18 and the PAT
margin is low at 0.32% during the same period. The capital
structure of the company is leveraged marked by overall gearing
ratio at 3.02x as on March 31, 2018. However, the same has
improved on the back of scheduled repayment of term loan and
accretion of profits to reserve. Interest coverage ratio was
adequate at 1.34x during FY18. Current ratio remained adequate as
on March 31, 2018.

Raipur Speciality Steels Private Limited (RSSPL), incorporated in
March 2004 by one Mr. George Mathew of Raipur, is in the business
of iron and steel products trading. The company trades the
products like TMT bar, HR Sheet, MS Angle, MS Flat, wires etc.
During December 2016, the company took over a local
proprietorship firm named by "Royal Grand Cable Industries". Mr
George Mathew, Director, looks after the day-to-day operations of
the company with adequate support from other two directors and a
team of experienced personnel.


RD FORGE: CRISIL Reaffirms B+ Rating on INR5cr Packing Credit
-------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the long-
term bank facilities of RD Forge Private Limited (RDFPL).

                      Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Export Packing
   Credit                5         CRISIL B+/Stable (Reaffirmed)

   Proposed Cash
   Credit Limit          1         CRISIL B+/Stable (Reaffirmed)

   Term Loan             3.5       CRISIL B+/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility    3.0       CRISIL B+/Stable (Reaffirmed)

The rating continues to reflect the company's average financial
risk profile because of high gearing and modest debt protection
metrics; small scale of operations; and customer concentration in
revenue. These weaknesses are partially offset by the extensive
experience of its promoters in the forgings industry.

Analytical Approach

CRISIL has changed its analytical approach for arriving at the
rating, and has considered RDFPL's standalone business and
financial risk profiles. CRISIL had earlier combined the business
and financial risk profiles of RDFPL with its group company, RD
Chemicals Pvt Ltd (RDCPL). The change in approach is because of a
change in management's stance as both the entities now operate
independently. Job-work carried out by both the companies for
each other is limited and on arm's length. Also, RDFPL and RDCPL
have separate bankers.

Key Rating Drivers & Detailed Description

Weakness

* Average financial risk profile: Gearing was high at 2.39 times
as on March 31, 2018. Also, debt protection metrics were weak,
with interest coverage and net cash accrual to total debt ratios
of 2.97 times and 0.16 time, respectively, for fiscal 2018.

* Small scale of operations: With an operating income of INR23.62
crore for fiscal 2018, scale remains modest in the competitive
forgings segment.

Strength

* Extensive experience of promoters: Longstanding presence in the
forgings segment has enabled the promoters to build a diverse
customer base and has established healthy relationship with
customers and suppliers in the overseas market.

Outlook: Stable

CRISIL believes RDFPL will continue to benefit from the extensive
experience of its promoters. The outlook may be revised to
'Positive' if increase in revenue and profitability improves
financial risk profile. The outlook may be revised to 'Negative'
if low revenue or profitability, increase in working capital
requirement, or significant debt-funded capital expenditure
further weakens financial risk profile, especially liquidity.

Set up in 2010 by Mr Saurabh Garg and Mr Gaurav Garg, RDFPL
manufactures flanges in different sizes, which are primarily used
in the oil and gas industry. Around 80% of revenue comes from the
international market and the rest from the domestic market.
However, over the medium term, RDFPL will cater mainly to oil and
gas players in the export market. Plant in Ghaziabad, Uttar
Pradesh, has capacity to machine 5000 flanges tonne per annum and
is utilised by around 50%.


SAHA & MONDAL: CARE Lowers Ratings on INR2cr LT Loan to B+
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Saha & Mondal Construction (SMC), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank        2.00       CARE B+; Stable; Issuer not
   Facilities                       cooperating; Revised from
                                    CARE BB-; Stable; Issuer Not
                                    Cooperating; Based on best
                                    available information

   Short-term Bank       8.00       CARE A4; Issuer not
   Facilities                       cooperating; Reaffirmed;
                                    Based on best available
                                    information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from SMC to monitor the rating
vide e-mail communications/letters dated April 18, 2018, May 22,
2018, June 11, 2018, June 18, 2018 and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requisite information for monitoring the rating. In
line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the publicly available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating on SMC's bank facilities will now be denoted
as CARE B+/A4; ISSUER NOT COOPERATING. Users of this rating
(including investors, lenders and the public at large) are hence
requested to exercise caution while using the above rating.

The rating assigned to the bank facilities of Saha & Mondal
Construction (SMC), is primarily constrained by its partnership
nature of business, small scale of operation with moderate
profitability, susceptibility of operating margin to volatility
in input material prices and labour charges, low order book
position coupled with exposure to tender driven process risk and
intense competition within the industry owing to low entry
barrier and working capital intensive nature of operation. The
rating, however, derives strength from its experienced partners
with long track record of operation, reputed clientele resulting
in minimal default risk and moderate financial risk profile
marked by satisfactory leverage ratio and liquidity ratio.

Detailed description of the key rating drivers

At the time of last rating in October 26, 2017, the following
were the rating strengths and weaknesses:

Key Rating Weaknesses:

Partnership nature of business: SMC, being a partnership firm, is
exposed to inherent risk of partners' capital being withdrawn at
time of personal contingency. Furthermore, limited ability to
raise capital and poor succession planning may result in
dissolution of the firm.

Small scale of operation with moderate profitability: SMC is a
relatively small player in the construction business with total
operating income and PAT of INR36.98 crore and INR1.55 crore
respectively in FY16. The small size restricts the financial
flexibility of the firm in times of stress. Further, the total
capital employed was also low at INR10.47 crore as on Mar.31,
2016. During FY17 (prov.) the firm has earned an operating income
of approximately INR20.21 crore, down by 45.35% due to lower
order execution. Furthermore, the PBILDT margin has decreasing
trend and hovering around 8% during last three accounting period
ending on FY16 on account of increase in operating costs. PAT
margin moved in tandem with PBILDT margin and the same is
hovering around 4% during the said period.

Susceptibility of operating margin due to volatility in input
material prices and labour charges: The basic input materials for
execution of construction projects and works contracts are steel,
stone chips, bitumen, cement etc. The prices of which are highly
volatile. However, currently PWD works contract have price
escalation clause which mitigate price volatility risk to some
extent. Furthermore, the operating margin of the firm is exposed
to any sudden spurt in the input material prices along with
increase in labour prices being in labour intensive industry.

Low order book position coupled with exposure to tender driven
process risk and intense competition within the industry owing to
low entry barrier: The firm has a low order book (balance of
work) of INR7.77 crore as on May 31, 2017 [i.e. about 0.38x of
FY17 (prov.) revenue] to be executed within next six months
indicating a short term revenue visibility. The civil
construction space is highly competitive with many players
operating in the sector affecting the profitability of the
participants. Furthermore, the firm is largely dependent on
government authorities for orders and mainly procures its orders
through tender bidding and in a highly competitive scenario risk
of non-receiving of contract in tender bidding is also high.

Working capital intensive nature of operation: SMC's business,
being execution of construction projects, is working capital
intensive. Average utilization of its bank limit was high at
about 90% during the last 12 months ended on May 2017.

Key Rating Strengths

Experienced partners with long track record of operation: SMC has
been in operation since 1987, accordingly has a long track record
of operation. Further, the firm is managed by Mr. Bankim Behari
Mondal, managing partner, along with other five partners and a
team of experienced personnel. The managing partner is having
over four decades of experience in construction business.

Reputed clientele resulting in minimal default risk: The firm
receives order from reputed organisations like West Bengal State
Electricity Transmission Company Limited, West Bengal Power
Development Corporation Limited, Eastern Railway etc.

Moderate financial risk profile marked by satisfactory leverage
ratio and liquidity ratio: Financial risk profile of the firm is
moderate. The capital structure of the firm is comfortable marked
by below unity overall gearing ratio at 0.32x (improved from
0.36x as on March 31, 2015) as on March 31, 2016. The same has
improved on the back of accretion of profits to capital. Interest
coverage ratio was comfortable at 8.37x during FY16. Liquidity
ratio marked by current ratio was adequate at 1.56x as on March
31, 2016.

Saha & Mondal Construction (SMC) was established as a partnership
firm in June 1987, by Mr. Bankim Behari Mondal and five other
partners of Purba Medinipur in West Bengal. SMC is a relatively
small sized West Bengal based firm engaged in providing different
types of construction services, which include construction of
roads, bridges and building for government entities. Over the
years, the firm has completed a good number of small sized and
few medium sized projects and has catered to clients like West
Bengal State Electricity Transmission Company Limited, West
Bengal Power Development Corporation Limited, Eastern Railway
etc.


SATGURU AGRO: CARE Lowers Rating on INR20.50cr Loan to B-
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Satguru Agro Industries Limited (SAIL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank       20.50       CARE B-; Revised from CARE B;
   Facilities                       Issuer Not cooperating; basis
                                    on best available information

CARE has revised the ratings to CARE B-; Issuer Not Cooperating
based on best available information. However, despite CARE's
repeated requests via email dated August 13, 2018, August 10,
2018 and July 2, 2018 and numerous phone calls, the company has
not provided the requisite information for monitoring the ratings
and the management has remained non cooperative. The current
rating action taken by CARE is based on best available
information. In the absence of minimum information required for
the purpose of rating, CARE is unable to express opinion on the
rating. In line with the extant SEBI guidelines CARE's rating on
Satguru Agro Industries Limited (SAIL), bank facilities will now
be denoted as CARE B-; ISSUER NOT COOPERATING.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating(s).

Satguru Agro Industries Limited (SAIL) was incorporated in
November 1991 atSholapur,Maharashtra which was promoted by
Khaitan family. During 2004, SAIL was acquired by current
management which includes- Mr. Praffulbhai G. Kalavadia, Mr
Dinesh Kumar M. Kalavadia, Mr.Bharatbhai V. Changela, Mr. Paresh
Kiran Parmar, Mr. Kantilal Naranbhai Padodar andMr. Ashiwin
KumarDayabhai Zalawadi. SAIL is engaged in the crushing and
processing of soyabean seed for extraction of soya de-oiled-cake
(DOC), soya wash oil and soya refinery with aninstalled capacity
of 250 metric tonnes per day (MTPD) for soya DOC and 50 MTDP for
soyarefinery. SAIL's product portfolio includes soya de-oiled
cake (DOC), soya wash oil and refinedsoya oil.


S.H. ENTERPRISES: CARE Reaffirms B+ Rating on INR8cr LT Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
S. H. Enterprises (SHE), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank
   Facilities            8.00       CARE B+; Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating for the bank facilities of SHE to be constrained by
its partnership nature of constitution, small scale of operations
coupled with low margin trading nature of business, pricing
constraints and margin pressure arising out of competition from
other players in the market, thin profitability margins due to
trading nature of business, working capital intensive nature of
operation leading to leveraged capital structure. However, the
aforesaid constraints are partially offset by long track record &
experienced partners and Strategic location of the warehouse.
The ability of the firm to grow its scale of operations along
with profitability margins are the key rating sensitivities.

Detailed Description of Key Rating Drivers

Key Rating Strengths

Long track record & experienced partners: The partners Mr. Sanjay
Kumar Agarwal and Mr. Murari Lal Agarwal are having experience of
around 25 years and 21 years respectively in this line of
business.

Strategic location of the warehouse: The warehousing facility of
the firm is strategically located at Jamshedpur, Jharkhand, which
is well connected through all forms of logistics.

Key Rating Weaknesses

Partnership nature of constitution: S. H. Enterprises, being a
partnership firm, is exposed to inherent risk of the partner's
capital being withdrawn at time of personal contingency and firm
being dissolved upon the death/retirement/insolvency of the
partners. Furthermore, partnership firms have restricted access
to external borrowing as credit worthiness of partners would be
the key factors affecting credit decision for the lenders.

Small scale of operations coupled with low margin trading nature
of business: The scale of operations remained modest as compared
to its peers with a PAT of INR0.38 crore on total operating
income of INR96.48 crore during FY18 (Provisional).Furthermore,
tangible networth of the firm, also remained low with the same
being at INR4.93 crore as on March 31, 2018 (Provisional).

Pricing constraints and margin pressure arising out of
competition from other players in the market: The industry is
highly fragmented in nature with low entry barriers due to
minimal capital required and easy access to clients and
suppliers. Various players are involved in the trading of iron &
steel products in the local market, thus putting pressure on
margins.

Thin profitability margins due to trading nature of business:
Profitability margin of the firm remained thin and range bound
over the past years due to inherent low margin nature of trading
business with no control over the purchase and selling prices.
Accordingly PBILDT margin was at 1.68% (over 3.42% in FY17) in
FY18 (Provisional). The PAT margin moved in line with PBILDT
margin with the same being at 0.39% in FY18 (Provisional) over
0.65% in FY17.

Working capital intensive nature of operation leading to
leveraged capital structure: Due to the trading nature of
operations, SHE's business is working capital intensive, because
of which the average monthly utilization of working capital was
around 90% during the last twelve months ended July 31, 2018. The
working capital cycle of the firm remained at around 49 days
during FY18 (Provisional).The overall gearing remained high at
2.20x (over 3.14x as on Mar.31, 2017) as on Mar.31, 2018
(Provisional).

S. H. Enterprises (SHE) was set up as a proprietorship firm in
1992 by Shri Sanjay Kumar Agarwal of Jamshedpur, Jharkhand for
carrying out business of trading of iron & steel products.
Subsequently in 2002, it was converted into partnership firm with
induction of Shri Murari Lal Agarwal as partner, with equal
profit sharing ratio. SHE is a small sized Jharkhand based firm
engaged in trading of iron & steel products like MS Ingot, Sponge
Iron, Coal, Coke, Iron ore, etc. The firm caters to customers in
Jharkhand, U.P. and Bihar region.


SHREE RAMANJANEYA: CARE Lowers Rating on INR14.91cr Loan to B
-------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Shree Ramanjaneya Hotels Private Limited (SRHPL), as:

                      Amount
   Facilities       (INR crore)     Ratings
   ----------       -----------     -------
   Long-term Bank       14.91       CARE B Stable; Issuer not
   Facilities                       cooperating; Revised from
                                    CARE B+; Stable on the
                                    Basis of best available
                                    information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information SRHPL to monitor the rating(s)
vide email communications/letters dated May 25, 2018, July 23,
2018, July 31, 2018, August 1, 2018 and numerous phone calls.
However, despite CARE's repeated requests, the company has not
provided the requisite information for monitoring the ratings. In
line with the extant SEBI guidelines, CARE has reviewed the
rating on the basis of the publicly available information which
however, in CARE's opinion is not sufficient to arrive at a fair
rating. The rating on Shree Ramanjaneya Hotels Private Limited
bank facilities will now be denoted as CARE B/ Stable; ISSUER NOT
COOPERATING.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.

The ratings have been revised on account of small scale of
operations, deterioration in the financial risk profile during
FY17 (refers to April 1, 2016 to March 31, 2017) on account of
widening of operating and net losses resulted in eroded
tangible networth and deterioration in capital structure along
with stretched liquidity position, presence in competitive,
seasonal & cyclical hospitality industry, long track record of
Fidalgo Group's (FG) operations coupled with established
hotel brand presence, highly experienced and resourceful
promoters and demonstrated financial support.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations with operating and net losses incurred
during past: SRHPL's operations are nascent in stage with only 6
years of operations and FY13 being the first full year of
operations. The company has posted operating and net losses
during past three years ended FY18. Given this, the tangible
networth has eroded to negative which further limits the
financial flexibility of the company.

Highly leveraged capital structure and weak debt coverage
indicators: The capital structure of the company has deteriorated
owing to eroded tangible networth and increase in debt levels.
SRHPL's debt coverage indicators stood vulnerable, given the high
reliance on debt coupled with losses incurred during FY17.

Presence in competitive, seasonal & cyclical industry: SRHPL
operates in a competitive hospitality industry wherein a large
number of players operate hotels all over the cities, thereby
intensifying the competition for the company. Moreover, the hotel
operations are also prone to seasonality & cyclicality, thereby
leading to fluctuations in occupancy rates.

Stretched liquidity position: The liquidity position of the
company remained stretched owing to continuous losses incurred
during past which has resulted in increase in debt level and
creditors to fund the working capital requirements of the
company.

Key rating strengths

Long track record of Fidalgo Group coupled with established brand
presence: SRHPL belongs to FG, which also operates another
company named Maberest Hotels Private Limited (MHPL). MHPL
operates a 4-star hotel in Panjim, Goa, since 2002. All the
hotels operated by FG are run under its own brand "Fidalgo" which
has got a renowned local presence in Panjim and Pune.

Highly experienced promoters with over four decades of experience
in hotel industry: The overall operations of SRHPL are looked
after by Mr. Jayant Shetty with his brother Mr. Ganesh Shetty and
brother-in-law Mr. Harish Shetty, who possess a cumulative
experience of over a decade in the field of hospitality business.
Further the promoters have supported the operations of the
company by infusion of funds.

Incorporated in 2011 by Mr. Jayant Shetty, Mr. Ganesh Shetty, Mr.
Harish Shetty and Mrs. Pratibha Shetty, SRHPL is engaged in
providing hospitality services under its own brand Fidalgo,
whereas it operates a 69-room, 3-star hotel in Pune, Maharashtra.
Until FY16, the company operated only one 94-room, 3-star hotel
in Hyderabad, Telangana, which was obtained by the company on a
20-year lease agreement, whereas the Pune hotel (set up of a
total project cost of INR43 crore) became operational in July
2016. Thereafter, the company wounded up the operations of the
Hyderabad hotel with effect from October 2016.


SUPER INFRATECH: CARE Moves D Rating to Not Cooperating
-------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Super
Infratech Private Limited (SIPL) to Issuer Not Cooperating
category.

                    Amount
   Facilities     (INR crore)     Ratings
   ----------     -----------     -------
   Long-term Bank      7.14       CARE D; Issuer Not Cooperating;
   Facilities                     Based on best available
                                  Information

   Short-term Bank    10.74       CARE D; Issuer Not Cooperating;
   Facilities                     Based on best available
                                  Information

Detailed Rationale and Key Rating Drivers

CARE has been seeking information from SIPL to monitor the
ratings vide e-mail communications/letters dated May 2, 2018,
June 5, 2018, June 18, 2018 and numerous phone calls. However,
despite CARE's repeated requests, the company has not provided
the requisite information for monitoring the ratings. In line
with the extant SEBI guidelines, CARE has reviewed the rating on
the basis of the publicly available information which however, in
CARE's opinion is not sufficient to arrive at a fair rating.  The
rating on SIPL's bank facilities will now be denoted as CARE D;
ISSUER NOT COOPERATING.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above ratings.

The ratings take into account the ongoing delay in debt servicing
of the company owing to stressed liquidity position.

Detailed description of the key rating drivers

At the time of last rating on July 4, 2017, the following were
the rating strengths and weaknesses:

Key Rating Weaknesses:

Ongoing delays in debt servicing owing to weak liquidity driven
by stretched debtors: SIPL mainly executes contracts of public
sector units like Public Works Department (Dibrugarh), Central
Public Works Department (Guwahati), etc. The stretched payment
mechanism adopted by the government authorities has resulted to
high collection period during last three years (i.e. FY14-FY16).
Currently, the company is facing cash crunch due to delay in
receipt of collection from its debtors owing to the stretched
payment mechanism adopted by the public sector unit. Furthermore,
the average collection period deteriorated and remained high
during last three years and the same stood at 451 days in FY16.
Therefore the company's operations remained highly working
capital intensive and accordingly SIPL is highly dependent on the
external borrowings for funding its sizable working capital
requirement. Accordingly the average utilization of fund based
limits remained on the higher side around 100% during last 12
months ended in May 2017.  Further there are various instances of
over drawings in fund based limits during last 12 months and the
over drawings are regularized within 30 to 60 days. Currently
there are ongoing delay in repayment of term loan installments
and interest servicing.

SIPL was incorporated in March 2001 by Mr. Sujit Bordoloi and
Mrs. Tribeni Bordoloi. Since its inception, the company has been
engaged in civil construction activities for state and central
government in the segment like construction of buildings, drains
and roads. The company is classified as Class-1 contractor by
Public Works Division, Assam which indicates that the company can
participate for higher value contracts release by government
departments. SIPL participates in tenders and executes orders for
the Public Works Department (Dibrugarh), Central Public Works
Department (Guwahati), etc.


SWARNA ACADEMY: CRISIL Assigns B+ Rating to INR4.5cr Cash Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long
term bank facilities Swarna Academy of Sciences (SAS).

                      Amount
   Facilities      (INR Crore)      Ratings
   ----------      -----------      -------
   Term Loan             2.5        CRISIL B+/Stable

   Cash Credit/
   Overdraft facility    4.5        CRISIL B+/Stable

   Proposed Long Term
   Bank Loan Facility    1.0        CRISIL B+/Stable

The rating reflects geographic concentration in revenue profile,
exposure to intense competition in education industry and to
regulatory environment governing educational sector. These rating
weakness have been partially offset by the established experience
of the management and comfortable capital structure.

Key Rating Drivers & Detailed Description

Weakness

* Vulnerability to regulatory risks associated with educational
institutions: The various courses offered by the trust have to
comply with operational and infrastructure norms set by
regulatory bodies. Any change in regulations, for instance cap on
increasing fees, could affect the trust's cash flow.

* Geographic concentration in revenue profile and exposure to
intense competition: SAS derives its revenues from Krishna,
Andhra Pradesh. Geographic concentration in its revenue profile
with limited courses it offers constrains the scalability of
operations. The trust faces intense competition from several
institutes. Sustained inflow of students will depend on ability
to offer quality education through continuous infrastructure
development, and by retaining and recruiting the best faculty.

Strengths

* Experienced management with diverse course offerings: The
management has well established experience of around 20 years in
the field of education, this has helped the trust to establish a
regional position reflected in healthy occupancy.

* Comfortable capital structure: Gearing and total outside
liabilities to adjusted tangible networth (TOLTNW) of 0.76 time
and 0.93 time as on March 31, 2017, estimated at same level as on
March 31, 2018.

Outlook: Stable

CRISIL believes that SAS will benefit over the medium term from
the increasing demand for its courses. The outlook may be revised
to 'Positive' if the trust increases its scale of operations
substantially, while it maintains its profitability and its
capital structure. Conversely, the outlook may be revised to
'Negative' if SAS undertakes any large, debt-funded capital
expenditure, or records a significant decline in its cash
accruals, resulting in deterioration in its financial risk
profile and liquidity.

SAS was founded in 2007 in Vijaywada, Andhra Pradesh by Mrs. M
Swarna Devi and other associates. SAS operates an instituted
under the name MVR College of Engineering and Technology. It
offers courses of engineering, MBA, M Tech and Polytechnic.


VARRON ALUMINIUM: CARE Reaffirms D Rating on INR55cr ST Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Varron Aluminium Private Limited (VAPL), as:

                      Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long-term Bank      40.00      CARE D; Issuer not cooperating;
   Facilities                     based on best available
                                  information

   Long Term Bank      50.00      CARE D; Issuer not cooperating;
   Facilities/                    based on best available
   Short Term bank                information
   Facilities

   Short Term Bank     55.00      CARE D; Issuer not cooperating;
   Facilities                     based on best available
                                  information

CARE has reaffirmed the ratings CARE D; Issuer Not Cooperating
based on best available information. However, despite CARE's
repeated requests via email dated August 10, 2018, August 8, 2018
and August 6, 2018 and numerous phone calls, the company has not
provided the requisite information for monitoring the ratings and
the management has remained non cooperative. The current rating
action taken by CARE is based on best available information. In
the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines CARE's rating on Varron Aluminium
Private Limited (VAPL), bank facilities will now be denoted as
CARE D; ISSUER NOT COOPERATING.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating(s).

Varron Aluminium Private Limited (VAPL) is engaged in the
manufacturing of alloy and aluminum based ingots, aluminum
castings and steel forgings utilized in the production of
automotive components and forgings. Further, from January 2015,
the company has also commenced manufacturing of pressure die
castings.. It manufactures aluminium ingots of all grades
by recycling of aluminium scrap material. It had a manufacturing
capacity to produce 7,800 MT per month of aluminium based
products during FY14 that was enhanced to 9,000 MT per month
during FY15. The manufacturing plant of the company is located at
Ratnagiri, Maharashtra, VAPL has installed eight furnaces for the
manufacturing of aluminium ingots.


VARRON AUTOKAST: CARE Reaffirms D Rating on INR322cr Loan
---------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Varron Autokast Aluminium Private Limited (VAKPL), as:

                      Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long-term Bank       155       CARE D; Issuer not cooperating;
   Facilities                     based on best available
                                  information

   Long Term Bank       322       CARE D; Issuer not cooperating;
   Facilities/Short               based on best available
   Term bank                      information
   Facilities

CARE has reaffirmed the ratings CARE D; Issuer Not Cooperating
based on best available information. However, despite CARE's
repeated requests via email dated August 10, 2018, August 8, 2018
and August 6, 2018 and numerous phone calls, the company has not
provided the requisite information for monitoring the ratings and
the management has remained non cooperative. The current rating
action taken by CARE is based on best available information. In
the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines CARE's rating on Varron Autokast
Aluminium Private Limited (VAKPL), bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating(s).
Analytical approach: Standalone

Varron Autokast Limited (VAPL) is engaged in the manufacturing of
alloy and aluminum based ingots, aluminum castings
and steel forgings utilized in the production of automotive
components and forgings. Further, from January 2015, the
company has also commenced manufacturing of pressure die
castings. It manufactures aluminium ingots of all grades by
recycling of aluminium scrap material.


VARRON INDUSTRIES: CARE Reaffirms D Rating on INR142.80cr Loan
--------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Varron Industries Private Limited (VIPL), as:

                      Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long-term Bank      17.94      CARE D; Issuer not cooperating;
   Facilities                     based on best available
                                  information

   Long Term Bank     109.10      CARE D; Issuer not cooperating;
   Facilities/Short               based on best available
   Term bank                      information
   Facilities

   Short Term Bank    142.80      CARE D; Issuer not cooperating;
   Facilities                     based on best available
                                  information

CARE has reaffirmed the ratings CARE D; Issuer Not Cooperating
based on best available information. However, despite CARE's
repeated requests via email dated August 10, 2018, August 8, 2018
and August 6, 2018 and numerous phone calls, the company has not
provided the requisite information for monitoring the ratings and
the management has remained non cooperative. The current rating
action taken by CARE is based on best available information. In
the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines CARE's rating on Varron
Industries Private Limited (VIPL), bank facilities will now be
denoted as CARE D; ISSUER NOT COOPERATING.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating(s).

Varron Industries Private Limited (VIPL) is engaged in the
manufacturing of alloy and aluminum based ingots, aluminum
castings and steel forgings utilized in the production of
automotive components and forgings. Further, from January 2015,
the company has also commenced manufacturing of pressure die
castings. It manufactures aluminium ingots of all grades by
recycling of aluminium scrap material. It had a manufacturing
capacity to produce 7,800 MT per month of aluminium based
products during FY14 that was enhanced to 9,000 MT per month
during FY15. The manufacturing plant of the company is located at
Ratnagiri, Maharashtra, VIPL has installed eight furnaces for the
manufacturing of aluminium ingots.


YASHODA COTTON: CARE Moves D Rating to Not Cooperating
------------------------------------------------------
CARE Ratings has migrated the rating on bank facility of Yashoda
Cotton & General Mills Private Limited (YCG) to Issuer Not
Cooperating category.

                    Amount
   Facilities     (INR crore)     Ratings
   ----------     -----------     -------
   Long term Bank      6.06       CARE D; Issuer not cooperating;
   Facilities                     Based on best available
                                  information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from YCG to monitor the
rating(s) vide email communications/letters dated July 26, 2018
and numerous phone calls. However, despite CARE's repeated
requests, the company has not provided the requisite information
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the best
available information which however, in CARE's opinion is not
sufficient to arrive at a fair rating. The rating on Yashoda
Cotton & General Mills Private Limited's bank facilities will now
be denoted as CARE D; ISSUER NOT COOPERATING.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while
using the above rating(s).

The rating takes into consideration delays in debt servicing
obligation on account of weak liquidity as the company is
unable to generate sufficient funds on timely manner.

Detailed description of the key rating drivers

Key Rating Weaknesses

On-going delays in debt servicing: There are ongoing delays in
servicing the debt obligations. The delays are on account
of weak liquidity as the company is unable to generate sufficient
funds on timely manner.

Fragmented and competitive nature of industry: YCG operates in a
highly fragmented and unorganized market for cotton products with
the presence of large number of small players. The industry is
characterised by low entry barriers due to minimal capital
required and easy access to clients and suppliers. The players in
the industry face high competition on largely due to the presence
of small job/contract manufacturer and fragmented nature of the
industry.

Yashoda Cotton & General Mills Private Limited (YCG) was
incorporated in 2008 by Mr. Narinder Kumar and Mr. Harish Kumar
along with family members Mrs. Sarita Jindal and Mrs. Satya Devi.
YCG is primarily engaged in the processing of raw cotton to
produce cotton lint at its processing facility located in
Barnala, Punjab, having an installed capacity of processing
16,329 quintals of raw cotton per year as on June 30, 2018. YCG
is also engaged in the trading of cotton seeds.



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


CIPUTRA DEVELOPMENT: Fitch Corrects August 30 Ratings Release
-------------------------------------------------------------
Fitch Ratings issued a correction to a release on Ciputra
Development published on August 30, 2018. It includes Fitch's
"Third-Party Partial Credit Guarantee Rating Criteria", which was
omitted from the original release.

The amended release is as follows:

Fitch Ratings has affirmed PT Ciputra Development Tbk's (CTRA)
Long-Term Issuer Default Rating (IDR) at 'BB-' with a Stable
Outlook. At the same time, Fitch Ratings Indonesia has affirmed
PT Ciputra Residence's National Long-Term Rating at 'A+(idn)'
with a Stable Outlook.

CTRA, as a consolidated group, is one of Indonesia's largest and
most diversified property developers in terms of presales, assets
and product range. It is a non-operational holding company and
therefore dependent on the cash generation of its subsidiaries.
Its Long-Term IDR is based on Fitch's analysis on the operating
perimeters of CTRA and its subsidiaries as a single economic
entity. This is based on its view that all entities' interests
are aligned, with cross-default clauses and other provisions
across various debt agreements within the group. The rating on
Ciputra Residence is equalised to the consolidated profile of its
99.99% shareholder CTRA given strong legal and operations links
between the entities.

The affirmation of CTRA's ratings reflects its view that the
company's business and financial risk profiles are largely
unchanged as the company was able to maintain relatively strong
presales despite the current slow demand for property in
Indonesia. Fitch believes CTRA's rating is also supported by the
company's strong market position due to its established track
record, sizeable land bank, quality assets, and solid financial
profile, as indicated by CTRA's relatively low leverage and
sufficient non-development interest cover.

'A' National Ratings denote expectations of low default risk
relative to other issuers or obligations in the same country.
However, changes in circumstances or economic conditions may
affect the capacity for timely repayment to a greater degree than
is the case for financial commitments denoted by a higher rated
category

KEY RATING DRIVERS

Rating Based on Consolidated Profile: CTRA and its subsidiaries
have strong intra-group legal and operational linkages that stem
from cross default clauses within the group's debt, comfortable
access to cash within the group and common shareholders and board
members among the group companies, which indicate strong
operational linkages. There are also risks to the overall
reputation of the group from the use of the 'Ciputra' brand.
Fitch believes these linkages give CTRA strong control over its
subsidiaries and therefore they operate as a single entity.

Good Presales Despite Slow Demand: CTRA's attributable presales
increased by about 10% yoy in 1H18, beating the average 2%
decline of the presales of nine developers tracked by Fitch.
Fitch forecasts CTRA will book IDR5.5 trillion-6 trillion of
attributable presales annually in 2018 and 2019 as the company
continues to launch new residential and commercial products and
engage in partnerships with various land-owners across Indonesia.

The Indonesian property market has continued to be weighed down
by a depreciating currency and rising interest rates. Property
demand is also increasingly driven by end-users rather than
investors. Fitch believes CTRA is better positioned to withstand
the challenging market than other Indonesian developers due to
its established domestic franchise and significant exposure to
the low-to-mid end market, which tends to be more resilient
during periods of muted demand. As of 1H18, 41% of CTRA's
consolidated presales consisted of products priced below IDR1
billion/unit.

Diversified Portfolio, Solid Recurring Income: CTRA is one of
Indonesia's most diversified property developers by product,
geography and segmentation. The company has 56 residential
projects and 19 commercial properties, which include malls,
hotels and hospitals in more than 30 Indonesian cities. The group
has multiple revenue streams across various segments of the
property market. Its commercial investment property business also
provides strong debt service visibility with a robust non-
development interest coverage ratio, as measured by Fitch's
forecast of adjusted non-development gross profit/net interest,
of around 2.5x in 2017.

Stabilising Leverage Profile: Fitch believes CTRA's more
conservative spending on its investment property business should
lead to more stable leverage. The ramp-up of the investment
property business over the last few years strengthened the
company's non-development income base, but, at the same time,
pushed up leverage. CTRA's adjusted gross debt nearly doubled in
the past three years to IDR7.7 trillion in 2017 from IDR4.1
trillion in 2014, which drove leverage (measured by adjusted net
debt/ adjusted inventory) to 25% in 2017 from 11% in 2014.
Fitch believes the completion of a number of new investment
properties in the near future, stable overall occupancy profile
and limited significant investment-property investment going
forward should lead to a more stable leverage profile and support
the company's non-development interest cover. CTRA's non-
development revenue increased to IDR1.7 trillion from IDR1.1
trillion over 2014-2017.

Sizeable Land Bank: CTRA has one of the largest land holdings
among developers in Indonesia, with around 1,500 hectares at end-
June 2018. Its land bank is also spread out across the country,
with sizeable presence in the main urban areas of Greater Jakarta
and Greater Surabaya. The large land bank ensures project
longevity, especially during the current high land-price
environment. In addition, the Ciputra group's strategy also
includes joint developments with land owners on a profit or
revenue sharing scheme. This helps the group expand its
operational scale with a lower balance-sheet burden

DERIVATION SUMMARY

On the international scale, CTRA's credit profile may be compared
with PT Pakuwon Jati Tbk (BB/Stable), PT Bumi Serpong Damai Tbk
(BSD, BB-/Stable) and PT Agung Podomoro Land Tbk (B+/Stable).
Pakuwon is rated one notch higher than CTRA given its larger non-
development income base from a superior investment-property
portfolio, significantly stronger non-development interest cover,
wider profitability margins, lower leverage profile and better
generation of cash flow from operations.

CTRA and BSD have similar business risk profiles, as both have
established track records in the Indonesia property market and
similar operating presales. They also have comparable financial
profiles with similar leverage levels. Fitch thinks BSD's wider
profit margins are offset by CTRA's better geographic
diversification.

Relative to Agung Podomoro, a leading residential and commercial-
property developer in Indonesia, CTRA has a significantly larger
property presales, stronger non-development income profile and
better geographic diversification. Fitch believes these, combined
with CTRA's stronger financial profile and Agung Podomoro's
higher exposure to some cyclical industrial land sales, warrant
the one-notch rating difference.

Ciputra Residence's rating is based on the consolidated profile
of its parent, CTRA. On the national scale, Ciputra Residence may
be compared with PT Kawasan Industri Jababeka Tbk (KIJA; A-
(idn)/Stable), PT Japfa Comfeed Indonesia Tbk (AA-(idn)/Stable),
PT Sri Rejeki Isman Tbk (Sritex; A+(idn)/Stable) and PT Pan
Brothers Tbk (PB; A(idn)/Stable). Ciputra Residence is rated two
notches higher than KIJA mainly due to CTRA's significantly
larger presales, wider geographic diversification and lower
business cyclicality, given its lower exposure to industrial land
sales. In addition, CTRA also has a more conservative financial
profile relative to KIJA.

Japfa, the second-largest poultry company in Indonesia, has a
larger operating scale and better market position than CTRA.
Fitch thinks that CTRA's wider profit margin is more than offset
by Japfa's superior financial profile and the less cyclical
nature of the poultry industry overall.

Fitch views that Sritex and CTRA have similar credit profiles, as
Sritex's more vertically integrated business model is offset by
CTRA's higher EBITDAR margin; both have similar EBITDAR and
leverage profiles, with equally established track records in
their respective industries. Relative to PB, CTRA has a more
sound financial profile, evident from the latter's wider profit
margin and lower leverage. PB is also exposed to significant
working capital risks given its weak bargaining power with its
customers, which leads to weaker CFO generation. These factors
explain the one-notch rating difference between the two
companies.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer:

  - Attributable presales of IDR5.5 trillion-6 trillion a year
    in 2018-2019

  - Discretionary land acquisitions of IDR750 billion-800 billion
    in 2018-2019

  - Construction capex of around IDR3.5 trillion annually in
    2018-2019

RATING SENSITIVITIES

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

  - Attributable presales reaching a minimum of IDR10 trillion
    a year on a sustained basis

  - Growth in investment properties and hotel assets such that
    non-development gross profit increases to more than IDR1.5
    trillion a year (2017: IDR927 billion), with the five largest
    properties accounting for less than 50% of non-development
    gross profit

  - Non-development gross profit net interest cover ratio
    sustained above 3.0x

  - Leverage, as measured by net adjusted debt/adjusted
    inventory, sustained below 30%

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

  - Non-development gross profit/net interest expense falling
    below 2.0x on a sustained basis

  - Leverage, as measured by net adjusted debt/adjusted
    inventory, rising above 40% on a sustained basis

  - Weakening in legal and operational ties between the parent
    and the operational subsidiaries

Fitch has changed the interest cover calculation to gross profit
from non-development property assets, from revenue from non-
development assets, as gross profit is a closer proxy to cash
flows available to service debt than revenue. Fitch has also
changed the attributable presales required for a positive rating
action to IDR10 trillion from IDR7 trillion to make it consistent
with other similarly rated peers in Fitch's portfolio.

LIQUIDITY

Sufficient Liquidity: As of June 30, 2018, CTRA has around IDR3
trillion of readily available cash, compared with around IDR1.6
trillion of short-term debt maturities. Fitch expects CTRA to be
able to roll over the about IDR1 trillion of short-term working
capital facilities, given CTRA's established track record and
strong domestic operating profile as a leading property developer
in Indonesia.

CTRA's capex in the short term is largely made up of construction
costs, which are depend on meeting sales thresholds in the
current period. This, coupled with the discretionary nature of
land acquisitions, may allow the company to accumulate cash and
shore up its liquidity profile. Liquidity is also supported by
CTRA's access to local banks and capital markets. Fitch forecasts
CTRA's liquidity ratio to be around 1.3x in the 12 months to June
30, 2019.

FULL LIST OF RATING ACTIONS

PT Ciputra Development Tbk

  - Long-Term Issuer Default Rating affirmed at 'BB-'; Outlook
    Stable

  - SGD150 million 4.85% senior unsecured bond affirmed at 'BB-'

PT Ciputra Residence

  - National Long-Term Rating affirmed at 'A+(idn)'; Outlook
    Stable

  - Senior unsecured rating affirmed at 'A+(idn)'

  - IDR300 billion bond with partial credit guarantee affirmed
    at 'AA-(idn)'



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


ASAHI MUTUAL: Fitch Rates US$430MM Subordinated Bonds 'BB'
----------------------------------------------------------
Fitch Ratings has assigned Asahi Mutual Life Insurance Company's
(Asahi Life; Insurer Financial Strength: BBB-(Good)/Stable)
USD430 million 6.5% step-up callable cumulative perpetual
subordinated bonds with interest-deferral options a final rating
of 'BB'. The issuance ranks pari passu with Asahi Life's
outstanding Fitch-rated US dollar subordinated bonds and is rated
at the same level as the outstanding bonds.

The issue will be callable after five years, at which point there
will be a 100bp coupon step-up feature.

The assignment of the final rating follows the receipt of
documents conforming to the information previously received. The
final rating is the same as the expected rating assigned on
August 27, 2018.

KEY RATING DRIVERS

The subordinated bonds are rated one notch below Asahi Life's
Long-Term IDR (BB+/Stable) to reflect its baseline assumption of
below-average recovery.

The bonds include a mandatory interest-deferral feature on a
cumulative basis, which is triggered when Asahi Life's statutory
solvency margin ratio (SMR) falls below the regulatory capital
requirement of 200% on a consolidated or non-consolidated basis
or on the issuance of an order of prompt corrective action by
Japan's Financial Services Agency. The company's SMR was 803% on
a non-consolidated basis and 809% on consolidated basis at end-
June 2018. Fitch classifies the interest-deferral feature on this
instrument as minimal non-performance risk, with no additional
notching applied, in line with its notching criteria.

The subordinated bond is classified as 100% capital within
Fitch's risk-based capitalisation.

It is classified as 50% capital for the agency's financial
leverage calculations, according to Fitch's methodology. This is
because, under the current regulation, Japanese insurers are
required to issue at least the same amount of perpetual
subordinated debt of the same (or better) quality when the
company redeems perpetual subordinated debt. Fitch therefore
regards Japanese insurers' perpetual subordinated debt as having
economically perpetual characteristics, even if they have call
dates with step-ups.

Fitch expects Asahi Life's financial leverage of around or below
30% at end-December 2018 to improve and its interest coverage to
remain adequate, as the company plans to redeem its existing
subordinated loans and/or foundation funds so it can enhance
capitalisation quality.

RATING SENSITIVITIES

A rating upgrade may arise from further strengthening of
capitalisation and a decline in financial leverage to well below
35% for a sustained period, and sustainable growth in the third-
sector business while maintaining profitability.

A rating downgrade may arise from major erosion of
capitalisation, financial leverage above 42%, or a significant
deterioration in profitability, such as the core profit margin
falling below 5%, for a sustained period.


DROP: Animation Studio Files for Bankruptcy
-------------------------------------------
Crystalyn Hodgkins at Anime News Network reports that the Tokyo
Shoko Research, Ltd. (TSR) credit reporting agency said on
August 31 that animation studio drop suspended its activities on
August 24, and filed for bankruptcy through a lawyer. An
investigation is underway to determine the company's debt, the
report says.

The company was founded in August 2004, and currently has 30
employees. While the main business was video production through
animation, the company also worked on live-action, CG, Flash
content, pre-production, manga planning, sound direction,
planning, web design, and other work. In fiscal year ending in
July 2009 the studio had total sales of JPY220 million, the
report discloses.

Anime News Network says the company has been involved with
hundreds of anime projects for in-between animation, finish
animation, key animation, photography, and paint. The studio
handled animation production cooperation on Golgo 13, Noein - to
your other self, Tetsuko no Tabi, and Zoids Wild. drop also
handled the main animation for the Uchurei anime series.

drop additionally worked on the original animation Chikyu Boei
Taxi (Earth Defense Taxi). The company also worked on commercials
for Nissin, SUNTORY, Samantha Thavasa, and Tiffany & Co., as well
as music videos for YUZU, SEKAI NO OWARI, GLAY, Perfume, GReeeeN,
and Ringo Sheena.

The report relates that the studio most recently animated the
Glamorous Heroes and the Lights of the Clione television anime
series in 2017. Since then, sales have decreased, labor and
management costs created pressure, and profits have been
sluggish. Anime News Network adds that the company had low
fundraising, and because it could not anticipate any improvement
in its business, it suspended operations and decided to file for
bankruptcy.


KEFIR INC: Goes Bankrupt After Attracting Thousands of Investors
----------------------------------------------------------------
The Japan Times reports that Kefir Inc. went bust after
attracting tens of thousands of investors by promising future
returns if they paid to become "owners" of its products.

According to the Japan Times, Kefir Inc. said the Tokyo District
Court has accepted an application by the company and its three
units to start bankruptcy proceedings. The four companies
together have liabilities of JPY105.3 billion (US$949 million),
with 33,000 creditors.

The Japan Times notes that the bankruptcy announcement came after
the Consumer Affairs Agency warned on Aug. 31 of potential
massive consumer damage by the Kefir group after receiving more
than 1,400 consultations over its businesses over the past year.

Kefir, which started in 1992 as a yogurt-seller, had expanded its
business areas over the years to other food products such as
maple syrup and dried persimmons. It had been involved in solar
and biomass power generation and the development of
ultralightweight vehicles in recent years, according to the
company website.

The firm sold food products through both mail order and a
membership website, and used a system under which a person is
asked to pay to become an owner of its food-selling business with
the promise of getting the money back with interest a few months
later, the report relates.

But many of its businesses have remained sluggish and a system
glitch has led to payment delays, prompting many members to
terminate their contracts - which in turn has lead to further
deterioration of the businesses, the company, as cited by the
Japan Times, said.

According to the report, lawyers have formed a group for those
affected, and revealed at a gathering on Sept. 2 the group is
planning to file a criminal complaint against the Kefir group on
suspicion of fraud or violation of the investment law.

Tokyo-based Kefir Inc. sells yogurt, dried fruit and other food
products.



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


ADVIVA DISTRIBUTION: Faces Termination Notice Over Rent Default
---------------------------------------------------------------
Sabana Real Estate Investment Management Pte. Ltd., as manager of
Sabana Shari'ah Compliant Industrial Real Estate Investment Trust
("Sabana REIT", and as manager of Sabana REIT, the "Manager"),
refers to 10 Changi South Street 2, Singapore 486596 (the
"Property"), which is currently leased to Adviva Distribution
Pte. Ltd. (the "Tenant") under a lease agreement dated Dec. 15,
2014 as supplemented by a supplemental lease agreement dated 30
November 2017 (collectively, the "Lease Agreement"), between HSBC
Institutional Trust Services (Singapore) Limited, in its capacity
as trustee of Sabana REIT, and the Tenant.

The Manager announced that it has issued a notice of termination
to the Tenant, arising from the Tenant's failure to pay rent and
other sums payable under the Lease Agreement.

Currently, rental arrears in the sum of SGD2,137,242.66 are due
and outstanding from the Tenant. Sabana REIT intends to set off
the outstanding rental arrears and damages owed to it by the
Tenant against the total monies of SGD3,580,226.66 held by Sabana
REIT in relation to the Property, which comprises the security
deposit provided by the Tenant and other amounts that may be
payable to the Tenant for works done on the Property.

"To safeguard the interests of its stakeholders, the Board of
Directors of the Manager has sought legal advice in relation to
this matter and two letters of demand were issued to the Tenant
on July 12, 2018 and Aug. 8, 2018. The Manager continues to
explore all legal options to seek full compensation arising from
the breach of the Lease Agreement. Further, the Manager has
already shortlisted, and is in active negotiations with,
prospective replacement tenants for the Property, subject to the
JTC Corporation's approval," Sabana REIT said.

"The Property contributed approximately 6.5% of Sabana REIT's
gross revenue for the second quarter ended June 30, 2018. Should
the lease be terminated, with no suitable approved replacement
tenant after setting off against the security deposit and other
amounts as referred to above, and Sabana REIT assumes all
outgoings and expenses associated with the Property, there could
be a negative impact on Sabana REIT's distribution per unit of
approximately 0.05 cents in the fourth quarter of 2018.

"At this juncture, no writebacks are expected for the revenue
already booked under the Property, nor are impairment expenses
necessary for the coming quarter. The Manager continues to
proactively work to resolve the matter with the Tenant, while
concurrently seeking a suitable replacement tenant.
The Manager will, in compliance with its obligations under the
Listing Manual of Singapore Exchange Securities Trading Limited
(the "SGX-ST"), make the relevant announcements on SGXNET as and
when there are material developments in this matter.

"In the meantime, unitholders of Sabana REIT are advised to
exercise caution when dealing in the units of Sabana REIT," it
added.


OUE LIPPO: Former Executive Director Serves Court Documents
-----------------------------------------------------------
The Business Times reports that OUE Lippo Healthcare has been
served with court documents by its former executive director, Lim
Beng Choo, following Ms. Lim's commencement of court proceedings
against the company on Aug. 15, 2018, over unpaid dues.

According to the report, OUE Lippo said Ms. Lim is claiming for a
sum of $90,000, being the alleged aggregate of her three months'
salary in lieu of notice, a sum of $72,000 being the alleged
encashment of her unconsumed leave, and further damages to be
assessed in respect of her alleged constructive dismissal by OUE
Lippo.

"The company is consulting its legal advisers and will instruct
them on the appropriate action to take on behalf of the company.
The company will update shareholders as appropriate in due
course," the filing said, which was signed by OUE Lippo's chief
executive officer and executive director Wong Weng Hong, BT
relays.

Separately, the company, which develops healthcare facilities in
Japan and China, announced that David Lin Kao Kun has withdrawn
his case against the company in China, with the Pudong Court
approving Mr. Lin's request on Aug. 21, 2018.

"The board is advised that the proceedings have thus concluded
and no further action is required by the company," OUE Lippo
said.

OUE Lippo Healthcare saw its loss for the second quarter ended
June 30 narrow year-on-year to SGD2.9 million from SGD20.6
million, due to the absence of an impairment loss incurred in the
year-ago period.


                             *********

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.



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