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

                     A S I A   P A C I F I C

          Monday, October 7, 2019, Vol. 22, No. 200

                           Headlines



A U S T R A L I A

BRANCOURTS MANUFACTURING: 2nd Creditors' Meeting Set for Oct. 15
FREEZE EXPRESS: First Creditors' Meeting Set for Oct. 14
KELJON (NSW): First Creditors' Meeting Set for Oct. 15
LITTLE TAMMY: Second Creditors' Meeting Set for Oct. 15
MCKENZIE BOND: Second Creditors' Meeting Set for Oct. 14

TAWANA GOLD: Second Creditors' Meeting Set for Oct. 10


C H I N A

HELENBERGH CHINA: Fitch Assigns B+ LT IDR, Outlook Stable
YANGO GROUP: S&P Affirms 'B' Issuer Credit Rating, Outlook Stable


I N D I A

BRIGHTSTAR HEALTHCARE: CRISIL Withdraws B Rating on INR30cr Loan
CADCHEM LABORATORIES: CRISIL Cuts Rating on INR7.25cr Loan to D
DHANASHREE ELECTRONICS: CRISIL Keeps B+ Rating in Not Cooperating
DO ALL: CRISIL Migrates B Rating to Not Cooperating Category
GOEL COAL: CRISIL Lowers Rating on INR9cr Loan to B+, Not Coop.

HIMACHAL HYDEL: CRISIL Moves B- Rating from Not Cooperating
JAI AMBE: CRISIL Withdraws B+ Rating on INR9cr Cash Loan
JAYPEE INFRATECH: In Insolvency but 'in Good Health," Chair Says
KISHORE G: CRISIL Maintains B+ Rating in Not Cooperating Category
OMC POWER: CRISIL Migrates B- Rating from Not Cooperating

PARA ENTERPRISES: CRISIL Keeps D Rating in Not Cooperating
PRAGATI ELECTROCOM: CRISIL Withdraws B+ Rating on INR10cr Loan
R. L. INDUSTRIES: CRISIL Withdraws B+ Rating on INR7cr Loan
RAGA COMMODITIES: CRISIL Assigns B Rating to INR16.4cr LT Loan
RAIRESHWAR PACKAGING: CRISIL Assigns B+ Rating to INR5cr Loan

SHARP TANKS: CRISIL Withdraws B+ Rating on INR7cr Cash Loan
SHIV SHANKER: CRISIL Maintains B+ Rating in Not Cooperating
SHREEJEE COTEX: CRISIL Withdraws B+ Rating on INR3.5cr Loan
SRI LAKSHMI: CRISIL Migrates B+ Rating from Not Cooperating
SWASTIK FURNACES: CRISIL Withdraws D Rating on INR8.5cr Loan

TARSUN STEELS: CRISIL Lowers Rating on INR6.5cr Cash Loan to B+
VINOTH DISTRIBUTORS: CRISIL Moves B+ Rating from Not Cooperating
ZNA INFRA: CRISIL Migrates B+ Rating to Not Cooperating Category


M A L A Y S I A

KINSTEEL BHD: Deadline to Submit Revamp Plan Extended to Dec. 31
PRESS METAL: Moody's Affirms Ba3 CFR, Alters Outlook to Neg.
SUMATEC RESOURCES: Has Until Oct. 29 to Submit Regularization Plan


N E W   Z E A L A N D

FE INVESTMENTS: S&P Affirms 'B/B' ICRs Following Capital Injection


S I N G A P O R E

CHINESE GLOBAL: Receives Statutory Demand from Former CFO
HYFLUX LTD: SMI Can Countersue for SGD39MM in Escrow, Court Rules
TRIYARDS HOLDINGS: Receives Statutory Demand from OCBC


S O U T H   K O R E A

[*] 50% of 6-Year Old Restaurants in Seoul Go Bust as of Sept.


S R I   L A N K A

IDEAL FINANCE: Fitch Places B+(lka) Nat'l. LT Rating on Watch Pos.


V I E T N A M

NUTIFOOD NUTRITION: Fitch to Assign B+(EXP) Long-Term IDR
NUTIFOOD NUTRITION: S&P Assigns Prelim 'B' ICR, Outlook Stable


X X X X X X X X

SOLOMON ISLANDS: Moody's Affirms B3 Issuer Ratings, Outlook Stable

                           - - - - -


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

BRANCOURTS MANUFACTURING: 2nd Creditors' Meeting Set for Oct. 15
----------------------------------------------------------------
A second meeting of creditors in the proceedings of Brancourts
Manufacturing and Processing Pty Ltd, Brancourt Dairy Pty Ltd and
Brancourts Staff Pty Ltd has been set for Oct. 15, 2019, at 11:00
a.m. at UNSW CBD Campus, Level 6, at 1 O'Connell Street, in Sydney,
NSW.

The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 11, 2019, at 4:00 p.m.

Mark Roufeil, Bradley John Tonks and Simon Thorn of PKF were
appointed as administrators of Brancourts Manufacturing on Sept. 9,
2019.

FREEZE EXPRESS: First Creditors' Meeting Set for Oct. 14
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Freeze
Express Pty Ltd will be held on Oct. 14, 2019, at 10:00 a.m. at the
offices of CPA Australia, Level 3, at 111 Harrington Street, in
Sydney, NSW.  

Nicarson Natkunarajah -- nic.raja@rogerandcarson.com.au -- of Roger
& Carson was appointed as administrator of Freeze Express on Oct.
1, 2019.

KELJON (NSW): First Creditors' Meeting Set for Oct. 15
------------------------------------------------------
A first meeting of the creditors in the proceedings of Keljon (NSW)
Pty Ltd, trading as The Commercial Hotel Young, will be held on
Oct. 15, 2019, at 3:00 p.m. at the offices of Veritas Advisory,
Level 5, at 123 Pitt Street, in Sydney, NSW.

Vincent Pirina and Steve Naidenov of Veritas Advisory were
appointed as administrators of Keljon (NSW) on Oct. 2, 2019.

LITTLE TAMMY: Second Creditors' Meeting Set for Oct. 15
-------------------------------------------------------
A second meeting of creditors in the proceedings of Little Tammy
Pie Factory Pty Ltd has been set for Oct. 15, 2019, at 2:00 p.m. at
the offices of Chifley Advisory, Suite 1903, Level 19, at 31 Market
Street, in Sydney, NSW.

The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 14, 2019, at 4:00 p.m.

Gavin Moss of Chifley Advisory was appointed as administrator of
Little Tammy on Sept. 9, 2019.

MCKENZIE BOND: Second Creditors' Meeting Set for Oct. 14
--------------------------------------------------------
A second meeting of creditors in the proceedings of Mckenzie Bond
Pty Ltd has been set for Oct. 14, 2019, at 2:30 p.m.

For creditors based in New South Wales, the meeting will be held
at:

     Chartered Accountants Australia
     Level 9, Burke and Wills Rooms
     33 Erskine Street
     Sydney, NSW

For creditors who are based in Victoria, the meeting will be held
at:

     Chartered Accountants Australia
     Training Room 4
     Level 18, Bourke Place
     600 Bourke Street
     Melbourne, VIC

The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 11, 2019, at 4:00 p.m.

Richard Rohrt and Stephen Dixon of Hamilton Murphy were appointed
as administrators of Mckenzie Bond on Sept. 9, 2019.

TAWANA GOLD: Second Creditors' Meeting Set for Oct. 10
------------------------------------------------------
A second meeting of creditors in the proceedings of Tawana Gold Pty
Ltd, Waba Holdings Pty Ltd and Alliance Mineral Assets Exploration
Pty Ltd has been set for Oct. 10, 2019, at 11:30 a.m. at the
offices of KordaMentha, Level 10, at 40 St Georges Terrace, in
Perth, WA.

The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Oct. 9, 2019, at 4:00 p.m.

Richard Tucker of Kordamentha was appointed as administrator of
Tawana Gold on Aug. 28, 2019.



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

HELENBERGH CHINA: Fitch Assigns B+ LT IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings assigned China-based homebuilder Helenbergh China
Holdings Limited a Long-Term Foreign-Currency Issuer Default Rating
of 'B+'. The Outlook is Stable. Fitch has also affirmed subsidiary
Guangdong Helenbergh Real Estate Group Co., Ltd.'s Long-Term
Foreign-Currency IDR at 'B+' with a Stable Outlook. Fitch rates
both companies on a consolidated basis and they are collectively
referred to as Helenbergh.

Helenbergh's leverage, defined by net debt/adjusted inventory, rose
to 50% by end-2018 but Fitch expects it to drop to 45%-50% in 2019,
mainly due to a lower cash outflow from land acquisitions and an
improvement in the cash collection rate of contracted sales
proceeds. Fitch will closely monitor Helenbergh's financial profile
and may consider negative rating action if its leverage fails to
improve as expected.

Helenbergh's diversified land bank in five regions in China
supports its rating and mitigates the weaker-than-peer quality of
its land bank, which is located mostly in tier-2 and tier-3 cities.
Its contracted sales scale of about CNY40 billion a year and EBITDA
margin (after adding back capitalised interest in cost of goods
sold) of 20%-25% are sufficient for a 'B+' rating.

KEY RATING DRIVERS

Sufficient Land Bank Allows Deleveraging: Helenbergh's leverage of
about 50% is at the higher end among its peers in the 'B+' category
due to its aggressive land-bank acquisitions in 2018. Its land-bank
life of about fourto five years may 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. The company may also reduce its leverage after a planned
IPO on the Hong Kong stock exchange, which has not been reflected
in its rating-case assumptions due to market uncertainties.

Diversified Land-Bank Locations: Helenbergh had an attributable
land bank of 23.7 million sq m at end-January 2019, which was
well-diversified in the Pearl River Delta, western China, Yangtze
River Delta, central China and Jing-Jin-Ji Region, although 40% of
the land bank was focused on Guangdong province. The company
acquired more land in 2018 to support its fast sales-churn
strategy. Helenbergh has sufficient land bank for about fourto five
years of development. Fitch expects its contracted sales to rise
about 20% to CNY43 billion in 2019, mainly driven by an increase in
the gross floor area sold, after a gain of 40% to CNY36 billion in
2018.

Low-Cost Land Bank: The company obtains its land bank mainly
through acquisitions, public auctions and redevelopment of old
cities, which enabled it to buy land at low costs. Helenbergh held
2.2 million sq m of industrial land, which can be used for the
development of industrial parks or converted into commercial land,
and 2.8 million sq m of land for two urban-redevelopment projects,
in addition to its 23.7 million sq m of land bank. Helenbergh's
average cost of land acquisition was CNY1,657 per sq m during
2016-2018, which accounted for only 15% of its contracted average
selling price (ASP) of around CNY11,000 per sq m in 2018.

Balanced Profitability and Churn: Helenbergh's EBITDA margin was
22% in 2018 (after adding back capitalised interest), thanks to its
low-cost land bank. Fitch expects the average cost of the land bank
to account for 15%-20% of its residential ASP, which will enable
the company to sustain an average EBITDA margin of 20%-25%. Fitch
expects its sales churn, indicated by its contracted sales/total
debt, to be maintained above 1.2x due to its sufficient land bank
and saleable resources.

Improving Financial Transparency: Helenbergh has filed the
application for its IPO with full public disclosure of its
financial information. The company's corporate governance has
improved with independent non-executive directors making up
one-third of its board. Fitch expects an improvement in the
timeliness of Helenbergh's financial disclosure to offshore
investors after the completion of its IPO.

DERIVATION SUMMARY

Helenbergh's business and financial profile is comparable with that
of its 'B+' peers such as Hong Kong JunFa Property Company Limited
(B+/Stable). Both companies have exposure to redevelopment
projects. Helenbergh has a larger scale and better regional
diversification in its land bank and faster sales churn than Junfa,
although Helenbergh has slightly higher leverage and a lower EBITDA
margin than Junfa. Its leverage ratio of around 43%, defined by net
debt/adjusted inventory, is comparable with that of peers with a
larger scale rated at 'B+', but Helenbergh has faster sales churn
and a longer land bank life among the peers.

Helenbergh's leverage is higher than that of most of its 'BB-'
peers with a similar scale such as Times China Holdings Limited
(BB-/Stable) and Yuzhou Properties Company Limited (BB-/Stable),
which have leverage of 40%-45%. Its leverage is also comparable
with that of some 'BB-' peers such as Ronshine China Holdings
Limited (BB-/Stable).

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 2019-2021 (CNY36 billion in 2018)

  - Contracted ASP at CNY11,500-12,000 per sq m in 2019-2021
(CNY11,281 in 2018)

  - Attributable land premium accounting for about 30% of
attributable contracted sales in 2019-2021 (46% in 2018)

  - EBITDA margin (after adding back capitalised interest) of
20%-25% in 2019-2021 (22% in 2018)

RATING SENSITIVITIES

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

  - Contracted sales/total debt sustained at 1.3x or above (2018:
1.3x)

  - EBITDA margin (after adding back capitalised interest)
sustained at 20% or above (2018: 22%; 1H19: 23%)

  - Leverage (net debt/adjusted inventory) sustained below 40%
(2018: 50%; 1H19: 43%)

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

  - Failure to improve financial transparency to public investors,
including regular disclosure of full financial information

  - EBITDA margin (after adding back capitalised interest)
sustained below 15%

  - Net debt/adjusted inventory sustained above 50%

LIQUIDITY

Sufficient Liquidity: Helenbergh had cash of CNY10.8 billion
(including restricted cash of CNY6 billion) at end-2018, which was
sufficient to cover short-term debt of CNY9.4 billion. The company
also has an offshore USD1 billion bond quota approved by the
National Development and Reform Commission in February 2019, which
will last till December 2019. The company can use the restricted
cash for construction expenditure as the funds are mainly
restricted to guaranteeing mortgages for customers.

Helenbergh had total cash of CNY16.6 billion in 1H19, including
restricted cash of CNY7.6 billion, which was sufficient to cover
short-term debt of CNY 9.7 billion. It also had unused bank
facilities of CNY 4.7 billion.

YANGO GROUP: S&P Affirms 'B' Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
On Oct. 4, 2019, S&P Global Ratings affirmed its 'B' long-term
issuer credit rating for Yango Group Co. and Fujian Yango Group Co.
Ltd. S&P also affirmed the 'B-' long-term issue rating on senior
unsecured notes both the companies guarantee.

S&P said, "We raised our assessment of Yango's SACP because we
expect the company to continue to improve its market position and
operating scale through solid sales execution and disciplined
expansion. This will also lead to a more controlled leverage and a
more balanced capital structure. However, we affirmed the issuer
credit ratings on Yango because the rating is constrained by the
weaker credit profile of the company's parent.

"We believe Yango will continue to enhance its competitive position
in its chosen markets, with increasing geographic diversity." The
company is expanding into tier-two cities in Yangtze River Delta,
where the property market is performing better than in the rest of
the country in the current cycle. Yango has substantially enlarged
its business scale with presence in more than 80 cities across
various regions as of June 30, 2019. More than 85% of the company's
land reserves are in tier-one and tier-two cities, although its
projects are more in the outskirts of these cities where there are
more opportunities to obtain land. Apart from its market leadership
in the home market in the Greater Fujian area, Yango has achieved
top-five or top-10 positions by total contracted sales in other
strategic cities such as Hangzhou, Guangzhou, and Xi'an.

Yango's profitability should help the company to sustain the
enhancement of its business standing. Yango's EBITDA margin has
been stable at 28%-30% since 2017, on the back of good sales
execution and cost control. While S&P forecasts the margin will
edge down to 26%-28% over the next one to two years on increased
competition and higher land costs, the impact should be tempered by
rather resilient demand in higher-tier cities.

In addition, Yango's improving geographic diversity should lower
volatility in earnings in the longer term. The Greater Fujian area
contributed about 18% of total contracted sales for the first half
of 2019, from about 26% for 2017, while the Yangtze River Delta
region accounted for about 36%, from 2017's 29%.

S&P expects Yango's deleveraging to continue, although the
company's leverage should still be high and constrain the credit
profile. The trend will be supported by the company's intention to
have a more measured growth rate over the next 24 months, after
high double-digit growth over the past few years.

S&P said, "Yango is likely to control its pace of land
acquisitions. We forecast the company will maintain the ratio of
land acquisition to proceeds from contracted sales at 45%-50% over
the next one to two years. We view this ratio as reasonable, given
the more volatile market and the company's ongoing effort to
deleverage. Yango significantly lowered its cash spending on land
replenishment in 2018 to about 48% of proceeds from property sales,
from about 80% in 2016-2017. We expect Yango's debt-to-EBITDA ratio
to improve to below 6x in 2020, from 7.1x at the end of 2018.

"We anticipate Yango's alternative financing will stay at 20%-30%
of total debt in the next one to two years and help to moderate the
company's funding cost and refinancing risks." Yango has been
proactively replacing alternative financing exposure with bank
loans and capital market issuances. As of June 30, 2019, about 30%
of the company's reported debt comprised alternative financing,
primarily trust loans. This compares with 52% as at end-2018.
Yango's capital structure has become more balanced as a result.

However, the rating on Yango is constrained by the credit profile
of Fujian Yango, the largest shareholder. The affirmed rating on
Fujian Yango reflects its weak and volatile profitability and cash
flow from non-development segments, and its tight stand-alone
liquidity (excluding Yango and another listed subsidiary, Fujian
Longking Co. Ltd. [Longking]).

S&P said, "We anticipate Fujian Yango's non-development
activities--namely trading, environmental business, and education
services--will remain smaller, less cash-generative, and less
profitable than its core property development business through
Yango. This is despite some improvement over the past 18 months.
The parent group's EBITDA margin will likely stay at 20%-21% over
the next one to two years. Despite their insignificant contribution
to net cash flow, the non-property businesses carry a considerable
amount of debt, totaling Chinese renminbi (RMB) 18 billion as of
June 30, 2019.

"We expect Fujian Yango's stand-alone liquidity to remain tight
over the next 12-24 months. The company's ratio of liquidity
sources to liquidity uses has been 1.0x-1.2x, based on the
expectation that its outstanding trade finance credit lines with
banks will keep rolling over when due. One of the root causes of
Fujian Yango's weaker stand-alone liquidity is the limited amount
of dividend payout by Yango (just about RMB1 billion in 2018). As
such, Fujian Yango has to rely on asset disposals and proceeds from
financial investments to meet its short-term liquidity needs. While
we believe the company's debt serviceability and liquidity will
remain manageable in the short-term, lower visibility over a longer
time frame weighs on its credit profile."

YANGO GROUP CO. LTD.

S&P said, "The stable outlook on Yango reflects our view that the
company will control its pace of land acquisitions, such that the
improvement in debt leverage will sustain over the next 12 months.
The rating on Yango will remain constrained by the parent's weaker
creditworthiness.

"We could lower the rating on Yango if we downgrade Fujian Yango.
That could be because of the weakening of the parent's stand-alone
liquidity, with sources falling below uses, or any major
debt-funded expansion that causes the parent's debt-to-EBITDA ratio
to sustainably exceed 10x.

"We could lower our assessment of Yango's SACP if the company's
leverage deteriorates, such that the debt-to-EBITDA ratio stays
above 7.0x for an extended period.

"We may raise the rating if we upgrade Fujian Yango.

An upgrade on the parent is possible if it sustainably improves its
stand-alone liquidity, while continuing to moderately deleverage,
possibly via strong sales execution and disciplined spending. An
indication of such improvement would be: (1) Fujian Yango's
stand-alone liquidity improving, indicated by the ratio of
liquidity sources to uses staying above 1.2x; and (2) the parent's
consolidated debt-to-EBITDA ratio staying less than 6.0x on a
sustained basis.

FUJIAN YANGO GROUP CO. LTD.

S&P said, "The stable outlook on Fujian Yango reflects our
expectation that the company's stand-alone liquidity will remain
tight but manageable through asset disposals and dividends from key
investments. We expect Fujian Yango to be prudent in acquisitions
in non-property segments and moderately reduce leverage over the
next 12 months, owing to improvements in the property segment.

"We may lower the rating if Fujian Yango's stand-alone debt
servicing ability or liquidity deteriorates. That could be due to
weaker stand-alone cash generation from dividends or asset
disposals, as indicated by the ratio of stand-alone liquidity
sources to uses staying below 1.0x. We may also lower the rating if
the company undergoes aggressive debt-funded expansion, such that
its debt-to-EBITDA ratio exceeds 10x.

"We may raise the rating if: (1) Fujian Yango's stand-alone debt
servicing ability and liquidity improve, such that the ratio of
liquidity sources to uses stays above 1.2x for an extended period;
and (2) the company's consolidated debt-to-EBITDA ratio stays below
6.0x on a sustained basis."

Yango is a large property developer in China. The company has an
established position in its home market in Fujian province, with a
growing presence in major city clusters in the country. Yango
mainly focuses on mass-market customers primarily across tier-one
and tier-two cities. Fujian Yango is the largest shareholder in
Yango. Together with its acting-in-concert partners, the parent
holds 44.5% of Yango's outstanding shares.

Fujian Yango engages in property development, education services,
and commodities trading in China. It also has a majority
shareholding in an environmental services company and investments
in some financial services companies. Fujian Yango's property
segment is the key revenue and profit generator. The business is
operated under Yango. The environment business is under Longking,
which was acquired in 2017. Fujian Yango is the single largest
shareholder in Longking with a 25.04% shareholding. Fujian Yango
plans to gradually increase its stake in Longking to about 30% in
the next few years.




=========
I N D I A
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BRIGHTSTAR HEALTHCARE: CRISIL Withdraws B Rating on INR30cr Loan
----------------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of
Brightstar Healthcare Private Limited (BHPL) on the request of the
company and after receiving no objection certificate from the bank.
The rating action is in-line with CRISIL's policy on withdrawal of
its rating on bank loan facilities.

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Term Loan              30       CRISIL B/Stable (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

CRISIL has been consistently following up with BHPL for obtaining
information through letters and emails dated August 8, 2018,
October 1, 2018 and September 25, 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 BHPL. This restricts CRISIL's
ability to take a forward looking view on the credit quality of the
entity. CRISIL believes that the information available for BHPL 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, CRISIL
has Continues the ratings on the bank facilities of BHPL to 'CRISIL
B/Stable Issuer not cooperating'.

CRISIL has withdrawn its rating on the bank facilities of BHPL on
the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.

Incorporated in November 2012, BHPL is setting up a 200-bed
multispecialty hospital in Moradabad, Uttar Pradesh and its
commercial operations are expected to commence from April 2018.


CADCHEM LABORATORIES: CRISIL Cuts Rating on INR7.25cr Loan to D
---------------------------------------------------------------
CRISIL has downgraded the ratings on bank facilities of Cadchem
Laboratories Limited (CLL) to 'CRISIL D/CRISIL D Issuer Not
Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit           7.25       CRISIL D (ISSUER NOT
                                    COOPERATING; Downgraded from
                                    'CRISIL B+/Stable ISSUER NOT
                                    COOPERATING')

   Long Term Loan        4.30       CRISIL D (ISSUER NOT
                                    COOPERATING; Downgraded from
                                    'CRISIL B+/Stable ISSUER NOT
                                    COOPERATING')

   Non-Fund Based        3.25       CRISIL D (ISSUER NOT
   Limit                            COOPERATING; Downgraded from
                                    'CRISIL A4/Stable ISSUER NOT
                                    COOPERATING')

CRISIL has been consistently following up with CLL for obtaining
information through letters and emails dated February 26, 2019 and
June 24, 2019 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 CLL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on CLL is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' category or lower'.

Based on the last available information, the ratings on bank
facilities of CLL downgraded to  'CRISIL D/CRISIL D Issuer Not
Cooperating' from 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'. It was recently brought to CRISIL's attention that
there is continuous delay in debt serving of term loan principal
and interest for the last three months.

Incorporated in 1985 as Chandigarh Drugs Pvt Ltd, CLL began
commercial production in 1988 and got its current name in 1995. It
manufactures APIs for use in pain killers and blood thinning
agents. The company's facility is in Chandigarh. Operations are
managed by Mr Navneet Gupta.

DHANASHREE ELECTRONICS: CRISIL Keeps B+ Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Dhanashree
Electronics Limited (DEL; part of the Ladhuram Toshniwal group)
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            5         CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING)

   Letter of Credit      10         CRISIL A4 (ISSUER NOT
                                    COOPERATING)

   Proposed Cash          5         CRISIL B+/Stable (ISSUER NOT
   Credit Limit                     COOPERATING)

CRISIL has been consistently following up with DEL for obtaining
information through letters and emails dated February 26,2019 and
August 31,2019 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 DEL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DEL 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 ratings on bank
facilities of DEL continues to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.

Incorporated in 1989 as Rashmi Chock Pvt Ltd and reconstituted as a
public limited company in 1997 with the current name, DEL
manufactures lighting products and trades in audio and lighting
products. The company has also obtained distributorship of the
Music group for sales of audio equipment and products in India. It
also earns income through lease rentals. DEL has also started
manufacturing LED bulbs, street lamps, panel lights, solar lamps,
and flood lights.

LTS deals in electrical products such as tubes, lamps, luminaries,
fans, and cable accessories. Around 85% of revenue comes from PIL's
products.

DO ALL: CRISIL Migrates B Rating to Not Cooperating Category
------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Do All
Engineering Industries (DOALEI) to 'CRISIL B/Stable/CRISIL A4
Issuer not cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Bank Guarantee         3         CRISIL A4 (ISSUER NOT
                                    COOPERATING; Rating Migrated)

   Cash Credit            3         CRISIL B/Stable (ISSUER NOT
                                    COOPERATING; Rating Migrated)

   Proposed Long Term     4         CRISIL B/Stable (ISSUER NOT
   Bank Loan Facility               COOPERATING; Rating Migrated)

CRISIL has been consistently following up with DOALEI for obtaining
information through letters and emails dated September 17,2019 and
September 23,2019 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 DOALEI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on DOALEI 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 DOALEI to 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.

Set up in 1948, DOALEI is a partnership firm engaged in the
manufacturing of fruit processing machines like fruit washer,
gerkin washer, twin pulper, raw fruit handling line etc. DOALEI
currently operates its facility in yeshwantapura (Banglore) with an
installed capacity of processing around 15-20 machines per annum.
The operations of the firm are managed by its promoter Mr. B.N.S
Narayan.


GOEL COAL: CRISIL Lowers Rating on INR9cr Loan to B+, Not Coop.
---------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Goel Coal
Sizing Private Limited (GCSPL) to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB-/Stable Issuer not cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            9         CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

CRISIL has been consistently following up with GCSPL for obtaining
information through letters and emails dated
September 17, 2019 and September 23, 2019 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 GCSPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on GCSPL 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 ratings on bank
facilities of GCSPL Revised to be 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB-/Stable Issuer not cooperating'.

Incorporated in 2009 and promoted by Mr. Dindayal Goel, Mr. Arun
Goel, and Mr. Ashok Goel, GCSPL is based in Raipur and washes,
trades, and transports coal.

HIMACHAL HYDEL: CRISIL Moves B- Rating from Not Cooperating
-----------------------------------------------------------
Due to inadequate information and in line with Securities and
Exchange Board of India guidelines, CRISIL had migrated its rating
on the long-term bank facility of Himachal Hydel Projects Private
Limited (HHPPL) to 'CRISIL B-/Stable Issuer Not Cooperating'.
However, the management has subsequently started sharing the
information required for carrying out comprehensive review.
Consequently, CRISIL is migrating the rating to 'CRISIL B-/Stable'
from 'CRISIL B-/Stable Issuer Not Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Long Term Loan         36        CRISIL B-/Stable (Migrated
                                    from 'CRISIL B-/Stable
                                    ISSUER NOT COOPERATING')

The rating continues to reflect the company's dependence on
favorable climatic conditions for power generation and low plant
load factor (PLF) leading to reduced debt service coverage ratio
(DSCR). These weaknesses are partially offset by the company's
long-term power purchase agreement (PPA) with its customers.

Key Rating Drivers & Detailed Description

Weaknesses:

* Dependence on favourable climatic conditions for power
generation: The plant performance, which is dependent on the PLF,
is driven by climatic conditions. Though the geography in which the
plant operates has a conducive climate for operations, PLF varies
with changing seasons, thereby altering the generation and, hence,
the cash flow.

* Low PLF leading to reduced DSCR: On account of unfavourable
climatic conditions, PLF has remained low, leading to DSCR of less
than 1 time in the past. Though PLF has improved in fiscal 2020 (to
date), its sustenance should remain a key rating sensitivity
factor.

Strength:

* Long-term PPA with customers: The Company has entered into a
long-term arrangement of 40 years for a capacity of 7.5 megawatt
(MW) with Himachal Pradesh State Electricity Board at a tariff of
INR2.95 per unit. This should ensure sustained revenue generation.

Liquidity: Poor

Liquidity is poor. On account of low PLF, cash accrual stood
negative in 2019, with DSCR of below 1 time. Liquidity is supported
by unsecured loans provided by the promoters.

Outlook: Stable

CRISIL believes HHPPL will continue to benefit from its long-term
PPA with customers.

Rating sensitivity factors
Upward factors:
* DSCR improving to over 1 time
* Improvement in PLF leading to better-than-expected cash accrual

Downward factors
* Significant degradation in PLF leading to DSCR of below 1 time
* Unanticipated delays in receipts leading to cash flow mismatches

HHPPL generates hydropower through its 3-megawatt (MW) plant on
Tulang Nala in Chamba and 4.5 MW plant on Kurhed Nala in Chamba,
Himachal Pradesh, which commenced operations in March 2014. Both
streams are tributaries of River Ravi.

JAI AMBE: CRISIL Withdraws B+ Rating on INR9cr Cash Loan
--------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of Jai Ambe
Quality Sugar (JAQS) on the request of the company and after
receiving no objection certificate from the bank. The rating action
is in-line with CRISIL's policy on withdrawal of its rating on bank
loan facilities.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            9         CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Migrated from
                                    'CRISIL B+/Stable'; Rating
                                    Withdrawn)

CRISIL has been consistently following up with JAQS for obtaining
information through letters and emails dated September 18,2019 and
September 23,2019 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 JAQS. This restricts CRISIL's
ability to take a forward looking view on the credit quality of the
entity. CRISIL believes that the information available for JAQS 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, CRISIL
has migrated the ratings on the bank facilities of JAQS to 'CRISIL
B+/Stable Issuer not cooperating'.

CRISIL has withdrawn its rating on the bank facilities of JAQS on
the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.

JAQS was set up in August 2008 as a proprietorship firm by Mr
Akhilesh Goyal, who now manages daily operations. The firm trades
in sugar and has a cotton ginning unit at Shahada in Nandurbar
(Maharashtra). The Goyal family has experience of around four
decades in the sugar industry and around a decade in cotton
ginning.

JAYPEE INFRATECH: In Insolvency but 'in Good Health," Chair Says
----------------------------------------------------------------
The Press Trust of India reports that embattled Jaypee Group
Chairman Manoj Gaur on Sept. 26 said realty arm Jaypee Infratech
Ltd. is undergoing insolvency but "is in good health" and has
posted a growth in revenue in 2018-19.

According to the report, company officials said the company has
more assets than liabilities and hoped it will get the project to
deliver nearly 20,000 flats, which have got delayed by several
years leaving thousands of homebuyers in lurch.

Jaypee Infratech went into insolvency in August 2017 after the
National Company Law Tribunal admitted an application filed by an
IDBI Bank Ltd.-led consortium, PTI notes.

PTI says the group had to deliver 32,691 units to buyers under
various housing projects in Noida, of which 4,889 units were
completed before the start of insolvency proceedings. As many as
27,802 units remained incomplete by August 2017.

During the bankruptcy process, 7,278 units were completed, leaving
20,524 units to be delivered as on March 31, 2019 and latest 20,097
flats including 17,756 in Jaypee Wishtown remain to be delivered,
PTI says.

PTI relates that state-owned NBCC (India) Ltd. had made a proposal
to take over the mammoth project instead of the bankrupt Jaypee
group but the matter could not be resolved in the NCLT and the
National Company Law Appellate Tribunal and has now reached the
Supreme Court, which is due to hear the case on Oct. 17.

"During the year 2017-18, the gross revenue was INR62 crore which
grew to INR1,292.99 crore in 2018-19," PTI quotes Gaur, executive
chairman and chief executive officer of the group, as saying.  

"The toll revenue has grown from INR626 crore to INR640 crore.
During the last 24 months, 5,925 flats have been handed over.
Jaypee homebuyers' interest and faith are visible from the fact
that around 4,000 homebuyers have got their registries done, and
nearly 3,000 have shifted here (Noida)," he told the Annual General
Meeting, held at the Jaypee Institute of Information Technology in
Sector 128, PTI relays.

"The company is doing better. The performance is such that the
total cash inflow is over INR1,000 crore. While we are branded
under the IBC, the health of the company is good. Even today, as
per the group's proposal, within three years all houses will be
handed over," Gaur, as cited by PTI, said.

PTI adds that company's Chief Financial Officer Pramod Agarwal said
20,097 flats are yet to be delivered which it can do within 36
months if given a chance by the Supreme Court, where the matter is
being heard.

"We have total liabilities of INR9,783 crore while our assets,
including the Yamuna Expressway and tranches of land along it, are
well more than that. Assets estimated value would be more than
INR13,000 crore," Agarwal told PTI.

                       About Jaypee Infratech

Jaypee Infratech Limited (JIL) is engaged in the real estate
development.  The Company's business segments include Yamuna
Expressway Project and Healthcare.  The Company's Yamuna Expressway
Project is an integrated project, which inter alia includes
construction of 165 kilometers long six lane access controlled
expressway from Noida to Agra with provision for expansion to eight
lane with service roads and associated structures on build, own,
operate and transfer basis.  The Company provides operation and
maintenance of Yamuna Expressway for over 36 years, collection of
toll and the rights for development of approximately 25 million
square meters of land for residential, commercial, institutional,
amusement and industrial purposes at over five land parcels along
the expressway.  The Healthcare business segment includes
hospitals.  The Company has commenced development of its Land
Parcel-1 at Noida, Land Parcel-3 at Mirzapur and Land Parcel-5 at
Agra.

On Aug. 8, 2017, the National Company Law Tribunal (NCLT),
Allahabad bench accepted lender IDBI Bank's plea and classified JIL
as an insolvent company.  With this, the board of directors of the
company remains suspended.

Anuj Jain was appointed as Interim Resolution Professional (IRP) to
manage the company's business.  The IRP had invited bids from
investors interested in acquiring JIL and completing the stuck real
estate projects in Noida and Greater Noida.

In September 2017, the Supreme Court of India stayed the insolvency
proceedings initiated against JIL, after various associations of
homebuyers moved a batch of petitions fearing they will lose their
apartments and not get any compensation, according to Livemint. The
stay was later revoked by the court, which directed the resolution
professional to submit an interim resolution plan that takes into
account the interest of homebuyers.

The court also directed the parent company, Jaiprakash Associates
Ltd. (JAL), to deposit INR2,000 crore to protect the interest of
homebuyers.  Out of this, only INR750 crore has been deposited so
far, Livemint relayed.

JIL features in the Reserve Bank of India's first list of
non-performing assets accounts and had debt exposure of over
INR9,783 crore as of September 2017.  The parent company, JAL owes
more than INR29,000 crore to various banks, the report added.



KISHORE G: CRISIL Maintains B+ Rating in Not Cooperating Category
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Kishore G Lund (KGL)
continues to be 'CRISIL B+/Stable Issuer not cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            5.5       CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING)

CRISIL has been consistently following up with KGL for obtaining
information through letters and emails dated September 17,2019 and
September 23,2019 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 KGL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on KGL 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 ratings on bank
facilities of KGL continues to be 'CRISIL B+/Stable Issuer not
cooperating'.

Set up as a proprietorship firm by Mr. Kishore G Lund, KGL operates
a commercial complex in Coimbatore and derives rental income from
the same. KGL is part of the Srivari group of companies which is
engaged in residential real estate development in Coimbatore. The
firm has availed bank facilities for onward lending to group
companies for development of the Srivari Ananyaa, Srivari Saarang
and Srivari Vaibhav projects.

OMC POWER: CRISIL Migrates B- Rating from Not Cooperating
---------------------------------------------------------
Due to inadequate information and in line with Securities and
Exchange Board of India guidelines, CRISIL had migrated its ratings
on the bank facilities of OMC Power Private Limited (OMC) to
'CRISIL B-/Stable Issuer Not Cooperating'. However, the firm has
now shared the information required for a comprehensive review of
the ratings. Consequently, CRISIL is migrating its ratings to
'CRISIL B-/Stable' from 'CRISIL B-/Stable Issuer Not Cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Non Convertible       30.00      CRISIL B-/Stable (Migrated
   Debentures LT                    from 'CRISIL B-/Stable
                                    ISSUER NOT COOPERATING')

The rating continues to reflect OMC's modest scale of operations,
the ongoing operating losses, and dependence on external funding to
service interest. These rating weaknesses are partially offset by
the benefits OMC derives from its experienced management, funding
support of the promoters and the availability of additional credit
opportunities.

Key Rating Drivers & Detailed Description

Weaknesses
* Operating losses: OMC continues to operate under losses, owing to
the modest scale of operations vis-a-vis its sizeable
administrative and corporate expenses. Operating losses aggregated
of INR7.03 crore in fiscal 2019 (Rs 4.88 crore the previous
fiscal). Revenue and realisations are not sufficient to cover the
administrative and corporate expenses.

* Dependence on external credit funding: OMC remains dependent on
external borrowings and funding to meet its interest obligations.
The company has outstanding debentures of INR25.2 crore. The
company has also received $ 1 million from SMBC and $2.9 million
from RBL. It is also expected to receive equity infusion of INR53
crore in current fiscal from Mitsui & Co Ltd. The interest payments
on the debentures are made with quarterly rests from the external
funds received.  

* Modest scale of operations: Operating income was modest at
INR10.85 crore in fiscal 2019 (Rs 10.20 crore in fiscal 2018). The
company operated 102 power plants, till fiscal 2019. Additionally,
the company is expected to develop another 225 power plants in
current fiscal in two phases of 75 and 150 power plants.

Strengths

* Benefits from the experienced management in the industry: The
management have extensive experience in diversified businesses, and
have provided the company with strategic tie-ups, government
subsidies and external borrowings.

* Funding support from the promoters: The Company receives funding
support from the promoters, in addition to additional borrowing
opportunities available to cater to its expansion plans and for the
servicing of its debt obligations amidst losses at its operating
levels.

Liquidity: Stretched

Stretched liquidity marked operating losses and reliance on
external funding to meet working capital and capital expenditures.
Net cash accruals are expected to be negative in fiscal 2019 and
2020 which is expected to maintain pressure on liquidity. The
current ratio had been at 5.55 times as on March 31, 2019. CRISIL
believes that the liquidity profile will continue to remain
stretched.

Outlook: Stable

CRISIL believes that OMC will continue to benefit over the medium
term from the extensive experience of its promoters.

Rating Sensitivity Factor

Upward factor
* Completion of majority stake acquisition by Mitsui & Co. Ltd.,
will result in strengthening of business risk profile.
* Sustained improvement in scale of operation and improvement of
operating margin to around 6%.

Downward factor
* Delay in raising equity from Mitsui & Co. Ltd., will lead to
stretched liquidity profile
* Stretch in working capital cycle by more than 25% resulting in
deterioration of business risk profile
* Substantial increase in its working capital requirements thus
weakening its liquidity & financial profile.

In 2011, Mr Anil Raj, Mr Rohit Chandra, and Mr Sushil Jiwarajka
jointly incorporated OMC as OMC Televentures Private Limited
(formerly known as Artheon Televentures Private Limited) as the
majority shareholders of the company. OMC commenced commercial
operations in July 2012.

The company operates 102 solar micro-plants (off-grid and on-grid
photovoltaic hybrid solar diesel power systems) of 30-75 KW
capacity in and across 9 districts in Uttar Pradesh that has little
or no grid connectivity. End users include telecom companies, small
and medium enterprises, small commercial establishments and rural
households.

PARA ENTERPRISES: CRISIL Keeps D Rating in Not Cooperating
----------------------------------------------------------
CRISIL said the ratings on bank facilities of Para Enterprises
Private Limited (PEPL) continues to be 'CRISIL D/CRISIL D Issuer
not cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            28        CRISIL D (ISSUER NOT
                                    COOPERATING)

   Letter of Credit       10        CRISIL D (ISSUER NOT
                                    COOPERATING)

   Proposed Long Term      8.1      CRISIL D (ISSUER NOT
   Bank Loan Facility               COOPERATING)

   Working Capital        13.9      CRISIL D (ISSUER NOT
   Term Loan                        COOPERATING)

CRISIL has been consistently following up with PEPL for obtaining
information through letters and emails dated September 17,2019 and
September 23,2019 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 PEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PEPL 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 ratings on bank
facilities of PEPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.

Incorporated in December 1996, PEPL is a Chennai based company
engaged in undertaking wind EPC contracts in  the 250 Kw and 750 Kw
windmills segment (around 70 percent of revenue) and manufacturing
and export of match sticks and skillets (around 30 percent of
revenue).

PRAGATI ELECTROCOM: CRISIL Withdraws B+ Rating on INR10cr Loan
--------------------------------------------------------------
CRISIL has withdrawn its ratings on the bank facilities of Pragati
Electrocom Private Limited (PEPL) on the request of the company and
receipt of a no objection 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
   ----------       -----------     -------
   Bank Guarantee         6.1       CRISIL A4 (ISSUER NOT
                                    COOPERATING; Rating
                                    Withdrawn)

   Cash Credit           10.0       CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Rating
                                    Withdrawn)

   Proposed Long Term     5.4       CRISIL B+/Stable (ISSUER NOT
   Bank Loan Facility               COOPERATING; Rating
                                    Withdrawn)

CRISIL has been consistently following up with PEPL for obtaining
information through letters and emails dated January 23, 2019 and
July 11, 2019, 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 PEPL. This restricts CRISIL's
ability to take a forward PEPL 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 PEPL
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.

PEPL was incorporated in 2002, promoted by Mr Virendra Kumar. The
company manufactures and supplies power conditioning instruments;
automation, energy management, and power protection products; and
telecom and transmission towers, for various industries. It is
based in Gurugram, Haryana.

R. L. INDUSTRIES: CRISIL Withdraws B+ Rating on INR7cr Loan
-----------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of R. L.
Industries (RLI) on the request of the company and after receiving
no objection certificate from the bank. The rating action is
in-line with CRISIL's policy on withdrawal of its rating on bank
loan facilities.

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Cash Credit            7        CRISIL B+/Stable (ISSUER NOT
                                   COOPERATING; Rating Withdrawn)

   Proposed Long Term     3        CRISIL B+/Stable (ISSUER NOT
   Bank Loan Facility              COOPERATING; Rating Withdrawn)

CRISIL has been consistently following up with RLI for obtaining
information through letters and emails dated July 22, 2019 and July
26, 2019 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 RLI. This restricts CRISIL's
ability to take a forward looking view on the credit quality of the
entity. CRISIL believes that the information available for RLI is
consistent with 'Scenario 2' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BBB' rating
category or lower. Based on the last available information, CRISIL
has Continues the ratings on the bank facilities of RLI to 'CRISIL
B+/Stable Issuer not cooperating'.

CRISIL has withdrawn its rating on the bank facilities of RLI on
the request of the company and after receiving no objection
certificate from the bank. The rating action is in-line with
CRISIL's policy on withdrawal of its rating on bank loan
facilities.

RLI was established in 2000 as a partnership firm by brothers Mr
Ayodhya Parkash, Mr Varun Kumar, and Mr Nitin Kumar. The firm mills
and sorts rice, and has a capacity of 2 tonne per hour at its
facility in Jalalabad.

RAGA COMMODITIES: CRISIL Assigns B Rating to INR16.4cr LT Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Raga Commodities Private Limited (Raga
Commodities).

                         Amount
   Facilities          (INR Crore)     Ratings
   ----------          -----------     -------
   Proposed Long Term
   Bank Loan Facility       16.4       CRISIL B/Stable (Assigned)

   Bank Guarantee            1.6       CRISIL A4 (Assigned)

   Cash Credit               2.0       CRISIL B/Stable (Assigned)

The ratings reflect the company's modest capitalisation and
exposure to volatility inherent in the capital market business.
These weaknesses are partially offset by the extensive experience
of the promoters.

Analytical ApproachCRISIL has evaluated the standalone financial
and business risk profiles of Raga Commodities.

Key Rating Drivers & Detailed Description

Weaknesses

*Modest capitalisation
Capital position is modest, with networth remaining small at INR1.9
crore as on March 31, 2019. Accrual to networth continued to be
weak mainly on account of trading losses, caused by capital market
volatilities. Gearing was healthy at 0.4 time as on
March 31, 2019, because the borrowing requirement in the broking
business is minimal. Networth coverage for debtors outstanding for
more than 6 months remained moderate at 13 times.

*Exposure to volatility inherent in the capital market business
Operations are concentrated primarily in the commodity market
space. Trading volumes and earnings are heavily dependent on the
level of activity in capital markets, which are inherently
volatile, driven by economic and political factors as well as
investor sentiments. The business of Raga Commodities will continue
to be driven by the state of capital markets, given its focus on
commodity broking (the core business).

Strength

*Extensive experience of the promoters
The promoters are associated with capital market-related business
for more than 2 decade. Benefits from the promoters' experience of
more than 24 years in the securities market, and their knowledge of
the broking business in Bombay Stock Exchange, National Stock
Exchange, Multi Commodity Exchange, and National Commodity and
Derivatives Exchange should continue to support the business.

Liquidity: Stretched

Raga Commodities has stretched liquidity marked by marginal cash
and cash equivalent of INR2.3 crore as on March 31, 2019. As the
company is engaged in the broking business, where overall
fund-based requirement remains low, bank limit utilisation averaged
35% (of the sanctioned limit of INR2 crore) in the 12 months
through March 2019.

Outlook: Stable

CRISIL believes Raga Commodities will remain a small commodity
broking firm over the medium term with modest capital position. The
outlook may be revised to 'Positive' if market position and
capitalisation improve significantly. The outlook may be revised to
'Negative' if profitability and capitalisation weaken
considerably.

Rating sensitivity factors

Upward factors
* Significant improvement in earnings profile, with return on
networth of 5-6% in the next 2 years
* Significant improvement in capital position

Downward factors
* Impact of low accruals on capital position
* Networth coverage to debtors outstanding for more than 6 months
declining below 10 times.

Incorporated in January 2004, Raga Commodities (part of the Raga
group) is promoted by Mr Ram Asrani and Ms Harsha Asrani. It
primarily undertakes commodity broking business in Jabalpur. The
promoters have been associated with the broking business for more
than two decades and have been engaged in the business since its
inception. The company is a member broker with Multi Commodity
Exchange. The Raga group has two other companies, Raga Share
Trading Pvt Ltd and Raga Securities and Finance Pvt Ltd, which also
undertake broking activities.

RAIRESHWAR PACKAGING: CRISIL Assigns B+ Rating to INR5cr Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Raireshwar Packaging Private Limited (RPPL).

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Proposed Fund-
   Based Bank Limits     5          CRISIL B+/Stable (Assigned)


The rating reflects the company's early stage of operations,
exposure to intense competitive pressure in the paper manufacturing
industry and average financial risk profile. These weaknesses are
partially offset by the extensive experience of the promoters and
their fund support.

Key Rating Drivers & Detailed Description

Weaknesses

* Early stage of operations: Early stage of operations (commercial
operations commenced in December 2018) constrains scalability:
revenue was INR1.39 crore in fiscal 2019 and is likely to increase
in current fiscal. Going ahead successful ramp up in revenue and
generation of profits remain critical.

* Average financial risk profile:
With working capital debt coming in FY20 the capital structure is
expected to be average. Further, the cash accruals are expected to
be modest during initial phase.

Strength

* Extensive experience of the promoters and their funding support:
Benefits from the promoters' experience of over 10 years, and their
keen understanding of market dynamics and healthy relationships
with suppliers and customers should continue to support business
risk profile. The promoters have extended financial support to the
company, via unsecured loans and equity to facilitate initial capex
towards setting up factory. Their ability to provide need-based
funding support enhances the companies' financial flexibility.

Liquidity: Stretched

Liquidity is stretched. Net cash accrual is expected at INR90 lakh
per annum over the medium term against yearly debt obligation of
INR70 lakh. Current ratio was weak. Financial assistance may be
expected from the promoters whenever required.

Outlook: Stable

CRISIL believes RPPL will continue to benefit from the extensive
experience of its promoters

Rating sensitivity factor

Upward factor
* Significant improvement in revenue (to over INR30 crore) and
stable operating margin strengthening cash accrual
* Controlled working capital cycle

Downward factor
* Net cash accrual of below INR70 lakh on account of a lower than
expected revenue or operating margin
* Large debt-funded capital expenditure weakening capital
structure

Incorporated in 2017, RPPL manufactures corrugated boxes. The
production facility is in Shirur (Pune). Mr Pratap Bandal and Mr
Bapusaheb Bandal are the promoters.

SHARP TANKS: CRISIL Withdraws B+ Rating on INR7cr Cash Loan
-----------------------------------------------------------
CRISIL has withdrawn its ratings on the bank facilities of Sharp
Tanks and Structurals Private Limited (STSPL) on the request of the
company and a receipt of a no objection 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
   ----------       -----------     -------
   Bank Guarantee         26        CRISIL A4 (ISSUER NOT
                                    COOPERATING; Rating
                                    Withdrawn)

   Cash Credit             7        CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Rating
                                    Withdrawn)

   Letter of Credit        5        CRISIL A4 (ISSUER NOT
                                    COOPERATING; Rating
                                    Withdrawn)

CRISIL has been consistently following up with STSPL for obtaining
information through letters and emails dated February 26, 2019 and
August 16, 2019, 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 STSPL. This restricts CRISIL's
ability to take a forward STSPL 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 STSPL
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer Not
Cooperating'.

Incorporated in 1987, STSPL designs, fabricates, and erects
high-pressure and stainless steel storage tanks, spheres and heat
exchangers. The company mainly caters to oil & gas, petrochemical,
chemical, fertiliser and pharmaceutical sectors. The company
generates a substantial portion of its revenue from field work,
wherein raw materials are usually supplied by clients. The company
also manufactures medium-to-heavy storage tanks from its
fabrication facility at Tarapur in Maharashtra. The company is
promoted by Mr. VV Nair.

SHIV SHANKER: CRISIL Maintains B+ Rating in Not Cooperating
-----------------------------------------------------------
CRISIL said the ratings on bank facilities of Shiv Shanker Rice
Mills (Ferozepur) (SSRM) continues to be 'CRISIL B+/Stable Issuer
not cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            15        CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING)

   Proposed Long Term      1.17     CRISIL B+/Stable (ISSUER NOT
   Bank Loan Facility               COOPERATING)

   Term Loan               1.33     CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING)

CRISIL has been consistently following up with SSRM for obtaining
information through letters and emails dated September 17, 2019 and
September 23, 2019 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 SSRM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SSRM 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 ratings on bank
facilities of SSRM continues to be 'CRISIL B+/Stable Issuer not
cooperating'.

SSRM, a partnership firm, was formed by Mr. Raj Kumar, Mr. Mohit
Kumar, and Mr. Pankaj Kumar. SSRM mills, processes, and sells
parimal, paddy, and basmati rice in domestic markets. The plant is
in Ferozepur and the key promoters are Mr. Raj Kumar, Mr. Mohit
Kumar, and Mr. Pankaj Kumar who also manages the operations.

SHREEJEE COTEX: CRISIL Withdraws B+ Rating on INR3.5cr Loan
-----------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of Shreejee
Cotex - Shahada (SCS) on the request of the company and after
receiving no objection certificate from the bank. The rating action
is in-line with CRISIL's policy on withdrawal of its rating on bank
loan facilities.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit           3.5        CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Migrated from
                                    'CRISIL B+/Stable'; Rating
                                    Withdrawn)

   Term Loan             3.0        CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Migrated from
                                    'CRISIL B+/Stable'; Rating
                                    Withdrawn)

CRISIL has been consistently following up with SCS for obtaining
information through letters and emails dated September 18,2019 and
September 23,2019 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 SCS. This restricts CRISIL's
ability to take a forward looking view on the credit quality of the
entity. CRISIL believes that the information available for SCS 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, CRISIL
has migrated the ratings on the bank facilities of SCS to 'CRISIL
B+/Stable Issuer not cooperating'.

SCS was established in September 2014 by Mr Ajay Goyal and his
family members, and commenced operations in November 2014. It gins
and presses cotton and trades in cotton bales. Facilities at
Nandurbar (Maharashtra) have installed capacity to process 1500
quintals of raw cotton per day.

SRI LAKSHMI: CRISIL Migrates B+ Rating from Not Cooperating
-----------------------------------------------------------
Due to inadequate information, CRISIL, in line with Securities and
Exchange Board of India guidelines, had migrated its ratings on the
bank facilities of Sri Lakshmi Raw & Boiled Rice Mill (SLR) to
'CRISIL B+/Stable Issuer Not Cooperating'. However, SLR has
subsequently begun sharing information necessary for a
comprehensive rating review. CRISIL is, therefore, migrating the
ratings from 'CRISIL B+/Stable Issuer Not Cooperating' to 'CRISIL
B+/Stable'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            8         CRISIL B+/Stable (Migrated
                                    from 'CRISIL B+/Stable
                                    ISSUER NOT COOPERATING')

The rating reflects reflect the firm's average financial risk
profile because of moderate gearing, modest debt protection metrics
and networth, its modest scale of operations and large working
capital requirements, and its susceptibility of operating
profitability to volatility in raw material prices. These
weaknesses are partially offset by extensive industry experience of
its promoter in the rice milling industry.

Analytical Approach

The firm has unsecured loan of INR1.83 crores as on March, 2019
which has been treated as 75 per cent equity and 25 per cent debt
as it is non-interest bearing, subordinated to bank debt, not
withdrawn from the business over the past 4 years ending march,
2019 and bought in by partners.

Key Rating Drivers & Detailed Description

Weakness:

* Average financial risk profile
SLR's financial risk profile is average marked by moderate gearing,
modest debt protection metrics and networth. The gearing was
moderate at gearing of 1.8 times and networth was modest at INR7.18
crores as on March, 2019. Interest coverage and net cash accrual to
total debt ratios were low at 1.34 times and 0.0 times in fiscal
2019.

* Modest scale of operations in highly fragmented Rice milling
industry
SLR has a modest scale of operations with revenues of around INR46
crore in fiscal 2019. The modest scale of operations restricts the
firm from getting benefits accruing from economies of scale.

* Large working capital requirements
Gross current assets were around 144 days, driven by high inventory
days of 105 days and moderate debtor days of 42 days as on March,
2019.

*Susceptibility of its operating profitability to volatility in raw
material prices
The domestic rice industry is highly regulated in terms of paddy
prices, export/import policy for rice, and rice release mechanism,
which affects the credit quality of players in the industry. SLR's
operating profitability would continue to remain low due to the low
value addition in its product and would remain susceptible to
adverse government regulations and raw material price volatility.

Strengths:

* Extensive industry experience of the promoters in the rice
milling industry
SLR's business risk profile benefits from the extensive experience
of its promoters in the rice milling industry. The firm is promoted
by Mr. Muralidhar Reddy and family who have been associated with
the rice milling industry for more than three decades which has
enabled the firm to establish healthy linkages with farmers in the
region there by aiding the raw material (paddy) procurement.

Liquidity: Adequate

Liquidity is adequate marked by accruals in the range of 0.40-0.60
crores against no term loan repayment obligation. Bank limit of
INR14 crores was utilised at an average of 94.4% during the last 12
months ended Jul-2019. With no large capital expenditure plans
going forward, liquidity should improve over the medium term.

Outlook: Stable

CRISIL believes SLR will benefit over the medium term from its
promoter's extensive industry experience.

Rating sensitivity factors
Upward factor
* Higher-than-expected revenue and prudent working capital
management.
* Steady profitability of above 4% over the medium term.

Downward factor
* Decline in operating margin
* Stretch in working capital cycle, with gross current assets
exceeding 160 days

SLR mills and processes paddy into rice, rice bran, broken rice,
and husk. It is promoted by Mr. Muralidhar Reddy, and is based in
Nellore, Andhra Pradesh.

SWASTIK FURNACES: CRISIL Withdraws D Rating on INR8.5cr Loan
------------------------------------------------------------
CRISIL has withdrawn its rating on the bank facilities of Swastik
Furnaces Private Limited (SFPL) on the request of the company and
after receiving no objection certificate from the bank. The rating
action is in-line with CRISIL's policy on withdrawal of its rating
on bank loan facilities. Furthermore, the company has not paid the
fee for conducting rating surveillance as agreed to in the rating
agreement.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit           8.5        CRISIL D (ISSUER NOT
                                    COOPERATING; Migrated from
                                    'CRISIL D'; Rating Withdrawn)

   Letter Of Guarantee   2.5        CRISIL D (ISSUER NOT
                                    COOPERATING; Migrated from
                                    'CRISIL D'; Rating Withdrawn)

CRISIL has been consistently following up with SFPL for obtaining
information through letters and emails dated September 18, 2019 and
September 23, 2019 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 SFPL. This restricts CRISIL's
ability to take a forward looking view on the credit quality of the
entity. CRISIL believes that the information available for SFPL 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, CRISIL
has migrated the ratings on the bank facilities of SFPL to 'CRISIL
D/CRISIL D Issuer not cooperating'.

SFPL is an ISO 9001-2008 certified company, engaged in production,
supply and export of heat treatment furnaces. It was initially
established as a partnership firm in the name of Swastik Furnaces,
was reconstituted as a private ltd. company in 2009. Company's day
to day operations are being handled by Mr Baldeep Dogra, Mr.
Rajendra Dogra and Ms. Priya Dogra.

TARSUN STEELS: CRISIL Lowers Rating on INR6.5cr Cash Loan to B+
---------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Tarsun Steels
India Private Limited (TSIPL) to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB-/Stable Issuer not cooperating'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            6.5       CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

   Long Term Loan          .85      CRISIL B+/Stable (ISSUER NOT
                                    COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

   Proposed Long Term     1.65      CRISIL B+/Stable (ISSUER NOT
   Bank Loan Facility               COOPERATING; Revised from
                                    'CRISIL BB-/Stable ISSUER NOT
                                    COOPERATING')

CRISIL has been consistently following up with TSIPL for obtaining
information through letters and emails dated
September 17, 2019 and September 23, 2019 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 TSIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on TSIPL 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 ratings on bank
facilities of TSIPL Revised to be 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB-/Stable Issuer not cooperating'.

Based in Coimbatore and established in 2010, TSIPL is promoted by
Mr. S.P. Thangarajan. The company is engaged in manufacturing of
mild steel (MS) ingots.

VINOTH DISTRIBUTORS: CRISIL Moves B+ Rating from Not Cooperating
----------------------------------------------------------------
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of Vinoth Distributors (VD) to
CRISIL B+/Stable/CRISIL A4 Issuer Not Cooperating'. However, the
management has subsequently started sharing requisite information,
necessary for carrying out comprehensive review of the rating.
Consequently, CRISIL is migrating the rating on bank facilities of
VD from ' CRISIL B+/Stable /CRISIL A4 Issuer Not Cooperating' to
'CRISIL B+/Stable/CRISIL A4'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            10        CRISIL B+/Stable (Migrated
                                    from 'CRISIL B+/Stable
                                    ISSUER NOT COOPERATING')

   Proposed Long Term      3        CRISIL B+/Stable (Migrated
   Bank Loan Facility               from 'CRISIL B+/Stable
                                    ISSUER NOT COOPERATING')

The rating on the long-term bank facilities of VD reflects VD's
modest scale of operations and below-average financial risk
profile, marked by small net worth, high external indebtedness, and
weak debt protection metrics. These rating weaknesses are partially
offset by the extensive experience of VD's promoters in the
agricultural commodities industry.

Analytical Approach

Unsecured loans of INR2.31 crore is treated as NDNE.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations
VD has a modest scale of operations, with a turnover estimated at
around INR38.95 crore in 2018-19 despite being in operations for
close to a decade. The modest scale limits the advantages of
economies of scale available to players with larger volumes.
Furthermore, the rice industry is fragmented and there is
increasing competition from several domestic as well as
international players. Besides, the resilience of a player with a
larger scale of operations to external shocks is significantly
higher than a player with a smaller scale of operations, its modest
net worth limits the cushion available to VD against any potential
adverse condition or business downturn.

* Modest financial risk profile
VD's financial risk profile is marked by a small net worth, high
ratio of total outside liabilities to tangible net worth (TOLTNW),
and subdued debt protection metrics. VD's net worth as on March 31,
2019, was INR5.06 crore. The net worth has remained constrained,
largely on account of VD's modest scale of operations and low
profitability. The modest net worth allows VD limited cushion
against any potential adverse condition or business downturn.
CRISIL believes that VD's net worth is expected to improve steadily
with its increasing scale of operations.

Strength

* Extensive experience of promoters in rice trading industry
The firm is promoted by Mr. K.R.Padmanabhan and his family members.
In 2013, Mr. Vinoth Kumar took the partnership interest of Mr.
K.R.Padmanabhan. The promoters has close to three decades of
experience in this industry. The promoter's extensive experience
has enabled the company to establish strong relationship with many
clients.

Liquidity: Stretched

VD has streched liquidity as reflected in the fact that the firm's
expected cash accruals are expected to be tightly matched against
term loan repayment obligations. Over the medium term, firm is
expected to generate accruals of around INR0.50-0.60 crores per
annum as against annual repayment obligations of INR0.40 crores.
Firm's month end fund based bank limit utilization remained optimal
at about 95 percent over 12-month period ended July 2019. Firm's
current ratio was at about 1.3 times, as at March 31, 2019.

Outlook: Stable

CRISIL believes that VD will benefit from its promoters' extensive
industry experience.
  
Rating Sensitivity Factors

Upward factor
* It sustained revenue growth of 10% over the medium term while
ensuring an improvement in financial risk profile.
* Improvement in liquidity leading to higher accruals.

Downward factor
* If its business is stagnant due to weak demand and fall in
revenue by 5% leading to fall in accruals and stretch in
liquidity.
* Stretch in working capital.

Set up in 2009 as a partnership firm and promoted by Mr. K R
Padmanabhan and his family members, VD trades in rice. The firm is
a distributor of Kohinoor Specialty Foods India Pvt Ltd. In 2013,
Mr. Vinoth Kumar was inducted as a partner in the firm. Mr. Kumar
oversees the firm's day-to-day operations.

ZNA INFRA: CRISIL Migrates B+ Rating to Not Cooperating Category
----------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of ZNA Infra
Private Limited (ZIPL) to 'CRISIL B+/Stable Issuer not
cooperating'.

                         Amount
   Facilities         (INR Crore)    Ratings
   ----------         -----------    -------
   Proposed Long Term      7.5       CRISIL B+/Stable (ISSUER
   Bank Loan Facility                NOT COOPERATING; Rating
                                     Migrated)

   Term Loan               9.5       CRISIL B+/Stable (ISSUER
                                     NOT COOPERATING; Rating
                                     Migrated)

CRISIL has been consistently following up with ZIPL for obtaining
information through letters and emails dated April 30, 2019,
September 17,2019 and September 23,2019 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 ZIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ZIPL is
consistent with 'Scenario 2' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BBB' rating
category or lower'.

Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of ZIPL to 'CRISIL B+/Stable Issuer not cooperating'.

ZIPL operates 1MW solar plant each in Haryana and Rajasthan and is
a part of the Zamil group. Its parent company is Zamil Industrial
Investment Company, Saudi Arabia and its operations are managed by
Mr Ramesh Awateny and Mr Vivek Gupta. The company was incorporated
in March 2008 by the name of Zamil Infra Pvt Ltd, which was changed
to the current name in January 2016.



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

KINSTEEL BHD: Deadline to Submit Revamp Plan Extended to Dec. 31
----------------------------------------------------------------
The Sun Daily reports that Kinsteel Bhd has been granted an
extension until Dec. 31, 2019, by Bursa Malaysia to submit a
regularisation plan in order to lift its Practice Note 17 (PN17)
status.

According to the report, the group said in a Bursa disclosure that
it might face a possible delisting from the stock exchange in the
event of failure to submit a regularisation plan or obtain approval
for the implementation of said plans from the authorities.

Late in September, Kinsteel unveiled its revamp plan, including a
70% share capital reduction from MYR83 million to MYR24.9 million,
the Sun Daily says.

The report says the credit from the proposed capital reduction of
MYR58.1 million will be used to offset its accumulated losses,
which stood at MYR865 million as at June 30, 2019.

The Sun Daily relates that Kinsteel is also seeking to raise up to
MYR46.6 million via a special issue of new shares with free
warrants to selected placees; and a rights issue of new shares with
free warrants to existing shareholders.

In addition, the group proposed a disposal of five parcels of
industrial land for MYR140 million.

Kinsteel also proposed a settlement of MYR159.7 million
inter-company debt owed by Perfect Channel Sdn Bhd, as well as a
proposed scheme of arrangement and compromise with the creditors of
Kinsteel involving total liabilities of MYR1.68 billion as at June
30, 2017, the Sun Daily adds.

                         About Kinsteel Berhad

Malaysia-based Kinsteel Berhad is an integrated steel manufacturer
and steel millers in Malaysia. The Company manufactures a range of
long steel products used in the manufacturing, construction and
infrastructure industries. The Company, with a product portfolio
encompassing upstream, midstream and downstream steel products,
fully integrated and streamlined manufacturing processes, serves
the need for steel in the region. It produces mild steel round
bars, high tensile deformed bars, angle bars and flat bars
servicing, in particular, the construction and infrastructure
industries. There steel bars and sections manufactured by the
Company are also known as long products. The Company has eight
production lines with a total steel bars production capacity of
800,000 metric tonnes per annum. The types of steel bars produced
are round and deformed bars, angle bars, U-channel, wire rods and
flat bars.

In October 2016, Kinsteel triggered the criteria pursuant to
Practice Note 17 (PN17) of the Main Market listing requirements of
Bursa Malaysia Securities Bhd. The company was considered a PN17
company pursuant to paragraph 2.1(d) of PN17 as the company's
auditors have expressed a disclaimer opinion in the Kinsteel's
latest audited financial statements for the financial year ended
June 30, 2016.

As reported in the Troubled Company Reporter-Asia Pacific on Feb.
28, 2018, The Edge Financial Daily said Kinsteel Bhd, whose shares
have been suspended from trading on Bursa Malaysia, has appointed
Messrs Ernst & Young as its liquidator after being served a notice
to do so on Feb. 20, 2018.

On Jan. 22, 2018, the High Court in Kuantan made a winding-up order
pursuant to the Section 218 of the Companies Act 1965 against
Kinsteel and Kin Kee Marketing Sdn Bhd.

PRESS METAL: Moody's Affirms Ba3 CFR, Alters Outlook to Neg.
------------------------------------------------------------
Moody's Investors Service revised the outlook on Press Metal
Aluminum Holdings Berhad's and Press Metal Ltd.'s ratings to
negative from stable.

At the same time, Moody's has affirmed Press Metal's corporate
family rating of Ba3. Moody's has also affirmed the backed senior
unsecured rating of Ba3 for Press Metal Ltd.

RATINGS RATIONALE

Press Metal has announced significant investments in quick
succession to enhance raw material security and expand its smelting
capacity over the next 12-18 months.

"These investments are in line with Press Metal's strategic
objective of increasing raw material security, which should enable
the company to hedge its alumina supply more effectively and
support margin stability over the longer term," says Nidhi Dhruv, a
Moody's Vice President and Senior Analyst.

"However, the company plans to debt-fund these investments, which
coupled with the softer price environment for aluminum will weaken
its financial profile over the next 12-18 months," adds Dhruv.

Moody's expects Press Metal's adjusted leverage to rise to around
3.5x in 2020, before improving to 3.2x-3.3x in 2021 when the
expanded capacity comes onstream and the benefits of the company's
investments are realized.

Press Metal announced expansion of its smelting capacity in Bintulu
(Phase 3 smelter) by 320,000 MT on the back of a new 15-year power
purchase agreement with Sarawak Energy, for an additional 500MW of
power.

Press Metal is also acquiring a 25% stake in PT Bintan Aluminum
Indonesia (PT BAI), which is constructing a 2.0 mtpa alumina
refinery in Indonesia. Press Metal's capex investment of $300
million will be spread over 2019 to 2021, and the company is
negotiating for access to up to 1.5 mtpa of alumina. If succesful,
this would increase Press Metal's alumina security to 83% of
expanded capacity--together with the company's access to 230,000
mtpa from Worsley Alumina in Australia through its 2019 acquisition
of a 50% equity interest in Japan Alumina Associates (Australia )
Pty Ltd.

The company is also exposed to execution risks for these projects,
although given Press Metal's track record of timely construction
and execution of its earlier capacity expansions, Moody's believes
the risk to be limited for the Phase 3 smelter.

"The affirmation of Press Metal's Ba3 CFR reflects the company's
low-cost aluminum smelting capabilities, supported by a long-term
power purchase agreement with Sarawak Energy, and its strong
15%-16% EBITDA margins," adds Dhruv, also Moody's Lead Analyst for
Press Metal.

The company benefits from a low cash cost per ton relative to other
aluminum producers, driven primarily by its access to low energy
tariffs as part of its 25-year power purchase agreement with
Sarawak Energy.

Moody's expects Press Metal to maintain its cost advantages, which
partially mitigate the price risk on its aluminum sales. Its
margins also benefit from low employee and logistic costs, and the
correlation between the price of aluminum and alumina, which
represents the largest component of its cash costs.

Press Metal's CFR also incorporates its small scale relative to
global competitors, limited operational track record, and exposure
to volatility in the prices of aluminum and raw materials.

The rating outlook is negative, reflecting Moody's expectation of
weaker credit metrics over the next 12-18 months as Press Metal
pursues growth and increasing raw material security through
debt-funded acquisitions and capacity expansion in a weak aluminum
price environment.

In terms of environmental, social and governance (ESG) factors, the
ratings reflect the elevated environmental risk facing aluminum
producers in terms of carbon regulation and air pollution. However,
Press Metal uses hydropower which is a more environmentally
friendly source of energy. The company also procures carbon anodes
with less than 2% sulphur content to regulate sulphur oxide
emissions. Other investments include conveyor belt for
transportation between smelter and port to reduce the use of
trucks.

Press Metal's ownership is concentrated in the promoter group led
by the Koon family, which held a 60% stake as of June 30, 2019.
This risk is partially mitigated by Sumitomo's ownership of 20% of
the Press Metal's subsidiaries, Press Metal Bintulu (PMB) and Press
Metal Sarawak (PMS) which run the smelters. Sumitomo nominates two
members to the board of directors of PMB and PMS and seconds
employees on site at the smelters to oversee finanacial and
operational performance. Press Metal's disclosures and governance
practices are in line with those of listed Malaysian corporates,
and Moody's assesses governance risk for Press Metal is manageable
within its rating.

Press Metal's CFR could be downgraded if there is a material
erosion in its profitability, driven by extended operational
shutdowns, an increase in power costs, delays in the execution of
planned investments or extended tightening in alumina-to-aluminum
pricing.

The rating could also be downgraded if the company's leverage
increases or its liquidity deteriorates. Specifically, Moody's
would downgrade the rating if the company's (1) EBITDA margin
remains below 15% for an extended period; and (2) adjusted
debt/EBITDA rises above 3.5x.

Given the negative outlook, upward pressure on the rating is
unlikely. Nevertheless, Moody's could change the outlook to stable
if Press Metal successfully completes its acquisitions and
expansion in a timely manner, resulting in lower costs and higher
margins. Specifically, Moody's would revert to a stable outlook if
the company's (1) EBITDA margin remains above 15% on a sustained
basis; and (2) adjusted debt/EBITDA remains below 3.5x for an
extended period.

The principal methodology used in these ratings was Steel Industry
published in September 2017.

SUMATEC RESOURCES: Has Until Oct. 29 to Submit Regularization Plan
------------------------------------------------------------------
Chong Jin Hun at theedgemarkets.com reports that Sumatec Resources
Bhd said on Oct. 1 that Bursa Malaysia granted the oil and gas firm
a time extension of six months up to Oct. 29, 2019 to submit a
regularisation plan to the authorities.

theedgemarkets.com relates that Sumatec said it had on Sept. 4
received Bursa's letter on Sumatec's application for the time
extension.

"After due consideration of all facts and circumstances of the
application, Bursa has decided to grant the company an extension of
time of six months up to Oct. 29, 2019 to submit a regularisation
plan to the regulatory authorities," the group said, the report
relays.

Sumatec Resources Berhad offers services to the oil and natural gas
industry. The Company offers engineering and construction services,
offers marine transport services of oil, provides onshore drilling
rigs and related equipment, stores oil, and explores and develops
marginal oil fields. Sumatec also builds biomass fueled power
plants, and explores and mines for metals.

Sumatec Resources Bhd has been admitted into the Practice Note 17
(PN17) category after its external auditors Grant Thornton
Malaysia's disclaimer opinion on its financial statements ended
December 31, 2017.  The auditors said Sumatec's ability to continue
as going concern is dependent on a series of corporate exercises
including a proposed acquisition of Markmore Energy (Labuan) Ltd
(MELL) from its controlling stakeholder Tan Sri Halim Saad.



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

FE INVESTMENTS: S&P Affirms 'B/B' ICRs Following Capital Injection
------------------------------------------------------------------
S&P Global Ratings said it has affirmed its 'B' long-term and 'B'
short-term issuer credit ratings on New Zealand-based FE
Investments Ltd. (FEI). At the same time, S&P removed the ratings
from CreditWatch, where it had placed them with negative
implications on Feb. 4, 2019. The outlook is stable.

S&P said, "The affirmation of our ratings on FEI reflects our view
that the capital position of FEI's parent, FE Investments Group
(FEIG), has strengthened with the recent injection of A$3.3 million
in ordinary shares. In addition, in our capital analysis, we now
apply lower risk weights to FEI's credit exposures in New Zealand
reflecting our view that lenders in the country now face reduced
economic risks. We have revised our forecast risk-adjusted capital
(RAC) ratio for the consolidated FEIG to a stronger 17.5%-18.0%
over the next 12 months reflecting the combination of capital
injection and lower risk weights.

"We have removed our ratings on FEI from CreditWatch with negative
implications reflecting our view that FEIG now faces relatively low
risk that its RAC ratio will fall below 15% over the next 12
months.

"The stable outlook reflects our expectation that FEIG will
maintain very strong capital levels at above 15%, with sustainable
business and operating performance in the next year.

"We would expect to lower our long-term rating on FEI if we believe
that the consolidated FEIG is unable to maintain a RAC ratio
greater than 15%, for example due to aggressive loan growth without
commensurate capital injections. In addition, we would lower the
rating if in our opinion FEI becomes vulnerable to default within
the next 12 months or its financial commitments appear to be
unsustainable in the long term.

"We see limited upside to our rating on FEI in the next 12 months.
In the longer term, a higher rating is likely to emerge if FEIG
successfully strengthens its corporate structure, expands its
operations, and maintains strong financial outcomes."




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

CHINESE GLOBAL: Receives Statutory Demand from Former CFO
---------------------------------------------------------
Janice Heng at The Business Times reports that Catalist-listed
investment holding group Chinese Global Investors Group has been
served a statutory demand dated Oct. 3 for SGD41,958.12 by lawyers
acting for former group chief financial officer (CFO) Kemmy Koh Ai
Ping, the company said on Oct. 4.

The sum is for Ms. Koh's salary from April to July 2019, inclusive
of CPF and interest, said Chinese Global Investors, the report
says.

BT relates that Ms. Koh left the firm with effect from July 15,
with "unpaid remuneration due from the company" given as the reason
for her departure. She had been CFO since May 2011.

If the company fails to pay Ms. Koh or her acting lawyers the
outstanding sum, or to secure or compound the sum to Ms. Koh's
satisfaction, within 21 days from when the demand was served, the
company shall be deemed unable to pay its debts and Ms Koh shall
apply for a winding-up order against it, BT relays.

"The company is presently seeking legal advice and will keep
shareholders informed as and when there are material developments
on the aforesaid matter," said Chinese Global Investors.

In June, the company received a letter of demand from lawyers
acting for landlord Ashford Investment for the sum of SGD12,462.63
in rental arrears and late payment interest, BT recalls. The
letter, dated June 14, said that Chinese Global Investors was
expected to repay the outstanding sums by June 28, failing which
the landlord would exercise its right under the tenancy agreement
to re-enter the premises.

In its results released on Aug. 29 for the year ended June 30,
Chinese Global Investors recorded a net loss attributable to owners
of SGD1.1 million, narrowing from the previous year's SGD3.4
million figure, BT discloses. It said then that it would seek to
procure further contracts for the supply of commercial
waterproofing and insulation materials, and adhere to cost-control
discipline to manage its financial resources efficiently.

It added then that it was working towards submitting a resumption
proposal to resume trading in its securities. Its shares have been
suspended since October 2018, BT adds.

                        About Chinese Global

Headquartered in Singapore, Chinese Global Investors Group Ltd. --
http://www.chineseglobalinvestors.com/html/index.php-- through a
subsidiary, offers mortgage loans to middle-income prospective
owner-occupiers of apartments. The Company also invests in treasury
bills. Chinese Global Investors Group provides waterproofing and
building protection solutions and products.

HYFLUX LTD: SMI Can Countersue for SGD39MM in Escrow, Court Rules
-----------------------------------------------------------------
The Business Times reports that the court on Oct. 3 decided that SM
Investments (SMI) is entitled to assert its counterclaim for the
SGD38.9 million deposit placed in escrow, without leave from the
court.

This comes after the failed SGD530 million rescue plan with
Salim-Medco consortium SMI was aborted on April 4, the report says.
Both Hyflux and SMI are now suing each other to claim a SGD38.9
million deposit by SMI in an escrow account.

BT relates that Hyflux has tried to block SMI's counterclaim,
saying that it breaches the moratorium which grants it court
protection.

But the rationale that the court gave for allowing certain
counterclaims to proceed even in the face of a moratorium is that
it would be "inimical" to allow a claim to proceed, but not a
counterclaim on the same factual grounds, "in so far as it operates
to extinguish or negate the claim, without affecting the position
of the other creditors," BT relays.

Disallowing SMI from making a counterclaim would deprive it from
either a defence or a reduction of the claim, and tilt the balance
too far in favor of Hyflux, the court said.

That said, SMI cannot pursue the claim for damages and other
reliefs without leave, as these "go beyond a purely defensive
stance". These would require the leave of court, BT relates.

"Since the defendants (SMI) have sought leave, and wish to pursue
remedies going beyond a pure defence, leave is granted for them to
assert and pursue the counterclaim, save that no execution of any
judgement, including the release of funds or payment, is to occur
without leave so long as the moratorium is in place."

In its judgement, the court also addressed the controversy between
the two parties regarding whether a letter issued by the Public
Utilities Board (PUB) satisfied a clause in the restructuring
agreement which said that PUB's consent for the change in control
of Tuaspring Pte Ltd, a subsidiary of Hyflux which ran a
desalination plant, has to be obtained, according to BT.

Hyflux said it did satisfy the clause; SMI said it did not.

BT relates that the court decided that in any event, the case
should proceed to trial as answering this question on the clause
alone would not help to solve the dispute over the repudiation of
the restructuring agreement.

"There are significant disputes of fact as to the interpretation of
(the clause) of the restructuring agreement that cannot be resolved
without the benefit of a full trial. However, the plaintiff's
pleadings are deficient and ought to be amended. It also does not
appear to be the case that a determination of the issue would fully
resolve the dispute between the parties," the court, as cited by
BT, said. "In the present case, the clause in question is only one
of several grounds invoked by the plaintiff (Hyflux) as the bases
for its claim in repudiatory breach."

According to BT, Hyflux had argued that the clause is only one out
of five instances of repudiatory conduct, and that even if the PUB
letter did not satisfy the clause, SMI would still not have been
entitled to terminate the agreement before the long stop date of
April 16. The five instances of "alleged repudiatory conduct" meant
that the defendant was wrong in repudiating the agreement, and so
Hyflux was entitled to the escrow sum.

But from SMI's perspective, the PUB letter simply did not amount to
consent under the clause in the restructuring agreement, so SMI
should be entitled to terminate the agreement, the report relates.

BT adds that the court decided that a full trial is needed to allow
the court to study the particular clause in the agreement, as key
witnesses can be cross-examined and all relevant evidence,
including that of pre-contractual negotiations, adduced.
Pre-contractual negotiations may shed light on the proper
interpretation and construction of the clause, and therefore the
matter should be left for trial rather than be determined "right
now".

"The evidence of pre-contractual negotiations could be material,
and might play a role in the determination of the interpretation
and construction of (the clause) of the restructuring agreement,"
it ruled.

The court added that Hyflux has also not yet sufficiently pleaded
its case specifically on the factual assertions and must amend its
pleadings to sufficiently address the concerns raised in this
judgement, BT notes.

                            About Hyflux

Singapore-based Hyflux Ltd -- https://www.hyflux.com/ --
provides various solutions in water and energy areas worldwide. The
company operates through two segments, Municipal and Industrial.
The Municipal segment supplies a range of infrastructure solutions,
including water, power, and waste-to-energy to municipalities and
governments. The Industrial segment supplies infrastructure
solutions for water to industrial customers.  It employs 2,300
people worldwide and has business operations across Asia, Middle
East and Africa.

As reported in the Troubled Company Reporter-Asia Pacific on May
24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte
Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation
Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High
Court of the Republic of Singapore pursuant to Section 211B(1) of
the Singapore Companies Act to commence a court supervised process
to reorganize their liabilities and businesses.  The Company said
it is taking this step in order to protect the value of its
businesses while it reorganises its liabilities.

The Company has engaged WongPartnership LLP as legal advisors and
Ernst & Young Solutions LLP as financial advisors in this process.

TRIYARDS HOLDINGS: Receives Statutory Demand from OCBC
------------------------------------------------------
Janice Heng at The Business Times reports that Triyards Holdings
has received a statutory demand from OCBC, dated Sept. 5, for about
US$11.57 million and VND1.13 billion (SGD67,310), the troubled
marine operator announced on Oct. 4.

BT relates that the statutory demand stated that if Triyards "fails
to pay, secure or compound the sums owed to the reasonable
satisfaction of OCBC" within 21 days of the letter, OCBC shall be
entitled to present an application for a winding-up order against
the company.

According to the report, the demand was issued in respect of an
Oct. 15, 2014 deed of guarantee and indemnity in which Triyards
guaranteed the banking facilities granted by OCBC to Triyards unit
Strategic Marine (V) Company Limited.

"The company is assessing the impact of the statutory demand and is
reaching out to OCBC to explore the possibility of an amicable
resolution to the matter," Triyards, as cited by BT, said.

It advised shareholders and potential investors to read this and
further announcements carefully, and for shareholders to exercise
caution in dealing in its securities, adding that further
announcements will be made as and when there are material
developments, BT relays.

Triyards shares have been suspended from trading since September
2017, the report notes.

                        About Triyards Holdings

Triyards Holdings Limited is a Singapore-based investment holding
company. The Company operates through Engineering and Fabrication
Services segment. The Company's geographical segments include Asia,
Europe and Other Countries. The Company provides integrated
engineering, fabrication and ship construction solutions for the
global offshore and marine industry. The Company focuses on
shipbuilding, ship conversions, medium to heavy fabrication works
and ship repairs. The Company's offerings include offshore support
vessels, liftboats, research vessels, aluminum built security
vessels, chemical tankers and windfarm service vessels. The
Company's business and facilities include specialized shipbuilding;
ship repair, maintenance and conversion; rig building, and offshore
engineering, construction and fabrication.

The Company's Strategic Marine's military portfolio includes
Inshore Patrol Vessels, Fast Response Vessels, Offshore Patrol
Vessels and Landing Craft.

The company is the yard operating arm of offshore and marine group
Ezra Holdings, which filed for bankruptcy protection in the US in
2017.



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

[*] 50% of 6-Year Old Restaurants in Seoul Go Bust as of Sept.
--------------------------------------------------------------
Yonhap News Agency reports that nearly half of the restaurants that
newly opened in 2013 had gone out of business by September this
year, data showed on Oct. 3, due mainly to the prolonged economic
slump and rising costs.

Around 15,000 of the 31,000 restaurants, cafes and bars that
launched six years ago in the capital city had closed their doors
as of last month, Yonhap discloses citing data compiled by the
Seoul metropolitan government.

Most of the shops that shut down were operated by individuals,
rather than being corporate-run chains, the report notes.

For example, all of the 68 Starbucks coffee chains opened in Seoul
in the year were still operating, the data showed, Yonhap says.

In contrast, more than 3,000 cafes opened in Seoul in 2013, while
only 55 percent of them had survived as of this year.

Around 53 percent and 72 percent of bakeries and fast-food stores,
respectively, also shut their doors over the cited period, it
added, Yonhap relays.

According to Yonhap, industry watchers said the high number of
shops going out of business apparently came amid the growing cost
burdens, including wages and rent, along with the weaker consumer
sentiment.

"Due to the weak job market, many people are starting businesses
without sufficient preparation, leading to a high number of
closures," Yonhap quotes Joo Won, a researcher at Hyundai Research
Institute, as saying.



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

IDEAL FINANCE: Fitch Places B+(lka) Nat'l. LT Rating on Watch Pos.
------------------------------------------------------------------
Fitch Ratings Lanka placed Ideal Finance Limited's National
Long-Term Rating of 'B+(lka)' on Rating Watch Positive. This
follows an announcement that India's Mahindra & Mahindra Financial
Services Limited will progressively invest LKR2 billion
(approximately USD11 million) to acquire a 58.2% stake in Ideal.

KEY RATING DRIVERS

The RWP reflects Fitch's belief that Ideal's rating could benefit
from the change in shareholding and increased probability of
support once MMFSL's effective control of Ideal is established in
light of MMFSL's potentially stronger credit profile.

The RWP also reflects the introduction of new capital and possible
improvement in Ideal's company profile, which could strengthen the
company's standalone profile.

MMFSL plans to invest the equity in three tranches up to 2021, with
an initial investment of LKR700 million. Fitch expects the minimum
regulatory capital requirement of LKR2.5 billion by January 1, 2021
to be met at the end of the transaction, at which point Fitch
expects MMFSL to have acquired effective control of Ideal.

RATING SENSITIVITIES
Fitch expects to resolve the RWP once Fitch has concluded its
assessment of MMFS's ability to provide support to Ideal, and have
greater clarity on the linkages between Ideal and MMFSL.

Fitch will maintain the RWP beyond the typical six-month horizon,
with parental support likely to be factored into the rating at the
point when MMFSL has acquired effective control of Ideal. Fitch's
view of support would include an assessment the level of strategic
importance of the Sri Lankan market and Ideal to MMFSL, the extent
of integration, branding and provision of broader funding support.

The RWP also reflects potential upside to Ideal's rating in terms
of its stand-alone profile which could benefit from improved
capitalisation and business profile due to MMFSL's investment.

Fitch will remove the RWP if the investment does not take place.
The rating would then continue to be driven by Ideal's intrinsic
credit profile.

Issuer Disclosure on Regulatory Action

The Central Bank of Sri Lanka has imposed a cap of LKR700 million
on total deposits due to Ideal's non-compliance with the interim
minimum capital requirement of LKR1.5 billion.

The 'Issuer Disclosure on Regulatory Action' heading was provided
by the issuer and is included pursuant to applicable regulatory
requirements. Fitch Ratings Lanka is not responsible for the
contents of such information.



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

NUTIFOOD NUTRITION: Fitch to Assign B+(EXP) Long-Term IDR
---------------------------------------------------------
Fitch Ratings expects to assign Vietnamese dairy product producer,
Nutifood Nutrition Food Joint Stock Company, a Long-Term
Foreign-Currency Issuer Default Rating of 'B+(EXP)'. The Outlook is
Stable. Fitch has also assigned the company's proposed US dollar
unsecured notes an expected rating of 'B+(EXP)' with a Recovery
Rating of 'RR4'.

The expected IDR assumes that Nutifood will raise sufficient funds
from the proposed US dollar bonds to refinance debt maturing in the
next 12 months, which would improve its liquidity and debt maturity
profile. The final ratings are contingent upon the success of the
proposed bond issue and receipt of final documents conforming to
its current understanding.

Nutifood's rating reflects its strong position in Vietnam's
nutritional dairy products and dairy-based beverages market,
ranking as the third largest in the country by retail volume and
fifth largest by value. Fitch believes the company is
well-positioned to benefit from growth in Vietnam's consumption
expenditure, supported by the company's financial profile, which is
well-placed for its rating level. However, the company is small
compared with global peers even though Fitch forecasts its EBITDA
to almost double by the end of 2022 from USD50 million in 2018.

KEY RATING DRIVERS

Small Size: Nutifood's small scale, measured by EBITDA, compared
with global packaged food companies constrains its rating. The
company reported EBITDA of USD50 million in 2018. Fitch believes
that Nutifood will be able to capitalise on the expected growth in
the Vietnamese economy, particularly as it continues to expand its
production and distribution facilities, and increase its EBITDA to
around USD100 million by 2022. Despite this, Fitch expects the
company to remain small by global standards for the foreseeable
future, which will continue to constrain its rating.

Leading Domestic Dairy Producer: Nutifood is one of the top five
milk formula companies in Vietnam by both volume and value. The
company has differentiated itself from other dairy producers in
Vietnam by offering innovative nutrition products that are tailored
to the nutritional needs and taste preferences of the Vietnamese
population.

Partnerships Reinforce Market Position: Nutifood continues to build
on this leading position by partnering the Vietnamese government
and collaborating with global companies to bring quality products
to Vietnam. For example, the company supplies milk for government
health initiatives; partnered with BASF and Sweden's Backahill
Group and Skanemejerier Ekonomisk Forening to enhance its products;
distributes Asahi Group's premium 'Wakodo' brand (the number one
infant food brand in Japan) baby formula; and obtained US Food and
Drug Administration (FDA) approval to export to the US.

Fitch believes that these collaborations highlight Nutifood's
knowledge and distribution channels in Vietnam, and its strong
position in various categories of nutrition products in the
country. They also put the company in a good position to take
advantage of growth from rising incomes in Vietnam.

Strong Growth Fundamentals: Vietnam is one of the largest consumer
markets in south-east Asia with a population of 96.5 million in
2018, and increasing consumer spending. Fitch expects growth in the
Vietnamese dairy market to be supported by greater health
consciousness. The government has introduced initiatives to address
malnutrition and stunting, whose levels remain high by global
standards. Fitch also expects a high birth-rate and consumers
increasingly seeking convenience with nutrition will continue to
drive demand for Nutifood's products, particularly its
ready-to-drink products.

The company's revenue rose by CAGR of 11.2% for 2016-2018, and
Fitch expects this to accelerate over the next five years as it
completes new production and distribution facilities. Nutifood's
involvement in several government initiatives to improve national
nutrition and health, its approval to export to the US and
partnerships with several international companies will also bolster
its reputation in Vietnam and support its continued growth. The
promising outlook of the dairy sector, however, comes with
increased competition, both domestic and international.

Extensive Distribution Network: Nutifood's distribution network
spans all 58 provinces and five municipalities in Vietnam, with its
products available in around 100,000 outlets through 193
distributors. This gives the company a competitive advantage in
reaching customers, particularly in rural areas, where demand is
growing faster than in urban areas but which remain
underpenetrated. Fitch believes that Nutifood is strongly placed to
continue to tap this growing rural demand, with rural sales making
up around 80% of revenue in 2018 and most of its products priced to
target rural consumers.

Strong R&D Supports Premiumisation: Fitch believes that Nutifood's
prioritisation of R&D will help it shift towards premium products,
which the company expects to drive growth, especially in
higher-income urban areas, and diversify its product range. Its
main brand GrowPlus+ accounted for 44% of 2018 gross revenue. Its
R&D focus is supported by 24 staff, collaborations with local and
international organisations, and increasing investments each year.
Fitch believes the commitment to R&D will improve margins and help
Nutifood capture new customers and strengthen its position in
premium products, such as liquid and milk alternatives, which
contribute 26% of revenue after their launch in 2015.

Strong Financial Structure: Nutifood's leverage is strong for its
rating and was below 1.5x from 2015 to 2017, before rising to 2.9x
in 2018 due to higher debt to finance its expansion. After the
proposed bond issuance, Fitch expects leverage to fall by around
0.5x in 2019. Thereafter, Fitch expects leverage to fall below 2.0x
by 2021 as profitability increases as investments to expand
capacity and shift towards premium products begin to generate
revenue and reduce costs. Leverage will also decline due to a cut
in the dividend payout ratio to a maximum of 30% of net profit as
Nutifood prioritises the strength of its balance sheet.

Corporate Governance: Nutifood's Management and Corporate
Governance score of 'bb' reflects its high ownership concentration,
and limited board independence and financial transparency compared
with global peers. However, Fitch believes that these risks are
offset by the quality of Nutifood's financial audits and the
increased transparency that will result from the proposed bond
issue, and has captured this within the proposed rating.

DERIVATION SUMMARY

Nutifood's rating is constrained by its small scale relative to
global packaged food peers - particularly those rated in the 'B'
rating category, which typically generate two to three times
Nutifood's 2018 EBITDA. This is partially offset by Nutifood's
stronger financial profile - particularly lower leverage - than
peers rated in the mid-to-low 'B' rating category, including Grupo
Embotellador Atic, S.A. (Atic, B/Stable) and Yasar Holding AS
(B-/Negative).

Nutifood has a better governance structure than Atic and this,
combined with its stronger financial profile, underscores the
one-notch rating differential between the two issuers. Nutifood's
better governance structure is also a key differentiator from
Russian peer, JSC Holding Company United Confectioners (UC,
B/Stable). Both companies have similar financial profiles, but
Nutifood's is expected to improve over the rating horizon as its
forecast growth and ability to pass on cost inflation to consumers
are likely to protect its margins, compared with UC, which is
exposed to a declining market and higher competition. These factors
lead us to rating Nutifood one notch higher than UC.

Mastellone Hermanos Sociedad Anonima's (CCC) has weaker margins and
its rating is constrained by the Country Ceiling on Argentina,
while Nutifood has lower leverage. These factors explain the
four-notch rating differential between Mastellone and Nutifood. The
two-notch difference with Yasar's rating is explained by the
Turkish company's significantly weaker financial profile and cash
generation ability, high FX risk exposure, lower margins and
exposure to more cyclical businesses than Nutifood, despite it
being around double the size of Nutifood.

KEY ASSUMPTIONS

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

  - Revenue growth of between 10% and 15% per annum from 2019 to
2021, before moderating to the high single digits in 2022

  - EBITDA margins to return to around 15% from 2020

  - Capex of VND650 billion in 2019, VND862 billion in 2020, VND464
billion in 2021 and VND242 billion in 2022

  - Dividend payout ratio to be a maximum of 30% of net profit

RATING SENSITIVITIES

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

Fitch does not anticipate any positive rating action over the next
18-24 months. However, Fitch may consider positive rating action
should the company achieve a material improvement in operating
scale, while maintaining a stable financial profile.

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

  - Operating EBITDAR/(interest paid + rents) declining to below
2.0x (2018: 5.8x)

  - Total adjusted net debt/operating EBITDAR deteriorating to
above 3.0x (2018: 2.4x)

  - A change in the company's dividend policy that it leads to an
inability to maintain neutral to positive free cash flow

LIQUIDITY AND DEBT STRUCTURE

Solid Liquidity, Capital Access: Nutifood had VND438 billion of
cash on hand at FYE18, in line with its policy to have a minimum of
VND300 billon on hand. Its cash is held in cash and deposits with
maturities up to 12 months at banks. At FYE18, of this balance,
VND134 billion was pledged to obtain short term loans from
commercial banks.

The issuance of the proposed bond will diversify the company's
funding sources, but will expose Nutifood to FX risks, particularly
given the restrictions on hedging in Vietnam.

NUTIFOOD NUTRITION: S&P Assigns Prelim 'B' ICR, Outlook Stable
--------------------------------------------------------------
On Oct. 3, 2019, S&P Global Ratings assigned its preliminary 'B'
long-term issuer credit rating to Nutifood Nutrition Food Joint
Stock Co. S&P also assigned its preliminary 'B' issue rating to the
proposed U.S. dollar notes to be issued by Nutifood and guaranteed
by its subsidiaries.

S&P said, "Our preliminary rating is based on the expectation that
Nutifood will successfully issue the proposed senior unsecured
notes and use the proceeds of the bond to repay debt of about
US$115 million, to fund product development, upgrade, and expansion
of production facilities, and for general corporate purposes.

"Our rating also reflects Nutifood's small scale compared with its
global peers, concentration risk in Vietnam, and a persistently
long working capital cycle." The company's significant brand equity
and strategy temper these weaknesses.

Nutifood's small scale will constrain the company's earnings
predictability for at least the next three years because Nutifood
faces much larger and better-funded peers. With about 8% market
share, the company is a distant third in a domestic dairy market
that is dominated by incumbent Vietnam Dairy Products Joint Stock
Co. (Vinamilk), which has approximately 40% of the total market
share, and FrieslandCampina Vietnam Co. Ltd., with a market share
of about 17%, according to Euromonitor. We project Nutifood's
EBITDA to average Vietnamese dong (VND) 1.7 trillion-VND1.8
trillion between 2019 and 2021. Vinamilk's EBITDA is nearly 8x that
of Nutifood.

S&P does not think that Nutifood's scale or market share will
change materially over the next few years because competitive
pressures from domestic and international dairy companies will
likely stay high in the promising domestic market. The
Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP) removed import tariffs on dairy products from
New Zealand, Singapore, and Japan in January 2019. S&P believes
this will add a layer of competitive pressure, especially from
foreign producers seeking to tap Vietnam's favorable demographics.

Intense competitive pressures in Vietnam's domestic market,
combined with Nutifood's modest market share, structurally reduces
the predictability of the company's revenue growth and margins. In
particular, limited bargaining power with suppliers and price
competition in its target market make it difficult for Nutifood to
fully pass on increases in raw material prices to its customers.
This partially contributed to a decline in reported EBITDA margin
to about 12.7% in 2018, from nearly 20% in 2016. EBITDA margin fell
further to about 11.5% for the half year ended June 30, 2019, due
to higher incentives given to distributors. Revenue growth has also
been volatile over the past three years, ranging from 22% in 2017
but dropping to barely 1% in 2018.

Nutifood has extended longer credit terms to customers in some
periods, while building up inventory to ensure product
availability. This has created periods of sizable working capital
calls on the company's cash flows and reduces visibility on its
liquidity position. Accounts receivable have been volatile; they
more than doubled between 2017 and 2018 despite modest revenue
growth over the period, before falling in the first half of 2019.
Inventories nearly doubled between 2016 and 2019. S&P said, "We
expect annual working capital outflows to persist as Nutifood
scales up. We capture annual working capital outflows of about
VND450 billion between 2019 and 2021, noting that working capital
requirement exceeded VND1 trillion in 2017."

Nutifood's operations will remain concentrated in Vietnam through
2021, in our base case. The company generates nearly all its
revenue and profits from the domestic market. The accretion of
substantial diversification benefits from recent investments
outside of Vietnam, including a Sweden joint venture and exports to
the U.S., remains distant. Single country concentration exposes the
company to changing customer tastes, consumption patterns, and
substitution risks, compared with higher-rated peers such as FAGE
International S.A.

S&P believes Nutifood's debt tolerance has increased. However, the
longer-term debt will reduce refinancing risks. Gross debt will
spike to more than VND5 trillion through 2020 following the
issuance of the proposed notes. This compares with gross debt of
about VND3.5 trillion in 2018 and about VND2 trillion in 2016 and
2017. The company substantially invested in working capital and new
capacity in 2017 and 2018. Coupled with dividend payouts, this led
to a cumulative negative discretionary cash flow (DCF) in excess of
VND2.5 trillion over that period. The company's DCF will stay
negative annually in 2019 and 2020, averaging negative VND350
billion, even under our base case of lower capital spending.

The proposed issuance will increase Nutifood's debt-to-EBITDA ratio
to about 3.5x on average between 2019 and 2020. This is up from
about 1.5x in 2017. S&P said, "We forecast EBITDA coverage to
average 3.75x in 2020 and 2021. We consider those levels as
appropriate for the 'B' rating on the company, in light of its
modest scale and the lack of visibility of its revenue growth and
margin patterns."

The proposed notes will also expose Nutifood to foreign currency
fluctuations, given its revenues are substantially denominated in
Vietnamese dong. S&P estimates that the bond will account for about
85% of the company's borrowings, with the rest of the capital
structure comprising bank loans. Nutifood's hedging strategy will
only partially address the currency mismatch in its balance sheet.
This currency mismatch will exacerbate a moderate foreign currency
mismatch in its operations because about a third of its costs are
denominated in U.S. dollars.

S&P said, "Despite Nutifood's relatively small scale, we recognize
that the company has a fairly solid brand equity with a clearly
identified target customer base in the niche segment of speciality
milks. Its 'GrowPLUS+' brand has grown to become the second-largest
brand in the milk formula segment with nearly 14% of market share.
Considering that 'GrowPLUS+' is a specialty product, its second
position in the overall formula market indicates consumers' belief
in the company's value proposition of products with higher
nutritional value. Nutifood is also developing a good record of
introducing new products, which will underpin its ability to grow
its scale and consolidate its position in this niche market. While
the company has ventured into the non-dairy business of coffee and
sugar, we expect it to remain focused on its core dairy business,
which we estimate will still account for over 90% of its net
revenue over the next two years.

"In our opinion, the proposed notes issuance, while raising
leverage, also provides Nutifood with sufficient liquidity for the
next 24 months. We estimate the company will maintain cash that is
in excess of VND1.5 trillion in the next two years. This provides a
satisfactory liquidity buffer against our base-case assumption of
negative discretionary cash flows over the period.

"The 'B' rating incorporates risks associated with Nutifood's
modest track record of operations at higher debt levels and through
an industry cycle, moderate cash leakage in the corporate
structure, and its unlisted status. The company is privately held,
and its largest operating entity--Binh Duong Nutifood Nutrition
Joint Stock Co., which contributes to about 90% of Nutifood's
consolidated revenue--will still be 28.8% directly owned by
Nutifood's shareholders post this issuance. This will create some
moderate cash leakage through dividend payments. While our base
case assumes a 30% dividend payout of Nutifood's consolidated net
income, we estimate that a 50% dividend payout--the maximum in the
proposed bonds document--will have a limited impact on the credit
metrics at least over the next two years, given the ample cash that
the entity intends to maintain. We understand shareholders have no
other sizable business or debt obligations outside of Nutifood.

"The stable outlook reflects our expectation that Nutifood will
largely preserve its market share in the Vietnamese dairy industry
over the next 24 months with its significant brand equity as the
company continues to expand its operations. The stable outlook also
factors in our expectation that Nutifood will not pay excessive
dividends and undertake debt-funded capital spending or
investments, significantly more than our expectations.

"We may lower the rating if Nutifood's leverage increases, such
that the ratio of debt to EBITDA exceeds 4.0x, or EBITDA interest
coverage falls below 3.0x on a sustained basis. This could happen
if revenue growth is in the low single-digit range for 2020, while
margins stay in the low double digits.

"We could also lower the rating if Nutifood's liquidity
deteriorates because of rapid working capital increases, or a
resumption of aggressive capital spending or dividend payments.

"We could raise the rating if Nutifood expands its scale and market
position, and demonstrates a longer record of improved margins and
margin predictability. An upgrade would also be contingent upon the
company demonstrating prudent working capital management, and
investment and dividend discipline, with a ratio of debt to EBITDA
below 3.0x."




===============
X X X X X X X X
===============

SOLOMON ISLANDS: Moody's Affirms B3 Issuer Ratings, Outlook Stable
------------------------------------------------------------------
Moody's Investors Service affirmed the Government of Solomon
Islands' local and foreign currency long-term issuer ratings at B3
and maintained the stable outlook.

The affirmation of the B3 issuer rating is underpinned by Moody's
assessment that support from development partners and ongoing
fiscal reforms will continue to underpin Solomon Islands' fiscal
strength and sovereign credit profile, although Moody's expects the
government's debt burden to increase over the next few years. This
is weighed against Moody's expectation for economic resiliency to
remain very low given the small size of the economy, low incomes,
as well as structural and institutional constraints that will take
time to address.

The stable outlook reflects balanced risks. On the upside, the
ongoing implementation of major infrastructure projects may raise
private investment beyond Moody's current expectations, in turn
raising the country's economic potential, competitiveness, and/or
diversification prospects. On the downside, slowing global and
regional growth and/or political volatility that threatens the
implementation of fiscal reforms and sound macroeconomic policies
may result in a wider fiscal deficit, higher government debt and
higher liquidity risk relative to Moody's current projections.

Solomon Islands' long-term local currency bond and deposit ceilings
are unchanged at B2. The long-term foreign currency bond and
deposit ceilings are also unchanged at B2 and Caa1, respectively.
The short-term foreign-currency bond and deposit ceilings are
unchanged at Not Prime. These ceilings typically act as a cap on
the ratings that can be assigned to the obligations of other
entities domiciled in the country.

RATINGS RATIONALE

RATIONALE FOR RATING AFFIRMATION

SUPPORT FROM DEVELOPMENT PARTNERS AND ONGOING FISCAL REFORMS
UNDERPIN FISCAL STRENGTH AND CREDIT PROFILE

Solomon Islands' B3 rating is underpinned by the country's fiscal
strength, which reflects the substantial financial support from
development partners that has resulted in low government debt and
high debt affordability relative to similarly rated peers. Although
Moody's expects the government debt burden to double by 2023,
still-substantial financial assistance from development partners,
combined with ongoing fiscal reforms, will continue to support the
sovereign's fiscal strength and credit profile.

The implementation of large infrastructure projects, particularly
the Tina River Hydropower Project (TRHDP), will raise debt levels
over the next few years. TRHDP will cost around 18% of 2019F GDP,
although a sizeable share of grant funding reduces the government's
debt exposure to around 13% of 2019F GDP. Moody's expects
construction for the project to commence at the beginning of 2020
and take five years to complete. Based on Moody's assumption that
the drawdown of loans will be spread out over the construction
period, Moody's expects the government's debt burden to double to
around 20% of GDP by 2023 from around 10% of GDP as of the end of
2018. However, consistent with the country's high fiscal strength,
government debt as a share of GDP will continue to remain lower
than similarly rated peers and debt affordability will remain high,
as all of the debt funding will be from international financial
institutions at concessional terms.

Ongoing fiscal reforms have the potential to further mitigate the
impact of borrowing for infrastructure investment on the
government's debt burden and debt affordability. The government is
aiming to introduce a new public financial management (PFM)
regulation next year aimed at administrative changes that would
raise revenue efficiency, tighten procurement procedures, and
improve the process of multi-year budgeting. The government is also
considering simplifying the tax structure, for example through the
introduction of a value-added tax that would replace current import
and export duties and goods and services taxes. The fiscal reforms
are being designed and implemented with significant support from
development partners. If effective, the measures would raise fiscal
efficiency and hence government revenue.

These measures are in addition to efforts to reduce discretionary
spending in the form of Constituency Development Funds (CDFs),
which fell to around 1.2% of GDP in the 2019 budget from as high as
4-5% of GDP over the past five years.

Moreover, grant funding available to the government will increase
over the next decade relative to 2018 levels. In particular,
Australia has recently committed an additional AUD250 million (14%
of 2019F GDP) in grants for infrastructure development in Solomon
Islands, spread over 10 years. This is in addition to the AUD2
billion in loans and grants under the "Pacific step-up" that
Australia has announced for the South Pacific region.

Larger amounts of grants will allow the government to meet its
development spending needs while aiming for balanced budgets.
Moody's expects an average government fiscal deficit of around
1-1.5% of GDP over 2019-23.

Narrow fiscal deficits, in combination with loan disbursements
exceeding these deficits, will also allow the government to build
up cash balances. Cash balances have increased to around 1.3 months
of recurrent spending, thanks in part to the government's windfall
revenue last year that resulted in a fiscal surplus of around 4% of
GDP. Moody's expects the enhancements to PFM to limit the scope for
cash balances to fall to low levels that will threaten government
liquidity. Further mitigating government liquidity risk is the size
of assets at the Solomon Islands National Provident Fund, which are
mostly invested domestically and are sufficient to cover more than
3 times the government's debt burden as of the end of June 2019.

ECONOMIC RESILIENCY LIMITED BY SMALL SIZE OF ECONOMY, LOW INCOMES,
AND STRUCTURAL AND INSTITUTIONAL CONSTRAINTS THAT WILL TAKE TIME TO
ADDRESS

Balanced against Solomon Islands' fiscal strength is its low
economic resiliency. This reflects the small size of economy, very
low incomes, reliance on a depleting natural resource, and exposure
to environmental risk. Structural and institutional constraints
also weigh on economic competitiveness, government effectiveness
and hence diversification prospects. Moody's expects ongoing
technical support from development partners to mitigate the impact
of some of the institutional challenges and the major
infrastructure projects, when completed, to partly address the
economic constraints. That said, Moody's also expects the
improvements to economic and institutional strength to take time to
emerge, and unlikely before the major projects are fully
implemented.

Solomon Islands' economy is second smallest among the sovereigns
that Moody's rates, and wealth levels are among the lowest. The
country is also reliant on declining timber resources. The forestry
industry contributed an average of around 1 percentage point to
real GDP growth over the past five years, and exports of round logs
made up two-thirds of exports over this period. Meanwhile, Solomon
Islands is highly exposed to environmental risks given its
topography. The economic limitations compound the impact of climate
change-related natural disasters on the sovereign credit profile,
and Moody's does not expect these limitations to ease over the next
five to ten years.

The government is aiming to gradually reduce the country's reliance
on the logging industry, with output converging towards sustainable
levels more than 50% below the 2018 levels. Should the government
meet its targets for the logging industry, this would have a modest
negative impact on real GDP growth, although increased construction
activity -- in large part related to TRHDP -- will partly offset
any decline in logging output over the next few years. Moody's
expects real GDP growth to decline to 2.5% in 2019 due to lower
logging activity but pick up to 3.0-3.5% over 2020-23 as
construction activity rises.

Longer term economic prospects depend on the Solomon Islands'
economic competitiveness and diversification potential. Moody's
assesses these to be currently constrained by structural
limitations. Economic constraints include limited access to
internet that is also slow and expensive; high cost of electricity
and still-limited coverage; as well as poor transport
infrastructure. Institutional constraints include low
administrative capacity and coordination challenges that are common
to small, narrowly diversified economies; underdeveloped regulatory
frameworks and standards, and poor data quality that complicate
investment decisions; as well as a volatile political environment
that is prone to corruption and distracts policymakers from
longer-term policies or reform measures.

Moody's expects the planned completion of the undersea cable
project by the end of 2019 and TRHDP to address some of the
economic constraints. Improved internet connectivity can increase
public sector efficiency, raise productivity levels, and allow new
sectors to develop, while TRHDP will significantly increase the
electricity supply available to Honiara, the country's capital and
economic centre, and substantially lower the cost of electricity
across the archipelago given uniform tariffs countrywide, reducing
the cost for businesses.

Ongoing assistance from development partners, including through
secondments and staffing of key positions by international experts
and the provision of technical expertise, also support the smooth
functioning of government.

That said, Moody's expects the structural constraints to only
gradually ease over time. The benefits to economic competitiveness
and diversification prospects will slowly materialise as/when the
key projects are completed and/or when investment responds to the
reduced constraints. Institutional capacity building and
enhancements to regulation and data quality will also take time.
This leaves the sovereign credit profile vulnerable to shocks given
Moody's expectation for still-low economic resiliency over the next
five to ten years.

RATIONALE FOR THE STABLE OUTLOOK

The decision to maintain the stable outlook reflects balanced risks
to the B3 rating.

On the upside, the ongoing implementation of major infrastructure
projects may crowd-in investment in larger amounts or at a faster
pace than Moody's current expects, which would raise the country's
economic potential, competitiveness, and/or diversification
prospects.

On the downside, slowing global and regional growth may have a
larger impact on Solomon Islands' growth prospects than currently
assumed. Political volatility, given the fragmented parliament, may
also threaten the implementation of fiscal reforms and sound
macroeconomic policies. These would potentially result in a weaker
budget balance and government debt trajectory and higher liquidity
risk relative to Moody's current projections.

ENVIRONMENTAL, SOCIAL, GOVERNANCE CONSIDERATIONS

As mentioned, environmental considerations are material to Solomon
Islands' issuer rating. The topography of the small island
archipelago and dependence on the forestry and agriculture
industries expose the economy and government finances to the
physical impact of climate change.

Governance considerations are also material to the rating. In
particular, control of corruption remains a challenge with issues
of transparency and leakages surrounding CDFs, while government
effectiveness ranks one of the lowest among sovereigns rated by
Moody's.

As regards social considerations, Solomon Islands' poverty rate and
low level of resource utilisation stem in part from limited access
to basic infrastructure such as roads, education, electricity and
the internet. These challenges will be partly addressed through
major infrastructure projects underway or in the pipeline, albeit
gradually over time.

WHAT COULD CHANGE THE RATING UP

Upward pressure on Solomon Islands' rating would develop if
economic competitiveness and/or prospects for diversification were
to materially increase beyond Moody's current expectations. These
may, for instance, be the result of greater confidence that ongoing
infrastructure investment will lower the cost of doing business. A
significant strengthening in institutional capacity and government
effectiveness, possibly through long-term programmes with
development partners, would also put upward pressure on the
rating.

WHAT COULD CHANGE THE RATING DOWN

Downward pressure on the rating would emerge if renewed fiscal
slippages and/or administrative lapses were to result in a
worsening fiscal deficit and government debt trajectory and/or
liquidity strains beyond Moody's current expectations. Political
volatility that threatened the implementation of fiscal reforms,
sound macroeconomic policies and/or engagement with development
partners would also put downward pressure on the rating.

GDP per capita (PPP basis, US$): 2,242 (2018 Actual) (also known as
Per Capita Income)

Real GDP growth (% change): 3.9% (2018 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 3.2% (2018 Actual)

Gen. Gov. Financial Balance/GDP: 3.9% (2018 Actual) (also known as
Fiscal Balance)

Current Account Balance/GDP: -4.2% (2018 Actual) (also known as
External Balance)

External debt/GDP: 30.7% (2018 Estimate)

Level of economic development: Very Low level of economic
resilience

Default history: At least one default event (on bonds and/or loans)
has been recorded since 1983.

On September 30, 2019, a rating committee was called to discuss the
rating of the Solomon Islands, Government of. The main points
raised during the discussion were: The issuer's economic
fundamentals, including its economic strength, have not materially
changed. The issuer's institutional strength/ framework, have not
materially changed. The issuer's fiscal or financial strength,
including its debt profile, has materially decreased. The issuer's
susceptibility to event risks has not materially changed.

The principal methodology used in these ratings was Sovereign Bond
Ratings published in November 2018.


                           *********


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

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

Copyright 2019.  All rights reserved.  ISSN: 1520-9482.

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