/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/220706.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, July 6, 2022, Vol. 25, No. 128 Headlines A U S T R A L I A BB PLANT: Second Creditors' Meeting Set for July 12 BEAM HQ: First Creditors' Meeting Set for July 13 CROWN RESORTS: S&P Lowers ICRs to 'BB-/B' Then Withdraws Rating DIVERSE SERVICES: Second Creditors' Meeting Set for July 12 KAHLEFELDT SECURITIES: First Creditors' Meeting Set for July 13 SARA GLOBAL: First Creditors' Meeting Set for July 13 SNEAKERBOY RETAIL: Up for Sale After Falling Into Administration C H I N A BANK OF BEIJING: Fitch Affirms 'BB+/B' IDRs, Outlook Stable CHINA EVERGRANDE: Seeking Creditors' Support Against Wind-up Bid CHINA GUANGFA: Fitch Affirms 'BB+/B' Issuer Default Ratings CHINA MINSHENG: Fitch Affirms 'BB+/B' IDRs, Outlook Stable HUA XIA BANK: Fitch Affirms 'BB+/B' IDRs, Outlook Stable KUNMING TRAFFIC: Fitch Affirms BB+ Ratings & Alters Outlook to Neg. PING AN BANK: Fitch Affirms 'BB+/B' IDRs, Outlook Stable SHIMAO GROUP: Creditors Getting Organized After US$1BB Default I N D I A AKAL PIPE: ICRA Keeps D Debt Ratings in Not Cooperating ALUMINIUM INDIA: ICRA Keeps D Debt Ratings in Not Cooperating DHARAMCHAND PARASCHAND: ICRA Keeps D Ratings in Not Cooperating DILIGENT MEDIA: ICRA Keeps D Debt Rating in Not Cooperating DUSMER TOOLS: ICRA Keeps C+ Debt Ratings in Not Cooperating EARTHCON DEVELOPERS: ICRA Keeps D Debt Rating in Not Cooperating EASTMAN METTCAST: ICRA Keeps C+ Debt Ratings in Not Cooperating EKAM AGRO: ICRA Lowers Rating on INR11cr LT Term Loan to D EVERSHINE SOLVEX: ICRA Keeps D Debt Ratings in Not Cooperating GANGES FORD: ICRA Keeps D Debt Ratings in Not Cooperating HIGH TECH: ICRA Keeps D Debt Ratings in Not Cooperating Category JAGDAMBA POULTRY: ICRA Keeps D Debt Ratings in Not Cooperating KALEESWARA GINNING: ICRA Keeps D Debt Ratings in Not Cooperating L&T HALOL: ICRA Keeps D Debt Rating in Not Cooperating Category LAKSHMI POULTRY: ICRA Keeps C+ Debt Ratings in Not Cooperating LML LIMITED: ICRA Keeps D Debt Rating in Not Cooperating Category LYPSA GEMS: ICRA Keeps D Debt Ratings in Not Cooperating Category MANN MEDICITI: ICRA Keeps D Debt Ratings in Not Cooperating MURUGAN FLOUR: ICRA Keeps D Debt Rating in Not Cooperating NICOMET INDUSTRIES: ICRA Keeps D Debt Ratings in Not Cooperating NORTH INDIA: ICRA Keeps D Debt Ratings in Not Cooperating OVERSEAS TRADERS: ICRA Keeps D Debt Ratings in Not Cooperating RLJ CONCAST: ICRA Keeps D Debt Ratings in Not Cooperating S A IRON: ICRA Keeps D Debt Ratings in Not Cooperating Category S.A.M APPARELS: ICRA Moves D Debt Ratings to Not Cooperating SABARI TEXTILES: ICRA Keeps D Debt Ratings in Not Cooperating SANTOSH COTTON: ICRA Keeps D Debt Ratings in Not Cooperating SATGURU METALS: ICRA Keeps D Debt Ratings in Not Cooperating SRINAGAR BANIHAL: ICRA Keeps D Debt Rating in Not Cooperating SUN HOSPITALITY: ICRA Keeps D Debt Rating in Not Cooperating SUNNY ENTERPRISES: ICRA Keeps D Debt Ratings in Not Cooperating WOOLWAYS (INDIA): ICRA Keeps D Debt Ratings in Not Cooperating N E W Z E A L A N D CLOUD 9: Creditors' Proofs of Debt Due on July 15 FOX EARS: Court to Hear Wind-Up Petition on July 22 [*] No. of Failed Businesses in NZ Down 50% on Pre-Covid-19 Levels P H I L I P P I N E S FARMERS SAVINGS: Creditors' Claims Deadline Set for Aug. 15 S I N G A P O R E ANCHORVALE RESIDENCES: Creditors' Proofs of Debt Due on Aug. 1 INTERUSH (SINGAPORE): Creditors' Proofs of Debt Due on Aug. 1 OPENET TELECOM: Creditors' Proofs of Debt Due on Aug. 2 SASPO LTD: Commences Wind-Up Proceedings TONG TIEN: Creditors' Proofs of Debt Due on July 15 ZILINGO PTE: Co-Founder Ankiti Bose Steps Down S O U T H K O R E A SOUTH KOREA: Bankruptcy Ct. Warns of Surge in Crypto-Related Cases S R I L A N K A SRI LANKA: Aims to Stop Money Printing as Inflation Nears 60% - - - - - ================= A U S T R A L I A ================= BB PLANT: Second Creditors' Meeting Set for July 12 --------------------------------------------------- A second meeting of creditors in the proceedings of BB Plant & Labour Pty Ltd has been set for July 12 2022, at 9:00 a.m. via Zoom. 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 July 11, 2022, at 4:00 p.m. Atle Crowe-Maxwell of DBA Advisory was appointed as administrator of the company on June 6, 2022. BEAM HQ: First Creditors' Meeting Set for July 13 ------------------------------------------------- A first meeting of the creditors in the proceedings of Beam HQ Pty Ltd will be held on July 13, 2022, at 11:00 a.m. via Microsoft Teams. Desmond Teng of Moore Recovery was appointed as administrator of the company on July 1, 2022. CROWN RESORTS: S&P Lowers ICRs to 'BB-/B' Then Withdraws Rating --------------------------------------------------------------- S&P Global Ratings has lowered its issuer credit ratings on Crown Resorts Ltd. to 'BB-/B' from 'BBB/A-2'. S&P also lowered the long-term issue credit ratings on the company's guaranteed notes to 'BB-' from 'BBB'. S&P kept the ratings on CreditWatch with negative implications. S&P then withdrew the ratings on Crown at the company's request. Blackstone Inc. and its affiliates have completed the acquisition of the shares they did not already own in Australia-based Crown Resorts Ltd. (Crown) following the receipt of regulatory and shareholder approvals. S&P said, "We lowered the ratings to reflect our view that Blackstone's takeover of Crown and the aggressive funding mix to facilitate the transaction has materially weakened Crown's credit profile. Blackstone has repaid all the rated debt. "We will no longer have access to information on Crown because it will become a private company. Considerable uncertainty remains on Blackstone's operating strategy and the final capital structure. "We kept the ratings on Crown on CreditWatch with negative implications prior to the withdrawal to reflect uncertainty regarding the group's capital structure, funding mix, and financial policies." DIVERSE SERVICES: Second Creditors' Meeting Set for July 12 ----------------------------------------------------------- A second meeting of creditors in the proceedings of Diverse Services (WA) Pty Ltd has been set for July 12, 2022, at 11:00 a.m. at the offices of The Fremantle Room. 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 July 11, 2022, at 4:00 p.m. Jimmy Trpcevski and David Ashley Norman Hurt of WA Insolvency Solutions were appointed as administrators of the company on June 9, 2022. KAHLEFELDT SECURITIES: First Creditors' Meeting Set for July 13 --------------------------------------------------------------- A first meeting of the creditors in the proceedings of Kahlefeldt Securities Pty Ltd will be held on July 13, 2022, at 10:30 a.m. at Mantra Pavilion Hotel. Shabnam Amirbeaggi of Crouch Amirbeaggi was appointed as administrator of the company on July 4, 2022. SARA GLOBAL: First Creditors' Meeting Set for July 13 ----------------------------------------------------- A first meeting of the creditors in the proceedings of Sara Global Pty Ltd will be held on July 13, 2022, at 10:30 a.m. at the offices of Worrells. Christopher Damien Darin of Worrells was appointed as administrator of the company on July 1, 2022. SNEAKERBOY RETAIL: Up for Sale After Falling Into Administration ---------------------------------------------------------------- Australian Financial Review reports that embattled luxury footwear and streetwear retailer Sneakerboy is up for sale after falling into administration due to financing problems. Sneakerboy, which sells high-end footwear brands such as Balenciaga for more than AUD1,000 a pair, had external administrators appointed by Sydney-based financier Octet Finance, as well as to four other related entities, including operating company Luxury Retail Group, on July 2. "The voluntary administration appointment has been made due to short-term financing difficulties being experienced by the company," administrators Hamilton Murphy said in a statement, AFR relays. "The difficult but prudent decision has been made to initiate the voluntary administration process. The administrator will now assess the ongoing viability of the business as he assesses the ability of the companies to continue to operate as a going concern." Hamilton Murphy said the collapsed companies had previously held discussions with interested parties to sell the business, adds AFR. About Sneakerboy Sneakerboy sells upmarket footwear and streetwear. The company operates three retail stores in Melbourne and one in Sydney, along with an online retail portal. Stephen Dixon of Hamilton Murphy Advisory was appointed as administrator of Sneakerboy Retail Pty Ltd, Sneakerboy Pty Ltd, Sneakerboy IP Pty Ltd, Luxury Retail Treasury Pty Ltd; and Luxury Retail Group Pty Ltd on July 2, 2022. ========= C H I N A ========= BANK OF BEIJING: Fitch Affirms 'BB+/B' IDRs, Outlook Stable ----------------------------------------------------------- Fitch Ratings has affirmed Bank of Beijing Co., Ltd.'s (BOB) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+', Short-Term IDR at 'B' and Viability Rating (VR) at 'b+'. The Outlook is Stable. Fitch is withdrawing BOB's Support Rating and Support Rating Floor as they are no longer relevant to the agency's coverage following the publication of Fitch's updated Bank Rating Criteria on 12 November 2021. In line with the updated criteria, Fitch has assigned BOB a Government Support Rating (GSR) of 'bb+'. KEY RATING DRIVERS Government Support-Driven IDR: The bank's Long-Term IDR is driven by Fitch's assessment of a moderate probability of government support, as indicated by the newly assigned GSR of 'bb+'. Fitch's view considers the bank's limited size and modest domestic systemic importance. D-SIB Designation: China's regulators designated BOB as a domestic systemically important bank (D-SIB) in October 2021. That said, Fitch believes the D-SIB designation alone may not materially affect the support propensity for BOB relative to peers with higher systemic importance or closer government linkages as the government's ability to provide support to a large number of D-SIBs may be constrained by the size of China's banking system in the event of systemic stress. Short-Term IDR: BOB's Short-Term IDR of 'B' is mapped to its Long-Term IDR. VR Does Not Drive IDRs: BOB's 'b+' VR is in line with the implied rating and does not drive its IDRs. Fitch has assigned the operating environment (OE) score of 'bbb-' above the 'bb' category implied score, as Fitch believes China's robust external finances and strong macroeconomic performance, reflected in the 'A+'/Stable sovereign rating, will support financial market and macroeconomic stability. However, Fitch has assigned several of the bank's financial factor scores below those implied by core metrics, reflecting the bank's off-balance-sheet exposures and activities. OE Outlook Revised to Stable: Fitch has revised the outlook on China's bank OE score to stable from positive, reflecting Fitch's view that a confluence of macroeconomic developments has increased the risk of a slowdown in structural reforms. Lingering weakness in China's property market and renewed Covid-19-related lockdowns, together with rising global inflation and interest rates, weigh on the country's near-term economic growth prospects, resulting in the easing of some policies. However, Fitch does not expect a material reversal in regulatory reforms already implemented. High Concentration in Beijing: BOB has close relationships with large state-owned enterprises (SOEs) in the capital, with around half of its loans and two-thirds of its revenue from the Beijing area, which has one of the most resilient local economies in China. BOB relies on corporate banking, especially loans to local SOEs, and has the lowest exposure to sectors that are most affected by the Covid-19 pandemic, such as unsecured consumer lending. Higher than Peers' Entrusted Investments: BOB's business profile score of 'bb' is lower than the 'bbb' implied category score due to issues over management and governance, which are not uncommon in China, given frequent management rotation and regulatory intervention. The score also reflects the bank's large exposure to shadow activities. Its entrusted investments, although declining, still made up around 13% of assets at end-2021, remaining one of the highest among mid-tier banks. These increase volatility in its business model and heighten the bank's execution challenges. No Major Asset-Quality Deterioration: The asset-quality score of 'b+' is below the 'bbb' category implied score to reflect the bank's larger non-loan exposure, weaker underwriting standards and higher growth appetite than indicated by its current financial metrics. Fitch does not expect any major deterioration in the bank's asset quality, while weakening in its impaired-loan ratio should be modest, as any worsening in property lending should be mitigated by BOB's modest direct exposure, at 7% of loans. BOB reported a stable impaired loan ratio of 1.5% at end-2021 due to its active NPL resolution in recent years, despite lingering risks in the domestic property sector. Stable Profitability: BOB's earnings and profitability score of 'b+' is below the 'bb' category implied score to reflect the understatement of risk-weight calculations from non-loan exposures. Fitch expects impairment charges to stay high amid persistent property-market stress and net interest margin (NIM) pressure from rate cuts and government directives to support micro and small enterprises, but NIM contraction should be mitigated by China's required reserve ratio cuts. Its reported operating profit/risk-weighted assets (RWA) was stable, at around 1.2% in 2021, benefitting from its focus in Beijing. Entrusted Investments Weigh on Capitalisation: BOB's capital and leverage score of 'b+' is below the 'bb' category implied score to reflect the bank's understatement of risk-weight calculations from non-loan exposures. Fitch expects its high entrusted investment exposure to continue to weigh on its capitalisation. Its reported common equity Tier 1 (CET1) ratio improved to 9.9% by end-1Q22 from 9.4% at end-2020 due to a slowdown in RWA growth. Rising LDR: BOB's funding and liquidity score of 'b+' is below the 'bbb' category implied score in light of the bank's reliance on non-deposit funding and its deposit structure. Its high off-balance-sheet exposures may strain its on-balance-sheet funding. BOB also has a weak retail deposit franchise due to its reliance on corporate banking. The Fitch-calculated loan/deposit ratio (LDR) rose to around 97% by end-2021 (the latest available) from 95% at end-2020. This ratio may be understated by the bank's high off-balance-sheet exposure, similar to other mid-tier peers. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: IDRS AND GSR The bank's Long-Term IDR and GSR will come under pressure if Fitch perceives that the central government's propensity and/or ability to provide timely extraordinary support to the bank is diminished. A sovereign rating downgrade could indicate diminished ability to support and lower propensity may be reflected through an enhanced resolution framework, though Fitch does not expect either scenario to occur in the near term. A reduction in the Beijing government's ownership or influence over BOB may also lower the state's propensity to support the bank if the reduction were to be significant, or if the bank's systemic importance were to be reduced. BOB's Short-Term IDR will be downgraded if its Long-Term IDR is downgraded to or below 'CCC+', which Fitch considers highly unlikely in the short-to-medium term. VR BOB's VR could be downgraded if there is a sustained increase in the bank's risk appetite, evident from continuous growth in entrusted investments or wealth-management products that significantly erodes asset quality and capital buffers. A sustained deterioration in the bank's financial metrics could lead to a VR downgrade, including a combination of the following reported core metrics: -- The four-year average of impaired loans/gross loans increasing to and sustained at around 8% (2018-2021 reported four-year average of 1.5%), although Fitch's assessment of asset quality will also consider other indicators, such as "special-mention" loans, loan-loss provisioning, and whether and to what extent Fitch believes reported metrics understate any deterioration in asset quality; and -- CET1 ratio falling below 8.0% without a credible path to return to existing levels. Factors that could, individually or collectively, lead to positive rating action/upgrade: IDRS AND GSR An upgrade of China's sovereign ratings could lead to positive rating action on the bank's GSR and its support-driven IDRs if that were to indicate greater ability to support BOB, with no less propensity to support. BOB's Short-Term IDR would be upgraded if its Long-Term IDR is upgraded. VR A sustained reduction in the bank's exposure to entrusted investments (13% of its assets at end-2021) to levels more aligned with the mid-tier bank average (9%) or improvement in transparency towards these activities, coupled with slower credit growth and stable profitability that allows its CET1 ratio to rise and stay above 10%, would be positive for its VR assessment. VR ADJUSTMENTS The OE score of 'bbb-' has been assigned above the 'bb' category implied score due to the following adjustment reason: sovereign rating (positive). The business profile score of 'bb' has been assigned below the 'bbb' category implied score due to the following adjustment reason: management and governance (negative) and business model (negative). The asset quality score of 'b+' has been assigned below the 'bbb' category implied score due to the following adjustment reason: non-loan exposure (negative) and underwriting standards and growth (negative). The earnings and profitability score of 'b+' has been assigned below the 'bb' category implied score due to the following adjustment reason: risk-weight calculations (negative). The capitalisation and leverage score of 'b+' has been assigned below the 'bb' category implied score due to the following adjustment reason: leverage and risk-weight calculation (negative). The funding and liquidity score of 'b+' has been assigned below the 'bbb' category implied score due to the following adjustment reason: non-deposit funding (negative) and deposit structure (negative). BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ESG CONSIDERATIONS BOB has an ESG Relevance Score of '4' for Financial Transparency as there are still structural issues around financial transparency and disclosure. Those are not captured in headline performance metrics in China and affect Fitch's assessment on the OE as well as the financial profile. BOB, like other mid-tier banks, is more exposed to this risk relative to state banks, due to its larger exposure to wealth-management products and entrusted investments stemming from the use of off-balance-sheet transactions. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. DEBT RATING PRIOR ---- ------ ----- Bank of LT IDR BB+ Affirmed BB+ Beijing Co., Ltd. ST IDR B Affirmed B Viability b+ Affirmed b+ Support WD Withdrawn 3 Support Floor WD Withdrawn BB+ Government Support bb+ New Rating CHINA EVERGRANDE: Seeking Creditors' Support Against Wind-up Bid ---------------------------------------------------------------- Reuters reports that China Evergrande Group is reaching out to its offshore creditors for their support to fight a lawsuit in a Hong Kong court aimed at liquidating the embattled property developer, according to a person with direct knowledge of the matter. Evergrande, which is deemed to be in default on its nearly $23 billion of offshore debt and is working on a debt restructuring plan, aims to submit the backing of creditors as part of the evidence to the court ahead of the first hearing on the winding-up petition on Aug. 31, the person said, Reuters relays. Last week, Top Shine Global Ltd, an investor in Evergrande unit Fangchebao, said it had filed a winding-up petition against the developer as it had not honoured a pact to repurchase shares from Top Shine in Fangchebao, recalls Reuters. A successful outcome of the petition could impact the developer's debt restructuring plan by diminishing the value of the overseas assets that are central to the interests of offshore creditors. The developer was not considering an out-of-court settlement with Top Shine at the moment, the source said. The vast majority of its creditors oppose the winding-up petition, the source added, without elaborating, according to Reuters. The person declined to be named as the deliberations on the firm's restructuring process are confidential, Reuters notes. Reuters says the petition marks the first lawsuit of its kind against Evergrande, which has over $300 billion in liabilities. Evergrande, formerly China's top-selling developer, said last week that Top Shine filed the liquidation petition over a financial obligation of $110 million, adding it will "vigorously" oppose the petition. It also said the lawsuit will not impact its offshore debt restructuring plan, expected to land by end-July, Reuters relates. Evergrande's restructuring proposal is taking shape and the company aims to reach consensus with offshore creditors on specific restructuring terms by end of this year, said the person. While a liquidation or fire sale of Evergrande assets will result in very little recovery for creditors, the developer is pushing ahead with its asset disposal plan with an aim to set aside such proceeds for restructuring purposes, said the person, according to Reuters. Reuters adds that the sale of Evergrande's Hong Kong headquarters building might conclude in the coming months, the person said, after a potential $1.7 billion deal for the same collapsed late last year. The sale of a plot of undeveloped land in Hong Kong's suburbs is also still underway, the person, as cited by Reuters, added. U.S. asset manager Oaktree Capital Management, a lender to Evergrande to develop that land plot, has sought to seize control of the asset by appointing a receiver in February, adds Reuters. About China Evergrande China Evergrande Group is an integrated residential property developer. The Company, through its subsidiaries, operates in property development, investment, management, finance, internet, health, culture, and tourism markets. Evergrande had CNY1.97 trillion (US$311 billion) of liabilities at the end of June 2021. Once China's biggest developer by sales, Evergrande fell into distress as cash dried up and the group overstretched itself on borrowings and ventures into car manufacturing. Evergrande hired outside financial advisers Houlihan Lokey and Admiralty Harbour Capital in September 2021 to engage with creditors soon after it ran into a liquidity squeeze. It has since worked with more advisers in the past two months by turning to China International Capital Corp, BOCI Asia and Zhong Lun Law Firm on its debt workout plan. As reported in the Troubled Company Reporter-Asia Pacific on June 7, 2022, Fitch Ratings has withdrawn the Long-Term Foreign-Currency Issuer Default Ratings (IDR) of 'RD' on Chinese homebuilder China Evergrande Group and its subsidiaries, Hengda Real Estate Group Co., Ltd and Tianji Holding Limited. Fitch has also withdrawn the senior unsecured ratings of Evergrande and Tianji of 'C', with a Recovery Rating of 'RR6', as well as the rating on the Tianji-guaranteed senior unsecured notes issued by Scenery Journey Limited of 'C', with a Recovery Rating of 'RR6'. Fitch has withdrawn the ratings as Evergrande and its subsidiarieshave chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for Evergrande and its subsidiaries. CHINA GUANGFA: Fitch Affirms 'BB+/B' Issuer Default Ratings ----------------------------------------------------------- Fitch Ratings has affirmed China Guangfa Bank Co., Ltd.'s (CGB) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+', Short-Term IDR at 'B' and Viability Rating at 'b'. The Outlook on the Long-Term IDR is Stable. Fitch has withdrawn the Support Rating and Support Rating Floor because they are no longer relevant to Fitch's coverage following the publication of Fitch's updated Bank Rating Criteria on November 12, 2021. In line with the updated criteria, Fitch has assigned CGB a Government Support Rating (GSR) of 'bb+'. KEY RATING DRIVERS Government Support-Driven IDR: CGB's Long-Term IDR underpins Fitch's assessment of the moderate likelihood of government support in the event of stress. This takes into consideration the bank's limited market share. There is no central government ownership of the bank or history of direct government support. D-SIB Designation: Chinese authorities designated CGB a domestic systemically important bank (D-SIB) in October 2021. Even so, Fitch believes that formal D-SIB designation alone may not significantly affect the state's propensity to support CGB relative to peers with higher systemic importance or closer government linkages. Fitch's view is that the government's ability to provide support to a large number of D-SIBs may be constrained by the size of China's banking system in the event of systemic stress. No Explicit Shareholder Support: Fitch does not factor in institutional support from China Life Insurance Company Limited (China Life, A/Stable) even though it is CGB's largest shareholder with a 44% stake. The high risk of financial-system contagion may limit the shareholder's ability to provide extraordinary support to the bank in the event of stress. In addition, the size of the bank relative to that of China Life may also limit the ability to provide timely and adequate support to CGB. Short-Term IDR: CGB's Short-Term IDR of 'B' is mapped from its Long-Term IDR. VR Does Not Underpin IDRs: CGB's assigned VR of 'b' is in line with the implied rating, and does not drive its IDRs. Fitch assigned the operating environment (OE) score of 'bbb-' above the 'bb' category implied score, as Fitch believes China's robust external finances and strong macroeconomic performance, as reflected in the 'A+'/Stable sovereign rating, will support financial market and macroeconomic stability. However, Fitch has assigned several of CGB's financial profile scores below those implied by core metrics, reflecting its off-balance-sheet exposures and activities. OE Outlook Revised to Stable: Fitch has revised the outlook on China's bank OE score to stable from positive, as the confluence of macro developments has increased the risk of a slowdown in structural reforms. Lingering weakness in China's property market and renewed Covid-19 lockdowns, together with rising global inflation and interest rates, weigh on the country's near-term economic growth prospects and some policies have been eased. However, Fitch does not expect a material reversal in regulatory reforms already implemented. Limited Franchise: CGB is a nationwide joint-stock commercial bank in China, with less than 1% market share in loans and deposits by end-2021. Its business profile score of 'bb-' is below the 'bbb' implied category score to reflect management and governance limitations and exposure to shadow-banking activities. Management and governance limitations are common in China because of frequent management rotation and regulatory intervention. Higher exposure to riskier types of loans and shadow-banking activities also render CGB's business model more susceptible than state banks to market volatility and regulatory changes. High Exposure to Credit Card Lending: CGB's asset quality score reflects a higher exposure than peers to riskier types of loans, but a modest loan-loss allowance ratio. The asset quality score of 'b' is below the 'bbb' category implied score to reflect CGB's large risk exposure and high growth appetite. Profitability Lags Peers: Fitch expects CGB's profitability to remain below the peer average due to a weak deposit franchise and high operating costs due to its limited scale. The earnings and profitability score of 'b-' is below the 'bb' category implied score to reflect potential risk-weighted asset (RWA) understatement due to its non-loan exposure. Limited Capital Buffer: The higher capital requirements for D-SIBs indicates that CGB has rising capital-raising needs in light of its weak profitability and rapid loan growth, in Fitch's view. The bank had announced plans to increase its core capital through a private share placement to raise up to CNY40 billion in early 2021, but the issuance size was subsequently decreased to CNY18 billion in March 2022. Modest Funding Profile: CGB's funding profile remains constrained by its limited retail deposit franchise. The funding and liquidity score of 'b' is below the 'bbb' category implied score, given the bank's reliance on non-deposit funding and low retail-deposit contribution, which makes it more vulnerable to market volatility in funding. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: IDRS, GOVERNMENT SUPPORT RATING The bank's Long-Term IDR and GSR will come under pressure if Fitch perceives that the central government's propensity and/or ability to provide timely extraordinary support to the bank has diminished. For example, a sovereign rating downgrade could reflect diminished ability to support, while lower propensity may be reflected through an enhanced resolution framework, although Fitch does not expect either scenario to occur in the near term. A reduction in state ownership or influence in CGB indirectly through China Life, may also lower the propensity of the state to support the bank if the reduction was significant, or if the bank's systemic importance were to reduce. CGB's Short-Term IDR will not be downgraded unless its Long-Term IDR is downgraded to 'CCC+' or below, which Fitch views as highly unlikely in the short to medium term. VIABILITY RATING CGB's VR could be downgraded if the bank increases its risk appetite, especially in credit-card lending, or aggressively increases its exposure to entrusted investments or wealth management products, which erodes its capital buffer. A sustained deterioration in the bank's financial metrics could lead to a VR downgrade, including a combination of the following reported core metrics: -- The four-year average of impaired loans/gross loans ratio increasing to and sustained at around 10%, although Fitch's assessment of asset quality will also consider other indicators, such as "special-mention" loans, loan-loss provisioning and whether (and to what extent) Fitch believes reported metrics understate any deterioration in asset quality; and -- The common equity Tier 1 (CET1) ratio falling below 7.75% without a credible path to return to existing levels. Factors that could, individually or collectively, lead to positive rating action/upgrade: IDRS, GOVERNMENT SUPPORT RATING An upgrade of the sovereign ratings could lead to positive rating action on the bank's GSR, and the support-driven IDRs if that was to indicate greater ability to support the bank (with no less propensity to support). CGB's Short-Term IDR will be upgraded if its Long-Term IDR is upgraded. VIABILITY RATING Improvement in CGB's profitability that is commensurate to its larger exposure to credit-card lending and unsecured consumer loans, for example, if its four-year average operating profit/RWA ratio rises and remains above 1.2%, would be positive for its VR assessment. Similarly, an improvement in its CET1 ratio above 9.5% on sustainable basis would be credit positive. VR ADJUSTMENTS The OE score of 'bbb-' has been assigned above the 'bb' category implied score for the following adjustment reason: sovereign rating (positive). The business profile score of 'bb-' has been assigned below the 'bbb' category implied score for the following adjustment reason: management and governance (negative) and business model (negative). The asset quality score of 'b' has been assigned below the 'bbb' category implied score for the following adjustment reason: non-loan exposure (negative) and underwriting standard and growth (negative). The earnings and profitability score of 'b-' has been assigned below the 'bb' category implied score for the following adjustment reason: risk weight calculation (negative). The funding and liquidity score of 'b+' has been assigned below the 'bbb' category implied score for the following adjustment reason: non-deposit funding (negative) and deposit structure (negative). BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ESG CONSIDERATIONS CGB has an ESG Relevance Score of '4' for Financial Transparency as there are structural issues around financial transparency and disclosure. Those are not captured in headline performance metrics in China and affect Fitch's assessment on the OE as well as the financial profile. CGB, like other mid-tier banks, remained more exposed to this risk relative to the state banks, due to its larger exposure to wealth management products and entrusted investments stemming from the use of off-balance-sheet transactions. This has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. DEBT RATING PRIOR China Guangfa Bank Co., Ltd. LT IDR BB+ Affirmed BB+ ST IDR B Affirmed B Viability b Affirmed b Support WD Withdrawn 3 Support Floor WD Withdrawn BB+ Government Support bb+ New Rating CHINA MINSHENG: Fitch Affirms 'BB+/B' IDRs, Outlook Stable ---------------------------------------------------------- Fitch Ratings has affirmed China Minsheng Banking Corp., Ltd.'s (CMBC) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+', Short-Term IDR at 'B' and Viability Rating (VR) at 'b'. The Outlook on the Long-Term IDR is Stable. Fitch has withdrawn the Support Rating and Support Rating Floor, as they are no longer relevant to the agency's coverage following the publication of Fitch's updated Bank Rating Criteria on November 12, 2021. In line with the updated criteria, Fitch has assigned CMBC a Government Support Rating (GSR) of 'bb+'. KEY RATING DRIVERS Government Support-Driven IDR: CMBC's Long-Term IDR is driven by Fitch's assessment of a 'Moderate' likelihood of government support in the event of stress. This takes into consideration the bank's limited market share, especially in terms of retail deposits, lack of parental support, as well as limited regional significance and local government linkages. D-SIB Designation Not Indicative of Support: The Chinese authorities designated CMBC as a domestic systemically important bank (D-SIB) in October 2021, but Fitch does not believe formal D-SIB designation alone will influence support propensity for CMBC relative to peers with higher systemic importance or closer government linkages. This is because the government's ability to provide support to a large number of D-SIBs in the event of systemic stress may be constrained by the size of the banking system. No Explicit Shareholder Support: Fitch does not factor in shareholder support from state-owned Dajia Insurance Group Co.,Ltd, because its ability and propensity to support CMBC during times of stress is unclear. Dajia Insurance held a 17.8% stake in CMBC at end-2021. VR Does Not Drive IDRs: CMBC's VR is in line with the implied rating and does not drive its IDRs. Fitch assigned an operating environment (OE) score of 'bbb-', above the 'bb' category implied score, as Fitch believes China's robust external finances and strong macroeconomic performance, as reflected in the 'A+'/Stable sovereign rating, will support financial market and macroeconomic stability. However, Fitch has assigned several financial profile scores below those implied by core metrics, reflecting the bank's off-balance-sheet exposures and activities. Stable OE Outlook: Fitch has revised the outlook on China's bank OE score to stable, from positive, as the confluence of macro developments has increased the risk of a slowdown in structural reforms. Lingering weakness in China's property market and renewed Covid-19 lockdowns, together with rising global inflation and interest rates, weigh on the country's near-term economic growth prospects. This has resulted in some policies being eased. However, Fitch does not expect a major reversal in regulatory reforms that have already been implemented. Limited Franchise: CMBC's business profile score of 'bb' is below the 'a' implied category score to reflect management and governance limitations and exposure to shadow-banking activities. Management and governance limitations are common in China because of frequent management rotation and regulatory intervention. Exposure to riskier sectors and shadow-banking activities also renders the bank's business model to market volatility and regulatory changes, above that for the state banks. Weaker Asset Quality: CMBC's asset quality score takes into consideration the large exposure to riskier types of loans as well as low loan-loss allowances. Its asset quality score of 'b' has been assigned below the 'bbb' category implied score to reflect its large non-loan and riskier loan exposures and weak underwriting standards. Profitability Below Peers: Fitch expects CMBC to remain more vulnerable to asset quality volatility and profitability pressure amid the weakening economic environment compared with higher-rated peers, given its larger exposure to riskier loan types, lower risk buffers and weaker funding profile. Fitch expects the bank's profitability gap to widen against higher-rated banks. This has led us to revise its earnings and profitability score to 'b-', from 'b'. The score is below the 'bb' category implied score to reflect potential understatement of risk-weighted assets amid high non-loan exposure. Limited Capital Buffers: The need to meet higher capital requirements for D-SIBs could be challenging for CMBC in light of its weak profitability. Fitch expects this to curb its asset growth. Fitch has assigned its capitalisation and leverage score of 'b' below the 'bb' category implied score to reflect its high non-loan exposure. Weak Funding Profile: CMBC's funding and liquidity score of 'b' has been assigned below the 'bbb' category implied score. The bank's reliance on non-deposit funding and weak retail deposit franchise makes it more vulnerable to market volatility. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: IDRS, GSR The Long-Term IDR and GSR will come under pressure if Fitch perceives that the central government's propensity or ability to provide timely extraordinary support has diminished. This could be implied by a sovereign rating downgrade or a lower support propensity, as reflected through an enhanced resolution framework, though Fitch does not expect either scenario to occur in the near term. The Short-Term IDR will not be downgraded unless its Long-Term IDR is downgraded to or below 'CCC+', which Fitch views as highly unlikely in the short to medium term. VR The VR could be downgraded if the bank increases its risk appetite, especially in micro- and small-enterprise (MSE) loans and credit-card receivables, or if it aggressively increases its exposure to entrusted investments or wealth-management products and erodes its capital buffer. A sustained deterioration in financial metrics could also lead to a VR downgrade, including a combination of the following reported core metrics: -- The four-year average impaired loans/gross loans ratio increasing to and remaining at around 10%, although Fitch's assessment of asset quality will also consider other indicators, such as "special-mention" loans, loan loss provisioning, and whether (and to what extent) Fitch believes reported metrics understate any deterioration in asset quality; and -- The common-equity Tier 1 (CET1) ratio falling below 8.0% (2021: 9.0%) without a credible path to return to existing levels. Factors that could, individually or collectively, lead to positive rating action/upgrade: IDRS, GSR An upgrade of China's sovereign ratings could lead to positive rating action on the bank's GSR and support-driven IDRs, if that was to indicate greater ability to support CMBC with no less propensity to provide support. The Short-Term IDR will be upgraded if the Long-Term IDR is upgraded. VR A sustained improvement in the bank's risk profile, such as a reduction in inclusive MSE loans (14% of its loans at end-2021) and property development loans (9% of its loans) to levels more aligned with the mid-tier bank average (9% for inclusive MSE loans and 7% for property development loans), coupled with slower credit growth which leads to a sustained improvement of capital buffers, for example, if the CET1 ratio were to rise and stay above 9.5%, would be positive for the VR. VR ADJUSTMENTS The OE score of 'bbb-' has been assigned above the 'bb' category implied score for the following adjustment reason: sovereign rating (positive). The business profile score of 'bb' has been assigned below the 'a' category implied score for the following adjustment reason: management and governance (negative) and business model (negative). The asset quality score of 'b' has been assigned below the 'bbb' category implied score for the following adjustment reason: non-loan exposure (negative) and underwriting standard and growth (negative). The earnings and profitability score of 'b-' has been assigned below the 'bb' category implied score for the following adjustment reason: risk weight calculation (negative). The capitalisation and leverage score of 'b' has been assigned below the 'bb' category implied score for the following adjustment reason: leverage and risk weight calculation (negative). The funding and liquidity score of 'b' has been assigned below the 'bbb' category implied score for the following adjustment reason: non-deposit funding (negative) and deposit structure (negative). BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ESG CONSIDERATIONS CMBC has an ESG Relevance Score of '4' for Financial Transparency due to structural issues around financial transparency and disclosure. These are not captured in headline performance metrics in China and affect Fitch's assessment of the OE and the bank's financial profile. CMBC, like other mid-tier banks, is more exposed to this risk relative to state banks because of its larger exposure to wealth-management products and entrusted investments. This stems from the use of off-balance-sheet transactions. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. DEBT RATING PRIOR ---- ------ ----- China LT IDR BB+ Affirmed BB+ Minsheng Banking Corp., Ltd. ST IDR B Affirmed B Viability b Affirmed b Support WD Withdrawn 3 Support Floor WD Withdrawn BB+ Government Support bb+ New Rating HUA XIA BANK: Fitch Affirms 'BB+/B' IDRs, Outlook Stable -------------------------------------------------------- Fitch Ratings has affirmed Hua Xia Bank Co., Limited's (HXB) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' and Short- Term IDR at 'B'. The Outlook on the Long-Term IDR is Stable. At the same time, Fitch has affirmed HXB's Viability Rating (VR) at 'b'. Fitch has withdrawn the Support Rating and Support Rating Floor because they are no longer relevant to the agency's coverage following the publication of Fitch's updated Bank Rating Criteria on November 12, 2021. In line with the updated criteria, Fitch has assigned HXB a Government Support Rating (GSR) of 'bb+'. KEY RATING DRIVERS Government Support-Driven IDR: The Long-Term IDR is driven by Fitch's assessment of a 'Moderate' likelihood of government support in the event of stress. This takes into consideration the bank's limited market share and regional significance. There is no direct central-government ownership or history of government support for the bank. D-SIB Designation Not Indicative of Support: Chinese authorities designated HXB as a domestic systemically important bank (D-SIB) in October 2021, but Fitch does not think that formal D-SIB designation alone will influence support propensity for HXB relative to peers with a higher systemic importance or closer government linkages. This is because the government's ability to provide support to a large number of D-SIBs in the event of systemic stress may be constrained by the size of the banking system. No Explicit Shareholder Support: Fitch does not factor in shareholder support, as the ability and propensity of HXB's major shareholders to provide timely and adequate support to HXB during times of stress is unclear. The major shareholders include state-owned power transmission companies State Grid Yinda Group (which owns 20% in the bank), Beijing Shougang Co., Ltd. (20%) and Beijing Infrastructure Investment Co., Ltd. (A+/Stable) (10% ownership). PICC Property and Casualty Company Limited, a state-owned general insurer, also owns 17%. VR Does Not Drive IDRs: HXB's VR is in line with the implied rating and does not drive its IDRs. Fitch assigned the operating environment (OE) score of 'bbb-' above the 'bb' category implied score, as Fitch believes China's robust external finances and strong macroeconomic performance, as reflected in the 'A+'/Stable sovereign rating, will support financial market and macroeconomic stability. However, Fitch has assigned several financial profile scores below those implied by core metrics, reflecting the bank's off-balance-sheet exposures and activities. Stable OE Outlook: Fitch has revised the outlook on China's bank OE score to stable, from positive, as the confluence of macro developments has increased the risk of a slowdown in structural reforms. Lingering weakness in China's property market and renewed Covid-19 lockdowns, together with rising global inflation and interest rates, weigh on the country's near-term economic growth prospects. This has led to the easing of some policies. However, Fitch does not expect a major reversal in regulatory reforms that have already been implemented. Limited Retail Franchise: Fitch expects corporate banking to remain the largest contributor to HXB's total loans and deposits due to its weak retail franchise. Its business profile score of 'bb-' is below the 'bbb' implied category score to reflect management and governance limitations and exposure to shadow activities. Management and governance limitations are not uncommon in China, given frequent management rotation and regulatory intervention. Reliance on interest income and exposure to shadow activities also makes the bank's business model susceptible to market volatility and regulatory changes. Large Credit Exposure: HXB's asset quality score considers the bank's limited risk buffers relative to its high credit exposure. Its asset quality score of 'b' has been assigned below the 'bbb' category implied score to reflect its large non-loan exposure and high growth appetite. Modest Profitability: Fitch believes HXB's earnings and profitability remain constrained by its weak funding profile and the high operating cost associated with its limited scale. Its earnings and profitability score of 'b' has been assigned below the 'bb' category implied score to reflect the potential understatement of risk-weighted assets due to its non-loan exposure. Limited Capital Buffer: Fitch expects HXB's rapid growth to continue to pressure its capitalisation. Its capitalisation and leverage score of 'b' has been assigned below the 'bb' category implied score to reflect its non-loan exposure. Weak Funding Profile: HXB's funding profile is weaker than that of mid-tier peers due to its higher loan/deposit ratio as a result of a greater growth appetite and limited deposit franchise. Its funding and liquidity score of 'b' has been assigned below the 'bbb' category implied score given the bank's reliance on non-deposit funding and weak retail deposit franchise. This makes it more vulnerable to market volatility in funding. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: IDRS, GSR The bank's Long-Term IDR and GSR will come under pressure if Fitch believes the central government's propensity or ability to provide timely extraordinary support to the bank has diminished. This could be indicated by a sovereign rating downgrade or through an enhanced resolution framework, though Fitch does not expect either scenario to occur in the near term. The Short-Term IDR will not be downgraded unless the Long-Term IDR is downgraded to or below 'CCC+'. Fitch views this as highly unlikely in the short to medium term. VR The VR could be downgraded if there is evident acceleration in loan growth, especially in manufacturing, wholesale and retail trade loans, as well as rising exposure to shadow activities, which will further drag on asset quality and capital buffers. A sustained deterioration in the bank's financial metrics could also lead to a VR downgrade, including a combination of the following reported core metrics: -- The four-year average impaired loans/gross loans ratio increasing to and remaining at around 10% (2021:1.8%). Fitch's assessment of asset quality also considers other indicators, such as "special-mention" loans, loan loss provisioning and whether (and to what extent) Fitch believes reported metrics understate any deterioration in asset quality; and -- The common equity Tier 1 ratio falling to below 7.75% (2021: 8.8%) without a credible path to return to existing levels Factors that could, individually or collectively, lead to positive rating action/upgrade: IDRS, GSR An upgrade of China's sovereign ratings could lead to positive rating action on the bank's GSR and its support-driven IDRs if that was to indicate greater ability to support HXB, with no less propensity to provide support. The Short-Term IDR will be upgraded if the Long-Term IDR is upgraded. VR A sustained reduction in the bank's risk appetite, for example, if its exposure to non-loan credit assets (24% of its assets at end-2021) reduces to levels more aligned with the mid-tier bank average (17%), coupled with slower growth, which enables its CET1 ratio to rise and stay above 9.5%, would be positive for the VR assessment. VR ADJUSTMENTS The OE score of 'bbb-' has been assigned above the 'bb' category implied score due to the following adjustment reason: sovereign rating (positive). The business profile score of 'bb-' has been assigned below the 'bbb' category implied score due to the following adjustment reason: management and governance (negative) and business model (negative). The asset quality score of 'b' has been assigned below the 'bbb' category implied score because of the following adjustment reason: non-loan exposure (negative) and underwriting standard and growth (negative). The earnings and profitability score of 'b' has been assigned below the 'bb' category implied score because of the following adjustment reason: risk weight calculation (negative). The capitalisation and leverage score of 'b' has been assigned below the 'bb' category implied score because of the following adjustment reason: leverage and risk weight calculation (negative). The funding and liquidity score of 'b' has been assigned below the 'bbb' category implied score because of the following adjustment reason: non-deposit funding (negative) and deposit structure (negative). BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ESG CONSIDERATIONS HXB has an ESG Relevance Score of '4' for financial transparency, due to structural issues around financial transparency and disclosure. These are not captured in headline performance metrics in China and affect Fitch's OE and financial profile assessment. HXB, like other mid-tier banks, is more exposed to such risks relative to state banks, due to a greater exposure to wealth-management products and entrusted investments. This stems from the use of off-balance-sheet transactions. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. DEBT RATING PRIOR ---- ------ ----- Hua Xia Bank LT IDR BB+ Affirmed BB+ Co., Limited ST IDR B Affirmed B Viability b Affirmed b Support WD Withdrawn 3 Support Floor WD Withdrawn BB+ Government Support bb+ New Rating KUNMING TRAFFIC: Fitch Affirms BB+ Ratings & Alters Outlook to Neg. ------------------------------------------------------------------- Fitch Ratings has revised the Outlook on China-based Kunming Traffic Investment Co., Ltd.'s (KMTI) Foreign- and Local-Currency Issuer Default Ratings (IDRs) to Negative from Stable, and has affirmed the ratings at 'BB+'. Fitch has also affirmed the rating on KMTI's USD2 billion medium-term note programme at 'BB+'. At the same time, Fitch has withdrawn all the ratings. The Negative Outlook reflects decreasing financial flexibility in light of tight funding conditions. KMTI's financing costs have risen from 2H21. The short-term debt/total debt ratio increased to over 30% in 1Q22 and the cash coverage/short-term debt ratio also showed a worsening trend. This follows the frequent issue of short-term bonds by KMTI and its key subsidiary. This is likely to lead to a lower assessment of KMTI's key rating factor of financial implications of a default, if the trend continues, and lead to maturity concentration and limited market access. This will result in a downward assessment of its government-related entity (GRE) score. Fitch has chosen to withdraw the ratings of KMTI for commercial reasons. KEY RATING DRIVERS Status, Ownership and Control - 'Very Strong': KMTI is a limited liability company that is 90% owned by the Kunming State-owned Assets Supervision and Administration Commission (SASAC), a sub-department of the city government. The remaining 10% is owned by Yunnan province's Ministry of Finance. Kunming SASAC has strong control and oversight of the company's board and monitors strategic planning and financial events. All major corporate events require government approval. Support Record - 'Strong': KMTI receives recurring financial support from the government to assist with its transportation infrastructure policy role. Stable operating subsidies comprise its key support; it received CNY1.8 billion in subsidies in 2021. These accounted for around 101.5% of profit before tax. We expect government financial support to continue, as KMTI is important to its transportation programme. Socio-Political Implications of Default - 'Moderate': KMTI plays an important role in Kunming's transportation infrastructure development, including in railways, toll roads and airports. However, the socio-political implications of a default by KMTI are not likely to be significant and the government would be inclined to use administrative and fiscal measures to ensure that the operations of key subsidiaries are not disrupted. Other GREs in Kunming can also serve as substitutes, if needed. Financial Implications of Default - 'Strong': KMTI would have 'Strong' funding implications for other GREs, as the company is the largest GRE in Kunming by asset size and has various funding channels. A default at KMTI would push up funding costs for other local GREs, impair their funding access and damage the municipal government's reputation. KMTI's increasing short-term debt and high borrowing costs could also lower its financing resilience, and thus reduce the cost and access implications of a default. Standalone Credit Profile - 'b': We rate KMTI's revenue defensibility as 'Weaker' under our Public Sector, Revenue-Support Entities Rating Criteria, because it is exposed to the general economic cycle and has low price-bargaining power. We rate operating risk as 'Midrange', based on predictable costs. The financial profile is assessed at 'Weaker', due to the company's high leverage, with net debt/EBITDA expected at above 20x in the next five years under our rating case (2021: 20.4x). DERIVATION SUMMARY KMTI's ratings are assessed under Fitch's Government-Related Entities Rating Criteria, reflecting the entity's control and ownership by Kunming municipality, the government's support record as well as the socio-political and financial impact on the government from a default by KMTI. KMTI's IDRs were derived from the four factors under our Government-Related Entities Rating Criteria, and the Standalone Credit Profile of 'b' under the Public Sector, Revenue-Supported Entities Rating Criteria. RATING SENSITIVITIES Not applicable, as the ratings have been withdrawn. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. ISSUER PROFILE KMTI is a state-owned investment and financing platform that is majority owned by Kunming SASAC. The entity is responsible for the investment, financing, construction and operation of transportation infrastructure, as well as the allocation of resources to and development of supporting industries in Kunming. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg DEBT RATING PRIOR ---- ------ ----- Kunming Traffic LT IDR BB+ Affirmed BB+ Investment Co., Ltd. LT IDR WD Withdrawn BB+ LC LT IDR BB+ Affirmed BB+ LC LT IDR WD Withdrawn BB+ senior unsecured LT BB+ Affirmed BB+ senior unsecured LT WD Withdrawn BB+ PING AN BANK: Fitch Affirms 'BB+/B' IDRs, Outlook Stable -------------------------------------------------------- Fitch Ratings has affirmed Ping An Bank Co., Ltd.'s (PAB) Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+', Short-Term IDR at 'B' and Viability Rating (VR) at 'b'. The Outlook is Stable. Fitch has withdrawn PAB's Support Rating and Support Rating Floor as they are no longer relevant to the agency's coverage following the publication of Fitch's updated Bank Rating Criteria on November 12, 2021. In line with the updated criteria, Fitch has assigned PAB a Government Support Rating (GSR) of 'bb+'. KEY RATING DRIVERS Government Support-Driven IDR: The bank's Long-Term IDR is driven by Fitch's assessment of a moderate probability of government support, as expressed by the newly assigned GSR of 'bb+'. This takes into consideration the bank's size and modest domestic systemic importance. The bank is not directly owned by the central government nor does it have a history of direct government support. D-SIB Designation: China's regulators designated PAB as a domestic systemically important bank (D-SIB) in October 2021, but Fitch believes D-SIB designation alone may not materially affect the government's propensity to support PAB relative to peers with higher systemic importance or closer government linkages. This is because the government's ability to provide support to a large number of D-SIBs in the event of systemic stress may be constrained by the size of China's banking system. Short-Term IDR: PAB's Short-Term IDR of 'B' is mapped to its Long-Term IDR. VR Does Not Drive IDRs: PAB's 'b' VR has been assigned below the 'b+' implied rating to reflect Fitch's view that the bank's risk profile over the long term will have a negative impact on the bank's financial profile, given its growth appetite that is higher than peers' and large unsecured retail loan exposure. OE Outlook Revised to Stable: Fitch has revised the outlook on China's bank operating environment (OE) score of 'bbb-' to stable from positive, reflecting Fitch's view that the confluence of macro developments has increased the risk of a slowdown in structural reforms. Lingering weakness in China's property market and renewed Covid-19 related lockdowns, together with rising global inflation and interest rates, weigh on the country's near-term economic growth prospects and some policies have been eased. However, Fitch does not expect a material reversal in regulatory reforms already implemented. The OE score of 'bbb-' is above the 'bb' category implied score, as Fitch believes China's robust external finances and record of strong macroeconomic performance, reflected in China's sovereign rating of 'A+'/Stable, will support greater financial market and macroeconomic stability. Large WMPs and Consumer Loans: PAB's business profile score of 'bb' is lower than the 'a' implied category score. This reflects issues over management and governance that are common in China, given frequent management rotation and regulatory intervention, as well as its large exposure to shadow-banking activities and unsecured consumer lending. Off-balance-sheet wealth-management products (WMPs) amounted to around 29% of PAB's deposits at end-2021. This increases volatility in its business model and raises challenges around the bank's execution capabilities. Credit-card receivables, consumer loans and auto lending made up around 35% of PAB's loans at end-2021, higher than the peer average. More Volatile Asset Quality: PAB's 'b' asset quality score is below the 'bbb' category implied score due to large non-loan exposures and higher loan-growth appetite than peers, which could lead to weaker and more volatile asset quality through economic cycles. A larger exposure to unsecured consumer lending leaves asset quality more likely to deteriorate in a downturn. The impaired loan ratio was stable at 1.1% at end-2021 on non-performing loan (NPL) resolution. Its loan-loss allowance rose to 268% of impaired loans by end-2021 (2020: 181%), providing buffer against stress from the property sector. Impairment Charges Remain High: PAB's earnings and profitability score of 'b+' is below the 'bb' category implied score as non-loan exposures are understated in its risk-weight calculations. Fitch expects overall impairment charges to be high on continued stress in property and unsecured-consumer loans. Fitch also expects pressure on its net interest margin from rate cuts and directives to support small firms, but contraction will be limited by decreases in the required reserve ratio to ease bank funding costs. Its operating profit/risk-weighted assets ratio was 1.3% in 2021, in line with the mid-tier bank average. Growth Appetite Pressures Capitalisation: PAB's capital and leverage score of 'b' is below the 'bb' category implied score to reflect the understatement of the bank's risk-weight calculations from non-loan exposures. Its reported common equity Tier 1 (CET1) ratio was around 8.6% at end-1Q22, below the mid-tier bank average. Fitch expects the bank's growth appetite will continue to pressure its capitalisation. Rising LDR: PAB's funding and liquidity score of 'b+' is below the 'bbb' category implied score, given PAB's reliance on non-deposit funding and its deposit structure. Its high off-balance-sheet exposure may strain its on-balance-sheet funding. The bank's Fitch-calculated loan/deposit ratio (LDR) reached around 103% at end-2021, from 99% at end-2020. Similar to mid-tier peers, the bank has high off-balance-sheet exposures, which may understate its reported LDR. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: IDRS AND GSR The bank's Long-Term IDR and GSR will come under pressure if Fitch perceives that the central government's propensity and/or ability to provide timely extraordinary support to the bank has diminished. For example, a sovereign rating downgrade could reflect diminished ability to support; lower propensity may also be reflected through an enhanced resolution framework, though Fitch does not expect either scenario to occur in the near term. PAB's Short-Term IDR will be downgraded if its Long-Term IDR is downgraded to or below 'CCC+', which Fitch views as highly unlikely in the short to medium term. VR PAB's VR could be downgraded if there is excessive growth in credit-card receivables, especially if accompanied by lower underwriting standards or significant deterioration in household affordability, which leads to a sustained deterioration in the bank's financial metrics, including a combination of the following reported core metrics: -- The four-year average of impaired loans/gross loans ratio increasing to and sustained at around 10% (2018-2021 four-year average of 1.8% on a reported basis), although Fitch's assessment of asset quality will also consider other indicators, such as "special-mention" loans, loan loss provisioning, and whether (and to what extent) Fitch believes reported metrics understate any deterioration in asset quality; and -- The CET1 ratio falling below 7.75% without a credible path to return to existing levels. Factors that could, individually or collectively, lead to positive rating action/upgrade: IDRS AND GSR An upgrade of China's sovereign ratings could lead to positive rating action on the bank's GSR and its support-driven IDRs if that were to indicate greater ability to support PAB, with no less propensity to support. PAB's Short-Term IDR would be upgraded if its Long-Term IDR is upgraded. VR Resilience in the quality of PAB's unsecured retail loans through economic cycles or a material reduction in the share of its unsecured retail loans (35% of its loans at end-2021) towards the mid-tier bank average (18% at end-2021) would be positive for Fitch's assessment of its risk profile. Improvement to its CET1 ratio to above 9.5% would also be positive for its VR assessment. VR ADJUSTMENTS The VR of 'b' has been assigned below the 'b+' implied score due to the following adjustment reason: risk profile (negative). The OE score of 'bbb-' has been assigned above the 'bb' category implied score due to the following adjustment reason: sovereign rating (positive). The business profile score of 'bb' has been assigned below the 'a' category implied score due to the following adjustment reason: management and governance (negative) and business model (negative). The asset quality score of 'b' has been assigned below the 'bbb' category implied score due to the following adjustment reason: non-loan exposure (negative) and underwriting standards and growth (negative). The earnings and profitability score of 'b+' has been assigned below the 'bb' category implied score due to the following adjustment reason: risk-weight calculations (negative). The capitalisation and leverage score of 'b' has been assigned below the 'bb' category implied score due to the following adjustment reason: leverage and risk-weight calculations (negative). The funding and liquidity score of 'b+' has been assigned below the 'bbb' category implied score due to the following adjustment reason: non-deposit funding (negative) and deposit structure (negative). BEST/WORST CASE RATING SCENARIO International scale credit ratings of Financial Institutions and Covered Bond issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. Sources of Information The principal sources of information used in the analysis are described in the Applicable Criteria. ESG CONSIDERATIONS PAB has an ESG Relevance Score of '4' for Financial Transparency as there are still structural issues around financial transparency and disclosure. Those are not captured in headline performance metrics in China and affect Fitch's assessment on the OE as well as the financial profile. PAB, like other mid-tier banks, is more exposed to this risk relative to state banks, due to its larger exposure to WMPs and entrusted investments stemming from the use of off-balance-sheet transactions. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. DEBT RATING PRIOR ---- ------ ----- Ping An Bank LT IDR BB+ Affirmed BB+ Co., Ltd. ST IDR B Affirmed B Viability b Affirmed b Support WD Withdrawn 3 Support Floor WD Withdrawn BB+ Government Support bb+ New Rating SHIMAO GROUP: Creditors Getting Organized After US$1BB Default -------------------------------------------------------------- Bloomberg News reports that Shimao Group Holdings Ltd.'s global creditors are gearing up to organize themselves after the luxury builder defaulted on a $1 billion dollar bond due July 3. Advisers to some of Shimao's offshore bondholders were hosting calls late Tuesday [July 5] in Hong Kong after the firm said on July 3 it had hired advisers and hasn't paid some of its offshore debts. Houlihan Lokey Inc. and Weil, Gotshal & Manges LLP were planning a call at 5:00 p.m. Hong Kong time Tuesday [July 5]. Moelis & Co. was to host a call at 9:00 p.m. later that day, according to a Debtwire report. According to Bloomberg, the emergence of multiple creditor groups after a default can make it harder for bondholders to advocate for their interests, particularly if rival cohorts are formed. Houlihan and Weil are advising a large holder of Shimao's bonds and looking to expand the group while Debtwire reported that Moelis & Co. wants to grow the ad hoc group of offshore bondholders that it is advising, Bloomberg relays. "For offshore investors, the key worry is that Shimao will likely prioritize payments to onshore creditors," Bloomberg quotes Leonard Law, senior credit analyst at Lucror Analytics, as saying. "The restructuring process will certainly be lengthy, given that the company has a large amount of off-balance-sheet debts that need to be accounted for" and offshore bondholders generally have little ability to influence outcomes, he added. Bloomberg says Shimao, whose landmark projects included five-star hotels in Shanghai, was once considered largely immune to the sweeping crackdown that has engulfed larger peers like China Evergrande Group and Sunac China Holdings Ltd. Though its dollar bonds have been trading at distressed levels for several months, mounting worries about its financial health since late last year are a sign that stress is taking its toll on a widening set of players. According to Bloomberg, the country's 14th-biggest developer last year was once popular with global investors who had considered it a safer name. Any possible restructuring at the firm will be closely eyed by other global creditors already grappling with the consequences of more than $25 billion dollar bond defaults in the offshore market this year. "The Shimao default shows that the property restrictions are increasing the stress on the developers and the government is not backing down from reducing property prices," Bloomberg quotes Andrew Collier, a managing director at Orient Capital Research Inc., as saying. "Restructuring, even among private developers, will have to wind their way through local governments politics and state firms, which will cause delays." About Shimao Group China-based Shimao Group Holdings Ltd, formerly Shimao Property Holdings Ltd, is an investment holding company principally engaged in the sale of properties. The Company operates its business through four segments. The sales of Properties segment is mainly engaged in the development of residential real estate. The Property Management Income and Others is mainly engaged in property management. The Hotel Operation Income segment is mainly engaged in hotel operations. The Commercial Properties Operation Income segment is mainly engaged in the development, investment and operation of commercial, office and industrial park property projects. As reported in the Troubled Company Reporter-Asia Pacific on April 21, 2022, Fitch Ratings has withdrawn China-based property developer Shimao Group Holdings Limited's Issuer Default Rating of 'CCC' and the senior unsecured rating on Shimao's outstanding US dollar senior notes of 'CCC' with a Recovery Rating of 'RR4'. Fitch is withdrawing the ratings as Shimao has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for Shimao. ========= I N D I A ========= AKAL PIPE: ICRA Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------- ICRA has retained the long-term rating of Akal Pipe Industries in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 6.90 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category Long-term– 2.50 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. API was established in March 2012 as a partnership firm of Mr. Harbant Singh, Mr. Gurnam Singh, Mr. Harpreet Singh, Mr. Yadvinder Singh and Mr. Nazam Singh sharing profits and losses in the ratio of 51%, 14%, 13%, 13% and 9%, respectively. The entity is engaged in the manufacturing of RCC (Reinforced cement concrete) pipes and manholes. ALUMINIUM INDIA: ICRA Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- ICRA has retained the long-term and short-term ratings of Aluminium India in the 'Issuer Not Cooperating' category. The ratings are denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 40.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term/ 2.00 [ICRA]D/[ICRA]D; ISSUER NOT Short Term COOPERATING; Rating Continues to Unallocated remain under 'Issuer Not Limits Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Aluminium India (AI), set up in 1965 as a proprietorship firm by Mr. Chiranji Vyas, to primarily trade aluminium in Hyderabad (Telangana). The firm was reconstituted as a partnership firm in 1975, with Mr. Chiranji Vyas, Mr. Niranjan Vyas, Mr. Suresh Vyas and Mr. Baiju Vyas as its partners. In the year 1995, AI diversified into trading of copper as well. The firm majorly procures the material from Hindalco Industries Limited (HIL). The day-to-day operations of the firm are looked after by Mr. Suresh Vyas. DHARAMCHAND PARASCHAND: ICRA Keeps D Ratings in Not Cooperating --------------------------------------------------------------- ICRA has retained the Short-Term rating of Dharamchand Paraschand Exports in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Short Term- 58.00 [ICRA]D; ISSUER NOT COOPERATING; Fund Based- Rating continues to remain under Cash Credit 'Issuer Not Cooperating' Category Short Term- (58.00) [ICRA]D; ISSUER NOT COOPERATING; Interchangeable- Rating continues to remain under Others 'Issuer Not Cooperating' Category Short Term- 8.00 [ICRA]D; ISSUER NOT COOPERATING; Unallocated Rating continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Established in 1974, Dharamchand is involved in the business of trading, manufacturing and exporting cut and polished diamonds (CPD). The firm currently operates from Bharat Diamond Bourse in Bandra Kurla Complex and has a processing facility in Surat, Gujarat. DILIGENT MEDIA: ICRA Keeps D Debt Rating in Not Cooperating ----------------------------------------------------------- ICRA has retained the Non-convertible Debentures of Diligent Media Corporation Limited in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Non-convertible 250.00 [ICRA]D; ISSUER NOT Debenture (NCD) COOPERATING; Rating continues Programme To remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Until October 9, 2019, DMCL published DNA, an English daily newspaper, which was circulated in Mumbai and Ahmedabad. As per a scheme of arrangement and amalgamation among ZMCL, DMCL, Mediavest India Private Limited and Pri-Media Services Private Limited, ZMCL's demerged print media undertaking has been vested with DMCL, while Mediavest India Private Limited and Pri-Media Services Private Limited have been amalgamated with DMCL with effect from April 1, 2017. Further, DMCL was listed on the stock exchange in December 2017, with a mirror shareholding of ZMCL. As on March 31, 2020, the promoters held a 62.17% stake in DMCL. With effect from October 10, 2019, the company has ceased the print publication of all editions of DNA. It shall, however, continue to concentrate on publication through its digital platform – dnaindia.com. DUSMER TOOLS: ICRA Keeps C+ Debt Ratings in Not Cooperating ----------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Dusmer Tools Pvt. Ltd in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]C+/[ICRA]A4; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 3.00 [ICRA]C+; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Short Term- 3.00 [ICRA]A4; ISSUER NOT Non Fund COOPERATING; Rating continues Based Others to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 1991, Dusmer Tools Private Limited (DTPL) is promoted by the Kolkata-based Chakravarti family. It is involved in assembling of tyre dismantling machines and trading of hydraulic torque wrenches, laser proximity warning systems and portable oil filtration machines. It started with a dealership of Hytorc, U.S. for selling hydraulic torque wrench to mining companies, oil companies, Indian Railways, etc. Over the years, the company has diversified its product line and has started assembling and trading of various products. EARTHCON DEVELOPERS: ICRA Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Earthcon Developers Pvt. Ltd. in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based- 12.00 [ICRA]D; ISSUER NOT COOPERATING; Limits- Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. EDPL is a special purpose vehicle floated in 2013 by Earthcon Construction Private Limited and ISP Construction Private Limited, with respective stakes of 50.002% and 49.998%. It is developing a residential project, 'Rajpur Greens', in Dehradun, Uttarakhand. The project comprises saleable area of 1,01,246 (96,720 earlier) square feet and consists of 42 two BHK and 24 three BHK flats spread over two towers, of six floors each. The construction started in January, 2014 and the total project cost is estimated at INR47.27 crore (INR31.78 crore earlier), with INR16.0 crore (INR12.0 crore sanctioned and INR4.0 crore of proposed enhancement) being funded through bank loans, INR16.25 crore through promoter's contribution and the remaining INR15.02 crore through customer advances. EASTMAN METTCAST: ICRA Keeps C+ Debt Ratings in Not Cooperating --------------------------------------------------------------- ICRA has retained the rating for the bank facilities of Eastman Mettcast Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]C+; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 15.00 [ICRA]C+; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term– 2.00 [ICRA]C+; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. EML, initially promoted by Mr. Jagdeep Singal and his family, was incorporated in June 2006, as Swift Mettcast Limited and manufactures casting parts for the automotive ancillary industry. EML manufactures aluminum high pressure die cast and precision machined sand cast parts for auto ancillaries, at its manufacturing facility located in Hambran, Ludhiana, Punjab. In December 2013, the company was taken over by Mr. Subhash Goel and his family and currently both the families are jointly managing the operations of the company. EKAM AGRO: ICRA Lowers Rating on INR11cr LT Term Loan to D ---------------------------------------------------------- ICRA has downgraded the ratings on certain bank facilities of Ekam Agro Private Limited, as: Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 4.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based/CC Rating downgraded from [ICRA]B+ (Stable) and Continues to remain under 'Issuer Not Cooperating' category Long-term– 11.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based/TL Rating downgraded from [ICRA]B+ (Stable) and Continues to remain under 'Issuer Not Cooperating' category Long Term/ 3.00 [ICRA]D/[ICRA]D; ISSUER NOT Short Term- COOPERATING; Rating downgraded Unallocated from [ICRA]B+ (Stable)/[ICRA]A4 and Continues to remain under 'Issuer Not Cooperating' Category Rationale The rating downgrade reflects Delay in Debt Repayment as mentioned in publicly available sources. The rating is based on limited information on the entity's performance since the time it was last rated on March, 2021. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity, despite the downgrade. ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. The company was incorporated in November 2013 by the Kalra Family and is operating as a refinery for crude rice bran oil. The plant is located in Mukstar, Punjab with an installed capacity of 100 tonnes per day. The operations of the company commenced from February 2015. The total project cost incurred was INR17.51 crore and was funded through promoter's contribution of around INR4 crores, unsecured loans of INR0.37 crore, term debt of INR11 crores and INR2.14 crore of advances to suppliers. EVERSHINE SOLVEX: ICRA Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- ICRA has retained the Long-Term rating of Evershine Solvex Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 10.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based/CC Rating Continues to remain under 'Issuer Not Cooperating' Category Long-term– 4.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based/CC Rating Continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Evershine Solvex Private Limited was incorporated in 1984 by Mr. Harish Kalra. The company is also promoted by the Kalra family. The company is engaged in the extraction of crude rice bran oil from rice bran at its manufacturing facility in Mukstar, Punjab. The plant has a total installed capacity of 300 metric tonnes per day. The company procures rice bran from millers in the nearby regions of Haryana and Punjab. GANGES FORD: ICRA Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- ICRA has retained the long-term rating of Ganges Ford (Proprietor: Lexicon Commercial Enterprises Limited) in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 22.30 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long Term 0.43 [ICRA]D; ISSUER NOT COOPERATING; Unallocated Rating Continues to remain under issuer not cooperating category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 2004, Ganges Ford (Proprietor: Lexicon Commercial Enterprises Limited) (GF) is an authorized dealer of Ford India Private Limited (FIPL). The company sells and services vehicles along with spare parts and accessories. GF has a showroom and two workshops in Kolkata, and a showroom with an exclusive sales and service outlet (ESSO) in Berhampore, West Bengal. The company is promoted by the Kolkata-based Mr. Harish Himatsingka, who has long experience in the automotive dealership industry. HIGH TECH: ICRA Keeps D Debt Ratings in Not Cooperating Category ---------------------------------------------------------------- ICRA has retained the long-term rating of High Tech Knitwear Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 33.85 [ICRA]D; ISSUER NOT COOPERATING; Rating Continues to remain under 'Issuer Not Cooperating' Category Cash Credit 13.51 [ICRA]D; ISSUER NOT COOPERATING; Rating Continues to remain under 'Issuer Not Cooperating' Category Unallocated 2.97 [ICRA]D; ISSUER NOT COOPERATING; Limits Rating Continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. High Tech Knitwear Private Limited (HTKPL) is a part of the Surat-based High-Tech Group which has its presence in manufacturing of greige fabric, sized yarn and warped yarn. HTKPL manufactures polyester greige fabrics. The company has its registered office in Surat and its manufacturing facility in Bharuch District (Gujarat). JAGDAMBA POULTRY: ICRA Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- ICRA has retained the ratings of Shree Jagdamba Poultry Private Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/ 11.50 [ICRA]D/[ICRA]D; ISSUER NOT Short Term COOPERATING; Rating Continues to Fund Based/ remain under 'Issuer Not Cash Credit Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 2001 and promoted by Mr. Rakesh Singh, Shree Jagdamba Poultry Private Limited (SJP) is a family managed company engaged in the production of table eggs and trading of paddy, maize, wheat, rice, animal and poultry feed. Based in Nagpur, the company operates six sheds on a five-acre land and has a capacity of around 0.66 lakh layers and produces about 0.59 lakh eggs in a day. In the trading segment, the company sources trading products from across India which are sold to distributors and traders based in Nagpur. KALEESWARA GINNING: ICRA Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Sri Kaleeswara Ginning Mills in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 5.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Facilities 'Issuer Not Cooperating' Cash Credit Category Long-term/ 1.00 [ICRA]D/[ICRA]D; ISSUER NOT Short Term COOPERATING; Rating Continues to Fund Based/ remain under 'Issuer Not Non Fund Based Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Sri Kaleeswara Ginning Mills is a proprietorship concern started in the year 2002 by Mrs. Kokilavani. The concern operates a cotton ginning, pressing unit in Coimbatore, Tamil Nadu. SKGM is engaged in separating cotton fibre (lint) from cotton kappas. The cotton are then packed in bales and sold to customers. The concern procures BT variety of cotton and DCH variety of cotton from its suppliers. SKGM operates in two shifts and has 10 employees on permanent rolls and 20 employees on contractual basis. Mr. Shanmugam, husband of the proprietor takes care of the overall operations of the concern. L&T HALOL: ICRA Keeps D Debt Rating in Not Cooperating Category --------------------------------------------------------------- ICRA has retained the Long-Term rating of L&T Halol Shamlaji Tollway Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loans 577.37 [ICRA]D; ISSUER NOT COOPERATING; Rating Continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. L&T-HSTL, a special purpose vehicle (SPV), was incorporated in September 2008 as a 100% subsidiary of L&T Infrastructure Development Projects Ltd. (L&T IDPL). The SPV has carried out the four-laning of 173.06 km of SH-5 from Halol to Shamlaji in Gujarat. The project was awarded by GSRDCL on build operate transfer (BOT) basis with a concession period of 20 years, commencing from September 2009. The commercial operation date (COD) of the project, achieved in April 2012, was delayed by three months vis-à-vis the scheduled COD (December 2011). The project road is a part of SH-5 in Gujarat, which starts at Vapi (border of Maharashtra), runs through the eastern part of Gujarat and finally ends atShamlaji (border of Gujarat. With Rajasthan). The road is called Eastern State Highway. The total project cost of INR1,305 crore was funded by equity of INR261 crore and debt of INR1,044 crore in a debt:equity ratio of 4:1. LAKSHMI POULTRY: ICRA Keeps C+ Debt Ratings in Not Cooperating -------------------------------------------------------------- ICRA has retained the long-term rating of Sri Lakshmi Poultry Farm in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]C+; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 6.50 [ICRA]C+; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term– 1.87 [ICRA]C+; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Sri Lakshmi Poultry Farm (SLPF) was incorporated as a partnership firm in 2007 and is engaged in the business of commercial layer poultry farming and trading of maize. The firm operates through its facilities located in Brahmanagudem and Chikkala villages with a total capacity of 2,80,000 commercial layers. LML LIMITED: ICRA Keeps D Debt Rating in Not Cooperating Category ----------------------------------------------------------------- ICRA has retained the rating of LML Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Preference 125.00 [ICRA] D; ISSUER NOT Shares Capital COOPERATING; Rating Continues to remain under issuer not cooperating category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. LML Limited (LML) was promoted in 1972 as Lohia Machines Limited by the Singhania family to manufacture machinery for the synthetic fibres industry. Later, it diversified into production of 100 cc scooters, in technical collaboration with Piaggio Vespa, of Italy in 1984. Piaggio later took up 23.5% equity stake, which it later divested in favour of the Indian promoters pursuant to the settlement reached following certain legal disputes, which were settled out of court. Subsequently, the company entered into technical collaboration with Daelim Motor Company, South Korea (DMC) to set up a small capacity for manufacturing of four-stroke motorcycles. Following a strike by the workers, LML had declared a lock-out at its factory in Kanpur with effect from March 7, 2006. The lock-out remained in place for over a year and the same was lifted only in April 2007 pursuant to a tripartite agreement reached between the company, the Trade Union and the Labour Department of Government of Uttar Pradesh. The company, filed a petition of May 22, 2017 under 2 section 10 of the Insolvency & Bankruptcy Code, 2016 with National Company Law Tribunal (NCLT), Allahabad bench. The company is under Corporate Insolvency Resolution Process and the net worth of the company has been fully eroded and its current liabilities exceed its current assets as of December 31, 2017. LYPSA GEMS: ICRA Keeps D Debt Ratings in Not Cooperating Category ----------------------------------------------------------------- ICRA has retained the ratings of Lypsa Gems and Jewellery Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/ 50.00 [ICRA]D/[ICRA]D; ISSUER NOT Short Term COOPERATING; Rating Continues to Fund Based/ remain under 'Issuer Not Non Fund Based Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated on November 30, 1995, Maloo Polymers Limited, a public limited company, was listed on Ahmedabad Stock Exchange in the year 1997. In the year 2008-09, it was taken over by Mr. Dipan Patwa and Mr. Manish Janani. Subsequently the name of the company was also changed to Maloo Gems and Jewellery Ltd. on January 12, 2010. The name of the company was further changed to Lypsa Gems & Jewellery Limited (LGJL) on March 7, 2012. LGJL was listed on the Bombay Stock Exchange (BSE) on July 02, 2012. At present, LGJL is in the business of manufacturing and trading of polished diamonds and has two manufacturing facilities at Navsari and Palanpur respectively. The company specialises in manufacturing of small sized diamonds ranging from 0.005 to 0.75 cents. The company exports to various countries including Hong Kong, USA, UAE, and Belgium. MANN MEDICITI: ICRA Keeps D Debt Ratings in Not Cooperating ----------------------------------------------------------- ICRA has retained the Long-term rating of Mann Mediciti Wellness Centre Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 5.80 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term– 1.50 [ICRA]D; ISSUER NOT COOPERATING; Unallocated Rating Continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 1999, MMWC operates a hospital by the name of 'Mann Mediciti Super Speciality Hospital'. MMWC was established in 2009 and at present it is a 100-bedded facility located in Jalandhar, Punjab. It specialises in medicine, cardiology, neurology, orthopaedics and plastic and reconstructive surgery, among other branches of medical science. The company is empanelled with ex-servicemen contributory health Scheme (ECHS), employee state insurance scheme (ESIC) and the Food Corporation of India (FCI). Dr. J.S. Mann serves as a senior cardiologist at MMWC and is also the Managing Director of the company. MURUGAN FLOUR: ICRA Keeps D Debt Rating in Not Cooperating ---------------------------------------------------------- ICRA has retained the rating for the bank facilities of Shree Murugan Flour Mills (P) Ltd. in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long Term- 30.00 [ICRA]D; ISSUER NOT COOPERATING; Fund Based Rating Continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Shree Murugan Flour Mills (P) Ltd was established in 1986 by Mr. G Balasubramanian. The manufacturing facility of SMFMPL is located in Coimbatore and has an installed capacity to grind 70 MT of wheat per day. RMFPL manufactures various wheat products including 'maida', wheat flour ('atta') and 'sooji', among others. The products are sold under the brand name Bell. Besides, the company is involved in trading of wheat and sale of by-products including bran, bran flakes and dust. NICOMET INDUSTRIES: ICRA Keeps D Debt Ratings in Not Cooperating ---------------------------------------------------------------- ICRA has retained the Long-Term and Short-Term ratings of Nicomet Industries Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as [ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Term Loan 144.76 [ICRA]D; ISSUER NOT COOPERATING; Rating Continues to remain under 'Issuer Not Cooperating' Category Unallocated 5.24 [ICRA]D/[ICRA]D; ISSUER NOT Limits COOPERATING; Rating continues to remain under 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Nicomet Industries Limited is a closely held limited company, originally incorporated in 1993 as a private limited company under the name 'Metec International Pvt. Ltd'. The company commenced its operations in 1997. Currently, it is being managed by Rajendra Agrawal, Mr. Ankit Agrawal & Mr. Atul Agrawal. The company is engaged in manufacturing of Nickel, Cobalt metals and other related products like Nickel Sulphate, Nickel Nitrate and Cobalt Sulphate. The company has its registered office in Mumbai and a manufacturing facility at Goa. NORTH INDIA: ICRA Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- ICRA has retained the ratings of North India Surgical Company in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 11.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Short-term 1.00 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Continues to remain under the Limits 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. NISC, a partnership firm, commenced operations in April 2012 by taking over the operational business of a medical segment of Jagat Steels Private Limited. NISC is the exclusive dealer of stents made by Abbott Healthcare, spinal implants made by Medtronic Plc, and pacemaker of St. Jude. It also trades various disposable surgical items and medicines. OVERSEAS TRADERS: ICRA Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- ICRA has retained the long-term and Short-term ratings of Overseas Traders in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 12.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long Term (18.00) [ICRA]D; ISSUER NOT COOPERATING; Interchangable Rating Continues to remain under Limits issuer not cooperating category Short Term 2.00 [ICRA]D; ISSUER NOT COOPERATING; Non-Fund Rating Continues to remain under Based Limits issuer not cooperating category Long Term and 5.00 [ICRA]D/[ICRA]D; ISSUER NOT Short Term COOPERATING; Rating Continues Unallocated to remain under issuer not Limits cooperating category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Overseas Traders is a partnership firm established in 1977 and is involved in exporting agricultural commodities like onions, potatoes, tendu (beedi) leaves, fresh fruits and vegetables, with onion constituting majority of the sales. The commodities are procured from the domestic market and exported majorly to Sri Lanka, Malaysia, Pakistan and the UAE. OT has its registered office in Mumbai and is managed by the Katharani family. RLJ CONCAST: ICRA Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------- ICRA has retained the ratings for the bank facilities of RLJ Concast Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 15.60 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term– 31.01 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category Short-term 14.79 [ICRA]D; ISSUER NOT COOPERATING; Fund Based- Continues to remain under the Others 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. RLJ processes sponge iron and MS Ingots/billets. Its manufacturing facility, with an installed capacity of 60,000 tonnes per annum (TPA), is located at village Baragaon, Chunar area, District Mirzapur (Uttar Pradesh). RLJ is promoted by Mr. Arun Kumar Jain, who has also promoted S.A Iron & Alloys Private Limited, a 90,000 TPA sponge iron unit in Jeevnathpur, Chandauli (Uttar Pradesh). RLJ has recently set-up an induction furnace with a capacity of 28,800 TPA and a 6MW power generation plant. The projects started commercial production in October 2016. S A IRON: ICRA Keeps D Debt Ratings in Not Cooperating Category --------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of S A Iron & Alloys Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 19.50 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term– 39.50 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category Short-term 3.00 [ICRA]D; ISSUER NOT COOPERATING; Non Fund Based- Continues to remain under the Others 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. SAI is engaged in the processing of sponge iron with an installed capacity of 90,000 tonnes per annum (TPA) at village Jeevantpur, Ramngar Industrial Area, District Chanduali (Uttar Pradesh). SAI is promoted by Mr. Arun Kumar Jain, who has also promoted RLJ Concast Private Limited (RLJ), a 60,000 TPA sponge iron unit in Baragaon, District Mirzapur (Uttar Pradesh). S.A.M APPARELS: ICRA Moves D Debt Ratings to Not Cooperating ------------------------------------------------------------ ICRA moved the ratings for the bank facilities of S.A.M Apparels Pvt. Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based- 27.50 [ICRA]D; ISSUER NOT COOPERATING; Cash Credit Rating moved to 'Issuer Not Cooperating' Category Unallocated 2.50 [ICRA]D/[ICRA]D ISSUER NOT COOPERATING; Rating moved to 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in 2006, Sam Overseas was a 75:25 partnership between Mr. Mukesh Sharma and Mr. Ved Prakash Sachdev. The firm commenced operations in March 2006 with the manufacture of ladies' readymade garments for export markets. The promoters have been involved in the readymade garment export business since 1999 through proprietorship firm, Sam Overseas. In FY2011, to consolidate the existing business and as per the requirement from bankers, the erstwhile firm was taken over by the newly incorporated entity, namely S.A.M Apparels Pvt. Limited. SAM Overseas remains operational, but its entire business is managed by SAPL; the facilities of SAM Overseas are used on rent. The company has a total of two manufacturing facilities. Both the units are in Noida (UP). SABARI TEXTILES: ICRA Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------- ICRA has retained the ratings for the bank facilities of Sabari Textiles Private Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as "[ICRA]D/[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 12.47 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Term Loans 'Issuer Not Cooperating' Category Long-term– 3.83 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Limits 'Issuer Not Cooperating' Category Short-term 0.70 [ICRA]D; ISSUER NOT COOPERATING; Non-fund based Continues to remain under the Limits 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Sabari Textiles Private Limited, incorporated in November 2006, has its manufacturing facilities located in Coimbatore (Tamil Nadu). The Company is engaged in manufacturing of blended yarn in its unit located in the Coimbatore district. SANTOSH COTTON: ICRA Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ ICRA has retained the long-term rating of Shree Santosh Cotton Spin Pvt. Ltd. in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Cash Credit 10.00 [ICRA]D; ISSUER NOT COOPERATING; Rating Continues to remain under 'Issuer Not Cooperating' Category Term Loan 3.00 [ICRA]D; ISSUER NOT COOPERATING; Rating Continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in February 2013, Shree Santosh Cotton Spin Private Limited (SSCSPL) is engaged in cotton ginning and pressing business. The company started commercial operations from April 2014 at its plant located at Gondal, Rajkot in Gujarat. The plant is equipped with 44 ginning machines and 1 pressing machine with a total installed capacity of producing ~450 bales per day (considering 24 hours of operations). The promoters have extensive experience in cotton industry and are also involved in the operations of a few other cotton ginning companies namely Shree Raghuvanshi Fibers Private Limited, Gopal Enterprise, Gopal Trading Co. and Gopal Cotton Corporation. SATGURU METALS: ICRA Keeps D Debt Ratings in Not Cooperating ------------------------------------------------------------ ICRA has retained the rating for the bank facilities of Satguru Metals & Power Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based- 4.00 [ICRA]D; ISSUER NOT COOPERATING; Term Loan Rating Continues to remain under 'Issuer Not Cooperating' Category Fund Based- 4.95 [ICRA]D; ISSUER NOT COOPERATING; Cash Credit Rating Continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Satguru Metals & Power Private Limited (SMPPL) was established in August 2008. The company started commercial production with an installed capacity of 16005 MTPA in MS ingots at its manufacturing unit in Sundargarh, Odisha. It thereafter expanded its capacity to 18,000 MTPA of MS ingots and 9000 MTPA of pig iron, with the pig iron facility having been recently commissioned in August 2012. SRINAGAR BANIHAL: ICRA Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------- ICRA has retained the rating for the bank facilities of Srinagar Banihal Expressway Ltd in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund Based- 1440.00 [ICRA]D; ISSUER NOT COOPERATING; Facilities- Rating Continues to remain under Term Loan 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Srinagar Banihal Expressway Limited is a special purpose vehicle promoted by Ramky Infrastructure Ltd. (74%) and Jiangsu Provincial Transportation Engineering Group Company Limited (JTEG) (26%) for construction, operation and maintenance of the four Lanning of the Srinagar-Banihal section of National Highway – 1A from km 187.00 to km 189.350 (Banihal bypass) and km 220.700 to km 286.110 (approximately 67.76 km) on design, build, finance, operate and transfer (annuity) basis under the National Highways Development Project (NHDP Phase II). The total revised cost of the project is INR2000 crore. The total concession period is 20 years including the construction period of 3 years. SBEL will receive a fixed annuity payment of INR134.82 crores semi-annually for a period of 17 years. The project is being funded by INR1440 crore debt and INR360 crore of promoters' contribution and one time fund infusion from NHAI of INR200 crore. The project achieved provisional commercial operations date (PCOD) in April 2018. As against planned financial progress of 100.00%, actual financial progress is 95.20% as on September 2018. SUN HOSPITALITY: ICRA Keeps D Debt Rating in Not Cooperating ------------------------------------------------------------ ICRA has retained the Long-Term rating of Sun Hospitality & Service Apartments Private Limited in the 'Issuer Not Cooperating' category. The rating is denoted as [ICRA]D; ISSUER NOT COOPERATING. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 13.00 [ICRA]D; ISSUER NOT COOPERATING; Fund based/TL Rating Continues to remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due. Despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Incorporated in April 2010, Sun Hospitality and Service Apartments Private Limited is a closely held private limited company, based out of Mumbai, Maharashtra. The company is currently executing two projects in Goa: One of the projects is residential project while the second project involves the development of retail, commercial and hotel space. SUNNY ENTERPRISES: ICRA Keeps D Debt Ratings in Not Cooperating --------------------------------------------------------------- ICRA has retained the long-term and Short-term ratings of Sunny Enterprises in the 'Issuer Not Cooperating' category. The rating is denoted as "[ICRA]D/[ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term– 6.30 [ICRA]D; ISSUER NOT COOPERATING; Fund based Rating Continues to remain under Cash Credit 'Issuer Not Cooperating' Category Long-term/ 5.70 [ICRA]D/[ICRA]D; ISSUER NOT Short Term COOPERATING; Rating Continues to Unallocated remain under 'Issuer Not Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. Formed in 2003 by Mrs. Sheetal Tanna, Sunny Enterprises is authorised online lottery distributor of M/s Serenity Trades Private Limited, which is one of the main distributors for state government lotteries across India. The firm appoints the lottery retailers in these states, who in turn sell the lottery tickets to the final customers. It delivers rolls and charts for the lottery draw and supplies advertisement material. To diversify its business, SE is involved as an authorised distributor for Bata Limited in October2018, wherein it supplies Bata footwear to the multi-brand stores across Mumbai, Navi Mumbai, Palghar and Thane in Maharashtra. The firm also ventured in trading of agricultural products, namely dry coriander and jaggery. These two segments accounted for a minor share of the total operating income in FY2019. However, the firm is focussed to increase this share in the near to medium term. WOOLWAYS (INDIA): ICRA Keeps D Debt Ratings in Not Cooperating -------------------------------------------------------------- ICRA has retained the Long-Term and Short-Term ratings of Woolways (India) Limited in the 'Issuer Not Cooperating' category. The ratings are denoted as [ICRA]D / [ICRA]D; ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term/ 10.00 [ICRA]D/[ICRA]D; ISSUER NOT Short Term COOPERATING; Rating Continues to Fund Based/ remain under 'Issuer Not Cash Credit Cooperating' Category ICRA has been trying to seek information from the entity so as to monitor its performance. Further, ICRA has been sending repeated reminders to the entity for payment of surveillance fee that became due but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/limited information on the issuers' performance. Accordingly, the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. The rating action has been taken in accordance with ICRA's policy in respect of non-cooperation by a rated entity available at www.icra.in. WIL was incorporated in 1994 as a public limited company. It is engaged in the manufacturing of readymade garments from its two manufacturing facilities at Ludhiana, Punjab. The company is promoted by Mr. Rakesh Nayar and his wife, Mrs. Babita Nayar, who have over three decades of experience in readymade garment manufacturing. The company has its own brands for children's wear, 'Unikid'. The company also manufactures knitting garments for other players. WIL markets its product through its 21 retail outlets spread across northern and central India. WIL also has tie-ups with online aggregators for marketing and selling its products online. The company derives around 15-20% of its revenues from exports to Middle Eastern markets, such as Saudi Arabia and the United Arab Emirates (UAE), as well as to China. ===================== N E W Z E A L A N D ===================== CLOUD 9: Creditors' Proofs of Debt Due on July 15 ------------------------------------------------- Creditors of Cloud 9 Group Limited are required to file their proofs of debt by July 15, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 15, 2022. The company's liquidator is Kelera Nayacakalou. FOX EARS: Court to Hear Wind-Up Petition on July 22 --------------------------------------------------- A petition to wind up the operations of Fox Ears Limited will be heard before the High Court at Auckland on July 22, 2022, at 10:00 a.m. WestCity Pty Limited and WestCity NZ Nominees Pty Limited filed the petition against the company on May 23, 2022. The Petitioner's solicitor is: Christina Keil c/o Merran Keil Barrister Regent Chambers Level 4 68 Shortland Street Auckland [*] No. of Failed Businesses in NZ Down 50% on Pre-Covid-19 Levels ------------------------------------------------------------------ Radio New Zealand reports that the number of business failures continues to track below pre-pandemic levels, despite the end of Covid-19 support measures and stiffening economic headwinds. RNZ says the insolvency and liquidation industry has been surprisingly quiet during the pandemic, which has been put down to the government and the Reserve Bank's Covid-19 response. According to the report, the measures were said to have given rise to "zombie" companies - businesses that were on the verge of insolvency but had managed to stay afloat with the help of government support. As Covid-19 stimulus dried up there was an expectation that failures would pick up. However, Chapman Tripp partner Michael Harper said the number of companies placed into bankruptcy or liquidation was still down by about 50% on levels seen in 2019, according to RNZ. He said there were several factors for this. One of the key drivers of this was the softer enforcement approach taken by Inland Revenue during the pandemic, as it typically applies for more liquidation's than the rest of the market put together, he said, RNZ relays. "We understand that the Inland Revenue has entered into something like 140,000 payment arrangements that covers about NZD3.7 billion in debt." "The crucial indicator, I think, for insolvencies is the extent to which Inland Revenue enforces its claims against defaulting tax payers." He said IRD's recent application to put the property investment firm Propeller Property Investments into liquidation may hint that the tax department was getting back to business as usual, after relaxing its enforcement during the early stages of the pandemic. The government's business finance guarantee scheme had also provided lasting support to firms, Mr. Harper, as cited by RNZ, said. The scheme allowed small-to-medium-sized firms to access up to NZD5 million in credit. It ended a year ago and resulted in NZD2.8 billion being lent to 3,363 borrowers. According to RNZ, Mr. Harper said it was difficult to know when company failures would begin to pick up. However, he said history suggests that there was a lag time of about three to four years between an economic shock and a wave of liquidations and insolvencies. RNZ relates that Mr. Harper said with a surge in business insolvencies and bankruptcies looming, officials needed to review and reform insolvency law to make the sure the process of winding down a business or beginning a turnaround runs as smoothly as possible. He said Australia had recently put in place laws that encourage quick and inexpensive restructurings of small businesses, which New Zealand should adopt. RNZ says the Australian regime took a "debtor in possession mode" approach, which meant that a business with a million dollars in liabilities was eligible to keep trading under the control of its owners, provided it had the approval of a small business restructuring practitioner. The practitioner would then work with business owners to develop a restructuring plan, which would then be voted on by the creditors. "We've got a gap in the [New Zealand] law in that [local] companies do not have an efficient, effective and inexpensive rehabilitation process," the report quotes Mr. Harper as saying. "For those directors, you keep trading until you fail because voluntary administration or creditors compromises are too expensive or are poorly understood by your creditors." RNZ adds that Mr. Harper said following the Mainzeal and Debut Homes court cases, larger corporates still faced their own challenges around restructuring and rehabilitation, given the legal uncertainties surrounding directors' duties and insolvent trading in the Companies Act. He joined a chorus of business groups calling for a review of the law to clearly set out director's obligations around insolvent trading. The rise of litigation funders was also in "desperate need" of a review, he said. ===================== P H I L I P P I N E S ===================== FARMERS SAVINGS: Creditors' Claims Deadline Set for Aug. 15 ----------------------------------------------------------- All creditors of the closed Farmers Savings and Loan Bank, Inc. have until Aug. 15, 2022, to file their claims against the assets of the closed bank either by e-mail, mail, or personal filing. Creditors refer to any individual or entity with a valid claim against the assets of the closed Farmers Savings and Loan Bank, Inc. and include depositors whose deposits exceed the maximum deposit insurance coverage (MDIC) of PHP500,000. The Philippine Deposit Insurance Corporation (PDIC) said that creditors may file their claims through any of the following: 1. Online through e-mail at farmers-pad@pdic.gov.ph; 2. Through mail addressed to the PDIC Public Assistance Department, Ground Floor, PDIC Chino Bldg., 2228 Chino Roces Avenue, Makati City 1231. Claims filed by mail must have a postmark date no later than Aug. 15, 2022; or 3. Personal filing at the PDIC Public Assistance Center located at the 3rd Floor, SSS Bldg., 6782 Ayala Avenue corner V.A. Rufino St., Makati City, Monday to Friday, 8:00 AM to 5:00 PM. For visits to the PAC, clients are highly encouraged to request for an appointment, observe health protocols and present their vaccination cards. Appointments may be requested through the Public Assistance Hotline at (02) 8841-4141 or at Toll Free number 1-800-1-888-7342 or 1-800-1-888-PDIC, by sending an e-mail request to farmers-pad@pdic.gov.ph, or by sending a request through private message at PDIC's official Facebook page at www.facebook.com/OfficialPDIC. The prescribed Claim Form against the assets of the closed bank may be downloaded from the PDIC website at http://www.pdic.gov.ph/files/Claim_Form_Against_Assets_of_Closed_Banks.pdf. PDIC reminds creditors to transact only with authorized PDIC personnel. Claims filed after August 15, 2022 shall be disallowed. PDIC, as Receiver, shall notify creditors of denial of claims through mail. Claims denied or disallowed by the PDIC may be filed with the liquidation court within 60 days from receipt of final notice of denial of claim or within 20 days from date of publication of the Order setting the Petition for Assistance in the Liquidation Proceeding for initial hearing, whichever is later. In addition, PDIC said that depositors with account balances of more than the MDIC of PHP500,000 who have already filed claims for the insured portion of their deposits as of August 15, 2022 are deemed to have filed their claims for the uninsured portion or the amount in excess of the MDIC. PDIC, as Receiver of closed banks, requires personal data from creditors to be able to process their claims and protects these data in compliance with the Data Privacy Act of 2012. Farmers Savings and Loan Bank, Inc. was ordered closed by the Monetary Board (MB) of the Bangko Sentral ng Pilipinas on May 12, 2022 and PDIC, as the designated Receiver, was directed by the MB to proceed with the takeover and liquidation of the closed bank in accordance with Section 12(a) of Republic Act No. 3591, as amended. It is an eight-unit thrift bank with Head Office located in McArthur Hi-way, Brgy. Wakas, Bocaue, Bulacan. Its branches are located in Sta. Maria (2), Angat, Guiginto, Norzagaray, Pulilan, and Bulacan, all in Bulacan. All requests and inquiries relating to Farmers Savings and Loan Bank, Inc. shall be addressed to the PDIC Public Assistance Department through e-mail at farmers-pad@pdic.gov.ph, or through telephone number (02) 8841-4141. Creditors outside Metro Manila may call the PDIC Toll Free Hotline during office hours at 1-800-1-888-PDIC (7342). Inquiries may also be sent as private message to the PDIC's official Facebook page at www.facebook.com/OfficialPDIC. ================= S I N G A P O R E ================= ANCHORVALE RESIDENCES: Creditors' Proofs of Debt Due on Aug. 1 -------------------------------------------------------------- Creditors of Anchorvale Residences Pte Ltd and Corporate Residence Pte Ltd are required to file their proofs of debt by Aug. 1, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 27, 2022. The company's liquidators are: Victor Goh Khor Boon Hong C/o Baker Tilly TFW LLP 600 North Bridge Road #05-01 Parkview Square Singapore 188778 INTERUSH (SINGAPORE): Creditors' Proofs of Debt Due on Aug. 1 ------------------------------------------------------------- Creditors of Interush (Singapore) Pte Ltd are required to file their proofs of debt by Aug. 1, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 27, 2022. The company's liquidators are: Victor Goh Khor Boon Hong C/o Baker Tilly TFW LLP 600 North Bridge Road #05-01 Parkview Square Singapore 188778 OPENET TELECOM: Creditors' Proofs of Debt Due on Aug. 2 ------------------------------------------------------- Creditors of Openet Telecom Asia Pte. Ltd. are required to file their proofs of debt by Aug. 2, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 23, 2022. The company's liquidator is: Ong Kok Yeong David c/o 80 Robinson Road #02-00 Singapore 068898 SASPO LTD: Commences Wind-Up Proceedings ---------------------------------------- Members of Saspo Ltd, on June 24, 2022, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Chian Yeow Hang 238A Thomson Road #25-07/08 Novena Square Tower A Singapore 307684 TONG TIEN: Creditors' Proofs of Debt Due on July 15 --------------------------------------------------- Creditors of Tong Tien See Construction Pte. Ltd. are required to file their proofs of debt by July 15, 2022, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 27, 2022. The company's liquidator is: Yin Kum Choy c/o MIRAI Consulting SG 120 Lower Delta Road #09-12 Cendex Centre Singapore 169208 ZILINGO PTE: Co-Founder Ankiti Bose Steps Down ---------------------------------------------- Inc42 reports that Zilingo cofounder and former CEO Ankiti Bose has resigned from all directorship positions at Zilingo, including the holding company and all subsidiaries, even as the future of the company hangs in the balance. Bose's resignation comes at a time when the Singapore-based fashion startup is in discussions with shareholders over a management buyout offer as well as potential liquidation of the company's assets to pay off creditors. Earlier this month, Zilingo cofounder and CTO Dhruv Kapoor had proposed a management buyout offer to shareholders which would involve liquidation of Zilingo's assets and the formation of a new company, Inc42 relates. The proposal was backed by Bose and the duo had also claimed that they had received commitments from investors to back the new project to the tune of US$8 million. However, voting on this proposal as well as any other potential outcomes for Zilingo such as a complete liquidation was stalled, Inc42 recalls. "Over the past few months, despite my requests, the Zilingo board has failed to show me any report (issued by Kroll or Deloitte) which pertained to any investigations into the company or into my alleged misconduct, and why or how these were used to terminate my position as CEO," Inc42 quotes Ms. Bose as saying. "This was notwithstanding that I remained a board director in the group's holding company and its subsidiaries, and despite the fact that I remain a shareholder of the company. During this time, other material information pertaining to the company has also been concealed from me." Based in Singapore, Zilingo Pte. Ltd -- https://zilingo.com/en/ -- operates as an online store. The Company offers womens and mens clothing, bags, wallets, accessories, jewellery, shoes, make up, and home decorative products. Zilingo serves customers worldwide. ===================== S O U T H K O R E A ===================== SOUTH KOREA: Bankruptcy Ct. Warns of Surge in Crypto-Related Cases ------------------------------------------------------------------ Cryptonews reports that South Korean courts are bracing for a wave of crypto-related bankruptcies - and have created a "working rule" that will help them deal with cases involving individuals who have fallen foul of crypto investments gone wrong. Cryptonews, citing Newsis, relates that the Seoul Bankruptcy Court warned of a "domino effect" comprising of ailing crypto investors and struggling creditors. And these dominoes are starting to fall, the court added, with more cases expected to hit the courts in the second half of this year. "The burden on debt of young people in their 20s and 30s - due to failed investment in areas such as cryptocurrency - is increasing day by day. Individual applications for bankruptcies are also increasing," the court was quoted as announcing, Cryptonews relays. It added that many creditors who had lent crypto investors fiat to fund their investments were also likely to follow token traders into the bankruptcy courts in the next few months, the report says. According to Cryptonews, the court said that it had already laid the ground for this coming wave of bankruptcies by launching a new task force to deal with individuals in investment-related cases. It added that there had also been a rise in stock market investment-related bankruptcies. The task force stated that it had introduced a temporary "working rule" for crypto and stock market investment-related cases. In conventional South Korean bankruptcy cases, the value of an investment is often calculated using projections of an asset's expected future worth at the time of purchase. This can lead to cases whereby, the task force explained, individuals "are constrained by the logic that the total amount that debtors have to repay is higher than the losses" that they incur on investments, the report states. The "main goal" of the new rule is not to include losses in stock or crypto investments in bankruptcy-related calculations made by the courts, Newsis, as cited by Cryptonews, explained. However, the court added that this "working rule" would not apply in cases where individuals had attempted to conceal the details of their crypto investments. The rule was to come into force last July 1, the court concluded, Cryptonews relays. ================= S R I L A N K A ================= SRI LANKA: Aims to Stop Money Printing as Inflation Nears 60% ------------------------------------------------------------- Bloomberg News reports that Sri Lanka, which has run out of dollars to purchase fuel and is printing rupees to pay local salaries, aims to stop injecting local currency to quash Asia's fastest inflation. Bloomberg relates that the inflation rate is estimated to reach 60%, Prime Minister Ranil Wickremesinghe told parliament on July 5 before a monetary policy review due July 7. Talks for a bailout from the International Monetary Fund are complicated because the nation is bankrupt, he added. According to Bloomberg, Wickremesinghe now sees Sri Lanka reaching a staff-level agreement with the IMF in August, delayed from the June deadline provided earlier. Consumer prices rose 54.6% in June from a year earlier, with transport surging 128% from the previous month and food 80% amid acute shortages of crops and crude oil, Bloomberg notes. The Central Bank of Sri Lanka is on track to print more rupees in a shrinking economy this year than it did when output grew in 2021, which is also fanning costs. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2022. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. *** End of Transmission ***