/raid1/www/Hosts/bankrupt/TCRAP_Public/230922.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
Friday, September 22, 2023, Vol. 26, No. 191
Headlines
A U S T R A L I A
BIT TRADE: ASIC Sues Crypto Exchange on Distribution Failures
FERGIE TRANSPORT: First Creditors' Meeting Set for Sept. 29
GREENLEAF (TAS): Second Creditors' Meeting Set for Sept. 28
HARMAC HOMES: Second Creditors' Meeting Set for Sept. 26
IONMY PTY: Second Creditors' Meeting Set for Sept. 26
PARAMOUNT FIRE: Second Creditors' Meeting Set for Sept. 28
PROGRESS 2023-2: S&P Assigns BB (sf) Rating to Class E Notes
WAKE CONCEPTS: Collapses Into Liquidation; 100 Jobs Axed
C H I N A
CHINA: An Even Bigger Housing Crisis Threatens Country's Economy
TD HOLDINGS: CFO Yang Steps Down
I N D I A
AKASA AIR: Cuts Flights as Pilots Quit, Flags Shutdown Risk
AL-AYAAN FOODS: CRISIL Keeps D Debt Rating in Not Cooperating
ARYAN SILK: CRISIL Keeps D Debt Rating in Not Cooperating
ASIA-PACIFIC INSTITUTE: CRISIL Keeps D Rating in Not Cooperating
DAYANAND COTTON: CRISIL Keeps D Debt Ratings in Not Cooperating
DHANSHREE SEEDS: CRISIL Keeps D Debt Ratings in Not Cooperating
DHARTI COTTON: CRISIL Keeps D Debt Rating in Not Cooperating
FUCON TECHNOLOGIES: CRISIL Keeps D Debt Rating in Not Cooperating
INCOM WIRES: CRISIL Keeps D Debt Ratings in Not Cooperating
KESHAV ENTERPRISES: CRISIL Keeps D Ratings in Not Cooperating
LAXMI ENTERPRISES: CRISIL Keeps D Debt Ratings in Not Cooperating
LINK ENTERPRISES: CRISIL Keeps D Debt Ratings in Not Cooperating
M VENKATARAMA: CRISIL Keeps D Debt Ratings in Not Cooperating
MINEX INDIA: CRISIL Keeps D Rating in Not Cooperating Category
MONGA IRON: CRISIL Keeps D Debt Ratings in Not Cooperating
NANGALI RICE: CRISIL Keeps D Debt Ratings in Not Cooperating
NATURAL FOODS: CRISIL Keeps D Debt Ratings in Not Cooperating
PNS METALS: CRISIL Keeps D Debt Ratings in Not Cooperating
RANGOLI INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating
RAVELS APPARELS: CRISIL Keeps D Debt Ratings in Not Cooperating
S. R. S. MEDITECH: CRISIL Keeps D Debt Ratings in Not Cooperating
SHIVSHAKTI BARRELS: CRISIL Keeps D Ratings in Not Cooperating
SHRIMATI POORNA: CRISIL Keeps D Debt Rating in Not Cooperating
SHYAMALI COLD: CRISIL Keeps D Debt Ratings in Not Cooperating
SIDDHI VINAYAK: CRISIL Keeps D Debt Ratings in Not Cooperating
SIR. M. VISVESVARAYA: CRISIL Keeps D Ratings in Not Cooperating
SPICEJET LTD: Wants Insolvency Petitions Dismissed
SYNDICATE JEWELLERS: CRISIL Keeps D Rating in Not Cooperating
VISHNURAAM TEXTILES: CRISIL Keeps D Ratings in Not Cooperating
J A P A N
SOFTBANK GROUP: S&P Alters Outlook to Positive, Affirms 'BB' ICR
TOSHIBA CORP: Takeover by Japanese Consortium Completed
N E W Z E A L A N D
CBL CORPORATION: Court Acquits Former CEO from SFO Charges
EXPAND LIMITED: Court to Hear Wind-Up Petition on Sept. 29
NEW ZEALAND: Emerged from Shallow Recession as Next Slowdown Looms
PENINSULA PLUMBING: Creditors' Proofs of Debt Due on Oct. 18
TAYLOR REINFORCING: Court to Hear Wind-Up Petition on Sept. 29
TELFER SKATES: Creditors' Proofs of Debt Due on Oct. 18
YOYOSO NZ: Court to Hear Wind-Up Petition on Oct. 13
S I N G A P O R E
BCI4 PTE: Members' Final Meeting Set for Oct. 19
BELONG PTE: Members' Final Meeting Set for Oct. 23
BRANDED LIFESTYLE: Members' Final Meeting Set for Oct. 19
MEMSTAR TECHNOLOGY: Members' Final Meeting Set for Oct. 16
QINGJIAN REALTY: Members' Final Meeting Set for Oct. 20
V I E T N A M
HANOI POWER: Fitch Affirms Foreign Curr IDR at BB, Outlook Positive
HO CHI MINH: Fitch Affirms Foreign Curr IDR at 'BB', Outlook Stable
X X X X X X X X
[*] ADB Sees Solid Growth but Rising Risks for Asia and Pacific
- - - - -
=================
A U S T R A L I A
=================
BIT TRADE: ASIC Sues Crypto Exchange on Distribution Failures
-------------------------------------------------------------
The Australian Securities and Investments Commission (ASIC) has
commenced civil penalty proceedings in the Federal Court against
Bit Trade Pty Ltd, provider of the Kraken crypto exchange to
Australian customers.
ASIC alleges that Bit Trade failed to comply with the design and
distribution obligations for the margin trading product it offers
Australian customers on the Kraken exchange.
ASIC's case focuses on Bit Trade's failure to make a target market
determination for the product before offering it to Australian
customers, as required by law.
ASIC alleges that Bit Trade's margin trading product is a credit
facility as it offers customers credit for use in the sale and
purchase of certain crypto assets on the Kraken exchange. Bit Trade
describes this as 'margin extension'. Customers can receive an
extension of credit of up to five times the value of the assets
they use as collateral.
ASIC Deputy Chair Sarah Court said, 'These proceedings should send
a message to the crypto industry that products will continue to be
scrutinised by ASIC to ensure they comply with regulatory
obligations in order to protect consumers.
'ASIC's action should be a reminder of the importance to comply
with the design and distribution obligations so that financial
products are distributed to consumers appropriately.'
Bit Trade has offered its margin trading product to Australian
customers via the Kraken exchange since January 2020. ASIC alleges
that since the commencement of the design and distribution
obligations on Oct. 5, 2021, at least 1,160 Australian customers
have used the margin trading product incurring a total loss of
approximately AUD12.95 million.
ASIC notified Bit Trade of its concerns regarding the failure to
comply with the design and distribution obligations in June 2022.
Bit Trade continues to offer the product to Australian customers
without a target market determination.
ASIC is seeking declarations, pecuniary penalty and injunctions
prohibiting the ongoing alleged contravening conduct.
The date for the first case management hearing is yet to be
scheduled by the Court.
Bit Trade is registered with AUSTRAC. It is a subsidiary of Payward
Incorporated.
FERGIE TRANSPORT: First Creditors' Meeting Set for Sept. 29
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Fergie
Transport Pty Ltd will be held on Sept. 29, 2023, at 10:00 a.m.
online via Microsoft Teams.
Joshua Philip Taylor of Taylor Insolvency was appointed as
administrator of the company on Sept. 19, 2023.
GREENLEAF (TAS): Second Creditors' Meeting Set for Sept. 28
-----------------------------------------------------------
A second meeting of creditors in the proceedings of Greenleaf (TAS)
Pty Ltd has been set for Sept. 28, 2023 at 3:00 p.m. virtually via
Zoom meetings.
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 Sept. 27, 2023 at 4:00 p.m.
Kiara Calvert and Barry Hamilton of Barry Hamilton & Associates
were appointed as administrators of the company on Aug. 24, 2023.
HARMAC HOMES: Second Creditors' Meeting Set for Sept. 26
--------------------------------------------------------
A second meeting of creditors in the proceedings of Harmac Homes
Pty Ltd, Harmac Constructions Pty Ltd, Harmac Urban Living Pty Ltd,
and Ridge Homes Pty Ltd. has been set for Sept. 26, 2023 at 12:00
p.m. at the offices of Cor Cordis atLevel 29, 360 Collins Street in
Melbourne and via virtual meeting technology.
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 Sept. 25, 2023 at 4:00 p.m.
Shaun Matthews and Barry Wight of Cor Cordis were appointed as
administrators of the company on Aug. 22, 2023.
IONMY PTY: Second Creditors' Meeting Set for Sept. 26
-----------------------------------------------------
A second meeting of creditors in the proceedings of Ionmy Pty Ltd
has been set for Sept. 26, 2023 at 10:30 a.m. at the offices of
Jirsch Sutherland at Level 14, 383 Kent Street in Sydney.
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 Sept. 25, 2023 at 4:00 p.m.
Andrew John Spring and Trent Andrew Devine of Jirsch Sutherland
were appointed as administrators of the company on Aug. 23, 2023.
PARAMOUNT FIRE: Second Creditors' Meeting Set for Sept. 28
----------------------------------------------------------
A second meeting of creditors in the proceedings of Paramount Fire
Protection Pty Ltd has been set for Sept. 28, 2023 at 3:00 p.m. at
the offices of Hamilton Murphy Advisory at Level 21, 114 William
Street.
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 Sept. 27, 2023 at 4:00 p.m.
Stephen Dixon of Hamilton Murphy Advisory was appointed as
administrator of the company on Aug. 24, 2023.
PROGRESS 2023-2: S&P Assigns BB (sf) Rating to Class E Notes
------------------------------------------------------------
S&P Global Ratings assigned its ratings to six classes of prime
residential mortgage-backed securities (RMBS) issued by Perpetual
Trustee Co. Ltd. as trustee for Progress 2023-2 Trust. Progress
2023-2 Trust is a securitization of prime residential mortgages
originated by AMP Bank Ltd.
S&P said, "The ratings reflect our view of the credit risk of the
underlying collateral portfolio and the credit support provided to
each class of rated notes are commensurate with the ratings
assigned. Credit support is provided by subordination, lenders'
mortgage insurance (LMI), and excess spread, if any. Our assessment
of credit risk considers AMP Bank's underwriting standards and
approval process, which are consistent with industrywide practices,
the servicing quality of AMP Bank, and the support provided by the
LMI policies on 8.0% of the portfolio.
"We believe the rated notes can meet timely payment of interest and
ultimate payment of principal under the rating stresses. Key rating
factors are the level of subordination provided, the LMI cover, the
interest-rate swap, the mechanism for trapping excess spread into
an excess reserve, the provision of a liquidity reserve, and the
provision of an income reserve--funded by AMP Bank at closing to
cover extraordinary expenses--sized at a level consistent with the
ratings. All rating stresses are made on the basis that the trust
does not call the notes at or beyond the first call-option date,
and that all rated notes must be fully redeemed via the principal
waterfall mechanism under the transaction documents.
"Our ratings also consider the counterparty exposure to Australia
and New Zealand Banking Group Ltd. and MUFG Bank Ltd. as bank
account providers and to BNP Paribas as fixed-rate swap provider.
The fixed-rate swap will be provided to hedge the fixed-rate
mortgage loans and the floating-rate obligations on the notes. The
transaction documents include downgrade remedies consistent with
our counterparty criteria. The legal structure of the trust is
established as a special-purpose entity and meets our criteria for
insolvency remoteness."
Ratings Assigned
Progress 2023-2 Trust
Class A, A$690.00 million: AAA (sf)
Class AB, A$30.975 million: AAA (sf)
Class B, A$11.325 million: AA (sf)
Class C, A$7.425 million: A (sf)
Class D, A$3.525 million: BBB (sf)
Class E, A$3.450 million: BB (sf)
Class F, A$3.300 million: Not rated
WAKE CONCEPTS: Collapses Into Liquidation; 100 Jobs Axed
--------------------------------------------------------
News.com.au reports that South Australian building company Wake
Concepts has collapsed, leaving a slew of unfinished projects and
about 100 workers out of a job.
On Sept. 20, the business announced it would be "wound up" and
Anthony Phillips from Heard Phillips Lieberenz appointed as its
liquidator, news.com.au relates.
A statement released by Mr. Phillips said his priority would be to
ensure Wake Concepts employees were paid, before investigating what
led to the company's collapse.
"The liquidator's most urgent task is to help employees get paid,
and at first instance that will be by facilitating claims in the
government's Fair Entitlements Guarantee Scheme and the Building
Industry Redundancy Scheme," news.com.au quotes Mr. Phillips as
saying. "In the longer term, the focus will be on realising as much
as can be from the company's projects and investigating the cause
of the company's failure."
Wake Concepts is involved in the AUD1 billion build of Walker
Corporation's One Festival Tower, which was slated to be completed
in 2023.
Established in 1982, Wake Concepts has been involved in major
infrastructure and construction projects across South Australia,
including work on the Oval Hotel, the Sofitel's Luminesque
Apartments and the Ashford Hospital.
=========
C H I N A
=========
CHINA: An Even Bigger Housing Crisis Threatens Country's Economy
----------------------------------------------------------------
The Wall Street Journal reports that China's giant housing industry
is lurching into a new crisis that threatens to be the country's
worst yet.
Two years ago, the debt-laden developer China Evergrande Group
spiraled into insolvency, bursting the country's real-estate bubble
and setting off a chain of developer defaults and business losses,
the Journal recalls.
The Journal says the industry's troubles have dragged down China's
economy. Now China's largest privately run property developer,
Country Garden, is struggling to survive, the report notes. Unlike
Evergrande, which was brought down by its profligate habits,
Country Garden's troubles come from the retreat of investors and
home buyers from the industry. Its financial distress could create
far bigger problems for the economy and policy makers than
Evergrande's debt default in 2021.
According to the Journal, Country Garden focused much of its
enormous footprint on rural cities and industrial zones, which were
an engine of China's growth in good times. Those areas are now
wrestling with strained government finances and an accelerating
exodus of residents, leaving them less able to absorb the fallout
from a large developer's failure.
China's economy is also sputtering on many fronts after a
short-lived rebound from its post-Covid reopening earlier this
year.
The Journal relates that economists predict the housing industry's
problems will deal another big hit to consumer confidence and
prolong what has already been a protracted property-sector
downturn. Real estate and related industries contribute roughly a
quarter of China's gross domestic product, the Journal notes.
TD HOLDINGS: CFO Yang Steps Down
--------------------------------
TD Holdings, Inc. disclosed in a Form 8-K Report filed with the
Securities and Exchange Commission that the Company was informed by
Tianshi (Stanley) Yang that he will resign from his position as the
Chief Financial Officer and as a director of the board of directors
of the Company, effective September 11.
Yang's resignation is not because of any disagreement with the
Company relating to its operations, policies or practices,
including accounting principles and practices.
On September 11, 2023, the Board appointed Wenhao Cui as the Chief
Financial Officer of the Company and a member of the Board to fill
the vacancies created by the resignation of Yang, effective
September 11.
Wenhao Cui served as the finance director of Tongdao E-commerce
Group Limited from August 2018 until September 9, 2023. From March
2016 to July 2018, Cui served as Supervisor of the Finance
Department Shenzhen Color Life Services Group Co., LTD. (HKEx:
01778). From March 2015 to February 2016, Cui worked as a financial
assistant in Dongguan Yinji Group Co., LTD. Cui graduated from
Jinan University in Guangdong, China.
Cui entered into an employment agreement with the Company, which
sets his annual compensation at $30,000 and establishes other terms
and conditions governing his service to the Company.
The Board also appointed Ms. Ge Ouyang as the Chief Operating
Officer, effective September 11.
Ouyang Ge, once served as the Chairwoman of Tongdao Group. In 2011,
Ouyang co-founded Tongdao Group and was responsible for its
operational management until September 9, 2023. Prior to
co-founding Tongdao Group, Ouyang served as the Director of
Securities Information Department at Hexun Information Technology
Co., Ltd. and as the General Manager at Beijing Zhonghuidaoming
International Capital Co., Ltd. Ouyang graduated from Hunan Normal
University in Hunan, China.
Ouyang also entered into an employment agreement with the Company,
which sets her annual compensation at $42,000 and establishes other
terms and conditions governing her service to the Company.
About TD Holdings
Headquartered in Shenzhen, Guangdong, PRC, TD Holdings, Inc. --
http://ir.tdglg.com-- is a service provider currently engaging in
commodity trading business and supply chain service business in
China. Its commodities trading business primarily involves
purchasing non-ferrous metal product from upstream metal and
mineral suppliers and then selling to downstream customers. Its
supply chain service business primarily has served as a one-stop
commodity supply chain service and digital intelligence supply
chain platform integrating upstream and downstream enterprises,
warehouses, logistics, information, and futures trading.
TD Holdings, Inc. filed with the Securities and Exchange Commission
its Annual Report on Form 10-K disclosing net income attributable
to the Company's stockholders of $4.52 million on $156.83 million
of total revenues for the year ended Dec. 31, 2022, compared to a
net loss attributable to the Company's stockholders of $940,357 on
$201.13 million of total revenues for the year ended Dec. 31,
2021.
As of Dec. 31, 2022, the Company had $363.10 million in total
assets, $65.12 million in total liabilities, and $297.97 million in
total shareholders' equity.
* * *
This concludes the Troubled Company Reporter's coverage of TD
Holdings until facts and circumstances, if any, emerge that
demonstrate financial or operational strain or difficulty at a
level sufficient to warrant renewed coverage.
=========
I N D I A
=========
AKASA AIR: Cuts Flights as Pilots Quit, Flags Shutdown Risk
-----------------------------------------------------------
Reuters reports that Indian budget carrier Akasa Air has been
forced to cut flights in the short-term after many of its pilots
quit abruptly, sparking a legal dispute in court where the company
has warned that further resignations may even force it to shut
down.
A small set of pilots "abandoned their duties" and left without
serving their mandatory contractual notice period, causing a
disruption of flights, but the airline is on course to invest in
growing its operations and ordering more planes, CEO Vinay Dube
told employees in an email on Sept. 19, Reuters relates.
According to Reuters, Mr. Dube's email came on a day when the
airline's counsel told a Delhi court that Akasa was in "crisis" and
may shut down after the abrupt resignations, said a person with
direct knowledge of the hearing.
Akasa told the court it cancelled 600 flights in August and would
be forced to cancel up to 700 more in September if the resignations
continue, the person added.
"We have chosen to fly less and give up market share . . . these
are only short-term constraints," he said, adding that the airline
had "strong finances" and was confident of its future, Reuters
relays.
Reuters relates that Akasa has dragged the pilots, many of whom
have joined rival Air India Express, to court and initiated legal
proceedings against the aviation regulator to enforce the notice
period.
The notice period ranges between 6-12 months, depending on the
pilot's rank, according to the aviation regulator.
"All our actions are aimed at creating a durable and reliable
airline for the long run," Akasa said in a statement, relays the
report.
Reuters notes that the distress call by Akasa comes at a time of
deep polarisation in India's aviation industry with IndiGo, the
country's biggest carrier, and Tata-owned Air India controlling
nearly two-thirds of the market, while Go Air struggles to come out
of bankruptcy and SpiceJet faces a funding crunch.
Founded by Dube and former IndiGo president Aditya Ghosh in 2022,
Akasa saw its market share dip to 4.2% in August from 5.2% a month
earlier, Reuters discloses citing government data.
Akasa, which has 72 Boeing planes on order, ordered four more 737
MAX jets in June to further boost its international flying plans.
It is on track to announce a new three-digit aircraft order before
the end of the year, Mr. Dube said.
Reuters adds Mr. Dube said India's civil aviation ministry last
week cleared Akasa to begin international flights and the
government is working on the airline's request for traffic rights
after which it can firm up the destinations it flies to first.
"Akasa is a well-run airline with strong finances and a solid
plan," he said.
AL-AYAAN FOODS: CRISIL Keeps D Debt Rating in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Al-Ayaan Foods
Private Limited (AAFPL) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AAFPL for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AAFPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AAFPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AAFPL continues to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 2014 by Mr. Naushad Elahi and Ms. Mumtaz Elahi,
AAFPL trades in livestock (buffalo). The company commenced
operations in December 2014. The company was acquired by Mr.
Mohammed Elahi Qureshi and Mr. Dilshad in 2015.
ARYAN SILK: CRISIL Keeps D Debt Rating in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Aryan Silk
Mills (ASM) continues to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with ASM for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of ASM, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on ASM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
ASM continues to be 'CRISIL D Issuer Not Cooperating'.
ASM, based in Mumbai, is a partnership firm set up in 1982 by Mr
Subhash Arya and his family. It manufactures man-made and cotton
fabrics (shirtings and suitings) under the brand, Aryan Silk. The
firm's facility for design work is in Bhiwandi, Maharashtra. ASM
follows an asset-light model and outsources the manufacturing and
processing work to vendors.
ASIA-PACIFIC INSTITUTE: CRISIL Keeps D Rating in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Asia-Pacific
Institute of Management (A Unit of All India Asian Educational
Foundation) (AIAEF) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Term Loan 18 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with AIAEF for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of AIAEF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on AIAEF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
AIAEF continues to be 'CRISIL D Issuer Not Cooperating'.
AIAEF was set up in 1996 by Mr. A K Shrivastav and his family
members. The society operates APIM, which provides postgraduate
courses in business administration.
DAYANAND COTTON: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Dayanand
Cotton Ind (DCI) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Term Loan 1 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DCI for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of DCI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DCI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
DCI continues to be 'CRISIL D Issuer Not Cooperating'.
DCI is a partnership firm that started commercial production from
February 2012. The firm is engaged in ginning and pressing of raw
cotton (kapas). There are 12 partners in the firm with Mr.
Jerambhai Dubriya (15 per cent stake), Mr. Jitendrakumar Khokhani
(10 per cent), and Mr. Chunilal Ghetiya (10 per cent) actively
handling its operations.
DHANSHREE SEEDS: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Dhanshree
Seeds Private Limited (DSPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11.39 CRISIL D (Issuer Not
Cooperating)
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Cash Credit 5 CRISIL D (Issuer Not
Cooperating)
Term Loan 1.11 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DSPL for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of DSPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DSPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
DSPL continues to be 'CRISIL D Issuer Not Cooperating'.
Incorporated in 2012 by Mr. Prakash Shah, DSPL is into processing
of non-basmati rice with its processing unit based in Moriya
(Gujarat). The total processing capacity of unit is 5 tonnes per
hour.
DHARTI COTTON: CRISIL Keeps D Debt Rating in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Dharti Cotton
Industries (DCI) continues to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.5 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with DCI for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of DCI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on DCI
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
DCI continues to be 'CRISIL D Issuer Not Cooperating'.
DCI is an Amreli, Gujarat based partnership firm, established in
2007. The company is engaged in cotton ginning and pressing
operations.
FUCON TECHNOLOGIES: CRISIL Keeps D Debt Rating in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Fucon
Technologies Limited (FTL) continues to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Working Capital 11.6 CRISIL D (Issuer Not
Demand Loan Cooperating)
CRISIL Ratings has been consistently following up with FTL for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of FTL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on FTL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
FTL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
The company provides various Anti-ageing car care services like
Anti Corrosive treatment, Teflon coating, Car interior cleaning,
Engine coating, engine flushing etc.
INCOM WIRES: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Incom Wires
and Cables Limited (IWCL) continue to be 'CRISIL D/CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 6 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 2.15 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 3.85 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with IWCL for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of IWCL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on IWCL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
IWCL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
IWCL, incorporated in 1995, manufactures different types of
electric wires, power cables, control cables, railway signaling
cables, railway quad cables and telephone cables at its unit in
Mayapuri Industrial Estate, Delhi. IWCL is approved by the Research
Design and Standards Organisation as a Part 1 supplier of signaling
and telecommunication cables to Indian Railways. The company is
also an approved vendor for other state government power utilities
such as National Thermal Power Corporation Ltd, state electricity
boards of Punjab, Haryana and Rajasthan and private companies like
L&T Ltd.
KESHAV ENTERPRISES: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Keshav
Enterprises (KE) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Letter of Credit 11 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 3 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with KE for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of KE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on KE is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of KE
continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
KE was set up in 2006 as a proprietorship firm by Mr. Vikrant
Prajapati. The firm is engaged in ship-breaking and trading of
scrap metal. It started operations with trading of scrap metal
procured from other ship-breakers; in 2012-13, it procured its
first ship for breaking.
LAXMI ENTERPRISES: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sri Laxmi
Enterprises (SLE) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL D (Issuer Not
Cooperating)
Cash Credit 2 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 0.25 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 4.75 CRISIL D (Issuer Not
Cooperating)
Term Loan 0.75 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SLE for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SLE, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SLE
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SLE continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
SLE was established as a partnership firm in 2004 by Mr. Omprakash
Agarwal and his family members. It gins and presses raw cotton at
its ginning unit in Adilabad. It currently has four partners: Mr.
Amit Agarwal, Mr. Omprakash Agarwal, Ms. Arti Agarwal, and Ms. Usha
Agarwal.
LINK ENTERPRISES: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Link
Enterprises (Link) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 9 CRISIL D (Issuer Not
Cooperating)
Cash Credit 6 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Link for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Link, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on Link
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
Link continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Link was established in 1998 as a partnership firm between Mr Anil
Jaitly and his family. It constructs roads and buildings for state
public works and irrigation departments, and the National Highway
Authority of India.
M VENKATARAMA: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of M Venkatarama
Reddy (MVR) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 9 CRISIL D (Issuer Not
Cooperating)
Cash Credit 9 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with MVR for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MVR, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MVR
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MVR continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Established in 1989 as a proprietorship firm, MVR is a
Bengaluru-based civil contractor. The firm primarily undertakes
construction of roads projects. The operations are managed by Mr. M
Venkatarama Reddy.
MINEX INDIA: CRISIL Keeps D Rating in Not Cooperating Category
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Minex India
(Minex) continues to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with Minex for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of Minex, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on Minex
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
Minex continues to be 'CRISIL D Issuer Not Cooperating'.
Minex was established by Mr. Sabyasachi Pattnaik and his brother,
Mr. Subhrakanta Pattnaik, as a partnership firm in 2005. The firm
trades in iron ore fines. Mr. Sabyasachi Pattnaik manages the
firm's day-to-day operations.
MONGA IRON: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Monga Iron
And Steel Private Limited (MISPL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 6 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with MISPL for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of MISPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on MISPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
MISPL continues to be 'CRISIL D Issuer Not Cooperating'.
MISPL was set up in 1985 as a proprietorship firm, and was
reconstituted as a private limited company with the present name in
2008. The company trades in stainless steel products. Its
registered office is in New Delhi.
NANGALI RICE: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sri Nangali
Rice Mills Private Limited (SNRL) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 36 CRISIL D (Issuer Not
Cooperating)
Cash Credit 18 CRISIL D (Issuer Not
Cooperating)
Term Loan 4 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SNRL for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SNRL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SNRL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SNRL continues to be 'CRISIL D Issuer Not Cooperating'.
SNRL was established in 2004 by Mr. Anil Aggarwal and his brothers,
Mr. Vijay Aggarwal and Mr. Satish Aggarwal, in Gurdaspur, Punjab.
The company mills and markets rice, mainly basmati rice, under its
Sri Nangali, Raj Mahal, White, and Swami brands. It is managed by
the three Aggarwal brothers, and their nephew, Mr. Manoj Aggarwal.
NATURAL FOODS: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Natural Foods
and Facials (NFF) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 13 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with NFF for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of NFF, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on NFF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
NFF continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 2009, and still in project stage, Chittoor (Andhra
Pradesh)-based NFF is setting up an agro commodity pulp
manufacturing unit, focusing on mango and tomato pulp. The firm is
a partnership between Mr Kishore Kumar Reddy, Chandrasekhar Reddy,
and their family and friends.
PNS METALS: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of PNS Metals
Limited (PML) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 9 CRISIL D (Issuer Not
Cooperating)
Proposed Cash 9 CRISIL D (Issuer Not
Credit Limit Cooperating)
CRISIL Ratings has been consistently following up with PML for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of PML, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on PML
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PML continues to be 'CRISIL D Issuer Not Cooperating'.
PML, incorporated in 2001, is promoted by Jamnagar (Gujarat)-based
Mr Ajay Sayani and his family members. The company manufactures,
exports and trades in brass fasteners and fittings.
RANGOLI INDUSTRIES: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Rangoli
Industries - Banaskantha (RI) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.25 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 2.14 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.11 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with RI for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RI, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RI is
consistent with 'Assessing Information Adequacy Risk'. Based on the
last available information, the ratings on bank facilities of RI
continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 2013, RI is a partnership firm promoted by members of the
Thakkar family. The firm undertakes cotton ginning and pressing
operations at its facility in Bhabhar, Gujarat.
RAVELS APPARELS: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ravels
Apparels Private Limited (RAPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 3.5 CRISIL D (Issuer Not
Cooperating)
Export Packing 3.5 CRISIL D (Issuer Not
Credit Cooperating)
CRISIL Ratings has been consistently following up with RAPL for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of RAPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on RAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RAPL continues to be 'CRISIL D Issuer Not Cooperating'.
Set up in 1983 as a partnership firm, Ravels International, it was
reconstituted as a private limited company with the current name in
July 1993. RAPL is promoted by Mr Vinod Kapahi and family.
S. R. S. MEDITECH: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of S. R. S.
Meditech Limited (SML) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 12 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 4.5 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 2.31 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 1.19 CRISIL D (Issuer Not
Cooperating)
Proposed Letter 0.57 CRISIL D (Issuer Not
of Credit Cooperating)
CRISIL Ratings has been consistently following up with SML for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SML, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SML
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SML continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 2010 in Noida and promoted by Mr Syed Askari, SML
commenced commercial operations in 2011. The company manufactures
medical disposable products, such as syringes, IV sets, and other
tubing items under own brands, Sterivan and I Safe.
SHIVSHAKTI BARRELS: CRISIL Keeps D Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shivshakti
Barrels Private Limited (SBPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.7 CRISIL D (Issuer Not
Cooperating)
Cash Credit 3.5 CRISIL D (Issuer Not
Cooperating)
Proposed Bank 0.65 CRISIL D (Issuer Not
Guarantee Cooperating)
Proposed Long Term 0.15 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Working Capital 1 CRISIL D (Issuer Not
Demand Loan Cooperating)
CRISIL Ratings has been consistently following up with SBPL for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SBPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SBPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SBPL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 2000, Shivshakti Barrels Private Limited (SBPL)
manufactures cold rolled steel barrels. Located in Halol, Vadodara
the company's manufacturing facility has a capacity of producing
25000 barrels per months. The company is promoted and managed by
Parihar family.
SHRIMATI POORNA: CRISIL Keeps D Debt Rating in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Shrimati
Poorna Devi Memorial Trust (SPDMT) continues to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 9 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SPDMT for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SPDMT, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SPDMT
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SPDMT continues to be 'CRISIL D Issuer Not Cooperating'.
SPDMT was set up in May 2015 by Mrs Deepti Rawat, Mr Toshit Rawat,
and Mrs Lakshmi Rana to establish a nursing and paramedical college
at Shankarpur village, District Dehradun.
SHYAMALI COLD: CRISIL Keeps D Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shyamali Cold
Storage Private Limited (SCSPL) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.45 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 2.80 CRISIL D (Issuer Not
Cooperating)
Working Capital 0.75 CRISIL D (Issuer Not
Term Loan Cooperating)
CRISIL Ratings has been consistently following up with SCSPL for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SCSPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SCSPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SCSPL continues to be 'CRISIL D Issuer Not Cooperating'.
SCSPL, incorporated in 2005, is engaged in the business of
providing cold storage services to the potato farmers and traders.
The company is owned by West Bengal based Rudra family. GCSPL's
cold storage, having storage capacity of about 2 lakh quintal. The
facility is located in Burdwan district of West Bengal.
SIDDHI VINAYAK: CRISIL Keeps D Debt Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Siddhi
Vinayak Alloys (SVA) continue to be 'CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3.4 CRISIL D (Issuer Not
Cooperating)
Term Loan 4.6 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SVA for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SVA, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SVA
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SVA continues to be 'CRISIL D Issuer Not Cooperating'.
SVA was set up as a partnership firm of Mr Jigar Patel and his
family, in September 2014. The Mehsana (Gujarat)-based firm has
been formed to manufacture mild steel castings for engineering
companies.
SIR. M. VISVESVARAYA: CRISIL Keeps D Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Sir. M.
Visvesvaraya Education Trust (SMVET) continue to be 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 14.5 CRISIL D (Issuer Not
Cooperating)
Overdraft Facility 5 CRISIL D (Issuer Not
Cooperating)
Overdraft Facility 3.5 CRISIL D (Issuer Not
Cooperating)
Overdraft Facility 2.5 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 1.5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
CRISIL Ratings has been consistently following up with SMVET for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SMVET, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SMVET
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SMVET continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
SMVET was established in 1983 in Karnataka. Mr P Sadasivan and the
late Mrs M Baby were the founder-trustees. The trust runs a medical
college, Sri Rajiv Gandhi College of Dental Sciences and Hospital,
an engineering college, Rajiv Gandhi Institute of Technology, and a
120-bed hospital.
SPICEJET LTD: Wants Insolvency Petitions Dismissed
--------------------------------------------------
ch-aviation reports that SpiceJet continues its push to have
insolvency proceedings brought against it dismissed, most recently
telling India's bankruptcy court, the National Company Law Tribunal
(NCLT), that cases filed by Wilmington Trust SP Services (Dublin)
and Celestial Aviation Services Ltd were not maintainable.
In a September 15 appearance before the NCLT, Sanjay Gupta,
appearing for SpiceJet, argued that Wilmington was the trustee of
the aircraft at the centre of the dispute, not the owner,
ch-aviation relates. He said the owner was Aircastle, noting that
the relevant lease invoices were issued to Aircastle (Ireland) Ltd.
This is not a fresh argument from SpiceJet's counsel. Previously,
ch-aviation reported that during an August 18 hearing, counsel made
the same argument, which Ajay Kumar, appearing for Wilmington,
rebutted by saying India's Directorate General of Civil Aviation
(DGCA) had issued a certificate of aircraft registration that named
Wilmington as the lessor.
Last week, Gupta also told the tribunal that five creditors had
teamed up to file the single Celestial insolvency petition, and
that it should be dismissed on that basis, ch-aviation notes.
In a separate hearing, counsel for SpiceJet has also asked the NCLT
to dismiss insolvency proceedings brought against it by Aircastle,
ch-aviation reports. That lessor has two insolvency petitions filed
against SpiceJet. Another lessor, Willis Lease Finance, is also
seeking the recovery of engine lease debts via a winding-up order.
Outside of India, six lessors have active cases running against
SpiceJet in the UK's commercial courts.
In 2021, Wilmington was one of three claimants that won redress in
a UK High Court lawsuit against SpiceJet, ch-aviation recalls. In
that matter, Wilmington was not acting not in its own name but as
trustee for BOC Aviation (Ireland) Ltd in matter concerning the
lease of a B737-800 then registered as VT-SZJ (msn 41397).
About Spicejet
SpiceJet Limited -- http://www.spicejet.com/-- is an India-based
low-budget air carrier. The Company operates daily flights between
major cities in India. The carrier is India's second-biggest budget
airline, after IndiGo.
As recently reported in the Troubled Company Reporter-Asia Pacific,
aircraft lessor Wilmington Trust SP Services (Dublin) Ltd has filed
a petition for initiating the corporate insolvency resolution
process against SpiceJet.
This is the third case filed against the airline, according to The
Economic Times. Two other cases under Section 9 of the Insolvency
and Bankruptcy Code, 2016, have been filed by aircraft lessor
Aircastle (Ireland) Ltd and engine lessor Willis Lease Finance
Corporation.
Aircastle (Ireland) filed a CIRP petition against Spicejet on April
28, 2023, while Willis Lease Finance Corporation filed its petition
on April 12, 2023.
SYNDICATE JEWELLERS: CRISIL Keeps D Rating in Not Cooperating
-------------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of Syndicate
Jewellers Private Limited (SJPL; part of the Syndicate group)
continues to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 62 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with SJPL for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of SJPL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on SJPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SJPL continues to be 'CRISIL D Issuer Not Cooperating'.
For arriving at the rating, CRISIL Ratings has combined the
business and financial risk profiles of SJPL and Syndicate
Jewellers (SJ), as the two entities, together referred to as the
Syndicate group, are under a common management and have strong
operational and financial linkages.
Incorporated in 2001 and promoted by Mr Rajendra Tosawad and Mr
Amar Singh Tosawad, SJPL retails gold and diamond ornaments,
premium watches, platinum jewellery, and other lifestyle items. SJ,
a proprietorship firm of Mr Rajendra Tosawad, has been operating a
jewellery showroom in Bhubaneswar since 1988.
VISHNURAAM TEXTILES: CRISIL Keeps D Ratings in Not Cooperating
--------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Vishnuraam
Textiles Limited (VTL) continue to be 'CRISIL D/CRISIL D Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.11 CRISIL D (Issuer Not
Cooperating)
Cash Credit 3.75 CRISIL D (Issuer Not
Cooperating)
Cash Credit 0.55 CRISIL D (Issuer Not
Cooperating)
Letter of Credit 2.75 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 4.5 CRISIL D (Issuer Not
Cooperating)
Long Term Loan 2.32 CRISIL D (Issuer Not
Cooperating)
CRISIL Ratings has been consistently following up with VTL for
obtaining information through letter and email dated August 25,
2023 among others, apart from telephonic communication. However,
the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution with reference to the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING' as the rating is arrived
at without any management interaction and is based on best
available or limited or dated information on the company. Such non
co-operation by a rated entity may be a result of deterioration in
its credit risk profile. These ratings with 'ISSUER NOT
COOPERATING' suffix lack a forward looking component.'
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
Ratings failed to receive any information on either the financial
performance or strategic intent of VTL, which restricts CRISIL
Ratings' ability to take a forward looking view on the entity's
credit quality. CRISIL Ratings believes that rating action on VTL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
VTL continues to be 'CRISIL D/CRISIL D Issuer Not Cooperating'.
Incorporated in 1990, VTL is into manufacturing of cotton yarn. The
company has its manufacturing facilities in Tirupur and Udumalpet.
=========
J A P A N
=========
SOFTBANK GROUP: S&P Alters Outlook to Positive, Affirms 'BB' ICR
----------------------------------------------------------------
S&P Global Ratings revised to positive from stable the outlook on
its 'BB' long-term issuer credit rating on SoftBank Group Corp. S&P
affirmed its 'BB' long-term issuer credit rating on the company, as
well as its 'BB' long-term senior unsecured debt rating, and 'B'
subordinated debt rating.
The recent improvement in the quality of SoftBank Group's
investment assets is likely to endure in the next year or so. This
led S&P's to revise up our outlook on the company to positive from
stable. Listing Arm Holdings PLC greatly increased the liquidity of
the company's investment portfolio. Arm, SoftBank Group Corp.'s
largest investment asset, listed on Nasdaq with a market
capitalization of about $52 billion (JPY7.7 trillion) on Sept. 14,
2023.
S&P said, "SoftBank Group's loan-to-value (LTV) ratio will likely
remain at the current level or slightly worsen. This led us to
affirm our ratings on the company and its debt. We believe the
company's investment gains and losses will likely remain
potentially volatile. The company is also likely to continue making
growth investments, despite an uncertain external environment, in
our view.
"The assets in the investment portfolio are likely to retain
substantially higher liquidity in the next year or so. After the
listing of Arm, we calculate the proportion of listed shares in its
investment portfolio (including listed assets of the SoftBank
Vision Funds (SVFs), unless otherwise noted) recovered to about
70%, from about 38% when we lowered our long-term issuer credit
rating on the company to 'BB', using March 31, 2023, figures. We
assume the ratio will likely remain at similar levels for the next
year or so.
"An ongoing global recovery in prices of technology stocks will
likely somewhat mitigate asset risk in SoftBank Group's investment
portfolio. After Arm's listing, we estimate the proportion of the
portfolio of the company's fund business, including SVF1 and SVF2,
that is invested in unlisted shares to have improved to 30%. It was
slightly lower than 40% at the end of June 2023. Having said that,
we consider the fund business to have high asset risk. We maintain
our view that unlisted companies are less competitive and more
susceptible to the external environment, including financial market
developments, than listed companies. Unlisted companies made up 67%
of SVF1's investment assets and 83% of SVF2's, as of June 30,
2023.
"The liquidity of the company's assets will remain somewhat
constrained. This is because the company is highly likely to
continue to raise funds by using Arm's shares, in addition to
issuing corporate bonds and borrowing from banks. The ratio of
shares that the company offers as collateral, including those it
used for margin loans, to investment assets has increased
considerably relative to previous years. We estimate the proportion
to be slightly lower than 40%, following Arm's listing. When this
ratio rises over 30%, we can consider it a constraint on asset
liquidity because it can prevent the quick sale of portfolio
assets. However, SoftBank Group's cash and deposits on hand,
currently totaling slightly over JPY5 trillion, offset such risk,
in our view.
"We consider the stand-alone credit profile of Arm to greatly
exceeds that of its parent company. Arm is supported by strong
business competitiveness in the semiconductor industry and a robust
financial base with no debt. However, we consider SoftBank Group's
credit quality is likely to constrain Arm's. This is because the
company owns about 90% of the shares in Arm following the listing
and there is an appreciable likelihood of the company providing
financial support to its parent group if needed. Having said that,
we recognize that SoftBank Group has never received financial
support from its listed subsidiaries.
"SoftBank Group's financial management will remain appropriate for
our current rating on the company. It has set an upper limit for
its LTV ratio and improved it by managing finances with a focus on
financial health. This is despite extremely difficult business
circumstances. In August 2023, it decided to contribute about $16
billion in total over the next two years from August 2023 to
acquire Arm's shares from SVF1. As a result, we estimate its LTV
ratio (as we define it) worsened to about 24% at the time of the
listing of Arm's shares, from about 21% at the end of June 2023.
However, we believe the company's management of its LTV ratio is
appropriate for our rating. We estimate its ratio will remain
25%-30% for the next year or so, considering the volatility of the
value of investment assets on its books.
"The company will likely receive a portion of the payments it makes
to SVF1 as a dividend. It is a limited partner investor in SVF1.
When we calculate SoftBank Group's LTV ratio, we add its remaining
payables to SVF1 for the purchase of Arm's shares to its debt. We
deduct the value of dividends to be received from the amount owed
and add the remaining amount to debt.
"Ample cash and deposits on hand support the company's recurring
solvency, in our view. The company earned these cash and deposits
through the monetization of shares in China-based Alibaba Group
Holding Ltd. and the listing of Arm. We estimate the company
currently owns cash and deposits on hand of slightly more than ¥5
trillion, even after deducting the amount required over the next
two years to purchase the shares of Arm from SVF1. Meanwhile, the
commitment to SVF2 in the fund business has been gradually
increasing. It totaled about ¥1 trillion at the end of June 2023.
If the amount increases, the company will be unable to use this
cash to repay debt. This could lead to a decline in financial
soundness, in our view.
"We raised our assessment of SoftBank Group's business risk profile
by one notch to fair from weak. This reflects a recovery in the
proportion of its listed shares in its investment portfolio.
Conversely, we revised down the company's comparable rating
analysis to neutral from positive, based on our view that its key
financial indicators will remain slightly more deteriorated than
they were in March 2023. We hold this view because Arm, its largest
investment asset, listed and the company will likely resume new
growth investments, in addition to purchasing Arm's shares from
SVF1.
"The positive outlook reflects our view that SoftBank Group will
continue to maintain a high level of cash and deposits as well as
financial management that focuses on its LTV ratio. This is despite
harsh financial market conditions. In our base-case scenario, we
expect its LTV ratio to remain 25%-30% if the company maintains the
liquidity of assets in its investment portfolio at high levels and
makes investments in risky fund business with a degree of
discipline."
S&P might consider upgrading the company if both of the scenarios
below look likely to occur over the next six to 12 months.
-- The company manages its LTV ratio at 25%-30% through a cycle of
the stock market by maintaining disciplined financial management.
-- Its proportion of listed assets (including listed assets in
SVF1 and SVF2) in the value of its investment portfolio remains
over 60% in the medium to long term.
S&P might consider revising the outlook downward to stable if it
sees a heightened likelihood of any of the scenarios below.
SoftBank Group's LTV ratio stays above 30%. This could happen if a
rapid and significant deterioration in market conditions causes a
material decline in its asset value, or if the company spends a
large amount of cash on investments and share buybacks.
The downward pressure on the creditworthiness of its overall
investment portfolio further increases due to a significant credit
quality deterioration at its large investees and their replacement
with assets of lower credit quality.
Its liquidity deteriorates significantly as collection from funds
is delayed, while investments in funds expand sharply.
TOSHIBA CORP: Takeover by Japanese Consortium Completed
-------------------------------------------------------
Japan Today reports that a JPY2 trillion (US$14 billion) tender
offer for Toshiba Corp by a Japanese consortium has been completed,
clearing the way for it to be delisted, the company said Sept. 21.
In the tender offer, announced last month and ended Sept. 20, the
number of shares purchased exceeded the minimum needed, at 78.65%,
it said.
According to the report, the switch to Toshiba's new parent company
and largest shareholder, called TBJH Inc. will take place on Sept
27. The move still needs shareholders' approval, and a meeting has
been set for November, according to Toshiba.
Toshiba will then delist from the Tokyo Stock Exchange within about
a month, Japan Today relates. That will end its more than
seven-decade history as a listed company. The purchase price was at
JPY4,620 (US$31).
"Toshiba Group will now take a major step toward a new future with
a new shareholder," the report quotes chief executive, Taro
Shimada, as saying.
Even after privatization, the company will "do the right thing" to
try boost its value, he added.
A sprawling accounting scandal, which surfaced in 2015 and involved
books being doctored for years added to woes related to Toshiba's
nuclear energy business, according to Japan Today. It faces the
daunting and costly task of decommissioning the nuclear power plant
in Fukushima, northern Japan, where a tsunami set off three
meltdowns in 2011.
A leading brand behind rice cookers, TVs, laptops and other
products once symbolic of Japan's technological prowess, Toshiba
had billed the takeover led by the consortium of Japanese banks and
major companies, known as Japan Industrial Partners, as its last
chance for a turnaround, says Japan Today. Toshiba's board accepted
the deal in March.
Toshiba has spun off parts of its operations, including its prized
flash-memory business, now known as Kioxia. Toshiba is a major
stakeholder in Kioxia.
Overseas activist investors, who own a significant number of
Toshiba's shares, had initially expressed some dissatisfaction
about the bid, the report says.
Analysts said its unclear whether Toshiba can return to
profitability, even with the delisting, according to Japan Today.
Toshiba's shares were up 0.2% at JPY4,604 (US$31) on Sept. 21 in
Tokyo.
According Japan Today, the company racked up JPY25 billion (US$169
million) of red ink for the April-June quarter on JPY704 billion
(US$5 billion) in sales, down nearly 5% from the year before.
The decommissioning effort at the Fukushima Dai-ichi nuclear plant
is expected to take decades, the report notes.
Toshiba's U.S. nuclear arm Westinghouse filed for bankruptcy in
2017 after years of deep losses as safety costs soared, adds Japan
Today.
About Toshiba Corp
Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/--
manufactures and markets electrical and electronic products. The
Company's products include digital products such as PCs and
televisions, NAND flash memories, and system LSIs (large-scale
integrated), as well as social infrastructures such as power
generators, medical equipment, and home appliances.
As reported in the Troubled Company Reporter-Asia Pacific in early
July, S&P Global Ratings has kept its 'BB+' long-term issuer credit
rating on Toshiba Corp. on CreditWatch with negative implications.
S&P also affirmed at 'B' its short-term issuer credit rating and
commercial paper program rating.
=====================
N E W Z E A L A N D
=====================
CBL CORPORATION: Court Acquits Former CEO from SFO Charges
----------------------------------------------------------
Stuff.co.nz reports that the former chief executive of collapsed
insurer CBL Corporation has been found not guilty at the High Court
in Auckland of charges brought by the Serious Fraud Office.
Peter Alan Harris from Takapuna had denied five charges of theft by
a person in a special relationship, two charges of obtaining by
deception and one charge of false accounting.
CBL, which was once valued at NZD750 million, was put into
liquidation by the High Court in Auckland in 2020, leaving many
KiwiSaver funds having written down to zero the value of the shares
they owned in the company.
According to Stuff, Mr. Harris, who entered the court leaning on a
walking stick as a result of having suffered a stroke, was cleared
of all charges by Justice Michael Robertson, who said he would
publish his judgment after the hearing.
Carden James Mulholland, CBL's chief financial officer, was found
not guilty of three charges of theft by a person in a special
relationship, obtaining by deception and false accounting, Stuff
says.
CBL Insurance was not a household name, but did do some local
insurance business, providing guarantees to buyers of new homes
that they had been built without any defects.
Most of its business was overseas, including insuring French
home-builders against the risk there were defects in their homes.
Investors valued the company at just under NZD750 million, but in
2018 CBL was put into liquidation, prompting the Reserve Bank Te
Pūtea Matua to order a review of whether it had done a good job
regulating the company.
That review found the Reserve Bank could have done more to protect
investors, and should have prevented CBL from listing on the NZX in
2015, Stuff notes.
According to Stuff, the charges related to a series of transactions
taken by Messrs. Harris and Mulholland in the run-up to the failure
of CBL during a period in which the Reserve Bank had directed that
before entering any transaction or series of related transactions
involving payment or transfer of assets in excess of NZD5 million,
CBL and its parent company CBL Corporation must consult with it.
Mr. Harris had long pleaded his innocence, and in 2020 had said he
was "very disappointed" the SFO had taken action against him.
Speaking outside the High Court after being cleared of all charges,
Mr. Harris said he would issue a statement shortly.
According to Stuff, the Serious Fraud Office issued a statement
that said it was "considering" the verdicts, but did not say
whether it would appeal.
It said the SFO would "continue to prioritise investigating
allegations of corporate fraud that threaten New Zealand's
reputation as a safe place to do business," Stuff relays.
The CBL failure was one of New Zealand's largest corporate
failures, it said.
"This was an important case for the SFO to take as the alleged
conduct threatened New Zealand's reputation as a safe place to do
business and the trust placed in our institutions and business
community," says SFO director Karen Chang. "As New Zealand
navigates a period of economic uncertainty, it is particularly
critical that we investigate allegations of serious and complex
fraud that undermine confidence in our businesses, regulatory
systems and financial controls."
About CBL Corp.
Founded in 1973, CBL Corporation Limited together with its
subsidiaries, provided insurance and reinsurance products and
services primarily in New Zealand. It offered financial risk
products, builders' risks, sureties, guarantees, and contractor
bonds primarily in Europe and Scandinavia; deposit guarantees in
Australia; and bonding and fiduciary services to the Mexican
commercial sector. The company also provided a range of specialty
products, such as credit enhancement, surety bonds, specialized
property insurance, aviation, and rural risk in Australia, as
wellas distributes construction-sector insurance products in France
through a network of brokers.
CBL Corp. went into voluntary administration in late February 2018,
in a move to prevent other regulators from taking action after the
Reserve Bank moved to have its subsidiary CBL Insurance placed in
interim liquidation.
On Feb. 23, 2018, KordaMentha New Zealand partners Brendon Gibson
and Neale Jackson were appointed Voluntary Administrators by the
Board of CBL Corporation Ltd and certain of its subsidiaries.
The administration relates to New Zealand-domiciled companies.
Messrs. Gibson and Jackson are administrators to these CBL
entities: CBL Corporation Limited; LBC Holdings New Zealand Ltd;
LBC Holdings Americas Ltd; LBC Holdings UK Ltd; LBC Holdings Europe
Ltd; LBC Holdings Australasia Ltd; LBC Treasury Company Ltd;
Deposit Power Ltd; South British Funding Ltd; and CBL Corporate
Services Ltd.
In November 2018, the High Court in Auckland placed CBL Insurance
into liquidation with Kare Johnstone and Andrew Grenfell from
McGrathNicol appointed as liquidators.
EXPAND LIMITED: Court to Hear Wind-Up Petition on Sept. 29
----------------------------------------------------------
A petition to wind up the operations of Expand Limited will be
heard before the High Court at Auckland on Sept. 29, 2023, at 10:45
a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Aug. 15, 2023.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
NEW ZEALAND: Emerged from Shallow Recession as Next Slowdown Looms
------------------------------------------------------------------
Bloomberg News reports that New Zealand's economy probably emerged
from a shallow recession in the second quarter as a surge in
immigration fueled growth.
Gross domestic product increased 0.4% in the three months through
June, according to the median estimate in a Bloomberg survey of
economists. From a year earlier, the economy expanded 1.2%, the
survey shows. Statistics New Zealand publishes the report at 10:45
a.m. Thursday [Sept. 21] in Wellington.
After contractions in the fourth quarter of 2022 and the first
three months of 2023, evidence of growth will be welcomed by Prime
Minister Chris Hipkins, who is behind in opinion polls less than
four weeks from an election, according to Bloomberg. Still, some
analysts anticipate the economy will tip into a double-dip
recession before the end of the year in the face of high interest
rates and falling prices for milk and other exports.
"Policy settings have been aggressively tightened and the global
backdrop is weakening, especially as China's post-Covid recovery is
losing steam," Bloomberg quotes Jarrod Kerr, chief economist at
Kiwibank in Auckland, as saying. "Against such a backdrop, our base
case still involves New Zealand slipping into a recession later
this year."
Bloomberg relates that the statistics agency is reviewing its
seasonal adjustment of the GDP series and could revise the
first-quarter decline of 0.1%. The review also makes the quarterly
growth figures harder to predict. Forecasts in the Bloomberg survey
ranged from 0.8% growth to a 0.4% contraction in the second
quarter.
In August, the Reserve Bank forecast the economy would return to
growth in the three months through June before shrinking again in
the third and fourth quarters, Bloomberg notes. By contrast, the
Treasury Department last week projected it will keep expanding into
next year.
In the second quarter, economic growth was aided by the recovery
from Cyclone Gabrielle and other severe weather events that hit the
nation's North Island in the first three months of the year. Late
season pasture growth also boosted farm output, and there were
signs of a lift in the services industry including real estate
activity, economists said.
Still, residential construction declined in the quarter and
manufacturing was sluggish, Bloomberg relays. Retail sales volumes
fell more than expected as high borrowing costs curbed household
spending.
Immigration is providing a boost to the economy, the report says.
The nation added a record net 92,600 people in the year through
June, and that is stimulating demand for rental properties and
homes. The Treasury said the extra demand is a reason it doesn't
see another recession ahead.
New Zealand's population grew an estimated 0.6% in the second
quarter, outstripping economists' median GDP expectation and
suggesting per capita growth may have slowed for a third straight
quarter, Bloomberg discloses.
"A weak underbelly is expected to be particularly evident in the
per capita data, which is expected to post another quarterly
contraction," Bloomberg quotes Miles Workman, senior economist at
ANZ Bank New Zealand in Wellington, as saying. "In annual growth
terms, the widening gap between headline and per capita growth
shows New Zealand is back to its pre-pandemic trick of population
growth bolstering growth in headline GDP."
PENINSULA PLUMBING: Creditors' Proofs of Debt Due on Oct. 18
------------------------------------------------------------
Creditors of Peninsula Plumbing Limited are required to file their
proofs of debt by Oct. 18, 2023, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Sept. 13, 2023.
The company's liquidator is:
Brenton Hunt
PO Box 13400
City East
Christchurch 8141
TAYLOR REINFORCING: Court to Hear Wind-Up Petition on Sept. 29
--------------------------------------------------------------
A petition to wind up the operations of Taylor Reinforcing Limited
will be heard before the High Court at Auckland on Sept. 29, 2023,
at 10:45 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Aug. 15, 2023.
The Petitioner's solicitor is:
Cloete Van Der Merwe
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
TELFER SKATES: Creditors' Proofs of Debt Due on Oct. 18
-------------------------------------------------------
Creditors of Telfer Skates Roofing Limited are required to file
their proofs of debt by Oct. 18, 2023, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Sept. 12, 2023.
The company's liquidator is:
Brenton Hunt
PO Box 13400
City East
Christchurch 8141
YOYOSO NZ: Court to Hear Wind-Up Petition on Oct. 13
----------------------------------------------------
A petition to wind up the operations of Yoyoso NZ Limited will be
heard before the High Court at Auckland on Oct. 13, 2023, at 10:00
a.m.
H & D Investments Limited filed the petition against the company on
Aug. 24, 2023.
The Petitioner's solicitor is:
Nancy Yu
Compass Law
c/o Level 22, 88 Shortland Street
Auckland CBD
Auckland 1010
=================
S I N G A P O R E
=================
BCI4 PTE: Members' Final Meeting Set for Oct. 19
------------------------------------------------
Members of BCI4 Pte Ltd will hold their final general meeting on
Oct. 19, 2023, at 10:00 a.m., at
At the meeting, Seah Chee Wei, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
BELONG PTE: Members' Final Meeting Set for Oct. 23
--------------------------------------------------
Members of Belong Pte Ltd will hold their final meeting on Oct. 23,
2023, at 10:00 a.m., at 3791 Jalan Bukit Merah #06-01, E-Centre @
Redhill, in Singapore.
At the meeting, Elango Subramanian, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
BRANDED LIFESTYLE: Members' Final Meeting Set for Oct. 19
---------------------------------------------------------
Members of Branded Lifestyle Enterprises Pte Ltd will hold their
final meeting on Oct. 19, 2023, at 10:00 a.m., at 80 Robinson Road,
#02-00, in Singapore.
At the meeting, Tay Tuan Leng, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
MEMSTAR TECHNOLOGY: Members' Final Meeting Set for Oct. 16
----------------------------------------------------------
Members of Memstar Technology Ltd will hold their final meeting on
Oct. 16, 2023, at 11:00 a.m., via video conference.
At the meeting, Juay Sze Sin and Shirley Lim Guat Hua, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.
QINGJIAN REALTY: Members' Final Meeting Set for Oct. 20
-------------------------------------------------------
Members of Qingjian Realty (Woodlands) Pte. Ltd will hold their
final meeting on Oct. 20, 2023, at 3:00 p.m., at at 380 Jalan
Besar, #06-06 ARC 380, in Singapore.
At the meeting, Koh Geok Hoon and Koh Ee Koon, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
=============
V I E T N A M
=============
HANOI POWER: Fitch Affirms Foreign Curr IDR at BB, Outlook Positive
-------------------------------------------------------------------
Fitch Ratings has affirmed Vietnam-based Hanoi Power Corporation's
(EVNHANOI) Long-Term Foreign-Currency Issuer Default Rating of
'BB'. The Outlook is Positive.
The rating reflects EVNHANOI's 'bb' Standalone Credit Profile
(SCP), which Fitch assesses at the same level as that of the
parent, Vietnam Electricity (EVN, BB/Positive), because EVN exerts
significant control over EVNHANOI's financial profile, including
determining its profitability. This is despite EVNHANOI's financial
profile being much stronger relative to its SCP. The SCP also
reflects EVNHANOI's stable operating profile as a pure distribution
utility with a monopoly position in its area of operation.
KEY RATING DRIVERS
Strong Market Position: EVNHANOI benefits from a monopoly position
in electricity distribution in Vietnam's capital city of Hanoi.
Fitch expects Vietnam's strong economic growth to support revenue
over the medium term. EVNHANOI's diversified counterparties and low
receivable days also buoy its credit profile. However, the
company's business profile is limited by the brief history of the
regulatory framework, the short six-month tariff period under the
framework and political risk, in a similar way to its parent.
Power Shortages Inhibit Demand: Fitch expects EVNHANOI's
electricity sales growth to increase by around 3.0% in 2023,
against 7.6% in 2022, following power shortages in 1H23 and a high
base effect in 2H22, driven by a post-pandemic recovery.
Furthermore, Fitch forecasts Vietnam's GDP growth to moderate to
5.7% in 2023, after a strong post-pandemic rebound in the previous
year of 8.0%. Fitch forecasts electricity demand to rebound by an
average of 6% from 2024 to 2026.
Diversified Counterparties, Low Receivables Risk: EVNHANOI benefits
from a stable and diversified customer base. More stable
residential customers account for 56% of EVNHANOI's revenue and its
top-20 customers account for around 5.6% of total revenue. Lower
counterparty risk is also reflected in EVNHANOI's high collection
rates of well above 99% and low receivable days of around seven
days, which supports its operating cash flow.
Insufficient Tariff Increase: Fitch believes the 3% tariff increase
in May 2023 was insufficient to cover the higher operating costs of
the domestic power sector. This will affect the financial profile
of EVN and its distribution subsidiaries, including EVNHANOI. Fitch
expects average retail tariffs to rise by 3% in 2024 and then to
remain flat till 2026.
The tariff framework, introduced in August 2017, allows increases
in electricity tariffs every six months, subject to certain
conditions. Tariff adjustments of 3%-5% may be implemented at the
distribution utilities' discretion, but anything above this
requires government approval. The state kept the 2022 average
retail tariff steady to support Vietnam's economic recovery amid
inflationary pressure.
Lower Return on Equity: EVN sets the cost of purchasing electricity
- the bulk-supply tariff - for its distribution companies,
including EVNHANOI, and aims to provide the companies with a modest
level of profit. EVNHANOI expects a pre-tax return on equity of
below 1% over the medium term, based on Vietnamese GAAP, which is
below the historical level of around 1%.
Temporary Dip in Capex, Low Leverage: Fitch expects capex to dip to
VND4 trillion in 2023, against VND5 trillion in 2022, then rise to
around VND5 trillion-6 trillion over the next three years. Capex is
mainly to enhance the distribution grid and to build substations
and transmission lines to improve power supply capacity. Fitch
estimates EBITDA net leverage will peak at 2.6x in 2023 and remain
at around 2.5x by 2025 (2022: 2.4x).
Parent's 'High' Support Incentive: Fitch assesses EVN's overall
incentive to support EVNHANOI as 'High', based on 'Low' a legal
incentive and 'High' operation and strategic incentives. EVNHANOI
is one of five distribution companies under EVN group and is the
only distribution company in Hanoi. EVN fully owns EVNHANOI and has
extensive influence over its business plans, profitability and
financial profile. EVN also approves EVNHANOI's budget and capex
plan and appoints its key executives.
DERIVATION SUMMARY
EVNHANOI's rating reflects its SCP, which benefits from a strong
business and financial profile. The company has a monopoly
distribution business in Hanoi, diversified counterparties and low
receivables. That said, EVN exerts significant influence on the
subsidiary's business and financial profile, including
profitability, resulting in EVNHANOI's SCP being at the same level
as that of the parent.
EVN's four other wholly owned distribution businesses - Northern
Power Corporation (BB/Positive), Ho Chi Minh City Power Corporation
(BB/Positive), Central Power Corporation (BB/Positive) and Southern
Power Corporation (BB/Positive) - are highly strategic and their
ratings also reflect their SCPs and EVN's extensive influence on
their business and financial profiles, similar to EVNHANOI.
Adani Electricity Mumbai Limited's (senior secured rating: BBB-)
stronger business profile benefits from stable cost-plus regulatory
framework, which provides long-term cash flow certainty and
stability. This justifies a two-notch difference in its credit
assessment compared with EVNHANOI, despite EVNHANOI's stronger
financial profile. EVNHANOI's business profile is constrained by
the limited record of Vietnam's cost pass-through regulatory
framework.
The rating on National Power Transmission Corporation (EVNNPT,
BB/Positive, SCP: bb+) - a power transmission company within EVN
group - is at the same level as that of the parent. EVNNPT has
lower operating risk as a pure transmission company with better
geographical diversification compared with EVNHANOI. Furthermore,
EVNNPT's return on equity is determined by the regulator, albeit in
consultation with EVN. This compares with EVN's more significant
influence on EVNHANOI, including determining its profitability,
which is why the latter's SCP is a notch lower than that of
EVNNPT.
KEY ASSUMPTIONS
- Hanoi's electricity demand to rise by 3.0% in 2023, 6.5% in 2024
and around 6.0% yearly to 2026 (2022: 7.6%).
- Average retail tariff to increase by 2.0% and bulk-supply tariff
to fall by 0.5% in 2023. Tariff to increase by 3.0% in 2024 and
bulk-supply tariff to rise by 1.8%.
- Distribution losses of around 3.4% a year (2021: 3.6%, 2022:
3.4%).
- Average annual capex of around VND4 trillion in 2023 and VND5
trillion-6 trillion from 2024 to 2026 (2022: VND5 trillion)
- Average interest rate of around 7.0% over 2023-2026 (2022:
5.8%).
- No dividend pay-outs
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Positive rating action on EVN
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Negative rating action on EVN
For EVN's rating, the following sensitivities were outlined by
Fitch in a rating action commentary on 5 September 2023:
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Positive rating action on the sovereign, provided the likelihood
of state support does not deteriorate significantly.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Negative rating action on the sovereign;
- Deterioration in EVN's SCP, along with significant weakening in
the likelihood of state support. Fitch sees this as a remote
prospect in the medium term.
LIQUIDITY AND DEBT STRUCTURE
Sound Liquidity: EVNHANOI had readily available cash of around
VND5.0 trillion at end-2022, against current debt maturities of
VND2.3 trillion. Fitch expects the company to generate VND3.5
trillion-5.0 trillion in operational cash flow over the next four
years. This would be sufficient to manage annual debt maturities,
but will require external funds to manage annual capex targets.
EVNHANOI's liquidity benefits from strong access to domestic
markets and overseas development assistance due to its linkages
with EVN and hence the state.
ISSUER PROFILE
EVNHANOI is one of five electricity distribution companies in
Vietnam, with a monopoly position in Hanoi. EVNHANOI is responsible
for the development, operation and maintenance of facilities for
the distribution of electricity in Hanoi. It is fully owned by EVN,
the country's state-owned fully integrated power utility.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
EVNHANOI's rating is directly linked to the credit quality of its
parent, EVN. A change in Fitch's assessment of the credit quality
of EVN would automatically result in a change in the rating on
EVNHANOI.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Hanoi Power
Corporation LT IDR BB Affirmed BB
HO CHI MINH: Fitch Affirms Foreign Curr IDR at 'BB', Outlook Stable
-------------------------------------------------------------------
Fitch Ratings has affirmed Vietnam-based Ho Chi Minh City Power
Corporation's (EVNHCMC) Long-Term Foreign-Currency Issuer Default
Rating (IDR) at 'BB'. The Outlook is Positive.
EVNHCMC's IDR reflects its 'bb' Standalone Credit Profile (SCP),
which is at the same level as that of its 100% parent, state-owned
Vietnam Electricity (EVN, BB/Positive). The SCP reflects EVN's
significant control of EVNHCMC's financial profile, including
determining profitability, despite EVNHCMC's financial profile
being much stronger relative to its SCP. The SCP also reflects
EVNHCMC's stable operating profile as a pure distribution utility
with monopoly position in its area of operation.
The Positive Outlook on EVNHCMC is in line with the Outlook on
EVN's rating. EVNHCMC's rating will be equalised with EVN's should
its SCP weaken, based on its assessment of a 'Strong' Incentive of
support from EVN under its Parent and Subsidiary Linkage Rating
Criteria.
KEY RATING DRIVERS
Strong Market Position: EVNHCMC benefits from a monopoly position
for electricity distribution in Vietnam's Ho Chi Minh City. Fitch
expects Vietnam's strong economic growth to support electricity
demand and revenue over the medium term. EVNHCMC's diversified
counterparties and low receivable days also support its credit
profile. However, the regulatory framework's short record,
excluding the Covid-19 pandemic, the short six-month tariff period,
and political risks limit its business profile, similar to its
parent.
Power Shortage Affected Demand: Fitch expects electricity demand in
Ho Chi Minh City to increase by 2.8% in 2023 (2022: 7.6%) due to
power shortage in 1H23 and high base effect in 2022, driven by
post-pandemic recovery. Vietnam faced a power shortage in 1H23 as
poor hydrological conditions affected hydropower generation.
Furthermore, Fitch forecasts GDP growth of 5.7% in 2023, after a
strong post-pandemic rebound in the previous year (2022: 8%). Fitch
forecasts electricity demand to rebound by an average of 5% from
2025.
Diversified Counterparties, Low Receivables Risk: EVNHCMC's credit
profile benefits from its stable and diversified customer base.
More stable residential customers account for 47% of EVNHCMC's
revenue, while its top 20 customers account for around 12% of its
total revenue. Lower counterparty risk is also reflected in
EVNHCMC's high collection rates of 99%-100% and low receivable days
of around 10 days.
Insufficient Tariff Increase: Fitch believes the tariff increase of
3% in early May 2023 is insufficient to cover higher operating
costs of the power sector in Vietnam, affecting the financial
profile of EVN and all of its distribution subsidiaries including
EVNHCMC. Fitch expects average retail tariffs to rise by 3% in 2024
and remain flat till 2026. The state kept the tariffs unchanged to
support the economic recovery in 2022 amid inflationary pressures.
The tariff framework, which was introduced in August 2017, allows
increases in electricity tariffs every six months, subject to
certain conditions. Tariff adjustments of 3% to 5% may be
implemented at the distribution utilities' discretion, but anything
above that requires government approval.
Low ROE: EVN sets the major cost of electricity purchases - the
bulk-supply tariff - for distribution companies, including for
EVNHCMC, and aims to provide the companies with a modest level of
profit. Fitch estimates EVNHCMC's pretax return on equity (ROE)
will be below 1% in the medium term (based on Vietnamese GAAP),
lower than the historical levels. The historical ROE for EVNHCMC
has been 1%-1.5% but decreased to around 0.7% in 2022 on lower
profitability from higher costs amid a stable tariff.
Temporary Dip in Capex; Low Leverage: Fitch expects EVNHCMC's capex
to remain low in 2023 before increasing. EVNHCMC plans annual
outlays to remain around VND3 trillion in 2023 (2022: VND2.9
trillion) and increase to around VND5 trillion a year during
2024-2026. EVNHCMC's capex is mainly for enhancing the distribution
grid and building substations and transmission lines to improve
power supply capacity. Fitch estimates EVNHCMC's EBITDA net
leverage will remain below 1.5x by 2025 (2022: 1.1x).
EVN's 'High' Incentive to Support: Fitch assesses EVN's incentive
to support EVNHCMC as 'High', based on 'Low' legal incentives and
'High' operation and strategic incentives. EVNHCMC is one of the
five distribution companies under the EVN group, and is the only
distribution company in Ho Chi Minh City. EVN fully owns EVNHCMC
and has extensive influence over EVNHCMC's business plans,
profitability and financial profile. EVN also approves EVNHCMC's
budget and capex plan and appoints key executives.
DERIVATION SUMMARY
EVNHCMC's rating reflects its SCP and strong linkages with parent
EVN. EVN's distribution businesses are highly strategic, operating
through EVNHCMC and four other wholly owned subsidiaries. The
ratings of Northern Power Corporation (BB/Positive), Southern Power
Corporation (BB/Positive), Central Power Corporation (BB/Positive)
and Hanoi Power Corporation (BB/Positive) - EVN's four other
distribution subsidiaries - also reflect their SCP and the
extensive influence of EVN on their business and financial
profiles, in a similar way to EVNHCMC.
Adani Electricity Mumbai Limited's (AEML, senior secured debt:
BBB-) stronger business profile benefits from stable cost-plus
regulatory framework, which provides long-term cash flow certainty
and stability, justifying the two notches difference in credit
assessment against EVNHCMC. EVNHCMC's business profile is
constrained by the limited record of Vietnam's cost pass-through
regulatory framework.
National Power Transmission Corporation (EVNNPT, BB/Positive, SCP:
bb+) - the sole power transmission company within the EVN group -
is capped at the same level of its parent, EVN. EVNNPT has lower
operating risk as a pure transmission company with better
geographical diversification than EVNHCMC. Furthermore, EVNNPT's
ROE is determined by the regulator, albeit in consultation with
EVN. EVN also has more significant influence on EVNHCMC, including
determining profitability, which is why the latter's SCP is a notch
lower than that of EVNNPT.
KEY ASSUMPTIONS
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Ho Chi Minh City's electricity demand to increase by 2.8% in 2023
(2022: 11.3%). Demand to increase by around 3% in 2024 and around
5% from 2025 to 2026;
- Average retail tariffs to increase by 2% and bulk-supply tariffs
to decrease by 0.4% in 2023. Average retail tariffs and bulk-supply
tariff to increase by around 3% in 2024;
- Distribution losses of around 2.9% a year (2022: 2.9%);
- Capex of VND3 trillion-5 trillion a year from 2023 to 2026;
- Average interest rate of around 5% a year (2022: 5.1%);
- No dividend payouts.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Positive rating action on EVN.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Negative rating action on EVN.
For EVN's rating, the following sensitivities were outlined by
Fitch in a rating action commentary on 5 September 2023:
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- Positive rating action on the sovereign, provided the likelihood
of state support does not deteriorate significantly.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- Negative rating action on the sovereign;
- Deterioration in EVN's SCP, along with significant weakening in
the likelihood of state support. Fitch sees this as a remote
prospect in the medium term.
LIQUIDITY AND DEBT STRUCTURE
Sound Liquidity: EVNHCMC had VND4 trillion of cash and cash
equivalents at end-2022, exceeding current debt maturities of
VND1.5 trillion. Fitch expects the company to generate VND2
trillion-4 trillion of operational cash flow over the next four
years. This will be sufficient to manage annual debt maturities but
it will require external funds to manage annual capex targets.
However, Fitch expects funding access to be strong given direct and
indirect linkages to EVN and the state, respectively
ISSUER PROFILE
EVNHCMC is one of the five electricity distribution companies in
Vietnam, and it has a monopoly in electricity distribution in Ho
Chi Minh City. EVNHCMC is fully owned by EVN, the country's
state-owned fully integrated power utility.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
EVNHCMC's rating is directly linked to the credit quality of its
parent, EVN. A change in Fitch's assessment of the credit quality
of EVN would automatically result in a change in the rating on
EVNHCMC.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Ho Chi Minh City
Power Corporation LT IDR BB Affirmed BB
===============
X X X X X X X X
===============
[*] ADB Sees Solid Growth but Rising Risks for Asia and Pacific
---------------------------------------------------------------
Economic growth in Asia and the Pacific is expected to remain
solid, although risks to the outlook are rising, according to a
report by the Asian Development Bank (ADB).
The region's developing economies are forecast to grow 4.7% this
year, a slight downward revision from a previous projection of
4.8%, according to Asian Development Outlook (ADO) September 2023,
released on Sept. 20. The growth forecast for next year is
maintained at 4.8%.
Growth in the region was upbeat in the first half of this year,
driven by healthy domestic demand and reopening in the People's
Republic of China (PRC), even as a weaker global outlook reduced
export demand. Rebounding tourism, resilient service sectors,
healthy money transfers into the region, and improving financial
conditions are all helping support economic activity, and inflation
is receding in most economies after peaking last year.
However, weakness in the PRC's property sector is weighing on
regional prospects. High global interest rates have increased the
risk of financial instability. Sporadic supply disruptions from the
continuing Russian invasion of Ukraine, export restrictions, and
the increased risk of droughts and floods caused by El Niño could
once again trigger rising food prices and challenge food security.
"Developing Asia continues growing robustly, and inflation
pressures are receding," said ADB Chief Economist Albert Park.
"Some central banks in the region have started to lower interest
rates, which will help boost growth. Still, governments need to be
vigilant against the many risks that the region faces. Property
market weakness in the PRC remains a concern. Extreme weather
events due to climate change and the effects of El Niño remind us
that economies must work together to build resilience and protect
the most vulnerable."
Inflation in developing Asia and the Pacific is expected to be 3.6%
this year, down from an earlier projection of 4.2%. This is largely
due to low inflation in the PRC, along with steadying food and
energy prices. The inflation forecast for next year is 3.5%.
Among developing Asia's subregions, Southeast Asia's growth outlook
is cut to 4.6% this year from an earlier projection of 4.7%, due to
weaker export demand. The forecast for South Asia is also lowered
by 0.1 percentage points, to 5.4%—though it remains the
fastest-growing subregion, thanks to strong investment and
consumption. The outlook for East Asia is cut to 4.4% from 4.6%,
with the PRC now expected to grow by 4.9% this year, from 5.0% in
April. Growth forecasts have been raised for the Caucasus and
Central Asia and for the Pacific.
*********
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-
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