/raid1/www/Hosts/bankrupt/TCRAP_Public/250324.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, March 24, 2025, Vol. 28, No. 59
Headlines
A U S T R A L I A
ADCON ENGINEERING: First Creditors' Meeting Set for April 27
BANKSIA GROUP: First Creditors' Meeting Set for March 27
BOD SCIENCE: DOCA Period Extended Until June 30
LUSTRA COMMERCIAL: First Creditors' Meeting Set for March 26
MERCEDES GROUP: Placed in Administration; Owes AUD3MM to Creditors
METRO FINANCE 2025-1: Moody's Assigns (P)B2 Rating to Cl. F Notes
NETCOMM WIRELESS: First Creditors' Meeting Set for March 27
NETCOMM WIRELESS: Taps Administrators as Parent Files Bankruptcy
PLAY TODAY: First Creditors' Meeting Set for March 27
C H I N A
AIRNET TECH: CEO, Directors Resign; Replacements Named
ZW DATA: Subsidiary Acquires Rahula Digital Media for US$600,000
I N D I A
ADARSHA AUTO: ICRA Keeps B+ Debt Ratings in Not Cooperating
AMRUT COTTON: ICRA Keeps B+ Debt Ratings in Not Cooperating
ARQUBE INDUSTRIES: ICRA Keeps B+ Debt Ratings in Not Cooperating
BAZAAR KONNECTIONS: ICRA Keeps B Debt Ratings in Not Cooperating
BUNDELA EXPORTS: ICRA Keeps B+ Debt Ratings in Not Cooperating
COASTAL CONSOLIDATED: ICRA Keeps C Ratings in Not Cooperating
DASHMESH AGRO: ICRA Keeps D Debt Rating in Not Cooperating
DASHMESH RICE: ICRA Keeps B Debt Rating in Not Cooperating
DEMPO SHIPBUILDING: ICRA Reaffirms B Rating on INR10cr LT Loan
ELBIT PLAZA: Voluntary Liquidation Process Case Summary
GRANDCITY HOSPITALITY: CRISIL Keeps D Ratings in Not Cooperating
HIGHCO ENGINEERS: ICRA Keeps B+ Debt Ratings in Not Cooperating
ICF CONSULTING: Voluntary Liquidation Process Case Summary
J.S.R. CONSTRUCTIONS: CRISIL Cuts Rating on INR45cr Loan to D
KSC EDUCATIONAL: ICRA Keeps B+ Debt Ratings in Not Cooperating
MAINI GROUP: ICRA Keeps B+ Debt Ratings in Not Cooperating
MUMBAI INT'L AIRPORT: Fitch Affirms BB+ Rating on USD Secured Bonds
MUTHOOT FINANCE: S&P Raises LongTerm Issuer Credit Rating to BB+
PIYUSH INFRATECH: CRISIL Keeps D Debt Ratings in Not Cooperating
PRABHU PETROCHEMICALS: CRISIL Keeps D Ratings in Not Cooperating
R.B. RICE: ICRA Keeps D Debt Rating in Not Cooperating Category
R.K. SCAN: CRISIL Keeps B- Debt Rating in Not Cooperating
RAM AUTOTECH: CRISIL Keeps D Debt Ratings in Not Cooperating
RAM KRISHNA: CRISIL Keeps D Debt Ratings in Not Cooperating
RELIANCE CAPITAL: Exits Insolvency as IndusInd-Backed Plan Gets OK
RKDS EXPORTS: Liquidation Process Case Summary
S HOMES: CRISIL Keeps D Debt Ratings in Not Cooperating Category
SAKSHI AUTO: CRISIL Keeps B- Debt Ratings in Not Cooperating
SAMYAKTH FINSERV: Voluntary Liquidation Process Case Summary
SANGANI INFRASTRUCTURE: CRISIL Keeps D Ratings in Not Cooperating
SHAKTI CONSTRUCTION: ICRA Lowers Rating on INR4cr LT Loan to B+
SHINDE DEVELOPERS: Insolvency Resolution Process Case Summary
SHRUTI RICE: CRISIL Keeps D Debt Ratings in Not Cooperating
SPICEJET LTD: Faces Fresh Insolvency Plea from PT BNN Airlines
SUPREME INFRASTRUCTURE: Liquidation Process Case Summary
TALIN CONSULTANCY: Voluntary Liquidation Process Case Summary
TALIN INTERIOR: Voluntary Liquidation Process Case Summary
TALIN KITCHEN: Voluntary Liquidation Process Case Summary
WANAPARTHY MUNICIPALITY: ICRA Keeps B+ Issuer Rating in Not Coop.
I N D O N E S I A
NICKEL INDUSTRIES: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
M A L A Y S I A
SAPURA ENERGY: MACC Visits Company's Office For Ongoing Probe
N E W Z E A L A N D
BLACK DOOR: Court to Hear Wind-Up Petition on April 4
BLAKEMAN FAMILY: Brenton Hunt Appointed as Receiver and Manager
CLOUDY BAY: In Liquidation Post-Receivership Sale
DIXON HAULAGE: Creditors' Proofs of Debt Due on April 14
LIGARE LIMITED: Creditors' Proofs of Debt Due on April 15
NOVELTY GROUP: Court to Hear Wind-Up Petition on March 28
S I N G A P O R E
AIMS CANADA: Creditors' Meetings Set for April 3
ATHENA PARTNERS: Court to Hear Wind-Up Petition on April 4
JLJB CORPORATIONS: Creditors' Meetings Set for April 2
KSE MARINE: Court Enters Wind-Up Order
MULTI-SYSTEM TECHNOLOGIES: Court to Hear Wind-Up Petition on Apr 4
QOO10: Creditors File More Than SGD198MM in Claims against Company
[] SINGAPORE: Companies Forced to Wind Up Hit 15-Yr High in 2024
S O U T H K O R E A
SK INNOVATION: Moody's Assigns 'Ba1' CFR, Outlook Remains Negative
T A I W A N
SEMILEDS CORP: Trung T. Doan Holds 57.69% Equity Stake
- - - - -
=================
A U S T R A L I A
=================
ADCON ENGINEERING: First Creditors' Meeting Set for April 27
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Adcon
Engineering Pty Ltd will be held on April 27, 2025 at 10:00 a.m. at
the offices of SV Partners at 22 Market Street in Brisbane.
David Michael Stimpson of SV Partners was appointed as
administrator of the company on March 17, 2025.
BANKSIA GROUP: First Creditors' Meeting Set for March 27
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Banksia
Group Pty Ltd will be held on March 27, 2025 at 9:30 a.m. at the
offices of SV Partners at 22 Market Street in Brisbane.
Matthew Charles Hudson and Daniel Jon Quinn of SV Partners were
appointed as administrators of the company on March 17, 2025.
BOD SCIENCE: DOCA Period Extended Until June 30
-----------------------------------------------
Cannabiz reports that plans put forward by Biortica Agrimed to
reverse takeover Bod Science and become a publicly listed company
have been delayed again as it attempt to meet the strict financial
demands of the Australian Securities Exchange (ASX).
Almost 12 months after Biortica signed a Deed of Company
Arrangement (DOCA) to orchestrate a backdoor listing, Bod's
administrator said the DOCA period will be extended until June 30.
Bod Science Limited (ASX:BOD), formerly trading as Bod Australia
Ltd, is a cannabis focused drug development and product innovation
company.
Brent Morgan and Andrew Barnden of Rodgers Reidy were appointed
Joint and Several Voluntary Administrators of the Company on Nov.
29, 2023.
On April 8, 2024, creditors resolved that the Company execute a
DOCA proposed by Biortica Agrimed Limited. The DOCA was
subsequently executed on April 24, 2024.
LUSTRA COMMERCIAL: First Creditors' Meeting Set for March 26
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Lustra
Commercial Pty Ltd, Emora Cleaning Services Pty Ltd, Wallara
Sanitation Services Pty Ltd, and Yarralane Maintenance Pty Ltdwill
be held on March 26, 2025 at 11:00 a.m. at the offices of Cor
Cordis at Level 29, 360 Collins Street in Melbourne and via
Microsoft Teams video conference.
Sam Kaso and Shaun Matthews of Cor Cordis were appointed as
administrators of the company on March 14, 2025.
MERCEDES GROUP: Placed in Administration; Owes AUD3MM to Creditors
------------------------------------------------------------------
Cameron Hugh Shaw, Richard Albarran and Aaron Joseph Dominish of
Hall Chadwick on March 20, 2025, were appointed as Administrators
of Mercedes Group Pty Ltd (trading as"Zorzi Builders" and
"Grandwood Homes").
According to The West Australian, the company owes trade creditors
up to AUD3 million, and two homes linked to the business's boss are
up for sale.
The Administrators may be reached at:
Cameron Hugh Shaw
Richard Albarran
Aaron Joseph Dominish
Hall Chadwick, Level 11
77 St Georges Terrace
Perth WA 6000
METRO FINANCE 2025-1: Moody's Assigns (P)B2 Rating to Cl. F Notes
-----------------------------------------------------------------
Moody's Ratings has assigned provisional ratings to notes issued by
Perpetual Corporate Trust Limited in its capacity as trustee of
Metro Finance 2025-1 Trust.
Issuer: Perpetual Corporate Trust Limited in its capacity as
trustee of Metro Finance 2025-1 Trust
AUD439.0 million Class A Notes, Assigned (P)Aaa (sf)
AUD21.5 million Class B Notes, Assigned (P)Aa2 (sf)
AUD16.5 million Class C Notes, Assigned (P)A2 (sf)
AUD5.0 million Class D Notes, Assigned (P)Baa2 (sf)
AUD13.0 million Class E Notes, Assigned (P)Ba2 (sf)
AUD0.5 million Class F Notes, Assigned (P)B2 (sf)
The AUD2.25 million Class G1 Notes and AUD2.25 million Class G2
Notes are not rated by us.
Metro Finance 2025-1 Trust is a static cash securitisation of a
portfolio of Australian prime commercial auto and equipment loans
and leases, and novated leases secured by motor vehicles originated
by Metro Finance Pty Limited (Metro Finance, unrated). Metro
Finance was established in 2011 as a commercial auto and equipment
lender. It targets prime borrowers for auto and equipment assets in
low volatility industries. Metro Finance originates its lending
through the commercial auto and equipment broker and aggregator
industry nationally. This is Metro Finance's first auto and
equipment asset backed securitisation for 2025.
RATINGS RATIONALE
The provisional ratings take into account, among other factors, (1)
Moody's evaluations of the underlying receivables and their
expected performance, (2) an evaluation of the capital structure
and credit enhancement provided to the notes, (3) the availability
of excess spread over the life of the transaction, (4) the
liquidity facility in the amount of 2.0% of the rated notes'
balance, subject to a floor of AUD991,000, (5) the legal structure,
(6) the experience of Metro Finance as servicer, and (7) the
presence of AMAL Asset Management Limited (AMAL, unrated) as the
back-up servicer.
According to Moody's analysis, the transaction benefits from strong
historical performance data which compares favourably to other
originators of commercial auto and equipment loans and leases. The
key challenge in the transaction is the inclusion of around 59.7%
of receivables extended to prime commercial obligors on a
no-income-verification basis and around 56.3% of receivables
requiring a balloon payment at the end of the receivable term.
Loans with a balloon payment are subject to higher refinancing risk
and, consequently, default risk. Moody's have incorporated an
additional stress into Moody's default assumptions to account for
this.
Moody's portfolio credit enhancement ("PCE") — representing the
loss that Moody's expects the portfolio to suffer in the event of a
severe recession scenario — is 13.5%. Moody's means expected
default rate for this transaction is 2.10% and the assumed recovery
rate is 40.0%. Expected defaults, recoveries and PCE are parameters
used by us to calibrate Moody's lognormal portfolio loss
distribution curve and to associate a probability with each
potential future loss scenario in the cash flow model to rate auto
ABS.
Key transactional features are as follows:
-- Principal collections will be at first distributed
sequentially. Once the step down conditions are satisfied, all
notes may participate in proportional principal collections
distribution. The step down conditions include, among others,
subordination to the Class A notes of at least 1.5 times the
initial Class A subordination, no charge offs on any of the notes
and average arrears greater than 90 days not exceeding 4.0% of the
aggregate loan amount. Principal pay-down will revert to sequential
once the aggregate stated amount of the notes is less than 20.0% of
the aggregate invested amount of the notes at closing, or on or
after the payment date in June 2028.
-- A swap provided by National Australia Bank Limited
(Aa2/P-1/Aa1(cr)/P-1(cr)) will hedge the interest rate mismatch
between the fixed rate assets and the floating rate liabilities.
The notional balance of the swap will follow a schedule based on
the repayment profile of the assets, assuming a certain prepayment
rate.
-- AMAL is the back-up servicer. If Metro Finance is terminated as
servicer, AMAL will take over the servicing role in accordance with
the standby servicing deed and its back-up servicing plan.
Key pool features are as follows:
-- 59.7% of the receivables were extended to prime commercial
obligors on a no-income verification basis, referred to as
"streamlined". This streamlined product allows obligors who meet
certain stringent requirements to access the loan without providing
financial statements.
-- 56.3% of the receivables are loans with a balloon payment at
the end of the receivable term. The aggregate balloon exposure as a
percentage of current portfolio balance is 19.3%.
-- The weighted average interest rate of the portfolio is 7.9%.
-- The weighted average remaining term of the portfolio is 43.1
months. The weighted average seasoning of the initial portfolio is
12.8 months.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
August 2024.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that could lead to an upgrade of the notes include a rapid
build-up of credit enhancement due to sequential amortisation or
better-than-expected collateral performance. The Australian job
market is a primary driver of performance.
Factors that could lead to a downgrade of the notes is
worse-than-expected collateral performance, poor servicing, error
on the part of transaction parties, a deterioration in the credit
quality of transaction counterparties, a lack of transactional
governance, or fraud.
NETCOMM WIRELESS: First Creditors' Meeting Set for March 27
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of NetComm
Wireless Pty Ltd will be held on March 27, 2025 at 12:00 p.m. via
virtual meeting only.
Rahul Goyal and Catherine Margaret Conneely of Cor Cordis were
appointed as administrators of the company on March 17, 2025.
NETCOMM WIRELESS: Taps Administrators as Parent Files Bankruptcy
----------------------------------------------------------------
Amelia McGuire at the Australia Financial Review reports that the
43-year-old company behind Australia's first dial-up modem is close
to a final shutdown after its Nasdaq-listed owner filed for
bankruptcy less than a year after a last-ditch acquisition saved it
from the scrapheap.
NetComm Wireless was once a well-known star of the local technology
industry and powered most of Australia's internet connections in
the early 1990s. Over the past decade, however, the modem and
router maker has fallen in relevance and its market share has
shrunk.
It was saved from collapse last year after Texas-headquartered
software company DZS bought it for US$7 million (AUD11 million)
from another defunct tech company owner, Casa Systems, at a US$150
million discount.
But DZS has now filed for bankruptcy in Texas and has sacked all
US-based staff, the Financial Review discloses. It could be the end
of the road for NetComm Wireless, but DZS has told investors it
remains hopeful some of its foreign assets may be acquired.
"It is with utmost disappointment that we share that DZS was unable
to secure the necessary working capital from either its current
lender or any prospective lenders to sustain the business going
forward," it said.
"Please know that the Company has been working with extreme urgency
to obtain a new working capital facility that would maintain the
business and has otherwise been evaluating all possible strategic
alternatives."
The Financial Review, citing filings with the corporate regulator,
discloses that NetConn appointed Cor Cordis as administrators on
March 18. Administrators Rahul Goyal and Catherine Conneely will be
tasked with assessing the future of the struggling company for a
second time in less than two years.
According to the Financial Review, NetComm was founded by Chris
Howells and Luke Conte with a AUD200 investment nearly 45 years
ago. The pair got their first break after selling some of their
early technology to Apple in the early 1980s.
By 1990, it made up about half of the modem market in Australia and
then grew into a broader data communications company that had
lucrative contracts with Telstra, TPG Telecom and Optus.
It also supplied technology to the National Broadband Network to
help connect about 700,000 regional and remote homes to the
government's wholesale data network in 2017.
NetComm was listed on the ASX until Casa Systems took it private in
2019, in a deal negotiated by then chairman Justin Milne. The deal
was bemoaned by minority shareholders at the time for undervaluing
the company, then Casa collapsed and was forced to sell it to DZS
for US$7 million one year later.
Documents lodged with the Australian Securities and Investments
Commission show NetComm had US$4.8 million in cash and US$44.78
million in inventory before the sale, the Financial Review
discloses.
The Financial Review adds that DZS said it would now appoint a
trustee to control the liquidation process in the US and assess
what to do with its subsidiaries including Netcomm.
NetComm Wireless provides telecommunications infrastructure
equipment to telco companies in Australia and other markets.
PLAY TODAY: First Creditors' Meeting Set for March 27
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Play Today
Pty Ltd will be held on March 27, 2025 at 11:00 a.m. at the offices
of O'Brien Palmer at Level 9, 66 Clarence Street in Sydney and via
virtual meeting technology.
Christopher John Palmer of O'Brien Palmer was appointed as
administrator of the company on March 17, 2025.
=========
C H I N A
=========
AIRNET TECH: CEO, Directors Resign; Replacements Named
------------------------------------------------------
AirNet Technology Inc. disclosed in a Form 6-K Report filed with
the U.S. Securities and Exchange Commission that effective March 4,
2025:
(a) Yuan Feng resigned from his positions as Co-Chief Executive
Officer and a director, due to personal reasons.
(b) Yanxiao Zhu resigned from his positions as an independent
director of the Company, a member of each of the Committees
and the chairperson of the compliance committee of the
Company, due to personal reasons.
(c) Shirong Tong resigned from his positions as an independent
director of the Company, a member of each of the Committees
and the chairperson of the compensation committee of the
Company, due to personal reasons.
On the same date, the Board appointed:
(a) Baozhen Guo as a director of the Company, to fill the
vacancies created by the resignation of Yuan Feng.
Baozhen Guo has served as a director of the board of DMG Real
Estate Development Group Ltd. since October 2014. From July 2011 to
October 2014, Ms. Guo served as a director of the board of BSCD
Real Estate Developers Ltd. Ms. Guo served as the chairwoman of the
board of Jiangsu Dongchuang Concrete Co., Ltd. from August 2005 to
June 2011. Ms. Guo holds a Master's degree in June 2015 from
European university cyprus.
(b) appointed Hao Huang as an independent director of the
Company, a member of each of the Committees and the chairperson of
the compliance committee, to fill the vacancies created by the
resignation of Yanxiao Zhu.
Hao Huang has served as a Project Manager at Black Little Victoria
Investment Ltd in Cyprus since September 2015, where he is
responsible for project planning, initiation, and team management.
Previously, he was a Director at Beijing Golden Sunshine Consulting
Co., Ltd from October 2012 to September 2015. He holds a Master's
degree from Northumbria University and a Bachelor's degree from
Wuhan University of Science and Technology.
(c) Chunhua Tian as an independent director of the Company, a
member of each of the Committees and the chairperson of the
compensation committee, to fill the vacancies created by the
resignation of Shirong Tong.
Chunhua Tian has served as the General Manager of Daimuji
Immigration Consulting (Chongqing) Co., Ltd. since November 2018.
Previously, he was the Deputy General Manager of Chongqing Licheng
Construction Machinery Equipment Leasing Co., Ltd. and Chongqing
Jinjiazi Mechanical and Electrical Equipment Co., Ltd. from March
2014 to October 2018. Earlier in his career, he was the Founder and
General Manager of Lianyungang Dongchuang Concrete Co., Ltd. from
May 2006 to November 2012. He holds a bachelor's degree in Business
Administration from Zhengzhou University of Aeronautics and
Astronautics.
Baozhen Guo, Hao Huang and Chunhua Tian have entered into certain
director offer letters with the Company, which establishes certain
terms and conditions governing their services to the Company. The
form of the director offer letter is qualified in its entirety by
reference to the complete text of the director offer letter.
Baozhen Guo, Hao Huang and Chunhua Tian do not have a family
relationship with any director or executive officer of the Company
and has not been involved in any transaction with the Company
during the past two years that would require disclosure under Item
404(a) of Regulation S-K.
About AirNet Technology
AirNet Technology Inc. was incorporated in the Cayman Islands on
April 12, 2007. AirNet, its subsidiaries, through its variable
interest entities and the VIEs' subsidiaries, operate its
out-of-home advertising network, primarily air travel advertising
network, in the People's Republic of China. The Company also
conducts cryptocurrencies mining business operations by its Hong
Kong subsidiary, Blockchain Dynamics Limited.
As of December 31, 2023, the Company had $115.1 million in total
assets, $101.8 million in total liabilities, and $13.4 million in
total equity.
Singapore-based Audit Alliance LLP, the Company's auditor since
2021, issued a "going concern" qualification in its report dated
April 26, 2024, citing that the Company has a history of operating
losses and negative operating cash flows and has negative working
capital of approximately $56 million as of December 31, 2023. These
conditions indicate that a material uncertainty exists that raise
substantial doubt on the Company's ability to continue as a going
concern, the auditor said.
ZW DATA: Subsidiary Acquires Rahula Digital Media for US$600,000
----------------------------------------------------------------
ZW Data Action Technologies Inc. disclosed in a Form 8-K Report
filed with the U.S. Securities and Exchange Commission that
ChinaNet Investment Holding Limited, a British Virgin Islands
company and an indirect wholly-owned subsidiary of the Company,
entered into a Share Sale and Purchase Agreement dated as of March
3, 2025 with Vickie Chan, an individual, pursuant to which Ms. Chan
agrees to sell, and ChinaNet agrees to buy, the 10,000 shares of
Rahula Digital Media (HK) Limited, a Hong Kong company that Ms.
Chan owns, transferring full legal and beneficial ownership.
Rahula owns 100% equity interest in Shenzhen Shangye Business
Consulting Services Co., Ltd., a People's Republic of China
company. The purchase price is US$600,000. The completion of the
transactions is to occur before March 18, 2025. The Agreement can
be terminated if the transactions are not completed by the Long
Stop Date. The Agreement contains customary representations,
warranties and closing conditions.
About ZW Data Action Technologies
Beijing, China-based ZW Data Action Technologies Inc., established
in 2003, is an ecological enterprise that provides digital services
to sales and marketing channels through blockchain, big data, and
precision marketing. ZW Data Action is committed to empowering SMEs
to achieve more efficient and accurate operations and management,
resulting in additional value for clients.
Hong Kong, China-based ARK Pro CPA & Co, the Company's auditor
since 2023, issued a "going concern" qualification in its report
dated June 28, 2024, citing that the Company has an accumulated
deficit from recurring net losses and significant net operating
cash outflow for the year ended December 31, 2023. All these
factors raise substantial doubt about its ability to continue as a
going concern.
As of June 30, 2024, ZW Data Action Technologies had $10.8 million
in total assets, $5.6 million in total liabilities, and $5.3
million in total stockholders' equity.
=========
I N D I A
=========
ADARSHA AUTO: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-Term ratings of Adarsha Auto World Private
Limited (AAWPL) in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 46.75 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 11.61 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 1.64 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with AAWPL, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Adarsha Auto World Private Limited (AAWPL) was incorporated in 2012
by Mr. B. Satyanarayana Goud & family but the commercial operations
of the company started in October 2016. AAWPL is the dealer for
Maruti Suzuki-NEXA passenger vehicles and spares for the regions
– Hyderabad, Karimnagar and Warangal in Telangana. The Warangal
outlet was started in the month of July 2017. AAWPL is the sole
authorized dealer in Karimnagar and Warangal districts and operates
one of the eight NEXA showrooms in Hyderabad. AAWPL is a part of
Adarsha group which comprises of Adarsha Automotives Private
Limited- authorised dealership for Maruti Suzuki India Limited,
Adarsha Motor Sales, Susheel Motors, Adarsha Automobiles, Thirumal
Motors - authorised distributor for TVS motors limited in different
parts of Telangana.
AMRUT COTTON: ICRA Keeps B+ Debt Ratings in Not Cooperating
-----------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank facilities of
Amrut Cotton Industries (ACI) in the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B+(Stable) ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 1.70 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 16.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with ACI, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Established in 1994, ACI was started as a cotton trading concern.
In 2007, it had set-up its own manufacturing unit for cotton
ginning with its plant located at Gondal, Gujarat. The plant is
currently equipped with 30 ginning machines with an installed
production capacity of 250 bales per day. In FY2017, the firm
diversified into processing ground nuts. From FY2017 onwards,
revenue from sale of cotton bales and peanuts will the major
revenue sources. The firm was promoted and managed by Mr. Suresh V
Senepara along with 8 family members, being partners, having a long
exp. of more than a decade in cotton industry.
ARQUBE INDUSTRIES: ICRA Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has kept the Long-Term ratings of Arqube Industries (India)
Limited (AIIL) in the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 20.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term 10.50 [ICRA]B+ (Stable); ISSUER NOT
Unallocated COOPERATING; Rating Continues
to remain under issuer not
cooperating category
Long Term- 1.50 [ICRA]B+ (Stable); ISSUER NOT
Non-Fund COOPERATING; Rating Continues
Based-Others to remain under issuer not
cooperating category
As part of its process and in accordance with its rating agreement
with AIIL, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Arqube Industries (India) Limited (AIIL) was incorporated as a
limited company to take over an existing company "M/s. Venna Impex"
in FY2006. The firm was liquidated, and all the assets and
liabilities were taken over by the company. AIIL is primarily
engaged in the export (trading) of human hair, both remy (tonsured
hair) & non-remy variety (fallen hair). The entity procures fallen
human hair and tonsured hair. After processing, these are exported
to manufacturers of hair extensions, wigs, toupees, hair pieces and
hair weavings abroad. The company largely exports to china
accounting for more than 90% of the total sales in the last few
years.
BAZAAR KONNECTIONS: ICRA Keeps B Debt Ratings in Not Cooperating
----------------------------------------------------------------
ICRA has kept the Long-Term rating for the bank facilities of
Bazaar Konnections (BK) in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]B(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 3.29 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 9.35 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with BK, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Bazaar Konnections (BK), established in 1994, is a partnership firm
under Mr. Manpreet Singh and his wife Mrs. Neetu Kaur. The firm is
involved in manufacturing leather and duck-fabric ladies' bags and
exporting the products to the UK, the US, Sweden and other European
countries. The firm has a diversified client base with significant
brands under it. It has a manufacturing facility in Udyog Vihar,
Gurgaon (owned) covering an area of 18,000 square feet. The firm
had also constructed another manufacturing facility in Bahadurgarh.
BK manufactures leather bags of different colours, designs, shapes
and sizes as per
customers' specifications. The firm has an in-house designing
unit.
BUNDELA EXPORTS: ICRA Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term ratings for the bank facilities of
Bundela Exports (BE) in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B+(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 4.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 3.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with BE, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
BE was set up in 2000 by Bundela family in Lalitpur, Uttarpradesh.
Mr Sujan Singh Bundela, Chandra Bhushan Singh Bundela and Shri
Shashi Bhushan Singh Bundela are the promoters of business having
equal profit sharing. The firm engaged in processing of granite
blocks into granite stones with an existing production capacity of
10000 CBM per annum. The firm's has its own quarry with license
valid till 2027. Its manufacturing facility is located in Lalitpur,
Uttar Pradesh. The management has been involved in this business
for several years and has gained a thorough knowledge of the
industry. The long-track record of partners in this industry has
helped the firm in developing a strong network of customers.
COASTAL CONSOLIDATED: ICRA Keeps C Ratings in Not Cooperating
-------------------------------------------------------------
ICRA has kept the Long-Term and Short-term ratings of Coastal
Consolidated Structures Pvt. Ltd (CCSPL) in the 'Issuer Not
Cooperating' category. The rating is denoted as [ICRA]C/[ICRA]A4;
ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term/ 9.50 [ICRA]C/[ICRA]A4; ISSUER NOT
Short-term- COOPERATING; Rating continues to
Non-fund based remain under 'Issuer Not
Others Cooperating' category
Long-term/ 21.00 [ICRA]C/[ICRA]A4; ISSUER NOT
Short-term- COOPERATING; Rating continues to
Unallocated remain under 'Issuer Not
Limits Cooperating' category
Long-term- 6.50 [ICRA]C; ISSUER NOT COOPERATING;
Fund-based Rating to remain under 'Issuer
Cash Credit Not Cooperating' category
As part of its process and in accordance with its rating agreement
with CCSPL, ICRA has been trying to seek information from the
entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
CCSPL, based out of Vijayawada, Andhra Pradesh was established in
1996 by Mr. M V Ranga Prasad and undertakes civil works such as
excavation, dredging, road and ports. CCSPL's operation are
overseen by its Managing Director, Mr. M V Ranga Prasad,who is a
mechanical engineer and has been involved in the construction
industry for the past three decades.
DASHMESH AGRO: ICRA Keeps D Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank facilities of
Dashmesh Agro Industries in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 26.00 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with Dashmesh Agro Industries, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
Dashmesh Agro Industries is a partnership firm promoted by Mr.
Ashwani Sidana and his family members. The firm is primarily
involved in the milling of basmati rice and also converts
semi-processed rice into parboiled basmati rice. DAI's milling unit
is based out of Jalalabad in Ferozpur district, Punjab, which is in
close proximity to the local grain market.
DASHMESH RICE: ICRA Keeps B Debt Rating in Not Cooperating
----------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank facilities of
Dashmesh Rice Mills in the 'Issuer Not Cooperating' category. The
rating is denoted as "[ICRA]B (Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 30.00 [ICRA]B (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with Dashmesh Rice Mills, ICRA has been trying to seek information
from the entity so as to monitor its performance. Further, ICRA has
been sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In the
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been continued to the "Issuer Not
Cooperating" category. The rating is based on the best available
information.
Dashmesh Rice Mills is a partnership firm promoted by Mr. Raman
Sidana and his family members, primarily involved in milling of
basmati rice. The firm also converts semi-processed rice into
parboiled basmati rice. DRM's milling unit is based out of
Jalalabad, District in Punjab's Ferozpur, in close proximity to the
local grain market.
DEMPO SHIPBUILDING: ICRA Reaffirms B Rating on INR10cr LT Loan
--------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Dempo
Shipbuilding and Engineering Private Limited (DSEPL/the company),
as:
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 8.00 [ICRA]B (Stable); reaffirmed
Fund Based-
Cash Credit
Long Term- 10.00 [ICRA]B (Stable); reaffirmed
Unallocated
Rationale
The rating reaffirmation takes into account the extensive
experience of the promoters of DSEPL in the shipbuilding industry
and the company's linkages to the Dempo Group. ICRA notes that the
financial performance of the standalone entity is expected to
improve marginally as the ongoing order execution will generate
higher revenue, although the overall financial risk profile will
remain weak.
The performance of the subsidiary - Modest Infrastructure Private
Limited (MIPL) - has also remained subdued although it has been
able generate higher revenues owing to a steady order inflow over
the last couple of years. ICRA also notes that the consolidated
entity continues to get financial support from the parent firm, V S
Dempo Holdings Private Limited (VSDHPL), and the company has
maintained timely debt servicing despite losses.
The rating continues to be tempered by the weak financial risk
profile of the company, characterised by losses in the last few
years, volatility in order flows and the susceptibility to
fluctuations in raw material prices, given the fixed price nature
of its sales contracts.
The Stable outlook on the [ICRA]B rating reflects ICRA's opinion
that the company's credit profile will be supported by the expected
liquidity support from its parent company and a modest growth in
consolidated revenues and profitability.
Key rating drivers and their description
Credit strengths
* Extensive experience of promoters in shipbuilding industry:
DSEPL, incorporated in 1963, is involved in the construction and
repair of barges, utility vessels and pontoons. DSEPL is a
wholly-owned subsidiary of VSDHPL, which is an investment company
of the Dempo Group. The company has two shipbuilding yards — one
at old Goa on the banks of the Mandovi river and the other at Undir
(Ponda, Goa) on the banks of the Zuari river. DSEPL has the
capacity to undertake new construction of 10-12 vessels of up to
4,000 deadweight tonnage (DWT) per annum and carry out repairs of
up to 1,000 tonnes per annum.
* Status of DSEPL as part of Dempo Group: DSEPL is a part of the
Goa-based Dempo Group, which has interests across mining,
shipbuilding, media, food and beverages, travel and sports. The
parent company, VSDHPL, continues to provide financial assistance,
as and when required, to support the operations of the company.
DSEPL, in turn, extends support to its subsidiary company, MIPL.
Credit challenges
* Weak financial risk profile characterised by continued losses and
depressed coverage indicators: DSEPL's consolidated financial risk
profile has been historically characterised by consistent losses at
the operating and net levels. On a consolidated basis, the company
reported a small operating profit in FY2024 compared to an
operating loss in FY2023. DSEPL's capital structure has improved
post the conversion of CCDs into equities in Q1 FY2025 but the net
worth at the consolidated level remains negative due to large
accumulated losses in MIPL. The coverage indicators continue to be
weak. On a consolidated
basis, the overall debt level was INR117 crore (promoter debt was
as INR22.09 crore in DSEPL & INR76.09 crore in MIPL) as on March
31, 2024 with TD/OPBDITA at 127.7x. The borrowings mainly consisted
of unsecured loans from VSDHPL and related parties as on March 31,
2024.
* Volatility in orders flow: DSEPL's order book remains volatile on
a standalone basis. At a consolidated level, the order book remains
healthy with orders for both ship repairs and ship building for
MIPL, some of which have been subcontracted to DSEPL. At present,
the company is manufacturing a floating dock, subcontracted from
MIPL. In addition, DSEPL has some repair orders from its existing
clients but further revenue visibility remains muted as there has
been no incremental order inflow in YTD FY2025.
* Exposure to raw material price risk: The company's margins remain
exposed to fluctuations in input prices, given the fixed price
nature of the usual contracts it receives. The current contract
received by the company involves job work as the raw material is
supplied by the customer, protecting the company from input price
risks.
Liquidity position: Stretched
The liquidity of the company remains stretched due to its
loss-making operations. Consequently, DSEPL largely depends on the
support from its parent group to fund its losses and working
capital requirements. While ICRA notes that the company's debt
servicing has been regular because of the support from the parent
VSDHPL, its ability to continue the same remains a key
monitorable.
Rating sensitivities
Positive factors – The rating may be upgraded in case of a
significant improvement in the order book position of the
consolidated entity, leading to a substantial increase in its
consolidated revenues and profitability on a sustained basis that
would improve the liquidity profile.
Negative factors – Pressure on the rating could arise in case of
a substantial decline in the revenues and profitability of the
consolidated entity on a sustained basis, and/or a further
elongation in the working capital cycle, leading to a deterioration
in the liquidity profile. Further, any weakening of linkages or
deterioration in the credit profile of the parent, VSDHPL, may also
put pressure on the ratings.
Dempo Shipbuilding & Engineering Private Limited, incorporated in
1963, is a wholly-owned subsidiary of V S Dempo Holdings Private
Limited (VSDHPL), which is an investment company of the Dempo
Group. The company has two shipbuilding yards: one at old Goa on
the banks of the Mandovi river and the other at Undir on the banks
of the Zuari river. DSEPL has the capacity to undertake new
construction of 10-12 vessels per annum of up to 4,000 deadweight
tonnage (DWT) and carry out repair work of around 36 vessels of
350-2,000 DWT. In July 2012, DSEPL received approval from the
Gujarat Maritime Board for the acquisition of a majority stake in
Modest Infrastructure Private Limited, and consequently, MIPL
became a subsidiary of DSEPL. MIPL is a ship-building and
repairing company, which undertakes projects of building small to
medium-sized product tankers, bulk carriers and offshore survey
vessels in addition to executing ship-repairing activities from its
shipyard facility at Ramsar in Bhavnagar (Gujarat).
ELBIT PLAZA: Voluntary Liquidation Process Case Summary
-------------------------------------------------------
Debtor: Elbit Plaza India Management Services Private Limited
No. 2620 (Old No. 101 1A), 26th Main,
38th Cross, Jayanagar 9th Block,
560069, Jayanagar West, Bangalore,
Bangalore South, Karnataka, 560070
Liquidation Commencement Date: March 3, 2025
Court: National Company Law Tribunal, Bengaluru Bench
Liquidator: Thirupal Gorige
No. 87, 2nd Floor, 21st Cross,
7th Main, N. S. Palya, BTM 2nd Stage,
Bangalore - 560076, Karnataka, India
Cell: +91 94483 84064,
LL: +080 7963 4233
EMAIL: gthirupal@gmail.com
Last date for
submission of claims: April 2, 2025
GRANDCITY HOSPITALITY: CRISIL Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Grandcity
Hospitality Private Limited (GCH) continue to be 'CRISIL D Issuer
Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 2.7 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 12.3 CRISIL D (Issuer Not
Cooperating)
Crisil Ratings has been consistently following up with GCH for
obtaining information through letter and email dated February 7,
2025 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 GCH, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on GCH
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
GCH continues to be 'Crisil D Issuer not cooperating'.
GCH was incorporated in 2011. The company has recently established
a 51 room four star hotel in Lucknow (UP) for which it has a
marketing and management tie up with Lemon tree. The hotel
operations have commenced from 29th January 2019 onwards. The firm
is being managed by Mr. Praveen Kumar and Mr. Paramjeet Singh.
HIGHCO ENGINEERS: ICRA Keeps B+ Debt Ratings in Not Cooperating
---------------------------------------------------------------
ICRA has kept the Long-Term rating of Highco Engineers Private
Limited (HEPL) in the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 4.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
Long Term- 9.78 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 3.22 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with HEPL, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
HEPL was incorporated in 2003 by taking over the business of a
partnership firm earlier formed by the promoters, Mr. M.P. Singh
and Mr. A.K. Sahu. The company is an ancillary of TML for the
supply of pressed sheet metal items used in commercial vehicles.
HEPL also manufactures sheet metal components for a few other
clients including manufacturers of earthmoving equipments,
contractors of infrastructure projects as well as other automobile
component manufacturers. The company has two manufacturing units at
Adityapur, Jamshedpur in Jharkhand and another unit at Dharwad,
Karnataka. HEPL outsources a part of its painting operations to a
group company. The group also has presence in the manufacturing and
installation of aluminium windows, doors and external facades,
through another company.
ICF CONSULTING: Voluntary Liquidation Process Case Summary
----------------------------------------------------------
Debtor: ICF Consulting Services India Private Limited
Pullman/Novotel Commercial Tower
2nd Floor Asset No. 2
IGI Airport Hospitality Area
Aero City, New Delhi 110037
Liquidation Commencement Date: February 27, 2025
Court: National Company Law Tribunal, New Delhi Bench
Liquidator: Devendra Umrao
94D, Pocket F, Mayur Vihar,
Phase 2, New Delhi - 110091
Email: devumraoibc@gmail.com
Correspondence:
2216, Second Floor, The Corenthum
Sector 62, Noida 201301, Uttar Pradesh
Email: icf.liquidation@gmail.com
Tel: +91 9871045874
Last date for
submission of claims: March 29, 2025
J.S.R. CONSTRUCTIONS: CRISIL Cuts Rating on INR45cr Loan to D
-------------------------------------------------------------
Crisil Ratings has downgraded its ratings on the bank facilities of
J.S.R. Constructions Private Limited (JSRCPL) to 'Crisil D/Crisil D
Issuer Not Cooperating' from 'Crisil B-/Stable/Crisil A4 Issuer Not
Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 45 Crisil D (ISSUER NOT
COOPERATING; Downgraded from
'Crisil A4 ISSUER NOT
COOPERATING')
Proposed Long Term 1 Crisil D (ISSUER NOT
Bank Loan Facility COOPERATING; Downgraded from
'Crisil B-/Stable ISSUER NOT
COOPERATING')
Crisil Ratings has been consistently following up with JSRCPL, and
has sought information via letters and email dated March 3, 2025
among others, apart from telephonic communication. However, the
issuer has remained non-cooperative.
Investors, lenders and all other market participants should
exercise due caution with reference to the ratings
assigned/reviewed with the suffix 'issuer not cooperating' as the
ratings have been arrived at without any management interaction and
are based on the best available, 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 of JSRCPL,
Crisil Ratings has not received any information on the financial
performance or strategic intent of the entity. This restricts the
ability to take a forward-looking view on the credit quality of the
company. The rating action on JSRCPL is consistent with the
criteria detailed in 'Assessing information adequacy risk'.
Based on the last-available information and feedback from the
bankers, Crisil Ratings has downgraded its ratings on the bank
facilities of JSRCPL to 'Crisil D/Crisil D Issuer Not Cooperating'
from 'Crisil B-/Stable/Crisil A4 Issuer Not Cooperating'.
Analytical Approach
For arriving at its ratings, Crisil Ratings has consolidated the
business and financial risk profiles of JSR constructions Private
Limited and the SPV JSR Mulbagal Tollways Private Limited since the
entities have significant business and financial fungibility.
Formed as a proprietorship of Mr J Srinivasulu Reddy in 1972, the
firm was reconstituted as JSRCPL in 1990. The Bengaluru
(Karnataka)-based company undertakes construction of roads, canals
and other allied projects. It was focused only on irrigation works
till 2001, and subsequently, shifted focus towards road projects.
The company is a registered Special Class (Civil) contractor with
the irrigation public works departments (PWDs) of Andhra Pradesh
and Gujarat. It is also a registered Class 1 Contractor for the PWD
of Karnataka and Category-1 contractor with Karnataka Neeravari
Nigam Ltd.
KSC EDUCATIONAL: ICRA Keeps B+ Debt Ratings in Not Cooperating
--------------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank Facility of KSC
Educational Society in the 'Issuer Not Cooperating' category. The
ratings is denoted as "[ICRA]B+(Stable) ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 150.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 2.32 [ICRA]B+ (Stable) ISSUER NOT
Non Fund Based- COOPERATING; Rating continues
Others to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with KSC Educational Society, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
K.S.C Educational Society is promoted by the Chadha Group with the
objective of providing technical and nontechnical education.
Society has set up an international school (from Nursery to Class
XII) by the name of 'Genesis Global School' in Sector 132 of Noida,
Uttar Pradesh. School commenced operations from April 2010.
MAINI GROUP: ICRA Keeps B+ Debt Ratings in Not Cooperating
----------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank Facility of Maini
Group of Educational Society (MGES) in the 'Issuer Not Cooperating'
category. The ratings are denoted as "[ICRA]B+(Stable) ISSUER NOT
COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term- 0.50 [ICRA]B+ (Stable) ISSUER NOT
Unallocated COOPERATING; Rating continues
to remain under 'Issuer Not
Cooperating' category
Long Term- 7.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Term Loan to remain under 'Issuer Not
Cooperating' category
Long Term- 2.00 [ICRA]B+ (Stable) ISSUER NOT
Fund Based- COOPERATING; Rating continues
Cash Credit to remain under 'Issuer Not
Cooperating' category
As part of its process and in accordance with its rating agreement
with MGES, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
Established in 2011, MGES operates the Cambridge International
School in Nawashahr, Punjab. The school commenced operations in
April 2013 and had ~1100 students in Academic Year 2016-17. The
society is promoted by Mr Sukhdev Prasad Maini and Mr Rajan Maini
who have other business interests, including filling stations and
brick kilns.
MUMBAI INT'L AIRPORT: Fitch Affirms BB+ Rating on USD Secured Bonds
-------------------------------------------------------------------
Fitch Ratings has revised the Outlook on the following Adani group
entities to Stable from Negative and affirmed the ratings at
'BBB-':
- Adani International Container Terminal Private Limited's
(AICTPL) US dollar senior secured bonds;
- Adani Green Energy Limited Restricted Group 1's (AGEL RG1)
US dollar senior secured bonds;
- Adani Green Energy Limited Restricted Group 2's (AGEL RG2)
US dollar senior secured bonds; and
- Adani Energy Solutions Limited restricted group's (AESL RG)
US dollar senior secured bonds.
Fitch has also removed the Rating Watch Negative (RWN) and taken
rating action on the following issuers:
- Mumbai International Airport Limited's (MIAL) US dollar
senior secured bonds affirmed at 'BB+' with a Negative
Outlook; and
- North Queensland Export Terminal Pty Ltd's (NQXT)
Australian dollar senior secured bonds affirmed at 'BB+'
with a Stable Outlook. Fitch has simultaneously withdrawn
the senior secured bond rating of NQXT.
RATING RATIONALE
Fitch's affirmation of the ratings follows demonstration of
adequate funding access by Adani group entities since the US
indictment of certain board members of another group entity, Adani
Green Energy Limited (AGEL), on 20 November 2024.
Fitch believes the risks associated with the group's liquidity and
funding requirements have moderated, which is reflected in the
successful refinancing of NQXT's AUD329 million term loan due in
June 2025 through a private placement ahead of its maturity. At the
group level, AGEL has also raised long-term onshore funding to
refinance its USD1.1 billion construction-linked facility, which
was due in March 2025.
The Stable Outlook on AGEL RG1, AGEL RG2, AESL RG and AICTPL
reflects limited downside risks, particularly from the contagion
effects of the US investigation, given the structural protection
and absence of refinancing risk under their debt structure.
The bonds are supported by the structural protection in place,
including ring-fencing, a cash flow waterfall, and distribution and
indebtedness restrictions that safeguard bondholders from any
material negative implications from the outcome of the US
investigation. The group has continued to renew hedging contracts
and raise funding without any material increase in costs to date.
AGEL RG1's, AGEL RG2's and AESL RG's long-term offtake contracts,
relatively stable operating cash flow and absence of refinancing
risks limit any material negative impact from group-related risks.
AICTPL does not have a long term take-or-pay contract in place, but
revenue volatility is reduced by its terminal service agreement
with Mediterranean Shipping Company S.A. (MSC), under which MSC is
required to use AICTPL when its container ships call at Mundra
Port, subject to AICTPL's availability. AICTPL is a joint venture
between Terminal Investment Limited, which is majority-owned by
MSC, and Adani Ports and Special Economic Zone Limited
(BBB-/Negative). AICTPL's fully amortising debt structure and
structural protection further limit downside from any contagion
risks.
The Negative Outlook on MIAL reflects exposure to contagion risk
given its near-to-medium term funding requirements. MIAL plans to
undertake capex to reconstruct Terminal 1 to expand capacity in
addition to other planned refurbishments in the next control period
in FY25-FY29. Fitch will monitor the impact of any material adverse
development from the US investigation on MIAL's financial
flexibility.
The Stable Outlook on NQXT follows the successful completion of the
refinancing of debt due in June 2025. The new facility maintains
similar terms to the previous refinancing completed in early 2024.
The new debt limits any funding needs until 2030. The partial
amortisation nature of the new debt reduces refinancing
requirements at maturity. The rating already reflects NQXT's
limited market access compared with peers. Fitch has withdrawn
NQXT's senior secured bond rating as the bond has been fully
repaid.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
AGEL RG1:
- Average annual debt service coverage ratio (DSCR) during the
notes' tenor drops to below 1.35x for a prolonged period
- Lowering of India's Country Ceiling to 'BB+' from 'BBB-'
AGEL RG2:
- Average annual DSCR during the notes' tenor drops to below 1.3x
for a prolonged period
- Lowering of India's Country Ceiling to 'BB+'
AESL RG:
- Average annual DSCR during the notes' tenor drops to below 1.25x
for a prolonged period
- Lowering of India's Country Ceiling to 'BB+'
AICTPL:
- Average annual DSCR during the notes' tenor drops to below 1.8x
for a prolonged period
- Lowering of India's Country Ceiling to 'BB+'
MIAL:
- Impairment of financial flexibility, including the impact of
material adverse developments from the US investigation
- Net debt/EBITDA remaining above 7.5x for a sustained period
NQXT:
- No longer relevant as the ratings have been withdrawn.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
AGEL RG1:
- Positive rating action is unlikely, given limited expected
improvement in the financial profile
AGEL RG2, AESL RG, AICTPL
- Risks of any material negative implications from the US
investigation do not materialise, funding access remains intact;
and
- India's Country Ceiling is revised upwards to 'BBB', with no
deterioration in the financial profile
MIAL:
- Outlook will be revised to Stable if the risks of any material
negative implications from the US investigation do not materialise
while funding access remains intact
NQXT:
- No longer relevant as the ratings have been withdrawn.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
AGEL RG2, AICTPL and AESL RG ratings are capped by India's Country
Ceiling.
ESG Considerations
AGEL RG1 has an ESG Relevance Score of '4' for Governance Structure
due to the concentration of ownership, with a large majority stake
indirectly held by Adani Group, which has a negative impact on the
credit profile, and is relevant to the rating in conjunction with
other factors.
AGEL RG1 has an ESG Relevance Score of '4' for Group Structure due
to the structure's complexity at the shareholder level, which has a
negative impact on the credit profile, and is relevant to the
rating in conjunction with other factors.
AGEL RG2 has an ESG Relevance Score of '4' for Governance Structure
due to the concentration of ownership, with a large majority stake
indirectly held by Adani Group, which has a negative impact on the
credit profile, and is relevant to the rating in conjunction with
other factors.
AGEL RG2 has an ESG Relevance Score of '4' for Group Structure due
to the structure's complexity at the shareholder level, which has a
negative impact on the credit profile, and is relevant to the
rating in conjunction with other factors.
AICTPL has an ESG Relevance Score of '4' for Governance Structure
due to the concentration of ownership, with a substantial
shareholding indirectly held by Adani Group, which has a negative
impact on the credit profile, and is relevant to the rating in
conjunction with other factors.
AICTPL has an ESG Relevance Score of '4' for Group Structure due to
the structure's complexity at the shareholder level, which has a
negative impact on the credit profile, and is relevant to the
rating in conjunction with other factors.
AESL RG has an ESG Relevance Score of '4' for Governance Structure,
due to the concentration of ownership, with a large majority stake
indirectly held by Adani Group. This has a negative impact on the
credit profile and is relevant to the rating in conjunction with
other factors.
AESL RG has an ESG Relevance Score of '4' for Group Structure, due
to the structure's complexity at the shareholder level. This has a
negative impact on the credit profile and is relevant to the rating
in conjunction with other factors.
MIAL has an ESG Relevance Score of '4' for Governance Structure due
to the concentration of ownership, with a large majority stake
indirectly held by Adani Group, which has a negative impact on the
credit profile, and is relevant to the rating in conjunction with
other factors.
MIAL has an ESG Relevance Score of '4' for Group Structure due to
the structure's complexity at the shareholder level, which has a
negative impact on the credit profile, and is relevant to the
rating in conjunction with other factors.
NQXT has an ESG Relevance Score of '4' for Governance Structure,
due to the complexity of its group structure at the shareholder
level. This has a negative impact on the credit profile and is
relevant to the rating in conjunction with other factors.
NQXT has an ESG Relevance Score of '4' for Group Structure, due to
the concentration of ownership, with a large majority stake
indirectly held by Adani Group. This has a negative impact on the
credit profile and is relevant to the rating in conjunction with
other factors.
NQXT has an ESG Relevance Score of '4' for Management Strategy, as
its partially amortising debt structure compounds the risk of
limited refinancing options. This has a negative impact on the
credit profile and is relevant to the rating in conjunction with
other factors. Following the withdrawal of the rating for NQXT,
Fitch will no longer be providing the associated ESG Relevance
Scores.
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
----------- ------ -----
Adani International
Container Terminal
Private Limited
Adani International
Container Terminal
Private Limited/Port
Revenues - First
Lien/1 LT LT BBB- Affirmed BBB-
Adani Green Energy
Limited Restricted
Group 1
Adani Green Energy
Limited Restricted
Group 1/Project
Revenues – First
Lien/1 LT LT BBB- Affirmed BBB-
Adani Green Energy
Limited Restricted
Group 2
Adani Green Energy
Limited Restricted
Group 2/Project
Revenues - First
Lien/1 LT LT BBB- Affirmed BBB-
Thar Power Transmission
Service Limited
Adani Energy
Solutions Ltd
Restricted Group 1
/Project Revenues –
First Lien/1 LT LT BBB- Affirmed BBB-
Raipur-Rajnandgaon-Warora
Transmission Limited
Adani Energy Solutions
Ltd Restricted Group 1
/Project Revenues –
First Lien/1 LT LT BBB- Affirmed BBB-
Sipat Transmission
Limited
Adani Energy Solutions
Ltd Restricted Group 1
/Project Revenues –
First Lien/1 LT LT BBB- Affirmed BBB-
Barmer Power Transmission
Service Limited
Adani Energy Solutions
Ltd Restricted Group 1
/Project Revenues –
First Lien/1 LT LT BBB- Affirmed BBB-
Hadoti Power Transmission
Service Limited
Adani Energy Solutions
Ltd Restricted Group 1
/Project Revenues –
First Lien/1 LT LT BBB- Affirmed BBB-
Chhattisgarh-WR
Transmission Limited
Adani Energy Solutions
Ltd Restricted Group 1
/Project Revenues –
First Lien/1 LT LT BBB- Affirmed BBB-
Mumbai International
Airport Limited
Mumbai International
Airport Limited/Airport
Revenues - First
Lien/1 LT LT BB+ Affirmed BB+
North Queensland
Export Terminal Pty Ltd
North Queensland
Export Terminal
Pty Ltd/Port Revenues
- First Lien/1 LT LT BB+ Affirmed BB+
North Queensland
Export Terminal
Pty Ltd/Port Revenues
- First Lien/1 LT LT WD Withdrawn
MUTHOOT FINANCE: S&P Raises LongTerm Issuer Credit Rating to BB+
----------------------------------------------------------------
S&P Global Ratings believes India's oversight of large nonbank
finance companies (NBFCs) has improved sustainably after changes to
the regulatory framework. This has, in turn, led to more financial
stability and sustainable growth of these companies.
As a result, S&P raised the long-term issuer credit ratings on
three upper layer finance companies (fincos) by one notch --
Shriram Finance Ltd. to 'BB+'; Muthoot Finance Ltd. to 'BB+'; and
Sammaan Capital Ltd. to 'B+'.
S&P revised the long-term rating outlook on Bajaj Finance Ltd. to
positive and affirmed the 'BBB-/A-3' ratings. S&P revised upward
the company's stand-alone credit profile (SACP) to 'bbb' from
'bbb-'.
S&P affirmed the 'BBB-/A-3' ratings on Tata Capital. Also, S&P
affirmed the 'BB-/B' ratings on Piramal Capital and Housing Finance
Ltd.
Reserve Bank of India's (RBI) differentiated regulatory regime will
benefit upper-layer fincos the most. S&P said, "The scale-based
regulations have progressively strengthened the financial system's
stability, in our view. This has led to more sustainable growth at
the largest NBFCs, along with a focus on risk management,
transparency, and compliance. S&P has accordingly revised the
anchor -- the starting point for rating upper-layer fincos in India
-- to 'bb+' from 'bb'. The anchor for other finance companies
remain unchanged at 'bb'."
RBI introduced scale-based regulations in October 2022 with a view
to progressively increase the intensity of regulation and
supervision. These are based on parameters such as companies' size,
complexity, and interconnectedness. In S&P's view, the regulatory
scrutiny is more rigorous for the "upper layer" entities, which are
classified as such due to their significant size and potential to
affect overall industry stability.
Upper-layer NBFCs are subject to more stringent guidelines and
supervision than what smaller players face. The tougher rules
include capital adequacy norms, mandatory listing and consequent
disclosure requirements, and more stringent provisioning needs.
Akin to banks, upper-layer fincos need to maintain differential
provisioning requirements for standard assets ranging from 0.25% to
2%, depending on the asset class. Likewise, they are subjected to a
more detailed framework for large exposures and are required to
determine internal exposure limits on important sectors. In order
to enhance the quality of regulatory capital, these NBFCs are also
required to maintain common equity Tier 1 capital of at least 9% of
risk-weighted assets.
S&P said, "This is coming when the Indian economy is on a
high-growth trajectory; we estimate GDP growth at 6%-7% for
2025-2026. We believe large NBFCs play a critical role in financial
intermediation, complementing banks, particularly in financing the
retail sector and small and midsize companies. In the process, the
upper-layer NBFCs have become sizable, with total assets and loans
rivaling those of midsize Indian banks." Generally, upper-layer
fincos are well capitalized, which will support credit growth over
the next two years and provide buffers against downside risks.
UPGRADES
Muthoot Finance Ltd.
Primary credit analyst: Shinoy Varghese
Rationale
S&P said, "We raised our issuer credit ratings on Muthoot Finance
to 'BB+/B' from 'BB/B'. This reflects our view that the company
will maintain its excellent capital and earnings over the next 12
months while benefiting from the strengthening regulatory
environment, particularly for upper-layer fincos in India. We
expect some stress in the asset quality of Muthoot's microfinance
subsidiary, in line with the industry. That said, we expect the
company to maintain overall asset quality, thanks to the dominance
of its highly collateralized gold loan portfolio.
"Muthoot is one of the largest players in the gold loan market,
focusing on loans against gold jewelry, although it is relatively
small within the overall financial sector in India. We expect the
company to maintain its strong market position despite increasing
competition. Muthoot benefits from strong brand recognition and a
proven track record in gold loans. While banks have become
aggressive in this lucrative segment, we believe Muthoot will
retain its market position due to its extensive experience and
expertise in this niche."
The company's assets and liabilities are well matched. However, it
must continually refinance its funding to meet lending needs,
because the proportion of short-term borrowings remains high.
Outlook
S&P said, "The stable rating outlook on Muthoot reflects our view
that the company will maintain its capitalization and strong market
position in gold loans over the next 12 months. We expect Muthoot
to continue increasing the share of longer-tenor funding in its
funding mix."
Downside scenario: S&P could lower the ratings if competition
intensifies such that Muthoot's market position in the gold loan
segment deteriorates.
S&P could also lower the ratings if the company's asset quality
deteriorates significantly, which could happen if stress in its
non-gold loan segment builds up, though it views
4 this scenario as unlikely.
Upside scenario: S&P does not see any upside to the ratings for
the next 12 months.
Muthoot Finance Ltd.--Ratings Score Snapshot
To From
Issuer Credit Rating BB+/Stable/B BB/Stable/B
SACP bb+ bb
Anchor bb+ bb
Business position Adequate (0) Adequate (0)
Capital and earnings Very Strong(+2) Very Strong(+2)
Risk position Moderate(-1) Moderate(-1)
Funding and liquidity Moderate and Moderate and
Adequate(-1) Adequate(-1)
Comparable ratings analysis 0 0
Support 0 0
ALAC support 0 0
GRE support 0 0
Group support 0 0
Sovereign support 0 0
Additional factors 0 0
SACP--Stand-alone credit profile.
Shriram Finance Ltd.
Primary credit analyst: Shinoy Varghese
Rationale
S&P said, "We upgraded Shriram Finance to 'BB+/B' from 'BB/B' to
reflect our view that the company will benefit from a strengthening
regulatory environment, particularly for upper-layer fincos in
India, and will maintain its financial profile.
"We expect Shriram Finance to maintain its market leadership in the
used-commercial vehicles market. The company benefits from its
entrenched position in financing for this sector, helped by its
long-standing relationship with borrowers, deep understanding of
the market, and expansive reach in lower-tier cities and rural
areas."
Shriram Finance operates in high-risk, high-return business lines
that target low-income, underbanked customers in semi-urban and
rural areas of India. That said, good economic growth prospects in
India will help the company's asset quality. S&P expects its credit
cost to improve marginally to about 1.9% of average loans over the
next couple of years from currently 2.1%. However, Shriram
Finance's nonperforming loans and credit costs will stay higher
than those of peers because the company's borrowers have weak
financial health and often do not have steady cash flows.
S&P said, "Despite our expectation of Shriram Finance's high loan
growth of 17%-19% over the next two years, its capitalization
should remain strong, in our view. We project a risk-adjusted
capital (RAC) ratio for the company at 13.5%-14.0% over the next
couple of years.
"We believe Shriram Finance will continue to have access to
diversified funding sources. In our view, the company will keep
reducing its reliance on confidence-sensitive funding sources.
Also, its limited reliance on short-term debt caps rollover risks.
Nevertheless, the company has to pay a higher risk premium than
some top-tier Indian fincos. This is mainly because Shriram Finance
lacks strong parentage and operates in a segment that is inherently
risky."
Outlook
S&P said, "The stable outlook reflects our view that Shriram
Finance will sustain its financial profile over the next 12 months.
We also expect the company's asset quality to be manageable over
the period."
Downside scenario: S&P could lower its ratings on Shriram Finance
if its asset quality deteriorates significantly, which could
curtail access to funds and strain liquidity.
Upside scenario: S&P could upgrade Shriram Finance if it expects
its RAC ratio to improve and stay above 15% on a sustainable
basis.
Shriram Finance Ltd.--Ratings Score Snapshot
To From
Issuer Credit Rating BB+/Stable/B BB/Stable/B
SACP bb+ bb
Anchor bb+ bb
Business position Strong (+1) Strong (+1)
Capital and earnings Strong (+1) Strong (+1)
Risk position Moderate (-1) Moderate (-1)
Funding and liquidity Moderate and Moderate and
Adequate (-1) Adequate (-1)
Comparable ratings analysis 0 0
Support 0 0
ALAC support 0 0
GRE support 0 0
Group support 0 0
Sovereign support 0 0
Additional factors 0 0
SACP--Stand-alone credit profile.
Sammaan Capital Ltd.
Primary credit analyst: Shinoy Varghese
Rationale
S&P said, "The upgrade of Sammaan Capital Ltd. (SCL) reflects our
view that the company will benefit from a strengthening regulatory
environment, particularly for upper-layer fincos in India, and
broadly sustain its financial profile.
"In our view, SCL's size will continue to constrain its business
position. This is given the company's asset-light business model
focusing on the origination and sale of loans, its repayments of
legacy mortgage loans, and a rapid reduction in developer loans.
"We believe housing loans and loans to small and midsize
enterprises backed by property collateral will be key growth
drivers for SCL over the next two years. Meanwhile, the company's
exposure to real estate developers will continue to decline. This
in line with its operating strategy of using alternative investment
funds to reduce risks on the balance sheet and achieve asset-light
growth."
The change in business model has also helped SCL to operate at
lower leverage. The company expects its share of legacy assets
under management (AUM) to decline to less than 10% of its total AUM
by fiscal 2027 (ending March 31, 2027).
SCL has also implemented several measures to address the negative
perception of its management and governance. These include its
rebranding in fiscal 2025 and changing the shareholder and board
composition, although the senior management team is the same. More
recently, the company has also been improving transparency,
particularly in terms of the public disclosures related to its
legacy AUM book.
S&P expects SCL's capitalization to remain stronger than most rated
peers, mainly benefitting from the declining developer loan book,
recent capital issuances, and improving profitability amid limited
dividend payouts over the next 24 months.
SCL's concentration in real estate exposes it to potential
downturns in the sector. Although the share of developer loans in
the company's portfolio is declining, single-name concentration
remains significant. Its top 20 borrowers accounted for 23% of the
total loan portfolio, as of March 31, 2024. S&P projects SCL's
credit costs will be 1.0%-1.5% of loans in fiscals 2026 and
2027--broadly comparable to peers', and somewhat lower than that of
peers operating in riskier segments such as commercial vehicles or
personal loans.
SCL's access to funding is volatile and susceptible to market
perception. This is reflected in its higher cost of funding. The
lack of backing from a parent group and any negative perception
makes funding for fincos in India highly sensitive to market
confidence. SCL has faced significant refinancing challenges during
tight market conditions. The share of confidence-sensitive sources
such as sell-downs is higher for SCL than for rated peers. The
company's funding is also more concentrated than rated peers', with
significant reliance on its few top lenders, which are primarily
public sector entities.
That said, these risks are partially tempered by SCL's low
debt-to-equity ratio of about 2.2x as of Dec. 31, 2024, and its
broadly matched assets and liabilities. Overall, the company has
sufficient liquidity for the next 12 months, in our assessment.
Outlook
S&P said, "The stable rating outlook reflects our view that SCL
will continue to wind down its legacy stressed assets in an orderly
manner with a manageable effect on its financial performance. The
company's very strong capitalization should enable it to manage any
potentially elevated credit losses arising from the winding down of
its legacy mortgage book. We expect the company to maintain
sufficient liquidity over the next 12 months."
Downside scenario: S&P said, "We could downgrade SCL if the
company makes any major missteps during the portfolio cleanup
process leading to disruption in its business and financial
performance. This could happen if losses in its legacy book are
higher than we expect or its business stability gets hit
severely."
S&P could also lower the rating if the company loses access to its
top lenders amid market disruptions or due to any perceived
weakening in corporate governance standards. This could strain the
company's liquidity position.
Upside scenario: S&P could upgrade the company if it sees its
market position improving in a profitable and sustainable manner.
Sammaan Capital Ltd.
Ratings Score Snapshot
To From
Issuer Credit Rating B+/Stable/B B/Positive/B
SACP b+ b
Anchor bb+ bb
Business position Constrained (-2) Constrained (-2)
Capital & earnings Very Strong (+2) Very Strong (+2)
Risk position Moderate (-1) Moderate (-1)
Funding & liquidity Weak & Adequate (-2) Weak & Adequate (-2)
Comparable ratings analysis 0 0
Support 0 0
ALAC support 0 0
GRE support 0 0
Group support 0 0
Sovereign support 0 0
Additional factors 0 0
SACP--Stand-alone credit profile.
OUTLOOK REVISION
Bajaj Finance Ltd.
Primary credit analyst: Shinoy Varghese
Rationale
S&P said, "We revised the long-term rating outlook on Bajaj Finance
to positive from stable to reflect our view that the company will
benefit from a strengthening regulatory environment, particularly
for upper-layer fincos in India. Accordingly, we have revised
upward the SACP by one notch to 'bbb' from 'bbb-'.
"That said, the ratings remain capped at the level of the sovereign
credit rating on India (BBB-/Positive/A-3). This is because we
don't rate banks and fincos above the sovereign due to the direct
and indirect influence the sovereign has on financial institutions
operating locally.
Bajaj Finance is one of the largest NBFCs financing retail assets
in India. It has a strong market position in financing for consumer
durables and two- and three-wheelers, underpinning its reach in the
Indian retail market. In addition, the company consistently
maintains above-average profitability.
"We expect Bajaj Finance's financial performance to remain healthy
amid good operating conditions. The company's stable earnings and
asset quality, and continued access to low-cost (or differentiated)
funding will continue to support its credit profile. It also
benefits from being part of the broader Bajaj group. As a result,
the company has better funding access at a more competitive price
than that of peers.
"We view Bajaj Finance's capital and earnings as strong, given our
estimate that the company's pre-diversification RAC ratio will dip
to below 15% by fiscal 2026 (ending March 31) from 15.9% as of
March 31, 2024. This is because we expect the company to grow at a
faster rate than the industry, at 25%-27% over the next two
years."
Bajaj Finance's adequate underwriting standards and its largely
mass-affluent borrower profile (other than in the auto-finance
business or recent new ventures) temper the risk of its
concentration in unsecured consumer lending, which is inherently
higher-risk. S&P expects Bajaj Finance's credit costs to be about
2% of average loans over the next 12-24 months.
Outlook
S&P said, "The positive outlook on Bajaj Finance reflects that on
the sovereign credit rating on India. The rating on the company is
capped by the sovereign rating and will therefore move in tandem
with that on the sovereign. We expect Bajaj Finance to maintain its
strong market position and healthy capital position over the next
two years. We also expect the company's liquidity and funding
profiles to remain adequate over the period.
"Bajaj Finance's creditworthiness is somewhat insulated from any
stress in the group companies, in our view. That's because Bajaj
Finance is regulated and listed, which restricts its ability to
provide direct support to other members of the group in the case of
an extraordinary event. Moreover, the company is financially and
operationally independent from other group companies."
Upside scenario: S&P could upgrade Bajaj Finance if it raises its
sovereign rating on India.
Downside scenario: S&P would revise the outlook to stable if it
took a similar action on the sovereign rating outlook on India.
Bajaj Finance Ltd.--Ratings Score Snapshot
To From
Issuer Credit Rating BBB-/Positive/A-3 BBB-/Stable/A-3
SACP bbb bbb-
Anchor bb+ bb
Business position Strong(+1) Strong(+1)
Capital and earnings Strong (+1) Strong (+1)
Risk position Adequate (0) Adequate (0)
Funding and liquidity Adequate and Adequate and
Adequate(0) Adequate(0)
Comparable ratings analysis 0 0
Support 0 0
ALAC support 0 0
GRE support 0 0
Group support 0 0
Sovereign support 0 0
Additional factors -1 0
SACP--Stand-alone credit profile.
AFFIRMATIONS
Tata Capital Ltd.
Primary credit analyst: Shinoy Varghese
Rationale
S&P said, "We affirmed the ratings on Tata Capital
(BBB-/Positive/A-3) because we expect the company to continue to
benefit from being a strategically important member of the Tata
group. However, the ratings remain capped at the sovereign credit
rating on India because we don't rate banks and fincos above the
sovereign due to the direct and indirect influence the sovereign
has on financial institutions operating locally.
"At the same time, we have maintained the SACP at 'bb+'. We believe
Tata Capital will benefit from a strengthening regulatory
environment, particularly for upper-layer fincos in India.
"Given the current equity market volatility, we believe the
proceeds from an IPO or support from the parent may not be
sufficient to move the RAC ratio to above 10% on a sustained basis.
Accordingly, we have revised our assessment of the company's
capital to adequate. That said, we note upside potential to our
assessment.
"We expect Tata Capital to continue to benefit from the strong
brand name of, and association with, the Tata group. Being part of
the large conglomerate has also enabled the company to grow rapidly
and strengthen its franchise in recent years. Tata Capital
leverages the group's ecosystem to lend to the suppliers of Tata
group companies. In our view, the company will also benefit from
capital infusions from its parent to support growth. This, combined
with a conservative dividend policy and an upcoming IPO, will help
keep capitalization at adequate levels.
"We expect Tata Capital to maintain adequate asset quality,
although there are some downside risks. The company's rapid growth
has resulted in a significant portion of the loan book being
unseasoned. Furthermore, the merger with Tata Motors Finance Ltd.,
which has a higher proportion of stage 3 loans than Tata Capital,
will add additional pressure on asset quality."
Outlook
The positive outlook on Tata Capital reflects that on the sovereign
credit rating on India. The rating on Tata Capital is capped by the
sovereign rating and will therefore move in tandem with the
sovereign.
S&P expects Tata Capital to continue to benefit from being part of
the Tata group. The company's linkages with a strong Tata brand
should help it to solidify its market position while maintaining a
good capital position and adequate asset quality over the next two
years.
Downside scenario: S&P would revise the outlook on Tata Capital to
stable if it took a similar action on the sovereign rating on
India.
Upside scenario: S&P would upgrade Tata Capital over the next two
years if it raised the sovereign rating on India.
S&P could revise the SACP on the company upward if it expects its
RAC ratio to sustainably improve above 10%, benefitting from
capital infusions such as from the parent, and its potential IPO.
Tata Capital Ltd.--Ratings Score Snapshot
To From
Issuer Credit Rating BBB-/Positive/A-3 BBB-/Positive/A-3
SACP bb+ bb+
Anchor bb+ bb
Business position Adequate (0) Adequate (0)
Capital and earnings Adequate (0) Strong (+1)
Risk position Adequate (0) Adequate (0)
Funding and liquidity Adequate & Adequate &
Adequate (0) Adequate (0)
Comparable ratings analysis 0 0
Support 3 3
ALAC support 0 0
GRE support 0 0
Group support Strategically Strategically
Important (+3) Important (+3)
Sovereign support 0 0
Additional factors -2 -2
SACP--Stand-alone credit profile.
Piramal Capital and Housing Finance Ltd.
Primary credit analyst: Shinoy Varghese
Rationale
S&P said, "We have affirmed the ratings on Piramal Capital and
Housing Finance Ltd. (PCHFL; BB-/Stable/B), because we expect the
company to remain a core subsidiary of the Piramal Enterprises Ltd.
(PEL) group. Therefore, we equalize our ratings on the company with
the credit profile of the group.
"The group credit profile of PEL remains unchanged at 'bb-' because
we had already factored in the base-case expectation of significant
strengthening of the company, particularly the cleanup of legacy
stressed assets initiated by the current management team. Also, the
group profile reflects our view that post clean-up, the group's
earnings and asset quality should be comparable to other peers at a
similar rating level
"PCHFL, an upper-layer entity, is the main lending arm of the group
with AUM at about 4x the level of PEL's. Moreover, the group is
undergoing a restructuring. It has announced plans to merge PEL
with its subsidiary PCHFL and rename the merged entity Piramal
Finance Ltd."
The merged entity will become the main operating entity of the
group, alongside subsidiaries for insurance and other businesses.
The proposed merger is subject to the approval of regulators and
the stock exchange and may be completed by September 2025. The
effective date for the merger will be April 1, 2024.
S&P said, "We expect the merged entity to qualify as an upper-layer
finco under RBI's scale-based regulation framework. Therefore, we
believe that the benefits from a strengthening regulatory
environment, particularly for upper-layer entities in India, will
accrue to the group.
"We expect PEL's revenue to start to stabilize from 2026. The
company's revenue has been more volatile than that of most rated
Indian fincos, primarily due to the ongoing cleanup of its legacy
book. We forecast PEL's core earnings will improve to 2.4%-3.4% of
assets over the next two years, barring volatile and low
profitability in fiscal 2025 (ending March 31). Normalizing credit
losses, a lower margin drag from the legacy book, and declining
operating expenses will support the improvement.
"Per our base case, PEL's profitability is unlikely to improve
sufficiently to support fast growth over the next 24 months. As
such, we expect the group RAC ratio to trend down to 13%-14% over
the next two years, from about 15.4% as of March 31, 2024.
Above-average loan growth of 20%-25% that we anticipate in fiscals
2026-2027 will drive the decline.
"We expect PEL group's access to funding to remain susceptible to
market sentiment, despite some improvement. Management has been
trying to diversify and prolong the liabilities profile, but
funding remains somewhat concentrated, with a higher cost of funds
than peers'."
Outlook
S&P said, "The stable rating outlook on PCHFL reflects our view
that PEL group will continue to improve its profitability and asset
quality in an orderly manner over the next 12-18 months. We also
expect the group to gain market share over the period and that its
capital position will remain strong."
Downside scenario: S&P could lower its ratings on PCHFL if the PEL
group makes any major missteps during the cleanup process or if
high growth derails its transformation strategy.
Upside scenario: S&P could raise its ratings on PCHFL if the
group's business position improves such that it is comparable to
other large peers. This may happen once PEL successfully cleans up
legacy stressed assets, improves its revenue stability, and its
market position improves in a profitable and sustainable manner,
becoming comparable to other large, rated peers.
Piramal Capital and Housing Finance Ltd.--Ratings Score Snapshot
To From
Issuer Credit Rating BB-/Stable/B BB-/Stable/B
Entity Status within group Core Core
Piramal Enterprises Ltd.
Group credit profile bb- bb-
Anchor bb+ bb
Business position Moderate (-1) Moderate (-1)
Capital and earnings Strong (+1) Strong (+1)
Risk position Moderate (-1) Moderate (-1)
Funding & Liquidity Moderate & Moderate &
Adequate (-1) Adequate (-1)
Comparable rating analysis 0 1
Support 0 0
ALAC support 0 0
GRE support 0 0
Group support 0 0
Sovereign support 0 0
SACP--Stand-alone credit profile.
Ratings List
To From
Upgraded
Muthoot Finance Ltd.
Issuer Credit Rating BB+/Stable/B BB/Stable/B
Senior Secured BB+ BB
Shriram Finance Ltd.
Issuer Credit Rating BB+/Stable/B BB/Stable/B
Senior Secured BB+ BB
Sammaan Capital Ltd.
Issuer Credit Rating B+/Stable/B B/Positive/B
Senior Secured B+ B
Ratings Affirmed; Outlook Action
Bajaj Finance Ltd.
Issuer Credit Rating BBB-/Positive/A-3 BBB-/Stable/A-3
Senior Secured BBB-
Ratings Affirmed
Tata Capital Ltd.
Issuer Credit Rating BBB-/Positive/A-3
Senior Unsecured BBB-
Senior Secured BBB-
Piramal Capital and Housing Finance Ltd.
Issuer Credit Rating BB-/Stable/B
Senior Secured BB-
PIYUSH INFRATECH: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Piyush
Infratech Private Limited (PIPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 20 CRISIL D (Issuer Not
Cooperating)
Bank Guarantee 10 CRISIL D (Issuer Not
Cooperating)
Cash Credit 13.45 CRISIL D (Issuer Not
Cooperating)
Cash Credit 6.55 CRISIL D (Issuer Not
Cooperating)
Proposed Bank 0.5 CRISIL D (Issuer Not
Guarantee Cooperating)
Proposed Short Term 9.5 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Crisil Ratings has been consistently following up with PIPL for
obtaining information through letter and email dated February 7,
2025 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 PIPL, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on PIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
PIPL continues to be 'Crisil D/Crisil D Issuer not cooperating'.
PIPL was formed as a partnership between Mr Pralhad Panhale and Mr
Piyush Panhale in 1998 and was reconstituted as a private limited
company in June 2013. The Aurangabad (Maharashtra)-based company
undertakes irrigation projects, comprising barrages, earthen
concrete dams, and canals. It also undertakes civil construction
work for the Indian Railways. Apart from this, PIPL has two
windmills with a combined capacity of 1.25 megawatts.
PRABHU PETROCHEMICALS: CRISIL Keeps D Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shree Prabhu
Petrochemicals Private Limited (SPPPL) continue to be 'CRISIL
D/CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7 CRISIL D (Issuer Not
Cooperating)
Proposed Short Term 1 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 3 CRISIL D (Issuer Not
Cooperating)
Term Loan 2.5 CRISIL D (Issuer Not
Cooperating)
Crisil Ratings has been consistently following up with SPPPL for
obtaining information through letter and email dated February 7,
2025 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 SPPPL, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SPPPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SPPPL continues to be 'Crisil D/Crisil D Issuer not cooperating'.
SPPPL, incorporated in June, 2012, is promoted by Mr. Somnath Sakre
and Mr. Kachrulal Karva. It manufactures three, four and five-layer
water tankers of sizes ranging from 100 to 5000 litres. The
registered office is at Aurangabad, Maharashtra.
R.B. RICE: ICRA Keeps D Debt Rating in Not Cooperating Category
---------------------------------------------------------------
ICRA has kept the Long-Term ratings for the Bank facilities of R.B.
Rice Industries (RBRI) in the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]D ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term- 16.50 [ICRA]D; ISSUER NOT COOPERATING;
Fund based Rating Continues to remain under
Cash Credit 'Issuer Not Cooperating'
Category
As part of its process and in accordance with its rating agreement
with RBRI, ICRA has been trying to seek information from the entity
so as to monitor its performance. Further, ICRA has been sending
repeated reminders to the entity for payment of surveillance fee
that became due. Despite multiple requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with the aforesaid policy of
ICRA, the rating has been continued to the "Issuer Not Cooperating"
category. The rating is based on the best available information.
R.B. Rice Industries (RBRI) is a partnership firm established in
2000. The firm is primarily engaged in milling of basmati rice.
RBRI's milling unit is based in Fazilka, Ferozepur, Punjab with an
installed capacity of 4 tons/hr. The firm purchases paddy from the
local markets in and around Jalalabad. The firm is also involved in
the export of rice to countries such as Iran, the UAE and Iraq.
R.K. SCAN: CRISIL Keeps B- Debt Rating in Not Cooperating
---------------------------------------------------------
CRISIL Ratings said the rating on bank facilities of R.K. Scan
Centre continues to be 'CRISIL B-/Stable Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 9 CRISIL B-/Stable (Issuer Not
Cooperating)
Crisil Ratings has been consistently following up with R.K. Scan
for obtaining information through letter and email dated February
7, 2025 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 R.K. Scan, which restricts
Crisil Ratings' ability to take a forward looking view on the
entity's credit quality. Crisil Ratings believes that rating action
on R.K. Scan is consistent with 'Assessing Information Adequacy
Risk'. Based on the last available information, the rating on bank
facilities of R.K. Scan continues to be 'Crisil B-/Stable Issuer
not cooperating'.
Incorporated in the year 1995 R.K. Scan is propertiorship firm run
by Mr. Kovi Ramana Kumar which provides various scan services like
MRI Scan, Ultrasound Scan and other Laboratory Services. The Entity
has 2 scan centers in Guntur.
RAM AUTOTECH: CRISIL Keeps D Debt Ratings in Not Cooperating
------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Shri Ram
Autotech Private Limited (SRAPL) continue to be 'CRISIL D/CRISIL D
Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 1.0 CRISIL D (Issuer Not
Cooperating)
Overdraft Facility 6.5 CRISIL D (Issuer Not
Cooperating)
Crisil Ratings has been consistently following up with SRAPL for
obtaining information through letter and email dated February 7,
2025 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 SRAPL, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SRAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
SRAPL continues to be 'Crisil D/Crisil D Issuer not cooperating'.
SRAPL was formed as a proprietorship firm in 1992 and was
reconstituted as a private limited company in 2010. The company
manufactures auto components such as sheet metals, plastic moulded
components, flanges, jigs, and fixtures. Its manufacturing units
are in Gurugram and Faridabad in Haryana. The company is promoted
by Ramesh Sharma and family.
RAM KRISHNA: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of Ram Krishna
Tea Factory - Uttar Dinajpur (RKTF) continue to be 'CRISIL D/CRISIL
D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 0.18 CRISIL D (Issuer Not
Cooperating)
Cash Credit 2.30 CRISIL D (Issuer Not
Cooperating)
Proposed Long Term 0.32 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 2.25 CRISIL D (Issuer Not
Cooperating)
Crisil Ratings has been consistently following up with RKTF for
obtaining information through letter and email dated February 7,
2025 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 RKTF, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on RKTF
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the ratings on bank facilities of
RKTF continues to be 'Crisil D/Crisil D Issuer not cooperating'.
Incorporated in September, 2014 in Sonarpur Hat, RKTF is engaged in
manufacturing of CTC tea. The firm has its own processing unit with
total manufacturing capacity of 8.5 lakh kg per annum. It is
promoted by Srimati Krishna Bhagat, Mr. Sushil Bhagat, Mr. Babanlal
Bhagat, Mr. Lalan Bhagat, Mr. Panchami Bhagat and Mr. Manoj
Bhagat.
RELIANCE CAPITAL: Exits Insolvency as IndusInd-Backed Plan Gets OK
------------------------------------------------------------------
CNBC-TV18 reports that Reliance Capital Limited (RCL) has
successfully exited insolvency after the implementation of its
approved resolution plan, making it the first Non-Banking Financial
Company-Core Investment Company (NBFC-CIC) to complete resolution
under the Insolvency and Bankruptcy Code (IBC).
The Reserve Bank of India (RBI) had superseded the company's board
and appointed Nageswara Rao Y as the administrator under Section
45-IA of the RBI Act, 1935.
Following this, the National Company Law Tribunal (NCLT), Mumbai
Bench, admitted the corporate insolvency resolution process (CIRP)
application on December 6, 2021, officially placing Reliance
Capital under resolution.
CNBC-TV18 relates that the resolution plan, submitted by IndusInd
International Holdings Limited, was approved by the Committee of
Creditors (CoC) and subsequently received all necessary regulatory
clearances.
According to CNBC-TV18, the acquisition was backed by approvals
from the Reserve Bank of India (RBI), the Insurance Regulatory and
Development Authority of India (IRDAI), the Securities and Exchange
Board of India (SEBI), the Department for Promotion of Industry and
Internal Trade (DPIIT), and the Competition Commission of India
(CCI).
With all required approvals in place, the resolution plan was
successfully implemented on March 19, 2025, leading to the
reconstitution of Reliance Capital's board.
The resolution has resulted in payments exceeding ₹10,000 crore
to various stakeholders, bringing closure to one of India's most
high-profile insolvency cases.
About Reliance Capital
Headquartered in Mumbai, India, Reliance Capital Limited --
https://www.reliancecapital.co.in/ -- a non-banking financial
company, primarily engages in lending and investing activities in
India, Singapore, and Mauritius. The company operates through
Finance & Investment, General Insurance, Life Insurance, Commercial
Finance, Home Finance, and Others segments. It offers life, health,
and general insurance products; brokerage and distribution
services, including stock broking, wealth management, and third
party distribution; and commercial and home finance services, such
SME, retail, microfinance, renewable, affordable housing, and home
loans, as well as loans against property and construction finance.
The company also provides asset reconstruction, institutional
broking, and proprietary investments services, as well as other
financial and allied services. The company was formerly known as
Reliance Capital & Finance Trust Limited and changed its name to
Reliance Capital Limited in January 1995.
On Nov. 29, 2021, the Reserve Bank of India superseded Reliance
Capital's board following payment defaults and governance issues,
and appointed Nageswara Rao Y as the administrator for the
bankruptcy process, Financial Express said. The regulator also
filed an application for initiation of Corporate Insolvency
Resolution Process (CIRP) against the company before the National
Company Law Tribunal's (NCLT) Mumbai bench.
In an order dated Dec. 6, 2021 of the National Company Law
Tribunal, Mumbai (NCLT), corporate insolvency resolution process
has been initiated against Reliance Capital as per the provisions
of the Insolvency and Bankruptcy Code (IBC), 2016.
In February 2022, RBI appointed administrator invited EoIs for sale
of Reliance Capital assets and subsidiaries.
Reliance Capital had a debt of over INR40,000 crore, and four
applicants had initially bid with resolution plans. However, the
committee of creditors rejected all four plans for lower bid
values, and a challenge mechanism was initiated in which IIHL and
Torrent Investments participated, The Economic Times said.
RKDS EXPORTS: Liquidation Process Case Summary
----------------------------------------------
Debtor: RKDS Exports Private Limited
100A, N.S.C. Bose Road, Kolkata,
West Bengal 700040, India
Liquidation Commencement Date: December 19, 2024
Court: National Company Law Tribunal, Kolkata Bench-II
Liquidator: Rajesh Lihala
11, Crooked Lane, Kolkata - 700069
Email: lihalaco@gmail.com
Email: cirp.rkdsexports@gmail.com
Last date for
submission of claims: April 3, 2025
S HOMES: CRISIL Keeps D Debt Ratings in Not Cooperating Category
----------------------------------------------------------------
CRISIL Ratings said the ratings on bank facilities of S Homes (S
Homes) continue to be 'CRISIL D Issuer Not Cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 0.2 CRISIL D (Issuer Not
Bank Loan Facility Cooperating)
Term Loan 9.8 CRISIL D (Issuer Not
Cooperating)
Crisil Ratings has been consistently following up with S Homes for
obtaining information through letter and email dated February 7,
2025 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 S Homes, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on S
Homes is consistent with 'Assessing Information Adequacy Risk'.
Based on the last available information, the rating on bank
facilities of S Homes continues to be 'Crisil D Issuer not
cooperating'.
S Homes is into residential real estate development in and around
Nellore, Andhra Pradesh. The partners of the firm are Mr. S V
Ramanaiah and family, Mr. Srinivasulu.
SAKSHI AUTO: CRISIL Keeps B- Debt Ratings in Not Cooperating
------------------------------------------------------------
Crisil Ratings said the ratings on bank facilities of Sakshi Auto
Parts Private Limited (SAPL) continue to be 'Crisil B-/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 2 CRISIL B-/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 8 CRISIL B-/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Crisil Ratings has been consistently following up with SAPL for
obtaining information through letter and email dated February 7,
2025 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 SAPL, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SAPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SAPL continues to be 'Crisil B-/Stable Issuer not cooperating'.
SAPL, incorporated in October 2011, was promoted by Mr Jitendra
Gupta and Ms Premsheela Gupta. The company executes smelting and
refining of battery scrap to recover lead. Its manufacturing
facility is in Shikrapur (Maharashtra).
SAMYAKTH FINSERV: Voluntary Liquidation Process Case Summary
------------------------------------------------------------
Debtor: Samyakth Finserv Private Limited
1106 Marathon Icon,
Opp. Peninsula Corporate Park
Off G K Marg, Lower Parel (W)
Mumbai, Maharashtra, India 400013
Liquidation Commencement Date: March 1, 2025
Court: National Company Law Tribunal, Mumbai Bench
Liquidator: Pinkush Jaiswal
204 Kanchan Apartment, Tikekar Road
Beside Dinanath High School
Dhantoli, Nagpur, Maharashtra India 440012
Email: sfplrp@gmail.com
Mobile: +91 9422507748
Last date for
submission of claims: March 31, 2025
SANGANI INFRASTRUCTURE: CRISIL Keeps D Ratings in Not Cooperating
-----------------------------------------------------------------
Crisil Ratings said the ratings on bank facilities of Sangani
Infrastructure India Private Limited (SIIPL) continue to be 'Crisil
D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 40.55 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 8.45 CRISIL D (ISSUER NOT
COOPERATING)
Term Loan 19.5 CRISIL D (ISSUER NOT
COOPERATING)
Term Loan 16.5 CRISIL D (ISSUER NOT
COOPERATING)
Crisil Ratings has been consistently following up with SIIPL for
obtaining information through letter and email dated February 7,
2025 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 SIIPL, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SIIPL
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SIIPL continues to be 'Crisil D Issuer not cooperating'.
SIIPL, incorporated in 2007 in Ahmedabad, undertakes residential
and commercial real estate development. It is promoted by Mr
Hanubhai Sangani, Mr Arvindbhai Sangani, Mr Bhanubhai Sangani, and
Mr Rakeshkumar Limbasia. It is a part of the Sangani group that
develops real estate in Gujarat.
SHAKTI CONSTRUCTION: ICRA Lowers Rating on INR4cr LT Loan to B+
---------------------------------------------------------------
ICRA has moved the ratings for the bank facilities of Shree Shakti
Construction (SSC) to the 'Issuer Not Cooperating' category. The
ratings are denoted as "[ICRA]B+(Stable); ISSUER NOT COOPERATING
/[ICRA]A4; ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term– 4.00 [ICRA]B+ (Stable); ISSUER NOT
Fund-based– COOPERATING; rating downgraded
Cash credit from [ICRA]BB- (Stable) and
moved to 'ISSUER NOT
COOPERATING' category
Short-term– 7.00 [ICRA]A4; ISSUER NOT
Non-fund based– COOPERATING; Rating moved to
Bank guarantee 'ISSUER NOT COOPERATING'
category
As a part of its process and in accordance with its rating
agreement with SSC, ICRA has been trying to seek information from
the entity so as to monitor its performance. Further, ICRA has been
sending repeated reminders to the entity for payment of
surveillance fee that became due. Despite multiple requests by
ICRA, the entity's management has remained non-cooperative. In
absence of requisite information and in line with the aforesaid
policy of ICRA, the rating has been moved to the "Issuer Not
Cooperating" category.
Established in 1997 as a proprietorship concern by Mr. Deepak
Thacker, SSC is involved in the execution of civil construction
contracts, mainly building construction works for Government and
semi-Government departments in Gujarat. SSC was converted into a
partnership firm in May 2015. The firm is registered as a Class-AA
contractor with the Road and Building Department, under the
Government of Gujarat.
SSC's ratings were moved to 'Issuer Non Cooperation' category by
CRISIL Ratings Ltd (CRISIL) vide its press release dated June 26,
2020 and by CARE Ratings Ltd (CARE) vide its press release dated
February 12, 2019 as SSC did not cooperate in submission of
requisite information for conducting the rating review. The ratings
of SSC continue to remain in the non-cooperation category with
CRISIL and CARE as of March 2025.
SHINDE DEVELOPERS: Insolvency Resolution Process Case Summary
-------------------------------------------------------------
Debtor: Shinde Developers Private Limited
Registered Address:
Sector No.132/2-3, Plot No.22,
Gulmohar Park, ITI Road, Aundh,
Pune, Maharashtra, India, 411007
Insolvency Commencement Date: March 4, 2025
Court: National Company Law Tribunal, Mumbai Bench
Estimated date of closure of
insolvency resolution process: August 31, 2025
Insolvency professional: Rikenkumar Navinchandra Vira
Interim Resolution
Professional: Rikenkumar Navinchandra Vira
703, Ace Florence, B P Cross Road
Number 4, Neelkanth Nagar,
Near Devidayal Garden, Mulund West,
Mumbai - 400 080
Email ID: rikenvira2002@gmail.com
Email ID: shinde.cirp@gmail.com
Last date for
submission of claims: March 18, 2025
SHRUTI RICE: CRISIL Keeps D Debt Ratings in Not Cooperating
-----------------------------------------------------------
Crisil Ratings said the ratings on bank facilities of SRM continue
to be 'Crisil D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit/ 3 CRISIL D (ISSUER NOT
Overdraft facility COOPERATING)
Proposed Long Term 4 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Crisil Ratings has been consistently following up with SRM for
obtaining information through letter and email dated February 7,
2025 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 SRM, which restricts Crisil
Ratings' ability to take a forward looking view on the entity's
credit quality. Crisil Ratings believes that rating action on SRM
is consistent with 'Assessing Information Adequacy Risk'. Based on
the last available information, the rating on bank facilities of
SRM continues to be 'Crisil D Issuer not cooperating'.
SRM, set up in 2004 by Mr Sandeep Singh, is based in Allahabad,
Uttar Pradesh. It undertakes rice processing activities and trading
of paddy.
SPICEJET LTD: Faces Fresh Insolvency Plea from PT BNN Airlines
--------------------------------------------------------------
Livemint.com reports that SpiceJet Ltd is facing fresh insolvency
proceedings, this time from Indonesia's PT BBN Airlines over unpaid
lease rentals totalling US$5.94 million.
The National Company Law Tribunal (NCLT), Delhi bench, heard the
case on March 21 but has yet to issue a notice after SpiceJet
sought time to respond. The next hearing has been scheduled for
April 21, Livemint.com relays.
According to Livemint.com, PT BBN Airlines claims SpiceJet leased
three Boeing aircraft under specific agreements, took possession on
June 9, 2024, and used them for operations. However, the airline
allegedly defaulted on lease payments between May and September
2024.
According to the lessor, SpiceJet acknowledged the outstanding dues
multiple times via emails and WhatsApp messages and never disputed
them before the demand notice was issued. Partial payments were
also made, reinforcing the airline's liability.
"In light of the various acknowledgements, your lordships, I would
say that this is a fit case for insolvency to be initiated for
SpiceJet," PT BBN Airlines' counsel argued, urging the tribunal to
act swiftly, Livemint.com relays.
Livemint.com says SpiceJet's senior counsel, Krishnendu Datta,
countered that the aircraft were delivered late, causing financial
and operational losses, a fact the lessor acknowledged in
communications but omitted from the petition. He added that an
early termination agreement had been signed but was voided by the
lessor before the insolvency plea.
SpiceJet had already lodged claims for damages before receiving the
demand notice, Datta said, urging the tribunal to consider the
airline's full defence before issuing a notice, Livemint.com adds.
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.
SpiceJet has faced a series of insolvency petitions from various
parties in the National Company Law Tribunal (NCLT) and and the
appellate tribunal NCLAT over pending dues. These include Willis
Lease Finance Wilmington Trust SP Services (Dublin), and Engine
Lease Finance BV.
As reported in the Troubled Company Reporter-Asia Pacific in late
September 2024, the NCLT) on Sept. 23 issued notice to SpiceJet
over the plea filed by one of its operational creditors, Techjockey
Infotech Pvt Ltd, which claimed a default of nearly INR1.2 crore
owed by SpiceJet against software services availed by them.
SUPREME INFRASTRUCTURE: Liquidation Process Case Summary
--------------------------------------------------------
Debtor: Supreme Infrastructure BOT Private Limited
4th Floor, CTS No. 16/4,
Supreme House, Jain Mandir Road, Powai,
Opp, IIT Main Gate,
Mumbai, Maharashtra 400076
Liquidation Commencement Date: February 19, 2025
Court: National Company Law Tribunal, Mumbai Bench
Liquidator: Ram Ratan Kanoongo
C/o Headway Resolution and
Insolvency Services Pvt. Ltd.
708, 7th Floor, Rajeha Centre,
Nariman Point, Mumbai 400021
Maharashtra
Email: rrkanoongo@gmail.com
cirp.supremebot@gmail.com
Last date for
submission of claims: March 21, 2025
TALIN CONSULTANCY: Voluntary Liquidation Process Case Summary
-------------------------------------------------------------
Debtor: Talin Consultancy Services Private Limited
189 & 190, lst Stage, 3rd Block,
15th Cross, HBR Layout, Kacharakanahalli,
Kallyanagar, Post, Bangalore,
Karnataka, India 560043
Liquidation Commencement Date: March 1, 2025
Court: National Company Law Tribunal, Bengaluru Bench
Liquidator: Thirupal Gorige
No. 87, 2nd Floor, 21st Cross,
7th main, N.S. Palya, BTM 2nd Stage,
Bangalore - 560076, Karnataka, India
Cell: +91 94483 84064
LL: +91 80 7963 4233
Email: gthirupal@ gmail.com
Last date for
submission of claims: March 31, 2025
TALIN INTERIOR: Voluntary Liquidation Process Case Summary
----------------------------------------------------------
Debtor: Talin Interior Private Limited
189 & 190, lst Stage, 3rd Block,
15th Cross, HBR Layout, Kacharakanahalli,
Kalyanagar, Post, Bangalore,
Karnataka, India 560043
Liquidation Commencement Date: March 1, 2025
Court: National Company Law Tribunal, Bengaluru Bench
Liquidator: Thirupal Gorige
No. 87, 2nd Floor, 21st Cross,
7th main, N.S. Palya, BTM 2nd Stage,
Bangalore - 560076, Karnataka, India
Cell: +91 94483 84064
LL: +91 80 7963 4233
Email: gthirupal@ gmail.com
Last date for
submission of claims: March 31, 2025
TALIN KITCHEN: Voluntary Liquidation Process Case Summary
---------------------------------------------------------
Debtor: Talin Kitchen Solutions Private Limited
189 & 190, lst Stage, 3rd Block,
15th Cross, HBR Layout, Kacharakanahalli,
Kalyanagar, Post, Bangalore,
Karnataka, India 560043
Liquidation Commencement Date: March 1, 2025
Court: National Company Law Tribunal, Bengaluru Bench
Liquidator: Thirupal Gorige
No. 87, 2nd Floor, 21st Cross,
7th main, N.S. Palya, BTM 2nd Stage,
Bangalore - 560076, Karnataka, India
Cell: +91 94483 84064
LL: +91 80 7963 4233
Email: gthirupal@gmail.com
Last date for
submission of claims: March 31, 2025
WANAPARTHY MUNICIPALITY: ICRA Keeps B+ Issuer Rating in Not Coop.
-----------------------------------------------------------------
ICRA has kept the Long-Term rating of Wanaparthy Municipality in
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B+ (Stable); ISSUER NOT COOPERATING".
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Issuer Rating - [ICRA]B+ (Stable); ISSUER NOT
COOPERATING; Rating Continues
to remain under issuer not
cooperating category
As part of its process and in accordance with its rating agreement
with Wanaparthy Municipality, ICRA has been trying to seek
information from the entity so as to monitor its performance.
Further, ICRA has been sending repeated reminders to the entity for
payment of surveillance fee that became due. Despite multiple
requests by ICRA, the entity's management has remained
non-cooperative. In the absence of requisite information and in
line with the aforesaid policy of ICRA, the rating has been
continued to the "Issuer Not Cooperating" category. The rating is
based on the best available information.
The WPM, being an ULB, provides civic services to the Wanaparthy
town. The town is the headquarter of the recently formed Wanaparthy
district of Telangana and is located at a distance of around 150 km
from the state capital, Hyderabad. The major economic activity in
the region is agriculture, which primarily includes sugar, rice,
fruits and vegetables. According to Census 2011, Wanaparthy covers
an area of 27.34 sq km and has a population of 61,170, of which 48%
are slum dwellers. The ULB is governed by the provisions of the
Telangana State Municipalities Act, (TSM Act) 1965. The major
functions of the WPM include water supply, solid waste management,
repair and maintenance of roads, street lighting and amenities like
shopping stalls, community hall, playgrounds, parks/gardens. The
council of the WPM comprises 26 Ward Councillors headed by a
Chairperson. The executive wing is headed by a Municipal
Commissioner, who is appointed by the GoTS and is supported by the
head of various departments.
=================
I N D O N E S I A
=================
NICKEL INDUSTRIES: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed Nickel Industries Limited's (NIC)
Long-Term Issuer Default Rating (IDR) at 'B+'. The Outlook is
Stable. Fitch has also affirmed NIC's senior unsecured notes at
'B+' with a Recovery Rating of 'RR4'.
The affirmation reflects its expectation that NIC will reduce its
EBITDA leverage below its negative sensitivities of 3.5x in 2025,
driven by stable volumes and declining capex as its major Excelsior
Nickel HPAL Project (ENC) approaches commissioning in 2H25.
The Stable Outlook reflects its expectations that NIC's cash flow
generation will improve in 2025, although there is limited headroom
in the rating for any further deviation in its forecasts. Its
liquidity appears to be adequate to meet its 2025 debt amortisation
of USD121 million, given its cash balance of USD222 million and an
expected USD120 million in tax returns. The company also has a
USD253 million payment for the ENC acquisition, but Fitch believes
there is some payment flexibility.
Key Rating Drivers
Low Ratings Headroom: Fitch expects NIC's EBITDA leverage to
improve as the company repays amortisation on its debt in 2025,
EBITDA improves due to stable volumes, and costs decrease. Fitch
forecasts leverage to decline to 3.2x in 2025, below the level of
3.5x where Fitch would consider taking negative rating action.
Tight Liquidity: NIC will have sufficient funds to cover its
liquidity needs in 2025, including USD121 million of debt
amortisation and USD253 million of investments in ENC, based on its
cash balance of USD222 million at end-2024 and expected tax refunds
of USD120 million. Fitch believes NIC has some flexibility in
payments to its major shareholder for ENC. However, Fitch could
take negative rating action if NIC's liquidity deteriorates due to
unforeseen operational changes or changing regulations.
Elevated Regulatory Risks: NIC's 2024 results showed a progressive
increase in mining costs due to changes in Indonesian mining
regulations. The company's operations were affected in January and
February 2024 by the delayed renewal of the Kerja dan Anggaran
Biaya (RKAB) Indonesian mining licence. Fitch expects the 2025
results will also be affected by revised regulations, including
raised royalty rates and a new foreign-exchange control policy.
NIC's rating incorporates its exposure to higher-risk mining
jurisdictions, including less stable regulation. Fitch views the
changing regulations as a continuing challenge to mining operations
in Indonesia. Fitch also believes that the changes will have a less
material impact on companies like NIC due to its size and
integration in downstream operations. However, if the impact of
further regulatory reforms deviates from its expectations, that
could affect NIC's credit profile.
Cost Position Protects Profitability: NIC has a solid cash cost
position at its nickel pig iron (NPI) facilities and ownership of
power stations at the Angel Nickel Project (ANI) and Oracle Nickel
Project (ONI). Average cash costs at its RKEFs declined to
USD10,233/tonne (t) in 2024 from USD11,385/t in 2023, supporting
the 12% EBITDA margin for RKEFs. Fitch forecasts the margin to
improve to 15% on stable volumes in 2025, and to 18% by 2027
despite an expected moderation in nickel prices to USD15,000 under
Fitch's price deck.
Acquisitions Improve Self-Sufficiency. NIC's binding acquisition
agreements for the Sampala project consist of three nickel mining
licences covering 6,654 hectares. The company targets first
production by early 2026, with USD50 million in capex. Sampala will
increase self-sufficiency of nickel ore feedstock at NIC's RKEFs
and HPAL processing operations to 100%, supporting the stability of
supply.
Appetite for New Investments: Fitch expects capex to decline in
2025 following the completion of the ENC project. NIC continues
focusing on value, creating nickel resource assets in addition to
its recent acquisitions of the Sampala and Siduarsi projects. The
company also has the option of expanding ENC to Stage 2 and double
production to 144,000t, from 72,000t of contained nickel
equivalent.
NIC's focus on nickel assets may maintain its capital intensity
over a longer period. However, the company has demonstrated an
ability to sequence its major developments and raise capital to
reduce pressure on the balance sheet.
Improving Diversification: Fitch expects NIC's business profile to
improve over 2026-2027 as ENC achieves full capacity. The project
will have flexibility to produce hydroxide precipitate, nickel
sulphate and nickel cathode. It would also reduce NIC's dependence
on Tsingshan Holdings Group as the company's major off-taker. Fitch
expects ENC to deliver an incremental EBITDA of around USD200
million on average in 2026-2028 (on an attributable basis), which
is equivalent to 30% of NIC's EBITDA.
Peer Analysis
NIC is a relatively large nickel producer with integrated upstream
operations, supplying around 60% of the feedstock for its
processing facilities. This is similar to Cleveland-Cliffs Inc.
(BB-/Stable). NIC's low-cost operations place it in a better
position on the industry cost curve compared with Cleveland-Cliffs
and United States Steel Corporation (BB/Stable). However, NIC's
competitive cost position has been under increasing pressure due to
rising costs from mining regulation changes in Indonesia.
NIC has operated with a materially higher average EBITDA margin of
21% over the last three years, compared with a 8%-16% range among
its peers. However, higher-rated peers are typically significantly
larger in operational scale and revenue generation, including
Cleveland-Cliffs, United States Steel, and JSW Steel Limited
(BB/Stable). They also tend to be more diversified and have higher
exposure to value-added products. This gap could be narrowed over
the short term when NIC's major project ENC produces at full
capacity.
NIC's financial profile has worsened compared with the peer
average. Still, its credit metrics remain comparable to JSW
Steel's, which has also required large capex in a weak commodity
price environment, and Fitch expects NIC's leverage to improve in
2025.
Key Assumptions
Fitch's Key Assumptions Within the Rating Case for the Issuer:
- Nickel spot prices of USD16,000/t in 2025 and USD15,000/t
thereafter;
- NPI price of around 22% to London Metal Exchange nickel prices on
average in 2025-2028;
- Stable production of NPI at Ranger Nickel (RNI), ANI, ONI and
Hengjaya Nickel (HNI) in 2025-2028;
- Capex on the ENC project of USD253 million in 2025, and first
production in October 2025;
- Fitch-calculated EBITDA margin of between 19% and 32% in
2025-2028;
- Dividend payout ratio at 40% in 2025-2028.
Recovery Analysis
The recovery analysis assumes NIC would be reorganised as a going
concern in bankruptcy rather than liquidated. Fitch assumes a 10%
administrative claim.
Its going-concern EBITDA estimate of USD500 million reflects its
view of a sustainable, post-reorganisation EBITDA level on which
Fitch bases the enterprise valuation, as well as the mid-cycle
nickel price and stable lateritic nickel rotary kiln operations at
HNI, RNI, ANI, ONI and the ENC project commencing production in
2H25.
Fitch uses a multiple of 5x to estimate a value for NIC, because of
its geographical concentration in Indonesia and smaller operational
scale compared with peers. This is despite stronger growth
prospects following ONI's production commencement.
The going-concern enterprise value corresponds to a 'RR3' Recovery
Rating for NIC's senior unsecured bonds after adjusting for
administrative claims and secured credit facilities. Nevertheless,
Fitch rates the senior unsecured notes at 'B+' and 'RR4', because
NIC's operating assets are located in Indonesia. Under its
Country-Specific Treatment of Recovery Ratings Criteria, Indonesia
is classified under the Group D of countries in terms of creditor
friendliness and Recovery Ratings are subject to a cap at 'RR4'.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
- An increase in EBITDA leverage to above 3.5x for a sustained
period;
- A decrease in EBITDA interest coverage to below 4.0x for a
sustained period;
- Weakening funding access;
- Weakening of Tsingshan's ability to make timely payments to NIC.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
- An increase in production scale, while demonstrating improved
customer diversification;
- EBITDA leverage sustained below 2.5x.
Liquidity and Debt Structure
NIC's liquidity decreased to USD222 million in cash by end-2024,
from USD779 million in December 2023. It expects to have tax
returns of USD120 million in 2025 that, along with expected
positive FCF, would cover USD121 million of debt amortisation and
the last payment of USD253 million for the acquisition of 55% of
ENC in 2025.
Issuer Profile
NIC is a producer of Class 2 and Class 1 nickel, with RKEF smelter
and mining assets in Indonesia. The construction of its ENC HPAL
project is in progress and scheduled for commissioning in 2H25.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
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 Recovery Prior
----------- ------ -------- -----
Nickel Industries Limited LT IDR B+ Affirmed B+
senior unsecured LT B+ Affirmed RR4 B+
===============
M A L A Y S I A
===============
SAPURA ENERGY: MACC Visits Company's Office For Ongoing Probe
-------------------------------------------------------------
The Malaysian Reserve reports that Sapura Energy Bhd (SEB)
confirmed on March 20 that officers from the Malaysian
Anti-Corruption Commission (MACC) visited its office at Menara PNB,
Jalan Tun Razak, as part of an ongoing investigation.
This comes after news reports stating that MACC had initiated two
investigation papers involving the company, the report notes.
In a statement, SEB assured stakeholders: "SEB is fully cooperating
with the agency and will provide the necessary information to
support their inquiries."
The Malaysian Reserve says the company also reiterated its
commitment to upholding strong standards of corporate governance,
stating,
"As a responsible publicly listed entity, we remain committed to
upholding strong standards of corporate governance, transparency,
and integrity in all our activities."
The Malaysian Reserve relates that SEB emphasized that business
operations are continuing as usual and pledged to provide further
updates "should there be any significant developments."
This announcement follows a previous statement on March 18, 2025,
where SEB stated it had not been contacted by MACC regarding
investigations into alleged bribery and fund misappropriation, the
report adds.
About Sapura Energy
Sapura Energy Berhad, formerly SapuraKencana Petroleum Berhad, is
engaged in investment holding and the provision of management
services to its subsidiaries. The Company's segments include
Engineering and Construction (E&C), Drilling, Energy and
Corporate.
Sapura Energy Bhd announced on May 31, 2022, that it has been
classified as a PN17 listed issuer due to going concerns on its
shareholders' equity position less than 50% of its share capital.
Sapura Energy has become an affected listed issuer under PN17 on
the basis that its shareholders' equity position of MYR85 million
as at Jan. 31, 2022 was less than 50% of its share capital of
MYR10.9 billion.
=====================
N E W Z E A L A N D
=====================
BLACK DOOR: Court to Hear Wind-Up Petition on April 4
-----------------------------------------------------
A petition to wind up the operations of Black Door Limited will be
heard before the High Court at Auckland on April 4, 2025, at 10:00
a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Jan. 20, 2025.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
BLAKEMAN FAMILY: Brenton Hunt Appointed as Receiver and Manager
---------------------------------------------------------------
Brenton Hunt of Insolvency Matters on March 18, 2025, was appointed
as receiver and manager of Blakeman Family Trust.
The receiver and manager may be reached at:
Brenton Hunt
PO Box 13400
City East
Christchurch 8141
CLOUDY BAY: In Liquidation Post-Receivership Sale
-------------------------------------------------
BusinessDesk reports that three companies in the Cloudy Bay Clams
group have been put in liquidation after the seafood business was
sold as a going concern last year. On Feb. 25, an official assignee
was appointed for Cloudy Bay Holdings, Cloudy Bay Marine, and
Cloudy Bay Seafood.
The Marlborough seafood group was placed in receivership by the
Bank of New Zealand in April last year, BusinessDesk recalls.
BusinessDesk notes that Richard Nacey and John Fisk of
PricewaterhouseCoopers (PwC) were appointed receivers of the group
and traded the business while they sought a buyer.
DIXON HAULAGE: Creditors' Proofs of Debt Due on April 14
--------------------------------------------------------
Creditors of Dixon Haulage Limited are required to file their
proofs of debt by April 14, 2025, to be included in the company's
dividend distribution.
The High Court at Invercargill appointed Kristal Pihama and Luke
Norman of KPMG as liquidators on March 13, 2025.
LIGARE LIMITED: Creditors' Proofs of Debt Due on April 15
---------------------------------------------------------
Creditors of Ligare Limited are required to file their proofs of
debt by April 15, 2025, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on March 11, 2025.
The company's liquidator is Ryan Eathorne of InSolve Partners.
NOVELTY GROUP: Court to Hear Wind-Up Petition on March 28
---------------------------------------------------------
A petition to wind up the operations of Novelty Group Limited will
be heard before the High Court at Auckland on March 28, 2025, at
10:00 a.m.
The Commissioner of Inland Revenue filed the petition against the
company on Dec. 17, 2024.
The Petitioner's solicitor is:
Hosanna Tanielu
Inland Revenue, Legal Services
5 Osterley Way
Manukau City
Auckland 2104
=================
S I N G A P O R E
=================
AIMS CANADA: Creditors' Meetings Set for April 3
------------------------------------------------
Aims Canada Immigration Specialist Pte. Ltd. will hold a meeting
for its creditors on April 3, 2025, at 11:00 a.m. via Zoom.
Agenda of the meeting includes:
a. to lay before the creditors a full statement of the affairs
of the Company, showing the assets and liabilities of the
Company;
b. to consider and if though fit, to appoint a Committee of
Inspection; and
c. to consider any other matters which may properly be brought
before the meeting that is relevant to the liquidation of
the Company.
ATHENA PARTNERS: Court to Hear Wind-Up Petition on April 4
----------------------------------------------------------
A petition to wind up the operations of Athena Partners Pte. Ltd.
will be heard before the High Court of Singapore on April 4, 2025,
at 10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
March 13, 2025.
The Petitioner's solicitors are:
M/s Advent Law Corporation
111 North Bridge Road
#25-03 Peninsula Plaza
Singapore 179098
JLJB CORPORATIONS: Creditors' Meetings Set for April 2
------------------------------------------------------
JLJB Corporations Pte. Ltd. will hold a meeting for its creditors
on April 2, 2025, at 2:30 p.m., via Zoom.
Agenda of the meeting includes:
a. to receive a full statement of the company's affairs
together with a list of creditors and the estimated amount
of their claims;
b. to appoint liquidators;
c. to form a committee of inspection of not more than
5 members, if thought fit; and
d. any other business.
KSE MARINE: Court Enters Wind-Up Order
--------------------------------------
The High Court of Singapore entered an order on March 14, 2025, to
wind up the operations of KSE Marine Works Pte. Ltd.
DBS Bank Ltd filed the petition against the company.
The company's liquidator is:
Mr. Wong Pheng Cheong Martin
c/o FTI Consulting (Singapore)
One Raffles Quay
#27-10 South Tower
Singapore 048583
MULTI-SYSTEM TECHNOLOGIES: Court to Hear Wind-Up Petition on Apr 4
------------------------------------------------------------------
A petition to wind up the operations of Multi-System Technologies
Pte. Ltd. will be heard before the High Court of Singapore on April
4, 2025, at 10:00 a.m.
Maybank Singapore Limited filed the petition against the company on
March 12, 2025.
The Petitioner's solicitors are:
Shook Lin & Bok LLP
1 Robinson Road
#18-00, AIA Tower
Singapore 048542
QOO10: Creditors File More Than SGD198MM in Claims against Company
------------------------------------------------------------------
The Straits Times reports that more than SGD198 million in claims
have been submitted by creditors to the liquidator of beleaguered
online marketplace Qoo10, but only SGD34,650 has been recovered,
according to minutes of the latest creditors' meeting seen by The
Straits Times.
Of the sum recovered, SGD20,000 was from Qoo10's 11 bank accounts
with DBS Bank, SGD14,150 was from rental deposits that were held by
landlords of employees, and SGD500 came from the disposal of office
furniture and IT equipment, ST discloses.
According to information submitted by Qoo10 founder and chief
executive Ku Young-bae to the liquidator, AAG Corporate Advisory,
Qoo10's total assets are valued at SGD685.6 million.
But the bulk of that comes from Qoo10's three e-commerce platforms
– Tmon, WeMakePrice and Interpark Commerce – all of which are
now under corporate restructuring in the Seoul Bankruptcy Court
after failing to make payments to the platforms' merchants since
2024.
According to the minutes of the Jan. 17 meeting, Mr. Abuthahir
Abdul Gafoor of AAG Corporate Advisory told creditors that SGD11.3
million in trade and other receivables included debt owed to Qoo10
by Tmon, WeMakePrice and Clues Network, an Indian company operating
an e-commerce platform called ShopClues, ST relays.
Another asset, Qoo10's shares in its former logistics arm Qxpress
that had a face value of SGD12.1 million, had been transferred out,
according to the minutes seen by ST.
This came after three shareholders that had provided US$42 million
(SGD56 million) in loans to Qoo10 and were given the option to
acquire its shares in Qxpress as collateral, exercised their
conversion rights in July 2024 and acquired the shares from Qoo10.
Some SGD18.6 million in investments remain to be verified,
according to the minutes cited.
Mr. Abuthahir added that the liquidator will be liaising with DBS
to recover a fixed deposit of SGD380,000, as well as SGD715,000
held by payment gateway providers Worldpay and PayPal.
"The recovery of SGD685.6 million is highly doubtful because Tmon,
WeMakePrice and Interpark are undergoing restructuring, or the
investment has already been transferred out of Qoo10 or is
unaccounted for," a source close to the matter told ST.
Qoo10's total liabilities far exceed the sums recovered so far.
According to the Jan. 17 creditors' meeting minutes, the liquidator
received 322 claims totalling SGD250,441 from three preferential
creditors and SGD197.9 million in unsecured claims, ST relays.
Preferential creditors refer to those that have a legal right to be
paid before other creditors, and are given priority in the
distribution of assets.
The preferential claims consisted of SGD155,000 in unpaid goods and
services tax, as well as claims filed by two former Qoo10 employees
for notice pay and leave encashment.
The remaining 319 unsecured creditors' claims comprised trade and
customer payables, and intercompany payables or loans owed by Qoo10
to its related companies.
Unsecured creditors are those who extend credit without requiring
collateral, meaning they have no specific assets to claim if the
borrower defaults.
According to ST, Mr. Abuthahir said the liquidator will decide on
the validity of debt claims and if they should be paid at a later
stage, "subject to availability of funds for any dividend
distribution".
About Qoo10
Singapore-based Qoo10 Group retails e-commerce products. The
Company offers personal care, sports apparel, consumer electronics,
home furnishing, food, toys, and other consumer products. Qoo10
serves customers worldwide. Qoo10 owns Korean online shopping
platforms TMON and WeMakePrice.
As reported the Troubled Company Reporter-Asia Pacific on Sept. 11,
2024, the Seoul Bankruptcy Court on Sept. 10 granted a
rehabilitation process for liquidity crisis-hit e-commerce
platforms TMON and WeMakePrice, allowing them to restructure their
debts to creditors under the supervision of court-appointed
custodians.
According to Yonhap News Agency, the decision came more than a
month after TMON and WeMakePrice filed for court-supervised
rehabilitation, following overdue payments to vendors operating on
their platforms that reached nearly KRW1 trillion (US$744
million).
In November 2024, a liquidator was appointed to take over
management of the insolvent company after Korea Culture Promotion
(KCP), which operates culture portal sites and issues culture gift
certificates in South Korea, sued Qoo10 for nearly KRW76 billion
(SGD69 million) in unpaid debt, The Straits Times said.
Singapore's High Court approved the winding up of Qoo10 in November
2024 and allowed 21st Century Healthcare, which said it is owed
SGD954,115, to replace KCP as the claimant.
A committee of inspection – a group that represents the interests
of the creditors – was appointed on Jan. 17, 2025, to supervise
and assist the liquidator with the administration of Qoo10's
affairs. This includes appointing lawyers, approving the
liquidator's fees and starting legal proceedings for asset
recovery.
[] SINGAPORE: Companies Forced to Wind Up Hit 15-Yr High in 2024
----------------------------------------------------------------
The Straits Times reports that the number of Singapore-registered
companies forced to wind up hit a record high in 2024.
There were 307 compulsory liquidations over the 12 months, a jump
of 53 per cent from the 201 cases in 2023 and ahead of the
pre-Covid-19 peak of 287 in 2019, the report discloses.
The 2024 total was also the highest since such data was first
collected in 2009, based on Ministry of Law data available on its
website, ST notes.
While the numbers have jumped, they represent less than 0.1 per
cent of the total number of business entities in Singapore.
"It is still relatively very, very small," ST quotes Mr. Bernard
Aw, chief economist for the Asia-Pacific region at trade credit
insurer Coface, as saying. "Perhaps not that concerning yet."
Furthermore, Mr. Tris Xavier, head of the integrated property
practice at Yuen Law, noted that there are many reasons why the
court may order a company to be wound up, and not merely because of
an inability to pay debts.
These include shareholder disputes, or the company's core business
no longer exists due to changes in the business environment.
According to ST, Mr. Aw said the first signs of deterioration in
the business climate emerged in 2024 when Coface noticed a rise in
the number of claims from policyholders who took up trade credit
insurance to insure against non-payment of goods and services that
were extended on credit.
Claim sizes have also gone up, he added, with companies citing cash
flow issues and financial difficulties as key reasons for their
debtors not being able to pay up, ST relays.
Affected sectors include construction players, small electronics
retailers, distributors of computer peripherals, as well as food
and beverage suppliers and distributors, Mr. Aw said.
=====================
S O U T H K O R E A
=====================
SK INNOVATION: Moody's Assigns 'Ba1' CFR, Outlook Remains Negative
------------------------------------------------------------------
Moody's Ratings has assigned Ba1 corporate family ratings to SK
Innovation Co. Ltd. (SKI) and SK Geo Centric Co., Ltd. (SKGC) and
withdrawn their Baa3 issuer ratings. Moody's have also downgraded
to Ba1 from Baa3 the rating for SK Battery America, Inc.'s backed
senior unsecured bonds due 2026 that are guaranteed by SKI. Moody's
have also maintained the negative outlooks on these three
companies.
At the same time, Moody's have affirmed the Aa3 rating on SK
Battery America's bonds due 2027 that are guaranteed by Kookmin
Bank (Aa3 stable, a3).
"The rating action on SKI mainly reflects Moody's expectations
that, despite a likely improvement from very weak 2024 levels,
SKI's financial leverage will remain high over the next one to two
years, due to its battery division's persistently weak operating
performance and heavy debt burden. The action on SKGC mirrors that
on SKI, given the two entities' close credit linkage," adds Hwang.
"The outlooks remain negative, reflecting the uncertainties
regarding whether SKI can improve its battery division's
profitability and execute sufficient deleveraging measures,"
further adds Hwang.
RATINGS RATIONALE
SK Innovation Co. Ltd.
Moody's estimates that SKI's adjusted net debt/EBITDA increased
sharply to over 10x in 2024 (proforma for its merger with SK E&S
Co. Ltd.) from 4.4x in the previous year. Its earnings weakened
across most segments. The battery division, in particular, reported
large losses due to low capacity utilization stemming from sluggish
end-demand and the negative impact of falling raw material prices.
At the same time, SKI's consolidated debt kept increasing – even
excluding the merger impact – because of the battery division's
continued expansion of global production capacities.
Moody's expects SKI's adjusted EBITDA to improve to KRW5.2
trillion-KRW5.5 trillion in 2025 from KRW3.3 trillion in 2024
(proforma), driven by a gradual sales improvement in its new
battery production capacities and a corresponding increase in tax
credits under the Inflation Reduction Act (IRA). Moody's also
assume a normalization of refining margins from last year's weak
level.
Moody's further expects that SKI's total adjusted net debt will
increase to KRW42 trillion-KRW43 trillion by the end of 2025 from
KRW36.6 trillion as of the end of 2024, because the company's
capital spending – despite a significant reduction from the past
two years' levels – will still far exceed its operating cash
flow. The forecast also accounts for the drawdown of a US
Department of Energy policy loan and a concurrent recapitalization
of a US joint venture during January 2025.
Moody's projects that the company's adjusted net debt/EBITDA will
decline toward 8.0x in 2025 from over 10x in 2024 because earnings
improvement will slightly outpace debt growth. This ratio is still
weak for the company's current underlying strength, which mainly
drives the continued negative outlook.
The ratio could improve more significantly in 2026 if the company
manages to improve its earnings from its expanded battery
production capacities. SKI's ability to do that hinges on global EV
demand returning to a robust growth trend.
However, significant risks exist over this projection, amid the
slowdown in EV demand growth and automakers' evolving EV strategy.
The risks of potential reversals of EV-related policies, including
the Inflation Reduction Act (IRA) tax credits and consumer rebates
in the US, add to the uncertainty, although Moody's do not factor
such policy changes in Moody's forecasts at this point.
SKI will continue to seek ways to mitigate its debt growth through
deleveraging measures, such as sales of non-core assets. The
company has good track records of executing such measures, but
Moody's forecasts does not factor the benefit yet because of the
inherently uncertain timing and scale of execution.
SKI's Ba1 rating combines its underlying credit strength and a
two-notch uplift based on Moody's expectations that the company
will receive institutional support from the Korean government (Aa2
stable) and parental support from SK Inc., in times of need.
SKI's underlying credit strength reflects its diversified business
portfolio, spanning from Korea's largest refining operations to
petrochemicals, lubricants, upstream oil and gas, power generation,
and battery manufacturing. This strength is counterbalanced by
SKI's high financial leverage and the continued weak performance of
the battery business as well as the inherent exposure to the
cyclical refining and petrochemical market conditions.
SK Geo Centric Co., Ltd.
SKGC's Ba1 rating incorporates a two-notch uplift from the
company's underlying credit strength because of a high likelihood
of parental support from SKI, in times of need.
SKGC's underlying credit strength is underpinned by its competitive
position in the domestic market and vertically integrated
operations with SKI. These strengths are counterbalanced by the
company's exposure to volatile market conditions, given its
commodity petrochemical-centered product mix, and its high
financial leverage.
Moody's expects SKGC's earnings to improve modestly over the next
1-2 years from weak 2024 levels, driven by better profitability in
the aromatics segment with limited new supply. However, the
company's earnings will likely remain far below mid-cycle levels,
because of the sizeable overcapacity in the industry.
SKGC is likely to lower its debt modestly during this period by
reducing its capital spending and not paying dividends. The company
will also seek to sell some non-core assets during this period.
Based on these assumptions, Moody's expects the company's adjusted
debt/EBITDA to improve to about 6x-8x during 2025-26 from over 10x
in 2024. This level of financial leverage is still at the weak end
of its current underlying credit strength, which is also partly
reflected in its negative outlook.
SK Battery America, Inc.'s Aa3 backed senior unsecured rating
The Aa3 rating on SK Battery America's backed senior unsecured
notes due January 2027 reflects the Aa3(cr) long-term Counterparty
Risk (CR) Assessment assigned to Kookmin Bank because the bank
provides an unconditional and irrevocable guarantee on the notes.
Kookmin Bank's CR Assessment is positioned at the same level as its
Aa3 long-term bank deposit and senior unsecured ratings.
Kookmin Bank's Aa3 long-term bank deposit and senior unsecured
ratings incorporate a three-notch uplift from its Baseline Credit
Assessment (BCA) of a3, based on Moody's assessments of a very high
level of support from the Government of Korea if necessary.
The very high level of government support for Kookmin Bank is
underpinned by its position as one of Korea's largest banks by
assets, with a consolidated asset market share of 13.7% as of
September 30, 2024.
Kookmin Bank's a3 BCA reflects the bank's solid funding and
liquidity, supported by its strong retail banking franchise, which
benefits from its sticky retail deposit base; solid asset quality,
supported by the bank's conservative underwriting policy; moderate
profitability; and good capitalization.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS
SKI and SKGC are exposed to increasing environmental regulations
and safety risks, especially in their refining and petrochemical
businesses. These risks are tempered by the companies' good track
record of environmental compliance and solid operational
capabilities. SKI is also exposed to carbon transition risk arising
from a potential decline in demand for petroleum products. This
risk can be alleviated if SKI successfully increases its revenue
and improves profitability in its fast-growing EV battery business.
The ratings also factor in SKI's aggressive financial strategy, as
reflected by its large debt-funded investments in the battery
business.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could change the outlook on SKI to stable if (1) the
company increases its earnings and contains net debt growth, such
that its adjusted net debt/EBITDA stays below 6.0x on a sustained
basis; and (2) its battery business achieves adequate
profitability.
Moody's could downgrade SKI's rating if the company fails to
improve profitability in its battery business to an adequate level,
or if it undertakes more aggressive debt-funded investments, such
that its adjusted net debt/EBITDA exceeds 6.0x on a sustained
basis. In addition, a material change in the IRA leading to lower
tax credits could also be negative for its rating.
Moody's could change the outlook on SKGC to stable if SKI's outlook
is revised to stable and SKGC maintains its current close
relationship with SKI, with its adjusted debt/EBITDA below 7.0x on
a sustained basis.
Conversely, a downgrade of SKI's rating will result in a downgrade
of SKGC's rating. Moody's will also review SKGC's rating in the
event of significant adverse changes in its relationship with SKI.
Moody's could also downgrade SKGC's rating if the company's
adjusted debt/EBITDA remains above 7.0x on a sustained basis amid
structural weakness in the industry or an increase in debt.
Any change to Kookmin Bank's long-term CR Assessment will likely
lead to a corresponding change in the rating on the Aa3 backed
senior unsecured rating of SK Battery America.
The principal methodology used in rating SK Innovation Co. Ltd. and
SK Battery America, Inc.'s backed senior unsecured bond guaranteed
by SK Innovation Co. Ltd. was Refining and Marketing published in
August 2021.
SK Innovation Co. Ltd. is a diversified energy company whose
operations span across refining and marketing, petrochemical,
lubricants, exploration and production, power generation and retail
gas distribution. The company also operates a growing EV battery
cell production business through a subsidiary.
SK Geo Centric Co., Ltd. is a leading petrochemical company in
Korea, with 7.3 million tons of annual petrochemical production
capacity as of September 30, 2024. The company is wholly owned by
SK Innovation Co. Ltd.
SK Battery America, Inc. operates battery production plants in the
US. The company is a wholly-owned subsidiary of SK On Co., Ltd.,
one of the world's leading electric vehicle battery manufacturers
and a key subsidiary of SK Innovation Co. Ltd.
===========
T A I W A N
===========
SEMILEDS CORP: Trung T. Doan Holds 57.69% Equity Stake
------------------------------------------------------
Trung T. Doan, disclosed in a Schedule 13D/A (Amendment No. 5)
filed with the U.S. Securities and Exchange Commission that as of
February 28, 2025, he beneficially owned 4,716,188 shares of
SemiLEDs Corp's common stock, which includes 127,141 shares owned
directly by The Trung Doan 2010 GRAT (of which he is the sole
trustee), 1,389,821 shares held directly by him, 31,036 shares held
by JRS Properties III LLLP, and 3,168,190 shares held by Simplot
Taiwan, Inc., pursuant to a Voting Agreement. These shares
collectively represent 57.69% of the 7,211,738 shares outstanding
as of January 6, 2025, plus additional shares received upon partial
loan repayment on February 28, 2025.
Trung T. Doan may be reached at:
3F, No.11 Ke Jung Rd. Chu-Nan Site
Hsinchu Science Park Chu-Nan 350
Miao-Li County Taiwan
Province of China, 350
Tel: 886-37-586788
A full-text copy of Mr. Doan's SEC Report is available at:
https://tinyurl.com/4swxs9sb
About SemiLEDs
Headquartered in Miao-Li County, Taiwan, R.O.C., SemiLEDs --
http://www.semileds.com-- develops, manufactures and sells light
emitting diode (LED) chips, LED components, LED modules and
systems. The Company's products are used for general specialty
industrial applications, including ultraviolet, or UV, curing of
polymers, LED light therapy in medical/cosmetic applications,
counterfeit detection, LED lighting for horticulture applications,
architectural lighting and entertainment lighting.
The Company suffered losses from operations of $2.9 million and
$3.4 million and used net cash in operating activities of $365
thousand and $984 thousand for the years ended August 31, 2024 and
2023, respectively. These facts and conditions raise substantial
doubt about the Company's ability to continue as a going concern.
SemiLEDs disclosed $10,400,000 in total assets, $8,820,000 in total
liabilities, and $1,580,000 in total equity at November 30, 2024.
*********
S U B S C R I P T I O N I N F O R M A T I O N
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