/raid1/www/Hosts/bankrupt/TCRAP_Public/101021.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
Thursday, October 21, 2010, Vol. 13, No. 208
Headlines
A U S T R A L I A
A & R COMPUTER: Goes Into Administration; 40 Jobs at Risk
COMPUTER NERDS: Placed in Voluntary Liquidation
FORTESCUE METALS: S&P Assigns 'B' Corporate Credit Rating
SMART SERIES: S&P Raises Ratings on Various 2007-3E Notes
C H I N A
BENDA PHARMACEUTICAL: Posts US$304,600 Net Loss in June 30 Quarter
GLORIOUS PROPERTY: Moody's Assigns 'B2' Rating to Senior Notes
HIDILI INDUSTRY: Moody's Assigns 'B1' Corporate Family Rating
HIDILI INDUSTRY: S&P Assigns 'BB-' Corporate Credit Rating
H O N G K O N G
HIP LIK: Court to Hear Wind-Up Petition on December 8
HUGE BEST: Court to Hear Wind-Up Petition on December 1
LUCKY DRAGON: Court Enters Wind-Up Order
READTAIN (INT'L): Li and Tsang Appointed as Liquidators
SUI WING: Court Enters Wind-Up Order
TAIFUNG ASIA: Court to Hear Wind-Up Petition on December 8
TEAM BRIGHT: Court Enters Wind-Up Order
TEAMWORK E.P.: Court Enters Wind-Up Order
VICTY LIMITED: Creditors' Proofs of Debt Due November 16
WILLING KNITWEAR: Sutton and Fok Appointed as Liquidators
YOGA YOGA: Court Enters Wind-Up Order
I N D I A
AXIS BANK: Fitch Assigns Long-Term Issuer Default Rating
DELTA FINOCHEM: CRISIL Lifts Rating on INR18MM Term Loan to 'BB+'
INDORE TREASURE: Fitch Assigns 'B+' National Long-Term Rating
KANAK EXPORTS: CRISIL Reassigns 'B+' Rating to INR172.5MM Credit
MAHAVIR RICE: CRISIL Reaffirms 'B' Rating on INR10MM Cash Credit
NATIONAL PLASTIC: ICRA Assigns 'LB+' Rating to INR9.04cr Term Loan
OPG INDUSTRIES: ICRA Reaffirms 'LBB+' on INR5cr LT Bank Facilities
OPG METALS: ICRA Reaffirms 'LBB+' Rating on INR16cr Long Term Loan
RAJALAXMI EDUCATION: CRISIL Cuts Rating on INR180MM Loan to 'D'
SAALIM SHOES: ICRA Assigns 'LBB+' Rating to INR6.8cr Term Loan
SHREE SAI PRAKASH: CRISIL Reaffirms 'BB+' Rating on INR29.8MM Loan
SHREE SAI ROLLING: CRISIL Reaffirms 'BB+' Rating on INR80MM Loan
SHREE SAI SMELTERS: CRISIL Reaffirms 'BB+' Ratings on Bank Debts
SUSEE AUTO: ICRA Assigns 'LBB' Rating to INR10.6cr LT Bank Debts
SUSEE AUTO SPARES: ICRA Places 'LBB' Rating on INR7.3cr LT Loan
SUSEE AUTOMOBILES: ICRA Assigns 'LBB+' Rating to INR9.5cr LT Loan
SUTARIYA GEMS: CRISIL Reassigns 'B' Rating to Packing Credit
I N D O N E S I A
BANK MANDIRI: Fitch Affirms 'BB+' Issuer Default Rating
INTERNATIONAL NICKEL: May Face Lawsuit Over Unpaid Rent
J A P A N
AIFUL CORP: To Suspend TV Ads Amid Consumer Demands for Refund
JPM-JC8 TRUST: Moody's Corrects Press Release on Notes Ratings
K O R E A
NEOSEMITECH CORP: Lawmakers Blast KDB Over Soured Investment
N E W Z E A L A N D
NEST: Has Been Placed Into Receivership
SOUTH CANTERBURY: SFO Probe to Focus on 4 or 5 Related Party Loans
SOUTH CANTERBURY: SFO Demands NBR File on Hyatt Regency Dealings
SOUTH CANTERBURY: Receiver to Issue Update on Asset Sale This Week
P H I L I P P I N E S
UNION BANK: Fitch Affirms 'BB-' Issuer Default Rating
S I N G A P O R E
BEDEC EUROFORM: Court Enters Wind-Up Order
CONSULT ASIA: Court Enters Wind-Up Order
IDEAL FAMILY: Court Enters Wind-Up Order
KWEE JIN: Court Enters Wind-Up Order
REJUVEMED PTE: Creditors' Proofs of Debt Due November 26
SEAPOWER REALTY: Creditors' Proofs of Debt Due November 26
SUBTLE SENSES: In Creditors' Voluntary Wind-Up
- - - - -
=================
A U S T R A L I A
=================
A & R COMPUTER: Goes Into Administration; 40 Jobs at Risk
---------------------------------------------------------
A & R Computer Services has gone into administration, with a
potential loss of 40 jobs, ABC News reports. The report relates
that a sign on one of its six stores at Gepps Cross in Adelaide
has confirmed the business is now closed and in administration.
According to the report, A & R's internet customers were moved
across to Adam Internet about a month ago to ensure they had a
service provider.
The report notes that it is unclear at this stage what impact the
closure of stores will have on its staff.
The company is in the hands of accountants Kennedy and Co.
A & R Computer Services is a technology business. The Adelaide-
owned and operated computer and accessories.
COMPUTER NERDS: Placed in Voluntary Liquidation
-----------------------------------------------
ARN reports that Computer Nerds Australia has been placed into
voluntary liquidation. Murray Godfrey from RMG Partners was
appointed as the liquidator on September 27.
ARN, citing the liquidator's documents, discloses that the company
owed about AU$260,000 to its creditors. ARN says the majority of
the debt was owed to the Australian Taxation Office at AU$183,000.
Other creditors on the list include:
Leader Computers AU$42,840
Inland Technology AU$17,848
Impact Systems AU$6,733
Media Super AU$5,244
Sullivan Dewing AU$5,214
REST Superannuation AU$855
According to ARN, Impact Systems managing director Peter Agamalis
said he was in the process of pursuing a statement of claim
against Computer Nerds and its former director, Brad Evans, to
recover the debt. ARN relates Mr. Agamalis claimed Impact tried
to work with Computer Nerds through supplying product to help pay
down their debt.
The first creditors' meeting was held on October 8 and a final
creditors' meeting is yet to be determined, ARN adds.
Based in Armidale, NSW, Computer Nerds Australia supplies a range
of home and business repair and onsite services.
FORTESCUE METALS: S&P Assigns 'B' Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned a 'B'
corporate credit rating to the Australian iron ore mining company,
Fortescue Metals Group Ltd. The outlook on the rating is
positive. At the same time, S&P assigned a 'B' rating to the
proposed US144a issuance of about US$2 billion senior unsecured
notes by Fortescue's funding arm, FMG Resources (August 2006) Pty
Ltd. (not rated). The proceeds of the issue will be used to
refinance existing debt.
"The 'B' corporate credit rating reflects S&P's view of
Fortescue's profile as a relatively long-life, low-cost iron ore
producer, the quality of the group's iron ore mines in the Pilbara
region of Western Australia, and the liquidity levels maintained
within the group," Standard & Poor's credit analyst Philip Grundy
said. "S&P believes that Fortescue's strengths are offset to a
degree by S&P's view of the company's aggressive expansion
aspirations; single asset risks associated with key
infrastructure; and limited articulated financial policies."
The positive outlook is based on S&P's opinion that the current
level of iron ore prices, combined with the sustainable production
at over 40 metric tonnes per annum (increasing to 55mtpa in 2011),
should continue to underpin the group's improving financial
metrics and liquidity. Importantly, the rating could be raised
if, in S&P's view, Fortescue adequately mitigates the risks
concerning costing, execution, and funding of any expansion beyond
55mtpa. The company would also need to demonstrate that it would
have the capacity to achieve development and production ramp-up
timelines of any expansion project, while maintaining adequate
liquidity. Additionally, there would have to be evidence of a
commitment to financial policies supportive of a higher rating.
On Oct. 10, 2010, Fortescue announced that it had refinanced the
existing senior secured debt of FMG through a US$2.04 billion bank
debt facility, enabling the company to discharge the existing
indenture. Proceeds of the proposed US144a unsecured senior note
issuance will be applied toward refinancing that bank debt
facility. The notes will rank pari-pasu with all other senior
debt issued by the company, will have a term of five years, and
will be fully guaranteed by Fortescue and other group entities.
SMART SERIES: S&P Raises Ratings on Various 2007-3E Notes
---------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on class B,
C, D, and E notes issued by SMART Series 2007-3E Trust. At the
same time, Standard & Poor's affirmed the 'AAA (sf)' ratings on
the class A-2A and A-2E notes. SMART 2007-3E's A$780.3 million of
floating-rate notes were issued in November 2007, and are backed
by commercial hire purchase, chattel mortgage contracts, novated
leases, and finance leases originated by Macquarie Leasing Pty
Ltd., for the purchase or lease of a variety of vehicles.
The upgrades reflect the strong asset performance over the life of
the transaction, and increases in the subordination as a
percentage of outstanding balance for each class of notes. As at
Aug. 31, 2010, cumulative net losses are equal to 0.54% of the
original receivables balance and have been absorbed by excess
spread; there are currently no charge-offs to the notes. The
proportion of loans in arrears remains low, with loans in arrears
greater-than-30 days totaling 0.24% of the current receivables
balance. The portfolio is well seasoned; over 78% of the
underlying receivables have paid down and the weighted average
term to maturity of the remaining receivables is 14 months.
Ratings Raised
Name Class Rating to Rating from
---- ----- --------- -----------
SMART Series 2007-3E Trust B AA (sf) A (sf)
SMART Series 2007-3E Trust C A (sf) BBB (sf)
SMART Series 2007-3E Trust D BBB (sf) BB (sf)
SMART Series 2007-3E Trust E BB (sf) B (sf)
Ratings Affirmed
Name Class Rating
---- ----- ------
SMART Series 2007-3E Trust A-2A AAA (sf)
SMART Series 2007-3E Trust A-2E AAA (sf)
=========
C H I N A
=========
BENDA PHARMACEUTICAL: Posts US$304,600 Net Loss in June 30 Quarter
------------------------------------------------------------------
Benda Pharmaceutical, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of US$304,614 on US$6.0 million of
revenue for the three months ended June 30, 2010, compared with a
net loss of US$1.3 million on US$5.9 million of revenue for the
same period last year.
General and administrative decreased by US$2.2 million (or 75.17%)
to US$718,621 million for the three months ended June 30, 2010,
from US$2.9 million for the three months ended June 30, 2009,
primarily due to less bad debt expense incurred in 2010.
The Company had operating income of US$384,474 for the three
months ended June 30, 2010, while the operating loss from
comparative period for 2009 was US$1.2 million.
The Company's balance sheet at June 30, 2010, showed US$67.2
million in total assets, US$52.8 million in total liabilities, and
stockholders equity of US$14.4 million.
As reported in the Troubled Company Reporter on May 25, 2010,
MaloneBailey, LLP, in Houston, expressed substantial doubt about
the Company's ability to continue as a going concern, following
the Company's results for 2009. The independent auditors noted
that the Company has incurred losses for the year ended
December 31, 2009, and had a working capital deficiency at
December 31, 2009.
A full-text copy of the Form 10-Q is available for free at:
http://researcharchives.com/t/s?6cae
About Benda Pharmaceutical
Based in Wuhan, Hubei Province, in the People's Republic of China,
Benda Pharmaceutical, Inc. (OTC: BPMA) is engaged principally in
the business of identifying, discovering, developing, and
manufacturing conventional medicines, active pharmaceuticals, bulk
chemicals (or pharmaceutical immediates), and Traditional Chinese
Medicines for the treatment of some of the most widespread common
ailments and diseases.
GLORIOUS PROPERTY: Moody's Assigns 'B2' Rating to Senior Notes
--------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B2 rating
to Glorious Property Holdings Limited's proposed US$ senior
unsecured notes. At the same time, Moody's has affirmed Glorious'
B1 corporate family rating. The ratings outlook is negative.
The proceeds from the proposed US$ bonds are intended to fund
existing and new property projects, and for general corporate
purposes.
The provisional status of the bond rating will be removed after
Glorious has completed the US$ bond issue.
Ratings Rationale
"The proposed bond issue is in line with Moody's expectations that
Glorious will have to raise debt to fund its unpaid land payments
and development expenditure," says Kaven Tsang, a Moody's
AVP/Analyst.
"While the proposed bond issue could partly fund its near-term
obligations and lengthen its debt maturity profile, Glorious'
liquidity profile remains weak, given material amount of scheduled
debt repayment in 2H 2011, including a RMB1.9 billion loan related
to the Shanghai Bay project, and which is due in December 2011,"
adds Tsang.
"Glorious achieved RMB5.8 billion of contracted sales in the first
nine months of 2010, but its future cash flow will remain volatile
because a relatively large portion of total sales will be derived
from the Shanghai Bay project. It will require further funding if
sales materially fall short of projections," says Tsang.
Despite these weaknesses, Glorious has a high-quality land bank
and the majority of its projects are located in the major
districts of first-tier cities, such as Shanghai and Beijing. Its
high profit margin also offers some buffer against reduced prices
in a down market.
Adjusted debt/capitalization is projected to rise to around 50-
55%, while EBITDA/interest coverage will be at around 3x,
positioning the company at a B1 rating level in the next two to
three years.
Glorious' bond rating is notched down to B2 due to subordination
risk. Secured and subsidiary debt to total assets was 33.4% as of
June 30, 2010. Moody's expects this ratio to stay around 30%
after the bond issue.
The negative outlook reflects Glorious' weak liquidity position as
a result of lower-than-expected sales in the first nine months of
2010, and sizable refinancing needs in the next 12-18 months,
against increased regulations on lending to property developers.
Glorious' outlook could revert to stable if the company
strengthens its liquidity profile. This could be accomplished
with 1) achievement of projected sales and 2) arrangement of long-
term financing to address refunding needs. At the same time, the
company needs to maintain debt/capitalization at 50-55% or below.
The rating could be downgraded if Glorious' financial position
deteriorates, which could arise from 1) weaker-than-expected sales
performance; 2) aggressive development and/or land acquisitions;
and/or 3) a weakened liquidity position to support its operations.
The credit metrics that Moody's would consider for a rating
downgrade include adjusted debt/capitalization rising beyond 55-
60% and/or EBITDA/interest falling under 2-3x.
The last rating action on Glorious was on June 15, 2010, when
Moody's changed Glorious' outlook to negative from stable.
Glorious Property Holdings Limited is a medium-sized residential
property developer which originated from Shanghai, but has now
expanded to Eastern and Northern China. It has a land bank of
around 18.9 million sqm in gross floor area distributed in
Shanghai, Beijing, Tianjin and several second-tier cities in
China. Glorious was listed on the Stock Exchange of Hong Kong in
2009. Its chairman, the major shareholder, owns 65.01%, and has
other major private businesses.
Regulatory Disclosures
Information sources used to prepare the credit rating are these:
parties involved in the ratings, public information, confidential
and proprietary Moody's Investors Service's information.
Moody's Investors Service considers the quality of information
available on the issuer or obligation satisfactory for the
purposes of assigning a credit rating.
MOODY'S adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources MOODY'S considers to be reliable including, when
appropriate, independent third-party sources. However, MOODY'S is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.
HIDILI INDUSTRY: Moody's Assigns 'B1' Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B1
corporate family rating to Hidili Industry International
Development Ltd. Moody's has also assigned a (P)B1 senior
unsecured rating to proposed bonds to be issued by Hidili.
The outlook for both ratings is stable. This is the first-time
Moody's has assigned ratings to Hidili.
The provisional status of the ratings will be removed upon
completion of the bond issue. If the transaction fails to go
ahead, or if the final bond issue size materially differs from
Moody's expectation, the ratings will be under pressure in view of
the company's weak liquidity and the resulting refinancing risk.
Ratings Rationale
"The provisional B1 rating reflects Hidili's ownership of well
located coking coal assets, and integrated operations with a low
cost base, which supports its good profitability," says Renee Lam,
a Moody's Vice President and Senior Analyst.
"At the same time, the rating also captures Hidili's small scale
and high customer concentration, and its short operating history
at its current scale," says Renee Lam.
"The company's profitability is highly sensitive to the cyclical
coal prices and demand from the downstream steel industry, though
Moody's notes the solid demand for coking coal expected over the
near term from the Chinese steel manufacturers," says Renee Lam.
"Moody's also expects the recent consolidation of the Chinese
steel industry -- by closing down the small-size, inefficient
steel mills -- will have limited impact on Hidili as its major
customers are large state-owned steel manufacturers," says Renee
Lam.
"In the next 2 years, Hidili aims to more than double its
production from the 2.8 million tons in 2009. Such an aggressive
growth plan is subject to uncertainty and entails execution risk."
"Its leverage is high, as measured by adjusted debt/EBITDA of 5.7x
in 2009, though declined to 4.4x in 1H10, and the B1 rating
factors in the expectation that the company will lower its
leverage to about 4x in the next 12-18 months, through production
growth from its newly acquired mines," adds Renee Lam.
The stable outlook incorporates Moody's expectation that Hidili
will achieve its production growth and de-leveraging targets
within its budget and planned time frame.
A near-term rating upgrade is unlikely given the company's current
high financial leverage, and the company is still ramping up its
production to de-leverage.
Over time, the rating may be upgraded if the company succeeds in
implementing its expansion plans and in ramping up its production
for de-leveraging. Consistent positive free cash flow will also
benefit the credit profile. Financial indicators that Moody's
would consider for an upgrade include adjusted debt/EBITDA
consistently below 3-3.5x.
Moody's would be concerned if the company failed to de-leverage as
planned, due to 1) Hidili's failure to achieve its production
targets at the projected costs and within the projected time
frame; 2) cyclical movements in coal prices and costs; 3) a
downturn in China's steel industry that dampened upstream coking
coal demand; or 4) aggressive, debt-funded acquisitions. Any
major safety or environmental issue, or regulatory changes,
materially affecting the company's cash flow would also be
negative for the rating. Such downward pressure could be
evidenced by adjusted debt/EBITDA consistently above 4-4.5x.
Hidili is a vertically integrated coal mining enterprise in
southwest China that supplies coking coal products to the domestic
steel industry. Hidili was listed on the Hong Kong Stock Exchange
in September 2007. Its major shareholder is Mr. Xian Yang, who
has a 50.7% stake (as of June 30, 2010).
Regulatory Disclosures
Information sources used to prepare the credit rating are these:
parties involved in the ratings, parties not involved in the
ratings, public information, confidential and proprietary Moody's
Investors Service's information.
Moody's Investors Service considers the quality of information
available on the issuer or obligation satisfactory for the
purposes of assigning a credit rating.
MOODY'S adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources MOODY'S considers to be reliable including, when
appropriate, independent third-party sources. However, MOODY'S is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.
HIDILI INDUSTRY: S&P Assigns 'BB-' Corporate Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
corporate credit rating to Hidili Industry International
Development Ltd. The outlook is negative. At the same time,
Standard & Poor's assigned its 'BB-' issue rating to the company's
proposed issue of benchmark-sized senior unsecured offshore notes.
The rating is subject to Standard & Poor's review of the bond
documentation, including the usage, tenor and total amount of the
issuance.
"The rating on Hidili reflects the company's high exposure to the
cyclicality of the steel industry, high customer concentration,
and moderate execution risk," said Standard & Poor's credit
analyst Judy Kwok-Cheung. "These weaknesses are partly mitigated
by the company's competitive advantages of access to a good
resource base and proximity to customers in the south of China,"
she added.
The issue rating on Hidili's proposed notes is the same as the
corporate credit rating to reflect Standard & Poor's opinion that
offshore noteholders would not be materially disadvantaged,
compared with onshore creditors, in the event of default.
However, the issue rating of 'BB-' takes into account that Hidili
aims to use a substantial amount of the proceeds to refinance its
onshore debt, such that the ratio of onshore debt to total assets
would be well under 15% post bond issuance.
The negative outlook on the rating reflects S&P's expectation that
Hidili could continue to operate at an aggressive financial
leverage level. In S&P's view, the company's leverage is volatile
because it is highly sensitive to coking and washed coal prices.
In addition, execution risks from continuous expansion could
pressure the company's credit metrics.
================
H O N G K O N G
================
HIP LIK: Court to Hear Wind-Up Petition on December 8
-----------------------------------------------------
A petition to wind up the operations of Hip Lik (Hong Kong)
Engineering Limited will be heard before the High Court of Hong
Kong on December 8, 2010, at 9:30 a.m.
Lo Siu Leung Trading as Hiu Fung Engineering Co. filed the
petition against the company.
The Petitioner's Solicitors are:
Mr. Luk Kar Hay
23rd Floor, Shui On Centre
Nos. 6-8, Harbour Road
Hong Kong
HUGE BEST: Court to Hear Wind-Up Petition on December 1
-------------------------------------------------------
A petition to wind up the operations of Huge Best International
Limited will be heard before the High Court of Hong Kong on
December 1, 2010, at 9:30 a.m.
Maple Trade Finance Inc. filed the petition against the company.
The Petitioner's Solicitors are:
King & Wood
9th Floor, Hutchison House
Central, Hong Kong
LUCKY DRAGON: Court Enters Wind-Up Order
----------------------------------------
The High Court of Hong Kong entered an order October 6, 2010, to
wind up the operations of Lucky Dragon Boat (Chaiwan) Restaurant
Limited.
The official receiver is E T O'Connell.
READTAIN (INT'L): Li and Tsang Appointed as Liquidators
-------------------------------------------------------
Mr. Li Man Wai and Ms. Tsang Lai Fun on May 7, 2010, were
appointed as liquidators of Readtain (Int'l) Trading Limited.
The liquidators may be reached at:
Mr. Li Man Wai
Ms. Tsang Lai Fun
Room 1001, 10/F
Tai Yau Building
181 Johnston Road
Wanchai, Hong Kong
SUI WING: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order October 6, 2010, to
wind up the operations of Sui Wing Resources Limited.
The official receiver is E T O'Connell.
TAIFUNG ASIA: Court to Hear Wind-Up Petition on December 8
----------------------------------------------------------
A petition to wind up the operations of Taifung Asia Holdings
Limited will be heard before the High Court of Hong Kong on
December 8, 2010, at 9:30 a.m.
Bank of China (Hong Kong) Limited filed the petition against the
company.
The Petitioner's Solicitors are:
Chow, Griffiths & Chan
6th Floor, South china Building
No. 1 Wyndham Street
Central, Hong Kong
TEAM BRIGHT: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order October 4, 2010, to
wind up the operations of Team Bright Corporation Limited.
The official receiver is E T O'Connell.
TEAMWORK E.P.: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order October 6, 2010, to
wind up the operations of Teamwork E.P. Engineering Co., Limited.
The official receiver is E T O'Connell.
VICTY LIMITED: Creditors' Proofs of Debt Due November 16
--------------------------------------------------------
Creditors of Victy Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by Nov. 16,
2010, to be included in the company's dividend distribution.
The company's liquidator is:
Kong Chi How Johnson
25/F., wing On Centre
111 Connaught Road
Central, Hong Kong
WILLING KNITWEAR: Sutton and Fok Appointed as Liquidators
---------------------------------------------------------
Messrs. Roderick John Sutton and Fok Hei Yu on September 3, 2010,
were appointed as liquidators of Willing Knitwear (Holdings)
Limited.
The liquidators may be reached at:
Messrs. Roderick John Sutton
Fok Hei Yu
14th Floor the Hong Kong Club Building
3A Chater Road
Central, Hong Kong
YOGA YOGA: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order October 6, 2010, to
wind up the operations of Yoga Yoga International Limited.
The official receiver is E T O'Connell.
=========
I N D I A
=========
AXIS BANK: Fitch Assigns Long-Term Issuer Default Rating
--------------------------------------------------------
Fitch Ratings has assigned India's Axis Bank Ltd a Long-term
foreign currency Issuer Default Rating of 'BBB-' with a Stable
Outlook. The agency has also assigned a rating of 'BBB-' to
foreign currency senior notes under ABL's EUR2 billion medium-term
note programme. A full list of the rating actions is provided
below.
ABL's Long-term ratings are driven by its 'C' Individual rating,
which has been affirmed, and reflect its track record of strong
profitability and improved capitalization ratios, which remain
amongst the best in the Indian banking system and also compare
well with the median for international banks with Individual
rating of 'C'.
While ABL's absolute NPLs increased by 47% in spite of aggressive
write-offs (78% of gross NPLs) at end-March 2010 (FY10), the
buoyant economy and the improved credit outlook are expected to
moderate any further increase. ABL's gross NPL ratio of 1.1% at
end-September 2010 was far lower than the systemic average of
2.5%. Moreover, only 2.6% of the bank's restructured loan
portfolio (1.5% of total loans) turned non-performing in FY10,
which is significantly lower than the system average of over 10%.
While ABL's asset quality is anticipated to deteriorate further as
its rapidly expanded corporate loan book (50% of total loans)
seasons and should interest rates rise, its strong profitability
and capitalization provide adequate cushion against any moderate
spikes in its delinquencies.
ABL's net interest margins improved on account of a higher
proportion of low-cost current and savings account deposits in
FY10. Furthermore, the bank's strong fee income supported its
return on average assets, which increased to 1.5% in FY10 (1.4% in
FY09), even after absorbing the 77% rise in credit costs (1.3% of
gross loans in FY10; FYE09: 1.1%). Fitch expects ABL's
profitability to come under some pressure in the increasing
interest rates scenario, impacting its treasury gains and margins,
and increasing credit costs. Nevertheless, the agency still
expects ABL to remain comfortably profitable.
Following an INR38.2 billion equity infusion in FY10, the bank's
Tier 1 ratio improved to above 11% (most of which is core equity).
Fitch expects ABL's internal capital generation and the current
capital to be adequate over the medium-term, taking into account
its more moderate growth targets relative to the past several
years.
The notching and ratings of the subordinated debt and the hybrid
instruments on the national and international scales are
consistent with Fitch's practices based on the respective criteria
for these types of instruments, which are performing.
ABL's Individual rating, IDRs and National Ratings could be
downgraded in the event of unexpected material asset quality
deterioration leading to impairment of its above-average
profitability and capitalization. The bank's Support Rating could
be upgraded with its increasing systemic importance, considering
its enhanced network of 1,103 branches and a pan-India presence.
ABL was established by government-owned institutions in 1994 and
was known as "UTI Bank" until August 2007. It is the 11th largest
bank in India.
Fitch has assigned these ratings to ABL:
-- Long-term foreign currency IDR: 'BBB-'; Stable Outlook;
-- Short-term foreign currency IDR: 'F3';
-- Foreign Currency Senior Debt: 'BBB-';
-- Foreign Currency Subordinated Lower Tier II: 'BB+';
-- Foreign Currency Upper Tier II Bonds: 'BB-';
-- Foreign Currency Perpetual Tier 1 Bonds: 'BB-'; and
-- Support Rating Floor: 'BB+'.
Fitch has affirmed these ratings of ABL:
-- National Long-term Rating: 'AAA(ind)'; Stable Outlook;
-- INR55bn subordinated lower Tier 2 debt programme: 'AAA(ind)';
-- INR6.53bn subordinated upper Tier 2 debt programme:
'AA+(ind)';
-- INR2.14bn perpetual Tier 1 debt programme: 'AA+(ind)';
-- Individual rating: 'C'; and
-- Support rating: '3'.
DELTA FINOCHEM: CRISIL Lifts Rating on INR18MM Term Loan to 'BB+'
-----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Delta Finochem Pvt Ltd to 'BB+/Positive' from 'BB/Stable', while
reaffirming the short-term rating at 'P4+'.
Facilities Ratings
---------- -------
INR18.00 Million Term Loan BB+/Positive (Upgraded from
'BB'; Outlook
revised from
'Stable')
INR27.50 Million Cash Credit BB+/Positive (Upgraded from
'BB'; Outlook
revised from
'Stable')
INR5.50 Million Ad-hoc Cash P4+ (Reaffirmed)
Credit Limit
INR35.00 Million Letters of P4+ (Reaffirmed)
Credit
INR1.00 Million Bank Guarantee P4+ (Reaffirmed)
The upgrade is driven by the improvement in Delta Finochem's
financial risk profile on the back of healthy growth in revenues,
coupled with a sequential improvement in its operating margin,
over the past two years. The revenues of the company have
achieved a year-on-year growth of around 50 per cent over the two
years ended 2009-10 (refers to financial year, April 1 to
March 31). As a result, the company's operating margin increased
to 15.9 per cent in 2009-10 from 10.6 per cent in 2007-08. The
net worth of the company has increased to INR158 million
(estimated) as on March 31, 2010 from INR85 million as on
March 31, 2008. The rating action also reflects CRISIL's
expectation that Delta Finochem's capital structure and debt
protection metrics will remain comfortable over the medium term in
the absence of any large, debt-funded capital expenditure (capex)
programme.
The rating reflects the susceptibility of Delta Finochem's
operating margin to volatility in raw material prices, its
restricted pricing power, and its dependence on a few products for
revenues. The rating also reflects the company's limited
financial flexibility on account of small net worth and large
working capital requirements. These rating weaknesses are
partially offset by the company's healthy financial risk profile,
marked by strong debt protection metrics, and its established
position in the specialty organic chemicals market.
Outlook: Positive
CRISIL believes that Delta Finochem will maintain strong revenue
growth over the medium term by securing contracts for
manufacturing intermediates for patented drugs while maintaining
its operating margin. The rating may be upgraded if the company
generates larger-than-expected cash accruals or if there is a
significant improvement in its net worth, most likely through
equity infusion by promoters. Conversely, the outlook may be
revised to 'Stable' if Delta Finochem is unable to sustain growth
in revenues after the patents on existing intermediates expire,
resulting in considerable pressure on profitability, or if its
capital structure weakens, most likely due to a large debt-funded
capex programme.
About Delta Finochem
Delta Finochem, promoted by Mr. D S Deshmukh in 1990, is a
manufacturer of organic chemicals in three segments - key
specialty chemicals, QACs, and QPCs. These organic chemicals are
mainly used as phase transfer catalysts in chemical reactions as
they are soluble in both water and non-polar liquids. The company
supplies these chemicals to the pharmaceuticals, paints and dyes,
detergents, agrochemicals, and industrial chemicals industries.
The company recently started manufacturing active pharmaceutical
ingredients (APIs). Delta Finochem is currently incurring capital
expenditure to accommodate manufacturing requirements of APIs.
Delta Finochem on a provisional basis reported a profit after tax
(PAT) of INR51.5 million on net sales of INR598.0 million for
2009-10, against a PAT of INR21.2 million on net sales of
INR400.3 million for 2008-09.
INDORE TREASURE: Fitch Assigns 'B+' National Long-Term Rating
-------------------------------------------------------------
Fitch Ratings has assigned India's Indore Treasure Market City
Private Limited a National Long-term rating of 'B+(ind)'. The
Outlook is Stable. The agency has also assigned a 'B+(ind)'
rating to ITMCPL's INR1,650 million long-term loan.
ITMCPL is a special-purpose vehicle set up by Treasure World
Developers Pvt. Ltd. to construct and operate a 1.4m sq ft
shopping mall-cum-multiplex and entertainment area (super built-up
area 1.6m sq. ft.) at Indore in Madhya Pradesh. TWDPL is promoted
by Entertainment World Developers Ltd., which has two operational
malls in Indore, Madhya Pradesh and one in Nanded, Maharashtra.
ITMCPL's ratings reflect its success in leasing 20% of the total
gross leasable area at its largest upcoming mall in Indore. Also,
upcoming township projects by established real estate developers
in Indore offer ITMCPL location advantage, which would benefit the
company in selling or leasing the remaining area. The ratings
draw comfort from the established track record of EWDL in the
Indore real estate market. Furthermore, EWDL operates all the
malls under a common brand name 'Treasure'. This would benefit
ITMCPL, as an existing mall under the same brand name is
operational and well received in the Indore market.
The ratings are, however, constrained by the occupancy risk faced
by ITMCPL as 80% of the total gross leasable area is still unsold
and unleased. Fitch notes that a delay in the upcoming township
projects may result in ITMCPL facing risk of over-supply in
Indore's retail market. The ratings are also constrained by the
potential risk of any delay in the completion of the mall, which
is expected to be in FY12.
Negative rating triggers include ITMCPL's failure in selling and/
or leasing out the remaining space of the mall and delays in the
construction of the mall. Positive rating triggers include
ITMCPL's success in leasing out 50% of the total gross leasable
area and timely completion of the ongoing projects. Fitch will
monitor the company's progress in the leasing of the remaining
space.
The shopping mall-cum-multiplex shall be leased out to retail
stores, food & beverages, multiplex, hotel, games zone, autocad,
offices etc. It will be constructed in three phases: phase I
(0.69m sq ft) is expected to be constructed by December 2010,
phase II (0.75m sq ft) by December 2010, and phase III (0.17m sq
ft) by April 2012. The estimated cost of the project is
INR2,753.3 million, which will be funded through a mix of equity,
debt and security deposit from leases in the ratio of 32:60:8,
respectively.
KANAK EXPORTS: CRISIL Reassigns 'B+' Rating to INR172.5MM Credit
----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the long-term bank
facilities of Kanak Exports; these facilities were earlier short-
term facilities which were rated 'P4' by CRISIL.
Facilities Ratings
---------- -------
INR172.50 Million Post-Shipment B+/Stable (Reassigned)
Credit
INR43.50 Million Export Packing B+/Stable (Reassigned)
Credit
The rating continues to reflect Kanak Exports' weak financial risk
profile marked by weak debt protection metrics and a low net
worth, working-capital-intensive nature of operations, and modest
scale of operations in the highly fragmented diamond-export
industry. These weaknesses are partially offset by the firm's
established position in the diamond export market, and the
extensive industry experience of its promoters.
Outlook: Stable
CRISIL believes that Kanak Exports will continue to benefit from
its established customer relationships, over the medium term. The
outlook may be revised to 'Positive' if there is a significant
improvement in the firm's scale of operations and working capital
management. Conversely, the outlook may be revised to 'Negative'
if Kanak Exports' profitability declines significantly, thereby
adversely affecting its cash accruals, its capital structure
deteriorates, most likely because of large withdrawals by the
firm's partners, or its working capital cycle increases further,
resulting in a further weakening in its liquidity.
About Kanak Exports
Kanak Exports was established in 1986 as a partnership firm by
Mr. Muljibhai Dhameliya and his family members. The firm exports
cut and polished diamonds. Mr. Dhameliya has an experience of
more than 40 years in the diamond industry. Currently, one of the
partners, Mr. Kanak Dhameliya (son of Mr. Muljibhai Dhameliya)
looks after the entire marketing and finance operations. Mr. Kanak
Dhameliya has an experience of more than 15 years in the diamond
industry.
For 2009-10 (refers to financial year, April 1 to March 31), Kanak
Exports reported a profit after tax (PAT) of INR4.8 million on net
sales of INR615.5 million, against a PAT of INR0.07 million on net
sales of INR515.8 million for the previous year.
MAHAVIR RICE: CRISIL Reaffirms 'B' Rating on INR10MM Cash Credit
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Mahavir Rice Mills, a
part of the MRM group, continue to reflect the MRM group's weak
financial risk profile driven by its working-capital-intensive
operations, its small scale of operations, and its exposure to
risks related to unfavorable changes in regulatory policies,
volatility in raw material prices, and dependence on the monsoons.
These weaknesses are partially offset by the experience of the
group's promoters in the rice industry, and healthy growth
prospects.
Facilities Ratings
---------- -------
INR10.0 Million Cash Credit B/Stable (Reaffirmed)
INR120.0 Million Packing Credit P4 (Reaffirmed)
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of MRM and BD Overseas (BDO), together
referred to as the MRM group. This is because the two entities
have common partners, are engaged in a similar line of business,
and have strong business linkages, including fungible cash flows.
Outlook: Stable
CRISIL believes that the MRM group will continue to benefit from
its established client relationships and the healthy prospects for
the rice industry. The outlook may be revised to 'Positive' in
case of a substantial and sustainable improvement in the group's
capital structure and scale of operations. Conversely, the outlook
may be revised to 'Negative' if there is further deterioration in
the group's capital structure or pressure on its profitability.
Update
The MRM group registered a 24 per cent year-on-year sales growth
in 2009-10 (refers to financial year, April 1 to March 31) mainly
due to increased trading operations in BDO. BDO achieved a
turnover of INR165 million in 2009-10, compared with only INR12
million in the previous year. The group's operating margin,
however, declined to 3 per cent in 2009-10, from 4 per cent in
2008-09. Its profitability is expected to improve slightly in
2010-11, as BDO commences milling and processing operations in
October 2010.
About the Group
The MRM group is engaged in the milling, processing, and selling
of basmati rice in the export and domestic markets. It produces
only parboiled rice, which has high demand in the Middle East and
Iran. MRM was set up in 1984 as a partnership firm by Mr. Jai
Kumar Garg and his sons, Mr. Anil Kumar and Mr. Parveen Kumar. BDO
was set up by the Garg family with the intention of increasing the
installed capacity of the MRM group. The group has a total
capacity of 7 tonnes per hour (tph) for milling, and 20 tph for
sorting. This includes the 12-tph grading capacity of BDO, and the
milling plant of 5 tph, which is expected to start commercial
production in October 2010.
The MRM group, on a provisional basis, reported a profit after tax
(PAT) of INR1.8 million on net sales of INR1.01 billion for
2009-10; it had reported a PAT of INR1.5 million on net sales of
INR735 million for 2008-09.
NATIONAL PLASTIC: ICRA Assigns 'LB+' Rating to INR9.04cr Term Loan
------------------------------------------------------------------
ICRA has assigned 'LB+' rating to the INR9.04 crore term loans and
INR12.50 crore cash credit limits of National Plastic Technologies
Limited. ICRA has also assigned 'A4' rating to the INR5.50 crore
non-fund based facilities of NPTL.
The ratings are constrained by the highly competitive nature of
the plastics moulding industry; exposure of earnings to downturns
associated with automobile and electronics industries; and,
stretched financial risk profile with high gearing levels,
slippage in debt repayment and stretched liquidity position. The
ratings, however, favorably factor the long track record of the
group in the plastics business; stable margins despite
fluctuations in raw material prices because of contractual
pass through provisions; and, the diversified client profile.
About National Plastic
National Plastic Technologies Limited is part of the National
Plastics Group of Chennai, which was started in 1951 by
Mr. Bachhraj Parakh. The Group was among the first to enter in
the plastics industry in South India and initially manufactured
household articles such as water containers and kitchen wares.
NPTL was set up in 1989, and currently manufactures plastic
mouldings for industries such as automotive (for instance, lamp
housings, interior pillars, radiator grills) and consumer
electronics (for instance, television, air conditioner, printer
casings, keyboard parts). The company has four factories with two
located in Tamil Nadu, one in Pondicherry and one in Himachal
Pradesh. In FY 2010, over 63% of the company's total revenues were
contributed by the automotive sector.
OPG INDUSTRIES: ICRA Reaffirms 'LBB+' on INR5cr LT Bank Facilities
------------------------------------------------------------------
ICRA has reaffirmed the long term rating of the INR5.00 crore
long term fund based bank facilities of OPG Industries Limited at
"LBB+". The outlook on the long term rating is stable. ICRA has
also reaffirmed the short term rating of the INR10.00 crore
non fund based facilities of OIL at "-A4+".
The reaffirmation of the ratings take into consideration a highly
conservative capital structure of OIL and its low dependence on
bank finance for its operations, which keeps its coverage
indicators at comfortable levels despite weak profitability. The
company is engaged in the trading of several commodities including
steel, coal and wheat, of which steel trading accounts for a
significant proportion. The nature of the business keeps the
company's margins at very low levels and also makes them
susceptible to commodity cycles, which could make OIL's cash flow
and profitability volatile. However, experience of the promoters
in the trading business provides comfort. ICRA notes that OIL's
sales and purchase transactions, especially for steel trading,
have been largely with other group companies during 2009-10, which
reflects its limited presence in the market.
About OPG Industries
Incorporated in 1993, OIL is part of the OPG group. The company
is engaged in the trading of steel, coal and wheat.
Recent Results
During 2009-10, OIL reported a net profit of INR0.09 crore
(provisional) on a turnover of INR230.11 crore (provisional). In
2008-09, the company posted a net profit of INR0.04 crore on a
turnover of INR73.97 crore.
OPG METALS: ICRA Reaffirms 'LBB+' Rating on INR16cr Long Term Loan
------------------------------------------------------------------
ICRA has reaffirmed the long term rating of the INR16.00 crore
long term fund based bank facility of OPG Metals Private Limited
at "LBB+". The outlook on the long term rating is stable. ICRA
has also reaffirmed the short term rating of the INR5.00 crore
fund based bank facility and INR50.00 crore non fund based bank
facility of OMPL at "A4+".
ICRA has withdrawn the rating outstanding on the INR2.84 crore
term loan facility of OMPL, at the request of the company, as the
loan has been fully repaid. There is no amount outstanding against
the rated instrument
The rating reaffirmations take into consideration a sharp decline
in OMPL's production of steel billets during 2009-10, which had
adversely impacted its sales and profits during the year. ICRA
notes that OMPL is completely dependent on a group company OPG
Energy Private Limited, for meeting its power requirements, as it
does not have a sanctioned facility from the state electricity
board. This adversely impacted OMPL's capacity utilization during
2009-10, as power supply from OEPL was constrained because
OEPL was able to realise more lucrative rates from the sale of the
power to other parties. The ratings further take into
consideration OMPL's low value added nature of operations,
susceptibility of its margins to the cyclicality in steel prices,
its weak profitability and depressed coverage indicators. However,
a comfortable capital structure following an equity infusion by
the promoters during 2008-09 supports the overall financial
risk profile of the company. Although OMPL's sales were made
largely to a group company during 2009-10, the company also sells
its produce to other regional players in south and central Tamil
Nadu. The capacity utilization of OMPL has already shown an
improvement in the first five months of the current year over the
corresponding period in the previous year. Nevertheless, ICRA
believes that OMPL's production levels would continue to be
vulnerable to availability of power from OEPL going forward.
About OPG Metals
Incorporated in 1996 as Sai Kripa Vyapar Private Limited, the
company started operations as a steel trader. The name was changed
to OPG Metals Private Limited in 2005 and it commenced
manufacturing operations with a 15 T induction furnace.
Subsequently OMPL added two more 15 T induction furnaces and
increased its capacity to the current levels of approximately
1,00,000 Tonnes per annum. The Company manufactures steel billets
and also trades in steel products.
Recent Results
During 2009-10, OMPL posted a net profit of INR0.51 crore
(provisional) on an operating income of INR283.06 crore
(provisional). During 2008-09, the company reported a net profit
of INR1.99 crore on an operating income of INR309.65 crore.
RAJALAXMI EDUCATION: CRISIL Cuts Rating on INR180MM Loan to 'D'
---------------------------------------------------------------
CRISIL has downgraded its rating on the bank facility of Rajalaxmi
Education Trust to 'D' from 'BB+/Stable'.
Facilities Ratings
---------- -------
INR180.00 Million Term Loan D (Downgraded from 'BB+/Stable')
The rating action reflects delays by RET in servicing its term
loan because of its weak liquidity and cash-flow mismatch. The
weak liquidity is on account of low revenues and cash accruals
vis-…-vis large debt obligations and capital expenditure.
RET has a limited track record, weak financial risk profile, and
is susceptible to adverse regulatory changes in the intensely
competitive education sector. The healthy growth prospects for
the sector, and the expected increase in intake of students by the
trust are, however, likely to increase RET's revenues over the
medium term.
RET was established by Mr. Rajesh Chowta and Mrs. Savitha Chowta
in 2005. The trust imparts engineering and management education
through the Mangalore Institute of Technology and Engineering
(MITE). The trust began offering engineering courses in 2007-08
(refers to financial year, April 1 to March 31), and launched
courses in management in 2008-09. MITE is also among the eight
colleges selected by Bosch Rexroth Ltd (Bosch; one of the world's
leading players in drive and control technologies) to set up a
regional centre of competence. Bosch has invested INR54 million in
the centre, which was completed in September 2010. Bosch is also
training MITE faculty members as part of its programme. The
centre is expected to help the college in attracting more students
and companies to its campus
RET is estimated to report an excess of income over expenditure of
INR30.3 million on revenues of INR74.2 million for 2009-10; it
reported an excess of income over expenditure of INR27.8 million
on revenues of INR56.2 million for 2008-09.
SAALIM SHOES: ICRA Assigns 'LBB+' Rating to INR6.8cr Term Loan
--------------------------------------------------------------
ICRA has assigned "LBB+" rating to the INR6.8 crore term loan
facilities of Saalim Shoes Private Limited. The outlook on the
long-term rating is stable. ICRA has also assigned "A4+" rating
to the Rs.18.0 crore fund based facilities and the Rs.7.5 crore
non-fund based facilities of SSPL.
The assigned ratings consider the Company's integrated operations
with its own tannery facility and the modest, but fluctuating
returns and coverage indicators. The ratings factor in SSPL's
small scale of operations, which restrict scale economies and
financial flexibility, its stretched capital structure / cash
flows and high customer concentration. While competitive pressures
are likely to maintain pressure on margins, significant
fluctuations in foreign exchange rates are likely to drive
volatility in earnings.
About Saalim Shoes
Saalim Shoes Private Limited was incorporated in 2006. SSPL
established the full-shoe unit in 2008 and subsequently it
integrated backwards to establish a tannery unit in 2009.The
product portfolio mainly comprises finished leather and other kind
of shoes. The Company currently has its manufacturing facilities
at Ranipet with strength of 1200 employees across the units.
SHREE SAI PRAKASH: CRISIL Reaffirms 'BB+' Rating on INR29.8MM Loan
------------------------------------------------------------------
CRISIL's rating on the bank facilities of Shree Sai Prakash Alloys
Pvt Ltd, a part of the Saiji group of industries, continues to
reflect the Saiji group's exposure to the cyclicality inherent in
the steel business, the uncertainty in the business environment in
Meghalaya, and implementation risks related to its large on-going
debt-funded capital expenditure (capex). These weaknesses are
partially offset by the integrated nature of operations of the
group entities, leading to improvement in its market position and
moderate financial risk profile.
Facilities Ratings
---------- -------
INR55.0 Million Cash Credit BB+/Stable (Reaffirmed)
INR29.8 Million Term Loan BB+/Stable (Reaffirmed)
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of SSP, Shree Sai Rolling Mills (India)
Ltd, Shree Sai Smelters (India) Ltd, and Shree Sai Megha Alloys
Ltd, together referred to as the Saiji group. This is because
ingots produced by SSS and SSP are used by SSR, while SSM has
guaranteed all the loans of SSS and SSP.
Outlook: Stable
CRISIL believes that the Saiji group will continue to benefit from
its integrated operations and established market position in the
steel segment, over the medium term. The outlook may be revised
to 'Positive' if the group's proposed capex leads to significant
improvement in its scale of operations, while maintaining
profitability. Conversely, the outlook may be revised to
'Negative' if there is cost and time overrun in executing the
project and the company is not able to ramp-up the capacity or if
the capex programme is larger than expected or funded with higher
proportion of debt.
About the Group
SSP, based in Byrnihat (Meghalaya), is part of the Saiji group of
industries, promoted by Mr. J P Jaiswal and Mr. Sandeep Bhagat.
The group has a manufacturing presence in Assam, Meghalaya, West
Bengal, and Arunachal Pradesh. It has an installed capacity to
produce 60,000 tonnes per annum (tpa) of rolling materials in SSR,
32,000 tpa of ingots and 7500 tpa of ferroalloys in SSS, and
28,000 tpa of ingots in SSP. The group's on-going capex is aimed
at increasing its rolling capacity by 68,400 tpa and billet
capacity by 40,400 tpa.
For 2009-10 (refers to financial year, April 1 to March 31), the
Saiji group, on a provisional basis, reported a consolidated
profit after tax (PAT) of INR19 million on net sales of INR1
billion; it had reported a PAT of INR33 million on net sales of
INR826 million for the previous year.
SHREE SAI ROLLING: CRISIL Reaffirms 'BB+' Rating on INR80MM Loan
----------------------------------------------------------------
CRISIL's rating on the bank facilities of Shree Sai Rolling Mills
(India) Ltd, a part of the Saiji group of industries, continues to
reflect the Saiji group's exposure to the cyclicality inherent in
the steel business, the uncertainty in the business environment in
Meghalaya, and implementation risks related to its large on-going
debt-funded capital expenditure (capex). These weaknesses are
partially offset by the integrated nature of operations of the
group entities, leading to improvement in its market position and
moderate financial risk profile.
Facilities Ratings
---------- -------
INR200 Million Cash Credit BB+/Stable (Reaffirmed)
INR80 Million Term Loan BB+/Stable (Reaffirmed)
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of SSR, Shree Sai Prakash Alloys Pvt Ltd,
Shree Sai Smelters (India) Ltd, and Shree Sai Megha Alloys Ltd,
together referred to as the Saiji group. This is because ingots
produced by SSS and SSP are used by SSR, while SSM has guaranteed
all the loans of SSS and SSP.
Outlook: Stable
CRISIL believes that the Saiji group will continue to benefit from
its integrated operations and established market position in the
steel segment, over the medium term. The outlook may be revised to
'Positive' if the group's proposed capex leads to significant
improvement in its scale of operations, while maintaining
profitability. Conversely, the outlook may be revised to
'Negative' if there is cost and time overrun in executing the
project and the company is not able to ramp-up the capacity or if
the capex programme is larger than expected or funded with higher
proportion of debt.
About the Group
SSR, based in Byrnihat, Meghalaya, is part of the Saiji group of
industries, promoted by Mr. J P Jaiswal and Mr. Sandeep Bhagat.
The group has a manufacturing presence in Assam, Meghalaya, West
Bengal, and Arunachal Pradesh. It has an installed capacity to
produce 60,000 tonnes per annum (tpa) of rolling materials in SSR,
32,000 tpa of ingots and 7500 tpa of ferroalloys in SSS, and
28,000 tpa of ingots in SSP. The group's on-going capex is aimed
at increasing its rolling capacity by 68,400 tpa and billet
capacity by 40,400 tpa.
For 2009-10 (refers to financial year, April 1 to March 31), the
Saiji group, on a provisional basis, reported a consolidated
profit after tax (PAT) of INR19 million on net sales of INR1
billion; it had reported a PAT of INR33 million on net sales of
INR826 million for the previous year.
SHREE SAI SMELTERS: CRISIL Reaffirms 'BB+' Ratings on Bank Debts
----------------------------------------------------------------
CRISIL's rating on the bank facilities of Shree Sai Smelters
(India) Ltd, a part of the Saiji group of industries, continues to
reflect the Saiji group's exposure to the cyclicality inherent in
the steel business, the uncertainty in the business environment in
Meghalaya, and implementation risks related to its large on-going
debt-funded capital expenditure (capex). These weaknesses are
partially offset by the integrated nature of operations of the
group entities, leading to improvement in its market position and
moderate financial risk profile.
Facilities Ratings
---------- -------
INR56.8 Million Cash Credit BB+/Stable (Reaffirmed)
INR4.5 Million Term Loan BB+/Stable (Reaffirmed)
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of SSS, Shree Sai Prakash Alloys Pvt Ltd,
Shree Sai Rolling Mills (India) Ltd, and Shree Sai Megha Alloys
Ltd, together referred to as the Saiji group. This is because
ingots produced by SSS and SSP are used by SSR, while SSM has
guaranteed all the loans of SSS and SSP.
Outlook: Stable
CRISIL believes that the Saiji group will continue to benefit from
its integrated operations and established market position in the
steel segment, over the medium term. The outlook may be revised to
'Positive' if the group's proposed capex leads to significant
improvement in its scale of operations, while maintaining
profitability. Conversely, the outlook may be revised to
'Negative' if there is cost and time overrun in executing the
project and the company is not able to ramp-up the capacity or if
the capex programme is larger than expected or funded with higher
proportion of debt.
About the Group
SSS, based in Byrnihat, Meghalaya, is part of the Saiji group of
industries, promoted by Mr. J P Jaiswal and Mr. Sandeep Bhagat.
The group has a manufacturing presence in Assam, Meghalaya, West
Bengal, and Arunachal Pradesh. It has an installed capacity to
produce 60,000 tonnes per annum (tpa) of rolling materials in SSR,
32,000 tpa of ingots and 7500 tpa of ferroalloys in SSS, and
28,000 tpa of ingots in SSP. The group's on-going capex is aimed
at increasing its rolling capacity by 68,400 tpa and billet
capacity by 40,400 tpa.
For 2009-10 (refers to financial year, April 1 to March 31), the
Saiji group, on a provisional basis, reported a consolidated
profit after tax (PAT) of INR19 million on net sales of INR1
billion; it had reported a PAT of INR33 million on net sales of
INR826 million for the previous year.
SUSEE AUTO: ICRA Assigns 'LBB' Rating to INR10.6cr LT Bank Debts
----------------------------------------------------------------
ICRA has assigned 'LBB' rating to the INR10.6 crore long term fund
based facilities, and INR8.4 crore of proposed long term
facilities of Susee Auto Sales and Service Private Limited. ICRA
has also assigned 'A4' rating to the INR4.5 crore short term non-
fund based facilities of SASSPL. The outlook on the long term
rating is stable.
The assigned ratings factor in SASSPL's position as the sole
authorised dealer for BAL three wheelers in the Madurai region and
the long standing experience of the promoters in the auto
dealership business. The company holds Ford dealership and
dealership for Maruti and BAL spares through its subsidiaries,
adding to some business diversity. However, the ratings are
constrained by the weak financial profile of the Company, marked
by high capitalization and stretched coverage indicators. While
the Company's entry into Porsche and Volkswagen dealerships are
expected to improve the overall sales, the pickup of demand and
ability of the company to tap the newer markets are to be seen.
About Susee Auto Sales
Incorporated in 2002, Susee Auto Sales and Service Private Limited
is the oldest company of the Susee Group. SASSPL which was
dealing with Mahindra and Mahindra vehicles in the past now acts
as an authorized dealer for three wheelers of BAL in Madurai and
other tier-2 and tier-3 towns in Tamil Nadu apart from recently
launched Porsche dealership for the Tamil Nadu region. The Company
plans to enter into the dealership for Volkswagen vehicles this
fiscal.
SASSPL is wholly-owned by the promoter (Mr. S. Jeyabalan) and his
son (Mr. J. Rajiv Subramanian). The business is presently managed
by Mr. J. Rajiv Subramanian and has sixteen outlets across Tamil
Nadu, each with a showroom and workshop. The Company has two
subsidiaries (i) Susee Auto Spares Private Limited, an
authorised distributor for Maruti Genuine Parts, Bajaj spares,
Bosch and TVS Tyres in Madurai and Chennai and (ii) Susee Premium
Automobiles Private Limited, which handles dealership of Ford
vehicles in Salem and Trichy.
The Susee Group was started as a family business way back in the
late 1930s by Mr. Subramania Nadar and Ms. Seeniyammal. Starting
as agricultural traders, the promoters later ventured into other
businesses like distribution of FMCG products and gas stations.
The group later expanded its horizon to the Automobile industry by
venturing into Auto Dealerships for renowned Original Equipment
Manufacturers (OEMs) about four decades back. The group also later
commenced an NBFC and an ITeS company two decades back. The group
currently has over 50 branches spread across various regions in
Tamil Nadu and is trying to build and promote Susee as a renowned
auto dealership brand in Tamil Nadu.
Recent results
SASSPL reported profit after tax (PAT) of INR0.3 crore on
operating income of INR44.7 crore during 2009-10, against negative
PAT of INR0.4 crore on operating income of INR38.1 crore for the
corresponding previous fiscal.
SUSEE AUTO SPARES: ICRA Places 'LBB' Rating on INR7.3cr LT Loan
---------------------------------------------------------------
ICRA has assigned "LBB" rating to the INR7.3 crore long term fund
based facilities, and INR 8.9 crore of proposed long term
facilities of Susee Auto Spares Private Limited. ICRA has also
assigned "A4" rating to the INR 2.9 crore short term non-fund
based facilities of SASPL. The outlook on the long term rating is
stable.
The assigned ratings consider the Company as being a part of a
larger group dealing in automobiles and spares. SASPL is a
subsidiary of Susee Auto Sales and Service Private Limited, which
acts as the authorised dealer for Bajaj Auto three-wheelers in
Madurai. The ratings also factor in the promoter's long standing
experience in the auto dealership business and the Company
operating as authorised spares dealer for Maruti Genuine Parts
(MGP) and Bajaj Auto Spares in Chennai and Madurai. However,
the ratings are constrained by the weak financial profile of the
Company, characterized by high gearing, stretched cash flows and
working capital indicators. Currently, scale economics are
restricted due to the small scale of operations and is expected to
increase with the coverage of Mahindra spares under its
repertoire.
About Susee Auto Spares
Incorporated in 2004, Susee Auto Spares Private Limited is a
company of the Susee Group distributing Maruti Genuine Parts, Baja
Auto Spares Parts and those from Bosch, TVS Tyres, Fenner, etc.
SASPL is a subsidiary of Susee Auto Sales and Service Private
Limited and is currently managed by Mr. J. Rajiv Subramanian.
The Susee Group was started as a family business way back in the
late 1930s by Mr. Subramania Nadar and Ms. Seeniyammal. Starting
as agricultural traders, the promoters later ventured into other
businesses like distribution of FMCG products and gas stations.
The group later expanded its horizon to the Automobile industry by
venturing into Auto Dealerships for renowned Original Equipment
Manufacturers (OEMs) about four decades back. The group also
later commenced an NBFC and an ITeS company two decades back.
The group currently has over 50 branches spread across various
regions in Tamil Nadu and is trying to build and promote 'Susee'
as a renowned auto dealership brand in Tamil Nadu.
SUSEE AUTOMOBILES: ICRA Assigns 'LBB+' Rating to INR9.5cr LT Loan
-----------------------------------------------------------------
ICRA has assigned 'LBB+' rating to the INR9.5 crore long term fund
based facilities, INR1.6 crore term loan and INR8.0 crore of
proposed long term facilities of Susee Automobiles Private
Limited. ICRA has also assigned 'A4+' rating to the INR1.0 crore
short term non-fund based facilities of SAPL. The outlook on the
long term rating is stable.
The assigned ratings factor in the Company's position as sole
authorised dealer for M&M vehicles in Madurai and other tier-2
towns in Tamil Nadu, M&M's leadership in the Indian utility
vehicles segment and the long standing experience of the promoters
in the auto dealership business. The ratings also consider the
Company's recent entry into the pre-owned vehicle segment through
Mahindra First Choice and the recent launches of new models by
M&M, which is expected to drive sales volumes and better margins.
However, the ratings are constrained by the weak financial profile
of the Company, characterized by high gearing and stretched cash
flows. Inherent to the auto dealership business, the margins for
the Company is thin resulting in limited financial flexibility.
About Susee Automobiles
Incorporated in 2004, Susee Automobiles Private Limited is the
flagship company of the Susee Group. SAPL which was also
dealing with Ford and AMW vehicles in the past now focuses on
dealership of M&M vehicles in Madurai and other tier-2 and tier-3
towns in Tamil Nadu. SAPL is wholly-owned by the promoter
(Mr. S. Jeyabalan) and his son (Mr. J. Rajiv Subramanian). The
Company has ten outlets across Tamil Nadu, each encompassing a
showroom and workshop.
The Susee Group was started as a family business way back in the
late 1930s by Mr. Subramania Nadar and Ms. Seeniyammal. Starting
as agricultural traders, the promoters later ventured into other
businesses like distribution of FMCG products and gas stations.
The group later expanded into Automobile industry by venturing
into Auto Dealerships for renowned Original Equipment
Manufacturers (OEMs). The group also has an NBFC and an ITeS
Company. The group currently has over 50 branches spread across
various regions in Tamil Nadu and is trying to build and promote
Susee' as a renowned auto dealership brand in Tamil Nadu.
Recent results
SAPL reported profit after tax (PAT) of INR0.5 crore on operating
income of INR101.5 crore during 2009-10, against PAT of
INR0.3 crore on operating income of INR88.3 crore for the
corresponding previous fiscal.
SUTARIYA GEMS: CRISIL Reassigns 'B' Rating to Packing Credit
------------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to the long-term bank
facilities of Sutariya Gems Pvt Ltd; these facilities were earlier
short-term facilities which were rated 'P4' by CRISIL. CRISIL has
also reaffirmed its rating on the company's bills discounting
facility at 'P4'.
Facilities Ratings
---------- -------
INR35.00 Million Packing Credit B/Stable (Reassigned)
INR115.00 Million Post-Shipment B/Stable (Reassigned)
Credit
INR50.00 Million Bills Discounting P4 (Reaffirmed)
The ratings continue to reflect Sutariya Gems' weak financial risk
profile marked by low net worth and weak debt protection metrics,
modest scale of operations, and long working capital cycle. These
rating weaknesses are partially offset by the benefits that
Sutariya Gems derives from its promoters' experience of around
three decades in the diamond business.
Outlook: Stable
CRISIL believes that Sutariya Gems will continue to benefit from
its established customer relationships, and the improving demand
scenario. The outlook may be revised to 'Positive' if there is a
significant improvement in the company's scale of operations and
working capital management. Conversely, the outlook may be
revised to 'Negative' if Sutariya Gems' profitability deteriorates
significantly, thereby adversely affecting its cash accruals and
capital structure, or if its working capital cycle increases,
resulting in a further weakening in its liquidity.
About Sutariya Gems
Sutariya Gems was established as a partnership firm, Sutaria
Brothers, by Mr. Ravji Patel, Mr. Bhagwan Patel, Mr. Premji Patel,
and Mr. Manji Beladiya. The firm was reconstituted as a private
limited company on February 1, 2009. Sutariya Gems manufactures
and exports cut and polished diamonds and specializes in low-value
white and brown diamonds ranging from 0.04 to 0.10 carats. It
derives around 90 per cent of its revenues from the overseas
markets, with its major markets being Hong Kong, Belgium,
Thailand, the United Arab Emirates, and the US. The company has
also invested in a windmill for tax planning purposes.
For 2009-10 (refers to financial year, April 1 to March 31),
Sutariya Gems reported a profit after tax of INR6.1 million on net
sales of INR711.9 million (including income from windmill
operations), against a net loss of INR10.57 million on net sales
of INR645.5 million for 2008-09.
=================
I N D O N E S I A
=================
BANK MANDIRI: Fitch Affirms 'BB+' Issuer Default Rating
-------------------------------------------------------
Fitch Ratings has upgraded PT Bank Mandiri (Persero) Tbk's
National Long-term rating to 'AAA(idn)' from 'AA+(idn)'. The
agency has simultaneously affirmed the bank's Long-term foreign
currency and local currency Issuer Default Ratings at 'BB+',
Short-term foreign currency IDR at 'B', Individual Rating at
'C/D', Support Rating at '3' and Support Rating Floor at 'BB'.
The Outlook is Stable.
The upgrade of Mandiri's National rating reflects its improved
financial performance despite more challenging economic conditions
during Q408-2009, improved asset quality with NPLs remaining well-
reserved and its satisfactory capitalization. The ratings also
reflect the bank's position as Indonesia's largest majority state-
owned bank. Fitch may upgrade Mandiri's Support Floor rating
given its systemic importance to the domestic banking industry and
subject to a more favorable operating environment and economic
outlook.
Fitch notes that there has been considerable improvement in
Mandiri's loan quality since end-2005 under new management's loan
resolution efforts. The bank's NPLs declined to 2.3% of gross
loans at end-H110 (end-Q109: 5.9%), mainly due to an improved
corporate and commercial loan portfolio. Mandiri has been
building its loan loss reserves to over 200% in Q210 (2008: 127%).
Against the backdrop of stronger domestic economic growth, Fitch
expects NPLs to remain low at end-2010.
Pre-provision ROA increased to 3.7% in H110 (2009: 3.3%) as net
interest margins improved with lower deposit funding cost and
stronger loan growth, and as non-interest income benefited from
stronger fee income and higher gains from the sale of government
securities. Loans grew strongly by 10% in H110 with higher
yielding consumers and small/micro loans outpacing overall loan
growth and contributing to a slightly larger share of total loans
at 27% in end-H110 (2008: 24%).
Capital ratios remained satisfactory with total CAR at 14.5%
(Tier1: 11.2%) at end-June 2010, though this has been on the
decline due to loan expansion and the partial application of Basel
II (5% operational risk). The bank has made some effort to
improve its capital ratios through deductions for dividends,
issuing sub-debt in Q409, as well as an equity injection plan
through rights issues up to IDR14trn in 2011. The Indonesian
government intends to maintain its majority ownership at about
60%. The internal target is to keep total CAR at a range of 13%-
14%.
Mandiri was formed in late 1998 from the merger of four bankrupted
state-owned banks in the wake of the Asian financial crisis over
1997-1998. It was publicly listed in 2003 and remains majority-
owned by the Indonesian government (66.7% as at end-June 2010).
INTERNATIONAL NICKEL: May Face Lawsuit Over Unpaid Rent
-------------------------------------------------------
The Jakarta Globe reports that the regional government of
Southeast Sulawesi said it plans to sue PT International Nickel
Indonesia Tbk for its past failures to pay rent on a nickel field
in the province.
According to The Jakarta Globe, Regional Governor Nur Alam on
Sunday revealed the plan to take International Nickel Indonesia
(Inco) to court. "The company has occupied more than 62,000
hectares of nickel field in this area based on a working contract
since 1968, but has not made any contributions to improve the
community's welfare," Nur said.
The Jakarta Globe relates Governor Nur said the first stage of
Inco's working contract was set to end in 1996, but the company
extended it in 1992. The second stage of the contract is due to
end in 2018. For more than its first two decades of control of
the field, the governor said, Inco did not pay its annual rental
cost of US$1 per hectare. "The company only started to pay the
rental cost after it extended the working contract in 1992," he
claimed. He said Southeast Sulawesi would sue Inco for the unpaid
rent.
The Southeast Sulawesi government also plans to ask Inco to
release the whole area so that other companies can use it, The
Jakarta Globe adds.
The governor said the plan to take Inco to court had already been
approved by President Susilo Bambang Yudhoyono, according to The
Jakarta Globe.
About PT Inco
Headquartered in Jakarta, Indonesia, PT International Nickel
Indonesia Tbk -- http://pt-inco.co.id-- is a nickel producer
with a production facility and mine are in Sorowako, Sulawesi,
where it has a contract agreement until 2025. It produces
nickel matte, an intermediate product, from lateritic ores at
its integrated mining and processing facilities near Sorowako on
the island of Sulawesi. Inco Limited of Canada holds a 60.8%
stake of the company and Sumitomo Metal Mining Co Ltd. holds a
20.1% stake.
=========
J A P A N
=========
AIFUL CORP: To Suspend TV Ads Amid Consumer Demands for Refund
--------------------------------------------------------------
Aiful Corp. will suspend television ads a month after rival
Takefuji Corp. filed for bankruptcy because of claims for
interest refunds, Bloomberg News reports citing two people with
knowledge of the matter.
The people, declining to be identified because the decision hasn't
been made public, told Bloomberg News that Aiful will halt TV spot
advertising from Nov. 1. The move was driven by concerns that the
ads would encourage more borrowers to seek refunds, they said.
Bloomberg says Japan's four-year crackdown on the consumer lending
industry forced Aiful and its rivals to repay billions of
dollars in overcharged interest, helping push Takefuji into
bankruptcy last month. Acom Co. and Promise Co. said last week
more borrowers are asking about interest refunds following
Takefuji's collapse, the report adds.
Bloomberg notes that Aiful resumed television ads almost 10 months
ago in 14 areas including Hokkaido, Hiroshima and Nagasaki after
halting them for more than a year. The Kyoto-based company on
Dec. 24 reached an agreement with creditors that helped it to
avoid bankruptcy, Bloomberg says.
According to Bloomberg, one of the people said the decision to
suspend TV advertising again was also spurred by the need to cut
costs amid an industry slump.
About Aiful
Aiful Corporation (TYO:8515) -- http://www.ir-aiful.com/-- is
a Japan-based financial service provider. The company is
engaged in the provision of small-lot uncollateralized loan for
individual consumers, business loan for individuals, as well as
mortgage collateral and credit card services, in addition to the
collection and management of debts. Other business activities
the Company is involved in include the development, investment
and nurture of venture companies, as well as the leasing of real
estates. Headquartered in Kyoto, the Company has 29 subsidiaries
and two associated companies.
* * *
As of October 20, 2010, Aiful Corp. carries Moody's Investor
Service's 'Caa1' issuer, long-term and unsecured debt ratings.
JPM-JC8 TRUST: Moody's Corrects Press Release on Notes Ratings
--------------------------------------------------------------
Moody's Japan K.K has upgraded the ratings for the Class C through
F Trust Certificates issued by JPM-JC8 Trust.
The complete rating actions are:
* Deal Name: JPM-JC8 Trust
-- Class C, Upgraded to Baa3 (sf) from Ba2 (sf); previously,
downgraded to Ba2 (sf) from A2 (sf) on June 24, 2010
-- Class D, Upgraded to Ba1 (sf) from B1 (sf); previously,
downgraded to B1 (sf) from Baa2 (sf) on June 24, 2010
-- Class E, Upgraded to Ba2 (sf) from B2 (sf); previously,
downgraded to B2 (sf) from Baa3 (sf) on June 24, 2010
-- Class F, Upgraded to Ba3 (sf) from B3 (sf); previously,
downgraded to B3 (sf) from Ba2 (sf) on June 24, 2010
Issue Amount (initial): JPY 29.7 billion
* Dividend: Floating
* Transfer Date of Trust Certificates: June 17, 2005
* Final Maturity Date: April 2013
* Underlying Asset (initial): four non-recourse loans and three
specified bonds backed by real estate properties and
properties
* Originator: JPMorgan Chase Bank, N.A. and JP Morgan
Securities Japan Co., Ltd/ JPMorgan Securities Japan Co., Ltd
* Arranger: JPMorgan Securities Japan Co., Ltd
* Asset Trustee: New York Mellon Trust Bank Ltd. (initial: J.P.
Morgan Trust Bank Ltd.)
* JPM-JC8 Trust, effected in June 2005, represents the
securitization backed by real estate properties and properties
in trust.
JPMorgan Securities Japan Co., Ltd (as the Seller) entrusted seven
non-recourse loans and specified bonds to the Asset Trustee, and
in turn received the Class A through F and X trust certificates.
The Seller sold those trust certificates to investors. Those
trust certificates are rated by Moody's.
In this transaction, payment of the trust certificates will be
made i) on a pro-rata basis according to a given allocated amount
in these cases; a) repayment of the Underlying Assets on their
loan maturity dates, and b) prepayment by liquidation and
refinance on each Underlying Asset, as well as ii) on a sequential
basis in case of payment by liquidation of collateral when loan
default occurs.
Four non-recourse loans and one specified bond were paid/redeemed
in full by their loan maturity dates. Additionally, one of the
remaining loans ("Loan 1") -- backed by a retail building around
the Tokyo metropolitan area -- was recovered in full by collection
activities in July 2010, while it had been under special servicing
since April 2010.
The other loan ("Loan 2") -- backed by logistics facilities around
the Tokyo metropolitan area -- remains.
Rating Rationale
The rating action reflects these factors.
(1) The probability of generating losses within the remaining
portfolio is less, after the specially serviced loan ("Loan1")
was fully recovered.
(2) Occupancy rate for and net cash flow from collateral assets of
the remaining loan ("Loan2") are on a recovery trend.
(3) However, since Loan2 has only about five months before its due
date, there remains the need to apply stress on its recovery
assumptions in the event of it moving into a special servicing
period.
(4) Principal repayments on a pro rata basis from the loans --
except Loan1 -- have not promoted improvement of the portion
of subordinate classes.
Moody's examined all the way through occupancy for and cash flow
from the collateral. In addition, it prepared a number of its
expected recovery scenarios on the property disposal, and
estimated leverage level of each class.
Moody's did not receive or take into account a third party due
diligence report on the underlying assets or financial instruments
related to the monitoring of this transaction in the past six
months.
Regulatory Disclosures
Credit ratings are Moody's current opinions of the relative future
credit risk of entities, credit commitments, or debt or debt-like
securities. Moody's defines credit risk as the risk that an
entity may not meet its contractual, financial obligations as they
come due and any estimated financial loss in the event of default.
Credit ratings do not address any other risk, including but not
limited to: liquidity risk, market value risk, or price
volatility. Credit ratings do not constitute investment or
financial advice, and credit ratings are not recommendations to
purchase, sell, or hold particular securities. No warranty,
express or implied, as to the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any such
rating or other opinion or information is given or made by Moody's
in any form or manner whatsoever.
The credit risk of an issuer or its obligations is assessed based
on information received from the issuer or from public sources.
Moody's adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources Moody's considers to be reliable. However, Moody's
is not an auditor and cannot in every instance independently
verify or validate information received in the rating process.
Moody's may change the rating when it deems necessary. Moody's
may also withdraw the rating due to insufficient information, or
for other reasons.
Information sources used to prepare the credit rating are these:
parties involved in the ratings (the Arranger, etc.), parties not
involved in the ratings, public information, confidential and
proprietary Moody's information.
Measures taken to ensure the quality of this information include
preparation or reviews by a third party, etc.
Moody's considers the quality of information available on the
issuer or obligation satisfactory for the purposes of maintaining
a credit rating.
Moody's Japan K.K. is a credit rating agency registered with the
Japan Financial Services Agency and its registration number is FSA
Commissioner (Ratings) No. 2. The Financial Services Agency has
not imposed any supervisory measures on Moody's Japan K.K. in the
past year.
MOODY'S adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources MOODY'S considers to be reliable including, when
appropriate, independent third-party sources. However, MOODY'S is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.
========
K O R E A
=========
NEOSEMITECH CORP: Lawmakers Blast KDB Over Soured Investment
------------------------------------------------------------
Kim Jae-won at The Korea Times reports that lawmakers have
criticized Korea Development Bank for its investment in insolvent
IT firm Neosemitech Corp.
At the Assembly Inspection Tuesday, the Korea Times relates
Rep. Bae Young-sik of the governing Grand National Party said KDB
was aware of the risks associated with Neosemitech, but invested
in the IT company listed on the Kosdaq, or Seoul's lower bourse.
"KDB invested in Neosemitech, and suffered a KRW45 billion loss.
Other investors also received financial damage totaling KRW400
billion as the firm was delisted from the bourse," the Korea Times
quoted Rep. Bae as saying. "KDB should not have purchased bonds
issued by the company, and should punish those executives who are
responsible for doing so."
According to The Korea Times, Rep. Lee Sung-heon of the GNP said,
"Neosemitech has been engaged in illegal accounting for the last
seven years, and released false financial statements. However,
KDB gave the firm the first certificate from KDB Global Star, and
bought KRW10 billion of convertible bonds in June 2008."
Rep. Lee said somebody in KDB should be responsible for the
problems, The Korea Times adds.
The Korea Times says KDB claimed that the lender is also one of
the victims, and criticized an accounting firm, which wrote a
favorable report for the technology firm.
"We just believed the report by the accounting firm," a spokesman
of KDB said. However, he did not know the name of the accounting
company, and said he should find out which one it is, The Korea
Times notes.
Neosemitech Corporation -- http://www.neosemitech.com/--
manufactures and markets semiconductor equipment. The company was
formerly known as Neosemi Tech Corp. and changed its name in
October, 2009. Neosemitech Corporation was founded in 2000 and is
based in Inchon, South Korea.
====================
N E W Z E A L A N D
====================
NEST: Has Been Placed Into Receivership
---------------------------------------
One News reports that Nest has been put into receivership, but
stores are still trading. The report relates that the Newmarket
and Christchurch stores said receivers have been appointed but
they are still trading after a stocktake.
According to the report, franchise stores in Tauranga, Palmerston
North and Napier have not been placed in receivership. The report
relates that owner Pixie McKinnon was quoted last year by the New
Zealand Herald as saying that customers were watching what they
were spending and the homeware market at the top end was getting
smaller.
The business, the report notes, has been advertised for sale and
calls to the stores are being directed to receiver Corporate
Finance Ltd.
Headquartered in New Zealand, Nest is an upmarket homeware chain.
The New Zealand owned company opened its first store in Auckland's
Newmarket about 10 years ago and has spread to other main centres
in recent years. The chain has eleven outlets around the country,
some which are franchise operations. Nest has products
manufactured under its own brand and is also a distributor for
other brands.
SOUTH CANTERBURY: SFO Probe to Focus on 4 or 5 Related Party Loans
------------------------------------------------------------------
Tamsyn Parker at The New Zealand Herald reports that the Serious
Fraud Office investigation into South Canterbury Finance will
focus on four or five related party loans which may not have been
disclosed to either investors or the Crown.
The NZ Herald says the SFO on Tuesday announced it was
investigating Allan Hubbard's failed finance company.
The move, according to the NZ Herald, comes as the SFO nears
completion of its investigation into Aorangi Securities -- another
Hubbard company which was placed under statutory management by the
Government in June.
According to the NZ Herald, SFO chief executive Adam Feeley said
the investigation had come after inquiries by its new Fraud
Detection Unit.
Mr. Feeley told the NZ Herald he would not comment on the details
of the specific transactions it was interested in as that could
identify people that were either suspects or witnesses.
But the SFO was focused on four or five transactions where loans
appear to have been made to related parties including that of the
Hyatt Regency hotel sale.
About South Canterbury
Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA)
-- http://www.scf.co.nz/-- is engaged in the provision of
financial services. The Company's principal activities are
borrowing funds from public and institutional investors and on-
lending those funds to the business, plant and equipment,
property, rural and consumer sectors. It typically advances funds
by means of hire purchase, floor plans, leasing of plant, vehicles
and equipment, personal loans, business term loans and revolving
credit facilities, mortgages against property, and other financial
instruments, including consumer loan insurance.
On August 31, 2010, Trustees Executors Limited, as trustee for
South Canterbury Finance charging group, appointed Kerryn Downey
and William Black of McGrathNicol as receivers of the charging
group's secured assets.
"As Trustee, we have had South Canterbury Finance under heightened
surveillance since 2008. As part of that, SCF was granted a
Trustee waiver in February 2010 to allow it time to recapitalize.
Unfortunately, the Company's Directors have advised us that they
have not been successful with respect to a recapitalization and
requested us to appoint a receiver. At this point we, as Trustee,
agree that it is the best interests of debenture, deposit and bond
holders to do that," said Yogesh Mody, Southern Regional Manager
for Trustees Executors Limited.
The New Zealand government said it would repay South Canterbury's
35,000 depositors and stockholders NZ$1.6 billion under the crown
retail deposit guarantee scheme.
SOUTH CANTERBURY: SFO Demands NBR File on Hyatt Regency Dealings
----------------------------------------------------------------
The National Business Review reports the Serious Fraud Office
served a notice on NBR Tuesday, demanding documents and audio
tapes relating to the paper's investigation of South Canterbury
Finance's dealings over Auckland's Hyatt Regency Hotel. The
deadline for delivery was 9:00 a.m. Wednesday.
According to NBR, the Serious Fraud Act Section 5 notice requires
NBR editor-in-chief Nevil Gibson to hand over all written and
audio notes relating to Matt Nippert's investigation of the Hyatt
Regency, specifically the NBR exclusive story of how one-time
meatworker Peter Symes came to own the hotel.
NBR says the SFO had also threatened jail and heavy fines to back
up its demands for the information.
NBR did not hand over any files when an SFO representative visited
its office at 4:30 p.m. Tuesday, pending legal advice.
At 2:00 p.m. Wednesday, NBR said it handed over the file to the
Serious Fraud Office, adding that the file contained only
information the paper had previously published.
The file, delivered by Mr. Nippert, contained the copies of a
voice tape and notes taken at the time of an interview with Peter
Symes.
NBR publisher Barry Colman said: "On analysis of their request
there was no point in refusing them the material they wanted in
this case and risking anyone going to jail or being fined because
it will be worthless to them -- they could have got it by buying a
paper or reading it online."
The paper also added that it was still waiting on an assurance
that the SFO would not return for more information at a later date
involving confidential or whistleblower sources.
Mr. Colman said it was the first time in NBR's 40 year history
that journalists' files had been demanded by police or other state
investigators.
About South Canterbury
Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA)
-- http://www.scf.co.nz/-- is engaged in the provision of
financial services. The Company's principal activities are
borrowing funds from public and institutional investors and on-
lending those funds to the business, plant and equipment,
property, rural and consumer sectors. It typically advances funds
by means of hire purchase, floor plans, leasing of plant, vehicles
and equipment, personal loans, business term loans and revolving
credit facilities, mortgages against property, and other financial
instruments, including consumer loan insurance.
On August 31, 2010, Trustees Executors Limited, as trustee for
South Canterbury Finance charging group, appointed Kerryn Downey
and William Black of McGrathNicol as receivers of the charging
group's secured assets.
"As Trustee, we have had South Canterbury Finance under heightened
surveillance since 2008. As part of that, SCF was granted a
Trustee waiver in February 2010 to allow it time to recapitalize.
Unfortunately, the Company's Directors have advised us that they
have not been successful with respect to a recapitalization and
requested us to appoint a receiver. At this point we, as Trustee,
agree that it is the best interests of debenture, deposit and bond
holders to do that," said Yogesh Mody, Southern Regional Manager
for Trustees Executors Limited.
The New Zealand government said it would repay South Canterbury's
35,000 depositors and stockholders NZ$1.6 billion under the crown
retail deposit guarantee scheme.
SOUTH CANTERBURY: Receiver to Issue Update on Asset Sale This Week
------------------------------------------------------------------
The receiver of South Canterbury Finance expects to make an
announcement on the sale of some of its assets this week,
BusinessDesk reports.
BusinessDesk relates receiver Kerryn Downey of McGrathNicol told
Radio New Zealand he expects to make an announcement in the next
day or so in respect to SCF's holdings in Helicopters NZ and
Scales Corp, the two companies SCF founder Allan Hubbard poured
into the failed financier in a bid to boost its equity and stave
off collapse.
At the time, BusinessDesk notes, the units were valued at about
NZ$152.5 million.
"I'm very optimistic we'll get better than face value," Mr. Downey
said, according to BusinessDesk.
About South Canterbury
Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA)
-- http://www.scf.co.nz/-- is engaged in the provision of
financial services. The Company's principal activities are
borrowing funds from public and institutional investors and on-
lending those funds to the business, plant and equipment,
property, rural and consumer sectors. It typically advances funds
by means of hire purchase, floor plans, leasing of plant, vehicles
and equipment, personal loans, business term loans and revolving
credit facilities, mortgages against property, and other financial
instruments, including consumer loan insurance.
On August 31, 2010, Trustees Executors Limited, as trustee for
South Canterbury Finance charging group, appointed Kerryn Downey
and William Black of McGrathNicol as receivers of the charging
group's secured assets.
"As Trustee, we have had South Canterbury Finance under heightened
surveillance since 2008. As part of that, SCF was granted a
Trustee waiver in February 2010 to allow it time to recapitalize.
Unfortunately, the Company's Directors have advised us that they
have not been successful with respect to a recapitalization and
requested us to appoint a receiver. At this point we, as Trustee,
agree that it is the best interests of debenture, deposit and bond
holders to do that," said Yogesh Mody, Southern Regional Manager
for Trustees Executors Limited.
The New Zealand government said it would repay South Canterbury's
35,000 depositors and stockholders NZ$1.6 billion under the crown
retail deposit guarantee scheme.
=====================
P H I L I P P I N E S
=====================
UNION BANK: Fitch Affirms 'BB-' Issuer Default Rating
-----------------------------------------------------
Fitch Ratings has affirmed Union Bank of the Philippines' ratings,
including its Long-term foreign currency Issuer Default Rating at
'BB-', National Long-term Rating at 'A+(phl)' with a Stable
Outlook, and its Individual Rating at 'D'. A full list of the
rating actions is included at the end of this release.
Union Bank's ratings reflect its fairly liquid balance sheet,
reasonable earnings profile and good capital buffer, which help
mitigate vulnerabilities arising from its exposure to investment
properties (mostly foreclosed assets); but the ratings also take
into account the bank's small, concentrated loan book.
The bank's investment properties were a high 56% of core equity at
end-June 2010 (end-2009: 60%; end-2008: 75%). Fitch notes that
Union Bank carries these properties at fair values, and hence
could be exposed to some price volatility, although such downside
risks did not materialize in 2009 as the downturn in the
Philippines was fairly short-lived. Also, the bank's NPLs only
increased slightly in 2009, staying well-reserved at 104% at end-
2009. This reflects its focus on large top-tier corporations in
the Philippines, although, as a result, its loan book is fairly
concentrated. Union Bank's balance sheet continues to be highly
liquid, with loans/deposits ratio of 36% at end-2009.
Fitch notes that ongoing weaknesses in many Western economies
could adversely affect the Philippine economy and, in turn the
performance of local banks, including Union Bank. Amid such an
uncertain backdrop, any unexpected asset quality weakening
simultaneously with a reduced capital buffer may exert downward
pressures on Union Bank's ratings. At present, however, it has a
good loss absorption capacity, with a core Tier 1 capital adequacy
ratio of 11.6% at end-June 2010 (end-2009: 12.0%). Moreover, its
asset quality is likely to remain manageable given current
expectations of economic recovery continuing for the rest of 2010
and into 2011. The Rating Outlook has thus been maintained at
Stable.
The ratings may be upgraded if there are balance-sheet
improvements with considerably lower real estate exposure, better
loan diversity and a sustained capital base, although any
noticeable progress is more likely over a longer period in Fitch's
view. It is the eighth largest bank in the Philippines with 4% of
banking system assets. As such, the probability of state support
for Union Bank may be less than the larger banks of greater
systemic importance, as reflected in its Support Rating of '4'.
The agency has also affirmed Union Bank's subordinated notes
rating at 'A(phl)' which, at one notch below the bank's 'A+(phl)'
National Long-term rating, is in accordance with the agency's
criteria of rating subordinated notes of financial institutions.
The full list of rating actions is:
Union Bank:
-- Long-term foreign currency and local currency IDRs affirmed
at 'BB-' with Stable Outlook;
-- National Long-term rating affirmed at 'A+(phl)' with a Stable
Outlook;
-- Individual rating affirmed at 'D';
-- Support rating affirmed at '4';
-- Support Rating Floor affirmed at 'B+'; and
-- Lower Tier 2 Subordinated Callable Notes affirmed at
'A(phl)'.
=================
S I N G A P O R E
=================
BEDEC EUROFORM: Court Enters Wind-Up Order
------------------------------------------
The High Court of Singapore entered an order on October 1, 2010,
to wind up the operations of Bedec Euroform Pte Ltd.
Forspac Steel Works Pte Ltd filed the petition against the
company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
45 Maxwell Road, #06-11
Singapore 069118
CONSULT ASIA: Court Enters Wind-Up Order
----------------------------------------
The High Court of Singapore entered an order on October 11, 2010,
to wind up the operations of Consult Asia Pte Ltd.
DB Trustees (Hong Kong) Limited filed the petition against the
company.
The company's liquidator is:
Mr Yit Chee Wah
Care of FTI Consulting (Singapore) Pte Ltd
Blk 165 Bukit Merah
Central, #04-3665
Singapore 150165
IDEAL FAMILY: Court Enters Wind-Up Order
----------------------------------------
The High Court of Singapore entered an order on October 8, 2010,
to wind up the operations of Ideal Family Hostel Pte Ltd.
Fragrance Realty Pte Ltd filed the petition against the company.
The company's liquidator is:
The Official Receiver
Insolvency & Public Trustee's Office
The URA Centre (East Wing)
45 Maxwell Road, #06-11
Singapore 069118
KWEE JIN: Court Enters Wind-Up Order
------------------------------------
The High Court of Singapore entered an order on October 1, 2010,
to wind up the operations of Kwee Jin Distribution Pte Ltd.
The company's liquidator is:
Mr Don Ho Mun-Tuke
Of M/s Don Ho & Associates
At 20 Cecil Street
#12-02, Equity Plaza
Singapore 049705
REJUVEMED PTE: Creditors' Proofs of Debt Due November 26
--------------------------------------------------------
Creditors of Rejuvemed Pte Ltd, which is in liquidation, are
required to file their proofs of debt by November 26, 2010, to be
included in the company's dividend distribution.
The company's liquidator is:
Heng Lee Seng
15 Hoe Chiang Road
#12-02 Tower Fifteen
Singapore 089316
SEAPOWER REALTY: Creditors' Proofs of Debt Due November 26
----------------------------------------------------------
Creditors of Seapower Realty (Pte) Ltd, which is in liquidation,
are required to file their proofs of debt by November 26, 2010, to
be included in the company's dividend distribution.
The company's liquidator is:
Heng Lee Seng
15 Hoe Chiang Road
#12-02 Tower Fifteen
Singapore 089316
SUBTLE SENSES: In Creditors' Voluntary Wind-Up
----------------------------------------------
Spa operator Subtle Senses has been placed in creditors' voluntary
liquidation, Neo Chai Chin at Today Online reports.
Today Online relates the company's provisional liquidators,
Mr. Abuthahir Abdul Gafoor and Mr. Chee Yoh Chuang of Stone Forest
Corporate Advisory, are now looking into the company's accounts
and dealing with employees' and customers' queries.
According to Today Online, Mr. Abuthahir said Subtle Senses
directors must also prepare a statement of affairs listing the
company's assets and liabilities as of October 19, 2010.
A creditors' meeting is expected to be held in a month's time,
where the directors are expected to brief creditors on the causes
of the winding up, Mr. Abuthahir added, the report relates.
Subtle Senses is a Singapore-based spa operator.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA. Valerie C. Udtuhan, Marites O. Claro,
Rousel Elaine T. Fernandez, Joy A. Agravante, Frauline S. Abangan,
and Peter A. Chapman, Editors.
Copyright 2010. All rights reserved. ISSN: 1520-9482.
This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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*** End of Transmission ***