/raid1/www/Hosts/bankrupt/TCRAP_Public/101102.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
Tuesday, November 2, 2010, Vol. 13, No. 216
Headlines
A U S T R A L I A
CAREY SPORTS: Goes Into Administration With AU$100,00++ Debts
FORTESCUE METALS: Fitch Assigns 'BB+' Rating to Senior Notes
KRISPY KREME: Australian Unit Placed Into Administration
SIGMA PHARMACEUTICALS: Faces Shareholders Class Action Suit
H O N G K O N G
SHAW LAND: Creditors' Proofs of Debt Due November 22
SHELL NANHAI: Members' Final Meeting Set for November 23
TIN SHUI: Members and Creditors' Final Meeting Set for November 23
UNITED CENTRAL: Middleton and Lan Appointed as Liquidators
WIDEFUL INTERNATIONAL: Members' Final Meeting Set for November 23
WELL FORTUNE: Creditors' Meeting Set for October 29
YENDA INTERNATIONAL: Creditors' Proofs of Debt Due November 29
ZIBA LIMITED: Ho and Man Step Down as Liquidators
I N D I A
COMMERCIAL AUTO: CRISIL Reaffirms 'D' Rating on INR74MM Term Loan
DAULAT RAM: CRISIL Places 'BB-' Rating on INR38.8MM Long-Term Loan
DHANERA DIAMONDS: CRISIL Reassigns 'BB' Rating to INR40MM Credit
MYCON CONSTRUCTION: CRISIL Reaffirms 'C' Rating on INR100MM Debt
NEGOLICE INDIA: CRISIL Reaffirms 'B+' Rating on INR314MM Term Loan
OHM KNIT: CRISIL Places 'B-' Rating on INR4.5 Million LT Loan
PRISM INFRA: CRISIL Places 'B+' Rating on INR11.4MM Long-Term Loan
R. B. CREATION: CRISIL Assigns 'B-' Rating to INR1 Mil. LT Loan
S.K. AGARWAL: CRISIL Places 'BB-' Rating on INR36MM Cash Credit
SARTHAK CREATION: CRISIL Assigns 'B+' Rating to INR60M Cash Credit
SRI RAM CABLES: CRISIL Assigns 'BB+' Ratings to Various Bank Debts
SUSEELA EDUCATIONAL: CRISIL Rates INR100 Million LT Loan at 'D'
TANGLING MINI: CRISIL Rates INR194 Million Term Loan at 'D'
VITTRAG MINES: CRISIL Assigns 'B+' Rating to INR50MM Cash Credit
I N D O N E S I A
BALAI PUSTAKA: Faces Liquidation Due to Losses
MNC SKY: Moody's Assigns 'B2' First-Time Corporate Family Rating
MNC SKY: S&P Assigns 'B' Long-Term Corporate Credit Rating
PPFN: Faces Liquidation Due to Losses
J A P A N
CSC SERIES: Moody's Downgrades Ratings on Class G-3 Bonds to 'C'
CSC SERIES: S&P Downgrades Ratings on Various Classes of Notes
DIC CORPORATION: Moody's Gives Stable Outlook on 'Ba2' Rating
GODO KAISHA: S&P Downgrades Ratings on Various Classes of Notes
JLOC XXXI: S&P Downgrades Ratings on Various Certificates
JLOC XXXI: Fitch Downgrades Ratings on Four Classes of Notes
NISHI-NIPPON CITY: Fitch Upgrades Individual Rating to 'D'
TAKEFUJI CORP: Attracts Interest From 20 Local & Overseas Buyers
N E W Z E A L A N D
BLUE CHIP: SFO Won't Press Criminal Charges Against Firm & Founder
SOUTH CANTERBURY: No Estimate of Losses in Receivers' First Report
T H A I L A N D
* Moody's Gives Stable Outlook on Ratings of Eight Thai Banks
X X X X X X X X
* S&P Raises Ratings on Three Asia-Pacific CDO Tranches
* BOND PRICING: For the Week October 25 to October 29, 2010
- - - - -
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A U S T R A L I A
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CAREY SPORTS: Goes Into Administration With AU$100,00++ Debts
-------------------------------------------------------------
Carey Sports Pty Ltd has gone into administration with debts of
more than AU$100,000, Sunday Herald Sun reports. The report
relates company owner Wayne Carey told a liquidators meeting that
he is unable to pay his debts after his media career crumbled in
the wake of a string of high-profile scandals.
A document obtained by the Sunday Herald Sun shows the company was
wound up last week, a year after Mr. Carey changed its name and
placed it under voluntary administration with debts totalling
AU$115,308.39. The report notes that his ex-wife, Sally Carey,
was owed AU$50,000 and is the company's biggest unsecured
creditor.
According to the report, the company's only listed asset was a
AU$22,000 BMW car. The report relates that the company also owed
the Australian Taxation Office AU$46,308.39.
Mr. Carey, the report discloses, said last week the move was
nothing more than a restructuring of his business interests.
The report notes minutes of a meeting held in October 2009 show
Mr. Carey told liquidator Paul Vartelas that the company was
unable to meet its debts. "Carey Sports Pty Ltd was an entity
used as a vehicle for myself to earn media income -- advertising
etc.," the minutes quote Mr. Carey as saying. Due to personal
issues, all job offers dried up or were not offered (and) as from
(sic) 2007, the company was unable to meet its tax debts and other
debts owed," it added, the report relates.
Sunday Herald Sun adds that other creditors left out of pocket
when Carey Sport folded include an Essendon accountant and Macs
Sports Promotions, the company of his former manager Anthony
McConville.
Carey Sports Pty Ltd was set up by controversial AFL Hall of Fame
champion Wayne Carey.
FORTESCUE METALS: Fitch Assigns 'BB+' Rating to Senior Notes
------------------------------------------------------------
Fitch Ratings has assigned Fortescue Metals Group Limited's
US$2.04 billion issuance of senior unsecured notes due November
2015, issued through FMG Resources (August 2006) Pty Ltd, a final
rating of 'BB+'. The final rating has been assigned following
receipt of final documentation conforming to information already
received.
The final rating is the same as Fitch's expected rating, which was
assigned on October 17, 2010.
On October 10, 2010, Fitch assigned Fortescue a Long-term foreign
currency Issuer Default Rating and senior unsecured rating of
'BB+' with Stable Outlook.
KRISPY KREME: Australian Unit Placed Into Administration
--------------------------------------------------------
David Olsen at Dynamic Business reports that Krispy Kreme
Doughnuts Australia has entered voluntary administration, with the
privately owned Australian arm of the American doughnut giant
placed into the hands of Sydney accounting firm Smith Hancock.
According to the report, Krispy Kreme Australia spokesman Matt
Horan told the Herald Sun that the company was placed into the
hands of accountancy firm Smith Hancock after a directors meeting
concluded the company was at risk of defaulting on creditors. The
report relates the Herald Sun said that company directors
attributed the slide in company profits to location, sales
decline, and high rents and distribution costs.
Smith Hancock, the report notes, will undertake a review of the
company and its business in Australia over the next month, with
Krispy Kreme stores to remain open during that time. Once the
administrators have completed their review, unprofitable stores
may be closed or sold off, but company spokesman Matt Horan has
said all employee entitlements will be paid, the report adds.
Krispy Kreme Australia, unlike the United States operation, has no
franchise stores and is a wholly owned private company. Krispy
Kreme Doughnuts first opened in Australia at its Penrith site in
2003, since then expanding to 54 Krispy Kreme outlets employing
660 staff in the seven years since, the highest of any country
outside America.
SIGMA PHARMACEUTICALS: Faces Shareholders Class Action Suit
-----------------------------------------------------------
Sigma Pharmaceuticals Ltd has been served with a statement of
claim for a pending shareholder class action relating to its 2009
capital raising, The Australian reports.
According to The Australian, Sigma Pharmaceuticals said that
applicants said to have bought securities from the company between
September 7, 2009, and February 25, 2010, had made allegations
about Sigma's market disclosure during 2009 and 2010 in the
statement, which was filed in the Federal Court of Australia.
Sigma in 2009 raised AU$297 million through a renounceable
entitlement offer to reduce the company's leverage and to fund the
AU$60 million acquisition of brands and manufacturing facilities
from Bristol-Myers Squibb Co, The Australian relates.
"The applicants are seeking declarations and unquantified damages.
Sigma refutes these allegations and will vigorously defend the
proceedings," the company said, according to The Australian.
Based in Australia, Sigma Pharmaceuticals Limited (ASX:SIP) --
http://www.sigmaco.com.au/-- manufactures, markets and
distributes pharmaceutical products through the pharmacy and
grocery channels and the provision of services to retail
pharmacists. Its Pharmaceuticals segment includes the manufacture
or contract manufacture for Australian and overseas customers.
The Company's Healthcare segment represents its traditional
pharmacy wholesale business. Its subsidiaries include Chemist Club
Pty Limited, Sigma Company Limited, Amcal Pty. Limited,
Commonwealth Drug Company Pty. Ltd., Fawns & McAllan Proprietary
Limited, Guardian Pharmacies Australia Pty. Ltd and Sigma Finance
Pty. Ltd. On October 2, 2009, the Company acquired some parts of
the Australian business operations of Bristol Myers Squibb
Australia (BMSA) and associated assets (BMS Australian Business).
The BMS Australian Business consists of the pharmaceutical and
technical operations division, which operates out of BMS
Australia's Noble Park facility.
* * *
The Troubled Company Reporter-Asia Pacific reported on April 23,
2010, that Sigma Pharmaceuticals Ltd. may face a damages claim of
more than $200 million from shareholders over its annual loss and
alleged breach of continuous disclosure obligations. Tom
Tarasewicz, the vice-president of the US litigation funder
Comprehensive Legal Funding, said his firm had been approached
by Australian institutional shareholders in Sigma, who were
concerned about the company's long trading halt and the end-
of-year adjustments it was about to make to its 2010 accounts.
A damages bill above $200 million would be nearly half of Sigma's
market capitalization of $572 million or almost three times its
2009 full-year profit, The Sydney Morning Herald had noted.
Sigma reported a net loss of AU$389 million for the year ended
Jan. 31, 2010. The Wall Street Journal reported that Sigma said
competition in the generic drug sector was keener than it had
anticipated and slashed the book value of key assets. The Journal
noted Sigma also revealed that the company had breached debt
covenants and that creditors were insisting on assets sales to pay
them AU$90 million by Nov. 30, 2010.
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H O N G K O N G
================
SHAW LAND: Creditors' Proofs of Debt Due November 22
----------------------------------------------------
Creditors of Shaw Land Investment Company Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by November 22, 2010, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on October 13, 2010.
The company's liquidator is:
Yip Ka Kui
6/F., Greenwich Centre
260 King's Road
North Point, Hong Kong
SHELL NANHAI: Members' Final Meeting Set for November 23
--------------------------------------------------------
Members of Shell Nanhai Limited will hold their final general
meeting on November 23, 2010, at 10:00 a.m., at Level 28, Three
Pacific Place, 1 Queen's Road East, in Hong Kong.
At the meeting, Ying Hing Chiu and Chan Mi Har, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
TIN SHUI: Members and Creditors' Final Meeting Set for November 23
------------------------------------------------------------------
Members and creditors of Tin Shui Wai Luen Tak Tong Fa Pau
Association Limited will hold their final meetings on November 23,
2010, at 4:00 p.m., at Room 1304, C C Wu Building, 302-8 Hennessy
Road, Wanchai, in Hong Kong.
At the meeting, Kwan Pak Kong, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
UNITED CENTRAL: Middleton and Lan Appointed as Liquidators
----------------------------------------------------------
Edward Simon Middleton and Galaxy Chan Mei Lan on October 8, 2010,
were appointed as liquidators of United Central Limited.
The liquidator may be reached at:
Edward Simon Middleton
Galaxy Chan Mei Lan
8th Floor, Prince's Building
10 Chater Road
Central, Hong Kong
WIDEFUL INTERNATIONAL: Members' Final Meeting Set for November 23
-----------------------------------------------------------------
Members of Wideful International Limited will hold their final
meeting on November 23, 2010, at 17/F., Hing Yip Commercial
Centre, 272-284 Des Voeux Road Central, in Hong Kong.
At the meeting, Choi Siu Ling, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
WELL FORTUNE: Creditors' Meeting Set for October 29
---------------------------------------------------
Creditors of Well Fortune Limited will hold their meeting on
October 29, 2010, at 3:00 p.m., for the purposes provided for in
Sections 241, 242, 243, 244, 255A and 283 of the Companies
Ordinance.
The meeting will be held at the 15/F., Empire Land Commercial
Centre, 81-85 Lockhart Road, Wanchai, in Hong Kong.
YENDA INTERNATIONAL: Creditors' Proofs of Debt Due November 29
--------------------------------------------------------------
Creditors of Yenda International Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by November 29, 2010, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on October 18, 2010.
The company's liquidator is:
Ip Kwun Ting
Room 1315, 13/F., Asian House
1 Hennessy Road
Wanchai, Hong Kong
ZIBA LIMITED: Ho and Man Step Down as Liquidators
-------------------------------------------------
Ho Hoi Lam and Man Fung Ying stepped down as liquidators of Ziba
Limited on September 30, 2010.
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I N D I A
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COMMERCIAL AUTO: CRISIL Reaffirms 'D' Rating on INR74MM Term Loan
-----------------------------------------------------------------
CRISIL's rating on Commercial Auto Products Pvt Ltd's bank
facilities continues to reflect delays by Commercial Auto in
servicing its term loan. The delay has been caused by Commercial
Auto's weak liquidity.
Facilities Ratings
---------- -------
INR40.00 Million Cash Credit D (Reaffirmed)
INR74.00 Million Term Loan D (Reaffirmed)
Commercial Auto has weak financial risk profile marked by small
net worth, high gearing, and weak debt protection metrics, small
scale of operations in the radiator and car business divisions,
large working capital requirements, and weak operating efficiency.
The company, however, continues to benefit from its promoters'
experience in the automobile industry and its recent
diversification in high margin aluminium radiator business.
Update
In 2009-10 (refers to financial year, April 1 to March 31),
Commercial Auto generated an operating income of INR326.2 million
(which was higher than CRISIL's expectations), mainly driven by
increase in revenues in its radiator division to about
INR190.0 million in 2009-10 from INR140.0 million in 2008-09. The
operating margin of 10.9 per cent in 2009-10 was also better than
CRISIL's expectation due to improvement in margin in the radiator
division. Cash accruals of INR11.0 million were sufficient to
service its long-term debt obligations of INR9.6 million in 2009-
10. However, strong operating income growth led to sharp increase
in working capital requirements, resulting in weak liquidity - the
company continued to overdraw its working capital limits and delay
re-paying its term loan.
Commercial Auto reported profit after tax (PAT) of INR3.0 million
on net sales of INR316.5 million for 2009-10, against a net loss
of INR3.4 million on net sales of INR228.5 million for 2008-09.
About Commercial Auto
Commercial Auto was established in 1985 by Mr. Ajay Gupta and Mr.
Rahul Gupta. The company has two business divisons: automobile
radiator manufacturing and automobile dealership. Its
manufacturing unit is in Tiwariganj (Uttar Pradesh) and automobile
showroom (for vehicles of Skoda Auto India Private Limited) in
Lucknow, also in Uttar Pradesh.
DAULAT RAM: CRISIL Places 'BB-' Rating on INR38.8MM Long-Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Daulat Ram Ramesh Kumar & Company.
Facilities Ratings
---------- -------
INR38.80 Million Long-Term Loan BB-/Stable (Assigned)
INR15.00 Million Cash Credit Limit BB-/Stable (Assigned)
INR6.30 Million Buyer's Credit BB-/Stable (Assigned)
INR385.00 Million Packing Credit P4+ (Assigned)
INR200.00 Million Foreign Bill P4+ (Assigned)
Discounting
The ratings reflect DRRK's working-capital-intensive operations,
resulting in a weak financial risk profile, marked by high
gearing, small net worth, and moderate debt protection metrics;
and susceptibility of its operating margin to volatility in raw
material prices and to vagaries of the monsoon. The ratings also
reflect the firm's modest scale of operations, exposure to risks
related to customer concentration, and susceptibility to adverse
regulatory changes. These weaknesses are partially offset by the
significant experience of DRRK's promoters in the basmati rice
export business, and the firm's strong growth in operating income.
Outlook: Stable
CRISIL expects DRRK's financial risk profile to remain weak over
the medium term because of the high working-capital-intensity of
its operations and its small net worth. The outlook may be
revised to 'Positive' if there is higher-than-expected increase in
the firm's cash accruals with significant increase in its scale of
operations. Conversely, the outlook may be revised to 'Negative'
if the firm's capital structure deteriorates, profitability comes
under pressure, or the firm undertakes a large, debt-funded
capital expenditure programme.
About Daulat Ram
DRRK, established in 1965 by Mr. Mahinder Pal, was initially into
the oil crushing and mustard oil preparation business. In 1968,
the partners, led by Mr. Ramesh Marwah (son of Mr. Pal), ventured
into the rice milling business. The firm processes and exports
basmati rice to the Middle East and Southeast Asia. Its facility
in Tarn Taran (Punjab) has a capacity of 20 tonnes per hour.
DRRK reported a profit after tax (PAT) of INR32.5 million on net
sales of INR1602.8 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR32.7 million on net
sales of INR1331.0 million for 2008-09.
DHANERA DIAMONDS: CRISIL Reassigns 'BB' Rating to INR40MM Credit
----------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to the bank facilities
of Dhanera Diamonds; the facilities were earlier short-term
facilities and were rated 'P4' by CRISIL.
Facilities Ratings
---------- -------
INR140 Million Export Packing Credit BB/Stable (Reassigned)
INR610 Million Post-Shipment/Bill BB/Stable (Reassigned)
Discounting Facilities
The rating reflects the risks Dhanera Diamonds faces because of
its partnership structure, and the firm's long working capital
cycle. These rating weaknesses are partially offset by Dhanera
Diamonds' established market position, sound operating
efficiencies, and promoters' experience of more than two decades
in the diamond industry.
Outlook: Stable
CRISIL believes that Dhanera Diamonds will continue to benefit
from its established customer relationships over the medium term.
The outlook may be revised to 'Positive' if Dhanera Diamonds
maintains its scale of operations and profitability at current
levels, and the partners do not withdraw capital from the firm.
Conversely, the outlook may be revised to 'Negative' if the
partners withdraw capital from the firm or if the firm undertakes
large, debt-funded capital expenditure programme, which could
weaken its financial risk profile.
About Dhanera Diamonds
Dhanera Diamonds is a partnership firm, promoted by Mr. Arvind
Shah, Mr. Vinod Shah, and Mr. Shailesh Shah in 1991. The firm
cuts, polishes, and trades in diamonds. The partners have been in
the diamond business for more than two decades. The firm procures
rough diamonds from sightholders in Belgium; the rough diamonds
are polished at its unit in Surat. Dhanera Diamonds' products are
in the range of 0.3 to 30.0 cents; the majority of the products
sold are, however, less than 2 cents.
For 2009-10 (refers to financial year, April 1 to March 31),
Dhanera Diamonds reported a net profit of INR102.70 million on net
sales of INR4.63 billion, against a net profit of INR14.70 million
on net sales of INR3.12 billion for the previous year.
MYCON CONSTRUCTION: CRISIL Reaffirms 'C' Rating on INR100MM Debt
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Mycon Construction Ltd
continue to reflect MCL's weak liquidity, working-capital-
intensive operations, and geographical and customer concentration
in its revenue profile. These weaknesses are partially offset by
the company's revenue visibility, supported by its moderately
sizeable order book.
Facilities Ratings
---------- -------
INR100.00 Million Overdraft Facility C (Reaffirmed)
INR600.00 Million Bank Guarantee P4 (Reaffirmed)
Update
MCL's revenues in 2009-10 (refers to financial year, April1 to
March 31) have been less than expected because of heavy rains in
northern Karnataka during October and November 2010. The company
is now focused on projects outside Karnataka to mitigate the
impact of geographical concentration. 55 per cent of total
revenues came from projects in Karnataka in 2009-10, compared to
70 per cent in 2008-09. MCL has orders of INR1.55 billion to be
delivered in the next eighteen months. The company generated
revenues of about INR400 million for the five months ended
August 31, 2010.
MCL reported, on provisional basis, a profit after tax (PAT) of
INR14 million on net sales of INR966 million for 2009-10; it
reported a PAT of INR11 million on net sales of INR981 million for
2008-09.
About Mycon Construction
MCL was set up in 1946 as a partnership firm by Mr. P C Malpani,
and was reconstituted as a closely held public limited company in
1989. The company undertakes civil and structural construction
projects for public and private sector entities in Karnataka,
Tamil Nadu, and Orissa. Its projects mainly involve construction
of dams, bridges, power plants, and buildings.
NEGOLICE INDIA: CRISIL Reaffirms 'B+' Rating on INR314MM Term Loan
------------------------------------------------------------------
CRISIL's rating on the bank facilities of Negolice India Ltd
continues to reflect NGIL's significant dependence on customer
advances for completion of its ongoing project on time; the
project involves constructing a group housing society (Victoria
Gardens). The company is also exposed to demand- and revenue-
related risks because of slow recovery in the realty market.
These weaknesses are mitigated by the established track record of
NGIL's promoters in the construction industry.
Facilities Ratings
---------- -------
INR314.0 Million Term Loan B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that the progress of NGIL's ongoing project will
continue to depend on timeliness in inflow of customer advances;
NGIL's cash accruals will also remain exposed to risks related to
sale of property. The outlook may be revised to 'Positive' if
NGIL generates more-than-expected sales from the project,
improving its cash accruals. Conversely, the outlook may be
revised to 'Negative' if NGIL's cash accruals are adversely
affected because of delays in advances from customers leading to
time overrun in the project.
Update
In 2009-10 (refers to financial year, April 1 to March 31), NGIL
got approval for increasing its project's floor area ratio (FAR)
to 3.45 from 2.50. This led the company into constructing
additional 100 dwelling units. Because of the increase in scale of
the project, its completion is expected by the first quarter of
2011-12, against October 2010 estimated earlier. In 2009-10,
construction moved in tandem with the pace of customer advances.
Till March 2010 NGIL had spent around INR1.4 billion on
construction and land development. Out of the 400 dwelling units
planned, around 250 have been booked so far. The company had
received customer advances of around INR1.4 billion till March
2010.
About Negolice India
NGIL is the flagship company of the M2K group. The company,
formerly known as Prasidh Leasing Ltd, was incorporated in
September 1983; its name was changed to the current one in June
1999. NGIL is constructing a group housing society, Victoria
Gardens, on a 4.54-acre land plot. The project was launched in
2005. Victoria Gardens, having around 400 dwelling units, is
strategically located in North Delhi, opposite the Azadpur metro
station, on the ring road adjoining Model Town, Delhi.
OHM KNIT: CRISIL Places 'B-' Rating on INR4.5 Million LT Loan
-------------------------------------------------------------
CRISIL has assigned its 'B-/Stable/P4' ratings to the bank
facilities of OHM Knit Faashion, which is part of the OHM group.
Facilities Ratings
---------- -------
INR4.50 Million Long-Term Loan B-/Stable (Assigned)
INR7.00 Million Proposed LT Bank B-/Stable (Assigned)
Loan Facility
INR15.00 Million Export Packing P4 (Assigned)
Credit
INR12.50 Million FDBN P4 (Assigned)
INR4.00 Million Standby Line of P4 (Assigned)
Credit
INR0.50 Million Bank Guarantee P4 (Assigned)
The rating reflects the OHM group's small scale of operations, and
weak financial risk profile, marked by an aggressive capital
structure and average debt protection measures. The rating also
factors in the group's exposure to risks related to customer
concentration in revenue profile, volatility in the value of the
Indian rupee, and intense competition in the readymade garments
industry. These rating weaknesses are partially offset by the
benefits that the OHM group derives from its longstanding
relationships with customers and extensive experience of its
promoters.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of OHM and RB Creation. This is because
both the companies, together referred to as the OHM group, are in
same line of business, share a common management, and have
financial and operational linkages.
Outlook: Stable
CRISIL believes that the OHM group will maintain a stable credit
risk profile, aided by its diversified product mix, and the
extensive experience of its promoters. A substantial improvement
in the group's gearing (as a result of equity infusion), or
increase in operating margins and realisations, leading to
improvement in financial risk profile, may drive a revision in the
group's outlook to 'Positive'. Conversely, a sustained downturn in
product prices, delays in realisation of receivables, or
substantial intake of debt may result in a revision in outlook to
'Negative'.
About the Group
The OHM group, based at Tirupur (Tamil Nadu), manufactures
readymade garments. The group's promoters, Mr. K Ramalingam and
Mr. M Krishnasamy, have more than 35 years of experience in
similar lines of business. The OHM group has a manufacturing
capacity of 4.8 million pieces per annum. The group derives its
revenues from exports to Europe.
The OHM group reported a provisional profit after tax (PAT) of
INR7 million on net sales of INR144 million for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of INR8
million on net sales of INR132 million for 2008-09.
PRISM INFRA: CRISIL Places 'B+' Rating on INR11.4MM Long-Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to the bank
facilities of Prism Infra and Investment Pvt Ltd (PIIL, part of
the Prism group).
Facilities Ratings
---------- -------
INR95.0 Million Cash Credit B+/Stable (Assigned)
INR11.4 Million Long-Term Loan B+/Stable (Assigned)
INR143.6 Million Proposed LT Bank B+/Stable (Assigned)
Loan Facility
INR60.0 Million Bank Guarantee P4 (Assigned)
The ratings reflect the Prism group's limited track record, small
scale of operations, customer concentration in revenues and weak
consolidated financial risk profile, marked by high consolidated
gearing and moderate consolidated debt protection measures. These
rating weaknesses are partially offset by the group's revenue
visibility, on account of orders secured from Chhattisgarh Housing
Board (CGHB).
Analytical Approach
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Prism Infra and Investment Pvt Ltd and
Essal Infrastructure Pvt Ltd. This is because PIIL generates all
its revenues through subcontracts received from EIL; besides, the
two entities, together referred to as the Prism group, have
fungible funds on account of common promoters.
Outlook: Stable
CRISIL believes that the Prism group will register robust
consolidated growth over the medium term supported by timely
execution of order it received from CGHB. The outlook may be
revised to 'Positive' upon better client diversity or reduction in
gearing, leading to improvement in the group's consolidated
financial risk profile. Conversely, the outlook may be revised to
'Negative' upon delays in completion of the ongoing projects or
delays in payments from CGHB or larger-than-expected consolidated
working capital requirement, resulting in deterioration of the
capital structure.
About the Group
The Prism group undertakes construction of residential projects on
contract basis for CGHB in and around the new capital region of
Naya Raipur in Chhattisgarh. It executes projects based on the
tenders awarded by CGHB. EIL is the bidding arm of the group for
CGHB's contracts, and PIIL was incorporated in August 2008 to
execute these contracts for EIL.
PIIL on a standalone basis reported a profit after tax (PAT) of
INR5 million on net sales of INR288 million for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of INR0.3
million on net sales of INR13 million for 2008-09 (refers to
period from August 1, 2008 to March 31, 2009).
R. B. CREATION: CRISIL Assigns 'B-' Rating to INR1 Mil. LT Loan
---------------------------------------------------------------
CRISIL has assigned its 'B-/Stable/P4' ratings to the bank
facilities of R. B. Creation, which is part of the OHM group.
Facilities Ratings
---------- -------
INR1.00 Million Proposed LT Bank B-/Stable (Assigned)
Loan Facility
INR17.50 Million Export Packing Credit P4 (Assigned)
INR17.50 Million FDBN P4 (Assigned)
INR7.10 Million Standby Line of Credit P4 (Assigned)
INR0.50 Million Bank Guarantee P4 (Assigned)
The rating reflects the OHM group's small scale of operations, and
weak financial risk profile, marked by an aggressive capital
structure and average debt protection measures. The rating also
factors in the group's exposure to risks related to customer
concentration in revenue profile, volatility in the value of the
Indian rupee, and intense competition in the readymade garments
industry. These rating weaknesses are partially offset by the
benefits that the OHM group derives from its longstanding
relationships with customers and extensive experience of its
promoters.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of OHM Knit Faashion (OHM) and RB
Creation. This is because both the companies, together referred to
as the OHM group, are in same line of business, share a common
management, and have financial and operational linkages.
Outlook: Stable
CRISIL believes that the OHM group will maintain a stable credit
risk profile, aided by its diversified product mix, and the
extensive experience of its promoters. A substantial improvement
in the group's gearing (as a result of equity infusion), or
increase in operating margins and realizations, leading to
improvement in financial risk profile, may drive a revision in the
group's outlook to 'Positive'. Conversely, a sustained downturn
in product prices, delays in realization of receivables, or
substantial intake of debt may result in a revision in outlook to
'Negative'.
About the Group
The OHM group, based in Tirupur (Tamil Nadu), manufactures
readymade garments. The promoters of the OHM group, Mr. K
Ramalingam and Mr. M Krishnasamy, have more than 35 years of
experience in similar lines of business. The OHM group has
capacity to manufacture 4.8 million pieces per annum. The group
derives its revenues from exports to Europe.
The OHM group reported a provisional profit after tax (PAT) of
INR7 million on net sales of INR144 million for 2009-10 (refers to
financial year, April 1 to March 31), against a PAT of INR8
million on net sales of INR132 million for 2008-09.
S.K. AGARWAL: CRISIL Places 'BB-' Rating on INR36MM Cash Credit
---------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable' rating to the bank facilities
of S.K. Agarwal & Co.
Facilities Ratings
---------- -------
INR36.0 Million Cash Credit Facility BB-/Stable (Assigned)
INR6.0 Million Overdraft Facility BB-/Stable (Assigned)
INR108.0 Million Proposed LT Bank BB-/Stable (Assigned)
Loan Facility
The rating reflects SKAC's weak financial risk profile, marked by
a high total outside liabilities to tangible net worth ratio, low
operating margin, and intense competition and high fragmentation
in the iron and steel trading business. These weaknesses are
partially offset by SKAC's established presence in the iron and
steel trading business, its strong supplier and customer
relationships, and moderate risk management policies.
Outlook: Stable
CRISIL expects SKAC to benefit over the medium term from its
established relationships with its suppliers, Jindal Steel Works
Ltd and Jindal Steel and Power Ltd, and its promoters' extensive
experience in the iron and steel trading business. The outlook
may be revised to 'Positive' in case of substantial improvement in
the firm's operating margin or any fresh equity infusion by
partners, leading to significant improvement in its financial risk
profile. Conversely, the outlook may be revised to 'Negative' in
case the firm's financial risk profile deteriorates further, or in
case of larger-than-expected working capital requirements.
About S.K. Agarwal
Set up in 1983 as a proprietorship firm by Mr. S K Agarwal in
Delhi, SKAC was converted into a partnership firm in 2001, after
Mr. Agarwal's sons, Mr. Nitin and Mr. Praveen, joined as partners.
The firm is an authorised distributor of hot-rolled flat products
of JSW and JSPL in Delhi and Haryana. The firm has two warehouses,
in Delhi (1350 square feet [sq ft]) and in Faridabad (Uttar
Pradesh; 52,000 sq ft).
SKAC is expected to report a book profit of INR17.1 million on net
sales of INR2031.4 million for 2009-10 (refers to financial year,
April 1 to March 31), against a book profit of INR3.1 million on
net sales of INR1512.5 million for 2008-09.
SARTHAK CREATION: CRISIL Assigns 'B+' Rating to INR60M Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to Sarthak Creation
Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR60.0 Million Cash Credit B+/Stable (Assigned)
INR76.8 Million Rupee Term Loan B+/Stable (Assigned)
INR15.0 Million Foreign Bill P4 (Assigned)
Purchase
INR20.0 Million Bank Guarantee P4 (Assigned)
The ratings reflect Sarthak's limited track record of operations
and average financial risk profile, marked by high gearing, small
net worth, and average debt protection metrics. These rating
weaknesses are partially offset by Sarthak's sound customer
profile.
Outlook: Stable
CRISIL believes that Sarthak will continue to benefit from its
promoters' experience in the textile industry. The outlook may be
revised to 'Positive' if the company's financial risk profile
improves most likely through fresh equity infusion or because of
sustained and significant increase in its scale of operations and
profitability. Conversely, the outlook may be revised to
'Negative' if any significant decline in Sarthak's profitability
margins, significant stretching of receivables, or larger-than-
expected debt-funded capital expenditure (capex) result in
material deterioration of its financial risk profile.
About Sarthak Creation
Sarthak was promoted by Mr. Subhash Tibrewal. The company,
incorporated in 2005, commenced commercial operations in August
2009. It manufactures and exports ready-made garments such as
shirts and tops, and is currently undertaking capex for setting up
a facility for manufacturing trousers. Through Sarthak, the
promoters have ventured into textile manufacturing, while they
have experience in manufacturing dyes and chemicals (including for
textile industry). Currently, the company has a manufacturing
capacity of 1.33 million pieces of shirts and tops per annum, and
is setting up a facility for manufacturing trousers, with capacity
of 8.64 pieces per annum.
Sarthak reported a profit after tax (PAT) of INR3.7 million on net
sales of INR120.9 million for 2009-10 (refers to financial year,
April 1 to March 31) in its first year of commercial operations.
SRI RAM CABLES: CRISIL Assigns 'BB+' Ratings to Various Bank Debts
------------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to Sri Ram Cables
Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR190.00 Million Cash Credit BB+/Stable (Assigned)
INR30.00 Million Bill Discounting BB+/Stable (Assigned)
INR14.30 Million Term Loan BB+/Stable (Assigned)
INR50.00 Million Letter of Credit P4+ (Assigned)
INR150.00 Million Bank Guarantee P4+ (Assigned)
The ratings reflect SCPL's small scale of operations in the
competitive and fragmented cable industry, the moderate working
capital intensity of the business, and average financial risk
profile, marked by small net worth, comfortable gearing, and
moderate debt protection metrics. These rating weaknesses are
partially offset by the benefits that SCPL derives from the
industry experience of its promoters, and its established customer
relations.
Outlook: Stable
CRISIL expects SCPL's scale of operations to remain small in the
medium term, and its financial risk profile to remain constrained
by moderate working capital requirements. The outlook may be
revised to 'Positive' if the company scales up its operations and
improves its profitability, resulting in increase in its cash
accruals. Conversely, the outlook may be revised to 'Negative' if
SCPL's scale of operations or profitability declines, or if the
company's liquidity declines due to large working capital
requirements or debt-funded capital expenditure.
About Sri Ram Cables
SCPL began operations as a partnership firm in 1978, and was
reconstituted as a private limited company in 1998. The company
is promoted by the Garg family, with operations being managed by
brothers, Mr. Anil Garg, Mr. Sunil Garg, and Mr. Satish Garg. The
company manufactures a variety of cables, including high-tension
cross-linked polyethylene and low-tension power cables, and
control, railway signaling, telecommunication, and aerial-bunched
cables. The company's manufacturing facility at Rico Industrial
Area, Bhiwadi (Rajasthan), has an area of 40,000 square metres.
Around 40 per cent of SCPL's sales are to Indian Railways, and the
remainder to private sector players and the state electricity
boards.
SCPL's group firm, S Pal Enterprises (S Pal), is also in the same
line of business, but supplies only to the government sector.
Although there are no related-party transactions between SCPL and
S Pal, each has extended cross guarantees to the bank facilities
of the other. SCPL has extended a corporate guarantee of INR90
million to S Pal.
SCPL reported a profit after tax (PAT) of INR18.6 million on net
sales of INR1190.0 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR5.7 million on net sales
of INR1203.3 million for 2008-09.
SUSEELA EDUCATIONAL: CRISIL Rates INR100 Million LT Loan at 'D'
---------------------------------------------------------------
CRISIL has assigned its 'D' rating to Suseela Educational
Society's long term loan facility. The rating reflects delay by
SES in servicing its term loan; the delay has been caused by SES's
weak liquidity.
Facilities Ratings
---------- -------
INR100 Million Long-Term Loan D (Assigned)
The rating also reflects SES's lack of track record in the
educational sector. However, the society benefits from promoters'
experience in the educational sector.
SES was set up in September 2007 by Mr. G Brahmaiah. The society
runs a college, Brahmaiah College of Engineering. The first
academic session of the college commenced in 2008-09 (refers to
financial year, April 1 to March 31). The college offers bachelor
of technology degree in four specialisations, electronics and
communication, electrical and electronics, computer science and
engineering, and information technology. From 2009-10 (refers to
financial year, April 1 to March 31) onwards SES has started
offering post-graduate degree in business administration.
SES reported an estimated profit after tax (PAT) of INR7.07
million on net sales of INR32.76million for 2009-10 against a PAT
of INR0.07 million on net sales of INR11.77 million for 2008-09.
TANGLING MINI: CRISIL Rates INR194 Million Term Loan at 'D'
-----------------------------------------------------------
CRISIL has assigned its 'D' rating to Tangling Mini Hydel Power
Project's term loan facility. The rating reflects delay by TMHPP
in servicing its term loan; the delay has been caused by TMHPP's
stretched liquidity.
Facilities Ratings
---------- -------
INR194.0 Million Term Loan D (Assigned)
TMHPP has a weak financial risk profile, marked by a small net
worth, high gearing, and below-average debt protection metrics.
Moreover, the firm's revenues are concentrated, as its entire
revenues are expected to accrue from a single project and from
sales to Himachal Pradesh State Electricity Board (HPSEB). TMHPP
is also exposed to hydrology and seismic risks. TMHPP, however,
has low project execution risk, and its cash accruals are expected
to be stable because of its power purchase agreement (PPA) with
HPSEB.
About Tangling Mini
TMHPP is a partnership firm, which is currently executing a
hydroelectric power project at Kinnaur (Himachal Pradesh). The
plant's proposed capacity is 5 megawatts (MW) comprising of two
units of 2.5 MW each; it is currently under a trial run, and is
expected to have a load factor of 60 to 65 per cent. The project
is a run-of-the-river scheme for hydro-power generation on
Tangling nallah, a tributary of River Sutlej.
TMHPP is being implemented jointly by Sai Engineering Foundation
(SEF) and M/s KK Kashyap (KKK), which have stakes of 51 per cent
and 49 per cent, respectively, in the project. The total cost of
the project is INR280 million, which is being funded by a term
loan of INR194 million from State Bank of India, and promoter's
equity of INR86 million. TMHPP has entered into a PPA with HPSEB
for sale of power generated from the project.
VITTRAG MINES: CRISIL Assigns 'B+' Rating to INR50MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'B+/Negative/P4' ratings to the bank
facilities of Vittrag Mines & Minerals Pvt Ltd.
Facilities Ratings
---------- -------
INR50.0 Million Cash Credit B+/Negative (Assigned)
INR65.0 Million Proposed LT Bank B+/Negative (Assigned)
Loan Facility
INR35.0 Million Packing Credit P4 (Assigned)
The ratings reflect VMMPL's susceptibility to adverse regulatory
changes with respect to trading in, and mining of, bauxite, the
company's large working capital requirements, and its small scale
of operations and limited track record in bauxite trading
business. These rating weaknesses are partially offset by the
benefits that VMMPL derives from assured supply of bauxite from
its leased mines.
Outlook: Negative
CRISIL believes that VMMPL's revenues will remain vulnerable to
adverse to regulatory changes. The ratings may be downgraded if
VMMPL generates lesser-than-expected sales and cash accruals,
leading to deterioration in its debt protection measures.
Conversely, the outlook may be revised to 'Stable' if VMMPL
stabilises its operations, generates more-than-expected sales, and
benefits from favourable regulatory changes with respect to
trading in, and mining of, bauxite.
About Vittrag Mines
VMMPL was incorporated in 2007 by Mr. Jayesh Doshi. The company
primarily trades in bauxite. It also exports bauxite to Dubai,
China, and Singapore. The company has taken mines on lease in
multiple locations in Maharashtra and in Ahmedabad (Gujarat); it
outsources mining activities on a contract basis.
VMMPL reported a profit after tax (PAT) of INR23.8 million on net
sales of INR502.4 million for 2009-10 (refers to financial year,
April 1 to March 31) Against PAT of INR3.0 million on net sales of
INR64.1 million in 2008-09.
=================
I N D O N E S I A
=================
BALAI PUSTAKA: Faces Liquidation Due to Losses
----------------------------------------------
The Jakarta Post reports that state-owned publishing company Balai
Pustaka is facing bankruptcy and liquidation.
According to the Post, state-owned Enterprises Minister Mustafa
Abubakar said the firm would be terminated if it is still
suffering losses by end of 2011.
"It is better to shut down non-performing state firms rather than
maintain their deficits," the Post quotes Mr. Mustafa as saying.
The Post relates Mr. Mustafa said Balai Pustaka would be handed
over to the National Education Ministry.
MNC SKY: Moody's Assigns 'B2' First-Time Corporate Family Rating
----------------------------------------------------------------
Moody's Investors Service has assigned a first-time B2 corporate
family rating to PT MNC Sky Vision and a provisional (P)B2 rating
to the company's proposed US$notes offering. The ratings outlook
is stable.
The proceeds from this issuance will contribute to the acquisition
of S-Band satellite transponders from SES S.A. for $95 million and
the refinancing of existing indebtedness.
Moody's expects to affirm the senior unsecured rating and remove
it from provisional status following the closing of the issuance
and a review of the final terms and conditions.
Ratings Rationale
"Sky Vision's B2 rating is supported by its dominant share in the
Indonesian pay-TV market, premised upon its premium product
offering, and its command of Indonesia's largest domestic in-house
distribution network. This situation favorably positions the
company for robust organic growth over the medium to long term",
says Renee Lam, a Moody's Vice President and Senior Analyst.
"In addition, the rating is supported by the company's moderate
level of leverage and solid interest coverage metrics, which are
well positioned relative to the B2 rating," adds Lam, also Moody's
lead analyst for Sky Vision.
"At the same time, Sky Vision's relatively small size on a global
basis, potential competitive headwinds, and satellite operation
risks constrain the rating at the single-B level," says Lam,
adding, "Sky Vision leads the Indonesian pay-TV at this point in
time, but Moody's believe the potential exists for an escalation
in competition over the medium-to-long term."
"Furthermore the rating reflects a lack of clarity in regard to
its vital operational assets, which reside at a non-owned entity,
and the use of mandatory exchangeable bonds to maintain control,
but avoid consolidation of this entity," says Lam.
Integral licenses for Sky Vision reside at Media Citra Indostar, a
company Sky Vision controls through investments in mandatory
exchangeable bonds which are yet to be exercised for 90% of this
entity's capital stock.
MCI is owned by PT Datakom Asia, a company which has been
undergoing debt workouts since 2001, and which were resolved in
June 2010.
Management has articulated that MCI's assets remain unencumbered
to any indebtedness and insolvency proceedings at Datakom.
Somewhat alleviating Moody's concerns is the fact that MCI will
act as a guarantor on the proposed notes, giving creditors the
benefit of its crucial operating assets and licenses.
The stable outlook reflects Moody's expectation that Sky Vision's
leading market share and product offering will allow it to benefit
from significant organic growth over the rating horizon.
Upward pressure on Sky Vision's ratings could occur if the company
maintains or grows its strong market share as the industry
undergoes organic expansion. The ability to further diversify its
revenue stream from subscribers outside Java and the main
metropolitan areas of Jakarta and Surabaya -- geographies most
prone to competitive pressures -- would also be credit positive.
Enhanced transparency with regard to ownership of its key assets
would also be positive for the rating.
Downward pressure on Sky Vision's ratings could emerge if there is
any material deterioration in operating performance, such that
debt / EBITDA rises above 3.5x. This could be the result of the
company 1) suffering from significant setbacks to its organic
growth plans; or 2) engaging in aggressively financed acquisitions
or shareholder-return initiatives.
Sky Vision's ratings were assigned by evaluating factors Moody's
believe are relevant to the credit profile of the issuer, such as
i) the business risk and competitive position of the company
versus others within its industry, ii) the capital structure and
financial risk of the company, iii) the projected performance of
the company over the near to intermediate term, and iv)
management's track record and tolerance for risk. These
attributes were compared against other issuers both within and
outside of Sky Vision's core industry and Sky Vision's ratings are
believed to be comparable to those of other issuers of similar
credit risk.
Headquartered in Jakarta Indonesia, PT MNC Sky Vision ("Sky
Vision") is a provider of direct to home pay-TV services. It is
75% owned by PT Global Mediacom Tbk, a diversified media company,
which is in turn 51% owned by PT Bhakti Investama Tbk. PT Bhakti
Investama Tbk holds an additional 20% direct stake in Sky Vision.
MNC SKY: S&P Assigns 'B' Long-Term Corporate Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to Indonesia pay-TV leader PT MNC Sky
Vision. The outlook is positive. At the same time, Standard &
Poor's assigned its 'B' issue rating on the proposed senior
secured guaranteed notes due 2015, to be issued by Aerospace
Satellite Corp. Holding BV, a special-purpose finance vehicle
fully owned by MSV.
The notes are unconditionally and irrevocably guaranteed by MSV,
PT Mediacitra Indostar, and Aerospace Satellite Corp. BV. The
issue rating is subject to a review of the final documentation.
"The rating on MSV reflects significant investments required to
fund the expected accelerated growth in subscribers, including
important investments in set-top boxes; the company's single-
satellite risk; foreign exchange exposure from its international
content provisioning; and declining potential average revenues per
user as penetration increases and lower-priced offerings gain
importance," said Standard & Poor's credit analyst Manuel Guerena.
The weaknesses are partially offset by MSV's position (78% market
share as at June 2010); considerable growth potential, given the
very low pay-TV penetration in Indonesia (3.6% of TV households,
1.5% of total households) combined with the ongoing economic
growth cycle; and access to its associated company PT Media
Nusantara Citra Tbk.'s (MNC; B+/Stable/--) extensive library of
proven local content.
MSV plans to use US$95 million of the bond proceeds to finance the
acquisition of the 10 S-band transponders on the SES-7 satellite,
while an additional US$71 million will be used to upstream cash to
its main shareholder PT Global Mediacom Tbk. The balance will be
used to fund issue-related expenses.
MSV's projected cash flows for the next two years are materially
higher than historical, and the company may well depend on further
external sources to fund its set-top boxes and the system's
upgrade. After the bond issuance, MSV's debt to EBITDA will get
close to 3x. S&P expects MSV's growth will help lower this ratio
below 2x toward the end of 2011.
The positive rating outlook reflects Standard & Poor's expectation
that MSV's funds from operations will be much higher for 2010 and
its cash flow will grow steadily in the medium to long term. If
the bond issuance is successful and the company generates
sustainable positive free cash flow within a year, S&P could raise
the corporate credit rating.
PPFN: Faces Liquidation Due to Losses
-------------------------------------
The Jakarta Post reports that state film production company (PPFN)
is facing bankruptcy and liquidation.
According to the Post, state-owned Enterprises Minister Mustafa
Abubakar said the firm would be terminated should it still suffer
losses by end of 2011.
"It is better to shut down non-performing state firms rather than
maintain their deficits," the Post quotes Mr. Mustafa as saying.
The Post relates Mr. Mustafa said PPFN would be handed over to the
Communication and Information Ministry.
=========
J A P A N
=========
CSC SERIES: Moody's Downgrades Ratings on Class G-3 Bonds to 'C'
----------------------------------------------------------------
Moody's Japan K.K has downgraded to C (sf) from Caa3 (sf) its
rating on the Class G-3 bond issued by CSC Series 1 GK and has
placed the C-2 through F-3 bonds under review for possible
downgrade.
The complete rating actions are:
-- Class C-2, Baa3 (sf) placed under review for possible
downgrade; previously, confirmed at Baa3 (sf) on December 8,
2009
-- Class D-2, Ba3 (sf) placed under review for possible
downgrade; previously, confirmed at Ba3 (sf) on December 8,
2009
-- Class E-2/ E-3, B1 (sf) placed under review for possible
downgrade; previously, confirmed at B1 (sf) on December 8,
2009
-- Class F-3, B3 (sf) placed under review for possible
downgrade; previously, confirmed at B3 (sf) on December 8,
2009
-- Class G-3, downgraded to C (sf) from Caa3 (sf); previously,
confirmed at Caa3 (sf) on December 8, 2009
Deal Name: CSC Series 1 GK
-- Class: Class A-2 through G-3 bonds and Class X bonds
-- Issue Amount (initial): JPY 36.2 billion
-- Dividend: Floating
-- Issue Date (initial): December 28, 2006
-- Final Maturity Date: November 12, 2012
-- Underlying Asset(initial): 11 non-recourse loans backed by
property
-- Originator: Credit Suisse Principal Investments Limited,
Tokyo Branch (CSPI)
-- Arranger: Credit Suisse Securities (Japan) Limited
The bonds were issued by CSC, Series 1 GK. The 11 underlying
loans, which were originated by CSPI, were transferred to the
issuer and are backed by 72 properties.
Payments on the bonds will be made pro rata on the Senior Bonds
and the Subordinated Bonds according to the amount of each in the
case of (1) payment of the loans at maturity, or (2) prepayment by
liquidation or refinancing of any of the loans.
In the event of a loan default, a write-down amount due to any
loss from the defaulting loan will be allocated in reverse
sequential order from the Class G to A bonds, although the
waterfall will remain the same as above.
Two of the loans have been paid down in full so far. The
principal of one loan suffered partial impairment as a result of
special servicing. Currently, eight of loans, which are backed by
residential/retail properties in local areas and by office
buildings in Tokyo, are under special servicing.
Rating Rationale
The rating action/review reflects these factors.
(1) The principal of one specially serviced loan, backed by retail
properties in Tokyo, suffered partial impairment as a result
of the special servicing.
(2) The recovery of one loan (backed by a retail property outside
Tokyo) may well be lower than Moody's recovery assumptions at
the last rating action (December 2009), as the Asset
Disposition Report on the loan was revised.
(3) In light of the progress in special servicing thus far,
recovery of the seven other loans under special servicing may
well be lower than Moody's recovery assumptions at the last
rating action (December 2009).
In its analysis of the G-3 bond, Moody's examined the loss
generated by the impaired loan.
In its analysis of the C-2 through F-3 bonds, Moody's will examine
the Asset Disposition Report for the loans as well as the
occupancy and cash flow of the properties. Moody's will decide on
the ratings for the latter after reviewing its recovery
assumptions for the properties.
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 not involved in the ratings, public information,
confidential and proprietary Moody's information.
Measures taken to ensure the quality of this information include
representations and warranties provided by the information
sources, reviews by a third party.
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.
CSC SERIES: S&P Downgrades Ratings on Various Classes of Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class B2 to F3 bonds issued under the CSC, Series 1GK transaction
and removed the ratings from CreditWatch with negative
implications, where they were placed on Oct. 7, 2010. At the same
time, S&P affirmed its ratings on classes A-2, A-3, G-3, and X.
CSC, Series 1 GK is a multiborrower CMBS transaction. The bonds
were initially secured by 11 nonrecourse loans, which were
actually treated as six loans extended to six obligors. Four out
of the six loans remain outstanding, of which all have defaulted.
S&P downgraded classes B-2 to F-3 because:
In December 2009, S&P lowered its assumptions with regard to the
likely collection amounts from the properties backing three of the
transaction's four remaining loans (the three loans originally
represented about 38%, about 22%, and about 8%, respectively, of
the total initial issuance amount of the bonds), Under its revised
assumptions, S&P estimated the values of properties backing each
loan to be about 74%, about 70%, and about 57%, respectively, of
its initial underwriting values. This time S&P has again lowered
its assumption with regard to the likely collection amounts from
the properties given the lack of progress in respect to the sales
of the properties in question and the current situation regarding
real estate deals involving similar asset types. S&P currently
assume the values of the properties backing each loan to be about
68%, about 55%, and about 30%, respectively, of its initial
underwriting values.S&P affirmed its rating on class G-3 because:
The property backing the other defaulted loan (the loan other than
the aforementioned three loans; the loan originally accounted for
about 19% of the total initial issuance amount of the bonds) was
sold in September 2010. The proceeds from the sale represent only
about 94% of the residual loan principal. As such, the loan
principal is likely to be impaired, although the final recovery
amount has yet to be fixed.
Meanwhile, the rating affirmations on classes A-2 and A-3 reflect
(1) the application of recovered principal from two redeemed loans
(the two loans originally represented a combined 13% or so of the
total initial issuance amount of the bonds) to senior tranches,
and (2) the likelihood that proceeds from the defaulted loan (the
aforementioned loan which originally accounted for about 19% of
the total initial issuance amount of the bonds) will be used to
decrease the residual principal of the senior tranches.
As mentioned earlier, the bonds were initially secured by 11
nonrecourse loans, which were actually treated as six loans
extended to six obligors. (Originally, they were backed by 72
real estate trust certificates and real estate properties.)
Currently, the bonds issued under the CSC, Series 1 GK transaction
are effectively secured by four loans. The transaction was
arranged by Credit Suisse Securities, and ORIX Asset Management &
Loan Services Corp. is the transaction servicer.
The ratings address the full and timely payment of interest and
the ultimate repayment of principal by the transaction's legal
final maturity date in November 2012 for the class A-2 and A-3
bonds, and the full payment of interest and ultimate repayment of
principal by the legal maturity date for the class B-2 to G-3
bonds, and the timely payment of available interest for the
interest-only class X bonds.
Ratings Lowered, Off Watch Negative
CSC, Series 1 GK
JPY36.2 billion (initial principal) yen-denominated bonds due
November 2012
Class To From Initial Issue Amount
----- -- ---- --------------------
B-2 A- (sf) AA- (sf)/Watch Neg JPY1.7 bil
B-3 A- (sf) AA- (sf)/Watch Neg JPY1.5 bil.
C-2 B- (sf) BBB (sf)/Watch Neg JPY3.2 bil.
D-2 CCC (sf) B+ (sf)/Watch Neg JPY3.2 bil.
E-2 CCC (sf) B- (sf)/Watch Neg JPY0.9 bil.
E-3 CCC (sf) B- (sf)/Watch Neg JPY0.6 bil.
F-3 CCC (sf) B- (sf)/Watch Neg JPY1.9 bil.
Ratings Affirmed
Class Rating Initial Issue Amount
----- ------ --------------------
A-2 AAA (sf) JPY18.1 bil.
A-3 AAA (sf) JPY3.9 bil.
G-3 CCC- (sf) JPY1.2 bil.
X AAA (sf) JPY33.1 bil.
DIC CORPORATION: Moody's Gives Stable Outlook on 'Ba2' Rating
-------------------------------------------------------------
Moody's Japan K.K. has changed to stable from negative its outlook
for the Baa3 issuer rating and the Ba2 unsecured interest
deferrable and early redeemable subordinated bonds rating of DIC
Corporation.
This action is based on Moody's view that DIC's profitability and
financial profile will continue to improve, given the company's
strengthened capital structure and the recovery in demand for its
core products.
In an effort to strengthen its deteriorated balance sheet, DIC has
taken two strategic actions this year: One, an issue of JPY20
billion in unsecured, interest-deferrable, and early redeemable
subordinated bonds in March 2010; the other, an issue of new
shares as well as a secondary offering for JPY17.5 billion in
total in June 2010. As a result, the company expects to restore
its adjusted debt/capitalization ratio to around 75% by end-
FYE3/2011, from 80.3% in FYE3/2010.
DIC's profitability is also recovering due to growing demand for
core products such as organic pigments, printing ink for
packaging, and electric and information materials. As a result,
the company raised its operating profit forecast for FYE3/2011
from its original JPY35 billion to JPY38 billion in August 2010.
DIC's core products have strong global market positions as well as
diversified user industries, and are less volatile through
economic cycles than other chemical products. Thus, the business
fundamentals of the company's core products will remain a strength
for the company's credit profile.
DIC has implemented a number of measures to strengthen
profitability over the last few years, among them 1) restructuring
its overseas subsidiary, Sun Chemical, by cutting headcount and
realigning production facilities; 2) lowering costs by
establishing mother plants for its core products in China and
India; and 3) realigning its product line-up and reinforcing
products with potential medium-term growth. As a result, DIC's
operating profit margin for the first quarter of FYE3/2011
improved markedly -- to 5.2%, from 1.2% in FYE3/2010.
In Moody's view, given the company's leading market position for
core products and the measures DIC has implemented to strengthen
profitability, its earnings and cash flow will continue to improve
over the medium term.
In addition, DIC's financial policies are conservative, with a
high priority on bolstering its balance sheet and a commitment to
keeping its capital expenditures within operating cash flow.
Thus, the company's balance sheet will improve over the medium
term.
As DIC still has a high leverage ratio in comparison with its
peers, it must continue to improve its balance sheet to maintain
the Baa3 rating.
Moody's Baa3 rating on DIC also reflects the company's stable and
strong relationship with its main banks, which provides two
notches of uplift from the company's fundamental creditworthiness.
The current Baa3 rating incorporates improvement in profitability
and leverage over the next few years -- such that adjusted
debt/capitalization declines to about 70%, the adjusted EBITDA
margin holds at about 10.0%, and adjusted debt/EBITDA improves to
about 5.0x by end-FYE3/2012.
The rating is unlikely to be upgraded for the next couple of
years, although upward pressure could emerge if DIC's earnings and
cash flow continue to improve as a result of further growth in its
core products' market positions, leading to a strengthened balance
sheet -- such that adjusted debt/capitalization looks to remain
below 65% and adjusted debt/EBITDA improves lower than 4.0x.
Downward pressure could emerge if earnings and cash flow -- and
the balance sheet -- deteriorate significantly due to a decline in
the company's market share for core products. Moody's will
consider negative rating action if the company cannot achieve
these ratios by end FYE3/2012: adjusted debt/capitalization of
75%; and adjusted debt/EBITDA of 5.5x.
Moody's last rating action on DIC was taken on October 9, 2009,
when the outlook for the rating was changed to negative from
stable.
DIC Corporation, headquartered in Tokyo, is a leading global
manufacturer of printing ink and organic pigments. Its business
lines are diversified into synthetic resins, electronics and
information materials, and high performance and applied products.
Consolidated sales for FYE3/2010 were JPY757.8 billion.
GODO KAISHA: S&P Downgrades Ratings on Various Classes of Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
floating-rate notes, classes A to D, issued by Godo Kaisha ORSO
Funding CMBS 6, and affirmed its ratings on classes E and F. At
the same time, S&P removed the ratings on classes A to C from
CreditWatch with negative implications, where they were placed on
Aug. 25, 2010. S&P also withdrew class X (TK distribution) in
accordance with S&P's updated criteria for rating interest-only
securities, which S&P published on April 15, 2010.
The transaction was initially backed by four TMK bonds and two
loans issued by/extended to six obligors. As the two loans (the
loans originally represented a combined 36.9% or so of the total
issuance amount of the notes) have been repaid, only four TMK
bonds remain.
On Aug. 25, 2010, S&P maintained the ratings on classes A to C on
CreditWatch with negative implications because:
S&P lowered its assumption with respect to the likely collection
amount from the properties backing two out of the transaction's
four remaining TMK bonds. S&P had yet to finalize its assessment
with regard to the likely collection from the properties (two
hotels, one of which is located in Tokyo and the other in a
provincial area) backing another of the remaining TMK bonds (the
TMK bond, which is due to mature in January 2011, originally
represented about 17.1% of the total initial issuance amount of
the notes).
S&P has since finalized its assessment with respect to the likely
collection amount from the properties backing the TMK bond
maturing in January 2011. S&P downgraded classes A to D because
S&P lowered its assumption with regard to the likely collection
amount from the properties in question based on the possibility
that the TMK bond might not be redeemed on its maturity date and
that the properties might need to be liquidated. S&P currently
assume the combined value of the properties to be about 38% of its
initial underwriting value.
Under the transaction agreement, TMK bond principal is set to be
repaid pro-rata provided the TMK bonds do not default. In
reviewing its ratings, S&P assumed that the TMK bond with the
lower credit quality would not be repaid, credit enhancement for
the upper-level tranches would not improve, and LTV ratios would
rise.
S&P has withdrawn its rating on class X (TK distribution) in
accordance with its updated criteria for rating IO securities (for
details, see report "Criteria/Structured Finance/General: Global
Methodology For Rating Interest-Only Securities," published
April 15, 2010).
Godo Kaisha ORSO Funding CMBS 6 Trust is a multiborrower CMBS
transaction. The floating-rate notes were initially secured by
four TMK bonds and two loans issued by/extended to six obligors.
The TMK bonds were originally backed by 32 real estate properties.
The transaction was arranged by Bear Stearns (Japan) Ltd., Tokyo
Branch. Premier Asset Management Co. acts as the servicer for
this transaction.
The ratings address the full and timely payment of interest and
the ultimate repayment of principal by the transaction's legal
final maturity date in November 2013 for the class A notes, and
the full payment of interest and ultimate repayment of principal
by the legal final maturity date for the class B to F notes.
Ratings Lowered, Off Creditwatch Negative
Godo Kaisha ORSO Funding CMBS 6
JPY29.9 billion floating-rate notes due November 2013
Class To From Initial Issue Amount
----- -- ---- --------------------
A A (sf) AAA (sf)/Watch Neg JPY16.0 bil.
B BB (sf) A (sf)/Watch Neg JPY3.5 bil.
C B+ (sf) BB+ (sf)/Watch Neg JPY3.6 bil.
Rating Lowered
Class To From Initial Issue Amount
----- -- ---- --------------------
D CCC (sf) B- (sf) JPY3.6 bil.
Rating Affirmed
Class Rating Initial Issue Amount
----- ------ --------------------
E CCC (sf) JPY3.0 bil.
F CCC (sf) JPY0.2 bil.
Rating Withdrawn
Class Rating
----- ------
X (TK distribution) AAA (sf)
The issue date was March 19, 2007.
JLOC XXXI: S&P Downgrades Ratings on Various Certificates
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
trust certificates, classes A to C, issued under the JLOC XXXI
Trust Certificates transaction and removed them from CreditWatch
with negative implications, where they were placed on Oct. 6,
2010. At the same time, Standard & Poor's affirmed its ratings on
classes D and X issued under the same transaction.
The trust certificates were initially secured by 19 nonrecourse
loans of which six loans (of which two have defaulted) remain at
this point.
S&P lowered its ratings on classes A to C and removed the ratings
from CreditWatch with negative implications because:
One of the two defaulted loans (the loan originally represented
about 12.6% of the total initial issuance amount of the trust
certificates) is backed by 25 properties, 11 of which are likely
to be sold, based on the information from the servicer. S&P has
lowered its assumption with respect to the likely collection
amount from 14 related collateral properties (14 properties other
than the 11 properties that are likely to be sold), which S&P had
revised downward in July 2010. In reviewing S&P's ratings this
time, S&P assumed the combined value of the 25 properties to be
about 55% of its underwriting value at initial assignments.
As for one of the four loans that have not defaulted (the loan
originally represented about 3.5% of the total initial issuance
amount of the trust certificates; maturity date: January 2013),
S&P has lowered for the first time its assumption with respect to
the likely collection amount from the properties backing that
loan. In reviewing S&P's ratings this time, S&P assumed the
combined value of the properties in question to be about 72% of
its underwriting value at initial assignments.
JLOC XXXI is a multiborrower CMBS transaction. The trust
certificates were initially secured by 22 nonrecourse loans, which
were originally backed by 62 real estate properties. The
transaction was arranged by Morgan Stanley Japan Securities Co.
Ltd., and ORIX Asset Management & Loan Services Corp. is the
transaction servicer.
The ratings address the full and timely payment of interest and
the ultimate repayment of principal by the transaction's legal
final maturity date in Feb. 2015 for the class A trust
certificates, the full payment of interest and ultimate repayment
of principal by the legal final maturity date for the class B to D
certificates, and the timely payment of available interest for the
interest-only class X certificates.
Rating Lowered, Off Creditwatch Negative
JLOC XXXI Trust Certificates
JOY24.3 billion trust certificates due February 2015
Class To From Initial Issue Amount
----- -- ---- --------------------
A AA (sf) AAA (sf)/Watch Neg JPY21.6 bil.
B BBB- (sf) A- (sf)/Watch Neg JPY1.1 bil.
C B+ (sf) BB (sf)/Watch Neg JPY0.9 bil.
Ratings Affirmed
Class Rating Initial Issue Amount
----- ------ --------------------
D CCC (sf) JPY0.7 bil.
X AAA (sf) JPY24.3 bil. (initial notional principal)
JLOC XXXI: Fitch Downgrades Ratings on Four Classes of Notes
------------------------------------------------------------
Fitch Ratings has downgraded JLOC XXXI Trust's Classes B to D
trust beneficiary interests due February 2015, and affirmed Class
A TBIs. The agency has simultaneously withdrawn the rating on the
dividend-only Class X TBIs. The transaction is a Japanese multi-
borrower type CMBS securitization. The rating actions are:
-- JPY2.91bn* Class A TBIs affirmed at 'AAsf'; Outlook revised
to Negative from Stable;
-- JPY1.1bn* Class B TBIs downgraded to 'BBB-sf' from 'Asf ';
Outlook revised to Negative from Stable;
-- JPY0.9bn* Class C TBIs downgraded to 'Bsf' from 'BBBsf';
Outlook Negative; and
-- JPY0.7bn* Class D TBIs downgraded to 'CCCsf' from 'B-sf';
assigned a Recovery Rating of 'RR5'.
* as of October 27, 2010
The rating on the Class X TBIs (dividend-only) of 'AAAsf' with
Stable Outlook has been withdrawn.
Fitch has downgraded the Class B to D TBIs to reflect its view
over the potential recovery amounts from the underlying loans.
Although the principal repayment from the loans redeemed to date
has partially improved the credit enhancement levels of the TBIs,
the deteriorating performance of some collateral properties has
had a larger impact in assessing the creditworthiness of the TBIs.
Most of the underlying collateral properties are residential
properties in provincial cities. The portfolio also includes
retail or office properties located in the area outside the Tokyo
metropolitan district.
Fitch has revised downwards the net cash flow estimations for 29
out of the 36 collateral properties, considering their actual
performances to date and the current conditions of the lease
markets to which the collateral properties belong. For the
purpose of this review, Fitch has maintained the cap rates applied
in the previous review to derive Revised Fitch Values and Stress-
sale Values for all properties. However, the agency has adopted
lower values for some collateral properties, taking into
consideration the remaining period to maturity of each loan, in
line with the surveillance criteria. As a result, for the purpose
of this review, Fitch has adopted values for the underlying
properties which are on average 20.5% lower than those adopted in
the previous review in October 2009, and on average 47.6% lower
than the agency's initial analysis in August 2006.
The agency has revised the Outlooks to Negative from Stable on
Classes A and B, and maintained Negative Outlooks on Class C,
considering the current situations of real estate leasing markets
in regional cities, and operational uncertainties regarding
properties backing a loan whose performance may significantly
affect the credit of this transaction.
The rating on the dividend-only Class X TBIs, which addresses only
the likelihood of receiving dividend payments as per the trust
agreement, has been withdrawn.
The TBIs were issued in August 2006 and the transaction was
initially a securitization of 22 loans backed by 62 properties.
To date, 13 loans have been repaid in full, and the transaction is
currently backed by nine loans ultimately secured by 36 real
estate properties, in addition to a principal fund of one loan
recently repaid in full. The borrower of four remaining loans is
the same entity, and these loans are cross-default and cross-
collateralized loans. Five loans including these four loans are
in default. The other four loans are performing.
NISHI-NIPPON CITY: Fitch Upgrades Individual Rating to 'D'
----------------------------------------------------------
Fitch Ratings has upgraded Nishi-Nippon City Bank's Individual
Rating to 'D' from 'D/E'. The agency simultaneously affirmed
NNC's Issuer Default Ratings, Support Rating, Support Rating Floor
and rating on its subordinated bonds. A full list of rating
actions can be found at the end of this release.
NNC's Individual Rating was upgraded on account of its standalone
profitability having now stabilized, while the performance of its
subsidiary, Nagasaki Bank, is improving. NNC's IDRs are support-
driven, reflecting Fitch's expectation of high probability of
support from the Japanese government in the event it is required.
The Individual Rating reflects NNC's modest profitability and
stable local franchise, but is constrained by its relatively poor
asset quality and modest capitalization. Profitability has been
affected by loan loss charges, realized losses, impairments on
investment securities, as well as loan loss charges at Nagasaki
Bank. While the financial year to end-March 2008 and FYE09 were
challenging, recovering capital markets and stable credit costs
(partly helped by regulatory forbearance) led to better results
for NNC and Nagasaki Bank in FYE10.
By July 2010, NNC had repaid the total amount of public funds
injected into the bank in 2002. Following this redemption, its
Tier 1 capital comprised of preferred securities and deferred tax
receivables, with the majority being common equity (5.0% of its
risk-weighted assets at end-June 2010). At the same time, its
Fitch Eligible Capital ratio, which includes hybrid capital with a
limit, was 5.9%.
While NNC's disclosed problem loans are relatively large compared
with an average for large regional bank peers in Japan, Fitch is
not overly concerned about existing problem loans owing to the
extent of collateral, which is often conservatively valued,
covering the exposures. However, the agency would become more
concerned if new problem loans were to emerge (in Japan's
deflationary economy). However, the prospects of this occurring
in FYE11 are likely to be modest -- thanks to legislation (which
came into force in December 2009 and possibly will remain in
FYE12) to facilitate funding for small medium sized enterprises,
which have been one of the more troubled sectors in Japan in
recent years. Under Fitch-simulated stress tests, NNC's FEC would
still likely be around 6%, which the agency considers satisfactory
in relation to the bank's Individual Rating. However, Fitch's
stress tests do not take into account possible impairment risks on
the bank's securities portfolio, and such risks could negatively
impact the bank's profitability and balance sheet integrity in
times of extreme market stress. This, in turn, could put negative
pressure on NNC's Individual Rating.
NNC's liquidity, however, appears adequate with its loan to
deposit ratio at about 80% and Japan's government bonds at a near
10% of deposits. Its liquidity is also supported by the
accommodating policy of the Bank of Japan.
As NNC's Long-Term IDRs are at the Support Rating Floor, they are
unlikely to be downgraded, unless the expectation of support
itself were to change. An upgrade of the Individual Rating could
result from stronger common equity capitalization, but such
improvements are only likely over the medium to longer term.
In May 2010, NNC jointly established with Tokai Tokyo Securities a
retail-oriented securities subsidiary. NCC also has about a 6%
stake in Howa Bank in Oita Prefecture, about a 12% share in the
Resolution and Collection Corporation, as well as business tie-ups
with various banks in Asia.
NNC's subordinated bonds were affirmed at 'BB+', a notch lower
than the bank's IDR which is consistent with Fitch's general
practice for non-loss absorbing Tier 2 instruments.
Nishi-Nippon City Bank
-- Long-term foreign currency IDR affirmed at 'BBB-'; Outlook
Stable;
-- Short-term foreign currency IDR affirmed at 'F3';
-- Long-term local currency IDR affirmed at 'BBB-'; Outlook
Stable;
-- Short-term local currency IDR affirmed at 'F3';
-- Individual Rating upgraded to 'D' from 'D/E';
-- Support Rating affirmed at '2';
-- Support Rating Floor affirmed at 'BBB-'; and
-- Subordindated bonds affirmed at 'BB+'
TAKEFUJI CORP: Attracts Interest From 20 Local & Overseas Buyers
----------------------------------------------------------------
Toshiro Hasegawa and Takahiko Hyuga at Bloomberg News report
Takefuji Corp. attracted 20 overseas and local firms for possible
investment, a court-appointed administrator said.
According to Bloomberg, Eiichi Obata, a lawyer appointed to
oversee the company's rehabilitation, said at a press conference
on Oct. 31 that Japanese and overseas private-equity funds, as
well as some financial groups that own consumer lenders, have
shown interest in investing in Takefuji.
Mr. Obata said the administrators hired Shinsei Bank Ltd. to
select a financial sponsor to rehabilitate the consumer lender.
They will start the bidding process in the middle of November and
decide the investor by March, Mr. Obata said, according to
Bloomberg.
About Takefuji
Takefuji Corporation (TYO:8564) -- http://www.takefuji.co.jp/--
is a Japan-based company mainly engaged in the consumer finance
business. The Company operates in two business segments. The
Consumer Finance segment covers the loan and credit card
businesses. The Others segment is involved in the operation of
golf courses, the development, management and leasing of real
estate, the venture capital business, as well as the investment
business, among others. The Company has eight subsidiaries.
====================
N E W Z E A L A N D
====================
BLUE CHIP: SFO Won't Press Criminal Charges Against Firm & Founder
------------------------------------------------------------------
Jenni McManus at BusinessDay.co.nz reports that Blue Chip New
Zealand Ltd and its founder Mark Bryers have escaped criminal
charges.
According to BusinessDay.co.nz, Serious Fraud Office director
Adam Feeley said that while the SFO was continuing its probe into
one of the company's South Island franchises, it did not intend
laying criminal charges against the group.
Mr. Feeley said the decision not to prosecute was not taken
lightly but after discussions with Crown solicitor Meredith
Connell the SFO had concluded there was insufficient evidence to
implicate any particular individual with criminal misconduct, the
report relates.
However, BusinessDay.co.nz notes, "matters of professional conduct
of lawyers involved in the Blue Chip development" had been
referred to the NZ Law Society. The decision not to prosecute
could be reviewed if further, compelling evidence came to light,
BusinessDay.co.nz adds.
BusinessDay.co.nz relates the SFO began investigating Blue Chip
and Mr. Bryers in May 2008, three months after it collapsed.
According to BusinessDay.co.nz, the SFO's investigations included:
-- claims of misuse of purchasers' deposit money;
-- on-selling of previously sold apartments;
-- unauthorized amendment of loan applications;
-- using false representations and documents to obtain
advances or fees and to avoid penalties;
-- false representations to investors; and
-- false accounting for renovations on Mr. Bryers' home
in the plush Auckland suburb of Remuera.
In May, BusinessDay.co.nz recounts, Mr. Bryers pleaded guilty to
34 charges laid under the Companies Act and Financial Reporting
Act. Mr. Byers was fined NZ$37,470 and ordered to do 75 hours'
community service, BusinessDay.co.nz adds.
About Blue Chip NZ
Blue Chip New Zealand Ltd. is a financial services company with
offices throughout New Zealand. It is a subsidiary of Blue Chip
Financial Solutions Limited, now known as Northern Crest
Investments. Northern Crest operates in two divisions: financial
services and leasing services. The financial services division is
engaged in the provision of financial structuring services and
investment product to a variety of clients. The leasing
activities division is engaged in rental of residential property.
* * *
As reported by the Troubled Company Reporter-Asia Pacific on
April 15, 2008, Blue Chip New Zealand Ltd. is in voluntary
liquidation, joining 20 other Blue Chip companies that are now
being wound up.
SOUTH CANTERBURY: No Estimate of Losses in Receivers' First Report
------------------------------------------------------------------
The National Business Review reports that receivers for South
Canterbury Finance have omitted any recovery estimates in their
first report on the finance company which collapsed in late
August, triggering a NZ$1.775 billion payout under the Crown's
retail deposit guarantee scheme. Kerryn Downey and William Black
of McGrathNicol were appointed receivers on August 31.
According to the report, the receivers' first report posted on the
companies office Web site shows at the time of receivership South
Canterbury had total assets of NZ$1.4 billion and total
liabilities of NZ$1.7 billion. The report relates that loan
advances totaled NZ$1.56 billion, less impairment provisions of
NZ$446.28 million.
The report notes that the balance sheet shows a shortfall of
NZ$314.78 million -- about the same as the government's estimates
for taxpayer losses for the entire retail deposit guarantee
scheme. The report relates that last week the receivers appointed
Deutsche Bank to advise on the sale of the finance company
business and Goldman Sachs & Partners (NZ) for the Helicopters NZ
and Scales Corp assets.
"We have omitted from this report our realization estimates of the
assets as we believe that their inclusion could materially
prejudice the exercise of our functions, and in particular, our
duty to obtain the best price reasonably obtainable for the
company's assets," NBR quoted the receivers as saying.
A breakdown of South Canterbury's loan advances showed business
lending made up the bulk of the book at AU$690.8 million with
property next at $256.2 million, followed by rural at AU$179.6
million, NBR relates.
The report discloses that the receivers said they were aware of "a
number of concerns" raised by investors and other parties prior to
their appointment. The report relates the receivers said that
their initial focus was to stabilize the business, including
retaining the management team and all staff, and continuing all
branch operations in order to preserve value for all stakeholders.
South Canterbury would continue to actively manage defaulting
borrowers, they added. "This may include appointing receivers or
sale of the underlying assets securing the lending," NBR quoted
the receivers as saying.
The receivers noted that all figures in this first report rely on
information provided by SCF which has not been independently
verified or audited, the report adds.
The next statutory report will be released in the first quarter of
2011.
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.
===============
T H A I L A N D
===============
* Moody's Gives Stable Outlook on Ratings of Eight Thai Banks
-------------------------------------------------------------
Moody's Investors Service has revised to stable from negative the
outlook on the foreign currency debt and deposit ratings of eight
Thai banks.
This action follows the change in Moody's outlook to stable for
Thailand's Baa1 foreign currency deposit ceiling, and Baa1 foreign
and local currency government bond ratings. In a related action,
the country's foreign currency bond ceiling was increased by one
notch to A2, with a stable outlook.
See Moody's press release of October 28, 2010, for an extensive
discussion of sovereign issues.
The affected banks are the Bangkok Bank, the Export-Import Bank of
Thailand, the Government Housing Bank of Thailand, the
Kasikornbank Public Co Ltd, the Krung Thai Bank, the Siam
Commercial Bank Public Co Ltd, the Standard Chartered Bank (Thai)
Public Co Ltd, and the United Overseas Bank (Thai) Public Co Ltd.
All other ratings remain unaffected.
The last rating action on BBL was taken on October 12, 2010, when
Moody's assigned an A3 foreign currency senior unsecured debt
rating to BBL's global senior unsecured notes.
The last rating action on KTB was taken on June 9, 2010, when
Moody's changed the outlook on the D- BFSR, the A3/Prime-1 long-
term/short-term local currency deposit ratings, and the B2 foreign
currency Hybrid Tier 1 rating to stable from negative.
Moody's last rating actions on EXIMT, GHB, KBank, SCB, SCBT, and
UOBT were taken on June 24, 2009, when Moody's concluded the
review for possible downgrade of their debt and deposit ratings
that was initiated on May 27, 2009.
The outlooks for these ratings were revised to stable:
* BBL: Foreign currency long-term deposit rating of Baa1, foreign
currency senior debt rating of A3, and foreign currency
subordinated debt rating of Baa1
* EXIMT: Issuer rating of Baa1
* GHB: Foreign currency long-term deposit rating of Baa1
* KBank: Foreign currency long-term deposit rating of Baa1 and
foreign currency subordinated debt rating of Baa1
* KTB: Foreign currency long-term deposit rating of Baa1 and
foreign currency certificate of deposit program of Baa1
* SCB: Foreign currency long-term deposit rating of Baa1
* SCBT: Foreign currency long-term deposit rating of Baa1 and
issuer rating of A3
* UOBT: Foreign currency long-term deposit rating of Baa1
The outlooks for these ratings were unaffected by the sovereign
rating action and remain stable:
* BBL: BFSR of D+ and foreign currency short-term deposit rating
of P-2
* BAY: BFSR of D and foreign currency deposit rating of Baa2/P-2
* GHB: BFSR of E+ and foreign currency short-term deposit rating
of P-2
* KBank: BFSR of D+, foreign currency short-term deposit rating of
P-2 and local currency deposit rating of A3/P-1
* KTB: BFSR of D-, foreign currency short-term deposit rating of
P-2, local currency deposit rating of A3/P-1 and preferred stock
rating of B2
* SCIB: BFSR of D, foreign currency deposit rating of Baa2/P-2,
foreign currency senior unsecured debt rating of Baa2, foreign
currency subordinated debt rating of Baa3, and short-term debt
rating of P-3
* SCB: BFSR of D+, foreign currency short-term deposit rating of
P-2 and local currency deposit rating of A3/P-1
* SCBT: BFSR of D+, foreign currency short-term deposit rating of
P-2, short-term foreign currency issuer rating of P-2, local
currency deposit rating of A3/P-1, and local currency short-term
issuer rating of P-1
* TMB: BFSR of D-, foreign currency deposit rating of Baa3/P-3 and
foreign currency preferred stock of B3
* UOBT: BFSR of D and foreign currency short-term deposit rating
of P-2
===============
X X X X X X X X
===============
* S&P Raises Ratings on Three Asia-Pacific CDO Tranches
-------------------------------------------------------
Standard & Poor's Ratings Services raised the ratings on three
Asia-Pacific (ex-Japan) collateralized debt obligation tranches.
At the same time, the ratings were removed from CreditWatch with
positive implications, where they were placed on Oct. 13, 2010.
To assess the creditworthiness of each class, S&P reviewed the
credit quality of the securitized assets using synthetic rated
overcollateralization and results from supplemental tests. These
results measure the degree by which the credit enhancement of a
tranche exceeds the stressed loss rate assumed for a given rating
scenario.
The ratings on the tranches were raised as their SROC scores are
greater than 100% at the current rating level and at a higher
rating level with sufficient cushion (based on the maximum
scenario loss rate, largest obligor test, and largest industry
test). SROC scores rising above 100% reflect an improvement in
the credit quality of the underlying portfolio.
Alpha Financial Products Ltd.
Rating To Rating From
--------- -----------
Series 1 CCCp (sf) NRi CCC-p NRi (sf)/ Watch Pos
Morgan Stanley ACES SPC 2007-9
Rating To Rating From
--------- -----------
Class III (Principal) B-p (sf) CCC+p (sf)/Watch Pos
Zenesis SPC
Rating To Rating From
--------- -----------
Series 2006-1 A+ (sf) BBB+ (sf)/Watch Pos
NRi-Interest payments are not rated.
Notes:
1. Where the final price on defaulted reference names in CDO
portfolios is not known, S&P's analysis takes into
consideration the auction results for these names from the
International Swaps and Derivatives Association, Inc.
2. In accordance with the criteria for rating CDO transactions
certain factors such as credit stability and rating
sensitivity to modeling parameters may be considered in
assigning ratings to CDO tranches, in addition to the
supplemental tests, the Monte Carlo default simulation
results, and the associated cash flow modeling. Such risks in
transactions may be assessed on a case-by-case basis and the
ratings may be qualitatively adjusted to a rating level
different than that indicated by the various quantitative
results. The tranches' final ratings reflect the result of
any such qualitative adjustments.
* BOND PRICING: For the Week October 25 to October 29, 2010
-----------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
ADVANCED ENERGY 9.50 01/04/2015 AUD 1.07
AINSWORTH GAME 8.00 12/31/2011 AUD 1.04
AMITY OIL LTD 10.00 10/31/2013 AUD 1.90
AMP GROUP FINANC 9.80 04/01/2019 NZD 1.00
BECTON PROP GR 9.50 06/30/2010 AUD 0.24
CBD ENERGY LTD 12.50 01/29/2011 AUD 0.11
EXPORT FIN & INS 0.50 12/16/2019 AUD 62.86
EXPORT FIN & INS 0.50 06/15/2020 AUD 61.02
EXPORT FIN & INS 0.50 06/15/2020 AUD 61.40
FIRST AUSTRALIAN 15.00 01/31/2012 AUD 0.45
GRIFFIN COAL MIN 9.50 12/01/2016 USD 60.75
HEEMSKIRK CONSOL 8.00 04/29/2011 AUD 2.82
MINERALS CORP 10.50 09/30/2011 AUD 0.25
NEW S WALES TREA 1.00 09/02/2019 AUD 67.67
NEW S WALES TREA 0.50 09/14/2022 AUD 54.24
NEW S WALES TREA 0.50 10/07/2022 AUD 54.07
NEW S WALES TREA 0.50 10/28/2022 AUD 55.86
PRAECO P/L 7.13 07/28/2020 AUD 73.49
RESOLUTE MINING 12.00 12/31/2012 AUD 1.25
SUN RESOURCES NL 12.00 06/30/2011 AUD 0.45
TREAS CORP VICT 0.50 08/25/2022 AUD 54.47
CHINA
-----
CHINA GOV'T BOND 1.64 12/15/2033 CNY 59.18
SHANGHAI WAIGAOQ 4.20 09/04/2014 CNY 54.39
HONG KONG
---------
RESPARCS FUNDING 8.00 12/29/2049 USD 47.25
INDIA
-----
L&T FINANCE LTD 8.40 03/08/2013 INR 8.15
PUNJAB INFRA DB 0.40 10/15/2024 INR 26.10
PUNJAB INFRA DB 0.40 10/15/2025 INR 23.92
PUNJAB INFRA DB 0.40 10/15/2026 INR 21.92
PUNJAB INFRA DB 0.40 10/15/2027 INR 20.12
PUNJAB INFRA DB 0.40 10/15/2028 INR 18.49
PUNJAB INFRA DB 0.40 10/15/2029 INR 17.02
PUNJAB INFRA DB 0.40 10/15/2030 INR 15.70
PUNJAB INFRA DB 0.40 10/15/2031 INR 14.51
PUNJAB INFRA DB 0.40 10/15/2032 INR 13.43
PUNJAB INFRA DB 0.40 10/15/2033 INR 12.40
PYRAMID SAIMIRA 1.75 07/04/2012 USD 12.43
INDONESIA
---------
MOBILE-8 TELECOM 12.37 06/15/2017 IDR 70.00
JAPAN
-----
AIFUL CORP 6.00 12/12/2011 JPY 70.50
AIFUL CORP 6.00 12/12/2011 JPY 70.50
AIFUL CORP 1.63 11/22/2012 JPY 64.08
AIFUL CORP 1.74 05/28/2013 JPY 64.69
AIFUL CORP 1.99 10/19/2015 JPY 43.91
COVALENT MATERIA 2.87 02/18/2013 JPY 74.06
CSK CORPORATION 0.25 09/30/2013 JPY 69.56
JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 62.30
JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 61.70
SHINSEI BANK 5.62 12/29/2049 GBP 74.03
TAKEFUJI CORP 9.20 04/15/2011 USD 18.00
MALAYSIA
--------
ADVANCED SYNERY 2.00 01/26/2018 MYR 0.09
ALIRAN IHSAN RES 5.00 11/29/2011 MYR 1.46
CRESENDO CORP B 3.75 01/11/2016 MYR 0.95
DUTALAND BHD 6.00 04/11/2013 MYR 0.36
DUTALAND BHD 6.00 04/11/2013 MYR 0.75
EASTERN & ORIENT 8.00 07/25/2011 MYR 1.08
EASTERN & ORIENT 8.00 11/16/2019 MYR 1.15
KUMPULAN JETSON 5.00 11/27/2012 MYR 1.05
LION DIVERSIFIED 4.00 12/17/2013 MYR 1.08
MITHRIL BHD 3.00 04/05/2012 MYR 0.59
NAM FATT CORP 2.00 06/24/2011 MYR 0.05
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.53
OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.27
OLYMPIA INDUSTRI 2.80 04/11/2013 MYR 0.19
PUNCAK NIAGA HLD 2.50 11/18/2016 MYR 0.66
REDTONE INTL 2.75 03/04/2020 MYR 0.08
RUBBEREX CORP 4.00 08/14/2012 MYR 0.98
SCOMI ENGINEERING 4.00 03/19/2013 MYR 1.07
SCOMI GROUP 4.00 12/14/2012 MYR 0.10
TATT GIAP 2.00 06/06/2015 MYR 0.70
TRADEWINDS CORP 2.00 02/08/2012 MYR 0.90
TRADEWINDS PLANT 3.00 02/28/2016 MYR 1.10
TRC SYNERGY 5.00 01/20/2012 MYR 1.50
WAH SEONG CORP 3.00 05/21/2012 MYR 2.50
WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.26
YTL CEMENT BHD 5.00 11/10/2015 MYR 2.15
NEW ZEALAND
-----------
ALLIED FARMERS 9.60 11/15/2011 NZD 37.03
ALLIED NATIONWIDE 11.52 12/29/2049 NZD 28.00
CONTACT ENERGY 8.00 05/15/2014 NZD 1.06
DORCHESTER PACIF 5.00 06/30/2013 NZD 61.79
FLETCHER BUI 8.50 03/15/2015 NZD 8.10
FLETCHER BUI 7.55 03/15/2011 NZD 7.00
GMT BOND ISSUER 7.75 06/19/2015 NZD 0.08
INFRATIL LTD 8.50 09/15/2013 NZD 8.20
INFRATIL LTD 8.50 11/15/2015 NZD 8.00
INFRATIL LTD 10.18 12/29/2049 NZD 61.00
KIWI INCOME PROP 8.95 12/20/2014 NZD 1.31
MARAC FINANCE 10.50 07/15/2013 NZD 1.01
NZ FINANCE HLDGS 9.75 03/15/2011 NZD 57.41
SKY NETWORK TV 4.01 10/16/2016 NZD 5.81
SOUTH CANTERBURY 10.50 06/15/2011 NZD 1.00
SOUTH CANTERBURY 10.43 12/15/2012 NZD 0.67
ST LAURENCE PROP 9.25 07/15/2010 NZD 54.89
TOWER CAPITAL 8.50 04/15/2014 NZD 1.03
TRUSTPOWER LTD 8.50 09/15/2012 NZD 7.05
TRUSTPOWER LTD 8.50 03/15/2014 NZD 7.25
TRUSTPOWER LTD 7.60 12/15/2014 NZD 1.03
TRUSTPOWER LTD 8.60 12/15/2016 NZD 1.05
UNI OF CANTERBUR 7.25 12/15/2019 NZD 0.98
VECTOR LTD 8.00 06/15/2012 NZD 6.75
VECTOR LTD 8.00 10/15/2014 NZD 1.00
SINGAPORE
---------
BLUE OCEAN 11.00 06/28/2012 NZD 29.00
DAVOMAS INTL FIN 5.50 12/08/2014 USD 64.51
NEXUS 1 PTE LTD 10.50 03/07/2014 USD 1.00
UNITED ENG LTD 1.00 03/03/2014 SGD 1.76
WBL CORPORATION 2.50 06/10/2014 SGD 1.85
SOUTH KOREA
-----------
DAEWOO MTR SALES 6.55 03/17/2011 KRW 62.12
HOPE KOD 1ST 8.50 06/30/2012 KRW 30.47
HOPE KOD 2ND 15.00 08/21/2012 KRW 32.42
HOPE KOD 3RD 15.00 09/30/2012 KRW 30.34
HOPE KOD 4TH 15.00 12/29/2012 KRW 32.62
HOPE KOD 6TH 15.00 03/10/2013 KRW 37.80
IBK 2008/12 ABS 25.00 06/24/2011 KRW 64.26
IBK 2009/13 ABS 25.00 02/03/2012 KRW 67.14
IBK 2009/16 ABS 25.00 09/24/2012 KRW 60.64
IBK 2009/17 ABS 25.00 12/29/2012 KRW 57.37
KB 10TH SEC SPC 23.00 01/03/2011 KRW 62.53
KB 10TH SEC SPC 20.00 01/03/2011 KRW 42.18
KB 11TH SEC SPC 20.00 07/03/2011 KRW 63.91
KB 12TH SEC SPC 25.00 01/21/2012 KRW 57.84
KB 13RD SEC SPC 25.00 07/02/2012 KRW 59.38
KB 14TH SEC SPC 23.00 01/04/2013 KRW 57.35
KDB 5TH SEC SPC 15.00 12/13/2012 KRW 60.14
KDB 6TH SEC SPC 20.00 12/02/2019 KRW 53.21
KEB SEC 17TH SPC 20.00 12/28/2011 KRW 57.90
NACF-14 ABS SPS 25.00 01/15/2011 KRW 62.26
NACF-15 ABS SPS 25.00 03/18/2011 KRW 60.66
NACF-16 ABS SPS 15.00 01/03/2011 KRW 52.19
ONE KDB 1ST ABS 12.00 12/13/2010 KRW 72.89
ONE KDB 1ST ABS 7.60 06/13/2011 KRW 29.24
OSAN MYTOWN 1ST 5.64 04/16/2012 KRW 66.35
OSAN MYTOWN 2ND 5.64 04/16/2012 KRW 62.70
SAM HO INTL 6.32 03/28/2011 KRW 71.64
SHINHAN 2ND SEC 25.00 06/11/2010 KRW 29.50
SHINHAN 7TH SEC 20.00 12/14/2010 KRW 19.26
SINBO 2010 1ST 15.00 07/22/2013 KRW 30.49
SINBO 2ND ABS 15.00 08/26/2013 KRW 33.25
SINBO 3RD ABS 15.00 09/30/2013 KRW 31.35
SINBO 4TH ABS 15.00 09/30/2013 KRW 31.11
SINGOK ABS 7.50 06/18/2011 KRW 71.20
SINGOK NS ABS 7.50 06/27/2011 KRW 52.07
YOUNGNAM SAVINGS 8.50 12/18/2014 KRW 16.09
VIETNAM
--------
VIETNAM MACHINE 9.20 06/06/2017 VND 74.61
VIETNAM SHIPBUIL 9.00 04/13/2017 VND 61.66
VIETNAM-PAR 4.00 03/12/2028 USD 74.00
VIETNAM SHIPBUIL 9.00 04/13/2017 VND 61.66
VIETNAM-PAR 4.00 03/12/2028 USD 74.00
*********
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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers. Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.
TCR-AP subscription rate is US$625 for 6 months delivered via
e-mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance thereof
are US$25 each. For subscription information, contact Christopher
Beard at 240/629-3300.
*** End of Transmission ***