/raid1/www/Hosts/bankrupt/TCRAP_Public/101220.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, December 20, 2010, Vol. 13, No. 250
Headlines
A U S T R A L I A
BURRUP FERTILISERS: ANZ Bank Calls In Receivers
ORACLE BROADBEACH: Goes Into Receivership
SMART SERIES: Fitch Affirms Ratings on Five Classes of Notes
SONRAY CAPITAL: Liquidators' Request to Access Funds Denied
C H I N A
CHINA BAK: PKF Hong Kong Raises Going Concern Doubt
H O N G K O N G
ALCATEL NETWORKS: Lam and Boswell Step Down as Liquidators
AMERICAN ACOUSTIC: Creditors to Get 90% Recovery on Claims
ANGLO STARLITE: Creditors to Get 100% Recovery on Claims
ATHENA JEWELLERY: Court Enters Wind-Up Order
AUTRON MAURITIUS: Lee Mei Yee May Appointed as Liquidator
BEAUTY YOGA: Court Enters Wind-Up Order
C.B.S INVESTMENT: Court to Hear Wind-Up Petition on December 22
CBM-SANWA INT'L: Court to Hear Wind-Up Petition on February 2
CHINA PROFIT: Creditors' Proofs of Debt Due December 31
CHUNG SHUN: Court to Hear Wind-Up Petition on February 9
CITP HOLDINGS: Kwong Oi Kwan Appointed as Liquidator
COMPASS VENTURES: Court to Hear Wind-Up Petition on December 29
CHRISTIAN LABOUR: Lau Wai Yung Alice Appointed as Liquidator
DECADE TECHNOLOGY: Court to Hear Wind-Up Petition on January 19
DEGREEASIA LTD: Creditors and Contributories to Meet on Dec. 30
LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases
I N D I A
ANOPCHAND TILOKCHAND: CRISIL Places 'BB+' Rating on Cash Credit
B D OVERSEAS: CRISIL Reaffirm 'B' Rating to INR32.8MM Term Loan
ISHWAR ELECTRIC: CRISIL Assigns 'BB' Rating to INR55MM Cash Credit
KESHAV MILK: CRISIL Downgrades Rating on INR37.3MM Loan to 'D'
PRECISION MACHINE: CRISIL Assigns 'D' Rating to INR15M Cash Credit
RAMPRASAD TUBES: CRISIL Reaffirms 'B+' Rating on INR7.3MM LT Loan
S. K. ENTERPRISES: CRISIL Rates INR90MM Cash Credit at 'BB'
SACHDEV FOOD: CRISIL Reaffirms 'BB' Rating on INR34.2MM Term Loan
SACHDEV FOOD PRODUCTS: CRISIL Reaffirms 'BB' Ratings on Bank Debt
SR FOILS: CRISIL Upgrades Rating on INR500MM Cash Credit to 'BB+'
SUNRISE TIMPLY: CRISIL Upgrades Rating on Cash Credit to 'BB-'
TRIMURTI CONCAST: CRISIL Rates INR100 Million Cash Credit at 'C'
UMA ISPAT: CRISIL Reaffirms 'BB+' Rating on INR50MM Cash Credit
* Fitch Says Rising Cotton Prices Could Hurt Indian Textile Makers
I N D O N E S I A
GARUDA INDONESIA: Asked to Improve Performance Before IPO
GARUDA INDONESIA: Inks Debt Restructuring Deal With Lenders
J A P A N
DAIWA SECURITIES: Fitch Keeps All Ratings; Gives Negative Outlook
NOMURA HOLDINGS: Fitch Affirms All Ratings; Gives Positive Outlook
UDMAC-J1 TRUST: Moody's Downgrades Ratings on Various Certs.
K O R E A
HYUNDAI ENG'G: Creditors Seek to Cancel Hyundai Group Sale Deal
NATIONAL AGRICULTURAL: Moody's Retains Negative Outlook on Ratings
M A L A Y S I A
AMBANK BHD: S&P Raises Long-Term Counterparty Credit Rating
N E W Z E A L A N D
PLUM DUFF: PricewaterhouseCoopers Appointed as Receivers
TAWERA LAND: Placed Into Liquidation Over Unpaid Tax
S I N G A P O R E
ALLIANCE TECHNOLOGY: Creditors Get 1.0124% Recovery on Claims
BIOENERGY SINGAPORE: Court Enters Wind-Up Order
GRANDSTAND PTE: Court to Hear Wind-Up Petition on December 31
KCH GROUP: Court to Hear Wind-Up Petition on December 31
KHENG MOH: Court to Hear Wind-Up Petition on December 31
LEHMAN BROTHERS: DBS Bank Wins Dismissal of Investors' Suit
S R I L A N K A
TRADE FINANCE: Fitch Affirms 'BB+' National Long-Term Rating
UNION BANK: Fitch Affirms 'BB+' National Long-Term Rating
T A I W A N
TAISHIN FINANCIAL: Fitch Raises Ratings; Gives Positive Watch
V I E T N A M
VIETNAM NATIONAL: Moody's Cuts Corporate Family Rating to 'B2'
* Moody's Downgrades Ratings on Six Vietnamese Banks
* Moody's Downgrades Vietnam's Government Bond Rating to 'B1'
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A U S T R A L I A
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BURRUP FERTILISERS: ANZ Bank Calls In Receivers
-----------------------------------------------
The Australian reports that Burrup Fertilisers Pty Ltd has been
placed into receivership with debts of about AU$800 million. ANZ
Bank on Friday appointed PPB Advisory as receivers to Burrup
Fertilisers.
The Australian relates that ANZ has also appointed the same
receivers, PPB Advisory, over shares held by members of the Oswal
Group in related company Burrup Holdings. The bank is alleging
"evidence of financial irregularities" as well as the usual
default triggers relating to debt facilities established between
2002 and 2007, The Australian says.
According to The Australian, the Oswal Group -- which owns 65% of
Burrup Fertilisers -- has been dogged for years by allegations of
unusual transactions and has a history of court disputes, most
particularly with 35% shareholder, Norwegian group Yara
International.
Pankaj Oswal, the company's chairman and managing director, said
through a spokesman that he welcomed the intervention of ANZ Bank,
and noted that ANZ and PPB both believed Burrup Fertilisers
remained solvent, The Australian relates.
PPB Advisory's Ian Carson is quoted in The Australian report as
saying that "We have been doing investigations for a long time and
there are significant financial irregularities in the company."
"It will be business as usual while the business is stabilized
concurrently with the commencement of a sale process and extensive
investigations. At this stage, it appears the business is solvent
and is expected to trade profitably. Employees and stakeholders
should be comforted that it's business as usual," PPB Advisory
said, according to The Australian.
The Australian notes that Yara said its chief financial officer in
Asia, Rao Narsimha, had been appointed interim managing director
of Burrup Fertilisers, replacing Mr. Oswal.
Headquartered in Karratha in Western Australia, Burrup Fertilisers
Pty Ltd -- http://www.bfpl.com.au/-- is Australia's largest
ammonium producer. The company has a production capacity of 850-
tonnes of liquid ammonia a year.
ORACLE BROADBEACH: Goes Into Receivership
-----------------------------------------
The Australian reports that the Oracle Broadbeach complex is in
receivership. Its developer Niecon subsidiary South Sky
Investments' Director Michael Nikiforides placed the company into
receivership, the news agency says.
The completed Oracle project collapsed because of problems with
settlements of up to 400 apartments within the towers that had
been pre-sold before the global financial crisis, according to The
Australian. The report relates that after the crisis hit, many
were unable to come up with the cash.
Unnamed sources, The Australian notes, said that the apartments
had been in the process of settling since October.
The Australian discloses that a report in September suggested
remaining apartments ranged in price from AU$850,000 to AU$12
million for the penthouse. KordaMentha's head of property,
Berrick Wilson, said receivers and managers would manage
settlements of the pre-sold apartments and that it would be
"business as usual," The Australian relates.
Located in Gold Coast, Australia, Oracle Broadbeach complex is one
of Australia's largest apartment tower projects. The 505-
apartment complex at Broadbeach was being developed by Niecon
subsidiary South Sky Investments. With apartments spanning two
towers, the complex also includes a five-star hotel, retail shops
and commercial office space.
SMART SERIES: Fitch Affirms Ratings on Five Classes of Notes
------------------------------------------------------------
Fitch Ratings has affirmed five classes of notes issued through
SMART Series 2009-1 Trust. The transaction is a securitization of
automotive and equipment lease receivables.
The rating actions are as listed below.
-- AUD370.0m Class A2 (ISIN AU3FN0009247) affirmed at 'AAAsf';
Outlook Stable; Loss Severity Rating 'LS1';
-- AUD40.0m Class B affirmed at 'AAsf'; Outlook Stable; Loss
Severity Rating 'LS2';
-- AUD29.0m Class C affirmed at 'Asf'; Outlook Stable; Loss
Severity Rating revised to 'LS3' from 'LS2';
-- AUD6.1m Class D affirmed at 'BBBsf'; Outlook Stable; Loss
Severity Rating 'LS4'; and
-- AUD4.6m Class E affirmed at 'BBsf'; Outlook Stable; Loss
Severity Rating 'LS4'.
"SMART Series 2009-1 Trust has had sufficient excess spread to
cover losses incurred to date. This is expected to continue, with
additional support being provided by liquidity reserves to cover
any income shortfalls," says Courtney Miller, Analyst in Fitch's
Structured Finance team.
Fitch has reviewed the performance of this transaction and modeled
forward the prospective outlook with weighted average base-case
net loss estimate for the remaining pool balances of 1.88%. The
affirmations reflect Fitch's view that the available credit
enhancement levels are able to support the current ratings of
these notes.
Arrears for this transaction have been consistently low, never
rising above 0.5%, and Fitch expects this performance to continue.
The 'sequential paydown test' was triggered during the August
collection period this year when the subordination of the Class A2
notes was greater than 19.9%. In future, principal collections
will be distributed on a pro-rata basis toward the Class A2, B, C,
D, E, F and seller notes.
SONRAY CAPITAL: Liquidators' Request to Access Funds Denied
-----------------------------------------------------------
Kate Kachor at Investor Daily reports that a Federal Court judge
has denied a request by the liquidators of Sonray Capital Markets
to take fees from funds in trust in the event the recoverable
assets of the company are insufficient to pay their costs.
Investor Daily relates that Justice Finkelstein earlier this month
declined a petition by Ferrier Hodgson representatives George
Georges and John Lindholm to have their costs and expenses paid
out of ex-Sonray clients' segregated accounts.
Citing court documents, Investor Daily discloses that the
liquidators currently hold more than AU$10.4 million in trust and
there is about another AU$28.3 million which is held by third
parties that may also be trust money when it is received.
"The liquidators seek orders that to the extent Sonray's assets
are insufficient to meet the liquidators' costs . . . they be
taken from those accounts on a pro rata basis according to the
assets of the relevant account," the documents said, according to
Investor Daily.
Investor Daily notes that Justice Finkelstein said such a request
could not be permitted as there are too many issues to contend
with, including whether or not all clients would want the
liquidator to use their money to pursue potential claims.
Justice Finkelstein said that as an interim solution, the
liquidators could use client funds as part of their fund recovery
activities and not for general expenses only if they repay the
amount, including all interest, Investor Daily adds.
According to Investor Daily, the liquidators also sought approval
to enter into a mediation funding deed and a mediation agreement.
Due to a number of mitigating factors, Investor Daily says, the
judge agreed to approve the mediation agreements, but only on the
condition that the non-use clause is removed or substantially
rewritten.
The liquidators have identified a number of potential claims
against Saxo Bank A/S, Interactive Brokers LLP, HLB Mann Judd and
their insurers, PricewaterhouseCoopers, and Sonray executives
Russell Johnson and Scott Murray, according to court documents
obtained by Investor Daily.
Investor Daily adds that court documents said that as a result of
significant mishandling of clients' funds by Sonray
representatives, there is a deficiency in funds of around
AU$46.7 million.
About Sonray Capital
Based in Melbourne, Australia, Sonray Capital Markets --
http://www.sonray.com.au/-- specializes in online and advisory
services in global equities, global futures, global Contracts For
Difference (CFDs) and Margin Foreign Exchange. The company has
operated since 2003 and employs about 70 people in offices in
Melbourne and on the Gold Coast.
In June 2010, Sonray Capital Markets Group appointed Ferrier
Hodgson partners George Georges and John Lindholm as voluntary
administrators. Companies affected included Sonray Capital
Markets Pty Ltd, Sonray Capital Markets (Qld) Pty Ltd, Sonray
Capital Markets Nominees Pty Ltd, and Sonray Advisory Pty Ltd.
Ferrier Hodgson said the companies have ceased trading and the
approximately 3,000 client accounts have been suspended while the
administrators carry out an investigation into the circumstances
of the collapse.
In October 2010, the creditors of Sonray Capital Markets voted to
wind up the failed business, allowing the administrators to start
a mediation process.
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C H I N A
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CHINA BAK: PKF Hong Kong Raises Going Concern Doubt
---------------------------------------------------
China BAK Battery, Inc., filed on December 14, 2010, its annual
report on Form 10-K for the fiscal year ended September 30, 2010.
PKF Hong Kong, a member of PKF International, expressed
substantial doubt about the Company's ability to continue as a
going concern. The independent auditors noted that the Company
has a working capital deficiency and accumulated deficit from net
losses incurred for each of the three years in the period ended
September 30, 2010.
The Company reported a net loss of US$32.78 million on
US$214.80 million of net revenues for fiscal 2010, compared with a
net loss of US$13.99 million on US$211.14 million of net revenues
for fiscal 2009.
The Company's balance sheet at September 30, 2010, showed
US$457.33 million in total assets, US$306.90 million in total
liabilities, and stockholders' equity of US$150.43 million.
A full-text copy of the Form 10-K is available for free at:
http://researcharchives.com/t/s?7110
Shenzhen, PRC-based China BAK Battery, Inc., is a global
manufacturer of lithium-based battery cells.
================
H O N G K O N G
================
ALCATEL NETWORKS: Lam and Boswell Step Down as Liquidators
----------------------------------------------------------
Rainier Hok Chung Lam and Anthony David Kenneth Boswell stepped
down as liquidators of Alcatel Networks (Asia) Limited on
November 23, 2010.
AMERICAN ACOUSTIC: Creditors to Get 90% Recovery on Claims
----------------------------------------------------------
American Acoustic Development Limited, which is in liquidation,
will declare dividend to its creditors on or after December 31,
2010.
The company will pay 90% for the first and final ordinary claims.
The company's liquidator is:
Shephen Liu Yiu Keung
18th Floor, Two International Finance
Centre, 8 Finace Street
Central, Hong Kong
ANGLO STARLITE: Creditors to Get 100% Recovery on Claims
--------------------------------------------------------
Anglo Starlite Insurance Company Limited, which is in liquidation,
will declare dividend to its creditors on December 21, 2010.
The company will pay 100% for ordinary claims.
The company's liquidator is:
Jan GW Blaauw
Room 901, 9/F
Bank of East Asia Harbour
View Centre
56 Gloucester Road
Wanchai, Hong Kong
ATHENA JEWELLERY: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Hong Kong entered an order on December 8, 2010,
to wind up the operations of Athena Jewellery Limited.
The acting official receiver is Lee Mei Yee May.
AUTRON MAURITIUS: Lee Mei Yee May Appointed as Liquidator
---------------------------------------------------------
Lee Mei Yee May on November 10, 2010, was appointed as liquidator
of Autron Mauritius Corporation.
The liquidator may be reached at:
Lee Mei Yee May
Level 17 Tower, 1 Admiralty
Centre 18 Harcourt Road
Hong Kong
BEAUTY YOGA: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on December 8, 2010,
to wind up the operations of Beauty Yoga Limited.
The acting official receiver is Lee Mei Yee May.
C.B.S INVESTMENT: Court to Hear Wind-Up Petition on December 22
---------------------------------------------------------------
A petition to wind up the operations of C.B.S Investment Limited
will be heard before the High Court of Hong Kong on December 22,
2010, at 9:30 a.m.
Madam Wan Chun filed the petition against the company.
The Petitioner's Solicitors are:
J. Chan, Yip, So & Partners
31 New Henry House
10 Ice House Street
Central, Hong Kong
CBM-SANWA INT'L: Court to Hear Wind-Up Petition on February 2
-------------------------------------------------------------
A petition to wind up the operations of CBM-Sanwa International
Limited will be heard before the High Court of Hong Kong on
February 2, 2011, at 9:30 a.m.
Hang Seng Bank Limited filed the petition against the company.
The Petitioner's Solicitors are:
Messrs. Li, Kwok & Law
Units 1204-06, Man Yee Building
68 Des Voeux Road
Central, Hong Kong
CHINA PROFIT: Creditors' Proofs of Debt Due December 31
-------------------------------------------------------
Creditors of China Profit Development Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by December 31, 2010, to be included in the company's
dividend distribution.
The company's liquidators are:
Jacky C W Muk
Edward S Middleton
8/F., Prince's Building
10 Chater Road
Central, Hong Kong
CHUNG SHUN: Court to Hear Wind-Up Petition on February 9
--------------------------------------------------------
A petition to wind up the operations of Chung Shun Printing
Company Limited will be heard before the High Court of Hong Kong
on February 9, 2011, at 9:30 a.m.
DBS Bank (Hong Kong) Limited filed the petition against the
company.
The Petitioner's Solicitors are:
Michael Cheuk, Wong & Kee
Rooms 407-410, 4th Floor
Tower Two, Lippo Centre
No. 89 Queensway
Hong Kong
CITP HOLDINGS: Kwong Oi Kwan Appointed as Liquidator
----------------------------------------------------
Kwong Oi Kwan on December 13, 2010, was appointed as liquidator of
CITP Holdings (Hong Kong) Limited.
The liquidator may be reached at:
Kwong Oi Kwan
Room 702, Manley commercial Building
367-375 Queen's Road
Central, Hong Kong
COMPASS VENTURES: Court to Hear Wind-Up Petition on December 29
---------------------------------------------------------------
A petition to wind up the operations of Compass Ventures Group
Limited will be heard before the High Court of Hong Kong on
December 29, 2010, at 9:30 a.m.
The Petitioner's Solicitors are:
DLA Piper Hong Kong
17th Floor, Edinburgh Tower
The Landmark
15 Queen's Road
Central, Hong Kong
CHRISTIAN LABOUR: Lau Wai Yung Alice Appointed as Liquidator
------------------------------------------------------------
Lau Wai Yung Alice on December 8, 2010, was appointed as
liquidator of Christian Labour Church Limited.
The liquidator may be reached at:
Lau Wai Yung Alice
Room 2402, 24/F
101 King's Road
Fortress Hill
Hong Kong
DECADE TECHNOLOGY: Court to Hear Wind-Up Petition on January 19
---------------------------------------------------------------
A petition to wind up the operations of Decade Technology Limited
will be heard before the High Court of Hong Kong on January 19,
2011, at 9:30 a.m.
Liu Liguang filed the petition against the company.
The Petitioner's Solicitors are:
Peter K.S. Chan & Co
20th Floor, Tung Hip Commercial Building
244-248 Des Voeux Road
Central, Hong Kong
DEGREEASIA LTD: Creditors and Contributories to Meet on Dec. 30
---------------------------------------------------------------
Creditors and Contributories of Degreeasia Ltd will hold Separate
meetings on December 30, 2010, at 4:00 p.m., and 4:30 p.m.,
respectively at Room 10, 16/F., Parklane Centre, 25 Kin Wing
Street, Tuen Mun, N.T. The meetings will be the first for the
company's Creditors and Contributories.
At the meeting, Pui Chiu Wing, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases
-----------------------------------------------------------------
The Hong Kong Monetary Authority (HKMA) announced December 10 that
investigation of over 99% of a total of 21,737 Lehman-Brothers-
related complaint cases received has been completed. These
include:
* 14,365 cases which have been resolved by a settlement
agreement reached under section 201 of the Securities and
Futures Ordinance;
* 2,532 cases which have been resolved through the enhanced
complaint handling procedures required by the settlement
agreement;
* 2,674 cases which were closed because insufficient prima
facie evidence of misconduct was found after assessment or
no sufficient grounds and evidence were found after
investigation;
* 1,546 cases (including minibond cases) which are under
disciplinary consideration after detailed investigation by
the HKMA, of which proposed disciplinary notices are being
prepared in respect of 762 such cases and proposed
disciplinary notices or decision notices have been issued
in respect of the other 784 cases; and
* 472 cases in respect of which investigation work has been
completed and are going through the decision process to
decide whether there are sufficient grounds for
disciplinary actions or whether the cases should be closed
because of insufficient evidence or lack of disciplinary
grounds.
* Investigation work is underway for the remaining 146
cases.
A table summarizing the progress of the disciplinary and
complaint-resolution work in respect of Lehman-Brothers-related
complaints is available at http://ResearchArchives.com/t/s?70c8
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
listed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
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I N D I A
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ANOPCHAND TILOKCHAND: CRISIL Places 'BB+' Rating on Cash Credit
---------------------------------------------------------------
CRISIL has assigned its 'BB+/Positive/P4+' ratings to Anopchand
Tilokchand Jewellers Pvt Ltd's bank facilities.
Facilities Ratings
---------- -------
INR50 Million Cash Credit BB+/Positive (Assigned)
INR140 Million Bank Guarantee P4+ (Assigned)
The ratings reflect ATJPL's small scale of operations, exposure to
intense competition in the gold jewellery business, and
susceptibility to volatility in gold prices. These rating
weaknesses are partially offset by ATJPL's promoter's extensive
experience in the gold jewellery business, and the company's
moderate financial risk profile marked by low gearing and moderate
debt protection metrics.
Outlook: Positive
CRISIL believes that AJTPL's market position will improve after
AJTPL successfully commences operations at its proposed new
showrooms. The company will continue to benefit from its
promoters' extensive experience in the gold jewellery business.
The rating may be upgraded if AJTPL reports more-than-expected
growth in its revenues, while maintaining its moderate financial
risk profile. Conversely, the outlook may be revised to 'Stable'
if the growth in AJTPL's revenues is less than expected, or if the
company undertakes any large debt-funded capital expenditure
(capex) programme, thereby weakening its capital structure.
About Anopchand Tilokchand
ATJPL was established in 1957 as a partnership firm to manufacture
and sell gold jewellery. In 2000, the firm was reconstituted as a
private limited company. 85 to 90 per cent of AJTPL's revenues
come from sale of gold jewellery, and the rest comes from gems and
diamond jewellery. The company has a 7000-square-foot (sq ft)
showroom in Raipur (Chhattisgarh). ATJPL is coming up with two
new showrooms, of which one will be on rent and the other owned,
in Raipur, with a total floor space of 18,000 sq ft. The rented
showroom is expected to commence commercial operations in March
2011. The total capex for the owned showroom is estimated to be
INR16 million, funded through internal accruals and capital
infusion by promoters. The owned showroom is expected to commence
operations by July 2011. AJTPL sells jewellery under the brand
ATJ. The day-to-day operations of the company are looked after by
its promoter-director Mr. Tilokchand Bardia.
ATJPL reported a profit after tax (PAT) of INR2.0 million on net
sales of INR485.9 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR8.4 million on net sales
of INR416.4 million for 2008-09. PAT has decreased in 2009-10
because of extraordinary expenses of INR8.6 million during the
year.
B D OVERSEAS: CRISIL Reaffirm 'B' Rating to INR32.8MM Term Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of B D Overseas part of
the MRM group, continue to reflect the MRM group's weak financial
risk profile driven by its working-capital-intensive operations,
the group's small scale of operations, and its exposure to risks
related to unfavorable changes in regulatory policies, volatility
in raw material prices, and dependence on the monsoons. These
weaknesses are partially offset by the experience of the group's
promoters in the rice industry, and healthy growth prospects.
Facilities Ratings
---------- -------
INR10.0 Million Cash Credit B/Stable (Reaffirmed)
INR32.8 Million Term Loan B/Stable (Reaffirmed)
INR50.0 Million Packing Credit P4 (Reaffirmed)
INR20.0 Million Foreign Bill Discounting P4 (Reaffirmed)
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of BDO and Mahavir Rice Mills, together
referred to as the MRM group. This is because the two entities
have common partners, are engaged in a similar line of business,
and have strong business linkages, including fungible cash flows.
Outlook: Stable
CRISIL believes that the MRM group will continue to benefit from
its established client relationships and the healthy prospects for
the rice industry, over the medium term. The outlook may be
revised to 'Positive' in case of a substantial and sustainable
improvement in the group's capital structure and scale of
operations. Conversely, the outlook may be revised to 'Negative '
if there is further deterioration in the group's capital structure
or pressure on its profitability.
Update
The MRM group registered a 24% year-on-year sales growth in 2009-
10 (refers to financial year, April 1 to March 31), mainly due to
increased trading operations in BDO. BDO achieved a turnover of
INR165 million in 2009-10, compared with only INR12 million in the
previous year. The group's operating margin, however, declined to
3% in 2009-10, from 4 per cent in 2008-09. Its profitability is
expected to improve slightly in 2010-11, as BDO commenced milling
and processing operations in October 2010.
The MRM group reported a profit after tax (PAT) of INR1.8 million
on net sales of INR1.02 billion for 2009-10 as against INR1.5
million and INR735 million, respectively for 2008-09.
About the Group
The MRM group is engaged in the milling, processing, and selling
of basmati rice in the export and domestic markets. It produces
only parboiled rice, which has high demand in the Middle East and
Iran. Mahavir was set up in 1984 as a partnership firm by Mr. Jai
Kumar Garg and his sons, Mr. Anil Kumar and Mr. Parveen Kumar. BDO
was set up by the Garg family with the intention of increasing the
installed capacity of the MRM group. The group has a total
capacity of 7 tonnes per hour (tph) for milling, and 20 tph for
sorting. This includes the 12-tph grading capacity of BDO, and
the milling plant of 5 tph, which started commercial production in
October 2010.
ISHWAR ELECTRIC: CRISIL Assigns 'BB' Rating to INR55MM Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Ishwar Electric Company.
Facilities Ratings
---------- -------
INR55.0 Million Cash Credit BB/Stable (Assigned)
INR35.0 Million Bank Guarantee P4+ (Assigned)
The ratings reflect customer and geographical concentration in
IEC's revenue profile, its large working capital requirements, and
exposure to risks related to small scale of operations in the
civil construction industry. These weaknesses are partially
offset by IEC's above-average financial risk profile, marked by
average gearing and healthy debt protection metrics, and the
extensive industry experience of its promoters.
Outlook: Stable
CRISIL believes that IEC will continue to benefit over the medium
term from its healthy order book position and established customer
relationships. The outlook may be revised to 'Positive' if IEC
diversifies its revenue profile while maintaining its operating
margin. Conversely, the outlook may be revised to 'Negative' if
IEC's profitability declines, or if it undertakes a larger-than-
expected debt-funded capital expenditure programme.
About Ishwar Electric
Set up as a partnership firm in 1995, IEC erects and commissions
33-kilovolt electric lines and also undertakes laying of
underground cables for minor irrigation works, mainly in
Karnataka. IEC is a Class-1 contractor for Karnataka Public Works
Department and Bangalore Development Authority. The firm is also a
Class-A contractor for the Water Resources Department (Kerala) and
Irrigation Department of Kerala. IEC derives around 60 per cent
of its revenues from the erection and commissioning of electric
lines and the remainder from laying underground cables.
IEC reported a profit after tax (PAT) of INR25 million on net
sales of INR312 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR12 million on net sales
of INR154 million for 2008-09.
KESHAV MILK: CRISIL Downgrades Rating on INR37.3MM Loan to 'D'
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Keshav
Milk Products Pvt Ltd to 'D/P5' from 'B-/Negative/P4'. The
downgrade reflects delays by Keshav Milk in servicing its term
loan obligations; the delays have been caused by weak liquidity.
Facilities Ratings
---------- -------
INR175.00 Million Cash Credit D (Downgraded from 'B-
/Negative')
INR37.30 Million Rupee Term Loan D (Downgraded from 'B-
/Negative')
INR5.00 Million Bank Guarantee P5 (Downgraded from P4)
Keshav Milk has a weak financial risk profile, a poor operating
margin because of its low value-added products, and a modest scale
of operations. However, the company derives benefits from its
established procurement network and relationships with large
customers.
About Keshav Milk
Set up in 2002 by Mr. Beant Rai, Keshav Milk manufactures milk and
milk products, such as pasteurised milk, skimmed milk powder
(SMP), concentrated skimmed milk, concentrated whole milk, whole
milk powder, ghee, and butter. The company's milk handling
capacity is 0.4 million litres per day; it has a processing unit
in Bareilly (Uttar Pradesh).
Keshav Milk reported a profit after tax (PAT) of INR9.2 million on
net sales of INR1846.5 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR6.5 million on net
sales of INR1377.6 million for 2008-09.
PRECISION MACHINE: CRISIL Assigns 'D' Rating to INR15M Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to the bank facilities of
Precision Machine and Auto Components Pvt Ltd. The ratings
reflect delays by PMAC in servicing its debt; the delays have been
because of PMAC's weak liquidity.
Facilities Ratings
---------- -------
INR67.50 Million Long-Term Loan D (Assigned)
INR15.00 Million Cash Credit D (Assigned)
INR15.00 Million Proposed Cash D (Assigned)
Credit
INR5.00 Million Bank Guarantee P5 (Assigned)
PMAC has a weak financial risk profile, marked by a small net
worth and weak debt protection metrics, and working-capital-
intensive operations. These rating weaknesses are partially
offset by the benefits that PMAC derives from its promoters'
extensive industry experience, and moderate operating efficiency.
About Precision Machine
Set up in 1978 as a partnership firm, Chennai-based PMAC
(formerly, Precision Machine and Auto Components Equipment) was
reconstituted as a private limited company with its current name
in 1990. PMAC is engaged in machining of moulds, precision
equipment, and industrial valves for the automobile and
construction industries. The company is owned by Mr. K
Balasubramanian and family.
PMAC reported a profit after tax (PAT) of INR 3 million on net
sales of INR 86 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR2 million on net sales
of INR 89 million for 2008-09.
RAMPRASAD TUBES: CRISIL Reaffirms 'B+' Rating on INR7.3MM LT Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Ramprasad Tubes and
Bars Pvt Ltd continue to reflect RTB's weak financial risk profile
marked by high gearing and weak debt protection measures, and
customer concentration in its revenue profile. These weaknesses
are partially offset by RTB's moderate business risk profile
marked by established relationships with customers and industry
experience of its management.
Facilities Ratings
---------- -------
INR100.00 Million Cash Credit B+/Stable (Reaffirmed)
INR7.30 Million Long-Term Loan B+/Stable (Reaffirmed)
INR5.00 Million Letter of Credit P4 (Reaffirmed)
Outlook: Stable
CRISIL believes that RTB will maintain its business risk profile
over the medium term driven by the experience of its management in
the steel and iron castings industry. The outlook may be revised
to 'Positive' if the company scales up its operations while
diversifying its customer base, and improves its financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
RTB contracts large debt to fund its capital expenditure (capex),
or if its revenues and accruals decline or relationships with
major customers deteriorate.
Update
RTB's revenues in 2009-10 (refers to financial year, April 1 to
March 31) were higher than CRISIL's expectation due to the upturn
in end-user markets (automobiles, engineering, and textiles)
towards the end of the year. The company's operating margin has
been marginally higher than expected because of better operating
efficiency following the replacement of old machinery. However,
its financial risk profile is expected to remain weak, marked by
high gearing and low net worth. RTB plans to increase its iron
castings capacity to 7000 tonnes per annum (tpa) from 5000 tpa,
and to set up a sand-reclamation plant, at a total cost of INR45
million, funded by term debt of INR33 million and the balance
through internal accruals. The company's gearing is expected to
remain high with further debt-funded capex planned over the medium
term. On account of the highly working-capital-intensive nature
of its business, RTB's liquidity remains weak, marked by high bank
limit utilisation, and debt repayment obligations of about INR10
million a year as against annual cash accruals of about INR20
million.
RTB reported a profit after tax (PAT) of INR8.7 million on net
sales of INR383 million for 2009-10, against a PAT of INR15.1
million on net sales of INR368.3 million for 2008-09.
About Ramprasad Tubes
Set up in 1997 by Mr. S Rajendran, Mr. S Selvaraj, Mr. J
Vidyaprakash, and Mr. N Ravipadmanabhan, RTB manufactures bright
bars and grey and spheroidal graphite iron castings. The
Coimbatore (Tamil Nadu)-based company has the capacity to produce
7000 tpa of bright bars and 5000 tpa of iron castings.
S. K. ENTERPRISES: CRISIL Rates INR90MM Cash Credit at 'BB'
-----------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to the cash credit
facility of S. K. Enterprises.
Facilities Ratings
---------- -------
INR90.0 Million Cash Credit BB/Stable (Assigned)
The rating reflects SK's small scale of operations, limited track
record of manufacturing operations and sustained relationships
with key customers, and highly working-capital-intensive
operations. These rating weaknesses are partially offset by SK's
moderate financial risk profile, marked by low gearing, owing to
low debt-funded capital expenditure (capex).
Outlook: Stable
CRISIL believes that SK's size of operations will remain small
over the medium term. The firm's revenues, though, are expected to
improve at a compound annual growth rate of 50 to 60 per cent over
the medium term owing to increased own capacities and
strengthening of relationships with key customers; this would also
enable SK to maintain its moderate financial risk profile. The
outlook may be revised to 'Positive' if there is an improvement in
SK's client diversity and sales realizations, and/or it achieves
better-than-expected profitability while maintaining its capital
structure. Conversely, the outlook may be revised to 'Negative' if
the firm's financial flexibility is constrained and/or it
undertakes a higher-than-expected debt-funded capex programme.
About S. K. Enterprises
SK was set up in 2008 as a proprietorship concern by Mr. Sahil
Batra. The firm manufactures finished leather at its leased plant
in Sonepat (Haryana), which has a capacity of 1 million square
feet per month. Mr. Batra is assisted in business by his father,
Mr. Rajiv Batra, who has about three decades of experience in the
leather and leather goods industry. The firm has direct
relationships with eight customers located in Delhi/National
Capital Region. These customers include Crew B.O.S Products Ltd,
Asian Diet Products Ltd, Liberty group, and Tryshoera India Pvt
Ltd.
SK reported an estimated profit after tax of INR13.1 million on
estimated net sales of INR236.2 million for 2009-10 (refers to
financial year, April 1 to March 31), against INR1.8 million and
INR31.0 million, respectively, for 2008-09.
SACHDEV FOOD: CRISIL Reaffirms 'BB' Rating on INR34.2MM Term Loan
-----------------------------------------------------------------
CRISIL's rating on the bank facilities of Sachdev Food Products
Pvt Ltd, part of the Sachdev group, continues to reflect the
group's small net worth, and exposure to risks related to adverse
changes in government regulations and the partnership nature of
one of the group companies. The impact of these weaknesses is
mitigated by the established market presence of the group, and
assured offtake by Food Corporation of India.
Facilities Ratings
---------- -------
INR20.5 Million Cash Credit BB/Stable (Reaffirmed)
INR34.2 Million Term Loan BB/Stable (Reaffirmed)
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of SFPPL and Sachdev Food Products (SFP),
together referred to as the Sachdev group. This is because the two
entities are under a common ownership and management, and derive
considerable business synergies from each other.
Outlook: Stable
CRISIL believes that the Sachdev group will continue to benefit
over the medium term from its established market position and its
promoters' industry experience. The outlook may be revised to
'Positive' if the group reports higher-than-expected revenue
growth on a sustained basis, or if there is fresh equity infusion
into the group entities, resulting in improvement in its financial
risk profile. Conversely, the outlook may be revised to 'Negative'
if there is steep decline in the Sachdev group's operating margin,
or if the promoters withdraw large funds from the entities,
leading to weakening in the financial risk profile of the group.
Update
The Sachdev group registered an operating income of INR534.4
million in 2009-10 (refers to financial year, April 1 to March 31)
compared to INR709.4 million in the previous year. The decline in
revenues was because of the higher proportion of custom milling in
2009-10 done by the group, where only the milling charges were
booked as revenues. In Chhattishgarh, higher bonus payment by the
state government to paddy farmers, in addition to the minimum
support price (MSP) of INR950 per quintal stipulated by the
central government, lead to higher procurement price for players
such as the Sachdev group, who had to then resort to custom
milling. The operating margin at 5.5 per cent were better than the
previous year's 4.5 per cent, primarily driven by inventory gains
because of rising prices, and slightly better margins offered by
custom milling activities.
For 2009-10, the Sachdev group reported a profit after tax (PAT)
of INR2.2 million on net sales of INR520.5 million, against a net
loss of INR8.8 million on net sales of INR695.1 million for
2008-09.
About the Group
Set up as a partnership firm in 1986 by Mr. Shamandas Sachdev,
Mr. Goverdhan Das, Mr. Ashok Kumar, Mr. Sushil Kumar, and Mr. Ajay
Kumar, SFP has a rice milling capacity of 12 tonnes per day (tpd)
at Raipur (Chhattishgarh). Incorporated in 2003, SFPPL commenced
commercial operations in May 2008, with a rice milling capacity of
12 tpd.
SACHDEV FOOD PRODUCTS: CRISIL Reaffirms 'BB' Ratings on Bank Debt
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Sachdev Food Products,
part of the Sachdev group, continue to reflect the group's small
net worth, and exposure to risks related to adverse changes in
government regulations and the partnership nature of one of the
group companies. The impact of these weaknesses is mitigated by
the established market presence of the group, and assured offtake
by Food Corporation of India.
Facilities Ratings
---------- -------
INR55 Million Cash Credit BB/Stable (Reaffirmed)
INR15 Million Bank Guarantee P4+ (Reaffirmed)
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of SFP and Sachdev Food Products Pvt Ltd
(SFPPL), together referred to as the Sachdev group. This is
because the two entities are under a common ownership and
management, and derive considerable business synergies from each
other.
Outlook: Stable
CRISIL believes that the Sachdev group will continue to benefit
over the medium term from its established market position and its
promoters' industry experience. The outlook may be revised to
'Positive' if the group reports higher-than-expected revenue
growth on a sustained basis, or if there is fresh equity infusion
into the group entities, resulting in improvement in its financial
risk profile. Conversely, the outlook may be revised to
'Negative' if there is steep decline in the Sachdev group's
operating margin, or if the promoters withdraw large funds from
the entities, leading to weakening in the financial risk profile
of the group.
Update
The Sachdev group registered an operating income of INR534.4
million in 2009-10 (refers to financial year, April 1 to March 31)
compared to INR709.4 million in the previous year. The decline in
revenues was because of the higher proportion of custom milling in
2009-10 done by the group, where only the milling charges were
booked as revenues. In Chhattishgarh, higher bonus payment by the
state government to paddy farmers, in addition to the minimum
support price (MSP) of INR950 per quintal stipulated by the
central government, lead to higher procurement price for players
such as the Sachdev group, who had to then resort to custom
milling. The operating margin at 5.5 per cent were better than
the previous year's 4.5 per cent, primarily driven by inventory
gains because of rising prices, and slightly better margins
offered by custom milling activities.
For 2009-10, the Sachdev group reported a profit after tax (PAT)
of INR2.2 million on net sales of INR520.5 million, against a net
loss of INR8.8 million on net sales of INR695.1 million for 2008-
09.
About the Group
Set up as a partnership firm in 1986 by Mr. Shamandas Sachdev,
Mr. Goverdhan Das, Mr. Ashok Kumar, Mr. Sushil Kumar, and Mr. Ajay
Kumar, SFP has a rice milling capacity of 12 tonnes per day (tpd)
at Raipur (Chhattishgarh). Incorporated in 2003, SFPPL commenced
commercial operations in May 2008, with a rice milling capacity of
12 tpd.
SR FOILS: CRISIL Upgrades Rating on INR500MM Cash Credit to 'BB+'
-----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
SR Foils and Tissue Ltd to 'BB+/Positive' from 'BB-/Stable', while
reaffirming the rating on the short-term facilities at 'P4+'.
Facilities Ratings
---------- -------
INR500 Million Cash Credit Facility BB+/Positive (Upgraded
from 'BB-/Stable')
INR400 Million Term Loan Facility BB+/Positive (Upgraded
from 'BB-/Stable')
INR430 Million Letter of Credit P4+ (Reaffirmed)
Facility
INR20 Million Bank Guarantee Facility P4+ (Reaffirmed)
The upgrade reflects CRISIL's belief that SRFTL will continue to
achieve healthy growth in revenues and profitability over the
medium term, supported by its strong market competitiveness and
brand image in the aluminium foil and tissue paper business. The
upgrade also factors in CRISIL's expectation of improvement in
SRFTL's financial flexibility, on the back of equity infusion of
INR305.5 million in 2009-10 (refers to financial year, April 1 to
March 31) and 2010-11. CRISIL believes that despite increasing
scale of operation resulting in higher working capital
requirements, SRFTL's financial flexibility will be supported by
enhancement in bank lines and additional equity infusion planned
in 2010-11. SRFTL is also likely to maintain its healthy gearing
and debt protection metrics owing to its increasing scale of
operations, and healthy profitability, in the absence of any
large, debt-funded capital expenditure plans.
SRFTL is susceptible to raw material price volatility, and has
large working capital requirements. These rating weaknesses are
partially offset by the company's strong business risk profile,
supported by its established market position in the branded
aluminium foil and tissue paper segment, and its promoters'
industry experience.
Outlook: Positive
CRISIL believes that SRFTL will maintain its business risk profile
over the medium term on the back of its established market
position, marked by strong brand presence in aluminium foil and
tissue paper segment. Its financial risk profile is likely to
improve on account of improvement in financial flexibility,
supported by equity infused in past two years, expected
enhancement in bank lines and additional equity infusion planned
in 2010-11. The rating may be upgraded if SRFTL achieves more-
than-expected growth in revenues while maintaining its financial
flexibility at a comfortable level over the medium term.
Conversely, the outlook may be revised to 'Stable' if SRFTL's
financial flexibility is constrained because of larger working
capital requirements, or if any debt-funded capital expenditure
programme adversely impacts its gearing and debt protection
metrics.
About SR Foils
Incorporated in 1993, SRFTL (formerly SR Foils Ltd) manufactures
aluminium foils (brand Homefoil), cling film rolls (Clean Wrap),
and tissue paper products (Mistique). The company has two
manufacturing units, one in Bhiwadi and another in Sotanala (both
in Rajasthan).
For 2009-10, SRFTL reported a profit after tax (PAT) of INR161.60
million on net sales of INR2.28 billion, against a PAT of INR96.29
million on net sales of INR1.43 billion for 2008-09.
SUNRISE TIMPLY: CRISIL Upgrades Rating on Cash Credit to 'BB-'
--------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Sunrise
Timply Co Pvt Ltd to 'BB-/Stable/P4+' from 'B+/Stable/P4'.
Facilities Ratings
---------- -------
INR25 Million Cash Credit Limits BB-/Stable (Upgraded
from B+/Stable)
INR100 Million Letter of Credit P4+ (Upgraded from P4)
The upgrade reflects improvement in Sunrise's financial risk
profile, supported by equity infusion of INR62.5 million in 2009-
10 (refers to financial year, April 1 to March 31), reduced
gearing, and improved liquidity. The company's revenues increased
to INR351 million in 2009-10, from 160 million in 2008-09. Sunrise
has already generated revenues of around INR220 million from April
2010 to September 2010.
The ratings reflect Sunrise's large working capital requirements
and low profitability, resulting in weak financial risk profile,
and the susceptibility of its margins to intense competition in
the timber trading business. These weaknesses are partially offset
by the longstanding industry experience of Sunrise's promoters.
Outlook: Stable
CRISIL believes that Sunrise will continue to benefit from its
promoters' industry experience. The outlook may be revised to
'Positive' if better profitability and improved working capital
management lead to more-than-expected cash flow from operations
and larger accruals. Conversely, the outlook may be revised to
'Negative' if the company undertakes a large, debt-funded capital
expenditure programme or acquisition, leading to deterioration in
its financial risk profile.
About Sunrise Timply
Sunrise, a Kolkata-based company, was promoted by Mr. Gopal Bagla
and his family in 2000. The Bagla family has been trading in
timber logs for the past five decades, under two proprietorship
firms: Sunrise Timber Company and R K Timber Company. Sunrise also
trades in timber. It imports Malaysian and West African timber,
which it sells to sawmill owners in West Bengal. The promoters
plan to set up a plywood manufacturing unit over the medium term.
The capacity, timeline, and investment for the same are, however,
yet to be finalized.
Sunrise reported a profit after tax (PAT) of INR1.4 million on
operating income of INR350.8 million for 2009-10, against a PAT
of INR0.7 million on operating income of INR159.5 million for
2008-09.
TRIMURTI CONCAST: CRISIL Rates INR100 Million Cash Credit at 'C'
----------------------------------------------------------------
CRISIL has assigned its 'C' rating to the cash credit facility of
Trimurti Concast Pvt Ltd.
Facilities Rating
---------- ------
INR100.0 Million Cash Credit Limit C (Assigned)
The rating reflects delays by Trimurti in servicing its debt on
instruments not rated by CRISIL; the delays have been caused by
Trimurti's short term cash flow mismatches.
The rating also reflects Trimurti's small scale of operations in
the competitive secondary steel industry, and its moderate
financial risk profile, marked by moderate gearing and debt
protection metrics. These weaknesses are partially offset by the
extensive industry experience of Trimurti's promoters.
Trimurti (formerly Prem Castings Pvt Ltd) was incorporated in 1989
by Mr. Surender Kumar Singhal. Mr Ashok Sharma acquired the
company in November 2005. It manufactures thermo-mechanically-
treated bars at its facility in Mujaffarnagar (Uttar Pradesh). It
has an installed capacity of around 35,000 tonnes per annum (tpa).
In 2010, the company started manufacturing ingots, which is mainly
used for captive consumption
Trimurti is estimated to reported a profit after tax (PAT) of
INR2.2 million on net sales of INR868.7 million for 2009-10
(refers to financial year, April 1 to March 31), against a PAT of
INR5 million on net sales of INR891.3 million for 2008-09.
UMA ISPAT: CRISIL Reaffirms 'BB+' Rating on INR50MM Cash Credit
---------------------------------------------------------------
CRISIL's rating on the bank facility of Uma Ispat Ltd continues to
reflect Uma Ispat's constrained financial risk profile, marked by
a small net worth, and exposure to risks relating to cyclical
nature of, and intense competition in, the fragmented steel
industry. These rating weaknesses are mitigated by the benefits
that the company derives from its established relationships with
its sole supplier, Steel Authority of India Ltd (SAIL) and its
management's extensive experience in the steel trading business.
Facilities Ratings
---------- -------
INR50 Million Cash Credit Limit BB+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Uma Ispat will maintain its stable business
risk profile over the medium term on the back of the extensive
experience of its promoters and established relations with its
supplier and customers. The outlook may be revised to 'Positive'
if the company reports significantly higher-than-expected revenues
and improved debt protection metrics. Conversely, the outlook may
be revised to 'Negative' in case Uma Ispat posts substantially
lower-than-expected revenues, or there is significant
deterioration in the company's debt protection metrics or working
capital cycle.
Update
Uma Ispat posted net sales of INR970 million during 2009-10 which
is 21 per cent higher than the previous year. Despite a
significant jump in net sales, Uma Ispat's financial risk profile
continues to be constrained by a small net worth of INR57.3
million as on March 31, 2010 and a low operating margin. The
company has moderate liquidity with high bank limit utilization at
an average of above 80 per cent during the 12 months ended August
2010, and moderate net cash accruals of INR4 million during 2009-
10 (refers to financial year, April 1 to March 31). Its cash
credit limit has been recently increased to INR90 million from
INR50 million to meet its increasing working capital requirement.
Uma Ispat intends to set up a decoiling plant, which is expected
to cost around INR20 million to INR30 million, over the medium
term. The funding pattern for the same is yet to be finalized.
Once operational, the decoiling plant will reduce the company's
dependence on outside vendors and increase its operating
efficiency.
Uma Ispat reported a provisional profit after tax (PAT) of INR3.6
million on net sales of INR969.4 million for 2009-10, as against a
PAT of INR3.5 million on net sales of INR802 million for 2008-09.
About Uma Ispat
Uma Ispat, based in Bokaro (Jharkhand), was promoted by Mr. Vanit
Kumar Seth and family in 1996. The company trades in hot-rolled
(HR) steel coils, sheets, and plates. It has a memorandum of
understanding with SAIL, renewable every year, for procurement of
HR steel products. The company is currently managed by Mr Vanit
Kumar Seth who is the managing director.
* Fitch Says Rising Cotton Prices Could Hurt Indian Textile Makers
------------------------------------------------------------------
Fitch Ratings has commented that the continued sharp rise in
cotton prices globally is likely to hurt operating margins of
Indian textile manufacturers, as prices percolate down the value
chain, and are ultimately reflected in high prices of textile and
clothing products.
Fitch believes that cotton prices are expected to remain firm in
the current cotton season of October 2010 to September 2011, well
above the previous season, due to the huge international demand-
supply gap, and untimely rains in major cotton producing states in
India. The picture should be clearer after anticipated arrivals
into the domestic market over December 2010-January 2011, the peak
period for such arrivals.
The global demand-supply imbalance is driven mainly by China's
increasing domestic cotton consumption, flood-led weak harvests in
China and Pakistan, and with India capping its cotton exports to a
maximum 5.5m bales to be shipped by mid-December 2010 in order to
make cotton available domestically. However, the capping has not
helped the domestic textile sector much in the backdrop of soaring
international cotton prices, which has encouraged speculation by
traders and creation of artificial scarcity in the domestic
market. The Indian government is expected to take a call shortly
on allowing further exports of cotton.
Cotton prices have risen unusually since August 2010, and as at
end-November 2010, prices were hovering at INR108-INR118 per kg
(up 60%-70% yoy) across common varieties of cotton. To soften
cotton and cotton yarn prices, and ensure adequate availability of
yarn in the domestic market, the Union Government has capped
cotton yarn exports for the current cotton year to a maximum of
720 million kilogram to be shipped by mid-January 2011. This
initiative is intended to aid the garment industry by reducing
input prices. However, yarn spinners will suffer as their selling
prices are likely to fall. Yarn exporters also fear losing export
customers to their global counterparts.
While cotton prices have increased 30%-35% across common varieties
over August 2010-October 2010, yarn prices have increased in the
same period by only 15%-20%; this indicates a partial pass-on of
price hikes, although the input price hikes may be passed on fully
with some time lag. Fabric prices have also gone up, although
end-product prices have not increased in tandem. Should cotton
prices continue to remain firm, garmenters are likely to also hike
end-product prices. However, in the already committed fixed-price
contracts, garment exporters might have to suffer on account of
rising input prices as well as the appreciating Rupee.
In light of the sharp rise of cotton prices, smaller cotton
spinning mills face the threat of shutting-down if they are unable
to buy and stock cotton in the ongoing cotton-buying period of
October 2010-February 2011). Also, Fitch expects profitability
pressure across the value chain given the trickle-down effect of
mounting input prices. However this could be mitigated by a
diversification into synthetic and other natural fibres.
In contrast, synthetic textiles players have benefited, from the
rise in cotton prices, especially in the mass clothing segment.
Raw material cost as a percentage to sales varies between 55%-65%
for cotton yarn spinners, hence even a 10% increase in the raw
material prices (that cannot be passed on) can reduce the
spinner's operating margin by 500 bps (basis points) to 600 bps.
Fitch factors in the inherent risk of volatile input costs while
rating spinners, however a variation beyond anticipation could
lead to liquidity pressures and might warrant a review of the
ratings. Sharmanji Yarns Private Limited ('BB(ind)'/Stable) is
partly insulated from such volatility by its presence in polyester
blended yarn. Smaller spinners such as Mountain Spinning Mills
Ltd ('BB(ind)'/Stable) and Tuticorin Spinning Mills Ltd
('BB(ind)'/Stable) which are purely cotton yarn spinners are
exposed to higher risk.
=================
I N D O N E S I A
=================
GARUDA INDONESIA: Asked to Improve Performance Before IPO
---------------------------------------------------------
Antara News reports that the House of Representatives (DPR) has
asked PT Garuda Indonesia to improve its performance so that it
would get a good price when offering its stock to the public in
February next year.
According to Antara, House Speaker Marzuki Alie said at the
closing of the DPR's second session period on Friday that DPR paid
close attention to the state-owned airline company's plan to
conduct an IPO.
Antara relates that Marzuki said DPR suggested that the company's
management first improved its performance before conducting the
IPO so that the public would get a positive, proper and
transparent picture to avoid a polemic like that after the IPO of
PT Krakatau Steel.
Antara says PT Garuda is expected to be listed at the Indonesia
Stock Exchange on February 11, 2011, by selling maximally 30% of
its shares including 10% shares belonging to Bank Mandiri. Last
year, Garuda swapped its debt to Bank Mandiri with shares.
Garuda's president director Emirsyah Satar hoped Garuda could
raise between US$300 million and US$400 million from the IPO.
Garuda's underwriters include PT Danareksa Sekuritas, PT Bahana
Securities and PT Mandiri Sekuritas.
Garuda, which received IDR1 trillion from the government in 2006
to help it keep flying, has been in debt restructuring talks since
2005. The Troubled Company Reporter-Asia Pacific reported on
Aug. 11, 2010, that the carrier completed the restructuring of
US$76 million of debts to state oil and gas company PT Pertamina.
Garuda had also completed a debt restructuring negotiation with
its biggest creditor, the state lender Bank Mandiri. In January,
Bloomberg News said, the airline won bondholder permission to
restructure US$122 million of floating-rate notes.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves 10 other domestic routes. Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
GARUDA INDONESIA: Inks Debt Restructuring Deal With Lenders
-----------------------------------------------------------
The Financial Times reports that Garuda Indonesia has signed a
deal with dozens of lenders to restructure nearly US$500 million
in debt, clearing the way for a long-delayed initial public
offering to raise US$400 million.
The FT says that the agreement, inked on Friday in London after
five years of tortuous negotiations with the European Credit
Agency and more than 20 commercial creditors, covers debts dating
back 15 years.
Bloomberg News relates that Chief Executive Officer Emirsyah Satar
said that European export credit agencies including Compagnie
Francaise d' Assurance pour le Commerce Exterieur and Germany's
Euler Hermes, owed about US$288 million in unpaid loans, agreed to
extend maturities to mid-2016 and be repaid in installments of
between US$45 million to US$60 million a year.
According to the FT, the deal puts Garuda on track to float up to
40% its equity in February as part of expansion plans designed to
capitalize on Indonesia's fast-growing economy and rapidly
expanding commercial aviation market.
The FT discloses that by September, Garuda had paid down
US$391 million, or 45% of US$868 million worth of loans dating
back to 2005. It has now committed to paying off an outstanding
US$477 million, the FT notes.
Garuda, which received IDR1 trillion from the government in 2006
to help it keep flying, has been in debt restructuring talks since
2005. The Troubled Company Reporter-Asia Pacific reported on
Aug. 11, 2010, that the carrier completed the restructuring of
US$76 million of debts to state oil and gas company PT Pertamina.
Garuda had also completed a debt restructuring negotiation with
its biggest creditor, the state lender Bank Mandiri. In January,
Bloomberg News said, the airline won bondholder permission to
restructure US$122 million of floating-rate notes.
About Garuda Indonesia
Headquartered in Jakarta, Indonesia, government-owned airline PT
Garuda Indonesia -- http://www.garuda-indonesia.com/--
currently has a fleet of about 77 aircraft offering service to
some 27 domestic and 33 international destinations. Under its
Citilink brand, it serves 10 other domestic routes. Garuda also
ships about 200,000 tons of cargo a month and operates a
computerized tracking system.
=========
J A P A N
=========
DAIWA SECURITIES: Fitch Keeps All Ratings; Gives Negative Outlook
-----------------------------------------------------------------
Fitch Ratings has affirmed all the ratings of Daiwa Securities
Group, Inc. ('BBB+'/Negative) and its major broker-dealer
subsidiary, Daiwa Securities Capital Markets Co., Ltd. (Daiwa
Capital Markets; 'A-'/Negative). The Outlook on DSGI's and Daiwa
Capital Markets' Long-term Issuer Default Ratings is Negative. A
complete list of rating actions can be found at the end of this
comment.
This rating action follows Fitch's periodic review of major
Japanese investment banking groups' performances and prospects.
The agency remains cautious on the outlook for the Japanese
investment banking industry for the second half of the financial
year ending March 2011 (H2FYE11), amid an expected economic
slowdown and uncertain financial markets environment, as well as
after a lackluster industry-wide operating performance in H1FYE11.
Fitch expects profitability of Japan's investment banks to remain
under pressure in the near term, pushed down also by the costs of
overseas expansion and the time lag before these overseas
operations begin generating adequate returns.
DSGI's and Daiwa Capital Markets' ratings were affirmed on account
of their adequate capitalization and liquidity, a conservative
business strategy, and their weak profitability. DSGI's market
position as the second largest investment banking group in Japan
and the strong franchises of its subsidiaries in retail and
wholesale securities brokerage, also offer support to DSGI's and
Daiwa Capital Markets' ratings. Daiwa Capital Markets' move to
end its wholesale investment banking joint-venture with Sumitomo
Mitsui Financial Group, Inc. ('A'/Stable) at end-December 2009 is
reflected in its Individual rating, which is lower than that
typically associated with an 'A-' rated bank. Fitch continues to
monitor Daiwa Capital Markets' progress in re-positioning itself
in the domestic market, simultaneously with its overseas
expansion. Daiwa Capital Market's Individual rating could be
upgraded if the agency considers its overall market position to be
strengthening.
DSGI is expanding its overseas operations gradually and
selectively through Daiwa Capital Markets, by focusing on the
growing markets in Asia. Fitch believes this move may help to
diversify DSGI's and Daiwa Capital Markets' revenues in the medium
term and enhance its product capability and market position,
although this erodes the group's near-term profitability further
given the current weak market environment.
Fitch notes that Daiwa Capital Markets has expanded its client
relationships to other Japanese mega-banking groups and
corporates, and the agency will continue to monitor the progress
of its positioning in the domestic market. The Negative Outlook
on DSGI's and Daiwa Capital Markets' LT IDRs reflects the on-going
but still uncertain re-adjustment of the group's wholesale
investment banking position in the domestic market. DSGI's and
Daiwa Capital Markets' ratings may be downgraded if Fitch
considers their wholesale investment banking franchise to be
weakening, or if there are signs that the group's capitalization
or liquidity will weaken.
DSGI has so far followed conservative financing strategies and is
reasonably well-capitalized with high capital quality. The group
manages its liquidity conservatively and maintains a large holding
of liquid assets, while its major domestic broker-dealer
subsidiaries, Daiwa Capital Markets and Daiwa Securities Co., Ltd
also have direct access to Bank of Japan's financing facilities.
Fitch will evaluate the capital adequacy of the group under the
changing regulatory landscape, as the forthcoming revisions to the
Basel capital accord and restrictions on certain business lines
for banks in some countries could have a mix of positive and
negative effects on its business.
DSGI's operating performance was weak in H1FYE11. The company had
a net loss of JPY5.4bn, due mainly to a net loss of JPY32bn at
Daiwa Capital Markets. Daiwa Capital Markets is a strategically
important subsidiary for DSGI, and it accounted for around 90% of
DSGI's consolidated assets at end-September 2010. Daiwa Capital
Markets handles most of the group's wholesale business and is at
the forefront of the group's global operations and expansion. The
consolidated net loss of DSGI was however less than 1% of its
total equity at end-March 2010. The weak operating performance of
DSGI reflected a depressed domestic stock market, which led to
lower brokerage and equity trading gains, and a moderated equity
underwriting business. This occurred amid an increased cost base
from Daiwa Capital Markets' overseas expansion and DSGI's
preparations for the launch of an internet bank in 2011.
Full list of rating actions for DSGI:
-- Long-term foreign currency IDR affirmed at 'BBB+'; Outlook
Negative;
-- Long-term local currency IDR affirmed at 'BBB+'; Outlook
Negative;
-- Short-term foreign currency IDR affirmed at 'F2';
-- Short-term local currency IDR affirmed at 'F2';
-- Individual rating affirmed at 'C';
-- Support rating affirmed at '5';
-- Support Rating Floor affirmed at 'NF'; and
-- Senior unsecured notes affirmed at 'BBB+'.
Full list of rating actions for Daiwa Capital Markets:
-- Long-term foreign currency IDR affirmed at 'A-'; Outlook
Negative;
-- Long-term local currency IDR affirmed at 'A-'; Outlook
Negative;
-- Short-term foreign currency IDR affirmed at 'F2';
-- Short-term local currency IDR affirmed at 'F2';
-- Individual rating affirmed at 'C';
-- Support rating affirmed at '4';
-- Support Rating Floor affirmed at 'B'; and
-- Senior unsecured notes affirmed at 'A-'.
NOMURA HOLDINGS: Fitch Affirms All Ratings; Gives Positive Outlook
------------------------------------------------------------------
Fitch Ratings has affirmed all ratings of Nomura Holdings, Inc.
('BBB'/Positive) and its flagship domestic broker-dealer
subsidiary Nomura Securities Co., Ltd. ('BBB+'/Positive). The
Outlook on NHI's and Nomura Securities' Long-term Issuer Default
Ratings is Positive. A complete list of rating actions can be
found at the end of this comment.
These rating actions follow Fitch's periodic review of major
Japanese investment banking groups' performances and prospects.
The agency remains cautious on the outlook for the Japanese
investment banking industry for the second half of the financial
year ending March 2011 (H2FYE11), amid an expected economic
slowdown and an uncertain financial markets environment, as well
as after a lackluster industry-wide operating performance in
H1FYE11. Fitch expects profitability of Japan's investment banks
to remain under pressure in the near term, pushed down also by the
costs of overseas expansion and the time lag before these overseas
operations begin generating adequate returns.
The affirmations of NHI's and Nomura Securities' ratings reflect
their adequate capitalization and liquidity, NHI's expanding
global market presence, NHI's weak profitability and the strong
franchise of Nomura Securities in Japan. The profitability of NHI
remains weak, partly from the costs of continued overseas
expansion, but Fitch notes that NHI has remained profitable for
six straight quarters now. Fitch views positively NHI's plans to
reduce illiquid assets, such as investment securities and unrated
securitized products, with the aim to lower its capital charges
under the proposed Basel III rules.
The Positive Outlook reflects Fitch's view that NHI's expanding
global presence is starting to contribute to NHI's market position
and to its franchise, despite the low profitability in H1FYE11.
Building upon its acquisition of the bulk of Lehman Brothers'
employees and platforms in Asia and Europe in September 2008, the
re-building of its US operations and organic growth in other
markets, NHI is reducing its economic exposure to Japan. Fitch
views favorably the potential diversity in revenue in the medium-
term from NHI's expanding overseas expansion, and the agency also
expects NHI to implement appropriate risk management policies.
Fitch will evaluate the capital adequacy of NHI under the changing
global regulatory requirements. While the agency considers it too
early to comment on NHI's plans to maintain a common Tier 1 ratio
of 12% under Basel III in March 2013, the groups' plans to reduce
illiquid assets is, nevertheless, viewed favorably by the agency.
Nomura has so far followed conservative financing strategies and
is reasonably well-capitalized with high capital quality. The
group manages its liquidity conservatively and maintains a large
holding of liquid assets, while Nomura Securities, as a major
broker-dealer, also has direct access to Bank of Japan's financing
facilities.
The operating performance of NHI was lackluster in H1FYE11, with
profitability considerably weakened yoy. A significant drop in
trading gains from an overall weak market environment that began
with the sovereign credit issues in parts of Europe in Q1FYE11
(though these recovered strongly in Q2FYE11) affected the
wholesale business lines severely, although retail and asset
management businesses remained stable. Despite the drop in
compensation and benefits expenses and an overall drop in non-
interest expenses, NHI's bottom-line profitability fell
significantly. Nomura Securities remained the profit driver in
terms of contribution to group profit, with a net profit of
JPY32bn in H1FYE11 (down 27% yoy), while the consolidated net
profit of NHI was JPY3.4bn (down 91% yoy).
Full list of rating actions for NHI:
-- Long-term foreign currency IDR affirmed at 'BBB'; Outlook
Positive;
-- Long-term local currency IDR affirmed at 'BBB'; Outlook
Positive;
-- Short-term foreign currency IDR affirmed at 'F2';
-- Short-term local currency IDR affirmed at 'F2';
-- Individual rating affirmed at 'C';
-- Support rating affirmed at '5'; and
-- Support Rating Floor affirmed at 'NF'
Full list of rating actions for Nomura Securities:
-- Long-term foreign currency IDR affirmed at 'BBB+'; Outlook
Positive;
-- Long-term local currency IDR affirmed at 'BBB+'; Outlook
Positive;
-- Short-term foreign currency IDR affirmed at 'F2';
-- Short-term local currency IDR affirmed at 'F2';
-- Individual rating affirmed at 'C';
-- Support rating affirmed at '4'; and
-- Support Rating Floor affirmed at 'B'
UDMAC-J1 TRUST: Moody's Downgrades Ratings on Various Certs.
------------------------------------------------------------
Moody's Japan K.K has downgraded its rating on the Class D through
Class G trust certificates issued by UDMAC-J1 Trust.
The complete rating actions follow.
-- Class D, Downgraded to B2 (sf) from Ba3 (sf); previously on
November 25, 2010 Ba3 (sf) Placed Under Review for Possible
Downgrade
-- Class E, Downgraded to Caa1 (sf) from B1 (sf); previously on
November 25, 2010 B1 (sf) Placed Under Review for Possible
Downgrade
-- Class F, Downgraded to Caa2 (sf) from B2 (sf); previously on
November 25, 2010 B2 (sf) Placed Under Review for Possible
Downgrade
-- Class G, Downgraded to Caa3 (sf) from B3 (sf); previously on
November 25, 2010 B3 (sf) Placed Under Review for Possible
Downgrade
-- Deal Name: UDMAC-J1 Trust
-- Class: Class A through G
-- Issue Amount (initial): JPY 42.34 billion
-- Dividend: Floating
-- Issue Date (initial): September 28, 2007
-- Final Maturity Date: June, 2013
-- Underlying Asset (initial): Seven non-recourse loans backed
by property trust certificates and cash
-- Originator/Entrustor: UBS Securities Japan Ltd.
-- Arranger: UBS Securities Japan Ltd.
UDMAC-J1 Trust, effected in September 2007, represents the
securitization of seven non-recourse loans.
The Originator entrusted the loans to the Asset Trustee and
received the Class A through G trust certificates, which were sold
to investors. The trust certificates are rated by Moody's.
In this transaction, any principal payments are applied
sequentially starting with the most senior class of the trust
certificates. Losses incurred by any defaulted loans are
allocated in reverse sequential order starting with the most
subordinate class of the trust certificates.
Six loans were placed under special servicing in 2009 and
recovered in full in September 2010. The transaction is currently
secured by one loan (comprising 60.5% of the initial balance),
which is backed by two office buildings and one residential
property located in central Tokyo. The maturity of the loan was
extended once to the end of September 2010 and was again extended,
for another three months through the end of December 2010.
Rating Rationale
The current rating action reflects these factors:
(1) Moody's is concerned about the recovery from the properties
when they are sold for the remaining loan, and has therefore
re-assessed its recovery stress assumptions, lowering them
approximately 35% from its initial assumptions.
(2) In light of Moody's re-assessment, losses on the remaining
loan balance of the loan are highly likely.
Moody's did not receive or take into account any third party due
diligence reports on the underlying assets or financial
instruments related to the monitoring of this transaction in the
past six months.
=========
K O R E A
=========
HYUNDAI ENG'G: Creditors Seek to Cancel Hyundai Group Sale Deal
---------------------------------------------------------------
Yonhap News reports that creditors of Hyundai Engineering &
Construction Co. on Friday sought to cancel a preliminary deal
with Hyundai Group to sell a major stake in the biggest local
builder, citing the group's feeble funding ability.
Yonhap relates that Hyundai Group signed the deal with main
creditor Korea Exchange Bank to buy a 34.88 percent stake in
Hyundai Engineering on Nov. 29 after outbidding rival suitor
Hyundai Motor by offering to pay KRW5.5 trillion (US$4.8 billion).
According to Yonhap, the creditors' committee for the stock sale
led by KEB, Woori Bank and state-run Korea Finance Corp. convened
a voting session and proposed a plan to nullify the deal. The
final decision from the total eight creditors is expected on
Dec. 22, 2010.
Yonhap notes that Hyundai Group faced mounting suspicion after
failing to provide enough evidence to prove the source of its
KRW1.2 trillion deposits in France-based Bank Natixis, held by a
French unit of its flagship affiliate Hyundai Merchant Marine Co.
Hyundai claims the deposits are loans from the French bank and has
not pledged any collateral for the lending. Creditors suspect that
the group secured the money through other risky arrangements,
Yonhap says.
Hyundai Group had submitted documents to prove its arguments on
two occasions, but creditors dismissed them as insufficient for
clarification, Yonhap states.
According to Yonhap, the group denounced creditors' recent move,
saying in a response statement, "They should immediately revoke
the violence of laws, the (agreed) memorandum of understanding and
bidding rules."
Creditors plan to review the legality and feasibility of
transferring the stake to Hyundai Motor or start the sale process
over altogether, Yonhap added.
About Hyundai Engineering
Headquartered in Seoul, South Korea, Hyundai Engineering &
Construction Company Limited -- http://www.hdec.co.kr/-- is
involved in civil engineering, housing development projects and
other contracted construction works in South Korea and
internationally. Its operations fall into these key areas:
building, civil works, plant and power works. Within the
building and housing section, HDEC is involved in construction
and architecture, and has been involved in residential, commercial
and institutional building projects.
Hyundai Engineering has been under creditors' control. In
August 2001, Hyundai Group was split into three -- Hyundai Motor,
Hyundai Heavy Industries and one which retained the name, Hyundai
Group -- while the remaining businesses were taken over by
creditors.
NATIONAL AGRICULTURAL: Moody's Retains Negative Outlook on Ratings
------------------------------------------------------------------
Korea's National Assembly has once again failed to pass a revision
of the Agricultural Cooperative Law -- the charter for National
Agricultural Cooperative Federation (A1 negative; D+/Ba1 negative)
-- as the majority and minority political parties have disagreed
on the details.
The disagreement focuses on issues such as the tax treatment
pertaining to the reorganization of NACF into several legal
entities, and the lack of clarity in the legal terminology
stipulating the government's financial support.
The reorganization, which will call further attention to NACF's
capital deficiency, will require an additional government capital
injection of several trillion won.
When calculating regulatory capital ratios, NACF's banking unit
includes almost all of its shareholders' equity as its unit's own
capital.
However, the revised law would not allow this, since capital held
in non-banking units after the reorganization would not count
towards the restructured bank's regulatory capital base. This
would make a capital injection essential if NACF is indeed
reorganized.
Moody's views this failure to pass the revision as credit-negative
to NACF, though it will not have an immediate negative impact on
its credit ratings.
Moody's is concerned that the delay in passing the law will
continue to direct NACF's management's focus on the revision
rather than on enhancement of the entity's core businesses. The
drive to implement its medium- to long-term business strategies --
partly built on the assumption of the revision -- could also be
weakened.
The revision will provide the legal framework to break up the NACF
into several legal entities; it will also enhance the
competitiveness and transparency of its individual business lines.
NACF has a complex structure and a special legal status under the
Agricultural Cooperative Law. It has had many conflicts with
major competitors, particularly in insurance and banking, as the
law has hindered fair competition for all by allowing NACF some
competitive advantages and also sometimes barring its business
expansion.
Despite some differences in their opinions on the details, the
government and NACF have been making concerted efforts to have the
law revised for a number of years now.
The restructuring of NACF -- a consequence of the revised law --
has been one of the main public policy agendas for Korea's current
president, as he believes it may enhance the country's
agricultural competitiveness and reduce the possibility of
corruption both in NACF and among its member cooperatives.
The country's previous presidents had also tried to restructure
the NACF, but had failed because of the significant complexity and
political sensitivity of the issues, which was due partly to the
farmers' voting power.
NACF now wants to revise the law sooner (in contrast to its
previous negative stance), because it wants to clear away the
legal uncertainty and focus on enhancing its franchise amid the
rapidly changing competitive dynamics in the financial services
industry.
In fact, Moody's sees signs that NACF's market position is waning.
Its share of customer deposits declined to about 13% in September
2010 from 15% in 2006, and its ranking by asset size also declined
to the fourth-largest in 2010, from the second-largest in 2001 due
to the consolidation of competitors in the banking sector. NACF's
lack of capital has impeded it from acquiring other entities in
the banking industry.
The government and NACF will continue to push for the revision,
but the likelihood of its being passed will decline over the near
term (although there is still a chance in February 2011), given
that the revision may become a political issue during the next
presidential election, which will take place around end-2012.
Moody's maintains its negative outlook on NACF's credit ratings
due to the ongoing pressure on asset quality and earnings --
issues separate from the reorganization.
NACF's ratings are:
-- Bank Financial Strength Rating of D+
-- Baseline Credit Assessment of Ba1
-- Foreign currency ratings of A1/Prime-1
-- Foreign currency senior/subordinate/junior subordinate debt
ratings of A1/A2/A2
The outlook for the ratings is negative, except for the short-term
ratings, which is stable.
The NACF was established in 1961 under the Constitution of Korea
and the Agricultural Co-operative Law. It acts as an umbrella
organization for agricultural and livestock co-operatives and
represents almost all of Korea's farmers.
The structure operates on a two-tier system, with NACF in the
upper tier and member co-ops in the lower tier. The member co-ops
own NACF.
NACF, headquartered in Seoul, had KRW288 trillion (US$250 billion;
includes non-financial operations) in assets as of September 2010.
===============
M A L A Y S I A
===============
AMBANK BHD: S&P Raises Long-Term Counterparty Credit Rating
-----------------------------------------------------------
Standard & Poor's Rating Services said that it had raised its
foreign currency long-term counterparty credit rating on AmBank
(M) Bhd. to 'BBB' from 'BBB-' and the short-term rating to 'A-2'
from 'A-3'. The outlook on the long-term rating is stable. At
the same time, S&P raised the bank fundamental strength rating on
AmBank to 'C+' from 'C'. S&P also raised the issue rating on the
preference shares of AMMB Capital (L) Ltd. to 'BB+' from 'BB'.
AmBank guarantees these shares.
"S&P upgraded AmBank to reflect the sustained improvement in the
bank's earnings and asset quality since Australia and New Zealand
Banking Group Ltd. (AA/Stable/A-1+) acquired a stake in the AmBank
Group (AMMB Holdings Bhd.) in May 2007. AmBank's business profile
has also strengthened. The bank is reinforcing its strong
franchise in the consumer market while organically growing its
corporate and small and midsize enterprise businesses, leveraging
on its strong investment banking franchise," said Standard &
Poor's credit analyst Geeta Chugh.
AmBank's asset quality has consistently improved in recent years,
driven by strengthened risk management, higher loan
diversification, and the write-off of legacy nonperforming loans.
The bank's ratio of gross nonperforming assets (these include
NPLs, restructured loans, and foreclosed assets) has improved to
3.9% as of September 2010 from 10.7% as at March 2007. The ratio
has, however, increased from 3% in March 2010, due primarily to
the adoption of Financial Reporting Standard 139. S&P expects
AmBank's asset quality to improve further but to remain
constrained because auto loans, which are inherently riskier than
other consumer loans, constitute 35.6% of the loan book.
AmBank's earnings have benefited from a sustained increase in
margins, improvement in fee income, and reduced credit costs. Its
margins benefited from lower non-accrual drag, improved funding
profile, and recently from lagged repricing of time deposits in a
rising interest rate scenario. The bank's return on average
assets was 1.3% in the first half of fiscal 2011. S&P expects the
ROAA to come under some pressure because of a margin squeeze in
the second half of fiscal 2011 and fiscal 2012 due to lagged
repricing of term deposits and intense competition. Nevertheless,
S&P expects its ROAA to stay above 1%.
AmBank's capitalization is satisfactory relative to its risk
profile, in S&P's view. Its ratio of adjusted total equity to
adjusted assets was 8.1%, as at Sept. 30, 2010. Meanwhile, the
Tier 1 capital ratio (8.9%) as at Sept. 30, 2010 was comfortably
above the regulatory minimum; the bank aims to maintain the ratio
at 8% at least.
The bank's funding profile has improved, with customer deposits
forming 86% of the total funding base as at Sept. 30, 2010, from
67% as at March 31, 2007. Its ratio of loans to customer deposits
is high at 98.2% (124.2% as at March 31, 2007), but loans to
customer deposits plus long-term funds is a little more
comfortable at 91% at of Sept. 30, 2010 (107.9% as of March 31,
2007). AmBank's low-cost funding base (current and savings
accounts) has grown over the years but remained at just 12% of
total deposits as at Sept. 30, 2010.
"The stable outlook on the rating reflects S&P's opinion that the
bank will be able to sustain its financial profile at the current
levels. S&P may raise the rating if the bank is able to further
improve its funding profile and asset quality. Downward pressure
on the rating will arise from any significant asset-quality
slippage, with consequential adverse impact on the financial
profile of the company," said Ms. Chugh.
====================
N E W Z E A L A N D
====================
PLUM DUFF: PricewaterhouseCoopers Appointed as Receivers
--------------------------------------------------------
Maurice Noone and Malcolm Hollis of PricewaterhouseCoopers were
appointed joint receivers to Plum Duff Limited and Woolpak
Holdings Limited by the receivers of South Canterbury Finance
Limited.
The Companies' principal assets comprise of 63.8% interest shares
in NZ Wool Services International Limited.
Maurice Noone said "WSI is not affected by the appointment of
receivers to the Companies."
Mr. Noone further notes the receivers will likely be seeking
expressions of interest to acquire this shareholding from the
receivers early in the New Year.
TAWERA LAND: Placed Into Liquidation Over Unpaid Tax
----------------------------------------------------
Jimmy Ellingham at Manawatu Standard reports that Tawera Land
Company Ltd, a company associated with bankrupt businessman
Ken Thurston, has been placed into liquidation.
According to the Standard, Associate Judge Gendall put Tawera Land
under the control of Barry Jordan and David Vance, of Deloitte,
because of NZ$534,493 tax owed to the Inland Revenue Department.
Tawera Land has also been placed into receivership as a creditor
with general security arrangement attempts to claw back some
money, the Standard says.
The Standard notes that Mr. Thurston's son, Richard, replaced his
father as sole director in September 2009, although until his
bankruptcy, Ken Thurston retained a 100% shareholding.
The Standard says that a repayment plan proposed by Richard
Thurston for the company's tax debt was rejected by IRD solicitor
Phil Latimer at a High Court hearing in Palmerston North.
According to the report, Associate Judge Gendall's ruling said IRD
rejected the offer because of doubts about the company's ability
to even keep up with its current tax liabilities and because
Tawera was "somewhat deceptive and recalcitrant on providing
information as to its true financial position".
The Standard relates that the only evidence shown to the court
about the company's position was "unverified statements" that
appeared to show it owned NZ$19 million worth of farm property.
Associate Judge Gendall said Tawera had ample opportunity to work
with the IRD to pay off the debt, as a statutory demand was served
on June 30, the Standard notes.
Auckland-based insolvency accountants Boris van Delden and Dennis
Wood, from McDonald Vague, have been appointed receivers of the
company.
Ken Thurston, who was a director of 14 companies, was declared
bankrupt on October 15, 2010. Bob Dey Property Report says Tawera
Land & Ken Thurston were convicted in 2009 of discharging
contaminated wastewater on to land at the former Longburn
meatworks near Palmerston North in 2006, and secondly of
discharging dairy effluent on to the company's farm at Boness Rd,
Feilding, in 2007-08, and from both allowing discharges into river
systems in the Manawatu.
=================
S I N G A P O R E
=================
ALLIANCE TECHNOLOGY: Creditors Get 1.0124% Recovery on Claims
-------------------------------------------------------------
Alliance Technology and Development Limited declared second and
final dividend to its creditors on December 13, 2010.
The company paid 1.0124% to the received claims.
BIOENERGY SINGAPORE: Court Enters Wind-Up Order
------------------------------------------------
The High Court of Singapore entered an order on December 10 2010,
to wind up the operations of Continental Bioenergy Singapore Pte.
Ltd.
United Overseas Bank Limited filed the petition against the
company.
The company's liquidators are:
Chay Fook Yuen
Tay Puay Cheng
KMPG Services Pte Ltd
16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
GRANDSTAND PTE: Court to Hear Wind-Up Petition on December 31
-------------------------------------------------------------
A petition to wind up the operations of Grandstand Pte Ltd will be
heard before the High Court of Singapore on December 31, 2010, at
10:00 a.m.
Anderco Pte Ltd filed the petition against the company on Dec. 1,
2010.
The Petitioner's solicitors are:
Sathi & Co
101A Upper Cross Street
#13-25 People's Park Centre
Singapore 058358
KCH GROUP: Court to Hear Wind-Up Petition on December 31
--------------------------------------------------------
A petition to wind up the operations of KCH Group Singapore Pte
Ltd will be heard before the High Court of Singapore on
December 31, 2010, at 10:00 a.m.
International Paint Singapore Pte Ltd filed the petition against
the company on Dec. 1, 2010.
The Petitioner's solicitors are:
NLC Law Asia LLP
8 Robinson Road
#10-00 ASO Building
Singapore 048544
KHENG MOH: Court to Hear Wind-Up Petition on December 31
--------------------------------------------------------
A petition to wind up the operations of Kheng Moh Lim Kee Pte Ltd
will be heard before the High Court of Singapore on December 31,
2010, at 10:00 a.m.
People Bee Hoon Factory Pte Ltd filed the petition against the
company on December 1, 2010.
The Petitioner's solicitors are:
Messrs. Lee & Lee
No. 5
Shenton Way #07-00
UIC Building
Singapore 068808
LEHMAN BROTHERS: DBS Bank Wins Dismissal of Investors' Suit
-----------------------------------------------------------
Andrea Tan reporting for Bloomberg News said DBS Bank Ltd. won
dismissal of a lawsuit by 215 investors in Singapore who sought
S$18 million for losses tied to Lehman Brothers Holdings Inc.-
related investments, the Straits Times said, citing a court
ruling.
The investors sued the bank claiming the product's prospectus and
pricing statement were inconsistent, and the investment should be
declared void, the newspaper said, according to Bloomberg.
About Lehman Brothers
Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States. For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.
Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555). Lehman's bankruptcy petition
disclosed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history. Several other affiliates followed thereafter.
The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman. Epiq
Bankruptcy Solutions serves as claims and noticing agent.
On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)). James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI
The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion. Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees. Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.
International Operations Collapse
Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd. Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008. The joint administrators have
been appointed to wind down the business.
Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.
Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News. The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)
================
S R I L A N K A
================
TRADE FINANCE: Fitch Affirms 'BB+' National Long-Term Rating
------------------------------------------------------------
Fitch Ratings Lanka has affirmed Trade Finance & Investments Ltd's
National Long-term rating at 'BB+(lka)'. The Outlook is Stable.
TFI's rating factors in its high capitalization in terms of its
size of operations and good profitability. The rating is
constrained by TFI's small asset base, limited product diversity,
and narrow funding base.
The rating could be upgraded if TFI increases market share in its
core operations significantly relative to its peers whilst
maintaining good asset quality and profitability indicators.
Conversely, the rating would be downgraded if there is a
substantial weakening of TFI's asset quality and profitability.
TFI has been in operation for over 30 years, and has established a
franchise in financing (lease and hire purchase) mainly three-
wheelers (also called auto-rickshaws). Three-wheelers accounted
for approximately 70% of assets financed in the six-month period
ended September 2010 (H111). In 2007, due to emission concerns,
the government of Sri Lanka imposed a ban on the import of two-
stroke three-wheelers with effect from early 2008, with a further
ban on spare part imports from 2011 (for some components after
2013). Fitch expects the demand for two-strokes to ultimately
decline, and be replaced by the four-stroke product. TFI has
curtailed lending to two-stroke three-wheelers, with much of the
incremental loans coming from four-stroke three wheelers and loans
disbursed from its new branch in Jaffna (approximately 11% of loan
book at H111).
Historically, advances in arrears at the three-month level have
been high, with NPLs/loans of 22% at end-H111, reflecting the risk
profile of the clientele and the company's business strategy.
However, TFI has consistently maintained its six-month NPLs/gross
loans in the 6%-8% range over the last five years. Its six-month
NPL/loans ratio was 6.8% at H111 (FY10: 7.1%) and net NPL/equity
ratio was good at 13% at end-H111 (1.7% for six-month NPLs), which
was significantly better than the sector average.
TFI's funding is predominantly from equity, deposits and loans
from its shareholders and related parties. The company's
equity/assets ratio was 56.5% at end-H111, which was significantly
above the sector average. Its internal capital generation was
robust, in light of good profitability (net interest margins were
18.8% for H111, 22.5% at FY10) and high earnings retention policy.
All registered finance companies are required to be listed by June
2011, as such TFI is planning a listing on the Colombo Stock
Exchange for at least 10% of voting shares in the last quarter of
FY11. Equity proceeds from the listing would be utilized for
additional branch expansion and loan growth.
TFI is a finance company established in 1978. The Cooray family
(owners of the Jetwing Group) acquired TFI in the early 1990s, and
currently own around 93%.
UNION BANK: Fitch Affirms 'BB+' National Long-Term Rating
---------------------------------------------------------
Fitch Ratings Lanka has affirmed Union Bank of Colombo Ltd's
National Long-term rating at 'BB+(lka)' and revised the Outlook to
Stable from Positive.
UB's rating reflects its moderate asset quality and lack of a
broad deposit base. The rating also takes into account the
challenges to the scalability of its operations and the impact to
profitability given its holding of a low-yielding deep-discount
bond. The Outlook has been revised to Stable from Positive, in
consideration of further time required by UB to implement the
changes required in existing systems to manage challenges of
scalability of operations in light of projected loan growth and
branch expansion.
The implementation of necessary risk management systems and
processes (including the bank's proposed implementation of a core
banking system) would enable UB to manage its expansion plans and
add upward pressure on the rating. The bank's projected loan
growth as per its budget forecasts should help improve core
profitability by reducing the impact on interest yields from the
low yielding DDB.
UB was restructured after posting negative equity in 2002, after
the bank transferred LKR600 million in cash and LKR978 million of
NPLs to a special-purpose vehicle, in return for a 20-year DDB
guaranteed by Sampath Bank PLC (SB, 'AA-(lka)'/Positive); SB was
involved in UB's restructuring process and also made equity
infusions. Thereafter, the Central Bank of Sri Lanka in 2006
increased the minimum capital requirement for licensed commercial
banks to LKR2.5 billion (from LKR0.5 billion), to be met by H110 -
this has now been increased to LKR5 billion to be met by end-2015.
Several equity infusions occurred from FY03-H110, from both
existing and new shareholders, which increased UB's equity to
LKR3.6 billion at 9M10 (end-September 2010). UB informs Fitch
that a further rights issue would occur in FYE10. In addition,
all financial institutions are required to be listed by June 2011,
as such UB will seek a listing in the Colombo Stock Exchange in
Q111. UB plans to deploy capital for loan expansion mainly
targeting its SME clientele and increasing its branch presence.
Much of the incremental NPL increase in 2009 and H110 was led by
several large ticket loans that experienced cash flow delays over
2008-H110. That said, overall NPLs/gross loans declined to 9.1%
in 9M10 (FYE09: 10.4%) mainly due to loan growth in the period.
The proportion of DDB to total earning assets progressively
declined to 13% at 9M10 from its peak of 35% at FYE03 due to
increased capital infusions over FY03-H110 and resultant loan
expansion. Consequently, UB's profitability indicators have begun
to reflect improvement.
UB is a small commercial bank (0.4% of system assets) with 20
branches. SB's stake in UB has steadily declined over the years,
and accounted for 8.4% of voting shares at 9M10, having once
peaked at 24% of UB's equity at FYE03 (subsequent to UB's
restructuring). Genting Bhd of Malaysia has the largest equity
stake in UB with 26.3% of voting shares at 9M10.
===========
T A I W A N
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TAISHIN FINANCIAL: Fitch Raises Ratings; Gives Positive Watch
-------------------------------------------------------------
Fitch Ratings has upgraded most of Taishin Financial Holdings
Company's and its wholly-owned subsidiary, Taishin International
Bank's ratings. At the same time, Fitch has placed Taishin Bills
Finance Corporation's (wholly-owned by TFHC) Short-Term Ratings on
Rating Watch Positive, and maintained the Rating Watch status on
TBF's other ratings. A detailed list of the rating actions
follows at the end of this commentary.
The upgrades of TIB's ratings reflect Fitch's view that the bank's
financial strength has improved and is stronger than the average
level of its 'C' rated peers in Taiwan, as evidenced by its good
underlying profitability, superior asset quality and better
liquidity profile, despite its moderate capital buffer. Taishin
Group's multiyear efforts to overhaul credit infrastructure,
migrate its customer/business mix and rebuild balance sheet
strength after the unsecured consumer lending crisis in late-2005
have helped TIB improve its overall risk and financial profile.
Meanwhile, the bank's good local franchise in credit cards,
consumer finance and wealth management businesses enable it to
generate earnings that compare favorably with the local peer
average.
TIB's Stable rating Outlook underlies Fitch's expectation that the
bank will maintain its sound asset quality, good liquidity profile
and adequate capital buffer under its new business mix. Any
excessive risk taken in pursuing Taishin Group's growth strategies
that undermine TIB's financial strength could pressure its Issuer
Default Ratings and National ratings. Yet, a downgrade to the
Individual rating is less likely as the bank is well-positioned at
the top end of the 'C' Individual rating. On the other hand, an
upgrade to TIB's IDRs and National ratings will be driven by an
upgrade to the Individual rating. Fitch may consider an
Individual rating upgrade, although this is less likely over the
short- to medium-term, if TIB further develops its overall
franchise and maintains a consistently stronger capital buffer
through favorable earnings generation.
TIB reported good earnings in 9M10 with an annualized ROAA of
0.9%. Fitch expects the bank's profitability to remain favorable
in 2011, underpinned by subdued credit costs, stronger fees from
wealth management sales and positive re-pricing cycles amid likely
further interest rate increases from the central bank. The agency
considers the risk of deterioration in TIB's asset quality to be
limited as sufficient reserves were already set aside against
possible delinquencies (mainly from restructured corporate loans).
TIB's liquidity profile improved modestly due to a higher share of
demand deposits, yet remains less strong versus leading commercial
banks in Taiwan. Capitalization is deemed to be adequate and of
generally good quality. Fitch's stress tests indicate TIB's
capital buffer is sufficient in accommodating a sizeable rise in
credit costs.
The upgrades of TFHC's ratings correspond with the rating actions
on its principal operating subsidiary, TIB. TFHC's ratings and
Stable Outlook reflect the group's good local franchise in the
consumer banking segment, satisfactory asset quality and
capitalization and, on a standalone basis, its good liquidity.
They also take into account its moderate profitability (albeit
gradually improving) and reduced but still relatively high
financial leverage. The Support rating of '5' indicates that
TFHC's ratings are not based on state support, as there is little
prospect the government will support the holding company. While
not expected in the near-term, Fitch will consider taking negative
rating actions on TFHC if it pursues acquisitions that notably
weaken the group's consolidated financial strength. Barring the
potential impact of an acquisition, TFHC's ratings will mostly be
driven by TIB's credit profile.
Fitch placed most of TBF's ratings on RWP on 20 October 2010
following an announcement that it will merge with TIB. The
addition of the placement of TBF's Short-term Ratings on RWP is
driven by the upgrades of TIB's ratings, and reflects Fitch's
anticipation that all of TBF's ratings will be aligned with TIB's
once the merger is complete. The merger is subject to regulatory
approval and is expected to be finalized by end-January 2011. The
agency expects to resolve the Rating Watch status and align TBF's
ratings with TIB's, and subsequently withdraw TBF's ratings upon
the completion of the in-group merger.
The upgrade of TFHC's subordinated debt rating is based on the
upgrade of the issuer's National Long-term rating. TFHC's
subordinated bonds are rated two notches below its National Long-
term rating, which is in line with Fitch's revised hybrid notching
criteria. The rating of the subordinated bonds mainly reflects
the debt issue's feature of loss absorption through coupon and
principal deferrals once TFHC's capital adequacy ratio falls below
the regulatory minimum requirement of 100%.
TFHC is a bank-centric financial holding company and was the
fourth-largest of 15 domestic financial holding companies by
consolidated assets. TIB is the 14th largest bank in Taiwan in
terms of asset and deposit size, with a market share of 2.8% in
deposits. TBF is one of the small bills finance companies in
Taiwan.
All rating actions are:
Taishin Financial Holdings Company:
-- Long-term foreign currency IDR upgraded to 'BBB' from 'BBB-';
Outlook Stable;
-- Short-term foreign currency IDR affirmed at 'F3';
-- National Long-term rating upgraded to 'A+(twn)' from
'A(twn)'; Outlook Stable;
-- National Short-term rating affirmed at 'F1(twn)';
-- Individual Rating affirmed at 'C';
-- Support Rating affirmed at '5'; and
-- Subordinated debt rating upgraded to 'A-(twn)' from
'BBB+(twn)'.
Taishin International Bank:
-- Long-term foreign currency IDR upgraded to 'BBB+' from 'BBB';
Outlook Stable;
-- Short-term foreign currency IDR upgraded to 'F2' from 'F3';
-- National Long-term rating upgraded to 'AA-(twn)' from
'A+(twn)'; Outlook Stable;
-- National Short-term rating upgraded to 'F1+(twn)' from
'F1(twn)';
-- Individual Rating affirmed at 'C';
-- Support Rating affirmed at '3'; and
-- Support Rating Floor affirmed at 'BB+'.
Taishin Bills Finance Corporation:
-- Long-term foreign currency IDR of 'BBB-' remained on RWP;
-- Short-term foreign currency IDR of 'F3' placed on RWP;
-- National Long-term rating of 'A(twn)' remained on RWP;
-- National Short-term rating of 'F1(twn)' placed on RWP;
-- Individual Rating of 'C/D' remained on RWP; and
-- Support Rating of '2' remained on Rating Watch Negative.
=============
V I E T N A M
=============
VIETNAM NATIONAL: Moody's Cuts Corporate Family Rating to 'B2'
--------------------------------------------------------------
Moody's Investors Service has downgraded Vietnam National Coal and
Minerals Holding Corporation Limited's corporate family rating to
B2 from Ba3. The outlook for the rating is stable.
This completes the review for possible downgrade that commenced on
December 1, 2010. This review was prompted by the possible
default of Vietnam Shipbuilding Industry Group on its repayment of
a foreign currency loan, and the potential implications for
Moody's expectations of government support for Vietnam's other
state-owned enterprises, such as Vinacomin.
Ratings Rationale
"The rating action follows Moody's decision to downgrade Vietnam's
sovereign rating to B1/Negative and the expectation of a lowering
in the Vietnam government's willingness and ability to support
Vinacomin in distress," says Alan Greene, a Moody's Vice President
and Senior Credit Officer.
Vinacomin's B2 rating is now in line with its Baseline Credit
Assessment (BCA) of 15, which is equivalent to the B2 level under
Moody's Global Rating Scale.
Despite being 100%-owned by the Vietnamese government, there is
now no uplift afforded to it based on Moody's expectation of
moderate -- reduced from high -- support from its parent, under
the joint default analysis approach for government-related
issuers.
"Notwithstanding this weakened level of government support,
Moody's continue to recognize Vinacomin's relatively strong
financial profile, as shown by its credit metrics -- such as
debt/EBITDA below 3 times and interest cover above 6 times -- and
its vital role in the power-hungry domestic economy," adds Greene.
The B2 rating further reflects the highly supportive nature of the
regulatory and political environment, and which should continue in
the medium term.
The company's operating strengths are supported by its monopoly
position in the domestic market and its demonstrated access to
funds for its substantial coal, minerals and power expansion
projects.
At the same time, the rating recognizes key challenges such as (1)
Vinacomin's largely debt-funded capex program, including two
bauxite/alumina projects, and its move into power generation; (2)
the standard, quality and timeliness of Vinacomin's consolidated
reporting, as well as issues pertaining to the regulatory
environment and the emerging market risks arising from operating
in Vietnam; and (3) the limited degree of clarity regarding long-
term shareholder intentions and strategic direction, and which are
compounded by its complex group structure.
Moody's considers that any positive rating movement for Vinacomin
is unlikely without a commensurate change in the government's
rating and/or Moody's revision of its expectations of the support
level to be applied to Vinacomin. The rating could also
experience upward pressure should Moody's concerns over the
quality of the company's consolidated financial reporting ease,
and clarity regarding its strategy and the financial extent of its
role in national development is forthcoming. A clear and
sustained shift towards market prices for its products would
probably lead to markedly stronger credit metrics and be positive
for the rating.
On the other hand, downward pressure on the rating could emerge
should 1) the quality and timeliness of Vinacomin's financial
reporting deteriorate, or 2) Vinacomin takes on further, or
expands existing development projects, such that adjusted
debt/EBITDA remains above 4.0-4.5x for an extended period.
In addition, a further downgrade of the Vietnamese government's
rating to below that of Vinacomin may trigger a further downgrade
for the company.
The last rating action on Vinacomin was taken on December 1, 2010
when the company's Ba3 corporate family rating was placed under
review for possible downgrade after the increased likelihood of
default by Vinashin.
Vinacomin is the largest coal producer in Vietnam, accounting for
over 95% of total domestic coal production. The company is also
engaged in power generation, mineral exploration and smelting, and
other operations related to its core coal and minerals business.
* Moody's Downgrades Ratings on Six Vietnamese Banks
----------------------------------------------------
Moody's Investors Service has lowered the ratings of six
Vietnamese banks following Moody's downgrade of the Vietnamese
government's rating to B1 from Ba3.
The sovereign downgrade was announced earlier.
All six banks' foreign currency deposit ratings were lowered to B2
from B1 and continue to have a negative outlook, in line with the
revised foreign currency deposit ceiling.
In addition, Moody's lowered -- by one to two notches -- the
Baseline Credit Assessments and the associated Bank Financial
Strength Ratings of all six banks.
This action reflects Moody's view that the same concerns that have
led to negative action on the sovereign rating also have negative
implications for the standalone credit profiles of the Vietnamese
banks.
The banks affected by this rating action are:
(1) Asia Commercial Bank
(2) Bank for Investment and Development of Vietnam
(3) Military Commercial Joint Stock Bank
(4) Saigon-Hanoi Commercial Joint Stock Bank
(5) Techcombank
(6) Vietnam International Bank.
Karolyn Seet, Moody's Assistant Vice President and lead analyst
for the Vietnamese banks commented:
"All the factors that are resulting in negative credit trends for
the sovereign have increased the riskiness of Vietnam's operating
environment for the banks. These include the heightened risk of a
balance of payments crisis, the depreciation pressure felt on the
Vietnamese dong, and the unconvincing policy responses to these
issues."
"In addition, the financial difficulties of government-owned
shipbuilder Vinashin and the likelihood that it will default on
its foreign currency borrowings have negative implications for the
banks."
"Some banks have material exposure to Vinashin itself. More
generally, the Vinashin episode shows that predicting government
support, even for major state-owned enterprises in Vietnam, is
challenging and this raises the potential for increasing problem
loans for SOE exposures in general."
While the rated banks' profitability and capital levels currently
seem adequate, Moody's believes that the banking system could be
vulnerable to adverse financial or economic developments. System-
wide credit growth has been high and, at some rated joint stock
banks, very high. The quality of these newly booked loans would
be tested in a downturn.
In addition, a reliance on offshore funding has eroded the banks'
international liquidity position. Their previously strong net
foreign asset position has shifted into a growing net liability
position. This development further increases the vulnerability of
the banks' balance sheets to exchange rate depreciation and of the
country's external payments position to external shocks.
While the principal driver of the bank downgrades has been a
lowering of their intrinsic financial strength ratings, Moody's
has also changed its systemic support assumptions for Vietnamese
banks.
In the context of the Joint-Default Analysis approach that is
central to Moody's bank rating methodology, Moody's now considers
Vietnam to be a "low" support country compared to Moody's previous
assessment of "medium".
This change principally reflects Moody's concern that the extent
and timing of support have become unpredictable, as evidenced by
the government's apparent unwillingness to support Vinashin.
Moreover, Moody's has changed the systemic support indicator for
Vietnamese bank ratings to B1 from Ba2, the former being at the
same level as Vietnam's local currency government debt rating of
B1.
Moody's no longer assess the willingness and capacity of the
Vietnamese government to support the banks as being higher than
its ability to service its own debt.
These ratings were lowered:
(1) ACB: BFSR/BCA to D-/Ba3 from D/Ba2, with a stable outlook;
local currency long-term deposit rating to Ba3 from Ba2; local
currency long-term issuer rating to Ba3 from Ba2; foreign
currency long-term deposit rating to B2 from B1 with a
negative outlook; foreign currency long-term issuer rating to
B1 from Ba2 with a negative outlook
(2) BIDV: BFSR/BCA to E+/B2 from E+/B1, with a stable outlook;
local currency long-term deposit rating to B1 from Ba2; local
currency long-term issuer rating to B1 from Ba2; foreign
currency long-term deposit rating to B2 from B1 with a
negative outlook; foreign currency long-term issuer rating to
B1 from Ba2 with a negative outlook;
(3) MB: BFSR/BCA to E+/B2 from D-/Ba3 with a stable outlook; local
currency long-term deposit rating to B2 from Ba3; local
currency long-term issuer rating to B2 from Ba3; foreign
currency long-term deposit rating to B2 from B1 with a
negative outlook; foreign currency long-term issuer rating to
B2 from Ba3 with a negative outlook;
(4) SHB: BFSR/BCA to E+/B2 from D-/Ba3 with a stable outlook;
local currency long-term deposit rating to B2 from Ba3; local
currency long-term issuer rating to B2 from Ba3; foreign
currency long-term deposit rating to B2 from B1 with a
negative outlook; foreign currency long-term issuer rating to
B2 from Ba3 with a negative outlook;
(5) TCB: BFSR/BCA to E+/B1 from D-/Ba3 with a stable outlook;
local currency long-term deposit rating to B1 from Ba2; local
currency long-term issuer rating to B1 from Ba2; foreign
currency long-term deposit rating to B2 from B1 with a
negative outlook; foreign currency long-term issuer rating to
B1 from Ba2 with a negative outlook;
(6) VIB: BFSR/BCA to E+/B2 from D-/Ba3 with a stable outlook;
local currency long-term deposit rating to B2 from Ba3; local
currency long-term issuer rating to B2 from Ba3; foreign
currency long-term deposit rating to B2 from B1 with a
negative outlook; foreign currency long-term issuer rating to
B2 from Ba3 with a negative outlook.
Specific considerations regarding the six affected banks are:
ACB
Moody's downgraded ACB's BFSR to D- (mapping to a BCA of Ba3) from
D (mapping to a BCA of Ba2) with a stable outlook.
In the current volatile environment, given the bank's high loan
growth and increased competition in the market, the downgrade
reflects the challenges which the bank faces in increasing its
capital ratio to provide a larger cushion to absorb losses.
But Moody's maintains its view that the bank's standalone
financials remain more robust than those of its Vietnamese -- and
even its regional -- Ba3-rated peers. ACB is the fifth-largest
bank in the system, with a 6.4% market share by assets. It is
also the largest joint-stock bank.
The rating derives support from the bank's strong profitability,
low level of nonperforming loans, good efficiency, and strong
liquidity. It also takes into consideration ACB's disciplined
credit approval and monitoring process, progressive risk
management and controls, as well as the benefits of skills
transfers from its shareholder (15% strategic stake), Standard
Chartered Bank.
Moody's has changed the probability of government support to
'high' from 'very high', which does not lead to any uplift in the
bank's local currency deposit rating of Ba3, one notch below the
local currency deposit ceiling of Ba2.
BIDV
Moody's downgraded BIDV's BFSR to E+ (mapping to a BCA of B2) from
E+ (mapping to a BCA of B1) with a stable outlook.
The downgrade takes into consideration the risks in the country's
weak operating environment, the bank's poor -- but improving --
capital ratios, and its modest liquidity fundamentals. BIDV is
the second-largest bank in the system, with a 10.2% market share
by assets.
Moody's believes that the probability of government support is
very high, which leads to a one-notch uplift in the bank's local
currency deposit rating of B1 from its BCA of B2.
MB
Moody's downgraded MB's rating to E+ (mapping to a BCA of B2) from
D- (mapping to a BCA of Ba3) with a stable outlook.
The downgrade reflects Moody's heightened concerns over the bank's
rapid credit growth and yet modest loan loss-reserve coverage.
Another concern is the significant size -- in terms of proportion
-- of the bank's off-balance sheet commitments. The latter are
almost the size of its loan portfolio and consist largely of
letters of credit. Should these off-balance sheet items need to
be funded, the bank's capital and liquidity ratios would be
negatively affected, if appropriate action is not taken to cushion
any shortfalls.
In addition, the bank faces other constraining factors: limited
franchise (as the ninth-largest bank in the system, with a 3.3%
market share by assets), its narrow product diversification, and
the inherent challenges of the Vietnamese operating environment.
But the current rating also derives support from the bank's fairly
healthy financial metrics, comparable to similarly-rated regional
peers, with consistently good profitability in recent years, good
capitalization ratios and low level of non-performing loans.
Moody's changed the probability of government support to 'low'
from 'moderate.' There is no uplift in the bank's local currency
deposit rating of B2 from its BCA.
SHB
Moody's downgraded SHB's rating to E+ (mapping to a BCA of B2)
from D- (mapping to a BCA of Ba3) with a stable outlook.
The downgrade reflects Moody's increasing concerns over the bank's
very rapid credit growth, high credit risk concentration, low loan
loss-reserve coverage, short operating history, and the
challenging character of the operating environment in Vietnam.
Other constraining factors are the fact that SHB is a much smaller
bank (as the 16th-largest in the system, with a 1.4% market share
by assets) when it is compared with ACB and BIDV. It has a less
extensive branch network.
Moody's changed the probability of government support to 'none'
from 'low'. Its local currency deposit rating of B2 is at the
same level as its BCA.
TCB
Moody's downgraded TCB's rating to E+ (mapping to a BCA of B1)
from D- (mapping to a BCA of Ba3) with a stable outlook.
The downgrade takes into consideration the heightened risks
pertaining to the country's volatile operating environment and the
bank's modest franchise value (as the seventh-largest in the
system, with a 3.9% market share by assets).
But the current ratings also reflect the bank's historically high
profitability, strong capital adequacy ratios, good liquidity, and
low cost efficiency. In addition, the bank's progressive risk
management and controls, as well as the benefits of skills
transfers from its shareholder HSBC -- which has a strategic 20%
stake -- are also taken into account.
Moody's changed the probability of government support to
'moderate' from 'high'. There is no uplift in the bank's local
currency deposit rating of B1 from its BCA.
VIB
Moody's downgraded VIB's rating to E+ (mapping to a BCA of B2)
from D- (mapping to a BCA of Ba3) with a stable outlook.
The downgrade reflects the volatility inherent in Vietnam's
operating environment, the bank's low loan loss reserve coverage,
its high credit risk concentration, and its very high credit
growth. It also captures the bank's smaller franchise (the 11th
largest in the system, with a 2.5% market share by assets) when
compared with ACB and BIDV. It has a less extensive branch
network.
The rating further captures VIB's apparently disciplined credit
approval and monitoring process, and the benefits of potential
skills transfers from its strategic partner, the Commonwealth Bank
of Australia, which has a 15% stake.
Moody's changed the probability of government support to 'none'
from 'moderate'. Its local currency deposit rating is at B2, at
the same level as its BCA.
Previous Rating Actions And Principal Methodologies
The previous rating actions for ACB, BIDV, and TCB were taken on
August 3, 2009, when their issuer and deposit ratings were
downgraded to Ba2 from Ba1.
The previous rating action for MB was on September 22, 2010, when
Moody's assigned first-time ratings to the bank.
The previous rating action for SHB was on August 10, 2010, when
Moody's assigned first-time ratings to the bank.
The previous rating action for VIB was on August 13, 2009, when
Moody's confirmed the D-/Ba3 BFSR of the bank.
ACB, headquartered in Ho Chi Minh City, had total assets of VND168
trillion (US$9.1 billion) as of end-2009.
BIDV, headquartered in Hanoi, had total assets of VND292 trillion
(US$15.9 billion) as of end-2009.
MB, headquartered in Hanoi, had total assets of VND69 trillion
(US$3.8 billion) as of end-2009.
SHB, headquartered in Hanoi, had total assets of VND27 trillion
(US$1.5 billion) as of end-2009.
TCB, headquartered in Hanoi, had total assets of VND93 trillion
(US$5.0 billion) as of end-2009.
VIB, headquartered in Hanoi, had total assets of VND57 trillion
(US$3.1 billion) as of end-2009.
* Moody's Downgrades Vietnam's Government Bond Rating to 'B1'
-------------------------------------------------------------
Moody's Investors Service has lowered the government of Vietnam's
bond rating to B1 from Ba3 and maintained a negative outlook.
Ratings Rationale
The main reasons for the decision are:
1. The heightened risk of a balance of payments crisis, arising
from a widening trade deficit, capital flight, the reduced
level of foreign exchange reserves, and depreciation pressure
on the VN dong exchange rate;
2. The rise of inflation into double-digit territory, which will
further increase pressure on the exchange rate and which
results in capital flight in the external balance of payments;
3. Policies working at cross purposes have contributed to the
rise in contingent liabilities on the government's balance
sheet in the public enterprise and banking systems; and
4. Debt distress at the government-owned shipbuilder, Vinashin,
which suggests a reduced ability or capacity on the part of
the government to provide financial support to that, and
perhaps other, large, state-owned enterprises.
The action lowers the government's foreign and local currency bond
ratings to B1 from Ba3, Vietnam's foreign currency country bond
ceiling to B1 from Ba2 and the foreign currency bank deposit
ceiling to B2 from B1; all of which have negative outlooks. The
local currency bond and deposit ceilings were lowered to Ba2 from
Ba1. The short-term ratings and ceilings remain at Not Prime.
The ceilings act as a cap on ratings that can be assigned to the
domestic or foreign currency obligations of other entities
domiciled in the country.
Rationale For The Downgrade
"Moody's considers that short-comings in economic policies have
allowed pressures to remain unabated on the balance of payments
and are resulting in ongoing macroeconomic instability," says Tom
Byrne, a Senior Vice President in Moody's Sovereign Risk Group.
"Although strong stimulus measures taken during the global
financial crisis buoyed economic growth and allowed Vietnam to
rank as one of the better performers globally in 2009, an
unwillingness to tighten effectively monetary policy and to allow
the exchange rate to depreciate in line with market pressures have
weakened the balance of payments and have elevated the risk of an
external payments crisis," says Byrne.
"The rise in inflation to 11.1 percent in November compared with
the same month a year ago highlights the weakness in policies,
which remain biased towards growth rather than towards stability.
While the food component of the price index was a large driver of
inflation, so has been the investment component which is, in turn,
driven by the declining, but still large fiscal deficit, as well
as rapid growth in bank credit and in the monetary aggregates this
year," adds Byrne.
The authorities have recently taken tightening measures, such as
the 100-basis-point increase in the policy interest rate, but it
is likely that a stronger stance will be necessary to contain
inflationary pressures.
Moreover, the exchange rate remains overvalued despite the 2.1
percent devaluation in August, as is seen in the re-emergence of a
sizable discount in parallel foreign exchange market rates.
Coupled with overheating in the economy, the overvalued exchange
rate has led to rapid growth in imports and the widening of the
trade deficit this year.
Another result is that market expectations for a weaker dong
exchange rate -- coupled with inflationary expectations -- led to
a surge in capital flight (BOP errors and omissions) last year,
and which apparently has continued this year according to
available statistics.
These developments are putting significant pressure on the balance
of payments and have weakened the external payments position, as
is reflected in the rise in external vulnerability to external
shocks (as reflected in the external vulnerability indicator, and
the ratio of debt payments due within one year to holdings of
official foreign exchange reserves).
Even though strong private remittance inflows and a rebound in
foreign direct investment have provided additional support to the
balance of payments this year, the current account deficit may
also widen slightly to 7 percent of GDP according to the IMF.
That, coupled with surging capital flight, reduced official
foreign exchange holdings to $14.1 billion in September from a
peak of $23.9 billion in 2008, according to the most recently
available data. Moody's expects reserves to decline further under
existing policies.
Although an external payments crisis is probably not imminent--
assuming that capital flight is staunched and the recent
stabilization in holdings of official foreign exchange reserves
continues--the absence of a timely release of official reserve
data adds uncertainty and hinders analysis, especially during
times of heightened global financial market uncertainty and risk
aversion.
In addition, institutional and regulatory policy weaknesses raise
concerns over a build-up in contingent liabilities on the
government's balance sheet. One reason is that debt at large
state-owned corporations has grown rapidly in recent years.
Another reason is the rapid growth in banking sector loans which
will probably lead to deterioration in asset quality in a system
that is not that well capitalized. And, greater reliance on
offshore funding has eroded the international liquidity positions
of the banks, resulting in a shift from a strong, net foreign
asset position to a growing net liability position in June this
year. This development increases vulnerability to an adverse
shift in foreign creditor sentiment.
Lastly, the government's refusal to provide financial support to
the distressed shipbuilder, Vinashin, may have unintended
consequences. Although ring-fencing by the government of
Vinashin's foreign liabilities from its balance sheet may seem to
help protect official foreign exchange reserves, a default on
Vinashin's foreign obligations would likely damage the ability of
the country to raise foreign market financing at affordable rates
for its still largely unmet infrastructure needs.
Moreover, an unwillingness to support a seemingly strategic
company, which was the sole beneficiary of Vietnam's initial
global bond issuance in 2007, raises questions on the health of
the public enterprise sector at large, and on the adequacy of
official holdings of foreign exchange reserves. Greater
transparency in the communication of financial and economic
conditions, as well as of policy intentions, would help to allay
such concerns.
Credit Triggers For A Future Rating Actions
These would include on the downside:
1. An inflationary cycle which further exacerbates capital
flight,
2. A loss in foreign exchange reserves that threatens to remove
the buffer to a sudden stop in foreign credit or to
deleveraging of portfolio investment positions, or
3. Deterioration in the financial health of the banking or state
enterprise system that threatens to weaken the country's
external payments position or the sustainability of public-
sector debt.
On the upside, a coherent and effective policy response that
restores the prior strength of the balance of payments, contains
inflation and ensures the continued manageability of public-sector
finances would put upward pressure on the rating.
The last rating action on the Socialist Republic of Vietnam was
taken on 4 August 2008, when Moody's placed Vietnam's government's
ratings on negative outlook.
*********
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
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about which we report.
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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, Psyche A. Castillon, Frauline S.
Abangan, and Peter A. Chapman, Editors.
Copyright 2010. All rights reserved. ISSN: 1520-9482.
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