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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

            Thursday, July 14, 2011, Vol. 14, No. 138

                            Headlines


A U S T R A L I A

BIANCO CONSTRUCTION: Closes Steel Business; 50 Jobs Lost
LEADING SOLUTIONS: Liquidators Settle AUD1.2M Preferential Claim
PETER SACHS: Collapses Amid Uncertainty Over Solar Legislation


C H I N A

BABY FOX: Terminates 868,262 Common Shares Registration
CHINA HONGQIAO: S&P Gives 'BB-' Long-term Corporate Credit Rating
CHINA SHANSUI: S&P Assigns 'BB-' Issue Rating on Notes Due 2014


H O N G  K O N G

ART TECH: Court to Hear Wind-Up Petition on August 17
CHEER FORCE: Court to Hear Wind-Up Petition on August 17
CHEER WISDOM: Court to Hear Wind-Up Petition on August 17
EGANAGOLDPFEIL (HOLDINGS): First Meetings Slated For August 3
EVER PROFIT: Court Enters Wind-Up Order

GOLD OCEAN: Court Enters Wind-Up Order
HIP LIK: Court Enters Wind-Up Order
LOYAL TOP: Court Enters Wind-Up Order
NEW COLOUR: First Meetings slated for July 25
NUOVO DESIGN: Court Enters Wind-Up Order


I N D I A

ADARSHA AUTOMOTIVES: CRISIL Assigns 'BB+' Rating to INR40MM Debt
AFP MANUFACTURING: CRISIL Assigns 'BB' Rating to INR62MM Term Loan
HANUMAN INDUSTRIES: CRISIL Reaffirms 'P4+' Rating on INR100MM Loan
HEMA DYEING: CRISIL Reaffirms 'BB-' Rating on INR34.4MM LT Loan

MATA RANI: CRISIL Reaffirms 'B+' Rating on INR120MM Cash Credit
PAVAN INDUSTRIES: CRISIL Assigns 'B' Rating to INR60MM Cash Credit
PINK STAR: CRISIL Reaffirms 'B' Rating on INR25.3MM Term Loan
RAI SAHEB: CRISIL Reaffirms 'B' Rating on INR820.9MM Term Loan
RAM BUILDERS: CRISIL Reaffirms 'BB' Rating on INR25MM Facility

RUKMANI FERRO: CRISIL Assigns 'D' Rating to INR41.4MM Cash Credit
SHASHI SIDNAL: CRISIL Assigns 'D' Rating to INR118.4MM LT Loan
SHREE VENKATESHWARA: CRISIL Reaffirms 'D' Rating on INR178MM Loan
SISCO RESEARCH: CRISIL Reaffirms 'BB-' Rating on INR20MM Term Loan
SONPAL EXPORTS: CRISIL Assigns 'BB-' Rating to INR6MM Term Loan

TAPAL STEEL: CRISIL Reaffirms 'D' Rating on INR133MM Term Loan
VEL GANESH: CRISIL Rates INR105 Million Rupee Term Loan at 'B'
VIJAY SABRE: CRISIL Assigns 'B' Rating to INR80MM Cash Credit


J A P A N

AIFUL CORPORATION: Moody's Withdraws 'Caa1' Ratings
CAFES 2: S&P Lowers Rating on Class E Trust Certificates to 'B-'
TOKYO ELECTRIC: Quick Passage of Bill Needed, Bankers Chief Say


K O R E A

* SOUTH KOREA: Creditors Seek to Weed Out 30 Large Troubled Firms


N E W  Z E A L A N D

BLUE CHIP: Northern Crest Liquidators Issue Search Warrant
BLUE CHIP: Handful of Former Blue Chip Customers Face Foreclosures
CENTURY CITY: Owner Sells Apartment Hotel Property
CREDIT UNION: S&P Puts 'BB' Issuer Credit Rating on CreditWatch
SAPPHIRE II: Fitch Affirms B+sf Rating on NZD2.5MM Class CA Notes


P H I L I P P I N E S

PHILIPPINES: Moody's Says Outlook Stable, But Fiscal Reform Needed


S R I  L A N K A

* SRI LANKA: Fitch Affirms 'D/E' Individual Ratings of 4 Banks


                            - - - - -


=================
A U S T R A L I A
=================


BIANCO CONSTRUCTION: Closes Steel Business; 50 Jobs Lost
--------------------------------------------------------
Ferrier Hodgson partner David Kidman, the receiver of Bianco
Structural Steel, said Tuesday that after conducting a detailed
investigation of the company, it was clear that the business was
unviable and would have to close.

Mr. Kidman said approximately 50 staff are likely to be made
redundant.

"This business has lost more than AUD16 million since moving into
these new premises in 2007 and was a significant contributing
factor to Bianco's current financial problems," Mr. Kidman said.
"Since our appointment, it has become clear that the amount of
work on hand at BSS was far lower than we expected.  If we don't
shut down BSS, it will drag down the profitable Bianco
Construction Supplies with it."

The Receivers intend to sell the cutting edge facility and
potential purchasers are expected to launch their own operations
at the facility in due course.

Mr. Kidman stressed that the Bianco Construction Supplies (BCS)
business at Newton continues to trade well and the closure of BSS
was a necessary step to improve the chances of survival of the
other Bianco businesses.

"We have launched the sale programme for Bianco Construction
Supplies and there is a significant level of interest in that
business," Mr. Kidman said.  "We expect to be in a position to
announce some positive news about the future of the Construction
Supplies business over the next couple of months."

BSS and BCS were placed in receivership on June 30 after the
directors appointed voluntary administrators.  The business had
accumulated combined liabilities of about AUD60 million.  Mr.
Kidman and fellow Ferrier Hodgson Partner Bruce Carter were
appointed Receivers and Managers.

Other Bianco Group businesses -- including the Bianco Hire, Bianco
Reinforcing and Bianco Precast businesses -- are not affected by
the appointment and continue to operate independently.

                        About Bianco Group

Based in Australian The Bianco Group -- http://www.bianco.com.au/
-- is one of the largest suppliers to the building, construction,
civil, government and mining industries


LEADING SOLUTIONS: Liquidators Settle AUD1.2M Preferential Claim
----------------------------------------------------------------
Julia Talevski at ARN reports that liquidators of defunct system
integrator, Leading Solutions, settled with Queensland-based
distributor, Cellnet Group Limited.

According to ARN, Cellnet said in a statement on the Australian
Securities Exchange that liquidators alleged Cellnet received the
money as an unfair preference in the six months prior to Leading
Solutions going into administration in October 2009.  At the time
of liquidation, Leading's debts exceeded AUD12 million.

In February, ARN recalls, Cellnet denied any liability under the
claim, which it received from liquidators to the tune of
AUD1.2 million.

Cellnet, as cited by ARN, stated the terms of its settlement with
Leading Solutions are confidential.  The settlement is expected to
have an immaterial impact on Cellnet's net profit for the 2011
financial year ending June 30.

Leading Solutions was headquartered in Melbourne and maintains
offices in Sydney and Queensland.  Key vendors are HP, Microsoft,
IBM, Intel, Toshiba and Symantec.

McGrath Nicol was appointed as the liquidators of the Leading
Solutions company shell in December 2009.

ARN discloses that the business was sold to its rival, Synergy
Plus, which suffered a similar fate in March this year.  Receivers
revealed the company had been in significant financial trouble for
some time, owing creditors more than AUD34 million, ARN notes.


PETER SACHS: Collapses Amid Uncertainty Over Solar Legislation
--------------------------------------------------------------
Patrick Stafford at SmartCompany reports that Peter Sachs
Industries, trading as Saxon Home, has fallen into liquidation
after the company's foray into solar hot water was brought undone
by uncertainty regarding legislation around solar rebates.

The collapse, says SmartCompany, comes days after solar providers
in New South Wales complained that uncertainty over feed-in
tariffs was causing more solar providers to collapse.

According to SmartCompany, liquidator Raj Khatri at Worrels said
the move into solar had not been smooth.

"The company did try to invest into solar but the products
imported from China simply weren't good enough," SmartCompany
quoted Mr. Khatri as saying.  "They were having a lot of issues
and had to come to a decision to continue with the hot water
business.  Eventually the directors decided that the business
could not continue."

Mr. Khatri, as cited by SmartCompany, said he could not reveal an
exact revenue figure but confirmed that the company had about 20
employees and he believed turnover was in millions of dollars.

"All the staff were properly notified and we have continued to pay
appropriate entitlements.  The biggest debts to anyone are the
employees," Mr. Khatri told SmartCompany.

SmartCompany notes that Mr. Khatri said part of the problem is the
uncertainty over solar legislation.  Queensland still has a feed-
in tariff but changes to legislation mean any system bigger than
5Kw will not be able to be used for feed-in payments, according to
the report.

Mr. Khatri said the business cannot be revived by the intellectual
property and the Saxon name is receiving some interest from
buyers, the report notes.

Peter Sachs Industries Pty Ltd, which traded under the 100-year
old brand Saxon Home, is a wholly owned and operated Australian
manufacturing business, supplying the quality products to the
building, plumbing and marine industries.  The company's core
business is the manufacture of environmentally friendly water
heating products for domestic, commercial and marine applications.


=========
C H I N A
=========


BABY FOX: Terminates 868,262 Common Shares Registration
-------------------------------------------------------
The Securities and Exchange Commission, on Aug. 6, 2010, declared
effective a registration statement on Form S-1 of Baby Fox
International, Inc., initially filed with the SEC on May 12, 2008,
originally registering the resale by selling shareholders
identified in the prospectus of an aggregate of 868,262 shares of
the Company's common stock.  The offering has been terminated.

Pursuant to the undertaking contained in the Registration
Statement, the Company filed a post-effective amendment to the
Registration Statement to terminate the Registration Statement and
deregister all of the shares of Common Stock that remain unsold.

                    About Baby Fox International

Shanghai Minhang District, P.R.C.-based Baby Fox International,
Inc., is a Nevada corporation organized on Aug. 13, 2007, by
Hitoshi Yoshida, a Japanese citizen, as a listing vehicle to
acquire Shanghai Baby Fox Fashion Co., Ltd.  The Company is a
growing specialty retailer, developer, and designer of
fashionable, value-priced women's apparel and accessories.  The
Company's products are aimed to target women aged 18 to 40 in
China.  The Baby Fox brand was initially registered in Italy in
May of 2003 and it is promoted as an international brand in China.

The Company reported a net loss of US$435,531 on US$25.2 million
of revenue for fiscal year ended June 30, 2010, compared to a net
loss of US$4.5 million on US$24.3 million of revenue for fiscal
2009.

Following the fiscal 2010 results, Friedman LLP, in Marlton, N.J.,
expressed substantial doubt about the Company's ability as a going
concern.  The independent auditors noted of the Company's losses,
negative cash flows from operations and working capital
deficiency.

The Company's balance sheet at March 31, 2011, showed US$12.94
million in total assets, US$21.04 million in total liabilities,
and a US$8.10 million total stockholders' deficit.


CHINA HONGQIAO: S&P Gives 'BB-' Long-term Corporate Credit Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' long-term
corporate credit rating to China Hongqiao Group Ltd. The outlook
on the rating is stable. At the same time, Standard & Poor's
assigned its 'BB-' issue rating to Hongqiao's proposed issue
of benchmark-sized senior unsecured notes.

"The issue rating is subject to our review of the final terms and
conditions of the issuance. We also assigned a long-term 'cnBBB-'
Greater China credit scale rating to Hongqiao and 'cnBB+' rating
to its proposed senior unsecured notes," S&P related.

"The rating on Chinese aluminum producer Hongqiao reflects the
company's high concentration risk, its short operating track
record, and key-man risk," said Standard & Poor's credit analyst
Lawrence Lu. "Hongqiao also faces significant negative free
operating cash flow in the next 12 months and industry risks.
However, the weaknesses are partly offset by the company's low
cost position, proximity to its customer base, and the good demand
prospects for aluminum products in China."

Hongqiao's lack of backward integration exposes it to the
volatility and cyclicality in China's aluminum industry.
Overcapacity and frequently changing and ineffective government
polices exacerbate the risk levels and constrain potential for
price rises.

"We view Hongqiao's concentration risk as high because its
customer base, product range, supply source, and diversification
are limited," Mr. Lu said. All of the company's production
facilities are in Bingzhou, Shangdong province, exposing it to
local economy and natural disaster risks.

Hongqiao faces key-man risk concerning Mr. Zhang Bo, the current
CEO and son of the founding shareholders. Mr. Zhang has played a
significant role in building up the company, which entered the
aluminum business as a small refiner in 2006.

"We believe Mr. Zhang and other family members will exert
significant influence on the future direction of the company due
to their strong presence on the board. An additional risk is
Hongqiao has yet to establish a track record with investors since
it only became a publicly listed company in March 2011," Mr. Lu
noted.

"We view Hongqiao's financial risk profile as significant for
three key reasons. First, the company's financial performances
have been volatile because of the global financial crisis and
significant debt-funded capacity expansion. Second, we project
high negative free operating cash flow over the next 12 months due
to planned capacity expansion. Finally, the company has a
concentrated debt maturity profile as the majority of its debt
matures in 2013," S&P stated.

"The stable outlook on the rating reflects our expectation that
Hongqiao will be able to complete its expansion projects on time
and within budget. At the same time, we assume the company can
achieve a ratio of funds from operations to total debt of at least
30% under our base-case assumption of an aluminum price of
US$1,985 per ton," S&P said.

S&P may lower the rating if: (1) Hongqiao's current cost
competitiveness weakens, lowering profitability; (2) management's
expansion plan becomes more aggressive than it expected and is
primarily debt funded; and (3) the company's ratio of funds from
operations to total debt drops below 30%.

"The rating upside in the next 12 months is limited. However, we
could consider raising the rating if: (1) Hongqiao materially
diversifies its supplier and customers and expands its product
offering to higher value-added downstream products, which
translate into better or more stable margins; and (2) the
company establishes some track record in financial management and
demonstrates its ability to withstand industry volatility," S&P
added.


CHINA SHANSUI: S&P Assigns 'BB-' Issue Rating on Notes Due 2014
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' issue rating
and 'cnBB+' Greater China credit scale rating to the proposed
senior unsecured notes due 2014 of China Shanshui Cement Group
Ltd. (Shanshui; BB/Stable/--; cnBBB-). "We also affirmed the long-
term corporate credit rating on the company.  The proposed issue
is rated one notch lower than the corporate credit rating on
Shanshui due to structural subordination risks. The rating on the
notes is subject to our review of the final issuance
documentation," S&P stated.

S&P understands that Shanshui intends to use the proceeds for
refinancing its borrowings and for general corporate purposes. "We
also believe that the company's expansion strategy is unchanged
since we assigned the initial rating in May 2011," S&P continued.

"In our view, although the proposed Chinese renminbi-denominated
notes issue has no immediate rating impact, the resultant net
increase in debt absorbs the buffer in the rating. Downward rating
pressure could arise if Shanshui fails to use the additional debt
to pay its short-term debt, but uses the proceeds to step up its
expansion plan. Downward triggers for the rating would be a
ratio of funds from operations to debt of less than 20% and a
debt-to-EBITDA ratio higher than 3.5x," S&P related.

The rating on Shanshui reflects S&P's opinion of the company's
aggressive growth strategy and its sensitivity to volatile product
prices and input costs. In addition, the company is exposed to the
competitive, cyclical, and high capital- and energy-intensive
nature of the industry in which it operates. Shanshui's strong
market position, reasonable geographic diversity, and efficient
operations compared with peers' partly offset these weaknesses.


================
H O N G  K O N G
================


ART TECH: Court to Hear Wind-Up Petition on August 17
-----------------------------------------------------
A petition to wind up the operations of Art Tech Holdings Limited
will be heard before the High Court of Hong Kong on Aug. 17, 2011,
at 9:30 a.m.

Chan Wai Man Raymond filed the petition against the company on
June 13, 2011.


CHEER FORCE: Court to Hear Wind-Up Petition on August 17
--------------------------------------------------------
A petition to wind up the operations of Cheer Force Limited will
be heard before the High Court of Hong Kong on Aug. 17, 2011, at
9:30 a.m.

Kwong Kin Lang Alfonso and Kwong Teresa Lai-Ning filed the
petition against the company on June 9, 2011.

The Petitioner's solicitors are:

          Bernard Wong & Co.
          Rooms 1101-6, Takshing House
          20 Des Voeux Road
          Central, Hong Kong


CHEER WISDOM: Court to Hear Wind-Up Petition on August 17
---------------------------------------------------------
A petition to wind up the operations of Cheer Wisdom Development
Limited will be heard before the High Court of Hong Kong on
Aug. 17, 2011, at 9:30 a.m.

Kwong Kin Lang Alfonso and Kwong Teresa Lai-Ning Limited filed the
petition against the company on June 9, 2011.

The Petitioner's solicitors are:

          Bernard Wong & Co.
          Rooms 1101-6, Takshing House
          20 Des Voeux Road
          Central, Hong Kong


EGANAGOLDPFEIL (HOLDINGS): First Meetings Slated For August 3
-------------------------------------------------------------
Creditors and contributories of Eganagoldpfeil (Holdings) Limited
will hold their first meetings on Aug. 3, 2011, at 9:30 a.m., and
11:00 a.m., respectively at the Auditorium, Duke of Windsor Social
Service Building, 1st Floor, 15 Hennessy Road, Wanchai, in Hong
Kong.

At the meeting, Edward Simon Middleton and Fergal Thomas Power,
the company's liquidators, will give a report on the company's
wind-up proceedings and property disposal.


EVER PROFIT: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on June 3, 2011, to
wind up the operations of Ever Profit Industries Limited.

The company's liquidator is:

          Mat Ng
          John Lees Associates
          20/F, Henley Building
          5 Queen's Road Central
          Hong Kong


GOLD OCEAN: Court Enters Wind-Up Order
--------------------------------------
The High Court of Hong Kong entered an order on May 13, 2011, to
wind up the operations of Gold Ocean Enterprises Limited.

The company's liquidator is Chiu Koon Shou.


HIP LIK: Court Enters Wind-Up Order
-----------------------------------
The High Court of Hong Kong entered an order on June 10, 2011, to
wind up the operations of Hip Lik (Hong Kong) Engineering Limited.

The company's liquidator is Chiu Koon Shou.


LOYAL TOP: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on June 8, 2011, to
wind up the operations of Loyal Top International Limited.

The company's liquidator is:

          Mat Ng
          John Lees Associates
          20/F, Henley Building
          5 Queen's Road Central
          Hong Kong


NEW COLOUR: First Meetings slated for July 25
---------------------------------------------
Contributories and creditors of New Colour International Limited
will hold their first meetings on July 25, 2011, at 2:00 p.m., and
2:30 p.m., respectively at Room 602, The Boys' and Girls' Clubs
Association of Hong Kong, 3 Lockhart Road, Wan Chai, in Hong Kong.

At the meeting, Yiu Cho Yan and Lai Jacqueline, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.


NUOVO DESIGN: Court Enters Wind-Up Order
----------------------------------------
The High Court of Hong Kong entered an order on June 2, 2011, to
wind up the operations of Nuovo Design Limited.

The company's liquidator is:

          Mat Ng
          John Lees Associates
          20/F, Henley Building
          5 Queen's Road Central
          Hong Kong


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I N D I A
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ADARSHA AUTOMOTIVES: CRISIL Assigns 'BB+' Rating to INR40MM Debt
----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Adarsha Automotives Pvt Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR40 Million Cash Credit         BB+/Stable (Assigned)
   INR40 Million Bank Guarantee      P4+ (Assigned)

The ratings reflect AAPL's average financial risk profile, marked
by small net worth, high ratio of total outside liabilities to
tangible net worth, and weak debt protection metrics, low
bargaining power with the principal Maruti Suzuki India Ltd (MSIL,
rated 'AAA/Stable/P1+' by CRISIL).  These rating weaknesses are
partially offset by strong demand for the passenger cars sold by
AAPL and AAPL's low exposure to inventory and debtor risks.

Outlook: Stable

CRISIL believes that AAPL will continue to benefit from its
position as a dealer for India's leading auto manufacturer, MSIL,
over the medium term.  The outlook may be revised to 'Positive' if
AAPL's financial risk profile improves significantly led by
substantial equity infusion and/or in case of sustained
improvement in its operating profitability. Conversely, the
outlook may be revised to 'Negative' if the company undertakes a
larger-than-expected debt-funded capital expenditure programme or
the company's profitability declines, most likely because of
intense competition.

                      About Adarsha Automotives

AAPL was incorporated in 2006 and is the authorised dealer for
MSIL's passenger cars since inception. The company has well-
equipped showrooms and service stations in Warangal, Adilabad, and
Karimnagar districts (all in Andhra Pradesh). The company sells
various four-wheelers models of MSIL, spare parts, and
accessories, and also undertakes vehicle servicing.

AAPL reported a profit after tax (PAT) of INR7 million on net
sales of INR828 million for 2009-10 (refers to financial year,
April 1 to March 31), as against a PAT of INR4 million on net
sales of INR442 million for 2008-09.


AFP MANUFACTURING: CRISIL Assigns 'BB' Rating to INR62MM Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to the long-term bank
facilities of AFP Manufacturing Company Pvt Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR62 Million Term Loan           BB/Stable (Assigned)
   INR53 Million Cash Credit         BB/Stable (Assigned)

The rating reflects AFP's susceptibility to intense industry
competition, small scale of operations, and limited track record
of operations. These rating weaknesses are partially offset by
AFP's extensive geographic reach, moderate financial risk profile,
marked by moderate gearing and healthy debt protection metrics,
diversified revenue and product profiles, and promoters' extensive
industry experience.

Outlook: Stable

CRISIL believes that AFP will continue to benefit over the medium
term from its promoters' extensive experience in manufacturing
namkeen and ready-to-eat snacks. Furthermore, AFP's financial risk
profile is expected to remain stable backed by its moderate cash
accruals. The outlook may be revised to 'Positive' if AFP
registers more-than-expected growth while maintaining its working
capital requirements, and if it reports higher-than-expected
profitability. Conversely, the outlook may be revised to
'Negative' if AFP undertakes an aggressive debt-funded capital
expenditure programme or its margins decline, leading to
constrained financial risk profile.

                     About AFP Manufacturing

Incorporated in 2007 by Mr. Anil Aggarwal, AFP manufactures
namkeens, ready-to-eat snacks, and bakery items such as rusks,
biscuits, sweets, and other confectionaries. The company's
products are marketed under its own brand, Aggarwal, and other
private brands. The company has two units in Bhiwadi (Rajasthan)
and Anantnag (Jammu & Kashmir) with an installed capacity of
11,000 tonnes per annum (tpa) and 1000 tpa, respectively.

The company has also been operating two restaurants, Shri Makhan
and Appointment, in New Delhi since 2010-11 (refers to financial
year, April 1 to March 31), which accounted for about 15% of the
company's total revenues in 2010-11. It also undertakes catering
orders for multinational companies in small proportion.

AFP reported a profit after tax (PAT) of INR7.0 million on net
sales of INR398.4 million for 2009-10, as against a net loss of
INR8.3 million on net sales of INR118.5 million for 2008-09.


HANUMAN INDUSTRIES: CRISIL Reaffirms 'P4+' Rating on INR100MM Loan
------------------------------------------------------------------
The ratings on the bank facilities of Hanuman Industries (HI, part
of the Sonpal group) continue to reflect the Sonpal group's
tender-based and low-value-added nature of operations, exposure to
customer concentration risks, and below-average financial risk
profile, marked by a small net worth, high total outside
liabilities to tangible net worth ratio, and weak interest
coverage ratio.  These rating weaknesses are partially offset by
the Sonpal group's healthy working capital management with low
inventory and debtor risks.

   Facilities                                Ratings
   ----------                                -------
   INR100 Million Foreign Bill Discounting   P4+ (Reaffirmed)
   INR100 Million Packing Credit             P4+ (Reaffirmed)

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of Sonpal Export Pvt Ltd (SEPL, rated
'BB-/Stable/P4+' by CRISIL) and HI, together referred to as the
Sonpal group, as both the entities are in a similar line of
business, owned by same promoters and have business and financial
fungibility.

                           About the Group

The Sonpal group comprises four entities that hull, sort, and
package sesame seeds for trading in the export market. The group
mainly caters to South-East Asian countries, such as South Korea,
Singapore, and Taiwan. The Sonpal group's four entities are SEPL,
HI, Shiv Industries, and Avadh Agri Exports.

SEPL was incorporated in 2004 and is engaged in hulling of natural
sesame seeds for the export market. The company exports to the
United Arab Emirates, the USA, South Korea, and Singapore, with
South Korea accounting for the major share of exports. SEPL has
capacity of 50 tonnes per day (tpd) for sorting and packaging of
hulled sesame seeds.

HI was established in 2003 as a proprietorship firm and
subsequently reconstituted as a partnership firm in 2007. Apart
from sorting, the firm primarily operates as a trader in sesame
seeds and other agricultural products in the export market.
Earlier, HI also manufactured tahina, a thick paste made from
crushing of sesame seeds and used as delicacy in various Middle
East countries. However, presently, it only sorts, packages, and
trades sesame seeds. HI has capacity of 50 tpd for sorting and
packaging of hulled sesame seeds.

For 2010-11 (refers to financial year, April 1 to March 31), HI
reported, on a provisional basis, a profit after tax (PAT) of
INR2.9 million on net sales of INR839.8 million. It reported a PAT
of INR2.7 million on net sales of INR270.3 million for 2009-10.


HEMA DYEING: CRISIL Reaffirms 'BB-' Rating on INR34.4MM LT Loan
---------------------------------------------------------------
CRISIL has reaffirmed its 'BB-/Stable/P4+' ratings to the bank
facilities of Hema Dyeing & Printing Mills Private Limited.

   Facilities                           Ratings
   ----------                           -------
   INR34.4 Million Long-Term Loan       BB-/Stable (Reaffirmed)
   INR50.0 Million Cash Credit          BB-/Stable (Reaffirmed)
   INR114.6 Million Proposed LT Bank    BB-/Stable (Reaffirmed)
                       Loan Facility
   INR1.0 Million Bank Guarantee        P4+ (Reaffirmed)

CRISIL's ratings on HDPML's bank facilities continue to reflect
HDPML's working capital intensive operations, and modest business
risk profile in the intensely competitive textile industry. These
rating weaknesses are partially offset by the benefits that HDPML
derives from its promoters' longstanding experience and
established relationships with its customers in the textiles
business.

Outlook: Stable

CRISIL believes that HDPML will maintain its credit risk profile,
backed by adequate cash accruals over the medium term. The outlook
may be revised to 'Positive' if the company registers higher-than-
expected revenue and earnings growth on the back of improved
realizations or higher demand for its products. Conversely, the
outlook may be revised to 'Negative' if HDPML's financial risk
profile deteriorates due to larger-than-expected, debt-funded
capital expenditure, or significant deterioration in its working
capital cycle.

Update

The revenues of the company are estimated to grow by 60% in 2010-
11 (refers to financial year, April 1 to March 31) driven by a 15%
increase in sales volumes and 35% increase in realization of the
fabric sold. The operating margins are estimated to remain flat at
around 11.0% in 2010-11 and would decline in 2011-12 as the prices
of fabric are not expected to increase commensurately with the
prices of yarn because of the company's limited pricing
flexibility.  The operations of the company continue to remain
working capital intensive with the company maintain inventory of
around four months and extending credit of around three months to
its customers. Though the gearing of the company remain moderate,
the net-worth is estimated to remain low at around INR110 million
as on March 31, 2011 thereby limiting its financial flexibility.

HDPML, on a provisional basis, reported a profit after tax (PAT)
of INR10 million on net sales of INR382 million for 2010-11
(refers to financial year, April 1 to March 31) against a PAT of
INR2 million on net sales of INR241 million for 2009-10.

                           About Hema Dyeing

Incorporated in 1994, HDPML specializes in blended fabrics. It is
promoted by Mr. S V Ramarao and family who have been traders of
fabric for more than 2 decades.  The company has its headquarters
in Mumbai (Maharashtra) and its plant at Mahape (Maharashtra).
HDPML currently has 102 weaving machines, with a capacity of
around 7.2 million metres of fabric per annum.


MATA RANI: CRISIL Reaffirms 'B+' Rating on INR120MM Cash Credit
--------------------------------------------------------------
The rating continues to reflect Mata Rani Impex Pvt Ltd's below-
average financial risk profile, marked by low net worth and weak
debt protection measures, and exposure to risks related to high
inventory levels, and fluctuations in the value of the Indian
rupee.  These rating weaknesses are partially offset by the
benefits that MRIPL's derives from its established marketing
network.

   Facilities                         Ratings
   ----------                         -------
   INR120.0 Million Cash Credit       B+/Stable (Reaffirmed)

Outlook: Stable

CRISIL expects MRIPL's credit risk profile to remain stable over
the medium term, backed by moderate revenue growth. The outlook
may be revised to 'Positive' if MRIPL receives substantial equity
infusion, or if its working capital management improves
substantially. Conversely, the outlook may be revised to
'Negative' if MRIPL's large debt-funded capital expenditure
programme impacts its debt protection measures substantially, or
if the company's profitability declines materially due to
volatility in the prices of raw material prices.

Update

MRIPL's revenue in 2010-11 (refers to financial year, April 1 to
March 31) is estimated to have increased by around 25% compared to
revenue in 2009-10, which is in line with CRISIL's expectation.
The operating profitability of the company has somewhat improved
to around 3.7%, primarily led by change in its product profile as
solar products' share in company's revenue has increased. However,
the company's financial risk profile continues to remain weak.
Despite equity infusion, MRIPL's net worth remains small and its
gearing remains high. Company's interest coverage was thin at
around 1.7 times in 2010-11, as the company's reliance on working
capital borrowings remains high. The liquidity profile of the
company remains stretched; the company's average bank limit
utilization during the 12 months period ended March 2011 was
almost 100%, as there were frequent overdrawals for short period
of time.

                         About Mata Rani

MRIPL, incorporated in 2007 by Mr. Rakesh Kohli, trades in
electro-galvanized iron wire, solar products, and mobile
accessories imported from China.  The company sells these products
through its dealer network in Maharashtra, Delhi, Punjab, and
Haryana. The company is a registered vendor of Garware Wall Ropes
Ltd, and supplies steel wire ropes, Gabion wire, and geonets to
GWRL.

MRIPL reported a profit after tax (PAT) of INR6 million on net
sales of INR610 million for 2009-10, against a PAT of INR3 million
on net sales of INR346 million for 2008-09.


PAVAN INDUSTRIES: CRISIL Assigns 'B' Rating to INR60MM Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to the bank
facilities of Pavan Industries.

   Facilities                          Ratings
   ----------                          -------
   INR60 Million Cash Credit           B/Stable (Assigned)
   INR35 Million Bill Discounting      P4 (Assigned)

The ratings reflect Pavan's weak financial risk profile, marked by
a small net worth, a high gearing, and weak debt protection
metrics, small scale of operations, large working capital
requirements, and exposure to risks related to unfavorable changes
in government policy on cotton.  These rating weaknesses are
partially offset by the extensive experience of Pavan's promoters
in the cotton ginning industry.

Outlook: Stable

CRISIL believes that Pavan's scale of operations will remain
small, and the firm's financial risk profile, weak, because of its
small networth and high gearing. The outlook may be revised to
'Positive' if Pavan scales up its operations and improves its
capital structure, most likely through fresh equity infusion.
Conversely, the outlook may be revised to 'Negative' if Pavan's
liquidity weakens significantly, most likely because of less-than-
expected cash accruals, or if the firm undertakes a large, debt-
funded capital expenditure, further weakening its capital
structure.

                     About Pavan Industries

Pavan was set up in 2001 as a proprietorship firm by Mrs. Kalpana
Kiran, who, along with her husband, Mr. R Venkataramana, manages
the operations of the firm. Pavan is engaged in cotton ginning and
also trades in cotton lint. Its processing facility is in Guntur
(Andhra Pradesh).

Pavan's profit after tax (PAT) is estimated at INR1.8 million on
net sales of INR216 million for 2010-11 (refers to financial year,
April 1 to March 31), against a PAT of INR1.4 million on net sales
of INR150 million for 2009-10.


PINK STAR: CRISIL Reaffirms 'B' Rating on INR25.3MM Term Loan
-------------------------------------------------------------
CRISIL's rating on the bank facilities of Pink Star reflects the
company's weak financial risk profile, marked by a small net
worth, a high gearing, and weak debt protection metrics, and small
scale of operations.

  Facilities                                 Ratings
  ----------                                 -------
  INR25.30 Million Working Capital Term Loan B/Stable (Reaffirmed)
  INR40.00 Million Export Packing Credit     B/Stable (Reaffirmed)
  INR170.00 Million Post-Shipment Credit     B/Stable (Reaffirmed)
  INR8.50 Million Proposed Long-Term Bank    B/Stable (Assigned)
          Loan Facility

These rating weaknesses are partially offset by the extensive
experience of Pink Star's partners in the diamond cutting and
polishing business.

Update

In 2010-11 (refers to financial year, April 1 to March 31), Pink
Star reported sales of INR630 million with an operating margin of
4.3%. The firm's liquidity remains weak, with its bank limits
remaining fully utilised mainly because of large working capital
requirements. As on March 31, 2011, Pink Star had gross current
assets of 265 days. The firm's total outside liabilities to
tangible net worth ratio improved marginally to around 2.4 times
as on March 31, 2011 as compared to 2.5 times as on
March 31, 2010. Pink Star's gearing also reduced marginally to 1.8
times as on March 31, 2011 as compared to 1.96 times as on
March 31, 2010. The improvement was because of a reduction in the
firm's outstanding term loan. As on March 31, 2010, Pink Star had
a term loan of INR33.8 million, which has reduced to INR25.3
million as on May 31, 2011.

Outlook: Stable

CRISIL believes that Pink Star will continue to benefit over the
medium term from its partners' over three decades of experience in
the diamond industry. The outlook may be revised to 'Positive' if
Pink Star generates more-than-expected cash accruals and improves
its working capital cycle. Conversely, the outlook may be revised
to 'Negative' in case of significant decline in Pink Star's sales
or lengthening of the firm's working capital cycle.

                         About Pink Star

Set up in 1977, Pink Star is the flagship entity of the Shreeji
group, which is a family-run business. The firm manufactures and
exports cut and polished diamonds. It is currently managed by Mr.
Pravin Shah and Mr. Pratik Shah.

Pink Star reported a provisional profit after tax (PAT) of INR6.1
million on net sales of INR630 million for 2010-11, against a PAT
of INR6.0 million on net sales of INR620.8 million for 2009-10.


RAI SAHEB: CRISIL Reaffirms 'B' Rating on INR820.9MM Term Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of The Rai Saheb Rekhchand
Mohata Spg. & Wvg. Mills Ltd continue to reflect RSR's constrained
financial risk profile, because of large working capital
requirements and ongoing, debt-funded capital expenditure (capex)
programme, despite moderate improvement in the company's business
performance in 2010-11 (refers to financial year, April 1 to
March 31). These rating weaknesses are partially offset by the
extensive industry experience of RSR's promoters, and the
company's longstanding customer relationships.

   Facilities                         Ratings
   ----------                         -------
   INR820.9 Million Term Loan         B/Stable (Reaffirmed)
   INR245 Million Cash Credit         B/Stable (Reaffirmed)
   INR55 Mil. Standby Line of Credit  B/Stable (Reaffirmed)
   INR10 Million Bank Guarantee       P4 (Reaffirmed)
   INR50 Million Short-Term Loan      P4 (Reaffirmed)
   INR50 Million Letter of Credit     P4 (Reaffirmed)

Outlook: Stable

CRISIL believes that RSR's financial risk profile will remain weak
over the medium term, because of the company's ongoing debt-funded
capex programme and working-capital-intensive operations. However
the company's business performance is expected to improve
supported by higher trade sales and benefits of capacity
expansion. The outlook may be revised to 'Positive' in case of
significant and sustained improvement in RSR's cash accruals
resulting in improvement in the company's capital structure and
debt protection metrics. Conversely, the outlook may be revised to
'Negative' in case of lower-than-expected profits, or if the
company undertakes larger-than-expected debt-funded capex
programmes, resulting in further increase in gearing.

                          About Rai Saheb

Incorporated in 1898, RSR manufactures cotton, polyester, and
viscose yarn and fabric. The company has two manufacturing units,
both in Hinganghat (Maharashtra); it utilises over 95% of its
production capacity. RSR had capacity of 37,700 spindles and 240
looms as on March 31, 2011. The company was the first integrated
textile mill in the Vidarbha region of Central India. Mr. Vinod
Kumar Mohota is the managing director of the company.

For 2010-11, RSR, on a provisional basis, reported a profit after
tax of INR10.8 million on total revenues of INR2.4 billion,
against a net loss of INR22.3 million on total revenues of INR1.9
billion for the previous year.


RAM BUILDERS: CRISIL Reaffirms 'BB' Rating on INR25MM Facility
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Ram Builders continue
to reflect RB's exposure to risks related to limited project
diversity, geographic concentration in its revenue profile,
susceptibility to inherent risks in its tender-driven business,
and its small scale of operations in the intensely competitive
civil construction industry. These rating weaknesses are partially
offset by RB's comfortable financial risk profile marked by
moderate gearing and healthy debt protection measures, and its
moderate order book.

   Facilities                            Ratings
   ----------                            -------
   INR25.0 Million Overdraft Facility    BB/Stable (Reaffirmed)
   INR50.0 Million Bank Guarantee        P4+ (Reaffirmed)

Outlook: Stable

CRISIL believes that RB will maintain its healthy debt protection
measures over the medium term. The outlook may be revised to
'Positive' if the firm's revenues increase significantly, without
considerable deterioration in its profitability or capital
structure. Conversely, the outlook may be revised to 'Negative' if
RB's financial risk profile deteriorates because of large debt-
funded capital expenditure or exposure to real estate projects.

Update

RB's revenues were at INR239 million in 2010-11 (refers to
financial year, April 1 to March 31), as against INR390 million in
2009-10, a decline of 38%, largely because of reduced order
execution adversely impacting its business risk profile during
2010-11.  However, RB's operating profit margin remained stable at
5.6% in 2010-11, as against 5.4% in the previous year. CRISIL
expects RB to achieve revenues of about INR300 million to INR350
million in 2011-12, supported by its order book as of April 30,
2011 of around INR560 million (includes an order of INR450
million, wherein it is declared as an L1 bidder, which is to be
executed till 2013-14).

RB's financial risk profile remains comfortable with healthy debt
protection metrics and low gearing. It had an interest coverage
ratio of 5.4 times and a net cash accruals to total debt (NCATD)
ratio of 0.33 times, coupled with a gearing of 0.55 times as on
March 31, 2011.  The firm's gearing is expected to remain low, in
the range of 0.4 to 0.6 times over the medium term, supported by
cash accruals being added to the net worth with minimal or no
capital withdrawal.

RB's working capital requirements have increased in 2010-11, with
gross current asset level of 149 days, against 120 days a year
earlier. CRISIL believes that RB's working capital requirements
will increase with the expected increase in its sales; the working
capital requirements will, however, be supported by internal
accruals.

RB's liquidity remains more than adequate, with net cash accruals
estimated to be in the range of INR80 million to INR120 million
over the medium term, against which it has no fixed debt
obligations. Furthermore, its bank limits of INR25 million also
was rarely utilized over the past 12 months ended May 2011, more
over thrice during this period resulting in average utilization of
7%.

RB has reported on a provisional basis reported a profit after tax
(PAT) of INR8 million on net sales of INR239 million for 2010-11,
as against a PAT of INR10 million on net sales of INR385 million
for 2009-10.

                        About Ram Builders

Set up in 1972 by Mr. Jayantilal Varma, RB is in the civil
construction business. The Mumbai-based firm predominantly
undertakes storm-water drainage and road construction projects.
RB is registered with various government agencies, including
Maharashtra Public Works Department, Maharashtra State Road
Development Corporation, and Brihan-Mumbai Municipal Corporation.


RUKMANI FERRO: CRISIL Assigns 'D' Rating to INR41.4MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'D' rating to the bank facilities of
Rukmani Ferro Pvt Ltd.  The rating reflects instances of delay by
RFPL in servicing its debt; the delays are on account of RFPL's
weak liquidity.

   Facilities                         Ratings
   ----------                         -------
   INR41.4 Million Cash Credit        D (Assigned)
   INR35 Million Term Loan            D (Assigned)

RFPL has a weak financial risk profile, marked by high gearing,
weak debt protection metrics, and small net worth, operates on a
small scale, and is exposed to risks related to customer
concentration in its revenue profile. These weaknesses are
partially offset by the extensive experience of RFPL's promoters
in the steel industry.

Incorporated in 2009, RFPL manufactures steel ingots used in the
manufacture of thermo-mechanically-treated bars. The company's
plant in Aligarh (Uttar Pradesh) has a capacity of 15,000 tonnes
per annum.

RFPL reported a profit after tax (PAT) of INR0.2 million on net
sales of INR194.2 million for 2009-10.


SHASHI SIDNAL: CRISIL Assigns 'D' Rating to INR118.4MM LT Loan
---------------------------------------------------------------
CRISIL has downgraded its rating on the bank facility of Shashi
Sidnal Foods Pvt Ltd to 'D' from 'BB-/Stable'.

   Facilities                           Ratings
   ----------                           -------
   INR5.00 Million Cash Credit          D (Assigned))

   INR118.40 Million Long Term Loan     D (Downgraded from
   (Enhanced from INR99.00 Million)       BB-/Stable')

   INR0.60 Mil. Proposed Cash Credit    D (Assigned)
                               Limit

The downgrade reflects instances of delay by SSFPL in servicing
its debt; the delays have been caused by the company's weak
liquidity. SSFPL's liquidity has weakened significantly since the
past quarter of 2010-11 (refers to financial year, April 1 to
March 31); this is because of decline in the company's capacity
utilization and resultant increase in its working capital
requirements.

SSFPL has a weak financial risk profile, marked by a high gearing
and weak debt protection metrics, and its operations are in the
start-up phase. Moreover, the company is susceptible to customer
concentration in its revenue profile.  However, SSFPL benefits
from its tie-up with Parle Products Pvt Ltd for offtake of
products.

                       About Shashi Sidnal

Incorporated in 2008, SSFPL is promoted by Mr. Shashikant S
Sidnal. It commenced commercial operations in August 2010 and
manufactures biscuits on contract basis for Parle. The company's
facility in Belgaum (Karnataka) can manufacture about 2000 tonnes
of Parle-G glucose biscuits, and about 1000 tonnes of Parle cream
biscuits per month.

The promoter also owns three proprietorship concerns, Indrajeet
Warehousing Corporation, Nandini Warehousing Corporation, and
Digvijay Logistics, which have been undertaking warehousing and
logistics activities for Parle for the past two decades. SSFPL
posted a provisional net loss of INR2 million on net sales of
INR24 million for 2010-11.


SHREE VENKATESHWARA: CRISIL Reaffirms 'D' Rating on INR178MM Loan
-----------------------------------------------------------------
CRISIL's rating on the INR178-million long-term bank loan facility
of Shree Venkateshwara Sponge & Power Pvt Ltd continues to reflect
SVSPPL's continuing delays in servicing the loan-SVSPPL has been
in default for over the 12 months through May 2011.  The delays
are being caused by the Venkateshwara group's weak liquidity.

   Facilities                               Ratings
   ----------                               -------
   INR178 Million Term Loan                 D (Reaffirmed)
   INR65 Million Cash Credit Limit          C (Reaffirmed)
   INR60 Million Bills Discounting Limit    P4 (Reaffirmed)
   INR50 Million Letter of Credit Limit     P4 (Reaffirmed)

The ratings on the other above-mentioned bank facilities continue
to reflect the Venkateshwara group's below-average financial risk
profile marked by high gearing, small net worth, weak liquidity,
and weak debt protection metrics. These rating weaknesses are
partially offset by the group's moderate operating efficiencies,
supported by operational synergies among the group entities, and
the industry experience of its management team.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SVSPPL and Tapal Steel Pvt Ltd,
together referred to as the Venkateshwara group. This is because
the two companies have operational and financial linkages (fund
transactions) with each other.

                         About the Group

Promoted by Mr. Bhavani Prasad in 2005, the Venkateshwara group
manufactures sponge iron and steel ingots. TSPL (name changed from
Lakshmi Kalyani Ingots Pvt Ltd in January 2010), which
manufactures steel ingots and thermo-mechanically-treated (TMT)
bars, has a production capacity of 22,500 tonnes per annum (tpa)
for steel ingots and 72,000 tpa for TMT bars. SVSPPL, which
manufactures sponge iron, has a production capacity of 50,000 tpa.
Around 30% of SVSPPL's production is supplied to TSPL.

The Venkateshwara group reported, on provisional basis, a net loss
of INR20.0 million on net sales of INR469.5 million for 2009-10
(refers to financial year, April 1 to March 31); the group
reported a net loss of INR21.8 million on net sales of INR555.1
million for 2008-09.

SVSPPL reported, on provisional basis, a profit after tax (PAT) of
INR7.4 million on net sales of INR340.7 million for 2009-10; it
reported a net loss of INR24.1 million on net sales of INR321.6
million for 2008-09.

For 2009-10, TSPL, on a provisional basis, reported a net loss of
INR27.3 million on net sales of INR129.9 million; it had reported
a net loss of INR17.7 million on net sales of INR233.5 million for
2008-09.


SISCO RESEARCH: CRISIL Reaffirms 'BB-' Rating on INR20MM Term Loan
------------------------------------------------------------------
CRISIL ratings on Sisco Research Laboratories Pvt Ltd's bank
facilities continue to reflect SRLPL's small scale of operations
and working capital intensive nature of operations.

   Facilities                         Ratings
   ----------                         -------
   INR20 Million Rupee Term Loan      BB-/Stable (Reaffirmed)
   INR41.5 Million Cash Credit        BB-/Stable (Reaffirmed)
   INR1 Million Bank Guarantee        P4+ (Reaffirmed)
   INR1 Million Bill Purchase-Disc.   P4+ (Reaffirmed)
                          Facility
   INR2.5 Million Packing Credit      P4+ (Reaffirmed)

These rating weaknesses are partially offset by SRLPL's
established market position and promoters' experience in the
laboratory chemical business, and moderate financial risk profile
marked by a moderate gearing and debt protection measures.

Outlook: Stable

CRISIL believes that SRLPL will continue to benefit from its
established customer relationships and moderate gearing over the
medium term. The outlook may be revised to 'Positive' if the
company improves its working capital management, and increases its
scale of operations substantially, while sustaining profitability.
Conversely, the outlook may be revised to 'Negative' if the
company's working capital stretches materially, further
constraining its liquidity, or if SRLPL undertakes any large debt-
funded capex programme resulting in weaker financial risk profile.

                        About Sisco Research

Set up in 1974, SRLPL manufactures laboratory chemicals that
include organic and inorganic reagents, speciality chemicals, and
bio chemicals. The company is managed by Mr. Surendra Agarwal, his
son Mr. Ramesh Agarwal and grandson Mr. Akash Agarwal. SRLPL has a
combined manufacturing capacity of around 0.3 million kilolitre
per annum (klpa) at its facilities near Mumbai. SRLPL manufactures
around 4000 types of chemicals and caters to the end-users in the
educational, research, pharmaceuticals, fast-moving consumer goods
(FMCGs) and defense (laboratories) sectors.

SRLPL reported a profit after tax (PAT) of INR5.9 million on
estimated net sales of INR142.6 million for 2009-10, against a
reported PAT of INR6.2 million on net sales of INR142.5 million
for 2008-09. The company has reported provisional net sales of
INR157.8 million in 2010-11.


SONPAL EXPORTS: CRISIL Assigns 'BB-' Rating to INR6MM Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of Sonpal Export Pvt Ltd.

   Facilities                          Ratings
   ----------                          -------
   INR220 Million Cash Credit          BB-/Stable(Assigned)
   INR6 Million Rupee Term Loan        BB-/Stable(Assigned)
   INR7.6 Million Proposed Long Term   BB-/Stable(Assigned)
                  Bank Loan Facility
   INR100 Million Bank Guarantee       P4+(Assigned)

The ratings reflect the Sonpal group's healthy working capital
management with low inventory and debtor risks. These rating
strengths are partially offset by the Sonpal group's tender-based
and low value-added nature of operations, customer concentrated
revenue profile, and below-average financial risk profile marked
by a small net worth, a high total outside liabilities to tangible
net worth ratio, and a weak interest coverage ratio.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of SEPL and Hanuman Industries (HI; rated
'P4+' by CRISIL), together referred to as the Sonpal group, as
both the entities are in a similar line of business, owned by the
same promoters, and have fungible cash flows between them.

Outlook: Stable

CRISIL believes that the Sonpal group will benefit over the medium
term from its stable revenue growth and its promoters' extensive
experience in trading sesame seeds. The outlook may be revised to
'Positive' if the Sonpal group significantly improves its
financial risk profile because of significant improvement in
profitability, or substantially diversifies its customer profile.
Conversely, the outlook may be revised to 'Negative' in case of
lower-than-expected operating revenues and margin, deterioration
in the Sonpal group's working capital management, or significant
withdrawal of capital from HI.

                       About Sonpal Export

The Sonpal group comprises four entities that hull, sort, and
package sesame seeds for trading in the export market. The group
mainly caters to Southeast Asian countries, such as South Korea,
Singapore, and Taiwan. The Sonpal group's four entities are SEPL,
HI, Shiv Industries, and Avadh Agri Exports.

SEPL was incorporated in 2004 and is engaged in hulling of natural
sesame seeds for the export market. The company exports to the
UAE, the US, South Korea, and Singapore, with South Korea
accounting for the major share of exports. SEPL has capacity of
50 tonnes per day (tpd) for sorting and packaging of hulled sesame
seeds.

HI was set up in 2003 as a proprietorship concern and was
subsequently reconstituted as a partnership firm in 2007. Apart
from sorting, the firm primarily operates as a trader in sesame
seeds and other agricultural products in the export market.
Earlier, HI also manufactured tahina, a thick paste made from
crushing of sesame seeds and used as a delicacy in various Middle
East countries. However, presently, it only sorts, packages, and
trades sesame seeds. HI has capacity of 50 tpd for sorting and
packaging of hulled sesame seeds.

For 2010-11 (refers to financial year, April 1 to March 31), SEPL
reported, on a provisional basis, a profit after tax (PAT) of
INR4.1 million on net sales of INR1825.5 million. It reported a
PAT of INR3.4 million on net sales of INR515.3 million for
2009-10.


TAPAL STEEL: CRISIL Reaffirms 'D' Rating on INR133MM Term Loan
--------------------------------------------------------------
CRISIL's rating on the bank facilities of Tapal Steel Pvt Ltd
continues to reflect the likelihood of delay by TSPL in servicing
its debt obligations due to weak liquidity.

   Facilities                        Ratings
   ----------                        -------
   INR133 Million Term Loan          D (Reaffirmed)
   INR60 Million Cash Credit Limit   C (Reaffirmed)

The ratings also reflect the Venkateshwara group's below-average
financial risk profile marked by high gearing, small net worth,
and weak liquidity and debt protection metrics. This rating
weakness is partially offset by the group's moderate operating
efficiencies, supported by operational synergies among group
entities, and its experienced management.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of TSPL and Shree Venkateshwara Sponge &
Power Pvt Ltd, together referred to as the Venkateshwara group.
This is because the two companies have operational and financial
linkages (fund transactions) with each other.

                           About the Group

Promoted by Mr. Bhavani Prasad in 2005, the Venkateshwara group
manufactures sponge iron and steel ingots. TSPL (name changed from
Lakshmi Kalyani Ingots Pvt Ltd in January 2010), which
manufactures steel ingots and thermo-mechanically-treated (TMT)
bars, has a production capacity of 22,500 tonnes per annum (tpa)
for steel ingots and 72,000 tpa for TMT bars. SVSPPL, which
manufactures sponge iron, has a production capacity of 50,000 tpa.
Around 30% of SVSPPL's production is supplied to TSPL.

The Venkateshwara group reported, on provisional basis, a net loss
of INR20.0 million on net sales of INR469.5 million for 2009-10
(refers to financial year, April 1 to March 31); the group
reported a net loss of INR21.8 million on net sales of INR555.1
million for 2008-09.

SVSPPL reported, on provisional basis, a profit after tax (PAT) of
INR7.4 million on net sales of INR340.7 million for 2009-10; it
reported a net loss of INR24.1 million on net sales of INR321.6
million for 2008-09.

For 2009-10, TSPL, on a provisional basis, reported a net loss of
INR27.3 million on net sales of INR129.9 million; it had reported
a net loss of INR17.7 million on net sales of INR233.5 million for
2008-09.


VEL GANESH: CRISIL Rates INR105 Million Rupee Term Loan at 'B'
--------------------------------------------------------------
CRISIL has assigned its 'B/Stable' rating to the rupee term loan
facility of Vel Ganesh Educational Trust.

   Facilities                          Ratings
   ----------                          -------
   INR105 Million Rupee Term Loan      B/Stable (Assigned)

The rating reflects VGET's below-average financial risk profile,
marked by modest corpus, high gearing and weak liquidity, because
of its short track record, and its susceptibility to adverse
regulatory changes. These rating weaknesses are partially offset
by VGET's trustees' extensive experience in the education sector,
the trust's established position in Chennai (Tamil Nadu), and the
benefits it is likely to derive from the significant demand for
quality education in the education sector.

Outlook: Stable

CRISIL believes that VGET will continue to benefit from the
industry experience of its trustees and its established position
in Chennai. The outlook may be revised to 'Positive' if VGET
scales up its operations and improves its cash flow management.
Conversely, the outlook may be revised to 'Negative' if VGET
reports a decline in surpluses, or undertakes a large, debt-funded
capital expenditure programme, adversely affecting its liquidity.

Set up in 2007 in Chennai by Mr. Ishari K. Ganesh and his family,
VGET operates the Vels International School (Billabong High). The
school is affiliated to both, the Council for The Indian School
Certificate Examinations (CISCE) and the International General
Certificate of Secondary Education (IGCSE). The school's first
academic year was 2008-09 (June to May), which commenced with the
CISCE-affiliated programme - for this programme, the school
operates from Grade I to Grade X. The first academic year for the
IGCSE-affiliated programme is 2011-12 (June to May) and this
programme is for Grade V to Grade X. The school also has
collaborations with the University of Cambridge and Billanook
College (Australia) for the IGCSE programme. About 936 students
have been admitted for the academic year 2011-12.

For 2010-11 (refers to financial year, April 1 to March 31),
VGET's surplus and fee receipts are estimated at INR21.6 million
and INR77.5 million respectively; the trust reported a surplus of
INR19.0 million on fee receipts of INR62.3 million for the
preceding year.


VIJAY SABRE: CRISIL Assigns 'B' Rating to INR80MM Cash Credit
-------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of Vijay
Sabre Safety Pvt Ltd at 'B/Stable/P4'.  CRISIL had revised its
rating outlook on the long-term bank facilities of Vijay Sabre to
'Stable' from 'Negative', on May 6, 2011.

   Facilities                             Ratings
   ----------                             -------
   INR80 Million Cash Credit              B/Stable
   (Enhanced from INR45 Million)
   INR5 Million Standby Line of Credit    B/Stable (Assigned)
   INR50 Million Bank Guarantee           P4 (Assigned)
   INR50 Million Letter of Credit         P4 (Assigned)

The ratings continues to reflect Vijay Sabre's stretched liquidity
because of high receivables and inventory levels, small scale of
operations, and exposure to intense competition in the safety
systems industry. These rating weaknesses are partially offset by
the benefits that Vijay Sabre derives from its promoters'
experience of Vijay Sabre's promoters in the safety systems
manufacturing business, and the company's moderate financial risk
profile marked by a low gearing.

Outlook: Stable

CRISIL believes that Vijay Sabre will maintain its financial risk
profile over the medium term, backed by improvement in its
liquidity with the recent enhancement of its bank facilities
providing financial cushion. The business risk profile is expected
to be supported by healthy growth in its revenues driven by new
product additions during this period. The outlook may be revised
to 'Positive' in case higher-than-expected sales growth, better-
than-expected profitability, and improved working capital
management, result in improvement in the company's financial risk
profile.  Conversely, the outlook may be revised to 'Negative' if
significant delays in recovery of receivables adversely impact
Vijay Sabre's liquidity, or larger-than-expected, debt-funded
capital expenditure results in deterioration in the company's
financial risk profile.

                        About Vijay Sabre

Incorporated in 1985 as a private limited company, Vijay Sabre is
promoted by Mr. Jeetendra Salot and family. The company was
reconstituted as a public limited company in 2002 and as a private
limited company in 2003. Vijay Sabre manufactures personal
protection equipment such as respiratory masks, protective suits,
vests, industrial safety helmets, and masks. The company's
manufacturing facilities are at Silvassa (Union Territory of Dadra
and Nagar Haveli). Vijay Sabre has a technical collaboration with
Scott Health & Safety Ltd, UK.

Vijay Sabre is estimated to report a profit after tax (PAT) of
around INR20 million on net sales of INR350 million for 2010-11,
against a PAT of INR8 million on net sales of INR176 million for
2009-10.


=========
J A P A N
=========


AIFUL CORPORATION: Moody's Withdraws 'Caa1' Ratings
---------------------------------------------------
Moody's Japan K.K. has withdrawn its ratings for Aiful Corporation
because of incorrect, insufficient or otherwise inadequate
information.

The ratings are its Caa1 long-term senior unsecured debt, (P)Caa1
unsecured medium term note (MTN), and Caa1 issuer ratings.

The ratings had a negative outlook.

Rating Rationale

The credit rating has been withdrawn because Moody's believes it
has insufficient or otherwise inadequate information to support
the maintenance of the credit rating.

The principal methodologies used in this rating were "Analyzing
the Credit Risks of Finance Companies: Rating Methodology",
published on Sept. 30, 2010, and available on
http://www.moodys.co.jp/.

Aiful Corporation, headquartered in Kyoto, was established in
1967.  It is a major and specialized consumer finance company in
Japan.  Its consolidated total assets were approximately JPY858
billion as of March 2011.


CAFES 2: S&P Lowers Rating on Class E Trust Certificates to 'B-'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'B- (sf)' from 'BB
(sf)' its rating on the class E floating-rate trust certificates
issued under the Cafes 2 transaction, and placed the rating on
CreditWatch with negative implications. "At the same time, we
affirmed our ratings on the class C and D trust certificates
issued under the same transaction," S&P related.

Of the nine loans that originally backed the trust certificates,
only a single loan maturing in July 2011 and backed by an office
building in Chuo Ward, Tokyo remains. Although the borrower is
pursuing efforts to secure refinancing, uncertainty remains over
the realization of the refinancing plan and its timing.

"The rating actions reflect our view that the principal on the
lowest-level class E could be partly impaired if the transaction's
remaining loan were to default," S&P stated.

The transaction's remaining loan has a relatively low loan-to-
value ratio. "Accordingly, we see a reasonable possibility that
the outstanding loan balance could be fully recovered even if the
loan were to default," S&P related. Nevertheless, S&P believes
that the principal on class E could be partly impaired because:

    Under this transaction, if the remaining loan defaults,
    default interest and the reserve established under the trust
    account to pay transaction fees are set to be used to pay
    special servicer fees, and the loan principal is set to be
    used to cover any shortfall that could arise between the
    amount of special servicer fees and the sum of the default
    interest amount and reserve amount. (A shortfall could arise
    if the special servicer completes collection activities
    shortly after a loan default because the shorter the duration
    between the default and the loan recovery, the lower the
    default interest amount. Default interest is paid from the
    loan default until its recovery.) Hence, should the amount of
    special servicer fees payable exceed the sum of the default
    interest amount and reserve amount, class E could incur a
    principal loss even if the loan principal were fully\
    recovered.

"It is our view that the principal on the class E trust
certificates would likely be impaired if the loan were to default
and the special servicer were to complete collection operations
within about two months after the default. Although, in general,
servicers are rarely able to complete collection operations
through such means as collateral liquidation in less than two
months, we see a fair possibility that the borrower could use
refinancing to repay the loan in full shortly after a default,"
S&P stated.

"We are aware that: (1) the borrower is pursuing efforts to secure
refinancing; and (2) if the borrower repays the loan after the
loan maturity date, the servicer is scheduled to receive servicer
fees. In addition, because only a single loan remains in this
transaction, the transaction will end when the loan is fully
recovered. Accordingly, future cash flow will not be used to
cover any remaining amount payable," S&P said.

"We intend to review our ratings after considering the timing of
the loan refinancing, as well as the progress of loan recovery
operations should the loan be transferred to a special servicer,"
S&P related.

"On Feb. 16, 2011, we raised our ratings on the class C to E trust
certificates because the class A and B trust certificates were
fully redeemed earlier that month, which boosted credit
enhancement levels for the lower-level tranches (see the media
release, 'Ratings On Three Classes Of Cafes 2 Raised; Rating On
Class X Withdrawn,' published Feb. 16, 2011, on RatingsDirect on
the Global Credit Portal). We affirmed our ratings on classes C
and D because we do not expect the factors relating to the
remaining loan to affect the ratings on these two classes," S&P
continued.

Cafes 2 is a multiborrower commercial mortgage-backed securities
(CMBS) transaction originally backed by nine nonrecourse loans
secured by 29 real estate properties. The transaction was arranged
by Credit Agricole Securities Asia B.V., Tokyo Branch (formerly,
Calyon Capital Markets Asia B.V., Tokyo Branch), and ORIX Asset
Management & Loan Services Corp. acts as the servicer for this
transaction.

"The ratings reflect our opinion on the likelihood of the full
payment of interest and ultimate payment of principal by the
transaction's legal final maturity date in August 2013 for the
class C to E trust certificates," S&P added.

Rating Lowered, Placed On Creditwatch Negative

Cafes 2
JPY16.4 billion floating-rate
trust certificates due August 2013

Class   To                  From      Initial issue amount
E       B- (sf)/Watch Neg   BB (sf)   �0.16 bil.

Ratings Affirmed

Class    Rating      Initial issue amount
C        AAA (sf)    JPY1.45 bil.
D        BBB- (sf)   JPY0.96 bil.

The issue date of this transaction was Oct. 20, 2006.


TOKYO ELECTRIC: Quick Passage of Bill Needed, Bankers Chief Say
---------------------------------------------------------------
Bloomberg News reports that Japanese Bankers Association Chairman
Katsunori Nagayasu said the Diet must pass a nuclear compensation
bill within two months before banks including Mitsubishi UFJ
Financial Group Inc. offer new loans to Tokyo Electric Power Co.

Bloomberg relates that Mr. Nagayasu said passage of the bill,
along with government loan guarantees, is a prerequisite for banks
to provide credit to TEPCO.  The utility is unlikely to suffer a
shortage of funds in the year through March, given that it
received emergency loans after the record earthquake, Mr. Nagayasu
said.

Opposition parties have said Prime Minister Naoto Kan's proposed
law, which aims to restructure the utility and secure funds for
compensation to be paid to victims of the nuclear disaster, needs
amendment, Bloomberg notes.

"The bill must be passed in August at the latest, and it needs a
speedy deliberation and approval because the country's
reconstruction has to proceed quickly," Bloomberg quotes
Mr. Nagayasu as saying.  "Without the law, new money from
financial institutions to Tepco would be very difficult."

Under the draft law, Bloomberg discloses, Japan will create a body
to handle claims against TEPCO amid the worst nuclear crisis in 25
years.  The third-party entity will issue bonds to fund
compensation, be allowed to acquire assets owned by the utility,
and receive bank loans that are guaranteed by the government,
according to the bill.

Prime Minister Kan's Cabinet approved the compensation bill on
May 13.  The legislation was sent to the Diet a month later,
Bloomberg notes.

                           About TEPCO

Tokyo Electric Power Company (TEPCO) is the largest electric
power company in Japan and the largest privately owned electric
utility in the world.  TEPCO supplies electricity to meet the
increasingly diversified and sophisticated demands of its over
28.09 million customers in the metropolitan Tokyo, which is the
political, economic, and cultural center of Japan, and eight
surrounding prefectures.

Bloomberg News said the utility is battling radiation leaks at the
Fukushima Dai-Ichi power plant north of Tokyo after a March 11
earthquake and tsunami knocked out its cooling systems, causing
the biggest atomic accident in 25 years.  More than 50,000
households were forced to evacuate and Bank of America Corp.'s
Merrill Lynch estimates TEPCO may face compensation claims of as
much as JPY11 trillion (US$135 billion).

As reported in the Troubled Company Reporter-Asia Pacific on
June 3, 2011, Standard & Poor's Ratings Services lowered Tokyo
Electric Power Co. Inc.'s (TEPCO) long-term corporate credit
rating to 'B+' from 'BBB' and its short-term corporate credit
rating to 'B' from 'A- 2'.  At the same time, the long-term debt
rating on TEPCO was lowered to 'BB+' from 'BBB'.  All ratings
remain on CreditWatch with developing implications. "At the same
time, we lowered TEPCO's stand-alone credit profile (SACP) to
'ccc+' from 'bb-', and we lowered the likelihood that it will
receive extraordinary support from the government of Japan (AA-
/Negative/A-1+) to 'high' from 'very high'," S&P said.

"The rating downgrades reflect Standard & Poor's opinion that
uncertainty over the timeliness of any extraordinary government
support for TEPCO under the current political climate has further
exacerbated TEPCO's deteriorating SACP and TEPCO's worsening
financial position increases the likelihood, in our view, that its
lender banks could restructure its borrowings. Under Standard &
Poor's ratings criteria, any waiver of loans or distressed
restructuring, such as a lowering of interest rates on existing
loans, constitutes a form of default and would trigger a lowering
of the corporate credit ratings on TEPCO to 'SD'--Selective
Default," S&P explained.


=========
K O R E A
=========


* SOUTH KOREA: Creditors Seek to Weed Out 30 Large Troubled Firms
-----------------------------------------------------------------
Yonhap News reports that industry sources said South Korean
creditor banks are seeking to put some 30 large, financially
troubled firms under a debt workout program or kick them out of
the market.

Yonhap News discloses that that every year, creditor banks assess
the financial soundness of companies whose loans surpass KRW50
billion (US$47 million) and classify them into the four
categories: A, B, C, and D.

C-rated companies can apply for a debt workout program, while
D-rated firms are liquidated or placed under a court receivership,
according to Yonhap News.

The news agency relates that sources said this year's annual
assessment shows that around 30 companies were rated as C or D.

Yonhap's sources said a bulk of the financially shaky firms were
builders as a prolonged slump in the property market hit them
hard.  But construction firms affiliated with South Korea's major
conglomerates were not included in the blacklist as they secured
capital by selling shares or debts to their sister firms, the
report notes.

According to Yonhap, the sources also said the number of C- or D-
rated companies dropped to 30 from 65 a year earlier, possibly on
the back of ongoing efforts to restructure debt-ridden companies
in the aftermath of the global financial crisis.


====================
N E W  Z E A L A N D
====================


BLUE CHIP: Northern Crest Liquidators Issue Search Warrant
----------------------------------------------------------
BusinessDesk reports that the liquidators of Northern Crest
Investments, the last firm in Mark Bryers' failed Blue Chip group,
were forced to seek an Australian court warrant after the company
withheld financial records.

John McCullagh and Stephen Lawrence of PKF Corporate Recovery &
Insolvency said in their first liquidators report that they
haven't been able to make an estimate of the company's business
affairs after struggling to secure Northern Crest records.

According to BusinessDesk, Laurie Eakin and David Sekel, directors
of the property investment adviser formerly known as Blue Chip
Financial Solutions, missed the deadline to provide documents.

The liquidators subsequently obtained a search and seizure warrant
on June 24 from the Federal Court of Australia, New South Wales,
BusinessDesk relates.

The liquidators said the warrant allowed them to seize a number of
company records, but "the server containing the digital records
appears to have been removed from the premises before the warrant
was exercised."

Since then, further documents have been "drip-fed" by the
directors and their advisers, and its subsidiary companies have
been put into voluntary administration, BusinessDesk relates.
Northern Crest, a New Zealand registered company but based in
Sydney and listed on the Australian Securities Exchange, was put
in liquidation last month by a High Court order on behalf of
businessman Ross Haywood, owed AUD142,000.  The company managed to
dodge to previous attempts to wind up the company in 2009.

                      About Blue Chip NZ

Blue Chip New Zealand Ltd. is a financial services company with
offices throughout New Zealand.  It is a subsidiary of Blue Chip
Financial Solutions Limited, now known as Northern Crest
Investments.  Northern Crest operates in two divisions: financial
services and leasing services.  The financial services division is
engaged in the provision of financial structuring services and
investment product to a variety of clients.  The leasing
activities division is engaged in rental of residential property.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
April 15, 2008, Blue Chip New Zealand Ltd. is in voluntary
liquidation, joining 20 other Blue Chip companies that are now
being wound up.


BLUE CHIP: Handful of Former Blue Chip Customers Face Foreclosures
------------------------------------------------------------------
Jamie Gray at nzherald.co.nz reports that Aaron Baxter, GE
Capital's New Zealand managing director, said most of the
380 GE Capital customers who borrowed money to take part in the
ill-fated Blue Chip property scheme have refinanced but a handful
face mortgage foreclosures.

According to the report, Mr. Baxter said GE Capital had kept a low
profile since Blue Chip went into liquidation in 2008.

"We have been very focused on trying to work with our customers to
come up with an acceptable arrangement," nzherald.co.nz quotes
Mr. Baxter as saying.

Mr. Baxter, as cited by nzherald.co.nz, said most GE customers
exposed to Blue Chip had continued to maintain their mortgage
payments and had refinanced.

"But we have also, due to the nature of Blue Chip, created options
and flexibility over the last three years."

These options involved allowing Blue Chip customers to reduce or
defer some payments. GE Capital had also entered into some longer-
term loans, Mr. Baxter said.

Allowances were made for hardship and some life tenancies -- which
allow investors to remain in their homes until they die -- had
been created.  In some cases, nzherald.co.nz notes, there had been
capitalization of arrears.

But Mr. Baxter said GE Capital was about to foreclose on about
10 former Blue Chip customers, mostly because of difficulties in
making contact with them, the report says.

Mr. Baxter, as cited by nzherald.co.nz, said GE Money had no
involvement in its customers' decisions to get involved in Blue
Chip and did not have a direct relationship with the company.

                       About Blue Chip NZ

Blue Chip New Zealand Ltd. is a financial services company with
offices throughout New Zealand.  It is a subsidiary of Blue Chip
Financial Solutions Limited, now known as Northern Crest
Investments.  Northern Crest operates in two divisions: financial
services and leasing services.  The financial services division is
engaged in the provision of financial structuring services and
investment product to a variety of clients.  The leasing
activities division is engaged in rental of residential property.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
April 15, 2008, Blue Chip New Zealand Ltd. is in voluntary
liquidation, joining 20 other Blue Chip companies that are now
being wound up.


CENTURY CITY: Owner Sells Apartment Hotel Property
--------------------------------------------------
Sunday Star Times reports that embattled property developer Terry
Serepisos has sold his flagship Century City apartment hotel and
an adjacent carpark building to Wellington investor Mark
Dunajtschik.

Mr. Serepisos, who owns the Wellington Phoenix Football Club and a
string of commercial and residential properties around Wellington,
is one of the capital's most colourful business personalities,
Sunday Star Times says.

But Mr. Serepisos' property empire has struggled under the weight
of its debts and his portfolio has been steadily shrinking as he
has sold down assets to stay one step ahead of his creditors.

According to the report, Mr. Serepisos's Century City group
developed the hotel on Tory St in Wellington's CBD, which operated
as the Grand Mercure Century City Apartments and was one of his
most valuable assets.  It had a rating valuation of NZ$16.93
million.

Sunday Star Times relates that the neighbouring parking building,
which Mr. Serepisos also owned, had a rating valuation of NZ$13.75
million, although the Century City subsidiary which owned the
property was placed into receivership in May.

It is not known how much Mr. Dunajtschik paid for the properties,
although sources said it was unlikely Mr. Serepisos would receive
any of the money because both were heavily mortgaged, according to
Sunday Star Times.

               Uncertainty Over Willington Phoenix Future

Meanwhile, The Dominion Post reports that the sale of Mr.
Serepisos' flagship Century City Hotel and adjacent car park
building to Mr. Dunajtschik has raised alarm bells over the future
of football club Wellington Phoenix.

Mr. Serepisos, says the Post, conceded that Mr. Dunajtschik owned
the Tory St complex but said his Century City company still
managed and operated the "whole shebang" and the "confidential
deal" had nothing to do with the future of the Phoenix.

The Post relates that Wellington city councilor John Morrison said
the council supported Mr. Serepisos as Phoenix owner but there was
concern for the football club's future and he was "confident
Wellingtonians would not stand idly by and lose the Phoenix from
the city."

As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 14, 2010, the National Business Review said the Inland
Revenue Department applied to liquidate five of Mr. Serepisos'
companies in October 2010.  The debt claimed by the IRD is
understood to be about NZ$3.58 million, the Business Review said.
The Serepisos companies under threat are Century City Hunter
Street, Century City Investments, Century City Developments,
Century City Management and Century City Football, which owns the
Phoenix.


CREDIT UNION: S&P Puts 'BB' Issuer Credit Rating on CreditWatch
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB' long-term
issuer credit rating on New Zealand-based Credit Union North on
CreditWatch with negative implications.  "At the same time, we
have affirmed the short-term rating of 'B'," S&P related.

"The CreditWatch placement reflects our view that CUN's
contracting business base could weaken the company's market
position, and result in a potential loss in year ended June 30,
2011. Margin pressure, CUN's potentially higher-than-expected loan
loss provisioning, and its high operating expense structure could
result in CUN delivering a loss," Standard & Poor's credit
analyst Andrew Mayes said. "We are completing further analysis and
discussions with management to gain greater clarity on the fiscal
2011 results and to understand any management initiatives to
address these business and financial pressures."

The challenging operating environment, underpinned by relatively
higher levels of unemployment in CUN's main operating regions of
Waikato and Bay of Plenty, and a tightening of underwriting
standards have led to a material contraction in personal loans
over the past year. The loan-portfolio decline reflects CUN's move
to tighten its lending policies to help improve its asset quality
position and risk/reward equation. "Additionally, lending growth
has been stymied by a period of ongoing household deleveraging,
which we expect to continue to restrain organic growth in the
medium term. The subdued operating environment is likely to have a
more pronounced effect on lower socio-economic groups, which
comprise a significant portion of CUN's member base," S&P related.

A CreditWatch negative listing by Standard & Poor's implies a one-
in-two likelihood that the rating may be lowered within the next
three months. The CreditWatch is expected to be resolved after
further discussions with CUN's management and a review of CUN's
business and financial profile. "The long-term issuer credit
rating of 'BB' may be lowered by one notch or more if, in our
opinion, the credit union were not able to quickly stabilize its
market position and business base, and restore its underlying
operating performance to a level consistent with similar-rated
peers and supportive of its rating. Additionally, based on the
past supportive approach adopted by the credit union sector in
dealing with emerging stresses in a credit union, we expect
that a further material deterioration in CUN's credit profile
would most likely be pre-empted by a merger with another credit
union," S&P continued.


SAPPHIRE II: Fitch Affirms B+sf Rating on NZD2.5MM Class CA Notes
------------------------------------------------------------------
Fitch Ratings has affirmed 17 classes of notes issued by Sapphire
II NZ Series 2005-1 Trust, Sapphire III NZ Series 2006-1 Trust,
and Sapphire IV NZ Series 2007-1 Trust. The transactions are
backed by pools of non-conforming residential mortgages originated
by Bluestone Mortgages NZ Limited, a wholly-owned subsidiary of
Bluestone Group Pty Limited (Bluestone). Sapphire IV NZ Series
2007-1 Trust is backed by non-conforming commercial mortgages as
well.

The rating actions reflect Fitch's view that the available credit
enhancement levels are sufficient to support the notes' current
ratings, and that the credit quality and performance of the loans
in the current collateral pool remain in line with the agency's
expectations. Overall, mortgage performance has slightly improved
since the previous rating action in November 2010, and credit
enhancement for all rated notes has increased since then.
Furthermore, charge-offs in Sapphire IV NZ Series 2007-1 Trust
have been partially repaid since the last review.

"The level of arrears in the Sapphire transactions backed by New
Zealand mortgages remains relatively high, and might lead to
realized losses in the near future", said James Zanesi, Associate
Director in Fitch's Structured Finance team. "However, available
income has been strong recently and this has contributed to
reducing any outstanding charge-offs" added Mr. Zanesi.

Arrears in the mortgage pool of Sapphire II NZ Series 2005-1 Trust
have decreased since the previous rating action in November 2010.
The main concern remains the strong concentration in the pool
which comprises of only 82 loans. As of May 2011, the pool had
paid down to NZD12.7 million from the original NZD151.59 million,
with 30+ days and 90+ days arrears being low in comparison to
other non-conforming transactions and amounting to 6.30% and 1.12%
of the collateral pool respectively. As of the June 2011 payment
date, the subordination percentage of the class A, MA, MZ, BA, BZ
and CA notes had increased considerably compared to November 2010.
The class D notes' carryover charge-offs have reduced, amounting
to NZD210,954. The notes are amortizing on a sequential basis as
there is no pro-rata trigger in place. The available income in the
transaction has been sufficient to cover losses to date.

Sapphire III NZ Series 2006-1 Trust has also experienced an
improvement in performance since November 2010, although the level
of delinquencies is still relatively high. As of May 2011, the
pool had paid down to NZD41.9 million from the original NZD241.7
million, with 30+ days and 90+ days arrears being high, amounting
to 16.33% and 10.66% of the collateral pool respectively. The
transaction's performance has improved slightly since December
2010. As of the last payment date, the subordination percentage of
the class A, MA, MZ, BA, BZ and CA notes had also increased
considerably. The class CZ and Class D notes currently provide
subordination of NZD4.1 million and NZD0.9 million respectively.
The notes are amortizing on a sequential basis, as the 90+ days
arrears are currently higher than 8%, the level specified in the
pro-rata paydown trigger. The available income in the transaction
has been sufficient to cover losses to date.

Sapphire IV NZ Series 2007-1 Trust is performing poorly and the
rated notes have been impacted by the strong realised losses in
the transaction. As of May 2011, the pool had paid down to NZD84.9
million from the original NZD249.74 million. The notes are
amortizing on a sequential basis as there are charge-offs
outstanding. 30+ days and 90+ days arrears are high accounting for
17.85% and 5.92% of the collateral pool respectively. As of the
April 2011 payment date, the subordination percentage of the class
A, MA, MZ, BA, BZ and CA notes had not increased considerably
since the previous rating action in November 2010. The class CZ
and D notes do not currently provide any level of subordination,
as they have been fully charged-off for NZD6.7 million and
NZD868,194 respectively. As of May 2011, class CA notes had also
been charged off for NZD3,984,017. Fitch's view is that given the
low credit enhancement of the class BZ notes, a charge-off is
possible depending on the impact of the current 90+ days arrears.
The available income in the transaction has been relatively strong
and stable since April 2010, and has contributed to reduce the
amount of outstanding charge-offs.

As the mortgage portfolio reduces in size, the risk of principal
losses resulting from the concentrated default of large loans
becomes the primary driver for Fitch's analysis. A cash flow
analysis was performed on the transaction, stressing a combination
of interest rates, defaults, default timings and prepayment rates.

Sapphire II NZ Series 2005-1 Trust, Sapphire III NZ Series 2006-1
Trust, and Sapphire IV NZ Series 2007-1 Trust have minimal
exposure to properties located in the Christchurch area, and
therefore any impact on properties located in Christchurch is not
expected to be a major driver in the performance and credit
quality of the loans.

The rating actions are:

Sapphire II NZ Series 2005-1 Trust

   -- NZD0.05m Class M notes (NZSPHDT203C9) affirmed at 'AAsf';
      Outlook Stable; Loss Severity Rating revised to 'LS5' from
      'LS1';

   -- NZD4.7m Class BA notes (NZSPHDT204C7) affirmed at 'Asf';
      Outlook Stable; Loss Severity Rating 'LS1';

   -- NZD2.5m Class BZ notes (NZSPHDT205C4) affirmed at 'BBBsf';
      Outlook Stable; Loss Severity Rating revised 'LS2'; and

   -- NZD2.5m Class CA notes (NZSPHDT206C2) affirmed at 'B+sf';
      Outlook Stable; Loss Severity Rating 'LS1'.

Sapphire III NZ Series 2006-1 Trust

   -- NZD9.8m Class A notes (NZSPHDT301C1) affirmed at 'AAAsf';
      Outlook Stable; Loss Severity Rating 'LS2';

   -- NZD7.4m Class MA notes (NZSPHDT302C9) affirmed at 'AA+sf';
      Outlook Stable; Loss Severity Rating revised to 'LS2' from
      'LS3';

   -- NZD7.7m Class MZ notes (NZSPHDT303C7) affirmed at 'A+sf';
      Outlook Stable, Loss Severity Rating revised to 'LS2' from
      'LS3';

   -- NZD7.1m Class BA notes (NZSPHDT304C5) affirmed at 'BBBsf';
      Outlook Stable, Loss Severity Rating revised to 'LS2' from
      'LS3';

   -- NZD5.0m Class BZ notes (NZSPHDT305C2) affirmed at 'BBsf';
      Outlook Negative, Loss Severity Rating 'LS3'; and

   -- NZD1.7m Class CA notes (NZSPHDT306C0) affirmed at 'B-sf';
      Outlook Negative, Loss Severity Rating 'LS4'.

Sapphire IV NZ Series 2007-1 Trust

   -- NZD38.1m Class AA notes (NZSPHDT401C9) affirmed at 'AAAsf';
      Outlook Stable; Loss Severity Rating revised to 'LS2' from
      'LS1';

   -- NZD15.7m Class AZ notes (NZSPHDT402C7) affirmed at 'AAAsf';
      Outlook Stable; Loss Severity Rating 'LS2';

   -- NZD5.3m Class MA notes (NZSPHDT403C5) affirmed at 'AAsf',
      Outlook Stable; Loss Severity Rating 'LS4';

   -- NZD6.0m Class MZ notes (NZSPHDT404C3) affirmed at 'Asf';
      Outlook Stable; Loss Severity Rating revised to 'LS3' from
      'LS4';

   -- NZD8.0m Class BA notes (NZSPHDT405C0) affirmed at 'BBB-sf';
      Outlook Negative; Loss Severity Rating 'LS3';

   -- NZD8.5m Class BZ notes (NZSPHDT406C8) affirmed at 'CCCsf';
      Recovery Rating revised to 'RR2 from 'RR3'; and

   -- NZD3.1m Class CA notes (NZSPHDT407C6) affirmed at 'CCCsf';
      Recovery Rating revised to 'RR5' from 'RR4'.


=====================
P H I L I P P I N E S
=====================


PHILIPPINES: Moody's Says Outlook Stable, But Fiscal Reform Needed
------------------------------------------------------------------
Moody's Investors Service says that the outlook for the
Philippines' Ba2 sovereign credit rating is stable. The rating is
underpinned by fiscal consolidation, increased macro-economic
stability, strong GDP growth, and higher investment spending.

The rating was upgraded to Ba2 from Ba3 in June 2011 in
recognition of the country's progress on fiscal consolidation,
according to Moody's in its annual report on the Philippines.

Furthermore, prospects for increased investment spending, and thus
an enhanced outlook for potential growth, are set to improve due
to expected gains in governance and macroeconomic stability.

And inflationary expectations look well-anchored, despite the rise
in global commodity prices and historically high levels of GDP
growth.

In its assessment of the Philippines, Moody's evaluates four
factors on a scale which includes "very high," "high," "moderate,"
"low," and "very low."

For economic strength, it assesses the country as "low"; for
institutional strength "moderate": for government financial
strength "low"; and susceptibility to event risk "low."

The Moody's report notes that the administration of President
Benigno Aquino III, who was elected in May 2010, has brought
government expenditures under control following the adverse
effects of the global financial crisis and the subsequent national
elections on the Philippines' fiscal performance. Revenues have
also improved without the benefit of tax increases.

But, looking ahead, structural improvements in revenue generation
will likely require significant fiscal reform.

In addition, as the Philippines' sovereign rating now sits atop
its methodological range at Ba2, further upward rating movement
will therefore require a more sustained improvement of credit
fundamentals.


================
S R I  L A N K A
================


* SRI LANKA: Fitch Affirms 'D/E' Individual Ratings of 4 Banks
--------------------------------------------------------------
Fitch Ratings Lanka has affirmed the National Long-Term ratings of
Bank of Ceylon (BOC), People's Bank (PB), Commercial Bank of
Ceylon PLC (CB) and Sampath Bank PLC (SB).

Fitch has also affirmed and simultaneously withdrawn the
Individual and Support ratings of the four banks as these ratings
are no longer relevant to Fitch's coverage.

BOC's and PB's ratings reflect their high systemic importance as
the largest and second-largest banks of Sri Lanka, respectively,
their state ownership, and their strong franchise. The Positive
Outlooks largely reflect the prospect of a potential improvement
in the government's financial profile as indicated by the Positive
Outlook on Sri Lanka's Long-Term Issuer Default Rating of 'B+',
and its consequent increased capacity to provide support to the
banks.

CB's ratings reflect its strong franchise, sound profitability and
its strong capital position. The Stable Outlook reflects the
improvement in the bank's credit profile in terms of its asset
quality and solvency indicators since Q310 and Fitch's expectation
for a further improvement supported by the economic environment
and equity accretion and/or infusion.

SB's ratings reflect its strong and growing franchise, sound
profitability and its strong capital structure. The Positive
Outlook reflects ongoing structural improvements within the bank
since early 2009 across most spheres of risk management, which in
Fitch's view is helping SB to improve its credit profile at a
faster pace than its peers.

BOC:

   -- National Long-Term rating affirmed at 'AA(lka)'; Outlook
      Positive

   -- Subordinated debentures affirmed at 'AA-(lka)'

   -- Individual rating affirmed at 'D/E'; rating withdrawn

   -- Support rating affirmed at '4'; rating withdrawn

PB:

   -- National Long-Term rating affirmed at 'AA-(lka)'; Outlook
      Positive

   -- Individual rating affirmed at 'D/E'; rating withdrawn

   -- Support rating affirmed at '4'; rating withdrawn

CB:

   -- National Long-Term rating affirmed at 'AA(lka)'; Outlook
      Stable

   -- Subordinated debentures affirmed at 'AA-(lka)'

   -- Individual rating affirmed at 'D/E'; rating withdrawn

   -- Support rating affirmed at '5'; rating withdrawn

SB:

   -- National Long-Term rating affirmed at 'AA-(lka)'; Outlook
      Positive

   -- Subordinated debentures affirmed at 'A+(lka)'

   -- Individual rating affirmed at 'D/E'; rating withdrawn

   -- Support rating affirmed at '5'; rating withdrawn


                             *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA.  Valerie U. Pascual, Marites O. Claro, Joy A. Agravante,
Rousel Elaine T. Fernandez, Psyche A. Castillon, Ivy B. Magdadaro,
Frauline S. Abangan, and Peter A. Chapman, Editors.

Copyright 2011.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.





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