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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, August 25, 2011, Vol. 14, No. 168

                            Headlines



A U S T R A L I A

ACL GROUP: 33 ACL Bearing Workers Sacked
CANAAN COAST: Eden on the Bay Operator in Receivership
COLD ROCK: Franchisees Go Into Administration After Breaking Deal
REDGROUP RETAIL: 20 Former A&R Franchisees Join Leading Edge
SOLARGEN PTY: In Liquidation, Owes Up to AUD7 Million


H O N G  K O N G

ADS-HONG KONG: Members' Final General Meeting Set for Sept. 23
BRIDGMAN FIRE: Final Meetings Set for Sept. 21
CLEARSKIES LIMITED: Creditors' Proofs of Debt Due Sept. 20
ENFUL ENGINEERING: Final Meetings Set for Sept. 21
FAMOUS EXCEL: Final Meetings Set for Sept. 24

FLY GULL: Creditors' Proofs of Debt Due Sept. 10
HK INSTITUTE: Creditors' Proofs of Debt Due Sept. 24
HONNIC INT'L: Bernie Fuk Yuen Suen Appointed as Liquidator
HUI DONG: Creditors' Proofs of Debt Due Sept. 19


I N D I A

AIR INDIA: To Receive 7 Dreamliners in November Thru March
AMAN BHALLA: CRISIL Rates INR125 Million Term Loan at 'CRISIL D'
BALAJI MACHINE: CRISIL Rates INR30MM Term Loan at 'CRISIL BB'
BOUTIQUE HOTELS: CRISIL Reaffirms 'BB+' Rating on INR990MM Loan
CAPITHAN EXPORTING: CRISIL Cuts INR33.6MM LT Loan Rating to 'C'

DECO MICA: CRISIL Assigns 'CRISIL BB+' Rating to INR10MM Loan
G.K. AUTOWHEELS: CRISIL Reaffirms 'CRISIL BB-' Cash Credit Rating
GREEN VALLEY: CRISIL Cuts Rating on INR140MM Loan to 'CRISIL D'
HOSHIARPUR ROLLER: CRISIL Rates INR30MM Cash Credit at CRISIL B-
INTEGRAL BIOSCIENCES: CRISIL Ups Term Loan Rating to 'CRISIL B+'

KARAM MULTIPACK: CRISIL Rates INR48.2MM Term Loan at 'CRISIL B-'
M V OMNI: CRISIL Raises Rating on INR120MM Loan to 'CRISIL BB-'
MILKRAFT DAIRYTECH: CRISIL Cuts INR55MM Loan Rating to 'CRISIL C'
P AND S SHRINGAR: CRISIL Reaffirms 'CRISIL BB' Cash Credit Rating
RADHA SAKKU: CRISIL Assigns 'CRISIL B+' Rating to INR958.8MM Loan

SANTOSH OVERSEAS: CRISIL Reaffirms 'CRISIL BB' Cash Credit Rating
SEJASMI INDUSTRIES: CRISIL Puts 'CRISIL B' Rating on INR60MM Loan
SHREE DATTA: CRISIL Rates INR80-Mil. Cash Credit at 'CRISIL BB-'
SHRI VINAYAK: CRISIL Cuts Rating on INR75MM Loan to 'CRISIL C'
SPECIALITY INDUSTRIAL: CRISIL Raises INR54MM Loan Rating to BBB-

VERONICA MARINE: CRISIL Cuts Rating on INR32MM Loan to 'CRISIL C'


J A P A N

HALLMARK TRUST: Moody's Lowers Rating on Class B Sr Notes to Ba2
L-STARS ONE: Moody's Downgrades Rating on Class E Notes to 'Ba3'
L-STARS TWO: Moody's Lowers Rating on Class N Notes to 'Ba2'


K O R E A

KOREA ELECTRIC: President offers to Step Down


M A L A Y S I A

NGIU KEE: External Auditors Express Disclaimer of Opinion
RANHILL BERHAD: Unit Faces Winding Up Petition
SATANG HOLDINGS: RHB Bank Withdraws Writ of Summons
TRIPLC BERHAD: Files Suit vs Eurisco Over Advance Payment Refund


N E W  Z E A L A N D

DESIGNLINE INT'L: Malaysian Buys Bus Maker for Undisclosed Amount


S I N G A P O R E

ALLIED COMPANY: Creditors' Proofs of Debt Due Sept. 23
ALPHOMEGA RESEARCH: Court to Hear Judicial Mgt. Bid on Sept. 9
BELUGA CHARTERING: Court to Hear Wind-Up Petition on Sept. 2
BELUGA PROJECTS: Court to Hear Wind-Up Petition on Aug. 26
ELECTRO-SYSTEMS INDUSTRIES: Court Enters Wind-Up Order

LEHMAN BROTHERS: Creditors' Proofs of Debt Due Sept. 5
* Moody's Says Singapore REITs Favor Greenfield Developments


                            - - - - -


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


ACL GROUP: 33 ACL Bearing Workers Sacked
----------------------------------------
ABC News reports that 33 workers at ACL Bearing, part of
Automotive Components Limited (also known as ACL Group), were
made redundant Wednesday.

Earlier this month, ABC News recounts, ACL Bearing announced
several redundancies as part of a major restructure of the
struggling company.

ABC News relates that the sacked workers were told of their fate
on Wednesday morning.

Company receiver Matt Byrnes said some were shocked, according to
ABC News.

"A number of the people have been with ACL for a long time, most
or all of their working lives in some cases, so it's a really
difficult day for those people," ABC News quotes Mr. Byrnes as
saying.

In 2009, ABC News says, more than 100 workers were made redundant
when the business went into administration.

The receivers have not ruled out further job cuts but Mr. Byrnes
is optimistic the company can remain viable, ABC News relates.

"We've looked at what we think the business needs in terms of its
labour and resourcing over the next period of time and we've
tried to structure the business accordingly," ABC News quotes Mr.
Byrnes as saying.  "I obviously can't predict what will happen in
the future."

After the recent sackings the company's workforce stands at 135.

Dwindling sales and a high Australian dollar are being blamed for
the job cuts, ABC News adds.

                              About ACL

Automotive Components Limited (ACL) supplies critical components,
including engine bearings and gaskets to the automotive industry.
The company employed over 300 people across its two sites in
Tasmania and Queensland, Australia.

Craig Shepard and Leanne Chesser of KordaMentha were appointed
voluntary administrators of ACL Group and three of its non-
trading subsidiaries on Aug. 26, 2009.  Greg Keith and Matthew
Byrnes of Grant Thornton were subsequently appointed receivers
and managers of the ACL Group on Aug. 26, 2009, by a secured
creditor.


CANAAN COAST: Eden on the Bay Operator in Receivership
------------------------------------------------------
Mat Nott at Fraser Coast Chronicle reports that Canaan Coast Pty
Ltd, the company that operates the 28-room multi-million dollar
luxury hotel Eden on the Bay, is in the hands of receivers and is
now being administered by Grant Thornton Australia.

The Chronicle relates that a financial institution that held a
fixed and floating charge over the asset made an application to
have a receiver take control of Eden on the Bay's short-term
future.

With its boutique beachfront apartments and range of sea-view
balconies and waterfalls, the Eden is one of the sleekest venues
on the Fraser Coast.  The complex is also an important feeder for
other tourist operators in the area, acting as a point of sale
for packages to destinations, including Fraser Island and Lady
Elliot.

According to the report, tourism industry insiders in the Bay
said the hotel was expected to continue trading with receivers to
seek a private sale or go to public auction.

Its financial woes will not impact on its day-to-day trade and
its doors will remain open in the short term, The Chronicle
notes.

ASIC was notified of the appointment of a receiver and manager as
of August 16 and August 19, the report discloses.

The Canaan Coast Pty Ltd has previously been called Caanan Land
Pty Ltd.


COLD ROCK: Franchisees Go Into Administration After Breaking Deal
-----------------------------------------------------------------
Inside Retail reports that three rogue Cold Rock Ice Creamery
stores in north Queensland that broke their franchise agreements
have been placed into administration after being taken to court.

Melbourne-based Franchised Food Company (FFCo), which owns the
ice cream chain, sought an injunction against the franchisees of
the Townsville stores in the Federal Court after they attempted
to rebrand the outlets under the name If Icecream Factory,
according to Inside Retail.

The franchisees, Paul Bailey and Tammy Hawkins-Bailey, operated
three Cold Rock stores at The Strand, Cannon Park and Magnetic
Island.

Inside Retail discloses that FFCo MD Stan Gordon said the move to
rename the stores while continuing to use the Cold Rock concept
was a breach of trademark and intellectual property rights under
the Competition and Consumer Act.

Insolvency firm KordaMentha has been appointed administrators.

Mr. Gordon, the report relates, said the group unsuccessfully
tried to negotiate with the franchisees before the matter was
taken to court.

Inside Retail relates that Mr. Gordon said Cold Rock management
was negotiating with the administrators to take the stores back
under its control before new Cold Rock franchisees would be
sought.

Cold Rock has almost 100 stores nationwide. Its concept is based
on the "create your own" experience of adding chocolate, fruit,
nut and lolly mix-ins into ice cream.  The creation is then mixed
together on a refrigerated granite slab known as the Cold Rock.
FFCo also owns franchise brands Mr. Whippy, Nutshack, and Pretzel
World.


REDGROUP RETAIL: 20 Former A&R Franchisees Join Leading Edge
------------------------------------------------------------
James Thomson at SmartCompany reports that the final chapter for
the franchisees of collapsed book chain Angus & Robertson has
almost been written.  Twenty former franchisees that have now set
themselves up as independent bookstores have joined buying group
Leading Edge.

SmartCompany relates that the news, reported in Bookseller &
Publisher, comes a week after 18 former A&R franchisees announced
they had joined Collins Booksellers as franchisees.

Leading Edge is a membership-based buying group that allows
independent bookshops to tap into the buying power that larger
chains enjoy and reap the benefit of marketing services run by
Leading Edge, including catalogues and other promotional
materials.

Established in 1984, the company also runs buying groups across
the retail sectors such as jewellery, music, DVDs, computers,
electronics and lingerie. The group provides services for 1,500
stores across Australia, including 200 independent bookshops.

According to SmartCompany, Leading Edge Books general manager
Simon Milne told Bookseller & Publisher the addition of the
former A&R franchisees was a boost for the independent bookshop
sector.

"In this tough retail environment, many booksellers are choosing
the independent model," SmartCompany quotes Mr. Milne as saying.

"In addition to the former A&R franchise stores, 10 other
independent bookshops have joined our group this year.  We are
excited that the independent sector has grown its market share to
over 23%, and our members continue to innovate and diversify for
the future."

A total of 47 A&R franchisees were caught up in the March
collapse of REDgroup Retail, owner of the A&R and Borders brands,
SmartCompany recounts.

SmartCompany says a group of 25 stores attempted to break away
from the franchise in April, but were prevented from doing so by
Ferrier Hodgson, the receiver of REDgroup.  However, the decision
to sell all of REDgoup's assets and effectively wind the company
down means the franchisees have been free to go their separate
ways.

                       About REDgroup Retail

REDgroup Retail Pty, with 260 stores and brands including Angus &
Robertson and Whitcoulls, is the largest book retailer in
Australia and New Zealand.  It acquired Borders stores in
Australia, New Zealand, and Singapore in 2008.

                           *     *     *

REDgroup Retail Pty Ltd. on Feb. 17, 2011, named Steve Sherman,
John Melluish and John Lindholm of Ferrier Hodgson as voluntary
administrators.  The board appointed Steve Sherman, John Melluish
and Ryan Eagle as voluntary administrators of the group's
New Zealand business on the same day.  According to Bloomberg
News, the appointment comes less than a day after Borders Group
Inc. filed for bankruptcy in the U.S. and began taking bids for
200 stores.

The REDgroup companies in Administration include:

* REDgroup Retail Pty Ltd
* Spine Holdco Pty Ltd
* A&R Australia Holdings Pty Ltd
* REDgroup Retail Administrative Services Pty Ltd
* Whitcoulls Group Holdings Pty Ltd
* Spine Newco Pty Ltd
* Angus & Robertson Pty Ltd
* Angus & Robertson Bookworld
* Calendar Club Pty Ltd
* WGL Retail Holdings Ltd
* Whitcoulls Group Ltd
* Calendar Club New Zealand Ltd
* Borders New Zealand Ltd
* REDgroup Online Ltd


SOLARGEN PTY: In Liquidation, Owes Up to AUD7 Million
-----------------------------------------------------
Graham Downie at The Canberra Times reports that the collapse of
Solargen Pty Ltd, a major Australian solar company, with debts of
AUD6 million to AUD7 million has left at least one Canberran owed
thousands of dollars.

The Sunday Canberra Times revealed one ACT woman, Harriet Daly,
of Kambah, is AUD5,600 out-of-pocket after SolarGen went into
liquidation.

According to the report, liquidator Greg Andrews, of GS Andrews &
Associates, said SolarGen's failure left customers with little
chance of recovering any money paid to the company.

The Canberra Times relates that Mr. Andrews said about 300
customers around Australia had paid SolarGen at least 25% to the
entire cost of photo voltaic systems, which it could now not
install.

An ActewAGL spokesman said it had received 12 solar connection
applications specifying the system was from SolarGen, the report
relays.  Of these, ActewAGL had approved and completed three
meter connections.  The last approval for a SolarGen connection
had been on July 29.

It is not known whether any of the other nine have been
installed.  Certainly, Ms. Daly's has not, The Canberra Times
notes.

According to The Canberra Times, the Australian Securities and
Investments Commission records show the company was registered on
July 19, 2006.  Mr. Andrews was appointed liquidator on Aug. 15,
2011.

The Canberra Times says SolarGen's Web site still proclaims, "We
have a strong track record for getting the job done on time and
on budget."

On August 2, the report says, Ms. Daly received an e-mail from
SolarGen saying the company would be placed in voluntary
administration.  "We sincerely apologize for the inconvenience
this will cause," the email read.

The Canberra Times notes that a SolarGen spokesman said the
company had failed for a variety of reasons.  He said a
miscalculation by the Office of the Renewable Energy Regulator
had devalued small-scale technology certificates, which had cost
his company about AUD1 million.

The SolarGen spokesman, as cited by The Canberra Times, said that
despite its failure, he was optimistic all people who had paid
would have systems connected by a potential new owner within the
next year.  He declined to name the potential new owner.

"We have some Chinese manufacturers flying out next week to
discuss how they can help us," the report quotes the spokesman as
saying.

SolarGen is an Australian company specializing in residential
grid connect solar power systems and solar energy.


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


ADS-HONG KONG: Members' Final General Meeting Set for Sept. 23
--------------------------------------------------------------
Members of ADS - Hong Kong Limited will hold their final general
meeting on Sept. 23, 2011, at 10:00 a.m., at 6-8 & 10-13F, PCCW
Tower, Taikoo Place, 979 Kings Road, at Quarry Bay, in Hong Kong.

At the meeting, Chan Wah Tip Michael and Ho Man Kei Keith, the
company's liquidators, will give a report on the company's wind-
up proceedings and property disposal.


BRIDGMAN FIRE: Final Meetings Set for Sept. 21
----------------------------------------------
Members and creditors of Bridgman Fire Doors (HK) Limited will
hold their final meetings on Sept. 21, 2011, at 2:30 p.m., and
3:00 p.m., respectively at 27/F, Alexandra House, at 18 Chater
Road, Central, in Hong Kong.

At the meeting, Osman Mohammed Arab, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


CLEARSKIES LIMITED: Creditors' Proofs of Debt Due Sept. 20
----------------------------------------------------------
Creditors of Clearskies Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
Sept. 20, 2011, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on Aug. 11, 2011.

The company's liquidator is:

         Kong Chi How Johnson
         25th Floor, Wing On Centre
         111 Connaught Road
         Central, Hong Kong


ENFUL ENGINEERING: Final Meetings Set for Sept. 21
--------------------------------------------------
Members and creditors of Enful Engineering Limited will hold
their final meetings on Sept. 21, 2011, at 3:30 p.m., and 4:00
p.m., respectively at 29th Floor, Caroline Centre, Lee Gardens
Two, at 28 Yun Ping Road, in Hong Kong.

At the meeting, Osman Mohammed Arab, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


FAMOUS EXCEL: Final Meetings Set for Sept. 24
---------------------------------------------
Members and creditors of Famous Excel Limited will hold their
final meetings on Sept. 24, 2011, at 9:00 a.m., and 9:30 a.m.,
respectively at Room 702, Hing Yat House, at Kwai Hing Estate,
New Territories, in Hong Kong.

At the meeting, Ma Pang Fai Arthur, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


FLY GULL: Creditors' Proofs of Debt Due Sept. 10
------------------------------------------------
Creditors of Fly Gull Company Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Sept. 10, 2011, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on Aug. 10, 2011.

The company's liquidator is:

         Tso Kwai Ping
         807 Fortress Tower
         250 King's Road
         North Point
         Hong Kong


HK INSTITUTE: Creditors' Proofs of Debt Due Sept. 24
----------------------------------------------------
Creditors of Hong Kong Institute of Property Market Research
Limited, which is in members' voluntary liquidation, are required
to file their proofs of debt by Sept. 24, 2011, to be included in
the company's dividend distribution.

The company commenced wind-up proceedings on Aug. 12, 2011.

The company's liquidator is:

         Tam Chun Wan
         Room 403, 4/F
         Wing On House
         71 Des Voeux Road
         Central, Hong Kong


HONNIC INT'L: Bernie Fuk Yuen Suen Appointed as Liquidator
----------------------------------------------------------
Bernie Fuk Yuen Suen on Aug. 5, 2011, was appointed as liquidator
of Honnic International Technology Limited.

The liquidators may be reached at:

         Bernie Fuk Yuen Suen
         Suite 2302, 23/F
         Seaview Commercial Building
         21 Connaught Road West
         Sheung Wan, Hong Kong


HUI DONG: Creditors' Proofs of Debt Due Sept. 19
------------------------------------------------
Creditors of Hui Dong Investment Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Sept. 19, 2011, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on Aug. 11, 2011.

The company's liquidators are:

         Natalia Seng Sze Ka Mee
         Cynthia Wong Ta Yee
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


=========
I N D I A
=========


AIR INDIA: To Receive 7 Dreamliners in November Thru March
----------------------------------------------------------
Anirban Chowdhury at Dow Jones Newswires reports that two senior
executives at Air India Ltd. said the carrier expects to take
delivery between November and March of the first seven of 27
Dreamliner planes ordered from Boeing Co. and plans to deploy
these fuel-efficient airliners to expand overseas operations.

"Another seven will be delivered in stages up to 2014, and the
balance 13 after 2014," one of the executives told Dow Jones
Newswires.

Dow Jones Newswires relates that the second executive said Boeing
has informed that it is trying to increase production of the 787
Dreamliner.

"The specific delivery dates haven't been decided yet . . . the
plans are still tentative," the executive told Dow Jones
Newswires.

According to Dow Jones Newswires, the Dreamliners are part of 111
planes ordered by Air India in 2005 from Boeing and Airbus for
$15 billion.  The carrier has until now received all but 30
Boeing planes from the order, the report notes.

Boeing's Dreamliner project has been delayed due to technical
snags.  The first plane is slated to be delivered, three years
behind schedule, to Japan's All Nippon Airways Co. in September.

Dow Jones Newswires relates that Dinesh Keskar, Boeing India
president, said the company is on track to deliver the first
Dreamliner to Air India during October-December.

According to the report, Air India is adding planes even as it is
incurring heavy losses.  Dow Jones Newswires says the carrier has
been in the red since 2007 post its merger with erstwhile
domestic carrier Indian Airlines, mainly due to higher jet fuel
prices and intense competition.

The first Air India executive, as cited by Dow Jones Newswires,
said the Dreamliner will consume at least 20% less fuel than the
airline's current fleet of long-haul planes.

Air India plans to deploy the Dreamliners on overseas routes,
currently served by its Airbus 310 and Boeing 777 planes, Dow
Jones Newswires adds.

The first Air India executive said without elaborating that the
carrier will finance the Dreamliner order through a mix of loans
from the U.S. Exim Bank and other financing methods, according to
Dow Jones Newswires.

The report adds that the second executive said the airline is
planning to cut its fleet expansion target until 2020, in line
with a lower traffic growth projection.  Air India has a fleet of
124 planes and will likely increase it to 227-230, instead of the
earlier targeted 248 planes, the executive said.

The fleet expansion is part of a turnaround plan prepared by the
airline, Dow Jones Newswires notes.  The plan, which includes
debt restructuring, hiving off business units and trimming
workforce, is likely to be presented to the government shortly
for approval, the report adds.


AMAN BHALLA: CRISIL Rates INR125 Million Term Loan at 'CRISIL D'
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the rupee term loan
facility of Aman Bhalla Foundation.

   Facilities                        Ratings
   ----------                        -------
   INR125 Million Rupee Term Loan    CRISIL D (Assigned)

The rating reflects delays by Aman in servicing its term loan;
the delays have been caused by Aman's weak liquidity.

Aman has a weak financial risk profile, driven by its debt-funded
capital expenditure and its limited track record, and is exposed
to risks related to unfavorable changes in government regulations
in the educations sector. These rating weaknesses are partially
offset by healthy demand prospects for the education sector in
India.

Aman was established in 2005 by Mr. Raman Bhalla and his family.
The trust runs four colleges at Pathankot (Punjab), namely, Aman
Bhalla Polytechnic College, Aman Bhalla Institute of Engineering
and Technology, Aman Bhalla College of Education, and Aman Bhalla
College of Nursing and a day boarding school, Nurture
International. The trust's colleges are located at Pathankot,
Punjab. The trust plans to increase its infrastructure in its
existing institutes and start new courses, such as Master of
Business Administration, Bachelor of Business Administration,
Bachelor of Computer Application, and Diploma in Nursing, in the
coming years.

Aman reported a deficit of INR0.9 million on an income of
INR54.4 million in 2009-10 (refers to financial year, April 1 to
March 31), as against a deficit of INR1.4 million on income of
INR34.5 million for 2008-09.


BALAJI MACHINE: CRISIL Rates INR30MM Term Loan at 'CRISIL BB'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the bank
facilities of Balaji Machine Works Pvt. Ltd.

   Facilities                      Ratings
   ----------                      -------
   INR30 Million Rupee Term Loan   CRISIL BB/Stable (Assigned)
   INR60 Million Cash Credit       CRISIL BB/Stable (Assigned)

The rating reflects BMWPL's leading presence in the wet grinder
industry and the expected strong revenue growth from likely award
of tender by the Tamil Nadu Government to manufacture wet
grinders to be distributed to eligible residents of Tamil Nadu,
under the Chief Minister's welfare scheme. These rating strengths
are partially offset by BMWPL's weak financial risk profile
marked by high gearing and small net worth as well as exposure to
product and geographic concentration in revenues in a highly
competitive home appliance industry.

Outlook: Stable

CRISIL believes that BMWPL will continue to benefit from its
established market position in the wet grinder segment. The
outlook may be revised to 'Positive' if the company's capital
structure improves backed by equity infusion. Conversely, the
outlook may be revised to 'Negative' if there is a stretch in its
debtors impacting its liquidity or if the company's margins
decline leading to lower cash accruals and a deterioration of its
financial risk profile.

                        About Balaji Machine

BMWPL, incorporated in 2002 is promoted by Mr. G Velmurugan, Mr.
G Balamurugan and Mrs. S. Sundrakanty who are the present
directors of the company. BMWPL manufactures and sells table-top
grinders mainly in the southern states of India including Tamil
Nadu, Kerala, Andhra Pradesh and Karnataka. It sells its grinders
under the brand 'Mantra'. Its manufacturing units are located in
Coimbatore with a total installed capacity of 250,000 units of
wet grinders. The Government of Tamil Nadu under the Chief
Minister's Welfare Scheme aims to supply 22.5 million units of
table-top grinders over the next five years to eligible residents
of Tamil Nadu. BMWPL has bid for the tender and if successful,
will increase its capacity by an additional 1.5 million units per
annum.

BMWPL reported, on provisional basis, a profit after tax (PAT) of
INR4.9 million on net sales of INR326 million for 2010-11 (refers
to financial year, April 1 to March 31); it reported a PAT of
INR3.0 million on net sales of INR215 million for 2009-10.


BOUTIQUE HOTELS: CRISIL Reaffirms 'BB+' Rating on INR990MM Loan
---------------------------------------------------------------
CRISIL's rating on the long-term bank facility of Boutique Hotels
India Pvt Ltd continues to reflect BHIL's vulnerability to
downturn in the hotel industry because of its small market share
and high geographic concentration. The impact of the rating
weakness is mitigated by the long track record of BHIL's hotel
resort in Devigarh (Rajasthan).

   Facilities                       Ratings
   ----------                       -------
   INR990 Million Long-Term Loan    CRISIL BB+/Stable
   (Enhanced from INR900 Million)

Outlook: Stable

CRISIL believes that BHIL will maintain its financial flexibility
over the medium term, supported by the recent equity infusion by
BHIL's majority-owner, Xander Investment Holding V Ltd (Xander)
and by expected revenues from BHIL's new hotels. The outlook may
be revised to 'Positive' if BHIL stabilizes operations at its two
upcoming hotels and maintains its revenues from, and
profitability of, its hotel in Devigarh, resulting in more-than-
expected cash accruals, while maintaining its financial
flexibility and improving its capital structure by selling its
land asset. Conversely, the outlook may be revised to 'Negative'
if BHIL's revenues and profitability decline because of lower-
than-expected occupancy levels or average room rate (ARR) at its
hotels, or if the company undertakes a larger-than-expected debt-
funded capital expenditure (capex) programme, thereby weakening
its capital structure.

                       About Boutique Hotels

BHIL, formerly known as Heritage Palaces & Sarais Ltd, is a
closely held private limited company, promoted by the Poddar
family of Kolkata. Promoters own around 41% of its equity shares
and Xander owns 59%. Xander is a private equity firm based in
Mauritius. The Poddar family is into paper and hospitality
businesses. BHIL owns and operates the DevigGarh Palace in
Udaipur. The company has developed two new hotels in Jaipur: Devi
Ratna (63 rooms) and Rasa Amer (40 tents). These hotels have
fully commenced operations on July 1, 2011, with a delay of about
three months from the original schedule.

For 2010-11 (refers to financial year, April 1 to March 31), BHIL
reported, on provisional basis, a profit before tax (PBT) of
around INR30 million on revenues of INR115 million; the company
reported a PBT of INR16.9 million on revenues of INR121 million
for the previous year.


CAPITHAN EXPORTING: CRISIL Cuts INR33.6MM LT Loan Rating to 'C'
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility
of Capithan Exporting Company, part of the CEC group, to 'CRISIL
C' from 'CRISIL B+/Stable', and has reaffirmed its rating on the
firm's other bank facilities at 'CRISIL A4'.

   Facilities                        Ratings
   ----------                        -------
   INR33.6 Million Long-Term Loan    CRISIL C (Downgraded from
                                          'CRISIL B+/Stable')

   INR140 Million Bill Discounting   CRISIL A4 (Reaffirmed)

   INR100 Million Packing Credit     CRISIL A4 (Reaffirmed)

   INR3.5 Mil. Cheque Discounting    CRISIL A4 (Reaffirmed)

The downgrade reflects the CEC group's weak liquidity, because of
delays in the receipt of DEPB (Duty Entitlement Passbook)
licenses and working-capital-intensive operations, resulting in
full utilisation of its bank lines. The resultant cash flow
mismatches have led to instances of delay by the CEC group in
servicing its term debt in the past six months.

The ratings reflect the CEC group's below-average financial risk
profile, marked by a high gearing and weak debt protection
metrics, susceptibility to volatility in raw material prices and
in foreign exchange rates, and exposure to risks inherent in the
seafood exports industry. These rating weaknesses are partially
offset by the CEC group's established track record in the seafood
exports industry and moderately integrated operations.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of CEC and Veronica Marine Products Pvt
Ltd. This is because both the entities, together referred to as
the CEC group, are in the same line of business, have common
promoters, and fungible cash flows.

                         About the Group

Set up in 1974 and promoted by Mr. Alphonse Joseph, CEC group
processes and exports cuttle fish, peeled undeveined shrimp, fin
fishes, shell fish, and cooked/blanched fish. The group has a
processing plant at Kollam (Kerala), with a total processing
capacity of 103 tonnes per day (tpd) and a cold storage capacity
of 2900 tpd. About 84% of the group's sales are to the European
Union nations, and the rest to Middle East and other Asian
countries.

The CEC group reported, on provisional basis,a profit after tax
(PAT) of Rs 28.1 million on net sales of INR1.39 billion for
2010-11 (refers to financial year, April 1 to March 31); the
group reported a PAT of INR14.3 million on net sales of INR964
million for 2009-10.


DECO MICA: CRISIL Assigns 'CRISIL BB+' Rating to INR10MM Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to
the bank facilities of Deco Mica Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR10.0 Million Cash Credit       CRISIL BB+/Stable (Assigned)
   INR40.0 Million Letter of Credit  CRISIL A4+ (Assigned)

The ratings reflect DML's comfortable financial risk profile,
marked by low gearing and strong debt protection metrics and
established track record in manufacturing paper-based decorative
laminates. These rating strengths are partially offset by DML's
restricted bargaining power in the highly fragmented decorative
laminates industry and large working capital requirements.

Outlook: Stable

CRISIL believes that DML will benefit over the medium term from
its comfortable financial risk profile. The outlook may be
revised to 'Positive' in case the company registers higher-than-
expected revenue growth, while maintaining its operating
profitability. Conversely, the outlook may be revised to
'Negative' in case DML's financial risk profile deteriorates due
to large incremental working capital funding requirements or due
to larger-than-expected debt-funded capital expenditure
programme.

                          About Deco Mica

Established in 1987 by the Agarwal family, DML manufactures
paper-based high-pressure decorative laminates. The company sells
its products through a network of dealers across India under the
Heritage brand. The laminates are available in different
finishes, such as matt, cut glass, leather, wood, and fabric.
DML's plant in Kadi (Gujarat) has an installed capacity to
manufacture 1.02 million decorative laminate sheets of various
sizes (1220x2440 millimetres [mm] and 910x2140 mm), with
thickness ranging from 0.8 mm to 2.5 mm. The company's plant is
presently utilising around 70% of its capacity.

DML reported a profit after tax (PAT) of INR10.7 million on net
sales of INR264.1 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR8.1 million on net
sales of INR246.6 million for 2008-09.


G.K. AUTOWHEELS: CRISIL Reaffirms 'CRISIL BB-' Cash Credit Rating
-----------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of GK Autowheels
Pvt Ltd continues to reflect the benefits the company derives
from its promoters' extensive experience in the automobile
dealership business.

   Facilities                      Ratings
   ----------                      -------
   INR62.5 Million Cash Credit     CRISIL BB-/Stable (Reaffirmed)
   INR7.5 Million Proposed LT      CRISIL BB-/Stable (Reaffirmed)
           Bank Loan Facility

This rating strength is partially offset by GK Auto's below-
average financial risk profile, marked by a small net worth and
weak debt protection metrics, and the company's susceptibility to
intense competition in the automobile dealership market.

Outlook: Stable

CRISIL believes that GK Auto will continue to benefit over the
medium term from its established relationships with its
principals and its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of any significant
improvement in the company's capital structure primarily through
equity infusion by the promoters or improved profitability.
Conversely, the outlook may be revised to 'Negative' in case of a
significant drop in turnover, or if GK Auto undertakes a larger-
than-expected debt-funded capital expenditure programme.

                        About GK Autowheels

Set up in 1998 as a partnership firm by Mr. Puroshottam Parwani
and his brothers, Mr. Amar Parwani and Mr. Hemant Parwani, GK
Auto (formerly, GK Motors) was reconstituted as a closely held
private limited company in July 2008. The company initially
operated as an automobile dealer for Fiat India; however, this
dealership was discontinued in 2008. GK Auto, over the years, has
acquired the dealership of Piaggio Vehicles Pvt Ltd (PVPL), VE
Commercial Vehicles (VE), and Honda Motors & Scooters India Pvt
Ltd (HMSI). GK Auto has eight showrooms and service centres in
Chhattisgarh. The company plans to open four new showrooms in
Chhattisgarh ? two for PVPL and one each for VE and HMSI
entailing an outlay of about INR30 million, which will be
primarily debt-funded.

GK Auto reported, on a provisional basis, a profit after tax
(PAT) of INR2 million on net sales of INR464 million for 2010-11.
It reported a PAT of INR0.9 million on net sales of INR238
million for 2009-10.


GREEN VALLEY: CRISIL Cuts Rating on INR140MM Loan to 'CRISIL D'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Green
Valley Plywood Ltd to 'CRISIL D/CRISIL D' from 'CRISIL BBB-
/Stable/CRISIL A3'.

   Facilities                            Ratings
   ----------                            -------
   INR250.0 Million Cash Credit Limit    CRISIL D
                                         (Downgraded from
                                         'CRISIL BBB-/Stable')

   INR140.0 Million Term Loan            CRISIL D
                                         (Downgraded from
                                         'CRISIL BBB-/Stable')

   INR710.0 Million Letter of Credit     CRISIL D (Downgraded
                                         from 'CRISIL A3')

The downgrade reflects instances of delays by GVPL in servicing
its debt post outbreak of fire at its Gujarat unit, in which the
company is estimated to have incurred a loss of INR480 million.
CRISIL believes that the fire outbreak in March 2011 was an
extraordinary event, which has severely impacted GVPL's business.
The event has resulted in steep deterioration in the company's
liquidity. GVPL's liquidity is expected to remain strained, which
will severely hamper the company's ability to meet maturing debt
obligations in the near term.

GVPL also has a weak financial risk profile, marked by expected
erosion in its net worth following the loss incurred due to the
fire incident. The ratings also factor in the company's
susceptibility to risks related to the fragmented nature of the
wood panel industry and to increasing competition from product
substitutes.

                         About Green Valley

Set up in 1993 and promoted by Mr. Jagmohan Kejriwal, GVPL
manufactures wood panel products, such as block boards, plywood,
and veneers. It has three manufacturing units ? two in Rohtak
district (Haryana) and one in Gandhidham (Gujarat). The company
procures poplar and eucalyptus wood from the domestic market, and
imports other varieties of wood, such as teak, gurjan, and
meranti. GVPL markets its products under the brand, Garnet,
through its sales depots located across India. The company has a
network of 850 distributors.

GVPL reported a profit after tax (PAT) of INR34 million on net
sales of INR1620 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR17 million on net sales
of INR1190 million for 2008-09.


HOSHIARPUR ROLLER: CRISIL Rates INR30MM Cash Credit at CRISIL B-
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank loan facilities of Hoshiarpur Roller Flour Mill Pvt Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR50 Million Cash Credit         CRISIL B-/Stable (Assigned)
   INR30 Million Cash Credit         CRISIL B-/Stable (Assigned)
   INR7.6 Mil. Overdraft Facility    CRISIL A4 (Assigned)

The rating reflects HFL's weak financial risk profile, marked by
high gearing, weak debt protection metrics, and small net worth,
small scale of operations in the fragmented flour mill industry,
and susceptibility to project-related risks. These rating
weaknesses are partially offset by the extensive industry
experience of HFL's promoters and its established customer
profile.

Outlook: Stable

CRISIL believes that HFL will maintain business risk profile on
back of its established customer base, and promoters' extensive
experience in the agricultural commodities industry, over the
medium term. However, HFL's financial risk profile is expected to
remain constrained by its debt-funded expansion plans. The
outlook may be revised to 'Positive' if HFL scales up its
operations and stabilises capacities earlier than expected
without significant deterioration in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if larger-
than-expected debt-funding deteriorates HFL's financial risk
profile, or there are significant delays in completing the
proposed debt- funded project.

                      About Hoshiarpur Roller

Set up in 1981 by Mr. Anil Kumar Gupta and his family, HFL
manufactures fine and coarse flour at its facilities in
Hoshiarpir (Punjab). The plant utilises around 80% of its
capacity of 100 tonnes per day. The company is also panning to
set up a pasta and fried foods plant. The total cost is expected
to be INR120 million, and is proposed to be funded through a
debt-to-equity mix of 1.5:1.The plant is expected to be
commissioned by March 2012.

HFL is expected to report a profit after tax (PAT) of INR1.2
million on net sales of INR293.6 million for 2010-11 (refers to
financial year, April 1 to March 31) against a PAT of INR0.4
million on net sales of INR178.1 million for 2009-10.


INTEGRAL BIOSCIENCES: CRISIL Ups Term Loan Rating to 'CRISIL B+'
----------------------------------------------------------------
CRISIL has upgraded its rating on the cash credit and term loan
facilities of Integral Biosciences Pvt Ltd to 'CRISIL
B+/Positive' from 'CRISIL B/Stable', and has assigned its 'CRISIL
B+/Positive' to IBPL's proposed cash credit facility.

   Facilities                         Ratings
   ----------                         -------
   INR5 Million Cash Credit           CRISIL B+/Positive
                                      (Upgraded from
                                      'CRISIL B/ Stable')

   INR120 Million Term Loan           CRISIL B+/Positive
                                      (Upgraded from
                                      'CRISIL B/ Stable')

   INR5 Million Proposed Cash Credit  CRISIL B+/Positive
                                      (Assigned)

   INR20 Million Proposed Term Loan   CRISIL B+/Positive
                                      (Upgraded from
                                      'CRISIL B/ Stable')

The upgrade reflects CRISIL's belief that IBPL's business risk
profile will continue to improve over the medium term, driven by
commissioning of two new floors at IBPL's contract research unit
in Greater Noida (Uttar Pradesh [UP]). Also, IBPL's topline is
expected to increase, as the company has leased out an additional
floor to its principal customer and has increased the lease
rental for both floors by 15% in 2010-11 (refers to financial
year, April 1 to March 31). IBPL's lease contract for the ground
floor of its unit has been renewed in December, 2010 for the next
five years, thereby providing good revenue visibility over this
period. Income from reimbursable expenses has also gone up
commensurately, with the additional leasing of a new floor.
Moreover, IBPL's scale of operations has increased by around 48%
(25% higher than CRISIL's expectation) and cash accruals have
increased by 75% (15% higher than expectation) in 2010-11.

The rating upgrade also takes into account the IBPL's addition of
a new customer (on the full time equivalent model) and two new
joint venture partners in IBPL's customer basket. IBPL's
principal customer has further invested INR17.5 million in IBPL
toward commissioning of the second floor at the company's unit in
Greater Noida. The principal customer's total investment in IBPL
was INR113.0 million as on March 31, 2011 (against INR95 million
as on March 31, 2010). This indicates the customer's strong
commitment to continuing and cultivating its relationship with
IBPL.

The rating reflects IBPL's exposure to risks related to the bulk
of its revenues coming from a single customer and IBPL's small
scale of operations. These rating weaknesses are partially offset
by the company's cost-plus business model, marked by stable cash
accruals and its moderate finance risk profile, marked by low
gearing and healthy debt protection measures.

IBPL has excluded from its asset value the amount received from
its customer based in the US in the form of grants. For this
rating exercise, CRISIL has considered the aforementioned grants
as part of IBPL's fixed-asset value. CRISIL has considered a
portion of the grants, received in the form of non-refundable
advances, as part of IBPL's net worth; the amount received by
IBPL from its customer in the form of refundable advances has
been considered as part of advances from customer. Since IBPL's
agreement with its customer stipulates that 20% of such
refundable advances would become non-refundable at the end of
each financial year, CRISIL has considered such portions which
become non-refundable as part of IBPL's net worth at the end of
each financial year. Depreciation on the portion of the fixed
assets funded by the customer has been adjusted against IBPL's
capital reserve.

Outlook: Positive

CRISIL believes that improvement in IBPL's business risk profile
is expected to continue over the medium term, with benefits
accruing from the new floors at the company's contract research
unit, increase in lease rentals form its customer, and addition
of new customers. The rating may be upgraded if IBPL increases
its scale of operations and net worth significantly, while
further diversifying its customer profile. Conversely, the
outlook may be revised to 'Stable' if there is a decline in
IBPL's revenues and profitability, or if the company undertakes
larger-than-expected capital expenditure (capex) programme,
leading to deterioration in its financial risk profile,
especially liquidity.

                     About Integral Biosciences

IBPL was set up as a joint venture in 2007 by Integral
Biosciences Inc and the Thakkar family (led by Mr. Ram thakkar).
The Thakkar family is the promoter of Euphoric Pharmaceuticals
Ltd, which primarily manufactures and distributes generic
pharmaceutical products. With its facility in Greater Noida, IBPL
commenced operations in July 2008. It is a 100% export-oriented
unit. The company mainly provides medicinal chemistry services on
contract basis to an innovator company based in San Francisco. In
2011-12, IBPL has started conducting independent research (mainly
medicinal chemistry) and has also added new clients to its
customer profile; revenue contribution from the new customers is
expected to remain low.

IBPL reported, on provisional basis, a profit after tax (PAT) of
INR26.1 million on net sales of INR126.2 million for 2010-11; it
reported a PAT of INR12.6 million on net sales of INR85.5 million
for 2009-10, against a PAT of INR4.6 million on net sales of
INR42.6 million for 2008-09.


KARAM MULTIPACK: CRISIL Rates INR48.2MM Term Loan at 'CRISIL B-'
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Karam Multipack Pvt Ltd.

   Facilities                       Ratings
   ----------                       ------
   INR48.2 Million Term Loan        CRISIL B-/Stable (Assigned)
   INR60 Million Cash Credit        CRISIL B-/Stable (Assigned)
   INR10 Million Letter of Credit   CRISIL A4 (Assigned)

The ratings reflect KMPL's weak financial risk profile, marked by
a high gearing and a small net worth, and small scale of, and
working-capital-intensive, operations leading to limited
financial flexibility. These rating weaknesses are partially
offset by the extensive experience of KMPL's promoters in the
packaging industry.

Outlook: Stable

CRISIL believes that KMPL will continue to benefit over the
medium term from its promoters' extensive experience in the
packaging industry. The outlook may be revised to 'Positive' in
case of significant improvement in the company's financial risk
profile and liquidity profile through equity infusion by the
promoters or improvement in its working capital management.
Conversely, the outlook may be revised to 'Negative' if KMPL
reports a sharp decline in its revenues and margins, leading to
lower cash accruals and thus constrained financial flexibility.

                      About Karam Multipack

KMPL was incorporated by the Kagathra family in 2006 in Shapar
(Gujarat). The company manufactures non-woven fabrics that are,
in turn, used to manufacture a variety of packaging and textile
products. The company commenced commercial operations in 2008-09
(refers to financial year, April 1 to March 31) and has installed
capacity of 6000 tonnes per annum. KMPL's promoters also operate
Rhyno Thermopack Industries, Rahil Foam Pvt Ltd, and Rahil
Airbubbles Pvt Ltd, which manufacture expanded polystyrene
products, expanded polyethylene foam, and air bubble sheets,
respectively.

KMPL is estimated to report a profit before tax (PBT) of INR9.2
million on net sales of INR321 million in 2010-11, as against a
profit after tax (PAT) of INR1.8 million on net sales of INR189
million for 2009-10.


M V OMNI: CRISIL Raises Rating on INR120MM Loan to 'CRISIL BB-'
---------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of M V
Omni Projects (India) Ltd to 'CRISIL BB-/Stable/CRISIL A4+' from
'CRISIL B+/Stable/CRISIL A4'

   Facilities                      Ratings
   ----------                      -------
   INR120 Million Cash Credit      CRISIL BB-/Stable
                                   (Upgraded from
                                   'CRISIL B+/Stable')

   INR212 Million Bank Guarantee   CRISIL A4+
                                   (Upgraded from
                                   'CRISIL A4')

The rating upgrade reflects CRISIL's belief that M V Omni's
business risk profile will improve over the medium term, backed
by healthy revenue growth in its revenues. M V Omni's future
revenue growth is supported by a healthy outstanding order book
of INR4.06 billion as on April 1, 2011.  M V Omni also registered
strong year-on-year revenue growth of 72%, to INR1271.7 million,
in 2010-11 (refers to financial year, April 1 to March 31), due
to increased orders from the civil construction sector.
Furthermore, the growth has been accompanied with increased
geographic diversity of its revenues. With its increasing scale
of operations, M V Omni's liquidity is, however, likely to remain
stretched. M V Omni's fund-based bank limits, though enhanced by
INR115 million to INR300 million in December 2010, are nearly
fully utilized.

The ratings reflect M V Omni's established track record in the
construction business, and moderate financial risk profile,
marked by moderate gearing and debt protection metrics. The
ratings are, however, partially offset by M V Omni's stretched
liquidity, large working capital requirements and susceptibility
of its operating margin to intense industry competition and raw
material price volatility.

Outlook: Stable

CRISIL believes that M V Omni will maintain a stable credit risk
profile over the medium term, backed by a strong order book and
established relationships with customers. The outlook may be
revised to 'Positive' if M V Omni is able to enhance its
financial risk profile backed by significant equity infusion to
support its increasing scale of operations, leading to
improvement in its liquidity, or in case of more-than-expected
cash accruals, on account of the increase in its scale of
operations. Conversely, the outlook may be revised to 'Negative'
if the company undertakes larger-than-expected debt-funded
capital expenditure, or in case of deterioration in working
capital management.

                           About M V Omni

Set up as a proprietorship firm named MV Omni Enterprises by Mr.
Mathuraprasad Pandey in 1994, it was converted to a limited
company in 2002. The company is engaged in construction of
residential and commercial buildings, for government and public
sector entities (accounted for 72% of revenues in 2010-11).
Besides, it also caters to the railways by setting up signalling
and telecommunication and other civil infrastructure (17%). It is
also engaged in setting up gas distribution infrastructure for
gas distribution companies (11%). Its major clients include
National Buildings Constructions Corporation Ltd, Ahmedabad
Municipal Corporation, Vadodara Municipal Corporation, Indian
Railways, Mahanagar Gas Ltd, GAIL (India) Ltd, and Indraprastha
Gas Ltd.

For 2010-11, M V Omni reported a profit after tax (PAT) of
INR65.6 million on net sales of INR1264.3 million, against a PAT
of INR38.4 million on net sales of INR738.4 million for 2009-10.


MILKRAFT DAIRYTECH: CRISIL Cuts INR55MM Loan Rating to 'CRISIL C'
-----------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
Milkraft Dairytech Pvt Ltd to 'CRISIL C' from 'CRISIL B+/Stable'.

   Facilities                       Ratings
   ----------                       -------
   INR55.0 Million Cash Credit      CRISIL C
                                    (Downgraded from
                                    'CRISIL B+/Stable')

The downgrade reflects deterioration in Milkraft's liquidity
marked by overdrawn bank limits and low cash accruals. The weak
liquidity, which is mainly because of the company's working-
capital-intensive business model, is accentuated by the
increasing capacity utilization of its milk processing plant. The
company's capacity utilization in 2010-11 (refers to financial
year, April 1 to March 31) was only 25%. This weak liquidity is
likely to impact Milkraft's future debt obligations.

The ratings reflect Milkraft's below-average financial risk
profile marked by a small net worth, a high gearing and weak debt
protection metrics, and exposure to risks related to adverse
changes in government regulations and to epidemic-related and
environmental factors. These rating weaknesses are partially
offset by the benefits that Milkraft derives from its promoters'
experience in the milk trading business and its established
relationships with milk suppliers and distributors.

                       About Milkraft Dairytech

Milkraft, part of the Dwarka group of companies, and was
originally set up as a proprietorship concern named Milkraft
Dairy Tech by Mr. Mithilesh Rajput in 2001. The firm was
reconstituted as a private limited company with its current name
in October 2009. It has acquired a milk processing factory in
Jalna (Maharashtra) in 2010, with a capacity of 100,000 liters
per day. Milkraft sells loose and processed milk in the Jalna
region. Mr Kapil Rajput who is the director manages the day-to-
day operations of Milkraft.

Milkraft reported, on a provisional basis, a profit after tax
(PAT) of INR12.5 million on net sales of INR600 million for
2010-11, against a PAT of INR1.1 million on net sales of
INR250 million for 2009-10.


P AND S SHRINGAR: CRISIL Reaffirms 'CRISIL BB' Cash Credit Rating
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of P and S Shringar Pvt
Ltd continue to reflect the P&S group's moderate financial risk
profile, marked by a large net worth, and the benefits that the
group derives from its promoters' experience.

   Facilities                         Ratings
   ----------                         -------
   INR450.0 Million Cash Credit       CRISIL BB/ Stable
   (Enhanced from INR142.5 Million)

   INR300.0 Million Letter of Credit  CRISIL A4+
   (Enhanced from INR100.0 Million)

These rating strengths are partially offset by the P&S group's
working-capital-intensive operations and limited pricing power
because of the intensely competitive nature of the jewellery
industry.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of PSSPL and P&S Jewellery Ltd (PSJL) as
the two entities (together referred to as the P&S group) are
under a common management and in the same line of business.

Outlook: Stable

CRISIL believes that the P&S group will continue to benefit over
the medium term from its promoters' experience in the jewellery
industry and its established relationship with its customers. The
outlook may be revised to 'Positive' if the group increases its
revenues substantially, while it maintains its profitability
margins, or if it improves its working capital management.
Conversely, the outlook may be revised to 'Negative' if the P&S
group's profitability declines steeply from the current levels or
if there is deterioration in the group's financial risk profile
because of larger-than-expected working capital requirements.

                          About the Group

The P&S group, set up in 1992 by Mr. Chhabildas Shah and Mr.
Paresh Shah, manufactures diamond-studded gold jewellery. The
group's entities PSJL and PSSPL are focused on the export and
domestic markets respectively. PSSPL derives 20% of its revenues
from diamond trading.

PSSPL reported a provisional profit after tax (PAT) of INR16.99
million on net sales of INR3.47 billion for 2010-11 (refers to
financial year, April 1 to March 31), against a PAT of INR9.35
million on net sales of INR1.29 billion for 2009-10.


RADHA SAKKU: CRISIL Assigns 'CRISIL B+' Rating to INR958.8MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facilities of Radha Sakku Agro Farms Ltd.

   Facilities                       Ratings
   ----------                       -------
   INR958.8 Million Term Loan       CRISIL B+/Stable (Assigned)
   INR300.0 Million Cash Credit     CRISIL B+/Stable (Assigned)
   INR1.2 Mil. Proposed Long-Term   CRISIL B+/Stable (Assigned)
                    Bank Facility

The rating reflects RSAFL's exposure to project implementation
and funding risks. This rating weakness is partially offset by
the extensive experience of RSAFL's promoters in commercial egg
production and the Sakku group's established brand, Sakku.

Outlook: Stable

CRISIL believes that RSAFL will benefit from its promoters'
extensive experience in setting up facilities and utilise the
group's established market position and brand to successfully
commercialise its operations. The outlook may be revised to
'Positive' in case the company successfully stabilises its
operations without any time or cost overruns and generates
adequate cash accruals to service its debt obligations.
Conversely, the outlook may be revised to 'Negative' if RSAFL's
debt servicing ability deteriorates either due to significant
time or cost overruns or generation of less-than-expected net
cash accruals.

                          About Radha Sakku

RSAFL was established in 2010 as a limited company by Mr. Venkata
Rao and his family members. RSAFL is a subsidiary of Venkatrama
Poultries Ltd (VPL; rated 'CRISIL BB+/Stable'), which is part of
the Sakku group. VPL owns 84.93% of RSAFL's shares, 12.93% is
held by two other Sakku group entities, while family members hold
the remainder.

The company is currently setting up a 2-million commercial layers
capacity in an environmentally-controlled rearing system in
Vijayanagaram district (Andhra Pradesh). RSAFL will set up a
grower facility at Alajangi village and layers facility at Karlam
and Mettupalli villages (all in Vijayanagaram district). The
total project cost is estimated at INR1411.9 million, which is
being funded through a term loan of INR1043.4 million and equity
share capital of INR368.5 million. Till date, RSAFL has invested
equity of INR50 million in the project. The project is expected
to be completed by December 2012.


SANTOSH OVERSEAS: CRISIL Reaffirms 'CRISIL BB' Cash Credit Rating
-----------------------------------------------------------------
CRISIL's ratings on Santosh Overseas Ltd's bank facilities
continue to reflect the healthy growth opportunities for the
company in the basmati rice export industry and improving
business diversity.  This strength is partially offset by SOL's
below-average financial risk profile, marked by high gearing and
modest debt protection metrics, large working capital
requirements, and susceptibility to fluctuations in raw material
prices, vagaries of the monsoon, and adverse regulatory changes.

   Facilities                    Ratings
   ----------                    -------
  INR1.4 Billion Cash Credit     CRISIL BB/Positive (Reaffirmed)
  INR90 Million Long-Term Loan   CRISIL BB/Positive (Reaffirmed)
  INR10 Million Letter of Credit CRISIL A4+ (Reaffirmed)
               & Bank Guarantee

For arriving at the rating CRISIL has treated part of unsecured
loans as neither debt nor equity. The promoters have regularly
infused the unsecured loans in the business over the past three
years and have also committed to their bankers that they will
maintain INR180 million of unsecured loans in the business
subordinated to bank loans.

Outlook: Positive

CRISIL believes that SOL will benefit from the healthy demand
prospects for the basmati rice export industry, and the expected
increase in its order book size. The rating may be upgraded if
the company's liquidity improves substantially with improved
collection of receivables, while continuing the healthy revenue
growth. Conversely, the outlook may be revised to 'Stable' if a
significant increase in its inventory or stretching of
receivables leads to material deterioration of its capital
structure.

                         About Santosh Overseas

SOL was set up by Mr. Sunil Mittal in 2007. The company processes
basmati rice (1121 grade), and has a 24 tonne-per-hour (tph) rice
milling plant in Uttar Pradesh. The company began commercial
operations in February 2008 with initial plant capacity of 9 tph,
which was subsequently increased to 24 tph.

In 2010-11 (refers to financial year, April 1 to March 31), the
company added several other products such as chickpeas and sesame
seeds to its portfolio. It has also set-up a processing unit for
sesame seeds.

SOL is estimated to report a profit after tax (PAT) of INR91.4
million on net sales of INR2.9 billion for 2010-11, against a PAT
of INR80.6 million on net sales of INR2.6 billion for 2009-10.


SEJASMI INDUSTRIES: CRISIL Puts 'CRISIL B' Rating on INR60MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Sejasmi Industries (India) Pvt Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR60 Million Cash Credit         CRISIL B/Stable (Assigned)
   INR63.9 Million Rupee Term Loan   CRISIL B/Stable (Assigned)
   INR5 Million Bank Guarantee       CRISIL A4 (Assigned)

The ratings reflect SIPL's small scale of operations with limited
revenue diversity, and average debt protection metrics. These
rating weaknesses are partially offset by the extensive
experience of SIPL's promoter.

Outlook: Stable

CRISIL believes that SIPL will continue to benefit over the
medium term from its promoter's extensive experience and the
stable demand for its product. The outlook may be revised to
'Positive' in case SIPL substantially improves its scale of
operations and operating profitability while maintaining its
capital structure. Conversely, the outlook may be revised to
'Negative' in case of any adverse impact on SIPL's operating
profitability or if the company undertakes any further, large,
debt-funded capital expenditure programme.

                     About Sejasmi Industries

Incorporated in 2006, Gandhinagar (Gujarat)-based SIPL
manufactures aluminium die casting products which are used in the
automobile, electrical, and engineering industries, among others.
Mr. Dahyabhai S Patel manages the overall activities of the
company.

SIPL is estimated to report profit after tax (PAT) of INR1.2
million on net sales of INR111.2 million for 2010-11 (refers to
financial year, April 1 to March 31), as against a adjusted PAT
of INR0.7 million on net sales of INR38.2 million for 2009-10.


SHREE DATTA: CRISIL Rates INR80-Mil. Cash Credit at 'CRISIL BB-'
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to Shree Datta
Fertilizers and Chemical Pvt Ltd's cash credit facility.

   Facilities                     Ratings
   ----------                     -------
   INR80 Million Cash Credit      CRISIL BB-/Stable(Assigned)

The rating reflects SDFCPL's modest scale of operations, large
working capital requirements, the susceptibility of its operating
performance to the level of agricultural activity in and around
Vidarbha (Maharashtra) and its exposure to risks related to
adverse regulatory changes with regard to raw material
procurement. These weaknesses are partially offset by the
extensive experience of SDFCPL's promoters in the fertiliser and
chemical business.

Outlook: Stable

CRISIL believes that SDFCPL will maintain its business risk
profile, backed by the extensive experience of its promoters and
healthy demand for granular fertilisers. The outlook may be
revised to 'Positive' if the company is able to improve its
revenues and net cash accruals significantly, while maintaining
its capital structure and debt protection metrics. Conversely,
the outlook might be revised to 'Negative' if the company's scale
of operations declines or if its working capital cycle stretches,
or if it contracts more-than-expected debt.

                         About Shree Datta

SDFCPL, promoted by Mr. Ashok Ratanlal Soni in 1999, manufactures
nitrogen, phosphorous, and potassium (NPK) granulated mixed
fertilisers. The company sells the NPK granular fertilisers
primarily through a network of dealers in and around Vidarbha.
The company has an installed capacity of around 150 tonnes per
day. SDFCPL sells the fertilizers through its Maniratna brand.
Mr. Swapnil Soni, the son of Mr. Ashok Soni, oversees the overall
operations of the company.

SDFCPL reported a profit after tax (PAT) of INR15 million on net
sales of INR78 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR0.8 million on
operating income of INR57.5 million for 2008-09. SDFCPL's
estimated revenues for 2010-11 are around INR127 million.


SHRI VINAYAK: CRISIL Cuts Rating on INR75MM Loan to 'CRISIL C'
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Shri Vinayak Milk Products Pvt Ltd to 'CRISIL C' from 'CRISIL
B/Stable'.

   Facilities                      Ratings
   ----------                      -------
   INR75 Million Cash Credit       CRISIL C (Downgraded from
                                           'CRISIL B/Stable')

The downgrade reflects significant deterioration in SVMPPL's
liquidity, marked by overdrawn bank limits and low cash accruals.
CRISIL believes that the company's liquidity will remain weak due
to its working-capital-intensive operations. The weak liquidity
is likely to impact SVMPPL's future debt obligations.

SVMPPL also has a weak financial risk profile, marked by a small
net worth, high gearing, and weak debt protection metrics, and
susceptibility to risks related to adverse changes in government
regulations and to epidemic-related and environmental factors.
However, SVMPPL's operations derive benefit from its promoters'
experience in the milk trading business and its established
relationships with milk suppliers and distributors.

                         About Shri Vinayak

SVMPPL, part of the Dwarka group of companies, was originally set
up as a proprietorship concern, Shri Vinayak, by Mr. Devprakash
Rajput in 2001. The firm was reconstituted as a private limited
company with its current name in October 2009. SVMPPL was
primarily involved in distribution of milk till 2009-10 (refers
to financial year, April 1 to March 31). Subsequently, the
company set up a milk processing unit in Kolhapur (Maharashtra)
with a capacity of 100,000 liters per day. In 2010-11, SVMPPL
derived around 40% of its revenues from processing of milk.

In 2010-11, SVMPPL reported, on a provisional basis, a profit
after tax (PAT) of INR26.7 million on net sales of INR812
million. It reported a PAT of INR2.0 million on net sales of
INR530 million for 2009-10.


SPECIALITY INDUSTRIAL: CRISIL Raises INR54MM Loan Rating to BBB-
----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of
Speciality Industrial Polymers and Coatings Pvt Ltd to 'CRISIL
BBB-/Stable/CRISIL A3' from 'CRISIL BB+/Stable/CRISIL A4+'.

   Facilities                       Ratings
   ----------                       -------
   INR150 Million Cash Credit       CRISIL BBB-/Stable (Upgraded
   (Enhanced from 75.00 Million)       from 'CRISIL BB+/Stable')

   INR54 Million Long Term Loan     CRISIL BBB-/Stable (Upgraded
   (Enhanced from INR21.30 Mil.n)      from 'CRISIL BB+/Stable')

   INR5 Million Standby Line of     CRISIL BBB-/Stable (Upgraded
   Credit                             from 'CRISIL BB+/Stable')

   INR4.3 Million Proposed Long     CRISIL BBB-/Stable (Assigned)
        Term Bank Loan Facility

   INR150 Million Letter of Credit  CRISIL A3 (Upgraded from
   (Enhanced from INR80.00 Million)            'CRISIL A4+')

The upgrade reflects CRISIL's expectation of healthy growth in
SIPCL's revenues coupled with stable margins, leading to
improvement in the company's cash accruals and hence
strengthening of its financial risk profile. The buoyancy in
revenues is expected to be led by increased offtake by key
customers in the paints industry. The company is also expected to
shortly commission its new capacity at Mahad (Maharashtra), which
will support the increased demand from customers. SIPCL's
financial risk profile has shown an marked improvement in 2010-11
(refers to financial year, April 1 to March 31), driven by a
sharp increase in revenues, stable profitability, and increase in
cash accruals. For 2010-11, SIPCL reported, on a provisional
basis, revenues of INR900.4 million (a year?on?year growth of
61%) and an operating margin of 9.40%.

The ratings reflect SIPCL's promoters' experience, and the
company's established position, in the acrylic polymer industry,
and its above-average financial risk profile. These rating
strengths are partially offset by customer concentration in
SIPCL's revenue profile, and exposure to risks associated with
the company's ongoing project.

Outlook: Stable

CRISIL believes that SIPCL will continue to benefit from its
promoters' experience in the acrylic polymer industry over the
medium term. The outlook may be revised to 'Positive' if SIPCL
generates more-than-expected revenues, profitability, and net
cash accruals, led by significant improvement in volumes, while
maintaining its debt protection metrics. Conversely, the outlook
may be revised to 'Negative' if the company reports lower-than-
expected revenues and profitability, leading to deterioration in
its debt protection metrics or working capital cycle.

                       About Speciality Industrial

SIPCL was originally set up in 2000 as a proprietorship concern,
Speciality Polymers and Coatings, by Mr. Ashok Bhogan, a first-
generation entrepreneur. In 2004, the firm was reconstituted as a
private limited company with the current name. SIPCL manufactures
polycryl, a polymer emulsion, which is used as a binder and has
applications in the paints, construction, and textile industries.
Presently, it is being managed by Mr. Ashok Bhogan. The company
has manufacturing facilities in Taloja (Maharashtra) with a
capacity of 700 tonnes per month (tpm), and in Sitarganj
(Uttaranchal) with a capacity of 900 tpm. It is setting up a new
manufacturing facility in Mahad (Maharashtra), with a total
installed capacity of 1350 tpm; SIPCL plans to increase the
capacity of this unit by 1000 tpm over the medium term.

SIPCL reported a profit after tax (PAT) of INR39.1 million on net
sales of INR900.4 million for 2010-11, against a PAT of INR23.3
million on net sales of INR558.8 million for 2009-10.


VERONICA MARINE: CRISIL Cuts Rating on INR32MM Loan to 'CRISIL C'
-----------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility
of Veronica Marine Exports Pvt Ltd, part of the CEC group, to
'CRISIL C' from 'CRISIL B+/Stable', and has reaffirmed its rating
on the firm's other bank facilities at 'CRISIL A4'.

   Facilities                       Ratings
   ----------                       -------
   INR32 Million Long-Term Loan     CRISIL C (Downgraded from
                                           'CRISIL B+/Stable')

   INR90 Million Bill Discounting   CRISIL A4 (Reaffirmed)

   INR50 Million Packing Credit     CRISIL A4 (Reaffirmed)

   INR10 Million Short-Term Bank    CRISIL A4 (Reaffirmed)
                        Facility

The downgrade reflects the CEC group's weak liquidity, because of
delays in the receipt of DEPB (Duty Entitlement Passbook)
licenses and working-capital-intensive operations, resulting in
full utilisation of its bank lines. The resultant cash flow
mismatches have led to instances of delay by the CEC group in
servicing its term debt in the past six months.

The ratings reflect the CEC group's below-average financial risk
profile, marked by a high gearing and weak debt protection
metrics, susceptibility to volatility in raw material prices and
in foreign exchange rates, and exposure to risks inherent in the
seafood exports industry. These rating weaknesses are partially
offset by the CEC group's established track record in the seafood
exports industry and moderately integrated operations.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Capithan Exporting Company and VME.
This is because both the entities, together referred to as the
CEC group, are in the same line of business, have common
promoters, and fungible cash flows.

                           About the Group

Set up in 1974 and promoted by Mr. Alphonse Joseph, CEC group
processes and exports cuttle fish, peeled undeveined shrimp, fin
fishes, shell fish, and cooked/blanched fish. The group has a
processing plant at Kollam (Kerala), with a total processing
capacity of 103 tonnes per day (tpd) and a cold storage capacity
of 2900 tpd. About 84% of the group's sales are to the European
Union nations, and the rest to Middle East and other Asian
countries.

The CEC group reported, on provisional basis,a profit after tax
(PAT) of Rs 28.1 million on net sales of INR1.39 billion for
2010-11 (refers to financial year, April 1 to March 31); the
group reported a PAT of INR14.3 million on net sales of INR964
million for 2009-10.


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


HALLMARK TRUST: Moody's Lowers Rating on Class B Sr Notes to Ba2
----------------------------------------------------------------
Moody's Japan K.K. has downgraded the rating of Class B Senior
Beneficial Interest of Hallmark Trust Series 2008-1 to Ba2(sf)
from Baa2 (sf).

Deal Name: Hallmark Trust Series 2008-1

JPY730 million of Class B Senior Beneficial Interests,
Downgraded to Ba2 (sf) from Baa2 (sf);

Previously on June 27, 2011, Baa2 (sf) placed under review for
possible downgrade

Class : Class B Senior Beneficial Interests

Issue Amount: JPY730 million

Closing Date: July 3, 2008

Final Maturity Date: May 3, 2045

Underlying Assets: Investment-purpose and residential housing
loan receivables

The Seller entrusted a pool of its investment-purpose and
residential housing loan receivables to the Asset Trustee, and in
turn received Class A and Class B Senior Beneficial Interests and
Subordinated Beneficial Interests.

The Seller sold the Senior Beneficial Interests to investors,
while it holds Subordinated Beneficial Interests. The principal
redemptions of the Senior Beneficial Interests are made in a
sequential basis. The Class A Senior Beneficial Interest and the
Class B Senior Beneficial Interests are rated by Moody's.

Rating Rationale

The rating actions mainly reflect the fact that the underlying
loans have performed worse than Moody's expectation.

The underlying loan pool consists of investment-purpose
condominium loans and residential mortgage loans. Many loans in
the pool became delinquent or defaulted shortly after the closing
date.

Moody's believes the less creditworthy loans -- such as loans
originated through inappropriate solicitation by real estate
agents -- could not have been excluded in their origination
process.

Moody's has been carefully monitoring to see whether the high
default rate would moderate over time as such problematic loans
tend to default more in the early stages of a deal. But the
default rate has remained high so far.

Moody's believes the recent defaults have not been caused by the
special reasons found in the defaults at the early stages, but by
general reasons of default for investment-purpose condominium
loans. The latter include unemployment, decrease in income of
obligors, decrease in income from rents of investment-purpose
condominiums due to vacancies, or other reasons.

The pool's obligor attribution (DTI, annual income, balance of
other debts, etc.) is worse than that of the general investment-
condominium loan pools. As such, Moody's thinks defaults due to
these general reasons will continue to occur.

Although defaults have been occurring at a higher pace than
Moody's initial expectation, the negative impact on the deal has
been somewhat eased by the default-trap, repurchase of defaulted
loans and principal redemption of the senior-most tranche from
sequential redemption.

But Moody's believes the rating of Class B Senior Beneficial
Interests should be downgraded as the higher-than-expected
default rate is likely to continue.

Primary sources of assumption uncertainty are the current
macroeconomic environment, especially the unemployment rate and
salary (including bonuses) level, rent and vacancy of properties,
and interest rates.

Moody's makes the assumption that a cumulative gross loss rate of
underlying assets follows a stochastic distribution, and has
created scenarios which have different cumulative gross loss
rates, using this distribution.

Moody's then ran a cash flow simulation for each scenario.
Conservative assumptions were made for other parameters such as
the recovery rates of defaulting loans such that a cash flow
simulation could be run under stress conditions corresponding to
the target rating level.

The principal methodology used in this rating was "Updated:
Moody's Approach to Rating RMBS Transactions in Japan" published
on September 30, 2010, and available on www.moodys.co.jp.

Moody's did not receive or take into account a third party due
diligence report on the underlying assets or financial
instruments related to the monitoring of this transaction in the
past six months.


L-STARS ONE: Moody's Downgrades Rating on Class E Notes to 'Ba3'
----------------------------------------------------------------
Moody's Japan K.K. has changed the ratings of Class A through
Class E, and Class N-1 through Class N-2 issued by L-STaRS One
Funding Limited.

Deal Name: L-STaRS One Funding Limited

JPY8.74 billion of Class A, Downgraded to Aa1 (sf) from Aaa
(sf);

Previously on June 27, 2011, Aaa (sf) placed under review for
possible downgrade

JPY450 million of Class B, Downgraded to Aa3 (sf) from Aa2 (sf);

Previously on June 27, 2011, Aa2 (sf) placed under review for
possible downgrade

JPY300 million of Class C, Downgraded to A3 (sf) from A2 (sf);

Previously on June 27, 2011, A2 (sf) placed under review for
possible downgrade

JPY150 million of Class D, Downgraded to Baa2 (sf) from Baa1
(sf);

Previously on June 27, 2011, Baa1 (sf) placed under review for
possible downgrade

JPY100 million of Class E, Downgraded to Ba3 (sf) from Ba1 (sf);

Previously on June 27, 2011, Ba1 (sf) placed under review for
possible downgrade

JPY140 million of Class N-2, Downgraded to Ba1 (sf) from Baa3
(sf);

Previously on June 27, 2011, Baa3 (sf) placed under review for
possible downgrade

JPY1.10 billion of Class N-1, Upgraded to A2 (sf) from Baa1
(sf);

Previously on June 27, 2011, Baa1 (sf) placed under review for
possible upgrade

Class:  Class A, Class B, Class C, Class D, Class E, Class N-1,
        Class N-2

Issue Amount: JPY11.2 billion

Coupon: Floating (Class A through Class D), Fixed (Class N-1),
        None (Class E and Class N-2)

Issue Date:  November 29, 2006

Final Maturity Date:  October 27, 2043

Underlying Assets: Investment-purpose condominium loans and
                   residential mortgage loans

Originators: Libertus Jutaku Loan K.K. and New Century Finance
             Co. Ltd.

Servicer/Special Servicer: Capital Servicing Co. Ltd.

Note/Bond Trustee: Deutsche Trustee Co. Ltd.

Advancing Agent: Lehman Brothers Japan Inc.
                 (as of the issue date)

Arranger: Lehman Brothers Japan Inc. (as of the issue date)

A loan pool mainly consisting of Originators' investment-purpose
condominium loans was assigned to L-STaRS One Special Purpose
Company (the Bond Issuer). The Bond Issuer issued Bonds that are
backed by the loan pool.

L-STaRs One Funding Limited (the Note Issuer) purchased the Bonds
and issued Notes Class A through Class F and Class N-1 through
Class N-2 backed by the Bonds. The Class A through Class E, and
Class N-1 through Class N-2 are rated by Moody's.

Rating Rationale

The rating actions mainly reflect the fact that the underlying
loans have performed worse than Moody's expectation.

The underlying loan pool consists of investment-purpose
condominium loans and residential mortgage loans. Many loans in
the pool became delinquent or defaulted shortly after the closing
date.

Moody's believes the less creditworthy loans -- such as loans
originated through inappropriate solicitation by real estate
agents -- could not have been excluded in their origination
process.

Moody's has been carefully monitoring to see whether the high
default rate would moderate over time as such problematic loans
tend to default more in the early stages of a deal. But the
default rate has remained high so far.

Moody's believes the recent defaults have not been caused by the
special reasons found in the defaults at the early stages, but by
general reasons of default for investment-purpose condominium
loans. The latter include unemployment, decrease in income of
obligors, decrease in income from rents of investment-purpose
condominiums due to vacancies, or other reasons.

The pool's obligor attribution (DTI, annual income, balance of
other debts, etc.) is worse than that of the general investment-
condominium loan pools. As such, Moody's think defaults due to
these general reasons will continue to occur.

Although defaults have been occurring at a faster pace than
Moody's expectation, the negative impact on the deal has been
somewhat eased by the following factors:

Higher-than-expected recovery rate, principal redemption of the
senior-most class from sequential redemption and net-loss trap by
sufficient excess spread.

But Moody's believes that many tranches of the deal should be
downgraded, given that a higher-than-expected default rate will
continue.

Also, Class N-1 has been redeemed thanks to the sufficient excess
spread and higher-than-expected recovery rate. Moody's has
upgraded the rating of Class N-1, reflecting the fact that the
redemption of the tranche makes it more likely that the tranche
can be fully redeemed, despite the worse-than-expected
performance.

Primary sources of assumption uncertainty are the current
macroeconomic environment, especially the unemployment rate and
salary (including bonuses) level, rent and vacancy of properties,
as well as interest rate.

Moody's makes the assumption that a cumulative gross loss rate of
underlying assets follows a stochastic distribution, and has
created scenarios which have different cumulative gross loss
rates, using this distribution.

While rating Class N-1 and Class N-2, Moody's uses higher
prepayment rate as the credibility of Class N-1 and Class N-2 is
more sensitive to prepayment rate.

Moody's then ran a cash flow simulation for each scenario.
Conservative assumptions were made for other parameters such as
the recovery rates of defaulting loans such that a cash flow
simulation could be run under stress conditions corresponding to
the target rating level.

The principal methodology used in this rating was "Updated:
Moody's Approach to Rating RMBS Transactions in Japan" published
on September 30, 2010, and available on www.moodys.co.jp.

Moody's did not receive or take into account a third party due
diligence report on the underlying assets or financial
instruments related to the monitoring of this transaction in the
past six months.


L-STARS TWO: Moody's Lowers Rating on Class N Notes to 'Ba2'
------------------------------------------------------------
Moody's Japan K.K. has downgraded the rating of Class N issued by
L-STaRS Two Funding Limited to Ba2 (sf) from Baa2 (sf).

At the same time, it has confirmed the ratings of Class A, Class
B, Class C, Class D issued by L-STaRS Two Funding.

Deal Name: L-STaRS Two Funding Limited

JPY25 billion of Class A, Confirmed at Aaa(sf);

Previously on June 27, 2011, Aaa (sf) placed under review for
possible downgrade

JPY820 million of Class B, Confirmed at Aa2(sf);

Previously on June 27, 2011, Aa2 (sf) placed under review for
possible downgrade

JPY820 million of Class C, Confirmed at A1(sf);

Previously on June 27, 2011, A1 (sf) placed under review for
possible downgrade

JPY300 million of Class D, Confirmed at Baa1(sf);

Previously on June 27, 2011, Baa1 (sf) placed under review for
possible downgrade

JPY2.9 billion of Class N, Downgraded to Ba2(sf) from Baa2(sf);

Previously on June 27, 2011, Baa2 (sf) placed under review for
possible downgrade

Class: Class A, Class B, Class C, Class D, Class N

Issue Amount: JPY30.4 billion

Coupon: Floating (Class A through Class D), Fixed (Class N)

Issue Date: November 19, 2007

Final Maturity Date: August, 2044

Underlying Assets: Investment-purpose condominium loans
                   and residential mortgage loans

Originators: Libertus Jutaku Loan K.K.
             and New Century Finance Co., Ltd.

Servicer/Special Servicer: Capital Servicing Co. Ltd.

Note/Bond Trustee: Deutsche Trustee Co. Ltd.

Advancing Agent: Lehman Brothers Japan Inc.
                 (as of the issue date)

Arranger: Lehman Brothers Japan Inc.
          (as of the issue date)

A loan pool mainly consisting of the Originators' investment-
purpose condominium loans was assigned to L-STaRS Two Special
Purpose Company (the Bond Issuer). The Bond Issuer issued Bonds
that are backed by the loan pool.

L-STaRs Two Funding Limited (the Note Issuer) purchased the Bonds
and issued Notes Class A through Class E and Class N backed by
the Bonds. The Class A through Class D, and Class N are rated by
Moody's.

Rating Rationale

The rating actions mainly reflect the fact that the underlying
loans have performed worse than Moody's expectation.

The underlying loan pool consists of investment-purpose
condominium loans and residential mortgage loans. Many loans in
the pool became delinquent or defaulted shortly after the closing
date.

Moody's believes the less creditworthy loans -- such as loans
originated through inappropriate solicitation by real estate
agents -- could not have been excluded in their origination
process.

Moody's has been carefully monitoring to see whether the high
default rate would moderate over time as such problematic loans
tend to default more in the early stages of a deal. But the
default rate has remained high so far.

Moody's believes the recent defaults have not been caused by the
special reasons found in the defaults at the early stages, but by
general reasons of default for investment-purpose condominium
loans.

The latter include unemployment, decrease in income of obligors,
decrease in income from rents of investment-purpose condominiums
due to vacancies, or other reasons.

The pool's obligor attribution (DTI, annual income, balance of
other debts, etc.) is worse than that of the general investment-
condominium loan pools. As such, Moody's thinks defaults due to
these general reasons will continue to occur.

Given that the higher-than-expected default rate is expected to
continue, Class N's full redemption, which relies mainly on
excess spreads, is less likely, as the excess spreads would be
used for default-trap. Therefore, Moody's downgraded Class N.

On the other hand, the levels of credit enhancement for Class A
through Class D have increased due to the redemption of the
senior-most tranche (sequential redemption) and the default-trap
by sufficient excess spreads.

Moody's has confirmed the ratings of Class A through Class D,
considering they can maintain the creditworthiness their ratings
indicate, despite worse-than-expected performance.

Primary sources of assumption uncertainty are the current
macroeconomic environment, especially the unemployment rate and
salary (including bonuses) level, rent and vacancy of properties,
as well as interest rate.

Moody's makes the assumption that a cumulative gross loss rate of
underlying assets follows a stochastic distribution, and has
created scenarios which have different cumulative gross loss
rates, using this distribution.

While rating Class N, Moody's uses higher prepayment rate as the
credibility of Class N is more sensitive to prepayment rate.

Moody's then ran a cash flow simulation for each scenario.
Conservative assumptions were made for other parameters such as
the recovery rates of defaulting loans such that a cash flow
simulation could be run under stress conditions corresponding to
the target rating level.

The principal methodology used in this rating was "Updated:
Moody's Approach to Rating RMBS Transactions in Japan" published
in September 30, 2010, and available on www.moodys.co.jp.

Moody's did not receive or take into account a third party due
diligence report on the underlying assets or financial
instruments related to the monitoring of this transaction in the
past six months.



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


KOREA ELECTRIC: President offers to Step Down
---------------------------------------------
Yonhap News reports that the president of South Korea's state-run
power company, Korea Electric Power Corp. (KEPCO), has offered to
step down though his successor has yet to be named.

Yonhap, citing an official from the Ministry of Knowledge
Economy, relates that Kim Ssang-su's three-year term is scheduled
to expire Friday and so he has offered to step down on Monday.
The KEPCO will temporarily be run by one of its vice presidents.

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 22, 2011, Yonhap News said that a group of shareholders of
Korea Electric Power Corp. filed a lawsuit against its president,
Kim Ssang-su, claiming KEPCO suffered losses due to his failure
to adequately raise electricity prices in a timely manner.
According to the news agency, company officials said the group,
consisting of 13 small shareholders, claimed Mr. Kim's failure
caused KRW2.8 trillion (US$2.6 billion) in damage to the company
over the past three years.  They demanded Mr. Kim pay the money
to the company in the suit filed with a Seoul court on Aug. 2,
2011.

Korea Electric Power Corporation (KEPCO), an integrated electric
utility company, engages in the generation, transmission, and
distribution of electricity in South Korea. The company generates
power from nuclear, coal, oil, liquefied natural gas, hydro,
wind, and solar sources.  The South Korean government owns a 51%
share of KEPCO.



===============
M A L A Y S I A
===============


NGIU KEE: External Auditors Express Disclaimer of Opinion
---------------------------------------------------------
Pursuant to Rule 9.19 (37) of the Listing Requirements of Bursa
Malaysia Securities Berhad for the Main Market, Ngiu Kee
Corporation Berhad disclosed that Messrs. Baker Tilly Monteiro
Heng, the External Auditors of the Company, had expressed a
disclaimer of opinion in their Auditors' Report for the AFS
March 31, 2011:

Basis for Disclaimer of Opinion

"During the financial year, the Group and the Company incurred
net losses of MYR50,872,532 and MYR10,303,957 respectively.  As
at March 31, 2011, the current liabilities of the Group exceeded
its current assets by MYR28,623,315 and recorded a capital
deficiency of MYR38,681,718.

The ability of the Group and the Company to continue as a going
concern is dependent on the favorable outcome from the
negotiations with the bank and material litigation as disclosed
in the note to the financial statements, the successful
implementation of any regularization plan to restore its
financial position and achieving sustainable and viable
operations.

Should any of the above matters not be successful, the
application of the going concern concept may be inappropriate and
adjustments may be required to, inter alia, write down assets to
their immediate realizable value, reclassify all long term assets
and liabilities as current and to provide for further costs which
may arise.

Auditors have not been able to obtain sufficient appropriate
evidence regarding the plan to achieve sustainable and viable
operation and the outcome from the negotiations with its
financial institutions remain in doubt at this stage.

In addition, the Group incurred a gross loss of MYR18,796,561
during the financial year from the higher consumption of
inventories due to the rapid turnaround of inventories as a
result of the stock clearances conducted by the Group. Owing to
the nature of the record of the Group, the tracing of the
clearance of these inventories was impractical during the
financial year."

Due of the significance of the matters discussed in the above
Basis for Disclaimer of Opinion paragraphs, the External Auditors
do not express an opinion on the financial statements.

                          About Ngiu Kee

Ngiu Kee Corporation (M) Berhad (NKC) is a Malaysia-based
company.  The Company is an investment holding company with its
subsidiary companies involved in the operation of supermarkets
and departmental stores in East Malaysia.  The Company's
subsidiaries include Ngiu Kee Sdn. Bhd., which is engaged in
investment holding, and operating a supermarket and departmental
store; B.I.G. Store Sdn. Bhd., which is engaged in investment
holding; Pacific-Ngiu Kee Sdn. Bhd., which is engaged in
operating a supermarket and departmental store; Ngiu Kee (Sibu)
Sdn. Bhd., which is engaged in operating a supermarket and
departmental store; Ngiu Kee (Wisma Saberkas)Sdn. Bhd., which is
engaged in operating a supermarket and departmental store; Ngiu
Kee (Sarikei) Sdn. Bhd., which is engaged in operating a
supermarket and departmental store and Ngiu Kee (Mukah) Sdn.
Bhd., which is engaged in operating a supermarket and
departmental store.

                         *     *     *

Ngiu Kee Corporation (M) Berhad has been classified as a Practice
No. 17 company based on the criteria set by the Bursa Malaysia
Securities Bhd.

According to a disclosure statement with the bourse, NKCB has
triggered one of the prescribed criteria under paragraph 2.1(f).
The company's subsidiary has defaulted in its loan payment and is
unable to provide a solvency declaration to the exchange.


RANHILL BERHAD: Unit Faces Winding Up Petition
----------------------------------------------
Ranhill Berhad said that its wholly owned subsidiary, Ranhill
Engineers and Constructors Sdn Bhd, was served with a winding up
petition under Section 218 of the Companies Act 1965 by Waiko
Engineering Works Sdn Bhd on Aug. 19, 2011.

The winding up petition was filed by WEWSB towards REC and
presented to Court on Aug. 11, 2011, and subsequently served to
REC on Aug. 19, 2011.

WEWSB is one of the subcontractors for REC in regards of the
Senai-Pasir Gudang-Desaru Expressway project.

WEWSB is claiming for a payment of MYR6,479,570.10, being the
amount allegedly due and owing by REC without any Judgment or
Order from the Court.

REC is not a major subsidiary of Ranhill pursuant to the
definition provided in the Main Market Listing Requirements of
Bursa.

Based on the unaudited third quarter results of Ranhill as at
March 31, 2011, the total cost of investment the Company have
made in REC amounts to MYR1,712,000.00.

The winding up proceeding is not expected to have any material
financial and operational impact on Ranhill and its group of
Companies for the financial year ending Dec. 31, 2011.

The winding up proceeding has been fixed for hearing on
Oct. 24, 2011.

REC is opposing the winding up petition. REC's solicitor is of
the view that the winding up petition is made mala fide and is an
abuse of the process of the Court.

                       About Ranhill Berhad

Headquartered in Kuala Lumpur, Malaysia, Ranhill Berhad --
http://www.ranhill.com.my-- provides engineering, procurement
and construction services.  The firm's other activities include
provision of engineering, procurement, construction and project
management services; facilities management, property investment
and investment holding.  It operates solely in the domestic
market.

As reported in the Troubled Company Reporter-Asia Pacific on
June 14, 2011, Standard & Poor's Ratings Services affirmed its
'B-' long-term corporate credit rating on Malaysia-based
utilities and construction company Ranhill Bhd. The outlook is
stable. The rating was removed from CreditWatch, where it had
been placed with negative implication on Dec. 30, 2010.  S&P then
withdrew the rating at the company's request.

"At the same time, we withdrew the 'CCC+' issue rating on the
$220 million, 12.5% senior unsecured notes due October 2011,
issued by Ranhill (L) Ltd., on their full, voluntary early
redemption on June 6, 2011. Ranhill guaranteed the notes," S&P
said.

"We affirmed the rating and removed it from CreditWatch because
we believe Ranhill's full repayment of the US$220 million in
senior unsecured notes has improved its liquidity," said Standard
& Poor's credit analyst Andrew Wong. "Nevertheless, we believe
Ranhill's liquidity remains less than adequate."


SATANG HOLDINGS: RHB Bank Withdraws Writ of Summons
---------------------------------------------------
Satang Holdings Berhad said that RHB Bank Berhad had on April 18,
2011, withdrawn the Writ of Summon and Statement of Claim filed
against Satang Environmental Sdn Bhd, a wholly owned subsidiary
of the Company without liberty to file afresh and with no order
as to costs.

As reported in the Troubled Company Reporter-Asia Pacific on
March 17, 2011, Satang Holdings has been served a Writ of Summon
and Statement of Claim dated Feb. 25, 2011, filed by RHB Bank
Berhad against Satang Environmental Sdn Bhd, a wholly owned
subsidiary of the Company.  The Writ of Summon and Statement of
Claim was received by the Company on March 14, 2011, from Messrs.
C. L. Boo & Associates, the solicitor of RHB Bank.

RHB Bank is claiming for the sum of MYR27,040.61 relating to the
outstanding installment payment under the hire-purchase agreement
with the interest of 8% p.a. charged from Feb. 24, 2011, until
the full settlement of the amount claimed by the plaintiff.

                       About Satang Holdings

Satang Holdings Berhad is a Malaysia-based holding company.  The
Company is engaged in investment holding activities.  The
Company's direct wholly owned subsidiary, Satang Jaya Sdn Bhd.,
is a maintenance, repair and overhaul service provider of safety
and survival equipment for the defense, aviation and maritime
industries in Malaysia.  It is also a supplier of equipment,
accessories and spare parts for these industries.  The offered
MRO services are for aircrew/passenger lifejackets, life rafts,
survival packs, emergency breathing systems, fire fighting
equipment, emergency parachutes, safety harnesses, aircraft
arresting systems, aircraft crash and salvage equipment, ejection
seats, hydrostatic tests for all types of aviation cylinders, and
search and rescue beacons.  The Company's other subsidiaries
include Satang Dagangan Sdn. Bhd., Satang Mechatronic Sdn. Bhd.,
Satang Sar Services Sdn. Bhd., Satang GSE Services Sdn. Bhd. and,
Satang Environmental Sdn. Bhd.

                           *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
May 13, 2008, Satang Holdings Berhad triggered Paragraph 2.1 of
the Amended Practice Note 17/2005 as its independent auditor,
Anuarul Azizan Chew & Co., concluded in its Audit Investigative
Reports that out of the MYR39.27 million alleged overstated
revenue of the company, MYR35.43 million represents invalid sales
which should not be recorded in the books for the financial year
ended September 30, 2007.


TRIPLC BERHAD: Files Suit vs Eurisco Over Advance Payment Refund
----------------------------------------------------------------
TRIplc Berhad had through its solicitors instituted legal
proceedings against Eurisco Bina Sdn Bhd on Aug. 19, 2011, via
the filing of the Writ of Summons dated Aug. 19, 2011, for
recovery of advance payment made to Eurisco for preparation,
submission and negotiation of the bid for Jalan Benta-Jerantut,
Maran, Pahang upgrading works pursuant to an agreement in
September 2010 entered between the Company and Eurisco.

In the Statement of Claim, the Company is seeking:

   i. the advance payment of MYR1,500,000;

  ii. interest at the rate of 8% on MYR1,500,000 from the
      date of judgment to the date of full payment;

  iii. costs; and

   iv. such further or other relief as deemed fit and proper by
       the High Court.

                            About TRIPLC

TRIPLC Berhad operates in four segments: property development,
which is engaged in the development of residential and
commercial properties; property construction, which is involved
in the construction of commercial properties; manufacturing and
trading, engaged in the manufacturing and trading of plywood,
blockboard and timber products, and others, which is engaged in
investment holding and investment of property.

On May 8, 2006, the company was classified as an affected listed
issuer of the Amended Practice Note 17 category of the Bursa
Malaysia Securities Bhd.  Accordingly, as stipulated in the
listing requirements of the bourse, the company is required to
submit a regularization plan to relevant authorities which is
aimed at stabilizing the company's financial condition.


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


DESIGNLINE INT'L: Malaysian Buys Bus Maker for Undisclosed Amount
-----------------------------------------------------------------
Marta Steeman at BusinessDay.co.nz reports that DesignLine
International Holdings (NZ) has been sold to a joint venture in
which Malaysian interests have a controlling stake.

BusinessDay.co.nz relates that one of the receivers, Keiran Horne
of HFK, said a joint venture of Malaysian, United States, and
New Zealand parties had bought the company, but the purchase
price was not being disclosed.  The price would be revealed in
the receivers' second report, she said.

However, it seems likely to be less than the NZ$3.8 million owed
to the Bank of New Zealand, the first ranking secured creditor,
BusinessDay.co.nz notes.

According to BusinessDay.co.nz, Ms. Horne said the BNZ was likely
to get most of its money back but that would depend on what
residual stock -- still to be sold -- was worth.

Ms. Horne said DesignLine NZ had been sold as a going concern and
most staff had been retained, BusinessDay.co.nz relates.

Ms. Horne, as cited by BusinessDay.co.nz, expected to sell
residual stock over the next few months.

BusinessDay.co.nz adds that Ms. Horne also expected the Glosson
family, of North Carolina, who led the previous American
shareholders, to have a stake in the joint venture through
providing the intellectual technology.

DesignLine was placed in liquidation earlier in June by the
High Court in Christchurch after two creditors, owed
NZ$1.8 million, petitioned for that.  The court was told that
DesignLine had an estimated NZ$10 million in liabilities.

After that, the BNZ, the only secured creditor, appointed
receivers to sell the business and get back what the bank is
owed, about NZ$2.5 million according to the latest filed
accounts, which are out of date, for the year to Dec. 31, 2008.

DesignLine International, founded in 1985 by Ashburton
entrepreneur John Turton, is a bus maker company.  The buses were
sold locally and also exported.  BusinessDay said Mr. Turton sold
a large part of the company to U.S. investors Buster and Brad
Glosson at the end of 2006.  DesignLine has about 80 staff at its
Rolleston operations.


=================
S I N G A P O R E
=================


ALLIED COMPANY: Creditors' Proofs of Debt Due Sept. 23
------------------------------------------------------
Creditors of Allied Company Pte Ltd, which is in creditors'
voluntary liquidation, are required to file their proofs of debt
by Sept. 23, 2011, to be included in the company's dividend
distribution.

The company's liquidator is:

          Mah Beng Weng
          102E Pasir Panjang Road
          #02-03 Citilink Complex
          Singapore 118529


ALPHOMEGA RESEARCH: Court to Hear Judicial Mgt. Bid on Sept. 9
--------------------------------------------------------------
An application to place Alphomega Research Group Ltd (Formerly
Known As Alphomega Research Group Pte Ltd) under judicial
management will be heard before the High Court of Singapore on
Sept. 9, 2011, at 10:00 a.m.

Sajjad Ahmad Akhtar of PKF-CAP Advisory Partners Pte Ltd has been
nominated as the judicial manager.

The Applicant's solicitors are:

          Drew & Napier LLC
          10 Collyer Quay
          #10-01 Ocean Financial Centre
          Singapore 049315


BELUGA CHARTERING: Court to Hear Wind-Up Petition on Sept. 2
------------------------------------------------------------
A petition to wind up the operations of Beluga Chartering Asia
Pte Ltd will be heard before the High Court of Singapore on
Sept. 2, 2011, at 10:00 a.m.

B.S.K. Stevedoring Pte Ltd filed the petition against the company
on Aug. 10, 2011.

The Petitioner's solicitors are:

          Hin Tat Augustine & Partners
          No. 20 Upper Circular Road
          #02-10/12 The Riverwalk
          Singapore 058416


BELUGA PROJECTS: Court to Hear Wind-Up Petition on Aug. 26
----------------------------------------------------------
A petition to wind up the operations of Beluga Projects
(Singapore) Pte Ltd will be heard before the High Court of
Singapore on Aug. 26, 2011, at 10:00 a.m.

Bluefin Project Marine Limited filed the petition against the
company on Aug. 10, 2011.

The Petitioner's solicitors are:

          Messrs. Dennis Mathiew
          7500A Beach Road
          #06-302 The Plaza
          Singapore 199591


ELECTRO-SYSTEMS INDUSTRIES: Court Enters Wind-Up Order
------------------------------------------------------
The High Court of Singapore entered an order on Aug. 5, 2011, to
wind up the operations of Electro-Systems Industries Pte Ltd.

Robert Bosch (South East Asia) Pte Ltd filed the petition against
the company.

The company's liquidator is:

         The Official Receiver
         Insolvency & Public Trustee's Office
         The URA Centre (East Wing)
         45 Maxwell Road, #06-11
         Singapore 069118


LEHMAN BROTHERS: Creditors' Proofs of Debt Due Sept. 5
------------------------------------------------------
Creditors of Lehman Brothers Finance Asia Pte Ltd, which is in
creditors' voluntary liquidation, are required to file their
proofs of debt by Sept. 5, 2011, to be included in the company's
dividend distribution.

The company's liquidators are:

         Chay Fook Yuen
         Bob Yap Cheng Ghee
         Tay Puay Cheng
         c/o KPMG Advisory Services Pte. Ltd.
         16 Raffles Quay
         #22-00 Hong Leong Building
         Singapore 048581


* Moody's Says Singapore REITs Favor Greenfield Developments
------------------------------------------------------------
Moody's Investors Service says that numerous Singapore Real
Estate Investment Trusts (S-REITs) have pursued greenfield
developments this year.

As outlined in the recently released Special Comment on S-REITs,
Ascendas REIT (A3 stable), CapitaCommercial Trust (Baa1 Stable),
CapitaMall Trust (A2 stable), K-REIT Asia (Baa3 stable), and AIMS
AMP Capital Industrial REIT (Ba2 stable) have all announced new
developments.

High valuations driven by increased competition for properties
have posed challenges for S-REITs trying to acquire yield-
accretive assets in Singapore.

"Low interest rates and more buyers competing for the same
buildings have raised prices for already-developed properties,
thus making development projects increasingly attractive for S-
REITs," says Alvin Tan, author of the Special Comment and an
Analyst at Moody's.

However, such projects raise risks in property development and
put pressure on key credit metrics during their construction
because S-REITs take on additional debt before the properties are
able to generate income from tenants. They are therefore
generally viewed negatively by Moody's.

"Nonetheless, Moody's existing ratings for S-REITs already factor
in a cushion for such developments, such as those announced so
far this year," says Tan.

Trusts have also taken several steps involving their sponsors or
contractual obligations with builders and managing agents to
minimize exposure to property development risks.

Additionally, regulatory restrictions limit S-REITs development
activities.

"The Monetary Authority of Singapore's cap on development
activities at 10% of the total value of property owned by S-REITs
keeps S-REITs within Moody's investment-grade criteria for this
rating factor according to Moody's rating methodology for REITs
and other commercial property firms," says Tan.

The Special Comment: "S-REITs Favor Greenfield Development Over
Growth by Acquisition", can be accessed on www.moodys.com


                             *********

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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