/raid1/www/Hosts/bankrupt/TCRAP_Public/120123.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Monday, January 23, 2012, Vol. 15, No. 16
Headlines
A U S T R A L I A
ICON HOTELS: Paradise Bay Eco Resort Placed in Receivership
RMS SERIES 2007-1HE: S&P Cuts Rating on Class B Notes to 'B'
SONRAY CAPITAL: Liquidator Nears Saxo Bank, HLB Judd Settlement
C H I N A
CHAODA MODERN: S&P Keeps 'CCC' Corp. Credit Rating on Watch Neg
CHINA AUTOMATION: Moody's Changes Outlook of 'Ba3' CFR to Neg.
FOSUN INTERNATIONAL: Moody's Revises Outlook on 'Ba2' CFR
H O N G K O N G
COUNTRYWIDE CAPITAL: Commences Wind-Up Proceedings
DYNASTY 2000: Commences Wind-Up Proceedings
EXPO GLOBAL: Members and Creditors' Meetings Set for Feb. 14
GENEVA INT'L: Members and Creditors' Meetings Set for Feb. 14
HANG FUNG: Members and Creditors' Meetings Set for Feb. 14
KAI HANG: Members and Creditors' Meetings Set for Feb. 14
MINGO (ASIA): Creditors' Proofs of Debt Due Feb. 20
OMNIA PRODUCTS: Creditors' Proofs of Debt Due Feb. 20
OVAL ENTERPRISES: Creditors' Proofs of Debt Due Feb. 20
PO MING: Ng and Lui Step Down as Liquidators
I N D I A
BHARAT CEREALS: ICRA Puts '[ICRA]B' Rating to INR43.53cr Limits
CANARA WORKSHOPS: ICRA Rates INR6.93cr Loan at '[ICRA]BB-'
DD INDUSTRIES: ICRA Revises Rating on INR30cr Loan to '[ICRA]BB+'
GEM MANUFACTURING: ICRA Suspends 'LBB' Rating on INR19.8cr Loan
MANMOHAN GINNING: ICRA Puts '[ICRA]B+' Rating on INR8cr Loan
NSL TEXTILES: ICRA Withdraws '[ICRA]BB' Rating on INR367.7cr Loan
OGUN STEELS: ICRA Assigns "[ICRA]B" Rating to Rs.7cr Bank Loan
RADHESHYAM FIBERS: ICRA Reaffirms '[ICRA]BB-' Long Term Rating
SATISH KUMAR: ICRA Assigns '[ICRA]BB' Rating to INR4cr Loan
SRI SRINIVASA: ICRA Assigns '[ICRA]B' Rating to INR9cr Loan
TRISTAR GLOBAL: ICRA Reaffirms '[ICRA]BB+' Cash Credit Rating
VALMARK HOMES: ICRA Places '[ICRA]B' Rating to INR18.5cr Loan
VICKSONS STEELS: ICRA Revises 'BB' Rating on INR4.18cr Loan
VISUELL CREATIONS: ICRA Places '[ICRA]B' Rating on INR5.5cr Loan
I N D O N E S I A
* INDONESIA: Moody's Raises Currency Bond Ratings From 'Ba1'
* Moody's Takes Rating Actions on Indonesia Gov't-Related Issuers
* Moody's Raises Foreign Currency Rating of 9 Banks From 'Ba2'
J A P A N
TOKYO ELECTRIC: State Takeover Could Last at Least 10 Years
N E W Z E A L A N D
PUMPKIN PATCH: Places UK Operations Into Administration
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A U S T R A L I A
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ICON HOTELS: Paradise Bay Eco Resort Placed in Receivership
-----------------------------------------------------------
The Australian reports that Paradise Bay Eco Resort going into
receivership.
"On Dec. 17, 2011, the Directors of Paradise Bay Eco Resort
appointed David Levi as Voluntary Administrator of Icon Hotels
and Resorts Pty Ltd. Subsequently, on Dec. 21, 2011, Darryl Kirk
and I were appointed Receivers and Managers of the company,"
Guy Edwards of PricewaterhouseCooper said in a statement posted
on the Company's Web site.
The Australian says the resort will continue to operate during
January and February. Guests who have booked holidays after that
date are being urged to contact their travel agent, the report
relays.
According to The Australian, Queensland Tourism Industry Council
CEO Daniel Gschwind said last year's natural disasters combined
with the Qantas groundings and high Australian dollar "winded the
industry".
"It created massive cash flow problems . . . and for some, it
proved just too difficult in the end and they could not wait for
the recovery," The Australian quotes Mr. Gschwind as saying.
The Paradise Bay Eco Resort is resort situated on a private beach
on an island in the Whitsundays.
RMS SERIES 2007-1HE: S&P Cuts Rating on Class B Notes to 'B'
------------------------------------------------------------
Standard & Poor's Ratings Services affirmed the ratings on all
classes of notes issued by RMS Series 2007-1HE and RMS Series
2007-2H. "At the same time, we removed the class B ratings from
CreditWatch with negative implications, where they were placed on
Sept. 4, 2011, following our update to the Australian residential
mortgage-backed securities (RMBS) criteria. The loans in the
portfolio had been originated by RHG Home Loans Pty. Ltd.," S&P
said.
"These rating affirmations are based on further cash flow
analysis we conducted after the CreditWatch placements on the
class B notes. We consider that the credit enhancement available
and cash flow from the underlying loan portfolios can withstand
stress scenarios commensurate with the ratings on each of these
notes. Further, the transactions have benefited from the upgrade
in the rating of American International Assurance Co. (Bermuda)
Ltd. to 'AA-' from 'A+'. AIAB is a reinsurance provider for Prime
Insurance Group Ltd.-insured mortgage loans, which form a
significant portion of the underlying loan portfolios of these
transactions," S&P said.
The transactions have continued to perform within S&P's
expectations.
Ratings Affirmed And Removed From Creditwatch
Name Class Rating To Rating From
RMS Series 2007-1HE B A+ (sf) A+ (sf)/Watch Neg
RMS Series 2007-2H B BBB (sf) BBB (sf)/Watch Neg
Ratings Affirmed
Name Class Current Rating
RMS Series 2007-1HE A AAA (sf)
RMS Series 2007-1HE AB AAA (sf)
RMS Series 2007-2H A AA+ (sf)
RMS Series 2007-2H AB AA+ (sf)
Standard & Poor's 17g-7 Disclosure Report
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.
If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at
http://standardandpoorsdisclosure-17g7.com
SONRAY CAPITAL: Liquidator Nears Saxo Bank, HLB Judd Settlement
---------------------------------------------------------------
InvestorDaily reports that the liquidator of failed stockbroking
firm Sonray Capital Markets has moved a step closer to finalising
settlement agreements with Saxo Bank A/S and HLB Mann Judd.
InvestorDaily relates that in a letter to investors, dated
Dec. 23, 2011, Ferrier Hodgson liquidator George Georges
disclosed that, subject to administrative matters being
finalised, he has received more than the required number of
acceptances from Sonray investors.
Under the settlement agreement with Saxo Bank A/S and HLB Mann
Judd, an investor acceptance or release of 80% was required, the
report relays.
InvestorDaily notes that as of Dec. 23, the liquidator received
acceptances to the Saxo settlement from at least 92% of investors
by account value.
According to InvestorDaily, Mr. Georges called on those investors
who had not returned their release form, and subsequently missed
the Dec. 23 deadline, to return their release as quickly as
possible.
InvestorDaily relates that Mr. George said all parties were now
awaiting directions from the Federal Court of Australia as to an
outcome regarding settlement distribution. The directions
hearing concluded on Nov. 2, 2011.
A settlement between Ferrier Hodgson and Saxo Bank and HLB Mann
Judd was reached late last year following mediation talks,
InvestorDaily reports.
About Sonray Capital
Based in Melbourne, Australia, Sonray Capital Markets --
http://www.sonray.com.au/-- specialized in online and advisory
services in global equities, global futures, global Contracts For
Difference (CFDs) and Margin Foreign Exchange. The company had
operated since 2003 and employed about 70 people in offices in
Melbourne and on the Gold Coast.
On June 22, 2010, Sonray Capital Markets Group appointed Ferrier
Hodgson partners George Georges and John Lindholm as voluntary
administrators. Companies affected included Sonray Capital
Markets Pty Ltd, Sonray Capital Markets (Qld) Pty Ltd, Sonray
Capital Markets Nominees Pty Ltd, and Sonray Advisory Pty Ltd.
Ferrier Hodgson said the companies have ceased trading and the
approximately 3,000 client accounts have been suspended while the
administrators carry out an investigation into the circumstances
of the collapse.
On Oct. 27, 2010, the creditors of Sonray Capital Markets voted
to wind up the failed business, allowing the administrators to
start a mediation process. The Sydney Morning Herald reported
that parties to the mediation would include Saxo Bank, which
provided Sonray's contracts-for-difference product, auditor HLB
Mann Judd, Sonray director Russell Johnson, chief executive
Scott Murray and possibly his father, who administrators said had
been lent money from the company's accounts without necessarily
repaying it.
Ferrier Hodgson said as at June 22, 2010, Sonray had gross client
positions of AUD76.85 million; gross client holdings in either
cash/equities held by counterparties of AUD$30.15 million; a
shortfall of AUD46.70 million; approximately 3,500 clients; and
54 employees.
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C H I N A
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CHAODA MODERN: S&P Keeps 'CCC' Corp. Credit Rating on Watch Neg
---------------------------------------------------------------
Standard & Poor's Ratings Services' 'CCC' long-term corporate
credit rating on China-based Chaoda Modern Agriculture (Holdings)
Ltd. remains on CreditWatch with negative implications. Standard
& Poor's also kept its 'cnCCC' Greater China scale credit rating
on Chaoda on CreditWatch with negative implications.
"Our view on the credit rating and CreditWatch status on Chaoda
remains unchanged despite new information suggesting the
possibility of an earlier repayment date on the company's $200
million convertible bond," said Standard & Poor's credit analyst
Joe Poon.
"The rating and CreditWatch continue to reflect our view that
payment acceleration on the convertible bond is imminent and we
are uncertain about Chaoda's liquidity and its ability to repay
the bond in a timely manner. In particular, a long delay in its
annual results announcement has increased information risk," S&P
said.
"We believe the repayment of the bond will likely happen no later
than the first week of March 2012, but possibly as soon as early
February. In our view, Chaoda has weak sources of liquidity to
cover its needs, regardless of the bond repayment date," S&P
said.
"Chaoda shares were suspended on the Hong Kong stock exchange on
Sept. 26, 2011. Under the terms of the convertible bond, holders
have the option to require Chaoda to buy back the bond if shares
in the company are suspended for more than 60 consecutive days on
the stock exchange. If the 60 consecutive days refer to calendar
days instead of share trading days, then repayment could happen
in early February 2012," S&P said.
"In our opinion, investors in Chaoda's convertible bond (due
2015) have a strong incentive to accelerate bond payment, and our
rating assumption is the company will fully redeem the
convertible bond. However, we are unsure about the company's
ability to do that, given it still has not announced its annual
results for the year ended June 30, 2011," S&P said.
"We aim to review the CreditWatch status within the next few
weeks, when we expect to receive more clarity about the
convertible bond repayment arrangements, the company's liquidity
situation, and the annual results," S&P said.
CHINA AUTOMATION: Moody's Changes Outlook of 'Ba3' CFR to Neg.
--------------------------------------------------------------
Moody's Investors Service has changed to negative from stable the
outlook of China Automation Group Limited's Ba3 corporate family
and senior unsecured bond ratings after the company issued a
profit warning on Jan. 16, 2012.
At the same time, Moody's has affirmed both ratings.
Ratings Rationale
"The change in outlook reflects CAG's slowing top-line growth and
deteriorating profitability against the backdrop of a challenging
operating environment for railway equipment suppliers in China,"
says Jiming Zou, a Moody's Analyst.
"The profit warning indicates the presence of such a trend and it
is likely that CAG's near-term operating performance will be much
weaker than Moody's previous expectations," says Mr. Zou.
Capital expenditure in the Chinese railways sector has been
significantly slowed by the Ministry of Railways after the high-
speed train accident in Wenzhou last year.
Moody's does not expect a significant improvement in new orders
in the near term, given the high level of uncertainty over when
the restrictions on spending will be relaxed.
Moody's also expects the Ministry of Railways to be more
selective and cautious in order placements, and which will
unfavorably impact equipment suppliers such as CAG.
The current slowdown in order execution and payments by the
Ministry of Railway also put further pressure on CAG's working
capital requirements and its operating cash flow.
On the other hand, CAG's Ba3 corporate family rating continues to
reflect its leading position and track record in a niche market,
where it provides safety & critical control systems to China's
railways and petrochemicals sectors.
The rating also considers the underlying good growth rates
apparent in both of its end-markets, and which are underpinned
the government's plan to expand and upgrade the rail system in
the long run and by continued investments in the petrochemicals
industry.
Moody's recognizes the company's track record in executing
acquisitions that diversify its end-markets and scope of
services. But the level of event risk and additional working
capital requirements -- arising from its model of growing through
acquisitions -- are major constraining factors for its ratings.
In particular, its small size means that it is potentially
vulnerable -- from a financial perspective -- to any adverse
effects from these acquisitions. At the same time, such
challenges are partly mitigated by the company's disciplined
financial management strategy and its current sound liquidity
profile.
Moody's will continue to monitor the development and focus of
CAG's capital spending plan amid a challenging operating
environment, its ability to maintain competitiveness with a
strong order backlog, as well as the progress of receivable
collections to improve cash generation in 2012. Moody's will also
evaluate its FYE2011 results and determine any ratings impact.
The ratings could be downgraded if China Automation (1) is
materially affected by the currently lower spending in the
railways industry or loses its railways business licenses; (2)
sees a material decline in its sales, and/or profit margins, such
that its EBITDA margin falls below 15%; or (3) impairs its
liquidity position, or increases debt leverage materially due to
aggressive acquisitions.
A downgrade could be triggered if its credit metrics deteriorate,
with EBITDA/interest below 3x, debt/EBITDA above 4x, FFO/Debt
below 15%, and adjusted debt leverage consistently above 50%-55%.
Upward rating pressure is unlikely in the near term, given the
negative outlook.
The principal methodology used in rating China Automation Group
Limited was the Global Manufacturing Industry Methodology
published in December 2010.
China Automation Group Limited specializes in providing safety &
critical control systems for the petrochemicals and railways
signaling industries. It began its operations in 1999 and listed
on the Main Board of The Stock Exchange of Hong Kong Limited on
July 12, 2007. Its three founders, Mr. Xuan Rui Guo (Chairman &
Executive Director), Mr. Kuang Jian Ping (CEO & Executive
Director), and Mr. Huang Zhi Yong (Executive Director),
collectively own 44.89%.
FOSUN INTERNATIONAL: Moody's Revises Outlook on 'Ba2' CFR
---------------------------------------------------------
Moody's Investors Service has revised to negative from stable the
outlook on Fosun International Ltd's Ba2 corporate family rating
and senior unsecured bond rating.
Ratings Rationale
"The change in outlook reflects Moody's concerns that the two
core businesses of Fosun, namely steel and property development,
will be under significant pressure in 2012, and which will in
turn weaken its financial profile," says Ken Chan, a Moody's Vice
President.
The company's steel business will continue to suffer from the
slowdown in downstream industrial activities, such as
shipbuilding and construction businesses in China, the industry's
excess capacity, as well as the high inventory costs due to the
stockpiling of iron ore in 2011.
Its property business arm, Forte, reported contract sales of
RMB9.42 billion in 2011, which was about 31% lower than the
amount of 2010, but close to its own target for 2011. Forte's
sales are likely to remain sluggish in 2012 if the Chinese
government extends its stringent restrictions on house purchase.
"In addition, the unfavorable conditions in the equity markets
make it difficult for Fosun to raise money through IPOs and
secondary market trading, as it formerly planned," Mr. Chan says.
"Therefore, it may have to reduce its cash position or take on
new debt, as the cash flow from its core businesses and the
disposal of assets would be insufficient to cover its investment
needs."
The company's investment plan includes less flexible items such
as Nanjing Iron & Steel's upgrade project, Forte's unpaid land
premium, committed contributions for private-equity funds, and
capital injections for its insurance business.
Fosun may also not be able to maintain its cash/total debt ratio
at the holdco level above 40% and liquidity assets/total reported
debt of at least 100%, which are the two key metrics that provide
a buffer against the structural subordination risk for the
bondholders.
Nevertheless, it has the ability to refinance loans from local
banks and reserve cash even in an adverse market. Its large cash
holdings and marketable securities provide an adequate buffer to
its short-term liquidity. At end-June 2011, it had consolidated
cash and equivalents of RMB20.3 billion, compared with its short-
term debt needs of RMB23 billion.
Fosun's rating may be downgraded if: (1) consolidated debt/EBITDA
(where EBITDA is from consolidated operations plus dividend
receipts and realized gains from the disposal of assets)
consistently exceeds 5x and FFO/net debt falls to less than 10%,
(2) the underlying business profile changes materially and its
business risk rises, (3) liquidity at either the holding company
or at the consolidated level materially deteriorates.
Moody's will apply structural subordination and the bond rating
would be notched downwards if the company is unable to maintain
its cash/total debt ratio at the holdco level above 40%,
cash/short-term debt above 1x, and liquid assets/total reported
debt above 1x on an on-going basis.
Moody's will review Fosun's financial profile upon the release of
its 2011 annual report as an indication of such trend and also
take into consideration Fosun's updated capital investment and
asset disposal plans.
A rating upgrade is unlikely in the near term, given the negative
outlook.
However, the outlook could return to stable if Fosun: 1)
exercises prudence in capital spending and investments, 2)
controls its book debt and maintains adequate liquidity through
the active disposal of assets, and a reduction in capital
spending and working capital, or 3) publicly lists its key
investments .The credit metrics that Moody's will consider
include consolidated debt/EBITDA of less than 4.5x-5x and/or
FFO/net debt of more than 15% on a sustainable basis
Fosun International Ltd's ratings were assigned by evaluating
factors that Moody's considers relevant to the credit profile of
the issuer, such as the company's (i) business risk and
competitive position compared with others within the industry;
(ii) capital structure and financial risk; (iii) projected
performance over the near to intermediate term; and (iv)
management's track record and tolerance for risk. Moody's
compared these attributes against other issuers both within and
outside Fosun International Ltd's core industry and believes
Fosun International Ltd's ratings are comparable to those of
other issuers with similar credit risk.
Fosun started as a market survey company in 1992. It is now
engaged in steel, property, pharmaceuticals, mining, and retail
in China. It also has significant investments in China and
overseas.
Fosun International Ltd became the holding company of the group
in 2005. Headquartered in Shanghai, it was listed on the Hong
Kong Stock Exchange in 2007. The group is ultimately 58%-owned by
its Chairman, Guangchang Guon. He, along with three other
founders, owns 79.08% of the company.
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H O N G K O N G
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COUNTRYWIDE CAPITAL: Commences Wind-Up Proceedings
--------------------------------------------------
Members of Countrywide Capital Markets Asia (H.K.) Limited, on
Dec. 21, 2011, passed a resolution to voluntarily wind up the
company's operations.
The company's liquidators are:
Cosimo Borrelli
Yuen Lai Yee
Level 17, Tower 1
Admiralty Centre
18 Harcourt Road
Hong Kong
DYNASTY 2000: Commences Wind-Up Proceedings
-------------------------------------------
Members of Dynasty 2000 Limited, on Jan. 20, 2012, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Cho Yuen Ling Charlotte
Unit D, 12/F
No. 8 Hart Avenue
Tsimshatsui, Kowloon
Hong Kong
EXPO GLOBAL: Members and Creditors' Meetings Set for Feb. 14
------------------------------------------------------------
Members and creditors of Expo Global Limited will hold their
annual meetings on Feb. 14, 2012, at 10:00 a.m., and 3:00 p.m.,
respectively at 35th Floor, One Pacific Place, at 88 Queensway,
in Hong Kong.
At the meeting, Lai Kar Yan (Derek) and Ho Kwok Leung (Glen), the
company's liquidators, will give a report on the company's wind-
up proceedings and property disposal.
GENEVA INT'L: Members and Creditors' Meetings Set for Feb. 14
-------------------------------------------------------------
Members and creditors of Geneva International Jewellery & Watch
Limited will hold their annual meetings on Feb. 14, 2012, at
10:15 a.m., and 3:15 p.m., respectively at 35th Floor, One
Pacific Place, at 88 Queensway, in Hong Kong.
At the meeting, Lai Kar Yan (Derek) and Ho Kwok Leung (Glen), the
company's liquidators, will give a report on the company's wind-
up proceedings and property disposal.
HANG FUNG: Members and Creditors' Meetings Set for Feb. 14
----------------------------------------------------------
Members and creditors of Hang Fung Development International
Company Limited will hold their annual meetings on Feb. 14, 2012,
at 10:15 a.m., and 3:15 p.m., respectively at 35th Floor, One
Pacific Place, at 88 Queensway, in Hong Kong.
At the meeting, Lai Kar Yan (Derek) and Ho Kwok Leung (Glen), the
company's liquidators, will give a report on the company's wind-
up proceedings and property disposal.
KAI HANG: Members and Creditors' Meetings Set for Feb. 14
---------------------------------------------------------
Members and creditors of Kai Hang Jewellery Company Limited will
hold their annual meetings on Feb. 14, 2012, at 10:30 a.m., and
3:30 p.m., respectively at 35th Floor, One Pacific Place, at 88
Queensway, in Hong Kong.
At the meeting, Lai Kar Yan (Derek) and Ho Kwok Leung (Glen), the
company's liquidators, will give a report on the company's wind-
up proceedings and property disposal.
MINGO (ASIA): Creditors' Proofs of Debt Due Feb. 20
---------------------------------------------------
Creditors of Mingo (Asia) Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
Feb. 20, 2012, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Jan. 06, 2012.
The company's liquidator is:
Ng Kin Yung Tony
6/F, Greenwich Centre
260 King's Road
North Point, Hong Kong
OMNIA PRODUCTS: Creditors' Proofs of Debt Due Feb. 20
-----------------------------------------------------
Creditors of Omnia Products Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Feb. 20, 2012, to be included in the company's dividend
distribution.
The company's liquidator is:
Ivan Cabeza Mora
C1 Padilla 318 3-2
Barcelona 08025
Spain
OVAL ENTERPRISES: Creditors' Proofs of Debt Due Feb. 20
-------------------------------------------------------
Creditors of Oval Enterprises Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Feb. 20, 2012, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Jan. 12, 2012.
The company's liquidators are:
Wong Yuk Ying
Chan On Ki
11th Floor, Fortis Tower
77-79 Gloucester Road
Hong Kong
PO MING: Ng and Lui Step Down as Liquidators
--------------------------------------------
Ng Kwok Wai and Lui Chi Kit stepped down as liquidators of Po
Ming Jewellery Factory Limited on Jan. 6, 2012.
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I N D I A
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BHARAT CEREALS: ICRA Puts '[ICRA]B' Rating to INR43.53cr Limits
---------------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B' to the INR43.53
crore fund based limits, INR0.12 crore non-fund based limits and
INR6.35 crore proposed limits of Bharat Cereals Private Limited.
The rating is constrained by BCPL's weak financial profile,
reflected by low profitability metrics and consequently weak
coverage indicators and high intensity of competition in the
industry. The rating also takes into account agro climatic risks,
which can affect the availability of paddy in adverse weather
conditions. The rating, however favourably takes into account
long standing experience of promoters in rice industry, expected
benefits arising out of established client relationships of its
group companies and proximity of the mill to major rice growing
area which results in easy availability of paddy.
About Bharat Cereals
Bharat Cereals Private Limited was established in the year 2010
as private limited company. The Company is primarily engaged in
the milling of rice with an installed capacity of 12 tons per
hour which is located in Taraori, Karnal (Haryana). The company
has a sortex machine with the capacity of 12 tons per hour. The
company is professionally managed by Mr. Mohit Gupta.
Recent Results:
During the financial year (5M) 2010-11, the company reported
losses of INR0.22 crore on an operating income of INR8.36 crore.
CANARA WORKSHOPS: ICRA Rates INR6.93cr Loan at '[ICRA]BB-'
----------------------------------------------------------
ICRA has assigned '[ICRA]BB-' and '[ICRA]A4' ratings to the
INR6.93 crore long term fund based and INR2.60 crores short term
non-fund based facilities of Canara Workshops Limited. The
outlook on the long term rating is stable.
ICRA's rating action factors in the small scale of operations,
resulting in modest economies of scale and limited bargaining
power vis-a-vis customers and suppliers of key inputs. The
ratings are also constrained by low to moderate capacity
utilization and weak financial profile characterized by
relatively high gearing, moderate coverage indicators and high
working capital intensity leading to stretched liquidity
position. Further, the company is exposed to high product
concentration with 100% revenues being generated from sale of
leaf springs. The ratings however draw support from long track
record of the promoters in manufacturing of Leaf Springs aided by
established relations with more than 2800 dealers in the auto-
component replacement market spread across Karnataka, Tamil Nadu,
Andhra Pradesh, Kerala and Maharashtra.
About Canara Workshops
Canara Workshops Limited was incorporated in the year 1943 and is
engaged in manufacturing of Leaf Springs for heavy commercial
vehicles, light commercial vehicles, trailers, and passenger
vehicles. The company has its manufacturing unit in Mangalore.
Recent Results:
During the financial year ending March 2011, the company recorded
net profit of INR1.51 crores on a turnover of INR35.45 crores as
against net profit of INR1.16 crores on a turnover of INR30.26
crores during FY 2009-10.
DD INDUSTRIES: ICRA Revises Rating on INR30cr Loan to '[ICRA]BB+'
-----------------------------------------------------------------
ICRA has revised the long term ratings for the INR30.0 Crore bank
facilities of DD Industries Limited to '[ICRA]BB-' from
'[ICRA]BB+'. ICRA has also revised the short term ratings for the
INR20.0 Crore bank facilities of DDIL to '[ICRA]A4' from
'[ICRA]A4+'. The above ratings continue to be placed on "Rating
Watch with Developing Implications".
The ratings revision takes into account the liquidity pressures
being faced by the company reflected in stretched working capital
utilisation and limited financial flexibility available as of now
due to uncertainty over the demerger process between DDIL's auto
dealership business and manufacturing business. The ratings are
also constrained by delays in construction of a mall, absence of
customer advances and pending debt repayments of DDPL, a group
company, to which unsecured loans have been extended by DDIL. The
ratings continue to be constrained by the thin profit margin
characteristics of the dealership business, regional
concentration on the Delhi market and large intergroup
transactions between group companies. However, the ratings
favourably consider DDIL's strong market position, being the
largest dealer of MSIL in Delhi, its long standing relationship
with MSIL, steady improvement in margins owing to healthier
product mix and geographical diversification prospects with plans
of opening new outlets outside Delhi.
In April 2010, ICRA had placed the ratings of DDIL on "Rating
Watch with Developing Implications" in view of the proposed
demerger of vehicle dealership business of DDIL into a separate
company. Since the above demerger process is yet to get
concluded, ICRA continues to place the ratings of the company on
"Rating Watch with Developing Implications." The rating action
would be concluded once clarity is obtained on the demerger
process.
Going forward, the rating would remain sensitive to DDIL's
ability to manage its liquidity position which is currently under
pressure as reflected in its almost fully drawn working capital
limits. The ratings will also remain sensitive to the receipt of
the funds advanced to the group companies including DDPL. The
access to these funds remains critical for deleveraging DDIL's
balance sheet, besides supporting its future funding requirements
for growth.
About DD Industries
Incorporated in 1951, DD Industries Limited had initially started
off as a manufacturer of auto components viz., propeller shafts,
yokes and other transmission components for Commercial Vehicles.
In 1996, the company ventured into the vehicle dealership
business of MSIL and later in the year 2000 also diversified into
trading of CNG kits and conversion of in-use diesel/ petrol
vehicles into CNG mode. The vehicle dealership business of DDIL
(through the division DD Motors (DDM)), is the flagship business
of the company accounting for more than 95% of DDIL's total
sales. DDM has a total of five sales outlets with four of them
located across Delhi at Mayapuri, Wazirpur, Peeragarhi, and Okhla
and one at Dehradun (Uttaranchal).
GEM MANUFACTURING: ICRA Suspends 'LBB' Rating on INR19.8cr Loan
---------------------------------------------------------------
ICRA has suspended the 'LBB' rating assigned to the INR19.80
Crore long term fund based facilities of Gem Manufacturing India
Private Limited. The suspension follows ICRA's inability to carry
out a rating surveillance in the absence of the requisite
information from the company."
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information
to assess such rating during the surveillance exercise. ICRA will
withdraw the rating in case it remains under suspension for a
period of three years.
Gem Manufacturing India Private Limited was established in 1965
as a partnership firm. GMIPL was converted into private limited
company in January 2005. GMIPL is in the business of trading and
processing of cut and polished diamonds. GMIPL exports diamonds
primarily to U.S.A, Belgium, Dubai and Israel. In the last three
years the company has shifted its focus towards trading in
diamonds.
MANMOHAN GINNING: ICRA Puts '[ICRA]B+' Rating on INR8cr Loan
------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' for the
INR8 crores fund based facilities of Manmohan Ginning Industries.
The assigned ratings take into account the firm's highly
leveraged capital structure, its low coverage indicators;
competitive and fragmented nature of the ginning industry.
Furthermore, the firm's margins remain suppressed due to low
value nature of the business, and are susceptible to adverse
movement in raw material prices. The rating also factors in the
inherent risks due to the firm's constitution as a partnership
firm. However, the rating derives comfort from the long standing
experience of promoters in the industry and firm's proximity to
the raw material sources. Going forward the firm's ability to
maintain the sales growth and maintain adequate margins with
improving the capital structure will be the key rating factors.
About Manmohan Ginning
Manmohan Ginning Industries is a partnership firm set up in 1989
by Mr. Narendra Bhai. At present the business is carried on by
his two sons Mr. Dharmesh Bhai and Mr. Niraj Bhai. The firm has a
ginning and pressing facility for processing raw cotton into
bales having capacity of 300 bales per day of cotton and 100TPD
cotton oil extracting facility. The manufacturing facility of the
firm is engaged in the cotton belt of Rajkot, Gujarat. The firm
has another group firm Narendra Cotton Ginning and Pressing Co
Pvt Ltd, located in Rajkot, which is into spinning of yarn and
weaving.
Recent results:
MGI reported a profit after tax (PAT) of INR0.17 crores on an
operating income of INR69.17 crores in 2010-11, against a PAT of
INR0.01 crores on an operating income of INR60.03 crores in 2009-
10.
NSL TEXTILES: ICRA Withdraws '[ICRA]BB' Rating on INR367.7cr Loan
-----------------------------------------------------------------
ICRA has withdrawn the '[ICRA]BB' rating assigned to the INR367.7
crore fund based limits of NSL Textiles Edlapadu Limited. The
rating has been withdrawn on request of the company as NSTEL has
amalgamated with NSL Textiles Limited.
OGUN STEELS: ICRA Assigns "[ICRA]B" Rating to Rs.7cr Bank Loan
--------------------------------------------------------------
ICRA has assigned an "[ICRA]B" rating to the Rs.7.00 crore long
term fund based bank facilities of Ogun Steels Private Limited.
ICRA has also assigned an "[ICRA]A4" rating to the Rs.6.00 crore
non-fund based bank facilities of OSPL.
The ratings reflect the cyclicality associated with the steel
industry and the ongoing weakness faced by the industry. The
ratings also factor in OSPL's modest scale of operations and its
weak financial risk profile characterised by modest profits, an
aggressive capital structure and weak coverage indicators. The
ratings take into account the promoters experience in the steel
business and, a favourable long term demand outlook for the steel
industry. ICRA however notes that OSPL's overall financial risk
profile and liquidity position is exposed to risks inherent with
the steel trading business, which includes adverse movement in
the steel prices and high working capital intensity of its
operations.
About Ogun Steels
Incorporated in the year 2009, Ogun Steels Private Limited is
promoted by the Coimbatore based Mr. M. Paramasivam and family.
The promoters have an established presence in the iron and steel
business with an experience of close to four decades. The company
deals in various categories of iron and steel products including,
sponge iron, scrap, ingots and TMT bars, catering mainly to the
demand from other promoter owned companies and players in the
Coimbatore-Palakkad region. Other major steel manufacturing units
promoted by Mr. M. Paramasivam and family include M.P.S Steel
Castings Private Limited, Paragon Steels Private Limited and Ogun
Steel Rolling Mills Private Limited.
Recent Results:
In the year 2010-11, OSPL reported a net profit of INR0.17 crore
on net sales of INR21.23 crore. During the year 2009-10, the
company reported a net profit of INR0.12 crore on net sales of
INR7.00 crore.
RADHESHYAM FIBERS: ICRA Reaffirms '[ICRA]BB-' Long Term Rating
--------------------------------------------------------------
ICRA has reaffirmed the long-term rating of Radheshyam Fibers
(Guj.) Pvt. Ltd. at '[ICRA]BB-' for INR6 crores fund based
facilities. The outlook on the long term rating is Stable.
The rating reaffirmation continues to factor in the high business
risk profile on account of high competitive intensity and
fragmentation in the cotton ginning industry. These risks are
further compounded by limited value-addition activity of the
business, resulting in thin operating margins and net profit
margins in the past. Due to low net worth and high debt levels
the gearing of the company has also remained high at 3.50 times
as on March 31, 2011. Moreover, nearly 80% of the total revenues
of the company are derived through exports which expose the
company to foreign exchange risk in the absence of any hedging
policy. However, the rating favorably factors in the proximity of
RFPL to cotton producing belt of Maharashtra which leads to
favourable access to raw material and the promoter's long
experience in the cotton ginning industry. Going forward the
company's ability to maintain the sales volume growth and
maintain adequate margins with improving the capital structure
will be key rating drivers.
About Radhehsyam Fibers
Radhehsyam Fibers (Gujarat) Private limited was set up in 2008 by
Mr. Ramnik Bhai Bhalara and his brothers to manufacture cotton
bales. The company also sells cotton seeds, a byproduct obtained
after removing the lint from raw cotton. The Company has a
ginning and pressing facility for processing raw cotton into
bales. The company was sold to Mr. Girdhar Bhai in November,
2010. Mr. Girdhar Bhai has two other cotton ginning and pressing
plants Giriraj fibers Pvt. Ltd. and Avadh cotton Pvt. Ltd.
located in Maharashtra and Gujarat respectively. The
manufacturing facility of the company is located at Prabhadi
District of Maharashtra having manufacturing capacity of 450
bales of cotton per day.
Recent results:
RFPL(Guj.) reported a profit after tax (PAT) of INR0.04 crores on
an operating income of INR67.95 crores in 2010-11, against a PAT
of Rs.0.12 crores on an operating income of Rs.34.15 crores in
2009-10.
SATISH KUMAR: ICRA Assigns '[ICRA]BB' Rating to INR4cr Loan
------------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]BB' to the INR4
crore fund based cash credit limits and a short term rating of
'[ICRA]A4' to the INR12 crore non-fund based limits of M/S Satish
Kumar. The outlook on the rating is stable.
The assigned ratings factor in the firm's small scale of
operations, the intensely competitive nature of construction
industry which may put more pressure on already thin margins of
5.8%, and high geographic concentration in Uttar Pradesh (UP),
which exposes the firm to regulatory risks, as well as natural or
manmade calamities in this region. The ratings are also
constrained by the high client concentration risk faced by SK, as
73% of its order backlog of INR175.63 crore comes from a single
client ? U.P. Jal Nigam Allahabad. ICRA also notes that Satish
Kumar is constituted as a partnership firm, which limits its fund
raising capability in the future besides inherent risk of
dissolution due to death/retirement/insolvency of partners.
The rating, however, draws comfort from the satisfactory track
record of the firm in the construction business, with no delays
experienced in the projects from the firm's side till date, and
minimal execution risk on account of the low complexity of work
executed. The rating also factors in the order backlog of about
INR175.63 crore which is equivalent to 1.9 times of FY11
operating income of INR88.92 crore that provides adequate revenue
visibility for the next two years, and the company's modest
financial risk profile with gearing of 0.4 times, helped by low
working capital and gross block requirements
About Satish Kumar
M/s Satish Kumar, a company established under the Company Act
1956 in the year 1998, having the corporate office located at C-
88, RDC, Raj Nagar Ghaziabad-201001 (U.P.). The branch/site
offices are located throughout the country at all designated
project sites. SK is a multi-disciplined public infrastructure
Services Company specialized in providing lead contracting /
subcontracting to design and construction services in Sewerage
and allied works, Water Supply & Distribution Works, Pumping
Stations, Sewage Treatment Plant, Road Works, and small
Electrical Installation Works etc.
Recent Results:
The firm reported a net profit of INR5.69 crore on an operating
income of INR88.92 crore in FY11 as against net profit of INR1.83
crore on an operating income of INR30.43 crore in FY10.
SRI SRINIVASA: ICRA Assigns '[ICRA]B' Rating to INR9cr Loan
-----------------------------------------------------------
ICRA has assigned '[ICRA]B' rating to INR9.00 crore cash credit
and INR1.00 crore proposed cash credit limits of Sri Srinivasa
Rice Mill.
The assigned rating is constrained by SSRM's weak financial
profile characterized by low profitability, high gearing and weak
debt coverage indicators; and small scale of operations coupled
with highly competitive nature of the industry restricting the
operating margins. The rating also considers the agro-climatic
risks which could affect the availability of paddy in adverse
weather conditions. However, the rating favourably takes into
account SSRM's experienced management with long track record of
operations in the rice industry; easy availability of rice owing
to presence in a major rice producing region and favourable
demand prospects of the industry as the mill caters to Kerala and
AP markets where rice is a staple food.
Sri Srinivasa Rice Mill was incorporated in the year 1982 and is
engaged in the milling of paddy and produces raw and boiled rice.
It was founded by Mr. CH. S.V. Satyanarayana Murthy. The company
has a milling unit in Kapileswarapuram Mandel (East Godavari
district) of Andhra Pradesh with a milling capacity of 36,000
MTPA.
TRISTAR GLOBAL: ICRA Reaffirms '[ICRA]BB+' Cash Credit Rating
-------------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]BB+'
outstanding on the INR17 crore cash credit limits (enhanced from
INR10 crore), INR29 crore Non Fund Based limits (enhanced from
INR20 crore) and INR4 crore unallocated bank limits of Tristar
Global Infrastructure Private Limited. The Outlook on the long-
term rating is stable. ICRA has also reaffirmed the '[ICRA]A4+'
rating assigned to the INR29 crore Non Fund Based limits of
TGIPL. The Non Fund Based Limits under long term and short term
tenure are interchangeable and as such the combined utilization
should not exceed INR29 crore.
The ratings reaffirmation takes into account the experienced
management of the company, proven track record of executing
projects for a reputed client base, a satisfactory order book
comprising prestigious projects, tie-ups with some of the leading
players in the world in expansion joints, impressive revenue
growth since inception, and the limited capex required for
executing the order backlog.
However, the ratings are constrained by the high working capital
intensity of the company due to its policy of procuring adequate
inventory for timely execution of the project as well as to
protect it from fluctuations in raw material prices, the weak
outlook for the construction industry in the near term that can
stretch its receivables, and the limited scale of operations of
the company that restrain its profitability. The ratings also
factor in the likely weakening of financial profile due to the
funding of increased working capital requirements on account of
the substantial growth in revenues expected during FY12-13.
Going forward, ability of the promoters to manage the working
capital requirements would be a key rating sensitivity.
About Tristar Global
Tristar Global Infrastructure Pvt. Ltd., established in 1999, is
a fully family-owned construction company. The company has been
involved in waterproofing, expansion joints, thermal insulation,
construction of buildings and roofing activities, and has dealt
with a reputed client base including companies like Procter &
Gamble, GMR, HCC and L&T. In the past, most of the company's
revenues have come from waterproofing activity and construction
of buildings, with TGIPL having executed prestigious projects
such as waterproofing of Bangalore Airport and underground
railway stations for Delhi Metro Rail Corporation (DMRC).
Recent Results:
TGIPL reported a profit after tax (PAT) of INR1.53 crore in FY11
on an operating income of INR52.22 crore, registering an
improvement over FY10 on account of higher profit margins. The
revenue growth of 14% was supported by the execution of a larger
order book.
VALMARK HOMES: ICRA Places '[ICRA]B' Rating to INR18.5cr Loan
-------------------------------------------------------------
ICRA has assigned '[ICRA]B' rating to INR18.5 crore fund based
limits of Valmark Homes.
Valmark Homes is a partnership firm, specifically created for
development of a residential project, Ananda Valmark, located off
Bannerghatta Road in Bangalore. The firm is a part of the Valmark
group, founded by Mr. Ratan B. Lath and Mr. Tejraj Gulecha. As
the group companies are closely associated to each other, ICRA
has taken a consolidated view of the group for assigning the
rating.
The assigned rating takes into account limited track record of
Valmark group in the development and sales of real estate
projects, the intensely competitive nature of the Bangalore real
estate industry, and significant upcoming supply of residential
projects in the vicinity of Ananda Valmark. Besides, the assigned
rating is constrained by high debt repayment obligation of the
group in the near term. ICRA also notes that booking level and
customer collection in Abodh Valmark, one of the two ongoing
residential projects of the group, is very low. These apart, the
rating also factors in the risks inherent in partnership firms
inter alia limited ability to raise capital, and risk of
dissolution of the firm upon the death/retirement/insolvency of
partners. The rating however draws comfort from current healthy
booking status of Ananda Valmark, the long experience of the
promoters in real estate industry and the track record of fund
infusion by the promoters to support the group entities. ICRA
also notes that the regulatory risk for the ongoing projects of
the group is low as all the requisite approvals are in place.
About Valmark Homes
Valmark Homes is a part of the Valmark group, founded by Mr.
Ratan B. Lath and Mr. Tejraj Gulecha. The flagship entity of the
group is Sri Nakoda Construction Limited. The group started its
operation in the year 2007 in the brand name of 'Valmark'. The
group has so far completed one residential project, Amoda
Valmark, located off Bannerghatta Road in Bangalore. Besides, it
has two other ongoing projects being executed in separate Special
Purpose Vehicles. The promoters of the group have a long track
record in the real estate industry and have been associated with
several landmark projects in Bangalore including Kempegowda
Maharaja Shopping Complex (K.G.Road), City Centre (K.G.Road),
National Market (K.G.Road) Classic Orchard (Bannerghatta Road),
Manyata Tech Park (Nagwara Junction), and Classic County
(Kengeri) among others.
About Valmark Homes
Valmark Homes is a partnership firm, specifically created for
development of a residential project, Ananda Valmark, located off
Bannerghatta Road in Bangalore. The partners of the firm are
SNCL, Mr. Tejas H.V. and Ms. Vipula V. Reddy with their
respective shares being 52%, 24% and 24%. Ananda Valmark is being
developed under a joint development agreement between the
developer and the land owner with the latter share in the project
being 34%. The project is planned in 2 acres and comprises of 4
blocks and over 150 flats. The project was launched in May 2011
and is almost 20-25% completed till date. The booking level is
healthy with nearly 40% of the developer share already sold out.
Recent results:
During FY11, the revenue and PAT of the firm was negligible as
Ananda Valmark was launched in May, 2011. During the six months
ending September 2011, the company generated a PAT of INR0.1
crore on an operating income of INR3.01 crore.
VICKSONS STEELS: ICRA Revises 'BB' Rating on INR4.18cr Loan
-----------------------------------------------------------
ICRA has revised the long-term rating of the INR4.18 crore term
loan and the INR9.0 crore fund-based bank facilities of Vicksons
Steels Private Limited to '[ICRA]BB' from '[ICRA]BB+'. The
outlook on the long-term rating is "stable". ICRA has also
revised the short-term rating of the INR6.0 crore fund-based and
the INR15.0 crore non-fund based bank facilities of VSPL to
'[ICRA]A4' from '[ICRA]A4+'.
The revision of the ratings takes into account large corporate
guarantees extended by VSPL to its associate company namely Vijay
Transmission Pvt Ltd (rated [ICRA]BB (SO)/Stable), which along
with VSPL's leveraged capital structure adversely impacts its
overall financial risk profile. The ratings are also constrained
by the limited value addition in the steel trading business of
VSPL and a highly fragmented nature of the industry,
characterised by intense competition, both of which result in
thin operating and net profitability; working capital intensive
nature of its operations and its weak debt protection metrics.
Nevertheless, the ratings favourably factor in a significant
growth in the company's revenues and profits in 2010-11 on the
back of improved demand conditions and its low inventory levels
that partly mitigate the risk related to volatility in steel
prices. The ratings also take into consideration the long
experience of VSPL's promoters in the steel trading business and
the reputed and diverse customer base of the company.
About Vicksons Steels
Vicksons Steels Private Limited was incorporated in 1966 by Mr.
K. C. Paliwal as a partnership firm for trading of steel
products. Subsequently, the firm was converted into a private
limited company in 1995. The promoters have nearly four decades
of experience in steel trading and have established relationships
with reputed construction companies. The company predominantly
trades in long products of numerous varieties and grades, which
it procures from secondary steel manufacturers, rolling mills and
other traders.
Recent Results:
In 2010-11, VSPL reported a profit after tax (PAT) of INR1.2
crore on the back of net sales of INR210.4 crore as against a PAT
of INR0.4 crore on the back of net sales of INR136.6 crore in
2009-10.
VISUELL CREATIONS: ICRA Places '[ICRA]B' Rating on INR5.5cr Loan
----------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B' for the INR5.50
Crore Fund-Based Facility and a short term rating of '[ICRA]A4'
to INR2.50 Crore Non-fund based facility of Visuell Creations.
The rating favorably factors in the partners experience in
glassware distribution business and involved in distributorship
of premium brands for glass ware and crystal ware leading to
better margins at present. The rating is however constrained by
small scale of operations of the company on account of its
nascent stage of business, with operations commenced from 2010
only and vulnerability to foreign exchange fluctuations due to
high percentage of imports. The rating is also constrained by
high working capital intensive nature of business due to high
inventory pile up.
About Visuell Creations
Visuell Creations a partnership firm started its operations in
2010 and is involved into import and distribution of quality
crystal ware and glass ware in India. The company is primarily
involved in import of designer crystal ware and glassware from
European countries, mainly Turkey and distributes it in India.
The company has branch offices in New Delhi, Ghaziabad, Chennai,
Gujarat, Indore and Pune and is based out of Mumbai. The major
clients for the company include large retail outlets like
Shopper`s Stop, Life Style, West Side, @home, Big Bazaar etc. the
company also caters to B2B segments where in its suppliers to
liquor brands and other big corporate mainly for corporate
gifting. The company has two ware houses one in Mumbai of 9,000
sqft. and the other in Bhiwandi of 40,000 sqft. VC reported a net
profit of INR0.41 Crore on an operating income of INR12.72 Crore
for FY2010-11.
Recent Results:
As of unaudited figures for nine months ending FY 2011-12 VC
reported a net profit of INR1.26 Crore on an operating income of
INR17.35 Crore.
=================
I N D O N E S I A
=================
* INDONESIA: Moody's Raises Currency Bond Ratings From 'Ba1'
------------------------------------------------------------
Moody's Investors Service has upgraded the Government of
Indonesia's foreign and local currency bond ratings to Baa3 from
Ba1. The ratings outlook is stable.
The key drivers of this decision are:
1. Moody's anticipation that government financial metrics will
remain in line with Baa peers.
2. The demonstrated resilience of Indonesia's economic growth to
large external shocks.
3. The presence of policy buffers and tools that address
financial vulnerabilities.
4. A healthier banking system capable of withstanding stress.
Rationale for the Upgrade to Baa3
Indonesia's cyclical resilience to large external shocks points
to sustainably high trend growth over the medium term. A more
favorable assessment of Indonesia's economic strength is
underpinned by gains in investment spending, improved prospects
for infrastructure development following key policy reforms, and
a well-managed financial system.
In addition, robust growth has been accompanied by the continued
health of its external payments position, supported by
increasingly large flows of foreign direct investment, while
inflationary expectations are becoming better anchored at a more
stable and historically lower level.
Prudent fiscal management has contained budget deficits at very
low levels and has reduced the government's debt burden as a
share of GDP.
As a result, Indonesia's fiscal ratios now surpass many of its
higher-rated peers, providing more fiscal headroom to respond to
economic shocks. It has also reduced risk perceptions, enabling
the government to access international funding markets even
during periods of heightened risk aversion.
Policy buffers, including the central bank's large stock of
foreign exchange reserves and the government's bond stabilization
framework, have been recently deployed and remain ample as
significant lines of defense against destabilizing capital
outflows. In addition, the banking sector does not pose immediate
or significant contingent risks to the government's balance
sheet, thereby raising fiscal headroom and added scope to policy
responsiveness to future shocks.
Issues related to governance and a fundamental assessment of
institutional strength remain a concern in regard to a further
improvement in Indonesia's credit fundamentals. In addition,
continued progress on targeted subsidy reform would be credit
positive.
The stable outlook also reflects the expectation of continued
policy flexibility and the adept management of risks stemming
from global financial market volatility, based in turn on the
tepid recovery in the US and the ongoing sovereign debt stress
apparent in the euro zone.
Indonesia's long-term foreign currency (FC) bond ceiling was also
raised to Baa2 from Baa3, while the long-term FC deposit ceiling
was aligned with the government bond rating at Baa3. In addition,
the short-term FC bond and deposit ceilings were upgraded to P-3.
The outlook for these ceilings is stable. These ceilings act as a
cap on ratings that can be assigned to the FC obligations of
other entities domiciled in the country.
The local currency bond and deposit ceilings were also upgraded
to A3 from Baa1.
What Could Change the Rating--Up
The following factors could lead to an upgrade: Increased fiscal
space resulting from improved revenue mobilization; continued
health of the country's balance of payments and the financial
system, coupled with a longer track record of monetary and price
stability; sustained progress in addressing infrastructure
bottlenecks that contribute to an increase in potential growth;
or a gradual deepening of local capital and credit markets to
support the onshore finance-ability of the government's borrowing
requirements.
What Could Change the Rating--Down
The following factors could lead to a downgrade: Sustained loss
of inflation control and monetary stability; or a large shock to
the country's fiscal, debt and foreign currency reserve position,
derived, for instance, from policy mismanagement, or some other
domestic political shock, which results in a deep deterioration
of resident and investor confidence.
Methodology
The principal methodology used in this rating was Sovereign Bond
Ratings published in September 2008.
* Moody's Takes Rating Actions on Indonesia Gov't-Related Issuers
-----------------------------------------------------------------
Moody's Investors Service has taken a number of rating actions on
Indonesian corporate government-related issuers (GRIs), following
its earlier announcement that it had upgraded the country's
sovereign rating to Baa3 from Ba1. Moody's had also upgraded the
foreign currency country ceiling to Baa2 and the local currency
country ceiling to A3.
As a result of the sovereign actions, Moody's has upgraded the
ratings of:
- PT Perusahaan Listrik Negara (PLN) -- Baa3
- PT Pertamina (Persero) -- Baa3
The outlook of both ratings is stable. As is custom with
investment grade ratings, Moody's has withdrawn the corporate
family ratings of PLN and Pertamina and replaced them with the
assignment of Issuer Ratings.
Moody's has also affirmed the Ba1 rating of Perusahaan Gas Negara
(PGN), and changed the outlook to positive from stable.
At the same time, Moody's has affirmed the ratings of these
companies:
- PT Aneka Tambang (Antam) -- Ba3
- Semen Gresik -- Ba1
- Telekomunikasi Indonesia (Telkom) -- Baa1 (local currency)
The outlook of three ratings remains stable.
Ratings Rationale
"The upgrades of PLN and Pertamina to Baa3 reflect the strategic
importance of both companies to Indonesia, as well as their close
operational, financial and managerial linkages with the
government," says Simon Wong, a Moody's Vice President and Senior
Analyst.
"The fundamental credit profiles of both companies, as measured
by their baseline credit assessments which are now also
equivalent to Baa3, are already equalized with the sovereign at
present, in addition to Moody's assumption of very high
exceptional government support. Accordingly, Moody's expects both
companies' ratings to continue to move in line with that of the
sovereign" Mr. Wong adds, who is also lead analyst for both
Pertamina and PLN.
PLN's ratings are underpinned by its 100% ownership by the
Ministry of State-Owned Enterprises (MSOE), its strategic
importance as Indonesia's only vertically integrated electricity
utility, and the ongoing support it obtains from the government
in the form of subsidies aimed at securing its financial
viability and operational soundness.
Therefore, PLN's ratings are closely integrated with, and
strongly linked to, the government's credit quality.
Similarly, Pertamina's ratings are strongly linked to the
sovereign rating, given the 100% government ownership, its
strategic role in oil & gas exploration and product distribution,
and the government's tight supervision of its strategies and
budgets.
PGN's ratings, which were affirmed at Ba1, continue to
incorporate high exceptional support from the government.
However, PGN's baseline credit assessment was left unchanged at
the equivalent of Ba2. This is due to uncertainties arising from
the potential renegotiation of its gas purchase contracts and its
ability to fully pass through any increase in gas purchase costs.
However, the outlook was changed to positive to reflect further
upward pressure which could lead to an upgrade of PGN's ratings
to Baa3, if this issue is resolved favourably. The positive
outlook also reflects PGN's sustained strong financial profile
and the now lower economic and political risks associated with
Indonesia.
The ratings of Antam, Semen Gresik and Telkom were all affirmed
at their present levels.
"The Ba3 ratings of Antam and Ba1 ratings of Semen Gresik remain
constrained by their standalone credit profiles, although the
former continues to incorporate one notch uplift for government
support from its baseline credit assessment equivalent to B1,"
says Vikas Halan, a Vice President -- Senior Analyst at Moody's.
"The support factored into Antam's rating by one notch remains
appropriate, despite the sovereign upgrade. Its baseline credit
assessment remains constrained by its relatively small scale
compared with global mining companies, and the execution risk
from its ongoing expansion. Similarly, Semen Gresik's rating is
unchanged, as it did not incorporate any material uplift for
government support," Halan adds, who is also lead analyst for
Antam and Semen Gresik.
Telkom's Baa1 local currency rating is also derived entirely from
its fundamental credit profile, and thus the upgrade of
Indonesia's local currency ceiling to A3 has no impact on
Telkom's rating. Despite its relatively strong financial profile,
upward pressure on its rating remains constrained by intense
competition in the Indonesian cellular market, considerations of
the emerging market risk, as well as the risk of interference
from the government, which could decide to change the company's
financial and shareholder remuneration policies in a stressful
situation.
The principal methodology used in rating PT Perusahaan Listrik
Negara and Perusahaan Gas Negara (PGN) was Regulated Electric and
Gas Utilities published in August 2009 and Government-Related
Issuers: Methodology Update published in July 2010.
The principal methodology used in rating PT Pertamina (Persero)
was the Global Integrated Oil & Gas Industry Methodology
published in November 2009 and Government-Related Issuers:
Methodology Update published in July 2010.
The principal methodology used in rating PT Aneka Tambang (Antam)
was the Global Mining Industry Methodology published in May 2009
and Government-Related Issuers: Methodology Update published in
July 2010.
The principal methodology used in rating Semen Gresik was the
Global Building Materials Industry Methodology published in July
2009 and Government-Related Issuers: Methodology Update published
in July 2010.
The principal methodology used in rating Telekomunikasi Indonesia
(Telkom) was the Global Telecommunications Industry Methodology
published in December 2010 and Government-Related Issuers:
Methodology Update published in July 2010.
PT Perusahaan Listrik Negara is an Indonesian state-owned
vertically integrated electricity utility with a generation
capacity of over 28,300MW. It is a monopoly operator of
transmission and distribution networks and is the country's
largest electricity producer. The government, represented by the
Ministry of State-Owned Enterprises (MSOE), has complete
ownership.
PT Pertamina (Persero) is a 100% Indonesian government-owned,
fully-integrated oil and gas corporation, with operations in
upstream oil, gas and geothermal exploration and production,
downstream oil refining, marketing, distribution, transportation
and trading of petroleum products.
Established in 1968 and listed on the stock exchanges of
Indonesia and Australia, PT Aneka Tambang (Persero) Tbk is a
leading Indonesian company engaged in the exploration,
excavation, processing, refining and marketing of nickel ore,
ferronickel, gold, silver and bauxite. It has joint-venture
interests in several exploration projects. Antam is 65%-owned by
the Indonesian government, with the remaining 35% in the hands of
the public.
Established in 1965, Perusahaan Gas Negara (PGN) is primarily
engaged in the transmission and distribution of natural gas. Its
transmission business mainly operates under its 60%-owned
subsidiary, PT Transportasi Gas Indonesia (TGI), while its
distribution business has a strong market share.
Semen Gresik is the largest cement producer in Indonesia. It has
a total production capacity of 19.0 million tons per annum from
its three facilities located in Indonesia.
Headquartered in Jakarta, Telkom is the largest integrated
telecommunications company in Indonesia. The company, along with
its majority-owned subsidiary Telekomunikasi Selular (rated
Baa1/Stable), generated gross revenues of IDR53.1 trillion
(approximately US$6.0 billion) for the nine months ending
September 30, 2011. Telkom is 52.85%-owned by the government of
Indonesia.
* Moody's Raises Foreign Currency Rating of 9 Banks From 'Ba2'
--------------------------------------------------------------
Moody's Investors Service has raised the constrained foreign
currency long-term/short-term deposit ratings of 9 Indonesian
banks to Baa3/Prime-3 from Ba2/Not Prime. The revised ratings
carry stable outlooks.
The nine banks are Bank Central Asia, Bank CIMB-Niaga, Bank
Danamon Indonesia, Bank Mandiri, Bank Negara Indonesia, Bank
Permata, Bank Rakyat Indonesia, Bank Tabungan Negara and Pan
Indonesia Bank.
At the same time, the agency has also raised the foreign currency
issuer ratings of Bank Central Asia and Bank CIMB-Niaga to Baa3
from Ba1. The revised ratings carry stable outlooks.
Ratings Rationale
The upgrades are in line with the rating actions taken on Jan.
18, 2012 to raise Indonesia's foreign currency and local currency
government bond ratings to Baa3 from Ba1; foreign currency
deposit ceiling to Baa3/Prime-3 from Ba2/Not Prime and foreign
currency bond ceiling to Baa2 from Baa3. See press release of
January 18, 2012 for more details on sovereign issues.
Principal Methodologies
The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007,
and Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: A Refined Methodology published in March 2007.
All nine banks are headquartered in Jakarta. Below are details of
their assets at September 2011:
Bank Central Asia IDR362.32 trillion; Bank CIMB-Niaga IDR159.15
trillion; Bank Danamon Indonesia IDR136.07 trillion; Bank Mandiri
IDR501.95 trillion; Bank Negara Indonesia IDR268.43 trillion;
Bank Permata IDR92.60 trillion; Bank Rakyat Indonesia IDR402.03
trillion; Bank Tabungan Negara IDR76.05 trillion; and Pan
Indonesia Bank IDR112.40 trillion.
The detailed ratings and actions are:
Bank Central Asia: The foreign currency long-term/short-term
deposit were raised to Baa3/Prime-3 from Ba2/Not Prime and
foreign currency issuer to Baa3 from Ba1. The revised ratings
have stable outlooks. All other ratings were unaffected and have
stable outlooks: Baa3 global local currency (GLC) deposit; and D+
bank financial strength (BFSR), which maps to a Ba1 baseline
credit assessment (BCA).
Bank CIMB-Niaga: The foreign currency long-term/short-term
deposit were raised to Baa3/Prime-3 from Ba2/Not Prime and
foreign currency issuer to Baa3 from Ba1. The revised ratings
have stable outlooks. All other ratings were unaffected and have
stable outlooks: Baa3 GLC deposit; Ba1 foreign currency
subordinated debt; and D BFSR, which maps to a Ba2 BCA.
Bank Danamon Indonesia: The foreign currency long-term/short-term
deposit were raised to Baa3/Prime-3 from Ba2/Not Prime. The
revised ratings have stable outlooks. All other ratings were
unaffected: Baa3 GLC deposit; and D BFSR, which maps to a Ba2
BCA. All carry stable outlooks except the BFSR which has a
positive outlook.
Bank Mandiri: The foreign currency long-term/short-term deposit
were raised to Baa3/Prime-3 from Ba2/Not Prime. The revised
ratings have stable outlooks. All other ratings were unaffected
and have stable outlooks: Baa3 GLC deposit; and D BFSR, which
maps to a Ba2 BCA.
Bank Negara Indonesia: The foreign currency long-term/short-term
deposit were raised to Baa3/Prime-3 from Ba2/Not Prime. The
revised ratings have stable outlooks. All other ratings were
unaffected and have stable outlooks: Baa3 GLC deposit; and D
BFSR, which maps to a Ba2 BCA.
Bank Permata: The foreign currency long-term/short-term deposit
were raised to Baa3/Prime-3 from Ba2/Not Prime. The revised
ratings have stable outlooks. All other ratings were unaffected:
Baa3 GLC deposit; and D- BFSR, which maps to a Ba3 BCA. All carry
stable outlooks except the BFSR which has a positive outlook.
Bank Rakyat Indonesia: The foreign currency long-term/short-term
deposit were raised to Baa3/Prime-3 from Ba2/Not Prime. The
revised ratings have stable outlooks. All other ratings were
unaffected and have stable outlooks: Baa3 GLC deposit; and D+
BFSR, which maps to a Ba1 BCA.
Bank Tabungan Negara: The foreign currency long-term/short-term
deposit were raised to Baa3/Prime-3 from Ba2/Not Prime. The
revised ratings have stable outlooks. All other ratings were
unaffected and have stable outlooks: Baa3 GLC deposit; and D-
BFSR, which maps to a Ba3 BCA.
Pan Indonesia Bank: The foreign currency long-term/short-term
deposit were raised to Baa3/Prime-3 from Ba2/Not Prime. The
revised ratings have stable outlooks. All other ratings were
unaffected and have stable outlooks: Baa3 GLC deposit; and D
BFSR, which maps to a Ba3 BCA.
=========
J A P A N
=========
TOKYO ELECTRIC: State Takeover Could Last at Least 10 Years
-----------------------------------------------------------
Kyodo News reports that sources said Tokyo Electric Power Co.
would be effectively nationalized for at least 10 years and be
expected to return to the black in fiscal 2013 under a plan being
considered by the government-backed entity for funding nuclear
disaster compensation.
Kyodo's sources said the plan will likely be included in a
special comprehensive business plan for TEPCO to be compiled in
March by the utility and the Nuclear Damage Liability
Facilitation Fund.
TEPCO would remain a listed company, sources told Kyodo.
According to the news agency, the business plan is intended to
prevent the utility from becoming insolvent due to the massive
costs stemming from the Fukushima No. 1 nuclear plant disaster,
while making sure that compensation payments related to the
accident are made in a timely fashion.
The injection of public funds that would effectively nationalize
Tepco is expected to amount to about JPY1 trillion, the report
says. The company, according to Kyodo, will also try to improve
its earnings by raising household electricity charges, possibly
in the fall, as well as by reactivating its idled reactors in
Niigata Prefecture starting in spring 2013.
Once TEPCO starts to log net profits, the company is likely to be
urged to repay the financial assistance it has received from the
Nuclear Damage Liability Facilitation Fund, using half of its
pretax profits every year, the sources, as cited by Kyodo, said.
The funding entity receives money from special government bonds
and contributions from other utilities with nuclear plants, the
report notes.
Kyodo says banks would effectively reschedule the repayment
deadline for around JPY2 trillion in emergency loans extended to
Tepco shortly after the nuclear crisis erupted in March.
Sources said the banks would also be expected to provide an
additional JPY1 trillion in loans to help TEPCO boost its
financial standing, Kyodo relates.
In hopes of the virtual nationalization ending as early as
March 2022, the utility would set aside a certain portion of its
profits to repay the JPY1 trillion in public funds, the report
notes. But if its financial situation deteriorates
significantly, TEPCO may be delisted, Kyodo's sources said.
About Tokyo Electric
Tokyo Electric Power Company (TEPCO) is the largest electric
power company in Japan and the largest privately owned electric
utility in the world. TEPCO supplies electricity to meet the
increasingly diversified and sophisticated demands of its over
28.09 million customers in the metropolitan Tokyo, which is the
political, economic, and cultural center of Japan, and eight
surrounding prefectures.
Bloomberg News said the utility is battling radiation leaks at
the Fukushima Dai-Ichi power plant north of Tokyo after a
March 11 earthquake and tsunami knocked out its cooling systems,
causing the biggest atomic accident in 25 years. More than
50,000 households were forced to evacuate and Bank of America
Corp.'s Merrill Lynch estimates TEPCO may face compensation
claims of as much as JPY11 trillion (US$135 billion).
As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 11, 2011, Moody's Japan K.K. confirmed the ratings of TEPCO.
The ratings confirmed include its senior secured rating of Ba2,
long-term issuer rating of B1, and Corporate Family Rating of
Ba3. The ratings outlook is negative.
====================
N E W Z E A L A N D
====================
PUMPKIN PATCH: Places UK Operations Into Administration
-------------------------------------------------------
Fairfax NZ News reports that Pumpkin Patch Ltd has announced it
has placed its UK operations into administration, following
ongoing losses amid the weak retail environment and moribund
British economy.
The announcement comes after a review of the British subsidiary,
and will potentially see the closure of its 36 stores with costs
as high as NZ$32 million, the news agency relates.
"The return on investment from the UK retail operation has not
been acceptable and the current trading losses being generated
only accentuate this," the report quotes chief executive Neil
Cowie as saying. "The economic environment in the UK and in
wider Europe is extremely difficult and we believe it is going to
get worse before it gets better. Therefore we expect the UK
operation would continue to make losses for some time to come."
According to the Fairfax NZ, the announcement to the stock
exchange will see Pumpkin Patch hand over day-to-day control of
the subsidiary to the administrators, with Mr. Cowie saying their
next move was unclear but did not rule out the closure of some if
not all of the UK-based stores.
Faixfax NZ discloses that cash costs are expected to be between
NZ$3 million and NZ$5 million while non-cash costs are seen at
between NZ$25 million and NZ$27 million. That's likely to result
in a before tax impact of between NZ$11 million and NZ$13 million
as a number of items being provided for are already included in
shareholders funds, the company, as cited by Fairfax NZ, said.
Pumpkin Patch said the decision to put the UK subsidiary into
liquidation will not materially affect any other group in the
company including the New Zealand parent company, the Irish
subsidiary company, or the group companies, the report adds.
About Pumpkin Patch
Based in New Zealand, Pumpkin Patch Limited (NZE:PPL) --
http://www.pumpkinpatch.biz/-- is a designer, marketer, retailer
and wholesaler of children's clothing. The Company's product
range encompasses all stages of a child's growth, from baby to
toddler, primary school kid to pre and early teen, including
clothing, nightwear, accessories, rainwear, footwear and teddy
collection. Pumpkin Patch also caters for mums-to-be with a
maternity collection. The Company also has a fashion mini-brand
for discerning pre and early-teen girls, Urban Angel Girls. The
Company's collections are available in numerous countries and
regions, including New Zealand, Australia, the United Kingdom,
the United States, South Africa and the Middle East. Pumpkin
Patch predominantly sells through its own store network in
New Zealand, Australia, the United Kingdom and the United States.
The Company's subsidiaries include Torquay Enterprises Limited,
Pumpkin Patch Originals Limited, Pumpkin Patch LLC, Pumpkin Patch
Direct Limited, Patch Kids Limited and Urban Angel Girls Limited.
*********
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, Ivy B. Magdadaro, Frauline S.
Abangan, and Peter A. Chapman, Editors.
Copyright 2012. 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
Peter Chapman at 240/629-3300.
*** End of Transmission ***