/raid1/www/Hosts/bankrupt/TCRAP_Public/120723.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, July 23, 2012, Vol. 15, No. 145
Headlines
A U S T R A L I A
DARRELL LEA: Administrators in Advance Talks with 4 Bidders
C H I N A
CHAI-NA-TA CORP: Obtains Certificate of Intent to Dissolve
CHINA BAK: Had $15.6 Million Net Loss in 2012 1st Quarter
CHINA GINSENG: Had $282,000 Net Loss in March 31 Quarter
FAMOUS COMMERCIAL: Moody's Assigns 'Ba3' Corporate Family Rating
GEMDALE CORP: S&P Gives 'BB-' Rating on RMB-Denominated Sr. Notes
SOUND GLOBAL: S&P Gives 'B+' Rating on USD Senior Unsecured Notes
WINSWAY COKING: Fitch Affirms 'BB' IDR; Outlook Negative
* CHINA: Moody's Sees Potential Rating Uplift for Local SOEs
* Fitch Affirms LTFC IDR of China's Tier 2 Commercial Banks
H O N G K O N G
FIRST REGENT: Court to Hear Wind-Up Petition on Aug. 8
KITEX LIMITED: Court to Hear Wind-Up Petition on Aug. 22
NAM TAI: Creditors and Contributories to Meet on Aug. 16
PETS CENTRAL: First Meeting Slated for Aug. 9
RONNY INDUSTRIES: Wong and Arab Appointed as Liquidators
SELECT FOOD: Pang Wai Kui Steps Down as Liquidator
SIMON HARRISON: Court to Hear Wind-Up Petition on Aug. 22
SOLARI COMPUTER: Court Enters Wind-Up Order
SPEYMILL PROPERTY: Members' Final Meeting Set for Aug. 13
WAH YING: Creditors Get 30.67% Recovery on Claims
WING KAI: Creditors and Contributories to Meet on Aug. 3
WING KEY: Court Enters Wind-Up Order
WORLD EXPRESS: Members' Final Meeting Set for Aug. 13
YILI COMPANY: Members' Final General Meeting Set for Aug. 16
I N D I A
ABCO Steel: ICRA Rates INR11cr LT Loan at '[ICRA]BB-'
BIRLA ERICSSON: ICRA Revises Rating on INR27.9cr Loans to 'BB-'
BUDGE BUDGE: Inadequate Info Cues Fitch to Withdraw Ratings
CAPITAL DISTRIBUTOR: Fitch Withdraws 'B+' National LT Rating
FLEMING LAB: Inadequate Info Cues Fitch to Migrate Rating
GENERAL NICE: Delay in Loan Payment Cues ICRA Junk Ratings
HALCYON LIFE: ICRA Cuts Rating on INR105cr Loan to '[ICRA] BB'
KAUSTHUBHA PROJECT: ICRA Withdraws Junk Bank Limit Rating
KRISHNA TRADERS: ICRA Reaffirms 'BB+' Rating on INR2cr Loan
MAHARASHTRA SHETKARI: ICRA Reaffirms 'BB-' INR150cr Loan Rating
MOKALBARI KANOI: Inadequate Info Cues Fitch to Withdraw Ratings
NAVYUG ENT: Inadequate Info Cues Fitch to Withdraw Ratings
NEEPAZ V: Fitch Assigns 'B' National Long-Term Rating
PADMAVATI PULP: ICRA Places 'B+' Rating on INR14.86cr Loans
POWER SPINING: Inadequate Info Cues Fitch to Withdraw Ratings
RABIRUM VINIMAY: Inadequate Info Cues Fitch to Withdraw Ratings
RAJ RAYON: ICRA Assigns 'BB+' Rating on INR351cr Loans
REPROSCA TECH: Inadequate Info Cues Fitch to Withdraw Ratings
UMRAO INSTITUTE: Inadequate Info Cues Fitch to Migrate Ratings
VICKY REALTORS: Fitch Assigns Nat'l Long-Term Rating at 'BB+'
I N D O N E S I A
BAKRIE TELECOM: Fitch Places 'CCC' IDR on Rating Watch Negative
M A L A Y S I A
SBB CAPITAL: Moody's Assigns 'Ba2' Rating to Preference Shares
N E W Z E A L A N D
MACLEAN COMPUTERS: Owes More Than NZ$3MM, Liquidator Says
S I N G A P O R E
AGMAS TRADING: Court to Hear Wind-Up Petition July 27
AI MIEN: Creditors' Proofs of Debt Due Aug. 21
CHANCERY INVESTMENTS: Creditors' Proofs of Debt Due Aug. 20
DUPONT PERFORMANCE: Creditors' Proofs of Debt Due Aug. 21
GUANGZHAO INDUSTRIAL: Creditors' First Meeting Set for July 30
FOK LOONG: Creditors' Proofs of Debt Due Aug. 21
HLK TECHNO: Court Enters Wind-Up Order
S R I L A N K A
PEOPLE'S LEASING: Fitch Puts 'B+' Rating on IDR; Outlook Stable
V I E T N A M
ACER INC: Fitch Downgrades Issuer Default Rating to 'BB+'
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A U S T R A L I A
=================
DARRELL LEA: Administrators in Advance Talks with 4 Bidders
-----------------------------------------------------------
Australian Associated Press reports that Darrell Lea's
administrators PPB Advisory said they are in talks with 90 local
and international parties interested in buying the troubled
chocolate business.
According to the news agency, administrator Mark Robinson said
four of the parties, which were involved in sale talks before the
company went into voluntary administration 10 days ago, were at a
more advanced level of talks.
AAP relates that Mr. Robinson was unable to confirm whether any
firm offers had been made for Darrell Lea or if the 85-year-old
family-owned company would be broken up, but he said the company
had managed to double its sales since it went into administration
on July 10.
Workers at Darrell Lea have thanked customers, following the
doubling of sales, the report relates.
AAP adds that the Australian Manufacturing Workers' Union's
secretary of the food and confectionery division, Jennifer
Dowell, said customers had helped the company's 700 workers
facing redundancy.
Ms. Dowell, as cited by AAP, said the administrators had a four-
week window to try and sell the business.
About Darrell Lea
Founded in 1927, Darrell Lea is an iconic Australian brand and a
highly regarded manufacturer and retailer of confectionary
products. Its products are sold through 69 owned and licensed
stores and 1,800 retail outlets across Australia, New Zealand and
the USA. Darrell Lea employs around 700 people across its Sydney
based manufacturing facility and its retail network.
The directors of Darrell Lea Chocolate Shops Pty Ltd and Ricci
Remond Chocolate Company Pty Ltd on July 10, 2012, appointed
Mark Robinson, Jack Bournelis and Daniel Walley of PPB Advisory
as voluntary administrators of the business.
PPB Advisory's appointment follows an ongoing review of the
business by its directors and their concerns about Darrell Lea's
ability to meet its ongoing financial obligations.
=========
C H I N A
=========
CHAI-NA-TA CORP: Obtains Certificate of Intent to Dissolve
----------------------------------------------------------
Chai-Na-Ta Corp. announced that pursuant to section 211 (7) of
the Canada Business Corporations Act, the Corporation has
obtained a Certificate of Intent to Dissolve from Corporations
Canada dated July 9, 2012.
The Corporation will cease to carry on business except to the
extent necessary for the liquidation. Once the liquidation of the
Corporation and the final payments to the Corporation's creditors
and the final distributions to its shareholders are completed,
the Corporation will make an application to Corporations Canada
for a Certificate of Dissolution.
2012 First Quarter Results
Chai-Na-Ta Corp. reported a net loss of C$293,000 on
C$2.75 million of revenue for the three months ended March 31,
2012, compared with net income of C$1.16 million on C$3.53
million of revenue for the same period in 2011.
The Company's balance sheet at March 31, 2012, showed
C$11.41 million in total assets, C$688,000 in total liabilities,
and stockholders' equity of C$10.72 million.
"During the first quarter of 2012, the Board of Directors of the
Company instructed management to initiate a plan to liquidate the
Company subject to approval of the shareholders. Subsequent to
the end of the reporting period, the shareholders of the Company
approved the plan to liquidate the Company. The Company will
continue to operate while selling the remaining inventory from
the 2011 harvest which is expected to be completed in the second
quarter of 2012. As such, there is substantial doubt about the
Company's ability to continue indefinitely as a going concern."
A copy of the Corporation's Interim Condensed Consolidated
Financial Statements for the three months ended March 31, 2012,
is available for free at http://is.gd/ATCiLe
Chai-Na-Ta Corp., based in Richmond, British Columbia, farmed,
processed and distributed North American ginseng as bulk root.
The Company operates in international markets and conducts
business in Canada (bulk root farming operations and certain bulk
root sales) as well as Hong Kong and China (bulk root sales
centre in Asia).
CHINA BAK: Had $15.6 Million Net Loss in 2012 1st Quarter
---------------------------------------------------------
China BAK Battery, Inc., reported a net loss of $15.63 million on
$32.78 million of revenues for the three months ended March 31,
2012, compared with a net loss of $4.08 million on $46.71 million
of revenues for the three months ended March 31, 2011.
For the six months ended March 31, 2012, the Company reported a
net loss of $17.45 million on $104.54 million of revenues,
compared with a net loss of $7.74 million on $110.24 million of
revenues for the six months ended March 31, 2011.
The Company's balance sheet at March 31, 2012, showed
$469.62 million in total assets, $349.46 million in total
liabilities, and stockholders' equity of $120.16 million.
"We had a working capital deficiency, accumulated deficit from
recurring net losses incurred for the current and prior periods
as at March 31, 2012, and significant short-term debt obligations
maturing in less than one year."
As reported in the TCR on Dec. 20, 2011, PKF, in Hong Kong,
China, expressed substantial doubt about China BAK's ability to
continue as a going concern, following the Company's results for
the fiscal year ended Sept. 30, 2011. The independent auditors
noted that the Company has a working capital deficiency,
accumulated deficit from recurring net losses incurred for the
current and prior years and significant short-term debt
obligations maturing in less than one year as of Sept. 30, 2011.
A copy of the Form 10-Q is available for free at:
http://is.gd/81ulJw
Shenzhen, P.R.C.-based China BAK Battery, Inc., is a global
manufacturer of lithium-based battery cells. The Company
produces battery cells for OEM customers and replacement battery
manufacturers.
CHINA GINSENG: Had $282,000 Net Loss in March 31 Quarter
--------------------------------------------------------
China Ginseng Holdings, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $281,962 on $902,807 of revenues
for the three months ended March 31, 2012, compared with a net
loss of $223,630 on $2.01 million of revenues for the three
months ended March 31, 2011.
For the nine months ended March 31, 2012, the Company reported a
net loss of $1.12 million on $3.15 million of revenues, compared
with a net loss of $672,237 on $3.09 million of revenues for the
nine months ended March 31, 2011.
The Company's balance sheet at March 31, 2012, showed
$10.27 million in total assets, $6.03 million in total
liabilities, and stockholders' equity of $4.24 million.
"The Company had an accumulated deficit of $3,952,089 as of
March 31, 2012, and there are existing uncertain conditions the
Company foresees relating to its ability to obtain working
capital and operate successfully. Management's plans include the
raising of capital through the equity markets to fund future
operations and the generating of revenue through its businesses.
Failure to raise adequate capital and generate adequate sales
revenues could result in the Company having to curtail or cease
operations."
"Additionally, even if the Company does raise sufficient capital
to support its operating expenses and generate adequate revenues,
there can be no assurances that the revenues will be sufficient
to enable it to develop business to a level where it will
generate profits and cash flows from operations. These matters
raise substantial doubt about the Company's ability to continue
as a going concern."
As reported in the TCR on Oct. 20, 2011, Meyler & Company, LLC,
in Middletown, N.J., expressed substantial doubt about China
Ginseng's ability to continue as a going concern, following the
Company's results for the fiscal year ended June 30, 2011. The
independent auditors noted that the Company has incurred an
accumulated deficit of $2.8 million since inception, and
there are existing uncertain conditions the Company faces
relative to its ability to obtain working capital and operate
successfully.
A complete text of the Form 10-Q is available for free at:
http://is.gd/W0LVqP
China Ginseng Holdings, Inc., headquartered in Changchun City,
China, was incorporated on June 24, 2004, in the State of Nevada.
The Company conducts business through its four wholly-owned
subsidiaries located in Northeast China. The Company has been
granted 20-year land use rights to 3,705 acres of lands by the
Chinese government for ginseng planting and it controls through
lease approximately 750 acres of grape vineyards.
Since its inception in 2004, the Company has been engaged in the
business of farming, processing, distribution and marketing of
fresh ginseng, dry ginseng, ginseng seeds, and seedlings. In
March 2008, it acquired Tonghua Linyuan Grape Planting Co.,
Ltd.m, to plant wild mountain grapes. Starting in August 2010,
it has gradually shifted the focus of its business from direct
sales of ginseng to canned ginseng juice production and wine
production.
FAMOUS COMMERCIAL: Moody's Assigns 'Ba3' Corporate Family Rating
----------------------------------------------------------------
Moody's Investors Service has assigned a first-time Ba3 corporate
family rating to Famous Commercial Limited, a wholly owned
subsidiary of Gemdale Corporation (Ba1/stable).
At the same time, Moody's has assigned a provisional (P)Ba3
rating to the proposed senior unsecured bonds to be issued by
Gemdale International Holding Limited, a wholly owned subsidiary
of Famous.
The bonds will be guaranteed by Famous and supported by a Deed of
Equity Interest Purchase Undertaking and a Keepwell Deed between
Famous, Gemdale and the bond trustee.
The ratings outlook is stable.
The proceeds from the bond issue will be used to fund Famous'
land acquisitions and working capital requirements.
The bond's provisional rating status will be removed after the
completion of issuance upon satisfactory terms and conditions.
Ratings Rationale
"Famous' Ba3 corporate family rating reflects its B2 standalone
credit profile and a 2-notch rating uplift, based upon financial
and operational support provided by Gemdale," says Kaven Tsang, a
Moody's Vice President and Senior Analyst.
"The two notches of uplift incorporates (i) Gemdale's 100%
ownership of Famous; (ii) a track record of financial support to
Famous from Gemdale in the form of bank loans ultimately
guaranteed by Gemdale; and (iii) the fact that all Famous'
projects are operated by Gemdale, thereby offering cost
efficiency and a strong brand name," adds Tsang.
Moreover, Famous follows Gemdale's disciplined approach in
growing its business.
Famous' B2 standalone rating also reflects its small scale
operation -- 12 projects in 6 cities; a land bank of
approximately 2.9 million sqm in GFA, and annual contract sales
of approximately RMB3 billion. As 5 projects are in one city,
Moody's expects a high degree of volatility in Famous' sales
performance.
The B2 rating also reflects Famous' weak projected credit metrics
-- debt/total capitalization above 80% and EBITDA/interest of 2x-
2.5x -- for the coming 1-2 years.
Moody's says that the provisional bond rating of (P)Ba3 is based
upon (i) the absence of subordination risk to bondholders, and
(ii) the expectation of financial support from Gemdale to Famous.
All of the debt currently borrowed by Famous is borrowed on an
unsecured basis at its own level rather than that of its
subsidiaries. Moody's expects this practice to continue. As such,
the claims of bondholders are not subordinated to those of other
creditors of Famous.
Bondholders will be protected by (a) a Deed of Equity Interest
Purchase Undertaking; (b) a Keepwell Deed; (c) a limit on change
of control at Famous; and (d) an interest reserve account. These
features provide the mechanism for Gemdale to assist Famous in
the repayment of the bond obligations.
The stable outlook reflects Moody's expectation that Famous will
stay well managed by Gemdale which provides financial and
operational support.
Upgrade pressure could emerge if Famous can demonstrate that it
can (1) successfully implement its business plan; (2) improve its
scale and diversity to reduce sales and earnings volatility; and
(3) improve its credit profile.
Credit metrics which Moody's would consider for an upgrade
include an improvement in adjusted debt leverage such that it
falls below 55%- 60% and EBITDA/interest rises above 3x on a
sustained basis.
On the other hand, the ratings could come under downward pressure
if Famous (1) fails to execute its business plan, such that sales
and operating cash flow generation are weaker than anticipated;
and/or (2) materially accelerates development and executes an
aggressive land acquisition plan, such that EBITDA/interest drops
below 1x-1.5x on a sustained basis.
Any evidence of a weakening in the support from Gemdale to
Famous, or a deterioration in Gemdale's credit profile could also
be ratings negative.
The principal methodology used in rating Famous was the Global
Homebuilding Industry Methodology published March 2009.
Incorporated in Hong Kong in 1995, Famous is a wholly-owned
subsidiary of Gemdale Corporation. It was initially established
as a sales office in Hong Kong to sell Gemdale's property
projects to overseas customers. It was eventually developed as an
offshore holding company housing some of Gemdale's property
projects in China. It also serves as a funding vehicle in the
overseas market.
Incorporated in China, Gemdale Corporation is one of the leading
developers in China's residential property sector. It was founded
in 1988 and was then 100% indirectly owned by the government of
Futian district in Shenzhen. Gemdale began its property
development business in Shenzhen in 1993 and has progressively
expanded its business to cover the six major regions across the
country over the past 20 years. Currently, it has a land bank of
17.1 million sqm in gross floor area (GFA) in 20 cities.
GEMDALE CORP: S&P Gives 'BB-' Rating on RMB-Denominated Sr. Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' issue
rating and 'cnBBB-' Greater China credit scale rating to the
proposed issue of Chinese renminbi denominated senior unsecured
notes due 2015 by Gemdale International Holding Ltd. (not rated).
Famous Commercial Ltd. (not rated), a 100% owned Hong Kong-based
offshore holding company and financial platform of Gemdale Corp.
(Gemdale: BB+/Stable/--), and five other offshore subsidiaries of
Gemdale unconditionally and irrevocably guarantee the notes.
Gemdale intends to use the net proceeds to meet its general
corporate and working capital needs.
"Gemdale International is a special-purpose vehicle that Famous
fully owns. We apply a top-down approach while assessing the
parent-subsidiary link between Gemdale and Famous because the
stand-alone credit profile of Famous is not meaningful, in our
view," S&P said.
The issue rating is two notches below the long-term corporate
credit rating on Gemdale because:
S&P views Famous as a "highly strategic" subsidiary, but not a
"core" subsidiary, of Gemdale. Although it is integrated with
Gemdale strategically, financially and operationally, Famous
has a limited operating history. It was founded in 2005. Its
current scale is small, with total assets accounting for only
10% of Gemdale's total assets.
The timeliness of the financial support from Gemdale to Famous
is uncertain due to China's controls over foreign exchange and
capital, and uncertainty relating to regulatory approvals.
"A keepwell agreement and equity repurchase undertaking
between Gemdale and Famous demonstrate the parent's strong
commitment to the subsidiary. Nevertheless, we don't view
these agreements as a guarantee that would equalize the issue
rating with the rating on Gemdale," S&P said.
SOUND GLOBAL: S&P Gives 'B+' Rating on USD Senior Unsecured Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' issue rating
and 'cnBB' Greater China credit scale issue rating to the
proposed U.S.-dollar senior unsecured notes by Sound Global Ltd.
(BB-/Stable/--; cnBB+). "The rating is subject to our review of
the final issuance documentation. The company plans to use the
net proceeds from the proposed issuance to invest in BOT (build,
operate, and transfer) projects, refinance the convertible bonds,
and for working capital and other general and corporate
purposes," S&P said.
"The issue rating is one notch below the corporate credit rating
due to structural subordination risk. We believe the company's
ratio of priority debt to total assets will likely remain above
our threshold of 15% for speculative-grade debt in the next 12
months," S&P said.
"The rating on Sound Global Ltd. reflects our view of the
intensifying competition in China's highly fragmented wastewater
treatment industry. Sound Global's limited revenue base and the
risks from the company's overseas engineering, procurement, and
construction (EPC) projects also constrain the rating. Favorable
industry prospects, Sound Global's revenue visibility, track
record, and low debt leverage temper these weaknesses," S&P said.
"The stable outlook reflects our expectation that Sound Global
will maintain a stable to steadily rising backlog of domestic EPC
projects. We also expect prospects for the water and wastewater
treatment industry to remain favorable. A steadily growing
business and consistent financial management are also likely to
help the company maintain its financial risk profile," S&P said.
WINSWAY COKING: Fitch Affirms 'BB' IDR; Outlook Negative
--------------------------------------------------------
Fitch Ratings has revised Winsway Coking Coal Holdings Ltd's
Outlook to Negative from Stable, due to its worse-than-expected
performance resulting from current coking coal price volatility.
The agency has also affirmed Winsway's Long-Term Foreign Currency
Issuer Default Rating (IDR) and its senior unsecured rating at
'BB' respectively.
Winsway warned on July 17, 2012, that the company will record a
loss for H112, mainly due to lower coking coal prices on
weakening demand from steel mills and coke plants under sluggish
economic conditions. The company has adopted a strategy of
lowering inventory levels to improve its cash balance and to fend
off difficult market conditions. Winsway's financing costs for
H112 are also higher, albeit one-off, because of its Grand Cache
Coal acquisition which concluded in March 2012.
Fitch views that Winsway's destocking, while increasing cash at
hand, could hurt profitability in a declining price market as a
result of the depletion of higher-cost inventory. Further, the
agency does not expect Winsway's current operation to be flexible
enough to fully defend itself from a sluggish steel industry.
Fitch expects Winsway's profitability and cash generation
capability will be affected if coking coal demand does not
recover and put a floor under prices.
The ratings may be downgraded if sluggish coking coal demand
continues to cause earnings volatility and to impinge on its cash
generation capability on a sustained basis. The Outlook may be
revised back to Stable if the company is able to manage the
industry downturn and hold up its profitability in spite of a
difficult operating environment.
* CHINA: Moody's Sees Potential Rating Uplift for Local SOEs
------------------------------------------------------------
Moody's Investors Service says that the ratings uplift for
China's local state-owned enterprises (SOEs) will depend on the
level of extraordinary government support the local SOEs are
likely to receive.
"China's local SOEs enjoy benefits, such as ongoing operational
support from local governments as well as better access to bank
financing and domestic capital markets, that help enhance their
credit quality," says Ping Luo, a Moody's Vice President and
Senior Analyst.
Luo was speaking at the release of a new report titled,
"Frequently Asked Questions on Chinese Local Government SOEs,"
which she co-authored.
The report addresses investors' queries about Moody's approach to
rating China's local SOEs, as an increasing number of these
entities are issuing offshore bonds.
"We will consider a rating uplift for a local SOE if we conclude
that the relevant local government has the willingness and the
ability to provide extraordinary support," Luo adds.
An important driver for the government's willingness to provide
support is the extent to which some industries are important to
their local economies. Therefore, the probability of
extraordinary government support for strategically important
local SOEs in times of stress is higher.
"However, rating uplift for local SOEs, if any, will be
considered on a case-by-case basis since the local governments
differ in terms of their ability to provide support, given the
varying strengths of their economies and finances and the often
complicated ownership structures of the SOEs," says Ivan Chung, a
Moody's Vice President and Senior Analyst, also a co-author of
the report.
Moody's applies its government-rated issuers (GRI) methodology in
rating both central and local SOEs in China. The ratings of
central SOEs are likely to enjoy a higher degree of uplift than
local SOEs because the central government has a greater ability
-- when compared to local governments -- to provide support.
* Fitch Affirms LTFC IDR of China's Tier 2 Commercial Banks
-----------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Foreign-Currency Issuer
Default Ratings (IDRs) of 11 of China's Tier 2 commercial banks
with Stable Outlooks. The IDRs are at the banks' Support Rating
Floors, reflecting Fitch's continued expectation that central
government support would be forthcoming in the event of stress,
albeit to varying degrees.
The Viability Ratings (VRs) of all 11 banks were affirmed, but
the recent slowdown in economic growth following rapid balance
sheet expansion, combined with greater pressure on funding and
liquidity, means that the VRs of many banks may face downward
pressure in the future.
Three of the 11 banks -- China Merchants Bank (CMB), China CITIC
Bank (CITIC), and China Everbright Bank (CEB) -- possess Support
Ratings of '2' and Support Rating Floors of 'BBB', indicating
a strong likelihood of state support. This is based on a
combination of factors such as size and domestic significance
(CMB and CITIC), ownership by fully state-owned conglomerates
(all three), direct central government ownership (CEB), and a
history of past government support (CEB).
The remaining eight banks possess Support Ratings of '3' and
Support Rating Floors of 'BB+', indicating a moderate likelihood
of state support. Banks in this group are either smaller in size
-- deposit market shares are less than 1% each -- or have no
direct central government ownership. Half of the banks have
local governments as their largest shareholders. However, in a
stress scenario, Fitch believes that the ability of local
governments to support financial institutions on a timely basis
would be limited, and support would effectively flow from the
central government. This is based on local governments' high
dependence on central government transfers just to break even,
even under non-stressed conditions.
The VRs of the 11 banks range from 'bb-' to 'b', reflecting to
varying degrees weak intrinsic financial strength. Rapid balance
sheet growth since the global crisis is a concern, particularly
given the increasingly challenging domestic operating
environment. Growth of credit exposure averaged 115% from end-
2008 to end-2011, compared with nominal GDP growth of just 47%.
This disparity raises questions about the ability of Chinese
borrowers to repay this large increase in leverage. For this
reason, asset quality is expected to come under increasing
pressure in 2012-2013, although ongoing forbearance means this
may not manifest in non-performing loan (NPL) ratios until well
into deterioration.
On several parameters, China's Tier 2 banks are weaker than their
large, state-owned peers, resulting in generally lower VRs. In
2011, Tier 2 banks posted higher credit exposure than state banks
(70% of total assets versus 59%), had larger off-balance-sheet
items (28% of total assets versus 17%), and had less liquid
interbank and investment securities portfolios. Funding and
liquidity recently have been under pressure across the sector, as
deposit growth slows and liquid assets thin further. Were the
sector to encounter more serious strains in funding, liquidity,
or asset quality, Tier 2 banks could suffer from a flight of
depositors to the safety of large state banks, given the latter's
strong deposit franchises and high expectations of government
support.
Asset quality indicators of Tier 2 banks generally appear
stronger than that of state-owned banks, reflecting the latter's
greater policy lending function. However, Fitch notes that the
recognition of loan impairment can be a prolonged process in
China, resulting in significant understatement of NPLs. Both
Tier 2 banks and state banks have sufficient loan loss reserves
and capital to shoulder a rise in NPL ratios to the low-to-mid
single digits, but beyond this support would likely be necessary.
The agency expects this support to be coordinated by the state to
varying degrees of certainty for each bank.
A key risk over the short-term is Chinese banks' rapidly growing
wealth management offerings, in which Tier 2 banks are very
active. The amount of outstanding wealth management products in
the banking system reached approximately CNY10trn in H112.
Although this represents a relatively low 11% of total non-fiscal
CNY deposits, an estimated half of all new deposits are raised
through these products. Poor matching of the maturities of the
liabilities with the assets underlying the products means banks
often do not have money coming in on the products to repay
investors upon maturity. Instead, banks often rely on new
issuance or product rollovers to repay investors. Given how
important this activity is to deposit growth, any disruption
could further weaken Chinese banks' funding and liquidity.
Tier 2 banks' Long-Term Foreign-Currency IDRs are driven solely
by state support, and any changes will be tied to shifts in the
perceived willingness and ability of the Chinese sovereign to
provide support to the banks, taking into account also relative
importance and ownership. The government has substantial
resources to address a deterioration in the banking sector.
Deposit reserves of 20% of non-fiscal deposits at end-H112 could
be released in the event of banking system liquidity strains.
Meanwhile, the government has demonstrated its willingness in the
past to draw on part of its foreign exchange reserves (USD3.2trn
in H112) to recapitalise banks. Central government debt is also
quite low at 21% of GDP in 2011.
That said, the rapid growth of the banking system, combined with
the burgeoning amount of intermediation taking place through
nonbank financial institutions, means that potential claims on
the state's resources are increasing, which could begin to erode
its ability to support less systemically important banks.
Downgrades of Tier 2 banks' Viability Ratings could be triggered
by further deterioration in the operating environment, if asset
quality deterioration begins to threaten solvency, or if funding
and liquidity strains become more binding. An appreciable rise
in a bank's wealth management offerings relative to its deposit
base, or any major disruptions in this business, also could lead
to VR downgrades.
The current ratings of China's Tier 2 banks are as follows:
CMB:
-- Long-Term Foreign-Currency IDR affirmed at 'BBB'; Stable
Outlook
-- Support Rating affirmed at '2'
-- Support Rating Floor affirmed at 'BBB'
-- Viability Rating affirmed at 'bb-'
CITIC:
-- Long-Term Foreign-Currency IDR affirmed at 'BBB'; Stable
Outlook
-- Support Rating affirmed at '2'
-- Support Rating Floor affirmed at 'BBB'
-- Viability Rating affirmed at 'bb-'
CEB:
-- Long-Term Foreign-Currency IDR affirmed at 'BBB'; Stable
Outlook
-- Support Rating affirmed at '2'
-- Support Rating Floor affirmed at 'BBB'
-- Viability Rating affirmed at 'b+'
Bank of Shanghai (BOS):
-- Long-Term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Short-Term IDR affirmed at 'B'
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating affirmed at 'bb-'
Shanghai Pudong Development Bank (SPDB):
-- Long-Term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating affirmed at 'bb-'
Industrial Bank (IND):
-- Long-Term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating affirmed at 'b+'
China Minsheng Banking Corporation (MIN):
-- Long-Term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating affirmed at 'bb-'
Hua Xia Bank (HXB):
-- Long-Term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating affirmed at 'b'
Shenzhen Development Bank (SZDB):
-- Long-Term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating affirmed at 'b+'
China Guangfa Bank (CGB):
-- Long-Term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating affirmed at 'b+'
Bank of Beijing (BOB):
-- Long-Term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating affirmed at 'bb-'
================
H O N G K O N G
================
FIRST REGENT: Court to Hear Wind-Up Petition on Aug. 8
------------------------------------------------------
A petition to wind up the operations of First Regent Limited will
be heard before the High Court of Hong Kong on Aug. 8, 2012, at
9:30 a.m.
Mark William Corrado filed the petition against the company on
July 1, 2012.
KITEX LIMITED: Court to Hear Wind-Up Petition on Aug. 22
--------------------------------------------------------
A petition to wind up the operations of Kitex Limited will be
heard before the High Court of Hong Kong on Aug. 22, 2012, at
9:30 a.m.
Lee Po Kin Paul filed the petition against the company on
July 18, 2012.
NAM TAI: Creditors and Contributories to Meet on Aug. 16
--------------------------------------------------------
Creditors and contributories of Nam Tai Trading Company Limited
will hold their first meetings on Aug. 16, 2012, at 10:00 a.m.,
and 10:30 a.m., respectively at the Official Receiver's Office,
10th Floor, Queensway Government Offices, 66 Queensway, in
Hong Kong.
At the meeting, Teresa S W Wong, the official & provisional
liquidator, will give a report on the company's wind-up
proceedings and property disposal.
PETS CENTRAL: First Meeting Slated for Aug. 9
---------------------------------------------
Creditors of Pets Central (HK) Limited will hold their first
meeting on Aug. 9, 2012, at 3:30 p.m., at Room 1909-10, Nan Fung
Tower, 173 Des Voeux Road Central, in Hong Kong.
At the meeting, Lau Siu Hung, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
RONNY INDUSTRIES: Wong and Arab Appointed as Liquidators
--------------------------------------------------------
Wong Tak Man Stephen and Osman Mohammed Arab on June 18, 2012,
were appointed as liquidators of Ronny Industries Limited.
The liquidators may be reached at:
Wong Tak Man Stephen
Osman Mohammed Arab
29/F, Caroline Centre
Lee Gardens Two 28
Yun Ping Road
Hong Kong
SELECT FOOD: Pang Wai Kui Steps Down as Liquidator
--------------------------------------------------
Pang Wai Kui stepped down as liquidator of Select Food Limited on
July 5, 2012.
SIMON HARRISON: Court to Hear Wind-Up Petition on Aug. 22
---------------------------------------------------------
A petition to wind up the operations of Simon Harrison (HK)
Limited will be heard before the High Court of Hong Kong on
Aug. 22, 2012, at 9:30 a.m.
The Hong Kong Delivery Company Limited filed the petition against
the company on June 19, 2012.
The Petitioner's solicitors are:
Paynes
Units 1-3, 13/F
135 Bonham Strand Trade
Centre, 135 Bonham Strand
Hong Kong
SOLARI COMPUTER: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Hong Kong entered an order on July 11, 2012, to
wind up the operations of Solari Computer Engineering Limited.
The official receiver is Teresa S W Wong.
SPEYMILL PROPERTY: Members' Final Meeting Set for Aug. 13
---------------------------------------------------------
Members of Speymill Property Group (Far East) Limited will hold
their final meeting on Aug. 13, 2012, at 10:00 a.m., at 8th
Floor, Gloucester Tower, The Landmark, 15 Queen's Road Central,
in Hong Kong.
At the meeting, Iain Ferguson Bruce, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
WAH YING: Creditors Get 30.67% Recovery on Claims
-------------------------------------------------
Wah Ying Electronic Company Limited, which is in liquidation,
will declare the first and final dividend to its creditors on
Aug. 13, 2012.
The company will pay 30.67% for ordinary claims.
The company's liquidator is:
Lau Wu Kwai King Lauren
Messrs. KLC Kennic Lui & Co
5th Floor, Ho Lee Commercial Building
38-44 D'Aguilar Street
Central, Hong Kong
WING KAI: Creditors and Contributories to Meet on Aug. 3
--------------------------------------------------------
Creditors and contributories of Wing Kai Investment Company
Limited will hold their first meetings on Aug. 3, 2012, at
10:00 a.m., and 11:00 a.m., respectively at the Official
Receiver's Office, 10th Floor, Queensway Government Offices, 66
Queensway, in Hong Kong.
At the meeting, Teresa S W Wong, the official & provisional
liquidator, will give a report on the company's wind-up
proceedings and property disposal.
WING KEY: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on July 11, 2012, to
wind up the operations of Wing Key Construction Engineering
Limited.
The official receiver is Teresa S W Wong.
WORLD EXPRESS: Members' Final Meeting Set for Aug. 13
-----------------------------------------------------
Members of World Express Limited will hold their final general
meeting on Aug. 13, 2012, at 3:00 p.m., at 10/F, Allied Kajima
Building, 138 Gloucester Road, Wanchai, in Hong Kong.
At the meeting, Lam Ying Sui, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
YILI COMPANY: Members' Final General Meeting Set for Aug. 16
------------------------------------------------------------
Members of Yili Company Limited will hold their final general
meeting on Aug. 16, 2012, at 10:00 a.m., at 39/F China Resources
Building, 26 Harbour Road, Wanchai, in Hong Kong.
At the meeting, Heng Poi Cher, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
=========
I N D I A
=========
ABCO Steel: ICRA Rates INR11cr LT Loan at '[ICRA]BB-'
-----------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA] BB-' to the INR11
crore fund-based limits of ABCO Steel International Pvt. Ltd. The
outlook on the long-term rating is 'stable'. ICRA has also
assigned an '[ICRA] A4' rating to the INR1 crore non-fund-based
facilities of the company.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Long Term Fund Based 11 [ICRA]BB- (Stable)
Limits
Short Term Non-Fund 1 [ICRA] A4
Based Limits
The assigned ratings factor in the long experience of the
promoters in the steel trading business, locational advantages
arising out of being in close proximity to its suppliers and
ASIPL's strong supplier base which includes reputed steel
manufacturers. The ratings also take into account the low gearing
arising out of the low working capital intensity which in turn
has resulted in satisfactory coverage indicators. The rating is
however constrained by ASIPL's moderate scale of operations which
coupled with the low value additive and highly competitive nature
of the steel trading business has resulted in thin profitability
margins and ICRA does not expect this to change in the medium
term. ICRA also notes that increase in inventory and debtor days
are likely to result in some deterioration in the company's
capitalization, coverage and liquidity profile going forward.
ASIPL is a steel trading company headed by Mr. Mohammed Aslam
Kazi who is the Chairman & Managing Director. ASIPL is primarily
engaged in the trading of construction and structural steel
products with structural steel sales contributing about 80% to
the total sales of the company. ASIPL has been serving the steel
product needs and requirements of various industrial, commercial,
civil constructions, infrastructural & engineering projects
facilitated and are backed by an experienced team. ASIPL is an
ISO 9001 certified company and all its products meet IS2062 grade
A&B Standards.
Recent Results:
As per the audited financials, ASIPL registered an operating
income of INR69.07 crore and Net profit of INR0.62 crore for the
FY 11 compared to an operating income of INR54.09 crore and Net
profit of INR0.34 crore for the FY 10
BIRLA ERICSSON: ICRA Revises Rating on INR27.9cr Loans to 'BB-'
---------------------------------------------------------------
ICRA has revised the long term rating to '[ICRA]BB-' from
'[ICRA]BB' for INR27.90 crore (revised from INR33.00 crore) fund
based and non fund based bank facilities of Birla Ericsson
Optical Limited. The outlook for the rating is Stable. ICRA has
reaffirmed the short term rating at '[ICRA]A4' for the INR30.10
crore (revised from INR25 crore) non fund based bank facilities
of BEOL.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Fund Based/ Non-Fund 25.00 [ICRA]BB- (Stable)
Based Limits revised from
[ICRA]BB (Stable)
Unallocated 2.90 [ICRA]BB- (Stable)
revised from
[ICRA]BB (Stable)
Non-Fund Based Limits 30.10 [ICRA]A4 reaffirmed
The rating action takes into account the relatively lower scale
of operations of the company in its core business of telecom
cables in the last two years, which has resulted in losses at the
operating level in FY 2011 and at net level in the last two
years. Although there has been some improvement in operating
income and operating profitability in FY 2012, the scale of
operations continues to remain inadequate to cover the fixed
costs. Given the relatively weak current order book and lack of
visibility on fresh orders from its key customer namely BSNL,
ICRA expects revenues and profits to remain weak in the near
term. With the company reporting losses, the coverage and return
indicators continue to remain inadequate, however the debt levels
of the company remain moderate and the company has adequate
liquidity in terms of availability of working capital limits. The
ratings are also supported by BEOL's long track record of
operations in the cables industry, its established brand
supported by technical collaboration with Ericsson, Sweden as
well as strengths arising out of it being a part of the MP Birla
group of companies. Going forward, the financial profile is
expected to remain under stress led by weak order prospects,
competition in the industry and vulnerability to fluctuation in
raw material prices.
Birla Ericsson Optical Limited (BEOL) was incorporated in the
year 1992 by Universal Cables Limited and Vindhya Telelinks
Limited under the M.P. Birla Group of Industries for
manufacturing of optical fiber cables and copper telecom cables.
Over the years, the company has increased its focus on the
manufacture of optical fibre cables on account of fall in demand
for jelly filled telecom cables. The company has also launched
various cables in the Specialty cables segment used in medical
equipment, computers and local area networks, cable TV network or
any other type as per customized specification in recent years.
Further, the company has increased presence in foreign markets in
the South Asia and Middle East regions.
The operating income of the company increased from INR68 crore in
FY 2011 to INR75.1 crore in FY 2012 registering a growth of
10.4%. However on account of low scale of operations, the company
has reported a net loss for the second consecutive year. Net loss
was at INR4.82 crore in FY 2012 as against a net loss of INR4.38
crore in FY 2011.
BUDGE BUDGE: Inadequate Info Cues Fitch to Withdraw Ratings
-----------------------------------------------------------
Fitch Ratings has withdrawn India-based Budge Budge Refineries
Limited's National Long-Term rating of 'Fitch BB-(ind)nm'.
The ratings have been withdrawn due to lack of adequate
information, and Fitch will no longer provide ratings or
analytical coverage of BBRL.
Fitch has also withdrawn BBRL's bank loan ratings as follows:
-- INR91.2m long-term debt programme: National Long-Term 'Fitch
BB-(ind)nm'; rating withdrawn
-- INR50m fund-based limits: National Long-Term 'Fitch BB-
(ind)nm'; rating withdrawn
-- INR803m non-fund-based limits: National Short-Term
'Fitch A4+ (ind)nm'; rating withdrawn
CAPITAL DISTRIBUTOR: Fitch Withdraws 'B+' National LT Rating
------------------------------------------------------------
Fitch Ratings has withdrawn the National Long-Term 'Fitch
B+(ind)nm' rating on India-based Capital Distributors (CD) and
its INR130m fund-based limits.
The rating has been withdrawn due to lack of adequate
information, and Fitch will no longer provide ratings or
analytical coverage of CD.
FLEMING LAB: Inadequate Info Cues Fitch to Migrate Rating
---------------------------------------------------------
Fitch Ratings has migrated India-based Fleming Laboratories
Limited's 'Fitch BB-(ind)' National Long-Term rating with a
Stable Outlook to the non-monitored category.
The ratings have been migrated to the non-monitored category due
to lack of adequate information, and Fitch will no longer provide
ratings or analytical coverage of Fleming. The ratings will
remain in the non-monitored category for a period of six months
and be withdrawn at the end of that period. However, in the
event the issuer starts furnishing information during this six-
month period, the ratings could be reinstated and will be
communicated through a rating action commentary.
Fitch has also migrated Fleming's bank loan ratings to the non-
monitored category as follows:
-- INR150m fund-based working capital limits: migrated to
National Long-Term 'Fitch BB-(ind)nm' from 'Fitch BB-(ind)'
and National Short-Term 'Fitch A4+(ind)nm' from 'Fitch A4+
(ind)'
-- INR40m non-fund-based working capital limits: migrated to
National Short-Term 'Fitch A4+(ind)nm' from 'Fitch A4+(ind)'
-- INR130.6m term loans: migrated to National Long-Term 'Fitch
BB-(ind)nm' from 'Fitch BB-(ind)'
GENERAL NICE: Delay in Loan Payment Cues ICRA Junk Ratings
----------------------------------------------------------
ICRA has revised the long-term rating outstanding on the INR2.50
crore fund based (sub-limit) facility of General Nice Mineral
Resources (India) Private Limited to '[ICRA]D' from '[ICRA]BB+'.
ICRA has also revised the short-term rating outstanding on the
INR25.00 crore fund based facility (revised from INR60.00 crore)
and the INR15.00 crore fund based (sub-limit) facility of GNMRIPL
to '[ICRA]D' from '[ICRA]A4+'. ICRA has withdrawn the short-term
rating of '[ICRA]A4+' assigned to the INR2.00 crore non-fund
based facility and the INR25.00 crore non-fund based (sub-limit)
facility of GNMRIPL, since these facilities have been cancelled
by the bank.
Amount
Facilities (INR Cr) Ratings
---------- --------- -------
Long-term fund based (2.50) Revised to [ICRA]D
from [ICRA]BB+ (Stable)
Short-term fund based 25.00 Revised to [ICRA]D
Facility from [ICRA]A4+
Short-term fund based (15.00) Revised to [ICRA]D from
(sub-limit) facility [ICRA]A4+
Short-term non-fund 2.00 [ICRA]A4+ withdrawn
based facility
Short-term non-fund based (25.00) [ICRA]A4+ withdrawn
(sub-limit) facility
The revisions in ratings reflect delays in debt servicing by
GNMRIPL in the recent past. The Company's operations were
adversely impacted because of restricted mining of iron ore in
its key sourcing states, leading to lower availability of
material.
GNMRIPL, incorporated in August 2007, is primarily engaged in
iron ore trading. The Company is a subsidiary of General Nice
Resources (Hong Kong) Limited, which is the investment arm of the
General Nice Group, Hong Kong. General Nice Group has interests
in resource development, trading and logistics. GNRL holds 96.48
per cent stake in GNMRIPL.
HALCYON LIFE: ICRA Cuts Rating on INR105cr Loan to '[ICRA] BB'
--------------------------------------------------------------
ICRA has downgraded the long-term rating outstanding on the
various bank facilities of Halcyon Life Sciences Private Limited
to '[ICRA]BB' from '[ICRA]BB+'. The outlook on the long-term
rating has also been revised to 'Negative' from 'Stable'.
Amount
Facilities (INR Cr) Ratings
---------- --------- -------
Cash Credit facilities 105.0 [ICRA]BB (Negative)
The downward revision in ratings takes into account the weakness
in financial performance as well as liquidity position of its
group company and guarantor, Ind Swift Laboratories Limited
(rated [ICRA] BB(Negative)/ [ICRA] A4).
Halcyon Life Sciences Pvt. Limited (Erstwhile Kiran Flour Mill
Industries Limited) is engaged in the manufacturing of De
Metholized Oil (DMO) and Menthol Flakes, raw materials used in
the manufacture of menthol crystals. The menthol crystals are
used in various applications in different industries like
peppermint, toothpaste, chewing tobacco, perfumery among others.
HLS is 100% owned by the promoter families of Ind Swift
Laboratories Limited (ISLL) and majority of its revenues are
generated from sales to group companies. The company largely
operates as a trading entity responsible for buying menthol oil
and selling it across after marginal processing. HLS has its
manufacturing facility in Jammu and avails of excise duty
benefits for its production.
KAUSTHUBHA PROJECT: ICRA Withdraws Junk Bank Limit Rating
---------------------------------------------------------
ICRA has withdrawn the '[ICRA] D' rating assigned to INR14.65
Crore bank limits of Kausthubha Project Private Limited at the
request of the company as the company has fully redeemed the
instrument. There is no amount outstanding against the rated
instrument.
KRISHNA TRADERS: ICRA Reaffirms 'BB+' Rating on INR2cr Loan
-----------------------------------------------------------
ICRA has reaffirmed the '[ICRA]BB+' rating to the INR2 crore fund
based bank limits of Krishna Traders. The outlook on the long
term rating is stable. ICRA has also reaffirmed the '[ICRA]A4+'
rating to the INR40 crore fund based and INR12 crore non fund
based bank limits of KT.
Amount
Facilities (INR Cr) Ratings
---------- --------- -------
Fund Based Limits- 2.00 [ICRA]BB+ (Stable)
Cash Credit reaffirmed
Fund Based Limits 40.00 [ICRA] A4+ reaffirmed
Non Fund Based Limits 12.00 [ICRA] A4+ reaffirmed
The reaffirmation of the ratings continues to factor in KT's wide
range of products that reduce product concentration risk, its low
counterparty risk as a majority of the firm's exports are backed
by letters of credit (LC), KT's established client base, which
helps the firm generate repeat orders and its significant amount
of fixed deposits that supports the liquidity position. The
ratings also take into account the weak financial profile of the
firm as reflected by its weak debt protection metrics and its
thin operating profitability which is inherent in KT's trading
business. ICRA notes that a significant proportion of KT's
profits are derived from the interest income on the fixed
deposits that reflects thin margins registered from the core
operations of the firm. The ratings also factor in the high
dependence of KT's financial performance on Government of India's
export policies and incentives, which expose it to substantial
regulatory risks.
Krishna Traders was founded by the Late Netai Mohan Saha in 1953
as a proprietorship firm which got converted into a partnership
firm in 1996. Currently KT is involved in the trading of food
items, spices, paper products, engineering goods and machinery,
industrial chemicals and iron ore. The firm exports mainly to
Bangladesh and China with domestic sales accounting for a small
portion of revenue.
Recent Results
Asper provisional results, KT registered a profit after tax (PAT)
of INR0.96 crore on the back of net sales of INR213 crore in
2011-12. In 2010-11, the firm registered a profit after tax of
INR0.68 crore on the back of net sales of INR152 crore.
MAHARASHTRA SHETKARI: ICRA Reaffirms 'BB-' INR150cr Loan Rating
---------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]BB-' rating with stable outlook to
the INR139.50 crore term loan facilities and INR10.50 crore fund
based facilities (Cash Credit) of Maharashtra Shetkari Sugar
Limited.
Amount
Facilities (INR Cr) Ratings
---------- --------- -------
Term loans 139.50 [ICRA]BB- (Stable) reaffirmed
Cash Credit 10.50 [ICRA]BB- (Stable) reaffirmed
The rating continues to draw comfort from experience of the
promoters in the sugar industry. Established relations with local
farmers along with cane development initiatives are expected to
reduce supply side risk for the company to a certain extent as
the company has already entered into agreement with more than
8000 farmers in the area. The rating also takes into
consideration the fact that the company has obtained the required
licences and approvals as well as the term loans and the working
capital facilities have been tied up. ICRA also notes that the
sugar plant in forward integrated with a cogeneration unit and a
distillery which is expected to improve project viability.
The rating however remains constrained by leveraged funding plan
of the project. ICRA also notes that the company faced execution
problems for the sugar and co-gen units and the project
experienced delays of -4 months. MSSL was not able to take
advantage of the crushing season SY 11-12 as planned earlier due
to the overruns. Also, the distillery unit is currently being set
up and timely completion of the same remains essential. The sugar
industry also remains vulnerable to regulatory changes in pricing
of sugar and sugarcane, and export duty on sugar. The industry
also remains susceptible to agro-climatic risks and cyclical
trends in sugar industry. MSSL will also face challenge of
competition from nearby sugar companies; however the company is
planning to mitigate the risk by issuing preference shares to
farmers in the area as well as by undertaking cane development
activities. The company will also be in a better position to
offer attractive price to farmers due to fully forward integrated
plant.
Incorporated in 2007, MSSL is setting up a 3500 TCD sugar plant
forward fully integrated with co-generation unit of 20 MW and
distillery unit of 30 KLPD. The plant is located in Parbhani
District in Maharashtra. The commercial operations were expected
to start in Nov 2011 however there were some delays in project
implementation. The company eventually completed test production
of the sugar plant in Mar 2012 and the commercial production of
the sugar plant along with the co-gen unit and the distillery is
expected to start in Oct 2012.
MOKALBARI KANOI: Inadequate Info Cues Fitch to Withdraw Ratings
---------------------------------------------------------------
Fitch Ratings has withdrawn India-based Mokalbari Kanoi Tea
Estate Pvt. Ltd.'s National Long-Term rating of 'Fitch
B+(ind)nm'.
The ratings have been withdrawn due to lack of adequate
information, and Fitch will no longer provide ratings or
analytical coverage of MKTL.
Fitch has also withdrawn MKTL's bank loan ratings as follows:
-- INR105m long-term loans: National Long-Term 'Fitch B+
(ind)nm'; rating withdrawn
-- INR90m fund-based limits: National Long-Term 'Fitch B+
(ind)nm'; rating withdrawn
-- INR0.6m non-fund based limits: National Short-Term 'Fitch
A4(ind)nm'; rating withdrawn
NAVYUG ENT: Inadequate Info Cues Fitch to Withdraw Ratings
----------------------------------------------------------
Fitch Ratings has withdrawn India-based Navyug Enterprises Pvt.
Ltd.'s National Long-Term rating of 'Fitch B-(ind)nm'.
The ratings have been withdrawn due to lack of adequate
information, and Fitch will no longer provide ratings or
analytical coverage of NEPL.
Fitch has also withdrawn NEPL's bank loan ratings as follows:
-- INR163.6m long-term loans: National Long-Term 'Fitch B-
(ind)nm'; rating withdrawn
-- INR96.5m short-term facilities: National Short-Term 'Fitch
A4(ind)nm'; rating withdrawn
NEEPAZ V: Fitch Assigns 'B' National Long-Term Rating
-----------------------------------------------------
Fitch Ratings has withdrawn India-based Neepaz V Forge (India)
Limited's National Long-Term rating of 'Fitch B(ind)nm'.
The ratings have been withdrawn due to lack of adequate
information, and Fitch will no longer provide ratings or
analytical coverage of NVFL.
Fitch migrated NVFL to the non-monitored category on 8 November
2011.
Fitch has also withdrawn NVFL's bank loan ratings as follows:
-- INR1.1bn long-term debt programme: National Long-Term 'Fitch
B(ind)nm'; rating withdrawn
-- INR240m fund-based limits: National Long-Term 'Fitch
B(ind)nm'; rating withdrawn
-- INR173.6m non-fund-based limits: National Short-Term 'Fitch
A4(ind)nm'; rating withdrawn
PADMAVATI PULP: ICRA Places 'B+' Rating on INR14.86cr Loans
-----------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' to the term
loans and fund based limits of Padmavati Pulp & Paper Mills
aggregating to INR14.86 crore.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Fund Based Limits 6.86 [ICRA]B+ (Assigned)
(Term Loans)
Fund Based Limits 8.00 [ICRA]B+ (Assigned)
(Cash Credit)
The rating is constrained by the small size of operations of the
firm with lack of product diversification, and its significantly
high financial risk profile as evident from low margins and
highly leveraged capital structure with gearing at 5.08 times (as
on 31st March, 2012). While the operating profitability remains
exposed to the volatility in waste paper prices as well as
intense competitive pressures, the firm's ability to pass on
increase in input prices remains critical from credit
perspective. Also, the firm being a partnership, it remains
exposed to risk of any substantial withdrawals from capital
account which would impact its net worth and thereby, the gearing
level. The rating however draws comfort from the long track
record of the firm in the kraft paper business, the steady plant
capacity utilisation levels and its established agent network in
the Western region.
Padmavati Pulp and Paper Mills is a partnership firm established
by Mr. Jayantilal Dedhia and is engaged in manufacturing of kraft
paper which is used for making corrugated boxes. The firm was
incorporated in August 2006 and commenced commercial operations
in October 2007. The firm's manufacturing facility is located at
Ambernath, Maharashtra and has an annual capacity to produce
25,000 MT of kraft paper. The firm mainly manufactures lower BF
(Burst Factor) kraft paper in the range of 14BF to 18BF.
During FY 2012, the firm reported Profit After Tax (PAT) of
INR0.77 crore on an operating income of INR49.14 crore
(provisional).
POWER SPINING: Inadequate Info Cues Fitch to Withdraw Ratings
-------------------------------------------------------------
Fitch Ratings has withdrawn India-based Power Spinning Mills'
'Fitch B+(ind)nm' National Long-Term rating.
The ratings have been withdrawn due to lack of adequate
information, and Fitch will no longer provide ratings or
analytical coverage of PSM.
Fitch has also withdrawn the ratings on PSM's bank loans as
follows:
-- INR49.16m long-term loans: National Long-Term 'Fitch B+
(ind)nm'; rating withdrawn
-- INR30m fund-based working capital limits: National Long-Term
'Fitch B+(ind)nm' and National Short-Term 'Fitch A4(ind)nm';
ratings withdrawn
-- INR20m non-fund-based working capital limits: National Long-
Term 'Fitch B+(ind)nm' and National Short-Term 'Fitch
A4(ind)nm'; ratings withdrawn
RABIRUM VINIMAY: Inadequate Info Cues Fitch to Withdraw Ratings
---------------------------------------------------------------
Fitch Ratings has withdrawn the National Long-Term 'Fitch BB-
(ind)nm' rating on India-based Rabirun Vinimay Pvt. Ltd. and its
INR2,000m long-term loans.
The rating has been withdrawn due to lack of adequate
information, and Fitch will no longer provide ratings or
analytical coverage of RVPL.
RAJ RAYON: ICRA Assigns 'BB+' Rating on INR351cr Loans
------------------------------------------------------
ICRA has assigned the long-term rating of '[ICRA]BB+' to the
INR228.45 crore long-term loans and INR122.55 crore long-term,
fund based facilities of Raj Rayon Industries Limited. The
outlook on the long-term rating is stable. ICRA has also assigned
the short-term rating of '[ICRA]A4+' to the INR85.35 crore,
short-term, fund based facilities and INR59.00 crore, short-term
non-fund based facilities of the company. The short-term, fund
based facilities are sub-limit of long-term, fund based
facilities.
Amount
Facilities (INR Cr) Ratings
---------- --------- -------
Long-term loans 228.45 [ICRA]BB+ (Stable)
assigned
Long-term, fund 122.55 [ICRA]BB+ (Stable)
based facilities assigned
Short-term, fund 85.35 [ICRA]A4+ assigned
based facilities
Short-term, non-fund 59.00 [ICRA]A4+ assigned
based facilities
The ratings favourably factor in the established track record of
the company, locational advantages which provide the company cost
competitiveness, and favourable demand scenario for manmade
fibres. The ratings; however, remain constrained by stretched
capital structure, relatively weak interest and debt service
indicators, and strong competitive pressures from existing large-
scale, integrated manufacturers. The company is proposing to
further backward integrate the yarn drawing process by setting-up
of a CP plant which will aid improvement in competitiveness of
the company over the long term; however, will also further
leverage the capital structure. Additionally, several competitors
are currently expanding their capacities which will be
commissioned in FY 2013 - FY 2014 which may lead to excess supply
scenario and affect absorption of added capacities.
Raj Rayon Industries Limited is a public listed company on BSE
and NSE bourses and was incorporated in August, 1993. Under the
leadership of Mr. Gourishankar Poodar, the company has
established itself as a moderate scale manufacturer of Polyester
Texturised Yarn (PTY), Partially Oriented Yarn (POY), Fully Drawn
Yarn (FDY), Texturized Yarn (TY), and Drawn Texturized Yarn
(DTY). The company has two manufacturing units located in
Silvassa spread over 80,000 sq. ft. of land. The company has 22
spinning lines with total manufacturing capacity of 46,891 TPA of
POY, 49,766 TPA of PTY, 17,999 TPA of FDY, 1,368 TPA of TY and
6,470 TPA of DTY.
The manufacturing facility has ISO 9001:2008 certification and
the company is a recognized Star Export House. The company is
currently in working on a project to set-up a continuous
polymerization (CP) facility which will be used as feed to 14 of
the existing 22 lines.
Recent Results
For the twelve months ending March 31, 2012, RRI reported profit
after tax (PAT) of INR3.8 crore on an operating income of
INR682.8 crore as compared to a PAT of INR4.1 crore on an
operating income of INR430.8 crore for the twelve months ending
March 31, 2011.
REPROSCA TECH: Inadequate Info Cues Fitch to Withdraw Ratings
-------------------------------------------------------------
Fitch Ratings has withdrawn India-based Reproscan Tech-Park's
National Long-Term rating of 'Fitch BB+(ind)nm'.
The rating has been withdrawn due to lack of adequate
information, and Fitch will no longer provide ratings or
analytical coverage of RTP.
UMRAO INSTITUTE: Inadequate Info Cues Fitch to Migrate Ratings
--------------------------------------------------------------
Fitch Ratings has migrated India-based Umrao Institute of Medical
Science & Research (The)'s 'Fitch B(ind)' National Long-Term
rating with a Stable Outlook to the non-monitored category.
The ratings have been migrated to the non-monitored category due
to lack of adequate information, and Fitch will no longer provide
ratings or analytical coverage of Umrao. The ratings will remain
in the non-monitored category for a period of six months and be
withdrawn at the end of that period. However, in the event the
issuer starts furnishing information during this six-month
period, the ratings could be reinstated and will be communicated
through a rating action commentary.
Fitch has also classified Umrao's following bank loan ratings as
non-monitored:
-- INR887.5m long-term bank loans: migrated to National Long-
Term 'Fitch B(ind)nm' from 'Fitch B(ind)'
-- INR43.5m fund-based limits: migrated to National Long-Term
'Fitch B(ind)nm' from 'Fitch B(ind)' and National Short-Term
'Fitch A4(ind)nm' from 'Fitch A4(ind)'
-- INR92m non-fund based limits: migrated to National Short-
Term 'Fitch A4(ind)nm' from 'Fitch A4(ind)'
VICKY REALTORS: Fitch Assigns Nat'l Long-Term Rating at 'BB+'
-------------------------------------------------------------
Fitch Ratings has assigned India's Vicky Realtors a National
Long-Term rating of 'Fitch BB+(ind)'. The Outlook is Stable.
The agency has also assigned VR's INR100.7m term loans a 'Fitch
BB+(ind)' rating.
The ratings are constrained by Fitch's view that VR's debt
service coverage ratio (DSCR) will decline in the near-term from
the current comfortable levels (FY12 (year end March): 1.44x), as
the company's lease agreement with Religare group entities
(comprising three tenants) is expiring in March 2013. The
ratings also reflect VR's small scale of operations with revenue
of INR25.6m (provisional) in FY12 (FY11: INR21.5m).
The ratings draw comfort from VR's strong locational advantage by
virtue of being located in Panjagutta, which is one of the
business hubs of Hyderabad. The ratings are also supported by
the strong credit profile of the company's tenants, namely SBI
Group and Religare Group.
WHAT COULD TRIGGER A RATING ACTION?
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- minimum DSCR below 1.05x on a sustained basis
-- occupancy levels below 100% for a period exceeding three
months in FY14
Positive: Future developments that may, individually or
collectively, lead to positive rating action include:
-- minimum DSCR above 1.2x on a sustained basis
-- occupancy levels at 100% in FY14
Established in 2005 as a partnership firm, Vicky Realtors is a
real estate developer, builder and promoter of real estate
ventures. In FY12, EBITDA was INR23.22m (INR19.1m), and EBITDA
margin was 90.8% (88.4%), net financial leverage of 3.84x (2.9x)
and interest coverage of 2.22x (2.53x).
=================
I N D O N E S I A
=================
BAKRIE TELECOM: Fitch Places 'CCC' IDR on Rating Watch Negative
---------------------------------------------------------------
Fitch Ratings has placed Indonesia-based PT Bakrie Telecom's
'CCC' Long-Term Foreign- and Local-Currency Issuer Default
Ratings on Rating Watch Negative (RWN). Its USD380m senior
unsecured bond -- rated 'CCC' -- has also been placed on Negative
Watch. The Recovery Rating on the bond is 'RR4'.
The RWN reflects heightened liquidity risk associated with the
repayment of its IDR650bn bond, due 4 September 2012, and ongoing
finance lease obligations. At end-March 2012, BTEL's liquid
assets comprised only IDR215bn unrestricted cash and equivalents
and the company has yet to secure sufficient committed additional
funds. At end-March 2012, BTEL breached the 5.0x EBITDA/interest
cover covenant on its IDR650bn bond. Fitch believes that new
equity is the most likely source of new funding. This is because
of BTEL's low rating headroom for new debt, particularly as its
weak financial performance is threatening the USD bond covenant
of 4.75x debt/last 12-month EBITDA.
In April 2012, BTEL announced a plan to raise IDR755bn through a
rights issue. However, the company has not been forthcoming with
further details. Its strategic tie-up in March 2012 with PT
Sampoerna Telekomunikasi Indonesia (STI), including the
acquisition of a 35% stake in STI through an equity swap, is
unlikely to materially improve BTEL's financial strength or
competitive position.
There is little headroom in the USD bond's 'RR4' Recovery Rating.
Fitch will undertake further recovery analysis over the next
month.
What Could Trigger a Rating Action?
Positive: The current Rating Watch is Negative. As a result,
Fitch's sensitivities do not anticipate developments with a
material likelihood, individually or collectively, of leading to
a rating upgrade as this would require both an improvement in
liquidity and trading position which, given current tough market
conditions, will be a challenge. The ratings may be stabilised
if the company secures new committed funding to meet upcoming
obligations.
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- a lack of new committed funding by end-July 2012 to meet the
IDR650 billion bond repayment
===============
M A L A Y S I A
===============
SBB CAPITAL: Moody's Assigns 'Ba2' Rating to Preference Shares
--------------------------------------------------------------
Moody's Investors Service has assigned an A3 rating to CIMB Bank
Berhad (CIMB)'s fixed rate USD-denominated senior unsecured
notes. The rating outlook is stable.
The other ratings on CIMB and its affiliates are:
C- for its bank financial strength rating, translates to a
standalone credit assessment of baa2
A3/P-1 on its long-term/short-term foreign-currency deposits and
issuer ratings
A3 on its long-term foreign-currency debt
(P)A3 on its long-term foreign-currency senior unsecured Medium
Term Note (MTN) programme
SBB Capital Corporation
Ba2(hyb) on its foreign-currency preference shares
The outlook on all ratings is stable.
Ratings Rationale
The USD-denominated notes will be issued pursuant to CIMB's USD1
billion Euro MTN programme for issuance of senior debt
instruments.
The notes represent direct, senior, unsubordinated and unsecured
obligations of CIMB. As such, they will rank pari passu with the
bank's existing and future unsecured and unsubordinated
obligations.
The rating was assigned on the condition that no material changes
are made to the draft terms and conditions of the notes reviewed
prior to the launch of the issuance.
The principal methodology used in this rating was Moody's
Consolidated Global Bank Rating Methodology published in June
2012.
CIMB Bank is headquartered in Kuala Lumpur, and reported total
assets of RM244 billion (approximately USD80 billion) at end-
March 2012.
====================
N E W Z E A L A N D
====================
MACLEAN COMPUTERS: Owes More Than NZ$3MM, Liquidator Says
---------------------------------------------------------
NBR Online reports that a first liquidator's report has revealed
that failed Maclean Computers owed more than NZ$3 million.
NBR Online relates that the company had a NZ$1.07 million
liability to preferential creditors, NZ$1.05 million to secured
creditors and NZ$930,000 to unsecured creditors. Assets of
NZ$1.13 million are listed, the report discloses.
The IT services company's 91 creditors include ANZ, IRD and a
roll call of tech firms that includes CallPlus, Cyclone, IBM, PB
Technologies, Renaissance and various Telecom divisions including
Gen-I, according to first liquidator's report cited by NBR
Online.
Earlier, receiver Damien Grant, of Waterstone Insolvency, told
NBR ONLINE that creditors were consulted over the sale of Maclean
Computers' assets to the new Maclean Technlogy.
NBR Online notes that creditors' approval was needed as a
condition of Section 386D of the Companies Act - the so-called
"Phoenix law" that allows for a liquidator to sell a business to
a related party to the old company under specific criteria.
According to NBR Online, the liquidator's report notes that
secured creditor IRD, owed around NZ$300,000, will likely make a
claim for outstanding GST and PAYE. It also anticipates
preferential claims from former employees for outstanding pay and
holiday pay.
At present, it is "unknown" whether unsecured creditors will
receive any payout, NBR Online adds.
Maclean Computing was an Auckland-based IT company. It had 50
staff and over 200 business customers. The company went into
liquidation on July 13, 2012, with Waterstone Insolvency
appointed as liquidators.
=================
S I N G A P O R E
=================
AGMAS TRADING: Court to Hear Wind-Up Petition July 27
-----------------------------------------------------
A petition to wind up the operations of Agmas Trading Pte Ltd
will be heard before the High Court of Singapore on July 27,
2012, at 10:00 a.m.
Marina Fursa filed the petition against the company on May 8,
2010.
The Petitioner's solicitors are:
WongPartnership LLP
63 Market Street #02-01
Singapore 048942
AI MIEN: Creditors' Proofs of Debt Due Aug. 21
----------------------------------------------
Creditors of Ai Mien Bar Holding Pte Ltd, which is in creditors'
voluntary liquidation, are required to file their proofs of debt
by Aug. 21, 2012, to be included in the company's dividend
distribution.
The company's liquidators are:
Leow Quek Shiong
Gary Loh Weng Fatt
c/o BDO LLP
21 Merchant Road
#05-01 Royal Merukh S.E.A. Building
Singapore 058267
CHANCERY INVESTMENTS: Creditors' Proofs of Debt Due Aug. 20
-----------------------------------------------------------
Creditors of Chancery Investments Private Limited, which is in
voluntary liquidation, are required to file their proofs of debt
by Aug. 20, 2012, to be included in the company's dividend
distribution.
The company's liquidator is:
Mohamed Ali Bin Kadir/Nancy Julia Zehnder
c/o IP Consultants Pte Ltd
60 Robinson Road
#11-01 Bank of East Asia Building
Singapore 068892
DUPONT PERFORMANCE: Creditors' Proofs of Debt Due Aug. 21
---------------------------------------------------------
Creditors of Dupont Performance Elastomers Pte Ltd, which is in
creditors' voluntary liquidation, are required to file their
proofs of debt by Aug. 21, 2012, to be included in the company's
dividend distribution.
The company's liquidators are:
Leow Quek Shiong
Gary Loh Weng Fatt
c/o BDO LLP
21 Merchant Road
#05-01 Royal Merukh S.E.A. Building
Singapore 058267
GUANGZHAO INDUSTRIAL: Creditors' First Meeting Set for July 30
--------------------------------------------------------------
Creditors of Guangzhao Industrial Forest Biotechnology Group
Limited which is under judicial management will hold their first
meeting on July 30, 2012, at 2:00 p.m., at the offices of FTI
Consulting, 8 Shenton Way, #17-02A, AXA Tower, in Singapore
068811.
At the meeting, Yit Chee Wah, the judicial manager, will give a
report on the company's wind-up proceedings and property
disposal.
FOK LOONG: Creditors' Proofs of Debt Due Aug. 21
------------------------------------------------
Creditors of Fok Loong International Pte Ltd, which is in
creditors' voluntary liquidation, are required to file their
proofs of debt by Aug. 21, 2012, to be included in the company's
dividend distribution.
The company's liquidator is:
Chian Yeow Hang
C/O Abacus Advisory Services Pte Ltd
6001 Beach Road
#09-09 Golden Mile Tower
Singapore 199589
HLK TECHNO: Court Enters Wind-Up Order
--------------------------------------
The High Court of Singapore entered an order on July 13, 2012, to
wind up the operations of HLK Techno Pacific Pte Ltd Limited.
Malayan Banking Berhad filed the petition against the company.
The company's liquidators are:
Andrew Grimmett
Lim Loo Khoon
care of M/s Deloitte & Touche LLP
6 Shenton Way #32-00
DBS Building Tower Two
Singapore 068809
================
S R I L A N K A
================
PEOPLE'S LEASING: Fitch Puts 'B+' Rating on IDR; Outlook Stable
---------------------------------------------------------------
Fitch Ratings has assigned Sri Lanka's People's Leasing Company
Plc Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDRs) of 'B+' with a Stable Outlook.
PLC's IDRs reflect the capacity and willingness of its state-
owned and systemically important parent -- People's Bank (PB,
'AA+(lka)'/Stable, a 75% stake) -- to extend extraordinary
support to the PLC group in an extreme situation. This in turn
is driven by PLC's strong association with the PB brand and its
strategic importance to PB.
PB has majority representation on PLC's board, including a common
Chairman and the bank's CEO who serves on an ex-officio basis. In
addition to 51 of its own branches, PLC operates 134 window
offices within PB's branch network of 341. PLC also continues to
make a sizeable contribution to PB's consolidated post-tax
profits (2011: 27%), and is the third-largest lending segment
within PB (2011: 14% of net advances). At end-March 2012, PLC's
aggregate retail funding within the PLC group, including deposits
of its subsidiary -- People's Finance PLC ('A(lka)'/Stable),
amounted to over LKR23bn (24% of PLC group assets).
PB's capacity to support PLC in turn is derived from the
financial capacity and propensity of the government of Sri Lanka
('BB-'/Stable), given the bank's increasing role in Sri Lanka's
post-war economic development and its high systemic importance
(18% of system assets and deposits in 2011). Fitch believes that
it is highly likely for government support to flow to PLC via PB.
This is due to the strong linkages between the two entities and
the strategic importance of PLC to PB, as well as the consequent
reputation risk to the State if PLC should default on its
financial obligations.
PLC's IDRs may be downgraded if PB gives up its controlling stake
in PLC, or if PB's (derived) capacity to support weakens, or if
PLC's strategic importance to PB diminishes over time.
PLC is the largest non-bank financial institution in Sri Lanka in
terms of advances, with a 21% share of the market at end-2011.
At end-March 2012, its total assets and post-tax profits stood at
LKR96bn and LKR4.5bn, respectively.
PLC's ratings:
-- Foreign Currency Issuer Default Rating: 'B+'; Outlook Stable
-- Local Currency Issuer Default Rating: 'B+'; Outlook Stable
-- National Long-Term rating: 'AA-(lka)'/Stable Outlook
-- LKR1.155bn outstanding senior unsecured redeemable
debentures: 'AA-(lka)'
-- LKR1.5bn outstanding rated commercial paper: 'F1+(lka)'
=============
V I E T N A M
=============
ACER INC: Fitch Downgrades Issuer Default Rating to 'BB+'
---------------------------------------------------------
Fitch Ratings has downgraded Acer Inc.'s Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDR) to 'BB+' from 'BBB-'
and its National Long-Term Rating to 'A-(twn)' from 'A(twn)'.
The Outlook on the ratings is Negative.
Acer's financial performance over the past year has been much
worse than Fitch's previous forecast and the company
underperformed its major peers in terms of operating income and
margin. The downgrade reflects a deterioration in credit metrics
which is likely to be sustained, weaker competitiveness and
concentration in traditional personal computer (PC) business as a
vendor of mobile computing devices.
Fitch is forecasting Acer to see mid-single digit declines in
revenue for 2012, with an operating EBIT margin below 1% (2012: -
1.3%), in view of competitive pricing pressure and many
consumers' preference for media tablets over PCs. This follows
Acer's 24% revenue decline in 2011 and its first net loss since
1995. Funds flow from operations (FFO) was negative in 2011.
Fitch expects FFO to turn positive in 2012, but to less than 35%
of its 2010 level.
Acer's position in the global PC market has consistently weakened
since its market share peaked in 2009. Acer's growth in the
Asia-Pacific region was unable to offset its market share loss in
EMEA and the US. In 2011, Acer was ranked fourth for global PC
sales although it maintained second position status for notebook
sales.
Sales of Acer's low-price mini-notebook PCs, previously an
important product, have struggled to compete with media tablets.
Without sufficient diversification from other products and
services, Acer suffers from a prolonged PC replacement cycle as
consumers defer expenditure while the global economy remains
weak.
Fitch expects Acer to maintain strong liquidity with a net cash
position over the medium term. The company had a cash balance of
TWD60bn at end-March 2012, comfortably covering its total debt of
TWD23bn.
What Could Trigger a Rating Action?
Positive: Future developments that may, individually or
collectively, lead to positive rating action include:
-- improvement in operating EBIT margin to above 2%
-- reduction in FFO-adjusted leverage to below 3x
-- improvement in pre-dividend free cash flow margin to above
2%
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- deterioration in operating EBIT margin to below 0.5%
-- deterioration in FFO-adjusted leverage to above 4x
-- decline in pre-dividend free cash flow margin below 0.5%
-- negative free cash flow
The rating guidelines refer to an upgrade and downgrade
respectively. Performance worse than the positive guidelines but
stronger than the negative guidelines would lead to the rating
Outlook being revised to Stable, should this performance be
sustained.
*********
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 ***