/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/171122.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 Wednesday, November 22, 2017, Vol. 20, No. 232 Headlines A U S T R A L I A BENCHMARK PRIVATE: Grant Thornton Named as Provisional Liquidator COOMBS BAREI: Directors Face ASIC Probe on Insolvent Trading COOPERS NORTH: First Creditors' Meeting Set for Nov. 29 DS DEVELOPMENTS: First Creditors' Meeting Set for Nov. 30 LIBERTY FUNDING: Moody's Assigns Ba3 Rating to Class F Notes WALSH ENGINEERING: First Creditors' Meeting Set for Nov. 30 WATERSUN LAND: First Creditors' Meeting Set for Nov. 29 WT AUSTRALIA: First Creditors' Meeting Set for Nov. 30 C H I N A YIDA CHINA: Moody's Revises Outlook to Negative; Affirms B2 CFR * CHINA: Picks 31 State Firms for 3rd Round of Ownership Reforms H O N G K O N G NOBLE GROUP: Fitch Cuts IDR to CC on Possible Restructuring I N D I A A. S. BETGERI: CRISIL Reaffirms B+ Rating on INR3MM Cash Loan AKJA EXIM: CRISIL Lowers Rating on INR10MM Loan to 'D' ATLANTIS BUILDERS: CRISIL Reaffirms B Rating on INR20MM Loan BASUDHA UDYOG: CRISIL Reaffirms D Rating on INR60MM Loan COSMOS DEVELOPERS: CRISIL Reaffirms B Rating on INR14MM Term Loan D.V. EXPORTS: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating DEVIKKESH NOVAMATE: Ind-Ra Migrates B+ Rating to Non-Cooperating DHANYA STEEL: CRISIL Reaffirms D Rating on INR13MM Cash Loan DHANYA TMT: CRISIL Reaffirms D Rating on INR13MM Cash Loan ENVIROPOL ENGINEERS: Ind-Ra Moves BB+ Rating to Non-Cooperating HARIRAM PACKAGING: CRISIL Reaffirms B+ Rating on INR9MM LT Loan JAY PARVATI: ICRA Moves B Rating to Not Cooperating Category JAYMALA INFRA: ICRA Moves B+ Rating to Not Cooperating Category KAPSONS ENGINEERS: ICRA Moves D Rating to Not Cooperating KRIDHAN INFRA: CRISIL Reaffirms B- Rating on INR4MM Cash Loan KUNDLAS LOH: CRISIL Reaffirms B+ Rating on INR14MM Cash Loan LAGU BANDHU: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating NARMADA SPINNING: CRISIL Reaffirms B+ Rating on INR20MM Cash Loan NEWCON ENGINEERS: CRISIL Reaffirms B+ Rating on INR2MM Cash Loan PARAS COTSPIN: CRISIL Reaffirms B- Rating on INR7.58MM LT Loan PEE GEE: CRISIL Reaffirms B- Rating on INR6MM Cash Loan RELIANCE COMM: Moody's Withdraws Ca CFR and Sr. Sec. Rating RELIGARE ENTERPRISES: Restructures as Singh Brothers Face Debt ROCHEM GREEN: CRISIL Reaffirms D Rating on INR25.04MM Term Loan RSA MARINES: CRISIL Reaffirms B+ Rating on INR4.25MM Term Loan S. D. GURAV: CRISIL Reaffirms D Rating on INR6MM Cash Loan SAI LEKSHMI: CRISIL Reaffirms B Rating on INR.5MM Cash Loan SHREE MAHALAXMI: CRISIL Reaffirms B Rating on INR13MM Cash Loan SRI LAKSHMI: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating SRI SAI APPA: CRISIL Reaffirms B Rating on INR6MM LT Loan STAUNCH NATURAL: CRISIL Lowers Rating on INR20MM Cash Loan to D SUNSHINE EXPORTS: ICRA Moves D Rating to Not Cooperating Category TANWAR INDUSTRIES: CRISIL Reaffirms B Rating on INR4.9MM Loan TASHKENT OIL: Ind-Ra Ups Issuer Rating from BB, Outlook Stable TATA POWER: Moody's Withdraws Ba3 Corporate Family Rating TIRUPATI INDUSTRIES: CRISIL Reaffirms B+ Rating on INR25MM Loan VIDYA PRASARINI: ICRA Moves D Rating to Not Cooperating Category VYANKTESH PLASTICS: CRISIL Reaffirms B+ Rating on INR5MM Loan I N D O N E S I A BANK RAKYAT: S&P Alters Outlook to Positive & Affirms 'BB+' ICR SAWIT SUMBERMAS: Fitch Withdraws B+ (EXP) Rating on US$ Bond M O N G O L I A MONGOLIA: Fitch Affirms B- IDR; Revises Outlook to Positive S I N G A P O R E MARCO POLO: Wins Scheme Creditors Support for Restructuring Plan * SINGAPORE: SMEs Face Cash-Flow Squeeze Amid Payment Delays - - - - - ================= A U S T R A L I A ================= BENCHMARK PRIVATE: Grant Thornton Named as Provisional Liquidator ----------------------------------------------------------------- ASIC has obtained orders from the Supreme Court of Queensland appointing Mr. Michael McCann of Grant Thornton as a provisional liquidator to five companies within the Benchmark Private Wealth Group. These are: 1. Benchmark Private Wealth Pty Ltd; 2. Benchmark Wealth Property Services Pty Ltd; 3. Benchmark Private Wealth Holdings Pty Ltd; 4. OSK Developments Pty Ltd; and 5. Young Corporation (NSW) Pty Ltd. ASIC applied for and obtained the orders on an ex parte basis as a part of an ongoing investigation into the Benchmark Private Wealth Group. ASIC sought the orders due to solvency concerns about the companies and about their management by the director, Liam Young. ASIC is also concerned about transactions entered into with a number of other companies which were a part of the Members Alliance Group and the director of those other companies, Richard Marlborough. The orders require the provisional liquidator to provide a detailed report to the Court within 45 days that sets out, among other things, the financial position of each of the companies so the Court can consider whether it ought to make orders to wind up the companies. The orders were made on Nov. 3, 2017. No future court date has been set. The Members Alliance Group was a group of companies operating on the Gold Coast which went into external administration in July 2016. On July 13, 2017, Jason Bettles and Raj Khatri of Worrells themselves sought and obtained orders from the Supreme Court to be replaced as liquidators of a number of Members Alliance Group companies by Michael McCann of Grant Thornton. COOMBS BAREI: Directors Face ASIC Probe on Insolvent Trading ------------------------------------------------------------ Renato Castello at The Advertiser reports that the Australian Securities and Investments Commission has been asked to investigate South Australian builder Coombs Barei Constructions for potential insolvent trading. South Australian Small Business Commissioner John Chapman told The Advertiser he had contacted the nation's corporate watchdog in response to the paper's reports that the Hindmarsh builder, which collapsed last month with AUD6.5 million in debts, was failing to pay its tradies and suppliers. "I raised concerns with ASIC that there was possible insolvent trading taking place and that ASIC should do whatever they can to intervene; I also raised that with one of the ASIC commissioners," the report quotes Mr. Chapman as saying. "It was pretty obvious based on the stories there seemed to be problems paying people, that usually indicates in the building industry there may be bigger issues." Under the Corporations Act company directors found guilty of trading insolvent can face civil penalties of up to AUD200,000 or criminal penalties of a maximum AUD220,000 fine or up to five years in jail, The Advertiser notes. According to the Advertiser, Mr. Chapman said the SA Crown Solicitor's office was also considering whether there were grounds to prosecute Coombs Barei, whose directors are Adelaide United shareholders Tony Basile and George Charalabidis, for breaches of the Small Business Commissioner's Act. Mr. Chapman alleged the company ignored a legal request issued in March this year to produce documents pertaining to a contractor's claim for payment, the report says. "In this particular case there was a significant amount outstanding and we didn't feel the person was getting a straight answer," he said, adding the company directors face a maximum AUD20,000 fine, The Advertiser relays. The report notes that the developments came after insolvency firm investigating Coombs Barei's collapse survived a bid to dump them as administrators at a creditors' meeting on November 9. Prominent lawyer Greg Griffin, acting as a proxy for two creditors owed AUD230,000, had unsuccessfully sought to install Austin Taylor of Meertens because of his "experience in the forensic area" but lost the motion 18 votes to 34, the report says. Mr. Griffin is a co-shareholder in Adelaide United with Mr. Basile, Mr. Charalabidis and Coombs Barei owner and former director Bruno Marveggio, The Advertiser discloses. Mr. Griffin in April had publicly declared he wanted Mr. Marveggio out of the club following reports in The Advertiser that his joinery firm Wunda Projects had not paid superannuation. The debt has since been paid, the report states. According to the Advertiser, Mr. Griffin said on November 9 that the attempt to remove administrators of Coombs Barei was not driven by an agenda against Mr. Marveggio or his business colleagues. "Most of the big litigation I have been involved in some way, I'm a litigation lawyer that's what it is," the report quotes Mr. Griffin as saying. He said a fresh attempt to remove administrators would be made at a second creditors' meeting, The Advertiser adds. Peter Lanthois and Stephen Duncan of Duncan Powell were appointed administrators of Coombs Barei Constructions on Oct. 30, 2017. COOPERS NORTH: First Creditors' Meeting Set for Nov. 29 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Coopers North Q-Land Pty Ltd will be held at the offices of Robson Cotter Insolvency Group, 1/78 Logan Road Woolloongabba, in Queensland, on Nov. 29, 2017, at 1:00 p.m. William Roland Robson and Bill Cotter of Robson Cotter were appointed as administrators of Coopers North on Nov. 17, 2017. DS DEVELOPMENTS: First Creditors' Meeting Set for Nov. 30 --------------------------------------------------------- A first meeting of the creditors in the proceedings of DS Developments (Vic) Pty Ltd will be held at 454 Collins Street, in Melbourne, Victoria, on Nov. 30, 2017, at 10:00 a.m. Travis Pullen of TJP Advisory was appointed as administrator of DS Developments on Nov. 21, 2017. LIBERTY FUNDING: Moody's Assigns Ba3 Rating to Class F Notes ------------------------------------------------------------ Moody's Investors Service has assigned the following definitive ratings to the Notes to be issued by Liberty Funding Pty Ltd: Issuer: Liberty Funding Pty Ltd in respect of the Liberty Series 2017-4 Trust -- AUD120.0 million Class A1a Notes, Assigned Aaa (sf) -- AUD574.5 million Class A1b Notes, Assigned Aaa (sf) -- EUR56.5 million Class A1c Notes, Assigned Aaa (sf) -- AUD285.6 million Class A2 Notes, Assigned Aaa (sf) -- AUD57.6 million Class B Notes, Assigned Aa2 (sf) -- AUD21.6 million Class C Notes, Assigned A2 (sf) -- AUD15.6 million Class D Notes, Assigned Baa2 (sf) -- AUD8.4 million Class E Notes, Assigned Ba1 (sf) -- AUD10.8 million Class F Notes, Assigned Ba3 (sf) The AUD20.4 million Class G Notes are not rated by Moody's. The ratings address the expected loss posed to investors by the legal final maturity. RATINGS RATIONALE The transaction is an Australian prime and non-conforming RMBS secured by a portfolio of residential mortgage loans. A portion of the portfolio consists of loans extended to borrowers with impaired credit histories (2.4%) or made on an alternative or limited documentation basis (2.8%). This is the 24th non-conforming RMBS transaction sponsored by Liberty Financial Pty Limited ("Liberty"). The ratings take account of, among other factors: - Class A1a, Class A1b and Class A1c Notes benefit from 35.0% credit enhancement (CE) and Class A2 Notes benefit from 11.2% CE, while Moody's MILAN CE assumption - representing the loss that Moody's expects the portfolio to suffer in the event of a severe recession scenario - is at 10.6%. Moody's expected loss for this transaction is 1.2%. The subordination strengthens the ratings stability, should the pool experience losses above Moody's expectations. - A liquidity facility provided by Commonwealth Bank of Australia (CBA, Aa3/P-1/Aa2(cr)/P- 1(cr)), with a required limit equal to 3.0% of the aggregate invested amount of the Notes less the redemption fund balance. The facility is subject to a floor of AUD600,000. If the facility provider loses its P-1(cr) counterparty risk assessment, it must within 30 days either: (1) procure a replacement facility provider; or (2) deposit an amount of the undrawn liquidity commitment at the time into an account with a P-1 rated bank. - The guarantee fee reserve account is unfunded at closing and will build up to a limit of 0.30% of the issued notional from proceeds paid to Liberty Credit Enhancement Company Pty Ltd as Guarantor, from the bottom of the interest waterfall prior to interest paid to the Class G noteholders. The reserve account will firstly be available to meet losses on the loans and charge- offs against the Notes. Secondly, it can be used to cover any liquidity shortfalls that remain uncovered after drawing on the liquidity facility and principal. Any reserve account balance used can be reimbursed to its limit from future excess income. - The experience of Liberty in servicing residential mortgage portfolios. - Interest rate mismatch arises when the movements of the 30-day BBSW are not (simultaneously) passed on to the variable rate loans. To mitigate the basis risk, the threshold rate mechanism obligates the Servicer to set interest rates on the mortgage loans at a minimum rate above 1mBBSW, or higher if the trust's income is insufficient to cover the obligations of the Trustee under the transaction documents. - A currency swap provided by National Australia Bank Limited (NAB, Aa3/P-1/Aa2(cr)/P-1(cr)) mitigates the cross-currency risk associated with the EUR-denominated Class A1c Notes. According to the current form of the swap documentation, swap linkage has no present rating impact on the Class A1c Notes. This is because the linkage between the note ratings and the rating of the provider of any of the swaps is mitigated by an obligation to post cash collateral and novate the swap upon downgrade below A3(cr). The key transactional and pool features are: - The notes will initially be repaid on a sequential basis until among other stepdown conditions the payment date falls on or after the payment date in October 2019 and absence of charge offs on any notes. Upon satisfaction of all stepdown conditions Class A1b, Class A1c, Class A2, Class B, Class C, Class D, Class E, and Class F Notes will receive a pro-rata share of principal payments (subject to additional conditions). The Class A1a will receive principal prior to any other notes at all times, unless there is an event of default. The Class G Notes do not step down and will only receive principal payments once all other notes have been repaid. - The principal pay-down switches back to sequential pay across all notes, once the aggregate loan amount falls below 20.0% of the aggregate loan amount at closing, or on or following the payment date in October 2021. - The weighted average scheduled loan to value of the pool is at 73.8%. - The portfolio is geographically well diversified due to Liberty's wide distribution network. - The portfolio contains 2.4% exposure with respect to borrowers with prior credit impairment (default, judgement or bankruptcy). Moody's assesses these borrowers as having a significantly higher default probability. - 2.6% of loans were extended on an alternative documentation basis and 0.2% of the loans were extended on a no documentation basis. For the alternative documentation loans Liberty performs additional verification checks over and above the typical checks for low documentation products. These checks include a declaration of financial position and six months of bank statements, two quarters of Business Accounting Statements or GST returns. Liberty's alternative documentation loans have stronger arrears performance when compared to traditional low documentation loans. Given the additional verification checks and the stronger arrears performance, Moody's says that these alternative documentation loans demonstrate a lower default frequency than standard low documentation loans. - Investment and interest only loans represent 38.8% and 39.1% of the pool respectively. Both proportions are higher than the Australian mortgage market averages of 34.7% and 38.2%, respectively, as of the end of June 2017. Both proportions are higher than the pre-2017 Liberty non-conforming transactions. Moody's assesses that investor buyers have a higher probability of default compared to borrowers who live in the property that serves as security for that loan. Similarly, Moody's MILAN analysis has factored in a higher default probability for loans with interest-only periods than loans amortising from loan origination without interest-only periods. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Approach to Rating RMBS Using the MILAN Framework" published in September 2017. Factors that would lead to an upgrade or downgrade of the ratings: Levels of credit protection that are greater than necessary to protect investors against current expectations of loss could lead to an upgrade of the ratings. Moody's current expectations of loss could be better than its original expectations because of fewer defaults by underlying obligors or higher recoveries on defaulted loans. The Australian job market and the housing market are primary drivers of performance. A factor that could lead to a downgrade of the Notes is worse- than-expected collateral performance. Other reasons for performance worse than Moody's expects include poor servicing, error on the part of transaction parties, a deterioration in credit quality of transaction counterparties, fraud and lack of transactional governance. Moody's Parameter Sensitivities: Parameter Sensitivities are designed to provide a quantitative calculation of how the initial rating might change if key input parameters used in the initial rating process - here the MILAN CE and mean expected loss - differed. The analysis assumes that the deal has not aged. Parameter Sensitivities only reflect the ratings impact of each scenario from a quantitative/model-indicated standpoint. Based on the current structure, assuming an increase in the Portfolio EL and MILAN CE of 50% above the initial assumptions, the Class A2 Notes are sensitive to a one-notch rating migration. Using these same assumptions, the ratings on the Class B, Class C and Class D Notes will drop two notches. The Class A1 Notes are not sensitive to any rating migration using these same assumptions. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. Moody's ratings are subject to revision, suspension or withdrawal at any time at Moody's absolute discretion. The ratings are expressions of opinion and not recommendations to purchase, sell or hold securities. WALSH ENGINEERING: First Creditors' Meeting Set for Nov. 30 ----------------------------------------------------------- A first meeting of the creditors in the proceedings of Walsh Engineering Services Pty Ltd will be held 165 Camberwell Road, Hawthorn East, on Nov. 30, 2017, at 10:30 a.m. Shane Leslie Deane and Nicholas Giasoumi of Dye & Co. were appointed as administrators of Walsh Engineering on Nov. 21, 2017. WATERSUN LAND: First Creditors' Meeting Set for Nov. 29 ------------------------------------------------------- A first meeting of the creditors in the proceedings of Watersun Land Holdings Pty. Ltd will be held at the offices of PKF Melbourne, Level 13, 440 Collins Street, in Melbourne, on Nov. 29, 2017, at 10:30 a.m. Glenn Jeffrey Franklin of PKF Melbourne was appointed as administrator of Watersun Land on Nov. 17, 2017. WT AUSTRALIA: First Creditors' Meeting Set for Nov. 30 ------------------------------------------------------ A first meeting of the creditors in the proceedings of WT Australia Minerals Investment Pty Ltd will be held at the offices of Worrells Solvency & Forensic Accountants, Level 3, 15 Ogilvie Road, in Mount Pleasant, West Australia, on Nov. 30, 2017, at 10:30 a.m. Mervyn Jonathan Kitay of Worrells Solvency was appointed as administrator of WT Australia on Nov. 20, 2017. ========= C H I N A ========= YIDA CHINA: Moody's Revises Outlook to Negative; Affirms B2 CFR --------------------------------------------------------------- Moody's Investors Service has changed to negative from stable the outlook on Yida China Holdings Limited's B2 corporate family rating and B3 senior unsecured rating. Moody's has also affirmed both ratings. Moody's rating action follows Yida's announcement on November 14, 2017 that it had entered into agreements to acquire for RMB4.46 billion a 70% ownership in the Dalian Tiandi project. Yida already has a 30% interest in the project and will settle the acquisition costs by instalments over the next 12 months. RATINGS RATIONALE "The negative outlook reflects Moody's consideration that Yida's acquisition of Dalian Tiandi, which is sizeable, will weaken its liquidity position and increase its debt leverage over the next 12-18 months," says Kaven Tsang, a Moody's Vice President and Senior Credit Officer. "Yida will likely take time to rectify the situation through increasing sales of development properties and securing borrowed funds," adds Tsang who is also the lead Analyst for Yida. Moody's points out that the acquisition is sizeable because Moody's estimates that the cost of RMB4.46 billion and the assumption of the project's debt would equal around 20% of Yida's total assets at end-June 2017. Moody's believes that the company will need to raise new debt to fund the acquisition. Although it had cash of RMB4.8 billion at end-June 2017, this amount will not be adequate to manage related instalment payments over the next 12 months and short-term debt of around RMB4.9 billion. Consequently, Moody's expects Yida's reported debt to grow to around RMB20-24 billion and revenue/adjusted debt to decline to 33%-35% in the next 12-18 months. This compares with reported debt of RMB17 billion and revenue/adjusted debt of 40% at end-June 2017. These levels of debt leverage are weak for the company's B2 corporate family rating. Yida's liquidity position will also weaken over the next 12 months, until it has secured the funding necessary to cover the acquisition instalments. This situation is not helped by the 6.5% year on year decline in the company's attributable contracted sales to RMB4.1 billion in the first nine months of 2017. On the other hand, the execution risk associated with the acquired project is manageable, given Yida's stake in it. Furthermore, the project is expected to generate annual recurring rental income of around RMB100 million as well as cash inflows from the sale of its inventory of residential properties estimated at RMB2-3 billion. Yida's B2 corporate family rating continues to reflect the company's established track record in the development and management of business parks in Dalian, and its diversified source of income and operations, with somewhat different business dynamics when compared to pure residential developers. However, the company's rating is constrained by its small operating scale, high geographic concentration, elevated debt leverage, and weak liquidity position. Rating downgrade pressure could arise if: (1) Yida's contracted sales or revenue growth is below Moody's expectations; (2) the company engages in further aggressive debt-funded acquisitions; or (3) its liquidity position and/or credit metrics weaken further. Credit metrics and liquidity levels indicative of downward rating pressure include: (1) adjusted EBIT/interest coverage below 1.5x; (2) revenue/adjusted debt failing to trend back to 40%; or (3) cash/short-term debt below 1.0x on a sustained basis. An upgrade of Yida's rating is unlikely in the near term, given the negative rating outlook. Nevertheless, the company's rating outlook could return to stable if Yida: (1) demonstrates satisfactory contracted sales and revenue growth; (2) reduces its debt leverage, such that revenue/adjusted debt recovers to 40% and EBIT/interest above 1.5x; and (3) strengthens its liquidity, with cash/short-term debt sustained above 1.0x. The principal methodology used in these ratings was Homebuilding And Property Development Industry published in April 2015. Yida China Holdings Limited engages in the development and operation of business parks, and the development and sale of residential properties, with a focus on Dalian. It also provides property management and construction, decoration and landscaping services. Yida was founded in 1998 and listed on the Hong Kong Stock Exchange in June 2014. * CHINA: Picks 31 State Firms for 3rd Round of Ownership Reforms ---------------------------------------------------------------- Reuters reports that China has chosen 31 more government-owned firms to participate in its third round of mixed ownership reforms aimed at injecting private capital into the state sector, an official of the country's powerful economic planning body said on November 15. The mixed ownership reform plan is designed to inject market discipline into, as well as open up additional financing for, China's lumbering, debt-ridden state sector, Reuters relates. According to Reuters, the cabinet, or State Council, has already decided which firms to include, choosing state enterprises run by regional authorities as well as the central government, said the official, Meng Wei. "Currently we are pressing the pilot enterprises to draw up implementation plans," Reuters quotes Meng Wei, vice-head of the policy research office of the National Development and Reform Commission (NDRC), as saying. Reuters says the 19 pilot firms selected in the first and second rounds of reform were now gradually implementing their restructuring programs, she told a briefing, adding that China's overall reform plans remained on schedule. More than a third have already "basically completed" reforms aimed at introducing new investors, boosting corporate governance and setting up new internal incentive mechanisms, she added, Reuters relays. Reuters notes that policymakers have expressly ruled out the possibility that mixed ownership reforms could lead to the privatization of state assets, with China now seeking to strengthen political discipline at its state-owned enterprises by enhancing "party leadership". ================ H O N G K O N G ================ NOBLE GROUP: Fitch Cuts IDR to CC on Possible Restructuring ----------------------------------------------------------- Fitch Ratings has downgraded Hong Kong-based commodities trader Noble Group Limited's Long-Term Foreign-Currency Issuer Default Rating (IDR), senior unsecured rating and the ratings on all its outstanding senior unsecured notes to 'CC' from 'CCC'. The Recovery Rating is 'RR4'. The downgrade follows Noble's Nov. 15, 2017 announcement that it has commenced discussions with stakeholders on its capital structure. KEY RATING DRIVERS Possible Restructuring: Noble has announced that it has "commenced discussions with various stakeholders regarding potential options to address the company's capital structure and liquidity position". Fitch's Corporate Rating Criteria defines a 'CC' rating as one where "default of some kind appears probable" and is deemed appropriate for issuers who have "publicised discussions on a restructuring, but not formally started one". Asset Disposals to Aid Liquidity: Noble's liquidity was tight at end-September 2017, with USD262 million in unrestricted cash and USD800 million in undrawn credit facilities against more than USD1.7 billion in short-term debt, excluding cash and cash equivalents and debt at Noble Americas Corp. (NAC), Noble's US- based energy unit currently being disposed. The company's liquidity shortfall should improve after the NAC disposal is completed, assuming net cash proceeds after repayment of secured debt of around USD597 million, as estimated by Noble, provided everything else remains the same. Unrestricted cash would then increase to USD859 million - calculated as unrestricted cash balance of USD262 million at end-September 2017, plus USD597 million of net cash proceeds from NAC - with USD800 million of unused credit facilities, providing a better buffer against its short-term debt of USD1.7 billion. Debt Maturity Looms: Noble has two large tranches of debt maturing in 2018: USD400 million of US-dollar notes due in March and USD1.1 billion of unsecured revolving credit facilities and term loans due in May. In addition, the company has two US-dollar senior unsecured notes amounting to USD2.0 billion due in 2020 and 2022. It is unclear how Noble will address these maturities without a change to its capital structure, given the uncertainties regarding the profit generation of its operations after the NAC disposal. Recovery Rating of 'RR4': The Recovery Rating of Noble's senior unsecured notes, based on its 3Q17 balance sheet, is 'RR5'. This suggests notching its senior unsecured ratings down by one notch. However, Fitch has assigned a recovery rating of 'RR4' due to Fitch expectations that the company will retire all its secured borrowing base facilities by year-end. Adjust Liquidation Value: Fitch applied a 25% haircut to Noble's receivables under a liquidation approach, as most of its counter- parties are of reputable names. Fitch also applied a 20% haircut to inventory, with Noble reporting readily marketable inventories of over USD182 million in 3Q17, and a 50% haircut to the balance- sheet value of USD506 million for property, plant and equipment and USD622 million of affiliates, minority interests and other. The adjusted liquidation value, after administrative claims of USD1.4 billion, is first applied to the USD636 million in secured debts, with the remaining USD762 million applied to the USD3.5 billion in senior unsecured debt. DERIVATION SUMMARY Noble's rating is driven by its latest announcement of a possible capital restructure, its poor liquidity and the low visibility of funding structure stability. KEY ASSUMPTIONS Fitch's key assumptions within Fitch rating case for the issuer include: - Disposal of NAC as planned - No earning recovery - Recovery analysis applying a 25% haircut for USD1.1 billion of receivables, 20% haircut for USD182 million inventory and 50% haircut for property, plant and equipment, affiliates, minority interests and other assets totalling USD1.1 billion - 10% administrative claims applied on the liquidation value RATING SENSITIVITIES Developments that May, Individually or Collectively, Lead to Positive Rating Action - Noble successfully refinances of debt due in 2018 Developments that May, Individually or Collectively, Lead to Negative Rating Action - Noble starts a restructuring process or enters into a standstill LIQUIDITY Tight Liquidity: Noble's liquidity shortfall increased significantly at end-September 2017, with USD262 million of unrestricted cash and USD800 million of undrawn credit facilities, against more than USD1.7 billion in short-term debt, excluding cash and cash equivalents and debt at NAC. ========= I N D I A ========= A. S. BETGERI: CRISIL Reaffirms B+ Rating on INR3MM Cash Loan ------------------------------------------------------------- CRISIL Ratings has been consistently following up with A. S. Betgeri (ASB) for obtaining information through letters and emails dated July 7, 2017 and August 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 3 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of A. S. Betgeri. This restricts CRISIL's ability to take a forward A. S. Betgeri is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B+/Stable/CRISIL A4. Set up in 1995 by Mr. A S Betgeri as a proprietorship firm, ASB undertakes civil construction works of buildings primarily for the Karnataka Public Works Department. AKJA EXIM: CRISIL Lowers Rating on INR10MM Loan to 'D' ------------------------------------------------------ CRISIL Ratings has downgraded its ratings on the bank facilities of AKJA Exim Private Limited (AKJA) to 'CRISIL D/CRISIL D' from 'CRISIL B+/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Letter of Credit 10 CRISIL D (Downgraded from 'CRISIL A4') Packing Credit 2 CRISIL D (Downgraded from 'CRISIL A4') Proposed Long Term 0.5 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL B+/Stable') The rating downgrade reflects delays in repayment of bank debt by AKJA. These delays have been due to weak operating performance. The ratings also reflect AKJA's below-average financial risk profile. However it benefits from promoters' extensive experience in the agricultural commodities trading business. Key Rating Drivers & Detailed Description Weakness * Below-average financial risk profile: AKJA has below average financial risk profile due to modest networth of INR 1.3 crores and high gearing of 9.1 times as on March 31, 2016. Strength * Promoters' extensive experience in agro commodities trading business: AKJA benefits from its established track record and extensive experience of its partners in the agro-commodities trading business. The company is managed by Mr. Kathiravan and his wife Mrs. T Jaisudha, whose family has been in the agro- commodity trading business for the past two decades. AKJA, set up in 2011 and based in Chennai, trades in black matpe, toor dal, green moong, and lentils. It is managed by promoters Mr. S Kathiravan and his wife Ms. T Jaisudha. ATLANTIS BUILDERS: CRISIL Reaffirms B Rating on INR20MM Loan ------------------------------------------------------------ CRISIL Ratings has been consistently following up with Atlantis Builders India Private Limited (ABIPL) for obtaining information through letters and emails dated July 14, 2017 and August 14, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Working Capital 20 CRISIL B/Stable (Issuer Not Demand Loan Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Atlantis Builders India Private Limited. This restricts CRISIL's ability to take a forward Atlantis Builders India Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B/Stable'. ABIPL is a Bengaluru based real estate company started in 2012 by Mr Venkataswamy Raju and his family. It develops residential apartments in Bengaluru. BASUDHA UDYOG: CRISIL Reaffirms D Rating on INR60MM Loan -------------------------------------------------------- CRISIL Ratings has been consistently following up with Basudha Udyog Private Limited (BUPL) for obtaining information through letters and emails dated July 17, 2017 and August 14, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 15 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Letter of Credit 60 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Term Loan 34 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Basudha Udyog Private Limited. This restricts CRISIL's ability to take a forward Basudha Udyog Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL D/CRISIL D'. BUPL, incorporated in 1992, manufactures low ash metallurgical (LAM) coke and operates a power plant near Chennai. Its operations are managed by promoter-director Mr Sanjay Kumar Poddar. COSMOS DEVELOPERS: CRISIL Reaffirms B Rating on INR14MM Term Loan ----------------------------------------------------------------- CRISIL Ratings has been consistently following up with Cosmos Developers - Rajkot (CD) for obtaining information through letters and emails dated August 18, 2017 and September 28, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 14 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Cosmos Developers - Rajkot. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Cosmos Developers - Rajkot is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B/Stable'. CD, a partnership firm formed in 2015, is constructing a residential complex, Cosmos Plus, at Mavadi in Rajkot, Gujarat. The firm is promoted by 11 partners who have extensive experience in real estate development. Its operations are managed by Mr Ramnik Savji Katodia, Mr Mitul Amrut Dhut, and Mr Kantilal Virji Patel. D.V. EXPORTS: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated D.V. Exports' (DVE) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The ratings will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR190 mil. Fund-based working capital limits migrated to non-cooperating category with IND BB-(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on June 23, 2015. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE DVE is a proprietorship concern of Sanchit Rajpal and is engaged in the trading of cotton yarn and cotton bales. The firm is a part of the Manjeet Group, which belongs to the Rajpal family of Sendhwa. DEVIKKESH NOVAMATE: Ind-Ra Migrates B+ Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Devikkesh Novamate Boards Private Limited's (DNBPL) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND B+(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR37.5 mil. Fund-based limits migrated to non-cooperating category with IND B+(ISSUER NOT COOPERATING) rating; -- INR32.0 mil. Term loan with IND B+(ISSUER NOT COOPERATING) migrated to non-cooperating category rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 11, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Incorporated in 1997, DNBPL manufactures particle boards, laminated particle boards and pre-laminated particle boards. DHANYA STEEL: CRISIL Reaffirms D Rating on INR13MM Cash Loan ------------------------------------------------------------ CRISIL Ratings has been consistently following up with Dhanya Steel Industries Private Limited (DSIPL) for obtaining information through letters and emails dated July 17, 2017 and August 14, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 13 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Dhanya Steel Industries Private Limited. This restricts CRISIL's ability to take a forward Dhanya Steel Industries Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL D'. For arriving at the rating, CRISIL has combined the business and financial risk profiles of DSIPL and Dhanya TMT Private Limited (DTPL). This is because the two companies, together referred to as the Dhanya group, are in similar lines of business and under a common promoter group, and have significant business and financial linkages with each other. Established in December 2007, DSIPL manufactures ingots and billets. The company has its manufacturing facility in Chittoor district (Andhra Pradesh). DHANYA TMT: CRISIL Reaffirms D Rating on INR13MM Cash Loan ---------------------------------------------------------- CRISIL Ratings has been consistently following up with Dhanya TMT Private Limited (DTPL) for obtaining information through letters and emails dated July 7, 2017 and August 14, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 13 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Dhanya TMT Private Limited. This restricts CRISIL's ability to take a forward Dhanya TMT Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL D'. For arriving at the rating, CRISIL has combined the business and financial risk profiles of DTPL and Dhanya Steel Industries Pvt Ltd (DSIPL). This is because the two companies, together referred to as the Dhanya group, are in similar lines of business and under a common promoter group, and have significant business and financial linkages with each other. Established in 2012, Bengaluru-based DTPL (earlier knows as Amsteel Industries Private Limited) manufactures thermo- mechanically treated (TMT) bars. ENVIROPOL ENGINEERS: Ind-Ra Moves BB+ Rating to Non-Cooperating --------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Enviropol Engineers Private Limited's (EEPL) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB+(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR30 mil. Fund-based working capital limit migrated to non- cooperating category with IND BB+(ISSUER NOT COOPERATING)/IND A4+(ISSUER NOT COOPERATING) rating; and -- INR65 mil. Non-fund-based working capital limit migrated to non-cooperating category with IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on November 2, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Enviropol Engineers was established as a proprietorship concern in 2005 by Mr Rajesh Kumar Verma. In 2008, newly incorporated EEPL took over the operations of Enviropol Engineers. EEPL is engaged in the design, engineering and manufacturing of pollution control equipment (mainly air pollution) such as electrostatic precipitators, bag filters, wet scrubbing, pre-dust collectors and related spare parts. Its manufacturing facilities are in Noida. HARIRAM PACKAGING: CRISIL Reaffirms B+ Rating on INR9MM LT Loan --------------------------------------------------------------- CRISIL Ratings has been consistently following up with Hariram Packaging and Polymers (HPP) for obtaining information through letters and emails dated September 15, 2017 and October 10,2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 3 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 7 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 9 CRISIL B+/Stable (Issuer Bank Loan Facility Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Hariram Packaging and Polymers. This restricts CRISIL's ability to take a forward Hariram Packaging and Polymers is consistent with 'Scenario 4' outlined in the 'Framework for Assessing Consistency of Information and hence CRISIL has reaffirmed the rating at 'CRISIL B+/Stable/CRISIL A4. HPP is a del-credere and consignment agent of Haldia Petrochemicals limited for polymer products such as HDPE and PP. HPP was set up as a partnership firm by Mr. Dilip Murarka and his wife, Mrs. Sandhya Murarka in Nagpur (Maharashtra) in 2001. JAY PARVATI: ICRA Moves B Rating to Not Cooperating Category ------------------------------------------------------------ ICRA Ratings has moved the long-term ratings for the bank facilities of Jay Parvati Cold Storage (JPCS) to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B (Stable) ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund-based-Term 3.79 [ICRA]B (Stable) ISSUER NOT Loan COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Fund-based-Cash Credit 0.20 [ICRA]B (Stable) ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Fund-based-Pledge Loan 2.73 [ICRA]B (Stable) ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA on the basis of the best available information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as it may not adequately reflect the credit risk profile of the entity. Established in June 2014, Jay Parvati Cold Storage (JPCS) operated a cold storage facility at Deesa in the Banaskantha district of Gujarat. It commenced operations from February 15, 2015. The cold storage stores potatoes, with a total stocking capacity of 153,000 bags of 50 kg each or 7,650 MT of potatoes. The firm is promoted by Mali and Parmar families who have longstanding experience in potato farming an trading business. JAYMALA INFRA: ICRA Moves B+ Rating to Not Cooperating Category --------------------------------------------------------------- ICRA Ratings has moved the long term ratings for the bank facilities of Jaymala Infrastructure Private Limited (JIPL) to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]B+ (Stable) ISSUER NOT COOPERATING." Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Term 27.00 [ICRA]B+ (Stable) ISSUER NOT Loan COOPERATING; Rating moved to the 'Issuer Not Cooperating' category ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. The current rating action has been taken by ICRA basis best available/dated/ limited information on the issuers' performance. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity. Jaymala Infrastructure Private Limited was incorporated in 2010 in order to undertake activities in hospitality (hotel chain facility) and renting of immovable properties. JIPL owns a land area at Chakan MIDC in Pune where the company has developed 1,22,112 sq ft of production facility and had let out the same to Benteler Automotive India Private Limited. Also, the company is setting up a 150-room 4-star category hotel in Navi Mumbai. While JIPL would develop the hotel, it will be operated through management agreement with Marriott Hotels (India) Private Limited which is a leading global hospitality chain. KAPSONS ENGINEERS: ICRA Moves D Rating to Not Cooperating --------------------------------------------------------- ICRA Ratings has downgraded the rating for the INR20.00-crore bank facilities of Kapsons Engineers Private Limited to [ICRA]D from [ICRA]BB (Stable). ICRA has also moved the ratings to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA] D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Inventory funding 20.00 [ICRA]D; ISSUER NOT COOPERATING; Downgraded from [ICRA]BB (Stable) and moved to the 'Issuer Not Cooperating' category ICRA has limited information on the entity's performance since the time it was last rated in June 2016 which was based on detailed information. ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Accordingly the lenders, investors and other market participants are advised to exercise appropriate caution while using this rating as the rating may not adequately reflect the credit risk profile of the entity, despite the downgrade. Rationale The rating downgrade follows the delays in debt servicing by KEPL to the lender(s), as confirmed by them to ICRA. Key rating drivers Credit weaknesses * Delays in servicing of debt obligations: KEPL has been delaying on its debt obligations pertaining to the inventory funding facility. * Decline in revenues and significant increase in working capital intensity: The company witnessed a decline in revenues of ~40% over FY2015 to FY2016. Further the company witnessed an increase in the working capital intensity from 19% in FY2015 to 52% in FY2016 on account of increase in debtor days. * Thin margins and low bargaining power characterise the auto dealership business: The dealership business is characterised by thin margins and low bargaining power since margins on vehicles, spares, service and accessories are mostly controlled by the principal. The profit margins are also susceptible to the cyclical nature of the Indian passenger vehicle industry and competition from other established and new Honda Cars India Limited (HCIL) dealers in Delhi/NCR as well as from other dealers. * Exposed to regulatory risks and adverse event risk, specific to the geography on account of concentration in Delhi-NCR: With all its showrooms in Delhi/NCR, the company remains exposed to event risks specific to the geography. Incorporated in 2007, Kapsons Engineers Private Limited (KEPL) is an authorised dealer for passenger vehicles of HCIL. The company is promoted by the Kapoor family, with Mr. Jawahar Lal Kapoor and Mr. Atul Kapoor (son of Mr. Jawahar Lal Kapoor) serving as the directors of the company. KEPL's customers are majorly based of Gurgaon and Noida. KRIDHAN INFRA: CRISIL Reaffirms B- Rating on INR4MM Cash Loan ------------------------------------------------------------- CRISIL Ratings has been consistently following up with Kridhan Infra Solutions Private Limited (KISPL; part of the Kridhan group) for obtaining information through letters and emails dated July 13, 2017, and August 10, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 4 CRISIL B-/Stable (Issuer Not Cooperating; Rating Reaffirmed) Letter of Credit 2 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 5.48 CRISIL B-/Stable (Issuer Bank Loan Facility Not Cooperating; Rating Reaffirmed) Term Loan 1.02 CRISIL B-/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Kridhan Infra Solutions Private Limited. This restricts CRISIL's ability to take a forward Kridhan Infra Solutions Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B-/Stable/CRISIL A4. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of KISPL and its parent, Kridhan Infra Ltd (KIL). This is because the companies, together referred to as the Kridhan group, have significant operational and financial linkages. KIL (formerly, Readymade Steel India Ltd) was established in 2006 as a joint venture by Mr Anil Agrawal (25% share); Bengaluru- based Krishna Triveni Ltd (25% share); and CSC Holdings Ltd (50% share), a leading Singapore-based geotechnical engineering company. In 2007, Mr Agrawal acquired the stake of the other partners, and inducted Ms Krishna Devi Agrawal, his mother, as a shareholder in KIL. KISPL, a wholly owned subsidiary of KIL, was incorporated in 2011. It manufactures and trades in couplers and thermo- mechanically treated bars. KUNDLAS LOH: CRISIL Reaffirms B+ Rating on INR14MM Cash Loan ------------------------------------------------------------ CRISIL Ratings has been consistently following up with Kundlas Loh Udyog (KLU) for obtaining information through letters and emails dated October 17, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 14 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Kundlas Loh Udyog. This restricts CRISIL's ability to take a forward Kundlas Loh Udyog is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B+/Stable'. KLU was set up in 2006 by the Dhillon family. In fiscal 2016, however, there was a change in the partnership structure with Mr Rajiv Singhla and Mr Manish Singhla admitted as new partners. The firm manufactures steel structural products such as angles and channels, which it sells under the brand Kaptan. It has a semi- integrated plant for manufacturing angles (which contribute around 80% of revenue), channels (around 20%), and ingots, which are used for captive consumption; it has an installed annual capacity of 33,000 tonne in the Nalagarh district of Himachal Pradesh. LAGU BANDHU: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating ---------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Lagu Bandhu Motiwale Private Limited's (LBMPL) Long-Term Issuer Rating to the non-cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating action is: -- INR200 mil. Fund-based facilities migrated to non-cooperating category with IND BB(ISSUER NOT COOPERATING)/IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on July 22, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE In 1989, LBMPL was reconstituted as a private limited entity from a partnership firm. It is engaged in the retailing of gold and diamond jewellery. The company has nine exclusive showrooms across Mumbai, Thane, Dombivali, Pune and Goa in India and Oklahoma in the US. NARMADA SPINNING: CRISIL Reaffirms B+ Rating on INR20MM Cash Loan ----------------------------------------------------------------- CRISIL Ratings has been consistently following up with Narmada Spinning Private Limited (NSPL) for obtaining information through letters and emails dated September 18, 2017 and October 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 1.65 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 3.00 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term .35 CRISIL B+/Stable CRISIL Bank Loan Facility Not Cooperating; Rating Reaffirmed) Term Loan 20.0 CRISIL B+/Stable CRISIL Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Narmada Spinning Private Limited. This restricts CRISIL's ability to take a forward Narmada Spinning Private Limited is consistent with 'Scenario 4' outlined in the 'Framework for Assessing Consistency of Information and hence CRISIL has reaffirmed the rating at 'CRISIL B+/Stable/CRISIL A4. Incorporated in Fiscal 2014, NSPL is engaged in manufacturing of open-end spinning yarn. The company has been promoted by the Morbi-based Dhamsania family and commenced commercial operations in April 2015. NEWCON ENGINEERS: CRISIL Reaffirms B+ Rating on INR2MM Cash Loan ---------------------------------------------------------------- CRISIL Ratings has been consistently following up with Newcon Engineers Private Limited (NEPL) for obtaining information through letters and emails dated August 10, 2017 and September 28, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 4.5 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 2 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Short Term 3.5 CRISIL A4 (Issuer Bank Loan Facility Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Newcon Engineers Private Limited. This restricts CRISIL's ability to take a forward looking view on the credit quality of the entity. CRISIL believes that the information available for Newcon Engineers Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B+/Stable/CRISIL A4'. Incorporated in 2012 as a private limited company, NEPL undertakes construction work. The company undertakes all types of civil work such as building construction, road construction, bridge construction, and others. The company, based in Delhi, is promoted by Mr Arnav Mukherjee. PARAS COTSPIN: CRISIL Reaffirms B- Rating on INR7.58MM LT Loan -------------------------------------------------------------- CRISIL Ratings has been consistently following up with Paras Cotspin Limited (PCL) for obtaining information through letters and emails dated July 10, 2017 and August 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee .25 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 6.5 CRISIL B-/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 7.58 CRISIL B-/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) Rupee Term Loan 2.82 CRISIL B-/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Paras Cotspin Limited. This restricts CRISIL's ability to take a forward Paras Cotspin Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B- /Stable/CRISIL A4. PCL, incorporated by Mr Dinesh Kataria and his family and friends in 2007, began commercial production in fiscal 2009. Fiscal 2010 was its first full year of operations. The company manufactures cotton yarn (in counts of 10-18s) at its facility in Samana, Punjab. PEE GEE: CRISIL Reaffirms B- Rating on INR6MM Cash Loan ------------------------------------------------------- CRISIL Ratings has been consistently following up with Pee Gee International (Delhi) (PGI) for obtaining information through letters and emails dated July 10, 2017 and August 8, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Buyer's Credit 6 CRISIL B-/Stable (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 6 CRISIL B-/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Pee Gee International (Delhi). This restricts CRISIL's ability to take a forward Pee Gee International (Delhi) is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B- /Stable'. Set up as a proprietorship firm in 2002 by Mr Gauri Shankar, Delhi-based PGI trades in aluminium scrap and other metals. RELIANCE COMM: Moody's Withdraws Ca CFR and Sr. Sec. Rating ----------------------------------------------------------- Moody's Investors Service has withdrawn Reliance Communications Limited's (RCOM) Ca corporate family rating (CFR) and its negative outlook. At the same time, Moody's has also withdrawn the Ca rating on RCOM's senior secured notes. RATINGS RATIONALE On November 6, RCOM announced that pursuant to the invocation of Strategic Debt Restructuring (SDR) scheme by the lenders of the company as per the Reserve Bank of India guidelines agreed in June 2017, the company is under a debt standstill period until December 2018, as it looks to complete a corporate and debt restructuring. Accordingly, for the time being, no payment of interest and/or principal is being made to any RCOM lenders and/or bondholders. The semi-annual interest payment on its $300 million senior secured bond was due on November 6, 2017. According to the indenture, the company had a seven-day grace period, after which an event of default would occur. Moody's has withdrawn the ratings as a missed scheduled payment of either interest or principal is considered a default under Moody's definitions. Reliance Communications Limited (RCOM) is an integrated telecommunications operator in India (Baa2 stable) with a presence across wireless, enterprise, broadband, tower infrastructure, subsea cable systems and DTH businesses. RELIGARE ENTERPRISES: Restructures as Singh Brothers Face Debt -------------------------------------------------------------- Bloomberg News reports that two companies controlled by tycoons Malvinder and Shivinder Singh announced a reorganization as the brothers wrestle with debt and legal tangles. The Singh brothers' Religare Enterprises Ltd. announced a shakeup on November 14, with Malvinder stepping down as non-executive chairman of the financial services and small-business lender while four other officials also resigned, Bloomberg relates. Separately, another Singh holding, Fortis Healthcare Ltd., offered to buy the assets of its Singapore-listed RHT Health Trust as part of a broader reorganization for Fortis, India's second-largest private hospital chain by market value, Bloomberg says. The upheaval comes as the Singhs have been attempting to sell assets in order to pay down debt at their main holding company RHC Holding Pvt., people familiar with the situation told Bloomberg in March. The Reserve Bank of India raised concerns over the creditworthiness of some customers of a Religare finance unit, Bloomberg relates citing a report by the company's auditor PricewaterhouseCoopers LLP in June. Since August, India's top court has ordered the Singhs not to sell or dilute their shareholding in Fortis, the report says. "The brothers are trying to restructure their group and group companies including Fortis Healthcare to cool off investor concerns and settle issues," Bloomberg quotes Arun Kejriwal, founder of Kejriwal Research & Investment Services Pvt, as saying. "This is a last-ditch effort to save the group by exiting from positions and consolidation." A Religare spokesman said the two announcements aren't related, while a Fortis spokesman declined to comment. An RHC spokesman declined to comment on the restructuring at Religare and Fortis beyond the companies' statements, as well as ongoing legal challenges, the company's debt and debt rating, Bloomberg notes. According to Bloomberg, Fortis is offering to buy RHT Health for an enterprise value of INR46.5 billion ($711 million). The transaction, which includes INR11.52 billion of debt, would lead to improved profitability with service fees being eliminated as the hospital company integrates all the assets into its fold, Fortis said in its statement. In addition to Malvinder resigning at Religare, its chief executive officer and chief financial officer quit, as well as the company secretary and a board member, according to Bloomberg. Religare said it appointed S. Lakshminarayanan as chairman, effective Nov. 14, and also named Krishnan Subramanian as new CFO. Malvinder will remain on the board. Bloomberg adds that Religare's board approved plans to raise capital and said it will review strategic options including partnerships. The company also reported a narrower loss for the second quarter. Shares of Religare soared 10 percent in Mumbai trading on November 15, Bloomberg discloses. The stock is down 82 percent for the year. Fortis shares jumped as much as 12 percent, trimming their year-to-date loss to 22 percent. Bloomberg recalls that India's top court in August ordered the Singhs to halt any dilution in their shareholdings of Fortis as it considers a petition by Japanese drug firm Daiichi Sankyo Co. to place a longer-term halt on asset sales by the brothers. According to Bloomberg , Daiichi is seeking to enforce an award of about $500 million in damages and interest ordered by a tribunal in Singapore over the Singh brothers' 2008 sale of their stake in Ranbaxy Laboratories Ltd. The Singhs are appealing that ruling. According to Bloomberg, the rating on main holding company RHC's long-term non-convertible debt was downgraded to "default" by India Ratings & Research in July. The rating was assigned after RHC missed scheduled coupon payments on its non-convertible debentures the previous month and reflects the group's impaired ability to service debt, according to the agency. In September, the agency reported it changed RHC's rating to that of a "non-cooperating category" after the company did not provide a no-default statement for the previous month despite multiple requests, Bloomberg notes. Religare Enterprises Limited is a financial services company. The Company is engaged in the business of broking in securities and commodities, lending and investments, financial advisory services, custodial and depository operations, portfolio management services, asset management and insurance, institutional equities and investment banking services to clients. ROCHEM GREEN: CRISIL Reaffirms D Rating on INR25.04MM Term Loan --------------------------------------------------------------- CRISIL Ratings has been consistently following up with Rochem Green Energy Private Limited (RGEPL) for obtaining information through letters and emails dated July 13, 2017 and August 10, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 3.35 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 16.61 CRISIL D (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) Term Loan 25.04 CRISIL D (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Rochem Green Energy Private Limited. This restricts CRISIL's ability to take a forward Rochem Green Energy Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL D'. RGEPL was incorporated in 2010. Mr Prayas Goel and Mr Prerak Goel own 51% and 49% stakes, respectively. Currently, RGEPL is operating a municipal solid waste plant in Pune in collaboration with the Pune Municipal Corporation. RGEPL is also undertaking EPC (engineering, procurement and construction) of the solid waste management project. RSA MARINES: CRISIL Reaffirms B+ Rating on INR4.25MM Term Loan ------------------------------------------------------------- CRISIL Ratings has been consistently following up with RSA Marines (RSA) for obtaining information through letters and emails dated July 14, 2017 and August 14, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Foreign Discounting Bill Purchase 9.5 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Packing Credit 2.5 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term .75 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) Term Loan 4.25 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of RSA Marines. This restricts CRISIL's ability to take a forward RSA Marines is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B+/Stable/CRISIL A4. RSA was incorporated in 2002, promoted by Mr M. Rahim, Mr Hanse, and Mr Sharafudeen. Based in Alappuzha, Kerala, the firm processes seafood products, which it sells to various exporting units in Kerala. S. D. GURAV: CRISIL Reaffirms D Rating on INR6MM Cash Loan ---------------------------------------------------------- CRISIL Ratings has been consistently following up with S. D. Gurav (SDG) for obtaining information through letters and emails dated July 13, 2017 and August 10, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit/ 6 CRISIL D (Issuer Not Overdraft facility Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of S. D. Gurav. This restricts CRISIL's ability to take a forward S. D. Gurav is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL D'. Established in 1995 as a sole proprietor firm, SDG is a Belgaum (Karnataka) based civil contractor & interior designer. The company primarily undertakes construction of residential projects. SAI LEKSHMI: CRISIL Reaffirms B Rating on INR.5MM Cash Loan ----------------------------------------------------------- CRISIL Ratings has been consistently following up with Sai Lekshmi Foods (SLF) for obtaining information through letters and emails dated July 17, 2017 and August 14, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit .5 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Foreign Bill 1 CRISIL A4 (Issuer Purchase Not Cooperating; Rating Reaffirmed) Packing Credit 5 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Sai Lekshmi Foods. This restricts CRISIL's ability to take a forward Sai Lekshmi Foods is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B/Stable/CRISIL A4. Set up as a proprietorship firm in 1996, SLF processes raw cashew nuts and sells cashew kernels. SLF operates seven facilities in Kollam (Kerala) with combined processing capacity of around 10 tonnes per day. Its operations are managed by proprietor Mr. N Krishnan Kutty. SHREE MAHALAXMI: CRISIL Reaffirms B Rating on INR13MM Cash Loan --------------------------------------------------------------- CRISIL Ratings has reaffirmed its 'CRISIL B/Stable/CRISIL A4' ratings on the bank loan facilities of Shree Mahalaxmi Himghar Pvt Ltd (SMHPL) while removing them from 'Issuer Not Cooperating'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee .4 CRISIL A4 (Reaffirmed; Removed from 'Issuer Not Cooperating') Cash Credit 13.0 CRISIL B/Stable (Reaffirmed; Removed from 'Issuer Not Cooperating') The ratings continue to reflect SMHPL's exposure to risks inherent in the highly regulated and intensely competitive cold storage industry in West Bengal (WB). The ratings also factor in a weak financial risk profile marked by small networth and high gearing. These weaknesses are mitigated by the promoters' extensive industry experience. Key Rating Drivers & Detailed Description Weakness * Exposure to risks inherent in regulated and competitive cold storage industry in WB: The potato cold storage industry in WB is regulated by the West Bengal Cold Storage Association. Rental rates are fixed by the state's department of agricultural marketing. The fixed rental limits players' ability to earn profit based on their strengths and geographical advantages. Furthermore, the industry is highly fragmented, which limits bargaining power, and forces players to offer discounts to ensure healthy utilisation of capacity. * Weak financial risk profile: Small networth and high gearing, estimated at around Rs 2 crore and 4.5 times, respectively, as on March 31, 2017, constrain the financial risk profile. Muted accretion to reserves will keep the networth small while significant reliance on bank lines for onward lending to farmers shall also keep the gearing high. Strength * Extensive industry experience of the promoters: The promoters, members of the Dolui family, have extensive experience of around 4 decades in the cold storage industry, which has helped them develop healthy relationships with potato farmers and traders, and will continue to support the company's business risk profile. Outlook: Stable CRISIL believes SHMPL will continue to benefit from its promoters' extensive industry experience. The outlook may be revised to 'Positive' if a sustained and substantial increase in cash accrual, or equity infusion, along with better working capital management, improves the financial risk profile. The outlook may be revised to 'Negative' if there is pressure on liquidity due to delays in repayment of loans by farmers, considerably low cash accrual, or significant capital expenditure. SMHPL, incorporated in 1979 by Mr. Madan Dolui and his family, operates a cold storage in West Bengal. The company provides cold storage facilities for potato and also trades in potatoes. However majority revenues is derived from the cold storage business. SRI LAKSHMI: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating ----------------------------------------------------------------- India Ratings and Research (Ind-Ra) has migrated Sri Lakshmi Constructions' (SLC) Long-Term Issuer Rating to the non- cooperating category. The issuer did not participate in the rating exercise despite continuous requests and follow-ups by the agency. Therefore, investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as 'IND BB-(ISSUER NOT COOPERATING)' on the agency's website. The instrument-wise rating actions are: -- INR50 mil. Fund-based working capital limit migrated to non- cooperating category with IND BB-(ISSUER NOT COOPERATING)/IND A4+(ISSUER NOT COOPERATING) rating; and -- INR80 mil. Non-fund-based limits migrated to non-cooperating category with IND A4+(ISSUER NOT COOPERATING) rating. Note: ISSUER NOT COOPERATING: The ratings were last reviewed on August 17, 2016. Ind-Ra is unable to provide an update, as the agency does not have adequate information to review the ratings. COMPANY PROFILE Established in 2008, SLC is a partnership concern. It undertakes civil contracts and electrical installation contracts such as strengthening of distribution networks and conversion of existing low voltage network into high voltage distribution systems, among others for the government of Andhra Pradesh. SRI SAI APPA: CRISIL Reaffirms B Rating on INR6MM LT Loan --------------------------------------------------------- CRISIL's ratings on the bank facilities of Sri Sai Appa BioCare (SSABC) continue to reflect its small scale of operations and susceptibility to unfavorable policies capping the price of stents and below average financial risk profile. These weaknesses are partially offset by the extensive experience of the firm's partners in the distribution industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2 CRISIL A4 (Reaffirmed) Cash Credit 2 CRISIL B/Stable (Reaffirmed) Proposed Cash Credit Limit 1 CRISIL B/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 6 CRISIL B/Stable (Reaffirmed) Key Rating Drivers & Detailed Description Weaknesses *Small scale of operations and susceptibility to unfavorable government policies capping the prices of stents: The scale of operations was small with revenues of around INR2.1 crore for fiscal 2017.The government regularly caps the prices of stents, which exerts pressure on the operating margin of firms engaged in medical product distribution. * Below average financial risk profile: The firm has an average financial risk profile marked by high gearing and below average debt protection metrics. Strength * Extensive experience of the partners: The partners have an experience of over 25 years in the distribution industry and have over 14 years of experience in the medical distribution industry. CRISIL believes that SSABC will continue to benefit over the medium term from the extensive experience of the partners. Outlook: Stable CRISIL believes SSABC will continue to benefit from the extensive experience of its partners. The outlook may be revised to 'Positive' if the scale of operations improves significantly and improves profitability. The outlook may be revised to 'Negative' if increase in working capital requirement or decline in cash accrual weakens financial risk profile. Established in May 2016 as a partnership firm of Mr Ramesh K R and Mr Sachidanandam S, Chennai-based SSABC is an authorized distributor of coronary stents, surgical implants, medical equipment and medical devices of Abbot India Limited in Tamil Nadu and Pondicherry. STAUNCH NATURAL: CRISIL Lowers Rating on INR20MM Cash Loan to D --------------------------------------------------------------- CRISIL Ratings has been consistently following up with Staunch Natural Resources Private Limited (SNRPL) for obtaining information through letters and emails dated July 11, 2017 and Aug. 9, 2017, apart from telephonic communication. However, the issuer has remained non-cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL D (Issuer Not Cooperating: Downgraded from 'CRISIL B+/Stable') Proposed Long Term 5 CRISIL D (Issuer Not Bank Loan Facility Cooperating: Downgraded from 'CRISIL B+/Stable') The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company'. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of SNRPL. This restricts CRISIL's ability to take a forward looking rating call on SNRPL. Consequently, CRISIL has taken a rating approach which is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information'. Accordingly, based on the last available information, CRISIL has downgraded its rating on the bank facilities of SNRPL to 'CRISIL D/Issuer Not Cooperating' from 'CRISIL B+/Stable'. The downgrade reflects weak liquidity resulting in overdrawal in the working capital limit for more than 30 days. SNRPL, incorporated in 2008, commenced operations in fiscal 2011. The company trades in mill scale, iron ore fines, and imported mild steel scrap. It has two directors: Mr. Nandish Parekh and Mr Aditya Golecha. SUNSHINE EXPORTS: ICRA Moves D Rating to Not Cooperating Category ----------------------------------------------------------------- ICRA Ratings has moved the short term rating for the bank facilities of Sunshine Exports (SE) to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]D; ISSUER NOT COOPERATING". The rating is based on limited information on the entity's performance since the time it was last rated in June 2016. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-EPC/ 6.00 [ICRA]D ISSUER NOT FBP/FBD COOPERATING; Rating moved to the 'Issuer Not Cooperating' category The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with Sunshine Exports, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information, and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Sunshine Exports (SE), established in the year 2006, is a proprietorship firm based out of Nagpur, Maharashtra. The firm is managed by its proprietor, Mrs. Aruna Moorthy and her husband, Mr. DTS Moorthy. The firm is engaged in export of agro products, primarily rice and sugar. TANWAR INDUSTRIES: CRISIL Reaffirms B Rating on INR4.9MM Loan ------------------------------------------------------------- CRISIL Ratings has been consistently following up with Tanwar Industries (TI) for obtaining information through letters and emails dated September 19, 2017 and October 9, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 3 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) Cash Credit 3 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) Term Loan 4.9 CRISIL B/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Tanwar Industries. This restricts CRISIL's ability to take a forward Tanwar Industries is consistent with 'Scenario 2' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BBB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B/Stable/CRISIL A4. TI, a partnership firm, was set up in 1998. It is managed by Mr. Mohammed Tahir and Mr. Arvind K Lunia. It manufactures diesel generator sets. The firm operates in Rajasthan. TASHKENT OIL: Ind-Ra Ups Issuer Rating from BB, Outlook Stable -------------------------------------------------------------- India Ratings and Research (Ind-Ra) has upgraded Tashkent Oil Company Private Limited's (TOCPL) Long-Term Issuer Rating to 'IND BB+' from 'IND BB'. The Outlook is Stable. The instrument-wise rating actions are: -- INR70 mil. Fund-based working capital limit long-term rating upgraded; short-term rating affirmed with IND BB+/Stable/IND A4+ rating; -- INR8 mil. Non-fund based working capital limit affirmed with IND A4+ rating. KEY RATING DRIVERS The upgrade reflects an improvement in TOCPL's credit metrics to moderate-to-comfortable levels in FY17 due to a rise in EBITDA margin. In FY17, net leverage (Ind-Ra-adjusted net debt/operating EBITDAR) was 2.27x (FY16: 2.46x) and EBITDA interest coverage (operating EBITDA/gross interest expense) was 4.21x (2.75x). EBITDA margin rose to 10.94% in FY17 (FY16: 9.69%), driven by lower raw material prices. The ratings are supported by the company's track record of over three decades in manufacturing oil and lubricants. The ratings, however, are constrained by TOCPL's small scale of operations despite revenue growth to INR318 million in FY17 (FY16: INR285.74 million) due to higher sales volume. The ratings are further constrained by the company's elongated net cash cycle of 167 days in FY17 (FY16: 176 days), volatility in raw material prices and any adverse change in government policies. RATING SENSITIVITIES Negative: A decline in revenue and operating profitability leading to deterioration in the overall credit metrics will be negative for the ratings. Positive: A substantial increase in the revenue backed by volume growth while EBITDA margin and credit metrics being maintained and/or improving could lead to positive rating action. COMPANY PROFILE TOCPL was incorporated as a private limited company in 1980 and manufactures a wide range of lubricants and oil such as gear oil, transformer oil and grease. The company sells its product under the brand Tashoil to various government and private organisations. TATA POWER: Moody's Withdraws Ba3 Corporate Family Rating --------------------------------------------------------- Moody's Investors Service has withdrawn Tata Power Company Limited (The) Ba3 corporate family rating, (P)Ba3 senior unsecured MTN Program rating, and the issuer's negative outlook. RATINGS RATIONALE Moody's has withdrawn the ratings following the repayment of the company's rated senior unsecured debt on maturity Tata Power Company Limited (The) is one of the largest private- sector power utility in India with an installed generation capacity of 10,613 MW as of March 2017. The company's business operations include power generation (thermal, hydro, solar and wind), transmission and distribution. Moody's has decided to withdraw the ratings for its own business reasons. TIRUPATI INDUSTRIES: CRISIL Reaffirms B+ Rating on INR25MM Loan --------------------------------------------------------------- CRISIL Ratings has been consistently following up with Tirupati Industries - Rajkot (TI) for obtaining information through letters and emails dated August 18, 2017 and September 28, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 25 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Proposed Long Term 6 CRISIL B+/Stable (Issuer Not Bank Loan Facility Cooperating; Rating Reaffirmed) Term Loan 4.75 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Tirupati Industries - Rajkot. This restricts CRISIL's ability to take a forward Tirupati Industries - Rajkot is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B+/Stable'. TI was set up by brothers Mr Ashish Talaviya and Mr Ashwin Talaviya, and their family members, as a partnership firm in 2014. It is based in Rajkot, Gujarat, and extracts groundnut oil and produces de-oiled cakes. VIDYA PRASARINI: ICRA Moves D Rating to Not Cooperating Category ---------------------------------------------------------------- ICRA Ratings has moved the long term and short term ratings for the bank facilities of Vidya Prasarini Sabha (VPS) to the 'Issuer Not Cooperating' category. The rating is now denoted as "[ICRA]D ISSUER NOT COOPERATING". Amount Facilities (INR crore) Ratings ---------- ----------- ------- Fund based-Term 13.45 [ICRA]D ISSUER NOT Loan COOPERATING; Rating moved to the 'Issuer Not Cooperating' category Unallocated Limits 0.30 [ICRA]D ISSUER NOT COOPERATING; Rating moved to the 'Issuer Not Cooperating' category The rating is based on limited updated information on the entity's performance since the time it was last rated in May 2016. The lenders, investors and other market participants are thus advised to exercise appropriate caution while using this rating as the rating does not adequately reflect the credit risk profile of the entity. The entity's credit profile may have changed since the time it was last reviewed by ICRA; however, in the absence of requisite information, ICRA is unable to take a definitive rating action. As part of its process and in accordance with its rating agreement with Vidya Prasarini Sabha, ICRA has been trying to seek information from the entity so as to monitor its performance, but despite repeated requests by ICRA, the entity's management has remained non-cooperative. In the absence of requisite information, and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating Committee has taken a rating view based on the best available information. Vidya Prasarini Sabha (VPS) was established in 1923 with an aim to provide education to various verticals of the society. At present, VPS runs around twenty-two education institutes in Pune and Lonavala, which includes Engineering college, BSC College, BCA College, Jr. Colleges, high schools and Institutes for computer courses with a total strength of around 11,800 students, of which around 7400 students come under government sponsored schools while remaining 4400 students come under private schools, Jr. Colleges and other institutes. VYANKTESH PLASTICS: CRISIL Reaffirms B+ Rating on INR5MM Loan ------------------------------------------------------------- CRISIL Ratings has been consistently following up with Vyanktesh Plastics and Packaging Private Limited (VPPL) for obtaining information through letters and emails dated July 13, 2017 and August 8, 2017 among others, apart from telephonic communication. However, the issuer has remained non cooperative. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 5 CRISIL B+/Stable (Issuer Not Cooperating; Rating Reaffirmed) Inland/Import Letter of Credit 2 CRISIL A4 (Issuer Not Cooperating; Rating Reaffirmed) The investors, lenders and all other market participants should exercise due caution while using the rating assigned/reviewed with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward looking component as it is arrived at without any management interaction and is based on best available or limited or dated information on the company. Detailed Rationale Despite repeated attempts to engage with the management, CRISIL failed to receive any information on either the financial performance or strategic intent of Vyanktesh Plastics and Packaging Private Limited. This restricts CRISIL's ability to take a forward Vyanktesh Plastics and Packaging Private Limited is consistent with 'Scenario 1' outlined in the 'Framework for Assessing Consistency of Information with CRISIL BB' rating category or lower. Based on the last available information, CRISIL has reaffirmed the rating at 'CRISIL B+/Stable/CRISIL A4. VPPL, incorporated in Ujjain (Madhya Pradesh) in 1989, trades in kraft paper. The company is promoted by Mrs. Saroj Bangar. ================= I N D O N E S I A ================= BANK RAKYAT: S&P Alters Outlook to Positive & Affirms 'BB+' ICR --------------------------------------------------------------- S&P Global Ratings revised its outlook on PT Bank Rakyat Indonesia (Persero) Tbk. (BRI) to positive from stable. S&P said, "At the same time, we affirmed our 'BB+' long-term and 'B' short- term issuer credit ratings on the Indonesian bank. We also affirmed our 'BB+' issue rating on the bank's senior unsecured notes." S&P said, "We revised the outlook because we expect BRI's asset quality to remain better than industry average over the next 12- 18 months. We expect BRI's credit costs to gradually decline over the next few quarters as the bank has built sufficient buffers against stressed loans (nonperforming loans [NPLs] and performing restructured loans). As of Sept. 30, 2017, BRI has a coverage ratio of about 200% against NPLs." BRI's performance has been superior to its peers' in the current cyclical downturn in Indonesia. The bank's NPL ratio of 2.2% as of Sept. 30, 2017, was lower than the industry average of 3.0%. The bank's NPLs have consistently been below the industry average over the past six years. BRI's stressed loans at about 7% of gross loans as of Sept. 30, 2017, were also lower than about 9% for both PT Bank Mandiri (Persero) Tbk. and PT Bank Negara Indonesia (Persero) Tbk. (BNI). BRI's sizable exposure to micro loans at 34.5% of the loan portfolio underpins its above-average asset quality, in our view. The bank's micro loans portfolio is quite granular with low average ticket size and has good geographical spread. This mitigates the risk of a sharp rise in delinquency. BRI's strong understanding of the micro markets, extensive reach in rural areas, and rigorous monitoring and collection mechanisms have helped it maintain low NPLs in this segment despite the low incomes of this borrower profile. Micro loans disbursed under the government's schemes (KUR) are insured for at least 70% of credit losses, benefiting credit costs. Those not under the government's scheme, are secured by collateral. Moreover, about 30% of micro loans are to fixed income earners. The Indonesian banking system's NPLs have been rising since 2014 due to weak commodity prices and a sluggish domestic economy. Small and midsize enterprises (SMEs) were the most affected as they typically have a single revenue stream, which makes them vulnerable to cyclical downturns. Although the stressed loans in BRI's SME portfolio (24% of total loans) increased, the bank's NPLs in this segment appear to have peaked and declined in the second and third quarters of 2017. S&P believes management's efforts to control slippages in the SME segment and tighten underwriting practices will enable BRI to sustain its above- average asset quality. Although BRI's credit costs have risen over the past few years (2.4% of average loans annualized as of Sept. 30, 2017), they remain comparable to regional peers on a five-year average basis at 1%. Moreover, the bank has been building up its loan loss provisions over the past few years, resulting in adequate buffers against downside risks. S&P also notes that the bank has conservatively made 100% provisions against certain stressed loans. BRI's net charge-offs of 0.6% (annualized) of average loans as of Sept. 30, 2017, are lower than both Bank Mandiri and BNI, which have had higher write offs in past few quarters. This is despite BRI's policy of writing off any micro loan overdue for more than 270 days. BRI plans to increase the proportion of micro loans to 40% of its loan book by 2022 with corporate loans declining to 20% (25.3% as of Sept. 30, 2017). S&P believes this growth strategy can benefit the banks risk position and its earnings, given micro loans have higher yields and lower NPLs. High net interest margins (NIMs), lower credit costs, and stable operating expenses should result in good capital generation for BRI. S&P said, "We estimate that the bank's risk-adjusted capital (RAC) ratio will be 9.5%-9.7% over the next 12-18 months. The ratio increased to 9.9% in 2016, from 8.4% in 2015, because of a substantial increase in capital post fixed asset revaluation. We believe the dividend payout ratio will be 40%-45% in 2017 and 2018, compared with 40% in 2016, given the high tier-1 ratio of 21% as of Sept. 30, 2017." BRI's NIMs (above 8%) should moderate, given several policy rate cuts recently. That said, the cuts will directly affect 65% of the bank's portfolio as micro loans are fixed-rate. NIMs could also decline if the government caps the KUR lending rate at 7% (9% for 2017) without increasing the subsidy. S&P said, "Nonetheless, we expect BRI's NIMs to remain among the highest in the region. We anticipate that the bank's profitability, measured by the ratio of core earnings to average assets, will remain healthy at 2.5%-3.0% over the next 12-18 months." S&P said, "We expect the bank to maintain its strong market position and its solid funding and liquidity profile. "The positive outlook reflects our expectation that BRI will maintain its above-average asset quality. "We could raise the ratings on BRI in the next 12-18 months if the bank's asset quality remains superior to the industry's and credit costs show a sustainable decline. We could also raise the rating if the bank's RAC ratio remains above 10% on a sustained basis. However, we see a lower likelihood of such an improvement in the RAC ratio as the bank may use up the capital to pay higher dividends and grow its loan book. "We could revise the outlook to stable if BRI's asset quality deteriorates such that its stressed loans increase beyond 10% and credit costs increase to 2.5%-3% on a sustained basis." SAWIT SUMBERMAS: Fitch Withdraws B+ (EXP) Rating on US$ Bond ------------------------------------------------------------ Fitch Ratings has withdrawn the 'B+(EXP)' expected rating assigned to Indonesia-based palm-oil producer PT Sawit Sumbermas Sarana Tbk's (SSMS, B+/Positive) proposed US dollar senior unsecured notes. The notes were to have been issued by SSMS Plantation International Pte. Ltd., a wholly owned subsidiary of SSMS, and guaranteed by SSMS and its parent, PT Citra Borneo Indah, and certain operating subsidiaries. KEY RATING DRIVERS Fitch is withdrawing the expected rating as SSMS's proposed debt issuance is no longer expected to convert to final ratings. The expected rating on the proposed notes was assigned on November 6, 2017. RATING SENSITIVITIES Not applicable =============== M O N G O L I A =============== MONGOLIA: Fitch Affirms B- IDR; Revises Outlook to Positive ----------------------------------------------------------- Fitch Ratings has revised the Outlook on Mongolia's Long-Term Foreign-Currency Issuer Default Rating (IDR) to Positive from Stable and affirmed the IDR at 'B-'. KEY RATING DRIVERS The revision of the Outlook to Positive reflects the following key rating drivers: The fiscal outlook has improved considerably. Fitch forecasts the general government deficit to decline to 7.3% of GDP in 2017, above the 'B' median of 4.2%, but down from a peak of 15.9% in 2016 due to strong revenue growth and capital expenditure cuts. The 2018 budget incorporates recently approved revenue-enhancing measures and only modest expenditure increases, which Fitch believes is consistent with a further narrowing of the budget deficit to 6.5% of GDP next year. Continued adherence to fiscal targets and reforms aimed at curtailing off-budget expenditure and introducing greater independence to the budgeting process should lay a path towards a more robust and credible fiscal framework over time, but is still in a nascent development stage. Gross general government debt (GGGD) is on a downwards trajectory. Fitch forecasts GGGD to decline to 87.5% of GDP in 2017, having peaked at 91.4% in 2016 as a result of the high budget deficit and a substantial revaluation of foreign-currency borrowings associated with a 20% depreciation of the tugrik. The agency's baseline forecasts suggest GGGD will decline to below 80% of GDP by end-2020, assuming a gradual decline in the primary deficit to 1.5%, average nominal GDP growth of 11.5%, and a broadly stable tugrik. Despite the expected improvement in public debt dynamics, GGGD/GDP will remain substantially above the 'B' category peer median of 58.5% for the foreseeable future, weighing on the sovereign ratings. Refinancing risks have receded. Implementation of an IMF-led financing and structural reform programme following board approval in May 2017 is expected to unlock up to USD3.5 billion in new funding from multilateral and bilateral creditors over the coming years. This in turn has bolstered investor confidence and facilitated the recent issuance of an USD800 million sovereign bond, which will refinance notes previously due in 2018. The authorities also successfully issued a USD600 million bond in early 2017 to fund an exchange offer for government-guaranteed notes, following announcements that an IMF programme was under consideration. Viewed together, recent capital markets exercises have alleviated any lingering near-term external refinancing risks, having extended the sovereign's nearest external bond maturity until after 2020. Prime Minister Khurelsukh took office in October 2017, following the ousting of the former prime minister and cabinet in a no- confidence vote in September. This political disruption led to a temporary postponement of the IMF's board meeting to discuss the first review of Mongolia's Extended Fund Facility, but this is now back on track, with the Fund having reached staff-level agreement on the first and second reviews in late-October. The economy is recovering. Real GDP rose by 5.8% in 9M17, up from 1.2% in 2016, due to a surge in investment tied to the underground development of the Oyu Tolgoi copper mine and a rebound in exports and private consumption. Fitch forecasts real GDP to rise by 4.5% in 2018, from 4.2% in 2017, bringing Mongolia's growth performance broadly in line with the 'B' median of 4.6%. The ongoing customs bottleneck at the Mongolia-China border has triggered a sharp deceleration in coal export volumes since July 2017, from record highs in 1H17. This introduces both downside and upside risk to Fitch forecasts, but is unlikely to derail the recovery given that coal export volumes remain well above their 2015-16 monthly average even at reduced throughput levels, and other key exports, such as copper, are only modestly impacted. Mongolia's 'B-' Foreign-Currency IDR also reflects the following key rating drivers: External finances remain weak despite recent improvements. Foreign reserves reached USD2.0 billion in November 2017, up from 1.3 billion at end-2016, supported by acceleration in FDI tied to large mining projects and other inflows. Fitch forecasts foreign reserve coverage will rise to 3.0x current external payments (CXR) by end-2017, up from 2.3x a year prior, but remain well below the 'B' category median of 3.8x. External interest service ratios are exceptionally high at an estimated 14.3% of CXR versus the 'B' category median of 3.5%, reflective of Mongolia's heavy reliance on external debt capital markets, although this reliance should moderate as multilateral and bilateral funding inflows increase. The country's high commodity export dependence (76% of CXR) and export concentration to China (75% of exports) also leave it vulnerable to external shocks, and constrain the ratings. Mongolia's recent history of sporadic leadership changes increases the potential for political shocks and sharp reversals in policy, but Fitch believes these risks are somewhat muted by the Mongolian People's Party overwhelming parliamentary majority ahead of elections in mid-2020. The more immediate risk, in the agency's view, is that stronger macro performance and the resurgence in external inflows dilute the authorities' drive and commitment to adhere to IMF reform targets. Overall capital adequacy of the Mongolian banking system should become clearer as a result of an ongoing asset-quality review being conducted as part of the IMF programme. Bank of Mongolia will start its supervisory review in December by applying its own two-year stress testing on individual banks and engaging with them to identify and rectify any potential capital shortfalls. The IMF has estimated bank capital needs could amount to 7% of GDP (15% of system-wide loans), from which up to 3.5% of GDP has been earmarked from public funds as a contingency. While the deployment of public funds for banking-sector recapitalisation would be a potential set-back to recent fiscal improvements, Fitch does not believe the estimated amount would pose a material funding constraint to the sovereign, nor is it sufficient in size to offset other positive developments across Mongolia's sovereign credit profile. Structural factors such as GDP per capita, governance indicators, and doing business rankings score above 'B' category peers and provide continued support to the rating. Mongolia's small population of roughly 3 million also suggests per capita incomes have the potential to rise dramatically over the longer term if the country can successfully harness its general natural resources endowments through strategic projects such as Oyu Tolgoi and Tavan Tolgoi, and deliver them more reliably via planned rail and other infrastructure connectivity enhancements. SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO) Fitch's proprietary SRM assigns Mongolia a score equivalent to a rating of 'B' on the Long-Term Foreign-Currency IDR scale. Fitch's sovereign rating committee adjusted the output from the SRM to arrive at the final Long-Term Foreign-Currency IDR by applying its QO, relative to rated peers, as follows: - External Finances: -1 notch, to reflect repeated bouts of external financing stress. Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three-year centred averages, including one year of forecasts, to produce a score equivalent to a Long-Term Foreign-Currency IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within Fitch criteria that are not fully quantifiable and/or not fully reflected in the SRM. RATING SENSITIVITIES The main factors that could lead to positive rating action, individually or collectively, are: - Continued implementation of credible and coherent macroeconomic policy-making that improves Mongolia's basic economic stability. - A track record of meeting stated fiscal targets, contributing to an improved outlook for government debt ratios. - Evidence of substantial improvement in the country's external liquidity position, for example through a build-up of foreign reserves. The main factors that could lead to negative action, individually or collectively, are: - Failure to remain current on IMF programme guidelines, which could heighten external financing risks. - Emergence of systemic financial stress. - Failure to maintain the GGGD/GDP ratio on a downward trajectory. KEY ASSUMPTIONS - IMF staff-level agreement on the first and second reviews receives board approval. - Customs bottleneck at Mongolia-China border does not deteriorate any further. The full list of rating actions is as follows: Long-Term Foreign-Currency IDR affirmed at 'B-'; Outlook Revised to Positive from Stable Long-Term Local-Currency IDR affirmed at 'B-'; Outlook Revised to Positive from Stable Short-Term Foreign-Currency IDR affirmed at 'B' Short-Term Local-Currency IDR affirmed at 'B' Country Ceiling affirmed at 'B-' Issue ratings on long-term senior unsecured foreign-currency bonds affirmed at 'B-' ================= S I N G A P O R E ================= MARCO POLO: Wins Scheme Creditors Support for Restructuring Plan ---------------------------------------------------------------- Tan Hwee Hwee at The Business Times reports that Marco Polo Marine has emerged as the first listed group to win support from both its noteholders and creditors towards taking severe haircuts in order to make way for new equity injection in this offshore and marine (O&M) downturn. BT relates that on November 16, the listed parent company and its key subsidiary, Marco Polo Shipyard Pte Ltd (MPSY), secured majority votes from scheme creditors in favor of the restructuring of SGD258 million in total liabilities. Of these, SGD202 million are bank loans and some SGD50 million relates to Marco Polo's Singdollar notes issuance, the report discloses. According to the report, the proposals for the scheme creditors call for 69 per cent and 95 per cent debt forgiveness from bank lenders and for contingent liabilities; in addition, trade debts are to be termed out for three more years. The listed company has also offered as part settlement to issue new shares at 3.5 Singapore cents per share to the scheme creditors, the report states. At the court meeting for the listed parent company, five of the seven scheme creditors representing SGD187.4 million or 75.5 per cent of the admitted claims for voting backed the restructuring plan, BT discloses. Separately, all 40 of MPSY's creditors answering for SGD4.68 million of the admitted claims for voting granted unanimous approval to its restructuring plan. In either cases, Marco Polo and its shipyard subsidiary have met the statutory requirement of securing at least 75 per cent in majority votes from their scheme creditors, the report notes. These came after holders of SGD50 million notes represented at the consent solicitation exercise (CSE) on November 15 voted in favor of extending 71 per cent debt forgiveness to the parent company and a partial debt-to-equity swap settlement, according to BT. Marco Polo has thus made progress in the restructuring of the SGD258 million liabilities, which is a precondition set for SGD60 million new equity to be injected by nine investors, the report states. BT says the positive outcome of its CSE and court meetings also buoyed hopes of a turning point in the restructuring for Singapore's battered O&M sector since two high-profile solvencies involving stock market darlings Ezra Holdings and Swiber Holdings. One analyst suggested that in Marco Polo's case, however, noteholders and bank lenders may have come to realise that they stand to yield better recovery by riding through the rest of the storm with the listed group, BT relates. That has called for steep haircuts and in this respect, M3 Marine's managing director, Mike Meade, noted that the values tabled under Marco Polo Marine's schemes have also been more aligned with a successful corporate work-out in the US, the report notes. BT says the family of chief executive Sean Lee agreed to dilute their equity stake to 6 per cent from 62 per cent to allow for debt-to-equity swaps and new investors to pick up significant shareholdings in the company. To Mr. Meade, this is closer to what was tabled for Tidewater's debt restructuring where existing shareholders had to make way for some USGD1.6 billion of Tidewater's then USGD2.1 billion liabilities to be converted into 95 per cent equity in the reorganised company, the report states. The Business Times understands that Marco Polo's restructuring plan has won the backing of at least two of the big three local banks answering for the bulk of senior loans. UOB as the largest bank lender to Marco Polo and an institutional investor in the SGD50 million Singdollar notes issuance, declined comment when approached by BT, citing requirements of Singapore's Banking Act. About Marco Polo Singapore-based Marco Polo Marine Ltd (SGX:5LY) -- http://www.marcopolomarine.com.sg/-- engages in marine logistics services. The Company's segments include Ship chartering services, which relates to charter hire activities, and Ship building and repair services, which relates to ship building and ship repair activities. Its shipping business consists of offshore support and marine logistics services, and relates to the chartering of offshore supply vessels (OSVs), which include anchor handling tug supply vessels (AHTS) for deployment in the regional waters, including the Gulf of Thailand, Malaysia, Indonesia and Australia, as well as the chartering of tugboats and barges to customers, which are engaged in the mining, commodities, construction, infrastructure and land reclamation industries. Its shipyard business relates to ship building, as well as the provision of ship maintenance, repair, outfitting and conversion services that are carried out through its shipyard in Batam, Indonesia. * SINGAPORE: SMEs Face Cash-Flow Squeeze Amid Payment Delays ------------------------------------------------------------ The Business Times reports that more small and medium-sized enterprises (SMEs) reported that they have finance-related issues, due mainly to delays in payment from customers, according to findings from the 2017 SME Development survey by DP Info. SMEs with finance-related issues jumped from 22 per cent in 2016 to 35 per cent this year, with the proportion increasing across all sectors, BT discloses. Sectors that are particularly affected include information and communications, transport and storage, as well as manufacturing. Among the 35 per cent of SMEs with finance-related issues, the proportion experiencing delays in payments from customers skyrocketed from 14 per cent last year to 81 per cent in 2017, BT relays. Other finance-related issues affecting SMEs include higher interest rates for bank loans at 29 per cent, and suppliers tightening credit access at 22 per cent, the report adds. "The gap between supplier terms and the credit given to customers, along with slower customer payments, is increasing the risk of cash flow and working capital problems," BT quotes Dev Dhiman, managing director, South-east Asia & Emerging Markets for Experian, parent company of DP Info, as saying. "However, delays and defaults can have a domino effect that causes more problems right through the SME ecosystem." According to BT, aside from finance-related issues, other findings from the survey indicate that SMEs are adjusting to the labor market. Concerns about manpower costs fell to 70 per cent this year, below the level it was when the foreign labor restrictions were introduced in 2012. This was down from 85 per cent registered in 2013, the report notes. There has also been a decline in the proportion of SMEs having difficulties hiring the staff they need, from 49 per cent in 2014 to 26 per cent in 2017, BT discloses. More than 2,500 SMEs participated in the annual survey, the report adds. ********* 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., Washington, D.C., USA. Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman, Editors. Copyright 2017. 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$775 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 215-945-7000 or Joseph Cardillo at 856-381-8268. *** End of Transmission ***