/raid1/www/Hosts/bankrupt/TCRAP_Public/171123.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

          Thursday, November 23, 2017, Vol. 20, No. 233


                            Headlines


A U S T R A L I A

CRIPROPERTY PTY: First Creditors' Meeting Set for Nov. 30
DANFX TRADE: High Court Appoints William Buck as Receivers
FIRSTMAC TRUST 3-2017: S&P Assigns Prelim BB Rating to E Notes
GATE CIVIL: Second Creditors' Meeting Set for Nov. 29
ILLAWARRA 2011-1: Fitch Affirms 'BBsf' Rating on Cl. E Notes

MIDWEST TRAFFIC: First Creditors' Meeting Set for Nov. 30
ORBITAL DISTRIBUTORS: Second Creditors' Meeting Set for Nov. 30
UTHER PUB: First Creditors' Meeting Set for December 1
WETFWW PTY: First Creditors' Meeting Scheduled for Dec. 1

* Moody's Says RMBS, ABS Delinquencies to Rise Moderately in 2018


C H I N A

BLUEFOCUS COMMUNICATION: Fitch Publishes B+ Long-Term IDR
BLUEFOCUS COMMUNICATION: Moody's Assigns B1 CFR; Outlook Stable
COUNTRY GARDEN: Turns to Mortgage Balance-ABS for Liquidity
FAR EAST HORIZON: Fitch Rates New USD Capital Securities BB
YANZHOU COAL MINING: S&P Alters Outlook to Pos. & Affirms BB- CCR


H O N G  K O N G

WTT INVESTMENT: Fitch Rates US$670MM Senior Unsecured Notes BB-


I N D I A

AAMEYA POLYMERS: CRISIL Assigns B+ Rating to INR10MM Cash Loan
AGRON LOGISTICS: ICRA Moves D Rating to Not Cooperating Category
ARJUN EDUCATIONAL: CRISIL Lowers Rating on INR5MM Term Loan to D
AVON ELASTOMERS: ICRA Withdraws B+ Rating on INR7.50cr Loan
B K EXPORTS: Ind-Ra Assigns B- LT Issuer Rating, Outlook Stable

BLUE DUCK: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating
BUDDHA SORTEX: ICRA Reaffirms B+ Rating on INR6.75cr Loan
CARAVEL LOGISTICS: Ind-Ra Cuts Long-Term Issuer Rating to B-
FRONTIER KNITTERS: CRISIL Raises Rating on INR20MM Loan to B+
GAJANAND FOODS: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating

GOLDEN GLOBE: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
KAMAL TIMBERS: Ind-Ra Migrates BB Isuer Rating to Non-Cooperating
KTL PVT: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
LAXMI COTTON: ICRA Reaffirms B+ Rating on INR8cr Loan
LEADE LIQUOR: CRISIL Lowers Rating on INR6.84MM LT Loan to 'D'

MADHUBAN BUILDERS: CRISIL Reaffirms D Rating on INR8MM Term Loan
MAHALAXMI FOOD: CRISIL Assigns B+ Rating to INR8MM Cash Loan
MALIEAKAL ELECTRONICS: CRISIL Ups Rating on INR3.5MM Loan to B+
MALWA AUTOMOBILES: Ind-Ra Migrates BB- Rating to Non-Cooperating
MAYUR SEEDS: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating

MINI DIAMONDS: CRISIL Lowers Rating on INR6MM Loan to 'D'
MOHAN TOBACCOS: Ind-Ra Puts B- LT Issuer Rating, Outlook Stable
NISHA ENTERPRISES: CRISIL Reaffirms B+ Rating on INR7MM Cash Loan
RR COTTONS: Ind-Ra Migrates B Issuer Rating to Non-Cooperating
PRAMANIK METAL: ICRA Moves B Rating to Not Cooperating Category

SANATAN MERCHANTS: Ind-Ra Affirms BB+ LT Issuer Rating
SEAWOOD MULTIPLE: CRISIL Assigns 'B' Rating to INR17MM Term Loan
SHIMLA AUTOS: CRISIL Lowers Rating on INR5MM Cash Loan to 'D'
SHRI AGRAWAL: ICRA Withdraws B+ Rating on INR21cr LT Loan
SHRINI SOFTEX: Ind-Ra Moves BB Issuer Rating to Non-Cooperating

SHYAM ENTERPRISES: ICRA Withdraws B+ Rating on INR9.49cr Loan
SWADESHI ALUMINIUM: CRISIL Assigns B Rating to INR23MM Cash Loan
TEJINDER KAUR: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating
VEDANTA RESOURCES: Moody's Hikes CFR to Ba3; Outlook Stable


I N D O N E S I A

ABM INVESTAMA: Tap Issue No Impact on BB- Bond Rating, Fitch Says
ABM INVESTAMA: Tap Issuance No Impact on Moody's Ba3 Rating


J A P A N

TAKATA CORP: Reaches Final Deal to Sell Assets to Key Safety
TOSHIBA CORP: Closer to End Dispute With Western Digital


M O N G O L I A

KHAN BANK: Fitch Affirms B- IDR; Outlook Revised to Positive


P A K I S T A N

PAKISTAN: S&P Assigns 'B' Rating to New USD Sr. Unsecured Notes
THIRD PAKISTAN: S&P Assigns Prelim 'B' Rating to US$-Denom. Sukuk


S O U T H  K O R E A

DOOSAN BOBCAT: Moody's Hikes CFR to Ba3; Outlook Stable


S R I  L A N K A

NATIONAL SAVINGS BANK: S&P Alters B+ ICR Outlook to Stable
SRI LANKA: S&P Alters Outlook to Stable & Affirms 'B+/B' SCR


X X X X X X X X

* Asia-Pacific Safest Region for Cover Pool Credit, Fitch Says


                            - - - - -


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


CRIPROPERTY PTY: First Creditors' Meeting Set for Nov. 30
---------------------------------------------------------
A first meeting of the creditors in the proceedings of
Criproperty Pty Ltd will be held at the offices of Cor Cordis,
Mezzanine Level, BGC Centre, 28 The Esplanade, in Perth, West
Australia, on Nov. 30, 2017, at 10:00 a.m.

Jeremy Joseph Nipps and Cliff Rocke of Cor Cordis were appointed
as administrators of Criproperty Pty on Nov. 17, 2017.


DANFX TRADE: High Court Appoints William Buck as Receivers
----------------------------------------------------------
On Nov. 14, 2017, the Supreme Court appointed Anthony Castley of
William Buck as receiver and manager over the assets of DanFX
Trade Pty Ltd, Daniel Farook Ali and associated entities.
Freezing orders were also made restraining the disposal of any
property (including money and securities) by Mr. Ali, DanFX
Trade, DanFX Investments Holdings Pty Ltd and D&S Properties Pty
Ltd.

The Australian Securities and Investments Commission has alleged
that Mr. Ali, through Dan FX, operated an unregistered managed
investment scheme that has raised approximately $13 million from
more than 200 investors.

ASIC commenced its proceedings in the Supreme Court for the
appointment of a receiver to identify and secure the assets of
the alleged scheme for the benefit of investors and creditors.
The orders were made on an ex parte basis on November 14 and
Mr. Ali consented to the continuation of those orders on
Nov. 21, 2017.

Mr. Castley is to provide a report to the court by Jan. 15, 2018.

The matter returns to the court on Dec. 6, 2017.

ASIC has also permanently banned Mr. Ali from providing financial
services or engaging in credit activity as a result of fraud
charges brought by the Queensland Director of Public Prosecutions
in 2012. Mr. Ali was sentenced to two and half years'
imprisonment, to be suspended after the first six months in
prison. This fraud conviction is unrelated to ASIC's current
proceedings and only came to ASIC's attention after reports to
ASIC about Mr. Ali's current investment scheme.

The charge stemmed from conduct that occurred between June 19,
2008 and Feb. 16, 2010, when Mr. Ali dishonestly used AUD30,000
provided to him to invest on behalf of eight investors. Instead
of investing the funds, they were used to pay for Mr Ali's own
personal expenses.

ASIC investigations into the current scheme are ongoing.


FIRSTMAC TRUST 3-2017: S&P Assigns Prelim BB Rating to E Notes
--------------------------------------------------------------
S&P Global Ratings assigned preliminary ratings to seven of the
eight classes of prime residential mortgage-backed securities
(RMBS) to be issued by Firstmac Fiduciary Services Pty Ltd. as
trustee for Firstmac Mortgage Funding Trust No.4 Series 3-2017.

The preliminary ratings reflect:

-- S&P views of the credit risk of the underlying collateral
    portfolio, including the fact that this is a closed
    portfolio, which means no further loans will be assigned
    to the trust after the closing date.

-- S&P views of the credit support that is sufficient to
    withstand the stresses it applies. Credit support for the
    rated notes comprises note subordination and excess spread,
    if any.

-- S&P's expectation that the various mechanisms to support
    liquidity within the transaction, including a liquidity
    reserve equal to 1.2% of the outstanding note balance and the
    principal draw function, are sufficient to ensure timely
    payment of interest.

-- The extraordinary expense reserve of A$150,000, funded from
    day one by Firstmac Ltd., available to meet extraordinary
    expenses. The reserve will be topped up via excess spread if
    drawn.

-- The fixed- to floating-rate interest-rate swap provided by
    Westpac Banking Corp. to hedge the mismatch between receipts
    from fixed-rate mortgage loans and the variable-rate RMBS.

A copy of S&P Global Ratings' complete report for Firstmac
Mortgage Funding Trust No.4 Series 3-2017 can be found on
RatingsDirect, S&P Global Ratings' Web-based credit analysis
system, at http://www.capitaliq.com.

  PRELIMINARY RATINGS ASSIGNED

  Class     Rating       Amount (AUD mil.)
  A-1       AAA (sf)     510.0
  A-2       AAA (sf)      30.0
  A-3       AAA (sf)      36.0
  B         AA (sf)        9.0
  C         A (sf)         6.0
  D         BBB (sf)       3.0
  E         BB (sf)        3.0
  F         NR             3.0
  NR--Not rated.


GATE CIVIL: Second Creditors' Meeting Set for Nov. 29
-----------------------------------------------------
A second meeting of creditors in the proceedings of Gate Civil
Pty Ltd has been set for Nov. 29, 2017, at 10:00 a.m. at the
offices of HLB Mann Judd (Insolvency WA), Level 3, 35 Outram
Street, in West Perth, West Australia.

The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Nov. 28, 2017, at 5:00 p.m.

Kimberley Stuart Wallman of HLB Mann Judd was appointed as
administrator of Gate Civil on Nov. 2, 2017.


ILLAWARRA 2011-1: Fitch Affirms 'BBsf' Rating on Cl. E Notes
------------------------------------------------------------
Fitch Ratings has affirmed nine classes of notes from four
Illawarra series transactions. One transaction consists of notes
backed by a pool of first-ranking Australian small-balance
commercial full-documentation mortgage loans and three
transactions consist of notes backed by a pool of first-ranking
Australian residential full-documentation mortgage loans. All
mortgages were originated by IMB Ltd, trading as IMB Bank, and
the notes were issued by BNY Trust Company of Australia Limited
in its capacity as trustee.

The four transactions are:
Illawarra Series 2011-1 CMBS Trust
Illawarra Series 2013-1 RMBS Trust
Illawarra Series IS Trust
Illawarra Series 2017-1 RMBS Trust

KEY RATING DRIVERS
The affirmations reflect Fitch's view that available credit
enhancement is sufficient to support the notes' current ratings
and the agency's expectations of Australia's economic conditions.
Credit quality and performance of the underlying loans have
remained strong since closing.

As of end-September 2017, 30+ days arrears for Illawarra 2013-1,
Illawarra IS and Illawarra 2017-1 were low at 0.18%, 0.10% and
0.11%, respectively which is substantially lower than the 3Q17
Fitch Dinkum RMBS Index 30+ day arrears of 1.02%. The Illawarra
2011-1 CMBS has no loans in arrears.

The transactions' performance has been strong, with Illawarra
2013-1 and Illawarra 2017-1, not experiencing any defaults or
losses since issuance, Illawarra IS having one loss that was
covered by lenders' mortgage insurance (LMI) and Illawarra 2011-1
CMBS having one loss that was covered by excess spread. LMI for
the RMBS transactions is provided by Genworth Financial Mortgage
Insurance Pty Limited (Insurer Financial Strength (IFS) Rating:
A+/Stable) and QBE Lenders' Mortgage Insurance Limited (IFS
Rating: AA-/Stable).

As per the APAC Residential Mortgage Rating Criteria, the default
model was not re-run for Illawarra 2013-1 or Illawarra 2017-1, as
they are conforming transactions where the outstanding ratings
are 'AAAsf'; do not have revolving periods; and a review of pre-
determined performance triggers on measures such as arrears,
losses, LMI, payment ratios, credit enhancement build-up and
draws on liquidity support facilities indicates that the
transactions display stable asset performance. The asset model
was run for Illawarra IS Trust. The portfolio credit model and
cash-flow model were run for Illawarra 2011-1 CMBS.

For Illawarra 2011-1 CMBS, Fitch applied the highest observed
two-year moving average (MA) prepayment rate of 23.6% to Fitch
high prepayment assumptions across all rating stress scenarios.
This was due to the highest five-year MA prepayment rate observed
being marginally lower than the highest two-year MA prepayment
rate since closing.

The portfolios have a weighted-average loan/value ratio of
between 50.6% (Illawarra 2013-1) and 63.8% (Illawarra 2017-1).
Each pool is geographically concentrated in New South Wales, with
a regional concentration in the Illawarra region, which has been
taken into account in Fitch analysis.

Illawarra IS has a 10-year revolving period of which seven years
remain. Fitch is of the view that the risks associated with the
long revolving period are commensurate with the ratings because;
IMB Bank has a stable product history, portfolio stratifications
have not changed significantly since initial issue and the
portfolio is performing in line with Fitch's expectations.

RATING SENSITIVITIES

Fitch does not expect the ratings to be affected by any
foreseeable change in performance. The prospect of downgrade is
remote, given the level of subordination to all rated notes, pool
performance and adequate excess spread.

The rating of the class A notes of Illawarra 2013-1, Illawarra IS
and Illawarra 2017-1 are LMI independent and therefore not
sensitive to downgrades of the LMI providers' ratings. The
ratings of the class AB notes of Illawarra 2017-1 are LMI
dependent and therefore sensitive to downgrades of the LMI
providers' ratings.

Impact on note ratings of increased defaults for Illawarra 2011-1
CMBS:
Notes: A / B / C / D / E
Rating: AAAsf / AAsf / Asf / BBBsf / BBsf
Increase defaults by 25%: A+sf / Asf / BBB+sf / BBBsf / BBsf
Increase defaults by 50%: Asf / A-sf / BBB+sf / BBB-sf / BBsf

Impact on note ratings of decreased recoveries for Illawarra
2011-1 CMBS:
Notes: A / B / C / D / E
Rating: AAAsf / AAsf / Asf / BBBsf / BBsf
Reduce recoveries by 25%: A+sf / Asf / BBB+sf / BBB-sf / BBsf
Reduce recoveries by 50%: Asf / A-sf / BBBsf / BB+sf / BBsf

Impact on note ratings of multiple factors for Illawarra 2011-1
CMBS:
Notes: A / B / C / D / E
Rating: AAAsf / AAsf / Asf / BBBsf / BBsf
Increase defaults by 25%, reduce recoveries by 25%: Asf / A-sf /
BBBsf / BBB-sf / BBsf

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. There were no findings that were
material to this analysis. Fitch has not reviewed the results of
any third-party assessment of the asset portfolio as part of its
ongoing monitoring.

As part of its ongoing monitoring, Fitch reviewed a small
targeted sample of IMB Bank's origination files and found the
information contained in the reviewed files to be adequately
consistent with the originator's policies and practices and the
other information provided to the agency about the asset
portfolio.

Overall, Fitch's assessment of the asset pool information relied
upon for the agency's rating analysis according to its applicable
rating methodologies indicates that it is adequately reliable.

VARIATIONS FROM CRITERIA

Fitch has applied three variations from its 'SME Balance Sheet
Securitisation Rating Criteria', dated 3 March 2017.

Fitch has assumed a minimum one-year default probability of 0.5%
in its obligor concentration stresses, which is below the minimum
one-year default probability of 1.0% assumed in the criteria.
However, Fitch is comfortable with this assumption, given the
agency's expectations for the next five years, quarter-end June
2017 impairment rates and insolvency statistics of commercial
exposures provided by central banks and prudential bank
regulators. IMB Bank-rated transactions have historically shown
lower levels of defaults than experienced by commercial loan
portfolios in Australia.

Fitch decided not to apply a margin compression, as the
transaction features a threshold rate mechanism that enables the
underlying variable mortgage interest rates to be set at a level
that ensures sufficient collections are available to meet the
required payments for subsequent distribution dates.

Fitch has set annualised senior expenses at 46bp of the
collateral balance, capturing the primary and special-service
fee, as the servicing process and costs for the underlying
collateral are more in line with a pool of residential mortgages
compared with SME loans. The criteria assumes a primary servicing
fee of 15bp, special-servicing fees of 70bp and recovery
incentive fees that are imbedded in Fitch's recovery assumptions
for the portfolio.

There was no impact to the ratings as a result of these
variations to criteria.

SOURCES OF INFORMATION

The information below was used in the analysis:
Loan-by-loan data provided by IMB Bank as at 30 September 2017
Transaction reporting data provided by IMB Bank as at 30
September 2017
Statistics - Quarterly Authorised Deposit-taking Property
Exposures released by Australian Prudential Regulation Authority
on 29 August 2017

The issuer has informed Fitch that not all relevant underlying
information used in the analysis of the rated notes is public.

Full list of rating actions; note balances as at September 2017
reporting:

Illawarra Series 2011-1 CMBS Trust:
AUD22.8 million Class A (AU3FN0014007) notes affirmed at 'AAAsf';
Outlook Stable
AUD1.8 million Class B (AU3FN0014015) notes affirmed at 'AAsf';
Outlook Stable
AUD3.0 million Class C (AU3FN0014023) notes affirmed at 'Asf';
Outlook Stable
AUD3.4 million Class D (AU3FN0014031) notes affirmed at 'BBBsf';
Outlook Stable
AUD0.7 million Class E (AU3FN0014049) notes affirmed at 'BBsf';
Outlook Stable

Illawarra Series 2013-1 RMBS Trust:
AUD71.2 million Class A (AU3FN0018784) notes affirmed at 'AAAsf';
Outlook Stable

Illawarra Series IS Trust:
AUD441.0 million Class A (AU3FN0022927) notes affirmed at
'AAAsf'; Outlook Stable

Illawarra Series 2017-1 RMBS Trust:
AUD254.0 million Class A (AU3FN0035879) notes affirmed at
'AAAsf'; Outlook Stable
AUD12.0 million Class AB (AU3FN0035887) notes affirmed at
'AAAsf'; Outlook Stable


MIDWEST TRAFFIC: First Creditors' Meeting Set for Nov. 30
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Midwest
Traffic Controllers Pty Ltd will be held at the Boardroom,
Bhagwan Marine, 154 Connell Road, in West End, West Australia, on
Nov. 30, 2017, at 11:00 a.m.

Jeremy Joseph Nipps and Cliff Rocke of Cor Cordis were appointed
as administrators of Midwest Traffic on Nov. 20, 2017.


ORBITAL DISTRIBUTORS: Second Creditors' Meeting Set for Nov. 30
---------------------------------------------------------------
A second meeting of creditors in the proceedings of Orbital
Distributors Pty Ltd has been set for Nov. 30, 2017, at 10:30
a.m. at the offices of BPS Reconstruction and Recovery
Level 5, Suite 6, 350 Collins Street, in Melbourne, Victoria.

The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the
Company be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Nov. 29, 2017, at 4:00 p.m.

Simon Patrick Nelson of BPS Reconstruction was appointed as
administrator of Orbital Distributors on Oct. 26, 2017.


UTHER PUB: First Creditors' Meeting Set for December 1
------------------------------------------------------
A first meeting of the creditors in the proceedings of Uther Pub
Pty Ltd will be held at the offices of Heard Phillips Chartered
Accountants, Level 12, 50 Pirie Street, in Adelaide, South
Australia, on Dec. 1, 2017, at 11:00 a.m.

Andrew Heard and Mark Lieberenz of Heard Phillips were appointed
as administrators of Uther Pub on Nov. 21, 2017.


WETFWW PTY: First Creditors' Meeting Scheduled for Dec. 1
---------------------------------------------------------
A first meeting of the creditors in the proceedings of WETFWW Pty
Ltd will be held at the offices of Romanis Cant, Level 2, 106
Hardware Street, in Melbourne, Victoria, on Dec. 1, 2017, at
11:00 a.m.

Anthony Robert Cant and Renee Sarah Di Carlo of Romanis Cant were
appointed as administrators of WETFWW Pty on Nov. 21, 2017.


* Moody's Says RMBS, ABS Delinquencies to Rise Moderately in 2018
-----------------------------------------------------------------
Moody's Investors Service says that the delinquencies for
outstanding Australian residential mortgage-backed securities
(RMBS) and asset-backed securities (ABS) will increase moderately
in 2018 from their current low levels because of the residual
effects of the downturn in the mining sector, while the credit
quality of covered bonds will remain strong.

"The balance of risks in new RMBS deals will also change, as
bank-sponsored RMBS issued in 2018 will include a lower
proportion of interest-only, high loan-to-value ratio (LVR) and
housing investment loans, following regulatory measures to curb
the origination of riskier mortgages," says Alena Chen, a Moody's
Vice President and Senior Analyst.

"However, as the regulatory measures do not apply to non-bank
lenders, Moody's expect RMBS issued by such lenders to include a
higher proportion of interest-only and housing investment loans
than was typically the case in the past," says Chen. "This will
be partly offset with a lower proportion of alternative
documentation loans and loans to borrowers with adverse credit
history in the non-bank, non-conforming RMBS portfolios," she
adds.

"The overall credit quality of the RMBS market will be strong,
but there will be accordingly some divergence between RMBS
portfolios originated by the banks and those originated by non-
bank financial institutions," says Chen.

Moody's conclusions are contained in its just-released "RMBS, ABS
and covered bonds -- Australia, 2018 outlook - Delinquencies will
increase moderately from low levels".

"We also expect mortgage delinquencies in outstanding RMBS deals
-- as indicated -- to increase moderately from their low levels
because of the continued after-effects of weaker conditions in
states reliant on the mining industry and less favourable housing
market and income dynamics," says Chen.

Furthermore, these after-effects and higher exposure to retail
consumer loans will drive delinquencies in outstanding auto ABS
deals moderately higher in 2018.

The proportion of auto loans backing Australian ABS that were at
least 30 days delinquent had increased to 1.6% in August 2017
from 1.4% in August 2016.

The downturn in states reliant on the mining industry -- such as
Western Australia -- has been pushing up delinquencies in 2017
and Moody's expect this trend to continue into 2018.

However, the performance of auto loans from regions not reliant
on the mining sector will be relatively stronger in 2018,
ensuring the overall increase in delinquencies is moderate.

Meanwhile, the ABS sector in Australia will continue to expand,
with a greater variety of asset types to be securitized in 2018.

The credit quality of Australian and New Zealand covered bonds
will remain strong in 2018, underpinned by the high credit
quality of issuers and the strong sovereign credit quality of
Australia and New Zealand. In addition, Moody's expect the credit
quality of mortgages in cover pools to improve in 2018 from
already good levels, because of regulatory measures introduced in
both Australia and New Zealand to limit the origination of
riskier loans.



=========
C H I N A
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BLUEFOCUS COMMUNICATION: Fitch Publishes B+ Long-Term IDR
---------------------------------------------------------
Fitch Ratings has published China-based BlueFocus Communication
Group Co. Ltd's (BlueFocus) Long-Term Foreign- and Local-Currency
Issuer Default Ratings (IDRs) of 'B+'. The Outlook is Stable. The
agency has simultaneously assigned an expected 'B+(EXP)' with a
Recovery Rating of 'RR4' to the proposed senior unsecured notes.
The notes are issued by its wholly owned subsidiary, Blue Skyline
Communication Limited, and unconditionally and irrevocably
guaranteed by BlueFocus.

The 'RR4' Recovery Rating on the notes reflects Fitch's bespoke
calculations, which show recovery in the event of a default would
be average, at 31%-50%. The final rating of the notes is
contingent upon the receipt of final documents conforming to
information already received. The proceeds from the proposed
senior secured notes will be used for equity investment,
refinancing of interest-bearing debt and general corporate
purposes.

KEY RATING DRIVERS

Strong Position in China: BlueFocus was the third-largest
advertising agency in the Chinese market and the largest public
relations agency in Asia-Pacific in 2015 and 2016, according to
R3 Worldwide and PRWeek, respectively. The company is also the
largest domestic marketing communications services group.
However, it is still significantly smaller than global market
leaders such as WPP plc (BBB+/Stable), Interpublic Group of
Companies, Inc. (IPG, BBB/Positive), Omnicom Group Inc., Publicis
Groupe SA and Dentsu Inc.

Rapid Digital Growth: Fitch expect BlueFocus to remain a main
beneficiary of the steady growth in China's advertising market
and greater advertiser spending on mobile formats. Mobile is
already the leading ad spend channel in the country. iResearch
forecasts mobile advertising to grow at a CAGR of 40% in 2016-
2019, to account for 77% of China's total internet ad spend in
2019. Fitch also expect mobile programmatic advertising to be
more mainstream in China's online display advertising, supporting
BlueFocus's demand-side platform growth.

Weaker Margins and Cash Generation: BlueFocus's weaker
profitability and free cash flow (FCF) generation weigh on its
ratings when compared with the investment-grade global majors.
Its operating EBITDA margin was 7.0% in 2016, versus WPP's 18.3%
and IPG's 14%. The lower profitability was due to greater
competition in China's agency business and higher revenue
contribution from digital advertising and outbound business.
Fitch expect BlueFocus's margins to improve gradually, driven by
rising programmatic buying revenue and cost savings from
centralised media buying.

However, its wide margin gap against the leading global peers may
remain until the company has achieved much larger scale and
broader geographic diversity. Even if leverage were lower, Fitch
would be likely to rate BlueFocus at least one rating category
lower than WPP and IPG.

High Leverage: The ratings reflect Fitch's expectations that
BlueFocus's funds flow from operations (FFO) adjusted leverage
may remain over 5.0x in the next two to three years. This measure
is at least 1x (one turn) higher than the debt/EBITDA measure
used by management, as it includes adjustments for tax paid,
capitalisation of operating leases, and for some for non-cash
items.

The company's FFO-adjusted leverage of 8.3x in 2016 was much
higher than the average of around 3.5x for the top-four global
advertising holding companies. Fitch expect EBITDA growth to re-
accelerate, however total debt may remain high and FFO adjusted
leverage may stay above 5.0x in the next two to three years, as
capex on software systems and technology knowhow will be high and
M&A may consume cash. Fitch expect total adjusted debt to exceed
CNY10 billion by end-2018 (2016: CNY7.3 billion).

Acquisitive in Nature: The smaller scale of BlueFocus compared
with the global majors may affect its ability to deleverage
following large M&A transactions. However, management's
commitment to a mid-term debt/EBITDA target of under 4x - and its
track record in identifying strategic opportunities and avoiding
expensive bidding wars, coupled with re-acceleration of EBITDA
growth - should help restore credit metrics over the medium term.
BlueFocus has been built through acquisitions, as was the case
with global peers.

The company will remain acquisitive, as it will continue to gain
new customers, new skills, and expand overseas. It will also buy
out minority stakes in its key subsidiaries, which is credit
positive. Nevertheless, Fitch believe that despite the company's
strengths, medium-term gearing target of debt/EBITDA 4x - which
equates to over 5x for Fitch's preferred FFO adjusted leverage
metric - is too high to rate BlueFocus in the 'BB' category.

Smaller Scale; Lower Geographical Diversity: BlueFocus's ratings
reflect its smaller scale and lower geographical diversity versus
the investment-grade global majors - WPP, Omnicom, Publicis, IPG
and Dentsu. Its scale is approaching that of MDC Partners. In
2016, most of BlueFocus's revenue was derived from China, with
only 13% from overseas. International revenue accounted for 38%
of its 2016 revenue, including outbound business from Chinese
advertisers on Facebook and Google, but outbound business has
very thin margins.

DERIVATION SUMMARY

BlueFocus's ratings reflect its strong market position in the
marketing communications services sector in China, and the steady
growth of the domestic advertising services. However, Fitch
expect leverage to remain high due to a greater spend on capex
and potential future acquisitions. The ratings also reflect the
company's scale and weaker profitability than the leading global
advertising holding companies with investment-grade ratings, such
as WPP (BBB+/Stable) and IPG (BBB/Positive).

KEY ASSUMPTIONS

Fitch's key assumptions within Fitch rating case for the issuer
include:
- revenue CAGR of 31% in 2017-2020, driven by mobile and social
   advertising in China
- gradual improvement in EBITDA margin, driven by favourable
   changes in sales mix and cost savings
- annual capex of some CNY280 million in 2017-2020
- annual spending of CNY1.2 billion-2.3 billion on M&A in 2017-
   2020
- dividend payout ratio of 10% in 2017-2020

Recovery rating assumptions:
- post-default operating EBITDA of CNY725 million
- going-concern EBITDA multiple of 6.0x, reflecting BlueFocus's
   strong market position in China, compared with the median
   broadcasting and media multiple of reorganisation enterprise
   value/forward EBITDA of 5.5x
- 10% administrative claims
- issuance of proposed US dollar unsecured notes

Based on Fitch calculation of the going-concern value, after
administrative claims of 10%, Fitch estimate the recovery rate of
the offshore senior unsecured debt in the event of a default to
be 37%, which corresponds to a Recovery Rating of 'RR4'.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
- significant increase in scale and geographical diversification
- operating EBITDA margin sustained above 10%
- FFO adjusted leverage sustained below 4.0x
- FFO fixed coverage sustained above 4.0x

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
- substantial weakening of the market positions of its key
   products and services
- significant M&A that negatively affect the operations or the
   business profile
- operating EBITDA margin sustained below 7.0%
- FFO adjusted leverage sustained above 5.5x
- FFO fixed coverage sustained below 3.0x

LIQUIDITY

Adequate Liquidity: BlueFocus's readily available cash of CNY1.8
billion at end-2016 was insufficient to meet its short-term debt
maturities of CNY3.1 billion. Nevertheless, its liquidity
position is strengthened by the CNY1.7 billion equity proceeds
received in February 2017. In addition, the company had
unutilised credit facilities of CNY640 million at end-June 2017.
It also received approval to issue CNY2.5 billion of short-term
notes, of which CNY500 million were issued in early August 2017.
Successful issuance of the proposed US dollar bond will improve
liquidity.

FULL LIST OF RATING ACTIONS

BlueFocus Communication Group Co. Ltd
-- Long-Term Foreign-Currency IDR published at 'B+' with a
    Stable Outlook
-- Long-Term Local-Currency IDR published at 'B+' with a Stable
    Outlook

Blue Skyline Communication Limited
-- Proposed US dollars senior unsecured notes assigned an
    expected rating of 'B+/RR4(EXP)'


BLUEFOCUS COMMUNICATION: Moody's Assigns B1 CFR; Outlook Stable
---------------------------------------------------------------
Moody's Investors Service has assigned a first-time B1 corporate
family rating (CFR) to BlueFocus Communication Group Co., Ltd.

At the same time, Moody's has assigned a B1 senior unsecured
rating to the proposed senior notes to be issued by Blue Skyline
Communication Limited and guaranteed by BlueFocus Communication
Group Co., Ltd. and some of its offshore subsidiaries.

The rating outlook is stable.

The bond rating reflects Moody's expectation that BlueFocus will
complete the bond issuance on satisfactory terms and conditions,
including proper registrations with the National Development and
Reform Commission and the State Administration of Foreign
Exchange in China (A1 stable).

The proceeds from the proposed issuance will be used to refinance
interest-bearing debt and for general corporate purposes.

RATINGS RATIONALE

"The B1 rating reflects BlueFocus' long track record and
leadership in China's public relations/advertising industry, its
capabilities especially in mobile and digital with high growth
opportunities, its growing global footprint, as well as its
diversified blue chip customer base which generates steady
cashflows," says Gloria Tsuen, a Moody's Vice President and
Senior Analyst.

"The rating also reflects the company's acquisitive strategy and
high investment needs in a rapidly changing industry, which
result in high leverage and modest margins and liquidity," adds
Tsuen, who is also the lead analyst for BlueFocus.

Founded in 1996, BlueFocus is a leading communication group
providing public relations (PR), marketing and advertising
services, and the only Chinese company ranking among the global
top ten holding companies in 2016, according to the statistics of
Warc 100.

BlueFocus has a strong portfolio of domestic and international
customers, including some of China's fastest growing companies
with large marketing budgets, such as Tencent Holdings Limited
(A2 positive), Baidu Inc. (A3 negative), and JD.com, Inc. (Baa3
positive). At the same time, revenue concentration is low, as its
top five largest customers accounted for only 17% of revenue in
2016.

As an integrated advertising, marketing and communications
agency, BlueFocus has the ability to provide turnkey solutions
that cater to and underpin its long-term relationships with large
corporate customers. In particular, the company has gained a
growing share of its customers' marketing budgets because of its
widening service offerings and ability to cross-sell, in addition
to its growing scale and solid execution.

BlueFocus is diversified across multiple industries, including
gaming, technology, consumer products, consumer electronics,
automotive, property, and financial services. Such
diversification helps mitigate cyclicality in any one industry.

Importantly, BlueFocus has benefited from the shift in the market
to digital advertising from traditional media. It has made
significant investments and acquisitions to grow its digital
offerings and capabilities over the past few years, especially in
mobile advertising. It derived 82% of its revenue from digital
advertising in 2016.

BlueFocus has developed a significant scale in digital
advertising, which lowers procurement costs for media resources
for its customers and also helps it gain access to data on key
online advertising platforms such as Baidu, Facebook and Google
(Alphabet Inc., Aa2 stable). Such access -- usually limited to
only the largest media buyers -- allows it to conduct data
analytics and as a result deliver more cost-effective solutions
for its customers.

At the same time, the shift to digital advertising has dented
BlueFocus' profitability, as the business model tends to have
lower margins and also as the company has had to grow through
acquisitions. While the company's revenue grew at a compound
annual growth rate (CAGR) of 51% between 2013 and 2016, its
adjusted EBITDA margins declined to 7.6% in 2016 from 18.0% in
2013.

However, Moody's expects BlueFocus' margins to stabilize in the
next 1-2 years at about 8%-9%, due to the company's scale and
widening service offerings, and as it integrates its
acquisitions.

Nevertheless, BlueFocus will need to continue making significant
investments to further build its digital capabilities, capture
new opportunities and maintain its leadership position.

Acquisitions and investments increased the company's leverage --
as measured by adjusted debt/EBITDA -- to 6.9x in 2016 from 1.2x
in 2013. Moody's expects BlueFocus' leverage to decline to 5.2x
by 2018 and 4.7x by 2019, driven by an expected 30% CAGR in
adjusted EBITDA between 2016 and 2019.

The increased EBITDA will also translate into improved cashflow
streams. After working capital, Moody's expect BlueFocus'
cashflow from operations to be around RMB475 million in 2017,
growing to around RMB600 million in 2018 and RMB800 million in
2019.

An investment-intensive growth strategy entails execution and
financial risks, and BlueFocus' writedowns totaled RMB1.1 billion
in 2015 and 2016. However, it seeks to reduce some of the
associated risks by structuring most of its acquisitions with
earnouts contingent upon multi-year profit targets being met.

BlueFocus' liquidity position is modest. At the end of September,
it had RMB2.1 billion in short-term debt and Moody's estimates it
will have RMB1.5 billion in acquisition and dividend payments due
in the next 12 months. The company should be able to meet these
obligations combining its RMB2.0 billion in cash holdings with
operating cash flow and refinancing.

BlueFocus' senior unsecured bond rating is not affected by
subordination to claims at the operating company level. This is
because Moody's does not view claims at the operating company
level as material, especially as the majority of claims will
remain at the holding company.

The stable rating outlook reflects Moody's expectation that
BlueFocus will maintain its strong position in China's PR and
advertising market and continue to grow internationally, without
jeopardizing its liquidity and financial profile.

Upward rating pressure could arise if BlueFocus sustains adjusted
EBITDA margins above 10% and total debt/EBITDA below 4.5x. An
upgrade would also require a demonstrated commitment to
conservative financial policies in terms of acquisitions,
investments and dividends.

Downward rating pressure could arise if BlueFocus' adjusted
EBITDA margins continue to decline, or its adjusted debt/EBITDA
remains above 6x. A deterioration in the company's liquidity
profile, or significant debt-funded acquisitions, investments or
dividends could also result in negative rating actions.

The principal methodology used this rating was Business and
Consumer Service Industry published in October 2016.

Established in 1996 and headquartered in Beijing, China,
BlueFocus Communication Group Co., Ltd provides one-stop end-to-
end brand management and marketing services, mainly to large
corporations. It has been listed on the Shenzhen Stock Exchange
since 2010.

BlueFocus has operations in more than 10 countries, with 5,000
employees and 100 offices across China, Hong Kong, Singapore,
North America and Europe.


COUNTRY GARDEN: Turns to Mortgage Balance-ABS for Liquidity
-----------------------------------------------------------
Reuters reports that Chinese developers such as China Vanke and
Country Garden are increasingly turning to the securitisation
market as an alternative fund-raising channel as the onshore bond
market remains mostly inaccessible.

According to Reuters, property companies are in particular
stepping up the securitisation of receivables from property
sales, providing them with funds to develop other projects.

Reuters relates that the securities took off when Chinese
regulators made it harder for developers to sell onshore
corporate bonds late last year in a bid to help cool an
overheating real estate market.

The issuing of such products more than tripled in the first seven
months of this year from a year ago, Reuters discloses citing
data by China Securities Research.

More than 11 Chinese developers have issued or announced plans
this year to issue securities backed by sales receivables,
including China Vanke, Greentown China, and the state-owned
Beijing Capital Land, up from around six last year, the report
notes.

Developers typically record revenue in their books 12-24 months
after contracted sales, when they actually transfer the property
ownership to the buyers and pocket the proceeds. The asset-backed
securities allow them to cash in on those receivables early.

"Chinese policies often change. If you rely on a simple channel,
once policy changes, it will affect our cashflow so we have to
explore other channels," said an official of Greentown, which
issued CNY1.6 billion worth of the securities this month,
referring to the crackdown on debt. The official requested
anonymity because he was not authorized to speak to media,
Reuters notes.

Beijing Capital said that the securities provided a cheaper
financing option for the company, the report adds. Vanke said it
considered the securities to be low cost and low risk.

Country Garden Holdings Company Limited is an investment holding
company principally engaged in the sales of properties. The
Company operates its business through five segments: Property
Development segment, Construction Fitting and Decoration segment,
Property Investment segment, Property Management segment and
Hotel Operation segment. The Company's subsidiaries include Wuhan
Country Garden Lianfa Investment Co., Ltd, Jurong Country Garden
Property Development Co., Ltd and Chuzhou Country Garden Property
Development Co., Ltd.

As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 2, 2017, S&P Global Ratings said that it has reviewed its
senior unsecured issue-level ratings on Country Garden Holdings
Co. Ltd. (BB/Positive/--) that were labeled as "under criteria
observation" (UCO) after publishing its revised issue ratings
criteria, "Reflecting Subordination Risk In Corporate Issue
Ratings," on Sept. 21, 2017. S&P said, "With our criteria review
complete, we are removing the UCO designation from these ratings
and are lowering our issue rating on Country Garden's senior
unsecured debts to 'BB-' from 'BB'."


FAR EAST HORIZON: Fitch Rates New USD Capital Securities BB
-----------------------------------------------------------
Fitch Ratings has assigned Far East Horizon Limited's (BBB-
/Stable) proposed US dollar subordinated perpetual capital
securities an expected 'BB(EXP)' rating. The securities will be
issued by King Talent Management Limited, an SPV wholly owned by
Far East Horizon, and will be irrevocably and unconditionally
guaranteed by Far East Horizon.

Far East Horizon plans to use the proceeds of the proposed
securities for working capital and general corporate purposes.
The final rating and equity credit assigned to the securities are
contingent upon the receipt of final documents conforming to
information already received.

The securities constitute direct, unsecured and subordinated
obligations of Far East Horizon, and will rank pari passu among
themselves and junior to its senior securities. The securities
have no maturity date and holders of the securities do not have
the right to sell the securities back to the issuer. King Talent
has full discretion to defer coupon payment and there are no
limits to the number of times the coupon may be deferred. The
securities will have look-back provisions starting from 2027 and
the distribution rate will be reset from 2022. The securities
also have a step-up provision which could start from 2037.

Far East Horizon is the fifth-largest Chinese leasing company
overall and is among the largest independent leasing companies in
China by assets.

KEY RATING DRIVERS

The expected 'BB(EXP)' rating on Far East Horizon's subordinated
perpetual capital securities is two notches below the company's
Issuer Default Rating (IDR) of 'BBB-', reflecting the securities'
coupon deferral (one notch) and deep subordination (one notch),
which result in higher non-performance and lower recovery
prospects in a liquidation or bankruptcy scenario relative to the
senior obligations.

Fitch expects to afford the securities 50% equity credit until
2022, when equity credit will reduce to 0% because it will be
within five years of the look-back provisions starting from 2027.
The instrument's rating will continue to be two notches below the
IDR in line with its ongoing subordination and deferral features.
This is in accordance with Fitch's 'Non-Financial Corporates
Hybrids Treatment and Notching Criteria' for hybrids that have
deep subordination, full discretion to defer coupons for at least
five years, limited events of default and permanence.

Discussion with Far East Horizon indicates the company is
committed to maintaining the stability of the capital structure
and it intends to keep the new hybrid security as a permanent
part of the group's capital structure as the securities'
documentation contains non-binding replacement language.

For more details on Far East Horizon's ratings and credit
profile, see Fitch Publishes Far East Horizon's 'BBB-' Rating,
dated 21 March 2017.

RATING SENSITIVITIES

Any changes to the rating of the securities would be directly
correlated to movements in Far East Horizon's IDR, which is based
on its standalone profile. Any material change in Far East
Horizon's liability structure that would lead Fitch to believe
that the loss severity of the securities has increased could lead
to wider notching.

An upgrade to the IDR is not probable in the short term. However,
a major improvement in Far East Horizon's funding profile,
including securing a stable funding pool and extensive
advancement in its market status, could result in a rating
upgrade.

The IDR may be downgraded if there is an opportunistic shift in
Far East Horizon's business model towards greater risk-taking
without a commensurate increase in risk buffers. China's
operating environment is developing and is less stable, which
could limit an improvement in the company's credit strength and
potentially undermine its perceived funding strengths.


YANZHOU COAL MINING: S&P Alters Outlook to Pos. & Affirms BB- CCR
-----------------------------------------------------------------
S&P Global Ratings revised the outlook on Yanzhou Coal Mining Co.
Ltd. to positive from stable. S&P said, "At the same time, we
affirmed our 'BB-' long-term corporate credit rating on the
China-based coal producer. We also affirmed our 'BB-' issue
ratings on the two outstanding senior unsecured notes and our
'B+' issue rating on the outstanding senior unsecured perpetual
securities that the company guarantees."

"We revised the outlook to positive after Yanzhou Coal reported
financial results for the first nine months of 2017 that were
above our expectations, primarily due to substantial increases in
coal prices. We expect Yanzhou Coal's financial metrics to
improve materially in the next 12 months on favorable industry
trading conditions, increasing sales volumes, and declining
capital expenditure."

Coal prices saw a significant rebound from the second half of
2016 due to production cuts by Chinese miners, in accordance with
supply-side reform measures taken by Chinese authorities. S&P
said, "We expect the reforms to continue in the next 12 months,
leading to a better supply and demand balance in the coal
industry. This will support coal prices and aid Yanzhou Coal's
deleveraging process.

"We forecast that the company's coal sales volume will grow by
20%-25% per annum year-over-year in 2017-2018. The significant
volume growth is due to the ramp-up of new mines and the
consolidation of Coal & Allied Industries Ltd., an Australia-
based coal producer acquired in September 2017. We also expect
Yanzhou Coal's acquisition appetite to reduce in the next two to
three years as the company's capacity has already reached its
13th five-year internal target of 150 million tons, following the
Coal & Allied acquisition. As such, we foresee the company's
capital spending will decline, and its discretionary cash flow
will turn to positive from 2017 onwards."

At the same time, Yanzhou Coal's parent, Yankuang Group, is
taking initiatives to improve its business and financial
performance. The parent is closing down loss-making chemical
subsidiaries or putting them up for sale. S&P believes this will
enhance the parent's profitability and reduce its debt burden.

S&P's rating on Yanzhou Coal includes two notches of uplift due
to extraordinary government support. S&P believes there is a
moderately high likelihood that the government of Shandong
province would extend extraordinary support to the company if
needed based on the following company characteristics:

-- Important role to the government. Yanzhou Coal is one of the
    largest state-owned enterprises (SOE) in Shandong province
    and one of the largest coal producers in China. As one of the
    first coal companies that expanded outside of China, it plays
    an important role in helping the government to secure more
    coal resources worldwide. Further, Yanzhou Coal is one of the
    coal companies identified by the government to be a
    consolidator of the segmented coal industry in China.

-- Strong link with the government. The Shandong provincial
    government owns a 56.6% stake in Yanzhou Coal via its 100%
    ownership in Yankuang Group. In our view, the local
    government has strong influence over Yanzhou Coal's strategy
    and financial planning through Yankuang Group.

S&P said, "The positive outlook reflects our view that the
Chinese coal industry will see an improving supply and demand
balance in the next 12 months, benefiting from supply-side
reform. Therefore, we expect Yanzhou Coal's cash flow and
leverage to improve on firmer coal prices and increasing sales
volumes. By our estimates, its debt-to-EBITDA ratio will fall
below 5.0x in 2018. We also believe Yanzhou Coal's likelihood of
receiving extraordinary government support will remain unchanged
in the next 12-24 months. Moreover, we view Yankuang Group's
disposal of non-profitable subsidiaries will help strengthen the
group's profitability and cash flow. Furthermore, we don't expect
any large-scale debt-funded acquisition in the next 12-24 months.

"We may upgrade Yanzhou Coal if the company's deleveraging trend
continues. An indication of this would be if Yanzhou Coal's debt-
to-EBITDA ratio is sustained at below 5.0x.

"We could revise the outlook back to stable if the improvement in
Yanzhou Coal's financial metrics reversed. This could happen due
to a significant drop in coal prices or much higher-than-expected
debt being raised to fund expansion."



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


WTT INVESTMENT: Fitch Rates US$670MM Senior Unsecured Notes BB-
---------------------------------------------------------------
Fitch Ratings has assigned WTT Investment Limited's (WTT)
US$670 million 5.5% senior unsecured notes due 2022 a final
rating of 'BB-'. The Recovery Rating on the notes is 'RR3'. The
final rating follows the receipt of documents conforming to
information already received and is in line with the expected
rating assigned on November 7, 2017.

The notes are rated one notch higher than WTT's Long-Term
Foreign-Currency Issuer Default Rating (IDR) of 'B+', reflecting
above-average recovery prospects in the event of a default as
indicated by the 'RR3' Recovery Rating. The Outlook is Positive
on WTT's IDR. WTT is an investment holding company which holds a
100% stake in Hong Kong-based WTT HK Ltd.

The notes are guaranteed by most of the key operating
subsidiaries, and are subordinated to any future secured debt of
the issuer or its subsidiaries including the proposed USD50
million (HKD390 million) senior secured revolving credit
facility. The notes are structurally subordinated to any future
debt at some non-guarantor subsidiaries which represent
approximately 3% and 6% of consolidated revenue and assets,
respectively. WTT will use the bond proceeds to refinance
existing debt of HKD5 billion, and to cover transaction fees and
other expenses incurred in the note issuance.

The Positive Outlook on IDR reflects Fitch expectation that WTT's
FFO adjusted net leverage can come down to below 4.8x by 2020,
driven by its ability to generate a pre-dividend free cash flow
(FCF) margin of around 10% (or HKD200 million-250 million) -
supported by its position in Hong Kong's business-to-business
telecoms market. Furthermore, WTT's sponsors - MBK Partners and
TPG Capital - have stated their commitment to achieve net
debt/EBITDA of 4.0x (or 4.5x on a FFO adjusted net leverage
basis) over the medium term. The covenants attached to the notes
also impose certain restrictions on the additional debt that WTT
can assume, based on a net debt to EBITDA threshold of 4.0x.

KEY RATING DRIVERS

High Leverage; Challenger Status: WTT's ratings are constrained
by its Fitch-estimated 2017 FFO adjusted net leverage of 6.0x,
and a "market challenger" position with about a 16% market share
in the Hong Kong enterprise market. The enterprise market
consists of business voice, broadband and IT services among other
related offerings. The industry is dominated by incumbent
Hong Kong Trust (HKT), part of PCCW group, which has around a 60%
market share.

However, WTT's ratings benefit from its second-largest market
position, benign competitive dynamics in Hong Kong's enterprise
market, a strong network position, and a loyal and diversified
customer base of 55,000 business clients with only a limited
churn rate. About 60% of customers have relationships of over
five years with WTT. The average length of a customer's contract
is around two to three years.

Strong Network Position: WTT's business risk profile is
reasonably strong, with extensive fibre coverage which connects
5,300 commercial buildings - estimated to cover 90% of business
customer demand in Hong Kong. Hutchison Global (HGC) and HK
Broadband (HKBN), the other two industry participants, have a
weaker network reach and could struggle to achieve similar
network strength as WTT, given capital requirements and space
constraint in existing buildings to inject new sets of fibre
cables and to house equipment. WTT, with its better execution and
sole focus on the enterprise market, has steadily improved its
market share in the Hong Kong sector over the last five years.

WTT differentiates itself by offering customised packaged
solutions including connectivity, fixed-voice and IT services to
its customers, and thereby enhancing customer loyalty. WTT's in-
house ICT capabilities give it a competitive edge over some of
the smaller rivals that lack such capabilities. WTT's network
position is further enhanced by ownership of submarine cables
connecting Hong Kong islands and Kowloon via Lantau, which HGC
and HKBN lack. Fitch expect higher competition in the small- and
medium-scale customer segments, which is not a key focus of WTT.
However, rising competition from HKBN and HKT could mean that WTT
is not completely immune from pricing pressures, notwithstanding
the low churn rate of its core clientele.

High FCF Margin Visibility: Fitch believe that the visibility of
WTT's pre-dividend FCF margin of 10% (HKD HKD200-250 million) is
high, as it invests only about 15% of its revenue on maintenance
and growth capex, and is likely to spend another 15% on interest
expense with limited cash taxes and working-capital movements.
Fitch expect WTT's post-dividend FCF margins to reach a
comparable level to that of its peers in the 'B+' and 'BB-'
rating levels when WTT starts dividend payments.

Low but Stable Revenue Growth: Fitch expect WTT's revenue and
EBITDA to grow by 3%-4% over the rating horizon as it adds new
customers, secures larger orders from existing customers, and
gradually wins market share from HKT. Fitch expect its operating
EBITDAR margin to improve to around 44%-46% (2016: 44%),
benefitting from inherent operating leverage due to low marginal
costs of adding new customers. Furthermore, the declining trends
in the revenue of the low-margin international voice segment will
help to boost its operating EBITDA margin.

Recovery Rating of 'RR3': Fitch have rated WTT's USD670 million
senior unsecured bond at 'BB-' with a Recovery Rating of 'RR3,
one notch higher than its IDR of 'B+'. The company derives most
of its economic value from Hong Kong; under Fitch criteria,
Country-Specific Treatment of Recovery Ratings, Hong Kong falls
into Group B, which allows up to two notches of uplift for
securities above the issuer's IDR based on above-average recovery
prospects. Fitch use the going-concern value approach to
calculate the post-restructuring enterprise value.

Fitch estimate post-restructuring cash flow to be around HKD633
million - a discount of 25% from Fitch-forecast EBITDA of HKD844
million in 2017 - which assumes a depletion of the current
business position leading to any financial distress, and a level
of corrective action that would have occurred during
restructuring. Fitch have assumed a cash flow multiple of 6.0x,
given the cash-generative characteristics of the business, and is
in line with 'BB-' rated peers in similar businesses. The
adjusted going-concern enterprise value after administrative
claims of HKD3.4 billion is then applied to the potential HKD390
million senior revolving credit facility, and the balance to the
senior unsecured notes, which results in a recovery in line with
'RR3' for the notes.

DERIVATION SUMMARY

WTT's ratings reflects its high 2017 Fitch-estimated FFO adjusted
net leverage of 6.0x, but with potential to improve over the
medium term; small scale; and "market challenger" market position
in the Hong Kong enterprise market, despite a relatively better
business risk profile than some peers. WTT's leverage is higher
than most 'BB-' peers - including the UK's Virgin Media Inc. (BB-
/Stable) at 5.0x and TalkTalk Telecom Group PLC (BB-/Stable) at
3.3x; Belgium's Telenet Group Holding N.V. (BB-/Stable) at 5.0x;
and Axtel, S.A.B. de C.V. (BB-/Stable) of Mexico, at 4.2x.

WTT's strong business profile benefits from its extensive fibre
coverage, high competition barriers and recurring revenue derived
from an established customer base, despite its relatively small
scale and a "market challenger" position. European fixed
broadband network providers such as Virgin Media Inc., TalkTalk
and Telenet operate in markets that are more competitive and have
lower competition barriers than WTT, although many of these peers
have a significantly higher scale. MBK Partners and TPG Capital,
owners of WTT having 50% stake each, acquired WTT in November
2016 from Wharf Holdings for HKD9.5 billion.

The Positive Outlook reflects Fitch expectation that WTT's FFO
adjusted net leverage can improve to below 4.8x by 2020, provided
its ability to generate strong pre-dividend FCF remains largely
unimpaired notwithstanding some increase in competition, and
supported by the sponsors' commitment to achieve net debt/EBITDA
of 4.0x over the medium term.

KEY ASSUMPTIONS

Fitch's key assumptions within Fitch rating case for the issuer
include:
- Revenue to grow by around 3%-4% during 2017-2019, driven by
   new customer additions and broadband and IT demand from
   existing customers.
- Operating EBITDAR margin to improve to around 44%-45% during
   2017-2018, reflecting benign competition in the enterprise
   market.
- Capex/revenue ratio of around 15%.
- No dividend payment during 2017-2020 until it achieves net
   debt/EBITDA of 4.0x or FFO adjusted net leverage of 4.5x.
- Effective tax rate of 16.5%.
- No M&A activity.

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to an
Upgrade of the IDR to 'BB-'

- Greater clarity on WTT's ability to improve its FFO adjusted
   net leverage to or below 4.8x by 2020, and
- Ability to maintain FFO fixed-charge coverage of at least
   2.5x, and
- WTT retaining its market position with no significant adverse
   changes to its pricing power and operating EBITDA margin.

Developments That May, Individually or Collectively, Lead to
Outlook being Revised to Stable

- Failure to achieve FFO adjusted net leverage of below 4.8x by
   2020 on a forecast basis, and/or
- Failure to maintain FFO fixed-charge cover at or above 2.5x by
   2020 on a forecast basis.
- Deterioration in WTT's market position or its ability to
   generate positive pre-dividend FCF as currently expected by
   Fitch.

LIQUIDITY

Adequate Liquidity: Liquidity was adequate at end-2016, with an
unrestricted cash balance of HKD136 million and an undrawn
revolving credit facility of HKD405 million which is sufficient
to pay short-term debt maturities of HKD134 million due in 2017.
WTT has paid HKD270 million up to August 2017, which includes a
prepayment of HKD203 million on its senior secured bank facility.
The senior secured loan is amortised through 2021 and has an
average maturity of 5.5 years. The mezzanine facility of HKD814
million bearing an interest cost of 11% has a bullet maturity in
May 2022. The proceeds from the USD670 million notes issue are to
be utilised to fully refinance these debt facilities.



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


AAMEYA POLYMERS: CRISIL Assigns B+ Rating to INR10MM Cash Loan
--------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
long-term bank loan facilities of Aameya Polymers LLP (APLLP).

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit            10         CRISIL B+/Stable
   Term Loan               5         CRISIL B+/Stable

The rating reflects risks related to the initial stage of
operations, and timely ramp up in sales, and the firm's average
financial risk profile. These weaknesses are partly offset by
extensive experience of the partners in the packaging industry,
their funding support and established relationships with
customers and suppliers.

Analytical Approach

For arriving at the ratings, CRISIL has treated unsecured loans
of INR10.28 crore extended by APLLP's promoters, as neither debt
nor equity. That is because the loans are interest free, and are
expected to remain in the business over the medium term.

Key Rating Drivers & Detailed Description

Weaknesses

* Initial stage of operations and exposure to timely ramp-up in
sales: Commercial operations have commenced only from April 2017.
Revenue of around INR9.5 crore has been recorded in the first six
months of the fiscal 2018. Hence, timely ramp up in sales, during
the initial phase, and stable profitability, remain key
monitorables.

* Average financial risk profile: Financial risk profile is
expected to remain average, with debt contracted to fund capital
expenditure towards the project, and meet the working capital
requirement, resulting in high gearing. Networth is expected to
be small around INR3 crore in the medium term.

Strength

* Extensive experience of the partners, and established
relationships with customers and suppliers: The two decade-long
experience of the partners, Mr.  Vishal Poddar and Mrs Rekha
Shah, through family-owned and managed entities in the same line
of business, and their healthy relationships with customers and
suppliers, will continue to support the business risk profile.
The partners have also extended funding support via unsecured
loans and equity to cover expenses related to the project.

Outlook: Stable

CRISIL believes APLLP will benefit from the extensive experience
of its partners, in the medium term. The outlook may be revised
to 'Positive' if the firm achieves the anticipated ramp-up in
sales, profitability, and cash accrual during the initial phase
of operations. The outlook may be revised to 'Negative' if delay
in the ramp-up leads to lower revenue and cash accrual, or a
stretch in the working capital cycle weakens the financial risk
profile, especially liquidity.

Set up in March 2016, APLLP manufactures multi-layer laminated
films, polythene bags and pouches, used for packaging purposes in
industries such as food & grain, pharmacy, confectionary, and
FMCG. Commercial operations commenced from April 2017.  Mr.
Vishal Poddar and Mrs Rekha Shah are partners in the firm. The
manufacturing facility is situated at Dewas, Madhya Pradesh, with
an installed capacity of 3600 metric tons per annum.


AGRON LOGISTICS: ICRA Moves D Rating to Not Cooperating Category
----------------------------------------------------------------
ICRA Ratings has moved the long term rating for the bank
facilities of Agron Logistics India Private Limited (ALIPL) to
the 'Issuer Not Cooperating' category. The rating is now denoted
as "[ICRA]D ISSUER NOT COOPERATING".

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Fund based-Cash         10.0      [ICRA]D ISSUER NOT
  Credit                            COOPERATING; Rating moved
                                    to the 'Issuer Not
                                    Cooperating' category

The rating is based on limited or no updated information on the
entity's performance since the time it was last rated in May,
2015. 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 Agron Logistics India Private Limited, 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.

Incorporated in 2006, Agron Logistics India Private Limited is
promoted by Mr. Sadanand Pandey. ALIPL is a logistic service
provider primarily engaged in providing full truck load bulk
cargo transportation services on an annual contract basis. The
company operates a fleet of around 500 trucks, out of which 63
trucks are owned and the remaining are leased by the company. The
company also provides value added services like couriering,
freight forwarding and warehousing to its customers as per their
requirements with its warehouses located across the country.


ARJUN EDUCATIONAL: CRISIL Lowers Rating on INR5MM Term Loan to D
----------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facility of Arjun Educational Trust (AET) to 'CRISIL D' from
'CRISIL B/Stable.'

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Term Loan           5        CRISIL D (Downgraded from
                                     'CRISIL B/Stable')

   Overdraft                0.5      CRISIL D (Downgraded from
                                     'CRISIL B/Stable')


   Proposed Long Term       4.5      CRISIL D (Downgraded from
   Bank Loan Facility                'CRISIL B/Stable')

The downgrade reflects the delay in servicing debt, caused by
weak liquidity, and stretched receivables from the government.
The rating also reflects the small scale of operations and
exposure to competition from other engineering colleges in and
around Coimbatore. These rating weaknesses are partially offset
by the extensive experience of the trustees in the educational
sector.

Key Rating Drivers & Detailed Description

Weakness

* Small scale of operations and exposure to competition from
engineering colleges around Coimbatore: Turnover of around INR4.8
crore in fiscal 2017, reflects the small scale of operations. The
engineering college managed by AET also faces competition from
other established engineering colleges in and around Coimbatore.

* Weak liquidity profile: Delay in receivables from the
government, has led to weak liquidity.

Strength

* Experience of the trustees in the educational sector: Extensive
experience of the trustees, (ranging from 10 to 15 years), will
support the firm's operations in the educational sector.

AET, set up in 2011, manages an educational institution in
Coimbatore, Tamil Nadu, offering courses in the engineering
stream. Operations are managed by the chairman, Mr. Surya
Narayanan.


AVON ELASTOMERS: ICRA Withdraws B+ Rating on INR7.50cr Loan
-----------------------------------------------------------
ICRA Ratings has withdrawn the long-term rating of [ICRA]B+ for
the INR17.50-crore fund-based, non-fund based and unallocated
limits of Avon Elastomers India (AEI) at the request of the
company.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Fund-based Limits       7.50      [ICRA]B+;withdrawn

  Long-term Non-
  fund Based              5.50      [ICRA]B+;withdrawn

  Unallocated
  (proposed limits)       4.50      [ICRA]B+;withdrawn

Rationale

The ratings assigned to Avon Elastomers India have been withdrawn
at the request of the company.

AEI was established in 1992 in Agra by Mr. Gagan Monga and Mr.
Harkesh Monga. At present, the firm trades in Thermo Plastic
Rubber (TPR), Thermoplastic Polyurethane (TPU), Thermoplastic
Elastomer (TPE) compounds and other allied products that find
application in the footwear industry. The firm primarily caters
to domestic customers that are generally manufacturers of
footwear and traders of footwear products.


B K EXPORTS: Ind-Ra Assigns B- LT Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned B. K. Exports
(BK) a Long-Term Issuer Rating of 'IND B-'. The Outlook is
Stable. The instrument-wise rating action is:

-- INR240 mil. Fund-based facilities assigned IND B-/Stable/IND
    A4 rating.

KEY RATING DRIVERS

The ratings reflect BK's small scale of operations and weak
credit metrics due to the trading nature of business, as well as
volatile EBITDA margin due to raw material price fluctuations.
Revenue increased to INR500 million in FY17 from INR341 million
in FY16, driven by higher order execution. EBITDA margin was
1.9%-15.8% over FY13-FY17, with the FY17 level standing at 6.6%.
Interest coverage (operating EBITDA/gross interest expense) was
1.0x in FY17 (FY16: 1.1x). The deterioration was due to an
increase in interest expenses. Meanwhile, net leverage (total
adjusted net debt/operating EBITDAR) was 10.1x in FY17 (FY16:
18.2x). The improvement was due to an increase in absolute
EBITDA. FY17 financials are provisional in nature.

The ratings also reflect a tight liquidity, indicated by an
average 98.5% utilisation of the fund-based facilities over the
12 months ended October 2017. It had an elongated working capital
cycle of 263 days in FY17 (FY16: 47 days) due to a high inventory
storage (189 days; 48 days). Moreover, the ratings are
constrained by the partnership nature of the business.

However, the ratings are supported by the proprietor' four-decade
experience in the trading of tobacco.

RATING SENSITIVITIES

Negative: Any further elongation of the working capital cycle
leading to a stretched liquidity could be negative for the
ratings.

Positive: A significant increase in revenue and EBITDA margin
leading to an improvement in credit metrics on a sustained basis
would be positive for the ratings.

COMPANY PROFILE

Founded in 2008 by Mr Bellam Kotaiah, BK is a proprietorship
concern engaged in the trading of tobacco.


BLUE DUCK: Ind-Ra Migrates BB- Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Blue Duck
Textiles Private Limited's (BDTPL) 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:

-- INR60.00 mil. Fund-based working capital limit migrated to
    non-cooperating category with IND BB-(ISSUER NOT
    COOPERATING)/IND A4+(ISSUER NOT COOPERATING) rating; and

-- INR18.36 mil. Term loan migrated to non-cooperating category
    with IND BB-(ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 19, 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 2013, BDTPL is engaged in dyeing and printing of
fabrics. It has an installed capacity of 30,000 metre/day with
86% utilisation level. The company is managed by its directors
Shantanu Kaul and Gitanjali Kaul.


BUDDHA SORTEX: ICRA Reaffirms B+ Rating on INR6.75cr Loan
---------------------------------------------------------
ICRA Ratings has reaffirmed the long-term rating on the INR6.75-
crore1fund-based facilities of Buddha Sortex Rice Industries
Private Limited at [ICRA]B+. The outlook on the rating is Stable.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Fund-based Limits       6.75      [ICRA]B+(Stable); reaffirmed
                                    and removed from the 'Issuer
                                    Not Cooperating' category

Rationale

The rating reaffirmation factors in the decline in operating
income (OI) in FY2017, albeit the increase in net profits and
interest coverage ratio.

The ratings continue to be constrained on account of the intense
competition in the rice milling industry to which BSRI is
exposed. This translates into low profitability, as is inherent
in the industry. ICRA also continues to take note of the agro-
climatic risks, which can affect the availability of paddy in
adverse weather conditions. The rating also continues to be
subdued on account of the weak financial risk profile as
reflected in its high gearing and weak debt-coverage indicators.

The rating, however, continues to positively factor in the
proximity of the mill to major rice growing areas, which results
in easy availability of paddy. Going forward, the company's
ability to profitably increase its scale of operations as well as
improve its capital structure and maintain optimal working
capital intensity will be closely monitored.

Key rating drivers

Credit strengths

* Local procurement of raw materials helps save transportation
costs: The company's key raw material is the non-Basmati variety
of paddy, which is mostly procured from the local wholesale grain
markets in Uttar Pradesh during the paddy-buying season --
September to December. However, if required, the company buys
paddy from the market during the off season. The quality and
price of paddy depend on the time of procurement. The price tends
to be lower (and the quality better) at the start of harvest as
the produce starts coming into the market. Thus, the company
prefers to buy raw materials during this time. Sometimes, it also
buys semi-processed rice from the market.

Credit weaknesses

* Intense competition limits profitability: The rice industry is
highly competitive and fragmented in nature because of the
presence of established players as well as numerous small players
in the unorganised sector. Given the low capex and technical
complexity of the work, the entry barriers have remained low and
resulted in the presence of a large number of small-to-medium
scale enterprises. This in turn puts pressure on profitability.

* Vulnerability to the vagaries of monsoon and other agricultural
risks: Rice being an agricultural commodity is exposed to the
vagaries of monsoon and other agricultural risks such as the
outbreak of diseases, lower/higher-than-projected production
levels (that impact the supply and hence the price), poor storage
capacities and inconsistencies in quality. The company's ability
to buy paddy of consistent quality at the right price is the key
to success in the rice industry.

BSRI, was established in 2013 and is involved in milling and
sorting of non-Basmati rice. The company's unit located at
Hetimpur, Deoria (UP) has an installed capacity of 8 tonne/hour.
The company caters to both domestic and export customers. The
day-to-day operations of the company are managed by Mr. CP Gupta.
BSRIPL reported a net profit of INR0.29 crore on an OI of
INR22.93 crore in FY2017 compared with a net profit of INR0.15
crore on an OI of INR25.61 crore in the previous year.


CARAVEL LOGISTICS: Ind-Ra Cuts Long-Term Issuer Rating to B-
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Caravel
Logistics Private Limited's (CLPL) Long-Term Issuer Rating to
'IND B-' from 'IND B'. The Outlook is Stable. The instrument-wise
rating actions are:

-- INR104 mil. (increased from INR96 mil.) Fund-based working
    capital limits, long-term rating downgraded; Outlook Stable;
    short-term rating affirmed, with IND B-/Stable/IND A4 rating;
    and

-- INR15 mil. Non-fund-based working capital limits, long-term
    rating downgraded; Outlook Stable; short-term rating
    affirmed, with IND B-/Stable/IND A4 rating.

KEY RATING DRIVERS

The downgrade reflects CLPL's continued losses at the operating
EBITDA level in FY17 because of a continuous decline in revenue
to INR1,013.9 million according to provisional figures (FY16:
INR2,372.9 million; FY15: INR3,034.6 million). This has been
because of the company discontinuing operations at certain
destinations amid a negative industry environment and drop in
market prices. The company could not deploy the significant
number of containers taken on operating lease. Thus, it had to
incur significant one-time repair costs in FY17 towards returning
the containers taken on lease.

Ind-Ra expects a positive EBITDA in FY18 as CLPL had returned a
significant number of containers in FY17, which is likely to
reduce the lease rentals.

The company's liquidity position remains tight, as indicated by
its full utilisation of the working capital limits during the 12
months ended September 2017.

RATING SENSITIVITIES

Positive: Achievement of profitability at the EBITDA level with
interest cover above 1x on a sustained basis would result in a
positive rating action.

Negative: Inability to achieve profitability at the EBITDA level
on a sustained basis could be negative for the ratings.

COMPANY PROFILE

CLPL was started by Mr. C. Jayakrishnan and Mr. Saju Chacko in
1994. The company's equity is equally owned by the two promoters.
BTS India Private Equity Fund invested INR250.0 million in CLPL
in July 2009 in the form of compulsorily convertible preference
shares.

CLPL provides ocean freight logistics and value-added services
for container cargo movements. The company's main area of
operations is non-vessel operating common carriers, freight
forwarding, multi-modal transport operations (handles domestic
transport) and customs house agency services.


FRONTIER KNITTERS: CRISIL Raises Rating on INR20MM Loan to B+
-------------------------------------------------------------
CRISIL Ratings has upgraded its ratings on the bank facilities of
Frontier Knitters Private Limited (FKPL) to 'CRISIL
B+/Stable/CRISIL A4' from 'CRISIL D/CRISIL D'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee          0.1       CRISIL A4 (Upgraded from
                                     'CRISIL D')

   Export Packing         20.0       CRISIL B+/Stable (Upgraded
   Credit                            from 'CRISIL D')

   Foreign Bill           16.0       CRISIL A4 (Upgraded from
   Discounting                       'CRISIL D')

   Letter of Credit         1        CRISIL A4 (Upgraded from
                                     'CRISIL D')

   Long Term Loan          22        CRISIL B+/Stable (Upgraded
                                     from 'CRISIL D')

   Proposed Long Term       6.7      CRISIL B+/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL D')

   Standby Line of Credit   3.7      CRISIL B+/Stable (Upgraded
                                     from 'CRISIL D')

The upgrade reflects timely servicing of debt because of
sufficient net cash accrual against repayment obligations and
improved cash flow from operations. Accrual is expected at INR9-
12 crore per annum over the medium term and will continue to be
adequate to repay debt.

The ratings reflect FKPL's working capital-intensive operations
and customer concentration in revenue profile. These weaknesses
are partially offset by above-average financial risk profile
because of moderate capital structure and extensive experience of
promoter.


Key Rating Drivers & Detailed Description

Weaknesses

* Working capital-intensive operations: Gross current assets were
217 days as on March 31, 2017, due to large inventory of 100-120
days. Working capital requirement will remain large over the
medium term.

* Customer concentration in revenue: Top three clients account
for more than 80% of turnover. Though revenue concentration is
expected to reduce with diversification, this will be gradual,
thereby constraining business risk profile.

Strengths

* Above-average financial risk profile: Gearing was moderate at
1.75 times as on March 31, 2017, backed by healthy networth of
INR40.2 crore. Debt protection metrics were robust, with interest
coverage and net cash accrual to total debt ratios of 2.66 times
and 19%, respectively, for fiscal 2017.

* Extensive experience of promoter: The promoter has extensive
experience in the textile industry. Mr. Mohammed Thajutheen has
been in the business for more than 2 decades

Outlook: Stable

CRISIL believes that FKPL will maintain its business risk
profile, supported by established customer relationship, over the
medium term. The outlook may be revised to 'Positive' if FKPL
sustains its improved operating performance, leading to
substantial cash accruals along with diversification in customer
profile, and improved working capital management. Conversely, the
outlook may be revised to 'Negative' if the company undertakes a
large debt-funded capex programme or if its working capital cycle
lengthens, weakening financial risk profile.

Established as a partnership firm in 1988 by Mr. Mohammed
Thajutheen in Tiruppur, Tamil Nadu, and reconstituted as a
private limited company in October 2010, FKPL manufactures and
exports a wide range of knitted garments.

Provisional profit after tax (PAT) is INR5.5 crore on an
operating income of INR136.2 crore in fiscal 2017; PAT was INR3.1
crore on an operating income of INR165.9 crore in fiscal 2016.


GAJANAND FOODS: Ind-Ra Moves B+ Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Gajanand Foods
Pvt. Ltd's (GFPL) 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:

-- INR52.46 mil. Long-term loan  migrated to non-cooperating
    category with IND B+(ISSUER NOT COOPERATING) rating; and

-- INR20 mil. Fund-based facilities  migrated to non-cooperating
    category with IND B+(ISSUER NOT COOPERATING)/IND A4(ISSUER
    NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
November 1, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Established by Mr. Natvarbhai Patel and Mr. Vijaybhai Patel in
1982, GFPL manufactures spices and instant food products. The
company was incorporated as a private limited company in 1995.


GOLDEN GLOBE: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Golden Globe
Impex Private Limited's (GGIPL) 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:

-- INR60 mil. Fund-based limits migrated to non-cooperating
    category with IND BB(ISSUER NOT COOPERATING)/IND A4+(ISSUER
    NOT COOPERATING) rating; and

-- INR120 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
November 14, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

GGIPL is a private limited company, incorporated in 2012. The
company trades commodities such as rice, spices, raw cashew nuts,
and chemicals such as glycerine, melamine, maleic, anhydride and
citric acid.


KAMAL TIMBERS: Ind-Ra Migrates BB Isuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Kamal Timbers
India Private Limited's (KTPL) 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:

-- INR60 mil. Fund-based facilities migrated to non-cooperating
    category with IND BB(ISSUER NOT COOPERATING)/IND A4+(ISSUER
    NOT COOPERATING) rating; and

-- INR190 mil. Non-fund-based facilities migrated to non-
    cooperating category with IND A4+(ISSUER NOT COOPERATING)
    rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 10, 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 2005, KTPL is engaged in the trading and
processing of timber. It imports timber from South East Asian
countries such as Singapore, Malaysia and Hong Kong, and
processes it in its saw mills in Faridabad (Haryana) and
Gandhidham (Gujarat). Its product portfolio includes Ghana teak,
Nagpur teak, rosewood and hollock.


KTL PVT: Ind-Ra Migrates BB Issuer Rating to Non-Cooperating
------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated KTL Pvt. Ltd.'s
Long-Term Issuer Rating to the non-cooperating category. The
issuer did not participate in the surveillance 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:

-- INR590 mil. Fund-based working capital limit migrated to non-
    cooperating category with IND BB(ISSUER NOT COOPERATING)/IND
    A4+(ISSUER NOT COOPERATING) rating; and

-- INR25 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
February 14, 2014. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Established in 1987, Kanpur-based KTL is a Maruti Suzuki dealer
operating nine Maruti Suzuki showrooms including six in Kanpur,
one in Agra and two in Lucknow. The company also operates 17
workshops in Uttar Pradesh with eight workshops in Kanpur, seven
in Lucknow and two in Agra. It also operates a TVS dealership in
Kanpur.


LAXMI COTTON: ICRA Reaffirms B+ Rating on INR8cr Loan
-----------------------------------------------------
ICRA Ratings has reaffirmed the long term rating at [ICRA]B+ to
the INR8.00 crore fund-based limits of Laxmi Cotton. The outlook
on the long-term rating is 'Stable'.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Fund based limits      8.00       [ICRA]B+(stable); re-affirmed

Rationale

The rating is constrained by Laxmi Cotton's moderate scale of
operations in the highly fragmented cotton ginning industry
characterized by competition from a large number of players which
limits its ability to pass on the hike in the input costs. The
rating considers weak financial profile of the firm characterized
by low profitability, high gearing and week coverage indicators
in FY2017. ICRA notes that profitability of the firm is also
vulnerable to agro-climatic risks, which can affect the
availability of the raw material in adverse weather conditions.
ICRA also notes risks associated with partnership nature of the
firm. The rating, however, favourably factors in more than two
decades experience of the partners in the cotton ginning business
and proximity to cotton growing areas resulting in savings on
transportation costs.

Going forward, the firm's ability to increase its scale of
operations, improve profitability, and effectively manage its
working-capital requirements would be the key rating
sensitivities.

Key rating drivers

Credit strengths

* Extensive experience of the promoter in the cotton industry:
More than two decades of experience of promoters in cotton
industry helps in understanding the market trend resulting in
procuring better raw materials at competitive rate.

* Presence of the firm in major cotton producing regions of
Telangana: Laxmi Cotton is located in Jammikunta village of
Karimnagar district of Telangana, which is a major cotton
producing area resulting in easy availability of kappas leading
to savings on transportation costs.

Credit weaknesses

* Moderate scale of operations: The firm has moderate scale of
operations with revenue of INR109.75 crores for FY2017 in a
highly fragmented industry characterised by presence of large
number of players which limits firm's ability to pass on any
adverse movement to its customers.

* Weak financial profile: Laxmi Cotton has a weak financial
profile with thin operating margin of 1.27% in FY2017. The firm's
gearing has been high in the past and increased to 4.78 times as
on March 31, 2017 on account of high working capital borrowings
to fund higher debtors. The coverage indicators are stretched
with interest coverage ratio of 1.49 times, NCA/total debt ratio
of 2% for FY2017.

* Industry susceptible to agro-climatic risks: The cotton ginning
industry is susceptible to agro-climatic risks, which can affect
the availability of the raw material in adverse weather
conditions.

* Risk related to partnership nature of the firm: The firm is
exposed to the risks inherent to the partnership nature of firm
including capital withdrawal risk.

Laxmi Cotton was established in the year 2003 as a partnership
firm. Mr. Babaiah is the current Managing Partner. The firm is
engaged in ginning and pressing of kappas and trading of cotton
lint and seed. The ginning unit is located in Jammikunta,
Karimnagar district of Telangana . The firm has 24 ginning
machines and one pressing machine. Each gin is capable of
producing 8-10 quintals of lint per day and pressing machine has
capacity to press 200 bales per day.

Laxmi Cotton has reported an operating income of INR109.75 crore
and net profit of INR0.28 crore in FY2017 as against an operating
income of INR109.41 crore and net profit of INR0.15 crore in
FY2016.


LEADE LIQUOR: CRISIL Lowers Rating on INR6.84MM LT Loan to 'D'
--------------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facility of Leade Liquor Manufacturing Private Limited (LLMPL) to
'CRISIL D' from 'CRISIL B-/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Proposed Long Term      6.84      CRISIL D (Downgraded from
   Bank Loan Facility                'CRISIL B-/Stable')

   Term Loan               2.91      CRISIL D (Downgraded from
                                     'CRISIL B-/Stable')

The downgrade in rating reflects instances of delay in servicing
of term debt.

Key Rating Drivers & Detailed Description

Weakness

* Weak Liquidity: Liquidity remains constrained by low cash
accrual vis-a-vis term debt repayment obligation and the ongoing
capital expenditure.

Strength

* Extensive experience of promoters: The promoters have been
present in the Indian made foreign liquor (IMFL) bottling
business since 2005, when they set up a bottling plant in
Meghalaya to cater to the UB group of companies. To leverage
their experience further, they set up a bottling plant under
LLMPL in Hooghly (West Bengal), and entered into an agreement
with Pernod Ricard.

LLMPL was set up in fiscal 2011, by the promoter, Mr.  Sumit
Kumar Jain and his family members, for setting up an IMFL
bottling plant at Hooghly. The plant commenced commercial
operations in December 2012. The company has a bottling capacity
of around 150,000 cases per month.


MADHUBAN BUILDERS: CRISIL Reaffirms D Rating on INR8MM Term Loan
----------------------------------------------------------------
CRISIL Ratings has reaffirmed the rating for the bank facility of
Madhuban Builders (MB) at 'CRISIL D'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Term Loan                8        CRISIL D (Reaffirmed)

The rating reflects the firm's delays in servicing its term debt
due to weak liquidity. The liquidity is weak as slowdown in the
real estate industry has resulted in significantly lower
bookings.

MB's revenues are susceptible to the cyclicality in the real
estate industry and exposure to high project risk. However, it
benefits from the extensive experience of its proprietor in the
real estate industry in Pune, Maharashtra.

Key Rating Drivers & Detailed Description

Weakness

* Susceptibility of MB's revenue to the cyclicality in the real
estate industry: MB's revenues are susceptible to cyclicality in
the real estate industry. India's real estate industry is marked
by cyclicality, opaque transactions, and intense fragmentation
because of the presence of a large number of regional players.

* Exposure to project related risks: MB is currently undertaking
construction of Serene Spaces residential project in Wagholi,
Pune. The project has recorded limited sales thus, resulting in
modest sale velocity. CRISIL believes that the project progress
and sales velocity will remain key rating sensitivity factors
over the medium term.

Strength

* Extensive experience of promoters: MB's proprietor, Mr. Rajesh
Majethia has been engaged in residential real estate development
in Pune since 1996. Over the years, the promoter has developed
many projects in Pune.

MB was established by Mr. Rajesh Majethia in 1996 as a
proprietorship firm to undertake residential real estate
development in Pune. The firm has one ongoing residential
project, Serene Spaces, which has 108 saleable units.


MAHALAXMI FOOD: CRISIL Assigns B+ Rating to INR8MM Cash Loan
------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
long-term bank facility of Mahalaxmi Food Products (MFP).

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Term Loan               7.45      CRISIL B+/Stable
   Proposed Term Loan       .80      CRISIL B+/Stable
   Cash Credit             8.00      CRISIL B+/Stable
   Project Loan            3.75      CRISIL B+/Stable

The rating reflects the modest scale of, and working capital
intensity in, operations, amidst intense competition. These
rating weaknesses are partially offset by extensive experience of
the partners in the agro products industry.


Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations amidst intense competition: Intense
competition in the agro products industry has kept the scale of
operations modest, as indicated by revenue of INR40 crore in
fiscal 2017.

* Working capital intensity in operations: Operations are
moderately working capital intensive, with gross current assets
of 130 days as on March 31, 2017, thus, leading to high bank
limit utilisation.

Strength

* Extensive experience of the partners: The decade-long
experience of the partners in the agro products industry, and
their healthy relationships with customers and suppliers, will
continue to support the business risk profile.

Outlook: Stable

CRISIL believes MFP will continue to benefit from the extensive
experience of its partners in the agro product industry. The
outlook may be revised to 'Positive' in case of significant
improvement in revenue and profitability, and better working
capital management. The outlook may be revised to 'Negative' if
low net cash accrual or large debt-funded capital expenditure,
weakens the credit risk profile.

MFP was set up as a partnership firm in 2004 at Ratnagiri. The
firm processes flour and spices. The partners of the firm are Mr.
Yogesh Sarpotdar and Mr. Anand Mulye.


MALIEAKAL ELECTRONICS: CRISIL Ups Rating on INR3.5MM Loan to B+
---------------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank loan
facility of Malieakal Electronics (Malieakal) to 'CRISIL
B+/Stable' from 'CRISIL B/Stable'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Overdraft               3.5       CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B/Stable')

   Proposed Long Term      1         CRISIL B+/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL B/Stable')

   Term Loan               1.6       CRISIL B+/Stable (Upgraded
                                     from 'CRISIL B/Stable')

The rating upgrade reflects expectation of steady growth in
operating revenue, and stable operating margin of 5%. This,
coupled with no debt-funded capital expenditure (capex) plans for
the medium term, is expected to strengthen financial metrics. The
capital structure is expected to improve with total outside
liabilities to tangible net worth (TOLTNW) to come down to below
5 times as on March 31, 2018 from 6.17 times as on March 31,
2017. Further, liquidity is expected to improve with higher
cushion between cash accrual and repayment obligation with
upcoming repayments and absence of debt-funded capex.

The ratings also factor in modest scale of operations amidst
intense competition in the consumer electronics and home
appliances retail segment. These weaknesses are partially offset
by extensive experience of the proprietor.

Key Rating Drivers & Detailed Description

Weaknesses

* Below-average financial risk profile: Financial risk profile is
marked by a high TOLTNW ratio of 6.17 times as on March 31, 2017.
Interest coverage and net cash accrual to adjusted debt ratios
were modest at 2 times and 0.10 time, respectively, during fiscal
2017. Liquidity is marked by high bank limit utilisation and
adequate cash accrual to meet repayment obligation. Cushion
between cash accrual and repayment obligation is expected to
improve with upcoming repayments and absence of debt-funded
capex.

* Modest scale of operations amidst intense competition: Intense
competition from other retailers, having a wider scale and
geographic presence, has kept the scale of operations modest,
with revenue of around INR28 crore in fiscal 2017. Furthermore,
the firm derives its entire revenue from a showroom at Kollam,
which leads to high geographic concentration.

Strength

* Extensive experience of the proprietor: The three decade-long
experience of the proprietor in the consumer electronics and
appliances segment, and his healthy relationships with suppliers,
will continue to support the business risk profile.

Outlook: Stable

CRISIL believes Malieakal will continue to benefit from its
moderate operating margin, and extensive experience of its
proprietor. The outlook may be revised to 'Positive' if
improvement in scale of operations and profitability, or an
equity infusion, strengthens the financial risk profile. The
outlook may be revised to 'Negative' if low revenue or
profitability, or large capex or working capital requirement,
weakens the financial risk profile.

Based in Kollam (Kerala) and set up in 1979, Malieakal deals in
consumer electronics and home appliances. Daily operations are
managed by the proprietor, Mr. James Joseph.


MALWA AUTOMOBILES: Ind-Ra Migrates BB- Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Malwa
Automobiles Private Limited's (MAPL) 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:

-- INR186 mil. Fund-based working capital limit 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
November 25, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

MAPL was incorporated in 1997 by Mr. Bal Krishan Sharma and Ms.
Kamlesh Sharma. It is an authorised 3S dealer for TATA Motors
Limited. The company operates three showrooms and three workshops
across Haryana and Delhi.


MAYUR SEEDS: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Mayur Seeds and
Agritech's (MSA) 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 B+(ISSUER NOT COOPERATING)' on the agency's
website. The instrument-wise rating actions are:

-- INR90 mil. Fund-based working capital limits migrated to non-
    cooperating category with IND B+(ISSUER NOT COOPERATING)
    rating; and

-- INR10 mil. Non-fund-based working capital limits migrated to
    non-cooperating category with IND A4(ISSUER NOT COOPERATING)
    rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
August 20, 2015. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

MSA was incorporated in February 2002 by Mr Jagdish Khandelwal
and was converted into a partnership with Mr Rajesh Khandelwal in
2004. MSA is engaged in the procurement, processing, packaging
and marketing of soya bean, gram and wheat.


MINI DIAMONDS: CRISIL Lowers Rating on INR6MM Loan to 'D'
---------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Mini Diamonds India Limited (MDIL) to 'CRISIL
D/CRISIL D' from 'CRISIL B/Stable/ CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit              2        CRISIL D (Downgraded from
                                     'CRISIL B/Stable')

   Export Packing           6        CRISIL D (Downgraded from
   Credit & Export                   'CRISIL A4')
   Bills Negotiation/
   Foreign Bill
   discounting

   Proposed Long Term       1        CRISIL D (Downgraded from
   Bank Loan Facility                'CRISIL B/Stable')

The downgrade reflects occasional delays in servicing of post
shipment bills discounted. MDIL's liquidity continues to remain
stretched, indicated by inadequate cash accrual to meet debt
obligation. Cash accrual was INR50 lakh in fiscal 2017 and is
expected at a similar level over the medium term, against annual
debt obligation of INR1.5 crore. The interest coverage has also
deteriorated to 1.3 times in fiscal 2017 from 1.5 times in fiscal
2016.

Analytical Approach
Unsecured loans have been treated as debt.

Key Rating Drivers & Detailed Description

Weakness

* Below-average financial risk profile: MDIL's financial risk
profile is constrained by modest networth of INR5.97 crore and
high total outside liabilities to adjusted networth ratio of 14.8
times as on March 31, 2017. Debt protection metrics were weak,
with interest coverage ratio of 1.3 times in fiscal 2016.

* Large working capital requirement: The company had gross
current assets of 257 days as on March 31, 2017, because of large
receivables and inventory.

* Small scale of operations: MDIL's small scale, reflected in
revenue of INR127.7 crore in fiscal 2017, limits its bargaining
power in the fragmented diamond industry.

Strength

* Extensive experience of promoters in the gems and jewellery
industry, and established customers relationships with customers:
MDIL's promoters, Mr. Upendra Shah and Mr. Himanshu Shah, have
experience of more than two decades in the diamond industry. The
company will benefit from their industry experience,
understanding of market dynamics, and established relationships
with suppliers and customers.

MDIL, incorporated in 1987 by Mr. Upendra Shah and Mr. Himanshu
Shah, manufactures and trades in cut and polished diamonds, and
trades in rough diamonds.


MOHAN TOBACCOS: Ind-Ra Puts B- LT Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Mohan Tobaccos
(MT) a Long-Term Issuer Rating of 'IND B-'. The Outlook is
Stable. The instrument-wise rating action is:

-- INR88 mil. Fund-based facilities assigned with IND B-
    /Stable/IND A4 rating.

KEY RATING DRIVERS

The ratings reflect MT's small scale of operations and weak
credit metrics due to the trading nature of business, as well as
volatile EBITDA margin due to raw material price fluctuations.
Revenue declined to INR293 million in FY17 from INR566 million in
FY16, due to lower order execution. EBITDA margin was 1.2%-4.0%
over FY13-FY17, with the FY17 level standing at 4.0%. Interest
coverage (operating EBITDA/gross interest expense) was 1.1x in
FY17 (FY16: 0.6x) and net leverage (total adjusted net
debt/operating EBITDA) was 10.9x in FY17 (FY16: 18.5x). The
improvement in the credit metrics was due to an increase in
absolute EBITDA. FY17 financials are provisional in nature.

The ratings also reflect a tight liquidity, indicated by an
average 98.4% utilisation of the fund-based facilities for the 12
months ended October 2017. It had an elongated working capital
cycle of 188 days in FY17 (FY16: eight days) due to a high
inventory storage (158 days; eight days). Moreover, the ratings
are constrained by the proprietorship nature of the business.

However, the ratings are supported by the proprietor's four-
decade experience in the trading of tobacco.

RATING SENSITIVITIES

Negative: Any further elongation of the working capital cycle
leading to stretched liquidity position could be negative for the
ratings.

Positive: A significant increase in revenue and operating
profitability leading to an improvement in the credit metrics on
a sustained basis would be positive for the ratings.

COMPANY PROFILE

MT was incorporated in 2011 as a proprietorship concern by Mr
Bellam Ramu. The firm is engaged in the trading of tobacco.


NISHA ENTERPRISES: CRISIL Reaffirms B+ Rating on INR7MM Cash Loan
-----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on
the long-term bank facility of Nisha Enterprises (NE).

                      Amount
   Facilities        (INR Mln)     Ratings
   ----------        ---------     -------
   Cash Credit            7        CRISIL B+/Stable (Reaffirmed)

The rating continues to reflect the firm's working capital-
intensive operations, low operating profit margin, and weak
financial risk profile because of small networth and below-
average debt protection metrics. The rating also factors exposure
to intense competition in the steel industry and susceptibility
to cyclicality in demand from end-user industries. These
weaknesses are partially offset by extensive experience of the
firm's proprietor, and its healthy relationships with clients.

Key Rating Drivers & Detailed Description

Weaknesses

* Exposure to intense competition and to volatility in steel
prices and demand from end-user industries: NE trades in steel
products, and makes little value addition to products. It faces
intense competition as the steel trading industry is dominated by
a large number of unorganised players catering to regional
demand. Profitability is susceptible to volatility in steel
prices and demand from the housing (real estate), construction,
and infrastructure segments.

* Low operating profitability due to trading nature of operations
and low bargaining power with principal supplier: Operating
margin in fiscal 2017 was 2.6%. The firm receives a fixed margin
from its principal supplier for sale of hot-rolled (HR) and cold-
rolled (CR) coils and sheets, and thermo-mechanically treated
(TMT) bars. Profitability is low because of trading nature of
operations and low bargaining power due to the commoditised
nature of products and stiff competition from other players.

* Working capital-intensive operations: Gross current assets were
at 130 days as on March 31, 2017, driven by large receivables of
62 days and inventory of 64 days.

* Weak financial risk profile: The financial risk profile is
constrained by small networth, high total outside liabilities to
tangible networth (TOLTNW) ratio, and weak debt protection
metrics. Networth was INR2.56 crore as on March 31, 2017, due to
low profitability and low accretion of profit to reserves. TOLTNW
ratio was 3 times as on March 31, 2017. Interest coverage and net
cash accrual to total debt ratios were 1.3 times and 0.02 time,
respectively, in fiscal 2017.

Strength

* Proprietor's extensive entrepreneurial experience, and
longstanding relationships with clients: The proprietor, Ms
Sarita Devi has been associated with trading of HR/CR coils and
plates, cast iron (CI) boulders and castings, and mild steel (MS)
ingots for over a decade. She is associated with a group entity,
Esh Ispat Pvt Ltd, which manufactures MS ingots. Her longstanding
business relationships have helped NE develop a sound network of
customers across states.

Outlook: Stable

CRISIL believes NE will continue to benefit from the extensive
entrepreneurial experience of the proprietor and its longstanding
association with clients. The outlook may be revised to
'Positive' if higher-than-expected growth in revenue and
operating margin leads to sustained improvement in cash accrual
and financial risk profile. The outlook may be revised to
'Negative' if liquidity deteriorates because of stretched working
capital cycle, or if revenue or profitability declines, leading
to significantly low cash accrual, or if the firm undertakes
large, debt-funded capital expenditure, weakening its capital
structure.

NE is a distributor of Steel Authorities of India Ltd (SAIL) for
HR/CR coils and plates, CI bolder and casting, and MS ingots in
Bokaro, Jharkhand. Daily operations are managed by proprietor Ms
Sarita Devi.


RR COTTONS: Ind-Ra Migrates B Issuer Rating to Non-Cooperating
--------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated RR Cottons'
Long-Term Issuer Rating to the non-cooperating category. The
issuer did not participate in the surveillance 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:

-- INR30 mil. Term loan migrated to non-cooperating category
    with IND B(ISSUER NOT COOPERATING) rating;

-- INR150 mil. Fund-based working capital limit migrated to non-
    cooperating category with IND B(ISSUER NOT
    COOPERATING)/INDA4(ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
November 8, 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 July 2016, RRC is engaged in ginning and
processing of cotton bales and cotton seed oil in Adilabad,
Andhra Pradesh.


PRAMANIK METAL: ICRA Moves B Rating to Not Cooperating Category
---------------------------------------------------------------
ICRA Ratings has moved the long term rating for the bank
facilities of Pramanik Metal Corporation 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-Cash         10.00     [ICRA]B (Stable) ISSUER NOT
  Credit                            COOPERATING; Rating moved to
                                    the 'Issuer Not Cooperating'
                                    category

The rating is based on limited or no 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 Pramanik Metal Corporation, 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.

Pramanik Metal Corporation was incorporated in 1962. It has been
operational in themetal recycling industry for more than five
decades & created a reliable brand under the leadership of Mr.
Kajodimal Mehta and is now led by Mr. Jitendra Mehta.
The firm is mainly into trading of copper, aluminum, and cable
scrap. It is an importer of these materials in the form of scrap
which is then sold domestically. It is also an authorised dealer
of copper wire rod made of Vedanta Industries Limited, Hindalco
Industries Limited & Hindustan Copper Limited, which are leading
manufacturers of copper wire rod in India. It is also a regular
importer of copper rods made by Russian Copper Company.


SANATAN MERCHANTS: Ind-Ra Affirms BB+ LT Issuer Rating
------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Sanatan
Merchants Private Limited's (SMPL) Long-Term Issuer Rating at
'IND BB+'. The Outlook is Stable. The instrument-wise rating
actions are:

-- INR90 mil. Fund-based limits affirmed with IND BB+/Stable/IND
    A4+ rating.

KEY RATING DRIVERS

The affirmation reflects SMPL's continued moderate scale of
operations as well as credit metrics due to its largely trading
nature of business. During FY17, SMPL's revenue declined to
INR566 million (FY16: INR623 million) due to a lesser number of
orders received from its customers and interest coverage declined
to 1.3x (1.4x) due to an increase in the interest expenses.
However, EBITDA margins improved to 3.1% in FY17 (FY16: 2.7%) on
account of a decline in the cost of goods sold, resulting in an
improvement in the net leverage to 5.8x (6.1x).

The liquidity profile remains comfortable with 94.1% average
maximum use of its working capital limits during the 12 months
ended October 2017. Also, the cash flow from operation became
positive at INR1.1 million in FY17 (FY16: INR24.3million) on back
of healthy operating EBITDA.

The ratings continue to be supported by the promoter's experience
of over three decades in the trading line of business as well as
the company's associations with reputed brands such as Cello,
Venesa, Maped and Polo for which it is a distributor in
Bangladesh.

RATING SENSITIVITIES

Positive: A substantial increase in the scale of operations along
with a sustained improvement in the credit profile could be
positive for the ratings.

Negative: Deterioration in the credit profile could be negative
for the ratings.

COMPANY PROFILE

Incorporated in 1994 and with its registered office in Kolkata,
SMPL manufactures and markets hand tools and power tools such as
marble, stone cutting machines, granite cutting machines, wood
cutting machines, pesticide sprayers and rice processing
machines, and trades writing, stationary, body care products and
other accessories.

The company is managed by its three directors - Binod Maroti,
Kusum Maroti, and Nirav Maroti.


SEAWOOD MULTIPLE: CRISIL Assigns 'B' Rating to INR17MM Term Loan
----------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating on the
long-term bank facility of Seawood Multiple Services LLP (SMS).
The rating reflects exposure to significant implementation and
off take risks related to on-going project, intense competition
in the industry and geographical concentration. These weaknesses
are partially offset by promoters' extensive experience in real
estate industry and expected fund support.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Proposed Term Loan       17       CRISIL B/Stable

Key Rating Drivers & Detailed Description

Weaknesses

* Significant implementation and off take risks related to
ongoing project: The firm is setting up restaurant and a
microbrewery, which is at a very nascent stage with only 18% of
cost incurred till September 27, 2017. The firm is yet to receive
the approvals, and any delay in attaining approvals may lead to
delay in project implementation and impact liquidity.

* Intense competition in the industry: The restaurant industry in
India is highly fragmented with unorganized players having
majority market share. Thus, SMS faces intense competition and
needs to continuously innovate in terms of menu and decor to
match fast changing trends in customer preference.

* Geographical concentration of revenues: Geographical
concentration of a restaurant in a single location constrains the
firm's access to a wider customer base, and renders the firm
susceptible to the dynamics of operating in a single market.

Strength

* Extensive experience of promoters and their fund support: The
promoters have over 20 years of experience in real estate
development and have completed several projects in Navi Mumbai
leading to extensive knowledge of the local preferences and
market. Moreover, the promoters have resourceful background and
will support the firm's funding requirements, whenever required.

Outlook: Stable

CRISIL believes that SMS will benefit from the extensive
experience of promoters and their fund support. The outlook may
be revised to 'Positive' if timely implementation of project and
higher than expected revenue or profitability, leads to higher
cash accruals. Conversely, the outlook may be revised to
'Negative' if delays in the commencement of its operations, or
lower-than expected cash accruals, result in a pressure on its
liquidity.

SMS was incorporated in July, 2017. It is setting up a restaurant
and a microbrewery at Seawoods Grand Central Mall, Navi Mumbai.
The firm is promoted by Mr. Naresh Patel and Mr. Sunil Baviskar.
It is expected to commence operations from end-December 2017.


SHIMLA AUTOS: CRISIL Lowers Rating on INR5MM Cash Loan to 'D'
-------------------------------------------------------------
CRISIL Ratings has been consistently following up with Shimla
Autos Private Limited (SAPL) for obtaining information through
letters and emails dated October 6, 2017 and October 24, 2017
among others, apart from telephonic communication. However, the
issuer has remained non cooperative.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee           1        CRISIL D (Issuer Not
                                     Cooperating; Downgraded
                                     from 'CRISIL A4')

   Cash Credit              5        CRISIL D (Issuer Not
                                     Cooperating; Downgraded
                                     from 'CRISIL B/Stable')

   Term Loan                2.1      CRISIL D (Issuer Not
                                     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 SAPL. 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
SAPL is consistent with 'Scenario 1' outlined in the 'Framework
for Assessing Consistency of Information' corresponding to CRISIL
BB rating category or lower.

Based on the last available information, CRISIL has downgraded
the rating on bank facilities of SAPL to 'CRISIL D/CRISIL D' from
'CRISIL B/Stable/CRISIL A4'. The downgrade reflects delay in
servicing of the term debt and overdrawn working capital limits
for over 30 days.

SAPL was incorporated in April 2012 and commenced operations in
January 2014. The company has exclusive dealership of FML in
Shimla, Ponta Sahib, and Rampur Bushahr in Himachal Pradesh. It
has three showroom with 3s (sales, service and spares) facilities
for tractors, utility vehicles, and light commercial vehicles.
The company is managed by Mr. Sandeepni Bhardwaj and Ms Bhumika
Bhardwaj.


SHRI AGRAWAL: ICRA Withdraws B+ Rating on INR21cr LT Loan
---------------------------------------------------------
ICRA Ratings has withdrawn the long-term rating outstanding of
[ICRA]B+ assigned to the INR21.00-crore bank facilities of Shri
Agrawal Educational and Cultural Society (SAEC).


                          Amount
  Facilities           (INR crore)     Ratings
  ----------           -----------     -------
  Long-term fund-based     21.00       [ICRA]B+; Withdrawn

Rationale

The rating is withdrawn in accordance with ICRA's policy on
withdrawal and suspension and at the request of the company,
based on the no objection certificate provided by its banker.

Formed in FY2008, by Mr. Sudhir Kumar Agrawal, SAEC has set up an
engineering college under the name, Sagar Institute of Science,
Technology and Engineering in Ratibad (Bhopal) which is
affiliated to Rajiv Ghandhi Proudyogiki Vishwavidyalaya, Bhopal
(Madhya Pradesh). The engineering college commenced operations
from AY 2009-10 with an intake of 90 students and presently has
strength of 816 students (in AY 2015-16). The college offers
graduate (B.E.) and post-graduate (M.E.) courses. The society has
also set up a school 'Sagar Public School' in Bhopal which
commenced operations from AY 2014-15 and currently running
classes up to Standard VIII, and student strength of 1139 for AY
2016-17.

SAEC is part of the Bhopal based Sagar group, which has
operations across education, real estate and textile sectors. In
addition to SAEC, another society in the Sagar group, Shri
Agrawal Educational and Welfare Society, has set up four colleges
and two schools in Bhopal which have a total strength of ~8,300
students (of which about 5,000 are students in schools). Two
group companies, Agrawal Builders and Agrawal Builders and
Colonizers have been engaged in civil construction and real
estate development for the past three decades in Bhopal. Another
group company - Sagar Manufacturers Private Limited, manufactures
cotton spun yarn and has a spinning unit in Madhya Pradesh with
an installed capacity of 75,552 spindles, which commenced
commercial production from March 2013.


SHRINI SOFTEX: Ind-Ra Moves BB Issuer Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Shrini Softex
India Ltd's (SSIL) Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the surveillance
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:

-- INR74.2 mil. Term loan migrated to non-cooperating category
    with IND BB(ISSUER NOT COOPERATING) rating; and

-- INR200 mil. Fund-based working capital limit 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
November 23, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

SSIL started commercials operations in 2012. The company
manufactures ring spun combed yarn, carded yarn, compact and
double yarn in the count ranges of Ne 30/1 to Ne 50/1. It has a
manufacturing capacity of 12,000 spindles.


SHYAM ENTERPRISES: ICRA Withdraws B+ Rating on INR9.49cr Loan
-------------------------------------------------------------
ICRA has withdrawn the long term rating of [ICRA]B+ to the
INR11.60 crore long term fund based bank facility of Shyam
Enterprises in accordance with ICRA's policy on withdrawal and
suspension.

                       Amount
  Facilities         (INR crore)    Ratings
  ----------         -----------    -------
  Long term-fund
  based Limits            9.49      [ICRA]B+(Stable); withdrawn

  Long Term-
  unallocated Limits      2.11      [ICRA]B+(Stable); withdrawn

Established by Mr. Ashok Avadh in 2006, Shyam Enterprises (SE) is
engaged in trading of import licences (scrip's). Shyam
Enterprises procures licences from exporters, mainly
pharmaceutical and agro-based companies and sells them to other
traders who further re-sell it to end users i.e. importers. Shyam
Enterprises also provides consultancy services i.e. preparation
of application, submission and follow-up with concerned
authorities for claiming export incentive on behalf of exporters.
The firm's registered office is at Dadar, Mumbai.


SWADESHI ALUMINIUM: CRISIL Assigns B Rating to INR23MM Cash Loan
----------------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B/Stable' rating to the
long-term bank facility of Swadeshi Aluminium Company Private
Limited.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             23        CRISIL B/Stable

The rating reflects its below-average financial risk profile and
working capital-intensive operations leading to constrained
liquidity. These weaknesses are partially offset by promoters'
extensive experience.

Analytical Approach

Estimated unsecured loans of INR2.1 crore from promoters (as on
March 31, 2017) have been treated as neither debt nor equity as
these are expected to remain in business.

Key Rating Drivers & Detailed Description

Weaknesses

* Below-average financial risk profile: Gearing is estimated to
be high at over 3.8 times and networth small at just over INR6
crore, as on March 31, 2017. Also, debt protection metrics were
weak, with interest coverage and net cash accrual to adjusted
debt ratios of 1.3 times and 0.02 time, respectively, in fiscal
2017.

* Stretched liquidity due to working capital-intensive
operations: The company has to extend high credit of 150-180 days
to customers, leading to gross current assets of over 290 days as
on March 31, 2017. Against this, it gets negligible credit from
suppliers.

Strength:

* Experience of promoters: Presence of close to two decades in
the aluminium profiles segment is likely to continue to benefit
Salco over the medium term.

Outlook: Stable

CRISIL believes Salco will continue to benefit over the medium
term from the extensive experience of its promoters. The outlook
may be revised to 'Positive' in case of higher sales and
profitability, while efficiently managing working capital cycle.
The outlook may be revised to 'Negative' in case of further
stretch in working capital cycle or decline in scale of
operations or profitability.

Established in 2000 in Sonipat, Haryana, by Mr. Shyam Sunder
Nagpal, Mr. Satpal Nagpal, Mr. Sanjay Nagpal, and Mr. Som
Bhutani, Salco manufactures aluminum profiles used in real
estate.


TEJINDER KAUR: Ind-Ra Moves BB- Issuer Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Tejinder Kaur's
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 actions are:

-- INR13.9 mil. Fund-based limits  migrated to non-cooperating
    category with IND BB-(ISSUER NOT COOPERATING) rating; and

-- INR1.0 mil. Non-fund-based limits migrated to non-cooperating
    category with IND A4+(ISSUER NOT COOPERATING) rating; and

-- INR40.38 mil. Term loans migrated to non-cooperating category
    with IND BB-(ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
September 27, 2016. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Tejinder Kaur is a partnership firm that provides LPG
transportation services to major oil companies.


VEDANTA RESOURCES: Moody's Hikes CFR to Ba3; Outlook Stable
-----------------------------------------------------------
Moody's Investors Service has upgraded Vedanta Resources plc's
corporate family rating (CFR) to Ba3 from B1.

At the same time, Moody's has upgraded the company's senior
unsecured bond rating to B2 from B3.

The rating outlook is stable.

RATINGS RATIONALE

"The upgrade of Vedanta's ratings reflects Moody's view that the
relatively benign operating environment and stabilizing commodity
prices will aid in enhancing the company's EBITDA and cash flow
generation," says Kaustubh Chaubal, a Moody's Vice President and
Senior Analyst. "Moreover, a substantial reduction in absolute
debt levels will lead to an improving trajectory for its credit
metrics".

"The upgrade also reflects the significant progress that Vedanta
has made in reducing absolute debt levels following the merger of
its subsidiary Vedanta Ltd. with the group's oil and gas
subsidiary Cairn India Ltd. (CIL); the company has reduced about
17% of its gross debt," adds Chaubal who is Moody's lead analyst
on Vedanta.

Moody's expects a further reduction in gross debt and improvement
in earnings to lead to adjusted leverage -- measured by adjusted
debt/adjusted EBITDA -- declining to 3.4x by March 2018, down
from an estimated 3.7x at September 2017 and 4.9x at March 2017.

Meanwhile, higher sales volumes led by an increase in production
will pave the way for earnings and cash flow expansion, although
annual capital expenditure aggregating $1.2-1.5 billion and
dividend payments will likely limit free cash flow generation.

Vedanta's unsecured bond issuances in January and August this
year -- each totaling $1.0 billion -- and a $840 million term
loan for refinancing constitute proactive steps towards
refinancing its debt maturities and lengthening the age profile
of its debt.

Moody's expects the current operating environment and the
company's track record in turning around its operations will help
in Vedanta plc's ability to refinance the term debt -- largely
owed to relationship banks -- aggregating $1.2 billion due over
the next 16 months.

The Ba3 CFR also takes into account Vedanta's (1) large scale,
(2) diversified business profile, as reflected by its presence in
the copper, zinc, aluminum, iron ore, oil and gas, and power
businesses across multiple geographies; and (3) track record of
relative margin stability through commodity cycles.

Moody's rates the senior unsecured bonds issued by the holding
company Vedanta Resources plc at B2 -- two notches lower than the
company's CFR to reflect the bondholders' relatively weak
position against the creditors of operating subsidiaries.

The two-notch difference reflects the acute legal and structural
subordination of holding company debt holders to the rest of the
group, due to a highly complex group structure with less than
100% shareholding in key operating subsidiaries.

The stable rating outlook reflects Moody's view that Vedanta's
operating and financial metrics will continue to steadily improve
with stable commodity prices. In particular, Moody's expects that
its earnings expansion and a permanent reduction in gross debt
will increase the pace of correction in the company's leverage.

The stable outlook also incorporates Moody's expectation that
Vedanta will continue with proactive liability management,
refinancing its debt way ahead of scheduled maturities. Any
departure from such financial policies could weigh on the
ratings.

What Could Change the Rating -- Up

The ratings could experience positive momentum if commodity
prices strengthen and support Vedanta in continuing to deliver
strong operating results.

Moreover, while adjusted leverage within the 3.0x -- 3.3x range
is adequate, positive free cash flow generation will be key for a
higher rating.

Moody's would also look for EBIT/interest in excess of 3.0x for a
higher rating

What Could Change the Rating -- Down

Moody's does not anticipate downward rating pressure over the
next 12-18 months, given the stable outlook.

Nevertheless, the ratings could come under negative pressure if:
(1) commodity prices turn weak again, such that Vedanta's
consolidated adjusted EBITDA is pressured, despite its efforts to
ramp up shipments; (2) the company is unable to sustain and
improve its cost reduction initiatives, such that profitability
weakens, with its consolidated EBIT margin falling below 15% on a
sustained basis; and/or (3) its financial metrics weaken.

Credit metrics indicative of a downgrade include adjusted
debt/EBITDA in excess of 4.0x, EBIT/interest coverage below 2.5x,
or cash flow from operations less dividends/adjusted debt below
15%.

An adverse ruling with respect to CIL's disputed $3.2 billion tax
liability would also exert negative pressure on the rating.

The principal methodology used in these ratings was Global Mining
Industry published in August 2014.

Vedanta Resources plc, headquartered in London, is a diversified
resources company with interests mainly in India. Its main
operations are held by Vedanta Limited, a 50.1%-owned subsidiary.
Through Vedanta Resources' various operating subsidiaries, the
group produces zinc, lead, silver, aluminum, iron ore and power.

Listed on the London Stock Exchange, Vedanta Resources is 69.9%
owned by Volcan Investments Ltd. For the year ended March 2017,
Vedanta Resources reported revenues of $11.5 billion and
operating EBITDA of $3.2 billion.



=================
I N D O N E S I A
=================


ABM INVESTAMA: Tap Issue No Impact on BB- Bond Rating, Fitch Says
-----------------------------------------------------------------
PT ABM Investama Tbk's (BB-/Stable) proposed additional issuance
of its 7.125% senior notes due 2022 will not affect the existing
'BB-' rating on the bonds, says Fitch Ratings. The proposed tap
and existing USD300 million notes are rated at the same level as
ABM's senior unsecured rating, as they represent its direct,
unconditional, unsecured and unsubordinated obligations. Proceeds
from the proposed tap issue will be used for general corporate
purposes.

ABM's ratings reflect its well-established and diversified
operations, which include Indonesia's fourth-largest coal-
contracting business, low-cost coal mining, logistics and
engineering businesses. ABM also benefits from its affiliates,
including PT Trakindo Utama, which provides most of the equipment
and after-sales service for the coal-contracting businesses and
is an important customer for the company's logistics and
engineering divisions. ABM's coal-contracting business benefits
from a young fleet and cost-efficient operations with margins
similar to those of larger competitors. The ratings are
constrained by ABM's commodity risk, given that around 75% of its
earnings derive from the coal industry.

ABM's operating results improved in 9M17 due to rising average
thermal coal prices since mid-2016. ABM's EBITDA increased by 26%
to USD120 million (9M16: USD96 million) and its net debt fell to
USD257 million, from USD334 million at end-2016. However, Fitch
expects production increases in response to higher thermal coal
prices to soften prices over the medium term. The impact of
volatile coal prices on ABM's financials should be cushioned by
its integrated operations and low coal-production costs. Fitch
expects ABM's FFO adjusted net leverage to remain below 3.0x
(2016: 4.1x) and FFO fixed-charge coverage at above 2.5x (2016:
2.3x) in the next two to three years. Fitch exclude ABM's
distributive power division, comprising of PT Sumberdaya Sewatama
and AJN, from the ratio computations because this division
operates on a standalone base, is non-core to ABM and its debt is
non-recourse to ABM.

Fitch expects ABM to have adequate liquidity due to solid cash
flow from operations and moderate capex over the next two to
three years. Cash and cash equivalents amounted to USD97 million,
excluding Sumberdaya Sewatama and AJN, against short-term debt
maturities of USD14 million as at September 2017. Of ABM's USD340
million of long-term debt, USD300 million comprised of notes due
in 2022. The company has a long-standing relationship with its
bank group, resulting in strong access to the domestic bank
market.


ABM INVESTAMA: Tap Issuance No Impact on Moody's Ba3 Rating
-----------------------------------------------------------
Moody's Investors Service says that the increase in debt
following the announcement by PT ABM Investama tbk (Ba3 stable)
of a tap issuance under its existing 7.125% senior unsecured
notes due 2022 is credit negative.

However, its ratings remain unaffected.

The ratings outlook remains stable.

"Moody's expect, pro forma for the possible increase in debt,
ABM's leverage for the restricted group -- as measured by
adjusted debt/EBITDA -- will weaken to approximately 2.8-3.0x at
the end of the 12 months ended September 2017," says Saranga
Ranasinghe, a Moody's Assistant Vice President and Analyst.

"Despite the increase in debt, Moody's expect ABM's leverage to
remain within the threshold set for the current Ba3 rating," adds
Ranasinghe, who is also Moody's Lead Analyst for ABM Investama.

ABM's rating is constrained by the execution risk over the next
12-18 months related to the extension of the reserve life at one
its key mines. Moody's expect the company to utilize the proceeds
from the tap issuance to supplement funding for measures required
to increase reserve life.

Operationally, ABM reported strong results for the nine months
ended September 2017. Revenue increased around 25% for the
restricted group, mostly driven by improved thermal coal prices
and sales.

ABM's Ba3 corporate family rating reflects its track record of
maintaining a strong performance through the coal price cycle,
supported by its integrated operations and focus on costs. The
rating also takes into consideration ABM's moderate financial
profile, supported by its prudent capital management and
resilient performance during the recent downturn in coal prices.

At the same time, the rating also reflects its high exposure to
the cyclical thermal coal industry, small scale and customer
concentration risk, given that a few key contracts make up a
substantial portion of its earnings.

Upward rating pressure over the next 2 years is unlikely, given
ABM's small scale compared to its peers, reliance on
predominantly two mines for coal production, and high degree of
customer concentration.

Nevertheless, upward rating pressure could emerge over time if
the company reduces its customer concentration, establishes long
reserve lives at its key mines, reduces its reliance on the
cyclical coal industry and improves financial flexibility, such
that its financial leverage, as measured by total debt/EBITDA,
falls below 2.5x (restricted group); and EBIT/interest
(restricted group) rises above 3.0x on a sustained basis.

On the other hand, downward rating pressure could emerge as a
result of: (1) its failure to extend mine life and/or a reduction
in expected coal volumes; or (2) its failure to maintain or
increase volumes in its mining services business; or (3) any
evidence of cash leakage to Sewatama.

Specific indicators Moody's would look for include total
debt/EBITDA (restricted group) remaining above 3.5x; and
EBIT/interest (restricted group) falling below 2.0x.

The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.

ABM Investama Tbk (P.T.) (ABM is an integrated energy company
with investments in coal mining, mining services, engineering and
logistics and power generation.

The company listed on the Indonesian Stock Exchange in December
2011. PT Tiara Margo Trakindo owns 23% of the company, while
Valle Verde PTE LTD holds another 55%.



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


TAKATA CORP: Reaches Final Deal to Sell Assets to Key Safety
------------------------------------------------------------
The Associated Press reports that Takata Corp. is signing a
signed a definitive agreement to sell most of its assets to a
Chinese-owned rival.

Key Safety Systems of suburban Detroit will pay $1.6 billion
(JPY175 billion) in a deal expected to close early next year, the
AP states.

According to the report, the companies reached an understanding
on the sale in June. Key will get all Takata assets but those
making replacement air bag inflators. Takata will continue to run
those operations until they close, the report notes.

Takata inflators can explode with too much force and spew
shrapnel into drivers and passengers, the AP says.

Much of the money will go to pay a $1 billion penalty from a U.S.
criminal fraud case.

The deal is a key part of Takata's bankruptcy cases filed last
summer in the U.S. and Japan, adds the AP.

                         About Takata Corp

Japan-based Takata Corporation (TYO:7312) --
http://www.takata.com/en/-- develops, manufactures and sells
safety products for automobiles.  The Company offers seatbelts,
airbags, steering wheels, child seats and trim parts.

Headquartered in Tokyo, Japan, Takata operates 56 plants in 20
countries with approximately 46,000 global employees worldwide.
The Company has subsidiaries located in Japan, the United States,
Brazil, Germany, Thailand, Philippines, Romania, Singapore,
Korea, China and other countries.

Takata Corp. filed for bankruptcy protection in Tokyo and the
U.S., amid recall costs and lawsuits over its defective airbags.
Takata and its Japanese subsidiaries commenced proceedings under
the Civil Rehabilitation Act in Japan in the Tokyo District Court
on June 25, 2017.

Takata's main U.S. subsidiary TK Holdings Inc. and 11 of its U.S.
and Mexican affiliates each filed voluntary petitions under
Chapter 11 of the U.S. Bankruptcy Code (Bankr. D. Del. Lead Case
No.17-11375) on June 25, 2017.  Together with the bankruptcy
filings, Takata announced it has reached a deal to sell all its
global assets and operations to Key Safety Systems (KSS) for
US$1.588 billion.

Nagashima Ohno & Tsunematsu is Takata's counsel in the Japanese
proceedings.  Weil, Gotshal & Manges LLP and Richards, Layton &
Finger, P.A., are serving as counsel in the U.S. cases.
PricewaterhouseCoopers is serving as financial advisor, and
Lazard is serving as investment banker to Takata.  Ernst & Young
LLP is tax advisor.  Prime Clerk is the claims and noticing
agent.

Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal
counsel, KPMG is serving as financial advisor, Jefferies LLC is
acting as lead financial advisor.  UBS Investment Bank also
provides financial advice to KSS.

On June 28, 2017, TK Holdings, as the foreign representative of
the Chapter 11 Debtors, obtained an order of the Ontario Superior
Court of Justice (Commercial List) granting, among other things,
a stay of proceedings against the Chapter 11 Debtors pursuant to
Part IV of the Companies' Creditors Arrangement Act.  The
Canadian Court appointed FTI Consulting Canada Inc. as
information officer. TK Holdings, as the foreign representative,
is represented by McCarthy Tetrault LLP.

The U.S. Trustee has appointed an Official Committee of Unsecured
Trade Creditors and a separate Official Committee of Tort
Claimants.

The Official Committee of Unsecured Creditors has selected
Christopher M. Samis, Esq., L. Katherine Good, Esq., and Kevin F.
Shaw, Esq., at Whiteford, Taylor & Preston LLC, in Wilmington,
Delaware; Dennis F. Dunne, Esq., Abhilash M. Raval, Esq., and
Tyson Lomazow, Esq., at Milbank Tweed Hadley & McCloy LLP, in New
York; and Andrew M. Leblanc, Esq., at Milbank, Tweed, Hadley &
McCloy LLP, in Washington, D.C., as its bankruptcy counsel.  The
Committee has also tapped Chuo Sogo Law Office PC as Japan
counsel.

The Official Committee of Tort Claimants selected Pachulski Stang
Ziehl & Jones LLP as counsel.  Gilbert LLP will evaluate of the
insurance policies.  Sakura Kyodo Law Offices will serve as
special counsel.

Roger Frankel, the legal representative for future personal
injury claimants of TK Holdings Inc., et al., tapped Frankel
Wyron LLP and Ashby & Geddes PA to serve as co-counsel.

Takata Corporation ("TKJP") and affiliates Takata Kyushu
Corporation and Takata Services Corporation commenced Chapter 15
cases (Bankr. D. Del. Case Nos. 17-11713 to 17-11715) on Aug. 9,
2017, to seek U.S. recognition of the civil rehabilitation
proceedings in Japan.  The Hon. Brendan Linehan Shannon oversees
the Chapter 15 cases.  Young, Conaway, Stargatt & Taylor, LLP,
serves as Takata's counsel in the Chapter 15 cases.


TOSHIBA CORP: Closer to End Dispute With Western Digital
--------------------------------------------------------
Nikkei Asian Review reports that Toshiba Corp. appears closer to
solving the dispute with U.S. partner Western Digital over the
planned sale of the Japanese company's memory chip unit by the
end of this month.

"We are definitely advancing step by step" toward a resolution,
said a Toshiba executive who traveled to the U.S. last week to
discuss terms, the Nikkei relates. The two companies have been
negotiating since October. But both sides continue haggling, and
the jury remains out on whether a truce will result, the report
says.

According to the Nikkei, Western Digital has sought international
arbitration to try to block the unit's sale, claiming the deal
violates its joint venture contract with Toshiba. The U.S. hard-
drive maker, which seeks a stake in Toshiba Memory, also is using
the arbitration process as a bargaining chip to draw concessions
from the Japanese technology group, the Nikkei says.

The Nikkei relates that the spat boiled over in early August when
Toshiba said it would invest unilaterally in new equipment at the
Fab 6 production facility at the partners' chipmaking complex in
Yokkaichi, Japan. Western Digital alleges that move violates
contractual obligations as well.

Toshiba also has greenlighted additional investment at Fab 6,
asking Western Digital whether it would join, the report notes.
If Western Digital does not decide to participate by the Nov. 30
deadline, the U.S. company risks harm to its business plans by
becoming unable to procure cutting-edge memory products from that
particular facility.

Western Digital holds firm, saying a possible joint investment in
the Yokkaichi facility and the talks to cancel the arbitration
represent separate issues, the Nikkei reports citing someone
familiar with the negotiations. But Toshiba argues that a joint
investment deal would require Western Digital to withdraw its
arbitration claims, a position that pushes the disgruntled
partner to make a decision by the end of November, the report
says.

The Nikkei says Toshiba has sought to close the memory unit's
sale to a consortium that includes U.S. private equity firm Bain
Capital before the end of March, the deadline by which the
conglomerate needs to re-establish positive shareholder equity so
it can remain a listed entity. Western Digital apparently seeks
to limit influence over the Toshiba Memory business by rival SK
Hynix of South Korea, a member of the consortium.

However, Toshiba announced a decision November 19 to raise
roughly JPY600 billion ($5.33 billion) by selling new shares.
This deal all but guarantees Toshiba will escape negative
shareholder equity by March 31, even if the memory sale has not
been completed, the Nikkei notes.

                         About Toshiba Corp

Toshiba Corporation (TYO:6502) -- http://www.toshiba.co.jp/-- is
a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others.  The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-
scale integrated (LSI) circuits for image information systems and
liquid crystal displays (LCDs), among others.  The Social
Infrastructure segment offers various generators, power
distribution systems, water and sewer systems, transportation
systems and station automation systems, among others.  The Home
Appliance segment offers refrigerators, drying machines, washing
machines, cooking utensils, cleaners and lighting equipment.  The
Others segment leases and sells real estate.

As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 6, 2017, S&P Global Ratings said that it has affirmed its
'CCC-' long-term corporate credit and 'C' short-term corporate
credit and commercial paper program ratings on Japan-based
capital goods and diversified electronics company Toshiba Corp.
S&P also removed the ratings from CreditWatch. The outlook is
negative.

S&P said, "At the same time, we raised the senior unsecured
rating one notch to 'CCC-' from 'CC' following completion of our
review of the rating. The review follows our publication of our
revised issue rating criteria, "Reflecting Subordination Risk In
Corporate Issue Ratings" on Sept. 21, 2017, after which we placed
the rating "under criteria observation" (UCO). With our criteria
review complete, we are removing the UCO designation from the
rating. We also removed the senior unsecured rating from
CreditWatch with negative implications following our affirmation
of the long-term corporate credit rating and resolution of the
CreditWatch."



===============
M O N G O L I A
===============


KHAN BANK: Fitch Affirms B- IDR; Outlook Revised to Positive
------------------------------------------------------------
Fitch Ratings has revised the Outlooks on the Long-Term Issuer
Default Ratings (IDRs) of Mongolia-based Khan Bank LLC, XacBank
LLC and State Bank LLC to Positive from Stable. The banks' Long-
Term IDRs have been affirmed at 'B-' and their Viability Ratings
at 'b-'.

The rating action follows Fitch's periodic review of the
Mongolian banks and the Mongolian sovereign. See Fitch Revises
Outlook on Mongolia to Positive; Affirms at 'B-', published on 17
November 2017.

Our 2018 outlook on the banking system is revised to Stable from
Negative. There are signs of cyclical economic improvement,
although challenges remain and the asset-quality review (AQR) has
yet to be concluded. Fitch has raised its 2018 GDP forecast to
4.5%, from 3.5%, against its expected GDP of 4.2% for 2017.

KEY RATING DRIVERS
IDRS AND VIABILITY RATINGS

The IDRs of Khan Bank and XacBank are driven by their respective
Viability Ratings, while State Bank's IDR is driven by Fitch
expectation of sovereign support. Therefore, the Positive Outlook
on Khan Bank and XacBank mirrors the prospect for stronger
intrinsic credit profiles as operating conditions improve. For
State Bank, the Positive Outlook reflects Fitch view of improving
sovereign ability to provide extraordinary support, if needed.

The affirmation of the banks' Viability Ratings reflects Fitch
view that their intrinsic credit profiles remain commensurate
with the 'b-' category.

Fitch expects the operating environment to continue improving,
with positive changes over the near- to medium-term being of a
cyclical and structural nature. The sovereign's stabilised fiscal
position has significantly reduced external liquidity risk and
positively affected the economic environment. Fitch also expects
that, with support from the IMF, the Bank of Mongolia's authority
will strengthen as it leads a comprehensive AQR of the banking
system and aligns its supervisory framework more closely with
international standards.

Fitch see easing pressure on all three banks' funding and
liquidity profiles. The Mongolian government's refinancing risks
have receded, banks' deposit funding remains stable and
international financial institutions should continue to provide
term funding, especially for Khan Bank and XacBank.

Fitch do not expect the banks' asset quality to continue
worsening due to the improving operating environment. However,
loan re-classifications are likely to lead to some non-performing
loan ratio adjustments, subject to the result of the AQR,
particularly for rescheduled loans and loans that are past due
but still reported as performing. Notwithstanding, Fitch expect
the banks' non-performing loan ratios to stabilise or even fall
in 2018.

The improving economic environment and the return of investor
confidence have strengthened banks' loan-growth aspirations for
the coming one to two years. Fitch see rapid loan growth as an
indicator of higher risk appetite, but risk controls and capital
management should remain adequate to help banks maintain
sufficient risk buffers.

Fitch expect State Bank's profitability to improve as the
proportion of its subsidised lending at below market rates phases
out. This should allow the bank to focus on more profitable
segments. The bank's weaker-than-peers' capital generation is of
higher influence for its Viability Rating.

SUPPORT RATINGS AND SUPPORT RATING FLOORS
The affirmation of Khan Bank's and State Bank's Support Ratings
and Support Rating Floors reflects Fitch's view that the
sovereign's propensity to provide extraordinary support remains
unchanged given the banks' domestic systemic importance and high
proportion of retail deposit funding.

State Bank's Support Rating Floor is aligned to the sovereign's
rating due to its higher-than-peers' share of government funding
(19% of total funding at end-2016). Fitch believe this, together
with its 100% government ownership, provides a strong incentive
for the authorities to extend extraordinary support, if required.

XacBank's Support Rating and Support Rating Floor have been
affirmed at '5' and 'No Floor', respectively, reflecting Fitch's
view that sovereign support, while possible, cannot be relied
upon. XacBank's higher proportion of wholesale funding could be
used to share losses if that was considered necessary to support
system stability.

RATING SENSITIVITIES
IDRS AND VIABILITY RATINGS

A sovereign rating upgrade could lead to an upgrade in Khan
Bank's and XacBank's IDRs and Viability Ratings and State Bank's
IDRs.

State Bank's IDRs are also sensitive to changes in Fitch's
expectation of the sovereign's willingness to provide support to
the bank. An upgrade in State Bank's Viability Rating could come
from a significant profitability improvement, disciplined growth,
stronger capitalisation or a more diversified funding structure.

Negative rating action on the banks' Viability Ratings could stem
from a higher risk appetite, leading to disproportionate asset
concentration in riskier sectors. In addition to significant loan
quality deterioration, an erosion of capital or funding position
could also result in a downgrade.

A downgrade in Khan Bank's and State Bank's Viability Ratings
would likely result in a downgrade in their IDRs if Fitch
expectation for sovereign support were to change. In contrast, a
downgrade in XacBank's Viability Rating is likely to lead to a
downgrade in its IDR. A sovereign rating downgrade would lead to
a downgrade of all three banks' IDRs and Viability Ratings.

SUPPORT RATINGS AND SUPPORT RATING FLOORS

A perceived change in assumptions around the sovereign's
willingness, or a weakening of its ability, to provide timely
support could result in a change of the Support Rating Floors of
Khan Bank and State Bank. XacBank's Support Rating Floor could be
upgraded if Fitch were to take positive rating action on the
sovereign.

The rating actions are as follows:

Khan Bank LLC
Long-Term Foreign-Currency IDR affirmed at 'B-'; Outlook revised
to Positive from Stable
Short-Term Foreign-Currency IDR affirmed at 'B'
Long-Term Local-Currency IDR affirmed at 'B-'; Outlook revised to
Positive from Stable
Viability Rating affirmed at 'b-'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'B-'

XacBank LLC
Long-Term Foreign-Currency IDR affirmed at 'B-'; Outlook revised
to Positive from Stable
Short-Term Foreign-Currency IDR affirmed at 'B'
Long-Term Local-Currency IDR affirmed at 'B-'; Outlook revised to
Positive from Stable
Viability Rating affirmed at 'b-'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor'

State Bank LLC
Long-Term Foreign-Currency IDR affirmed at 'B-'; Outlook revised
to Positive from Stable
Short-Term Foreign-Currency IDR affirmed at 'B'
Long-Term Local-Currency IDR affirmed at 'B-'; Outlook revised to
Positive from Stable
Viability Rating affirmed at 'b-'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'B-'



===============
P A K I S T A N
===============


PAKISTAN: S&P Assigns 'B' Rating to New USD Sr. Unsecured Notes
---------------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term foreign currency
rating to the proposed benchmark sized U.S. dollar-denominated
senior unsecured notes issued by the Islamic Republic of Pakistan
(B/Stable/B).

The notes represent direct, unconditional, and unsecured
obligations of the sovereign, and rank equally with the
government's other unsecured and unsubordinated debt obligations.


THIRD PAKISTAN: S&P Assigns Prelim 'B' Rating to US$-Denom. Sukuk
-----------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B' long-term foreign
currency rating to the planned U.S. dollar-denominated sukuk
(trust certificates) issuance by The Third Pakistan International
Sukuk Co. (PAK3 Sukuk). PAK3 Sukuk is a public limited liability
company incorporated in the Islamic Republic of Pakistan.

The preliminary 'B' issue rating on the trust certificates
reflects the rating on Pakistan because the transaction fulfils
our conditions for rating sukuk at the same level of its sponsor
(see "Methodology For Rating Sukuk," published Jan. 19, 2015, on
RatingsDirect):

-- Pakistan will provide sufficient and timely contractual
    obligations for the repayment of the periodic distribution
    amounts and the principal amount at the maturity of the sukuk
    or in the case of an early dissolution event (through the
    lease agreement and the purchase undertaking);

-- The obligations of Pakistan are irrevocable and
    unconditional;

-- These obligations will rank equally with Pakistan's other
    unsecured and unsubordinated external indebtedness;

-- Under the sukuk legal documentation, Pakistan will undertake
    to cover all the costs related to the transaction; and

-- S&P assesses as remote the risks that a total loss event
    jeopardizes the full and timely repayments of the trust
    certificates. S&P's opinion is based on the underlying
    assets, consisting of a highway with all construction,
    superstructures, flyovers, and interchanges made on the date
    of the agreement.

Pakistan's legal obligations under the sukuk terms and conditions
might leave investors exposed to residual assets risks. Pakistan
has the obligation to ensure that the assets are covered by
insurance and to make up any shortfall between insurance proceeds
and the principal amount, under a total loss event scenario,
unless it proves beyond any doubt that it has complied with its
insurance obligations.

S&P therefore equalizes its rating on the program with its
foreign currency issuer credit rating on Pakistan.

This report does not constitute a recommendation to buy, hold, or
sell the trust certificates. S&P Global Ratings neither
structures sukuk transactions nor provides opinions with regards
to compliance of the transaction with Sharia.




====================
S O U T H  K O R E A
====================


DOOSAN BOBCAT: Moody's Hikes CFR to Ba3; Outlook Stable
--------------------------------------------------------
Moody's Investors Service has upgraded to Ba3 from B1 the
corporate family rating (CFR) of Doosan Bobcat Inc. (DBI).

At the same time, Moody's has also upgraded to Ba3 from B1 the
rating on the senior secured term loan borrowed by Clark
Equipment Company (CEC) and guaranteed by DBI.

The outlook on the ratings is stable.

RATINGS RATIONALE

"The upgrade of DBI's rating reflects Moody's expectation that
its financial leverage will continue to improve over the next 1-2
years, driven by debt reductions and healthy earnings," says Wan
Hee Yoo, a Moody's Vice President and Senior Credit Officer.

"The rating action also reflects its parent Doosan Infracore Co.,
Ltd.'s (DI) improving financial profile," adds Yoo.

Moody's expects DBI's earnings to increase modestly in 2018,
driven by steady demand from end-markets, supported by continued
infrastructure spending.

In addition, the company recently prepaid its term loan of $100
million which would reduce its reported debt to around $1.24
billion at end-2017 from $1.33 billion at end-2016. Moody's
believes that DBI has the capability to further reduce its term
loan over the next 1-2 years, given its sizable cash balance,
which Moody's estimate at around $350-360 million by end-2017.

Given these factors, Moody's expects DBI's adjusted debt/EBITDA
to fall to about 3.1x-3.2x over the next 12-18 months from 3.4x
in 2016. The company's adjusted net debt/EBITDA should also fall
to around 2.1x-2.2x from 2.7x during the same period. This level
of financial leverage is consistent with the Ba3 rating category.

At the same time, Moody's expects DI's adjusted debt/EBITDA to
improve to about 5.5x-6.0 over the next 12-18 months from 7x in
2016, supported by improved earnings and gradual reductions in
adjusted debt. This improvement partly mitigates DI's weak
liquidity, stemming from sizable debt maturities over the next 12
months.

This development, its IPO in 2016 and the covenant package in
DBI's senior secured term loan will contain the possibility of
sizable cash leakage to its parent at a low level.

DBI's CFR of Ba3 is supported by its dominant position in the
compact farm and construction equipment market in North America,
good ability to generate positive free cash flow and strong
liquidity profile.

However, these strengths are counterbalanced by the highly
cyclical nature of the compact farm and construction equipment
industry, its moderate market position in Europe and the weaker
credit profile of its parent, DI.

CEC's term loan is secured by a first lien - except for those
assets secured by the first lien for the revolver - on
substantially all of the assets of the borrower. It is also
guaranteed by DBI and all present and future wholly owned
domestic subsidiaries of CEC.

Nonetheless, there is no ratings gap between the secured debt and
the CFR of DBI, because this debt would constitute effectively
the only debt for DBI, which implies limited junior cushions in
its liability structure.

The stable ratings outlook reflects Moody's expectation that the
company's credit quality will remain consistent with its current
rating category over the next 1-2 years.

DBI's rating could be upgraded if (1) Doosan group's liquidity
and financial profile improves meaningfully; and at the same time
(2) the company's financial profile improves through enhanced
earnings and/or debt reductions, such that adjusted debt/EBITDA
stays below 2.5x, and adjusted EBITA/interest expense exceeds
6.5x on a sustained basis.

On the other hand, the rating could be downgraded if DBI's
profitability and cash flow weaken, such that adjusted
debt/EBITDA exceeds 4.0x and/or adjusted EBITA/interest expense
stays below 3.0x on a sustained basis. The rating could also be
pressured if its immediate parent, DI, extracts large amounts of
cash from DBI, or if DI's own credit quality deteriorates
significantly.

The principal methodology used in these ratings was Global
Manufacturing Companies published in June 2017.

Doosan Bobcat Inc. is the leading manufacturer of compact farm
and construction equipment in North America and EMEA. It engages
in the design, manufacture, sale and service of compact farm and
construction equipment under the Bobcat brand, and portable power
products.



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


NATIONAL SAVINGS BANK: S&P Alters B+ ICR Outlook to Stable
----------------------------------------------------------
S&P Global Ratings said that it had revised the outlook on its
long-term issuer credit ratings on National Savings Bank (NSB)
and People's Leasing & Finance PLC (PLC) to stable from negative.
At the same time, S&P affirmed the long-term and short-term
issuer credit ratings on these Sri Lanka-based financial
institutions. S&P also affirmed our rating on NSB's senior
unsecured debt.

S&P said, "Our rating actions follow a similar action on the
sovereign earlier today. We do not rate financial institutions in
Sri Lanka above the sovereign because of the direct and indirect
influence the sovereign in distress would have on their
operations, including their ability to service foreign-currency
obligations.

"We believe the Sri Lankan government is almost certain to
provide extraordinary support to NSB, if needed. Our view is
based on our assessment of the critical importance of NSB's
policy role, and the bank's integral link with the government.
This support is legalized through an act of parliament (the
National Savings Bank Act), through which the bank was
established in 1972. Therefore, we equalize the rating on NSB
with the sovereign credit ratings on Sri Lanka (B+/Stable/B).

"The stable outlook on NSB reflects the outlook on the sovereign
credit rating on Sri Lanka and our expectation that the bank's
role for, and link to, the government will remain unchanged over
the next 12-24 years. We could upgrade NSB if we raise the
sovereign credit rating and the bank's role for, and link to, the
government remains unchanged. We could downgrade NSB if we lower
the sovereign credit rating or if the bank's role for, or link
with, the government weakens along with a deterioration in the
bank's credit profile."

The ratings on PLC continue to reflect the credit profile of the
People's Bank group, of which PLC is a core entity. The ratings
on PLC are equalized to the group's credit profile.

S&P said, "The stable outlook on PLC reflects our expectation
that PLC will remain a core entity of the People's Bank group at
least for the next 12 months. We don't see any upside in next 12
months. We may downgrade PLC if the People's Bank group's
capitalization reduces substantially."

RATINGS LIST

  Ratings Affirmed; Outlook Action
                                 To              From
  National Savings Bank
  Issuer Credit Ratings          B+/Stable/B     B+/Negative/B
   Senior Unsecured              B+              B+

  People's Leasing & Finance PLC
   Issuer Credit Ratings         B+/Stable/B     B+/Negative/B


SRI LANKA: S&P Alters Outlook to Stable & Affirms 'B+/B' SCR
-------------------------------------------------------------
S&P Global Ratings revised its outlook on the Democratic
Socialist Republic of Sri Lanka to stable from negative. S&P
said, "At the same time, we affirmed our 'B+' long-term and 'B'
short-term sovereign credit ratings on Sri Lanka. We also left
our transfer and convertibility risk assessment on Sri Lanka
unchanged at 'B+'."

OUTLOOK

The stable outlook reflects S&P's expectation that the government
will maintain the reform momentum over the next 12 months and
smooth the upcoming surge in debt redemptions, particularly in
2019.

Downward pressure on the rating could materialize if the
political environment were to become more fractious, derailing
the legislative program, especially its liability management
reform.

A higher rating is unlikely in the next 12 months, but upward
pressure could coalesce if Sri Lanka's external and fiscal
indicators show dramatic improvement. Upside pressure could also
materialize if S&P concludes that there has been a substantive
improvement in Sri Lanka's institutional settings, including a
continued strengthening of monetary policy credibility and
independence at the central bank.

RATIONALE

S&P revised the outlook to stable based on its assessment that
the nascent strengthening of Sri Lanka's institutions and
governance practices is on a more sustainable footing. This
assessment is predicated on not only the passage of the Inland
Revenue Act (IRA) in September 2017, but also on the expected
adoption of further reforms over the next 12-18 months. This
includes the passage of the Liability Management Act, which would
allow the government to proactively address rising sovereign debt
maturities in 2019.

These positive developments are balanced by ongoing rating
constraints, which include high external and net general
government indebtedness. With GDP per capita estimated to reach
approximately US$4,000 by the end of 2017, Sri Lanka's economic
assessment also represents a rating weakness. This rating
constraint weighs against Sri Lanka's sound growth potential,
supported by competitiveness in the garment, tourism, and
business process outsourcing sectors.

Although S&P believes reform momentum is improving, it continues
to observe significant challenges to the policymaking environment
owing to legacy institutional constraints and a fragmented
political landscape. Therefore, Sri Lanka's institutional
assessment remains a weakness.

INSTITUTIONAL AND ECONOMIC PROFILE: REFORMS MARK IMPROVING TREND
IN GOVERNANCE

-- The Inland Revenue Act marks a continuation of reform
    momentum. S&P expects further positive reforms to materialize
    over the next 12-18 months.

-- Nevertheless, Sri Lanka continues to face impediments to
    institutional capacity.

-- Sri Lanka's relatively low income level remains a rating
    constraint.

Sri Lanka's coalition government has made progress on economic
reforms over the past six months. Most notably, the IRA
highlights the government's continued adherence to the
International Monetary Fund (IMF) reform program, and proves its
ability to pass controversial reforms despite a fractious
parliamentary landscape. The passage of the IRA also goes to the
core of Sri Lanka's fiscal challenge--it collects little tax.

Deeply rooted factionalism remains a constraint for Sri Lanka's
institutional assessment, because S&P believes it hinders the
government's ability to more effectively address the economy's
imbalances. This, in turn, weighs on business confidence,
investment plans, and overall growth prospects; the correlation
between these conditions and the relative underperformance of the
economy has been evident since 2015. That said, the government
has proven itself willing and capable of adopting potentially
painful reforms in the wake of more fiscally liberal regimes.

As S&P has noted previously, it believes the Central Bank of Sri
Lanka's (CBSL) ability to sustain economic growth while
attenuating economic or financial shocks continues to improve.
The central bank is building a record of credibility, shown in
reducing inflation through using market-based instruments to
conduct monetary policy and the planned introduction of an
inflation-targeting regime. However, we do not consider the
central bank to be independent of other policymaking
institutions.

Sri Lanka's growth outlook is robust, though not strong enough to
differentiate the economy from those of other sovereigns at a
similar level of development. S&P said, "Growth should be
underpinned by rising tourist arrivals, a uniquely specialized
garment sector, strong potential in business process outsourcing,
and moderate inflation, which we expect to remain in the single
digits. We believe Sri Lanka will most likely maintain real per
capita GDP growth of 4.2% per year over 2017-2020 (equivalent to
4.9% real GDP growth). Stronger growth, in our view, would
require improved institutional settings and a pickup in export
markets."

FLEXIBILITY AND PERFORMANCE PROFILE: EXTERNAL METRICS STABILIZE,
WHILE FISCAL PERFORMANCE GRADUALLY IMPROVES

-- Sri Lanka's external liquidity and debt ratios have
    stabilized. However, the country's external debt remains
    high.

-- Sri Lanka's debt stock and servicing costs remain very high.
    However, the trend in debt accumulation is improving, with
    annual deficits narrowing.

-- Because most public debt is denominated in foreign currency,
    the external debt-to-GDP ratio is highly sensitive to the
    exchange rate.

-- The trend is positive for Sri Lanka's monetary assessment,
    with improving institutional capacity at the central bank.

Although the fiscal trajectory suggests a decline in the
government's debt stock relative to GDP, there are risks to this
expectation. In particular, more than 40% of Sri Lanka's high
stock of central government debt is denominated in foreign
currency. S&P said, "Our base-case scenario envisages a gradual
depreciation of the Sri Lankan rupee versus the U.S. dollar; a
more aggressive weakening of the rupee would cause debt metrics
to underperform our forecasts. Although the central bank has
shown an increased willingness to allow flexibility in the Sri
Lankan rupee, we expect policymakers to focus on exchange rate
stability, in view of the proportion of foreign currency-
denominated debt dynamics. If Sri Lanka's public debt were all
denominated in its own currency, this would not be a rating
constraint."
Sri Lanka's external liquidity position continues to stabilize,
and we view the ongoing IMF program as supportive toward this
trend. However, the country's external metrics are still beset
with the following weaknesses:

-- S&P forecasts the current account deficit to amount to 2.9%
    of GDP in 2017, a slight deterioration from an estimated 2.4%
    in 2016. The decline is largely due to unusually poor weather
    conditions, which gave rise to higher agricultural imports.
    S&P believes the trend will reverse in 2018.

-- Although remittances have historically supported the current
    account position, inflows have been somewhat weaker so far in
    2017, owing to strong dependence on transfers from Gulf
    states. S&& forecasst only modest growth in net transfers
    even if rising oil prices limit downside risk to remittances.

-- Sri Lanka's external sovereign debt maturities will rise
    considerably in 2019. This will put pressure on government
    and external accounts, in the absence of proactive liability
    management.

S&P said, "We expect external liquidity (measured by gross
external financing needs as a percentage of current account
receipts [CAR] plus usable reserves) to average 124% over 2017-
2020, compared with 121% in 2015-2016. We also forecast that the
country's external debt (net of official reserves and financial
sector external assets) will average 146% of CAR from 2017-2020,
a slight deterioration from 142% in 2016."

External liquidity support from the IMF has eased near-term
pressures, but structural measures will be needed to address Sri
Lanka's external vulnerabilities over the long run. Although
these risks could be further mitigated by allowing the Sri Lankan
rupee to float more freely, it would worsen Sri Lanka's external
debt metrics.

Nevertheless, greater tolerance for a weaker rupee from the CBSL
would theoretically allow for a more rapid accumulation of
foreign exchange reserves, which remain low despite recent
improvements. S&P forecasts the central bank's usable foreign
exchange reserves to reach US$5.4 billion by the end of 2017,
versus US$3.5 billion in 2016. A few factors have strengthened
its foreign exchange reserves: the issuance of an international
sovereign bond in second-quarter 2017, net foreign exchange
purchases equivalent to US$1.2 billion by the central bank so far
this year, and a US$1.0 billion syndicated loan.

S&P said, "During 2017-2020, we expect fiscal consolidation to
reduce annual borrowing further. Part of our improved projections
reflect the expected effect of the IRA in gradually broadening
the tax base by eliminating exemptions and reducing evasion,
especially of value-added tax (VAT) collection after the
introduction of a higher headline VAT rate. We project annual
growth in general government debt to average 5.4% of GDP for
2017-2020, versus an average of 7.8% annually from 2014-2016. In
view of Sri Lanka's robust nominal GDP growth, we project net
general government debt to decline to approximately 72% of GDP by
2020, assuming a gradual rupee depreciation versus the U.S.
dollar.

"At the same time, we expect only slow progress in reducing debt
servicing costs, and we estimate that general government interest
expenditures will account for more than 36% of government revenue
in 2017. This is the third-highest ratio among the sovereigns we
currently rate, trailing only Lebanon and Egypt (see "Sovereign
Risk Indicators," published Oct. 13, 2017; a free interactive
version is available at spratings.com/sri).

"Combining our view of Sri Lanka's state-owned enterprises and
its small financial system, we view the government's contingent
liabilities as limited. Expected reforms to fuel and electricity
pricing formulae should improve the financial sustainability of
the Ceylon Electricity Board and Ceylon Petroleum Corp., which
are key state-owned enterprises. At the same time, the national
financial sector has a limited capacity to lend more to the
government without possibly crowding out private-sector
borrowing, owing to its large exposure to the government sector."

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable (see 'Related Criteria And Research'). At
the onset of the committee, the chair confirmed that the
information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was
sufficient for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

All key rating factors were unchanged.

The chair ensured every voting member was given the opportunity
to articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action (see 'Related Criteria And Research').

RATINGS LIST

  Outlook Action; Ratings Affirmed
                             To                 From
  Sri Lanka (Democratic Socialist Republic of)
   Sovereign Credit Rating   B+/Stable/B        B+/Negative/B
   Transfer & Convertibility Assessment
    Local Currency           B+                 B+
   Senior Unsecured          B+                 B+



===============
X X X X X X X X
===============


* Asia-Pacific Safest Region for Cover Pool Credit, Fitch Says
--------------------------------------------------------------
Asia-Pacific is the safest region for mortgage cover pools,
according to Fitch Ratings' analysis of 'B' portfolio loss rates
(PLR) across all its rated covered bond programmes. The average
'B' PLR for Fitch-rated Asia-Pacific covered bond programmes was
0.4%, half the average 'B' PLR for Fitch-rated non-peripheral
eurozone covered bond programmes.

Fitch's 'B' PLR corresponds to the cover pool's lifetime loss
expectation in a low-stress scenario. The rating scenario
represents a mild stress, which differentiates it from the
expected-case scenario. It is used to compare the
creditworthiness of loan portfolios securing covered bonds,
irrespective of the covered bonds' rating. Fitch's "APAC Covered
Bonds Quarterly - 3Q17" report outlines the average change in the
'B' PLR for the Asia-Pacific region compared with 2016 and ranks
the countries where the agency rates mortgage covered bond
programmes.

Fitch has also compared the credit quality of the cover pools
against residential mortgage-backed securities (RMBS)
transactions. The agency expected cover pools to be of better
credit quality than RMBS in countries where issuing banks use
both for funding, as covered bond issuers actively manage pools
by removing arrears and defaulted loans and limit higher
loan/value ratio (LVR) loans, which is not the case for RMBS
transactions.

However, when looking at 36 RMBS transactions originated by
Fitch-rated covered-bond issuing banks in Australia, the reverse
was true. The average 'B' PLR across the RMBS transactions was
0.3% lower than that of the cover pool. This was due to the use
of lenders' mortgage insurance in the portfolios, which enhances
recoveries in low rating stresses on defaulted loans compared
with cover pools that have little or no lenders' mortgage
insurance. Generally, lenders' mortgage insurance is taken out by
the mortgage lender for loans with an LVR of 80% or more. Before
2010, it was common for originators to have lenders' mortgage
insurance on the entire loan portfolio.

The use of lenders' mortgage insurance has been decreasing in
RMBS transactions over the past couple of years; as of end-3Q17,
only 59% of the prime RMBS market had lenders' mortgage insurance
cover, down 0.8% from the previous quarter. Should this trend
continue, the average 'B' PLR on RMBS will increase over time.

Fitch's "APAC Covered Bonds Quarterly - 3Q17" report also
contains aggregate information on the 15 Asia-Pacific programmes
that Fitch rates publicly grouped by country and each programme's
individual statistics as well as commentary on covered bond
rating actions and issuance. Data is as of end-September 2017.



                             *********

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.


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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.



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