/raid1/www/Hosts/bankrupt/TCRAP_Public/171215.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

          Friday, December 15, 2017, Vol. 20, No. 249

                            Headlines


A U S T R A L I A

ARISTOCRAT LEISURE: Moody's Affirms Ba1 CFR on Big Fish Deal
CIVILS WA: First Creditors' Meeting Slated for Dec. 21
IRON MOUNTAIN AUSTRALIA: Moody's Changes Outlook to Negative
ISOBOARD PTY: First Creditors' Meeting Set for Dec. 22
JANG'S KITCHEN: First Creditors' Meeting Set for Dec. 21

LOCAL INVERLOCH: First Creditors' Meeting Set for Dec. 22
RANVEER MEDICAL: First Creditors' Meeting Set for Dec. 20
ROKK EBONY: First Creditors' Meeting Slated for Dec. 22


C H I N A

ANTON OILFIELD: Fitch Hikes Long-Term IDR to B-; Outlook Stable
CHINA SCIENCE: Fitch Assigns 'B+' LT Issuer Default Rating
CIFI HOLDINGS: Moody's Assigns B1 Senior Unsecured Debt Rating
HNA GROUP: Met With Chinese Banks for Financing Talks
SHANGRAO CITY CONSTRUCTION: Fitch Assigns 'BB+' Long-Term IDR


I N D I A

ABT INVESTMENTS: CARE Lowers Rating on INR100cr Loan to D
ASHWANI KUMAR: CRISIL Reaffirms 'B' Rating on INR6.2MM Cash Loan
BHUSHAN ENERGY: Objects to SBI Insolvency Application
BINAYAK HI-TECH: Ind-Ra Lowers Issuer Rating to 'BB-'
DREAMZ OVERSEAS: CARE Hikes Rating on INR6cr LT Loan to 'B+'

GTN TEXTILES: CARE Reaffirms 'D' Rating on INR29.01cr LT Loan
HARI MARINE: CARE Reaffirms B+ Rating on INR16.97cr LT Loan
KOTECHA INDUSTRIES: CARE Lowers Rating on INR3.50cr LT Loan to D
MAHARSHEE GEOMEMBRANE: CARE Assigns B+ Rating to INR5cr LT Loan
METTU CHINNA: CARE Assigns B Rating to INR7.27cr LT Loan

NAVA HEALTHCARE: CRISIL Reaffirms B+ Rating on INR22.5MM Loan
NEW SAPNA: CARE Lowers Rating on INR7.84cr LT Loan to D
NJT FINANCE: CRISIL Assigns B+ Rating to INR15MM Cash Loan
OM BESCO: CARE Moves D Rating to Not Cooperating Category
OMVISHWA GRAINS: CARE Assigns 'B' Rating to INR7.0cr LT Loan

PADMAJA POWER: Ind-Ra Migrates B Issuer Rating to Non-Cooperating
PALANI ANDAVAR: Ind-Ra Assigns BB+ Issuer Rating, Outlook Stable
PATSPIN INDIA: CARE Reaffirms 'D' Rating on INR121.06cr LT Loan
RANASARIA POLY: Ind-Ra Assigns BB+ Issuer Rating, Outlook Stable
RAVANI REALTERS: CARE Reaffirms B+ Rating on INR120cr LT Loan

SAISUDHIR ENERGY: CARE Moves D Rating to Not Cooperating Category
SENTHUR TEXTILES: CARE Reaffirms B Rating on INR7.73cr LT Loan
SHAHI SHIPPING: CRISIL Hikes Rating on INR5MM Cash Loan to B+
SHOR SHOT: CRISIL Lowers Rating on INR1.5MM Cash Loan to B
SOHAM COLD: CARE Assigns 'B+' Rating to INR5.45cr LT Loan

SRI CHENNAKESAVA: CRISIL Reaffirms B Rating on INR2MM LT Loan
UNITECH LTD: High Court Stays NCLT Order on Government Takeover
UNIVERSAL STAINLESS: CARE Reaffirms B Rating on INR7.66cr Loan
UTTAM DOORS: CARE Moves B+ Rating to Not Cooperating Category
VANTAGE MACHINE: CARE Moves B Rating to Not Cooperating Category

VENKATESH COTTON: CARE Reaffirms B+ Rating on INR7cr LT Loan
VIBFAST PIGMENTS: Ind-Ra Corrects Dec. 19, 2016 Release
VIBFAST PIGMENTS: Ind-Ra Migrates BB- Rating to Non-Cooperating
YOGESH POULTRY: CARE Assigns B+ Rating to INR15cr LT Loan


I N D O N E S I A

INDIKA ENERGY: Fitch Raises Long-Term IDR to B+; Outlook Positive
INDIKA ENERGY: Moody's Hikes CFR to Ba3; Outlook Stable
LIPPO KARAWACI: S&P Lowers CCR to 'B' on Thinning Cash Flows
TUNAS BARU: Fitch Alters Outlook to Negative & Affirms BB- IDR


J A P A N

TOSHIBA CORP: Moody's Affirms Caa1 CFR & Alters Outlook to Stable


M O N G O L I A

MONGOLIAN MINING: S&P Raises CCR to 'B-' Post Debt Restructuring


S I N G A P O R E

STATS CHIPPAC: S&P Alters Outlook to Stable & Affirms 'B+' CCR


S O U T H  K O R E A

JEONBUK BANK: Moody's Hikes Baseline Credit Assessment From Ba1


S R I  L A N K A

DFCC BANK: S&P Alters Outlook to Stable & Affirms 'B/B' ICRs
SRI LANKA: Moody's Affirms B1 Foreign Currency Issuer Rating


                            - - - - -


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


ARISTOCRAT LEISURE: Moody's Affirms Ba1 CFR on Big Fish Deal
------------------------------------------------------------
Moody's Investors Service has affirmed the Ba1 corporate family
rating (CFR) of Aristocrat Leisure Ltd.

At the same time, Moody's has affirmed the Ba1 ratings on the
senior secured term loan facilities and revolving credit facility
of Aristocrat International Pty Limited.

The rating action follows the company's announcement on Nov. 30,
2017 that it has entered into a binding agreement to acquire 100%
of Big Fish Games Inc. for a total consideration of USD990
million (AUD1.3 billion).

The rating outlook remains stable.

RATINGS RATIONALE

The affirmation of Aristocrat's ratings reflects Moody's
expectation that its current low leverage levels will allow the
company to absorb the largely debt funded acquisition of Big Fish
while maintaining credit metrics within Moody's tolerance levels
for the Ba1 ratings.

The company plans to raise USD890 million of debt through an
incremental Term Loan B to partially fund the acquisition, with
the remainder funded with its USD125 million in cash on hand. As
a result, its leverage will increase materially, with post-
completion pro forma adjusted debt to EBITDA rising to the mid-2x
level from 1.2x as of the fiscal year ended September 30, 2017
(fiscal 2017).

The increased leverage will reduce Aristocrat's headroom to
withstand an unexpected earnings shock, but is offset by its
improved revenue profile -- in turn underpinned by a more stable
revenue stream from the Digital division.

The further expansion into digital gaming also provides
diversification away from the more volatile core business of
gaming machines sales, and improves visibility into Aristocrat's
future earnings, a credit positive.

Although Aristocrat has been fairly acquisitive in the past six
months, as evidenced by its two acquisitions of Plarium Global
Ltd. and Big Fish Games for around USD1.5 billion (AUD2 billion),
Moody's expects the company will now focus on organic growth by
maintaining its leading market position for its core business
while integrating the two acquired businesses.

Moody's also expects management to reduce inefficiencies to
improve margins, as it has done with previous acquisitions.
Furthermore, the Digital division will benefit from the newly
gained capabilities of meta-game and digital-first content
creation.

The stable outlook reflects Moody's expectation that the company
will continue to post strong operating results from its existing
businesses over the next 12-18 months. Moody's expects the
company will continue to record solid earnings growth and free
cash flow generation, which should allow it to lower its leverage
to more comfortable levels for the rating.

Aristocrat's continued strong operating performance is evidenced
by its financial results for fiscal 2017. The company's reported
EBITDA of AUD1.0 billion was up around 24% from fiscal 2016,
whilst reported EBITDA margins improved to around 41.1%.
Performances was strong across Aristocrat's business divisions,
including Platform sales, Class II and III gaming operations, as
well as Digital.

Aristocrat's reported gross debt fell by AUD66 million to around
AUD1.2 billion in fiscal 2017.

WHAT COULD CHANGE THE RATING

Given the significant planned increase in debt to fund the
acquisition, a rating upgrade is unlikely in near term. However,
positive rating momentum could emerge once management
successfully integrates the new businesses and commits to a
financial policy in line with an investment-grade rating. This
includes maintaining adjusted debt/EBITDA below 2x on a sustained
basis.

The ratings could be downgraded if the company pursues additional
major debt-funded acquisitions and/or operating conditions
materially deteriorate, such that adjusted debt/EBITDA increases
above 3x. the ratings could also be downgraded if liquidity
contracts meaningfully.

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

Aristocrat is a leading global provider in the design,
development and distribution of gaming content, platforms and
systems. The company is licensed by over 200 regulators and its
products and services are available in over 90 countries around
the world.


CIVILS WA: First Creditors' Meeting Slated for Dec. 21
------------------------------------------------------
A first meeting of the creditors in the proceedings of Civils WA
Pty Ltd will be held at the offices of Piggott Partners, Ground
Floor, 237 Adelaide Terrace, in Perth, West Australia, on
Dec. 21, 2017, at 10:30 a.m.

Ross Thomson of Piggott Partners was appointed as administrator
of Civils WA on Dec. 12, 2017.


IRON MOUNTAIN AUSTRALIA: Moody's Changes Outlook to Negative
------------------------------------------------------------
Moody's Investors Service affirmed Iron Mountain Incorporated's
(Iron Mountain) Ba3 Corporate Family Rating (CFR) and Ba3-PD
Probability of Default Rating and changed the rating outlook to
negative from stable. Moody's also affirmed the Ba3 and B2
ratings for Iron Mountain's existing senior and senior
subordinated debt, respectively, and assigned a Ba3 rating to the
new senior notes being issued at Iron Mountain Incorporated. The
rating action was prompted by the company's plans to acquire IO
Data Centers, LLC ("IO") for approximately $1.3 billion, which
will be financed with proceeds from $825 million of new senior
notes and an equity issuance.

RATINGS RATIONALE

The acquisition of IO will expand the footprint of Iron
Mountain's data center services and increase its share of
revenues from the high-growth and high-margin colocation services
to about 5%. However, Iron Mountain's total debt to EBITDA
(Moody's adjusted) will increase by about 0.2x to 5.9x and
capital spending will increase significantly as the company is
expected to expand data center capacity to benefit from the
growth opportunity. Moody's analyst Raj Joshi said, "The
incremental leverage resulting from the IO acquisition, coupled
with Iron Mountain's growing debt levels to fund capital
requirements and acquisitions over the last twelve months have
pushed its leverage toward 6x." He added, "The increase in
leverage has diverged from Moody's expectation for a steady
decline in leverage following the Recall acquisition in May
2016." The change in the outlook reflects Iron Mountain's
elevated leverage, which Moody's expects to decline slowly but
likely remain near the mid 5x in 2019.

Iron Mountain's CFR is weakly positioned in the Ba3 category and
reflects its elevated leverage and persistent free cash flow
deficits that Moody's expects to continue through 2020. While
management remains committed to reducing leverage to 5x on its
lease-adjusted basis by 2020, the company's large funding
shortfalls to support dividends, capital requirements and
acquisitions will challenge management to balance the sources of
funding between debt and equity. The Ba3 CFR is supported by Iron
Mountain's leading market position in the North America storage
and information management market, large base of recurring
storage rental revenues and its enhanced geographical footprint
and scale after the acquisition of Recall. Iron Mountain's strong
brand and market share in North America provide it with the
pricing power that supports its strong EBITDA margins. The
synergies from the acquisition of Recall and a good demand and
pricing environment are driving strong EBITDA growth. At the same
time, the company faces long-term risks from the mature demand
for its storage and data management services in developed markets
in North America and Western Europe.

Iron Mountain's SGL-3 liquidity rating reflects its adequate
liquidity supported by the availability of approximately $600
million under its revolving credit facility, approximately $338
million of cash at September 30, 2017, and a manageable debt
maturity profile.

Moody's could downgrade Iron Mountain's ratings if total debt to
EBITDA (Moody's adjusted) does not decline and is expected to
remain above the mid 5x or liquidity weakens materially. Given
the high leverage and a negative outlook a rating upgrade is not
expected in the near term. Moody's could upgrade Iron Mountain
ratings if the company establishes a track record of
deleveraging, it uses a meaningful amount of equity to fund its
annual cash deficits and maintains good EBITDA growth. The rating
could be upgraded if Iron Mountain could sustain total debt to
EBITDA (Moody's adjusted) below 4.5x (Moody's adjusted) and
retained cash flow to net debt approaches 10%.

Moody's has taken the following rating actions:

Assignments:

Issuer: Iron Mountain Incorporated

-- Senior Unsecured Regular Bond/Debenture, Assigned Ba3 (LGD3)

Outlook Actions:

Issuer: Iron Mountain (UK) PLC

-- Outlook, Changed To Negative From Stable

Issuer: Iron Mountain Australia Group PTY. LTD.

-- Outlook, Changed To Negative From Stable

Issuer: Iron Mountain Canada Operations ULC

-- Outlook, Changed To Negative From Stable

Issuer: Iron Mountain Incorporated

-- Outlook, Changed To Negative From Stable

Issuer: Iron Mountain Information Management, LLC

-- Outlook, Changed To Negative From Stable

Issuer: Iron Mountain US Holdings, Inc.

-- Outlook, Changed To Negative From Stable

Affirmations:

Issuer: Iron Mountain Incorporated

-- Corporate Family Rating, Affirmed Ba3

-- Probability of Default Rating, Affirmed Ba3-PD

-- Speculative Grade Liquidity Rating, Affirmed SGL-3

-- Senior Subordinated Regular Bond/Debenture, Affirmed B2
    (LGD6)

-- Senior Unsecured Regular Bond/Debentures, Affirmed Ba3 (LGD3)

Issuer: Iron Mountain Information Management, LLC

-- Senior Secured Bank Credit Facility, Affirmed Ba3 (LGD3)

Issuer: Iron Mountain US Holdings, Inc.

-- Senior Unsecured Regular Bond/Debenture, Affirmed Ba3 (LGD3)

Issuer: Iron Mountain (UK) PLC

-- Senior Unsecured Regular Bond/Debenture, Affirmed Ba3 (LGD3)

Issuer: Iron Mountain Australia Group PTY. LTD.

-- Senior Secured Bank Credit Facility, Affirmed Ba3 (LGD3)

Issuer: Iron Mountain Canada Operations ULC

-- Senior Unsecured Regular Bond/Debenture, Affirmed Ba3 (LGD3)

Iron Mountain is a global provider of information storage and
related services with $3.8 billion in revenues in the twelve
months ended September 30, 2017.

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


ISOBOARD PTY: First Creditors' Meeting Set for Dec. 22
------------------------------------------------------
A first meeting of the creditors in the proceedings of Isoboard
Pty Ltd will be held at the offices of BPS Reconstruction and
Recovery, Level 5, Suite 6, 350 Collins Street, in Melbourne, on
Dec. 22, 2017, at 10:00 a.m.

Simon Patrick Nelson of BPS Reconstruction was appointed as
administrator of Isoboard Pty Ltd on Dec. 13, 2017.


JANG'S KITCHEN: First Creditors' Meeting Set for Dec. 21
--------------------------------------------------------
A first meeting of the creditors in the proceedings of Jang's
Kitchen and Cleaning Pty Ltd as Trustee for Peck Family Trust
will be held at the offices of Cor Cordis, Mezzanine Level, BGC
Centre, 28 The Esplanade, in Perth, West Australia, on Dec. 21,
2017, at 3:00 p.m.

Jeremy Joseph Nipps and Dino Travaglini of Cor Cordis were
appointed as administrators of Jang's Kitchen on Dec. 4, 2017.


LOCAL INVERLOCH: First Creditors' Meeting Set for Dec. 22
---------------------------------------------------------
A first meeting of the creditors in the proceedings of The Local
Inverloch Pty Ltd will be held at the offices of Vince &
Associates, 51 Robinson Street, in Dandenong, Victoria, on
Dec. 22, 2017, at 2:00 p.m.

Peter Robert Vince and Paul William Langdon of Vince & Associates
were appointed as administrators of Local Inverloch on Dec. 13,
2017.


RANVEER MEDICAL: First Creditors' Meeting Set for Dec. 20
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Ranveer
Medical Practice Group Pty Ltd will be held at SV Partners, 138
Mary Street, in Brisbane, Queensland, on Dec. 20, 2017, at
11:00 a.m.

David Michael Stimpson of SV Partners was appointed as
administrator of Ranveer Medical on Dec. 8, 2017.


ROKK EBONY: First Creditors' Meeting Slated for Dec. 22
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Rokk Ebony
(Clarendon St) Pty Ltd will be held at the offices of Romanis
Cant, 2nd Floor, 106 Hardware Street, in Melbourne, Victoria, on
Dec. 22, 2017, at 10:00 a.m.

Anthony Robert Cant and Renee Sarah Di Carlo of Romanis Cant
were appointed as administrators of Rokk Ebony on Dec. 13, 2017.



=========
C H I N A
=========


ANTON OILFIELD: Fitch Hikes Long-Term IDR to B-; Outlook Stable
---------------------------------------------------------------
Fitch Ratings has upgraded China-based Anton Oilfield Services
Group's Long-Term Issuer Default Rating (IDR) to 'B-' from 'CCC'.
The Outlook is Stable. Fitch has also upgraded Anton's senior
unsecured rating and the rating on the company's 7.5% bonds
maturing 2018 to 'B-' from 'CCC-' and assigned a 'B-' rating on
Anton's 9.75% bonds maturing 2020. The Recovery Rating is 'RR4'.

The upgrade of Anton's IDR is driven by the completion of the
company's new USD300 million 2020 bond issuance, alleviating the
refinancing burden for its existing bonds of USD243 million
maturing in November 2018, which had been a major constraint on
its rating. Fitch considers Anton appropriately positioned at a
'B-' rating with its steady order book, enhanced contract
execution but still relatively high leverage with a significant
amount of short-term debt and substantial exposure to Iraq (B-
/Stable). The Stable Outlook assumes industry conditions will
remain largely stable and Anton is able to maintain a reasonable
level of available liquidity.

The 'RR4' Recovery Rating is based on average recovery prospects
for Anton's offshore senior unsecured creditors under a
liquidation approach, which values Anton at CNY2 billion, after a
10% administrative claim. The valuation applies a 30%, 60%, and
70% haircut to Fitch's estimate of the company's domestic
receivables, inventory, and property, plant and equipment,
respectively, as at June 2017. Anton's 60% stake in the Iraqi
business is valued at CNY583 million, based on 4x the estimated
EBITDA of the business with a 30% discount.

KEY RATING DRIVERS

Bond Maturity Extended: Anton completed its debt exchange offer,
announced in mid-November 2017, raising USD300 million from the
exchange of new bonds for its existing bonds and a concurrent
issuance of new debt maturing in November 2020. Anton has
therefore lengthened its original bond maturity by two years and
raised extra cash of USD57 million, albeit at a higher coupon
rate of 9.75% compared with 7.5% for its existing bonds.

Stabilised Oil Prices, Customer Capex: Fitch expect upstream oil
and gas companies to increase exploration and development
activities as oil prices have stabilised. Most major domestic and
overseas upstream oil and gas companies have budgeted for a rise
in 2017 capex, although as of 1H17 China's national oil companies
have largely underspent their budgets. Anton's order-book rose to
CNY3.7 billion at end-September 2017 from CNY3.1 billion at end-
2016, and project execution has been more rapid in 2Q17 and 3Q17.
As a result, Anton's EBITDA generation improved to CNY288 million
with a margin of 33% in 1H17 from about CNY280 million for full-
year 2015 and 2016 with a 15%-17% margin.

Risk from Iraqi Exposure: Anton has in recent years actively
expanded in overseas markets especially Iraq. Fitch estimates
that Iraq accounts for over 60% of Anton's order book. Anton's
business in the country contributed 44% of its revenue in 1H17,
up from 37% in 1H16, and this proportion is likely to rise.
Iraq's share of cash flow contribution to Anton is likely
significant due to a shorter accounts receivable collection cycle
compared with its domestic operations. Iraqi contracts carry much
higher geopolitical risk even though they typically generate
higher margins than domestic projects.

Leverage High, Though Improved: Anton's consolidated FFO net
leverage is likely to drop to about 5x in 2017, from 6x in 2016,
with the improvement in earnings. However, Anton fully
consolidates its key Iraqi operations even though it only has 60%
ownership. On a proportionate consolidation basis, Fitch
estimates Anton's FFO net leverage at over 6.5x in 2017, which is
aggressive for its 'B-' rating, but mitigated by adequate FFO
interest coverage estimated at about 1.5x.

Reliance on Short-Term Debt: Anton's receivables collection
remained highly prolonged, at 293 days for 1H17. Due to lengthy
working capital conversion, Anton's ability to meet its operating
expenses and interest costs - about CNY500 million annually based
on 1H17 results - is reliant on short-term banking facilities. It
had short-term bank debt of CNY822 million (of which CNY440
million was unsecured) against an unrestricted cash balance of
CNY341 million and available facilities of around CNY303 million
as of end-June 2017.

Liquidity has been aided by the collection of the remaining
CNY343 million payment from the buyer of its 40% share in the
Iraqi business in August 2017 and Anton raised an extra USD57
million from the new bonds after netting off all the 2018 bonds.
However, the company remains highly reliant on external sources
to meet its obligations.

Secured Debt, Encumbered Assets Rise: Anton's secured debt and
pledged assets rose substantially over 2016. As of June 2017,
secured debt amounted to CNY691 million against pledged assets of
CNY664 million. Including cash pledged for bills payable and
letters of guarantee, total pledged assets were CNY1.1 billion as
of June 2017, compared with CNY277 million at end-2015. A
continued increase in secured or other types of priority debt
could further diminish the recovery prospects of senior unsecured
creditors at Anton's holding company. In addition, the widening
of pledged assets may lower Anton's financial flexibility. Anton
had unencumbered tangible assets of CNY5.4 billion at June 2017.

DERIVATION SUMMARY

Compared with deepwater drilling company QGOG Constellation S.A.
(QGOG, B/Negative), Anton is smaller in scale, though Anton
enjoys better revenue diversity in terms of customers and
markets, while QGOG is highly exposed to the Brazilian market
with Petroleo Brasileiro S.A. (Petrobras; BB/Negative) as its
main customer. Nonetheless, Anton's liquidity and leverage
profiles are much weaker. For 2017-2019, Fitch forecast Anton's
consolidated FFO net leverage at 4.9x and FFO fixed charge
coverage at 2.1x, compared with QGOG's forecast FFO net leverage
of 4.3x and FFO fixed charge coverage of 3.7x.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

- Revenue to grow 5%-10% yearly in 2017-2019 as orders and
   project-starts resume growth under Fitch's oil-price
   assumptions.

- EBITDA margin at around 30%-35% in 2017-2019

- Working-capital conversion to stay broadly stable

- Annual capex of around CNY300 million-400 million in
   2017-2019.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action

- Significant weakening of liquidity.

- Deterioration of operating performance including shrinkage of
   order-book, slowdown in project execution, or narrowing in
   margins

- Adjusted FFO net leverage at above 6x and FFO fixed charge
   coverage at below 1.5x on a sustained basis.

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action

- Positive rating action in the near term is unlikely, given
   Anton's increasing exposure to Iraq, unless trading
   performance, including working capital conversion,
   significantly improves in its domestic market.

LIQUIDITY

Substantial Debt Maturities: Anton has substantial short-term
debt maturities relative to its cash. As at June 2017, the
company had unrestricted cash of CNY341 million compared with
short-term maturities of CNY960 million, of which CNY621 million
was secured.

Credit Facilities: Undrawn, available facilities increased to
CNY302.6 million as at June 2017, increasing from CNY80 million
at end-December 2016. Fitch understands most of Anton's
facilities are of short maturities. The company has entered into
a cooperation framework with Shanghai Pudong Development Bank
(BBB/Stable) for a facility of up to CNY2 billion; but individual
drawdown is subject to case-by-case approval and therefore, Fitch
does not regard this as an available facility.


CHINA SCIENCE: Fitch Assigns 'B+' LT Issuer Default Rating
----------------------------------------------------------
Fitch Ratings has assigned China Science & Merchants Investment
Management Group Co., Ltd. (CSC) a Long-Term Issuer Default
Rating (IDR) of 'B+'. The Outlook is Stable.

CSC is one of the larger private equity (PE) companies in China.
It had CNY36 billion of assets under management across more than
150 managed funds as of December 2016. Company Chairman
Xiangshuang Shan holds 40% of the company, with the remaining
shares spread among more than 2,000 investors, none of which hold
more than 4%. CSC is listed on the National Equities Exchange And
Quotations Co., Ltd.

KEY RATING DRIVERS

CSC's rating reflects relative weaknesses in its financials,
corporate governance, and risk appetite, which are
counterbalanced by its satisfactory company profile. The fee-
based earnings of CSC are weak and thus put pressure on leverage
and liquidity (measured by gross debt/fee-based EBITDA and fee-
based EBITDA/interest expense). The company's risk profile is
weak, highlighted by its market risk exposure and breach of
corporate governance in incidents of related-party transactions
filed with China Securities Regulatory Commission.

Fitch expects business growth to be very strong, but this may
bring risks beyond the company's abilities in risk management and
corporate governance. CSC's market risk is highlighted by
investments in equities and property, and the associated
concentration risks. CSC has a shorter operating history than
more established global counterparts.

The rating considers CSC's solid market position in the private
equity industry in China. Fitch will view as positive the
successful implementation of a growth strategy that boosts fee-
based earnings while reducing exposure to market risk
concentrations.

The fee-based earnings of CSC have been low due to low management
fees and high operating expenses and interest payments.
Management fees should start seeing growth due to new business
streams, such as government guiding funds, which focus on
infrastructure and industry transformation projects through
cooperation with local governments, and innovation and
entrepreneurship funds. Fitch expects CSC's fee-based earnings to
improve modestly in 2017 to 2019. The increase in performance
fees over the next few years due to fund exits is not likely to
materially change CSC's financial performance. Fitch gives less
credit to performance fees as fee-based earnings because the fees
are more sensitive to market volatility.

Founded in 2000, CSC is one of the earliest private equity firms
in China. Traditional private equity fund management has been the
core business of CSC, contributing to almost all of its fee
income in 2016. CSC began to diversify into government guiding
funds, and innovation and entrepreneurship funds in 2017. Fitch
nonetheless do not expect these new business streams, along with
the expected increase in overseas exposure, to reduce
concentration risks by business type and geography significantly
in the short term.

The Stable Outlook on CSC's IDR reflects Fitch expectation that
its performance and strategy will remain unchanged.

RATING SENSITIVITIES

A significant improvement in fee-based earnings that will cover
interest expense by 3x could lead to a rating upgrade. A stronger
company profile as a result of success in the government guiding
fund segment or a much bigger overall market share also could
lead to positive rating action.

Failure to improve fee-based earnings, resulting in interest
expense coverage remaining at less than 2x for a prolonged period
could result in negative rating action. Corporate governance and
funding issues arising from rapid business expansion could cause
the same.


CIFI HOLDINGS: Moody's Assigns B1 Senior Unsecured Debt Rating
--------------------------------------------------------------
Moody's Investors Service has assigned a B1 senior unsecured
rating to CIFI Holdings (Group) Co. Ltd.'s (Ba3 positive)
proposed USD senior perpetual capital securities.

The perpetual securities will be issued directly by CIFI and rank
pari passu with all other present and future unsecured,
unconditional and unsubordinated obligations of CIFI.

The company plans to use the bond proceeds to refinance existing
debt.

RATINGS RATIONALE

"The proposed perpetual securities will extend CIFI's debt
maturity profile and will not have a material impact on its
credit metrics as the proceeds will mainly be used to refinance
existing debt," says Stephanie Lau, a Moody's Vice President and
Senior Analyst.

Moody's considers the proposed perpetual securities as pure debt
instruments that rank similar to CIFI's senior unsecured debt.
Accordingly, Moody's does not grant equity treatment for these
securities.

Moody's expects CIFI's credit metrics will remain strong for its
Ba3 corporate family rating even if the proposed USD senior
perpetual capital securities are issued.

Furthermore, Moody's expects CIFI's credit metrics to improve on
the back of stronger revenue growth in the next 12-18 months,
supported by robust property contracted sales. Its year-to-date
contracted sales (including its share in joint ventures) up to
the end of October 2017 totaled RMB78.9 billion, representing
98.6% of its upwardly revised 2017 target of around RMB80
billion.

Moody's expects CIFI's EBIT/interest -- including joint venture
contributions -- will improve to around 3.4x-3.6x in the next 12-
18 months from around 3.0x for the 12 months to June 2017. Its
debt leverage -- as measured by revenue/adjusted debt (including
joint venture contributions) -- should also improve to around
75%-80% from around 70%.

Such projections reflect Moody's expectations that the company
will record stronger revenue growth, higher margins as a result
of a growing proportion of high-end products, and prudent
expansion.

CIFI's Ba3 corporate family rating reflects its property
development model focused on catering to housing demand from
upgraders in key tier 1 and tier 2 cities in China. Such a focus
helps the company to achieve rapid turnover.

The rating also takes into account the company's good liquidity,
prudent land acquisition strategy, and growing diversification.

On the other hand, the rating also reflects its material exposure
to joint ventures, which lowers the transparency of its credit
metrics. However, such risk is mitigated by its strong liquidity
management and reputable joint venture partners.

CIFI's liquidity position is strong as it is managing well its
debt maturity profile. Its cash on hand of RMB25.8 billion covers
well its short-term debt of RMB 6.5 billion as of June 30, 2017.

The B1 rating of CIFI's senior unsecured debt is one notch lower
than its corporate family rating of Ba3, reflecting structural
subordination risks.

The positive outlook on CIFI's Ba3 corporate family rating and B1
senior unsecured rating reflects Moody's expectation that CIFI's
credit metrics will improve over the next 12-18 months, owing to
its strong sales execution and prudent land acquisition strategy.

CIFI's ratings could be upgraded if the company: (1) sustains
growth in sales and scale and achieves better geographic
diversification; and (2) improves its credit metrics, with
adjusted EBIT/interest above 3.5x-4.0x and revenue/adjusted debt
above 85%-90% on a sustained basis.

On the other hand, the ratings outlook could return to stable if
CIFI's performance and credit metrics fall below Moody's
expectations; in particular, if its: (1) EBIT/interest coverage
falls below 3.0x; and/or (2) revenue/adjusted debt remains below
80%; and/or (3) liquidity weakens, with its cash holdings
slipping below 1.5x of short-term debt.

The principal methodology used in this rating was Homebuilding
And Property Development Industry published in April 2015.

CIFI Holdings (Group) Co. Ltd. was incorporated in the Cayman
Islands in May 2011 and listed on the Hong Kong Stock Exchange in
November 2012.

CIFI develops residential and commercial properties mainly in the
Yangtze River Delta. It has also expanded to the Pan Bohai Rim
and the Central Western Region. At the end of June 2017, it
maintained a presence in 15 key cities, with a total and
attributable land bank of 22.1 million and 12.4 million square
meters respectively. It also had 89 projects under development.


HNA GROUP: Met With Chinese Banks for Financing Talks
-----------------------------------------------------
Denise Wee and Carrie Hong at Bloomberg News report that
debt-laden Chinese conglomerate HNA Group Co. met with Chinese
lenders for talks on financing next year, after borrowing costs
surged in recent weeks and prompted some units to scrap bond
offerings.

Representatives from eight Chinese banks' branches in the
southeastern province of Hainan, where HNA is based, met with the
group on Dec. 13 on providing credit support in 2018, the company
said in a statement posted on its WeChat account, Bloomberg
relays. It didn't say how much in credit lines the lenders will
provide next year. Group unit bonds and shares rose.

"While the devil is in the details, HNA is a company with
aggressive leverage and liquidity challenges," the report quotes
Todd Schubert, head of fixed-income research at Bank of Singapore
Ltd., as saying. "The fact that banks continue to engage with
them with respect to prospective funding should be viewed as a
positive."

According to Bloomberg, HNA Group has faced surging financing
costs after its debt-fueled $40 billion acquisition spree across
the globe sparked regulatory scrutiny and put it in the
crosshairs of a Chinese government that's clamping down on
capital outflows. In recent weeks, S&P Global Ratings and Fitch
Ratings have voiced concerns about at least four companies
because of their ties with HNA. Group flagship Hainan Airlines
Holding Co. canceled a bond sale, another unit scrapped a share
offering and HNA subsidiaries have paid some of their highest
borrowing costs ever, Bloomberg says.

The group last month pushed back repayment of a loan for three
months, as it struggled with bloating debt, the report notes.

HNA Group executives, including Co-Chairmen Chen Feng and Wang
Jian, are planning to buy shares in Bohai Capital Holding Co.
after the Shenzhen-listed leasing unit's stock fell by more than
30 percent from its peak this year, Bloomberg discloses citing an
exchange filings this week.

HNA Group has so far secured total credit lines of more than
CNY800 billion (US$121 billion) from financial institutions, and
has unused credit lines of CNY310 billion, it said.

Dollar bonds due in 2018 of an HNA unit rose 4 cents to 95 cents
on the dollar as of 1:47 p.m. Dec. 14 in Hong Kong, the biggest
gain since the bonds were sold in 2015, according to prices
compiled by Bloomberg. HNA Holding Group Co.'s Hong Kong-listed
shares jumped as much as 10.3 percent, the biggest increase in
seven weeks.

Banks that attended the meeting held at HNA included China
Development Bank, Export-Import Bank of China, Bank of China
Ltd., Agricultural Bank of China Ltd., Industrial & Commercial
Bank of China Ltd., China Construction Bank Corp., Bank of
Communications Co. and Shanghai Pudong Development Bank Co,
Bloomberg discloses.

"HNA Group has clout in the onshore banking market and it is
showing it," Bloomberg quotes Steve Wang, a senior credit analyst
at Citic CLSA Securities in Hong Kong, as saying. "This is a shot
in the arm for shaky hands fighting hard to find a grip on their
HNA bonds."

HNA's statement that Chinese lenders continue to support the
company is "mildly positive" but concerns over the group remain,
according to credit research firm Bondcritic Ltd, Bloomberg
relays.

The main problems the group faces include risks over refinancing
as well as an opaque corporate structure, said Warut Promboon,
managing partner at Bondcritic, adds Bloomberg.


SHANGRAO CITY CONSTRUCTION: Fitch Assigns 'BB+' Long-Term IDR
-------------------------------------------------------------
Fitch Ratings has assigned China-based Shangrao City Construction
Investment Development Group Co., Ltd. (SCID) Long-Term Foreign-
and Local-Currency Issuer Default Ratings of 'BB+' with a Stable
Outlook. Concurrently, Fitch has assigned a 'BB+(EXP)' rating to
SCID's proposed issuance of US dollar-denominated senior
unsecured bonds.

The proposed bonds will be direct, unconditional, unsubordinated
and unsecured obligations of the company and rank pari passu with
its other outstanding obligations. The proceeds from the issuance
are expected to be used for project construction.

The final rating on the proposed bond is contingent on the
receipt of final documents conforming to information already
reviewed.

The company's ratings are credit linked to the creditworthiness
of its sponsor, Shangrao municipality, in light of the
municipality's stable ownership of SCID, financial implications
to the sponsor should SCID fail, as well as consistent financial
and operational support from the sponsor to SCID. There is,
therefore, a high likelihood that SCID would receive
extraordinary government support, if needed.

KEY RATING DRIVERS

Status, Ownership and Control - Very Strong: SCID was established
in 2002 as a limited liability company under the China's company
law. Under the current legal status, the government does not bear
the ultimate liability of the entity's debt. The sponsor has an
overall influence on the entity's business and the State-owned
Assets Supervision and Administration Commission of Shangrao
municipality is the sole de facto shareholder of the entity.

Support Track Record and Expectations - Strong: The entity has
received financial support from the municipal government,
including land transaction fee rebates associated with land
development projects; subsidies and grants from the sponsor; all
debt before 2015 was integrated into the sponsor's debt under the
municipal government's debt swap programme; and capital
injections to support the entity's financial stability. Fitch
believe the municipal government is likely to regularly inject
capital into SCID to support the increasing number of projects in
the pipeline as well as the entity's substantial policy role.

Socio-Political Implications - Moderate: SCID is the sole land
developer permitted by Shangrao municipal government and acts as
the government's agent in construction of more than 50% of the
government's consignment projects, such as roads, public housing,
schools, hospitals and pipe networks. The local government
participated in financing the projects, which implies it has
strong incentive to support the projects. The entity also
undertakes public transportation service, water treatment and
government consignment businesses that serve the public.

Financial Implications - Very Strong: As one of the major local
government financing vehicles in the city, SCID holds a
significant amount of debt, mostly raised for social overhead
capital projects and land development. As of end-2016, the
entity's debt integrated into the government debt accounted for
around 26% of the total local government debt. This indicates the
borrowing capacity of the local government will be significantly
impaired if the entity defaults.

Structurally High Leverage: The entity's debt rapidly increased
(26% in 2016) along with the rise in the number of projects,
resulting in a weak net debt to EBITDA of 19.6x at end-2016.
However, Fitch expect gradual improvement in the ratio as revenue
from land development is likely to continue rising. The entity
held CNY9.7 billion of cash and cash equivalents at end-2016 (19%
of assets), which was sufficient to meet its short-term debt
obligations of CNY3.4 billion. Return on invested capital picked
up to 0.81% in 2016 from 0.73% in 2015 and Fitch expects it to
gradually increase due to growth in its core business.

RATING SENSITIVITIES

Credit-Linked to Sponsor: An upgrade of Fitch's credit view on
the sponsor may trigger positive rating action on SCID.

Support from Sponsor: A downgrade on the sponsor and a reduction
in the likelihood of support from the sponsor may lead to
negative rating action.

FULL LIST OF RATING ACTIONS

Fitch has assigned the following rating:

-- Long-Term Foreign-Currency IDR at 'BB+'; Outlook Stable

-- Long-Term Local-Currency IDR at 'BB+'; Outlook Stable

-- Rating on proposed US dollar senior unsecured bonds at
    'BB+ (EXP)



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


ABT INVESTMENTS: CARE Lowers Rating on INR100cr Loan to D
---------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
ABT Investments Private Limited (AIPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Non-        100.00      CARE D Revised from
   Convertible                       CARE B; Stable
   Debentures

Detailed Rationale & Key Rating Drivers

The revision in the ratings assigned to the Non-Convertible
Debenture (NCD) issue of AIPL takes into account the delay in
debt servicing on the above instrument.

Detailed description of the key rating drivers

Key Rating Weakness

Delays in debt servicing: The company being a holding company
does not have its own operations. On account of the delays in
expected cash flows from its group companies, the company has not
made its interest payments towards its NCD issue due on
November 30, 2017.

Weak Financial risk profile of SSL (underlying security company):
The NCD issue is secured by pledging the shares of Shakti Sugars
Limited (SSL) held by AIPL. As indicated by the auditors in the
audit report of SSL for FY17, the company has been making delays
in servicing of debt obligations (It had undergone Corporate Debt
Restructuring in FY16).

Key Rating Strengths

Well experienced promoter group: The Sakthi group has been
operational for over eight decades and has presence in diverse
industries. Dr. M. Manickam, Chairman of the group is a third
generation entrepreneur and has over three decades of industrial
experience. He holds a MBA degree from University of Michigan.
The day-to-day operations of the group companies are managed by
his children. The promoters are supported by well-experienced
management team who has been with the group for long period.

A B T Investments (India) Private Limited (AIPL) belongs to the
Coimbatore based ABT group of companies having presence in
diversified industries including Sugar, Auto Components, Power,
IT services, transportation & logistics, energy and textiles.
AIPL was formed after the demerger and consolidation of the
companies under ABT group. AIPL is an investment and holding
company and has no other operations. The Company has holdings in
various group companies of ABT group.


ASHWANI KUMAR: CRISIL Reaffirms 'B' Rating on INR6.2MM Cash Loan
----------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B/Stable' rating on the
long-term bank facilities of Ashwani Kumar and Company Private
Limited.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             6.2       CRISIL B/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility      2.21      CRISIL B/Stable (Reaffirmed)

The rating continues to reflect AKCPL's large working capital
requirement, modest scale of operations, and susceptibility to
slowdown in end-user industries. These weaknesses are partially
offset by the experience of the promoter.

Key Rating Drivers & Detailed Description

Weaknesses

* Large working capital requirement: Gross current assets were
753 days as on March 31, 2017, driven by large inventory of 530
days (mostly not order backed) and receivables of 260 days.

* Modest scale of operations and susceptibility to slowdown in
end-user industries: Small scale of operations, with turnover of
INR11.28 crore in fiscal 2017, amid intense competition limits
pricing power with suppliers and customers, thereby constraining
profitability.

Strength

* Experience of promoter: Benefits derived from the promoter's
experience of around 50 years and healthy relations with
suppliers and customers should continue to support the business.

Outlook: Stable

CRISIL believes AKCPL will continue to benefit over the medium
term from the experience of the promoter. The outlook may be
revised to 'Positive' if significantly large cash accrual and
prudent working capital management strengthen liquidity.
Conversely, the outlook may be revised to 'Negative' if sharp
decline in profitability, or sizeable term debt contracted to
acquire large assets weakens financial risk profile and
liquidity.

AKCPL, incorporated in 1962, trades in over 600 types and sizes
of second-hand industrial machinery such as lathes, and milling,
grinding, drilling, boring, shearing, moulding, and welding
machines that are used in the automotive ancillaries and heavy
and general engineering segments. Mr Ashwani Mahajan is the
promoter.


BHUSHAN ENERGY: Objects to SBI Insolvency Application
-----------------------------------------------------
LiveMint.com reports that Bhushan Energy on Dec. 13 submitted its
objection before National Company Law Tribunal against the
November 25 insolvency application moved against it by State Bank
of India for recovery of INR490 crore.

Bhushan Energy stated that SBI's application under Insolvency and
Bankruptcy Code was incomplete and immature, the report says.

"The application is incomplete and should be rejected because it
was not signed by the appropriate authority," the report quotes
Bhushan Steel's counsel as saying.  "Only authorized person can
initiate and file an application," the counsel said while arguing
that there are no specific provision under law that give power to
the Chairman to sign such an insolvency application, let alone
delegate it to other officer.

According to the report, SBI counsel referred this as a "non-
issue". SBI Act gives power to chairman to exercise "all such
powers" to perform "all such functions", counsel for SBI
clarified.

A second objection was raised on behalf of Bhushan Energy that
the debt had not become payable at the time of initiation of
insolvency proceedings in November, the report notes.
LiveMint.com says the counsel pointed out that as per a RBI
circular released earlier this year, an insolvency proceeding
could be initiated only after an attempt at resolution had been
made within six months from notice, which in the present case was
December 12.

Bhushan Energy Limited engages in power generation and sets up
power plants.


BINAYAK HI-TECH: Ind-Ra Lowers Issuer Rating to 'BB-'
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Binayak
Hi-Tech Engineering Private Limited's (formerly Binayak Hi-Tech
Engineering Limited; BHTEPL) Long-Term Issuer Rating to 'IND BB-'
from 'IND BB(ISSUER NOT COOPERATING)'. The Outlook is Stable. The
instrument-wise rating actions are:

-- INR140 mil. Fund-based working capital limit long-term
    rating downgraded; short-term rating affirmed with IND BB-
    /Stable/IND A4+ rating; and

-- INR57.63 mil. (reduced from INR65 mil.) Long term loan* due
    on September 2027 assigned with IND BB-/Stable rating.

* The assignment of the final rating follows receipt of the
sanction letter, conforming to the information already received
by Ind-Ra.

KEY RATING DRIVERS

The downgrade reflects significant deterioration in credit
metrics to weak in FY17 from moderate in FY15. During the period,
gross interest coverage (EBITDA/gross interest) was 1.2x (FY16:
2.0x) and net financial leverage (net debt/EBITDA) was 9.7x
(4.1x). The deterioration in credit metrics was primarily due to
an INR81 million debt-led capex that was undertaken during FY17.
Moreover, in FY17, EBITDA margin was 3.5% (FY16: 4.5%). The
decline in EBITDA margin was due to a rise in operating expenses.

The ratings continue to be supported by the promoters' experience
of over 20 years in the manufacturing and trading of fabricated
products and revenue growth (FY17: INR544 million; FY16: INR505
million), though the scale of operations remains moderate.
Moreover, BHTEPL has a comfortable liquidity, indicated by an
average maximum utilisation of the fund-based facility of 89% for
the 12 months ended November 2017.

RATING SENSITIVITIES

Negative: Any further decline in EBITDA margin leading to any
further deterioration in the credit metrics could be negative for
the ratings.

Positive: Any substantial improvement in EBITDA margin leading to
an improvement in credit metrics could be positive for the
ratings.

COMPANY PROFILE

BHTEPL was incorporated in 1995 in West Bengal by Mahesh Kumar
Jhunjhunwala, Kiran Jhunjhunwala and Atul Jhunjhunwala. It is
engaged in the manufacturing of cast manhole covers,
curb/service/valve boxes, garden benches, fence panelling,
railings, moulded plastic products, forgings, fabricated
access/duct covers and gratings.


DREAMZ OVERSEAS: CARE Hikes Rating on INR6cr LT Loan to 'B+'
------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Dreamz Overseas Private Limited (DOPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank         6.00       CARE B+; Stable Revised
   Facilities                        from CARE B

Detailed Rationale & Key Rating Drivers

The revision in the rating assigned to the bank facilities of
DOPL takes into consideration the timely completion of project,
improvement in scale of operations, profitability & debt coverage
indicators. The rating however continues to be constrained by its
small scale of operations, low PAT margin, susceptibility of the
company's margins to fluctuations in the raw material prices and
DOPL's presence in a highly fragmented industry characterized by
intense competition. The rating, however, derives strength from
the experienced promoters, moderate solvency position,
comfortable operating cycle and favorable location of plant along
with positive outlook for the industry.

Going forward, ability of the company to scale up its operations
while improving its profitability margins would remain the key
rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations with low PAT margin: Owing to first
full year of operations, the total operating income (TOI) of DOPL
stood at INR25.37 crore in FY17 (refers to the period April 1 to
March 31) as against INR0.05 crore in FY16. However, the scale of
operations remains small, which limits the company's financial
flexibility in times of stress and deprives it from scale
benefits. However, the PBILDT margin stood moderate at 5.04% in
FY17 as compared to losses at PBILDT level of INR0.01 crore in
FY16. Consequently, DOPL registered net profit of 0.28% in FY17
as compared to net loss of INR1.48 crore in FY16. DOPL has
achieved total operating income of INR25.00 crore in H1FY18
(Provisional).

Volatility in the raw material prices: The main raw material for
production of wheat flour is wheat. Prices of wheat are subject
to government intervention since it is an agricultural produce
and staple food. The price of wheat is also influenced by the
supply scenario, which is susceptible to the agro-climatic
conditions. Thus, any volatility in wheat prices can have direct
impact on the profitability margins of the company.

Fragmented and competitive nature of industry: The commodity
nature of the product makes the industry highly fragmented with
numerous players operating in the unorganized sector with very
less product differentiation. In addition, launch of innovative
strategy by large multinationals to gain market share has
increased the competition intensity as well.

Key Rating Strengths

Experienced promoters: The company is promoted by Mr Deepak Garg
along with his family members. Mr. Deepak Garg has work
experience of more than two decades in agro processing industry.
Thus, the promoters have adequate acumen about various aspects of
business which is likely to benefit DOPL in the long run.

Moderate solvency position: The capital structure of the company
stood moderate with overall gearing ratio of 1.05x as on March
31, 2017 (0.61x as on March 31, 2016) mainly on account of
company's moderate net worth base.

Furthermore, the company has moderate debt coverage indicators
marked by interest coverage ratio of 3.45x in FY17 and total debt
to GCA of 6.04x for FY17 in comparison to interest coverage ratio
of -127.80x in FY16 and total debt to GCA of -128.39x for FY16.

Comfortable operating cycle: The operating cycle of the company
stood comfortable at 20 days for FY17. The company follows back
to back procurement policy for raw materials (Wheat) and
dispatches the finished goods on order basis leading low average
inventory period. The company extends an average credit period of
around 10-20 days to its customers and on the other hand, the
procurement of raw material is done mainly on cash and advance
basis.

Favorable location of plant: Wheat is easily available in the
areas of Haryana in proximity to company's location. Hence,
DOPL's presence in this region results in benefit being derived
from the easy availability of commodities with lower
transportation cost.

Positive outlook of the industry: The flour milling industry has
witnessed consistent growth in the past few years, largely driven
by FMCG companies and dictated by the lifestyle changes, people
are being exposed to the wheat-based western cuisines, in place
of rice-based local cuisines. Also since the industry mainly
caters to the basic needs of the consumer, the industry is
relatively insulated from the economic cycles.

DOPL was incorporated in 2012 as a private limited company and is
currently being managed by Mr. Deepak Garg, Mr. Ujjwal Garg, Mr
Vishesh Jindal, Mr. Pulkit Garg, Ms. Sheela Garg, Ms. Diksha Garg
and Ms. Anju Gupta. The company is engaged in processing &
trading of wheat and sale of its byproducts at its manufacturing
facility located in Sonipat, Haryana, with an installed capacity
of 72000 tonne of wheat per annum as on March 31, 2017. DOPL
commenced commercial operations in March 2016 with trading of
wheat and partial completion of project, however, the company
started processing of wheat from September 2016. Some reputed
customers includes ITC Limited, Aditya Birla Retail Limited and
Lotte India Corporation Ltd. Besides DOPL, the directors are also
engaged in another group concern namely Pal Roller Flour Mills
Private Limited which is engaged in processing of wheat since
1980.


GTN TEXTILES: CARE Reaffirms 'D' Rating on INR29.01cr LT Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
GTN Textiles Limited (GTL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            29.01       CARE D Reaffirmed

   Short-term Bank
   Facilities            79.70       CARE A4 Reaffirmed

Detailed Rationale & Key Rating Drivers

The reaffirmation in the ratings assigned to the long term bank
facilities of GTL takes into account the instances of delays in
servicing of term loans on account of continuing losses and
relatively lower cash accruals in FY17 (refers to the period
April 1 to March 31). The ratings also take note of established
track record of operations of the group and synergy of operation
among group companies.

Detailed description of the key rating drivers

Key Rating Weaknesses

Instances of delays in debt servicing due to continuing losses in
FY17: Total income declined by 26% to INR122 crore in FY17 from
INR165 crore in FY16. The PBILDT margin remained relatively low
at 5.62% in FY17. Low PBILDT margins along with higher interest
expense due to high leverage levels resulted in the company
reporting a net loss of INR6 crore in FY17. On account of loss
and lower cash accruals, there have been instances of delays in
servicing of term loans.

Key Rating Strengths

Established track record of operations through an experienced
management team: GTL is part of GTN-BKP group which is operating
three textile mills with total spinning capacity of around
2,15,000 spindles. The promoters have an established track record
for over 45 years. The promoters are assisted by a well-
experienced and professional management team. Major activities of
the group companies such as procurement, marketing and allocation
of orders to different units are done at the group level. The
group has been a pioneer in bringing several new technologies
into the Indian spinning industry and is among the few early
exporters of textile products from India.

Synergy of operations among group companies: The group is
operating three textile mills in the states of Tamil Nadu &
Kerala. Major activities such as procurement, marketing and
allocation of orders to different units are done at the group
level. Companies are likely to benefit from this synergy of
operations.

The primary business activity of GTN Textiles Ltd (GTL) is
production and sale of cotton yarn. GTL is part of Kerala-based
GTN-BKP (GTN-BK Patodia) having its production facilities in the
state of Kerala. As on March 31, 2017, GTL had a capacity of
58,864 spindles which includes 34,896 compact spindles. The
company produces fine and super fine counts of cotton yarn.

During FY17, the company reported total income of INR122 crore
and after tax loss of INR6 crore against total income of INR165
crore and after tax loss of INR7 crore in FY16.


HARI MARINE: CARE Reaffirms B+ Rating on INR16.97cr LT Loan
-----------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Hari Marine Private Limited (HMPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank
   Facilities             16.97      CARE B+; Stable Reaffirmed

   Short term Bank
   Facilities              0.20      CARE A4 Assigned

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of HMPL continues to
be remained constrained by the small scale of operations with low
profit margins, susceptibility of profitability margin to foreign
exchange rate fluctuations and highly fragmented sea food
processing industry coupled with inherent risk associated with
regulatory policies and seasonality associated with the industry.
The aforesaid constraints are partially offset by the experience
of the promoters and proximity to raw material sources.

Ability to increase its scale of operations with improvement in
profit margins and ability to manage working capital effectively
are the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations with low profit margins: HMPL is a
relatively small player in the sea food industry having total
operating income and PAT of INR36.40 crore and INR0.34 crore
respectively in FY17, Provisional. In 8MFY18, the company has
booked turnover of INR56.23 crore. The profitability margins of
the company remained low marked by PBILDT margin of 3.01% and PAT
margin of 0.94% in FY17.

Susceptibility of profitability margin to foreign exchange rate
fluctuations: HMPL is predominately an exporter of marine
products. Thus, the company faces the risk associated with the
change in the exchange rate between the time it initiates an
offshore transaction and settles it. The company does not have
any prudent hedging mechanism to minimize the risk of exchange
rate fluctuations to certain extent. Accordingly, any oversight
in determining price trends could expose margins to fluctuation
in exchange rates.

Highly fragmented sea food processing industry coupled with
inherent risk associated with regulatory policies and seasonality
associated with the industry: The seafood market is characterized
by uncertainty, which is more pronounced in supply than in
demand. Seafood is a depleting commodity; the increased severity
of regulations on excessive fishing has rendered supply more
irregular. HMPL procures its raw materials primarily from Odisha,
which exposes it to risks of regional concentration as well.
Besides, fish procurement is seasonal, with the fishing season
lasting from September to May; hence the company has to stock
fish for export during the off season, thus increasing its
inventory levels. Apart from seasonality, adverse climate
conditions, lack of quality feed, rampant diseases continue to
pose risk in the raw material procurement. Further, due to
limited value addition nature of business and less technological
input entry barriers are low.

As a result, processed sea food industry is highly competitive
with the presence of a large number of Indian players as well as
players from other South East Asian countries. Further, exports
of sea food is highly regulated, as exporters of sea food have to
meet various regulations imposed by importing nations as well as
imposed by the Indian government.

Key Rating Strengths

Experienced promoters: The main promoter of HMPL Mr. Himanshu
Kumar Das (Managing Director) has more than two decades of
experience in seafood industry, looks after the overall
management of the company. He is also assisted by other director
Mr. Sangram Kumar Das who has an experience of around a decade in
the same industry. The promoters are assisted by a team of
experienced professional.

Proximity to raw material sources: HMPL's plant is located near
coastal area of Odisha, which enables the company to procure
input materials and process them immediately after harvest. This
results in better quality product as well as low transportation
costs.

HMPL was incorporated in June 2014 by the Das family of Balasore,
Odisha. The company has been engaged in processing and exports of
sea foods since September, 2015. Earlier, the processing facility
was not owned by the company and the same was taken on rent
whereby HMPL was paying a fixed rent to the plant owners.
However, HMPL has set up its owned shrimp processing plant with
an aggregate cost of INR15.42 crore and the same became
operational from July 2017. The processing plant of the company
has an installed capacity of 10,500 metric tonnes per annum. The
company process different kinds of shrimp and exports mainly in
the countries like Japan, Vietnam and Korea. The processing
facility of HMPL is approved by The Marine Products Export
Development Authority (MPEDA). The processing facility of the
company is also approved by Hazard Analysis Critical Control
point (HACCP) regulated by U.S. Food and Drug Administration
(USFDA). All these approvals enable the company to be free from
automatic detention by the respective importing country.


KOTECHA INDUSTRIES: CARE Lowers Rating on INR3.50cr LT Loan to D
----------------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Kotecha Industries Limited, as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank         3.50       CARE D; Issuer not
   Facilities                        cooperating; Revised
                                     from CARE BB; Stable
                                     on the basis of best
                                     available information

   Short-term Bank        3.00       CARE D; Issuer not
   Facilities                        cooperating; Revised
                                     from CARE A4 on the
                                     basis of best available
                                     information

CARE has been seeking information from Kotecha Industries Limited
to monitor the rating(s) vide e-mail communications/ letters
dated August 4, 2017, September 20, 2017, October 11, 2017,
November 20, 2017, November 27, 2017 and November 29, 2017 and
numerous phone calls. However, despite CARE's repeated requests,
the entity has not provided the requisite information for
monitoring the ratings. In the absence of minimum information
required for the purpose of rating, CARE is unable to express
opinion on the rating.

In line with the extant SEBI guidelines CARE's rating on Kotecha
Industries Limited's bank facilities will now be denoted as
CARE D; ISSUER NOT COOPERATING.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.

Detailed description of key rating drivers

Key Rating Weaknesses

Ongoing delay in debt servicing: KIL has been irregular in
servicing its debt obligation as there are on-going delays in due
to weak liquidity position of the company.

Kotecha Industries Limited [KIL] is a closely held limited
company, incorporated on May 9, 2008 and promoted by
MrHardikKotecha and MrManharlalKotecha. The company is engaged
into the trading PVC resin in domestic markets based on the
orders given by customers. KIL has set up its unit in Rajkot and
has a branch office and a warehouse in Mumbai. The PVC resin is
procured from suppliers spread across India as well as is
imported from South Korea. The suppliers of KIL include some of
the large corporates like Frost International Limited.


MAHARSHEE GEOMEMBRANE: CARE Assigns B+ Rating to INR5cr LT Loan
---------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Maharshee Geomembrane (India) Private Limited (MGIPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             5.00       CARE B+; Stable Assigned

   Short-term Bank
   Facilities             3.95       CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of MGIPL are
constrained on account of its small scale of operations along
with thin profitability, working capital intensive nature of
operations, moderately leveraged capital structure and weak debt
coverage indicators during FY17 (refers to the period April 1 to
March 31). The ratings are further constrained on account ofraw
material price volatility risk, high bargaining power of
suppliers coupled with foreign exchange fluctuation risk and its
presence in highly competitive and fragmented geo-textile
industry.

The ratings, however, derive strength from the experienced
promoters in geotextile industry with established track record of
operations.

The ability of MGIPL to increase its scale of operations and
improve its profit margins and solvency position along with
efficient working capital management would remain the key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations along with thin profitability: The
total operating income (TOI) of MGIPL stood small at INR12.42
crore in FY17 as against INR10.34 crore in FY16. The operating
profit stood at INR1.59 crore in FY17 as against INR1.80 crore in
FY16, while the net profits stood low at INR0.01 crore against
net losses booked in FY16. The gross cash accruals (GCA) level
stood low at INR0.47 crore in FY17 from INR0.55 crore in FY16.

Leveraged capital structure and weak debt coverage indicators
with working capital intensive nature of operations: The capital
structure of MGIPL as marked by an overall gearing ratio stood
moderate at 2.06 times as on March 31, 2017 as against 2.07 times
as on March 31, 2016. The debt coverage indicators as marked by
total debt to GCA deteriorated and stood weak at 17.55 times as
on March 31, 2017 as against 15.03 times as on March 31, 2016
owing to an decrease in the GCA level. The interest coverage
ratio also remained moderate at 1.43 times for FY17 as against
1.54 times for FY16. The operations of MGIPL remained working
capital intensive in nature as marked by moderate current ratio
which stood at 1.48 times as on March 31, 2017 and elongated
operating cycle of 267 days during FY17 as compared to 275 days
during FY16. The average utilization of working capital
borrowings stood full for the past 12 months ended October, 2017.

Raw material price volatility risk, high bargaining power of
suppliers coupled with foreign exchange fluctuation risk and
presence in highly competitive and fragmented geo-textile
industry: The primary inputs for manufacturing geomembrane films
are Low-density polyethylene (LDPE) and High-density
polyethylene(HDPE) granules which are derivatives of crude oil,
the prices of which keep fluctuating in nature and impact the
profitability margins of MGIPL. Also, as the entity imports
majority of the raw materials and export some of its products, it
is subject to foreign exchange fluctuation risk. Further, the
Indian geotextile industry is characterized by high fragmentation
and competitive intensity, dominated by players operating in the
small and medium scale sector.

Key Rating Strengths

Experienced promoters in the geotextile industry with established
track record of operations: Mr. Rajanikant Swain, the key
promoter, has more than two decades of experience in geotextile
industry and looks after the overall operations of the
company.Also, MGIPL has an established track record of more than
a decade which has helped MGIPL in establishing its customer
base.

Vadodara-based (Gujarat), MGIPL was incorporated as a Private
Limited Company in February, 2005, erstwhile established as a
proprietorship firm in 2002. MGIPL has two promoters namely Mr.
Rajanikant Swain and Mrs. Madhusmita Swain to undertake the
business of manufacturing of geomembrane films. MGIPL commenced
its commercial operations from February 2005 and currently
operates from its sole manufacturing plant located at Vadodara
(Gujarat) with an installed capacity of 300 metric tons per month
(MTPM) of geomembrane films. The company also offers other
products like geonet, High-density polyethylene pipes,
Multifilament yarn etc. The activities involve importing High-
density polyethylene and Low-density polyethylene raw material
from middle east countries, which is then processed and sold to
wholesale customers mainly located in India as well as Africa,
Mexico etc. The geomembrane films manufactured by MGIPL find
application in civil and agricultural fields, where controlling
fluid or gas migration to the structure/system is the primary
criterion.


METTU CHINNA: CARE Assigns B Rating to INR7.27cr LT Loan
--------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Mettu
Chinna Mallareddy Godowns (MCMG), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facility               7.27       CARE B; Stable Assigned

   Short-term Bank
   Facility               0.23       CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of MCMG are tempered
by small scale of operations with fluctuating total operating
income during review period, weak debt coverage indicators,
highly fragmented industry with intense competition from large
number of players and constitution of the entity as a partnership
firm with inherent risk of withdrawal of capital and geographic
concentration risk. The ratings, however, derive benefit from
reasonable track record of the entity and experience of the
partners for more than two decades, satisfactory profit margins
albeit fluctuations during review period, Moderate capital
structure along with comfortable operating cycle days.

Going forward, ability of the firm to increase its scale of
operations, improve the profitability margins and debt coverage
indicators are the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations with low net worth base and fluctuating
total operating income The firm has a track record of around six
years, however, the total operating income (TOI) of the firm
remained low at INR2.04 crore in FY17 (Provisional) with low net
worth base of INR6.77 crore as on March 31, 2017 (Provisional) as
compared to other peers in the industry. Furthermore, the total
operating income of the MCMG decreased from INR1.88 crore in FY15
to INR0.38 crore in FY15 due to low occupancy level of warehouse
on account of reduced crop in FY16. However, the total operating
income of the firm increased to INR2.04 crore due to increase in
occupancy level from Andhra Pradesh State Warehousing
Corporation. During H1FY18, the firm has achieved total operating
income of INR1.20 crore.

Weak debt coverage indicators The debt coverage indicators of the
firm remained weak during review period marked by total debt/GCA
stood at 46.92x due to low cash accruals and high debt levels
(the firm availed term loan for construction of warehouse and
lending the same for rental purpose where the profit levels are
thin). Due to the above said factor the PBILDT interest coverage
also remained weak and stood at 1.46x in FY17 (Provisional).

Highly fragmented industry with intense competition from large
number of players The firm is engaged in providing ware house for
lease rental purpose to Andhra Pradesh State Warehousing
Corporation which is highly fragmented industry due to presence
of large number of organized and unorganized players in the
industry resulting in huge competition.

Constitution of the entity as a partnership firm with inherent
risk of withdrawal of capital MCMG, being a partnership firm, is
exposed to inherent risk of the partner's capital being withdrawn
at time of personal contingency and firm being dissolved upon the
death/retirement/insolvency of the partners. Moreover,
partnership firm business has restricted avenues to raise capital
which could prove a hindrance to its growth.

Geographic concentration risk: The client profile of MCMG is
limited to the state of Andhra Pradesh, exposing the firm to
geographical concentration risk. The nine godowns of the firm are
all located in Andhra Pradesh and concentrated in area
surrounding East Godavari District.

Key Rating Strengths

Reasonable track record of the entity and experience of the
partners for more than two decades: MCMG was established in the
year 2011 and promoted by Mr. Ch. Venkata Krishna Rao (Managing
Partner) along with his wife Mrs. Ch. Lakshmi. Mr. Ch. Venkata
Krishna Rao is a qualified post graduate and has more than two
decades of experience in the trading of chillies.

Satisfactory profit margins albeit fluctuations during review
period: The PBILDT margin of the firm has been satisfactory,
however, fluctuating during review period. The firm has incurred
cash losses during FY16 due to decrease in crop productivity
resulted in decline in rental income from warehouse. However, the
firm turnaround from loss to profit and achieved PAT margin of
5.98% in FY17.

Moderate capital structure along with Comfortable operating cycle
days: The capital structure of the firm improved and remained
moderate on account of debt comprise of only long term loan. The
overall gearing ratio improved from 1.18x as on March 31, 2016 to
0.85x as on March 31, 2017 (Provisional) due to repayment of term
loan and unsecured loans coupled with increase in tangible
networth The operating cycle of the firm remained comfortable
during review period. The firm is engaged in providing warehouse
for rental purpose hence there will not be any creditors further
the firm receives the payment from its customers first week of
every month. Due to the above said factor, the operating cycle
remained comfortable.


NAVA HEALTHCARE: CRISIL Reaffirms B+ Rating on INR22.5MM Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its 'CRISIL B+/Stable' rating on
the long-term bank facility of Nava Healthcare Private Limited
(NHPL).

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            22.5      CRISIL B+/Stable (Reaffirmed)

The rating continues to reflect the company's working capital-
intensive operations, low operating margin, and below-average
financial risk profile because of subdued debt protection
metrics. These weaknesses are partially offset by promoter's
experience, diversified customer and product profiles, and
established distribution network.

Key Rating Drivers & Detailed Description

Weakness

* Working capital-intensive operations: Gross current assets were
133 days as on March 31, 2017, due to sizeable inventory of 63
days and stretched receivables of 53 days.

* Low operating margin: Profitability has been in the 4.0-5.0%
range in the five years through fiscal 2017 owing to intense
competition and limited value addition. This is because the
company gets its pharmaceutical products (account for majority of
topline) from contract manufacturers.

* Below-average financial risk profile: Networth and gearing were
weak at INR15.6 crore and 2.03 times, respectively, as on March
31, 2017. Net cash accrual to adjusted debt and interest coverage
ratios were muted at 0.04 time and 1.53 times, respectively, in
fiscal 2017.

Strength

* Extensive experience of promoter: Presence of two decades in
the pharmaceutical industry has enabled the promoter to establish
strong relationship with suppliers and customers, leading to a
compound annual growth rate 18.96% in revenue in the five fiscals
through 2017.

Outlook: Stable

CRISIL believes NHPL will continue to benefit over the medium
term from the extensive experience of its promoter and
established distribution network. The outlook may be revised to
'Positive' if substantial improvement in cash accrual and
reduction in term debt obligation improve liquidity. The outlook
may be revised to 'Negative' if liquidity weakens significantly
on account of decline in operating margin, stretch in working
capital requirement, or any large, debt-funded capital
expenditure.

Incorporated in 2006 and promoted and managed by Delhi-based Mr
Hemant Suri, NHPL manufactures and distributes pharmaceutical and
neutraceuticals products.


NEW SAPNA: CARE Lowers Rating on INR7.84cr LT Loan to D
-------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
New Sapna Granite Industries (NSGI), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank         7.84       CARE D; Issuer not
   Facilities                        cooperating; Revised
                                     from CARE B+; Stable
                                     on the basis of best
                                     available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from NSGI to monitor the
rating(s) vide e-mail communications/letters dated August 4,
2017, September 20, 2017, October 11, 2017, November 20, 2017,
November 27, 2017 and November 29, 2017 and numerous phone calls.
However, despite CARE's repeated requests, the entity has not
provided the requisite information for monitoring the ratings.

In the absence of minimum information required for the purpose of
rating, CARE is unable to express opinion on the rating. In line
with the extant SEBI guidelines CARE's rating on New Sapna
Granite Industries bank facilities will now be denoted as CARE D;
ISSUER NOT COOPERATING.

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.

Detailed description of key rating drivers

Key Rating Weaknesses

Ongoing delay in debt servicing: NSGI has been irregular in
servicing its debt obligation as there are on-going delays in due
to weak liquidity position of the firm.

Godhra-based New Sapna Granite Limited (NSGI) established in 2011
is a proprietorship firm engaged in cutting and polishing of raw
granite stones. The installed capacity of the plant is processing
6,00,000 square feet of stone per annum. The proprietor has an
experience of over a decade in stone cutting and polishing. He
was earlier engaged in cutting and polishing of marble, granite
and kota stone through a firm named Sapna Kota Stone. The granite
stones are sold to traders and real estate builders in and around
Gujarat, Rajasthan and Maharashtra.


NJT FINANCE: CRISIL Assigns B+ Rating to INR15MM Cash Loan
----------------------------------------------------------
CRISIL Ratings has assigned its 'CRISIL B+/Stable' rating to the
long-term bank facility of NJT Finance Private Limited.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit              15       CRISIL B+/Stable

The rating reflects the company's small scale of operations and
vulnerable asset quality. These weaknesses are partially offset
by adequate capitalisation.

Key Rating Drivers & Detailed Description

Weaknesses

* Small scale of operations: NJT Finance is small non-banking
finance company (NBFC) providing short-term business loans to
traders across Kerala. It had assets under management (AUM) of
INR15.2 crore and 110 clients as on September 30, 2017. It has
its own marketing team and a network of direct selling agents to
source business. Since most of the loans are short term, ability
to increase client base is critical to enhancing the loan
portfolio.

* Vulnerable asset quality: NJT Finance provides short term loans
towards the working capital requirements of small traders. The
company has established its own risk assessment framework for
borrowers, including for cash flow analysis. It also monitors
repayment on a regular basis, and has weekly collection. This has
enabled the company to maintain sound asset quality with gross
non-performing assets of 1.1% as on March 31, 2017. However, most
of its borrowers have modest credit profile. Any unforeseen
pressure on their cash flow will affect their repayment capacity,
leading to delinquencies. Therefore, NJT Finance's ability to
maintain sound asset quality as scale of operations increases
will remain a monitorable.

Strength

* Adequate capitalization: The company is adequately capitalised
for its expected scale of operations over the medium term.
Networth was INR7.5 crore and gearing was low at 1.2 times as on
September 30, 2017. The gearing is expected at 3 times over the
medium term. The promoter has infused equity capital of INR6.5
crore so far.

Outlook: Stable

CRISIL believes NJT Finance's scale operations will remain small
and asset quality vulnerable over the medium term. The outlook
may be revised to 'Positive' if the company scales up operations
significantly while maintaining adequate capitalisation, healthy
earnings, and sound asset quality. The outlook may be revised to
'Negative' if capitalisation is affected by weakening of asset
quality or profitability.

Based in Kottayam, Kerala, NJT Finance was established as Alapatt
Finance Pvt Ltd in 1995. It got its current name after it was
acquired by present promoter Mr. Alex Thomos in September 2015.
Mr. Alex has been operating as a moneylender for more than two
decades. The company provides short-term business loans of INR25
lakh to INR1 crore for 20-50 weeks. It collects installments of
principal and interest on a weekly basis.

For the first half of fiscal 2018, profit after tax was INR0.47
crore and total income was INR0.81 crore.


OM BESCO: CARE Moves D Rating to Not Cooperating Category
---------------------------------------------------------
CARE Ratings has been seeking information from Om Besco Rail
Products Limited to monitor the rating vide e-mail communications
dated October 25, 2017, October 30, 2017 and November 20, 2017
and numerous phone calls. However, despite CARE's repeated
requests, the company has not provided the requisite information
for monitoring the ratings. In line with the extant SEBI
guidelines, CARE has reviewed the rating on the basis of the
publicly available information. Further, Om Besco Rail Products
Limited has not paid the surveillance fees for the rating
exercise as agreed to in its Rating Agreement. The rating on Om
Besco Rail Products Limited's bank facilities will now be denoted
as CARE D; ISSUER NOT COOPERATING.

CARE gave these ratings:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank        46.00       CARE D; ISSUER NOT
   Facilities                        COOPERATING

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.

The ratings assigned to the bank facilities of Om Besco Rail
Products Limited takes into account ongoing delay in debt
servicing due to stretched liquidity position of the company.

Om Besco Rail Products Ltd. (Om Besco) was promoted by Shri Madhu
Sudan Tantia (son of Shri O.P Tantia) in March 2008. The company,
after incorporation, remained dormant for about 4 years. In 2012,
Om Besco ventured into setting up manufacturing facility of alloy
steel casting products (bogies, couplers, draft gears) to be used
in railway freight wagons with a plant capacity of 16,100 MTPA in
Jharkhand. The project is backward integration to meet the raw
material requirement of the flagship company - Besco Ltd (Wagon
division) [Besco].

Status of non-cooperation with previous CRA: CRISIL has put the
rating of Om Besco under non cooperation vide press release dated
April 29, 2017 due to lack of co-operation from the company.


OMVISHWA GRAINS: CARE Assigns 'B' Rating to INR7.0cr LT Loan
------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of
Omvishwa Grains Private Limited (OVG), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             7.00       CARE B; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of OVG is constrained
by limited experience of its promoters, stabilisation risk
associated with newly setup debt funded green field project. The
rating is further constrained by susceptibility of margins to
fluctuation in raw material prices and company's presence in
competitive and fragmented industry with high government
regulation. The rating, however, derives strength from favorable
location of its plant.

Going forward, the ability of the company to achieve envisaged
sales of its products at projected sales price would remain its
key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Limited experience of promoters in agro processing industry: OVG
is currently being managed by Mr. Raghbir Chand, Mr. Dharam Pal
and Mr. Ved Prakash. Mr. Raghbir Chand, Mr. Dharam Pal and Mr.
Ved Prakash have an industry experience of around two decades,
one and a half decades, and three decades respectively as a
commission agent through their association with Ram Niwas Raghbir
Chand, Bishan Kumar Nand pal and Ram Krishan Trading Company
respectively. The promoters have no prior experience in agro
processing industry. However, the management is supported by a
team of experienced and qualified professionals having varied
experience in the technical, finance and marketing fields.

Stabilisation risk associated with newly setup debt funded green
field project: The operations of the company commenced operations
in October 2017; however, term loan has not been fully disbursed
yet. Further, post project implementation risk is associated in
the form of stabilization of the manufacturing facilities to
achieve the envisaged scale of business and salability risk is
associated with the products in the light of competitive nature
of industry. During the initial phases of operations, the capital
structure of the company is expected to remain leveraged
characterized by high overall gearing of over seven times due to
capex term loans and low capital base.

Susceptibility to fluctuation in raw material prices and monsoon
dependent operations: Agro-based industry is characterized by its
seasonality, due to its dependence on raw materials whose
availability is affected directly by the vagaries of nature.
Availability and prices of agro commodities are highly dependent
on the climatic conditions. Adverse climatic conditions can
affect their availability and leads to volatility in raw material
prices. The monsoon has a bearing on crop availability which
determines the prevailing rice prices. Any sudden spurt in the
raw material prices may not be passed on to customers completely
owing to company's presence in highly competitive industry.

Fragmented nature of industry coupled with high level of
government regulation: The commodity nature of the product makes
the industry highly fragmented with numerous players operating in
the unorganized sector with very less product differentiation.
There are several small scale operators which are not into end-
to-end processing of rice from paddy, instead they merely
complete a small fraction of processing and dispose-off semi-
processed rice to other big rice millers for further processing.
Furthermore, the raw material (paddy) prices are regulated by
government to safeguard the interest of farmers, which in turn
limits the bargaining power of the rice millers.

Key Rating Strengths

Location advantages: OVG is engaged in processing of paddy and
milling of rice. The main raw material (Paddy) is procured
through commission agents from grain market in Haryana, Uttar
Pradesh, Bihar and Punjab. The company's processing facility is
situated at Kaithal, Haryana which is one of the largest
producers of paddy in India. Its presence in the region gives
additional advantage over the competitors in terms of easy
availability of the raw material as well as favorable pricing
terms. OVG owing to its location is also in a position to cut on
the freight component of incoming raw materials.

Omvishwa Grains Private Limited (OVG) was incorporated as a
private limited company in February 2017 and the company is
currently being managed by Mr. Raghbir Chand, Mr. Dharam Pal, and
Mr. Ved Prakash. OVG is established with an aim to set up a
manufacturing facility at Kaithal, Haryana for processing of
paddy with an installed capacity of processing 50,000 tonnes of
paddy per annum as on November 24, 2017. The commercial
operations of the company commenced in October, 2017.


PADMAJA POWER: Ind-Ra Migrates B Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Padmaja Power
Private Limited's (PPPL) 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:

-- INR150 mil. Fund-based working capital limit migrated to non-
    cooperating category with IND B(ISSUER NOT COOPERATING)/
    IND A4 (ISSUER NOT COOPERATING) rating;

-- INR150 mil. Non-fund-based working capital limits migrated to
    non-cooperating category with IND A4(ISSUER NOT COOPERATING)
    rating; and

-- INR200 mil. Proposed fund-based working capital limit
    migrated to non-cooperating category with Provisional
    IND B(ISSUER NOT COOPERATING)/Provisional IND A4 (ISSUER NOT
    COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
Dec. 9, 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 2010, PPPL undertakes civil and infrastructure
construction, primarily in the irrigation, bridge and road
segments.


PALANI ANDAVAR: Ind-Ra Assigns BB+ Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned The Palani
Andavar Mills Limited (TPAML) a Long-Term Issuer Rating of 'IND
BB+'. The Outlook is Stable. The instrument-wise rating actions
are:

-- INR55 mil. Fund-based facilities assigned IND BB+/Stable/IND
    A4+ rating; and

-- INR39.813 mil. Long-term loan due on March 2027 with IND
    BB+/Stable rating.

KEY RATING DRIVERS

The ratings reflect TPAML's small scale of operations and
moderate credit metrics. Revenue increased to INR366 million in
FY17 from INR313 million in FY16 due to a rise in sales volume,
driven by an increase in installed capacity to 31,440 spindles
for manufacturing combed yarn from 25,696 spindles in FY15. As of
November 2017, the company had INR17.5 million worth of orders in
hand that will be executed by end-December 2017. It booked INR270
million in revenue for 7MFY18.

Moreover, interest coverage (operating EBITDA/gross interest
expense) was 6.8x in FY17 (FY16: 5.8x) and net financial leverage
(total adjusted net debt/operating EBITDAR) was 2.9x (1.6x). The
improvement in interest coverage was driven by an increase in
operating EBITDA, while the deterioration in net leverage was due
to an increase in debt to undertake expansion capex at the site
in FY17. In FY17, EBITDA margin was moderate at 9.2% (FY16:
6.4%).

The ratings, however, are supported by TPAML's comfortable
liquidity, indicated by an average fund-based working capital
limit utilisation of about 24.6% for the 12 months ended November
2017, and the promoters' eight decades of experience in cotton
yarn manufacturing.

RATING SENSITIVITIES

Negative: Any decline in revenue and EBITDA margin resulting in
significant deterioration in the credit metrics will be negative
for the ratings.

Positive: Any substantial growth in revenue, along with the
maintenance of EBITDA margin at the current level leading to an
improvement in the credit metrics, on a sustained basis will be
positive for the ratings.

COMPANY PROFILE

Incorporated in 1933, TPAML is engaged in cotton yarn
manufacturing. It has a production capacity of 31,440 spindles at
its site in Udamalpet in the Tiruppur district, Tamil Nadu, which
operates in three shifts, with a 90% production capacity.


PATSPIN INDIA: CARE Reaffirms 'D' Rating on INR121.06cr LT Loan
---------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Patspin India Limited, as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            121.06      CARE D Reaffirmed

   Short-term Bank
   Facilities            157.50      CARE A4 Reaffirmed

   Long/Short-term         7.00      CARE C; Stable/CARE A4
   Bank Facilities                   Reaffirmed

Detailed Rationale & Key Rating Drivers

The reaffirmation in the ratings takes into account the instances
of delays in servicing of term loans on account of relatively low
cash accruals in FY17 (refers to the period April 1 to March 31).
The ratings also take note of experience of the promoters &
management and synergy of operations among the group companies.

Detailed Description of the Key Rating Drivers

Key Rating Weaknesses

Instances of delays in debt servicing: Total income increased by
11% to INR557 crore in FY17 from INR502 crore in FY16. The
company reported a profit of INR10 crore in FY17 compared to
profit of INR0.8 crore in FY16. On account relatively low cash
accruals and higher interest cost, there have been instances of
delays in servicing of term loans.

Key Rating Strengths

Well-experienced promoters and management: Mr. B K Patodia,
current Chairman of Patspin India Limited (PIL) is an engineering
graduate from BITS, Pilani. He has over 40 years of experience in
the textile industry, yarn marketing and cotton trade. He has
held the position of Chairman of the Indian Cotton Mills
Federation (ICMF) and Southern India Mills Association (SIMA). He
is also an executive member of the Cotton Textiles Export
Promotion Council, Mumbai. Mr. Umang Patodia (son of B K Patodia)
is the current MD of PIL and has 20 years of experience in the
textile industry. He is ably supported by a well-qualified and
experienced management team to handle the day-to-day affairs of
the company.

Synergy of operations among the group companies: The group is
operating three textile mills in the states of Tamil Nadu &
Kerala. Major activities such as procurement, marketing and
allocation of orders to different units are done at the group
level. Companies are likely to benefit from this synergy of
operations.

The primary business activity of PIL is production and sale of
cotton yarn. In addition to this, it is also engaged in value-
adding activities like TFO (Two-For-One) twisting and gassing of
the textile yarn. PIL has two spinning units located at Palakkad,
Kerala and Ponneri, Tamil Nadu with a total capacity of 113,856
spindles as on March 31, 2017. The Palakkad unit produces medium
and fine counts yarn ranging from 24s to 100s. The company's
second spinning unit at Ponneri, Tamil Nadu, which was
established in 2007 produces counts ranging from 20s to 80s.

During FY17, the company reported total income of INR557 crore
and net profit of INR10 crore against total income of INR502
crore and net profit of INR0.8 crore in FY16.

The primary business activity of Patspin India Limited is
production and sale of cotton yarn. In addition to this, it is
also engaged in value-adding activities like TFO (Two-For-One)
twisting and gassing of the textile yarn. PIL has two spinning
units located at Palakkad, Kerala and Ponneri, Tamil Nadu with a
total capacity of 113,856 spindles as on March 31, 2017. The
Palakkad unit produces medium and fine counts yarn ranging from
24s to 100s. The company's second spinning unit at Ponneri, Tamil
Nadu which was established in 2007 produces counts ranging from
20s to 80s.

During FY17, the company reported total income of Rs.557 crore
and net profit of Rs.10 crore against total income of Rs.502
crore and net profit of Rs.0.8 crore in FY16.


RANASARIA POLY: Ind-Ra Assigns BB+ Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Ranasaria Poly
Pack Private Limited (RPPPL) a Long-Term Issuer Rating of 'IND
BB+'. The Outlook is Stable. The instrument-wise rating actions
are:

-- INR200 mil. *Fund-based facilities assigned with IND
    BB+/Stable/IND A4+ rating; and

-- INR50 mil. *Non-fund-based facilities assigned with IND A4+
    rating.

*There is 100% interchangeability between fund-based and non-
fund-based working capital.

KEY RATING DRIVERS

The ratings reflect RPPPL's moderate scale of operations and weak
credit metrics owing to low EBITDA margin. The company's revenue
increased by 24% to INR1,243 million in FY17 (FY16: INR1,007
million) on account of high realisation. RPPPL's net leverage
(Ind-Ra adjusted net debt/operating EBITDAR) was 5.5x in FY17
(FY16: 5.3x) and gross EBITDA interest coverage (operating
EBITDA/gross interest expense) was 2.0x (1.8x). EBITDA margin
declined to 4.0% in FY17 (FY16: 4.8%) due to a fluctuation in the
raw material prices. Till 31 October 2017, RPPPL booked revenue
of INR816.5 million. As of November 2017, the company has an
order book worth INR200 million, to be executed in two months.

The ratings, however, reflect RPPPL's comfortable liquidity
position and a moderate net cash conversion cycle. The company's
peak combined average utilisation of the fund-based and non-fund-
based limits was 57% during the 12 months ended October 2017. Net
cash conversion cycle was 95 days in FY17 (FY16: 95 days).

The ratings are supported by the promoter's three decades of
experience in the polypropylene sacks and woven fabrics
manufacturing business.

RATING SENSITIVITIES

Positive: A substantial growth in revenue, and/or improvement in
the EBITDA margin leading to a sustained improvement in the
credit metrics could lead to a positive rating action.

Negative: A decline in revenue, and/or the EBITDA margin leading
to a sustained deterioration in the credit metrics could lead to
a negative rating action.

COMPANY PROFILE

Incorporated in July 2002, RPPPL is engaged in the manufacturing
and exporting of high density polyethylene/polypropylene sacks,
woven fabric, and liner packaging bags for fertilisers, chemical
sugar, rice, spices, food grains, cement and salt, at its 750MTPA
unit in Gandhinagar, Gujarat.


RAVANI REALTERS: CARE Reaffirms B+ Rating on INR120cr LT Loan
-------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Ravani Realters (Ravani), as:

                       Amount
   Facilities        (INR crore)    Ratings
   ----------        -----------    -------
   Long-term bank
   Facilities             120       CARE B+; Stable Reaffirmed

The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of withdrawal of the
capital or of the unsecured loans brought in by the partners, in
addition to the changes in the financial performance and other
relevant factors.

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facility of Ravani continues to
remain constrained by its presence in an inherently cyclical and
competitive real-estate industry along with its constitution as a
partnership firm. The rating also continues to be constrained on
account of the implementation and saleability risk of its ongoing
residential project due to moderate project progress exposing the
firm to the risk of time and cost overrun, modest booking status
and pending payment of enhanced Floor Space Index (FSI) fee to
Surat Municipality Corporation (SMC). The rating, however, draws
strength from the vast experience of the promoters in executing
various real estate projects in Surat city. The ratings also take
cognizance of achievement of financial closure and comfortable
moratorium period. Ravani's ability to receive approval for
enhanced FSI, successfully complete the ongoing project within
envisaged time and cost parameters, sell the balance units in a
timely manner at envisaged price and timely realisation of sales
proceeds are the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Project implementation and saleability risk: The project was
launched in April 2016 and was envisaged to be completed by
September 2019. However, due to delay in receipt of financial
closure and approval for additional FSI, a time overrun of
roughly six months is envisaged and the project is now envisaged
to be completed by March 2020. As on September 11, 2017, Ravani
had incurred 26% of total project cost (INR65.60 crore) out of
envisaged total cost of INR252.19 crore. In terms of
construction, only 20% of construction cost has been incurred
till September 11, 2017. Moreover, till October 31, 2017, Ravani
had received bookings for only 27% of total saleable area. With
significant cost yet to be incurred and modest booking status,
the firm remains exposed to project implementation and
saleability risk.

Risk inherent to real-estate sector: The real estate sector in
India is highly fragmented with most of the real-estate
developers having city-specific or region specific presence. The
real estate industry is also exposed to inherent cyclicality and
interest rate risk. The industry is facing issues on many fronts
viz. subdued demand and rising input costs.

Constitution as a partnership firm: Ravani is a partnership firm,
which restricts its financial flexibility with possibility of
withdrawal of capital by the partners from the firm. Also, the
Ravani Group has other ongoing real-estate project, which
increases the risk associated with withdrawal of capital.

Key Rating Strengths

Long track record of execution along with experienced partners in
the real-estate industry: Mr. Rajeshkumar Ravani and other active
partners have more than two decades of experience in the real-
estate industry and are supported by a technical team to manage
day-to-day operations of the firm. Ravani Group has a long track
record of executing over 40 real estate projects across wide
range of segments viz. residential (apartments and bungalows) and
commercial.

Constituted in April 2016, Ravani is a partnership firm
incorporated jointly by Ravani Developers and Mr Mahavirkumar
Shah. The firm launched the project 'Antlia Dreams' in Vesu,
Surat- Gujarat and it comprise of 7 residential towers
aggregating to 224 residential units with a total saleable area
of 8,89,248 Sq.ft. The project was launched in April 2016 and is
envisaged to be completed by March 2020 at a total cost of INR252
crore as against earlier projection of September 2019 at a total
cost of INR277 crore.


SAISUDHIR ENERGY: CARE Moves D Rating to Not Cooperating Category
-----------------------------------------------------------------
CARE Ratings has been seeking information from Saisudhir Energy
Limited to monitor the ratings vide e-mail communications dated
June 30, 2017, July 28, 2017, August 2, 2017, August 31, 2017,
September 2, 2017, September 15, 2017, September 29, 2017,
October 4, 2017, October 6, 2017, October 23, 2017, October 30,
2017, November 2, 2017, November 17, 2017 and numerous phone
calls. However, despite CARE's repeated requests, the company has
not provided the requisite information for monitoring the
ratings. In the absence of minimum information required for the
purpose of rating, CARE is unable to express opinion on the
rating. In line with the extant SEBI guidelines CARE's rating for
bank facilities of Saisudhir Energy Limited will now be denoted
as CARE D; ISSUER NOT COOPERATING.

CARE gave these ratings:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank        146.87      CARE D; Issuer not
   Facilities                        cooperating

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).

Detailed description of key rating drivers

At the time of last rating on March 6, 2017, the following were
the rating strengths and weaknesses:

Key Rating Weaknesses

Continued delays in debt servicing owing to cash flow mismatches:
There are continued delays in debt servicing on account of cash
flow mismatches primarily due to mismatch in date of receipt of
realization from NTPC and due date of repayment.

Saisudhir Energy Ltd. (SEL) was incorporated in 2010 by Mr. D.
Sreedhar Reddy to set up solar power plants in the Ananthpur
District in state of Andhra Pradesh. The company is a 100%
subsidiary of Saisudhir Infrastructures Limited (SSIL). SEL has
successfully commissioned two solar photovoltaic power plants of
5 MW and 20 MW respectively in Ananthpur district of Andhra
Pradesh. The 5 MW project was commissioned on January 5, 2012
within stipulated timelines. There was a delay in commissioning
of 20 MW project. As per the Power Purchase agreement (PPA),
Scheduled Commercial Operation Date (SCOD) was 23 February 2013
however; the project was commissioned on July 24, 2013 with a
delay of five months. The company has entered into long term PPA
with NTPC VidyutVyapar Nigam Limited for entire 25 MW capacity.


SENTHUR TEXTILES: CARE Reaffirms B Rating on INR7.73cr LT Loan
--------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Senthur Textiles Private Limited (STPL), as:

                     Amount
   Facilities        (INR crore)    Ratings
   ----------        -----------    -------
   Long term Bank
   Facilities             7.73      CARE B; Stable Reaffirmed

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of STPL continues to
be tempered by small scale of operations, financial risk profile
marked by low profitability, leveraged capital structure, weak
debt coverage indicators and working capital intensive nature of
operations. The rating is further constrained by susceptibility
of profit margins due to fluctuating raw material prices and
presence in highly fragmented and competitive industry. The
ratings, however, continue to derive strength from experience of
promoter in cotton yarn manufacturing, marginal growth in total
operating income in FY17 (refers to period April 1 to March 31)
and increasing demand for yarn in local market.

Going forward, the ability of the company to increase its scale
of operations and profitability, improve capital structure and
debt coverage indicators and efficiently manage its working
capital requirements remains the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weakness

Small scale of operations: The company has small scale of
operations marked by TOI of INR 27.19 crore in FY17 and low
networth of INR 2.30 crore as of March 31, 2017.

Weak financial risk profile marked by low profitability and high
leverage: Overall gearing ratio continues to remain weak at 4.32x
as on March 31, 2017. However the overall gearing marginally
deteriorated when compared to 4.18x as on March 31, 2016 on
account of increased utilization of Working Capital Facility as
on accounts closing date. The PBILDT margin has been decreasing
year on year and stood at 5.91% in FY17 due to increase in
material cost, employee cost & other manufacturing expenses.
However, the PAT margin of the firm increased by 12 bps in FY17
over FY16 and stood at 0.29% on back of increase in PBILDT and
reduction in the interest costs associated with decrease in total
debt owing to the scheduled repayment of the same.

Leveraged capital structure: The capital structure of the company
stood moderate marked by debt equity ratio of 1.31x as of March
31, 2017 as against 1.50x as of March 31, 2016. The improvement
in the same was due to the reduction in the long term debt
associated with scheduled repayment of the term loans. Overall
gearing ratio continues to remain leveraged and declined
marginally from 4.18x as of March 31, 2016 to 4.32x as of
March 31, 2017 on back of increased utilization of working
capital facility.

Weak debt coverage indicators: Debt coverage indicators also
stood weak marked by interest coverage ratio of 1.51x in FY17 as
against 1.43x in FY16. TD/GCA stood weak at 19.49x in FY17 due to
thin cash accruals.

Working capital intensive nature of operations: On sales STPL
offers credit period ranging from 30-45 days. On purchases, the
company avails credit period ranging from 30-50 days. The working
capital cycle improved from 101 days in FY16 to 90 days in FY17
due to reduction in average inventory period and increase in
credit period availed from suppliers. Average inventory period
improved from 96 days in FY16 to 91 days in FY17 on back of
increased orders resulting in fast movement of inventories. The
working capital facilities are fully utilized for the last 12
months ended October 2017.

Susceptibility of profit margins due to fluctuating raw material
prices: The textile industry as a whole is affected by raw
material price fluctuations, availability of raw cotton and
Government regulations, significantly impacting operations and
profitability of companies operating in that industry.

Presence in highly competitive industry: The main raw material
for the firm is yarn, the prices of which are highly volatile and
is dependent upon the global economic scenario. Further, textile
industry in India is highly fragmented with presence of large
number of small and medium scale units. Due to high degree of
fragmentation small players holds very low bargaining power
against both its customers as well as suppliers resulting in such
companies operating at low profit margins.

Key Rating Strengths

Experience of promoter in cotton yarn manufacturing: Senthur
Textiles Private Limited is managed by Mr. P.J. Ramkumar Rajha
who is the Managing Director of the company. The Managing
Director of STPL has a rich experience of around three decades in
the textile industry and is with the company since its inception.

Growth in total operating income: The total operating income of
the company grew by 10% in FY17 over FY16 and stood at INR27.19
crore due to increased orders, efficient capacity utilisation and
favorable market conditions for the textile industry in FY17. The
company derives 97% of its total income by direct sales of yarn
while the remaining revenue comes from sale of waste cotton and
yarn.

Senthur Textiles Private Limited (STPL) was incorporated in the
year 1994, promoted by Mr. P. J. Ramkumar Rajha. STPL is
completely owned and managed by the family members and is engaged
in the cotton yarn manufacturing. The firm procures raw cotton
from traders in Andhra Pradesh, Telangana, Karnataka, Maharashtra
and Gujarat and sells cotton yarn through agents in the form of
cones to textile companies in Erode, which is a cluster of
textile business with huge demand for cotton yarn. The
manufacturing unit is located at Rajapalyam, Tamil Nadu with an
installed capacity of 9,240 spindles. The capacity utilization
ranged between 90%-95% as of November 22, 2017.

Mr. P.R. Jagadeesh Chandar (S/o Mr. Ramkumar Rajha) has joined
the business in FY15 after completing his MBA in Human Resource
and industry experience of 1 1/2 years in a Human Resource
Management company in Bangalore. The day-to-day operations are
managed by Mr. P. J. Ramkumar Rajha, Managing Director (who has
got wide experience of more than three decades in the business of
yarn production) along with Mr. P.R. Jagadeesh Chandar.


SHAHI SHIPPING: CRISIL Hikes Rating on INR5MM Cash Loan to B+
-------------------------------------------------------------
CRISIL Ratings has upgraded its rating on the long-term bank
facilities of Shahi Shipping Ltd (SSL) to 'CRISIL B+/Stable' from
'CRISIL C', and reaffirmed the short-term rating at 'CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Bank Guarantee           2        CRISIL A4 (Reaffirmed)

   Cash Credit              5        CRISIL B+/Stable (Upgraded
                                     from 'CRISIL C')

   Proposed Long Term       3        CRISIL B+/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL C')

The upgrade reflects revocation of non-performing asset status
after settlement of all debt obligation as business risk profile
improved with better revenue.

The ratings reflect susceptibility of profit margins to
competitive pressure, and large working capital requirement on
account of stretch in receivables following weak liquidity. These
weaknesses are partially offset by promoter's extensive
experience in the logistics industry and his funding support.

Key Rating Drivers & Detailed Description

Weakness

* Susceptibility of profit margins to competitive pressure:
Profit margins remain vulnerable to competition on account of
fragmented industry structure and limited bargaining power of
players due to low service differentiation.

* Large working capital requirement: Gross current assets were
331 days as on March 31, 2017, due to stretched receivables of
324 days. The company extends credit of 30 days to public sector
clients but payments are usually realized in more than six
months. Management of receivables will remain a key rating
sensitivity factor for liquidity.

Strength

* Extensive experience of promoters in the logistics industry:
Presence of three decades in the international and coastal
shipping business has helped the promoter to establish a stable
clientele, which includes Indian Oil Corporation, Hindustan
Petroleum Corporation Ltd, and Oil and Natural Gas Corporation
Ltd. Promoter has also extended need-based funds, reflected in
unsecured loans of INR4.9 crore as on March 31, 2017.

Outlook: Stable

CRISIL believes SSL will benefit over the medium term from the
extensive experience of its promoters. The outlook may be revised
to 'Positive' if higher-than expected accrual and effective
working capital management strengthen financial risk profile. The
outlook may be revised to 'Negative' if lower-than-expected
accrual or stretch in working capital cycle further weakens
financial risk profile.

SSL was established as a partnership firm in 1985 by Mr. SK
Shahi. In 1990, it was reconstituted as a private limited
company, Shahi Shipping Transport Pvt Ltd, which was subsequently
reconstituted as a public limited company in 2013 and remained
SSL. The company is engaged in the shipping industry and provides
transportation through barges. Fleet comprises mini bulk
carriers, general cargo carriers, chemical carriers, petroleum
carriers, water supply barges, tugs, and launches.


SHOR SHOT: CRISIL Lowers Rating on INR1.5MM Cash Loan to B
----------------------------------------------------------
CRISIL Ratings has downgraded its rating on the long-term bank
facilities of Shor Shot India Private Limited (SSIPL) to 'CRISIL
B/Stable' from 'CRISIL B+/Stable, and reaffirmed the short-term
rating at 'CRISIL A4'.

                        Amount
   Facilities          (INR Mln)     Ratings
   ----------          ---------     -------
   Cash Credit             1.5       CRISIL B/Stable (Downgraded
                                     from 'CRISIL B+/Stable')

   Foreign Bill Purchase   1.2       CRISIL B/Stable (Downgraded
                                     from 'CRISIL B+/Stable')

   Letter of Credit        1         CRISIL A4 (Reaffirmed)

   Packing Credit          3         CRISIL A4 (Reaffirmed)

   Standby Line of
   Credit                  1         CRISIL A4 (Reaffirmed)

   Proposed Long Term      4.3       CRISIL B/Stable (Downgraded
   Bank Loan Facility                from 'CRISIL B+/Stable')

The downgrade reflects weakening of the liquidity driven by
working capital-intensive operations, reflected in fully utilised
bank limit. Cash accrual is expected to be modest (INR40-60 lakhs
annually) against high debt obligation on business/corporate
loans (INR1.79 crore in fiscal 2018 & over INR1 crore in fiscal
2019) over the medium term. However, the resultant gap is
expected to be met by fund infusion from promoters. Operating
income remained flat at INR19-21 crore over the three fiscals
through 2017, operating profitability has also remained in the
range of 5.9 to 6.5 per cent over the same period.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations: With operating of INR20.2 crore in
fiscal 2017, scale is modest. Also, revenue has remained stagnant
in the last three years due to stagnant demand in export markets.

* Working capital-intensive operations: Gross current assets were
high at 306 days as on March 31, 2017, due to sizeable inventory
of 154 days and stretched receivables of 143 days. SSIPL procures
grey cloth and outsources the finishing and processing
activities.

Strength

* Promoters' extensive experience: Company's promoters have been
in the textile industry since 1998. Though it exports largely to
the UK and US, it has diversified customer base by starting to
export to Russia and Spain. Promoters' experience has helped the
company to sustain top line amid economic downturns and sustain
strong relationships with customers and suppliers.

Outlook: Stable

CRISIL believes SSIPL will continue to benefit over the medium
term from the extensive experience of its promoters. The outlook
may be revised to 'Positive' if sustained and significant growth
in scale of operations and profitability, along with prudent
working capital management, leads to higher-than-expected accrual
and better financial risk profile. The outlook may be revised to
'Negative' if lower-than-anticipated cash accrual or sizeable
working capital requirement weakens liquidity.

Incorporated in 1996, SSIPL manufactures and exports ready-made
garments such as skirts, blouses, and trousers for women. The
company largely sells through distributors to clients in the UK,
the US, and Russia. It has a manufacturing unit in Delhi.


SOHAM COLD: CARE Assigns 'B+' Rating to INR5.45cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Soham
Cold Storage and Chilling Plants (SCS), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long Term Bank
   Facilities             5.45       CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of SCS are primarily
constrained on account of its constitution as a partnership firm,
implementation and stabilization risk associated with ongoing
project, fragmented nature of industry due to competitive nature
of business, business prospects depends on vagaries of nature and
seasonality of business along with the risk of delinquency in
loans extended to farmers. However, the ratings derive strengths
from experienced partners and location advantage with proximity
to potato growing region of Uttar Pradesh and eligibility of
capital subsidy from Central as well as state Government. The
ability of SCS to stabilise operation and increase its scale of
operations along with achieving envisaged level of revenue and
profitability would remain the key rating sensitivities.

Detailed description of the key rating drivers

Key rating weaknesses

Constitution as a partnership firm: SCS, being a partnership
firm, is exposed to inherent risk of partners' capital being
withdrawn at time of personal contingency, and firm being
dissolved upon the death/retirement/insolvency of partners.
Further, partnership firms have restricted access to external
borrowing as credit worthiness of partners would be key factors
affecting credit decision for lenders.

Project implementation and stabilization risk: SCS completed work
of two chambers and commenced operations from March 2017.
However, presently it is establishing third chamber with project
cost of INR 2.41 crore with installed capacity of 26,279 quintals
and project gearing of 3.82 times. Presently, more than 50% of
the project is completed by the firm. Therefore, with balance
costs yet to incur, SCS is exposed to stabilization risk with
regard to achieving envisaged level of revenue and profitability.

Fragmented nature of industry coupled with competitive nature of
business: SCS operates in the cold storage services industry
which is highly fragmented with presence of numerous independent
small-scale enterprises owing to low entry barriers leading to
high level of competition in the segment.

Business prospects depend on vagaries of nature and seasonality
of business: SCS's operations are seasonal in nature as potato is
a winter season crop with the harvesting period commencing in
February. The loading of potatoes in cold storages begins by the
end of February and lasts till March. Further, lower output of
potato can have an adverse impact on the rental collections as
the cold storage units collect rent on the basis of quantity
stored and the potato production is highly dependent on vagaries
of nature.

Risk of delinquency in loans extended to farmers: As a part of
the government's initiative to support agriculture, banks extend
financial assistance to farmers through cold storages against the
pledge of cold storage receipts. Working capital limits under
potato on lending to farmers scheme from banks are used to extend
advances to farmers, which are routed through SCS to the farmers.
Before the close of the season in November, the farmers are
required to pay their outstanding dues, including repayment of
the loan taken, along with the interest. In view of this, there
exists a risk of delinquency in loans extended to the farmers, in
case of downward correction in the potato prices being an agro
commodity.

Key rating strengths

Diversified experienced partners albeit no relevant experience in
the storage service industry: SCS is established by two partners'
viz: Mr. Pravesh Gupta and Mrs Manju Gupta. Mr.Pravesh Gupta has
more than two decades of experience in the jewellery business.
Overall supervision and control will be done by both the partners
collectively and technically qualified and well experienced
operators will assist them. Although, partners possess long
experience in the trading segment, they do not have any relevant
experience with respect to cold storage facilities and controlled
environment services. Hence, their ability to manage the
operations of SCS is yet to be ascertained.

Proximity to potato growing region of Uttar Pradesh Uttar Pradesh
is the largest producer of potato in India. The potato belt in
Uttar Pradesh stretches from Agra in the west to Kanpur in
central part of the state. The cold storage facility of the firm
is located in potato growing belt of Uttar Pradesh having large
network of potato growers, thereby making it suitable for the
farmers in terms of transportation and connectivity. Hence, SCS's
presence in potato producing region results in benefit of
consistent demand from potato chips manufacturers and farmers;
providing sustainable and clear revenue visibility. Furthermore,
as per the revised policy of National Horticulture Mission (NHM),
proposed cold storage facility of SCS will be eligible for credit
linked back-ended subsidy.

Capital investment subsidy from the Central and State government:
As per the revised policy of National Horticulture Mission (NHM),
proposed cold storage facility of SCS will be eligible for credit
linked back-ended subsidy as well as electricity duty concession
for ten years from Government of Uttar-Pradesh.

SCS was established in July 2016 by Mr.Pravesh Gupta and his wife
Mrs.Manju Gupta. SCS was established to provide cold storage
facilities at Agra through 3 chambers with total installed
capacity of 80631 quintals of potatoes per annum. However, work
of two chambers has been completed and one chamber will complete
in February 2018. The main objective of setting up SCS is to
preserve potatoes for longer duration. The plant will be located
at Agra which contributes significantly to agricultural
production of the state. SCS completed establishing two chambers
and commenced operations from March 2017.

During 7MFY18 (Provisional), SCS has achieved a TOI of INR1.10
crore approximately.


SRI CHENNAKESAVA: CRISIL Reaffirms B Rating on INR2MM LT Loan
-------------------------------------------------------------
CRISIL Ratings has reaffirmed its ratings on the bank loan
facilities of Sri Chennakesava Constructions at 'CRISIL
B/Stable/CRISIL A4'.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Bank Guarantee          21       CRISIL A4 (Reaffirmed)

   Overdraft                1       CRISIL B/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility       2       CRISIL B/Stable (Reaffirmed)

The ratings continue to reflect a small scale of operations, high
geographic and customer concentration in order book, and exposure
to intense competition in the construction industry. These rating
weaknesses are partially offset by the extensive industry
experience of the promoters and moderate financial risk profile.

Key Rating Drivers & Detailed Description

Weakness

* Modest scale of operations, and high geographic and customer
concentration in order book: The business risk profile is
constrained by modest scale of operations and limited revenue
diversity. Modest revenue, at INR34.74 crore in fiscal 2017,
prevents the firm from achieving economies of scale and limits
the bargaining power with suppliers. SCC operates mainly in
Andhra Pradesh and Telangana. Any instance of civic disturbance
or labour shortage in these states could impact realisation from
projects, thereby impacting the liquidity. The business risk
profile will remain constrained over the medium term by its
modest scale of operations and the high geographic and customer
concentration in its revenue profile.

* Exposure to intense competition in the construction industry:
The civil construction segment is highly fragmented, marked by
the presence of large companies as well as small local players as
a major portion of the firm's orders are tender-based, and its
revenue depends on ability to bid successfully for these tenders.
Profitability of each project is subject to factors, such as
pricing, availability of labour, machinery mobilisation, and
weather conditions. In view of its promoters' extensive
experience, the firm has an edge over other companies of similar
or smaller size. However, continues to face competition from
major players as well as local and small unorganised players,
constraining its profitability. The business risk profile will
remain constrained over the medium term by intense competition in
the construction industry.

Strengths

* Extensive experience of promoters in civil construction
industry: The business risk profile is aided by its promoters'
extensive experience in the civil construction industry. Mr. G
Ramaiah has experience of over four decades as a contractor for
civil works in Andhra Pradesh and Telangana. Since the 1970s, he
has been undertaking various civil works, especially for
government entities. He started as a small contractor undertaking
orders of low value. Over the years, he has developed
capabilities in executing canal works and has also developed
strong relationships with various government departments and raw
material suppliers.

Financial risk profile

* Low gearing and moderate networth: The gearing was healthy at
0.13 time as on March 31, 2017, and is expected to remain healthy
over the medium term. The networth was moderate at around
INR11.56 crore as on March 31, 2017.

* Above-average debt protection metrics: The debt protection
metrics are estimated to be above-average over the medium term,
with interest coverage and net cash accrual to total debt ratios
at 5.83 times and 1.55 times, respectively, for fiscal 2017.

Outlook: Stable

CRISIL believes SCC will continue to benefit from the extensive
industry experience of its promoters. The outlook may be revised
to 'Positive' if substantial and sustained increase in scale of
operations persist, while profitability margin and continued
improvement in working capital management is maintained. The
outlook may be revised to 'Negative' if a steep decline in
profitability margin, or deterioration in liquidity caused most
likely by a stretched working capital cycle, affects the
financial risk profile.

SCC was set up in 1994 by Mr. G Ramaiah and his family members.
The firm undertakes construction of canals, bridges, and roads.
It is based in Hyderabad.

SCC reported a profit after tax (PAT) of INR2.12 crore on revenue
of INR34.74 crore in fiscal 2017, against PAT INR1.31 crore on
revenue of INR20.13 crore in fiscal 2016.


UNITECH LTD: High Court Stays NCLT Order on Government Takeover
---------------------------------------------------------------
IndiaTV reports that the Supreme Court on Dec. 13 ordered a stay
on a National Company Law Tribunal order on Dec. 8 suspending all
the eight directors of Unitech Ltd over allegations of
mismanagement and siphoning of funds, while authorising the
government to appoint its 10 nominees on the board.

On Dec. 12, the apex court had expressed its disapproval to the
manner in which the government had approached the NCLT in the
case of Unitech and the tribunal's order allowing the government
to take control of the company, IndiaTV relates.

"It is extremely disturbing since the matter is pending before
us. The leave of the court should've been taken," IndiaTV quotes
Chief Justice Dipak Misra as saying on Dec. 12, as he posted the
matter for hearing on Dec. 13.

IndiaTV relates that Attorney general KK Venugopal told the
Supreme Court that that the government should not have approached
the NCLT and the tribunal shouldn't have passed an order allowing
takeover of Unitech at a time the top court is hearing the
matter.

Arguing for Unitech, Mukul Rohatgi challenged the NCLT order
saying a judicial tribunal could not have exercised its power in
a way where the real estate company was given no hearing, the
report says.

Seeking for suspension of the NCLT order, Rohatgi added, "I am
aggrieved by the manner in which the order was passed. If a copy
was given to us, we would've responded," IndiaTV relays.

According to IndiaTV, Unitech had moved the top court on December
11 challenging the tribunal's order saying that "no coercive
steps for execution" can be taken in view of a November 20 order
of the Supreme Court.

IndiaTV relates that the government had earlier approached the
bankruptcy court to take over the Unitech management to protect
the interest of nearly 20,000 home buyers, and 51,000 depositors
to whom the company owes INR723 crore.

The Ministry of Corporate Affairs had filed a petition under
section 241 of the Companies Act, 2013, which allows the
government to apply to the tribunal if it feels that a company is
operating in a manner prejudicial to public interest, which in
this case were homebuyers, shareholders and depositors, the
report recalls.

IndiaTV notes that the MCA petition cites the fate of 19,000
homebuyers, 15,000 small depositors and 700,000 shareholders as
constituting public interest. It says the firm has also defaulted
on debentures worth INR251.78 crore and owes small depositors
INR596.76 crore.

On October 30, the Supreme Court had directed Unitech to deposit
INR750 crore by December to secure bail for Sanjay Chandra, the
report notes.

Sanjay and Ajay Chandra, part of the firm's promoter family, are
named in a case of forgery lodged by buyers of Unitech's Gurugram
project, IndiaTV adds.


UNIVERSAL STAINLESS: CARE Reaffirms B Rating on INR7.66cr Loan
--------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Universal Stainless (UNS), as:

                       Amount
   Facilities        (INR crore)    Ratings
   ----------        -----------    -------
   Long-term Bank
   Facilities             7.66      CARE B; Stable Reaffirmed

   Short-term Bank
   Facilities             2.55      CARE A4 Assigned

Detailed Rationale & Key Rating Drivers

The ratings assigned to the bank facilities of UNS continues to
remain constrained on account of its nascent stage of operation
coupled with small scale of operation, reported loss during FY17
(refers to period April 01 to March 31), leveraged capital
structure, weak debt coverage indicators and weak liquidity
position as on March 31, 2017. The ratings also continue to
remain constrained on account of its presence in highly
fragmented and competitive industry along with its partnership
nature of constitution, risk associated with foreign exchange
fluctuation coupled with susceptibility of margins to volatility
in prices in raw material.

However, the rating continues to derive strength from the wide
experience of the promoters in different industries albeit no
relevant experience in the steel industry. The ratings also
derive comfort from infusion of funds by the partners. The
ability of UNS to increase its scale of operations along with
improvement in the overall financial risk profile amidst highly
competitive steel industry along with efficient working capital
management are the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Nascent stage of operation coupled with modest scale of
operation, reporting net losses, leverage capital structure, weak
debt coverage indicators and modest liquidity position: Operation
of UNS is at nascent stage, as UNS has commenced operation from
April 2016. During its first year of operations UNS has reported
net loss of INR1.07 crore on its total operating income (TOI) of
INR5.84 crore. As a result of high total debt couled with low
networth base, capital structure of UNS stood leveraged marked by
overall gearing ratio of 3.12 times as on March 31, 2017. On
account of cash loss reported during FY17, debt coverage
indicators also stood weak as on Mach 31, 2017. Liquidity
position stood weak marked by below unity current ratio. However,
in order to meet its debt obligations, partners have infused
funds in the form of capital as well as unsecured loans during
FY17 as well as 7MFY18 (Provisional).

Presence in highly fragmented and competitive industry: UNS is
operating in competitive industry having low entry barriers, high
fragmentation and the presence of a large number of players in
the organized and unorganized sector translate into inherently
thin profitability margins.

Risk associated with foreign exchange fluctuation coupled with
susceptibility of margins to volatility in prices in raw
material: The profitability of UNS is exposed to fluctuations in
raw material prices i.e steel, the prices of the same are
volatile in nature. As UNS imported part of its required material
without usingany active hedging policy, hence it is expose to
risk associated with fluctuation in foreign exchange rates. Hence
any adverse movement in material prices and foreign exchange
rates would affect profitability of UNS.

Partnership nature of constitution: Being a partnership firm, UNS
is exposed to inherent risk of partners' capital being withdrawn
at time of personal contingency, and firm being dissolved upon
the death/retirement/insolvency of partners.

Ahmedabad (Gujarat)-based Universal Stainless (UNS) was
established as partnership firm as Universal Stainless Suppliers
in January 2015 by Mr.Jasmin J Patel, Mr.Avtar R Patel and
Mr.Bharatkumar M Patel. During April 2015, Mr.Avtar R Patel
withdrew his partnership and another four partners entered as
partners. During April 2016 the name of the firm was changed to
Universal Stainless from Universal Stainless Suppliers. UNS is
operating from its sole manufacturing unit located Harsol
(Sabarkantha, Gujarat) with installed capacity of 1,480 metric
tonnes per annum (MTPA) as on March 31, 2017 for manufacturing of
Stainless Steel Seamless and Welded Tubes & Pipes. UNS has
commenced commercial operation from April 2016 onwards.


UTTAM DOORS: CARE Moves B+ Rating to Not Cooperating Category
-------------------------------------------------------------
CARE Ratings has been seeking information from Uttam Doors
Private Limited (UDPL) to monitor the rating vide e-mail
communications/
letters dated November 7, 2017, September 7, 2017 August 28,2017
and August 10, 2017 and numerous phone calls. However, despite
CARE's repeated requests, the company has not provided the
requisite information for monitoring the rating. In the absence
of minimum information required for the purpose of rating, CARE
is unable to express opinion on the rating. In line with the
extant SEBI guidelines, CARE's rating on Uttam Doors Private
Limited's bank facilities will now be denoted as CARE B+;ISSUER
NOT COOPERATING.

CARE gave these ratings:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank         9.20       CARE B+; ISSUER NOT
   Facilities                        COOPERATING

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating.

Detailed description of the key rating drivers

At the time of last rating on September 30, 2016, the following
were the rating strengths and weaknesses:

Key Rating Weakness

Small scale of operation with moderate but fluctuating profit
margins:  The scale of operation of the company remained small
with a total operating income (TOI) of INR11.20 crore and
networth base of INR1.97 crore during FY16. The profitability
margins of the company though fluctuating remained moderate owing
to limited value addition and moderate pricing power on account
of trading nature of business.

Leveraged capital structure with moderate debt service coverage
indicators:  The relatively low net worth base of the company led
to increased reliance on debt to support its business operations,
hence resulting in leveraged capital structure. Moreover, with
moderate profitability and high debt profile, the debt coverage
indicators of the company remained moderate.

Working capital intensive nature of the operation:  Operations of
the company remained working capital intensive with high gross
current assets of 244 days with funds blocked in inventory. The
working capital requirements are met by the cash credit facility
, the utilization of which remained high.

Presence in highly fragmented plywood industry with intense
competition: UDPL operates in plywood industry, which is highly
fragmented in nature with presence of large number of organized
and unorganized players. As a result, the competitive pressures
in the industry are high which adversely impacts the bargaining
power and profitability of all the players in the industry.
Further, the domestic market also faces competition from the
cheap imports from China, Malaysia and Indonesia resulting in low
value additions.

Key Rating Strengths

Experienced promoter: The promoter of UDPL, Mr. GulabPatel has
more three decades of experience in the manufacturing and trading
of Plywood door, Laminates and Block board. He is engaged in the
day to day operations of the company and is ably supported by his
son Mr. Yogesh Patel who also has an experience of three years in
the relevant line of business and a team of experienced
personnel.

Nagpur (Maharashtra) based Uttam Door Private Limited (UDPL) was
incorporated in 2012 by Mr. Gulab Patel. The company is engaged
in manufacturing and trading of plywood door, laminates and block
boards. Majority of the revenue is contributed by trading
segment. The manufacturing facility of the company is located at
Nagpur (Maharashtra).The company procures raw material from local
suppliers based in Nagpur and Uttar Pradesh and sell its products
in Maharashtra through dealers.


VANTAGE MACHINE: CARE Moves B Rating to Not Cooperating Category
----------------------------------------------------------------
CARE Ratings has been seeking information from Vantage Machine
Tools Private (VMPL) Limited to monitor the ratings vide e-mail
communications dated August 24 2017, October 25 2017,
November 28, 2017 and numerous phone calls. Despite CARE's
repeated requests; the company has not provided the requisite
information for monitoring the ratings. In the absence of minimum
information required for the purpose of rating, CARE is unable to
express opinion on the rating. In line with the extant SEBI
guidelines, the rating on VMPL bank facilities will now be
denoted as CARE B;ISSUER NOT COOPERATING.

CARE gave these ratings:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long term Bank        15.00       CARE B; ISSUER NOT
   Facilities                        COOPERATING

Users of this rating (including investors, lenders and the public
at large) are hence requested to exercise caution while using the
above rating(s).

The rating takes into account strong demand of CNC (Computer
Numerical Control) machines in the local market, reputed
clientele and adequate raw material availability. The ratings
also factor in nascent stage of operation, limited experience of
the promoters in manufacturing of special purpose machines albeit
experience in other businesses, weak order book position, low
profit margins and highly leveraged capital structure.

Detailed description of the key rating drivers

At the time of last rating on May 3, 2016, the following were the
rating strengths and weakness:

Key Rating Strengths

Strong demand of CNC machines in the local market:  CNC machines
has very high demand in manufacturing companies. VMTPL operates
in Andhra Pradesh where there is presence of power generation and
transmission companies, sugar and rice mills and various other
manufacturing companies where the demand for their products is
high.

Reputed clientele:  The company has a reputed client base
comprising Andhra Pradesh State Electricity Board (APSEB),
Telangana State Electricity Board (TESB), Krishnapatnam Port
Company Limited (KPCL), Andhra Pradesh Power Generation Company
(APGENCO) etc.

Adequate raw material availability:  The major raw material for
VMTPL is iron and steel which are procured from the suppliers
located in Visakhapatnam area. The facilities of the suppliers
are well connected via highways and VMTPL receives timely
delivery of its requirements.

Key Rating Weaknesses

Nascent stage of operation:  VMTPL was incorporated in September
2013, however, started its commercial operation from October
2015. The company is at a very nascent stage of operation, and
till March 2016, the company has manufactured 108 numbers of
machines at capacity utilization of 60% (annualized).

Limited experience of the promoters in manufacturing of special
purpose machines:  The promoters lack relevant experience in the
manufacturing of CNC and Hydraulic machines, although they are
well qualified and have working exposure in other businesses.

Weak order book position and low profitability margins:  The
company has a low order book of INR0.55 crore as on March 31,
2016. Profit margins are also on the lower side.

Highly leveraged capital structure: The capital structure of the
company was leveraged due to recent commencement of operation and
high debt level.

Vantage Machine Tools Private (VMTPL) was promoted by Mr.Potluri
Mohan Murali Krishna, the Managing Director of the company, in
September 2013 for manufacturing of Special Purpose Machines like
CNC (Computer Numerical Control) machines and hydraulic machines.
These machines are widely used in the manufacturing industry. The
manufacturing facility of the company is located at Gollapalli
village of Krishna District in the state of Andhra Pradesh. The
company has been commercially operational since October 2015 and
it has an annual installed capacity of 360 numbers of Special
Purpose Machines.


VENKATESH COTTON: CARE Reaffirms B+ Rating on INR7cr LT Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Venkatesh Cotton Private Limited (VCPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities             7.00       CARE B+; Stable Reaffirmed

Detailed Rationale & Key rating Drivers

The rating continues to remain constrained on account of modest
scale of operations of VCPL and its financial risk profile marked
by thin profitability margins, leveraged capital structure, weak
debt coverage indicators and working capital intensive nature of
operations. The rating, further, continues to remain constrained
on account of seasonality associated with the cotton industry
coupled with operating margins susceptible to cotton price
fluctuation and its presence in the lowest segment of the textile
value chain coupled with highly competitive and fragmented cotton
ginning industry.

The rating, however, continue to favourably takes into account
the long track record of operations with experienced management
in the cotton ginning industry and established relations with
customers and suppliers. The rating further continues to takes
comfort from the location of the plant in the cotton growing
region.
Improvement in the scale of operations while sustaining
profitability margins in light of volatile raw material prices
and efficient management of working capital is key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Weakness

Modest scale of operations and thin profitability margins: During
FY17 (FY refers to 1 April, 2016 to 31st March 2017), Total
Operating Income (TOI) of VCPL improved significantly by 202.18%
to INR46.30 crore as against INR15.32crore in FY16 mainly on
account of increase in sale of cotton seeds and bales.
During FY17, PBILDT margin declined by 381 bps due to relatively
higher procurement cost and remained at 1.71% as against 5.52%
during FY16. Overall, margins remained thin on account of limited
value addition and presence in highly competitive segment of the
cotton industry.

Financial risk profile marked with leveraged capital structure
and moderate liquidity position: The capital structure of the
company stood leveraged with an overall gearing of 2.59 times as
on March 31, 2017, improved marginally from 3.39 times as on
March 31, 2016. The debt service coverage indicators stood weak,
deteriorated from total debt to GCA of 24.38 times as on
March 31, 2016 to 26.76 times as on March 31, 2017.

Liquidity position remained moderate as on March 31, 2017, as
indicated by current ratio of 1.34 times (1.38 times as on
March 31, 2016) and quick ratio of 0.49 times (0.49 times as on
March 31,2016). The operating cycle of the company has improved
significantly from 143 days to 60 days in FY17. Further, overall
operations of the company remained working capital intensive in
nature marked by average working capital limit utilization of 70-
80% during past 12 months period ended October 2017.

Operating margins susceptible to cotton price fluctuation and
seasonality associated with the cotton industry: Operations of
cotton business are seasonal in nature, as sowing season is done
during March to July and harvesting cycle (peak season) is spread
from November to February every year. Prices of raw material i.e.
raw cotton are highly volatile in nature and depend upon factors
like monsoon condition, area under production, yield for the
year, international demand supply scenario, export policy decided
by government and inventory carried forward of the last year.

Key Rating Strengths

Long track record of operations with experienced proprietor in
the cotton ginning industry and established relations with
customers and suppliers: VCPL is incorporated by three persons of
Agrawal family, i.e., Mr Deepak Agrawal, Mr Mayank Agrawal & Mr
Gaurav Agrawal in 2011. The Agrawal group is engaged in the
cotton ginning and pressing business since last twenty five
years. Before commencement of VCPL, all family members of
promoters were engaged in cotton ginning activities.

Strategically located in the cotton growing region: Gujarat,
Maharashtra, Andhra Pradesh, Haryana, Madhya Pradesh and Tamil
Nadu are the major cotton producer's states in India. The plant
of MGPL is located in one of the cotton producing belt of Sendhwa
(Madhya Pradesh) in India. The presence of MGPL in cotton
producing region results in benefit derived from lower logistics
expenditure (both on transportation and storage), easy
availability and procurement of raw materials at effective price.

Venkatesh Cotton Private Limited (VCPL) was incorporated in May
2011 by Mr Deepak Agrawal, Mr Mayank Agrawal & Mr Gaurav Agrawal.
The company is engaged in the business of ginning and pressing as
well as crushing of seeds. The production capacity of the company
is 18,900 MT per annum and there are two production units of
VCPL. One is situated at Manwath, Maharastra (installed capacity
14,400 MT) and other is situated at Sendhwa near Indore, Madhya
Pradesh (installed capacity 4,500 MT). Manwath plant is
exclusively engaged in cotton ginning and pressing and Sendhwa
plant is engaged in both cotton ginning & pressing and oil
extraction. Though the promoters of VCPL are young, their family
is engaged in cotton trading and ginning & pressing business
since 25 years.


VIBFAST PIGMENTS: Ind-Ra Corrects Dec. 19, 2016 Release
-------------------------------------------------------
India Ratings and Research (Ind-Ra) issued a correction to a
ratings release on Vibfast Pigments Private Limited published on
Dec. 19, 2016 to correctly mention the name of the company as
Vibfast Pigments Private Limited instead of Vibfast Pigment
Private Limited. An amended version is as follows:

India Ratings and Research (Ind-Ra) has affirmed Vibfast Pigments
Private Limited's (VPPL) Long-Term Issuer Rating at 'IND BB-'.
The Outlook is Stable. The instrument-wise rating actions are:

-- INR93.5 mil. Fund-based working capital limit affirmed with
    IND BB-/Stable/IND A4+ rating; and

-- INR11 mil. Non-fund-based working capital facilities affirmed
    IND A4+ rating.

KEY RATING DRIVERS

The affirmation reflects VPPL's continued moderate financial and
credit profile. In FY16, revenue was INR385.8 million (FY15:
INR398.2 million), net leverage (Ind-Ra adjusted net
debt/operating EBITDAR) was 7.4x (FY15: 5.5x) and EBITDA interest
cover was 3.5x (3.7x). The fall in credit metrics in FY16 was due
to a marginal decline in the absolute EBITDA to INR15.3 million
(FY15: INR15.7 million) on the marginal revenue decline.
Moreover, the total debt increased to INR113.1 million in FY16
(FY15: INR87.7 million) and therefore interest expenses grew to
INR4.4 million (INR4.3 million). Susceptibility of VPPL's margins
to volatility in raw material prices and foreign exchange
fluctuations continues to constrain the ratings.

The ratings are supported by VPPL's two decades of experience in
manufacturing dyes and pigments and its strong customer
relationships. VPPL's comfortable liquidity position as evident
from the average peak utilisation of 76% of its fund-based limits
during the 12 months ended November 2016 also supports the
ratings.

RATING SENSITIVITIES

Positive: The company's ability to report a substantial increase
in the revenue while maintaining the operating profitability
leading to an improvement in the credit profile could result in a
positive rating action.

Negative: A decline in the operating profitability resulting in
sustained deterioration in the credit profile could lead to a
negative rating action.

COMPANY PROFILE

Incorporated in 1993, VPPL (erstwhile Vibgyor Chemtex)
manufactures, supplies and exports a wide assortment of dyes and
pigments. Headed by Amit Banthia, the company exports pigments to
European and Asian countries.


VIBFAST PIGMENTS: Ind-Ra Migrates BB- Rating to Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated M/s Vibfast
Pigments' (VP) 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:

-- INR98.2 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
Dec. 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 1995, VP is an export-oriented partnership entity
headed by Amit Banthia. The firm manufactures and exports a
variety of dyes and pigments to European and Asian countries.


YOGESH POULTRY: CARE Assigns B+ Rating to INR15cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Yogesh
Poultry and Breeding Farm (YPBF), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Bank
   Facilities            15.00       CARE B+; Stable Assigned

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of YPBF is primarily
constrained by the small scale of operations, low PAT margin,
leveraged capital structure and weak coverage indicators. The
ratings are further constrained by working capital intensive
nature of operations, constitution of the entity being a
partnership firm and inherent risk associated with poultry
industry coupled with high competition from local players. The
rating, however, draw comfort from experienced partners, growing
scale of operations with positive demand outlook of poultry
industry.

Going forward; ability of the firm to profitably increase its
scale of operations while improving the capital structure,
effective working capital management shall be the key rating
sensitivities.

Detailed description of the key rating drivers

Key rating weakness

Small though growing scale of operations: The scale of operations
has remained small marked by total operating income and gross
cash accruals of INR23.51 crore and INR1.05 crore respectively in
FY17 (FY refer to April 1 to March 31; based on provisional
results). The firm's capital base stood relatively small at
INR7.22 crore as on March 31, 2017. The small scale limits the
firm's financial flexibility in times of stress and deprives it
from scale benefits.

Though, the risk is partially mitigated by the fact that the
scale of operation is growing continuously. For the period FY15-
FY17, YPBF's total operating income grew from INR11.64 crore to
INR23.51 crore reflecting a compounded annual growth rate (CAGR)
of around 42% owing to increase in breeding capacity during the
said period which in turn resulted into higher quantity sold.

Low PAT margin, leveraged capital structure and weak coverage
indicators: Profitability margins of the firm have witnessed an
increasing trend during last three years FY15-FY17 owing to
higher revenue from hatchery business which fetches better
profitability. PBILDT margin of the firm stood at 12.00% in FY17.
However, high interest and depreciation cost has restricted the
PAT margin which stood low at 0.09% in FY17.

The capital structure of the firm stood leveraged marked by
overall gearing of above 1.50x on the balance sheet date of last
2 financial years (FY16 & FY17) on account of debt funded capex
done in recent past and high reliance on external borrowings for
working capital borrowings.

Further, owing to high debt levels against the profitability
position; the coverage indicators remained weak marked by
interest coverage and total debt to gross cash accruals of 1.59x
and above 10x respectively for FY17.

Working capital intensive nature of operations: YPBF normally
maintains inventory of birds (egg laying hen) around four months
due to high gestation period. Further, it also maintain inventory
of poultry feeds for around a week. CLF normally gives credit of
15-18 days to its customers. While it procures hens from breeding
farm mainly on cash and advance basis and receives credit of one
week from poultry feed suppliers. Operations of the firm are
working capital intensive in nature and the same is funded
through bank borrowings, which remained fully utilized during the
past 12 months ending July 31, 2017.

Inherent risk associated with poultry industry coupled with high
competition from local players: Poultry industry is driven by
regional demand and supply because of transportation constraints
and perishable nature of the products. Low capital intensity and
low entry barriers facilitate easy entry of players leading to a
large unorganized sector. Poultry industry is also vulnerable to
outbreaks of diseases, which could lead to decline in the sales
volume and selling price.

Diseases can also impact production of healthy chicks. The
inherent industry risk will, however, continue to be a constraint
for players in the poultry industry. The spectrum of the poultry
industry in which the firm operates is highly competitive marked
by the presence of numerous players in India. Given the fact that
the entry barriers to the industry are low, the players in the
industry do not have pricing power and are exposed to competition
induced pressures on profitability.

Key rating strengths

Experienced partners in poultry:  The partner of the firm Mr.
Rajesh Kumar has experience of more than one and half decade in
poultry business through his association with YPBF. Further, Mrs.
Savita Devi has an experience of around a decade in poultry
business through her association with this entity along with her
association with Atul Poultry Farm. Both the partners look after
the overall operations of the firm.

Positive demand outlook of poultry industry:  Poultry products
like eggs have large consumption across the country in the form
of bakery products, cakes, biscuits and different types of food
dishes in home and restaurants. The demand has been driven by the
rapidly changing food habits of the average Indian consumer,
dictated by the lifestyle changes in the urban and semi-urban
regions of the country. The potential in the poultry sector is
increasing due to a combination of factors - growth in per capita
income, growing urban population and falling poultry prices. Also
poultry meat is the fastest growing component of global meat
demand, and India, the world's second largest developing country,
is experiencing rapid growth in its poultry sector.

Haryana-based, Yogesh Poultry and Breeding Farm (YPBF) was
established in February 2014 as a partnership firm by Mr. Rajesh
Kumar and Mrs. Savita Devi, sharing profit and losses equally.
The firm has succeeded an erstwhile proprietorship firm, Yogesh
Poultry Farm established in 1997. YPBF is engaged in poultry
business which includes broiler farming, layer farming, and
broiler hatchery and which involves growing of one day chick into
egg laying birds. Subsequently the eggs laid by them are
artificially incubated into chicks (incubation time is 21 days).
The processing facility of the firm is located at Bhiwani,
Haryana with a breeding capacity of 195,000 chicks in broiler
facility, 108,000 chicks for its layer farming facility, 25,000
parent birds for its hatchery facility. They also operates
feeding mill with the installed capacity of 5 MT per day. YPBF
sells the day old chick mainly through the commission agents
located in Haryana and Punjab. The firm procures day old chicks
from Venco Research and Breeding Farm Pvt. Ltd. and feeding
materials for the chicken, viz, maize, soyabean and defatted rice
bran from traders located in Haryana and nearby regions.



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


INDIKA ENERGY: Fitch Raises Long-Term IDR to B+; Outlook Positive
-----------------------------------------------------------------
Fitch Ratings has upgraded Indonesia-based PT Indika Energy Tbk's
(Indika) Long-Term Foreign- and Local-Currency Issuer Default
Ratings (IDR) to 'B+' from 'B-' and removed the ratings from
Rating Watch Positive. The Outlook is Positive. The agency has
also upgraded Indika's outstanding senior notes due 2023 and
Indika Energy Capital II Pte Ltd's USD265 million senior notes
due 2022 (guaranteed by Indika) to 'B+' from 'B-' with a Recovery
Rating of 'RR4'. Fitch has also assigned Indika Energy Capital
III Pte. Ltd.'s USD575 million senior notes (guaranteed by
Indika) a final rating of 'B+' with a Recovery Rating of RR4'.

The upgrade reflects Fitch's expectations of improvement in
Indika's credit profile following the acquisition of an
additional stake in PT Kideco Jaya Agung (Kideco), Indika's key
coal mining asset. The additional stake in Kideco, in Fitch view,
will increase cash flows available to Indika, based on Fitch's
updated coal price assumptions relative to the additional debt
required for financing the transaction. Fitch believe Indika's
consolidated business profile and credit metrics, given its
enhanced operating and financial control of Kideco, will be
comparable with other low 'BB' rated coal peers. However, the
company's lumpy debt maturities constrain the ratings.

The Positive Outlook reflects Fitch's expectations of the
flexibility available to Indika to address its lumpy debt
maturities. Fitch believe Indika has the flexibility to improve
its capital structure by reducing its debt through the use of its
cash flow or refinancing part of its existing debt in the near to
medium term well before the debt maturities.

The assignment of the final rating to the USD575 million notes
follows a review of the final documentation, which conforms to
the draft documentation previously received. The final rating is
the same as the expected rating assigned on 27 September 2017.

KEY RATING DRIVERS

Additional Stake Adds Value: Fitch expect Indika's acquisition of
the additional 45% stake in Kideco to be value accretive, after
weighing the purchase consideration against the benefits of
additional cash access and greater operational and financial
control. The transaction has an initial payout of around USD517.5
million and a deferred consideration of around USD160 million, on
a present-value basis. The deferred consideration will be paid
upon fulfilment of certain terms and conditions.

Fitch expects Indika's incremental dividends from the additional
stake in Kideco to be sufficient to repay more than half of
additional debt after meeting funding costs on the additional
debt over the next five years. Fitch also believes that Indika
will have greater control to influence the production plans and
timing of dividends.

Credit Metrics to Improve: Fitch expects Indika's credit metrics
to improve in FY18 following the completion of the share purchase
and the revision in Fitch coal price assumptions. Consolidated
EBITDAR fixed-charge cover should be over 4.5x from FY18, while
consolidated net leverage (net adjusted debt/ EBITDAR) is likely
to decline to around 1.6x in FY18 and remain around 1.2x-1.7x
over the medium term. Fitch also expect Indika's standalone
(holding company on a standalone basis) EBITDA interest cover to
improve and range between 2x-4x over the next five years, with
average interest cover of over 2.5x versus Fitch previous
expectations of around 1.3x.

Lumpy Debt Maturities Constrain Ratings: Indika has USD265
million in notes maturing in 2022, USD500 million in notes due
2023 and USD575 million in notes due 2024. Most coal-mining and
coal-related peers have more staggered debt maturities. Fitch
believes Indika has some flexibility in managing its debt
maturity profile from its ability to reduce debt using cash flows
or undertake pro-active liability management to address its
capital structure in the near to medium term well before the debt
matures, although risks remain against a backdrop of rising
global interest rates and coal-price volatility.

Consolidated Approach: Fitch expects to take a consolidated view
of Indika that includes Kideco, with Kideco becoming a majority-
owned subsidiary of Indika, in addition to analysing Indika's
holding company cash flows on a standalone basis. The
consolidated view reflects Indika's greater control over Kideco's
operations and financial strategy. Fitch believes Indika's cash
flows and credit metrics will benefit from the favourable
incremental dividends relative to the additional debt.

Cyclical Coal-Industry Exposure: Indika is vulnerable to the
commodity cycle as its earnings and cash flow are linked to the
thermal coal industry. Fitch has increased the 2018 price for
thermal coal - Newcastle 6,000 kcal - to USD72/metric ton (mt)
(from USD65/mt), and assumed a price of USD67/mt thereafter (from
USD65/mt). Thermal coal prices have come off their late-2016
peak, reflecting China's coal-price management policies.

Fitch expects some production uptick in response to higher
prices, which should lead to further price moderation over the
medium term and is reflected in Fitch price assumptions.
Furthermore, Fitch expect Asian thermal coal prices to be highly
susceptible to import demand in the region, particularly Chinese
demand and policies relating to the coal sector.

Kideco's Low-Cost Operations: Kideco benefits from the low-cost
structure of its key mines (first and second quartile) and high
production flexibility and capacity, which require little capex.
It also benefits from the large reserves (proven reserves of
around 422 million tonnes) and relatively favourable reserve life
of its mines. The absence of any debt also supports its
profitability and pre-dividend free cash generation. Kideco
trimmed costs during 2016, but Fitch expect rising oil prices to
drive up costs marginally over the medium term. Notwithstanding
this, Kideco retains its ability to generate stronger cash flow
based on Fitch coal-price assumptions.

Subsidiaries' Operations to Improve Gradually: Fitch expects
operations of 70%-owned PT Petrosea Tbk (a mining contractor) and
51%-owned PT Mitrabahtera Segara Sejati Tbk (MBSS, coal barging
and handling) to improve gradually in 2017 and 2018, supported by
higher commodity prices. Fitch expect Petrosea and MBSS to turn
around and generate net profit from 2017 and 2018, respectively,
compared with their net losses in 2015 and 2016.

Fitch believes these subsidiaries will be able to fund their own
investment needs and will not require financial support from
Indika. Fitch expects the order-book and revenue of fully owned
Tripatra (an engineering, procurement and construction company)
to benefit from a boost to infrastructure investments in
Indonesia - including the oil and gas sector - over the medium
term. Tripatra's revenue increased by 25% yoy during 1H17 to
USD149 million.

DERIVATION SUMMARY

Indika's ratings reflect Fitch's expectation of improvement in
Indika's profile following the completion of the agreement to
purchase additional shares in Kideco, its key coal mining asset.
Fitch expects Indika to benefit from incremental cash flows and
greater operational control of Kideco when weighed against the
purchase consideration. Fitch expect Indika's business profile to
be comparable with PT Bukit Makmur Mandiri Utama (BUMA, BB-
/Stable) and PT ABM Investama Tbk (BB-/ Stable) given the low-
cost position of Kideco, one of the top three coal producers in
Indonesia, and the partially integrated operations of coal mine
contracting and transportation though its other subsidiaries.
However, Fitch assess Indika's financial profile to be weaker due
to its large lumpy debt maturities, which can expose the company
to refinancing risks over the medium term, resulting in its
rating being one notch lower.

Geo Energy Resources Limited's (B+/Stable) business profile is
weaker given its small scale of operations and the limited
reserves of its mines compared with Indika. However, Geo Energy
has a stronger financial profile compared with Indika after the
latter's share purchase transaction, resulting in their similar
ratings.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

- Coal prices in line with Fitch's mid-cycle commodity price
   assumptions, adjusted for difference in calorific value
   (average Newcastle 6,000 kcal free-on-board: USD72/mt in 2018
   and USD67/mt thereafter).

- Acquisition of 45% additional equity stake in Kideco for
around
   USD677.5 million in 2017, with USD517.5 million payable in
   2017.

- Kideco coal volumes of around 32 mt in 2017, 34 mt in 2018 and
   around 36 mt by 2019. Capex of around USD3 million in 2017 and
   around USD10 million in 2018 and 2019.

- Dividend payout ratio for Kideco remaining high at around 95%-
   98%.

- No dividend from MBSS or Petrosea in 2017, with dividends of
   around USD1 million from Petrosea in 2018. Dividends from
   associate PT Cirebon Electric Power of about USD6 million per
   year over the medium term.

- Low capex at Tripatra and MBSS, and higher capex at Petrosea,
   to support new mining contracts, resulting in capex of around
   USD115 million in 2017 and in the range of USD75 million-100
   million a year thereafter.

Fitch's key assumptions for bespoke recovery analysis include:

- The recovery analysis assumes that Indika and its subsidiaries
   would be considered a 'going concern' in bankruptcy, and that
   the company would be reorganised rather than liquidated. Fitch
   have assumed a 10% administrative claim.

- Kideco's going-concern EBITDA is based on last six months June
   2017 EBITDA, and includes pro-forma adjustments for the EBITDA
   contributions from increasing coal volumes and Fitch's coal
   price assumptions over the next three years.

- The going-concern EBITDA estimate reflects Fitch's view of a
   sustainable, post-reorganisation EBITDA level upon which Fitch
   base the valuation of the company. The going-concern EBITDA is
   30% below the mid-cycle EBITDA based on the long-term average
   thermal coal price assumptions used by Fitch. The post-
   reorganisation EBITDA assumes some post-default operating
   improvement, and is at a level that may violate the intended
   covenants for its US dollar notes.

- The going-concern EBITDA for Indika's subsidiaries, Petrosea
   and MBSS, is based on last six months June 2017 EBITDA,
   adjusted for Fitch expectations of an increase in revenue, if
   any, over the next three years given new contracts or orders.

- Fitch generally assumes fully drawn working capital of about
   USD50 million in its recovery analysis, since working-capital
   debt is tapped as companies are under distress.

- An enterprise value (EV) multiple of 3.5x is used to calculate
   a post-reorganisation valuation for Kideco based on the share-
   purchase agreement. The historical EV multiple for companies
   in the natural resources sector ranged from 5.8x-11x, with a
   median of 8.7x. However, Fitch has used a conservative
   multiple, given the transaction. An EV multiple of 5x is used
   to calculate a post-reorganisation valuation for Indika's
   other investments.

- The property owned by Indika is assumed to be sold at a 50%
   discount to the market value of around USD100 million, which
   is based on the company's estimate.

- The waterfall results in a recovery of around 70% for the note
   holders of the USD575 million issuance. However, Fitch
   applies a soft cap of 'RR4' for the Recovery Ratings of
   Indika, given that most of its businesses are located in
   Indonesia, a Group D country. Fitch consequently rates the
   senior unsecured US dollar notes at 'B+'.

RATING SENSITIVITIES

Developments that May, Individually or Collectively, Lead to
Positive Rating Action

- Fitch will upgrade Indika's rating if it successfully
   addresses its lumpy debt maturities while maintaining net
   leverage (net adjusted debt/ EBITDAR) below 2.5x and EBITDA
   fixed charge cover above 3.5x.

Developments that May, Individually or Collectively, Lead to
Negative Rating Action

- Failure to meet the above positive rating guideline could lead
   to the revision of its Outlook back to Stable.

LIQUIDITY

Comfortable Near-Term Liquidity: Indika's near- to medium-term
liquidity is comfortable in the absence of any significant debt
maturities. Indika has a minimal debt amortisation schedule until
2021. Significant liquidity needs for debt repayment will only
happen from 2022. Fitch expects Indika's cash balances to be
sufficient to repay its 2022 debt maturities based on Fitch
current coal price assumptions.


INDIKA ENERGY: Moody's Hikes CFR to Ba3; Outlook Stable
-------------------------------------------------------
Moody's Investors Service has upgraded the corporate family
rating (CFR) of Indika Energy Tbk (P.T.) (Indika) to Ba3 from B2
following the completion of its acquisition of an additional 45%
stake in Kideco Jaya Agung (P.T.), Indonesia's third largest coal
producer.

At the same time, Moody's has also upgraded the ratings on the
$500 million backed senior secured notes due 2023 issued by Indo
Energy Finance II B.V., the $265 million backed senior secured
notes due 2022 issued by Indika Energy Capital II Pte. Ltd, and
the $575 million backed senior secured notes due 2024 issued by
Indika Energy Capital III Pte. Ltd. to Ba3 from B2. All notes are
unconditionally and irrevocably guaranteed by Indika and rank
pari passu.

The outlook on all ratings is stable.

The rating action concludes Moody's review for upgrade initiated
on September 25, 2017.

RATINGS RATIONALE

On December 8, 2017, Indika announced it had completed the Kideco
acquisition after receiving all requisite approvals, increasing
its shareholding in the coal producer to 91% from 46%. It had
also successfully raised $575 million of new notes at 5.875% due
November 2024 to fund the acquisition.

The total purchase consideration, comprising an upfront payment
of $517.5 million and contingent liability of $160 million, and
the coupon on the new $575 million notes are in line with Moody's
expectations.

"The upgrade of Indika's ratings to Ba3 reflects the improvement
in the company's operating profile as it now controls the steady
cash flow generation at Kideco, Indonesia's third largest coal
mining asset. It also incorporates the company's stronger credit
metrics in 2018-19 with consolidated leverage of around 3.4x-
3.6x," says Rachel Chua, a Moody's Assistant Vice President and
Analyst.

Kideco has a long reserve life of over 13 years, based on its
projected 2017 production volume of 32 million tons. In the first
six months of 2017, the mine generated $200 million of operating
cash flow. On a pro-forma basis, Moody's expects Kideco will
account for over 70% of Indika's EBITDA.

Overall, Indika's Ba3 ratings reflect its long dated debt
maturity profile with no material maturity until 2022 and its
good liquidity position. The ratings also take into consideration
Indika's ongoing commitment to conservative financial policies
which balances its risk profile during periods of volatility in
thermal coal prices.

"However, there remains a high degree of event risk, given the
expiry of Kideco's coal contract of work (CCoW) in 2023.
Negotiations for the extension of the CCoW can only commence in
2021 and while it is Moody's current view that an extension on
similar terms will be forthcoming, Moody's remain cognizant of
the regulatory risk and the impact on Indika's credit profile and
ratings should that renewal not materialize in a timely fashion,"
adds Chua, who is also Moody's lead analyst for Indika.

The ratings outlook is stable, reflecting Moody's expectations
that operations at Kideco will continue without disruptions
through the management and ownership transition and that Indika
will continue to execute its business strategy as planned over
the next 12-18 months.

A further near-term upgrade of the ratings is unlikely.
Nevertheless, upward momentum in the ratings could develop over
time if Indika is successful in extending the Kideco CCoW beyond
its 2024 bond maturity with no material changes to existing terms
while demonstrating a sustained improvement in its financial
profile. Specific indicators Moody's would consider include
adjusted debt/ EBITDA below 2.5x - 3.0x and adjusted EBIT/
interest above 3.0x - 3.5x for an extended period.

Downward ratings pressure could arise if (1) Indika's cash flow
generation is weakened by a sustained decline in coal prices; (2)
it fails to extend the Kideco CCoW at substantially similar
terms; or (3) it engages in aggressive shareholder distributions
or capital investments demonstrating a departure from
management's track record of liquidity preservation.Specific
indicators Moody's would consider include adjusted debt/ EBITDA
above 3.5x - 4.0x or adjusted EBIT/ Interest below 2.0x for an
extended period.

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

Indika Energy Tbk (P.T.) is an Indonesian integrated energy group
listed on Indonesia's Stock Exchange. As of December 8, 2017, its
principal investment is a 91% stake in Kideco Jaya Agung (P.T.),
Indonesia's third-largest domestic coal producer and one of the
world's lowest-cost producers and exporters of coal.


LIPPO KARAWACI: S&P Lowers CCR to 'B' on Thinning Cash Flows
------------------------------------------------------------
S&P Global Ratings lowered its long-term corporate credit rating
on Indonesia-based property developer PT Lippo Karawaci Tbk.
(Lippo) to 'B' from 'B+'. The outlook is stable. S&P said, "We
also lowered our issue rating on Lippo's outstanding guaranteed
senior unsecured notes to 'B' from 'B+'. These notes were issued
by Theta Capital Pte Ltd. We are removing all the ratings from
CreditWatch, where they were placed with negative implications on
Aug. 18, 2017."

The downgrade reflects Lippo's eroded interest servicing
capacity, financial flexibility, and liquidity amid aggressive
growth aspirations and softer operating conditions.

The subdued property market in Indonesia in the past three years
has affected Lippo's historically positive revenue and profit
growth trajectory. The company's core residential property sales
peaked in 2014, when it recognized about Indonesian rupiah (IDR)
3.3 trillion in revenues from houses, apartments, and land lot
sales (excluding mall sales). Revenues then declined to about
IDR2.9 trillion in 2016 and about IDR1.3 trillion for the six
months ended June 30, 2017. Lippo has been able to sell assets,
mostly retail malls and hospitals, to its listed REITs in
Singapore to mitigate the income shortfall from lower sales of
profitable developments. But the ability of these vehicles to
absorb more assets has started to decline following the
regulatory leverage caps on Singapore-listed REITs enacted mid-
2015.

S&P said, "In our view, Lippo's strategy to mitigate this
slowdown by launching Meikarta, a massive new affordable
residential development, in May 2017 through 54%-owned subsidiary
PT Lippo Cikarang Tbk. (LPCK), will, at first, weaken
consolidated margins. Sales have been robust to date, and we
expect overall sales to top IDR7.5 trillion for 2017. But given
that the current Meikarta units for sale are modestly priced, at
about IDR300 million per unit, consolidated EBITDA margins will
be substantially lower than on Lippo's higher-priced products. We
estimate that the gross profit margin for Meikarta will average
15%-17% at least through 2019, versus the 45%-65% on other
projects. In addition, we believe Meikarta is only likely to
become self-funding after another 24 months or so, given the
working capital required for construction. In the meantime, LPCK
will raise about IDR800 billion via a rights issue, mostly to
fund construction.

"We anticipate Lippo's consolidated reported EBITDA margins to
decline to 10%-16% in 2018 and 2019, from more than 20%
historically. We project Lippo's consolidated EBITDA interest
coverage to stay slightly below 1.5x for the next 12 months at
least, amid broadly stable consolidated debt levels. We adjust
our debt, EBITDA, and interest calculations to factor in the
company's sizable operating leases, especially in its healthcare
operations."

Hospital operator Siloam, Lippo's other major operating
subsidiary, also remains in aggressive expansion mode. The
company completed an IDR3.1 trillion rights issue at the end of
October 2017, the proceeds of which it will use for expansion. As
part of this rights issue, Lippo diluted its stake in Siloam to
51.05%, from close to 60% before the transaction.

S&P said, "The stake dilution reduces Lippo's financial
flexibility and creates higher subordination risk to interest
servicing on the notes, in our view. We believe it deprives Lippo
of a potential source of liquidity at the holding company level.
That's because we do not anticipate that the company will further
reduce its stakes in LPCK, Siloam, and the listed REITs, but
likely seek to retain control. LPCK's and Siloam's expansion
plans also limit their ability to upstream cash to the parent
company, where a large proportion of debt and debt servicing
requirement reside. There will be substantial cash leakage if
subsidiaries upstream funds via dividends, given the minority
interests in both entities. At the same time, all of the group's
U.S.-dollar-denominated debt sits at the group's holding company,
which we estimate has approximately IDR1.1 trillion of annual
interest servicing requirement, including hedging costs.

"In our view, Lippo has become increasingly dependent on the sale
of sizable assets at the holding company, including malls or
hospitals, to maintain an adequate cash buffer for interest
servicing at that level. The company expects to sell its Puri
Mall in 2018 to its Singapore-listed REIT Lippo Malls Indonesia
Retail Trust (LMIRT). However, debt headroom at LMIRT has
substantially declined as most of the assets it acquired from
Lippo were funded with debt. The potential value of the mall,
which could exceed IDR6 trillion, is sizable, even if Lippo sells
it in tranches, given the market capitalization of LMIRT is
equivalent to about IDR12 trillion. Previous asset sales from
Lippo to the REITs have experienced delays, and we believe this
could happen again, given the size of the asset, the need to
arrange funding, and market conditions. As a result, we do not
expect this disposal to be completed in 2018. With this delay,
Lippo's EBITDA, cash flows, credit metrics, and liquidity are
likely to hit a trough in 2018. Liquidity could improve beyond
that if the sales materialize, in 2019 at the earliest.

"A successful sale of Puri Mall would bolster Lippo's liquidity,
in our view, at least temporarily. Nevertheless, it may not be
sufficient to lead to an upgrade. That's because Lippo has a
history of aggressively reinvesting proceeds from asset sales in
its operations to expand rather than setting funds aside for debt
repayment. Aggressive reinvestment in operations rather than debt
repayment helps the company consolidate its competitive
advantage. But it has the risk of gradually depleting its asset
base, and making future debt repayment contingent upon a
successful development, completion, and ramp-up of the remaining
assets.

"The stable outlook reflects our view that Lippo's cash flow
adequacy and interest servicing capacity will stabilize at lower
levels over the next 12 months. We expect adjusted EBITDA
interest coverage to remain slightly below 1.5x. The outlook also
reflects our expectation that Lippo will take more decisive
actions to maintain sufficient cash balances at the holding
company level by disposing land and assets or reducing capital
expenditure if necessary.

"We could lower the rating if the liquidity at the holding
company level declines with no prospect of recovery. This could
materialize if Lippo continues to deplete its cash balances
because of aggressive investments in working capital or
expansion, or it further delays monetizing its remaining asset
base, leading to a material shortfall between liquidity available
at the holding company and interest servicing requirements. We
could also lower the rating in the event of protracted weakness
in the company's consolidated leverage and interest servicing
capacity if delays in asset disposals persist. An EBITDA interest
coverage approaching 1.0x. without prospect for recovery is a
clear indication of that weakness.

"We could raise the rating if Lippo materially improves its
consolidated leverage and interest coverage. A consolidated
EBITDA interest coverage staying above 2.5x sustainably could be
an upgrade trigger. A higher rating would be contingent on Lippo
maintaining an adequate and sustainable liquidity buffer at the
holding company and a longer record of financial prudence."


TUNAS BARU: Fitch Alters Outlook to Negative & Affirms BB- IDR
--------------------------------------------------------------
Fitch Ratings has revised Indonesia-based PT Tunas Baru Lampung
Tbk's (TBLA) Outlook to Negative from Stable. At the same time
the agency has affirmed the palm oil and sugar producer's Long-
Term Issuer Default Rating (IDR) at 'BB-'.

Fitch Rating Indonesia has also published TBLA's National Long-
Term Rating of 'A+(idn)' and the 'A+(idn)' rating on TBLA's
proposed Indonesian rupiah senior unsecured medium-term notes.
The Outlook on the National Long-Term Rating is Negative. The
proceeds from the note issue are intended to be used to refinance
the company's short-term loans.

TBLA's net debt to annualised EBITDA leverage in 9M17 was
relatively high at 2.9x, with negative free cash flow as capex
was above Fitch's expectation. Fitch forecast TBLA's leverage to
decline to a level consistent with its rating by 2018. However,
higher-than-expected capex and volatile working capital movements
could delay deleveraging and indicate weak control over
operations. The Negative Outlook reflects these risks to TBLA's
credit profile and rating.

TBLA's rating is driven by its position as one of the few players
in Indonesia whose integrated sugar business operations spans the
entire sugar value chain. The regulatory environment for sugar in
Indonesia is beneficial to TBLA given its efficient operations,
and increased sugar sales have boosted TBLA's EBITDA and provided
benefits of diversification from its small, albeit diversified,
palm oil operations. However, domestic sugar prices have fallen
in 2017 and Fitch think the government will take steps to prevent
a material increase.

'A' National Ratings denote expectations of low default risk
relative to other issuers or obligations in the same country.
However, changes in circumstances or economic conditions may
affect the capacity for timely repayment to a greater degree than
is the case for financial commitments denoted by a higher rated
category.

KEY RATING DRIVERS

Sugar Output Grows; Prices Lower: TBLA started sugarcane
plantations in 2012 and its refinery began operations in 2013.
Its sugar mill near its plantations in Lampung in southern
Sumatra started operations in April 2017. TBLA's sugar output
increased by around 30% qoq each in 2Q17 and 3Q17, indicating a
quick ramp up of operations at the mill. However, TBLA's average
price realisation fell 8% in 9M17 compared with 2016, due to
lower international sugar prices and higher supply in Indonesia
following an increase in government import quotas. While
profitability for TBLA's refinery, which processes imported raw
sugar, is unlikely to be affected, lower sugar prices will reduce
margins for its sugar mill.

Significant State Role in Pricing: Indonesia's domestic mills
produce less than half of the country's sugar demand. The
government regulates the sugar industry in Indonesia, and sets a
floor for sugar prices to encourage output. Domestic sugar prices
were much higher than the floor price in 2016 due to the supply
deficit, with TBLA's average realisation 18% higher than the
floor price. Indonesia kept the floor price unchanged in 2017,
according to TBLA, after several years of regular increases.

The government in April 2017 also set a price ceiling on retail
sugar sales, which make up about 50% of the total that includes
sales to industrial users. Fitch think the government will
continue to monitor domestic prices and take steps to prevent a
rapid increase.

Small, Well-Diversified Palm Operations: TBLA owned around 41,500
hectares of planted oil palm acreage at end-September 2017, and
is one of the smallest palm oil companies in Fitch's rating
universe in terms of planted area. Around 80% of its acreage is
in southern Sumatra (Lampung and Palembang), with the rest in
Kalimantan (Pontianak). Its fresh fruit bunch (FFB) yield in 2016
of 12 tonnes per hectare of mature acreage was below the industry
average, but yields improved in 2017 with better weather
conditions. Over the longer term, yield should improve further
due to TBLA's relatively young plantation profile; around 50% of
planted acreage comprised mature and young trees (0-8 years old).

Despite TBLA's small scale, its operations are well-diversified
in terms of products and distribution channels. Over 50% of its
palm oil product sales are downstream products, mainly cooking
oil. The diversification provides TBLA flexibility to produce the
more profitable products, and also lowers the earnings
volatility.

Risks to Leverage Improvement: Fitch forecast TBLA's net adjusted
debt to EBITDAR leverage to fall to 3.0x by end-2017 and decline
to 2.5x by 2018, from 4.0x in 2016. Higher EBITDA, supported by
increasing sugar sales volumes and healthy crude palm oil prices,
and a reduction in capex after completion of spending on the
sugar mill should help TBLA deleverage in 2018. However, TBLA's
capex in 9M17 was significantly higher than Fitch expectation. In
addition, its working capital flows have been volatile, with a
large outflow in 2016 to build up raw sugar inventories following
the grant of import quotas. If TBLA's cash flows remain volatile,
its financial metrics and credit profile would be negatively
affected.

Limited Subordination of Noteholders: TBLA, on a standalone
basis, contributed around 50% of consolidated EBITDA in 9M17 and
held around 75% of total debt. Fitch do not think holders of the
proposed notes will face significant structural subordination as
all of TBLA's key subsidiaries are almost fully owned and there
are no restrictions on cash movement within the group. Of TBLA's
consolidated debt at end-9M17, 77% was secured, implying a
secured debt/annualised EBITDA ratio of 2.2x. However, Fitch
estimate the ratio will reduce to below 2.0x by 2018, aided by
refinancing using proceeds of the proposed unsecured notes. Fitch
therefore rate them at the same level as the IDR.

DERIVATION SUMMARY

A close peer for TBLA is PT Japfa Comfeed Indonesia Tbk (Japfa,
BB-/AA-(idn)/Stable), whose rating is supported by the earnings
stability provided by its animal-feed segment, which accounts for
around 35% of overall revenue. TBLA and Japfa are comparable as
the sugar segment lends stability to TBLA and significantly
offsets the volatility of its palm oil segment. Fitch expect the
sugar segment to contribute more than 35% of TBLA's revenue from
2017. However, Japfa's leverage is lower and the Negative Outlook
for TBLA reflects the risk of negative rating action if it is
unable to deleverage to a similar level.

TBLA's ratings can also be compared with that of PT Sawit
Sumbermas Sarana Tbk (SSMS, B+/A(idn)/Positive). SSMS has a
larger plantation area and superior palm oil operating
performance compared with TBLA. However, TBLA's sugar business
lends stability and it has more diversified products and
distribution channels than SSMS. Fitch also forecast lower
leverage for TBLA in 2017-18, although SSMS is expected to
deleverage faster thereafter. These factors justify TBLA being
rated one notch higher, but with a Negative Outlook.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

- Malaysian benchmark crude palm oil price of USD675/tonne over
   the long term

- Revenue growth of around 30% in 2017 and around 15% in 2018

- EBITDA margin to improve to 24% on average in 2017-18, from
   22% in 2016

- Capex of IDR1.5 trillion in 2017 and around IDR800 billion
   annually thereafter

RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Negative Rating Action Include:

- Inability to reduce leverage (net adjusted debt/EBITDAR) to
   2.5x or lower by 2018. Fitch could take negative rating action
   if TBLA is not on track to achieve the leverage sensitivity by
   2018, potentially due to material deviation from Fitch
   assumptions.

- Inability to generate neutral to positive free cash flows by
   2018

- A material weakening of regulatory protection for the sugar
   industry in Indonesia that results in weaker EBITDA margin

TBLA's Outlook may be revised to Stable if it does not meet the
above sensitivities for a negative rating action.

LIQUIDITY

Adequate Liquidity: TBLA reported a cash balance of IDR107
billion and had undrawn credit facilities of around IDR2.1
trillion at 30 September 2017. By comparison, there were short-
term bank loans of IDR1.6 trillion in the total and current
portion of long-term debt of IDR0.7 trillion. The majority of
TBLA's short-term bank loans are for its working capital needs
and are likely to be rolled over. The company also has robust
banking relationships. Therefore, liquidity risk is limited, in
Fitch view.



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


TOSHIBA CORP: Moody's Affirms Caa1 CFR & Alters Outlook to Stable
-----------------------------------------------------------------
Moody's Japan K.K. has affirmed Toshiba Corporation's Caa1
corporate family rating and senior unsecured debt ratings, and
its Ca subordinated debt rating.

Moody's has also changed the ratings outlook to stable from
negative.

At the same time, Moody's has affirmed Toshiba's commercial paper
rating of Not Prime.

RATINGS RATIONALE

"Toshiba's equity issuance enables the company to pay off its
obligations which relate to its US nuclear projects and to
significantly improve its negative net worth position," says
Masako Kuwahara, a Moody's Vice President and Senior Analyst.

Moody's revised the outlook to stable following Toshiba's
issuance of approximately JPY600 billion of new shares through a
private placement and its receipt of the same amount in cash.

The company will use these proceeds to pay off its parental
guarantee of USD5.2 billion -- expected by the end of this year -
- and which relate to construction projects in the US for nuclear
power.

However, Moody's notes that Toshiba's credit quality and
liquidity remain constrained.

Moody's believes that a successful sale of Toshiba's wholly owned
memory-chip subsidiary Toshiba Memory Corporation (TMC) is still
necessary to return operations to normal at the company.

Moody's notes that the sale faces execution risk arising from
legal procedures in key jurisdictions relating to competition
laws.

A significant delay in completing the sale of TMC would strain
Toshiba's liquidity and viability. In order for Toshiba to
maintain its strong position in the highly competitive NAND flash
memory market, the company will need to make ongoing capital
expenditures that will likely exceed its internal cash flow,
making it heavily reliant on the continued support of its banks.

Even if Toshiba is successful in selling TMC, uncertainty remains
over whether its other businesses can sustain sufficient earnings
and cash flow. During the first six months of FYE3/2018, the
memory business accounted for 88% of consolidated operating
profit.

The sale of TMC and the expected material loss of associated
earnings will leave Toshiba much diminished in scale and it will
be left with businesses that are relatively mature, such as
infrastructure, energy, retail & printing and HDD.

Upward rating pressure could arise if Toshiba successfully
completes the sale of TMC, strengthens its capital further, and
stabilizes its earnings and cash flow.

On the other hand, downward rating pressure could arise if the
sale of its memory business is not successful and/or there is
further evidence of a challenged liquidity position or a non-
curable breach in its bank debt covenants.

In addition, the rating could be pressured if Toshiba's revised
corporate governance structure fails to function properly,
leading to a further deterioration in its financial metrics.
Evidence of further material accounting irregularities would also
pressure the rating.

The principal methodology used in these ratings was Global
Manufacturing Companies (Japanese) published in August 2017.

Toshiba Corporation, headquartered in Tokyo, is one of the
largest diversified electronics companies in Japan.



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


MONGOLIAN MINING: S&P Raises CCR to 'B-' Post Debt Restructuring
----------------------------------------------------------------
S&P Global Ratings raised its long-term corporate credit rating
on Mongolian Mining Corp. to 'B-' from 'D'. The outlook is
stable.

The upgrade reflects MMC's improved capital structure and
lengthened maturity profile, after its distressed debt
restructuring, which involved a "haircut" of about 20% of its
debts (bank facility, senior notes, and promissory notes). The
rating action comes after the completion of our review of MMC's
operations and new capital structure.

Under the restructured terms, MMC's interest payments are more
flexible, whereby amounts will be accrued as payment-in-kind
(PIK) when the coal price is low. Debt amortization starts with a
small amount in the fourth quarter of 2018 only. The next big
debt maturity will not be until September 2022. The company's
total debt amounts to about US$638 million post restructuring.
This consists of a new senior secured facility and new senior
secured notes issued by its wholly owned subsidiary, Energy
Resources LLC, and new subordinated perpetual securities issued
by MMC. S&P considers the perpetual securities to have minimal
equity content because there is material step-up in the sixth
year that makes the effective maturity less than 10 years.

S&P said, "Despite the improved capital structure, MMC remains
highly sensitive to volatile coking coal prices, in our view. By
our estimate, if the average selling price (ASP) per ton of its
hard coking coal (HCC) falls by 35% to US$85 from our base case
over the next 12 months, EBITDA would decline by 55% to about
US$120 million. The company's EBITDA margin would decline to 24%-
26% (from 38%-40%). Even if absolute debt remains the same, its
debt-to-EBITDA ratio could rapidly spike above 5x from our base
case of 2.3x-2.5x.

"Under such a moderately stressed pricing environment, we view
the fluctuation of operating results as highly volatile. This is
despite our assumption that there is no production cut and MMC
could lower costs by 20%-25% on mining, transportation,
royalties, and, less significantly, on distribution as well as
reduction on stripping activities. Accordingly, we continue to
view the company's financial risk profile as highly leveraged.

"We consider MMC's liquidity buffer to be dependent on benign
industry conditions so that the company need not borrow
externally to meet its liquidity needs. MMC lacks credible
banking relationships and capital market access to meet its cash
flow shortfall. By our estimate, if the ASP of its HCC approaches
US$80, not far from our assumed downside situation of US$85
(equivalent to benchmark HCC price FOB Australia of US$125-US$135
per ton by our estimate), MMC would start running short of
internal liquidity and need to borrow externally to stay viable.

"In the downside scenario, we have assumed that the operating
partners, especially the mining contractors, would insist on
receiving the scheduled repayment of overdue payables, which
amounts to about US$100 million over 2017-2018. It is uncertain
whether the partners are willing to keep supporting MMC in
another industry downturn despite their established relationships
with the company over the last trough cycle."

MMC's business position remains vulnerable, in our view,
unchanged from pre-debt restructuring. MMC operates a single mine
in a land-locked country. Its other mine remains suspended. MMC
faces high transportation costs and frequent bottlenecks, given
the lack of sufficient cross-border infrastructure. The company
has a high customer concentration; four steel mill customers
account for half of its revenues.

S&P said, "Despite its vulnerable business position, we believe
MMC's capital structure is sustainable, given that we expect the
company to generate positive free operating cash flow of more
than US$100 million over the next 12 months. Our base case
considers benign industry conditions, where demand from China
remains upbeat and pricing conditions favorable. We assume the
company's ASP of HCC would be about US$130 (equivalent to
benchmark HCC price of US$160-US$180 by our estimate) and EBITDA
of about US$270 million, both at peak levels in 2018. Debt-to-
EBITDA will also appear favorable below 3x. Under this base case,
MMC has sufficient downside pricing headroom (about US$50) to
meet its liquidity needs solely with internal accruals.

"We expect the company's debt to reduce on amortization of its
senior secured facility starting in the fourth quarter of 2018.
Our base case assumes that MMC would maximize the production
potential of its Ukhaa Khudag (UHG) mine under a favorable
pricing environment, with HCC volume sales at a record high of 5
million tons in 2018. This represents a material change from
2014-2015 when coal prices were low and the HCC production was
minimal."

MMC's new debt terms give the company more breathing space amid a
potential industry downturn. The PIK feature for interest
payments associated with the senior secured facility and senior
secured notes would help MMC lower cash needs amid a downturn.
Specifically, when benchmark prices (Australian coking coal FOB)
decline below US$125, up to 100% of interest payment will accrue
to principal. This alleviates default risks related to otherwise
rigid fixed terms. In addition, MMC has the option to defer cash
distribution on perpetual notes with no limitation. S&P has
assumed no cash distribution.

S&P said, "Our rating on MMC is capped by our sovereign credit
rating on Mongolia (B-/Stable/B), a country dependent on
resources exports. This is because under a sovereign distress
scenario where commodity prices decline significantly, we expect
MMC's liquidity source will be materially lower than liquidity
needs.

"The stable outlook reflects our view that MMC will generate
positive free operating cash flows and the company can meet all
its liquidity needs with sufficient buffer over the next 12
months. We also expect the company's HCC production to be stable
(4 million-6 million tons) and HCC selling prices to be favorable
at above US$90/ton (equivalent to benchmark HCC price FOB
Australia of US$140-US$150 per ton by our estimate).

"We may lower the rating on MMC if the company's free operating
cash flows are negative, such that it requires external funding
or another distressed exchange becomes likely. This scenario
could occur if MMC's HCC realized selling price approaches
US$80/ton. We could also downgrade MMC if we lower the sovereign
rating on Mongolia.

"Given the PIK flexibility for interest payment, we believe a
default is less likely to come from a missed interest payment.
Instead, it's most likely to come from an unsustainable capital
structure due to materially weakening coal prices. If this PIK
flexibility disappears in future refinancing, it may cause
negative pressure on the rating."

The likelihood of an upgrade is limited over the next 12 months.
However, S&P could upgrade MMC if it raises the sovereign rating
on Mongolia and MMC strengthens its liquidity and capital
structure. This would entail a credible record in refinancing,
building cash balance, or arranging committed credit lines enough
to weather a less-conducive industry environment. It would also
entail a stronger balance sheet in MMC with absolute debt
reduction such that its debt-to-EBITDA ratio could remain below
3x sustainably, assuming moderately stressed coal prices.



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


STATS CHIPPAC: S&P Alters Outlook to Stable & Affirms 'B+' CCR
--------------------------------------------------------------
S&P Global Ratings revised its outlook on STATS ChipPAC Pte. Ltd.
(STATS) to stable from negative. At the same time, S&P affirmed
the corporate credit rating on the company and issue level rating
on the company's outstanding notes at 'B+'. STATS is a Singapore-
based outsourced semiconductor assembly and testing (OSAT)
service provider.

S&P said, "We revised the outlook on STATS because the parent
company Jiangsu Changjiang Electronics Technology Co. Ltd. (JCET)
is executing on capital injections to STATS amid stable operating
conditions. We now view regulatory and event risks as having
passed."

STATS received US$104.2 million from JCET and converted a US$30
million shareholder loan to equity in the third quarter of 2017.
The company received another US$40.5 million injection on Oct.
20, 2017, and expects a further US$25.3 million in the fourth
quarter of 2017 or first quarter of 2018. S&P had previously
expected transfers totaling US$200 million; however, these were
delayed for over a year.

The company's cash balances, as well as borrowing capacity in its
credit facilities, should provide liquidity for STATS to meet
payments in the near term, in S&P's view. On Sept. 29, 2017,
STATS used the first equity injection to redeem US$74.5 million
of notes maturing in March 2018, reducing its short-term
maturities. Following this transaction, STATS still had US$109.5
million in cash and equivalents at the end of the third quarter.

Leverage at both STATS and JCET has been steady, also supporting
our outlook revision from negative to stable. S&P said, "We
expect the debt to EBITDA ratio at both STATS at JCET to remain
3.0x-4.5x in the next couple of years, improving moderately
through EBITDA growth. We expect modest revenue growth supported
by healthy conditions in the overall semiconductor market. We
also anticipate that the semiconductor industry will grow nearly
20% in 2017, followed by a slower pace in 2018. Mobile demand
should be strong, which helps STATS because approximately 70% of
the company's revenue is from the communications end-market."

S&P said, "We view STATS' operations as integral to the overall
group strategy. We also believe that JCET's management is
financially committed to STATS. As a result, we assume that JCET
is highly unlikely to sell STATS, and view the group credit
quality as highly influential on the rating on STATS.

"The stable outlook reflects our expectation that JCET will
continue to support STATS while maintaining adequate liquidity
and leverage around 4x.

"We may lower the rating if leverage at STATS increases to the
point where the incentive for JCET to continue to support the
company declines. We may also lower the rating on STATS if JCET's
ratio of debt to EBITDA exceeds 4.5x, without showing potential
for improvement, and if its liquidity position weakens. This
could happen if JCET pursues aggressive capital spending through
a weakened sales environment.

"We may raise the rating if JCET maintains a strong commitment to
STATS while consolidated debt-to-EBITDA ratio at both entities
declines toward 3.0x on a sustainable basis. An upgrade would
also require both STATS and JCET to maintain adequate liquidity,
and moderate capital spending."



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


JEONBUK BANK: Moody's Hikes Baseline Credit Assessment From Ba1
---------------------------------------------------------------
Moody's Investors Service has affirmed the ratings and
assessments of Busan Bank. Moody's has also affirmed the ratings
and counterparty risk assessments of Kwangju Bank Ltd. (Kwangju
Bank), Kyongnam Bank and Jeonbuk Bank.

Moody's has also upgraded the baseline credit assessments (BCAs)
of Kyongnam Bank and Kwangju Bank to baa2 from baa3, and the BCA
of Jeonbuk Bank to baa3 from ba1.

At the same time, Moody's has affirmed the adjusted BCA of
Kyongnam Bank at baa1, upgraded the adjusted BCA of Kwangju Bank
to baa2 from baa3, and the adjusted BCA of Jeonbuk Bank to baa3
from ba1.

Moody's has also revised to stable from negative the rating
outlooks of Busan Bank, Kyongnam Bank and Kwangju Bank. Jeonbuk
Bank's ratings outlook maintained at stable.

Ratings outlooks provide an opinion on the likely rating
direction over the next 12-18 months, and are assigned only to a
bank's long-term deposit and senior unsecured debt ratings.

RATINGS RATIONALE

The rating action reflects the banks' improved operating
environment, underpinned by better growth prospects for the
Korean economy on the back of synchronized global growth. As an
open and export-driven economy, Korea is one of the key
beneficiaries of improved global growth. Moody's expects Korea's
real GDP to grow by 3% in 2017 and 2.8% in 2018, which is higher
than the other G-20 advanced countries.

Tail risks from the banks' existing exposures to cyclical sectors
has also diminished significantly, a result of reduced leverage
and the restructuring of the shipbuilding and shipping sectors.
An increase in shipbuilding orders will lead to higher
utilization of Korean shipyards in 2018 and result in further
improvement in the industry. New orders for Korea's top three
shipbuilders -- Daewoo Shipbuilding and Marine Engineering,
Hyundai Heavy Industries, and Samsung Heavy Industries -- rose by
79% as of October 2017 to $61 billion, compared to $34 billion
for the full year 2016.

While the regional banks' exposures to cyclical sectors remain
high due to the concentration of their business operations in
their home regions, the banks have reduced this risk by
rebalancing their loan books with a higher share of lower-risk
assets. For Korea's six regional banks, the portion of household
mortgage loans -- which are less risky than loans to small and
medium-sized enterprises (SMEs) -- increased to 26% as of the end
of June 2017 from 21% as of the end of 2015, while their exposure
to SMEs fell to 58% from 62% during the same period.

Moody's expects asset quality for retail loans to remain benign.
The authorities continue to strengthen prudential measures for
household loans and mortgages, which will support asset quality.
And with a low loans-to-value ratio of around 50%, the banks'
equity cushion to protect against asset quality deterioration is
strong.

The outlooks for Busan Bank and Kyongnam Bank were revised to
stable from negative because the asset quality and profitability
deterioration that Moody's had expected has not materialized.
Instead, capitalization, profitability and asset quality have
improved for both banks, although asset risk remains elevated due
to their concentrated loan book in troubled sectors. In addition,
the economies of the banks' home regions will benefit from higher
global trade.

For Busan Bank, all ratings, baseline credit assessments (BCAs),
and adjusted BCAs were affirmed. The change in outlook to stable
from negative reflects Moody's expectation for stable asset risk
and higher profitability, driven by improving economic
conditions. Although Busan Bank's exposure to risky industries,
including shipbuilding, shipping, construction and steel, remains
higher than its nationwide peers, the bank has improved its
capitalization, leading to a strong capital buffer against asset
risk.

Kyongnam Bank's BCA was upgraded to baa2 from baa3 and its
outlook revised to stable from negative, reflecting improved
asset risk as a result of better economic activity in the bank's
home region that is relatively more sensitive to export-driven
industries. The bank's long-term and short-term deposit ratings
and adjusted BCA were affirmed.

Kwangju Bank's BCA and adjusted BCA were both upgraded to baa2
from baa3, reflecting improved asset risk and capitalization
despite high loan growth -- a risk that Moody's had previously
identified as having potential to negatively impact credit
metrics. The change in outlook to stable from negative reflects
reduced risk of capital outflow to support the other bank in the
group, Jeonbuk bank, which has weaker but improved
capitalization. Moody's has affirmed Kwangju Bank's long-term and
short-term deposit ratings.

Moody's notes that the BCAs of Kwangju Bank and Jeonbuk Bank may
not necessarily equalize, as capital fungibility between the two
banks is hindered by the fact that JB Financial Group does not
fully own Kwangju Bank. JB financial group only owns a 56.97%
stake, and minimum earnings retention ratio regulations will
limit dividend payments based on the level of capitalization.

Jeonbuk Bank's BCA and adjusted BCA were upgraded to baa3 from
ba1, reflecting improved asset risk and capitalization as well as
the bank's strong funding and liquidity. The stable outlook
reflects Moody's view that asset quality will not deteriorate
despite high loan growth in the past three years. A slowdown in
new apartment construction projects from 2018 will result in
slowing loan growth. Moody's has affirmed Jeonbuk Bank's long-
term and short-term deposit ratings.

Moody's has lowered the government support uplift for Jeonbuk
Bank and Kwangju Bank to two notches from three notches to
reflect the comparably smaller scale of the regional banks
compared to the nationwide banks. Although Moody's support
assumptions remain unchanged, Moody's judged that the previous
higher support uplift for Jeonbuk Bank and Kwangju Bank compared
to their regional peers was no longer justified, following the
upgrades of their BCAs. Moody's assigns an average uplift of two
notches for the other Korean regional banks.

WHAT COULD CHANGE THE RATINGS UP

All four banks' ratings could be upgraded if their financial
metrics improve significantly, leading to upward pressure on
their BCAs from (1) significant improvements in capitalization
while maintaining stable asset quality; (2) a significant decline
in problem loan ratios and provision charges while maintaining
stable capitalization; and/or (3) significant improvements in
funding and liquidity.

WHAT COULD CHANGE THE RATINGS DOWN

The ratings of the four banks could be downgraded if their
financial metrics deteriorate significantly.

All other rating factors being constant, the BCAs would come
under downward pressure if: (1) there is a significant increase
in problem loan ratios and provision charges without a
corresponding increase in core capital; (2) capitalization
weakens significantly, with TCE/RWA ratios decreasing by more
than 200 basis points; and/or (3) there is a significant
deterioration in funding and liquidity positions.

The principal methodology used in these ratings was Banks
published in September 2017.

Busan Bank, headquartered in Busan, South Korea, had total assets
of KRW53 trillion (USD46 billion) at the end of September 2017.

Jeonbuk Bank, headquartered in Jeonju, South Korea, had total
assets of KRW18 trillion (USD16 billion) at the end of September
2017.

Kwangju Bank Ltd., headquartered in Kwangju, South Korea, had
total assets of KRW23 trillion (USD20 billion) at the end of
September 2017.

Kyongnam Bank, headquartered in Changwon, South Korea, had total
assets of KRW37 trillion (USD32 billion) at the end of September
2017.

LIST OF AFFECTED RATINGS

Busan Bank

- Local- and foreign-currency long-term deposit ratings of A2
   affirmed with stable outlook;

- Senior unsecured MTN (Foreign currency) (P)A2 affirmed;

- Subordinated MTN (Foreign currency) of (P)Baa2 affirmed;

- Subordinate debt (Foreign currency) of Baa2(hyb) affirmed;

- Local- and foreign-currency short-term deposit ratings of P-1
   affirmed;

- Long-term / Short-term counterparty risk assessment of
   A1(cr)/P-1(cr) affirmed;

- Baseline credit assessment and adjusted baseline credit
   assessment of baa1 affirmed;

- Outlook changed to stable from negative

Jeonbuk Bank

- Local- and foreign-currency long-term deposit ratings of Baa1
   affirmed with stable outlook;

- Local- and foreign-currency short-term deposit ratings of P-2
   affirmed;

- Long-term/short-term Counterparty Risk Assessment of
   A3(cr)/P-2(cr) affirmed;

- Baseline credit assessment and adjusted baseline credit
   assessment upgraded to baa3;

- Outlook is maintained at stable

Kwangju Bank Ltd.

- Local- and foreign-currency long-term deposit ratings of A3
   affirmed with stable outlook;

- Local- and foreign-currency short-term deposit ratings of P-2
   affirmed;

- Long-term and short-term Counterparty Risk Assessment of
   A2(cr) and P-1(cr) affirmed;

- Baseline credit assessment and adjusted baseline credit
   assessment upgraded to baa2;

- Outlook changed to stable from negative

Kyongnam Bank

- Long-term deposit rating (Foreign currency and Local currency)
   of A2 affirmed with stable outlook;

- Short-term deposit rating (Foreign currency and Local
   currency) of P-1 affirmed;

- Long-term / Short-term counterparty risk assessment of
   A1(cr)/P-1(cr) affirmed;

- Baseline credit assessment upgraded to baa2;

- Adjusted baseline credit assessment of baa1 affirmed;

- Outlook changed to stable from negative



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


DFCC BANK: S&P Alters Outlook to Stable & Affirms 'B/B' ICRs
------------------------------------------------------------
S&P Global Ratings revised its outlook on DFCC Bank to stable
from negative. S&P said, "At the same time, we affirmed our 'B'
long-term and 'B' short-term issuer credit ratings on DFCC Bank.
We also affirmed our senior unsecured debt ratings on the bank."

S&P said, "At the same time, we removed the long-term rating from
under criteria observation (UCO), where we had placed it after
our revised criteria went into effect (see "Financial Institution
Ratings Placed Under Criteria Observation After Risk-Adjusted
Capital Framework Criteria Published," published July 20, 2017).

"We revised the outlook to stable and affirmed the ratings
because we expect DFCC to maintain a satisfactory franchise and
profitability compared with that of its peers in Sri Lanka. The
bank's weak capitalization and limited deposit base tempers its
strengths. Further, an improvement in the bank's risk position
balances a decline in the bank's risk-adjusted capital under our
updated methodology, in our view. We assess the bank's stand-
alone credit profile (SACP) as 'b'.

"After applying our revised capital adequacy criteria in a review
of the DFCC's risk-adjusted capital (RAC) ratio, we expect its
prediversification RAC ratio to remain 4.5%-5% over the next 12-
18 months. We anticipate that the bank's loan growth will be 14%-
18% while profitability is likely to remain stable, with healthy
net interest margins and fee income balancing credit costs. We
expect DFCC's credit costs to increase somewhat in the next 12-18
months due to sluggishness in economy in the past 18 months and
elevated interest rates. However, we expect losses to remain well
within our normalized loss expectations. The bank's loan growth
has been lower than the industry average and the proportion of
granular retail assets has increased in the past few years. Its
nonperforming loan ratio of 3.2% as of September 2017 is in line
with the industry average (2.7%).

"Our assessment of DFCC's business position reflects our view
that the bank will maintain its satisfactory market position and
business stability over the next 12-18 months."

DFCC has a smaller branch network and lower deposit funding
profile than that of its peers. The bank's deposit base has
increased over the past few years, although core deposits formed
about 69% of its funding base as of Sept. 30, 2017, which is
lower than the industry average (79%). The bank's ratio of
customer loans (net) to customer deposits, at 108%, is still
higher than most of its peers. S&P believes the bank has
sufficient liquidity to cover short-term wholesale funding needs.

S&P said, "Our stable outlook on DFCC reflects our view that the
bank will navigate operating conditions in Sri Lanka and maintain
its financial profile over the next 12-18 months.

"We could lower the ratings on DFCC if the bank's asset quality
declines substantially.

"We could upgrade the bank if the systemic risks facing Sri
Lankan banks subside while DFCC raises capital to maintain its
prediversification RAC ratio above 5%."


SRI LANKA: Moody's Affirms B1 Foreign Currency Issuer Rating
------------------------------------------------------------
Moody's Investors Service has affirmed the Government of Sri
Lanka's foreign currency issuer and senior unsecured ratings at
B1 and maintained the negative outlook.

The decision to affirm the B1 rating balances Sri Lanka's
moderate institutional strength and an economy which exhibits
strong, if somewhat volatile, growth and reasonable levels of
wealth; against a high debt burden, narrow revenue base, large
government borrowing requirements and elevated external
vulnerability risk.

In June 2016, Moody's assigned a negative outlook based on
expectations of further weakening in fiscal metrics and a
potential shortfall in the effectiveness of fiscal reforms.
However, this expectation of fiscal weakening has not
materialized, and the government has advanced important tax
policy and administration reforms that have contributed to
gradual fiscal improvements.

The decision to maintain the negative outlook reflects Moody's
view that persistently high government liquidity and external
vulnerability risks continue to pressure Sri Lanka's credit
profile, and specifically that measures to build reserves and
smooth the profile of external payments may be insufficient to
stem imminent government liquidity and balance of payments
pressures starting in 2019, when large international debt
repayments come due and Sri Lanka's three-year International
Monetary Fund (IMF) Extended Fund Facility (EFF) program
concludes.

Moody's has also assigned a Ba1 ceiling for local currency bonds
and deposits, a Ba2 ceiling for foreign-currency bonds and a B2
ceiling for foreign currency deposits.

RATINGS RATIONALE

RATIONALE FOR AFFIRMING SRI LANKA'S B1 RATING

Sri Lanka's B1 rating is supported by moderate institutional
strength, a relatively strong assessment compared to similarly
rated peers, and an economy which exhibits strong, if somewhat
volatile, growth and reasonable levels of wealth. Relatively
strong -- vis a vis similarly rated issuers -- social indicators
for education and health support Sri Lanka's human capital base
and overall growth potential.

Sri Lanka's institutions, illustrated by Worldwide Governance
Indicators, are generally stronger than those of B-rated peers.
Ongoing progress with implementation of reforms under an IMF
program will strengthen the country's institutions if they result
in lasting improvements beyond the lifetime of the program. This
is balanced by Moody's assessment that the complexity and
ambition of planned fiscal, economic and monetary reforms will
continue to test policy effectiveness, given Sri Lanka's
sometimes divided coalition government.

Meanwhile, at $81.3 billion, Sri Lanka's 2016 nominal GDP was
over four times the median for B1- and B2-rated sovereigns. This
comparatively large economy provides important diversification
and shock absorption capacity, which supports Sri Lanka's credit
profile at the B1 level. Robust real GDP growth also drives
Moody's assessment of Sri Lanka's economic strength. Moody's
expect real GDP growth to average about 4.9% per year in 2017-21.

Set against those strengths, growth will likely remain somewhat
volatile, in particular due to its vulnerability to droughts and
flooding. The magnitude and dispersion of seasonal monsoon
rainfall influences agricultural sector growth and rural
household consumption.

Moreover, Sri Lanka's general government debt is high and its
debt affordability very low. The government's narrow revenue base
weighs on fiscal performance: the tax revenue-to-GDP ratio was
only 12.4% in 2016, and the general government revenue-to-GDP
ratio only 14.3%. The government estimates that revenue-to-GDP
will rise to 14.6% in 2017.

Persistent sizeable budget deficits, combined with slower nominal
GDP growth, have resulted in general government debt rising to
79% of GDP in 2016 -- up ten percentage points in four years -- a
high level for an economy of Sri Lanka's size and income levels.
Meanwhile, interest payments were 36% of general government
revenues in 2016, one of the highest interest burdens of all
sovereigns rated by Moody's.

Fiscal consolidation is a key focus of Sri Lanka's IMF program.
The government aims to reduce the general government fiscal
deficit to 3.5% of GDP by 2020 from 7.6% in 2015. Following a
rise in the Value-Added Tax rate in 2016, the government plans to
implement a revised Inland Revenue Act (IRA) in April 2018 which
will introduce a more efficient, modern and broad-based tax
framework.

Moody's expect the 2017 deficit to narrow to 5.2% of GDP, in line
with the government's projections, and consider their 2018
deficit target of 4.8% of GDP to be achievable, provided reforms
continue at their current pace. Nevertheless, fiscal metrics will
remain very weak. Moody's expect the debt burden to decline only
very gradually to about 74% of GDP by 2021.

RATIONALE FOR MAINTAINING THE NEGATIVE OUTLOOK

The negative outlook reflects Moody's view that Sri Lanka's
credit profile is increasingly undermined by the government's and
country's elevated exposure to refinancing risk.

Very high refinancing needs for the government, driven in part by
the relatively short maturity of government debt, will pose an
increasing risk in a period of rising global interest rates.
According to the IMF, Sri Lanka's gross government borrowing
requirement (GBR) is around 19% of GDP in 2017. Moody's expect
the GBR to remain broadly stable, well above the 10.3% of GDP
median level for B1 and B2-rated sovereigns, heightening exposure
to a sharp rise in interest rates.

In addition, the economy's significant foreign borrowing
requirements combined with a fragile external payments position
pose material external vulnerability risk. Despite a recent
increase in foreign currency reserves, reserve adequacy remains
low. As of October 2017, Sri Lanka's foreign currency reserves
(excluding gold and SDRs) stood at about $6.5 billion and covered
around 4.0 months of imports, up from 2.5 months in April 2017,
but still only marginally above the IMF's recommended three-month
minimum adequacy level. The Central Bank of Sri Lanka (CBSL)
estimates that reserves will rise to $6.6 billion by the end of
2017. While Moody's expect foreign currency reserves to rise to
about $7.5 billion in 2018 following the completion of the
Hambantota port sale, Moody's do not expect reserves to rise
materially thereafter.

Absent a significant increase in reserves, external vulnerability
risk will rise still further in 2019-2022, when several large
international debt repayments are due and Sri Lanka's IMF program
will have ended. As a result, Moody's expects Sri Lanka's
external vulnerability indicator (EVI), which measures the ratio
of external debt payments due over the next year to foreign-
exchange reserves, to rise from around 150% in 2016 to close to
180% by the end of that period. While the government is taking
steps toward addressing these risks, including through the
development of a revised external liability management strategy
underpinned by a new Liability Management Act, it is far from
certain that such measures will be sufficient to stave off rising
balance of payments pressures.

WHAT COULD MOVE THE RATING UP

The negative outlook signals that an upgrade is unlikely. A
significant improvement in the external position, driven by a
substantial increase in foreign-exchange reserves and reduction
of external financing pressures, resulting in a material decline
of external vulnerability metrics, would support a return of the
rating outlook to stable. In addition, greater clarity around how
the government will manage large external debt repayments in
2019-2022 through an effective, predictable and transparent
liability management strategy supported by parliamentary approval
of the planned Liability Management Act would support the
sovereign credit profile.

Evidence of effective reform implementation leading to
significant and lasting improvements in tax collection, including
through successful implementation of the new Inland Revenue Act,
would provide further support to the sovereign credit profile.

WHAT COULD MOVE THE RATING DOWN

Moody's would downgrade the rating were it to conclude that the
government's refinancing capacity will not improve and that
exposure to interest rate and confidence shocks will remain high.
Similarly, failure to implement a strategy to manage repayment of
large external liabilities in 2019-2022, either through an
effective liability management exercise or through faster
accumulation of foreign-exchange reserves, would put further
negative pressure on Sri Lanka's credit profile. A marked fall in
foreign-exchange reserves or signs of loss of investor confidence
though capital outflows or less affordable market access would
place more immediate pressure on the rating. In addition, signs
that achieving further fiscal consolidation will be difficult,
that reforms are ineffective or that the authorities commitment
towards fiscal consolidation is wavering, would all point to a
higher debt burden for longer and put negative pressure on the
rating. Given the imminence of the rise in the sovereign's
refinancing needs and its already high exposure to shocks,
Moody's may review the rating again in 2018.

GDP per capita (PPP basis, US$): 12,285 (2016 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): 4.4% (2016 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 4.5% (2016 Actual)

Gen. Gov. Financial Balance/GDP: -5.4% (2016 Actual) (also known
as Fiscal Balance)

Current Account Balance/GDP: -2.4% (2016 Actual) (also known as
External Balance)

External debt/GDP: 57.3% (2016 Actual)

Level of economic development: Moderate level of economic
resilience

Default history: No default events (on bonds or loans) have been
recorded since 1983.

On December 7, 2017, a rating committee was called to discuss the
rating of the Sri Lanka, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have not materially changed. The
issuer's institutional strength/ framework have not materially
changed. The issuer's fiscal or financial strength, including its
debt profile, has not materially changed. The issuer's
susceptibility to event risks has not materially changed.

The principal methodology used in these ratings was Sovereign
Bond Ratings published in December 2016.



                             *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez,
Julie Anne L. Toledo, Ivy B. Magdadaro and Peter A. Chapman,
Editors.

Copyright 2017.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed
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