/raid1/www/Hosts/bankrupt/TCRAP_Public/181221.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 21, 2018, Vol. 21, No. 253

                            Headlines


A U S T R A L I A

ARGYLE BUILDERS: First Creditors' Meeting Set for Dec. 31
AUTISM PLUS: Second Creditors' Meeting Set for Jan. 4
AVALON RETREAT: Second Creditors' Meeting Set for Jan. 2
BERNDALE CAPITAL: ASIC Gets Freezing Orders vs. Firm, D'Amore
BEYOND TILES: Second Creditors' Meeting Set for Jan. 7

CONNOISSEUR EXPORTS: First Creditors' Meeting Set for Jan. 3
GOLDSKY GLOBAL: Investors May be Owed AUD12.6MM, Receivers Say
PICTON PRESS: Federal Court Rejects ATO Bid to Wind Up Firm
PPR SYDNEY: First Creditors' Meeting Set for Jan. 2
SAI GLOBAL: Moody's Downgrades CFR to Caa1, Outlook Negative

SAPPHIRE XX 2018-3: Moody's Assigns B2 Rating to Class F Notes
STACEY APARTMENTS: First Creditors' Meeting Set for Dec. 31
SYDNEY WATERPROOFING: First Creditors' Meeting Set for Jan. 2
WYEE BRICKLAYING: First Creditors' Meeting Set for Jan. 2


B A N G L A D E S H

BRAC BANK: S&P Affirms 'B+/B' ICRs on Stable Financial Profile


C H I N A

CHINA HUIYUAN: Fitch Pulls CCC+ LT IDR Due to Insufficient Info
CHINA HUIYUAN: Moody's Withdraws Caa1 CFR Due to Inadequate Info
CIFI HOLDINGS: Fitch Rates Proposed USD Sr. Notes 'BB(EXP)'
CIFI HOLDINGS: Fitch Assigns 'BB' Final Rating to USD400MM Notes
EHI CAR SERVICES: Fitch Affirms B+ LT IDR, Outlook Negative

FANTASIA HOLDINGS: Moody's Assigns B3 Rating to New USD Sr. Notes
KANGDE XIN: Moody's Downgrades CFR to B3, Outlook Negative
LOGAN PROPERTY: Fitch Assigns BB- Rating to US$370MM Sr. Notes
OFO INC: Mulled Filing for Bankruptcy as Cash Dried Up
PANDA GREEN: Moody's Cuts CFR to Caa1; On Review for Downgrade

REDSUN PROPERTIES: Fitch Rates US$180MM Sr. Notes Final B
RONSHINE CHINA: Fitch Assigns B+(EXP) Rating to New USD Notes
SHANGHAI HUAYI: Moody's Alters Outlook on Ba1 CFR to Positive
XINHU ZHONGBAO: Fitch Puts Final B Rating to US$240MM Sr. Notes
YANGO GROUP: Moody's Assigns B3 Sr. Unsecured Rating to USD Notes


H O N G  K O N G

HYDOO INTERNATIONAL: S&P Withdraws 'B-' ICR with Negative Outlook


I N D I A

AJANTA GARTEX: CARE Reaffirms B+ Rating on INR9.36cr LT Loan
AL-AYAAN FOODS: CRISIL Lowers Rating on INR10cr Cash Loan to D
BR PROPERTIES: CARE Assigns B+ Rating to INR5cr LT Loan
GCX LIMITED: Moody's Cuts CFR to Caa1, Outlook Negative
GOMATHI STEELS: CRISIL Migrates D Rating to Not Cooperating

GRC INFRA: CARE Reaffirms B+ Rating on INR50cr LT Loan
INDIAN RENEWABLE: Fitch Lowers LT IDR to BB+, Outlook Stable
INFRASTRUCTURE LEASING: Puts Road Assets on the Block
JAYA JEYA: CRISIL Migrates B Rating to Not Cooperating Category
JAYMALA SPINTEX: CRISIL Lowers Rating on INR16.1cr Loan to D

JR TOLL: CARE Removes B(SO) Rating from Credit Watch Developing
KUBER PAPER: CARE Assigns B+ Rating to INR15.99cr LT Loan
KUMAR SPINTEX: Ind-Ra Assigns BB- Issuer Rating, Outlook Stable
MAITHAN ISPAT: CARE Lowers Rating on INR576.37cr Loan to D
MILTECH INDUSTRIES: CARE Withdraws 'D' Loan Ratings

NANO-AGRO FOODS: CRISIL Assigns B+ Rating to INR10cr Cash Loan
NECX PRIVATE: CRISIL Reaffirms B- Rating on INR4.03cr Term Loan
NETTOS EXPORTING: CRISIL Migrates B+ Rating to Not Cooperating
NIKKI STEELS: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating
PIMS MEDICAL: CRISIL Migrates B- Rating to Not Cooperating

R.R. DWELLINGS: CRISIL Withdraws D Rating on INR18cr Term Loan
RAJARATHNAM CONST'N: CRISIL Moves D Rating to Not Cooperating
SRI PRANEETH: CRISIL Migrates B+ Rating to Not Cooperating
SRI SRI PUSHPAVATHI: CARE Assigns B+ Rating to INR9cr LT Loan
SRI SRINIVAS: CARE Assigns B+ Rating to INR11cr Long-Term Loan

SRUJANA ENTERPRISES: Ind-Ra Assigns BB- LT Rating, Outlook Stable
SUCHI FASTENERS: Ind-Ra Lowers Long Term Issuer Rating to 'D'
SWATHI RICE: CARE Lowers Rating on INR5.05cr LT Loan to B+
V S S JEWELLERS: CRISIL Lowers Rating on INR1.25cr Loan to B-
VENTURE IMPEX: CRISIL Migrates B+ Rating to Not Cooperating

VISHAL SPINTEX: Ind-Ra Assigns BB Issuer Rating, Outlook Stable
VISHNURAAM TEXTILES: CRISIL Migrates D Rating to Not Cooperating


I N D O N E S I A

STEEL PIPE: Moody's Withdraws B2 CFR for Business Reasons
WIJAYA KARYA: Fitch Corrects December 10 Press Release


J A P A N

SOFTBANK GROUP: Moody's Affirms Ba1 CFR, Outlook Stable


N E W  Z E A L A N D

FIRST INSURANCE: Fitch Affirms BB+ IFS Rating, Outlook Stable
TARATAHI AGRICULTURAL: Placed Into Interim Liquidation
VIDEON 2012: Video Store to Close Doors on December 31


P A K I S T A N

PAKISTAN: Fitch Downgrades LT IDR to B-, Outlook Stable


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


ARGYLE BUILDERS: First Creditors' Meeting Set for Dec. 31
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Argyle
Builders Pty Ltd will be held at the offices of O'Brien Palmer,
at Level 9, 66 Clarence Street, in Sydney, NSW, on Dec. 31, 2018,
at 10:00 a.m.

Liam Bailey and Christopher John Palmer of O'Brien Palmer were
appointed as administrators of Argyle Builders on Dec. 17, 2018.


AUTISM PLUS: Second Creditors' Meeting Set for Jan. 4
-----------------------------------------------------
A second meeting of creditors in the proceedings of Autism Plus
Pty. Ltd. has been set for Jan. 4, 2019, at 11:00 a.m. at the
offices of Romanis Cant, at Level 2, 106 Hardware Street, in
Melbourne, Victoria.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 3, 2019, at 5:00 p.m.

Anthony Robert Cant and Renee Sarah Di Carlo of Romanis Cant were
appointed as administrators of Autism Plus on Nov. 29, 2018.


AVALON RETREAT: Second Creditors' Meeting Set for Jan. 2
--------------------------------------------------------
A second meeting of creditors in the proceedings of Avalon
Retreat Pty Ltd, trading Shopping Centre Security WA, has been
set for Jan. 2, 2019, at 10:30 a.m. at the offices of Worrells
Solvency & Forensic Accountants, at Level 4, 15 Ogilvie Road, in
Mount Pleasant, WA.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 1, 2019, at 4:00 p.m.

Mervyn Jonathan Kitay of Worrells Solvency was appointed as
administrator of Avalon Retreat on Nov. 23, 2018.


BERNDALE CAPITAL: ASIC Gets Freezing Orders vs. Firm, D'Amore
-------------------------------------------------------------
Australian Securities and Investments Commission has obtained
orders from the Federal Court against Berndale Capital Securities
Pty Ltd, its associated entities, and Mr. Stavro D'Amore,
freezing their bank accounts and preventing them from selling or
otherwise dealing with their property without ASIC's consent.

ASIC is concerned that Berndale and Mr. D'Amore, its former
director, may have breached client money obligations, and
contravened other laws. Berndale was a retail OTC derivative
issuer and its Australian Financial Services licence was
cancelled on Nov. 22, 2018. At the same time, Mr. D'Amore was
banned from providing financial services for a period of six
years.

Berndale and ASIC appeared before Justice O'Callaghan in the
Federal Court in Melbourne on Dec. 19, 2018, following ASIC's
initial application and interim orders made on Dec. 5, 2018.

ASIC's investigation is continuing.

The matter is next before the Federal Court on a date to be fixed
in February 2019.


BEYOND TILES: Second Creditors' Meeting Set for Jan. 7
------------------------------------------------------
A second meeting of creditors in the proceedings of Beyond Tiles
Pty Ltd has been set for Jan. 7, 2019, at at the offices of Bruce
Mulvaney & Co, at Suite 4, Level 4, 858 Glenferrie Road, in
Hawthorn, Victoria.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by Jan. 4, 2019, at 4:00 p.m.

Bruce Neil Mulvaney of Bruce Mulvaney & Co was appointed as
administrator of Beyond Tiles on Nov. 28, 2018.


CONNOISSEUR EXPORTS: First Creditors' Meeting Set for Jan. 3
------------------------------------------------------------
A first meeting of the creditors in the proceedings of
Connoisseur Exports Pty. Limited will be held at the offices of
MaC Insolvency, at Level 7, 91 Phillip Street, in Parramatta,
NSW, on Jan. 3, 2019, at 2:30 p.m.

Trent McMillen at MaC Insolvency was appointed as administrator
of Connoisseur Exports on Dec. 19, 2018.


GOLDSKY GLOBAL: Investors May be Owed AUD12.6MM, Receivers Say
--------------------------------------------------------------
Jonathan Shapiro at Australian Financial Review reports that
investors in Goldsky Global, the Kingscliff-based hedge fund that
raised millions of dollars from local individuals and sporting
stars, may be owed AUD12.6 million, according to a report by
receivers William Buck.

The report, submitted to the Queensland Supreme Court on Dec. 17,
said that since March 2017 investors paid AUD23.4 million into
the fund that the corporate regulator had suspected was a "Ponzi
scheme", while AUD14.9 million was paid out to investors, AFR
relates.

According to AFR, Goldsky claimed to deliver close to 20 per cent
returns by trading global markets using complex techniques and
was awarded the AsiaHedge fund of the year prize in 2017.

But in late September, the United States Securities and Exchange
Commission (SEC) sued Goldsky, alleging that it made false and
misleading statements about the amount of funds it raised, the
service providers it had used, and the extent of its activity in
Australia, AFR relates.

AFR says William Buck's Tony Castley was appointed as a receiver
after the Australian Securities and Investments Commission (ASIC)
investigated the hedge fund that was officially registered in the
United States.

AFR relates that Mr. Castley said in his report that about
AUD500,000 had been frozen in the joint bank accounts of Ken
Grace, the founder of the Goldsky hedge fund, and his wife, Jane
Marzin, and that a further AUD1.7 million could become "available
should any action taken be successful".

He concluded that "it would appear that the available funds and
assets are not sufficient to satisfy the claims by investors for
the return of their account balance".

In late October, after ASIC investigators accessed Goldsky's bank
accounts, it successfully sought a court order to freeze the
assets of Goldsky and Mr. Grace, AFR recalls. That came days
after ASIC investigator David McArthur told Mr. Grace in a
recorded interview that he suspected Goldsky was a "Ponzi scheme"

AFR notes that ASIC had initially determined that Goldsky had
raised more than AUD16 million from about 50 investors, but the
William Buck report shows that the fund had actually raised
AUD23.4 million, based on a more extensive examination of bank
statements dating back to March 2017.

Mr. Castley said in a court statement he did not receive all the
books and records of Goldsky and not all his inquiries were
answered, AFR relays.

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 5, 2018, the Queensland Supreme Court has appointed Anthony
Castley of William Buck as receiver and manager over the assets
of Goldsky Global Access Fund Pty Ltd, Kenneth Charles Grace and
associated entities. Freezing orders were also made restraining
the disposal of any property (including money and securities) by
Mr. Grace, Goldsky Global Access Fund Pty Ltd, Goldsky Asset
Management Australia Pty Ltd and Goldsky Investments Pty Ltd.

ASIC investigations into the current scheme are ongoing.

Mr. Grace, through his company, Goldsky Asset Management LCC, a
US-incorporated company, advised ASIC that it had commenced
operating a financial services business in Australia in March
2017. Goldsky Asset Management LLC purported to rely on relief
from the requirement to hold an Australian Financial Services
license available to certain foreign financial services firms
providing services to wholesale clients in Australia on the basis
that they are subject to equivalent regulation offshore. Goldsky
Asset Management LLC was authorised as an 'investment advisor' by
the United States Securities and Exchange Commission (SEC).

Goldsky Asset Management LLC had appointed Goldsky Asset
Management Australia Pty Ltd as its agent in Australia. On
June 5, 2018, ASIC advised Goldsky Asset Management LLC that ASIC
considered that it was no longer entitled to rely on the relief
as it had not complied with the conditions of the relief.

On Sept. 27, 2018 the SEC filed a civil suit in the United States
District Court, Southern District of New York against Goldsky
Asset Management LLC and Kenneth Grace.


PICTON PRESS: Federal Court Rejects ATO Bid to Wind Up Firm
-----------------------------------------------------------
Wide Format Online reports that the Federal Court in Perth has
dismissed an application by the Australian Taxation Office (ATO)
to wind up Perth printer Picton Press, which went into voluntary
administration in May owing more than AUD9 million -- including
AUD1.3 million in tax.

According to the report, the ATO's application was turned down by
the court because Picton Press is now subject to a Deed of
Company Arrangement (DOCA) put together by administrator Jeremy
Nipps of Cor Cordis. A majority of Picton creditors -- but not
the ATO and some paper suppliers -- voted in favor of the
agreement in November, the report says.

Under the DOCA, major unsecured creditors owed in excess of
AUD10,000, including the ATO and paper suppliers, ended up
getting just one-two cents in the dollar, meaning the ATO will
receive less than AUD30,000 of its AUD1.3 million tax bill, Wide
Format Online notes.

Unsecured creditors owed less than AUD10,000 were expected to get
up to 100 cents in the dollar under the deal. Secured creditors
including Westpac, NAB and the CBA, who are owed a total of about
AUD5.5 million, are not bound by the DOCA but agreed to continue
their support of the directors to allow the business to continue
to trade, according to the report.

The Federal Court decision did not come as a surprise to the
Picton administrator, the report notes.

"We sought to have the application dismissed because the company
is now subject to the DOCA," Mr. Nipps told Wide Format Online.
"I provided an affidavit, my solicitors attended and the court
ordered that the wind up application be dismissed.

"It's good news for the directors because you don't want the
application sitting there, but we were expecting the application
to be dismissed because the DOCA was executed. At the end of the
day, the most significant decision was made back at the creditors
meeting in November. That was the critical point. After that,
everything is just a process."

Picton Press directors Gary Kennedy and Dennis Hague can now
focus their attention on rebuilding the company, Mr. Nipps, as
cited by Wide Format Online, said.

"Control has now reverted back to directors and the main thing is
getting all these little bits and pieces out of the way so they
can focus on the business."

As part of the deal, owners Hague and Kennedy have to pay
AUD205,000 to a creditors' trust within a month, with another
payment of AUD270,000 due in a year.

Earlier this month, Mr. Kennedy told Wide Format Online the
restructured company had "a fair amount of rebuilding to do and
we have trust and confidence to rebuild.

"We recognise that we overcapitalised in a diminishing market and
a poor economy but we've rectified what we needed to rectify.
There's quite a few things we will do differently, and now we've
just got to get up and running," Mr. Kennedy said, notes the
report.

Jeremy Joseph Nipps and Clifford Stuart Rocke of Cor Cordis were
appointed as administrators of Picton Press on May 22, 2018.


PPR SYDNEY: First Creditors' Meeting Set for Jan. 2
---------------------------------------------------
A first meeting of the creditors in the proceedings of PPR Sydney
NSW Pty Ltd, trading as formerly trading as PappaRich Sydney CBD,
will be held at the offices of Mackay Goodwin, at Level 2, 10
Bridge Street, in Sydney, NSW, on Jan. 2, 2019, at 4:00 p.m.

Grahame Robert Ward and Domenico Alessandro Calabretta of Mackay
Goodwin were appointed as administrators of PPR Sydney on Dec.
18, 2018.


SAI GLOBAL: Moody's Downgrades CFR to Caa1, Outlook Negative
------------------------------------------------------------
Moody's Investors Service has downgraded SAI Global Holdings II
Pty Ltd.'s corporate family rating to Caa1 from B3. The rating
outlook remains negative.

At the same time, Moody's has downgraded the senior secured
rating of SAI Global Holdings I Pty Limited's first lien USD325
million term loan B to Caa1 from B3, the senior secured rating of
its first lien AUD255 million term loan B to Caa1 from B3, and
the senior secured rating of its second lien AUD160 million term
loan facility to Ca from Caa2.

The outlook for all ratings remains negative.

RATINGS RATIONALE

"The ratings downgrade reflects our view that SAI Global's
capital structure has become unsustainable -- due to a
combination of earnings erosion, high interest costs and capital
spending for maintenance - and our expectation that, in the
absence of further equity injections from its financial sponsor,
SAI Global will experience material liquidity issues in the next
12-18 months," says Shawn Xiong, a Moody's Analyst.

"The ratings downgrade also reflects the continued structural
headwinds facing SAI Global's property services division which
will challenge the viability of its business model," adds Xiong.

As a result of earnings erosion, Moody's estimates SAI Global to
be significantly free cash flow negative, depleting around AUD10-
12 million of cash on a quarterly basis, starting from FY2020.
SAI Global had around AUD30.4 million of cash at September 30,
2018.

Additionally, under the company's current revolving credit
facility agreement, SAI Global can draw up to 35% of its facility
limit without becoming subject to covenants. This level equates
to an additional drawdown of around AUD13 million which could
potentially be an important liquidity source for the company.

Given Moody's expectation of sustained negative free cash flow
generation, SAI Global will be heavily reliant on further support
from its financial sponsor, Baring Private Equity Asia ("BPEA").

To this effect, BPEA has continued to state its support of the
business, as demonstrated by the timely equity injection of AUD58
million and an additional AUD11 million to fund the acquisition
of Strategic BCP in June 2018.

Moody's expects SAI Global's financial leverage, as measured by
Moody's adjusted debt/EBITDA, will be around 10x in the next 12-
18 months.

SAI Global's operating cash flow in the first half of FY2019
benefitted from a one-off increase in its knowledge division's
earnings, driven by the release of a new electrical standard in
Australia.

However, Moody's expects earnings and cash flow will deteriorate
from Q3 FY2019 as the positive impact of the new standard starts
to taper off and the renewal of the Standards Australia contract
will result in an increase in royalty rates, thus holowering the
knowledge division's margins.

Notwithstanding some cost reductions and price increases achieved
in Q1 FY2019 by SAI Global's mortgage services division, Moody's
expects revenue and earnings from this division and its manual
settlement services in particular to continue to experience
significant declines in FY2020. This is because Moody's expects
the use of electronic property settlements to continue to ramp up
across key states in Australia as the government mandates are
implemented.

This is partially offset by performance in the Risk, Learning and
Assurance divisions that have started to show a moderate level of
growth.

WHAT COULD CHANGE THE RATING

The ratings could be downgraded if the company is unable to grow
or restructure its business to achieve a sustainable capital
structure.

Additionally, the ratings could also be downgraded if BPEA fails
to support SAI Global's liquidity requirements when required,
thus, hindering its ability to cover its debt-service
obligations.

The outlook could return to stable if the company demonstrates an
ability to improve its overall earnings levels, reduce its level
of gross debt and/or receive material liquidity support from BPEA
so that its capital structure becomes sustainable.

The ratings are unlikely to be upgraded in the near term, given
the company's current weak liquidity position, ongoing earnings
erosion which will further deteriorate due to the structural
challenges in SAI Global's mortgage services business and the
expected increases in royalty rates in its knowledge business.

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

SAI Global Limited, headquartered in Sydney, is a global provider
of risk management services and products. It is also a leading
provider of mortgage settlement-related services and property-
related information in Australia.

The company operates five business segments: (1) Assurance -
testing, inspecting and certification to ensure customers meet
required standards, (2) Knowledge - publishing
standards/regulatory material, (3) Learning - training customers
on standards/regulations, (4) Risk - preventing and tracking any
breach of standards/regulations, and (5) Property - providing
mortgage settlement and information brokerage services.


SAPPHIRE XX 2018-3: Moody's Assigns B2 Rating to Class F Notes
--------------------------------------------------------------
Moody's Investors Service has assigned the following definitive
ratings to the notes issued by Permanent Custodians Limited as
trustee of Sapphire XX Series 2018-3 Trust.

Issuer: Sapphire XX Series 2018-3 Trust

AUD70.00 million Class A1a Notes, Assigned Aaa (sf)

AUD122.50 million Class A1b Notes, Assigned Aaa (sf)

AUD106.40 million Class A2 Notes, Assigned Aaa (sf)

AUD30.80 million Class B Notes, Assigned Aa2 (sf)

AUD4.20 million Class C Notes, Assigned A2 (sf)

AUD7.70 million Class D Notes, Assigned Baa2 (sf)

AUD5.25 million Class E Notes, Assigned Ba2 (sf)

AUD1.75 million Class F Notes, Assigned B2 (sf)

The AUD1.40 million Class G Notes are not rated by Moody's.

The deal is an Australian residential mortgage-backed securities
(RMBS) transaction secured by a portfolio of residential mortgage
loans. All receivables were originated by Bluestone Group Pty
Limited or Bluestone Mortgages Pty Limited (Bluestone), and are
serviced by Bluestone Servicing Pty Limited (Bluestone
Servicing).

Bluestone is an experienced securitiser in the Australian RMBS
market, having completed 21 term RMBS transactions since 2000.
Bluestone also has extensive securitisation experience through
its various warehouse funding arrangements. This is Bluestone's
third transaction for 2018.

RATINGS RATIONALE

The definitive ratings take into account, among other factors,
the evaluation of the underlying receivables and their expected
performance, the evaluation of the capital structure and credit
enhancement provided to the notes, the availability of excess
spread over the life of the transaction, the liquidity facility
in the amount of 2.0% of the note balance, the legal structure,
and the credit strength and experience of Bluestone Servicing as
the servicer.

  - Moody's MILAN CE -- representing the loss that Moody's
expects the portfolio to suffer in the event of a severe
recession scenario -- is 14.1%. Moody's expected loss for this
transaction is 1.6%.

Key transactional features are as follows:

  - Whilst the Class A1b and Class A2 Notes rank sequentially in
relation to interest and charge-offs, they rank pari passu in
relation to principal throughout the life of the transaction.
Principal repayments will be allocated pro-rata, based on the
stated amount of the notes. This feature reduces the absolute
amount of credit enhancement available to the Class A1b Notes.

  - The Class B to Class F Notes will start receiving their pro-
rata share of principal if step-down conditions are met.

  - Permitted further advances can be funded within the trust,
which could lead to a deterioration in the credit quality of the
pool. Further advances are subject to certain conditions. Further
advances will be funded through principal collections.

  - A retention mechanism will be used to divert excess available
income towards the repayment of the most junior class of the
rated notes outstanding. The retention amount will be up to 0.05%
of the current outstanding pool balance per month, and up to a
total captured amount of AUD1,050,000. At the same time, the
trustee will issue Class RM Notes, equivalent to the retention
amount allocated, leaving subordination levels unchanged.

Key pool features are as follows:

  - The portfolio has a high level of weighted-average seasoning
of 49.2 months.

  - Investment and interest-only loans represent 21.4% and 6.6%
of the pool, respectively.

  - Based on Moody's classifications, the portfolio contains
32.0% exposure to borrowers with prior credit impairment
histories (default, judgment or bankruptcy). Moody's assesses
these borrowers as having a significantly higher default
probability.

  - Based on Moody's classifications, the portfolio contains
37.2% of loans granted on the basis of alternative income
documentation, with a further 20.3% granted on the basis of low
income documentation.

  - Based on Moody's classifications, around 56.7% of the loans
in the portfolio were extended to self-employed borrowers.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
September 2017.

The Credit Ratings for Sapphire XX Series 2018-3 Trust were
assigned in accordance with Moody's existing Methodology entitled
"Moody's Approach to Rating RMBS Using the MILAN Framework,"
dated September 11, 2017. Please note that on November 14, 2018,
Moody's released a Request for Comment, in which it has requested
market feedback on potential revisions to its Methodology for
RMBS. If the revised Methodology is implemented as proposed, the
Credit Ratings on Sapphire XX Series 2018-3 Trust may be
neutrally affected. Please refer to Moody's Request for Comment,
titled "Proposed Update to Moody's Approach to Rating RMBS Using
the MILAN Framework," for further details regarding the
implications of the proposed Methodology revisions on certain
Credit Ratings.

Factors That Would Lead to an Upgrade or Downgrade of the
Ratings:

Factors that could lead to an upgrade of the notes include a
rapid build-up of credit enhancement, due to sequential
amortization or better-than-expected collateral performance. The
Australian jobs market and housing market are primary drivers of
performance.

A factor that could lead to a downgrade of the notes is worse-
than-expected collateral performance. Other reasons that could
lead to a downgrade include poor servicing, error on the part of
transaction parties, a deterioration in the credit quality of
transaction counterparties, or lack of transactional governance
and fraud.


STACEY APARTMENTS: First Creditors' Meeting Set for Dec. 31
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of Stacey
Apartments Pty Ltd will be held at the offices of O'Brien Palmer,
at Level 9, 66 Clarence Street, in Sydney, NSW, on Dec. 31, 2018,
at 10:30 a.m.

Liam Bailey and Christopher John Palmer of O'Brien Palmer were
appointed as administrators of Stacey Apartments on Dec. 17,
2018.


SYDNEY WATERPROOFING: First Creditors' Meeting Set for Jan. 2
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Sydney
Waterproofing Pty Ltd will be held at the offices of Cor Cordis
at One Wharf Lane, Level 20, 171 Sussex Street, in Sydney, NSW,
at Jan. 2, 2019, at 10:30 a.m.

Andre Lakomy and Jason Tang of Cor Cordis were appointed as
administrators of Sydney Waterproofing on Dec. 18, 2018.


WYEE BRICKLAYING: First Creditors' Meeting Set for Jan. 2
---------------------------------------------------------
A first meeting of the creditors in the proceedings of Wyee
Bricklaying Pty. Limited will be held at the offices of Cor
Cordis, at One Wharf Lane, at Level 20, 171 Sussex Street, in
Sydney, NSW, at Jan. 2, 2019, at 11:00 a.m.

Andre Lakomy and Jason Tang of Cor Cordis were appointed as
administrators of Wyee Bricklaying on Dec. 19, 2018.



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B A N G L A D E S H
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BRAC BANK: S&P Affirms 'B+/B' ICRs on Stable Financial Profile
--------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' long-term and 'B' short-term
issuer credit ratings on Bangladesh-based BRAC Bank Ltd. The
outlook on the long-term rating is stable.

S&P said, "We affirmed the rating because we expect BRAC Bank's
above-industry average profitability and capital buffers will
sustain its credit profile over the next 12-18 months. At the
same time, we believe Bangladesh's broader banking system faces
increasing pressure on earnings capacity, from an already
moderate base. We have reflected the increased systemwide risks
in our revised BICRA scores on Bangladesh.

"By our estimates, BRAC Bank's pre-diversification risk-adjusted
capitalization will remain above 5% over the next 12-24 months.
In our view, the bank is implementing prudent capital strategy,
which includes completion of a stake sale in its subsidiary bKash
Ltd., and plans to retain all profits going ahead. We also expect
loan growth to slow over the next 12-18 months, from 20% year-on-
year growth in the first half of 2018.

"The bank is likely to increase its franchise in Bangladesh's
competitive yet underpenetrated financial services industry. We
expect expansion and better use of BRAC Bank's distribution
network to drive growth. In our view, the bank will continue to
invest in its branch infrastructure, cyber security and
technology initiatives.

BRAC Bank's profitability is likely to decline from 2017 levels.
Interest spreads are declining as funding costs rise amid fierce
competition for deposits among banks and alternate saving
instruments, such as the government's national savings
certificates. That said, S&P expects BRAC bank to maintain above-
industry profitability owing to higher spreads on its small and
midsize enterprise and retail loans, as well as fee income from
mobile banking and trade finance. The bank's ratio of core
earnings to average assets averaged about 1.3% over the past five
years, much better than the industry average of 0.7%. S&P expects
BRAC Bank's credit cost to remain broadly stable, given a
relatively low nonperforming loans and adequate provisioning
levels.

S&P said, "In our opinion, industry risk for banks in Bangladesh
has increased. This in because of heightened profitability
pressures, given high and increasing stressed assets in the
system, and generally low provisioning levels. New domestic banks
will start operating in the country over the next 12 months,
thereby further increasing competitive intensity.

"The stable outlook on BRAC Bank reflects our view that the bank
will steadily navigate competitive operating conditions in
Bangladesh and maintain its financial profile over the next 12-18
months.

"We could upgrade BRAC Bank if its profitability stabilizes at a
level that is higher than the industry average, and the bank
improves its market share in a sustainable fashion without
strategic or operational missteps. This could be shown by
sustained good asset quality metrics and prudential underwriting
standards over the next 12-18 months.

"We see no downside risk given substantial capital buffers at the
current rating level."

  BICRA* SCORE SNAPSHOT

  *Banking Industry and Country Risk Assessment: Bangladesh

                                       To                From
Anchor                                b+                bb-
  BICRA Group*                         9                 8

  Economic risk*                       8                 8
   Economic resilience**               5                 5
   Economic imbalances**               2                 2
   Credit risk in the economy**        6                 6

  Industry risk*                       9                 8
   Institutional framework**           6                 6
   Competitive dynamics**              6                 5
   System-wide funding**               3                 3
  Trends
   Economic risk trend                 Stable            Stable
   Industry risk trend                 Stable            Stable
  Government Support                   Uncertain
Uncertain

*On a scale of 1 (lowest risk) to 10 (highest risk)
**On a scale of 1 (lowest risk) to 6 (highest risk)



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


CHINA HUIYUAN: Fitch Pulls CCC+ LT IDR Due to Insufficient Info
---------------------------------------------------------------
Fitch Ratings has withdrawn China Huiyuan Juice Group Limited's
Long-Term Foreign-Currency Issuer Default Rating of 'CCC+'. Fitch
has also withdrawn the senior unsecured rating and the rating on
its USD200 million 6.5% senior notes due 2020 of 'CCC+' with
Recovery Rating of 'RR4'. All ratings were on Rating Watch
Negative at the time of withdrawal.

KEY RATING DRIVERS

Fitch has withdrawn the ratings as the agency no longer has
sufficient information to maintain the ratings. Accordingly,
Fitch will no longer provide ratings or analytical coverage for
Huiyuan Juice.

Fitch downgraded Huiyuan Juice to 'CCC+' from 'B' on June 19,
2018 due to growing liquidity risk following a series of events
disclosed in the company's announcements, including revelation of
transactions carried out between Huiyuan Juice and a connected
party, a potential covenant breach, delay in the publication of
the 2017 annual report, suspension of share trading and on-going
forensic investigation since March 2018. Fitch considers Huiyuan
Juice's liquidity position uncertain, with heightened refinancing
risks, due to the effect of these events and challenges to its
general operation due to tight liquidity.

Huiyuan Juice last published its unaudited management accounts
for the year ended December 31, 2017, and the last audited
financials were as of June 30, 2017.

DERIVATION SUMMARY

Not applicable

KEY ASSUMPTIONS

Not applicable

RATING SENSITIVITIES

No longer relevant as the ratings have been withdrawn.

LIQUIDITY

Not applicable.


CHINA HUIYUAN: Moody's Withdraws Caa1 CFR Due to Inadequate Info
----------------------------------------------------------------
Moody's Investors Service has withdrawn China Huiyuan Juice Group
Limited's Caa1 corporate family rating and the Caa1 senior
unsecured rating assigned to its USD200 million 6.5% senior notes
due 2020.

At the time of the withdrawal, the ratings outlook was negative.

RATINGS RATIONALE

Moody's has decided to withdraw the ratings because it believes
it has insufficient or otherwise inadequate information to
support the maintenance of the ratings.

Moody's points out that to date, China Huiyuan has not released
its 2017 audited annual report and its 2018 interim results. The
forensic investigation into certain transactions carried out
between China Huiyuan and its connected persons as part of the
trading resumption conditions imposed by the Hong Kong Stock
Exchange is still in progress.

Listed on the Hong Kong Stock Exchange in 2007, China Huiyuan
Juice Group Limited is one of the major players in China's juice
market. The company has produced and sold fruit juices, fruit and
vegetable juices and other beverages for more than 20 years.

The company's chairman, Mr. Zhu Xinli held approximately 65.03%
of shareholdings in China Huiyuan at June 30, 2017, according to
the company's 2017 interim report.


CIFI HOLDINGS: Fitch Rates Proposed USD Sr. Notes 'BB(EXP)'
-----------------------------------------------------------
Fitch Ratings has assigned China-based property developer CIFI
Holdings Co. Ltd.'s (BB/Stable) proposed US dollar offshore
senior notes an expected rating of 'BB(EXP)'.

The final rating is contingent on the receipt of final documents
conforming to information already received. The notes are rated
at the same level as CIFI's senior unsecured debt as they
represent its direct, unconditional, unsecured and unsubordinated
obligations. CIFI intends to use the net proceeds from the
proposed US dollar senior notes mainly to refinance its existing
debt and for working capital.

KEY RATING DRIVERS

Stable Leverage on Strong Performance: Leverage, measured by net
debt/adjusted inventory with proportionate consolidation of joint
ventures (JV) and associates, was at 42.6% in 1H18 (2017: 39.0%),
which is appropriate for CIFI's rating. Fitch expects leverage to
fall slightly in the next 12-18 months as the company moderates
its land acquisition pace after expanding its land acquisition
activity in 2017. Total land bank was 40 million square metres
(sq m) in 1H18, with an average cost of CNY6,500/sq m, sufficient
for three to four years of development.

Total contracted sales, including contracted sales by JVs and
associated companies, rose by 49% to CNY118 billion in 10M18.
Fitch believes the company is on track to achieve its target
total contracted sales of CNY140 billion by end-2018.

Healthy Margin: CIFI's EBITDA margin was 20.1% in 1H18, compared
with 26.2% in 2017. The EBITDA margins would have been higher at
30.2% in 1H18 and 28.8% in 2017 after adjusting for an
acquisition revaluation the company started in 2017. CIFI
reclassified certain project companies from non-consolidated JVs
and associates into subsidiaries and revaluated the fair value of
the cost of delivered properties. The accounting effect resulted
in higher cost of goods sold and lower margins.

The acquisition revaluations are likely to continue as CIFI has a
significant number of JVs and associates and will make margins
appear more volatile. Nevertheless, Fitch believes CIFI's
diversified project portfolio across cities of different tiers
allows it to maintain its fast-churn strategy without sacrificing
the overall project margins.

Geographical Diversification: CIFI's diverse presence in the
Yangtze River Delta, Pan Bohai Rim, the central western region
and Guangdong and Fujian provinces provides room for further
expansion. CIFI entered 14 new cities in 7M18, with projects now
spread over 53 cities, helping mitigate risks from local policy
intervention and economies. CIFI boosted land acquisition in
tier-3 cities in 1H18, which are oversupplied, but focused
contracted sales on second-tier and robust third-tier cities,
which have more first-time buyers and upgraders. CIFI's saleable
resources remain well-diversified between cities of different
tiers, providing flexibility to adjust the sales mix for various
market conditions.

Low Funding Costs: CIFI has diversified funding channels,
including onshore bonds and offshore bank loans. The company
issued USD1.4 billion and CNY1.0 billion in senior notes and
HKD2.8 billion in zero-coupon convertible bonds during 2018, with
proceeds used to refinance borrowings. It also signed a 3.5-year
club loan of up to USD0.5 billion in March 2018. Its average
funding cost remained stable at 5.3% in 1H18 (2017: 5.2%), which
should stay low due to CIFI's active capital structure
management, despite tighter liquidity and an unfavourable funding
environment in 2018.

DERIVATION SUMMARY

CIFI's closest peer is Sino-Ocean Group Holding Limited (BBB-
/Stable, standalone: BB+) in terms of contracted sales and land
bank size. Sino-Ocean has continued its geographic focus on tier-
1 and affluent tier-2 cities, while CIFI has increased its focus
on tier-2 and 3 cities. CIFI's leverage of around 40% is similar
to the leverage Fitch expects for Sino-Ocean in 2018. CIFI's
EBITDA margin, after adjusting for the acquisition revaluation,
is higher than Sino-Ocean's 23%-25%, but Fitch expects Sino-
Ocean's attributable recurring EBITDA interest coverage from
investment properties to be at 0.4x, while CIFI's recurring
income is negligible. The one-notch difference between Sino-
Ocean's standalone rating and CIFI's IDR is based on Sino-Ocean's
higher investment-property income.

CIFI's leverage is significantly lower than that of several 'BB'
range peers, including Guangzhou R&F Properties Co. Ltd. (BB-
/Negative) and Beijing Capital Development Holding (Group) Co.,
Ltd. (BBB-/Negative, standalone: BB). CIFI's EBITDA margin is in
line with that of Guangzhou R&F and Beijing Capital Development.
However, its recurring EBITDA interest coverage is lower than
Guangzhou R&F's 0.2x.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within its Rating Case for the Issuer

  - Attributable contracted sales of CNY80 billion in 2018,
    followed by a growth rate of 21% in 2019 and 12% in 2020

  - Attributable land purchases at around 45%-55% of contracted
    sales from 2018-2020

  - Average land acquisition cost of CNY6,000-6,250 per sq m from
    2018-2020

  - 30% dividend payout ratio

RATING SENSITIVITIES

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

  - Leverage, measured by net debt/adjusted inventory, sustained
    at below 30.0% (1H18: 42.6%)

  - Maintaining high cash flow turnover despite the JV business
    model and consolidated contracted sales/debt at over 1.2x
    (1H18: 1.1x)

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

  - Substantial decrease in contracted sales

  - EBITDA margin, not adjusting for the effect of acquisition
    revaluation, sustained at below 25% (1H18: 20%)

  - Net debt/adjusted inventory sustained above 45%

LIQUIDITY

Ample Liquidity: CIFI had unrestricted cash of CNY39.1 billion at
end-1H18, enough to cover short-term debt of CNY15.0 billion. The
company issued several tranches of senior perpetual, senior and
convertible bonds in the past several months and had approved but
unutilised facilities of CNY5.4 billion at end-1H18. This is
sufficient to fund development costs, land premium payments and
debt obligations for the next 18 months.


CIFI HOLDINGS: Fitch Assigns 'BB' Final Rating to USD400MM Notes
----------------------------------------------------------------
Fitch Ratings has assigned China-based property developer CIFI
Holdings (Group) Co. Ltd.'s (BB/Stable) USD400 million 7.625%
offshore senior notes due 2021 a final rating of 'BB'.

The notes are rated at the same level as CIFI's senior unsecured
debt, as they represent its direct, unconditional, unsecured and
unsubordinated obligations. CIFI intends to use the net proceeds
to refinance debt and for working capital. The final rating is in
line with the expected rating assigned on December 16, 2018.

KEY RATING DRIVERS

Stable Leverage on Strong Performance: Leverage, measured by net
debt/adjusted inventory with proportionate consolidation of joint
ventures (JV) and associates, was at 42.6% in 1H18 (2017: 39.0%),
which is appropriate for CIFI's rating. Fitch expects leverage to
fall slightly in the next 12-18 months as the company moderates
its land acquisition pace after expanding its land acquisition
activity in 2017. Total land bank was 40 million square metres
(sq m) in 1H18, with an average cost of CNY6,500/sq m, sufficient
for three to four years of development.

Total contracted sales, including contracted sales by JVs and
associated companies, rose by 49% to CNY131 billion in 11M18.
Fitch believes the company is on track to achieve its target
total contracted sales of CNY140 billion by end-2018.

Healthy Margin: CIFI's EBITDA margin was 20.1% in 1H18, compared
with 26.2% in 2017. The EBITDA margin would have been higher at
30.2% in 1H18 and 28.8% in 2017 after adjusting for an
acquisition revaluation the company started in 2017. CIFI
reclassified certain project companies from non-consolidated JVs
and associates into subsidiaries and revaluated the fair value of
the cost of delivered properties. The accounting effect resulted
in higher cost of goods sold and lower margins.

The acquisition revaluations are likely to continue, as CIFI has
a significant number of JVs and associates, and will make margins
appear more volatile. Nevertheless, Fitch believes CIFI's
diversified project portfolio across cities of different tiers
allows it to maintain its fast-churn strategy without sacrificing
overall project margins.

Geographical Diversification: CIFI's diverse presence in the
Yangtze River Delta, Pan Bohai Rim, central western region and
Guangdong and Fujian provinces provides room for further
expansion. CIFI entered 14 new cities in 7M18, with projects now
spread over 53 cities, helping mitigate risks from local policy
intervention and economies. CIFI boosted land acquisition in
tier-3 cities in 1H18, which are oversupplied, but focused
contracted sales on second-tier and robust third-tier cities,
which have more first-time buyers and upgraders. CIFI's saleable
resources remain well-diversified between cities of different
tiers, providing flexibility to adjust the sales mix for various
market conditions.

Low Funding Costs: CIFI has diversified funding channels,
including onshore bonds and offshore bank loans. The company
issued USD1.4 billion and CNY1.0 billion in senior notes and
HKD2.8 billion in zero-coupon convertible bonds during 2018, with
proceeds used to refinance borrowings. It also signed a 3.5-year
club loan of up to USD0.5 billion in March 2018. Its average
funding cost remained stable at 5.3% in 1H18 (2017: 5.2%), which
should stay low due to CIFI's active capital structure
management, despite tighter liquidity and an unfavourable funding
environment in 2018.

DERIVATION SUMMARY

CIFI's closest peer is Sino-Ocean Group Holding Limited (BBB-
/Stable, standalone: BB+) in terms of contracted sales and land
bank size. Sino-Ocean has continued its geographic focus on tier-
1 and affluent tier-2 cities, while CIFI has increased its focus
on tier-2 and 3 cities. CIFI's leverage of around 40% is similar
to the leverage Fitch expects for Sino-Ocean in 2018. CIFI's
EBITDA margin, after adjusting for an acquisition revaluation, is
higher than Sino-Ocean's 23%-25%, but Fitch expects Sino-Ocean's
attributable recurring EBITDA interest coverage from investment
properties to be at 0.4x, while CIFI's recurring income is
negligible. The one-notch difference between Sino-Ocean's
standalone rating and CIFI's IDR is based on Sino-Ocean's higher
investment-property income.

CIFI's leverage is significantly lower than that of several 'BB'
range peers, including Guangzhou R&F Properties Co. Ltd. (BB-
/Negative) and Beijing Capital Development Holding (Group) Co.,
Ltd. (BBB-/Negative, standalone: BB). CIFI's EBITDA margin is in
line with that of Guangzhou R&F and Beijing Capital Development.
However, its recurring EBITDA interest coverage is lower than
Guangzhou R&F's 0.2x.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within its Rating Case for the Issuer

  - Attributable contracted sales of CNY80 billion in 2018,
    followed by a growth rate of 21% in 2019 and 12% in 2020

  - Attributable land purchases at around 45%-55% of contracted
    sales from 2018-2020

  - Average land acquisition cost of CNY6,000-6,250 per sq m from
    2018-2020

  - 30% dividend payout ratio

RATING SENSITIVITIES

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

  - Leverage, measured by net debt/adjusted inventory, sustained
    at below 30.0% (1H18: 42.6%)

  - Maintaining high cash flow turnover despite the JV business
    model and consolidated contracted sales/debt at over 1.2x
    (1H18: 1.1x)

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

  - Substantial decrease in contracted sales

  - EBITDA margin, not adjusting for the effect of acquisition
    revaluation, sustained at below 25% (1H18: 20%)

  - Net debt/adjusted inventory sustained above 45%

LIQUIDITY

Ample Liquidity: CIFI had unrestricted cash of CNY39.1 billion at
end-1H18, enough to cover short-term debt of CNY15.0 billion. The
company issued several tranches of senior perpetual, senior and
convertible bonds in the past several months and had approved but
unutilised facilities of CNY5.4 billion at end-1H18. This is
sufficient to fund development costs, land premium payments and
debt obligations for the next 18 months.


EHI CAR SERVICES: Fitch Affirms B+ LT IDR, Outlook Negative
-----------------------------------------------------------
Fitch Ratings has affirmed eHi Car Services Limited's Long-Term
Issuer Default Rating (IDR) and senior unsecured rating at 'B+'.
The Outlook is Negative. All ratings have been removed from
Rating Watch Negative (RWN), on which they were placed on
November 7, 2018.

eHi has successfully refinanced the USD200 million bonds that
matured in December 2018, resulting in the RWN being resolved.

The rating affirmation reflects the company's leverage and market
position against an uncertain regulatory environment. The
Negative Outlook reflects Fitch's expectation that meaningful
deleveraging is unlikely.

KEY RATING DRIVERS

Refinancing Completed: eHi has successfully refinanced the USD200
million bonds that matured in December 2018. The company
announced on December 7, 2018 that it had entered into a USD195
million syndicated loan facility agreement with a three-year term
to be repaid in instalments. The proceeds of the loan facility
were used to repay the maturing notes. The successful execution
of the syndicated credit facility reduces the company's near-term
refinancing risk and introduces deleveraging targets.

Plans to Restore Transparency: The frequency of eHi's financial
information disclosure deteriorated in 2018 following its
privatisation proposals. The company says that it is addressing
the issue and plans to issue full-year 2018 financial statements
within the next six months. Fitch believes eHi will resume its
previous financial disclosure practices in 2019.

Higher Payables from Purchase Strategy: eHi started partnering
with suppliers for car-purchase arrangements with lower initial
cash outlays and pre-determined buyback terms in 2017, and
expects such arrangements to make up an increasing portion of its
fleet expansion plans in 2019 and 2020. This is likely to ease
cash-flow pressure from rapid expansion, but could also
significantly increase payables, which Fitch may deem as debt in
nature.

Potential Privatisation Plans Unresolved: eHi's proposed
privatisation plan, led by the chairman, current shareholder,
Crawford/Enterprise Rent-a-Car and MBK Partners, a private equity
firm, has been delayed and there is no clarity on the timing or
likelihood of the completion. A rival consortium backed by
Ctrip.com International, Ltd. has tabled an alternative non-
binding takeover offer.

DERIVATION SUMMARY

eHi has a smaller operating scale and weaker financial profile
compared with other Fitch-rated car-rental operators, such as
Localiza Rent a Car S.A. (BB/Stable). No Country Ceiling, parent
and subsidiary or operating environment aspects affect the
rating.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within its Rating Case for the Issuer

  - Net addition of 10,300 vehicles in 2018 and 2019 (2017:
    8,000)

  - Stable average daily net revenue per available car

  - EBITDA margin of 46%-48% in 2018-2021 (2017: 46%)

  - Proposed privatisation not included in base-case assumptions

RATING SENSITIVITIES

Developments that May, Individually or Collectively, Lead to a
Stable Outlook

  - Meaningful deleveraging without comprising its business
    profile

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

  - Total debt with equity credit/operating EBITDA above 4.5x as
    at end-2018 (2017: 4.7x)

  - FFO adjusted net leverage sustained above 4.5x (2017: 4.3x)

  - Evidence of sustained deterioration in market position

LIQUIDITY

Refinancing Improves Liquidity: Fitch expects a large drop in
short-term debt following the successful refinancing of eHi's
December 2018 bond. Near-term refinancing needs have also fallen.

FULL LIST OF RATING ACTIONS

eHi Car Services Limited

  - Long-Term Foreign-Currency IDR affirmed at 'B+', Outlook
    Negative; off RWN

  - Senior unsecured rating affirmed at 'B+' with a Recovery
    Rating of 'RR4'; off RWN

  - USD400 million 5.875% notes due 2022 affirmed at 'B+' with
    a Recovery Rating of RR4; Off RWN


FANTASIA HOLDINGS: Moody's Assigns B3 Rating to New USD Sr. Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned a B3 senior unsecured debt
rating to the proposed USD senior notes to be issued by Fantasia
Holdings Group Co., Limited (B2 negative).

The company plans to use the proceeds to refinance its existing
indebtedness.

RATINGS RATIONALE

"The proposed notes will not have an immediate impact on
Fantasia's credit metrics, because the proceeds will mainly be
used for refinancing," says Celine Yang, a Moody's Assistant Vice
President and Analyst.

In addition, the proposed issuance will lengthen the company's
debt maturity profile.

Fantasia's B2 corporate family rating (CFR) reflects the
company's: (1) track record in property development in the
Chengdu-Chongqing Economic Zone and the Pearl River Delta; and
(2) stable recurring income from its property management, rental
and hotel management business.

At the same time, Fantasia's CFR is constrained by its: (1) small
scale and high geographic concentration, which will result in a
higher volatility in its performance; and (2) weak financial
management, as shown by its higher reliance on short-term
funding.

Moody's expects Fantasia's revenue/adjusted debt will remain weak
at around 35%-38% in 2019 from 30% for the 12 months to June 30,
2018. The slight improvement is mainly due to the company's
likely revenue increase as a result of the contracted sales
growth in the past 2-3 years.

Moody's expects that Fantasia's homebuilding EBIT/interest
expense will continue to register 1.1x--1.2x in 2019, considering
the growth in its debt levels and rising borrowing costs.

These leverage and interest coverage levels remain low for its B2
CFR.

The negative rating outlook reflects Moody's concern that
Fantasia's refinancing risk will remain elevated in 2019, against
the backdrop of higher financing costs onshore and offshore.
Specifically, the company will have USD440 million 364-day
offshore senior notes, CNH 1.6 billion offshore notes and RMB1.7
billion onshore corporate bonds maturing in 2019.

The B3 senior unsecured debt rating is one notch lower than the
CFR due to structural subordination risk.

This risk reflects the fact that the majority of claims are at
the operating subsidiaries. These claims have priority over
Fantasia's senior unsecured claims in a bankruptcy scenario. In
addition, the holding company lacks significant mitigating
factors for structural subordination. As a result, the expected
recovery rate for claims at the holding company will be lower.

Upward rating pressure is unlikely in the near term, given the
negative outlook.

Nevertheless, Moody's could change Fantasia's negative rating
outlook to stable if the company: (1) improves its debt maturity
profile and reduces its refinancing risk; and (2) improves its
credit metrics, such that revenue to adjusted debt rises above
40% and EBIT/interest improves to 1.5x or higher on a sustained
basis.

Downward rating pressure could emerge if Fantasia: (1) fails to
improve its refinancing and liquidity risk; and (2) contracted
sales falls and the company's credit metrics weaken, with
EBIT/interest failing to recover to above 1.5x.

The principal methodology used in this rating was Homebuilding
And Property Development Industry published in January 2018.

Fantasia Holdings Group Co., Limited is a property developer in
China (A1 stable). The company mainly develops three types of
properties: (1) urban commercial complexes; (2) boutique upscale
residences; and (3) mid- to high-end residences.

At June 30, 2018, the company's land bank totaled 11.6 million
square meters in planned gross floor area - excluding a land bank
of about 6.6 million square meters under a framework agreement -
located mainly in the Chengdu-Chongqing Economic Zone and the
Pearl River Delta.


KANGDE XIN: Moody's Downgrades CFR to B3, Outlook Negative
----------------------------------------------------------
Moody's Investors Service has downgraded to B3 from B1 the
corporate family rating of Kangde Xin Composite Material Group
Co., Ltd. and backed senior unsecured bond rating of Top Wise
Excellence Enterprise Co., Ltd.

The rating outlook is negative.

These actions conclude Moody's review for downgrade initiated on
November 2, 2018.

RATINGS RATIONALE

"The downgrade reflects our concern that the deteriorating
liquidity profile of KDX's largest shareholder and the continued
elevated share pledge ratio by the same shareholder increases the
risks of refinancing and change of control at KDX," says Gloria
Tsuen, a Moody's Vice President and Senior Credit Officer.

Repeated disclosure issues raised by regulators relating to the
largest shareholder also reflect potential inadequacies in the
company's corporate governance that may hurt KDX's ability to
maintain funding access.

"As the operating environment becomes more challenging, a
weakening in KDX's ability to refinance will further reduce its
net cash position, increase liquidity risks and may impact its
business operations," adds Tsuen

KDX's largest shareholder, Kangde Investment Group Co., Ltd., had
pledged around 93% of its KDX shares as of November 5, 2018.

As announced publicly, due to its high leverage and weak
liquidity, it is now in discussions with Zhangjiagang City
Investment and Development Group Co., Ltd. and Soochow Securities
Co., Ltd. for liquidity support.

However, the amount potentially provided by the two new strategic
partners will only cover a portion of Kangde Investment's share
pledge value, and the risk of a change of control -- which will
accelerate debt repayments and impact KDX's operations -- remains
high.

Moody's is also concerned about KDX's information disclosures in
its dealings involving Kangde Investments. The China Securities
Regulatory Commission (CSRC) is continuing its investigation,
initiated since October, into potential information disclosure
violations by KDX and its two largest shareholders.

In addition, on November 22, 2018, the Shenzhen Stock Exchange
publicly criticized KDX for failing to disclose that, in its
carbon fiber joint venture involving Kangde Investment, whereas
KDX had injected cash equity, Kangde Investment was allowed to
inject assets instead of cash.

KDX's 3Q 2018 financial statements showed a weakening operating
performance as increasing economic uncertainties dampened sales
to downstream customers. Its net cash position also narrowed to
RMB2.5 billion at the end of September 2018 from RMB4.4 billion
at the end of 2017, as the company increased its capital
spending.

KDX's B3 rating mainly reflects the drag by its largest
shareholder on its standalone steady credit profile. Such a drag
largely offsets KDX's technological capabilities and strengths
from its integrated business model in its optical film
operations.

The negative outlook on KDX's rating reflects Moody's expectation
that the weakening operating environment and shareholder drag
could together affect KDX's funding access and weaken the
company's financial profile.

The rating outlook could be revised to stable if (1) its largest
shareholder's financial position meaningfully improves; (2) the
share pledge ratio of the same shareholder declines significantly
in a sustained manner; and (3) CSRC investigation is closed with
no negative findings or development.

The rating could be downgraded if (1) its largest shareholder
fails to improve its financial position and reduce its share
pledge; and hence the change of control risk remains elevated;
(2) KDX's liquidity weakens, or (3) upon a prolonged CSRC
investigation or if the investigation is completed with negative
findings.

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

Established in 2001 and listed on the Shenzhen Stock Exchange
since 2010, Kangde Xin Composite Material Group Co., Ltd. is a
leading manufacturer of optical and pre-coated laminating films
globally.

KDX was 24% owned by its parent company, Kangde Investment Group
Co., Ltd., and 76% by public shareholders at the end of September
2018. The company's founder and chairman, Yu Zhong, owns 80% of
Kangde Investment Group.


LOGAN PROPERTY: Fitch Assigns BB- Rating to US$370MM Sr. Notes
--------------------------------------------------------------
Fitch Ratings has assigned China-based Logan Property Holdings
Company Limited's (BB-/Stable) USD370 million 8.75% senior notes
due 2020 a final 'BB-' rating. The notes are rated at the same
level as Logan's senior unsecured debt rating as they constitute
its direct and senior unsecured obligations.

Logan's ratings are supported by the company's well-located land
bank in the city of Shenzhen and the Guangdong region, which
provides the company with stronger contracted sales and margin
visibility over the next 18 months compared with similarly sized
rated peers.

KEY RATING DRIVERS

Larger Sales Scale: Logan's contracted sales rose by 72% to
CNY59.9 billion in 10M18, following a 68% increase in contracted
floor space sold to 3.3 million square metres (sqm) and a 2% rise
in the contracted average selling price (ASP) to CNY17,904/sqm.
Fitch expects Logan's annual contracted sales to increase to
CNY67.0 billion in 2018, from CNY29.0 billion in 2016 and CNY43.0
billion in 2017.

Wider Margin: Logan's EBITDA margin expanded to 33% in 2017, from
30% in 2016. Fitch expects profitability to remain high in the
next two to three years, supported by the start of earnings
recognition from Logan's high-margin Shenzhen and Huizhou-city
projects, which were presold in 2016-2017, and higher contracted
sales ASP in 2017. The EBITDA margin is likely to be maintained
at above 30% in 2018-2019.

Lower Concentration Risk: Fitch believes Logan's well-located
land bank and expansion into new cities, including Hong Kong and
Singapore, in the last 12-18 months mitigate concentration risk
over the next year or two. Logan's contracted sales are highly
concentrated in Guangdong province, with Shenzhen and Huizhou
accounting for around 70% of 1H18 contracted sales. This leaves
Logan's sales dependent on the local economy and policy changes,
compared with developers that have more geographically diverse
operations. Fitch expects Shenzhen to continue to account for
40%-50% of total attributable contracted sales in 2018.

High Leverage Pressures Rating: Logan's leverage, as measured by
net debt/adjusted inventory that proportionately consolidates
joint ventures (JVs) and associates, was around 50% at end-June
2018 (end-2017: 48%). This was up from 29% at end-2015 due to the
acquisition of well-located sites in Shenzhen during 2015-2016 to
reposition the land bank. The company spent CNY15.7 billion on
replenishing its land bank in 1H18. Logan's land
acquisition/contracted sales ratios were 58% in 2017, 42% in 2016
and 55% in 2015. Fitch expects the company to spend 35%-45% of
consolidated contracted sales on land replenishment in 2018-2019
and to maintain a land bank sufficient for five to six years of
development. This will keep leverage high at 45%-50% in the next
12-18 months.

DERIVATION SUMMARY

Logan's contracted sales are higher than those of other 'BB-'
rated Chinese developers, which have contracted sales of CNY28
billion-40 billion, including KWG Group Holdings Limited (BB-
/Stable), China Aoyuan Group Limited (BB-/Positive) and Yuzhou
Properties Company Limited (BB-/Stable), and are comparable with
higher-rated CIFI Holdings (Group) Co. Ltd.'s (BB/Stable) CNY46
billion. Future Land Development Holdings Limited (BB/Stable) has
contracted sales of CNY95 billion.

Logan's EBITDA margin is also similar to that of margin-focused
homebuilders, such as KWG and Yuzhou. Logan's leverage increased
to 48% at end-2017, which is comparable with the 38%-42% of 'BB-'
rated Chinese developers, such as KWG, Yuzhou and Times China
Holdings Limited (BB-/Stable).

No Country Ceiling or parent and subsidiary aspects affect the
rating. Operating environment risks make it unlikely for
companies in this sector to be rated above 'BBB+'.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within its Rating Case for the Issuer

  - contracted sales of CNY67 billion in 2018 and CNY94 billion
    in 2019

  - EBITDA margin, with capitalised interest excluded from cost
    of sales, of 31% in 2018-2019

  - 35%-45% of contracted sales proceeds to be spent on land
    acquisitions in 2018-2019 to maintain a land bank sufficient
    for five to six years of development

RATING SENSITIVITIES

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

  - no substantial decline in contracted sales

  - EBITDA margin sustained above 30%

  - leverage, as measured by net debt/adjusted inventory that
    proportionately consolidates JVs and associates, sustained
    below 40%

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

  - leverage sustained above 50%

  - EBITDA margin below 25% for a sustained period

LIQUIDITY

Sufficient Liquidity: Logan had total cash on hand of CNY27.6
billion, including CNY2.2 billion of restricted cash and pledged
deposits, as of end-June 2018, sufficient to cover short-term
debt of CNY17.8 billion maturing in one year (consisting of bank
and other loans of CNY8.3 billion, onshore corporate bond due
2019 of CNY6.5 billion and senior notes due 2018 of CNY3.0
billion).


OFO INC: Mulled Filing for Bankruptcy as Cash Dried Up
------------------------------------------------------
Bloomberg News reports that Ofo Inc., a pioneer of China's bike-
sharing boom, considered throwing in the towel and filing for
bankruptcy in what would have been the country's biggest startup
failure in years.

According to Bloomberg, Chief Executive Officer Dai Wei laid out
the company's challenges in an impassioned letter to employees on
Dec. 19, from customers seeking deposit refunds to suppliers
demanding unpaid bills. While the 28-year-old weighed bankruptcy
after mis-reading the market environment, he suggested such a
move was no longer an option, the report relays.

Bloomberg relates that Mr. Dai's emotional missive caps a
horrendous year for a startup that epitomized the can-do nature
of China's technology scene and raised more than $2 billion in
funding from investors. Backed by some of the country's biggest
tech giants from Alibaba Group Holding Ltd. to Didi Chuxing, Ofo
helped spur a trend of dockless bike-sharing from Beijing to
Paris. The four-year-old company, which was said to seek a $3
billion valuation at its peak, at one point handled more than 25
million bike rides a day and had planned to blanket global
capitals from London to Moscow.

But it also came to symbolize the industry's excesses. Along with
arch-rival Mobike, Ofo's canary-yellow bicycles piled up in
junkyards across China as dozens of competitors jumped into the
fray, fomenting a glut and pricing war that ultimately killed off
all but a handful of players.

"In the past half-year, thanks to cash flow and media pressures,
we've expended effort without reward. It's especially so after
the company failed to raise new funding," Bloomberg quotes
Mr. Dai as saying in a memo shared by a company representative.
"I considered, countless times, cutting off all our operational
capital to repay customers and suppliers, even breaking up the
company and filing for bankruptcy. Then no one will have to bear
this enormous burden."

That would have been a remarkable about-face for a company that
clawed its way up from an experimental project for college
students to one of China's most visible startups, the report
says.

Bloomberg notes that Mr. Dai, a Peking University PhD dropout,
founded Ofo in 2014 with four other students and built their
cycling project into a company that operated tens of thousands of
bikes. Shared bicycles rapidly gained favor among students and
commuters tired of inching their way through jam-packed traffic.

Mr. Dai didn't elaborate on how Ofo mis-judged the market, but
the company has said it intends to withdraw from several cities
abroad. Heavy discounts and the need to saturate large cities
with available bikes took a toll: at the height of the bike-
sharing boom, local manufacturer Shanghai Phoenix disclosed an
agreement to supply Ofo with at least 5 million bikes, the report
says.

That same company said in September it was suing Ofo for
CNY68 million in unpaid bills, Bloomberg relates. Long before
that, observers had pointed out flaws in the industry model apart
from unsustainable discounts. The cycles tend to be easy targets
for thieves and vandals, and require massive manpower to maintain
and re-distribute.

For now, Ofo fully intends to soldier on. In his brief memo,
Mr. Dai exhorted his workers to tackle the company's issues head-
on, while conceding the immense pressure his startup is under.

"Every time I think of giving up, I'll see Ofo customers
streaming by on the road, on the way to work or ferrying our
little yellow bikes," Mr. Dai wrote, Bloomberg relays. "That's
when I tell myself, and I want to tell every Ofo person, where
there's life there's hope."


PANDA GREEN: Moody's Cuts CFR to Caa1; On Review for Downgrade
--------------------------------------------------------------
Moody's Investors Service has downgraded Panda Green Energy Group
Limited's corporate family rating to Caa1 from B2 and its senior
unsecured debt rating to Caa2 from B3.

At the same time, the ratings are on review for possible further
downgrade (changed from negative outlook).

RATINGS RATIONALE

"The downgrade of Panda Green's ratings reflects continued high
refinancing pressure with around RMB1.5 billion of debt maturing
in December 2018, as well as other short-term debt of around
RMB2.8 billion due in 2019," says Ada Li, a Moody's Vice
President and Senior Analyst.

Moody's believes Panda Green needs to rely on substantial
external financing to cover its funding needs, due to
insufficient cash-on-hand and operating cash flow over coming
months.

"The ratings downgrade also considers the prolonged weakness in
Panda Green's financial metrics following its aggressive
expansion in 2017, resulting in elevated business risks and weak
debt coverage metrics," adds Li. Such weakness has accentuated
the liquidity pressures facing the company.

Furthermore, the ratings downgrade considers Moody's view that
support from China Merchants New Energy Group -- a company that
is owned by China Merchants Group Limited -- is less likely to be
provided than the rating agency's previous expectation. As such,
the one notch uplift that was previously incorporated in the
ratings has been removed as part of the rating action.

Moody's expects Panda Green's financial metrics to be very weak,
FFO to debt likely to be less than 2%, while interest coverage
(FFO/Interest) will be around 1.6% in 2019. These weak levels,
plus the liquidity pressure facing the company, raise significant
concerns about the company's credit risk.

The senior unsecured debt rating is one notch lower than the CFR,
reflecting subordination risk.

The ratings are on review for possible downgrade, reflecting the
imminent maturing debt that is due in December 2018 and the
uncertainty around Panda Green's ability to refinance the debt.

The review will focus on Panda Green's plan to refinancing the
maturing debt of around RMB1.5 billion in 2018 meet the debt
(consisting of RMB1 billion of convertible bonds and RMB136
million of maturing medium term note), as well as the debt of
approximately RMB2.8 billion that is maturing in 2019. The review
will also consider what support, if any, could be provided by
CMNE and CMG. Finally, the review will incorporate any plans by
Panda Green's to deleverage and reduce its debt load.

The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in May 2017.

Panda Green Energy Group Limited, formerly known as United
Photovoltaics Group Limited, principally engages in solar power
generation in China. At the end of June 2018, Panda Green
reported 2.1GW of gross installed capacity through its
subsidiaries, associates and joint ventures.

Listed on the Hong Kong Stock Exchange, the company as of June
2018 was 22.24% by owned by CMNE and parties acting in concert
with CMNE; and 22.14% owned by China Huarong Asset Management
Co., Ltd. (Huarong, A3 negative).

CMNE in turn is 79.36% owned by China Merchants Group, a
conglomerate that is wholly owned by the State-owned Assets
Supervision and Administration Commission of China's State
Council. Huarong is 63.4% owned by China's Ministry of Finance.


REDSUN PROPERTIES: Fitch Rates US$180MM Sr. Notes Final B
---------------------------------------------------------
Fitch Ratings has assigned China-based Redsun Properties Group
Limited's (B/Positive) USD180 million 13.5% senior notes due 2020
a final 'B' rating.

The notes are rated at the same level as Redsun's senior
unsecured debt as they constitute its direct and senior unsecured
obligations. The assignment of the final rating follows the
receipt of documents conforming to information already received
and is in line with the expected rating assigned on November 26,
2018.

Redsun is a subsidiary of Hong Yang Group Company Limited
(B/Positive). Fitch rates Redsun using a consolidated approach
based on its Parent and Subsidiary Rating Criteria due to the
strong legal and operational linkages between Redsun and Hong
Yang.

The group's ratings are supported by a high-quality land bank,
which focuses on the city of Nanjing, the capital of China's
Jiangsu province, and the Yangtze River Delta. This helps drive
the group's contracted sales growth and better gross profit
margin than those of 'B' rated peers. The group also has higher
recurring income arising from the larger scale of its property-
rental business. The group's improving business profile may be
constrained by the pressure to build up its landbank to pursue
sustained high sales growth. Home purchase restrictions that
affect cities within Jiangsu province also create uncertainty for
the group's contracted sales growth, although selling prices are
likely to be supported by firm demand.

The Positive Outlook reflects Fitch's expectation that the group
will keep to a prudent financial policy for acquiring land and
the IPO of Redsun in July 2018 will allow group leverage to be
maintained below 50% in the next year or two.

KEY RATING DRIVERS

Sales to Continue Rising: Fitch expects the group's land
acquisitions and geographical expansion to drive higher sales and
forecasts annual attributable contracted sales to reach CNY27
billion-30 billion in 2018-2019, after increasing by 18% to CNY14
billion in 2017 on an 8% jump in the average selling price to
CNY15,261 per square metre (sq m) and 9% rise in contracted floor
space sold to CNY890,000/sq m. The group has diversified its
landbank to the cities of Xuzhou, Bozhou, Yangzhou, Taixing and
Jurong in Jiangsu province, Ma'anshan in Anhui province, Huzhou
in Zhejiang province as well as Wuhan in central China and
Chongqing in western China.

Niche Property-Rental Business: The group's investment-property
portfolio, which mainly comprises malls for retail and the
wholesale of household construction and decoration materials,
enjoys a niche market position and nearly full occupancy. The
portfolio provides a recurring EBITDA/interest coverage ratio of
0.3x-0.4x, higher than that of 'B' rated peers. Fitch expects the
completion of renovations at the Nanjing Hong Yang Plaza retail
mall in 2017 and still-resilient demand from consumers for
furniture and decorations to continue supporting Hong Yang's
rental revenue growth and ratings.

Margins to Stay Healthy: Fitch expects a group EBITDA margin of
25%-26% in 2018-2019 as the high-margin Nanjing projects will
provide support over the next 18-24 months. This will be partly
offset by revenue recognition from more projects outside Nanjing,
which will have lower margins from 2018, possibly higher
operating costs on the group's geographical expansion and pre-
listing expenses for Redsun. The group's EBITDA margin rose to
37% in 2017, from 31% in 2016, following the delivery of certain
Nanjing projects acquired at low cost in the early 2000s, with
gross profit margins as high as 40%-70%.

Land Acquisitions Remain Controlled: The group spent CNY11.8
billion on landbank replenishment in 8M18, equivalent to 0.4x of
contracted sales value (2017: 0.9x, 2016: 0.8x). Group leverage,
measured by net debt/adjusted inventory that proportionately
consolidates joint ventures and associates, was about 40% at end-
June 2018 (2017: 44%, 2016: 40%). The group had attributable
landbank of about 7.2 million sq m at end-June 2018, sufficient
for three to four years of development. Fitch expects the larger
landbank will allow the company to control its acquisitions and
keep its ratio of land acquisitions/contracted sales at 0.8x in
the next two to three years and group leverage below 50% in the
next year or two.

DERIVATION SUMMARY

Redsun's ratings are based on the consolidated profile of its
parent, Hong Yang, due to the strong legal and operational
linkages between the two entities. The group's business profile
is similar to that of 'B' category peers. Ronshine China Holdings
Limited (B+/Stable) and Zhenro Properties Group Limited
(B/Positive) are Hong Yang's closest peers as both companies
focus on first-and second-tier cities in the Yangtze River Delta
region. Hong Yang has a smaller contracted sales scale and
landbank than Ronshine and Zhenro, while its leverage, defined by
net debt/adjusted inventory, is higher than that of Ronshine but
comparable with that of Zhenro.

The group's significant investment-property base is a credit
strength compared with other 'B' category homebuilders. Its
investment property recurring EBITDA/gross interest of around
0.3x-0.4x is comparable with that of Yida China Holdings Limited
(B/Stable), a business-park developer that generated
significantly lower attributable contracted sales of CNY5.6
billion in 2017.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within its Rating Case for the Issuer

  - Attributable property contracted sales of CNY27 billion
    in 2018 and CNY40 billion in 2019 (2017: CNY14 billion)

  - EBITDA margin, excluding capitalised interest from cost of
    goods sold, of 25%-26% in 2018-2019 (2017: 37%)

  - An average of 80% of contracted sales proceeds to be spent
    on land acquisition in next two to three years to maintain
    a landbank sufficient for three to four years of development
    (2017: 85% of contracted sales)

RATING SENSITIVITIES

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

  - EBITDA margin, excluding capitalised interest from cost of
    goods sold, sustained at 20% or above

  - Leverage, measured by net debt/adjusted inventory that
    proportionately consolidates joint ventures and associates,
    sustained below 50%. (All the ratios here are based on Hong
    Yang's consolidated financial data)

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

  - Failure to sustain healthy attributable sales growth and
    maintain the positive rating sensitivities over the next
    12-18 months will lead to the Positive Outlook reverting
    to Stable

LIQUIDITY

Sufficient Liquidity: The group had a cash balance of CNY5.6
billion, including restricted cash and pledged deposits of CNY3.0
billion, and unused bank facilities of CNY5.0 billion as at end-
June 2018, sufficient to cover short-term borrowings of CNY9.0
billion.


RONSHINE CHINA: Fitch Assigns B+(EXP) Rating to New USD Notes
-------------------------------------------------------------
Fitch Ratings has assigned Ronshine China Holdings Limited's
(B+/Stable) proposed US dollar senior notes a 'B+(EXP)' expected
rating with a Recovery Rating of 'RR4'. The notes are rated at
the same level as Ronshine's senior unsecured rating because they
are unconditionally and irrevocably guaranteed by the company.

Ronshine's ratings reflect its high quality and diversified land
bank, which supported its fast contracted-sales expansion in 2017
and 1H18. The company is on track to reach its target total
contracted sales of CNY120 billion in 2018. Its ratings are
constrained by its sustained moderately high leverage of just
above 50%, as defined by net debt to adjusted inventory. Fitch
believes Ronshine will need to replenish its land bank
continuously at market prices to sustain its scale, limiting its
ability to deleverage to below 45%, the level that will trigger
positive rating action.

KEY RATING DRIVERS

Faster Scale Expansion: Ronshine's total contracted sales grew
104% yoy to CNY50 billion in 2017, and 76% to CNY55 billion in
1H18. Proactive land acquisitions in 2016 and 2017 have provided
the company with ample saleable resources and it is also on track
to achieve its total contracted sales target of CNY120 billion
(equivalent to Fitch's estimated consolidated contracted sales of
CNY84 billion in 2018) with CNY180 billion in total saleable
resources. Ronshine's focus on the Yangtze River Delta with
exposure to cities that are benefitting from spillover demand
from top-tier cities was a key driver for the company's strong
sales growth, which is likely to continue in 2018.

High Quality, Diversified Land Bank: Ronshine's attributable land
bank increased slightly to 13 million sq m by June 30, 2018 from
12.66 million sq m as of end-2017. Its land-bank portfolio is
well-diversified, covering 38 cities in China and focusing on
Tier 1 and 2 cities, which accounted for 57.5% of its land bank
by area. Fitch believes Ronshine's diversified land bank has
mitigated the impact from tighter home-purchase restriction
policies in many high-tier cities. The company entered new cities
in 2017, including Chengdu, Tianjin, Guangzhou, Chongqing, Ningbo
and Zhengzhou as well as lower-tiered Longyan, Putian, Jinhua,
Shaoxing and Quzhou. Ronshine also entered the Qingdao market in
2018.

Margin Recovery: Ronshine's EBITDA margin, after adding back
capitalised interest in cost of goods sold (COGS), recovered to
29% in 1H18 from 20% in 2017. The weak EBITDA in 2017 was due to
the impact from the revaluation of inventory to fair value as the
company made a few acquisitions in 2017. Fitch expects the effect
to diminish as the company's scale expands. Ronshine's average
land-bank cost was CNY6,463 per sq m, which accounted for 30% of
its contracted average selling price in 1H18. Ronshine's land
cost appears reasonable in light of its high-quality land bank,
which should sustain its EBITDA margin at around 25%-30%.

Leverage Lowered; Still Constrains Ratings:  Ronshine's leverage,
measured by net debt/adjusted inventory including guaranteed debt
for its joint ventures (JVs) and associates, fell to 53.4% by
June 30, 2018, from 56.6% at end-2017. Management expects to
deleverage further as the company's budget for land acquisition
will be lowered to about 30% of contracted sales proceeds in
2018, from about 70% in 2017, and it plans to keep the proportion
at 30%-50% in 2018-2020 to maintain its contracted sales scale.
However, Ronshine's leverage is likely to stay at about 50%,
which is high among 'B+' rated peers.

DERIVATION SUMMARY

Ronshine's consolidated contracted sales scale of about CNY80
billion per year and diversified land bank in China are
equivalent to other 'BB-' rated homebuilders, such as Yuzhou
Properties Company Limited (BB-/Stable). However, Ronshine's
leverage of 50%-55% is much higher than 'BB-' rated peers, which
usually have a leverage of below 45%.

Ronshine is well-positioned on scale and land-bank quality
relative to Guangdong Helenbergh Real Estate Group Co., Ltd.
(Helenbergh, B+/Stable) but its leverage of 56.6% at end-2017 and
53.4% at end-June 2018 were higher than Helenbergh's 43% at end-
2017. The company has similar scale as 'B' category peers such as
Yango Group Co., Ltd. (B/Positive) and Zhenro Properties Group
Limited (B/Positive), although Ronshine's leverage is lower.
Ronshine's normalised EBITDA margin (adding back capitalised
interest in COGS) of about 20%-25% is comparable with that of
Zhenro and Yango.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within its Rating Case for the Issuer

  - Total contracted sales of CNY122 billion in 2018 and
    CNY157 billion in 2019 (1H18: CNY55 billion)

  - EBITDA margin, after adding back capitalised interest in
    COGS, of 25%-30% in 2018-2020 (1H18: 29%)

  - Land acquisitions to account for 30% and 55% of contracted
    sales proceeds in 2018 and 2019, respectively

Recovery Rating assumptions:

  - Ronshine would be liquidated in a bankruptcy because it is
    an asset-trading company.

  - 10% administrative claims.

  - The value of inventory and other assets can be realised in
    a reorganisation and distributed to creditors.

  - A haircut of 25% on net inventory at fair value, as
    Ronshine's EBITDA margin is higher than the industry average.
    This implies its inventory will have a higher liquidation
    value than that of peers.

  - A 30% haircut on receivables, 40% haircut on investment
    properties and 50% haircut on properties, plant and
    equipment.

  - Ronshine's large cash balance is adjusted so that cash in
    excess of its three-month contracted sales is invested in
    new inventories.

  - Based on its calculation of the adjusted liquidation value
    after administrative claims, Fitch estimates the recovery
    rate of the offshore senior unsecured debt to be 59%. Fitch
    has rated the senior unsecured debt at 'B+'/RR4. Under its
    Country-Specific Treatment of Recovery Ratings Criteria,
    China falls into Group D of creditor friendliness and
    instrument ratings of issuers with assets in this group are
    subject to a soft cap at the issuer's IDR.

RATING SENSITIVITIES

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

  - Leverage, measured by net debt/adjusted inventory including
    guaranteed debt for its JVs/associates, sustained below 45%
    (1H18: 53%)

  - EBITDA margin, after adding back capitalised interest in
    COGS, sustained at 25% or above (1H18: 29%)

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

  - Leverage, measured by net debt/adjusted inventory including
    guaranteed debt for its JVs/associates, sustained at above
    55%

  - EBITDA margin, after adding back capitalised interest in
    COGS, sustained below 20%

LIQUIDITY

Sufficient Liquidity: Ronshine had cash balances of CNY20.3
billion at end-June 2018. It issued a total of USD375 million
8.25% senior unsecured notes due 2021 in July and August 2018.
The company should have sufficient liquidity to refinance its
short-term debt of CNY21.1 billion.


SHANGHAI HUAYI: Moody's Alters Outlook on Ba1 CFR to Positive
-------------------------------------------------------------
Moody's Investors Service has changed to positive from stable the
outlook on Shanghai Huayi (Group) Company's Ba1 corporate family
rating and the Ba2 senior unsecured rating on the bond issued by
Huayi Finance I Ltd. and guaranteed by Huayi Group (Hong Kong)
Limited.

Moody's has also affirmed the aforementioned ratings.

RATINGS RATIONALE

"The change in outlook to positive from stable reflects our
expectation that Huayi's improved credit profile will likely be
sustained at levels strong for its rating in the next 12-18
months," says Gerwin Ho, a Moody's Vice President and Senior
Credit Officer, and also the International Lead Analyst for
Huayi.

Huayi's adjusted debt/EBITDA improved significantly to 3.6x for
the 12 months to June 2018 from 4.9x in 2017, on the back of a
156% year-on-year improvement in adjusted EBITDA in 1H 2018 and
its stable debt level.

The earnings improvement was mainly driven by increased selling
prices for Huayi's key chemical products, including methanol,
acetic acid, and caustic soda in its energy chemical and advanced
material segments.

However, the gains were offset partially by lower profits from
its chemical services business due to lower sales in the property
sector during the period.

As China's economic growth slows into 2019, Moody's expects
Huayi's adjusted debt/EBITDA will soften to 4.8x-4.9x in the next
12-18 months, driven by lower EBITDA due to moderating price
levels for basic chemicals and ongoing capital spending.

However, such leverage metrics will remain strong for its
baseline credit assessment (BCA) of ba3.

Huayi's Ba1 corporate family rating incorporates its BCA of ba3,
and Moody's assessment of the strong likelihood of support from
and high level of dependence on the Government of China (A1
stable), which provides two notches of uplift to its final
rating.

The strong support assumption reflects Huayi's 100% ownership by
the Shanghai municipal government, its integrated role as a major
supplier to regional chemical industries, and its receipt of
large amounts of subsidies from the government.

The support assessment also considers the reputational and
contagion risks that may arise if it were to default. As such,
Moody's believes the central government would support efforts by
the Shanghai government to prevent Huayi from defaulting and thus
avoid disruption to the domestic financial markets.

These factors are counterbalanced by Huayi's commercially driven
business operations.

The high dependence level reflects the fact that Huayi and the
central government are exposed to common political and economic
event risks.

Huayi's BCA of ba3 reflects the company's (1) large business
scale and established track record in the domestic markets; (2)
diversified product portfolio, which helps mitigate individual
product profitability cycles; and (3) large cash balance and
substantial land reserves in Shanghai.

On the other hand, Huayi's credit profile is constrained by the
company's (1) primary exposure to the commodity chemicals
business; (2) improving but still modest profitability; and (3)
ongoing high capital spending for expanding production
capacities.

Huayi also maintained a large cash balance of RMB13.3 billion at
the end of June 2018, equal to 61% of its total reported debt.
Such a strong cash buffer will provide additional financial
flexibility to support company's ongoing funding and liquidity
needs.

The positive outlook incorporates Moody's expectation that, over
the next 12-18 months: (1) Huayi's credit profile will remain
solid and sustain leverage below 5x; and (2) the company's
important role in Eastern China's chemicals industry, as well as
the Chinese government's ability to provide support, will remain
intact.

Huayi's rating could be upgraded if Huayi (1) demonstrates the
sustainability of its improved financial profile even with a
slowing Chinese economy; and (2) maintains a strong liquidity
profile.

The credit metrics that Moody's will consider for a upgrade
include adjusted debt/EBITDA below 5.5x on a sustained basis.

Moody's could also upgrade Huayi's rating without an improvement
in the company's BCA, due to Moody's assessment of a higher level
of government support for the company.

Huayi's rating could be downgraded if the company (1) is unable
to improve its competitiveness and business sustainability;
and/or (2) fails to maintain a strong liquidity position.

The credit metrics that Moody's will consider for a downgrade
include adjusted debt/EBITDA above 7.0x on a sustained basis.

Moody's could also downgrade Huayi's rating without lowering its
BCA if Moody's assesses that government support for the company
has weakened.

In addition, any reduction in the ownership by the Shanghai
municipal government or a material reduction in Huayi's ownership
in its key listed subsidiaries will also strain the company's
rating.

The methodologies used in these ratings were Chemical Industry
published in January 2018, and Government-Related Issuers
published in June 2018.

Shanghai Huayi (Group) Company is a major producer of commodity
chemicals in China. The company has five major segments: (1)
Energy Chemicals, (2) Advanced Materials, (3) Green Tires, (4)
Specialty Chemicals, and (5) Chemical Services. The company
produces basic chemicals, clean energy products, tires, plastics,
coatings, dyestuffs and pigments, fluorine chemicals, reagents,
additives and chemical equipment. In 2017, Huayi generated total
revenue of around RMB62.7 billion and had reported asset of
RMB69.2 billion.


XINHU ZHONGBAO: Fitch Puts Final B Rating to US$240MM Sr. Notes
---------------------------------------------------------------
Fitch Ratings has assigned Xinhu Zhongbao Co., Ltd.'s (B/Stable)
USD240 million 11.0% senior notes a final rating of 'B' with a
Recovery Rating of 'RR4'.

The notes, which are issued by wholly owned subsidiary, Xinhu
(BVI) 2018 Holding Company Limited and unconditionally and
irrevocably guaranteed by Xinhu Zhongbao, are rated at the same
level as Xinhu Zhongbao's senior unsecured rating because they
will constitute its direct and senior unsecured obligations. The
assignment of the final rating follows the receipt of documents
conforming to information already received. The final rating is
in line with the expected rating assigned on December 11, 2018.

Xinhu Zhongbao's ratings are supported by its high-quality land
bank, which should drive robust contracted sales growth and
higher margins, and are constrained by high leverage. The ratings
are based on a consolidated group financial profile and
incorporate the financial profile of Xinhu Zhongbao's parent,
Zhejiang Xinhu Group Co. Ltd., due to strong legal, operational
and strategic linkages, in line with Fitch's Parent and
Subsidiary Rating Linkage criteria.

KEY RATING DRIVERS

High Leverage Constrains Ratings: Xinhu Zhongbao has reported
persistently high leverage of 60%-70%, as measured by net
debt/adjusted inventory, if including financial joint-venture
investments, due to its primary land and secondary property
development business model. However, the model helps keep land
costs low and provides the company with room to deleverage by
lowering pressure for new land acquisitions. Furthermore, Xinhu
Zhongbao's significant investment in financial institutions keeps
its leverage higher than for most other homebuilders that solely
focus on property development.

Strong Parent and Subsidiary Linkage: Fitch assesses the linkage
between Xinhu Zhongbao and Zhejiang Xinhu Group, which had a
40.18% equity stake in Xinhu Zhongbao, as strong, in view of
historical intragroup asset transfers, upward guarantees provided
by Xinhu Zhongbao to the parent, some management overlap, and
common control of a subsidiary - Xiangcai Securities.

Slower Turnover than Peers: Xinhu Zhongbao's project churn of
0.3x in 2017, as measured by contracted sales/net inventory, is
low compared with the 0.6x average of 'B' rated peers. Fitch
expects most primary land development costs to occur in the next
year or two, which will push up inventory levels, while
contracted sales will kick in to cover property development costs
from late 2019.

Quality Land Bank: The majority of Xinhu Zhongbao's land
designated for secondary development is in key cities around the
Yangtze River Delta, with about 50% of its sellable resources by
value located within the Shanghai inner-ring, which benefits from
limited supply. This supports Fitch's forecast increase in Xinhu
Zhongbao's average selling price when its Shanghai projects are
launched in 2019 or 2020.

Margin Improvement: Fitch expects Xinhu Zhongbao's high-quality
land bank to support robust contracted sales growth and higher
margins. Xinhu Zhongbao's operating EBITDA margin (excluding
capitalised interest in the cost of goods sold), rose to 32% in
2017 from 22% in 2016, mainly due to higher average selling-price
(ASP) recognised. Fitch expects EBITDA margin to stay at about
30% in 2018 and 2019 due to the company's high quality land bank.

Financial Investments Given Credit: Xinhu Zhongbao has been
building up its portfolio of long-term equity investments in
financial institutions, mainly Xiangcai Securities Co., Ltd.,
Shengjing Bank, Bank of Wenzhou Co., Ltd and China CITIC Bank
Corporation Limited (CNCB) (BBB/Stable). Fitch has included these
investments in its leverage calculation as part of adjusted
inventories. Fitch also adjusted Xinhu Zhongbao's net debt to
include a cash credit from its marketable equity investments. The
company has consistently made large marketable equity investments
in the Chinese and Hong Kong equity markets.

DERIVATION SUMMARY

Xinhu Zhongbao's ratings are supported by its high land quality,
which should drive robust contracted sales growth and higher
margins. Its ratings are mainly constrained by high leverage. The
company is rated based on the consolidated financial profile of
the Zhejiang Xinhu Group, in line with Fitch's Parent and
Subsidiary Rating Linkage criteria.

Xinhu Zhongbao has a similar business model and contracted sales
scale as Oceanwide Holdings Co. Ltd. (B-/Stable). Both companies
have high quality land bank in Shanghai with low land costs,
which supports their EBITDA margins. They also have slow churn,
as measured by contracted sales/total debt, and make active
investments in finance institutions. Xinhu Zhongbao has lower
leverage than Oceanwide, as measured by net debt/adjusted
inventory. Xinhu Zhongbao has a larger and better-quality land
bank compared with other Chinese property peers rated in the 'B'
category, such as Redco Properties Group Ltd (B/Stable) and
Guorui Properties Limited (B/Stable). However, its leverage is
higher due to its active investments in financial institutions.

KEY ASSUMPTIONS

Fitch's Key Assumptions within its Rating Case for the Issuer

  - The company will pay down the primary land development
expenditure for its Shanghai projects in the next two to three
years, with limited new land acquisitions in 2018 and 2019.

  - Contracted sales to increase at about 15% per year in 2018
and 2019 (2017: -18%).

  - Contracted sales cash collection ratio of 90%-95% (2017:
95%).

  - EBITDA margin, excluding capitalised interest, rising to 25%-
30% in 2017-2019 due to the booking of Shanghai projects

Recovery Rating assumptions:

  - Xinhu Zhongbao would be liquidated in a bankruptcy because it
is an asset-trading company.

  - 10% administrative claims.

  - The value of inventory and other assets can be realised in a
reorganisation and distributed to creditors.

  - A haircut of 25% on net inventory at fair value, as Xinhu
Zhongbao's EBITDA margin is higher than the industry average.
This implies its inventory will have a higher liquidation value
than that of peers.

  - A 40% haircut to investment properties and 50% haircut to
properties, plant and equipment.

  - An 80% haircut to equity investments, which are mainly in
financial institutions.

  - Xinhu Zhongbao's large cash balance is adjusted so that cash
in excess of its three-month contracted sales is invested in new
inventories.

  - Based on its calculation of the adjusted liquidation value
after administrative claims, Fitch estimates the recovery rate of
the offshore senior unsecured debt to be 100%. Fitch has rated
the senior unsecured debt at 'B'/RR4. Under the Country-Specific
Treatment of Recovery Ratings criteria, China falls into the
Group D of countries in terms of creditor friendliness.
Instruments ratings of issuers with assets in this group are
subject to a soft cap at the level of the issuer's IDR.

RATING SENSITIVITIES

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

  - Contracted sales/net inventory sustained above 0.5x.

  - EBITDA margin sustained above 30% (2017: 32%).

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

  - Contracted sales/net inventory below 0.3x for a sustained
period, contracted sales below CNY10 billion for a sustained
period and failing to support property business expansion or
lower debt repayment capacity.

  - EBITDA margin below 20% for a sustained period.

LIQUIDITY

Sufficient Liquidity:  Xinhu Zhongbao's unrestricted cash and
marketable equity investments totalled CNY20 billion at end-June
2018, after Fitch reduced the company's CNY11.8 billion in
marketable equity investments and available-for-sale financial
investments by 60% and discounted its CNY0.2 billion investments
in wealth management products by 30%. Xinhu Zhongbao can cover
its short-term debt of around CNY14.5 billion plus its CNY4
billion negative free cash flow forecast for 2018. In addition,
the company's high quality and sufficient land reserve provides
an adequate pledge for financing if necessary.


YANGO GROUP: Moody's Assigns B3 Sr. Unsecured Rating to USD Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned a B3 senior unsecured
rating to the USD notes to be issued by Yango Justice
International Limited and guaranteed by Yango Group Co., Ltd
(Yango, B2 stable).

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

RATINGS RATIONALE

"The proposed note issuance will slightly extend Yango'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 Celine Yang, a Moody's Assistant Vice
President and analyst.

Yango's B2 corporate family rating reflects the company's strong
sales execution, large scale, and good track record in Fujian
Province and the Yangtze River Delta. It is also supported by its
ability to access the domestic debt market.

On the other hand, the company's B2 rating is constrained by its
high leverage due to its sizeable land acquisitions to support
its rapid growth and expansion into new regions, as well as its
weak liquidity.

Nevertheless, Moody's expects the company to adopt a more
measured approach to land acquisitions. Accordingly, its growth
in debt will likely slow over the next 2 years.

As a result, revenue/adjusted debt could improve to around 50%-
60% and interest coverage to 2.0x-2.3x in the next 12-18 months
from 33% and 1.9x respectively for the 12 months to June 30,
2018. Such levels are comparable with those of its B2-rated
Chinese property peers.

Yango's cash balance of RMB33.3 billion at the end of June 2018
was insufficient to cover its short-term debt of around RMB44.2
billion. Moody's expects the company to continue to utilize its
operating cash flows and raise new financing to meet its
refinancing needs in the next 12 months.

The B3 rating for Yango's senior unsecured notes is one notch
lower than its CFR of B2, reflecting structural subordination
risks.

This risk reflects the fact that the majority of claims are at
the operating subsidiaries, and have priority over claims at the
holding company in a bankruptcy scenario.

In addition, the holding company lacks significant mitigating
factors for structural subordination. As a result, the expected
recovery rate for claims at the holding company will be lower.

Yango's stable rating outlook reflects Moody's expectation that
Yango will (1) manage the refinancing of its short-term debt; (2)
maintain its strong contracted sales growth; and (3) adopt a more
measured approach towards land acquisitions to improve its
liquidity and financial metrics over the next 12 to 18 months.

Upward ratings pressure could emerge if Yango improves its
liquidity and debt leverage positions, while maintaining strong
contracted sales growth.

Credit metrics indicative of upward rating pressure include: (1)
revenue/adjusted debt above 60%-65%, (2) EBIT/interest cover
above 2x; and (3) cash/short-term debt above 1.25x on a sustained
basis.

Downward rating pressure could emerge if there is a deterioration
in Yango's credit metrics or liquidity position, such as
increased refinancing risk.

Credit metrics indicative of downward ratings pressure include
EBIT/interest coverage below 1.25x-1.50x.

The principal methodology used in this rating was Homebuilding
And Property Development Industry published in January 2018.

Yango Group Co., Ltd is a Chinese property developer focused on
the Greater Fujian, Yangtze River Delta, and Pearl River Delta
regions. It listed on the Shenzhen Stock Exchange in 2002.

Its operations are mainly focused on mass-market residential
property development. It had a total land bank of around 42.7
million square meters as of June 30, 2018.



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


HYDOO INTERNATIONAL: S&P Withdraws 'B-' ICR with Negative Outlook
-----------------------------------------------------------------
S&P Global Ratings said it withdrew its 'B-' issuer credit rating
with a negative outlook on Hydoo International Holding Ltd. at
the company's request.

S&P said, "The rating prior to the withdrawal reflected our view
that Hydoo's cash generation would remain weak, given overall
strained market conditions for the trade center industry in
China, which shows limited signs of recovery. Hydoo's projects
are also situated in suburban areas of lower-tier cities, where
economic conditions are generally tougher. This makes Hydoo more
vulnerable to slowing growth than peers targeting provincial
capitals, or those that have more diversified business streams.

"Nonetheless, in our view, Hydoo resolved its immediate repayment
risk after the full redemption of its US$160 million offshore
senior notes due December 2018. The company's remaining short-
term debt is sizable but mainly comprises construction loans that
are comparatively manageable. This is because these loans are
secured by project assets with repayment schedules generally
linked to development.

"The negative outlook at the time of the withdrawal reflected our
expectation that Hydoo would incur negative operating cash flow
over the next two years, which could led to a gradual depletion
of cash and increase in debt. In our view, the company's
conservative development schedule would be unable to offset the
weakened cash generation from sales."

  RATING SCORE SNAPSHOT
  Issuer Credit Rating
  B-/Negative/--

  Business risk: Vulnerable
  Country risk: Moderately high
  Industry risk: Moderately high
  Competitive position: Vulnerable
  Financial risk: Highly leveraged
  Cash flow/Leverage: Highly leveraged
  Anchor: b-

  Modifiers
  Diversification/Portfolio effect: Neutral (no impact)
  Capital structure: Neutral (no impact)
  Financial policy: Neutral (no impact)
  Liquidity: Weak (no impact)
  Management and governance: Fair (no impact)
  Comparable rating analysis: Neutral (no impact)



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


AJANTA GARTEX: CARE Reaffirms B+ Rating on INR9.36cr LT Loan
------------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
Ajanta Gartex Processors Private Limited (AGPPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank
   Facilities           9.36       CARE B+; Stable Reaffirmed

Detailed Rational and key rating drivers

The rating assigned to the bank facilities of AGPPL continues to
remain constrained on account of its small scale of operations
and leveraged capital structure. The rating is further
constrained on account of AGPPL's presence in a competitive
industry with limited value addition.

The rating, however, continues to draw comfort from the
experienced promoters, moderate profitability margins and debt
coverage indicators and moderate operating cycle.

Going forward, the ability of the company to increase its scale
of operations while improving its capital structure alongside its
working capital requirements shall be the key rating
sensitivities.

Detailed description of key rating drivers

Key rating weakness

Small though growing scale of operations: The scale of operations
of AGPPL continues to remain small as marked by total operating
income and gross cash accruals of INR9.81 crore and INR1.13 crore
in FY18 (FY refer to April 1 to March 31). The company's net
worth base remained relatively small at INR3.96 crore as on March
31, 2018. The small scale limits the company's financial
flexibility in times of stress and deprives it of scale benefits.
Though, the risk is partially mitigated by the fact that the
scale of operation is growing continuously. AGPPL's total
operating income grew from INR5.36 crore in FY16 to INR9.81 crore
in FY18 reflecting a CAGR of 35.29%. Furthermore, the company
achieved a total operating income of almost INR9.00 crore in
6MFY19 (refers to the period April 1 to September 30).

Leveraged capital structure: The capital structure of the company
stood leveraged as marked by overall gearing ratio of 2.17x as on
March 31, 2018 as against 0.94x as on March 31, 2017. The
deterioration in capital structure was on account of increase in
the total debt to meet the CAPEX requirements. Also, the average
utilization of working capital limits stood 90% utilized for the
past 12 months ended on October 31, 2018.

Competitive segment with limited value addition: AGPPL operates
in a competitive industry marked by the presence of a large
number of players in the organized sector and unorganized sector.
The industry is characterized by low entry barriers due to
limited technological inputs and easy availability of
standardized machinery coupled with low value addition with the
segment. This further leads to high competition among the various
players and low bargaining power with suppliers.

Key rating strengths

Experienced Promoters: The operations of AGPPL are currently
being managed by Mr. Rajender Kumar Chindalia, Mr. Babu Lal Daga
and Mr. Nop Chand Barmecha. Both Mr. Rajender Kumar Chindalia and
Mr. Babu Lal Daga are graduates by qualification and have an
experience of around three decades in the service industry
through their association with AGPPL and other family run
business. Mr. Nop Chand Barmecha is the newest director in the
company and is a matriculate by qualification with an experience
of around three decades in the service industry.

Moderate profitability margins: The profitability margins of the
company continues to remain moderate as marked by PBILDT and PAT
margin of more than 11.00% and 2.50% respectively for the past
three financial years i.e. FY16-FY18 (FY refers to the period
April 1 to March 31). Furthermore, the coverage indicators
continue to remain at satisfactory levels as marked by interest
coverage and total debt to GCA of 3.61x and 7.62x in FY18.

Moderate operating cycle: The operating cycle of the company
stood at 69 days for FY18 as against 16 days in FY17. The
elongation was primarily on account of increase in collection
period from 62 days in FY17 to 98 days in FY18, owing to adoption
of liberal credit policy in order to increase its scale of
operations. The company generally maintains inventory of around a
month in the form of
raw material for smooth production process resulting in an
average inventory holding of 37 days for FY18. Further the
company gets a credit period of 2-3 months resulting in an
average credit period of 65 days in FY18.

Ghaziabad, Uttar Pradesh based Ajanta Gartex Private Limited was
incorporated in 2005 and is currently being managed by Mr.
Rajender Kumar Chindalia, Mr. Nope Chand Barmecha and Mr. Babu
Lal Daga. AGPPL is engaged is in the processing and dyeing of
fabric and garments. The main raw material of the company is
chemicals which is procured from manufactures/wholesalers located
in Delhi and Punjab. The company undertakes the job of dying on
job contract basis wherein the fabric is provided by its
customers.


AL-AYAAN FOODS: CRISIL Lowers Rating on INR10cr Cash Loan to D
--------------------------------------------------------------
CRISIL has downgraded the rating on bank facilities of Al-Ayaan
Foods Private Limited (AAFPL) to 'CRISIL D; issuer not
cooperating' from 'CRISIL B/Stable; issuer not cooperating' due
to delays in debt servicing.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            10        CRISIL D (ISSUER NOT
                                    COOPERATING; Downgraded
                                    from 'CRISIL B/Stable
                                    ISSUER NOT COOPERATING')

CRISIL has been consistently following up with AAFPL for
obtaining information through letters and emails dated
January 19, 2017 and February 9, 2017 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.

'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of AAFPL. This restricts CRISIL's
ability to take a forward-looking view on the credit quality of
the entity. CRISIL believes that the information available for
AAFPL is consistent with 'Scenario 1' outlined in the 'Framework
for Assessing Consistency of Information with CRISIL B' rating
category or lower.

Based on best available information, CRISIL has downgraded the
rating to 'CRISIL D; issuer not cooperating' from 'CRISIL
B/Stable; issuer not cooperating' due to delays in debt
servicing.

Incorporated in 2014 by Mr. Naushad Elahi and Ms. Mumtaz Elahi,
AAFPL trades in livestock (buffalo). The company commenced
operations in December 2014. The company was acquired by Mr.
Mohammed Elahi Qureshi and Mr. Dilshad in 2015.


BR PROPERTIES: CARE Assigns B+ Rating to INR5cr LT Loan
-------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of BR
Properties (BRP), as:

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

Detailed Rationale and key rating drivers

The rating assigned to the bank facilities of BRP is constrained
by small scale of operations, proprietorship nature of
constitution and its presence in a highly fragmented and
competitive industry. The rating, however, derives comfort from
experienced proprietor with satisfactory track record of
operations, comfortable capital structure with satisfactory debt
coverage indicators, healthy profitability margins and long term
agreements with reputed clientele.

Going forward, the ability of the entity to increase its client
base, increase scale of operations along with maintaining its
current profitability margins will be the key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses:

Small Scale of operations: The entity mainly is into providing
land on lease rental basis since April 2010. The firm has
reported total operating income of INR1.72 crore (Rs.1.68 crore
in FY17) with a PAT of INR0.35 crore (Rs.1.17 crore in FY17) in
FY18. Furthermore, the total capital employed was also low at
INR4.29 crore as on March 31, 2018. Going forward, the ability of
the entity to increase clientele, generate higher lease rentals
to achieve higher revenue will be critical for the entity.

Proprietorship nature of constitution: BRP, being a
proprietorship firm, is exposed to inherent risk of withdrawal of
capital by the proprietor, restricted access to funding and risk
of dissolution on account of poor succession planning.
Furthermore, proprietorship firms have restricted access to
external borrowing as credit worthiness of proprietor would be
the key factors affecting credit decision for the lenders.

Highly fragmented and competitive industry: The lease rental
industry in India is highly fragmented and dominated by a large
number of large and medium players. The industry faces intense
competition due to low entry barriers. High competition in the
operating spectrum and small size of the entity limits the scope
for margin expansion.

Key Rating Strengths

Experienced proprietor and satisfactory track record of
operations: The entity mainly is into providing land on lease
rental basis since April 2010 and thus has around eight years of
track record of operations. Mr. Kanak Deka (aged about 38 years)
has around one decades of experience in the same line of business
and also looks after the day to day operation of the entity.

Comfortable capital structure with satisfactory debt coverage
indicators: The capital structure of the entity remained
comfortable marked by its overall gearing ratio of 0.09x as on
March 31, 2018 due to lower debt levels. Furthermore the debt
coverage indicators also remained moderate marked by interest
coverage of 1.42x and total debt to GCA of 0.93x in FY18.
Moreover, considering its proposal to avail term loans, the
capital structure of the entity is likely to deteriorate
going forward.

Healthy profit margins and long term agreement with reputed
clients: The profitability margins improved during FY18 on
account of better management of cost of operations and the same
remained healthy marked by PBILDT margin of 71.24% and PAT
margins at 20.26% in FY18. Going forward, the ability of the
entity to maintain its existing profitability will be critical
for the entity. However, the entity has long term lease rental
agreement with reputed clients like Shriram Transport Finance
Company Ltd, Project Implementation Unit JICA Assisted, TCI
Supply Chain Solutions, Essel Propack Limited etc.

B.R. Properties (BRP) was established in the year 2005 by Mr.
Kanak Deka but after remaining dormant for around 5 years; the
entity commenced operation from April 2010. The entity is engaged
in sales of land and land lease rental services. The entity has
long term lease agreement with Shriram Transport Finance Company
Limited for the period of 12 years starting from May 2014,
Project Implementation Unit JICA Assisted for the period of 5
years starting from April 2016, Gammon Engineers& constructions
Pvt. Ltd. for the period of 4 years starting from April 2018, TCI
Supply Chain Solutions for the period of 5 years starting from
September 2015 and Essel Propack Limited for a period of 9 years
starting from June 2018. The firm receives lease rentals income
from its clients.

Liquidity position: The liquidity position of the entity was low
marked by its current ratio 0.59x and quick ratio 0.59x as on
March 31, 2018. The entity has free cash and bank balance of
INR0.22 crore as on March 31, 2018.


GCX LIMITED: Moody's Cuts CFR to Caa1, Outlook Negative
-------------------------------------------------------
Moody's Investors Service has downgraded GCX Limited's corporate
family rating and senior secured bond ratings to Caa1 from B3.
The ratings outlook is negative.

This concludes the review of the ratings for downgrade initiated
by Moody's on September 14, 2018.

GCX is a wholly owned subsidiary of Reliance Communications
Limited (RCOM) through an intermediary holding company, Global
Cloud Xchange Limited (GCXL).

GCXL is 100% owned by RCOM which has been undergoing
restructuring under the Strategic Debt Restructuring (SDR)
process with the Joint Lenders' Forum (JLF) since June 2017.

RATINGS RATIONALE

The rating action reflects the need to close a definitive
refinancing plan to address GCX's USD350 million senior secured
bond, which matures on August 1, 2019. Although management
announced that it is evaluating several refinancing options on
its recent earnings call, a binding and definitive agreement is
not yet in place.

On September 30, 2018, GCX had USD18.7 million of cash and
equivalents on its balance sheet. However, the company received a
large milestone payment of USD$57.1m from a USD$63.5m OTT
contract on December 18, 2018, helping to drive the cash balance
upwards of USD60 million by December 31, 2018.

"Although we expect GCX's cash level to trend above USD60 million
with continued execution of cash received from new Indefeasible
Rights of Use (IRU) contracts and receipt of annual operations &
maintenance (O&M) payments in January, GCX will have limited
access to the capital markets until the parent's restructuring
process is completed," says Annalisa DiChiara, a Moody's Vice
President and Senior Credit Officer.

The company's next interest payment of USD12.25 million is due on
February 1, 2019 which Moody's expects will be satisfied with
cash on the balance sheet.

Although RCOM's debt resolution plan was agreed with its lenders
on December 26, 2017, the sale of its wireless, fibre and real
estate assets has been delayed following a series of court
hearings and lack of regulatory approvals.

However, on December 14, the Supreme Court directed the
Department of Telecommunications to clear the spectrum sale to
Reliance Jio Limited within two days, paving the way for the
potential completion of RCOM's restructuring process over the
next several weeks.

Management remains in discussions with respect to the sale of GCX
as well as negotiating the commercial terms of a private loan to
refinance its maturing USD350 million bond.

The ratings outlook is negative, reflecting the ongoing
uncertainty regarding refinancing of its maturing bonds as GCX's
access to the public markets will remain shut until RCOM exits
the SDR process.

The ratings could be downgraded further if GCX is unable to
demonstrate access to the capital markets to fund the refinancing
of the USD350 million notes without loss to bondholders. In
addition, should GCX's cash balance fall below USD30 million or
the payment of interest on February 1, 2019 becomes unlikely, the
ratings could be downgraded.

The ratings are unlikely to be upgraded or their outlook returned
to stable prior to the completion of the refinancing of the 2019
notes.

The successful completion of a refinancing could trigger an
upgrade of a notch or more as it would materially improve the
company's liquidity profile and capital structure without loss to
bondholders. A definitive sale-and-purchase agreement, inclusive
of a definitive refinancing plan for the outstanding bonds, would
also be positive for the ratings.

The principal methodology used in these ratings was
Communications Infrastructure Industry published in September
2017.

GCX Limited, incorporated in Bermuda in 2014, wholly owns five
subsea cable systems on major data traffic routes. As of
September 30, these cable systems had a total length of 68,698
kilometers with 46 landing stations in 27 countries. GCX provides
data connectivity solutions to major telecommunications carriers
and large multinational enterprises in the US, Europe, Middle
East and Asia Pacific with a need for multi-national IP-based
solutions and connectivity.


GOMATHI STEELS: CRISIL Migrates D Rating to Not Cooperating
-----------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Gomathi
Steels (GS) to 'CRISIL D/CRISIL D Issuer not cooperating'.

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Bank Guarantee         2        CRISIL D (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Bill Discounting       3        CRISIL D (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Bill Discounting       1.5      CRISIL D (ISSUER NOT
   under Letter of                 COOPERATING; Rating Migrated)
   Credit

   Cash Credit           14.0      CRISIL D (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Intraday Limit         0.1      CRISIL D (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Term Loan              2        CRISIL D (ISSUER NOT
                                   COOPERATING; Rating Migrated)

CRISIL has been consistently following up with GS for obtaining
information through letters and emails dated August 28, 2018 and
September 28, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of GS. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on GS is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.

Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of GS to 'CRISIL D/CRISIL D Issuer not cooperating'.

Furthermore, the company has not paid the fee for conducting
rating surveillance as agreed to in the rating agreement.

GS is a proprietorship concern of Mr. Govindasamy established in
2003. The firm manufactures various steel products such as nails,
bolts, couplers, and mild steel wires, and also trades in steel
wire rods. Its manufacturing units are near Chennai (Tamil Nadu).


GRC INFRA: CARE Reaffirms B+ Rating on INR50cr LT Loan
------------------------------------------------------
CARE Ratings reaffirmed ratings on certain bank facilities of
GRC Infra Private Limited (GIPL), as:

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long-term Bank
   Facilities          50.00      CARE B+; Stable Reaffirmed


Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of GIPL are tempered
by small scale of operations with geographical concentration
risk, financial closure yet to be achieved for ongoing project,
salability risk with on-going project and inherent cyclical
nature of the real estate industry. The rating, however, derives
its strength from experienced promoters with more than two
decades in real estate business, favorable location of the
project, comfortable capital structure and debt coverage
indicators and registration with Real Estate Regulatory Authority
(RERA).

Going forward, the ability of the company to complete the project
in timely manner and its ability to sell the units and collect
advances while maintaining its capital structure and debt
coverage indicators shall remain the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Small scale of operations along with decreasing total operating
income: As the company's presence in real estate business is less
than a decade, the scale of operations is small marked by revenue
of INR 20.60 crore in FY18 coupled with low networth of INR 13.52
crore as on March 31, 2018 as compared to other peers in the
industry. Further, the total operating revenue has been decrease
from INR22.60 in FY17 to INR 20.60 crore in FY18 due to the fact
that the company managed to sell less number of residential
apartments than what was estimated.

Geographically concentrated revenue profile: GIPL is primarily
located in the Karnataka State and executing projects in and
around Bangalore which reflects geographical concentration risk.
In case, the real estate market of Bangalore slows down or there
happens to be any political uncertainties, the same will impact
the operations of the company. Furthermore, Bangalore being a
developed city, GIPL is likely to face intense competition from
well established players.

Financial closure yet to be achieved: The company is yet to
achieve financial closure for the ongoing project. The project is
proposed to be funded by promoter's capital (29%), proposed term
loan (57%) and advances from customers (14%). As on October 31,
2018, the company has incurred a total cost of INR24.05 crore for
which was funded by promoter's capital and advance from
customers.

Project execution and salability risk: The ongoing project GRC
Subhiksha which commenced in January 2018 is likely to achieve
COD in June 2019, which exposes the project to execution risk.
The project is still in a nascent stage and the company has
incurred only 27.84% of the total project cost till October 31,
2018. This exposes the project to substantial salability risk as
well. While the company has received expression of interest from
several individual customers; any delay in attaining envisaged
sales and realizing potential revenue may stretch the company's
cash flow.

Inherent cyclical nature of the real estate industry: The company
is exposed to the cyclicality associated with the real estate
sector which has direct linkage with the general macroeconomic
scenario, interest rates and level of disposable income available
with individuals. In case of real estate companies, the
profitability is highly dependent on property markets. A high
interest rate scenario could discourage the consumers from
borrowing to finance the real estate purchases and may depress
the real estate market.

Key Rating Strengths

Experienced promoters with more than two decades in real estate
business: Mr. G. Ramana Babu and Mr. R.M. Eshwar Naidu are the
promoters of the company and have been engaged in the real estate
field since 1985. They have worked with various construction
companies in Bangalore in various capacities from being a site
supervisor to project manager level. In 1999, both the promoters
formed a partnership firm named GR Construction and executed
seven residential projects under the brand name of GR. Further,
the company has a strong management team that is distributed
across functional departments of engineering, marketing,
accounts, customer relations, legal and quality assurance, headed
by experienced department heads who report directly to the
promoters Mr. G. Ramana Babu and Mr. R.M. Eshwar Naidu. All the
department heads are having an experience of more than 5 years in
their respective fields.

Favorable location of the project: The ongoing project is located
at one of the developing residential and commercial areas of
Bangalore. The projects are having a location advantage as it is
located at IT Bay of Bangalore, as well the city is the hub of IT
companies in India.

Comfortable capital structure and debt coverage indicators: The
capital structure of the company improved during the review
period. The overall gearing of the company improved from 4.95x as
on March 31, 2016 to 0.03x as on March 31, 2018 on account of
structured repayment of term loan obligations coupled with
accretion of profits to net worth. The debt coverage indicators
also improved during FY16-18 (Prov.). Total debt/GCA of the
company improved from 18.69x in FY16 to 0.15x in FY18 at the back
of decreasing debt levels along with increasing cash accruals.
Furthermore, interest coverage ratio improved from 1.55x in FY16
to 10.88x in FY18 on account of decrease in interest cost owing
to repayment of term loan obligations.

Registered with RERA: The Real Estate (Regulation and
Development) Act, 2016 (RERA) is effective from May 1, 2017, and
covers all the residential and commercial projects in every state
of India. GRC Subhiksha was registered on May 4, 2018
(PRM/KA/RERA/1251/308/PR/180504/001615).

Liquidity Analysis: The current ratio of the company is above
unity during the review period and stood at 1.34x as on March 31,
2018 due to higher amount of current assets as compared to
current liabilities on account of higher inventory levels as
result of the
unsold properties of the completed projects. The inventory levels
was INR 40.06 crore as on March 31, 2018.

GRC Infra Private Limited (GIPL), a Bangalore based developer, is
engaged in real estate development projects. GIPL was
incorporated in the year 2009 and promoted by Mr. G. Ramana Babu
and Mr. R.M. Eshwar Naidu. Mr. Babu holds Bachelor's degree in
commerce and have three decades of experience in construction
field. The second promoter, Mr. R.M. Eshwar Naidu, holds Bachelor
of Arts degree and has more than two decades of experience in
civil construction
works and real estate projects. Both the promoters also hold
equal shareholding in one of the associate partnership concern i.
e G R Construction engaged in construction of residential
complex.

GRC is currently implementing its project; GRC Subhiksha, located
at Sy no 38/1 & 38/2, Choodasandra Village, Sarjapur Hobli,
Anekal Taluq, Bangalore. GR Subhiksha spans across an area of
1.21 lakh square feet with a total saleable area of 2.45 lakh
square feet including 240 flats.


INDIAN RENEWABLE: Fitch Lowers LT IDR to BB+, Outlook Stable
------------------------------------------------------------
Fitch Ratings has downgraded Indian Renewable Energy Development
Agency Limited's Long-Term Foreign- and Local-Currency Issuer
Default Ratings as well as its long-term senior unsecured rating
to 'BB+' from 'BBB-'. The Outlook is Stable. At the same time,
Fitch has downgraded the Short-Term IDR and the short-term senior
unsecured rating to 'B' from 'F3'.

The downgrade follows a downgrade of Fitch's internal assessment
of IREDA's standalone credit profile to 'b+' from 'bb-' due to
elevated risk in India's renewable-energy sector, its
expectations of lower capital adequacy following the adoption of
all of the Reserve Bank of India prudential norms from the
financial year ending March 2019 and IREDA's modest loan loss
provision coverage.

Fitch classifies IREDA as a government-related entity (GRE) under
its GRE Rating Criteria and assigns the company a weighted score
of 30 under the GRE factor assessment. This results in the
company being rated on a 'top-down minus 1' approach. Therefore,
IREDA is rated one notch below the Indian sovereign's Long-Term
Foreign- and Local-Currency IDRs of 'BBB-'.

KEY RATING DRIVERS

Weaker Standalone Credit Profile: its internal assessment of
IREDA's standalone credit profile under the GRE criteria takes
into account the company's concentrated business model, moderate
capitalisation against its high risk appetite and volatile asset
quality, which is vulnerable to sharp deterioration due to the
characteristics of the renewable-energy sector. Fitch also
recognises IREDA's significant reliance on foreign funding
sources and the related market risk this entails.

'Very Strong' Status, Ownership and Control: IREDA is a non-
deposit accepting, non-banking financial company that is wholly
owned by the central government and registered with the Reserve
Bank of India. It was incorporated under the Indian Companies Act
1956 and is under the administrative control of the Ministry of
New and Renewable Energy (MNRE). The government approved the
potential equity issuance of INR1.39 billion by IREDA in June
2017, with the new issuance being subsequently approved by the
company's board of directors. Fitch expects the state to maintain
a controlling stake in IREDA, but the issuance may weaken its
assessment of this rating factor due to dilution of government
ownership and control.

The MNRE sets IREDA's operational and financial performance
targets, which are reviewed quarterly. The entity's board is
appointed by the government, while the comptroller and auditor
general of India appoint IREDA's auditors annually. IREDA has
held 'Miniratna' status since June 2015 based on its
profitability; this status is provided to small- to medium-sized,
public-sector companies that have a comparative advantage and
allows some independence in operating and capex management.
However, it also makes IREDA ineligible for government operating
subsidies.

'Strong' Support Record and Expectations: IREDA has not received
direct state financial support since 2015, but it is one of
several Indian GREs that are permitted to raise low-cost funds
through tax-free domestic bonds or government fully serviced
taxable bonds. IREDA also benefits from government guarantees on
its multilateral debt, which represented 46.6% of its total
borrowings as of FYE18.

The MNRE uses IREDA to implement its national policy objective to
develop installed renewable energy across the world's third-
largest electricity grid. IREDA is the sole administrator for
MNRE's programmes, which include incentive schemes for wind and
solar-power projects, such as roof-top solar, capital subsidies
for solar-water heating and the National Clean Energy Fund.
Government policies remain supportive of IREDA's objectives, but
Fitch believes other GREs may receive support ahead of IREDA in
exceptional circumstances.

'Moderate' Default Socio-Political Implications: Fitch believes a
default by IREDA would have limited socio-political implications
due to the nature of the services it provides. IREDA is one of
the most established lenders to India's renewable-energy sector,
supporting approximately 17% of the country's installed
renewable-energy capacity as of FYE18. However, Fitch believes
that in the event of default, it would be possible for domestic
and international private-sector financiers or other GREs to
provide substitute services with only minor or temporary
disruption to the provision of electricity. Fitch also believes
there would be limited political repercussions from a default, as
any adverse impact on the economy would be minor in light of
IREDA's role as an ancillary service provider to the national
electricity network.

'Strong' Default Financial Implications: IREDA occasionally acts
as a proxy funding vehicle for the MNRE, which is not permitted
to borrow directly, and plays an important public-policy role in
raising low-cost capital and encouraging investment in India's
renewable-energy sector. The company's annual borrowing
requirements are driven by the government's renewable-energy
generation capacity targets for 2022. However, the amount of
IREDA's capital raising is typically smaller than that of other
larger Indian GREs and peers. Therefore, Fitch believes a
financial default would have significant implications for the
central and state governments, other GREs' borrowing and
refinancing capacity in the capital market and wider investor
sentiment towards the sovereign, other GREs and the Indian
electricity sector.

RATING SENSITIVITIES

Evidence of consistent strengthening of the company's financial
profile or increased state support may prompt an upgrade.

A weakening of the company's financial profile or weakened links
with the state, as manifested in a diminishing sovereign
participation and dilution of control, could lead to a downgrade.


INFRASTRUCTURE LEASING: Puts Road Assets on the Block
-----------------------------------------------------
Ridhima Saxena at BloombergQuint reports that the new board of
the insolvent Infrastructure Leasing & Financial Services Ltd.
has put its road assets on sale as part of its debt-resolution
plan.

BloombergQuint relates that the road assets/businesses, according
to a company statement, are classified under the "Domestic Roads
Vertical", and belong to subsidiaries, including IL&FS
Transportation Networks Ltd.

BloombergQuint says the road assets/businesses comprise:

  * Seven operating annuity-based road projects in various parts
    of India aggregating approximately 1,774 lane kilometres.

  * Eight operating toll-based road projects across India
    aggregating around 6,572 lane km.

  * Four under construction road projects in various parts of
    India aggregating around 1,736 lane km upon completion.

  * Three other assets - the EPC (engineering, procurement and
    construction) and O&M (operation and maintenance) businesses
    of IL&FS Transportation Networks Ltd. and a sports complex
    in Thiruvananthapuram, Kerala.

The infrastructure financier, in order to ensure maximisation of
sale value, may either sell these assets together or
individually, depending upon investors' interest, BloombergQuint
says. The company had put its renewable energy assets on the
block on Nov. 28 after it received over a dozen offers for its
two companies -- IL&FS Securities Services and ISSL Settlement &
Transaction Services.

According to BloombergQuint, the stake sales are part of the
revival plan of the new board -- headed by billionaire banker
Uday Kotak -- that was approved by the insolvency court on
Oct. 31. The government took control of the troubled
infrastructure group after multiple defaults to prevent a
contagion in India's financial markets. IL&FS and its 347
subsidiaries and associate companies have a debt of about Rs
91,000 crore.

The final transaction for sale of assets, and the resulting
resolution plan can be implemented only after it gets approved by
the National Company Law Tribunal. The IL&FS asset sale will be
managed by Arpwood Capital and JM Financial -- appointed as
financial and transaction advisers -- along with Alvarez &
Marsal, the resolution consultant.

The statement said the stake sale would help the board in
developing a turnaround plan for the group, which would be done
through asset divestment or a combination of revival plans
submitted to the NCLT.

                           About IL& FS

Infrastructure Leasing & Financial Services Limited (IL&FS)
operates as an infrastructure development and finance company in
India. It focuses on the development and commercialization of
infrastructure projects, and creation of value added financial
services. The company operates in Financial Services,
Infrastructure Services, and Others segments. Its Financial
Services segment engages in the commercialization of
infrastructure; investment banking, including corporate finance,
advisory, capital market, and other financial services; and
securities trading, venture capital, and trusteeship operations.

As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 3, 2018, the Indian Express said that the government on
Oct. 1 stepped in to take control of crisis-ridden IL&FS by
moving the National Company Law Tribunal (NCLT) to supersede and
reconstitute the board of the firm which has defaulted on a
series of its debt payments over the last one month. This was
said to be an attempt to restore the confidence of financial
markets in the credibility and solvency of the infrastructure
financing and development group.


JAYA JEYA: CRISIL Migrates B Rating to Not Cooperating Category
---------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Jaya Jeya
Agro Food Products Private Limited (JAF) to 'CRISIL B/Stable
Issuer not cooperating'.

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Cash Credit            14       CRISIL B/Stable (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Proposed Cash
   Credit Limit            0.5     CRISIL B/Stable (ISSUER NOT
                                   COOPERATING; Rating Migrated)


   Term Loan              10       CRISIL B/Stable (ISSUER NOT
                                   COOPERATING; Rating Migrated)

CRISIL has been consistently following up with JAF for obtaining
information through letters and emails dated August 28, 2018 and
September 28, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of JAF. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on JAF is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.

Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of JAF to 'CRISIL B/Stable Issuer not cooperating'.

Furthermore, the company has not paid the fee for conducting
rating surveillance as agreed to in the rating agreement.

JAF is a company based out Karaikudi (Tamil Nadu) and is setting
up a rice mill plant with a capacity of 5 tonnes per hour. Set up
in March 2017, the company is promoted by Mr.Kannan and his
family members.


JAYMALA SPINTEX: CRISIL Lowers Rating on INR16.1cr Loan to D
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Jaymala Spintex Limited (JSL) to 'CRISIL D/CRISIL D' from 'CRISIL
BB-/Stable/CRISIL A4+'. The downgrade reflects the company's
delays in repayment of bank debt on account of stretched
liquidity.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Bank Guarantee         2.4       CRISIL D (Downgraded from
                                    'CRISIL A4+')

   Cash Credit            6.5       CRISIL D (Downgraded from
                                    'CRISIL BB-/Stable')

   Term Loan             16.1       CRISIL D (Downgraded from
                                    'CRISIL BB-/Stable')

The company also has a weak financial risk profile and working
capital-intensive operations. The company also has extensive
experience of promoters in cotton ginning and spinning industry.

Key Rating Drivers & Detailed Description

Weakness:

* Delay in meeting term debt obligation: Cash accrual remained
insufficient to meet debt obligation, leading to delays in
repayment of bank debt. Utilization of cash credit facility also
remained high, averaging 101% for last 12 months ended October
2018.

* Weak financial risk profile: The financial risk profile remains
constrained by high gearing of 2.36 times as on March 31, 2018,
and weak net cash accrual to total debt ratio of 0.11 time in
fiscal 2018.

* Working capital-intensive operations: Gross current assets were
high at 137 days, due to receivables and inventory of 72 days and
32 days, respectively, as on March 31, 2018. Operations are
working capital intensive in nature.

Strength:

* Extensive experience of promoters in cotton ginning and
spinning industry: The promoter family's experience of over two
decades in the cotton ginning and spinning industry, and strong
customer and supplier relationship has helped the company in
supporting the business risk profile.

JSL was incorporated in May 2006 as Saraswati Cotspin Pvt Ltd,
promoted by Mr. Niranjan Patel, Mr. Bharat Patel, and their
family members. This company was reconstituted as a closely held
public limited company with the present name in March 2013. It
commenced commercial operations from February 2014. The company
manufactures cotton combed yarn of finer quality in counts of 30-
35s, used in manufacturing suiting and shirting fabrics. The
manufacturing facility of the company is situated at Idar,
Gujarat.


JR TOLL: CARE Removes B(SO) Rating from Credit Watch Developing
---------------------------------------------------------------
CARE has removed the rating on bank facilities of JR Toll Road
Pvt. Ltd. (JR Toll Road) from 'Credit Watch with Developing
Implications'.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund Based          389.00      CARE B (SO); Stable; Removed
   Facilities                      from Credit Watch with
   (Long term) ^                   Developing Implications and
                                   assigned Stable Outlook

^Backed by unconditional and irrevocable corporate guarantee of
Reliance Infrastructure Limited (R-Infra)

Detailed Rationale & Key Rating Drivers

The revision in the ratings on the bank facilities of JR Toll
Road Pvt. Ltd. (JR Toll Road) on account of the revision in the
ratings assigned to the guarantor i.e. Reliance Infrastructure
Limited (R-Infra).

Detailed Rationale of the Guarantor; R-Infra

The ratings on the bank facilities/instruments of Reliance
Infrastructure Ltd (R-Infra) had been earlier put on 'Credit
Watch
with Developing Implications' in view of announcement by R-Infra
entering into a definitive agreement with Adani Transmission
Limited for 100% sale of its integrated Mumbai power business.
The rating has been removed from 'Credit Watch with Developing
Implications' on account of completion of sale of R-Infra's
integrated Mumbai power business and receipt of updates form the
company with regards to the expected receipt of money from
arbitration awards and regulatory assets.

Detailed Rationale & Key Rating Drivers

The ratings on the bank facilities/instruments of R-Infra
continues to be tempered by exposure to group/associate
entities in the form of loans and advances extended by R-Infra,
delay in the receipt of money from arbitration awards and
regulatory assets which has impacted the financial profile and
liquidity profile of R-Infra.

The ratings factor in the substantial increase in the order book
position in the EPC (Engineering Procurement and Construction)
business thereby providing revenue visibility in the near term.

Timely receipt of money from the arbitration awards and
regulatory assets and realization of funds extended to group
companies (loans and advances and investments) are key rating
sensitivities.

CARE has withdrawn the rating assigned to the NCD issues of
INR365 crore of R-Infra with immediate effect, as the company has
repaid the aforementioned NCD issues in full and there is no
amount outstanding under the issue as on date.

Detailed description of the key rating drivers

Key Rating Weaknesses

Continued support extended to group/associate companies impacting
the coverage indicators: Financial support extended to group
companies/associates in the form of loans & advances continued to
remain high at around INR13,558 crore as on March 31, 2018 which
has impacted the liquidity profile and financial risk profile of
R-Infra. Timely and complete recovery of the same is a key rating
sensitivity.

Delay in receipt of arbitration award and regulatory assets: R-
Infra had won Delhi Metro arbitration award against DMRC (Delhi
Metro Rail Corporation) worth INR 5,300 crore including interest
of which R-Infra received INR306 crore as immediate relief to
ensure than no account of lenders of DAMEPL (Delhi Airport Metro
Express Private Limited) turns NPA. Hon'ble Delhi HC has directed
DMRC to service entire debt of DAMEPL worth INR 1,618 crore. The
timely receipt of DMRC award is a key rating moniterable. Also,
the company had claims with regards to regulatory assets form the
power business and arbitration money expected from the road
projects, Mumbai Metro project and EPC business.

Key Rating Strengths

Improved revenue visibility in EPC business segment: During FY18,
The EPC business segment contributed around 15.52% of the total
revenues and 18.83% of the total PBIT (allocable Income/Expenses
among segments) of R-Infra. However, as on September 30, 2018, R-
Infra has an order book position exceeding INR27,800 crore as on
September 30, 2018. The improvement in the order book position
provides revenue visibility in the EPC segment in the near term.

It is one the of 11 toll road projects executed by R-Infra.
R-Infra has 48% stake in JR Toll road project. The project
commenced commercial operations in July 2013 and was set up with
the objective to design, build, operate and transfer 52 km long
four lane NH11 road connecting Reengus in northern part of
Rajasthan to its capital city, Jaipur.

About the Guarantor; R-Infra

Reliance Infrastructure Limited (R-Infra) is the flagship company
of the Reliance ADAG (controlled by Mr. Anil D Ambani). Reliance
Infrastructure Ltd. is into developing projects through various
Special Purpose Vehicles (SPVs) in sectors such as Power, Roads
and Metro Rail in the Infrastructure space and the Defence
sector.

R-Infra through its SPV/Associates has presence in the power
businesses. Also, R-Infra Ltd through its SPVs has executed a
portfolio of infrastructure projects such as a metro rail project
in Mumbai on build, own, operate and transfer (BOOT) basis;
eleven road projects with total length of about 1,000 kms on
build, operate and transfer (BOT) basis. Reliance Infrastructure
Ltd. also provides Engineering, Procurement and Construction
(EPC) services for developing power and road projects.

The Company has entered into the defence sector. The Maharashtra
Government has allotted land at Mihan near Nagpur for the
development of smart city for the defence sector known as
Dhirubhai Ambani Aerospace Park (DAAP). Reliance Infrastructure
Ltd. associate Reliance Naval and Engineering Ltd. (RNEL), houses
dry dock facility to build warships and other naval vessels.


KUBER PAPER: CARE Assigns B+ Rating to INR15.99cr LT Loan
---------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Kuber
Paper & Pack (KPP), as:

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long-term Bank
   Facilities          15.99      CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of KPP is constrained
by its small scale of operations with net loss, weak debt
coverage indicators and working capital intensive nature of
operations. The rating is also constrained by firm's presence in
highly competitive and fragmented packaging industry,
susceptibility of margins to fluctuations in raw material prices
and partnership nature of constitution. The rating, however,
derives strength from experienced partners, moderate capital
structure, positive demand outlook for packaging industry.

Going forward, the ability of the firm to scale up its operations
while improving its profitability and manage its working
capital requirements efficiently would remain its key rating
sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Short track record and Small scale of operations with net loss:
Owing to small capacity and short track record of operations, the
firm's scale of operations has remained small marked by total
operating income (TOI) of INR6.89 crore in FY18 (refers to the
period April 1 to March 31). Further, the firm's GCA was
relatively low at INR0.04 crore for FY18. The small scale limits
the firm's financial flexibility in times of stress and deprives
it from scale benefits. Furthermore, the firm reported total
operating income of INR12.50 crore during the period from April
01, 2018 to October 25, 2018 (Provisional) The PBILDT margin of
KPP stood moderate at 9.30% in FY18. However, the firm incurred
net loss of INR 1.97 crore in FY18 owing to high interest and
depreciation costs.

Working capital intensive nature of operations: The operations of
the firm are working capital intensive in nature. The operating
cycle of the firm stood at 114 days for FY18. KPP is required to
maintain adequate inventory of raw material for smooth production
process as well as maintain inventory of finished goods to meet
bulk demand of its customers which resulted in average inventory
period of 94 days for FY18. Furthermore, the firm offers a credit
period of around two months to its customers resulting in average
collection period of 66 days for FY18. And receives a credit
period of around one and a half months from its suppliers. The
average utilization of cash credit limit remained at 80% for the
past 12 months period ended October, 2018.

Susceptibility of margins to fluctuations in raw material prices:
The firm primarily uses only one type of raw material, ie, Kraft
paper, which is obtained from suppliers based in Uttar Pradesh.
The raw material costs constituted about 87% of the total cost of
sales in the past. This coupled with the competitive nature of
the packaging industry results in exposure of the KPP's
profitability margins to risk associated with price fluctuation
of the raw material.

Highly competitive and fragmented nature of the packaging
industry: The Indian packaging industry is a combination of
organized large Indian and International companies and the
unorganized small and medium local companies. The organized
sector of the industry forms a small chunk of the companies in
the overall industry but controls a major share of the market by
volume. KPP, therefore, operates in a competitive segment of the
packaging industry which is affected by low profitability due to
highly fragmented industry, high raw material prices, low entry
barriers, presence of large number of unorganized players with
capacity additions by existing players as well as new entrants.

Partnership nature of constitution: KPP's constitution as a
partnership firm has the inherent risk of possibility of
withdrawal of the partners' capital at the time of personal
contingency and firm being dissolved upon the
death/retirement/insolvency of partners.

Key Rating Strengths

Experienced partners: The firm commenced operations in July,
2017. Mr. Murari Lal Aggarwala, Mr. Shantanu Aggarwala and Mr.
Mohit
Aggarwala have an industry experience of 35 years, 4 years and 5
years respectively through their association with KPP and other
regional entities engaged in service industry. However, the
partners have limited experience in manufacturing industry.
However, the partners are supported by experienced staff to
manage day to day operations.

Moderate capital structure: The capital structure of the KPP
stood moderate with overall gearing ratio of 1.17x as on March
31, 2018 mainly on account of firm's moderate net worth base and
limited reliance on bank borrowings to fund capex for the setting
up of
unit. However, the debt coverage indicators of the firm stood
weak marked by interest coverage ratio of 1.07x in FY18 and total
debt to GCA of 191.70x for FY18. Further, the liquidity position
stood moderate marked by current ratio of 1.96x and quick ratio
of 1.28x as on March 31, 2018.

Positive demand outlook for the industry: The consumption of
industrial packaging material is closely aligned to the
manufacturing growth. As the government is taking several steps
to boost the contribution of manufacturing to GDP, the demand for
industrial packaging is likely to grow in the future. Packaging
paper & board segment caters to industries such as FMCG, food &
beverage, pharmaceutical, textiles etc. Demand for Packaging
Paper & Board segment is expected to grow at a CAGR of 8.9% and
reach 9.7 million tonnes in FY19 due to factors such as increased
urbanization, requirement of better quality packaging of FMCG
products marketed through organized retail, and increasing
preference for ready to eat foods.

Kuber Paper & Pack (KPP) was established as a partnership firm in
April 2016. The firm is currently being managed by Mr. Murari Lal
Aggarwala, Mr. Shantanu Aggarwala and Mr. Mohit Aggarwala sharing
profits and losses in the 40%, 30% and 30% respectively. The firm
is engaged in the manufacturing of corrugated boxes and sheets at
its manufacturing facility located in District Sonipat, Haryana
with an installed capacity of manufacturing 24000 tonne of
corrugated boxes and sheets per annum as on September 30, 2018.
The commercial operations of the firm started from July 01, 2017.
The firm is also engaged in trading of kraft paper.


KUMAR SPINTEX: Ind-Ra Assigns BB- Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Kumar Spintex
Private Limited (KSPL) a Long-Term Issuer Rating of 'IND BB-'.
The Outlook is Stable.

The instrument-wise rating actions are:

-- INR188 mil. Long-term loans due on March 2024 assigned with
     IND BB-/Stable rating;

-- INR140 mil. Fund-based facilities assigned with IND BB-/
    Stable/IND A4+ rating; and

-- INR28 mil. Non-fund-based facilities assigned with IND A4+
    rating.

KEY RATING DRIVERS

The ratings reflect KSPL's small scale of operations as indicated
by revenue of INR681 million in FY18 (FY17: INR670 million). As
of 7MFY19, the company achieved revenue of INR556 million. KSPL's
return on capital employed was 3% in FY18 (FY17: 7%) and EBITDA
margin was modest at 4.65% (6.16%), as the company operates in a
highly competitive textile industry. Despite the increase in
revenue, the EBITDA margin declined due to an increase in cost of
materials. Ind-Ra expects the EBITDA margin to improve to around
6% in FY19, backed by modernization of machinery.

The ratings are also constrained by the company's weak credit
metrics as reflected by net leverage (Ind-Ra adjusted net
debt/operating EBITDAR) of 9.99x in FY18 (FY17: 5.46x) and EBITDA
interest coverage (operating EBITDA/gross interest expense) of
1.06x (2.60x). The deterioration in credit metrics was on account
of an increase in total debt to INR316 million in FY18 (FY17:
INR226 million) to fund the increase in working capital
requirements.

The ratings also reflect KSPL's tight liquidity position as
indicated by 95% average maximum utilization of its fund-based
working capital limits for the 12 months ended November 2018.
Cash flow from operations turned negative to INR37 million in
FY18 from positive INR26 million in FY17, mainly due to changes
in working capital.

However, the ratings are supported by the company's promoters'
three decades of experience in the textile industry.

RATING SENSITIVITIES

Positive: A substantial improvement in the revenue and EBITDA
margin, leading to an improvement in the overall credit metrics
on a sustained basis could be positive for the ratings.

Negative: Any decline in the EBITDA margin, leading to a
sustained deterioration in the overall credit metrics could be
negative for the ratings.

COMPANY PROFILE

KSPL was incorporated in June 2002 and promoted by Mr. Balvantrai
Agarwal and family. The company manufactures cotton yarn at its
facility in Ahmedabad, Gujarat. KSPL is a part of Kumar Group,
which comprises Venus Denim ('IND BBB-'/Stable), Vishal Spintex
('IND BB'/Stable) and Kumar Cotton Mills Private Limited.


MAITHAN ISPAT: CARE Lowers Rating on INR576.37cr Loan to D
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Maithan Ispat Limited (MSL), as:

                    Amount
   Facilities    (INR crore)    Ratings
   ----------    -----------    -------
   Long Term Bank    576.37    CARE D Revised from CARE BB- (SO),
   Facilities                   Issuer not cooperating

   Short Term Bank   131.48    CARE D Revised from CARE A4 (SO),
   Facilities                   Issuer not cooperating

Detailed Rationale & Key Rating Drivers

The revision in the ratings assigned to the bank facilities of
MSL takes into account on-going delays in debt servicing. The
ratings are further constrained by on-going litigation against
promoters and weak financial risk profile.

Key Rating Weakness

On-going delays in debt servicing: There are on-going delays in
debt servicing as the operation of the company was further
impacted due to lower capacity utilisation of Heavy Section Steel
which led to under absorption of fixed overheads leading to cash
losses.

On-going litigations against the promoters: The promoters of the
company are facing few legal cases filed by Central Bureau of
Investigation (CBI) in 2000. The promoter directors; Mr. J. K.
Singh, Ms. Rita Singh and Ms. Natasha Singh have been charged in
their individual capacities in 2 of the cases; whereas Mideast
(India) Ltd. (holds 23.61% in Mideast Integrated Steels Ltd) has
been charged in 2 other cases. However, MISL is not charged in
any of these cases.

Weak financial risk profile: The total operating income of
company increased by ~24% y-o-y to INR517.60 crore in FY18 as
against INR417.96 crore in FY17. PBILDT margin improved from
5.06% in FY17 to 5.73% in FY18. However, the company continues to
report cash losses due to high interest burden. The term debt
repayment in FY18 was met mainly through funds from equity
infusion, and unsecured loans from promoters. MIL's total debt
continued to be high at INR 508.02 crore as on March 31, 2018.
Net-worth of the company continued to remain negative in FY18.

Key Rating Strengths

Experienced promoters: The promoters of the company: Mr. J. K
Singh and Ms. Rita Singh have over a decade of experience in
mining industry. The day-to-day operations of company are handled
by a team of qualified and experienced professionals headed by
Ms. Rita Singh (Chairman and Managing Director).

Liquidity: The current ratio of the company was 0.57x as on
March 31, 2018. Further, the liquidity position was tight on the
back of almost full utilization of its fund based working capital
limit during the past twelve months ending October 31, 2018.
However, MIL had cash & bank balance of INR32.45 crore as on
March 31, 2018

Maithan Ispat Ltd, was incorporated in August 2003, by Maithan
group for setting up an integrated steel plant comprising
manufacturing facilities like Sponge iron (capacity 2,30,000 TPA)
& billets (capacity 2,46,000 TPA), heavy section steel
(capacity 3,76,000 TPA) and captive power plant of 30 MW, in
phases, at Kalinganagar Industrial Complex, Orissa. On
March 31, 2015, MESCO group through its group company Mideast
Integrated Steels Ltd (MISL) acquired MIL by taking
99.28% stake in the company.


MILTECH INDUSTRIES: CARE Withdraws 'D' Loan Ratings
---------------------------------------------------
CARE has withdrawn the outstanding ratings of 'CARE D' assigned
to the bank facilities of Miltech Industries Private Limited
(MIPL) with immediate effect.

   Facilities           Rating Action
   ----------           -------------
   Long-term Bank       Revised from CARE B+; Stable to CARE D
   Facilities           and withdrawn

   Short-term Bank      Revised from CARE A4 to CARE D; and
   Facilities           Withdrawn

Detailed Rationale, Key Rating Drivers and Detailed description
of the key rating drivers

The revision in the ratings assigned to the bank facilities of
MIPL to CARE D factors in the on-going delay in debt servicing
with the account being classified as NPA by the bank.

CARE has withdrawn the outstanding ratings of 'CARE D' assigned
to the bank facilities of MIPL with immediate effect. The above
action has been taken at the request of MIPL and 'No Objection
Certificate' received from the bank that has extended the
facilities rated by CARE.

Key Rating Weaknesses

Delay in debt servicing: As informed by the banker, the account
of Miltech Industries Private Limited (MIPL) has turned into an
NPA on November 25, 2018 after continuing as a stressed asset for
a considerable time.

Miltech Industries Pvt Ltd (MIPL), previously known as Miltech
Metals Private Limited was promoted as 'Nityanand Packaging and
Allied Industries Pvt Ltd' by Mr. Govindlal Nityanand Agarwal.
MIPL commenced commercial activity in 1991 with its first
manufacturing facility at Nagpur producing plastic injection
moulded components mainly to cater to the requirements of the
Defence Ordnance factories (all over India). In August 2005, MIPL
setup an additional injection moulding manufacturing facility in
Rajangoan near Pune mainly to undertake manufacturing of parts
and components for white goods and automobile units.


NANO-AGRO FOODS: CRISIL Assigns B+ Rating to INR10cr Cash Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facilities of Nano-Agro Foods Private Limited (NAFPL).

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Cash Credit            10        CRISIL B+/Stable (Assigned)

   Proposed Fund-
   Based Bank Limits       1        CRISIL B+/Stable (Assigned)

The rating reflects a weak financial risk profile, a modest scale
of operations, and susceptibility to volatility in raw material
prices. These rating weaknesses are partially offset by the
extensive industry experience of the promoters in the cotton
ginning industry and locational advantage for raw material
availability.

Analytical Approach

Unsecured loans of INR1.69 crore have been treated as neither
debt nor equity as these have been in the business for the past
three fiscals and will be maintained over the medium term.

Key Rating Drivers & Detailed Description

Weaknesses:

* Weak financial risk profile: The networth was modest at INR3.35
crore and the gearing high at 2.36 times, as on March 31, 2018.
Low profitability, along with a high dependence on the working
capital limit, resulted in weak debt protection metrics; the
interest coverage and net cash accrual to total debt ratios were
1.3 times and 0.02 time, respectively, in fiscal 2018.

* Susceptibility to volatility in raw material prices: The cost
of cotton, the main raw material, accounts for 85-90% of the cost
of production. As the price of cotton has been highly volatile in
past and is expected to remain so, the operating margin will
remain highly susceptible to changes in input cost.

Strengths:

* Extensive industry experience of the promoters: The promoters
have been in the cotton ginning business for more than a decade.
They have thus developed a strong relationship with farmers and
other suppliers, enabling efficient procurement.

* Locational advantage for raw material availability: The plant
is located in the Saurashtra region of Gujarat, which is the
largest raw cotton producing area in India. This results in lower
transportation cost and an easy access to quality raw material.

Outlook: Stable

CRISIL believes NAFPL will continue to benefit from the extensive
industry experience of its promoters and established relationship
with customers. The outlook may be revised to 'Positive' if there
is a substantial and sustained increase in revenue and
profitability, or significant improvement in the capital
structure on the back of sizeable equity infusion. The outlook
may be revised to 'Negative' in case of a steep decline in
profitability, or significant deterioration in the capital
structure caused most likely by large, debt-funded capital
expenditure or a stretch in the working capital cycle.

Set up in 2007, NAFPL is promoted by Mr. Bhavesh Kotadia and Mr.
Mansukhlal Gondalia. The company gins and presses raw cotton to
produce cotton bales and cotton seeds.


NECX PRIVATE: CRISIL Reaffirms B- Rating on INR4.03cr Term Loan
---------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facilities
of NEcX Private Limited (NPL) at 'CRISIL B-/Stable.

                     Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Cash Credit           4         CRISIL B-/Stable (Reaffirmed)

   Funded Interest
   Term Loan             0.84      CRISIL B-/Stable (Reaffirmed)

   Proposed Long Term
   Bank Loan Facility    1.13      CRISIL B-/Stable (Reaffirmed)

   Working Capital
   Term Loan             4.03      CRISIL B-/Stable (Reaffirmed)

The rating reflects NPL's modest scale of operations in systems
integration and education services business, weak financial risk
profile because of subdued capital structure and weak debt
protection metrics. The weaknesses are partially offset by the
promoter's extensive industry experience.

Key Rating Drivers & Detailed Description

Weaknesses

* Moderate scale of operations: Scale of operations is likely to
remain small over the medium term as well, as reflected in the
revenue of INR21.43 Cr in fiscal 2018. Modest scale of operations
not only prevents the company from taking advantage of benefits
that come out of economies of scale, but also restricts its
pricing power with Multi-National Companies (MNC's) it deals
with.

* Weak financial risk profile: The financial risk profile is weak
because of subdued capital structure and weak debt protection
metrics. NPL's networth was modest at INR0.44 Crores as on
March 31, 2018.The gearing was 34.18 times during the same
period. The company has no debt funded capex plan, but large
working capital debt will keep the capital structure weak over
the medium term.

Strengths

* Extensive industry experience of promoters: Mr. Srinivas Rao
has extensive entrepreneurial experience for over a decade. He
initially started as a small dealer for electronic items and
office equipment in 1992. Over the years he has developed the
company into one of the leading systems integrators of IT
solutions and Education Services business in Andhra Pradesh and
Telangana. The company is a cloud solutions partner for Microsoft
(gold certified) and is also Oracle University Partner.

Outlook: Stable

CRISIL believes NPL will continue to benefit from its promoter's
extensive industry experience and established relationships with
key suppliers. The outlook may be revised to 'Positive' in case
of sustainable increase in revenue and profitability leading
improvement in financial risk profile, particularly liquidity, or
sizeable capital infusion resulting in a better capital
structure. The outlook may be revised to 'Negative' if large,
debt-funded capex, weakens the capital structure, or if revenue
or profitability declines resulting in weak financial risk
profile.

NPL, incorporated in 2005, by Mr. Y Srinivas Rao, is a systems
integrators in IT solutions and education services business.


NETTOS EXPORTING: CRISIL Migrates B+ Rating to Not Cooperating
--------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Nettos
Exporting and Importing Company (NEIC) to 'CRISIL B+/Stable
Issuer not cooperating'.

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Export Packing        13        CRISIL B+/Stable (ISSUER NOT
   Credit                          COOPERATING; Rating Migrated)

CRISIL has been consistently following up with NEIC for obtaining
information through letters and emails dated August 28, 2018 and
September 28, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of NEIC. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on NEIC is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.

Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of NEIC to 'CRISIL B+/Stable Issuer not cooperating'.

Furthermore, the company has not paid the fee for conducting
rating surveillance as agreed to in the rating agreement.

Kerala-based NEIC, set up in 2014, processes and exports
cuttlefish, squid, shrimp, and fish oil. The firm is promoted by
Mr. Terrance Netto.


NIKKI STEELS: Ind-Ra Migrates B+ Issuer Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Nikki Steels
Private Limited's Long-Term Issuer Rating to the non-cooperating
category. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency.
Therefore, investors and other users are advised to take
appropriate caution while using these ratings. The rating will
now appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.

The instrument-wise rating action is:

-- INR100 mil. Fund-based facilities migrated to non-cooperating
    category with IND B+ (ISSUER NOT COOPERATING)/IND A4
    (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
January 4, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Established in 2006, Ghaziabad-based Nikki Steels supplies steel
bars, steel sheets and plates, coils, plates, metal wires, mild
steel pipes and tubes to various construction and engineering
companies.


PIMS MEDICAL: CRISIL Migrates B- Rating to Not Cooperating
----------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Pims Medical
and Education Charitable Society (PIMS) to 'CRISIL B-/Stable
Issuer not cooperating'.

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Cash Credit            10       CRISIL B-/Stable (ISSUER NOT
                                   COOPERATING; Rating Migrated)

CRISIL has been consistently following up with PIMS for obtaining
information through letters and emails dated August 28, 2018 and
September 28, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PIMS. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PIMS is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.

Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of PIMS to 'CRISIL B-/Stable Issuer not cooperating'.

PIMS was set up by the Government of Punjab in 1999 to establish
a medical college-cum-teaching hospital.  It was later converted
into a public private partnership society and taken over by a
professional board in 2013. The society operates a hospital and
medical college in its campus in Jalandhar.


R.R. DWELLINGS: CRISIL Withdraws D Rating on INR18cr Term Loan
--------------------------------------------------------------
CRISIL has withdrawn its rating on bank facility of R.R.
Dwellings Private Limited (RRDPL) following a request from the
company and on receipt of a 'no dues certificate' from the
banker.

                   Amount
   Facilities    (INR Crore)    Ratings
   ----------    -----------    -------
   Term Loan           18       CRISIL D (Migrated from 'CRISIL D
                                ISSUER NOT COOPERATING'; Rating
                                Withdrawn)

Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of RRDPL to 'CRISIL D Issuer
not cooperating'. CRISIL has withdrawn its rating on bank
facility of RRDPL following a request from the company and on
receipt of a 'no dues certificate' from the banker. Consequently,
CRISIL is migrating the ratings on bank facilities of RRDPL from
'CRISIL D Issuer Not Cooperating' to 'CRISIL D'. The rating
action is in line with CRISIL's policy on withdrawal of bank loan
ratings.

RRDPL, incorporated in 2008, is part of the Lucknow-based RR
group of companies. It is executing a residential project,
Celebrity Gardens, in Sushant Golf City at Sultanpur Road, in
Lucknow.


RAJARATHNAM CONST'N: CRISIL Moves D Rating to Not Cooperating
-------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Rajarathnam
Construction Private Limited (RCPL) to 'CRISIL D/CRISIL D Issuer
not cooperating'.

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Overdraft             4.5       CRISIL D (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Term Loan           46.97       CRISIL D (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Working Capital      8.53       CRISIL D (ISSUER NOT
   Term Loan                       COOPERATING; Rating Migrated)

CRISIL has been consistently following up with RCPL for obtaining
information through letters and emails dated October 24, 2018,
November 16, 2018 and November 21, 2018 among others, apart from
telephonic communication. However, the issuer has remained non
cooperative.

'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of RCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on RCPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower.

Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of RCPL to 'CRISIL D/CRISIL D Issuer not cooperating'.

RCPL was set up in 1992 as a proprietorship concern in Chennai.
The firm was reconstituted as a private limited company under its
current name in 2000. The company develops residential real
estate and its operations are managed by the managing director,
Mr. Rathinam.


SRI PRANEETH: CRISIL Migrates B+ Rating to Not Cooperating
----------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Sri Praneeth
Enterprises (SPE) to 'CRISIL B+/Stable Issuer not cooperating'.

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Cash Credit            8        CRISIL B+/Stable (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Proposed Long          2        CRISIL B+/Stable (ISSUER NOT
   Term Bank                       COOPERATING; Rating Migrated)
   Loan Facility

CRISIL has been consistently following up with SPE for obtaining
information through letters and emails dated August 28, 2018 and
September 28, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SPE. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SPE is
consistent with 'Scenario 4' outlined in the 'Framework for
Assessing Consistency of Information with '.

Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of SPE to 'CRISIL B+/Stable Issuer not cooperating'.

SPE was set up by Mr. T Chenchu Ramaiah in Ongole, Andhra Pradesh
and is involved in the processing and packaging of tobacco.


SRI SRI PUSHPAVATHI: CARE Assigns B+ Rating to INR9cr LT Loan
-------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Sri
Sri Pushpavathi Agro-Tech Private Limited (SPATPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank
   Facilities           9.00       CARE B+; Stable Assigned

Detailed Rationale& Key Rating Drivers

The ratings assigned to the bank facilities of SPATPL are
tempered by business stabilization and project implementation
risk, geographical concentration risk, highly competitive and
fragmented nature of business. The ratings, however, are
underpinned by the experienced management, financial closure
achieved and 60% of the project completed, location advantage of
the plant and stable demand outlook of cold chain industry.

Going forward, ability of company to complete the project without
any cost and time overrun and further stabilize the operations
and generate revenues and profit levels as envisaged, ability of
the company to enhance its geographical reach will remain the key
rating sensitivities.

Detailed description of the key rating drivers

Key rating weakness

Business stabilization and project implementation risk: The
company is exposed to business implementation risk with respect
to being exposed to delays in project completion due to cost
and/or time overruns, delay in acquiring approvals, inability to
find suitable clientele, inability to penetrate market as
foreseen due to several reasons such as economic uncertainty etc.
Hence completing the project without any cost and time over run
will remain critical from credit perspective.

Geographic concentration risk: The profile of SPATPL is likely to
be limited to the state of Andhra Pradesh, exposing the company
to geographical concentration risk. The storage facility of the
company is located in Andhra Pradesh and concentrated in the area
surrounding Narasaraopet, Guntur District.

Highly competitive and fragmented nature of business
The company is engaged into the business of providing cold
storage facilities on rental basis to farmers. Apart from that
there are numerous organized and unorganized players entering
into the market which makes the industry highly competitive
nature.

Key Rating Strengths

Experienced management: Sri Pushpavathi Agro-Tech Private Limited
(SPATPL) was incorporated as a Private Limited Company in the
year 2014 and is promoted by Mr. N. Venkateswarlu and his family
member. Mr. N. Venkateswarlu is the Managing Director of the
company who takes care of day to day operations. Both the
directors have close to one decade of experience in providing
cold storage facility through their associate concern. Through
their vast experience in the industry the directors have
establish healthy relationship with farmers and local traders in
the market.

Financial closure achieved and 60% of the project completed: The
total cost of the project is estimated to be INR14.49 crore which
is to be funded INR4.76 crore through equity, INR4.90 crore
through bank loan and the balance of INR4.83 crore is through
subsidy from Andhra Pradesh Food Processing Society. Till now the
company has infused total of INR8.90 crore for this project i.e.
INR4.00 crore through equity and INR4.90 crore through bank loan.
The company is expecting to complete the project and start the
commercial operations from January 2019.

Location advantage of the plant: The plant location of the
company is located in Guntur district, which is horticultural
crops growing area and promoters having good network with farmers
and traders. There is abundant availability of inputs such as
Pulses, chilies, turmeric etc. in the proposed area of the
district.

Stable outlook of cold chain industry: Growing annually at 28%,
the total value of cold chain industry in India is expected to
grow going forward driven by increased investments, modernization
of existing facilities, and establishment of new ventures via
private and government partnerships. India's cold chain industry
is still evolving, not well organized and operating below
capacity. The Indian cold chain market is highly fragmented with
more than 3,500 companies in the whole value system. Organized
players contribute only ~8%-10% of the cold chain industry
market. Cold stores are the major revenue contributors of the
Indian Cold Chain industry and are majorly used for storing
agricultural products. However, the market is gradually getting
organized and focus towards multipurpose cold storages is rising.

Andhra Pradesh based, Sri Pushpavathi Agro-Tech Private Limited
(SPATPL) was incorporated in 2014 and promoted by Mr. N.
Venkateswarlu and his family member. The company is planning to
provide cold storage facilities i.e, for preserving agricultural
products like pulses, chillies, termeric etc. at Narsaraopet,
Guntur Dist. Andhra Pradesh. The proposed customers of the
company include farmers and local traders. The company is
planning to set up the cold storage capacity of 10,000 metric
tonnes. Apart from providing cold storage facility the company is
also planning to engage in processing and packaging ofChilli
powder. Current installed capacity for the processing and
packaging of chilli powder is 4 tons per day. The detail of total
cost of the project is tabulated below. The total cost of the
project is estimated to be INR14.49 crore which is to be funded
through equity INR4.76 crore bank term loan INR4.90 crore and the
remaining balance of INR4.83 crore is through subsidy from Andhra
Pradesh Food Processing Society. Till now the company has
incurredtotal cost of INR8.90 crore for the ongoing project i.e.
INR4.00 crore through equity and INR4.90 crore through bank loan.
The company is expecting to complete the project and start the
commercial operations from January 2019.


SRI SRINIVAS: CARE Assigns B+ Rating to INR11cr Long-Term Loan
--------------------------------------------------------------
CARE Ratings has assigned rating to the bank facilities of Sri
Srinivas Industries (SSI), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term Bank
   Facilities          11.00       CARE B+; Stable Assigned

Detailed Rationale & Key Rating Drivers

The rating assigned to the bank facilities of SSI is primarily
constrained on account of susceptibility of its profit margins to
volatility in raw cashew prices and foreign exchange fluctuation
risks and constitution of the entity as a partnership firm. The
rating is further constrained on account of its modest scale of
operations and profitability, moderate capital structure and
moderate debt coverage indicators along with moderate liquidity
position during FY18 ((Prov., refers to the period April 1 to
March 31).

The rating, however, derives strength from the vast experience of
partners of SSI along with established track record of the entity
in the industry.

The ability of SSI to increase scale of operations, profit
margins, capital structure, debt coverage indicators and
liquidity
position are the key rating sensitivities.

Detailed description of the key rating drivers

Key Rating Weaknesses

Volatility in raw cashew prices and foreign exchange fluctuation:
The product offering of the firm includes cashew kernel and other
related products. The products being cultivation based lead to
high volatility in their prices. However, being the manufacturer,
the fluctuating cost of the cashew kernel is passed on to the
customers to a large extent. Further, majority of raw material is
being imported from Indonesia, Tanzania and other African
countries. In absence of any active hedging policy, foreign
exchange fluctuation may impact the profitability of SSI.

Constitution of the entity as a partnership firm: SSI, being a
partnership firm is exposed to inherent risk of capital
withdrawal by the partners, due to its nature of constitution.
Further, any substantial withdrawals from capital account would
impact the net worth and thereby the financial profile of the
firm.

Moderate scale of operations and modest profitability: SSI has
registered moderate TOI of INR40.49 crore in FY18 (Prov.), albeit
it grew at a Compounded Annual Growth Rate (CAGR) of 11.57% for
the period FY16-18 (Provisional) primarily on account of higher
demand its products. Further, the PBILDT margin though improved
remained modest at 6.36% in FY18 (Prov.) from 4.85% in FY16.
Subsequently, PAT margin remained at 1.35% in FY18 (Prov.).

Moderate capital structure coupled with moderate debt coverage
indicators: Capital structure of SSI stood moderate marked by an
overall gearing of 1.92 times as on March 31, 2018 (Prov.) as
against 2.08 times as on March 31, 2017.The debt coverage
indicators of SSI also stood moderate marked by total debt to
GCA of 12.81 years [FY17: 16.61 years] on account of an
improvement in gross cash accrual (GCA) level. Further, interest
coverage remained moderate at 1.89 times in FY18 (Prov.)

Moderate liquidity position: Overall the liquidity position of
the firm stood moderate. During FY18, the working capital cycle
elongated and stood at 146 days while the current ratio stood at
1.60 times. Average working capital utilization remained full
during past 12 months ended August, 2018.

Key Rating Strengths

Vast experience of partners with established track record of
entity in the industry: The firm is operating since 1981,
Initially, SSI was managed by Mr. Vedavyas Prabhu and Ms. Rathna
V Prabhu, both retired in December 2009 and Mr.Vinayaka Prabhu
(s/o Mr. Vedavyas Prabhu) along with his Ms. Vinaya Prabhu joined
as partners. They both possess experience of more than two
decades in the cashew processing industry.

Dakshina Kannada-based (Karnataka) SSI is a partnership firm
formed in the year 1981 by Mr. Vedavyas Prabhu and Ms. Rathna V
Prabhu. They both retired in December, 2009 and Mr.Vinayaka
Prabhu along with his wife Mrs.Vinaya Prabhu joined as partners.
SSI is engaged into cashew processing business. SSI converts raw
cashews into cashew kernel. SSI has its manufacturing facilities
located at Dakshina Kannada with an installed capacity of 20
Metric Tons per day (MTPD) as on August 16, 2018. SSI imports raw
cashews from various countries such as Indonesia, Ivory Coast,
Tanzania etc.


SRUJANA ENTERPRISES: Ind-Ra Assigns BB- LT Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Srujana
Enterprises (SE) a Long-Term Issuer Rating of 'IND BB-'. The
Outlook is Stable.

The instrument-wise rating actions are:

-- INR30 mil. Fund-based working capital facilities assigned
    with IND BB-/Stable/IND A4+ rating; and

-- INR25 mil. Non-fund based working capital facilities assigned
    with IND A4+ rating.

KEY RATING DRIVERS

The ratings reflect SE's low revenue base because of the small
scale of operations. The company's revenue rose to INR196 million
in FY18 (FY17: INR119 million) due to an increase in the number
of orders executed. Its total installed capacity had stood at 300
million components per year till July 2018; subsequently, the
capacity has been expanded by an additional 300 million
components due to the installation of Borderer high-speed
stamping machines. SE's revenue for 1HFY19 was INR140 million.

The ratings are constrained by the proprietorship nature of the
business and tight liquidity, with fund-based facility
utilization of 99% for the 12 months ended September 2018.The
company's cash balance for FY18 was INR0.1 million (FY17:INR 0.7
million). Its cash flow from operation turned negative INR6
million in FY18 (FY17: INR6 million) due to an increase in
interest expenses as well as working capital requirements. SE's
working capital cycle was long at 107 days in FY18 (FY17: 116
days).

However, the ratings are supported by SE's healthy EBITDA margin
and strong credit metrics. The company's RoCE was 21% in FY18 and
the EBITDA margin stood at 12.6% (FY17: 12.0%). SE's leverage
ratio (total adjusted net debt/operating EBITDAR) improved to
1.6x in FY18 (FY17: 2.4x) and the interest coverage ratio
(operating EBITDA/gross interest expense) increased to 4.4x
(FY17: 3.4x). The company's credit metrics will remain strong in
the near term due to the absence of any major debt-funded capex
plans as well as term loans.

The ratings are also supported by the promoters' experience of
more than two decade in the non-ferrous precision high-speed
stamping and engineering components business.

RATING SENSITIVITIES

Positive: A sustained improvement in the revenue and stable
EBITDA margin with comfortable liquidity and strong credit
metrics will be positive for the ratings.

Negative:  An elongated working capital cycle, leading to stress
on the liquidity position of the company, all on a sustained
basis, will be negative for the ratings.

COMPANY PROFILE

SE was established by Mr. Rajanna in 1994. The firm has a
manufacturing unit specializing in the non-ferrous precision
high-speed stamping and engineering components business. The firm
develops the high-speed stamping and engineering components as
per the customer's requirements and supplies to original
equipment manufacturers s in the automotive industry, aerospace
industry and other engineering sectors in India and overseas.


SUCHI FASTENERS: Ind-Ra Lowers Long Term Issuer Rating to 'D'
-------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Suchi
Fasteners Private Limited's (SFPL) Long-Term Issuer Rating to
'IND D' from 'IND BB-'. The Outlook was stable.

The instrument-wise rating actions are:

-- INR67.50 mil. Fund-based limits (Long term/Short term)
     downgraded with IND D rating;

-- INR1.027 mil. (Reduced from INR1.14 mil.) Working capital
     demand loan (Long term) downgraded with IND D rating; and

-- INR86.5 mil. Non-fund-based limits (Short term) downgraded
     with IND D rating.

KEY RATING DRIVERS

The downgrade reflects SFPL's stressed liquidity that led to
delays in debt servicing during the three months ended October
2018.

RATING SENSITIVITIES

Positive: Timely debt servicing for at least three consecutive
months could result in a positive rating action.

COMPANY PROFILE

SFPL manufactures all types of stainless steel washers.


SWATHI RICE: CARE Lowers Rating on INR5.05cr LT Loan to B+
----------------------------------------------------------
CARE Ratings revised the ratings on certain bank facilities of
Swathi Rice Mill Company Private Ltd. (SRMPL), as:

                    Amount
   Facilities     (INR crore)   Ratings
   ----------     -----------   -------
   Long term Bank      5.05     CARE B+; Issuer not cooperating;
   Facilities                   Revised from CARE BB-; Issuer Not
                                Cooperating; Based on best
                                available information

Detailed Rationale & Key Rating Drivers

CARE has been seeking information from SRMPL to monitor the
rating vide e-mail communications/letters dated Nov. 6, 2018,
Nov. 15, 2018, Nov. 19, 2018 and numerous phone calls. However,
despite our 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 which however, in
CARE's opinion is not sufficient to arrive at a fair rating. The
rating on Swathi Rice Mill Company Private Limited's bank
facilities will now be denoted as CARE B+; ISSUER NOT
COOPERATING. The lender also could not be contacted.

The revision in the rating takes into account the decline in
total operating income and profit levels during FY17. The rating
also takes into account SRMPL's small scale of operations,
volatility in profit margins subject to government regulations,
seasonal nature of availability of paddy resulting in working
capital intensity and exposure to vagaries of nature, fragmented
and competitive nature of industry. The rating, however, drives
comfort from the experienced promoters and proximity to raw
material sources.

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

Key Rating Weaknesses

Small scale of operations: The scale of operations of SRMPL
remained small marked by total operating income of INR20.06 crore
and a PAT of INR0.17 crore in FY17. Further, the total capital
employed of the company was also low at INR6.64 crore as on
March.31, 2017.

Volatility in profit margins subject to government regulations:
The Government of India (GOI), every year decides a minimum
support price (MSP-to be paid to paddy growers) for paddy which
limits the bargaining power of rice millers over the farmers. The
MSP of paddy has increased during the crop year 2018-19 to
INR1750/quintal from INR1550/quintal in crop year 2017-18. Given
the market determined prices for finished product vis-Ö-vis fixed
acquisition cost for raw material, the profitability margins are
highly vulnerable. Such a situation does not augur well for the
company, especially in times of high paddy cultivation.

Seasonal nature of availability of paddy resulting in working
capital intensity and exposure to vagaries of nature: Rice
milling is a working capital intensive business, as the rice
millers have to stock paddy by the end of each season till the
next season since the price and quality of paddy is better during
the harvesting season. Further, while paddy is sourced generally
on cash payment, the millers are required to extend credit period
to their customers. Accordingly, average working capital
utilization remained moderately high at 95% during the last 12
months ended June 30, 2016. Also, paddy cultivation is highly
dependent on monsoons, thus exposing the fate of the company's
operation to vagaries of nature.

Fragmented and competitive nature of industry: SRMPL's plant is
located in Malda district, which is an important paddy/rice
cultivating region of the state which accounts for one-tenth of
the total rice production in the country. Owing to the advantage
of close proximity to raw material sources, several units are
engaged in milling and processing of rice in the district. This
has resulted in intense competition which is also fuelled by low
entry barriers. Given that the processing activity does not
involve much of technical expertise or high investment, the entry
barriers are low.

Key Rating Strengths

Experienced & Qualified promoters: The promoters of SRMPL are
having around a decade of experience in this line of business.

Proximity to raw material sources: SRMPL's plant is located at
Malda district in West Bengal which is in the midst of paddy
growing areas of the state. The entire raw material requirement
is met locally from the farmers (or local agents) which helps the
company to save on substantial amount of transportation cost and
also procure raw materials at effective prices.

SRMPL, incorporated in April 2008 by Mr. Provash Chowdhury, Mr.
Sushil Biswas, Mr. Arun Saha, Mr. Biplab Paul, Mr. Surajit
Gadhadhar Paul, Mr. Arun Saha, Mrs. Parbati Paul and Mrs. Sujata
Saha of Malda, West Bengal. SRMPL is into processing and milling
of non-basmati rice with an aggregate installed capacity of
54,000 metric ton per annum. The milling unit of the company is
located at Malda, West Bengal. SRMPL procures paddy from farmers
& local agents and sells its products through the wholesalers and
distributors within the state.


V S S JEWELLERS: CRISIL Lowers Rating on INR1.25cr Loan to B-
-------------------------------------------------------------
CRISIL has downgraded its rating on long term bank facilities of
V S S Jewellers (VSSJ) to 'CRISIL B-/Stable' from 'CRISIL
B/Stable'; while short term rating reaffirmed at 'CRISIL A4'.

                      Amount
   Facilities       (INR Crore)     Ratings
   ----------       -----------     -------
   Bank Guarantee        4.75       CRISIL A4 (Reaffirmed)

   Cash Credit/          1.25       CRISIL B-/Stable (Downgraded
   Overdraft facility               from 'CRISIL B/Stable')

The rating downgrade reflects weak financial risk profile marked
by increase in gearing and weakening of debt protection metrics
along with depletion in the Net Cash Accruals cushion against
repayment obligations. Also the working capital requirement has
become intense marked by increased GCA days, resulting in high
utilization of bank limits.

The rating continues to reflect VSSJ's modest scale of operations
in a highly fragmented industry and weak financial risk profile.
These weaknesses are partially offset by proprietor's extensive
experience in Jewellery manufacturing.

Key Rating Drivers & Detailed Description

Weakness:

* Modest scale of operations in a fragmented industry: The firm's
scale of operations is modest and it operates in a highly
competitive market with low entry barriers, easy availability of
raw material (gold), large number of incumbent as well as
established players.

* Weak financial risk profile: The financial risk profile is
marked by leveraged capital structure. With modest net worth
resulting from low accruals and high incremental working
requirement leading to higher funding requirement, CRISIL
believes company's gearing would remain high, over the medium
term

Strengths:

* Extensive experience of the proprietor: The firm is owned and
managed by Mr. R Vishwanathan. He is part of the third generation
of gold manufacturers and has strong, established relationships
with the customers.

Outlook: Stable

CRISIL believes VSSJ will benefit over the medium term from its
proprietor's extensive experience. The outlook may be revised to
'Positive' if the firm reports higher sales and profitability
resulting in improvement in capital structure. Conversely, the
outlook may be revised to 'Negative' in case of less-than-
expected cash accrual, or stretch in working capital cycle, or
larger-than-expected debt-funded capital expenditure, resulting
in weakening of financial risk profile.

VSSJ was set up in 2011 as a proprietorship concern of Mr. R
Vishwanathan in Coimbatore (Tamil Nadu). It is engaged in
manufacturing of gold Jewellery.


VENTURE IMPEX: CRISIL Migrates B+ Rating to Not Cooperating
-----------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Venture
Impex (VI) to 'CRISIL B+/Stable Issuer not cooperating'.

                     Amount
   Facilities      (INR Crore)   Ratings
   ----------      -----------   -------
   Cash Credit          9.9      CRISIL B+/Stable (ISSUER NOT
                                 COOPERATING; Rating Migrated)

   Proposed Long Term   5.1      CRISIL B+/Stable (ISSUER NOT
   Bank Loan Facility            COOPERATING; Rating Migrated)

CRISIL has been consistently following up with VI for obtaining
information through letters and emails dated August 28, 2018 and
September 28, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.

Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of VI. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on VI is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.

Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of VI to 'CRISIL B+/Stable Issuer not cooperating'.

Furthermore, the company has not paid the fee for conducting
rating surveillance as agreed to in the rating agreement.

Venture Impex (VI) a proprietorship concern of Mr. Vikrant
Aggarwal is engaged in trading in petroleum products such as
different types of lubricant and fuels since 2001. The products
are majorly lubricants and fuels.


VISHAL SPINTEX: Ind-Ra Assigns BB Issuer Rating, Outlook Stable
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned Vishal Spintex a
Long-Term Issuer Rating of 'IND BB'. The Outlook is Stable.

The instrument-wise rating actions are:

-- INR160 mil. Fund-based facilities assigned with IND BB/
    Stable/IND A4+ rating;

-- INR468.8 mil. Long-term loans due on December 2025 assigned
    with IND BB/Stable rating; and

-- INR36.7 mil. Non-fund-based facilities assigned with IND A4+
    rating.

KEY RATING DRIVERS

The ratings reflect Vishal Spintex's weak credit metrics as
reflected by net leverage (Ind-Ra adjusted net debt/operating
EBITDAR) of 5.36x in FY18 (FY17: 4.86x) and EBITDA interest
coverage (operating EBITDA/gross interest expense) of 2.01x
(2.72x). The deterioration in credit metrics was attributed to an
increase in debt to INR631 million in FY18 (FY17: INR303 million)
to fund its working capital requirements. The firm's return on
capital employed was 11% in FY18 (FY17: 8%) and EBITDA margin was
modest at 9.76% (9.40%). Ind-Ra expects the EBITDA margin to
range between 9% and 10% in the near term.

The ratings are also constrained by the firm's tight liquidity
position with 98% average maximum utilization of its fund-based
working capital limits for the 12 months ended November 2018.
Cash flow from operations turned positive to INR53 million in
FY18 from negative INR31 million in FY17 due to an increase in
absolute EBITDA to INR118 million (INR62 million). However, free
cash flow remained negative INR390 million in FY18 (FY17:
negative INR12 million) due to capex incurred for additional
capacity of 672 rotors.

The ratings also factor in the firm's medium scale of operations
as reflected by revenue of INR1,206 million in FY18 (FY17: INR659
million). The growth in revenue was mainly attributed to stable
order book and enhanced open-end spinning capacity. The firm
booked revenue of INR910 million in 6MFY19.

The ratings are also constrained by the partnership nature of
business.

However, the ratings are supported by the firm's promoters' three
decades of experience in the textile industry.

RATING SENSITIVITIES

Positive: A substantial improvement in the revenue and EBITDA
margin, leading to an improvement in the overall credit metrics,
on a sustained basis, could be positive for the ratings.

Negative: A decline in the EBITDA margin and an increase in debt-
led capex, leading to a sustained deterioration in the overall
credit metrics could be negative for the ratings.

COMPANY PROFILE

Vishal Spintex was incorporated in April 2014 and promoted by Mr.
Balvantrai Agarwal and his family. The firm manufactures cotton
yarn at its manufacturing unit located in Ahmedabad, Gujarat.
Vishal Spintex is a part of Kumar Group which also includes Venus
Denim ('IND BBB-'/Stable), Kumar Spintex Private Limited ('IND
BB-'/Stable) and Kumar Cotton Mills Private Limited.


VISHNURAAM TEXTILES: CRISIL Migrates D Rating to Not Cooperating
----------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Vishnuraam
Textiles Limited (VTL) to 'CRISIL D/CRISIL D Issuer not
cooperating'.

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Bank Guarantee        .11       CRISIL D (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Cash Credit          4.30       CRISIL D (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Letter of Credit     2.75       CRISIL D (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Long Term Loan       6.82       CRISIL D (ISSUER NOT
                                   COOPERATING; Rating Migrated)

CRISIL has been consistently following up with VTL for obtaining
information through letters and emails dated August 28, 2018 and
September 28, 2018 among others, apart from telephonic
communication. However, the issuer has remained non cooperative.

'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed
with the suffix 'ISSUER NOT COOPERATING'. These ratings lack a
forward looking component as it is arrived at without any
management interaction and is based on best available or limited
or dated information on the company.


Detailed Rationale

Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of VTL. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on VTL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.

Therefore, on account of inadequate information and lack of
management cooperation, CRISIL has migrated the rating on bank
facilities of VTL to 'CRISIL D/CRISIL D Issuer not cooperating'.

Furthermore, the company has not paid the fee for conducting
rating surveillance as agreed to in the rating agreement.

Incorporated in 1990, VTL is into manufacturing of cotton yarn.
The company has its manufacturing facilities in Tirupur and
Udumalpet.



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


STEEL PIPE: Moody's Withdraws B2 CFR for Business Reasons
---------------------------------------------------------
Moody's Investors Service has withdrawn Steel Pipe Industry of
Indonesia Tbk (P.T.) B2 corporate family rating and the negative
outlook on the rating.

RATINGS RATIONALE

Moody's has decided to withdraw the rating for its own business
reasons.

Spindo is a leading steel pipe manufacturer in Indonesia,
producing a variety of customized and standardized carbon and
stainless steel pipes, and pipe-related products and services.
Spindo's products are used by customers in the construction,
infrastructure, utilities, oil and gas, furniture and automotive
industries, and the products are sold under the Spindo and
Tetsura brands. Spindo operates six manufacturing facilities in
Indonesia, with a total of 37 steel pipe production lines.


WIJAYA KARYA: Fitch Corrects December 10 Press Release
------------------------------------------------------
Fitch Ratings replaced a ratings release published on
December 10, 2018 to correct the name of the obligor for the
bonds.

Fitch Ratings has revised Indonesia-based construction company PT
Wijaya Karya (Persero) Tbk's (WIKA) Outlook to Negative from
Stable. At the same time, the agency has affirmed the company's
Long-Term Issuer Default Rating (IDR) at 'BB'. Fitch Ratings
Indonesia has also revised the Outlook on the National Long-Term
Rating to Negative from Stable, and affirmed the rating at
'AA(idn)'.

The Outlook revision reflects risks that WIKA's financial profile
will weaken due to potential investments in further government
infrastructure projects. The company's leverage, measured by net
adjusted debt/ adjusted EBITDA, could increase to above 2x, the
level at which Fitch would consider negative rating action, and
remain above that in the medium term. Nevertheless, pressure on
the financial profile in the medium to long term may be
alleviated by improving cash flow generation, driven by robust
order-book growth, which stems from WIKA's strong market position
as one of the largest state-owned construction companies in
Indonesia.

WIKA's ratings incorporate a two-notch uplift from its standalone
credit profile of 'B+'/'A+(idn)' to reflect Fitch's expectation
of exceptional support from its parent, the government of
Indonesia (BBB/Stable), during distress scenarios.

'AA' National Ratings denote expectations of very low default
risk relative to other issuers or obligations in the same
country. The default risk inherent differs only slightly from
that of the country's highest-rated issuers or obligations.

KEY RATING DRIVERS

Investment Pipeline Raises Leverage: Fitch forecasts WIKA's
leverage will rise above 2x in 2020, mainly due to the company's
plan to invest in large infrastructure projects over the next few
years, in line with the government's focus on this area. Fitch
forecasts investment outflow of IDR4 trillion-5 trillion in 2018-
2019, which is likely to put pressure on WIKA's financial
profile. However, the investments are uncommitted in nature and a
change in government after elections next year may shift the
focus away from infrastructure, which may affect WIKA's capex in
the medium term.

Healthy Order Book Growth: WIKA's order book increased by CAGR of
25% in 2012-2017, bringing it to IDR107 trillion in 2017, around
4% above its expectation. However, new orders secured in 9M18
have fallen around 20% yoy, although the company forecasts growth
to pick up in 4Q18, driven by expectations that a number of large
government-related infrastructure projects will be awarded at the
end of the year.

Fitch forecasts new orders to reach IDR45 trillion in 2018, lower
than the management's forecast of IDR58 trillion, as its rating
case scenario factors in risks of delays in the tender process of
some larger government-related projects. New contract wins over
the medium term are likely to ease gradually as the company
focuses on executing its existing order book to improve revenue
recognition and cash flows. Nevertheless, construction order
book/adjusted revenue should remain high at between 3.5x and 4.0x
in 2019-2021.

Small Scale, Cash Flow Deficit: WIKA's standalone credit profile
of 'B+'/'A+(idn)' reflects its small operating scale relative to
global and national peers. Fitch expects WIKA to continue to
expand quickly over the next few years as it recognises the
revenue and cash flow from its enlarged order book. Therefore,
Fitch expects WIKA to post negative free cash flow (FCF), after
investments in joint ventures and associates, for the medium
term. This will be partly counterbalanced by WIKA's strong access
to domestic credit markets due to its association with the
government and government-sponsored construction projects.

Linkage to Government: WIKA's ratings benefit from a two-notch
uplift from its standalone profile, based on Fitch's Government-
Related Entities (GRE) Rating Criteria. Fitch assesses that WIKA
has strong linkages with the Indonesian sovereign, which owns a
65% stake. Nevertheless Fitch assesses that the parent's
incentive to provide support is weak to moderate, primarily due
to Fitch's assessment that a default by WIKA would have only weak
financial implications for the government.

The government's plan to create a holding company for all state-
owned contractors, including WIKA, may lead to a reassessment of
the linkage and the relevant criteria. However, there is
currently uncertainty, not only regarding which entity will be
the holding company of the state-owned contractors, but also the
timing of the government's restructuring of state-owned
enterprises.

DERIVATION SUMMARY

WIKA's standalone credit profile may be compared with that of
international peers, such as Grupo Aldesa S.A. (B/Stable),
Obrascon Huarte Lain SA (OHL; B+/Stable) and Salini Impregilo
S.p.a (BB+/Stable). Compared with Aldesa, Fitch believes WIKA's
larger operating scale in terms of order book and EBITDA, wider
profit margins and stronger financial profile justify a one-notch
difference between their credit profiles. Fitch also believes
WIKA has stronger growth prospects from its heavy exposure to
government-related infrastructure projects in Indonesia.

WIKA has a larger operating scale and wider profit margins than
OHL, but has a stronger financial profile. Fitch expects OHL to
be in a net cash position over the next three years. Fitch also
believes OHL's more geographically diversified order book offsets
the benefit from WIKA's strong domestic market position, which
results in a similar credit profile for both names. The multiple-
notch difference between the credit profiles of WIKA and Salini
is due to the latter's significantly larger operating scale and
stronger financial profile. Salini's better project and
geographical diversification, which spans over 50 countries
compared to WIKA's Indonesia-centric operations, further
justifies the difference in rating level.

On the National rating scale, WIKA may be compared with PT Sri
Rejeki Isman Tbk (Sritex/A+(idn)/Stable) and PT Waskita Karya
(Persero) Tbk (A(idn)/standalone BBB+(idn)/Stable). Compared with
Sritex, WIKA's cash flows are more cyclical as they are linked to
the pace at which the Indonesian government executes its
infrastructure programme. WIKA's order book and cash flows
increased strongly in the last few years as Indonesia made
improving the country's infrastructure a priority. Nevertheless,
WIKA's stronger financial profile than Sritex compensates for its
more cyclical cash flows. As a result, WIKA's standalone credit
profile is the same as the rating on Sritex.

Waskita has a larger operating scale, measured by order book and
EBITDA, and has wider profit margins than WIKA. However, Fitch
believes WIKA benefits from more prudent operational and
financial management, which gives it a significantly stronger
financial profile. WIKA also has better revenue visibility given
its higher order book backlog ratio compared to Waskita. Fitch
also believes Waskita's liquidity to be tighter than that of
WIKA, as the former is more exposed to turnkey projects, which
require significant prefunding of working capital. Cash inflow
after project completion is also very much dependent upon
successful divestment of the projects. As a result, Fitch thinks
the multiple-notch difference between the standalone credit
profiles of Waskita and WIKA is appropriate.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within its Rating Case for the Issuer

  - New orders to increase by 30% in 2018 and 20% in 2019

  - EBITDA margin to remain stable at 10%-11% in 2018-2021

  - Aggregate capex of around 2%-3% of revenue annually

  - Investments of around IDR5 trillion in 2018-2019

RATING SENSITIVITIES

Developments that May, Individually or Collectively, Lead to the
Outlook being revised to Stable

  - Improvement in leverage, as measured by net adjusted debt/
adjusted EBITDA, to below 2x for a sustained period, without any
weakening in the credit profile of Indonesia and/or linkages
between WIKA and the government

Developments that May, Individually or Collectively, Lead to a
Downgrade

  - Further deterioration in leverage to above 2x for a sustained
period (2017: net cash)

  - Weakening credit profile of Indonesia and/or weakening
linkages between WIKA and the government

LIQUIDITY

Adequate Liquidity: WIKA had readily available cash of IDR8.5
trillion at September 30, 2018, compared with IDR5.7 trillion of
short-term maturities. Fitch believes WIKA has adequate liquidity
to cover its maturing term loans, and Fitch expects WIKA's strong
access to domestic credit markets to support the company's
projected negative free cash flow (after investments) in the
medium term. WIKA's strong access to domestic credit markets,
particularly to state-owned banks, stems from its association
with the state and its strong operating record, which further
underpins its liquidity profile.

FULL LIST OF RATING ACTIONS

PT Wijaya Karya (Persero) Tbk

  - Long-Term IDR affirmed at 'BB'; Outlook revised to Negative
from Stable

  - Long-Term Local-Currency IDR affirmed at 'BB'; Outlook
revised to Negative from Stable

  - IDR5.4 trillion senior unsecured Komodo bond affirmed at 'BB'

  - National Long-Term Rating affirmed at 'AA(idn)'; Outlook
revised to Negative from Stable



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


SOFTBANK GROUP: Moody's Affirms Ba1 CFR, Outlook Stable
-------------------------------------------------------
Moody's Japan K.K. has affirmed SoftBank Group Corp.'s Ba1
corporate family and senior unsecured ratings. The rating outlook
remains stable.

This rating action follows the IPO of SoftBank's domestic mobile
telecommunications subsidiary, SoftBank Corp., which started
trading on the Tokyo Stock Exchange on December 19, 2018. This
offering worth JPY2.6 trillion for 37% of SoftBank Corp. is one
of the largest by a Japanese company.

RATINGS RATIONALE

"SoftBank's Ba1 corporate family rating reflects its credit
quality as an investment holding company, with a low level of
leverage at the holding company level measured by net debt
against the market value of investment portfolio and good
disclosure and transparency in relation to its core investments,"
says Motoki Yanase, a Moody's Vice President and Senior Credit
Officer.

"SoftBank Corp.'s IPO will mark a milestone in SoftBank's
evolution towards becoming an investment holding company," adds
Yanase. "The number of acquisitions and new investments over the
past few years has moved SoftBank's business model quickly
towards that of an investment holding company rather than a
traditional telecommunications company."

SoftBank's credit strength lies in the substantial value of its
investment portfolio. As an investment holding company, Moody's
asses Softbank's leverage using market value-based leverage.
Moody's estimates that SoftBank's market value-based leverage
will be strong, at around 20%, incorporating SoftBank Corp.'s
equity value after the IPO. This situation translates to a close
to three times coverage of the holding company debt, with its
investment portfolio and cash held by the holding company.

The investment portfolio also shows good transparency, due to the
large proportion of listed stocks, led by Alibaba Group Holding
Limited (A1 stable), Sprint Corporation (B2 review for upgrade),
Yahoo Japan Corporation, and SoftBank Corp. Their public listing
leads to transparency on public valuation and timely information
on SoftBank's major investments.

On the other hand, SoftBank's corporate family rating is
constrained by its investment portfolio's concentration in a few
key investments. After the IPO of SoftBank Corp., more than 60%
of the total portfolio value will come from the three largest
investments, namely Alibaba, SoftBank Corp., and ARM Holdings
plc. Such a high concentration could expose the portfolio value
to price fluctuation, a credit weakness.

SoftBank's interest coverage at the holding company will be low,
at slightly above 1.0x. This result means cash flow upstreamed to
the holding company will barely cover ongoing interest payment
requirements.

Given the transition of the company's business, Moody's has
changed the principal methodology used in the credit analysis of
SoftBank to the Investment Holding Companies and Conglomerates
(Japanese) from the Telecommunications Service Providers
(Japanese).

The stable ratings outlook reflects Moody's expectation that
SoftBank will manage its leverage and cash flow coverage at the
levels consistent with the current rating, while it pursues
further investment opportunities, leveraging SoftBank Vision Fund
for future growth.

Moody's could consider downgrading the ratings if the holding
company's interest coverage falls to less than 1.0x, or market-
value based leverage rises above 35%, due to a decline in the
value of its investments or through large-scale investments
funded by the holding company debt. Negative ratings pressure
could also arise, if cash held at the holding company level
diminishes, and, taken in consideration with committed credit
facilities, covers less than two years of upcoming debt
maturities.

Further, significant deterioration of the credit quality of
SoftBank's subsidiaries, including SoftBank Vision Fund, may also
apply negative rating pressure if it increases a likelihood for
the holding company's financial support.

A ratings upgrade is unlikely at least during the next 12-18
months, but Moody's could consider an upgrade in the longer term,
if SoftBank's holding company establishes a favorable track
record as an investment holding company, diversifies its assets
and interest coverage improves.

Quantitatively, Moody's could consider an upgrade of SoftBank's
ratings if the holding company's interest coverage exceeds 2.0x,
and the proportion of its three largest investments falls to less
than 60% of its total investment portfolio, as measured by the
percentage of total portfolio market value, including cash
balances.

The principal methodology used in these ratings was Investment
Holding Companies and Conglomerates published in August 2018.

Headquartered in Tokyo, SoftBank Group Corp. is a Japanese
holding company with subsidiaries engaged in various businesses,
including telecommunications and information technology.

The following ratings are affected by the rating actions:

  - Corporate Family Rating, affirmed Ba1

  - Senior Unsecured Rating, affirmed Ba1

  - Subordinate, affirmed Ba3

  - Outlook: stable



====================
N E W  Z E A L A N D
====================


FIRST INSURANCE: Fitch Affirms BB+ IFS Rating, Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed New Zealand-based First Insurance
Limited's (FIL) Insurer Financial Strength (IFS) rating at 'BB+'.
The Outlook is Stable.

Key Rating Drivers

The affirmation reflects FIL's moderately weak business profile,
good capitalisation and leverage, and healthy financial
performance and earnings.

The rating incorporates the operational benefits FIL receives
from being fully owned by First Credit Union (FCU, BB/Stable).
FIL started operations in June 2018 by underwriting a simple non-
life credit-protection policy (Loan Protection Insurance or LPI)
for FCU's members. FCU acts as an agent for FIL, and the insurer
benefits from the strength and quality of the FCU distribution
channel. The LPI member-penetration rate was 82% of FCU's
personal loans at end-November 2018. FIL has no direct employees
and all services are performed by FCU for a fee.

On November 30, 2018, the Reserve Bank of New Zealand approved
FIL's application to carry out life insurance activities, lifting
conditions of its inaugural license that restricted FIL's
activities to only providing LPI to FCU's members. With the
approval of the life licence, FIL has taken over the underwriting
of funeral plans to FCU members that were previously underwritten
by Asteron Life Limited.

Management has said the insurer plans to acquire new customers
other than FCU members, but the provision of other insurance
products is unlikely in the medium term as FIL plans to
consolidate its position in LPI and funeral plans.

The assumption of the funeral plans from Asteron Life will
increase FIL's previous target for gross written premiums in the
financial year to June 2019 (FY19) by 17%. However, premiums in
absolute terms will remain modest, and FIL's market share in New
Zealand's non-life and life sectors will continue to be less than
1%. As such, FIL would be susceptible to competition, and smaller
insurers can suffer from lower benefits of scale. However, Fitch
expects price competition and any resulting pressure on earnings
to be mitigated by FIL's captive distribution channels, as well
as the now more diverse product offering.

Fitch expects FIL to be adequately capitalised given management's
intention to maintain a NZD1 million buffer above the minimum
regulatory requirement of NZD5 million for life insurers. FIL met
this goal following a NZD2 million infusion by FCU in September
2018. However, Fitch thinks FIL's low absolute capital level
leaves it more vulnerable to changes in the external operating
environment and larger, more remote operational risks than
insurers with larger capital bases.

Fitch expects FIL's financial performance and earnings to be
healthy. The company forecasts strong performance, with ROE to
average 9% and the non-life combined ratio to average 78% in the
first three years of operations. However, earnings are
concentrated as they are derived from just the LPI and funeral
plans.

Rating Sensitivities

Key upgrade triggers:

  - Improvements in the business profile, which will be evident
from greater operational scale, successful execution of FIL's
medium-term growth plans, and a stronger business franchise and
more diverse distribution channels and product base, while
maintaining its strong financial performance and capitalisation
metrics.

Key downgrade triggers:

  - A weakening in First Insurance's business profile.

  - A reduction in FIL's operational synergies with FCU. For
example, the franchise may be damaged in the unlikely event that
FIL becomes less important to FCU and access to its distribution
channels was restricted.

  - Actual regulatory capital ratio falling below 115% without
management plans to rectify this. (FY18: 135%)

  - Financial performance significantly below expectations.


TARATAHI AGRICULTURAL: Placed Into Interim Liquidation
------------------------------------------------------
Paul McBeth at BusinessDesk reports that the Taratahi
Agricultural Training Centre has been placed into interim
liquidation at the request of its board of trustees as declining
student numbers saw its funding drop faster than it could cut
costs.

The High Court on Dec. 19 appointed David Ruscoe and Russell
Moore of Grant Thornton as interim liquidators after the board
sought to protect the position of its staff, students, creditors
and other stakeholders, the accounting firm said, BusinessDesk
relates.

"Our main concerns are for our students, staff, animal welfare
and our creditors and partners," BusinessDesk quotes chair Mavis
Mullins as saying.

According to BusinessDesk, the centre has been rolling out a
change programme since 2016 and had hoped to reposition itself as
the national provider of primary industries training by 2021.
Next year would be its 100th year of operation.

Grant Thornton said Taratahi's cost of educating each student
exceeds the funding based on its operating model, despite
government subsidies and cash flow from its farming operations,
BusinessDesk relays.

It reported a NZ$7.3 million surplus in calendar 2017 on revenue
of NZ$22.8 million. Of that, NZ$13.6 million came from the
Tertiary Education Commission. It also received a NZ$2 million
contribution from Lincoln University last year when it took on
the Telford on-farm learning campus near Balclutha.

BusinessDesk relates that Mr. Ruscoe said he and Mr. Moore are
working with the board, management, the TEC, NZQA, Ministry for
Primary Industries and other agencies to support staff and
students.

"We understand that wages and salaries are up to date and funds
are being received from livestock sales and Fonterra payments to
keep the organisation running as per normal over the Christmas
break," he said, notes the report.

In 2014, Taratahi recognised an NZ$8.7 million liability from
over-funding of programmes between 2009 and 2014 following a TEC
review. It was repaying that at a monthly rate of NZ$40,000. In
March this year, its banker Westpac was reviewing its facility
with the education provider, BusinessDesk recalls.

Education Minister Chris Hipkins said Taratahi has repaid NZ$3.5
million of that mostly by selling assets, which wasn't a
sustainable model.

"What's clear is that the current model of vocational training
for primary industry is broken," he said.

Taratahi is a private training establishment, employing 250
staff, and educating 2,850 students this year. It owns and
manages eight farms across New Zealand.


VIDEON 2012: Video Store to Close Doors on December 31
------------------------------------------------------
Martin Johnston at NZ Herald reports that the Netflix factor has
delivered the death blow to Auckland video institution Videon
after the Mt Eden store was slowly being strangled by online
movie piracy.

NZ Herald says through the peak years of DVD and VHS videotape,
Videon was a go-to shop for weird, obscure and arty films and TV
shows -- as well as stocking the blockbusters.

But after 36 years trading on Dominion Rd, first south of
Balmoral Rd and later near Valley Rd, Videon has surrendered to
market forces.

It will close on December 31, NZ Herald notes.

"It's closing essentially because the industry is in decline and
the owners don't have a feasible pivot strategy to be able to
sustain the business," NZ Herald quotes senior staff member Tim
Beatson as saying.

An attempt to find a buyer on TradeMe had failed and now the
business was being wound down, the report states.

While four years ago, online piracy of films was the force
killing off suburban video stores, now it is paid streaming video
services such as Netflix, NZ Herald notes.

Australian-owned rental chain Video Ezy announced earlier this
year it was pulling out of New Zealand. In Auckland, only about
20 video rental stores exist.

For the kind of selection offered by Videon, Beatson points to
Auteur House in Hamilton, Aro Video in Wellington and
Christchurch's Alice in Videoland.

"We are struggling against the tide," the report quotes
Mr. Beatson as saying. "in terms of what can be delivered much
more conveniently and quickly, depending on your broadband
access."

"Certainly in the last year we have struggled the hardest."

Videon had held more than 30,000 titles, including international
films, silver screen classics, festival movies and special
interest titles, according to NZ Herald.

NZ Herald relates that Mr. Beatson said some stock had been sold
and there were negotiations to sell many other titles to a trust
which wanted to make them publicly available through university
libraries.

Describing customers' reactions to Videon's decision to close, he
said: "There's a great degree of sadness around the idea it will
no longer be operating as a business, because it is quite unique
in its field," the report adds.

Videon 2012 Limited -- http://www.videon.co.nz/about-us-- is an
Auckland-based video store.



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


PAKISTAN: Fitch Downgrades LT IDR to B-, Outlook Stable
-------------------------------------------------------
Fitch Ratings has downgraded Pakistan's Long-Term Foreign-
Currency Issuer Default Rating (IDR) to 'B-' from 'B'. The
Outlook is Stable.

KEY RATING DRIVERS

The downgrade reflects heightened external financing risk from
low reserves and elevated external debt repayments, as well as a
continued deterioration in the fiscal position, with a rising
debt/GDP ratio. A successful conclusion of ongoing negotiations
on IMF support could help stabilise external finances, but the
programme would then face significant implementation risk.

Liquid reserves have continued to fall, reaching USD7.3 billion
as of December 6, 2018 - equivalent to 1.5 months of imports -
despite significant stabilisation efforts by the State Bank of
Pakistan (SBP) and the new Pakistan Tehreek-e-Insaf-led coalition
government. Fitch also projects high gross financing needs, with
an expected narrowing of the current account deficit offset by
higher external debt service payments relative to last year.
Sovereign debt-service obligations over the next three years
amount to USD7 billion-9 billion per year, including a USD1
billion Eurobond repayment due in April 2019. External debt
servicing will stay high throughout the next decade, with China
Pakistan Economic Corridor (CPEC)-related outflows set to begin
in the early 2020s.

The SBP has raised interest rates by a cumulative 425bp during
2018 and has allowed the rupee to fall by 24% against the US
dollar since December 2017. Fitch forecasts the current-account
deficit to narrow to 5.1% of GDP in the fiscal year ending June
2019 (FY19) and to 4.0% in FY20, from a revised 6.1% in FY18.
Rupee depreciation, lower oil prices and newly imposed import
duties will drive a deceleration in imports, while exports are
likely to strengthen gradually. However, this may not be
sufficient to re-build reserve buffers sustainably.

Bilateral financial assistance, including USD3 billion in short-
term financing from Saudi Arabia (in addition to USD3 billion in
deferred oil payments) along with undisclosed commitments from
China and the UAE, has helped plug the near-term financing gap.
The government also requested an IMF programme in mid-October
2018, with progress already made in related discussions.
Successful negotiations could attract more stable and sustained
financing by opening up budget support from the World Bank and
the Asian Development Bank, and by improving access to bilateral
lending and global capital markets. Implementation risks would be
high in light of uneven adherence to previous programmes. Fitch
estimates that in the absence of an IMF programme, liquid
foreign-exchange reserves would continue falling to USD7 billion
by FYE19.

Pakistan's debt/GDP ratio rose to 72.5% in FY18, from about 67%
in FY17, due to rupee depreciation and a widening fiscal deficit.
Fitch forecasts that the debt ratio will rise further, to 75.6%
of GDP in FY19 on additional rupee depreciation. Debt is mainly
denominated in local currency, but the pace of external borrowing
has increased in the past two years. The government remains
highly reliant on borrowing from the SBP and short-term treasury
bill issuances as domestic banks lack appetite for longer
maturity issues due to rising policy rates.

Fitch expects the fiscal deficit to narrow to 5.6% of GDP in
FY19, from 6.6% in FY18, above the 5.1% target in the new
government's FY19 mini-budget, which rolled back the previous
government's tax relief plans, implemented new revenue measures
and cut development expenditure. Revenue growth remained subdued
in 1QFY19, but should pick up modestly as the government's
policies come into place. Better fiscal coordination between the
federal and provincial governments is also planned through the
Fiscal Coordination Committee.

Pakistan's 'B-' IDR also reflects the following key rating
drivers:

The accumulation of losses in public-sector enterprises poses a
contingent liability for the government. So-called 'circular
debt' (inter-company arrears) in the energy sector has continued
to rise in the past few years and stands at about 3% of GDP due
to inefficiencies, low tariffs and inadequate tariff collection.
The new government is planning to reduce the accumulation and
stock of circular debt.

Fitch forecasts GDP growth to fall to 4.2% in FY19, from a 13-
year high of 5.8% in FY18, as monetary and fiscal tightening
measures begin to weigh on activity. However, this remains above
the current 'B' category median GDP growth of 3.5%. Reduced
infrastructure capacity constraints, particularly in the energy
sector, following CPEC investments, along with improved national
security, could support growth in the medium term.

Inflation has risen due to significant rupee depreciation and
higher energy prices. Fitch expects inflation to increase to an
average of 7.0% in FY19, from 3.9% in FY18. Credit growth in the
banking system remains robust. The system poses limited risk to
the sovereign, as capital adequacy is well above regulatory
minimums and represents a small share of GDP. Non-performing
loans continued to decline, reaching 7.9% of total loans in
FYE18, from a peak of 14.8% at FYE13.

The new government has an ambitious structural-reform agenda
aimed at improving institutional governance and the business
environment. This agenda could enhance medium-term policymaking
and boost growth, but there are significant implementation
challenges. Entrenched vested interests, internal coalition
dynamics and a strong opposition could prevent the enactment of
broad-reaching reforms.

Domestic security has improved, with a decline in terrorist
incidents and casualties. Nevertheless, ongoing domestic threats
continue to weigh on investor sentiment. Geopolitical tensions
with neighbouring countries and issues around compliance with the
intergovernmental Financial Action Task Force standards also pose
risks.

Pakistan's rating is constrained by structural weaknesses in its
development and governance indicators. Per capita GDP stands at
USD1,519, well below the USD3,422 median of 'B' rated peers.
Governance quality is also low, with a World Bank governance
indicator score in the 22nd percentile, against a 'B' median in
the 38th percentile.

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)
Fitch's proprietary SRM assigns Pakistan a score equivalent to a
rating of 'B+' on the Long-Term Foreign-Currency IDR scale.

Fitch's sovereign rating committee adjusted the output from the
SRM to arrive at the final Long-Term Foreign-Currency IDR by
applying its QO, relative to rated peers, as follows:

  - Structural: -1 notch to reflect domestic security issues and
geopolitical risk arising from tension with neighbouring
countries.

  - External: -1 notch to reflect external financing pressure
from the low level of liquid foreign-exchange reserves and rising
external-debt repayments.

Fitch's SRM is the agency's proprietary multiple regression
rating model, which employs 18 variables based on three-year
centred averages, including one year of forecasts, to produce a
score equivalent to a Long-Term Foreign-Currency IDR. Fitch's QO
is a forward-looking qualitative framework designed to allow for
adjustment to the SRM output to assign the final rating,
reflecting factors within its criteria that are not fully
quantifiable and/or not fully reflected in the SRM.

RATING SENSITIVITIES

The main factors that could, individually or collectively, lead
to a positive rating action are:

  - Implementation of an effective policy stance to address
external imbalances and facilitate a rebuilding of foreign-
exchange reserves.

  - Sustained fiscal consolidation sufficient to put debt on a
downward trajectory.

  - Improved export and growth prospects resulting, for example,
from improvements in the business environment and the security
situation as well as lower political risk.

The main factors that could, individually or collectively, lead
to a negative rating action are:

  - Inability to mobilise sufficient external funding to reduce
financing strains, for example, through an IMF programme or other
forms of bilateral assistance.

KEY ASSUMPTIONS

Fitch assumes the global economy will perform in line with its
Global Economic Outlook.

The full list of rating actions is as follows:

Long-Term Foreign-Currency IDR downgraded to 'B-' from 'B';
Outlook Stable

Long-Term Local-Currency IDR downgraded to 'B-' from 'B'; Outlook
Stable

Short-Term Foreign-Currency IDR affirmed at 'B'

Short-Term Local-Currency IDR affirmed at 'B'

Country Ceiling downgraded to 'B-' from 'B'

Issue ratings on long-term senior unsecured foreign-currency
bonds downgraded to 'B-' from 'B'

Issue ratings on long-term senior unsecured local-currency bonds
downgraded to 'B-' from 'B'

Issue ratings on The Third Pakistan International Sukuk Company
Limited's foreign-currency global certificates downgraded to 'B-'
from 'B'



                             *********

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

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

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


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

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

Copyright 2018.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Peter Chapman at 215-945-7000.



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