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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

          Wednesday, April 10, 2019, Vol. 22, No. 72

                           Headlines



A U S T R A L I A

AXSESSTODAY LIMITED: First Creditors' Meeting Set for April 17
BUILD-A-BEAR WORKSHOP: Second Creditors' Meeting Set for April 16
GRAYMORE COURIERS: First Creditors' Meeting Set for April 17
KAYTEE PTY: First Creditors' Meeting Set for April 17
MINERAL RESOURCES: Fitch Gives 'BB' IDR; Rates USD Notes 'BB(EXP)'

MINERAL RESOURCES: Moody's Gives Ba3 CFR; Rates $750MM Notes Ba3
MINERAL RESOURCES: S&P Assigns Prelim 'B+' LT ICR, Outlook Stable
ORINOCO GOLD: First Creditors' Meeting Set for April 17
PEPPER I-PRIME 2019-1: S&P Puts Prelim B(sf) Rating on Cl. F Notes
REGIONAL DRILLING: Second Creditors' Meeting Set for April 16

RRAS DEVELOPMENT: First Creditors' Meeting Set for April 17
SPECIALTY MENS: Second Creditors' Meeting Set for April 23
VSM 3: Second Creditors' Meeting Set for April 17


C H I N A

CHINA EVERGRANDE: Moody's Puts B2 Sr. Unsec. Ratings to USD Notes
CHINA EVERGRANDE: S&P Rates New US$-Denom. Sr. Unsec. Notes 'B'
CHINA FORTUNE: Fitch Rates $350MM Senior Notes Final 'BB+'
MODERN LAND: Fitch Rates Proposed USD Senior Notes 'B(EXP)'
RISESUN REAL: Moody's Assigns First-time Ba3 CFR

SUNAC CHINA: Moody's Rates Proposed USD Notes 'B1'
SUNAC CHINA: S&P Rates New U.S.$-Denominated Sr. Unsec. Notes 'B+'
TEWOO: To Sell Copper at Below-Market Rates Amid Liquidity Issue
[*] CHINA: Sounds Alarm Over Bad-Loan Surge at Small Banks


I N D I A

ACID INDIA: CRISIL Assigns B+ Rating to INR20cr Loans
AKSHAR SPINTEX: Ind-Ra Affirms 'BB+' Issuer Rating, Outlook Stable
ALLURE CONSUMER: CRISIL Migrates 'B+' Rating to Not Cooperating
AMMA WOODS: CRISIL Reaffirms 'D' Rating on INR19.6cr Loans
BHARAT MOTOR: CRISIL Migrates B+ Rating to Not Cooperating

BILASA MEDICALS: CRISIL Moves 'B' Rating to Not Cooperating
BKG ENTERPRISES: CRISIL Migrates 'B' Rating to Not Cooperating
ELEGENT INFRASTRUCTURE: CRISIL Cuts Rating on INR25cr Loan to D
GLOBAL FLAVOURS: CRISIL Assigns B+ Rating to INR10cr Cash Loan
GREEN LEAF: Ind-Ra Affirms 'BB-' LT Issuer Rating, Outlook Stable

HOTEL SWOSTI: Ind-Ra Affirms 'BB' LT Issuer Rating, Outlook Stable
IL&FS: Lenders May Set Aside Provisions vs. Accounts in March Qtr
KAMAL AUTO: CRISIL Withdraws B- Rating on INR20cr Loans
KUMARAN POULTRY: CRISIL Assigns B+ Rating to INR5.20cr Loan
MANIKESWARI GEMS: CRISIL Withdraws B Rating on INR30cr Cash Loan

MONTRISE INFRA: CRISIL Migrates 'B' Rating to Not Cooperating
MOYALAN AGRO: CRISIL Reaffirms 'B+' Rating on INR8cr Loans
MUTHU SILK: CRISIL Reaffirms B+ Rating on INR6.5cr Cash Loan
PRAVARSHA AGRO: CRISIL Migrates B- Rating to Not Cooperating
SENGODAN POULTRY: CRISIL Assigns 'B+' Rating to INR7.25cr Loans

SHIVA INTERNATIONAL: CRISIL Moves 'B' Rating to Not Cooperating
SHREE GIRDHAR: CRISIL Migrates 'B' Rating to Not Cooperating
SHREE SAIRAM: CRISIL Reaffirms B+ Rating on INR9.5cr Cash Loan
STAR TRACE: CRISIL Lowers Rating on INR30cr Loans to D
TOMCO ENGINEERING: CRISIL Reaffirms B+ Rating on INR12cr Loan

U.P. ASBESTOS: Ind-Ra Assigns 'BB-' Issuer Rating, Outlook Stable
VEGA INFRASTRUCTURE: Ind-Ra Migrates B+ Rating to Non-Cooperating


J A P A N

[*] JAPAN: Corporate Bankruptcies Hit 28-year Low in Fiscal 2018


N E W   Z E A L A N D

MAINZEAL GROUP: Liquidators File Counterclaim for NZ$73 Million


V I E T N A M

BANK FOR INVESTMENT: S&P Raises ICR to BB- on Sovereign Upgrade

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A U S T R A L I A
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AXSESSTODAY LIMITED: First Creditors' Meeting Set for April 17
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of:

   -- Axsesstoday Limited
   -- A.C.N. 603 303 126 Pty Ltd
   -- Axsesstoday Operations Pty Ltd
   -- Axsesstoday Retail Pty Ltd

will be held on April 17, 2019, at 1:00 p.m. at the offices of
Deloitte, at Level 10, 550 Bourke Street, in Melbourne, Victoria.

Vaughan Strawbridge, Glen Kanevsky and Salvatore Algeri of Deloitte
were appointed as administrators of Axsesstoday Limited on April 7,
2019.

BUILD-A-BEAR WORKSHOP: Second Creditors' Meeting Set for April 16
-----------------------------------------------------------------
A second meeting of creditors in the proceedings of Build-A-Bear
Workshop Pty Ltd has been set for April 16, 2019, at 2:00 p.m. at
Level 7, 616 St Kilda Road, 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 April 15, 2019, at 4:00 p.m.

Matthew Sweeny and Gideon Rathner of Lowe Lippmann were appointed
as administrators of Build-A-Bear Workshop on March 13, 2019.

GRAYMORE COURIERS: First Creditors' Meeting Set for April 17
------------------------------------------------------------
A first meeting of the creditors in the proceedings of Graymore
Couriers Pty. Ltd. will be held on April 17, 2019, at 10:00 a.m. at
Level 21, 179 Turbot Street, in Brisbane, Queensland.

John Maxwell Morgan and Geoffrey Davis of BCR Advisory were
appointed as administrators of Graymore Couriers on April 8, 2019.

KAYTEE PTY: First Creditors' Meeting Set for April 17
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Kaytee Pty
Ltd and Kaytee Sheet Metal Pty Ltd will be held on April 17, 2019,
at 10:00 a.m. at the offices of Ferrier Hodgson, at Level 43, 600
Bourke Street, in Melbourne, Victoria.

John Lindholm of Ferrier Hodgson was appointed as administrator of
Kaytee Pty on April 5, 2019.

MINERAL RESOURCES: Fitch Gives 'BB' IDR; Rates USD Notes 'BB(EXP)'
------------------------------------------------------------------
Fitch Ratings has assigned Australia-based Mineral Resources
Limited (MIN) a first-time Long-Term Foreign-Currency Issuer
Default Rating (IDR) of 'BB'. The Outlook is Stable. Fitch has also
assigned the company's proposed US dollar senior unsecured notes an
expected 'BB(EXP)' rating.

The proposed notes are rated at the same level as the IDR as they
will be unconditionally, jointly and severally guaranteed by MIN
and its subsidiaries, which represent more than 95% of group
consolidated total assets and net income. Fitch does not believe
the capital structure, which contains secured debt, impairs MIN's
senior unsecured creditors, as secured debt is less than 2.0x-2.5x
EBITDA (0.5x in the year ended June 2018 (FY18)). The final rating
is contingent on the receipt of final documents materially
conforming to information already received.

MIN is a leading provider of diversified mining infrastructure
services and Australia's largest specialist crushing contractor,
servicing some of the world's largest mining companies; its
external contracts accounted for around 40% of mining services
EBITDA in FY18. MIN is also an integrated pit-to-port service
provider for its mines, which use a joint-venture profit-sharing
model. The segment accounted for around 60% of mining services
EBITDA in FY18. MIN also has exposure to the fast-growing lithium
industry through high-quality mines, which have large scale and a
competitive cost positon.

MIN's ratings reflect its strong business profile, which is
supported by its stable cash flow base from internal mining
services contracts, long-term external crushing contracts with
diversified miners and low-cost lithium assets in Australia.
However, the company's operating risk profile will be elevated over
the next four years as it invests in a new hydroxide plant to move
up the lithium value chain, which constrains its credit profile.

A joint venture with the US-based chemical manufacturer, Albemarle
Corporation (BBB/Stable), will significantly improve MIN's net
leverage position, following a ramp-up in capex on its two lithium
mines. However, Fitch expects some delay in the construction and
commercial production of MIN's hydroxide plant due to the inherent
complexity associated with hydroxide during the development and
production phases, and the rigorous qualification and accreditation
process required by customers.

KEY RATING DRIVERS

Unique Profit-Sharing Model: MIN provides low-cost, pit-to-port,
life-of-mine services to mines under its profit-sharing model,
which involves the acquisition of undeveloped resource assets that
can benefit from its mining infrastructure services. Specifically,
MIN funds the design and construction of a mine in return for
equity in the project and then secures a life-of-mine contract for
full mine-to-port services. It monetises part of its equity share
over the medium- to long-term and reinvests the funds to further
develop its business.

The model eliminates the risk of losing a contract or switching in
its mining services business and allows the company to capture
earnings from its mining operation, which uniquely positions MIN
relative to peers. The steady cash flow from its profit-sharing
model accounted for around 60% of its total mining services EBITDA
in FY18.

Albemarle Transaction Net Leverage Positive: MIN's joint venture
with Albemarle, which saw the divestment of half of its Wodgina
lithium mine for proceeds of USD1.15 billion, will improve its net
leverage position and provide adequate funding for its proposed
hydroxide plant. This transaction will support the company's credit
profile. MIN expects the transaction with Albemarle to be completed
during 2019, subject to regulatory approvals. Fitch believes there
would be high interest in the Wodgina mine, should the transaction
not achieve regulatory approval.

Strong Lithium Hardrock Portfolio: Fitch believes MIN is well
positioned to capitalise on the strong demand for lithium over the
long-term, as its lithium portfolio includes one of the largest
lithium hard-rock deposits in the world, and both assets possess
long reserve lives, competitive cost positions and strong offtake
and equity partners. Long-term offtake with Ganfeng Lithium at its
Mt Marion mine and the strategic importance of high-quality lithium
resources to MIN's equity partners reduce volume risk. Fitch
expects low execution risk for MIN's Wodgina mine due to the
company's established record of development and production of
spodumene concentrate at Mt Marion.

Owner-Operator; Conservative Financial Policy: MIN has a
conservative capital structure and has maintained a net cash
position in eight of the previous 11 years by implementing the
founder's long-term strategy and benefitting from its deep
understanding of the mining industry and its inherent cyclicality,
in Fitch's view.

Fitch expects leverage, measured by FFO adjusted net leverage, to
peak at 4x in FY19 and then fall in FY20 due to receipt of the
proceeds from the sale of its Wodgina mine. The development of
MIN's hydroxide plant will then see leverage increase to around 2x
by 2022. Fitch thinks MIN's target of gross debt/EBITDA below 2x is
appropriate for its rating, based on its stable cash flow, which is
underpinned by internal mining service contracts and the
competitive cost position of its lithium mines.

Risks and Opportunities From Hydroxide Plant: MIN plans to move up
the lithium value chain by building a hydroxide plant at its
Wodgina mine. The plant, if completed and commissioned, will
improve the company's margin and cost competitiveness compared with
brine-based hydroxide operations. However, the inherent risk
associated with hydroxide could result in construction and
commercial production delays. Although Albemarle brings some
experience with hydroxide plants, the new plant must prove
consistent supply that meets the physical and chemical properties
required by customers, which vary by cathode and electronic-vehicle
manufacturers.

The qualification process is likely to take around a year after
commissioning the facility. MIN's commercial production schedule
would not be met if it fails to manufacture a compliant product.
Fitch's leverage forecast assumes commercial hydroxide production
from FY23 and captures full capex related to the plant, resulting
in FFO adjusted net leverage of around 2x over the next four years
and underpins its Stable Outlook.

Secured Debt in Capital Structure: Fitch forecasts secured debt in
MIN's capital structure for at least the next three years. MIN's
proposed senior unsecured debt could be downgraded to the extent
that the ratio of secured debt/consolidated operating EBITDA moves
above 2.0x-2.5x, irrespective of any movement in the issuer's IDR.


DERIVATION SUMMARY

MIN's rating reflects its stable cash flow from internal mining
contracts and strong lithium-mine portfolio. This compares
favourably against its peer, PT ABM Investama Tbk (BB-/Negative),
whose rating reflects a weakening coal contract mining business and
higher counterparty risk. ABM's mines also have short reserve lives
of around five years, against more than 20 years for MIN. These
factors explain the one-notch rating differential between the two
entities.

MIN's rating again compares favourably with peer, PT Bukit Makmur
Mandiri Utama (BB-/Stable), which has similar scale but a less
diversified business model with concentrated counterparties. MIN's
mining-service business has better earnings visibility due to its
internal contracts. These factors result in a one-notch rating
differential with MIN.

KEY ASSUMPTIONS

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

  - Gradual decline in the realised spodumene price over the next
three years, then for the price to recover modestly in FY22 as
demand outpaces new capacity expansion.

  - Iron-ore price in line with the Fitch price deck, adjusted for
impurity discount.

  - Gradual ramp-up in export volume of spodumene concentrate from
Mt Marion and Wodgina during FY20-FY21.

  - Wodgina transaction proceeds received during FY20.

  - Incorporated 100% of committed capex for hydroxide plant.

  - Commercial production from Wodgina hydroxide plant to start in
FY23.

  - Dividend payout ratio at around 50% of net profit after tax.

RATING SENSITIVITIES

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

Fitch does not expect positive rating action in the medium-term due
to MIN's elevated operating risk profile stemming from its expected
hydroxide plant investment at Wodgina. However, developments that
may, individually or collectively, lead to a positive rating action
include:

  - FFO adjusted net leverage falling below 2.0x on a sustained
basis.

  - Neutral to positive free cash flow.

  - Successful completion of its hydroxide plant and established
operational record, with the commercial production of hydroxide.

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

  - Sustained delays and cost overruns in the hydroxide plant,
which may lead to higher leverage or squeeze MIN's liquidity
position.

  - FFO adjusted net leverage rising above 3.0x for a sustained
period.

  - Negative developments in our long-term outlook for lithium.

  - Material loss of mining-service contracts and deterioration in
the production volume of lithium mines at Mt Marion and Wodgina to
below Fitch's expectations of around 450 kilotonne per annum (ktpa)
and 750ktpa, respectively.

  - Investments in the hydroxide plant that elevate the business
risk profile, which is not mitigated without an experienced
joint-venture partner.

LIQUIDITY

Adequate Liquidity: MIN reported cash of AUD136 million with
undrawn facilities of AUD125 million at end-2018. The company
announced in January 2019 that it had increased its working-capital
facility by AUD200 million. Thus, Fitch estimates MIN had available
funding of around AUD460 million at end-1HFY19. Its proposed bond,
revolving, and working-capital facilities will extend its debt
maturity profile. MIN expects to receive the sale proceeds of
around USD1.15 billion from the sale of half of its Wodgina lithium
mine interest by end-2019.

MINERAL RESOURCES: Moody's Gives Ba3 CFR; Rates $750MM Notes Ba3
----------------------------------------------------------------
Moody's Investors Service has assigned a first-time Ba3 corporate
family rating to Mineral Resources Limited (MIN). At the same time,
Moody's has assigned a Ba3 rating to MIN's proposed $750 million
senior unsecured US 144A notes issuance. The rating outlook is
stable.

The proceeds from the proposed issuance will be used to refinance
the company's current credit facilities and outstanding bridge
loan, pay transaction fees, and for general corporate purposes,
including to fund ongoing growth spending.

As part of the transaction, MIN will also enter also into a 3-year
AUD250 million senior secured revolving credit facility, which will
be available to support liquidity and general corporate purposes.
The company has also executed an AUD40 million senior secured
bilateral guarantee facility.

RATINGS RATIONALE

"MIN's Ba3 CFR reflects its operational diversity, which benefits
from its strong position in providing mining services to high
credit quality counterparties with low cost mining operations, and
its integrated commodities business, which provides internal
revenue and earnings for mining services, as well as significant
earnings upside through its growing lithium business," says Matthew
Moore, a Moody's Vice President and Senior Credit Officer.

The ratings also reflect Moody's expectation that the company's
iron ore operations will provide solid earnings and cash flow in
the current elevated price environment, although under the midpoint
of Moody's sensitivity range for iron ore of $45-75 per tonne,
which is much lower than current spot prices, earnings will be
lower and highly sensitive to the level of discounts applied to
lower grade ores.

Counterbalancing these strengths are the company's large capital
expenditure needs over the next several years, which will lead to
significant negative free cash flow, increased debt levels and
higher leverage. MIN's rating and credit profile are also
constrained by the potential for execution challenges in ramping up
its major growth projects in lithium, and the potential for wide
swings in earnings resulting from its direct and indirect exposure
to commodity prices and mining cycles.

Moody's expects MIN's mining services business to provide a more
stable base of earnings, which will support its credit profile and
provide cash flow to help fund its large development plans at this
point in its investment cycle.

MIN's mining services business benefits from contracted revenue,
with large scale high quality counterparties and services
operations that are in the relatively stable mining jurisdiction of
Australia. The stickiness of MIN's mining services revenue is
supported by its focus on the production side and site logistics
areas of mining, the strength of the company's contracts, the
supportive nature of its build, own, operate (BOO) strategy, and a
large and growing contribution from internal projects with life of
mine contracts.

Moody's expects the above factors to underpin mining services
earnings of around AUD220-280 million per annum over the next 2-3
years.

MIN's ratings and credit profile also reflect its strong reserves
position in lithium and its continued work to increase processing
capacity and improve beneficiated production from these assets.

While lithium product prices will be volatile and exhibit downside
risks over the next several years as material new supply comes
online, long-term demand for lithium, driven in turn by the
increasing penetration of battery electric vehicles, will be
supportive for the life of mine of MIN's assets. In addition, MIN's
lithium assets benefit from relatively low expected production
costs, which will allow them to still generate solid earnings
during periods of relative oversupply and lower prices.

The company has been focused on growing the contribution from its
lithium assets, Mt. Marion and Wodgina. MIN is in the process of
ramping up its plant upgrades at Mt. Marion, which will increase
overall production levels and product quality, and is investing
significant capital at Wodgina to capture further downstream value.
Moody's expects growth into downstream activities to be accelerated
and enhanced following the completion of the agreed sale of 50% of
Wodgina to Albemarle Corporation (Baa2 stable) for $1.15 billion
(AUD1.6 billion).

Moody's expects MIN's investment expenditure to increase materially
during the fiscal years ending June 30, 2019-2021 (fiscal
2019-2021), with average capital expenditures increasing to around
AUD700 million per annum for the 3-year period, up from an average
annual spend of around AUD250 million for the three year period
from fiscal 2016-2018.

Reflecting this, MIN's investment spending increased to around
AUD488 million in the first half of fiscal 2019, up from around
AUD66 million in the previous corresponding period. This increased
spending, combined with dividends paid in the period and a sharp
reduction in operating cash flow following the company's decision
to cease its direct shipping of lithium ore (DSO), led to negative
free cash flow in excess of AUD500 million and an over AUD400
million increase in debt levels.

As a result of the increased debt levels and lower earnings, MIN's
leverage--as measured by gross adjusted debt/EBITDA--increased to
around 2.4x for the 12 months to December 2018.

As the company continues to spend, largely on the completion of its
around AUD610 million spodumene plant at its Wodgina lithium
operation, Moody's expects negative free cash flow to peak at over
AUD800 million in fiscal 2019. This will largely be funded by cash
flow generation and proceeds from the bond issuance in excess of
refinancing needs, which will increase debt by a further around
AUD400 million and lead to leverage peaking at around 3.5x.

Moody's expects that gross adjusted leverage will range between
2.5x-3.5x over the next several years as the company continues to
spend on its commodities assets. While peak leverage will be at
high levels for the rating, once the projects are completed,
Moody's expects MIN will reduce leverage closer to 2.5x on a
sustained basis.

In addition to Moody's expectation for deleveraging post the
company's large development work, MIN's financial profile will be
supported by the expected proceeds from the sell down of Wodgina.
These proceeds will materially improve the company's already
enhanced liquidity levels post the bond transaction and will
provide more than adequate funding for the next phase of
development at Wodgina.

The large cash inflow from the transaction with Albemarle will also
support the maintenance of strong credit metrics on a net debt
basis, with Moody's expecting net adjusted debt/EBITDA to average
around 1.5x over fiscal 2019-2021.

The rating outlook is stable, reflecting Moody's expectation that
MIN will continue to benefit from a relatively stable earnings and
cash flow contribution from its mining services segment and will
successfully complete its current expansion work at Wodgina, which
will increase earnings and allow for a reduction in leverage
levels, despite Moody's expectation for lower lithium and iron ore
prices over the next several years.

WHAT COULD CHANGE THE RATING

The rating could be upgraded over time if MIN successfully
completes its expansion projects in lithium, while maintaining or
improving the position of its mining services business. Receipt of
the proceeds from the Wodgina transaction will also be supportive
for the company's ratings and credit profile.

Specifically, Moody's could upgrade the rating if leverage
declines, with debt/EBITDA remaining below 2.5x on a sustained
basis. An upgrade would likely also require all remaining project
spending to be fully funded from free cash flow and/or cash
balances post the Wodgina transaction, and a track record of
sustained production at nameplate levels for the Wodgina and Mt
Marion spodumene plants.

The ratings could be downgraded if the company faces material
challenges in ramping up its Wodgina and Mt Marion operations,
experiences material contract losses at its mining services
business, or the price of lithium products materially underperforms
relative to Moody's expectations.

Specifically, the ratings would likely be downgraded if, (1)
debt/EBITDA is sustained above 3.5x; (2) the Wodgina transaction
does not go ahead and MIN remains materially free cash flow
negative; (3) its EDITDA margins drop below 20% on a sustained
basis; (4) its liquidity contracts meaningfully; and/or (5) the
company demonstrates a more aggressive financial policy.

BACKGROUND

The principal methodology used in these ratings was Mining
published in September 2018.

Mineral Resources is an ASX-listed company focused on mining
services and a growing commodities mining and processing business.

MIN's mining services segment provides diversified mining
infrastructure services in Western Australia and the Northern
Territory, and has external crushing contracts with some of the
world's largest iron ore and gold mining companies. This division
also provides a full suite of mining services to its own operating
assets and joint ventures, which are all on life of mine
contracts.

The commodities segment is engaged in the exploration, development,
production and export of lithium and iron ore in Western Australia
and owns and operates a portfolio of Australian mining assets,
including, the Wodgina and Mt. Marion lithium operations and
Koolyanobbing and Iron Valley iron ore operations.

MINERAL RESOURCES: S&P Assigns Prelim 'B+' LT ICR, Outlook Stable
-----------------------------------------------------------------
On April 8, 2019, S&P Global Ratings assigned its preliminary 'B+'
long-term issuer credit rating to Mineral Resources Ltd. (MRL) and
'B+' preliminary issue rating to the group's proposed US$750
million senior unsecured notes with a recovery rating of '4'.

The preliminary rating reflects the execution risks associated with
MRL's growth strategy as well as its concentrated asset base and
end-market exposure. S&P does not believe that MRL's external
mining services earnings are of sufficient scale or quality to
materially diversify these risks.

S&P said, "We expect MRL to generate materially negative free cash
flow over the next few years, due to high near-term capital
expenditure. That said, our rating incorporates the potential for
significant free cash flow following completion of the company's
proposed lithium hydroxide plant. We do not include MRL's iron ore
assets in our assessment of the group's earnings mix. This is
because MRL's mines sit in the fourth quartile of the global cost
curve and will not generate operating cash flow under our base-case
price assumptions."

In S&P's view, the Wodgina joint venture (JV) with global lithium
player, U.S.-based Albemarle Corp. (BBB/Stable/A-2), will enhance
MRL's technical capabilities in midstream lithium processing. In
addition, the establishment of the JV will provide significant
capital of US$1.15 billion to fund MRL's share of the hydroxide
plant development.

The preliminary rating is predicated upon the successful completion
of MRL's proposed refinancing and the issue rating is based on the
preliminary terms and conditions of the facilities. The '4'
recovery rating on the senior unsecured notes indicates S&P's
expectation of average (35%) recovery prospects in the event of a
payment default.

S&P believes the company's growth and operating strategy is at an
inflection point. The group aims to become a leading vertically
integrated mining operator, targeting midstream lithium hydroxide
operations, which command significantly higher premiums. However,
processing introduces additional technical complexity, risk, and
operating costs.

S&P said, "In our opinion, the long-term supply/demand dynamic of
the lithium market is subject to a high degree of uncertainty. We
expect strong end-market demand since 2017 to elicit a significant
supply response as midstream producers seek to secure supply."
However, the balance of cyclical and structural forces is subject
to a wide variety of factors that are unlikely to be resolved for a
number of years.

S&P's rating incorporates the risk that MRL's cost position does
not mitigate the risk of oversupply in the lithium market. This
could erode the company's ability to sustain operations throughout
a commodity downturn, particularly during the period of peak
development spending. In addition, the company is subject to
low-probability event risk associated with China, which dominates
the global cathode market.

MRL is refinancing its existing facilities with a proposed US$750
million eight-year senior unsecured 144a/Reg. S note, as well as
A$250 million senior secured revolving credit facility and A$40
million bilateral bank guarantee facility, to fund the company's
expansion to higher margin lithium products. The company aims to
capture more of the lithium value chain, moving from a shipper of
low-margin ore to a producer of high-margin lithium
products—spodumene concentrate and ultimately lithium hydroxide.

MRL will have one of the largest combined spodumene concentrate
plant capacities of 1,200 kilo tons per annum (ktpa) in Australia
across its Wodgina and Mt. Marion assets, rivalling Talison
Mining's Greenbushes asset. MRL's Wodgina mine is the world's
largest known hard rock lithium deposit with a 30-year estimated
reserve life, and an expected concentrate production of about
750ktpa. In S&P's opinion, Wodgina is likely to be a second to
third quartile mine in the global cost curve, after accounting for
internally generated mining services margins. MRL's position on the
cost curve as a lithium hydroxide producer should improve once the
Wodgina plant is commissioned.

Cash proceeds from the Albemarle JV are likely to come in late 2019
and will fund MRL's share in its proposed hydroxide plant (more
than US$600 million). The transaction remains subject to regulatory
approvals from the Foreign Investment Review Board and Chinese
state regulators. In S&P's opinion, the partnership with Albemarle
reduces execution risk due to Albemarle's technical midstream
processing expertise as well as its international marketing
capability. Albemarle will market 100% of Wodgina's concentrate and
hydroxide volumes.

The company's Mt. Marion project in Kalgoorlie is a 50% JV with
Ganfeng Lithium (unrated) that we assess is likely to be in the
second to third quartile of the global cost curve, after accounting
for internally generated mining services margins. Mt. Marion has an
estimated project life of about 20 years with lithium resources of
71.3 million tons (mt), and a run-rate production of about 450ktpa,
with 100% of product sold to Ganfeng under an offtake arrangement
that is subject to the market price and floor.

S&P said, "We consider the quality of MRL's JV and internal mining
service cash flows to be ultimately determined by MRL's viability
as an upstream miner. To this end, we reclassify internal and JV
mining services contracts as commodity revenues. That said, the
inclusion of the earnings streams does improve the profitability of
the company's commodities business and is likely to provide some
flexibility during a downturn as the company transitions to a
vertically integrated mining operator.

"In our opinion, MRL's external mining services has diminished over
the past few years, largely as a result of the cessation of sizable
one-off third-party construction and build-own-operate-transfer
contracts. We view crushing and processing services as having
strong counterparty creditworthiness and a good track-record of
earnings stability, albeit with limited contract diversity and
tenor. In our opinion, these risks are being appropriately managed
and our base case operating scenario assumes a stable revenue
base."

Mining services have traditionally provided the company with
stable, reliable cash flows from certain major mining companies,
predominantly iron ore. However, S&P notes that external contract
revenue (including from JV partners) has fallen from about A$950
million in the year ended June 30, 2014, to about A$340 million in
fiscal 2018, largely because of the cessation of sizable one-off
third-party construction and build-own-operate-transfer contracts
as well as the re-categorization of commodity-based activity.

Constraining MRL's financial risk profile are the group's sizable
development program, capital intensity, negative free cash flow,
and exposure to volatile end-market prices. Offsetting these
factors are the company's financial policy of gross debt-to-EBITDA
ratio of 2.0x (company's measure) and historically conservative
financial risk appetite.

S&P said, "We do not expect MRL to retain a substantial amount of
cash on its balance sheet over the long term as it considers growth
opportunities outside its lithium business. This consists of mine
infrastructure assets including a 330 km light railway system, and
port facilities. We note that these projects are subject to
feasibility assessments and board approval. In addition, MRL has an
established track record of attracting third-party capital with
operational expertise. The group also has limited exposure to
graphite and other commodities that could diversify earnings over
the longer term.

"Our base-case operating scenario forecasts MRL's adjusted
debt-to-EBITDA ratio will temporarily be above 4x immediately
following issuance of its proposed US$750 million (A$1,028 million
equivalent) 144a/Reg. S notes. We expect the ratio to improve to a
run-rate of about 3x in fiscal 2020 when lithium spodumene
production approaches nameplate capacity. To this end, we believe
fiscal 2020 is a more appropriate gauge of the company's financial
risk appetite."

The high-yield notes will remain unhedged—the group's
U.S.-dollar-denominated lithium product sales provide a meaningful
natural hedge. The current financial risk profile could absorb
debt-to-EBITDA approaching 4x as a result of end-market price
volatility.

The credit rating is also weighed down by the execution risks
associated with the development of MRL's two-stage 100ktpa lithium
hydroxide plant reaching and sustaining forecast nameplate
production. In S&P's view, this risk will materially diminish when
the lithium hydroxide plant approaches completion, and it has
clarity on the company generating positive free cash flow.

S&P said, "The stable outlook reflects our view that MRL will
appropriately manage its sizable execution risks with sufficient
financial buffer to absorb near-term volatility in lithium prices.
We expect MRL's lithium assets to generate sustained operating cash
flow, supported by a favorable commodity price outlook and sizable
JV proceeds. Our base-case operating scenario forecasts adjusted
debt to EBITDA to be about 3x over the next 12 to 24 months.

"We expect the Wodgina JV with Albemarle to proceed in its current
form over the next six to 12 months, following regulatory
approvals."

Immediate downward pressure could occur if MRL's JV with Albemarle
does not proceed in its current form, such that the company incurs
the full development and funding risk associated with its midstream
lithium hydroxide plants and infrastructure assets.

Downward pressure could also emerge if MRL's key credit metrics
weaken such that the company's adjusted debt to EBITDA exceeds 4x.
This scenario could occur if the company were to face:

-- Weak end-market demand;

-- Delay or cost escalations associated with the construction of
its lithium hydroxide plant;

-- Significant operational issues occur at either of its key
assets of Wodgina and Mt. Marion;

-- Capital management initiatives unsupported by underlying cash
generation; or

-- Material contract losses in its external mining services
division.

An upgrade is of low likelihood in the near term given the
execution risks associated with the company's growth strategy. S&P
could consider an upgrade once execution risks associated with the
lithium hydroxide plant recede and there is clarity on the company
sustainably generating positive free cash flow.

ORINOCO GOLD: First Creditors' Meeting Set for April 17
-------------------------------------------------------
A first meeting of the creditors in the proceedings of Orinoco Gold
Ltd will be held on April 17, 2019, at 12:00 p.m. at the offices of
Pitcher Partners, at Level 11, 12-14 The Esplanade, in Perth, WA.

Daniel Bredenkamp and Bryan Hughes of Pitcher Partners were
appointed as administrators of Orinoco Gold on April 6, 2019.

PEPPER I-PRIME 2019-1: S&P Puts Prelim B(sf) Rating on Cl. F Notes
------------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to eight
classes of prime residential mortgage-backed securities (RMBS) to
be issued by Permanent Custodians Ltd. as trustee of Pepper I-Prime
2019-1 Trust. Pepper I-Prime 2019-1 Trust is a securitization of
prime residential mortgages originated by Pepper HomeLoans Pty
Ltd.

The preliminary ratings reflect:

-- S&P's view of the credit risk of the underlying collateral
portfolio, including its view that the credit support is sufficient
to withstand the stresses it applies. The credit support for the
rated notes comprises note subordination.

-- The underwriting standard and centralized approval process of
the seller, Pepper HomeLoans.

-- The availability of a yield-enhancement reserve, amortization
reserve, and overcollateralization amount, which will all be funded
by excess spread to cover potential yield shortfalls and loss
reimbursements and to repay principal on the notes at various
stages of the transaction's term.

-- The extraordinary expense reserve of A$250,000, funded by
Pepper on or before closing, available to meet extraordinary
expenses. The reserve will be topped up via excess spread if
drawn.

-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including a liquidity facility
equal to 2.2% of the outstanding balance of the notes, and
principal draws, are sufficient under our stress assumptions to
ensure timely payment of interest.

-- The benefit of a cross-currency swap to hedge the mismatch
between the Australian dollar receipts from the underlying assets
and the U.S. dollar payments on the class A1-u notes.

  PRELIMINARY RATINGS ASSIGNED

  Pepper I-Prime 2019-1 Trust

  Class       Rating         Amount (mil.)
  A1-u1       A-1+ (sf)      US$266.5
  A1-a        AAA (sf)        A$225.0
  A2          AAA (sf)         A$90.0
  B           AA (sf)          A$18.5
  C           A (sf)           A$15.5
  D           BBB (sf)         A$10.5
  E           BB (sf)           A$7.0
  F           B (sf)            A$4.5
  G           NR                A$4.0

  NR--Not rated.


REGIONAL DRILLING: Second Creditors' Meeting Set for April 16
-------------------------------------------------------------
A second meeting of creditors in the proceedings of Regional
Drilling Pty Ltd has been set for April 16, 2019, at 10:00 a.m. at
the offices of GTS Advisory, Eagle Room, Level 24, at Allendale
Square, 77 St Georges Terrace, in Perth, 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 April 15, 2019, at 5:00 p.m.

Mathieu Tribut of GTS Advisory was appointed as administrator of
Regional Drilling on March 11, 2019.

RRAS DEVELOPMENT: First Creditors' Meeting Set for April 17
-----------------------------------------------------------
A first meeting of the creditors in the proceedings of RRAS
Development Pty Ltd will be held on April 17, 2019, at 2:30 p.m. at
the offices of Worrells Solvency & Forensic Accountants, at Level
15, 114 William Street, in Melbourne, Victoria.

Scott Andersen and Nathan Deppeler of Worrells Solvency were
appointed as administrators of RRAS Development on April 4, 2019.

SPECIALTY MENS: Second Creditors' Meeting Set for April 23
----------------------------------------------------------
A second meeting of creditors in the proceedings of Specialty Mens
Apparel Pty Ltd, trading as Ed Harry, has been set for April 23,
2019, at 12:00 p.m. at the offices of KPMG Office, Adelaide, at 151
Pirie Street, in Adelaide, SA.

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 April 18, 2019, at 12:00 p.m.


Gayle Dickerson and Brendan Richards of KPMG were appointed as
administrators of Specialty Mens on Jan. 15, 2019.

VSM 3: Second Creditors' Meeting Set for April 17
-------------------------------------------------
A second meeting of creditors in the proceedings of VSM 3 Star
Hospitality Pty Ltd has been set for April 17, 2019, at 2:00 p.m.
at the offices of Auxilium Partners, at Level 2, 949 Wellington
Street, in West Perth, 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 April 16, 2019, at 5:00 p.m.

Robert Allan Jacobs of Auxilium Partners was appointed as
administrator of VSM 3 Star on March 13, 2019.



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

CHINA EVERGRANDE: Moody's Puts B2 Sr. Unsec. Ratings to USD Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned B2 senior unsecured ratings
to the USD notes to be issued by China Evergrande Group (B1
positive).

Evergrande plans to use the proceeds from the proposed notes to
refinance existing indebtedness and for capital expenditures, with
the reminder for general corporate purposes.

RATINGS RATIONALE

"The proposed bond issuance will provide China Evergrande Group
with additional liquidity and lengthen its debt maturity profile,
while the impact on its credit metrics will be limited, because it
will use a large portion of the proceeds to refinance debt, ," says
Cedric Lai, a Moody's Vice President and Senior Analyst.

Evergrande's B1 corporate family rating reflects the company's
strong market position as one of the top three property developers
in China (A1 stable) in terms of contracted sales and size of land
bank. In addition, the rating reflects Evergrande's nationwide
geographic coverage, strong sales execution, low-cost land bank and
focus on mass-market residential properties.

However, Evergrande's rating is constrained by the high business
and financial risks associated with the company's high leverage
despite its plan to gradually deleverage.

Moody's expects that the company's leverage, as measured by
revenue/adjusted debt, will continue to improve to 67%-75% over the
next 12-18 months from around 56% in 2018, supported by increased
revenue recognition from its previous strong contracted sales and
more controlled debt level, as in line with the company's
deleveraging plan.

Similarly, its interest-servicing ability, as measured by
EBIT/interest, will also improve to 2.7x-3.5x from 2.5x over the
same period.

These ratios position Evergrande at the strong end of the company's
B1-rated peers.

Meanwhile, Moody's expects Evergrande's contracted sales, including
those of joint ventures and associates, to grow moderately to
around RMB575-600 billion in 2019, after registering 10%
year-over-year growth to RMB551 billion in 2018. This contracted
sales will support future revenue recognition.

In addition, Evergrande is likely to maintain its gross margin at a
high level of around 35% for the next 12-18 months, because of the
low cost for its land cost. This margin level provides the company
with a buffer against a price decline if China's property market
softens over the same period.

Moody's has included the RMB130 billion in investments from
Evergrande's strategic investors in its calculation of the
company's adjusted debt, but notes that the funds were treated as
equity by the company, in accordance with Hong Kong accounting
standards.

Moody's believes that Evergrande's liquidity risk is mitigated by
the company's track record in accessing the bank and capital
markets for debt refinancing.

The positive outlook reflects Moody's expectation that Evergrande
will sustain the improvement in its debt leverage over the next
12-18 months.

Upward rating pressure could emerge if Evergrande (1) demonstrates
further improvement in its discipline in terms of business growth
and acquisitions, (2) reports sufficient liquidity, and (3)
improves its credit metrics.

Financial indicators of rating upgrade pressure could include
Evergrande's (1) cash/short-term debt exceeding 1.0x-1.25x, (2)
revenue/adjusted debt exceeding 75%-80% and (3) EBIT/interest
exceeding 2.5x-3.0x on a sustained basis.

Given the positive outlook, a rating downgrade is unlikely.
However, the rating outlook could return to stable if the company's
credit metrics are unlikely to improve to levels that will support
an upgrade over the next 12-18 months.

The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.

China Evergrande Group is among the top three residential
developers in China by sales volume, with a standardized operating
model. Founded in 1996 in Guangzhou, the company has rapidly
expanded its business across the country over the past few years.

CHINA EVERGRANDE: S&P Rates New US$-Denom. Sr. Unsec. Notes 'B'
---------------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issue rating to the
proposed U.S. dollar-denominated senior unsecured notes by China
Evergrande Group (B+/Positive/--). The rating is subject to S&P's
review of the final issuance documentation.

S&P rates the notes one notch lower than the issuer credit rating
on Evergrande to reflect significant structural subordination risk.
As of Dec. 31, 2018, Evergrande's capital structure consists of
about Chinese renminbi (RMB) 600 billion of priority debt at both
project companies and subsidiaries, including its major subsidiary
Hengda Real Estate Group Co. Ltd. (B+/Positive.) It also has about
RMB74 billion of unsecured debt at the group level. As such,
Evergrande's priority debt ratio is almost 90%, significantly above
our notching-down threshold of 50%.

S&P believes that the new issuance will not significantly affect
Evergrande's leverage profile, because the company intends to use
the proceeds partly for refinancing. Besides, due to the sheer size
of the company's gross debt level, the new issuance is unlikely to
have a material impact.

S&P said, "The China-based developer has the ability to enhance its
capital structure and liquidity, in our view, so long as it can
maintain robust contracted sales inflow and further control its
spending. That is reflected in our positive outlook." However,
Evergrande's capital structure and liquidity remain its key rating
constraints, despite some improvement in its leverage ratio over
the past year. Its uneven capital structure has slightly worsened
at the end of 2018, with short-term debt increasing by 7% to RMB318
billion (47% of total debt) compared with the level at mid-2018,
weighing on its liquidity.

In addition, the uncertainty on Hengda's planned A-share listing on
China's domestic stock markets also points to an increasing risk
that Evergrande may need to resolve the due dates on its large
strategic investments, with the first batch due in January 2020.
That said, S&P believes there is still some time and potentially
several means for the company to tackle the issue.

CHINA FORTUNE: Fitch Rates $350MM Senior Notes Final 'BB+'
----------------------------------------------------------
Fitch Ratings has assigned China Fortune Land Development Co.,
Ltd.'s (CFLD, BB+/Stable) USD350 million 7.125% senior notes due
2022 and USD650 million 8.6% senior notes due 2024 final ratings of
'BB+'. The notes are issued by CFLD's wholly owned subsidiary, CFLD
(Cayman) Investment Ltd., and are unconditionally and irrevocably
guaranteed by CFLD. The final rating is in line with the expected
rating assigned on March 27, 2019.

CFLD's ratings are supported by its leading position in industrial
park development in key economic regions, particularly the
pan-Beijing region. The ratings are constrained by high
geographical concentration and poor information disclosure on its
62 massive industrial parks, each covering two square kilometres to
200 square kilometres. CFLD's leverage also rose to above 75% in
9M18, although this was partly due to temporary factors. Fitch will
consider negative rating action if it estimates that leverage will
be sustained above 50%.

KEY RATING DRIVERS

Stable Project Performance: CFLD's property contracted sales
increased by 8% to CNY129.2 billion in 2018, with the average
selling price dropping to CNY8,600/sq m, from CNY12,320/sq m a year
earlier, due to more sales in lower-tier cities in the Jingjinji
region. Revenue recognised from district development in
less-established counties, which was mainly revenue due from local
governments, rose by 5% yoy to CNY31 billion in 2018, compared with
a 67% increase in 2017.

Slower Cash Collection, Higher Leverage: Fitch estimates that
CFLD's leverage, as measured by net debt/district-related
inventory, increased to above 75% in 9M18, from 50% in 2017, due to
slower cash collection from the government following a review of
the validity of public-private partnership projects across China.
Fitch estimates that CFLD's cash receipts from local governments
dropped to around CNY10 billion, or below 40% of government-related
revenue in 2018, which includes revenue from infrastructure
construction, primary land and industrial park development as well
as service fees from industrial park management. Cash collection
from local governments was CNY19 billion, or about 70% of
government-related revenue, in 2017.

CFLD's housing sales collection was also particularly slow in 2017
and 2018 due to a more stringent definition of qualified buyers.
Fitch believes the effect may gradually dissipate from 2019 as
sales proceeds for projects sold in 2016-2017 start to be collected
in the later part of the year. Fitch will consider taking negative
rating action if it expects CFLD's leverage to be sustained above
50%. CFLD's leverage averaged at 39% between 2012 and 2016.

Business Partnerships Reduce Risks: Fitch believes CFLD's strategy
to seek more partnerships will sustain its strong business profile,
as the company would face rising execution risk if it relied on its
own development capacity to expand operations. CFLD partnered with
CIFI Holdings (Group) Co. Ltd. (BB/Stable) in February 2018 and
China Vanke Co., Ltd. (BBB+/Stable) in October 2018 to develop
property projects within its districts.

Fitch expects Ping An Insurance (Group) Co. to increase its
shareholding in CFLD to 25.25%, from below 20%, in the next few
months based on the company's announcement. Ping An's increased
involvement in the company is evident from the appointment of two
of its representatives on CFLD's board and the strategic
cooperation agreement signed with CFLD in September 2018. Fitch
will monitor the business activities between the two companies over
and above their co-investments in CFLD's projects to assess the
effect of the Ping An partnership on CFLD's business and liquidity
profiles.

High Geographical Concentration Risk: CFLD's dependence on housing
sales exposes it to the volatility of China's housing market, which
is subject to policy risk. This was demonstrated in CFLD's poor
cash collection in 2017. Revenue is concentrated in the pan-Beijing
region, which contributes 84% of total revenue. Contracted gross
floor area sold for the housing segment in the region fell to 55%
in 1H18, from 69% in 2017. However, most of CFLD's government
revenue still comes from the region and it will be years before a
more balanced regional business mix can be achieved.

Weak Information Disclosure: CFLD has weak information disclosure,
especially for its district park development, as it has devoted
greater disclosure to its property business in line with most
China-listed homebuilders. This means investors treat CFLD
similarly to other homebuilders and led to a Shanghai Stock
Exchange request in April 2018 for an explanation of CFLD's
business operations and accounting treatment, which saw its bond
and share prices suffer. However, the company has provided Fitch
with sufficient information for Fitch's credit analysis and is
cooperative and responsive to its information requests. Fitch
believes CFLD can improve its disclosure, especially since its
district park development includes large project investments.

DERIVATION SUMMARY

CFLD's business model remains dependent on China's housing market
and its large pan-Beijing housing market exposure constrains its
ratings below investment grade. CFLD receives non-property income
from government contracts and is thus less subject to counterparty
credit risk, especially as its business model involves paying land
premiums and taxes to local government, which are in turn used to
pay CFLD. This significantly strengthens its business profile
relative to other homebuilders, as it does not need to lock up
capital in land reserves that are not immediately needed for
development.

CFLD's business is unique and there are no similar peers. However,
given the asset trading/liquidation nature of its business, Fitch
has compared CFLD to Chinese homebuilders. CFLD has higher leverage
than 'BB-' and 'BBB-' rated homebuilders and has strong earnings
from industry services, giving it an interest cover ratio that is
2x-3x higher than that of Shimao Property Holdings Limited's
(BBB-/Stable) recurring EBITDA/interest cover of 0.5x and
Sino-Ocean Group Holding Limited's (BBB-/Stable; standalone:
BB+/Stable) 0.3x. The recoverable value of CFLD's inventory is
highly assured, despite its higher leverage of 50% versus Shimao's
28% and Sino-Ocean's 36%.

KEY ASSUMPTIONS

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

  - Housing sales gross floor area increasing by 20% in 2018 and
10% a year thereafter

  - District-related inventory increasing by 25% in 2018 and 2019

  - New investment commitments to rise by 15% a year and
accumulated completed investments to increase to 30%, from 25%, of
accumulated commitments between 2018 and 2021

  - Gross margin of 40% in 2018, dropping by 2pp a year thereafter

RATING SENSITIVITIES

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

  - Sustained neutral to positive cash flow from operation

  - Greater geographical diversification of its businesses and cash
flow

  - More detailed and publicly available disclosure of its
businesses and operational information

  - Maintaining a healthy financial profile, with low leverage and
strong cash flow/debt ratios

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

  - Large decline of housing contracted sales

  - Net debt/district-related inventory above 50% for a sustained
period

  - District contracted sales/net debt below 2.0x for a sustained
period (2017: 2.2x; 1H18: 1.6x)

  - Changes to government policies affecting CFLD's rights in its
projects

LIQUIDITY

Adequate Liquidity: CFLD's available cash of CNY36 billion at
end-September 2018 was sufficient to meet its short-term debt
obligations of less than CNY30 billion. Slower cash collection from
more restrictive home purchase policies in its key pan-Beijing area
housing market and lower cash receipts from the government due to
the review of public-private partnership projects likely led to
negative operating cash flow in 2018. CFLD successfully issued
multiple offshore senior notes in 2018 and 2019 so far that Fitch
believes that CFLD has successfully diversified its funding
channels into the offshore market and smoothed out its debt
maturity profile.

MODERN LAND: Fitch Rates Proposed USD Senior Notes 'B(EXP)'
-----------------------------------------------------------
Fitch Ratings has assigned Modern Land (China) Co., Limited's
(B/Stable) proposed US dollar senior notes a 'B(EXP)' expected
rating and a Recovery Rating of 'RR4'.

The notes are rated at the same level as Modern Land's senior
unsecured rating because they constitute its direct and senior
unsecured obligations. Part of the proposed notes is being offered
in exchange for its USD500 million notes due 2019. Modern Land
intends to use net proceeds from any new note issuance primarily
for refinancing existing debt.

The final rating is subject to the receipt of final documentation
conforming to information already received.

Fitch downgraded Modern Land's ratings in January 2019 to reflect
that the homebuilder's leverage, measured by net debt over adjusted
inventory including proportionate consolidation of joint ventures
(JVs), remains higher than in prior years. Fitch estimates that
Modern Land's leverage was around 47% at end-2018 and expects it to
remain at above 45% in 2019-2020 due to pressure to replenish land
to sustain growth.

KEY RATING DRIVERS

Increasing Leverage:  Modern Land's leverage was at around 47% at
both end-2018 and end-2017, but higher than 34% at end-2016, mainly
due to continued land acquisitions and higher leverage at the JV
level. Fitch expects the continued pressure on Modern Land to
acquire land in the future to sustain sales growth will push
leverage to close to 50% by 2020.

Modern Land's CNY19 billion in attributable contracted sales
remained around 60% of its reported contracted sales. The high
proportion of contracted sales from JVs means that Modern Land's
consolidated financial statement would not adequately reflect its
financial profile, and therefore itassessed the company's leverage
on a proportionately consolidated basis. Fluctuating leverage at
its JV projects will continue to affect Modern Land's leverage in
the future.

Limited Margin Improvement: Modern Land's gross profit margin
hovered around 20% in 2016-2018, compared with 31% in 2015. Fitch
estimates that the company's land cost as a percentage of
recognised average selling price was above 40% and will continue to
eat into Modern Land's recognised gross profit margin in the
future. EBITDA margin (including capitalised interest, which
usually lowers EBITDA margin by 5-6pp) was largely unchanged at
12.7% in 2018 from 12.2% in 2017, but was lower than the 20%-25% of
peers rated 'B'. The low EBITDA margin constrains the company's
deleveraging capacity despite growing contracted sales.

Sustained Land Bank Pressure:  Modern Land's attributable
available-for-sale land bank was 3.8 million square metres (sq m)
in gross floor area at end-2018, which corresponds to CNY40
billion-50 billion in attributable saleable resources with an
average selling price (ASP) of CNY10,000 -13,000 per sq m. Fitch
expects the company's land bank to be sufficient for around two
years of sales and Fitch believes Modern Land would remain under
pressure to add good-quality land to sustain growth in the next
three years.

Growing Scale: Modern Land's total contracted sales increased by
45% to CNY32 billion in 2018, after rising 34% in 2017. Its
attributable contracted sales also rose by 49% to CNY19 billion in
2018. Modern Land's saleable resources are mostly located in Tier 1
and 2 cities. Fitch estimates that Tier 1 cities, such as Beijing,
and Tier 2 cities, like Taiyuan, Hefei, Suzhou and Changsha,
account for around 70% of Modern Land's existing saleable resources
by value. Modern Land's total contracted sales grew 9% yoy to
CNY5.4 billion in January-March 2019, with the properties sold at
an ASP of CNY10,766 per sq m.

DERIVATION SUMMARY

Modern Land's attributable contracted sales of CNY19 billion in
2018 was close to that of other 'B' rated companies, such as
Beijing Hongkun Weiye Real Estate Development Co., Ltd.'s
(B/Stable) and Hong Yang Group Company Limited (B/Positive). Modern
Land's leverage is lower than that of Hongkun's 54.4% and
comparable to Hong Yang's 44% as of end-2017, but its EBITDA margin
is lower than Hongkun's 29% and Hong Yang's 37%.

Modern Land's sales are lower than those of 'B+' rated companies,
including Ronshine China Holdings Limited (B+/Stable) and Guangdong
Helenbergh Real Estate Group Co., Ltd.'s (B+/Stable). Their
leverages are similar to Modern Land's, but Modern Land has lower
margin.

KEY ASSUMPTIONS

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

  - Attributable contracted sales of CNY21 billion in 2019.

  - Attributable land investment accounting for 45% of attributable
contracted sales in 2019.

  - Construction cash cost accounting for 35% of attributable
contracted sales in 2019.

RATING SENSITIVITIES

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

  - Net debt/adjusted inventory (including JV proportionate
consolidation) below 40% for a sustained period

  - Land bank maintained at above 2.5 years of sales

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

  - Insufficient land bank for two years of sales

  - Net debt/adjusted inventory (including JV proportionate
consolidation) above 55% for a sustained period

  - EBITDA margin (excluding capitalised interest) below 18% for a
sustained period

LIQUIDITY

Adequate Liquidity: Modern Land's liquidity was weaker in 2018 but
still adequate, with total cash of CNY9.7 billion, including CNY3
billion restricted cash, compared with short-term debt of CNY8.8
billion, at end 2018. The short-term debt is mainly composed of
USD500 million offshore senior notes due in 2019 and secured bank
borrowings. Modern Land targets to exchange part of the 2019 notes
with those from the proposed note issuance and repay the rest of
the short-term debt as well as other secured borrowings using
pre-sale proceeds and internal cash. Modern Land also issued USD350
million of notes due 2020 in late 2018 and early 2019 and has yet
to deploy the proceeds to refinance its existing indebtedness.
Modern Land's funding cost increased to 8.2% in 2018 from 7.7% in
2017.

RISESUN REAL: Moody's Assigns First-time Ba3 CFR
-------------------------------------------------
Moody's Investors Service has assigned a first-time Ba3 corporate
family rating (CFR) to RiseSun Real Estate Development Co., Ltd.

At the same time, Moody's has assigned a B1 senior unsecured rating
to the proposed USD notes to be issued by RongXingDa Development
(BVI) Limited and unconditionally and irrevocably guaranteed by
RiseSun.

The outlook for the ratings is stable.

The proceeds from the bonds will be used for refinancing and
business development.

RATINGS RATIONALE

"RiseSun's Ba3 CFR reflects the company's long operating history
and strong brand name in the Bohai Rim region, as well as its
strong sales execution over the past few years," says Cedric Lai, a
Moody's Vice President and Senior Analyst.

RiseSun, a Langfang-based property developer, has a long operating
history that spans over 20 years. The company has a good track
record of managing through different downcycles in the property
sector, and has established a well-recognized brand name in the
Bohai Rim region.

The company has a strong market position in the Bohai Rim region,
which positions it well to benefit from the region's strong economy
and property market. For instance, the Bohai Rim region contributed
around half of the company's contracted sales in 2018.

In addition to its strong presence in the Bohai Rim region, RiseSun
has been broadening its geographic coverage and expanding into
cities in other regions, including Central and Western China, the
Yangtze River Delta, and Pearl River Delta over the last few
years.

The company has the ability to generate strong contracted sales
growth, as seen by the fact that its annual contracted sales grew
rapidly in the last two years. Specifically, RiseSun's total
contracted sales measured RMB101.6 billion in 2018, up a
significant 50% year-on-year, and its contracted sales in 2017
totaled RMB67.9 billion, a 33% increase year-on-year.

Moody's expects that RiseSun's total contracted sales will continue
to grow at an annual rate of 10% to reach around RMB110 billion in
2019. Such a scale is large compared with many of its Ba3-rated
Chinese property peers.

At December 31, 2018, the company's total saleable resources
comprised a gross floor area of around 36.1 million square meters
across 250 residential projects. Such a situation will support
RiseSun's sales and cash flow generation over the next 12-18
months.

"RiseSun's Ba3 CFR is constrained by its concentrated land bank in
tier 2 and lower-tier cities, and limited diversified funding
sources," adds Lai, who is also Moody's Lead Analyst for RiseSun.

RiseSun's operations are concentrated in tier 2 and lower tier
cities, with these cities accounting for around 40% and 60%
respectively of its total land bank at 31 December 2018. Moody's
expects that demand in lower-tier cities will weaken over the next
12-18 months — because of the scaling back of monetized
resettlements of shantytown residents — thereby negatively
affecting RiseSun's operating performance.

As mentioned, RiseSun's Ba3 CFR is constrained by its limited
diversified funding sources. RiseSun has been mainly focusing on
onshore funding, such as through bank loans, onshore bonds and
trust loans, and has not gained access to the offshore capital
markets or bank financing.

The company's debt leverage — as measured by revenue to adjusted
debt — improved to around 90% in 2018 from 65% in 2017. Moody's
expects that RiseSun's debt leverage will stabilize at around 85%
over the next 12-18 months, because of increased revenue
recognition from strong contracted sales over the past two years.

RiseSun's interest coverage — as measured by adjusted EBIT to
interest -- improved to 4.0x in 2018 from 3.4x in 2017. Moody's
expects that its interest coverage will trend towards 4.0x-4.2x
over the next 12-18 months. These projected ratios position the
company's CFR at the Ba3 rating level.

RiseSun's liquidity is adequate over the next 12-18 months.
Specifically, at December 31, 2018, the company's cash balance
totaled RMB30.4 billion, an amount which can cover 114% of its
short-term debt. Such cash holdings, together with its operating
cash flow, are sufficient to cover its short-term debt, as well as
estimated committed land payments over the next 12-18 months.

RiseSun's B1 senior unsecured bond rating is one notch lower than
it would otherwise be because of the risk of structural
subordination.

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.

The stable ratings outlook reflects Moody's expectation that
RiseSun will maintain its: (1) leadership position in the Bohai Rim
region and its strong sales growth; (2) adequate liquidity levels;
and (3) disciplined approach to land acquisitions.

Moody's could upgrade the ratings over the medium term if RiseSun:
(1) achieves strong contracted sales growth; (2) improves its
credit metrics; (3) maintains a strong liquidity position; or (4)
establishes a track record of access to the domestic and offshore
debt markets.

Credit metrics indicative of a possible upgrade include: (1)
revenue/adjusted debt above 90%; and (2) adjusted EBIT/interest
cover above 4.0x-4.5x on a sustained basis.

However, Moody's could downgrade the ratings if RiseSun shows a
weakening in its contracted sales growth, liquidity position,
profit margins or credit metrics.

Deteriorating credit metrics that could trigger a ratings downgrade
include: (1) revenue/adjusted debt below 65%; or (2) adjusted
EBIT/interest coverage below 2.5x-3.0x on a sustained basis.

The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in January 2018.

Founded in 1996, RiseSun Real Estate Development Co., Ltd., is
listed on the Shenzhen Stock Exchange, with its headquarters in
Langfang, Hebei Province.

The company engages in real estate development in China. Its
operations also involve industrial parks, property services and
hotel operations in China. At 31 December 2018, it had more than
250 property development projects, with an aggregate gross floor
area of 36.1 million square meters.

At December 31, 2018, RiseSun was 62.3% owned by its chairman, Mr.
Geng Jianming, as well as his family and friends acting in concert.

SUNAC CHINA: Moody's Rates Proposed USD Notes 'B1'
--------------------------------------------------
Moody's Investors Service has assigned a B1 senior unsecured rating
to Sunac China Holdings Limited's (Ba3 stable) proposed USD notes.

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

RATINGS RATIONALE

"The proposed bond issuance will support Sunac's liquidity profile
and will not materially affect its credit metrics, as it will use
the proceeds mainly to refinance existing debt," says Danny Chan, a
Moody's Assistant Vice President and Analyst.

Driven by an expected increase in revenue recognition from strong
contracted sales and controlled spending on land purchases and
non-property investments, Sunac's debt leverage--as measured by
revenue/adjusted debt (including adjustments for its shares in
joint ventures and associates)--will likely improve to 75%-80% over
the next 12-18 months from around 60% in 2018 and around 36% in
2017.

Moody's also expects Sunac's interest coverage — as measured by
adjusted EBIT/interest--will improve to 3.0x-3.2x over the next
12-18 months from around 2.6x in 2018.

Following 27% and 140% contracted sales growth in 2018 and 2017,
Sunac continued to report solid 11% year-on-year contracted sales
growth for the three months ended 31 March 2019.

Moody's expects the company's contracted sales will remain solid
but slow down in the next 1-2 years from a high base. The expected
solid but moderating sales growth in contracted sales is based on
the company's established brand name, quality products and sizable
saleable resources of approximately RMB783 billion for 2019.

Sunac's liquidity is adequate. Its cash balance of RMB120 billion
at the end of 2018 was sufficient to cover 131% of its short-term
debt.

Sunac's Ba3 CFR reflects the company's strong sales execution,
leading brand and market position in China's Tier 1 and Tier 2
cities, as well as the good quality of its land bank. The rating
also considers Sunac's good liquidity profile, driven by its rapid
asset turnover business model.

However, the CFR is constrained by the modest credit metrics
associated with Sunac's business expansion. In addition, the
adoption of a rapid asset turnover business model has reduced the
stability of its profitability and interest coverage. Nevertheless,
Moody's expects that the company's credit metrics will improve over
the next 12-18 months.

The stable outlook reflects Moody's expectation that the company
will further improve its profitability, remain prudent in its
financial management and control its investments in non-property
businesses.

The B1 senior unsecured debt rating is one notch lower than the
corporate family rating due to structural subordination risk.

This risk reflects the fact that the majority of claims are at the
operating subsidiaries and have priority over Sunac's senior
unsecured claims in a bankruptcy scenario. In addition, the holding
company lacks significant mitigating factors for structural
subordination.

Upward ratings pressure could emerge if Sunac: (1) demonstrates its
ability to exercise restraint in its non-core business investments;
(2) maintains its solid liquidity position; and (3) improves its
credit metrics, such that adjusted revenue/debt rises above
95%-100% and adjusted EBIT/interest rises above 3.5x-4.0x on a
sustained basis.

However, the ratings could be downgraded in case of: (1) a material
decline in its contracted sales; (2) a weakening liquidity
position; (3) substantial investments in its non-property
development businesses; or (4) weakening credit metrics, such that
adjusted revenue/debt falls below 60%-70% and adjusted
EBIT/interest drops below 2.5x-3.0x on a sustained basis.

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

Listed on the Hong Kong Stock Exchange on October 7, 2010, Sunac
China Holdings Limited is an integrated residential and commercial
property developer with projects in China's main economic regions.
The company develops a diverse range of properties, including
high-rise and mid-rise residences, detached villas, town houses,
retail properties, offices and car parks.

SUNAC CHINA: S&P Rates New U.S.$-Denominated Sr. Unsec. Notes 'B+'
------------------------------------------------------------------
S&P Global Ratings assigned its 'B+' long-term issue rating to a
proposed issue of U.S. dollar-denominated senior unsecured notes by
Sunac China Holdings Ltd. (Sunac: BB-/Stable/--). The China-based
developer intends to use the net proceeds primarily to refinance
its existing debt.

S&P said, "We rate the notes one notch below the issuer credit
rating on Sunac to reflect structural subordination risk. By the
end of 2018, Sunac's capital structure consists of Chinese renminbi
(RMB) 202.5 billion in secured debt, as well as RMB26.9 billion in
unsecured debt. As such, Sunac's secured debt ratio is around
88.3%, which is significantly above our 50% notching threshold. The
issue rating is subject to our review of the final issuance
documentation.

"We do not expect the new issuance to have significant impact on
Sunac's credit profile. In our view, the company will maintain
strong sales execution and sustainable profitability while
continuing to improve its financial leverage through more
controlled spending. This is reflected in the recent upgrade and
stable rating outlook on the company."


TEWOO: To Sell Copper at Below-Market Rates Amid Liquidity Issue
----------------------------------------------------------------
Alfred Cang at Bloomberg News reports that one of China's top
commodity traders, Tewoo Group, is selling copper at below market
rates as it grapples with a liquidity crunch, according to people
with knowledge of the matter.

The company, which is owned by the local Tianjin government, is
offloading some refined copper stocked in bonded zones as it
unwinds financing deals with some banks, said the people, who asked
not to be identified as the information isn't public, Bloomberg
relates. The metal is used as collateral in financing agreements or
committed assets in so-called repurchase agreements with banks,
they said.

According to Bloomberg, the people said the firm sold some copper
to other trading houses at a premium of about $10 per ton. That
compares with the copper premium in Yangshan, or the fee payable on
Chinese imports in addition to the London Metal Exchange price, of
$54 a ton last week.

Bloomberg says Tewoo has already sought support from its major
creditors to extend debt maturities, asking lenders including
Export–Import Bank of China and Agricultural Bank of China Ltd.
to convert some short-term debt into longer-term liabilities at a
meeting last week. An official from the Tianjin regional government
pledged to inject assets and push forward a restructuring of the
company, the report states.

At least 50,000 tons of refined copper, or 10 percent of the
country's total bonded inventory, were used by the company as
collateral or assets for financing deals in the first quarter,
according to the people cited by Bloomberg.

Copper futures for May in Shanghai slid 0.5 percent to CNY49,260
($7,329) a ton on April 8, Bloomberg discloses. Prices in London
were at $6,457.50 a ton. Tewoo's $300 million 4.50 percent note due
December 2019 fell by 0.9 cent on the dollar to 91.5 cents on April
8, according to Bloomberg-compiled prices.

The company is one of the nation's top commodity traders and ranked
132 in 2018's Fortune Global 500 list. It also operates in
industries including infrastructure, logistics, mining, autos and
ports, Bloomberg discloses citing the company's official website.
It had annual revenue of $66.6 billion, profits of about $122
million, assets of $38.3 billion, and over 17,000 employees as of
2017, according to Fortune's website.

Tewoo's Fortune ranking, which measures annual sales revenue, was
higher than some other Chinese conglomerates such as weapons maker
China North Industries Corp., service carrier China
Telecommunications Corp. and financial titan Citic Group Corp,
Bloomberg adds.

[*] CHINA: Sounds Alarm Over Bad-Loan Surge at Small Banks
----------------------------------------------------------
Don Weinland and Sherry Fei Ju at The Financial Times reports that
China's central auditing authority has sounded the alarm on a surge
of bad debt at small banks around the country, raising the question
of whether Beijing will continue to bail out struggling lenders or
eventually allow some to go bankrupt.

According to the FT, the National Audit Office said that some banks
in Henan province in central China had recorded 40 per cent of
their loan books as bad debt by the end of 2018, the first official
disclosure in decades of such high rates of toxic assets.

The province was home to 42 banks with non-performing loan rates
that had "crossed the warning line" of 5 per cent, 12 banks with
rates above 20 per cent, and "a few" with NPLs exceeding 40 per
cent, according to the audit authority's report cited by the FT.

The FT says solving China's bad debt problem is a top priority for
Beijing, which views it as a core component to maintaining
financial and social stability in the country.

The FT relates that many large banks have brought NPLs under
control, but city commercial banks and rural financial
institutions, which make up more than 26 per cent of China's total
banking assets, have continued to record higher rates of soured
loans as economic growth cools.

"The key risk right now is regional banks," the FT quotes Richard
Xu, a China financial sector analyst at Morgan Stanley, as saying.
"We've been highlighting this as something policymakers should be
watching."

According to the FT, financial authorities have devised a number of
methods for paring bad debt levels. Last year the volume of bad
loans reaching the market for distressed debt hit a two-decade high
of RMB1.75 trillion ($258 billion) as regulators promote the
transfer of NPLs from banks to private investors.

Ultra-high rates of bad debt above 40 per cent have prompted
questions over whether some banks could be allowed to fail, says
the FT. In recent years, banks in dire straits have been
consolidated with others and recapitalised but none has been
allowed to go under since the collapse of Hainan Development Bank
in 1998.

In response to the central auditor's report, an op-ed on April 6 in
the influential Chinese newspaper The Economic Observer called for
permitting small banks to exit the market if warranted by market
principles, the FT says.

The FT relates that the government's tolerance for allowing
state-owned companies to default on bonds has increased over the
past year, as shown by a number of missed payments. One such
company failed to repay a US dollar bond in Hong Kong in February,
the first offshore default in 20 years and a sign that the
government was not rushing to rescue state groups.

However, Zhang Xu, chief fixed-income analyst at Everbright
Securities, said the likelihood of formal bankruptcies at banks was
still low, the FT relays.

"The government will resolve [these debt issues] in a
market-oriented and legal way, without triggering any new risks in
the process of dealing with [the old] risks," he said.

Similarly, small banks with big bad debt problems are not expected
to be deemed a core element of the financial system.

"The banks referred to in the audit report are unlikely to be
deemed systemically important," said Grace Wu, senior director of
financial institutions at Fitch Ratings, the FT relays. "It is also
not a surprise for some of these banks to have poor financial
profiles."



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

ACID INDIA: CRISIL Assigns B+ Rating to INR20cr Loans
-----------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating on the bank
facilities of Acid India Limited (AIL, part of AIL grp).

                      Amount
   Facilities       (INR Crore)    Ratings
   ----------       -----------    -------
   Cash Credit            13       CRISIL B+/Stable (Assigned)

   Proposed Long Term
   Bank Loan Facility      7       CRISIL B+/Stable (Assigned)

The rating reflects the group's modest financial risk profile on
account of a highly leveraged capital structure and large working
capital requirements. These weaknesses are partially offset by the
extensive experience of the promoters in the chemicals distribution
business, and established relationships with key customers and
suppliers.

Analytical Approach

CRISIL has consolidated the business and financial profile of AIL
and its group company Global Flavours and Ingredients Private
Limited (GFIPL), referred to as AIL group. These because both these
companies have common management and operational and financial
fungibilities.

Key Rating Drivers & Detailed Description

Weaknesses:

* Modest financial risk profile: AIL group's financial risk profile
is marked by a modest net worth of INR6.8 crore and a high total
outside liabilities to tangible net worth (TOLTNW) ratio of 5.2
times as at March 31, 2018. Owing to the high working capital
requirements, the TOLTNW ratio is expected to remain high over the
medium term.

* Large working capital requirements: AIL group's operations are
working capital intensive, marked by high gross current assets of
116 days as on March 31, 2018. The inventory and receivables were
at 37 and 66 days respectively as on March 31, 2018. Working
capital requirements are expected to remain high over the medium
term.

Strength:

* Promoters' extensive experience and established relationships
with key customer and suppliers: The promoters have been in the
chemicals business for over 20 years. AIL has a strong supplier
base consisting of reputed clientele like Brittania Industries
Limited, Brakes India Limited, Hatsun India Limited etc. The group
is expected to benefit from its established relationship with its
customers over the medium term.

Liquidity
AIL's liquidity is modest marked by modest cash accrual and funding
support from promoters, partially constrained by high utilisation
of the bank limits. Cash accrual  in excess of INR0.50 crore is
expected to be generated over the medium term against no repayment
obligations. However, the bank limits of INR23.5 crore have been
highly utilised at around 97 percent, over the last twelve months
through February 2019, partially constraining the liquidity.

Outlook: Stable

CRISIL believes the AIL group will continue to benefit over the
medium term from its established relationship with customers and
suppliers. The outlook may be revised to 'Positive' in case of
higher-than-expected operating margin, significant equity infusion,
or reduction in working capital requirement, leading to improvement
in the financial risk profile, particularly liquidity. The outlook
may be revised to 'Negative' if the financial risk profile
deteriorates because of a decline in revenues or operating margin,
or in the case of an elongation in working capital management.

Establish in 1970 and later incorporated in 2004 as AIL, AIL
supplies chemicals, acids and oils in the domestic market. The
company deals in chemicals like citric acid, bromine bromide and
phosphoric acid, which find application in multiple industries.
Established in 2005 and later incorporated in 2010 as GIPL, GIPL
supplies aromatic chemicals and essential oils in the domestic
market, which finds its application majorly in the food processing
industry.  The group is managed by Mr. Nitin Asher.

AKSHAR SPINTEX: Ind-Ra Affirms 'BB+' Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Akshar Spintex
Limited's (ASL) Long-Term Issuer Rating at 'IND BB+' while
migrating the rating the non-cooperating category. The Outlook is
Stable. The issuer did not participate in the rating exercise
despite continuous requests and follow-ups by the agency. Thus, the
rating is based on the best available information.  Therefore,
investors and other users are advised to take appropriate caution
while using these ratings. The rating will now appear as 'IND BB+
(ISSUER NOT COOPERATING)' / Stable on the agency's website.

The instrument-wise rating actions are:

-- INR242.7 mil. Term loan due on August 2022 affirmed and
     migrated to non-cooperating category with IND BB+ (ISSUER NOT

     COOPERATING) / Stable rating;

-- INR60.0 mil. Fund-based working capital limit affirmed and
     migrated to non-cooperating category with IND BB+ (ISSUER NOT

     COOPERATING) / Stable rating; and

-- INR13.5 mil. Non-fund-based working capital limit affirmed and

     migrated to non-cooperating category with IND A4+ (ISSUER NOT

     COOPERATING) rating.

Note: ISSUER NOT COOPERATING: Issuer did not cooperate; based on
the best available information

KEY RATING DRIVERS

The affirmation reflects ASL's sustained medium scale of operations
and modest credit metrics in FY18. Revenue grew to INR930.76
million in FY18 (FY17: INR867.95 million) owing to an increase in
product demand. The company's return on capital employed was 3% in
FY18 (FY17: 6%) and EBITDA margins were modest at 6.7% (8.7%).
Despite the growth in revenue, the margin declined because of the
higher cost of raw material consumed. Its gross interest coverage
(operating EBITDA/gross interest expense) was 1.3x in FY18 (FY17:
1.4x) and net leverage (total adjusted net debt/operating EBITDAR)
was 5.9x (5.60x).

The ratings have been migrated to the non-cooperating category as
the company did not provide Ind-Ra with revised projections data,
latest banker details, updated management certificate and working
capital utilization in a timely manner.

COMPANY PROFILE

ASL was incorporated in September 2013 as a private limited company
and changed its constitution to a public limited company on January
5, 2018. The company is engaged in the business of cotton yarns and
is listed on BSE Ltd.

ALLURE CONSUMER: CRISIL Migrates 'B+' Rating to Not Cooperating
---------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Allure
Consumer Products Private Limited (ACPPL) to 'CRISIL B+/Stable
Issuer not cooperating'.

                    Amount
   Facilities     (INR Crore)     Ratings
   ----------     -----------     -------
   Term Loan           19.8       CRISIL B+/Stable (ISSUER NOT
                                  COOPERATING; Rating Migrated)

CRISIL has been consistently following up with ACPPL for obtaining
information through letters and emails dated
December 17, 2018 and January 31, 2019 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 ACPPL. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on ACPPL 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 ACPPL to 'CRISIL B+/Stable Issuer not cooperating'.

ACPPL set up in October 2016, is engaged into job work of toilet
soaps manufacturing for FMCGs companies. The manufacturing plant is
located at Dehradun.

AMMA WOODS: CRISIL Reaffirms 'D' Rating on INR19.6cr Loans
----------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank facilities of Amma
Woods Private Limited (AWPL) at 'CRISIL D/CRISIL D'.  

                     Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Cash Credit           7.1       CRISIL D (Reaffirmed)
   Letter of Credit     12.5       CRISIL D (Reaffirmed)

The rating continues to reflect its delays in debt servicing due to
weak liquidity.  The rating further reflects AWPL's modest scale in
a fragmented and competitive timber trading industry. This rating
weakness is partially offset by the extensive experience of AWPL's
promoters in the timber trading business.

Key Rating Drivers & Detailed Description

Weakness:

* Modest scale of operations: With an operating income of around
INR10 crore in fiscal 2017, scale remains small in the highly
fragmented and competitive timber trading industry that has low
entry barrier.

Strength
* Extensive experience of promoters: AWPL is promoted by Mr.Saleesh
K S. who is in timber trading business for over 25 years. The
significant experience and strong relationship with reputed
customers has ensured consistent order flow over the years.

Liquidity
The rating reflects delays in repayment of bank debt. These delays
have been due to stretched receivables.

Incorporated in 2012, AWPL is a Kerala-based company that trades in
timber. The company is managed by the Kerala-based Keyes group
which has over 25 years of experience in the wood trading business.
The day-to-day operations are managed by Ms. K V Sulekha.

BHARAT MOTOR: CRISIL Migrates B+ Rating to Not Cooperating
----------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Bharat Motor
Parcel Service (BMPS) to 'CRISIL B+/Stable Issuer not
cooperating'.

                    Amount
   Facilities     (INR Crore)     Ratings
   ----------     -----------     -------
   Loan Against        10         CRISIL B+/Stable (ISSUER NOT
   Property                       COOPERATING; Rating Migrated)

CRISIL has been consistently following up with BMPS for obtaining
information through letters and emails dated December 17, 2018 and
January 31, 2019 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 BMPS. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BMPS 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 BMPS to 'CRISIL B+/Stable Issuer not cooperating'.

BMPS, setup in 1960 in Vijaywada, by Mr. T Sesharao and his
brothers, Mr. T Vara Prasad, Mr. T. Sathyanarayana and Mr. T
Ramakrishna, is engaged in the business of road transportation and
has a fleet of 120 trucks. It primarily deals in transportations of
food items, apart from pharmaceutical products, paints and
batteries.

BILASA MEDICALS: CRISIL Moves 'B' Rating to Not Cooperating
-----------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Bilasa
Medicals Private Limited (BMPL) to 'CRISIL B/Stable Issuer not
cooperating'.

                    Amount
   Facilities     (INR Crore)    Ratings
   ----------     -----------    -------
   Cash Credit          1        CRISIL B/Stable (ISSUER NOT
                                 COOPERATING; Rating Migrated)

   Term Loan           15        CRISIL B/Stable (ISSUER NOT
                                 COOPERATING; Rating Migrated)

CRISIL has been consistently following up with BMPL for obtaining
information through letters and emails dated December 17, 2018 and
January 31, 2019 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 BMPL. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BMPL 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 BMPL to 'CRISIL B/Stable Issuer not cooperating'.

Incorporated in 2009, BMPL runs a multi-specialty hospital, aaRBee
Institute of Medical Sciences, in Bilaspur, Chhattisgarh, with
total capacity of 450 beds. The hospital started operations from
December 2016. The company also runs a nursing college on the same
premises with total intake of 50 students. Fiscal 2018 was the
college's first year.

BKG ENTERPRISES: CRISIL Migrates 'B' Rating to Not Cooperating
--------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of BKG
Enterprises LLP to 'CRISIL B/Stable Issuer not cooperating'.

                         Amount
   Facilities         (INR Crore)    Ratings
   ----------         -----------    -------
   Proposed Long Term       25       CRISIL B/Stable (ISSUER NOT
   Bank Loan Facility                COOPERATING; Rating
                                     Migrated)

CRISIL has been consistently following up with BKG Enterprises LLP
(BKGE) for obtaining information through letters and emails dated
December 17, 2018 and January 31, 2019 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 BKGE. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on BKGE 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 BKGE to 'CRISIL B/Stable Issuer not cooperating'.

Established in 2016, BKGE is engaged in commercial real-estate
development. The firm is part of BKG group based out of Karnataka.
Its day to day operations are managed by Mr. Bhavihalli Rudra
gouda.

ELEGENT INFRASTRUCTURE: CRISIL Cuts Rating on INR25cr Loan to D
---------------------------------------------------------------
Due to inadequate information, CRISIL, in line with the Securities
and Exchange Board of India guidelines, had migrated its ratings on
bank facilities of Elegent Infrastructure Private Limited (EIPL) to
'CRISIL BB/Stable Issuer Not Cooperating'. However, the company's
management has started sharing information necessary for a
comprehensive review of the rating. Consequently, CRISIL is
downgrading the rating to 'CRISIL D' from 'CRISIL BB-/Stable Issuer
Not Cooperating'.

                     Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Long Term Loan        10        CRISIL D (Downgraded from
                                   'CRISIL BB/Stable ISSUER NOT
                                   COOPERATING')

   Term Loan             15        CRISIL D (Downgraded from
                                   'CRISIL BB/Stable ISSUER NOT
                                   COOPERATING')

The rating reflects instances of delay by EIPL in servicing its
term debt interest and principal payment; the delays were due to
lower than anticipated cash flows resulting in weak liquidity.

EIIPL is also exposed to project related risks associated with
on-going project and is vulnerable to cyclicality in Indian Real
estate industry. However, EIPL benefits from the experience of the
promoters in the real estate business.

Key Rating Drivers & Detailed Description

Weaknesses

* Instances of delays in repayment of term debt obligations: The
company has availed term loan of INR25.0 crore from the bank. The
company has been delaying the repayments of both interest and
principal of its term loan on account of low net cash accruals to
meet  the repayment obligations resulting in weak liquidity
profile.

* Exposure to project related risks associated with on-going
project: While the project is in advance stages, it continues to
remain susceptible to timely completion since it will be dependent
on the customer advances to complete the project in time. The
demand for the project has been impacted by the demonetization, GST
and RERA that has impacted real-estate sector adversely.

* Vulnerable to cyclicality in Indian Real estate industry: The
real estate sector in India is cyclical and is marked by volatile
prices, opaque transactions, and a highly fragmented market
structure. The execution of the real estate projects and
profitability of various real estate players will continue to
remain vulnerable to multiple property laws, increase in supply,
demonetization, and GST implementation, attractive prices offered
by various builders and constant regulatory changes by the
government.

Strengths
* Experience of promoters in the real estate business: The
promoters have been engaged in real estate industry for about 3
decades and have earlier successfully delivered 3 projects in the
residential and plotting segment. All the projects developed are
promoted/launched under single brand name 'Terra'.

Liquidity
The liquidity profile of the company is weak reflected by
insufficient net cash accruals of INR7 lacs against term loan
repayment obligation of INR12.5 crore for fiscal 2018. Going ahead
also, the net cash accruals are expected to be lower than the term
loan repayment obligation on account of stretch in liquidity. Due
to this, the company has been delaying on its repayment of its term
loan.

EIPL, incorporated in 2005 by Mr. Mahender Arora, Mr. Sunil Chutani
and Mr. Pradeep Bajaj is engaged in real estate development. The
company is currently developing a residential project in name of
'Terra Elegance' at Bhiwadi (Rajasthan).

GLOBAL FLAVOURS: CRISIL Assigns B+ Rating to INR10cr Cash Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating on the bank
facilities of Global Flavours and Ingredients Private Limited
(GIPL, part of AIL grp).

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

The rating reflects the group's modest financial risk profile on
account of a highly leveraged capital structure and large working
capital requirements. These weaknesses are partially offset by the
extensive experience of the promoters in the chemicals distribution
business, and established relationships with key customers and
suppliers.

Analytical Approach

CRISIL has consolidated the business and financial profile of GIPL
and its group company Acid India Limited referred to as AIL group.
These because both these companies have common management and
operational and financial fungibilities.

Key Rating Drivers & Detailed Description

Weaknesses:

* Modest financial risk profile: AIL group's financial risk profile
is marked by a modest net worth of INR6.8 crore and a high total
outside liabilities to tangible net worth (TOLTNW) ratio of 5.2
times as at March 31, 2018. Owing to the high working capital
requirements, the TOLTNW ratio is expected to remain high over the
medium term.

* Large working capital requirements: AIL group's operations are
working capital intensive, marked by high gross current assets of
116 days as on March 31, 2018. The inventory and receivables were
at 37 and 66 days respectively as on March 31, 2018. Working
capital requirements are expected to remain high over the medium
term.

Strength:

* Promoters' extensive experience and established relationships
with key customer and suppliers: The promoters have been in the
chemicals business for over 20 years. AIL has a strong supplier
base consisting of reputed clientele like Brittania Industries
Limited, Brakes India Limited, Hatsun India Limited etc. The group
is expected to benefit from its established relationship with its
customers over the medium term.

Liquidity
AIL's liquidity is modest marked by modest cash accrual and funding
support from promoters, partially constrained by high utilisation
of the bank limits. Cash accrual of around INR0.50 to 1 crore is
expected to be generated over the medium term against no repayment
obligations. However, the bank limits of INR23.5 crore have been
highly utilised at around 97 percent, over the last twelve months
through February 2019, partially constraining the liquidity.

Outlook: Stable

CRISIL believes the AIL group will continue to benefit over the
medium term from its established relationship with customers and
suppliers. The outlook may be revised to 'Positive' in case of
higher-than-expected operating margin, significant equity infusion,
or reduction in working capital requirement, leading to improvement
in the financial risk profile, particularly liquidity. The outlook
may be revised to 'Negative' if the financial risk profile
deteriorates because of a decline in revenues or operating margin,
or in the case of an elongation in working capital management.

Establish in 1970 and later incorporated in 2004 as AIL, AIL
supplies chemicals, acids and oils in the domestic market. The
company deals in chemicals like citric acid, bromine bromide and
phosphoric acid, which find application in multiple industries.
Established in 2005 and later incorporated in 2010 as GIPL, GIPL
supplies aromatic chemicals and essential oils in the domestic
market, which finds its application majorly in the food processing
industry.  The group is managed by Mr.Nitin Asher.

GREEN LEAF: Ind-Ra Affirms 'BB-' LT Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Green Leaf Plasto
Private Limited's (GLPPL) Long-Term Issuer Rating at 'IND BB-'. The
Outlook is Stable.

The instrument-wise rating actions are:

-- INR3.29 mil. (reduced from INR6.9 mil.) Term loans due on May
     2020 affirmed with IND BB-/Stable rating; and

-- INR120 mil. (increased from INR99 mil.) Fund-based facilities
     affirmed with IND BB-/Stable/IND A4+ rating.

KEY RATING DRIVERS

The affirmation reflects GLPPL's continued moderate scale of
operations. Revenue increased to INR872 million in FY18 (FY17:
INR860 million), on account of an increase in the number of orders
received from existing customers. The company booked revenue of
INR684 million in 9MFY19. Ind-Ra expects revenue to witness stable
growth in the medium term on account of a regular order inflow.

The ratings are constrained by the company's modest EBITDA margin
and weak credit metrics, on account of its presence in a
competitive food grain processing industry. Also, the EBITDA
margins remained volatile in the range of 1.7%-2.2% over FY15-FY18
(FY18: 2.13%, FY17: 1.91%), owing to fluctuations in commodity
prices. Its return on capital employed was 9% in FY18 (FY17: 11%).
EBITDA interest coverage (operating EBITDA/gross interest expense)
fell to 1.50x in FY18 (FY17: 1.54x) and net financial leverage
(adjusted net debt/operating EBITDAR) deteriorated to 7.66x (6.87x)
due to an increase in total debt and thin EBITDA margins.

The ratings are also constrained by GLPPL's tight liquidity
position, due to working capital intensive nature of a business, as
reflected by 90% utilization of the working capital limits over the
12 months ended February 2019. Also, cash flow from operations
remained negative at INR30 million in FY18 (FY17: negative INR62
million).  

The ratings, however, are supported by the company's promoters'
more than five years of experience in the wheat processing
industry.

RATING SENSITIVITIES

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

Negative: Substantial deterioration in the EBITDA margins along
with deterioration in the overall credit metrics or further stress
on the liquidity position, on a sustained basis, could be negative
for the ratings.

COMPANY PROFILE

Established in 2011, GLPPL is engaged in the processing of raw
wheat grains to produce whole wheat flour and refined flour. Its
manufacturing facility is located in Aurangabad, Maharashtra.

HOTEL SWOSTI: Ind-Ra Affirms 'BB' LT Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Hotel Swosti Pvt
Ltd.'s (HSPL) Long-Term Issuer Rating at 'IND BB'. The Outlook is
Stable.

The instrument-wise rating actions are:

-- INR41.9 mil. (reduced from INR46.7 mil.) Term loan due on
     March 31, 2025, affirmed with IND BB/Stable rating; and

-- INR7.5 mil. Fund-based limits affirmed with IND BB/Stable
     rating.

KEY RATING DRIVERS

The affirmation reflects HSPL's continued small scale operations,
albeit its revenue rose to INR105.86 million in FY18 from INR92.55
million in FY17.

The ratings reflect the modest EBITDA margin of HSPL, which was
20.1% in FY18 (FY17: 21.7%). The marginal decline in operating
margin was driven by an increase in the overall cost of materials
consumed. In addition, the company's return on capital employed was
10.0% in FY18 (FY17: 10.0%).

The ratings, however, are supported by HSPL's strong credit
metrics, driven by a low reliance on external borrowings. The
company's interest coverage ratio was 5.6x in FY18 (FY17: 4.0x) and
net leverage was 2.5x (1.4x).

The ratings continue to be supported by the comfortable liquidity
of HSPL. Its average maximum fund-based facility use was 24.08% for
the 12 months ended February 2019. However, the company's cash flow
from operations turned negative at INR1.70 million (FY17:
INR21.21million). Its cash balance in hand was INR2.37million in
FY18 (FY17: INR0.63 million).

The rating factor in the occupancy rate of 74.5% in FY18 (FY17:
69%) and the debt service coverage ratio of about 1.71x in FY18.

The ratings continue to be supported by the promoter's experience
of over three decades in the hospitality industry.

RATING SENSITIVITIES

Positive:  A significant rise in revenue, while maintaining strong
credit metrics, may lead to a positive rating action.

Negative: A decline in overall credit metrics and revenue may lead
to a negative rating action.

COMPANY PROFILE

Incorporated in 1981, HSPL operates a three-star hotel (Hotel
Swosti) in Bhubaneswar, Odisha. The hotel, which commenced
operations in 1984, is managed by Jitendra Kumar Mohanty, Bijendra
Kumar Mohanty, Chiranjiv Mohanty, Bipasa Mohanty, and Sasmita
Mohanty.

IL&FS: Lenders May Set Aside Provisions vs. Accounts in March Qtr
-----------------------------------------------------------------
BloombergQuint reports that lenders to Infrastructure Leasing &
Financial Services Ltd. will likely set aside floating provisions
against their exposures to the group and its special purpose
vehicles in the March 2019 quarter even though the accounts would
not be tagged as 'non performing' immediately, three bankers in the
know said. This, lenders believe, will help them avoid the ire of
courts and the banking regulator.

BloombergQuint notes that the income recognition and asset
classification norms of the Reserve Bank of India mandate that
banks must classify an account as non-performing asset (NPA) if it
has been in default for 90 days or more. However, the National
Company Law Appellate Tribunal in a recent order said that banks
cannot tag any IL&FS accounts as NPAs without the court's
permission. While the RBI has sought a modification of the order, a
decision from the court is pending, BloombergQuint says.

According to the three bankers quoted by BloombergQuint, lenders
are likely to take a final decision on the matter after the
National Company Law Appellate Tribunal (NCLAT) decides on an
intervention petition filed by the RBI on April 8. Lenders will
also look for any directions from the regulator on provisions
against the account before they close their accounts for the last
financial year.

The IL&FS Group has a consolidated debt of over INR98,000 crore,
where public sector banks have the highest exposure of over
INR35,000 crore, BloombergQuint discloses citing a presentation by
the new board on April 3. Other banks, including private sector and
foreign lenders have a total exposure of nearly INR16,000 crore.
The rest of the debt is held by investors in non-convertible
debentures and commercial papers, financial institutions,
corporates and state governments, BloombergQuint relays.

State Bank of India, Punjab National Bank Ltd., Bank of Baroda,
Union Bank of India, IDBI Bank Ltd. and Bank of India, have loan
exposures to IL&FS Group. Most state-run banks are yet to make
provisions against the account, according to BloombergQuint.

BloombergQuint says private sector lender IndusInd Bank has already
made floating standard asset provisions worth INR530 crore and
overall provisions of INR600 crore against its exposure to IL&FS
and its SPVs in the July-September and October-December quarters.
While announcing its results for the October-December quarter, Yes
Bank had declared that its exposure to the IL&FS Group was at
INR2,530 crore, of which, INR1,913 crore was already classified as
NPA and a 25 percent provision was being maintained.

BloombergQuint relates that in a press briefing earlier last week,
Uday Kotak, non-executive chairman, IL&FS had stated that the board
was not in a position to provide a timeline to lenders on repayment
of their dues as the group structure is complicated and a
resolution plan is not easy. It is also not possible to determine
how long the NCLAT mandated moratorium will last, Kotak added.

According to BloombergQuint, the group is currently in the midst of
a sale process for monetising 55 different assets across six
business verticals to raise funds. The total debt associated with
these assets is around INR40,000 crore. However, it is not clear
how much the creditors will be paid from this. The IL&FS Group is
also trying to sell its non-core assets including real estate and
vehicles owned by the company, N Sivaraman, chief operating officer
had said.

According to the NCLAT's order, a sub-set of IL&FS entities, which
are in a position to repay dues fully, will be allowed to restart
payments. However, others which can either partially repay or not
repay at all will remain under moratorium, BloombergQuint relays.

                         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.

KAMAL AUTO: CRISIL Withdraws B- Rating on INR20cr Loans
-------------------------------------------------------
CRISIL has reaffirmed its rating on the long term bank facilities
of Kamal Auto Industries Coach Works Private Limited (Kamal) and
subsequently withdrawn the ratings at the company's request and on
receipt of a no-objection certificate from the bankers. The
withdrawal is in line with CRISIL's policy on withdrawal of bank
loan ratings.

                     Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Cash Credit           5.5       CRISIL B-/Stable (Rating
                                   reaffirmed and Withdrawn)

   Proposed Long Term    6.53      CRISIL B-/Stable (Rating
   Bank Loan Facility              reaffirmed and Withdrawn)

   Standby Line of        .80      CRISIL B-/Stable (Rating  
   Credit                          reaffirmed and Withdrawn)

   Term Loan             7.17      CRISIL B-/Stable (Rating
                                   reaffirmed and Withdrawn)

Kamal, incorporated in 1980 and promoted by Mr Deshnidhi Kasliwal,
earlier fabricated bus/truck bodies for Indian Railways and
Rajasthan State Road Transport Corporation. It now distributes
products of L G Electronics India Pvt Ltd (rated 'CRISIL
AAA/Stable/CRISIL A1+') and has leased commercial space to Walmart
India Pvt Ltd, Bajaj Auto Limited and Hyundai Motor India Limited.

KUMARAN POULTRY: CRISIL Assigns B+ Rating to INR5.20cr Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Kumaran Poultry Farm (KPF).

                     Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Cash Credit          5.20       CRISIL B+/Stable (Assigned)
   Long Term Loan       0.93       CRISIL B+/Stable (Assigned)

The rating reflects the firm's exposure to inherent risks in the
poultry industry and average financial risk profile. These
weaknesses are partially offset by the extensive experience of its
proprietor.

Key Rating Drivers & Detailed Description

Weaknesses

* Exposure to inherent risks in the poultry industry: The industry
is vulnerable to outbreak of disease among chicks, which can affect
sales volume and reduce selling price. The segment is also affected
by seasonal demand, leading to volatility in the prices of end
product.

* Average financial risk profile: Networth was modest at 2.38 crore
and gearing high at 3.08 times, as on March 31, 2018. However,
gearing is expected to improve with term loan repayment.

Strength
* Extensive experience of proprietor: Presence of over 25 years in
the poultry industry has enabled the proprietor to understand
market dynamics and establish healthy relationship with suppliers
and customers.

Liquidity
Liquidity is stretched because of high utilisation (90%) of
fund-based limit of INR5.2 crore in the seven months ended February
2019. Cash accrual was INR97 lakh in fiscal 2018, and is expected
at 1-1.5 crore against debt obligation of INR1.08 crore. Further,
the firm has access to fund based limit of 5.2 crores which were
utilised to the tune of 90% in the last 7 months ending February
2019.

Outlook: Stable

CRISIL believes KPF will continue to benefit from the extensive
experience of its proprietor and established client relationship.
The outlook may be revised to 'Positive' in case of a sustained
increase in revenue and profitability, while maintaining efficient
working capital cycle and improvement in capital structure. The
outlook may be revised to 'Negative' if decline in profitability,
stretch in working capital cycle, or large, debt-funded capital
expenditure further weakens capital structure.

Set up in 2005 in Tamil Nadu as a proprietorship firm by Mr K
Subramaninam, KPF is engaged in the poultry and hatchery business.

MANIKESWARI GEMS: CRISIL Withdraws B Rating on INR30cr Cash Loan
----------------------------------------------------------------
CRISIL has withdrawn its rating on the long-term bank facility of
Manikeswari Gems Private Limited (MGPL) on the request of the
entity. The rating action is in line with CRISIL's policy on
withdrawal of its ratings on bank loans.

                     Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------    -------
   Proposed Cash         30       CRISIL B/Stable (ISSUER NOT
   Credit Limit                   COOPERATING; Rating Withdrawn)


CRISIL has been consistently following up with MGPL for obtaining
information through letters and emails dated December 31, 2017 and
June 29, 2018, apart from telephonic communication. However, MGPL
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 MGPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MGPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with 'CRISIL BB' rating
category or lower'.Based on the last available information, the
rating on bank facilities of MGPL continues to be 'CRISIL B-Stable
Issuer Not Cooperating'

MGPL, incorporated in the year 2000, mines iolite and cat's eye
(gem stone). The company has four mines in Odisha; currently,
however, only one mine is operational. MGPL also trades in gems and
stones. Bhubaneswar-based Mr Sushil Agarwal and family are the
promoters.

MONTRISE INFRA: CRISIL Migrates 'B' Rating to Not Cooperating
-------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Montrise Infra
(MI) to 'CRISIL B/Stable/CRISIL A4 Issuer not cooperating'.


                     Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Bank Guarantee        2.5       CRISIL A4 (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Cash Credit           3.5       CRISIL B/Stable (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Proposed Long Term    3.0       CRISIL B/Stable (ISSUER NOT
   Bank Loan Facility              COOPERATING; Rating Migrated)

CRISIL has been consistently following up with MI for obtaining
information through letters and emails dated December 31, 218 and
January 31, 219 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 MI. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MI 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 MI to 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.

MI, established in 2003 as a proprietorship concern is engaged in
civil construction work (Building), majorly For Govt. of Telangana
and Andhra Pradesh.  Civil constructions works are related to
hospital, official quarters, university, School.

MOYALAN AGRO: CRISIL Reaffirms 'B+' Rating on INR8cr Loans
----------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL B+/Stable' rating on the bank
facilities of Moyalan Agro Pipes (Moyalan).

                     Amount
   Facilities      (INR Crore)    Ratings
   ----------      -----------    -------
   Long Term Bank
   Facility             1         CRISIL B+/Stable (Reaffirmed)

   Overdraft            7         CRISIL B+/Stable (Reaffirmed)

The ratings continue to reflect the firm's below-average financial
risk profile, driven by small networth, and its modest scale of
operations. The weaknesses are partially offset by the extensive
experience of the proprietor in the pipes industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Below-average financial risk profile: Networth was small at about
INR3.5 crore as on March 31, 2018 due to low accretion to reserves.
Consequently, gearing was high at 5.8 times as on
March 31, 2018, mainly due to large working capital debt. Debt
protection metrics were moderate, with interest coverage ratio at
1.89 time during fiscal 2018.

* Modest scale of operations: Small scale, indicated by revenue of
INR52 crore in fiscal 2018, limits bargaining power with supplier
as well as customers. Small scale and limited value addition of
operations have resulted in low operating margin of 2.9% in fiscal
2018.

Strength
* Extensive experience of the proprietor in the pipes industry
The experience of 30 years of proprietor Mr Rainy Jose in the pipe
industry has helped the firm establish healthy relationships with
dealers in Kerala, and strengthen its position in the highly
competitive polyvinyl chloride (PVC) pipes market.

Liquidity
Moyalan has modest liquidity marked by high bank limit utilization
and cushion in between the accruals and debt obligations. The
average bank limit utilization for last 12 months ended December
2018 is 90%.The Firm has generated cash accruals of INR0.87 Cr for
the FY2018 against nil debt obligations.

Outlook: Stable

CRISIL believes Moyalan will continue to benefit from the
proprietor's extensive industry experience and established
dealership network. The outlook may be revised to 'Positive' if
significant increase in revenue and profitability, or substantial
equity infusion, leads to a better financial risk profile. The
outlook may be revised to 'Negative' if Moyalan undertakes
aggressive, debt-funded expansion, or reports lower-than-expected
revenue and operating profit margin, leading to deterioration in
its financial risk profile.

Moyalan, based in Thrissur (Kerala), manufactures PVC pipes. The
firm is a proprietorship concern of Mr Rainy Jose.

MUTHU SILK: CRISIL Reaffirms B+ Rating on INR6.5cr Cash Loan
------------------------------------------------------------
CRISIL has reaffirmed its CRISIL B+/Stable rating on the bank
facilities of Muthu Silk House (MSH).

                     Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Cash Credit           6.5       CRISIL B+/Stable (Reaffirmed)

The rating continue to reflect the firm's small scale of operations
in the intensely competitive retail textile industry, and
below-average financial risk profile because of a modest net worth
and a high total outside liabilities to tangible net worth ratio
and high working capital requirements. These rating weaknesses are
partially offset by an established brand the extensive industry
experience of the promoters in the retail trading segment.

Key Rating Drivers & Detailed Description

Weaknesses

* Small scale of operation, geographic concentration and intense
competition in textile retail business: Though the firm has been in
operations for more than five decades in the same line of business,
its revenues stood at INR23 crore on for fiscal 2018. The firm has
been able to establish its brand in Puducherry; however, the firm
has not diversified into different states or regions and has been
operating in the same area for the past five decades.

* Below Average Financial Risk Profile: MSH's financial risk
profile is below average marked by a leveraged capital structure
and modest debt protection metrics. The gearing and interest
coverage were at around 3.5 times and 1.41 percent for fiscal 2018.
The financial risk profile is expected to remain below average over
the medium term due to high reliance on debt to fund working
capital requirements. The operations are working capital intensive
as reflected in the high gross current assets days, which is
estimated at around 194 days as on March 31, 2018; primarily due to
high inventory.

Strengths
* Reputed brand and promoters experience in the silk sarees retail
business in Puducherry: MSH has an established presence in the
retail textile business in Puducherry for more than five decades.
It is a well-known brand among customers in and around Puducherry
and has a showroom located in the prime business area enabling
higher footfalls.  Over the years, MSH has developed healthy
relationships with weavers and agents for procurement of different
types of garments, especially silk sarees.

Liquidity
MSH has moderate liquidity marked by moderate cash accrual against
no repayment obligations. MSH's fund based limits of INR6.5 crore
have been utilised at an average of around 90 percent over the
twelve month ended January 2019. The firm is expected to generate
cash accrual of around INR0.50 to 0.70 crore over the medium term,
against which there are no repayment obligations. Liquidity is
expected to remain moderate over the medium term.

Outlook: Stable

CRISIL believes that MSH will maintain its credit risk profile over
the medium term, on the back of its established presence in the
retail textile industry, and the promoter's experience in the
retail trading segment. The outlook may be revised to 'Positive' if
MSH registers a significant increase in its revenues and
profitability, thereby improving its financial risk profile; or
receives a significant capital infusion from the promoters, thereby
enhancing its capital structure. Conversely, the outlook may be
revised to 'Negative', if MSH reports a substantial decline in its
revenues and profitability, or an increase in its working capital
cycle, or undertakes significant debt-funded capital expenditure
programmes or if its partners draw significant amount from the
business, thus weakening its financial risk profile.

MSH was set up as a partnership firm in Puducherry in 1960. The
firm trades in silk sarees, synthetic sarees, readymade garments,
and gents and kids wear. MSH operates a 9,000 square feet retail
outlet in Nehru Street, Puducherry. The firm's operations is
currently managed by Mr. P. Namassivayam.


PRAVARSHA AGRO: CRISIL Migrates B- Rating to Not Cooperating
------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Pravarsha Agro
Industries Private Limited (PAIPL) to 'CRISIL B-/Stable Issuer not
cooperating'.

                     Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Cash Credit           .5        CRISIL B-/Stable (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Long Term Loan        5.5       CRISIL B-/Stable (ISSUER NOT
                                   COOPERATING; Rating Migrated)

   Proposed Long Term    4.0       CRISIL B-/Stable (ISSUER NOT
   Bank Loan Facility              COOPERATING; Rating Migrated)

CRISIL has been consistently following up with PAIPL for obtaining
information through letters and emails dated
December 17, 2018 and January 31, 2019 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 PAIPL. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PAIPL 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 PAIPL to 'CRISIL B-/Stable Issuer not cooperating'.

PAIPL, incorporated in March 2012, is currently setting up a milk
processing unit in Medak district. The processing unit, once
operational, would have processing capacity of 10,000 litre of milk
per day. The principal product processed at the plant is milk.

SENGODAN POULTRY: CRISIL Assigns 'B+' Rating to INR7.25cr Loans
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Sengodan Poultry Farm (SPF).

                     Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Term Loan            3.6        CRISIL B+/Stable (Assigned)
   Cash Credit          3.0        CRISIL B+/Stable (Assigned)
   Proposed Long Term
   Bank Loan Facility   0.65       CRISIL B+/Stable (Assigned)

The rating reflects the modest scale of operations and exposure to
intense competition and risks inherent in the poultry industry.
These weaknesses are partially offset by the extensive experience
of SPF's proprietor.

Analytical Approach

Unsecured loan of INR1.19 crore (as on March 31, 2018) extended by
the proprietor has been treated as neither debt nor equity. That's
because these loans are low interest bearing, and are likely to
remain in the business over the medium term.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: Small scale of operations, with
revenue of INR12.36 crore in fiscal 2018, amid intense competition
limits pricing power with suppliers and customers, thereby
constraining profitability.

* Exposure to inherent risks in the poultry industry: The industry
is vulnerable to outbreak of diseases, which lowers sales volume
and reduces selling price. Further, the industry is affected by
seasonal demand, leading to volatility in end product prices.

Strength
* Experience of the proprietor: Benefits derived from the
proprietor's experience of near four decades and healthy relations
with customers and suppliers should continue to support the
business.

Liquidity
Liquidity is stretched marked by modest cash accrual and high bank
limit utilisation. Cash accrual, expected at INR35-65 lakh over the
medium term (Rs 19 lakh in fiscal 2018) should comfortably cover
debt obligation of INR15 lakh. The fund-based limit of INR3 crore
was utilised at 94% over the 6 months through January 2019.

Outlook: Stable

CRISIL believes SPF will continue to benefit from the extensive
experience of its proprietor. The outlook may be revised to
'Positive' if increase in revenue, cash accrual, or equity infusion
strengthens financial risk profile. The outlook may be revised to
'Negative' if decline in revenue and profitability, or any large,
debt-funded capital expenditure weakens financial risk profile,
especially liquidity.

Based out of Tiruchengode, set up in 1981, SPF, a proprietor firm
of Mr K Sengodan, is engaged in poultry and hatchery business.

SHIVA INTERNATIONAL: CRISIL Moves 'B' Rating to Not Cooperating
---------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Shiva
International (SI) to 'CRISIL B/Stable Issuer not cooperating'.

                    Amount
   Facilities     (INR Crore)     Ratings
   ----------     -----------     -------
   Cash Credit           5        CRISIL B/Stable (ISSUER NOT
                                  COOPERATING; Rating Migrated)

   Proposed Fund-        4        CRISIL B/Stable (ISSUER NOT
   Based Bank                     COOPERATING; Rating Migrated)
   Limits                

   Term Loan             2        CRISIL B/Stable (ISSUER NOT
                                  COOPERATING; Rating Migrated)

CRISIL has been consistently following up with SI for obtaining
information through letters and emails dated December 17, 2018 and
January 31, 2019 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 SI. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SI 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 SI to 'CRISIL B/Stable Issuer not cooperating'.

Set up by Mr Atul Tyagi in 2002, SI trades and exports garments for
women and kids. It is based in Noida, Uttar Pradesh, and exports to
the US and Europe.

SHREE GIRDHAR: CRISIL Migrates 'B' Rating to Not Cooperating
------------------------------------------------------------
CRISIL has migrated the rating on bank facilities of Shree Girdhar
Gopal Roller Flour Mills Private Limited (SGGRPL) to 'CRISIL
B/Stable Issuer not cooperating'.

                     Amount
   Facilities      (INR Crore)    Ratings
   ----------      -----------    -------
   Cash Credit           4        CRISIL B/Stable (ISSUER NOT
                                  COOPERATING; Rating Migrated)

   Proposed Long Term    1.56     CRISIL B/Stable (ISSUER NOT
   Bank Loan Facility             COOPERATING; Rating Migrated)

   Term Loan             2.44     CRISIL B/Stable (ISSUER NOT
                                  COOPERATING; Rating Migrated)

CRISIL has been consistently following up with SGGRPL for obtaining
information through letters and emails dated December 17, 2018 and
January 31, 2019 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 SGGRPL. Which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SGGRPL 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 SGGRPL to 'CRISIL B/Stable Issuer not cooperating'.

SGGRPL, established in 2010, by Mr Gaurav Agarwal, Mr Raj Kumar
Gupta and Mr Manish Gupta, manufactures wheat products such as
atta, maida, suji, choker and besan. The facility is located at
Hardoi (Uttar Pradesh).

SHREE SAIRAM: CRISIL Reaffirms B+ Rating on INR9.5cr Cash Loan
--------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term bank facility of
Shree Sairam Communications (India) Private Limited (SSCPL) at
'CRISIL B+/Stable'.

                    Amount
   Facilities     (INR Crore)    Ratings
   ----------     -----------    -------
   Cash Credit         9.5       CRISIL B+/Stable (Reaffirmed)

The rating continues to reflect modest scale of SSCPL's operations
in the intensely fragmented industry, and its below-average
financial risk profile. These rating weaknesses are partly offset
by the extensive industry experience of promoters and the company's
established relationship with its principal, Bharti Airtel
Limited.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations in intensely competitive trading
industry: SSCPL is engaged in distributorship of Airtel's products
to retailers across Chennai. With revenues of INR42.8 crore in
fiscal 2018, the scale remains modest in the highly competitive and
fragmented market marked by numerous players in the same business.

* Modest net worth and high external indebtedness: The financial
risk profile was below-average marked by small net worth of INR1.9
crore as on 31st March, 2018 and high total outstanding liabilities
to tangible net worth at 5.99 times as on same date. With modest
accretions to reserves, the net worth is expected to remain at
similar levels over the medium term.

Strength
* Promoters' extensive entrepreneurial experience: The promoters of
SSCPL have been in the business since 2007 and have over the years
developed healthy business relation with their principal, Bharti
Airtel Limited. The company also has an established customer base
of around 400 retailers in Chennai. CRISIL believes that the
company will benefit over the medium term from its promoters'
extensive entrepreneurial experience and resourcefulness.

Liquidity
Average Bank Limit Utilization (BLU) for the last 12 months ended
on December 2018 is modest at around 95%. NCA of INR 0.074 crore is
sufficient against no major repayment obligations. Debt protection
metrics is weak with NCATD at 1 % due to low accruals and interest
coverage of 1.17 times. USL of INR 1.74 crore supports liquidity
further.

Outlook: Stable

CRISIL believes that SSCPL will continue to benefit from the
promoters' extensive industry experience. The outlook may be
revised to 'Positive' if significant improvement in revenues and
profitability along with efficient working capital management
results in better cash accruals, and consequently to improved
liquidity. Conversely, the outlook may be revised to 'Negative' if
financial risk profile further weakens owing to decline in its cash
accruals or deterioration in its working capital management, or
significant withdrawals by the promoters.

Incorporated in 2014, Chennai-based SSCPL is an authorized
distributor of Airtel SIM cards, mobile handsets, recharge vouchers
and Airtel DTH products to 200 retailers in Chennai region. The
operations of the company managed by Mr S Ponkarthick and Mr Sushil
Lalwani.

STAR TRACE: CRISIL Lowers Rating on INR30cr Loans to D
------------------------------------------------------
CRISIL has downgraded its ratings on bank facilities of Star Trace
Private Limited (STPL) at 'CRISIL D/CRISIL D' from 'CRISIL
BB-/Stable/CRISIL A4+'.

                     Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Bank Guarantee        20        CRISIL D (Downgraded from
                                   'CRISIL A4+')

   Cash Credit           10        CRISIL D (Downgraded from
                                   'CRISIL BB-/Stable')

The rating reflects instances of delay by STPL in servicing its
term debt, owing to weak liquidity. The ratings continue to reflect
working capital intensive operations, and exposure to fluctuations
in raw material prices. These weaknesses are partially offset by
the extensive experience of STPL's promoter in the manufacture of
ore processing machinery and undertaking turnkey projects for
setting up copper tailings processing units.

Key Rating Drivers & Detailed Description

Weakness

* Working capital-intensive operations: Operations are working
capital intensive, as reflected in gross current assets of around
242 days as on March 31, 2018 driven by high inventory and debtor
levels, gross current assets are expected to remain high over the
medium term.  Working capital requirement is managed by stretching
creditors and utilisation of bank limit.

* Exposure to fluctuations in raw material prices: As raw material
(mild steel structures and metal sheets) costs account for a large
part of the total expenditure for companies operating in this
industry, vulnerability to fluctuations in input prices is high.
Further, the company is exposed to risks related to cyclicality in
its end-user industries.

Strengths
* Extensive experience of the promoter: Benefits from the
promoter's experience of near two decades and established
relationship with customers should support the business.

Liquidity
Bank limit utilization for the last 12 months ended on December
2018, was 93.5%. The Adhoc facility repayment was overdue the same
is due to intensive working capital requirements.

Incorporated in 1999, Chennai-based STPL is engaged in the
manufacture of metallic-ore separation equipment and setting up of
turnkey projects for separation of impurities from ores. Mr P
Maheswaran, the promoter, manages the operations.

TOMCO ENGINEERING: CRISIL Reaffirms B+ Rating on INR12cr Loan
-------------------------------------------------------------
CRISIL has reaffirmed its ratings on the bank loan facilities of
Tomco Engineering Private Limited (TEPL) at 'CRISIL
B+/Stable/CRISIL A4'.

                     Amount
   Facilities      (INR Crore)     Ratings
   ----------      -----------     -------
   Bank Guarantee         5        CRISIL A4 (Reaffirmed)
   Cash Credit           12        CRISIL B+/Stable (Reaffirmed)
   
The ratings continue to reflect the modest scale of operations in
the intensely competitive industry, large working capital
requirements and average financial risk profile. These rating
weaknesses are partially offset by extensive experience of promoter
in the civil construction industry with adequate order book
position.

Analytical Approach

Unsecured loans from promoters and family members of INR2 crore as
on March 31, 2018is treated as neither debt nor equity as they are
expected to remain in the business in near term.

Key Rating Drivers & Detailed Description

Weaknesses:

* Modest scale in the intensely competitive industry: Scale of
operations is modest reflected in revenue of INR 27.61 crore for
fiscal 2018, expected to be around INR 40 crores in fiscal 2019, on
account of intense competition in the industry and tender based
nature of business. Modest scale restricts ability to bid for large
tenders and scale up operations.

* Large working capital requirements: Operations are working
capital intensive as evident from its high gross current asset
(GCA) days of around 373 days as on March 31, 2018, because of high
work-in-progress inventory of 297 days. This leads to high
dependence on bank lines.

* Average financial risk profile: Capital structure is marked with
modest networth of INR9.50 crore, gearing of 2.13 times and total
outside liabilities to tangible networth (TOLTNW) of 2.5 times as
on March 31, 2018. Its debt protection metrics were average
reflected in its interest coverage and net cash accruals adjusted
total debt (NCATD) of 2.18 times and 0.09 time, respectively, in
fiscal 2018. The overall financial risk profile is expected to
remain at similar levels over the medium term.

Strength:
* Promoters' extensive industry experience and adequate order book:
Promoters' extensive experience in the civil construction business
for more than 5 decades and established track record of execution,
has helped to increase revenues and get repeat orders. It has
orders of INR 33 crores as on March 12, 2019 which provides
adequate revenue visibility.

Liquidity
TEPL has weak liquidity driven by expected cash accruals of INR 3-4
crore per annum in fiscal 2019 and fiscal 2020. The company does
not have any repayment obligations over the medium term. The bank
limits of INR7 crores have been highly utilized around 80% on
average over the 12 months ended February, 2019. The company has
cash and cash equivalents of INR2.10 crore as on March 31, 2018,
providing cushion to liquidity. The company also receives support
from promoters in the form of unsecured loans of INR2.75 crore as
on March 31, 2018. CRISIL expects internal accruals, cash & cash
equivalents and unutilized bank limits to be sufficient to meet its
incremental working capital requirements over the medium term.

Outlook: Stable

CRISIL believes that TEPL will continue to benefit over the medium
term from promoter's extensive experience in the civil construction
industry. The outlook may be revised to 'Positive' if significant
increase in revenues and profitability, leads to improvement in
financial risk profile. The outlook may be revised to 'Negative' if
financial risk profile, particularly liquidity, weakens because of
large working capital requirements or decline in cash accruals, or
large debt funded capital expenditure.

Established as a proprietorship firm in 1960 and later converted
into a private limited company in 1999, TEPL undertakes projects in
civil construction, primarily irrigation and water treatment
segment, in Kerala. TEPL is promoted by its Mr. Paul P Thomas and
his wife Mrs. P.V. Elizabeth, and his son Mr. P. Thomas.

U.P. ASBESTOS: Ind-Ra Assigns 'BB-' Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has assigned U.P. Asbestos
Limited (UPAL) a Long-Term Issuer Rating of 'IND BB-'. The Outlook
is Stable.

The instrument-wise rating actions are:

-- INR194.90 mil. Term loan due on August 2033 assigned with IND
     BB-/Stable rating;

-- INR180.00 mil. Proposed term loan* assigned with Provisional
     IND BB-/Stable rating;

-- INR390.00 mil. Fund-based working capital limits assigned with

     IND BB-/Stable rating; and

-- INR25.80 mil. Non-fund-based working capital limits assigned
     with IND A4+ rating.

* The rating is provisional and shall be confirmed upon the
sanction and execution of loan documents for the above facilities
by UPAL to the satisfaction of Ind-Ra.

KEY RATING DRIVERS

The ratings reflect UPAL's tight liquidity position owing to the
working capital-intensive nature of operations. The company had an
elongated net working capital cycle (FY18: 112 days, FY17: 137
days), mainly due to a long inventory holding period (57 days, 71
days). The company's average use of its fund-based working capital
limits was around 94.42% during the 12 months ended February 2019.
However, cash flow from operations improved to INR112.49 million in
FY18 (FY17: 54.89 million) due to the improvement in the working
capital cycle. Cash and cash equivalents stood at INR13.98 million
at FY18 (FY17: INR4.34 million).

The ratings also factor in the company's medium scale of operations
as indicated by revenue of INR1,528.34 million in FY18 (FY17:
INR1,449.84 million). The growth in revenue was primarily driven by
an increase in sales volume. In 11MFY19, the company achieved
revenue of INR1,519.80 million. The company's return on capital
employed was 6% in FY18 (FY17: 5%) and EBITDA margin was modest at
9.14% (8.95%). The improvement in the margin was on account of a
decline in raw material prices.

However, the ratings benefit from UPAL's comfortable credit metrics
with gross interest coverage (operating EBITDA/gross interest
expenses) of 2.04x in FY18 (FY17: 1.59x) and net leverage (adjusted
net debt/operating EBITDA) of 4.99x (5.86x). The credit metrics
improved due to a decline in the interest expenses, resulting from
lower utilization of working capital facilities during the year and
an improvement in absolute EBITDA.

The ratings are also supported by UPAL's promoter's experience of
more than three decades in the manufacturing and trading of
asbestos.

RATING SENSITIVITIES

Positive: An improvement in the liquidity position while
maintaining the credit metrics on a sustained basis will be
positive for the ratings.

Negative: Deterioration in the liquidity position of the company
will be negative for the ratings.

COMPANY PROFILE

Incorporated in 1973, Lucknow, Uttar Pradesh-based UPAL is engaged
in manufacturing of asbestos sheets and trading of steel sheets,
and electrical wires and paints. The company's manufacturing unit
has a production capacity of 1,44,000 metric tons per annum.

VEGA INFRASTRUCTURE: Ind-Ra Migrates B+ Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Vega
Infrastructure'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 the rating. The rating will now
appear as 'IND B+ (ISSUER NOT COOPERATING)' on the agency's
website.

The instrument-wise rating action is:

-- INR147.50 mil. Fund-based limits 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
April 17, 2018. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings.

COMPANY PROFILE

Formed in 2014, Vega Infrastructure is a proprietorship concern
that has a shopping mall, City Centre Mall, in Pathankot. The firm
provides space for a showroom, retail shops and offices on rent.



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

[*] JAPAN: Corporate Bankruptcies Hit 28-year Low in Fiscal 2018
----------------------------------------------------------------
The Japan Times reports that corporate bankruptcies across Japan
fell in fiscal 2018 to their lowest number since fiscal 1990, when
the country was in the final stage of the bubble economy era,
according to a private credit research firm.

The Japan Times, citing data released on April 8 by Tokyo Shoko
Research Ltd., discloses that bankruptcies dropped 3.0 percent from
2017 to 8,111, down for the 10th consecutive year.

The figure, covering business failures involving liabilities of
JPY10 million or more, mainly reflected a recovery in the economy
and the active financing stance of banking institutions, the Japan
Times relates.

Meanwhile, the number of bankruptcies triggered by labor shortages
stood at 400, rewriting the record high since that part of the
survey began in fiscal 2013, showing that small companies are
continuing to struggle with business succession and securing
workers, the Japan Times relates.

"Bankruptcies may rise gradually, as small businesses mired in
business slumps have tough business outlooks," Tokyo Shoko
Research, as cited by The Japan Times, said.

The Japan Times says total liabilities left by failed companies in
fiscal 2018 declined 47.4 percent to JPY1.6192 trillion.

According to the Japan Times, the sum of liabilities almost halved,
in a positive reaction after air bag maker Takata Corp.'s
bankruptcy, the largest postwar business failure in the Japanese
manufacturing sector, in fiscal 2017.

By industry, business failures increased noticeably in the services
sector, including elderly welfare and nursing care, and the
logistics sector, which suffers from serious manpower shortages,
adds the Japan Times.



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

MAINZEAL GROUP: Liquidators File Counterclaim for NZ$73 Million
---------------------------------------------------------------
Radio New Zealand reports that the liquidators of the failed
construction firm Mainzeal are fighting back against the directors
again, seeking double the initial payments ordered by the court.

According to RNZ, insolvency practitioner at the firm BDO, Andrew
Bethell, said he had filed a counterclaim, seeking about NZ$73
million from Mainzeal's directors, including the former prime
minister Dame Jenny Shipley.

Dame Jenny and three other former Mainzeal directors were found
liable for its insolvency in the High Court at Auckland earlier
this year, and were ordered to pay a collective NZ$36 million, RNZ
relates.

They appealed the judgement last month, the report notes.

RNZ says the liquidators' counterclaim, filed in the Court of
Appeal on April 9, said the High Court was wrong to find that the
directors breach of their duties did not qualify for the full
compensation of creditors, and that it did not add six years' worth
of interest to the payments ordered.

They decided on the NZ$73.3 million, because that was two thirds of
the NZ$110 million owed to creditors at the time Mainzeal collapsed
in 2013, the report states.

                      About Mainzeal Property

Mainzeal Property and Construction Ltd is a New Zealand-based
property and construction company.  The company forms part of the
Mainzeal Group, which is owned by Richina Inc, a privately held New
Zealand-based company with a strong China focus.

On Feb. 6, 2013, Colin McCloy and David Bridgman, partners from
PricewaterhouseCoopers, were appointed receivers to Mainzeal
Property and Construction Limited and associated entities as a
result of a request made by its director to BNZ.

Mainzeal's director, Richard Yan advised that following a series of
events that had adversely affected the Company's financial position
coupled with a general decline in major commercial construction
activity, and in the absence of further shareholder support, the
Company could no longer continue trading.

On Feb. 28, 2013, BDO's Andrew Bethell and Brian Mayo-Smith were
appointed liquidators to those three companies in receivership and
nine others in the group that were not in receivership.

The companies now under the control of the liquidators are Mainzeal
Group, Mainzeal Property and Construction, Mainzeal Living, 200
Vic, Building Futures Group Holding, Building Futures Group,
Mainzeal Residential, Mainzeal Construction, Mainzeal, Mainzeal
Construction SI, MPC NZ and RGRE.

Mainzeal is estimated to owe NZ$11.3 million to the BNZ, NZ$70
million to unsecured creditors and NZ$5.2 million to employees, NZN
disclosed. Subcontractors are among the unsecured creditors, said
NZN.



=============
V I E T N A M
=============

BANK FOR INVESTMENT: S&P Raises ICR to BB- on Sovereign Upgrade
---------------------------------------------------------------
S&P Global Ratings said that it had raised the long-term issuer
credit rating on the Joint Stock Commercial Bank for Investment and
Development of Vietnam (BIDV) to 'BB-' from 'B+'. The outlook is
stable. At the same time, S&P affirmed the 'B' short-term issuer
credit rating on the bank.

S&P said, "We upgraded BIDV to incorporate a higher degree of
government support for the bank since we raised the sovereign
credit rating on Vietnam (BB/Stable/B) on April 5, 2019.
Specifically, we are now incorporating a two-notch uplift for
extraordinary government support into the long-term rating,
reflecting BIDV's high systemic importance to the Vietnam banking
system."

BIDV is the largest bank by total assets in Vietnam with a dominant
market share of about 14% loans and 13% deposits. BIDV enjoys a
high degree of customer confidence due to its size, long operating
history, and government ownership.

S&P said, "Our view of the bank's stand-alone credit profile (SACP)
is unchanged. BIDV's 'b' SACP reflects the bank's strong franchise
and satisfactory profitability and asset quality relative to peers'
in Vietnam. The very weak capitalization tempers these strengths.
We believe BIDV's risk-adjusted capital (RAC) ratio is likely to
remain less than 2% over the next 12-18 months. Our RAC calculation
reflects the pressure on BIDV's capitalization stemming from the
bank's history of rapid loan growth, peaking at 34% in 2015, and
high dividend payout averaging 50%-60% of net income."

Management has recognized the need for capital conservation to
support BIDV's financial profile and meet more stringent Basel II
capital standards in 2020. Loan growth moderated to 14% in 2018,
and we expect the bank's dividend payout to gradually decline from
a high base.

S&P said, "The stable outlook on BIDV reflects our expectation that
the bank will maintain its strong franchise and satisfactory
profitability while pursuing capital-enhancement measures over the
next 12-18 months.

"We could downgrade BIDV if asset quality declines substantially
due to aggressive loan growth or deterioration in the operating
environment. This is unlikely under our base-case expectations of
about 13%-15% loan growth and forecast of robust economic growth of
6.6% in 2019.

"It is unlikely that we would raise the rating on BIDV in the
absence of a significant improvement in its financial profile,
including a material increase in capitalization that will most
likely be achieved via external capital infusion."


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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 2019.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
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