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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

          Thursday, July 18, 2019, Vol. 22, No. 143

                           Headlines



A U S T R A L I A

ALBATROSS BREWING: Second Creditors' Meeting Set for July 24
CUSTOM GRANNY: Second Creditors' Meeting Set for July 25
ELEVATE AUSTRALASIA: Second Creditors' Meeting Set for July 25
ENERGYLINK HOLDINGS: First Creditors' Meeting Set for July 25
LEO CANCER: Second Creditors' Meeting Set for July 23

MACKENZIE ARCHITECTS: Second Creditors' Meeting Set for July 23
VAGLIA PTY: Italian Restaurant Shuts Doors as Debts Pile Up


B A N G L A D E S H

PEOPLE'S LEASING: Bangladesh Bank Files Petition to Wind Up Firm
PEOPLE'S LEASING: Central Bank Freezes Accounts After Liquidation


C H I N A

CHINA HONGQIAO: Moody's Rates New USD Sr. Unsec. Notes 'B2'
CIFI HOLDINGS: Fitch Gives BB(EXP) Rating to New Yuan Sr. Notes
CIFI HOLDINGS: S&P Rates New CNY Senior Unsecured Notes 'BB-'
DEXIN CHINA: Moody's Assigns B2 CFR, Outlook Stable
DEXIN CHINA: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable

FANTASIA HOLDINGS: Moody's Rates New USD Sr. Unsec. Notes 'B3'
FUTURE LAND: Moody's Reviews Ba2 CFR on Possible Downgrade
JINGGONG GROUP: Defaults on CNY1 Billion Short Term Debt
KAISA GROUP: Fitch Assigns B(EXP) Rating to New USD Sr. Notes
SHANDONG HI-TECH: Fitch Withdraws BB- Issuer Default Ratings



I N D I A

AMRIT AGRO: CRISIL Maintains B Ratings in Not Cooperating
ARCHANA EQUIPMENTS: CRISIL Assigns B Rating to INR2.4cr Loan
D. VANSH: CRISIL Assigns 'B' Rating to INR17cr Cash Loan
GREENFIELD AGRO: CRISIL Assigns 'B+' Ratings to INR5.3cr Loans
J.R.P. EXPORTS: CRISIL Lowers Rating on INR2cr Loan to B+

M A FRUITS: CRISIL Lowers Rating on INR6cr Cash Loan to B+
MEENAKSHI ASSOCIATES: CRISIL Lowers Rating on INR10cr Loan to D
MRB PATIALA: CRISIL Assigns B+ Rating to INR30cr Term Loan
PANKAJ TRADERS: CRISIL Assigns B+ Ratings to INR10.2cr Loans
PAREKH AGENCIES: CRISIL Maintains B+ Rating in Not Cooperating

PK GLOBAL: CRISIL Lowers Rating on INR6cr Loan to 'D'
RAJYALAKSHMI RAW: CRISIL Assigns B+ Rating to INR5cr Cash Loan
RELIANCE COMMUNICATIONS: Mukesh Ambani Likely to Make Bid
RPG INDUSTRIAL: CRISIL Lowers Rating on INR15cr Cash Loan to B+
SATYAM (FAB) INDUSTRIES: CRISIL Cuts Rating on INR7.7cr Loan to B+

SENDOZ IMPEX: CRISIL Lowers Rating on INR22cr Cash Loan to B+
SHAROFF STEEL: CRISIL Lowers Rating on INR19cr Cash Loan to B+
SHREE HAREKRISHNA: CRISIL Maintains B+ Ratings in Not Cooperating
SHRIKISHAN AND COMPANY: CRISIL Cuts Rating on INR3cr Loan to B+
SUSHIL BAHIRAT: CRISIL Lowers Ratings on INR35cr Loans to B+

SUZLON ENERGY: Misses Dollar Bond Payment Due July 16
T YADAMMA: CRISIL Assigns B+ Rating to INR4.22cr LT Loan


I N D O N E S I A

AGUNG PODOMORO: Moody's Reviews B2 CFR for Downgrade Due to Debt


J A P A N

[*] Japan Corporate Bankruptcies Fell to 29-year Low in 1H 2019


N E W   Z E A L A N D

CRYPTOPIA LTD: Co-Founder Blames Ex-Shareholder for Problems


S I N G A P O R E

AVATION PLC: Fitch Affirms BB- LongTerm IDR, Outlook Stable
HYFLUX LTD: Says SGD535-Mil. Rescue Deal is Utico's Valuation

                           - - - - -


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

ALBATROSS BREWING: Second Creditors' Meeting Set for July 24
------------------------------------------------------------
A second meeting of creditors in the proceedings of Albatross
Brewing Pty Ltd has been set for July 24, 2019, at 11:00 a.m. at 39
De Havilland Road, in Mordialloc, 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 July 23, 2019, at 4:00 p.m.

Philip Raymond Hosking of Helm Advisory was appointed as
administrator of Albatross Brewing on June 18, 2019.


CUSTOM GRANNY: Second Creditors' Meeting Set for July 25
--------------------------------------------------------
A second meeting of creditors in the proceedings of Custom Granny
Flats & Studios Pty Ltd has been set for July 25, 2019, at 11:00
a.m. at the offices of Setter Shepard, Level 5, at 2 Barrack
Street, in Sydney, NSW.

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 July 24, 2019, at 4:00 p.m.

Adam Shepard of Setter Shepard was appointed as administrator of
Custom Granny on June 26, 2019.


ELEVATE AUSTRALASIA: Second Creditors' Meeting Set for July 25
--------------------------------------------------------------
A second meeting of creditors in the proceedings of Elevate
Australasia Pty Ltd has been set for July 25, 2019, at 11:00 a.m.
at the offices of SV Partners Sydney, Level 7, at 151 Castlereagh
Street, in Sydney, NSW.

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 July 24, 2019, at 4:00 p.m.

Ian Purchas of SV Partners was appointed as administrator of
Elevate Australasia on
June 20, 2019.


ENERGYLINK HOLDINGS: First Creditors' Meeting Set for July 25
-------------------------------------------------------------
A first meeting of the creditors in the proceedings of Energylink
Holdings Pty Ltd and Energylink Global Pty Ltd will be held on July
25, 2019, at 11:00 a.m. at the offices of Cor Cordis, One Wharf
Lane, Level 20, at 171 Sussex Street, in Sydney, NSW.  

Andre Lakomy and Alan Walker of Cor Cordis were appointed as
administrators of Energylink Holdings on July 15, 2019.


LEO CANCER: Second Creditors' Meeting Set for July 23
-----------------------------------------------------
A second meeting of creditors in the proceedings of Leo Cancer Care
Pty Ltd has been set for July 23, 2019, at 11:00 a.m. at the
offices of Grant Thornton Australia Limited, Level 17, at 383 Kent
Street, in Sydney, NSW.

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 July 22, 2019, at 4:00 p.m.

Philip Campbell Wilson and John McInerney of Grant Thornton
Australia were appointed as administrators of Leo Cancer on June
21, 2019.


MACKENZIE ARCHITECTS: Second Creditors' Meeting Set for July 23
---------------------------------------------------------------
A second meeting of creditors in the proceedings of Mackenzie
Architects International Pty Ltd T/As BASII B has been set for July
23, 2019, at 11:30 a.m. at Level 27, at 259 George Street, in
Sydney, NSW.

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 July 22, 2019, at 4:00 p.m.

Sule Arnautovic and Trent Andrew Devine of Jirsch Sutherland were
appointed as administrators of Mackenzie Architects on June 18,
2019.


VAGLIA PTY: Italian Restaurant Shuts Doors as Debts Pile Up
-----------------------------------------------------------
Scott Sawyer at Sunshine Coast Daily reports that Vaglia Pty Ltd,
an authentic Italian restaurant in the heart of Noosa, has closed
its doors after succumbing to mounting debts.

Vaglia Pty Ltd, which traded as Noosa Deli, on Sunshine Beach Rd in
Noosa Heads, went into liquidation on July 9, after company members
appointed liquidator Jarvis Archer of Revive Financial to wind the
company up, the Daily discloses.

The deli opened to some fanfare in December 2017, after the company
had been registered in July 2017.

Director Michelangelo Cecconi, a native of Florence, Italy, had
spoken of the challenges in establishing the business when it
opened.

It was the fourth venue he'd opened, after opening and running
businesses in Sydney for 14 years before his venture began in
Noosa.

European staff featured heavily in his recruitment for the
classic-style deli and restaurant, which made its own bread and
used 80 per cent local ingredients.

Liquidator Jarvis Archer told the Daily the business had closed,
with less than AUD50,000 of unrelated creditor debts, and
related-party loans used to support the business in excess of
AUD100,000.

According to the report, Mr. Archer said about AUD50,000 unrelated
debts included money owed to suppliers, tax office debt and a
"small amount of super (superannuation)".

The Daily relates that Mr. Archer said he "didn't expect to see
much money out of it" and expected the liquidation would be
finished in 3 to 6 months.

The Daily attempted to contact Noosa Deli operators but the
operators had been unable to return calls to-date.




===================
B A N G L A D E S H
===================

PEOPLE'S LEASING: Bangladesh Bank Files Petition to Wind Up Firm
----------------------------------------------------------------
Mehedi Hassan at Dhaka Tribune reports that Bangladesh Bank on July
14 filed a petition with the High Court seeking liquidation of
People's Leasing and Financial Services (PLFS) as the
organization's financial health deteriorated badly in recent times
because of loan irregularities.

Dhaka Tribune relates that the High Court accepted the petition and
passed an order to freeze all bank accounts of former directors of
PLFS who were appointed before 2015.

An HC bench of Justice Muhammad Khurshid Alam Sarkar passed the
order after hearing a petition filed by the central bank seeking
liquidation as per the Financial Institutions Act 1993.

Barrister Tanjib-Ul-Alom along with Kazi Ershadul Alam stood for
the petition, Dhaka Tribune discloses.

Earlier, on June 27 this year, the finance ministry instructed the
central bank to close the ailing non-bank financial institution
(NBFI) for its failure to improve its conditions, the report
recalls.

"If the liquidation goes through, this will be the first
liquidation of a financial institution in Bangladesh," the report
quotes a senior central bank official as saying.

BB officials said that the NBFI failed to repay the depositors'
money despite maturity of the funds.

According to Dhaka Tribune, the official said the NBFI's problems
came to light in 2013-2014, when some of its directors made off
with more than BDT1,000 crore by way of submitting fake documents.

In 2015, the central bank had removed five directors - Khabir Uddin
Miah, Motiur Rahman, Arafin Shamsul Alamin, Humaira Alamin and
Nargis Alamin - for their involvement in the financial scandal, the
report notes.

Dhaka Tribune says following the liquidation move, individual and
institutional depositors are rushing to the PLFS headquarters at
Motijheel every day to get back the money they kept with the
financial institution.

On July 10, in a press briefing, Bangladesh Bank (BB) assured that
the depositors would get back their money as assets of the company
was still bigger than its liabilities.

At the end of September 2018, the total amount of deposits of PLFS
stood at BDT2,086 crore but they do not have any cash to run daily
activities, the report notes.

The total amount of outstanding loans stood at BDT1,131 crore.
Their defaulted loans stood at BDT748 crore, which was 66.14% of
the total loans, Dhaka Tribune discloses, citing Bangladesh Bank
data.

Due to the big losses, the listed PLFS failed to announce any
dividend since 2014.

Of the total shares, 67.48% are held by general shareholders,
23.11% shares by sponsors and directors, 8.77% shares by
institutional investors, and 1.19% shares by foreign investors.


PEOPLE'S LEASING: Central Bank Freezes Accounts After Liquidation
-----------------------------------------------------------------
Mehedi Hassan at Dhaka Tribune reports that Bangladesh Bank (BB) on
July 15 froze all bank accounts of People's Leasing and Financial
Services (PLFS), as the central bank started the liquidation
process of the ailing non-bank financial institution (NBFI).

According to Dhaka Tribune, Bangladesh Financial Intelligence Unit
(BIFU) on the day instructed all the banks and non-banking
financial institutions not to do any transaction with People's
Leasing.

Besides, the BFIU also instructed banks and non-bank financial
institutions to block fund withdrawal from accounts of eight former
directors of People's Leasing and three other top former
executives, said Bangladesh Bank Deputy General Manager Md
Asaduzzaman Khan, Dhaka Tribune relates.

The eight former directors are M Moazzam Hossain, Nargis Alamin,
Humaira Alamin, Arafin Shamsul Alamin, Mohammad Yusuf Ismail,
Motiur Rahman, Biswajit Kumar Roy and Khobiruddin Mia, and former
top executives Kobir Mustaq Ahmed, Nripendra Chandra Pandit and
Mohammad Shohidul Haque. M Moazzam Hossain was also chairman of
PLFS, Dhaka Tribune discloses.

Earlier on July 14, Md Asaduzzaman Khan, deputy general manager of
the BB's financial institutions department, was appointed as the
liquidator as per a High Court order.

Talking to Dhaka Tribune, Md Asaduzzaman Khan said: "All accounts
of People's Leasing have already been frozen by the central bank.
Now we are set to form a body to liquidate PLFS. We will then take
the company under our control."

"People's Leasing would send us a report about their current
financial status within the next 21 days as per law. We will verify
the report and audit the company if needed," he added.

"The central bank has started to liquidate PLFS considering its
fragile financial state. Even concern grows over depositors'
protection. In the process, we will firstly try to return the money
to the general depositors," said Bangladesh Bank Executive Director
Md Shah Alam.

According to the report, sources in People's Leasing said the
company operates its regular accounts with Dutch-Bangla Bank, Bank
Asia, Prime Bank and One Bank.

PLFS's total deposits stands at BDT2,036 crore. Of the amount,
BDT850 crore were deposited by 15 banks and non-bank financial
institutions, BDT500 crore by some private organizations and the
rest by general depositors, according to the source.

International Leasing and Financial Services (ILFS), another NBFI,
alone had BDT227crore in PLFS. ILFS may be in serious trouble if it
has to write off the sum, the report notes.

On July 14 this year, the High Court gave the go-ahead to the
central bank to appoint a liquidator for People's Leasing and
Financial Services (PLFS), Dhaka Tribune adds.




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

CHINA HONGQIAO: Moody's Rates New USD Sr. Unsec. Notes 'B2'
-----------------------------------------------------------
Moody's has assigned a B2 senior unsecured rating to the proposed
USD notes to be issued by China Hongqiao Group Limited (B1
positive). The outlook is positive.

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

The proceeds from the proposed issuance will be used for
refinancing purposes.

RATINGS RATIONALE

"The proposed issuance will not impact Hongqiao's B1 corporate
family rating or positive outlook, as most of the proceeds will be
used to refinance existing debt while the issuance will also
improve its debt maturity profile," says Roy Zhang, a Moody's
Assistant Vice President and Analyst, and also Moody's Lead Analyst
for Hongqiao.

The company successfully managed through a major capacity cut
implemented by the Chinese government in 2017. Hongqiao's capital
expenditure needs have since declined significantly, as the supply
side reform has made it difficult for Hongqiao and its industry
peers to add new capacity.

The company's integrated business model and equity placement have
also helped mitigate the impact of the capacity cut.

As a result, the company has been free cash flow positive since
2017, and has recorded steady annual EBITDA generation. As such,
Moody's expects Hongqiao's leverage will range between 3.5x and
4.0x in the next 12-18 months, which is a solid level for its
current rating.

Hongqiao's liquidity is strong. Its cash to short-term debt ratio
stood at 163% at the end of December 2018.

In the first half of 2019, Hongqiao also repaid several onshore and
offshore notes using internal resources, thus supporting its debt
reduction and deleveraging efforts.

Hongqiao's B1 corporate family rating reflects the company's
leadership position in aluminum production in China (A1 stable),
its vertically integrated business model, its long operating
history, and its advanced production facilities with low cost
advantage.

On the other hand, the rating is constrained by the regulatory
risks and cyclicality associated with China's aluminum industry,
resulting in volatile credit metrics.

The positive outlook reflects Hongqiao's increased capacity to
reduce debt, supported by positive free cash flow generation and
improving liquidity.

The rating also takes into account the following environmental,
social and governance (ESG) considerations.

Firstly, in terms of environmental and social considerations, the
company's bauxite mining, power generation, alumina refinery and
aluminium smelting operations are exposed to high environmental and
safety risks. However, these risks are somewhat mitigated by its
operational track record and continuous investment in and
improvement of related processes and facilities to meet higher
standards.

Secondly, on the governance front, the company has a track record
of changing of auditors, while its ownership is concentrated in its
key shareholder, Mr. Zhang Shiping and his family, who together
held a total 70% stake in the company at the end of 2018. These
risks are partially mitigated by the higher board oversight
exercised through the recent addition of strategic minority
shareholder CITIC Group Corporation (A3 stable) and three
independent board directors. The Capital Group Companies Inc. also
acquired a 6.27% stake in January 2018.

The B2 senior unsecured bond rating is one notch lower than it
would otherwise be due to structural subordination risk. This risk
reflects the fact that the majority of Hongqiao's claims are at its
operating subsidiaries and have priority over its senior unsecured
claims at the holding company in a bankruptcy scenario.

Upward rating pressure could emerge if the company (1) maintains
sound corporate governance standards as it changes auditors, as
well as operational stability after its capacity cut; (2) reduces
its total debt and adjusted debt/EBITDA to below 3.5x-4.0x on a
sustained basis; and (3) maintains its cash to short-term debt
ratio above 1.2x.

On the other hand, the rating outlook could return to stable if:
(1) its operations weaken as a result of an industry downturn or
adverse regulatory changes; (2) it fails to adhere to prudent
financial management and sound corporate governance standards; (3)
its cost competitiveness and market position deteriorate; (4) there
is a material weakening in its credit metrics, with adjusted
debt/EBITDA rising above 4.5x; or (5) its liquidity profile
deteriorates.

The principal methodology used in this rating was Steel Industry
published in September 2017.

Founded in 1994 and headquartered in Zouping, Shandong Province,
China Hongqiao Group Limited is the largest aluminum manufacturer
in China and globally by production volume. The company listed on
the Hong Kong Stock Exchange in March 2011.

At the end of 2018, China Hongqiao Group Limited was 70.04% owned
by Chairman Mr. Zhang Shiping and 10.11% owned by CITIC Group
Corporation. The company posted revenue of RMB90 billion in 2018.


CIFI HOLDINGS: Fitch Gives BB(EXP) Rating to New Yuan Sr. Notes
---------------------------------------------------------------
Fitch Ratings has assigned China-based property developer CIFI
Holdings Co. Ltd.'s (BB/Stable) proposed yuan offshore senior notes
an expected rating of 'BB(EXP)'.

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

KEY RATING DRIVERS

Higher Leverage, Land Replenishment Pressure: CIFI's leverage
increased in 2018 mainly due to continued high cash outflow for
land acquisitions to support its expansion. CIFI spent 68% of total
cash receipts from sales proceeds and its non-development property
(DP) segment, or CNY46 billion, on land acquisitions in 2018,
compared with 85% in 2017.

CIFI had an attributable land bank of 20.7 million sq m at
end-2018, and Fitch estimates that the available-for-sale portion
is around 17.8 million sq m, equivalent to less than three years of
sales, given CIFI's aim to increase sales by 25% in 2019.
Management budgeted around 55% of total cash receipts, or CNY52
billion, for land acquisitions in 2019. However, Fitch thinks that
a company of CIFI's size would usually have land bank enough for
three years of sales to be resilient in business cycles. Hence,
Fitch expects CIFI's land acquisitions to exceed management's
budget in 2019 and its leverage to remain above 45% in 2019-2020.

Strong Sales: CIFI's total sales in 2018 rose by 46% to CNY152
billion, in line with its expectations, with the average selling
price (ASP) falling by 4% to CNY15,900/sq m mainly due to more
contracted sales from third-tier Chinese cities. CIFI's
attributable sales accounted for 50% of the total sales and rose by
about 40% to CNY76 billion in 2018, according to management. CIFI
aims to achieve 55% and 60% increase in attributable sales in the
next two years, respectively, to raise profit attributable to
shareholders. Fitch believes CIFI is able to achieve its target of
CNY190 billion in total sales, a 25% increase yoy, with CNY350
billion of saleable resources in 2019.

Geographical Diversification, Regional Advantage: CIFI's resources
are diversified across different city tiers and cover most of
China's key cities, giving it greater operational flexibility in
managing its sales pace to achieve its sales target. CIFI has a
historical advantage in the Yangtze River Delta, with more than 40%
of its land bank in the region in 2015-2018. However, CIFI has
reduced its reliance on the region, which accounted for 48% of
total sales in 2018, compared with above 60% in 2015-2017.

CIFI has also significantly increased its presence in Tier 3
cities, and they made up 22% of total sales in 2018 compared with
3% in 2017. These resulted in a 25% drop in average attributable
new land cost to CNY5,800/sq m in 2018. Management said CIFI will
continue to focus on second- and third-tier cities for residential
projects as they have looser policies and larger land supply, and
will target commercial projects in Tier 1 cities.

Margin to be Maintained: CIFI's EBITDA margin after adding back
capitalised interest fell to 21.6% in 2018 from 26.2% in 2017. The
EBITDA margin would have been higher at 31% in 2018 and 29% in 2017
if adjusted for acquisition revaluations, according to the company.
The acquisition revaluations are likely to continue as CIFI has a
significant number of joint ventures (JV) and associates, which
will make margins appear more volatile. Nevertheless, Fitch
believes CIFI's diversified project portfolio across cities of
different tiers allows it to maintain its fast-churn strategy
without sacrificing overall project margins.

Non-DP Segment Supports Interest Cover: CIFI's CNY3.3 billion
non-DP revenue in 2018 comprised around CNY2 billion from JV
project-management fees and CNY237 million of rental revenue from
investment properties, with the rest from construction services.
Fitch believes CIFI's large JV operations and reputable property
products have created a stable fee income stream, although the fees
are not strictly recurring as most are project-based. CIFI's non-DP
EBITDA interest coverage was around 0.35x in 2017-2018 and Fitch
expects the ratio to reach 0.4x in 2020 as CIFI plans to increase
its investment-property operations to generate rental and continue
to expand its sales through JVs.

DERIVATION SUMMARY

CIFI's attributable sales reached CNY76 billion in 2018, similar to
Sino-Ocean Group Holding Limited's (BBB-/Stable, Standalone Credit
Profile: bb+) CNY68 billion, but are higher than the CNY40
billion-50 billion for most peers rated 'BB-' such as KWG Group
Holdings Limited (BB-/Stable), Times China Holdings Limited
(BB-/Stable) and Yuzhou Properties Company Limited (BB-/Stable).

Sino-Ocean has continued its geographic focus on Tier 1 and
affluent Tier 2 cities, while CIFI has increased its focus on Tier
2 and 3 cities. CIFI's leverage of around 48% at end-2018 is higher
than Sino-Ocean's 40%. Sino-Ocean's recurring EBITDA interest
coverage from quality investment properties was at 0.4x, while CIFI
had non-recurring non-DP EBITDA interest coverage of 0.35x at
end-2018.

CIFI's leverage is higher than that of KWG, Times China and Yuzhou,
but CIFI has a stronger business profile with better geographical
diversification and a nationwide presence. CIFI also generates
sizeable non-DP income to provide additional support to service
interest while the others have minimal non-DP income.

KEY ASSUMPTIONS

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

  - Attributable contracted sales of CNY100 billion in 2019, and
CNY120 billion in 2020.

  - Attributable land purchases and construction cash costs at
around 60% and 25% of contracted sales proceeds, respectively, in
2019-2020

  - Property-development gross profit margin (excluding capitalised
interest and remeasurement gain) at 30%-35% in 2019-2020.

  - Non-property development revenue to increase to CNY4.8 billion
in 2019 and CNY6 billion in 2020.

RATING SENSITIVITIES

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

  - Leverage, measured by net debt/adjusted inventory, including
proportionate consolidation of JVs, sustained below 40%

  - Maintaining high cash flow turnover despite the JV business
model and consolidated contracted sales/debt at over 1.2x (2018:
1.0x)

  - Land bank sufficient for three years of sales

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

  - Substantial decrease in contracted sales

  - Net debt/adjusted inventory including proportionate
consolidation of JVs sustained above 50%

  - EBITDA margin, not adjusting for the effect of acquisition
revaluation, sustained below 25%

  - Non-property development EBITDA/cash interest paid sustained
below 0.3x.


CIFI HOLDINGS: S&P Rates New CNY Senior Unsecured Notes 'BB-'
-------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' long-term issue rating to the
Chinese-renminbi-denominated offshore senior unsecured notes ("dim
sum" bonds) that CIFI Holdings (Group) Co. Ltd. (BB/Stable/--)
proposes to issue. The China-based property developer intends to
use the proceeds for refinancing existing debt. The issue rating is
subject to our review of the final issuance documentation.

S&P said, "We rate the notes one notch below our 'BB' issuer credit
rating on CIFI to reflect subordination risks. As of Dec. 31, 2018,
CIFI had about Chinese renminbi (RMB) 32 billion in secured
borrowings and RMB20 billion in unsecured debt at the subsidiary
level, which together account for about 57% of total debt
(including guarantees to joint ventures). These amounts are
considered priority debt and the total priority debt ratio is above
our notching-down threshold of 50%.

"Our stable outlook on CIFI reflects our expectation that the
company will continue to increase its sales while maintaining
leverage. CIFI's contracted sales in the first half of 2019 was
RMB88.44 billion, representing a 34% year-over-year increase as
well as 47% of our estimated annual sales forecast. Its see-through
debt-to-EBITDA ratio (after proportionally consolidating joint
ventures) will remain controllable, staying within a range of
5.0x-5.5x."


DEXIN CHINA: Moody's Assigns B2 CFR, Outlook Stable
---------------------------------------------------
Moody's Investors Service has assigned a first-time B2 corporate
family rating to Dexin China Holdings Company Limited.

The rating outlook is stable.

RATINGS RATIONALE

"Dexin's B2 CFR reflects the company's long track record of
developing properties in Zhejiang Province, quality land bank, and
adequate liquidity, driven by its strong cash collection from
contracted sales," says Josephine Ho, a Moody's Vice President and
Senior Analyst.

Dexin, a Zhejiang-based property developer, has over 20 years of
property development experience in the province, and has
established its brand and track record there. It has also gradually
expanded into other regions over the last decade.

The quality of Dexin's land bank in Zhejiang Province is good, with
a meaningful portion of the land bank located in tier 2 or strong
tier 3 cities. These cities generally have better economic
fundamentals and infrastructure, which will support housing demand
and thereby sales growth for the company.

Dexin, together with its joint ventures and associates, achieved
strong sales growth of 38% in 2018 and 78% in 2017, and strong cash
collection levels over the same period, demonstrating its good
sales execution.

The company's liquidity is adequate. Its cash balance of RMB7.5
billion at the end of 2018 was almost at the same level as its
short-term debt of RMB7.7 billion. Moody's expects that the
company's cash holdings, along with its contracted sales proceeds
after deducting basic operating cash flow items, will be sufficient
to cover its short-term debt, committed land premiums and dividend
payments over the next 12 months.

"The B2 CFR also considers Dexin's developing operating scale,
narrow funding channels, mildly deteriorating credit metrics, and
high exposure to joint venture businesses; with the last factor
lowering the transparency of its credit metrics," adds Ho, who is
also Moody's Lead Analyst for Dexin.

Dexin's operating scale is still developing. Although the company
achieved strong sales growth over the past few years, its scale is
moderate compared to many of its rated Chinese property peers. For
example, its reported gross contracted sales of RMB39.6 billion,
consolidated contracted sales of RMB17.0 billion, revenues of
around RMB8.3 billion, and total assets of around RMB49.6 billion
in 2018, point to a scale of operations comparable to mid B-rated
Chinese property peers.

In addition, Dexin's funding channels are limited to bank loans and
non-bank financing, including trust loans and related-party
borrowings. Non-bank financing is generally associated with shorter
tenors and subject to higher refinancing risks than bank loans, due
to regulatory and market uncertainties. The company has a high
exposure to non-bank financing, which accounted for 69% of Dexin's
total reported debt at the end of 2018. Dexin plans to reduce such
exposure by increasing its bank loans and issuing corporate bonds.

Moody's expects that the company's debt leverage, as measured by
revenues/adjusted debt, will weaken to 48%-50% over the next 12-18
months from 54% at the end of 2018, and adjusted EBIT/interest
coverage will likely decline to 2.2x over the next 12-18 months
from 2.9x in 2018.

The mildly deteriorating credit metrics reflect Moody's
expectations that Dexin's growth will be partly funded by debt
financing. In particular, Moody's expects that Dexin will spend
60%-70% of its cash collected from contracted sales to acquire land
over the next 12-18 months to support its business expansion, which
is high when compared with the industry average.

Dexin has been expanding its development business through joint
ventures (JVs) over the past three years to support its business
expansion. The significant sales contribution from JVs could lead
to lower corporate transparency because these JVs' financial
information is not consolidated in Dexin's financials or publicly
disclosed.

Moody's has taken into account — in assessing Dexin's CFR — the
risk of concentrated ownership by Dexin's key shareholder, Mr. Hu
Yiping, who held a total 73% stake in the company at March 31,
2019. Such a risk is partly mitigated by the presence of three
independent non-executive directors out of a total seven, with the
audit and remuneration committees chaired by the independent
non-executive directors, and the presence of other internal
governance structures and standards, as required under the
Corporate Governance Code for companies listed on the Hong Kong
Stock Exchange.

The stable rating outlook reflects Moody's expectation that Dexin
will maintain adequate liquidity and grow its scale as planned.

Moody's could upgrade Dexin's rating if the company: (1) executes
its business plans and grows its operating scale; (2) strengthens
its financial profile, with revenue/adjusted debt exceeding 70% and
EBIT/interest above 2.5x-3.0x; (3) maintains adequate liquidity,
with cash/ short-term debt consistently above 1.5x, and (4)
diversifies its funding channels.

On the other hand, Moody's could downgrade the rating if (1)
Dexin's contracted sales weaken; or (2) the company accelerates
land acquisitions beyond Moody's expectations, thereby weakening
its financial metrics and liquidity.

Financial metrics indicative of a rating downgrade include: (1)
EBIT/interest below 1.5x; or (2) revenue/adjusted debt below
50%-55%; or (3) a weaker liquidity position or higher refinancing
risk, such that cash/short-term debt falls below 1.0x on a
sustained basis.

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

Dexin China Holdings Company Limited is a Zhejiang-based
residential property developer. At December 31, 2018, its land
reserves totaled 6.8 million square meters in gross floor area. Its
key operating cities include Wenzhou, Hangzhou, Nanjing and Ningbo.
At March 31, 2019, Dexin was 73% owned by its founder and chairman,
Mr. Hu Yiping.

The company listed on the Hong Kong Stock Exchange in February 2019
and raised net proceeds of HKD1.6 billion.


DEXIN CHINA: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
On July 15, 2019, S&P Global Ratings assigned its 'B' long-term
issuer credit rating to China-based property developer Dexin China
Holdings Co. Ltd.

The rating on Dexin reflects the company's small operating scale in
terms of attributable contracted sales among rated peers, and sales
concentration around the Yangtze River Delta (YRD). The rating also
reflects Dexin's weaker debt capital structure given a heavy
reliance on high-cost nonbank financing. The company's reliance on
joint-venture (JV) projects for land acquisitions helps diversify
risks and shares investment burden on the one hand, but leads to
lower financial transparency on the other. Dexin's satisfactory
cash collection track record, and our expectation of a disciplined
pace of land replenishment leading to deleveraging in 2020 temper
these risks.

S&P believes Dexin's geographic concentration will only marginally
improve due to a continued focus on Zhejiang province and YRD,
subjecting it to more vulnerability to regional policies. While the
company's market share in its home city of Hangzhou is fair, its
market share in cities elsewhere is small. As at end-2018, 85% of
Dexin's land bank was located in Zhejiang. In terms of contracted
sales in 2018, close to 60% was generated from three cities:
Hangzhou, Wenzhou, and Huzhou. Together, these cities accounted for
53% of Dexin's land bank as of end-2018. Dexin has entered into
cities outside YRD such as Chengdu and Guangzhou in 2019, but this
could expose it to increased competition and execution risks in
S&P's view.

Dexin primarily acquires land parcels through public tender and
auctions, which generally results in higher land costs. As of
end-2018, the company's ratio of land costs to average selling
price was about 30%-40%, which is considered high compared with
similarly rated peers'. Hence, to lessen its investment burden for
expansion, Dexin has been involved in JV projects. In 2018,
non-consolidated JV projects contributed to more than 50% of its
contracted sales. While S&P uses a "see-through" assessment to
proportionately consolidate off-balance sheet figures, operations
and capital structures at the JV level are difficult to monitor and
authenticate. As at end-2018, Dexin had 107 projects located in 16
cities, of which, 38 were non-controlled JV projects.

S&P anticipates Dexin's satisfactory cash collection and relatively
disciplined land replenishment will continue over the next 12-24
months. The average ratio of cash collection to contracted sales
was above 85% during 2016-2018, which it aims to maintain. Dexin
has a sufficient land bank of 6.8 million square meters (sqm) as of
end-2018, which we estimate to have a three-year lifespan when
dividing by its total gross floor area sold of 2.3 million sqm in
2018. This should provide Dexin with some financial flexibility.
S&P expects the company to spend about 65% of cash proceeds from
contracted sales for land in the next two years, though it should
be able to slow the pace if needed.

Dexin's leverage should remain high over the next 12 months.
However, the debt-to-EBITDA ratio should gradually improve to
5.5x-6.0x in 2020 and 6.0x-6.5x in 2021, from 6.5x-7.0x in 2019.
The improved leverage is driven by continued revenue growth with
stable gross margins of 27%-29%, and stable selling, general, and
administrative (SG&A) expenses to revenue ratio of about 9%. This
is due to the cost management the company has shown while expanding
its scale. S&P said, "Also, we believe Dexin can control its gross
debt growth over the next 12-24 months. Although China's land
market has been heating up since March 2019, we think Dexin can
afford not to chase after high-cost land due to its sufficient land
bank. In our view, Dexin's total saleable resources of RMB103
billion as of the end of the first quarter of 2019 are sufficient
to support our sales forecast."

Over the next 12-24 months, S&P believes Dexin's average funding
cost will remain at 8%-9%; it was about 8.4% in 2018, higher than
peers'. The company's significant exposure to nonbank financing,
which accounted for 68% of its gross debt in 2018, is the major
cause. Dexin's nonbank financing primarily consists of trust loans
(37% of gross debt) and loans from project shareholders (18% of
gross debt). Following its recent IPO, Dexin has refinanced some of
this exposure and also has access to equity capital market. The
company intends to improve its capital structure and costs further
with more refinancing.

S&P said, "The stable outlook reflects our expectation that Dexin
will continue to grow its contracted sales, and will follow a
disciplined approach toward land acquisitions over the next 12-24
months. It also reflects our view that the company will gradually
improve its capital structure and funding costs.

"We may lower the rating if Dexin's debt-funded acquisitions are
more aggressive than we expected or its contracted sales drop
substantially. A debt-to-EBITDA ratio worsening to above 7x over
the next 12 months could indicate such a deterioration.

"We may also lower the rating if the company's liquidity weakens. A
significant drop in the ratio of liquidity sources (cash balance
and contracted sales) to liquidity uses (such as short-term debt
and land and construction payment) would be indicative of such
weakening.

"We may raise the rating if Dexin continues to expand, such that
its operating scale and diversity improve to be comparable to its
peers'. At the same time the company will need to improve its
capital structure and funding cost base such that its
debt-to-EBITDA ratio remains below 5x on a sustainable basis."


FANTASIA HOLDINGS: Moody's Rates New USD Sr. Unsec. Notes 'B3'
--------------------------------------------------------------
Moody's Investors Service has assigned a B3 rating to Fantasia
Holdings Group Co., Limited's (B2 stable) proposed senior unsecured
USD notes.

Fantasia plans to use the proceeds from the proposed notes to
refinance certain of its existing indebtedness.

RATINGS RATIONALE

"The proposed bond issuance will not materially change Fantasia's
credit metrics in the next 12 to 18 months, but will slightly
improve its maturity profile," says Celine Yang, a Moody's
Assistant Vice President and Analyst.

Moody's expects Fantasia's leverage -- as measured by revenue to
adjusted debt -- will trend towards 40% in the next 12-18 months
from 32% in 2018, largely driven by an increase in revenue on the
back of strong contracted sales growth in the past one to two
years. At the same time, Moody's estimates EBIT/interest will
improve towards 1.50x over the same period from 1.3x in 2018.

Moody's expect Fantasia will achieve total contracted sales of
RMB33-35 billion in 2019, up about 10%-15% growth from 2018. The
company achieved total contracted sales of RMB13.2 billion for the
six months ended June 2019.

Fantasia's B2 corporate family rating reflects the company's (1)
established track record in property development in the
Chengdu-Chongqing Economic Zone and the Pearl River Delta; and (2)
the diversified income streams from its property management, rental
and hotel management businesses, which are mostly recurring in
nature.

On the other hand, the B2 rating is constrained by the company's
high leverage and weak interest coverage, in turn caused by its
high-cost financing.

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

This subordination risk refers to the fact that the majority of
Fantasia's claims are at its 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. Consequently, the
expected recovery rate for claims at the holding company will be
lower.

Fantasia's liquidity is good. Moody's expects the company cash
balance, together with its operating cash flow, will be sufficient
to cover its maturing debt and committed land payments over the
next 12 months. As of December 2018, the company's cash holdings of
about RMB25 billion, after deducting cash held by Colits Life,
covered about 1.7x of its short term debt of RMB14.6 billion as at
the same date.

The stable ratings outlook reflects Moody's expectation that over
the next 12-18 months Fantasia will execute its sales plan and
improve its credit metrics while maintaining sufficient liquidity.

Fantasia's ratings could be upgraded if the company (1) improves
its debt maturity and liquidity profile; and (2) improves its
credit metrics, such that revenue/adjusted debt rises to 60%-70% on
a sustained basis, and EBIT/interest improves to 2.5x or above.

The ratings could be downgraded if (1) its contracted sales or cash
collections weaken; (2) it engages in aggressive land acquisitions
or other business acquisitions, such that its debt leverage and
liquidity deteriorate materially; (3) refinancing and liquidity
risks increase; or (4) its credit metrics are unlikely to improve,
with EBIT/interest failing to trend towards 1.5x over the next
12-18 months.

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

Fantasia Holdings Group Co., Limited is a property developer in
China (A1 stable). Established in 1996, the company listed on the
Hong Kong Stock Exchange in November 2009.

In addition to property development, Fantasia is engaged in
providing property operation services, property agency services and
hotel services for its own properties and properties of third
parties.

FUTURE LAND: Moody's Reviews Ba2 CFR on Possible Downgrade
----------------------------------------------------------
Moody's Investors Service placed on review for downgrade the Ba2
corporate family rating and Ba3 senior unsecured rating of Future
Land Development Holdings Limited, as well as the Ba2 CFR of its
key operating subsidiary, Seazen Holdings Co., Ltd.

At the same time, Moody's has placed on review for downgrade the
Ba2 backed senior unsecured rating on the bonds issued by New Metro
Global Limited and guaranteed by Seazen.

All outlooks are changed to rating under review from stable.

RATINGS RATIONALE

"The review for downgrade reflects our concerns over the potential
negative impact on Future Land Development and Seazen's reputation,
operations and funding access, following the confirmation of the
arrest of Mr. Wang Zhenhua, the two companies' largest shareholder
and former chairman," says Kaven Tsang, a Moody's Senior Vice
President.

On July 10, Future Land Development confirmed that Mr. Wang
Zhenzhou had been arrested by the Shanghai Putuo District
Procuratorate and Public Security Bureau.

Since the criminal custody of Mr. Wang Zhenhua, the share price for
both Future Land Development and Seazen has dropped by about 26%
and 30%, respectively, over the past week, despite recent
stabilization. Given that Future Land Development has pledged
around half of its 67.1% stake in Seazen for financing, its
liquidity could deteriorate if Seazen's share price falls
substantially.

In addition, Future Land Development's liquidity has been supported
by its strong contracted sales growth over the past 2-3 years, and
any material slowdown could require it to source alternative
funding to maintain its liquidity.

Moody's review will focus on the impact of the arrest on the
companies' operations, including the sale and development of
property projects, any potential change of control, funding access
and cost of funding, and the overall impact on the two companies'
liquidity and financial profile.

In terms of environmental, social and governance (ESG) factors,
Moody's has also taken into account the concentrated ownership by
Future Land Development's key shareholder, Mr. Wang Zhenhua, who
held a total 71% stake in the company as of July 15, 2019.

This risk of concentrated ownership is incorporated in the Ba2 CFR
and is partly mitigated by: (1) the presence of three independent
non-executive directors on the board, who also chair the audit,
nomination and remuneration committees; (2) the company's moderate
20%-25% dividend payout ratio over the past three years; and (3)
the presence of other internal governance structures and standards,
as required under the Corporate Governance Code for companies
listed on the Hong Kong Stock Exchange.

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

Seazen Holdings Co., Ltd. engages primarily in residential
development and was founded in 1993 by Mr. Wang Zhenhua. Seazen is
a 67.1%-owned subsidiary of Future Land Development Holdings
Limited, accounting for most of Future Land Development's
operations.

Future Land Development was founded by Mr. Wang in 1996.

At the end of 2018, the Future Land Group had a land bank spread
across 77 cities in China, with a total gross floor area of around
110 million square meters.


JINGGONG GROUP: Defaults on CNY1 Billion Short Term Debt
--------------------------------------------------------
Caixin Global reports that Jinggong Group Co. Ltd., a privately
owned enterprise in eastern China active in a shady corner of
China's bond market, has defaulted on CNY1 billion (US$145.4
million) in short-term debt that came due on July 15.

The default of Jinggong Group illustrates the difficulties now
faced by private companies that have relied on an unusual financing
method known as structured bond issuances, particularly amid the
government's ongoing drive to get corporate debt under control,
Caixin says.

According to Caixin, the Zhejiang province-based company said in a
filing to the Shenzhen Stock Exchange it couldn't come up with the
money to repay the short-term commercial paper, a type of debt
instrument, due to factors including the government's deleveraging
policies, one of its listed subsidiaries, Zhejiang Jinggong Science
& Technology Co. Ltd.

Two other companies that Jinggong Group controls, Kuaijishan
Shaoxing Rice Wine Co. Ltd. and Changjiang & Jinggong Steel
Building (Group) Co. Ltd., also disclosed the default in exchange
filings, the report relates. All three listed companies said that
Jinggong Group's default has had no effect on them.

Founded in 1968, Jinggong Group runs businesses ranging from
property and steel structure construction to aviation to wine
making. The group ranked 229th by revenue among privately owned
Chinese enterprises in 2018, Caixin discloses citing the All-China
Federation of industry and Commerce, a government-backed chamber of
commerce.

Jinggong Group still has 11 outstanding bonds worth CNY5.6 billion
in total, according to Caixin's calculations based on public data.
Of particular note, the company issued debt in an unusual manner
known as a "structured bond," according to source in the bond
market familiar with the company. "Jinggong is a large issuer of
structured bonds, and should have defaulted long ago," the source
told Caixin.

In a structured issuance, a bond issuer buys a portion of their own
offering to inflate the issuance size in order to attract
investors, Caixin previously reported. It is known as a creative
way for some companies to secure funding they couldn't otherwise
obtain based on their credit ratings. Although structured bond
issues aren't technically illegal, some top regulators have voiced
misgivings.

Even before the default, warning signs were flashing for Jinggong
Group, Caixin states. In April, Dagong Global Credit Rating Co.
Ltd., a Chinese ratings agency, put the company on a credit watch
list, citing the group's declining profit, debt disputes and
subsequent court-ordered freeze of its stakes in Jinggong Science &
Technology and Kuaijishan Shaoxing Rice Wine, Dagong said in a
statement at the time.

On July 15, Dagong lowered Jinggong Group's issuer rating to AA-
from AA+ and changed the ratings outlook to negative, Caixin
relays.

At the end of March 2018, Jinggong Group provided guarantee for an
outstanding CNY2.9 billion of financing, mostly for affiliated or
Zhejiang-based companies, Dagong said in the April statement. Some
of the companies had been put on a blacklist for individuals and
corporations with poor credit, including one that had applied for
bankruptcy, Caixin notes.

Jinggong Group Co.,Ltd provides engineering services. The Company
offers steel structure construction consulting, design, production,
construction, installation, and other related services. Jinggong
Group also provides building materials sales, chemical fiber
products sales, real estate development, and other services.


KAISA GROUP: Fitch Assigns B(EXP) Rating to New USD Sr. Notes
-------------------------------------------------------------
Fitch Ratings has assigned China-based homebuilder Kaisa Group
Holdings Limited's (B/Stable) proposed US dollar senior notes an
expected rating of 'B(EXP)' with a Recovery Rating of 'RR4'. The
proposed notes will be used to refinance existing medium- to
long-term offshore indebtedness which will become due within one
year.

The proposed notes are rated at the same level as Kaisa's senior
unsecured rating as they will constitute its direct and senior
unsecured obligations. The final rating is subject to the receipt
of final documentation conforming to information already received.

Kaisa's ratings are underpinned by a strong asset base that
supports scale expansion, which is at a level comparable with 'BB'
category homebuilders. The company had a large and well-located
land bank consisting of over 150 projects in 45 cities across five
major economic regions at end-2018. Its geographical
diversification mitigates project and region-related risks and
gives it more flexibility when launching new projects to support
sales growth. Kaisa's ratings are constrained by high leverage -
measured by net debt/adjusted inventory (urban renewal projects
(URPs) and investment properties at original cost) - of 72.7% at
end-2018, although this is mitigated by high profitability.

Fitch believes Kaisa will start deleveraging from 2020, supported
by its enlarged scale and increased margin, with more high-margin
URPs being recognised. Kaisa is able to secure a large land bank at
low cost in China's Greater Bay Area through its URP business and
this supports its high EBITDA margin of over 30%. The wider margin
of the URP business, at over 40%, will help the company deleverage.
However, Kaisa's leverage will be sustained at a high level if it
expands its scale at the same pace as in 2017 and 2018, as URPs
only contributed to 30% of contracted sales in 2018.

KEY RATING DRIVERS

URPs a Business Strength: Fitch believes Kaisa's URP business
offers operational flexibility, as its high profitability enables
the company to sustain price cuts in a market downturn. Kaisa can
also sell the stakes in its URPs, if needed, at a profit because of
their low land cost. Kaisa's long experience in the URP business
has enabled it to secure a large land bank with a high gross profit
margin of over 40%, supporting the company's EBITDA margin,
excluding capitalised interest in cost of goods sold (COGS), of
30%-35%. A large URP pipeline of 119 projects (site area of 30
million sq m) also allows for a consistent stream of projects
entering the sales phase.

Kaisa has converted an average gross floor area (GFA) of 940,000 sq
m a year for the past 10 years and this also gives it some
operational flexibility with land replenishment. Nevertheless, the
URP business has limited scope to build scale and will become a
less important driver at higher rating levels. URPs require a
longer development cycle and thus funds will be trapped for a
longer period and incur higher funding without immediate cash flow
generation or profit contribution, raising Kaisa's leverage above
that of peers without as large an exposure to URPs. The nature of
the business and the high profitability mean Kaisa can operate at a
higher leverage than other Chinese homebuilders for a sustained
period.

High Leverage Constrains Ratings: Fitch expects Kaisa's leverage,
measured by net debt/adjusted inventory, to stay above 70% in 2019,
but to fall below 70% thereafter. Kaisa's sales scale in 2019 would
be insufficient to cover its high tax and interest burden. Its
reliance on the non-URP homebuilding business, which has a lower
margin, and growth at the business that is faster than Fitch
expects may limit its capacity to deleverage. However, Fitch thinks
there may be improvement once the company's attributable sales rise
above CNY100 billion from 2020, as its sales efficiency -
contracted sales/gross debt - will exceed 0.8x and support stronger
fund flow from operation.

Large and Premium Land Bank: Fitch believes Kaisa's quality land
bank will support its ability to meet its total sales target of
CNY90 billion in 2019. Its premium asset base can also provide a
buffer to liquidity at times when the conversion of its URP land
bank takes longer than the company expects, as it can easily find
buyers for its well-located URPs, especially those in Shenzhen.
Kaisa's land bank totalled 24.0 million sq m (estimated sellable
resources of CNY464 billion) at end-2018, of which 13.0 million sq
m, or 54.3%, was in the Greater Bay Area and 3.2 million sq m in
Shenzhen.

Robust Contracted Sales Growth: Fitch thinks Kaisa's 2019
contracted sales target is achievable due to the supportive
policies in the Greater Bay Area and the company's well-located
land bank. Kaisa had total sellable resources of CNY158 billion at
end-2018, implying a sell-through rate of 57% in 2019 to support
its 20% sales growth, close to its historical sell-through rate of
around 60%. Kaisa's attributable contracted sales rose by 57% to
CNY70.1 billion in 2018, supported by an average selling price
increase of 14% and GFA growth of 38%.

DERIVATION SUMMARY

Kaisa's attributable sales of CNY70 billion in 2018 is comparable
with that of 'BB' category peers, such as CIFI Holdings (Group) Co.
Ltd. (BB/Stable), Logan Property Holdings Company Limited
(BB-/Positive) and China Aoyuan Group Limited (BB-/Positive), and
exceeds the CNY40 billion-50 billion sales of Yuzhou Properties
Company Limited (BB-/Stable), KWG Group Holdings Limited
(BB-/Stable) and Times China Holdings Limited (BB-/Stable). Over
50% of Kaisa's land bank GFA is in the Greater Bay Area, similar to
that of Logan, China Aoyuan and Times China. Kaisa's EBITDA margin
of over 30% is at the higher end among the 'BB' category peers, due
to its high-margin URPs.

Kaisa's leverage of over 70% is similar to that of Oceanwide
Holdings Co. Ltd. (B-/Stable), Xinhu Zhongbao Co., Ltd. (B-/Stable)
and Tahoe Group Co., Ltd. (B-/Stable). Kaisa's business profile is
much stronger than that of Oceanwide and Xinhu, with a larger sales
scale and more diversified land bank. Its churn, measured by
contracted sales/total debt, of 0.64x is also healthier than the
ratios of those two companies, which are below 0.25x. Kaisa and
Tahoe, whose land bank is more exposed to the Pan-Bohai Area, the
Yangtze River Delta and Fujian province, have similar scale and
margin. However, Tahoe's shorter land-bank life of two to three
years puts pressure on its leverage and Tahoe's liquidity is much
tighter than that of Kaisa.

Kaisa's closest peer among 'B' rated issuers is Yango Group Co.,
Ltd. (B/Positive). Yango's sales of CNY118 billion in 2018 were
larger than Kaisa's CNY70 billion and its land bank is also more
diversified. However, Yango's EBITDA margin, excluding capitalised
interest, of less than 20% is narrower than Kaisa's more than 30%.
Yango's leverage, measured by net debt/adjusted inventory, was high
at 71% at end-2018, similar to that of Kaisa.

KEY ASSUMPTIONS

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

  - Attributable contracted sales to rise by 20% in 2019 and 2020

  - Attributable land premium/contracted sales at 28% in 2019 and
    31% in 2020 (2018: 23%)

  - Cash collection rate of around 80% in 2019 and 85% in 2020
(2018: 75%)

  - Construction cost/sales proceeds at around 30% in 2019 and 2020
(2018: 30%)

  - Dividend payout ratio of 20% of net income (2018: 19%)


SHANDONG HI-TECH: Fitch Withdraws BB- Issuer Default Ratings
------------------------------------------------------------
Fitch Ratings affirmed and simultaneously withdrew Shandong Hi-tech
Innovation Construction Investment Group Co., Ltd.'s Long-Term
Foreign- and Local-Currency Issuer Default Ratings of 'BB-' with a
Stable Outlook. Fitch has also affirmed and withdrawn the expected
rating on SDHIC's proposed senior unsecured US dollar bonds of
'BB-(EXP)'.

Fitch has chosen to withdraw the ratings of SDHIC for commercial
reasons.

KEY RATING DRIVERS

Fitch recently downgraded the ratings of SDHIC.




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

AMRIT AGRO: CRISIL Maintains B Ratings in Not Cooperating
---------------------------------------------------------
CRISIL said the ratings on bank facilities of Amrit Agro (AA)
continues to be 'CRISIL B/Stable/CRISIL A4 Issuer not
cooperating'.

                       Amount
   Facilities        (INR Crore)      Ratings
   ----------        -----------      -------
   Cash Credit            2.25        CRISIL B/Stable (ISSUER NOT
                                      COOPERATING)

   Long Term Loan         3.25        CRISIL B/Stable (ISSUER NOT
                                      COOPERATING)

   Proposed Short Term    2.00        CRISIL A4 (ISSUER NOT
   Bank Loan Facility                 COOPERATING)

CRISIL has been consistently following up with AA for obtaining
information through letters and emails dated December 31, 2018 and
June 12, 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 AA, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on AA is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' category or lower'.

Based on the last available information, the ratings on bank
facilities of AA continues to be 'CRISIL B/Stable/CRISIL A4 Issuer
not cooperating'.

Set up in 2016, AA is setting up a non-basmati parboiled rice mill
with capacity of 3 tph at Kurud, (Chhattisgarh). Operations are
managed by Mrs. Hemeshwari Bhaghel and her husband, Mr Dharmendra
Chandrakar. Production is expected to commence from April 2017.


ARCHANA EQUIPMENTS: CRISIL Assigns B Rating to INR2.4cr Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Archana Equipments And Technologies (AET).

                       Amount
   Facilities        (INR Crore)     Ratings
   ----------        -----------     -------
   Term Loan              1.67       CRISIL B/Stable (Assigned)    


   Proposed Long Term
   Bank Loan Facility      .33       CRISIL B/Stable (Assigned)    


   Bank Guarantee         1.6        CRISIL A4 (Assigned)      

   Cash Credit            2.4        CRISIL B/Stable (Assigned)    


The ratings reflect susceptibility of the firm's susceptibility of
operating margin to volatility in commodity prices and modest scale
of operations. These weaknesses are partially offset by the
extensive experience of its proprietor.

Key Rating Drivers & Detailed Description

Weakness:

* Susceptibility of operating margin to volatility in commodity
prices: Profitability is exposed to volatility in the prices of raw
materials, which account for a significant portion of total
operating revenue.

* Modest scale of operations: Business risk profile is constrained
by the firm's subdued scale of operations (estimated at INR4.5
crore for fiscal 2019) in the intensely competitive engineering and
capital goods industry. This limits operating flexibility.

Strength:

* Extensive experience of proprietor: Industry presence of over 15
years has enabled the proprietor to understand market dynamics and
establish healthy relationship with suppliers and customers.

Liquidity

Liquidity is stretched marked due to huge repayment obligation and
moderately utilsied bank limits. Cash accrual, expected at INR0.3
to 0.5 crore ever year (INR0.33 lakh in fiscal 2018), will be
insufficient to meet debt obligation of INR0.8 crore yearly, over
the medium term. Fund-based limit of INR2.4 crore was utilised at
77% over the 12 months ended April 2019.

Outlook: Stable

CRISIL believes AET will continue to benefit from the extensive
experience of its proprietor. The outlook may be revised to
'Positive' if ramp-up in operations and stable profitability
strengthen financial risk profile. The outlook may be revised to
'Negative' if decline in profitability, stretch in working capital
cycle, or any large, debt-funded capital expenditure weakens
capital structure.

Established in 1999 as a proprietorship concern by Mr Benoy S Nair,
AET manufactures commercial kitchen equipment for various purposes
such as cooking, serving, washing, and refrigeration. Facilities
are in Peenya Industrial Estate, Bengaluru.


D. VANSH: CRISIL Assigns 'B' Rating to INR17cr Cash Loan
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facility of D. Vansh Enterprises (DVE).

                       Amount
   Facilities        (INR Crore)      Ratings
   ----------        -----------      -------
   Cash Credit             17         CRISIL B/Stable (Assigned)   
  
  
The rating reflects the firm's susceptibility to intense
competitive pressure and government regulations, and its trading
nature of business. The rating also factors in DVE's stretched
working capital cycle and weak financial risk profile. These
weakness are partially offset by the firm's established
distribution network.

Key Rating Drivers & Detailed Description

Weaknesses:

* Susceptibility to government regulations: The pricing of liquor
products is susceptible to government regulations and taxes.
Furthermore, retail and distribution is strictly controlled by the
government. Heavy taxes levied on liquor products could influence
end users to switch to cheaper brands, which could constrain the
revenue of players such as DVE.

* Vulnerability to intense competitive pressure and trading nature
of business: Intense competition in the liquor distribution
business'on account of small initial investment and low complexity
of operations'continues to constrain operating margin, estimated at
5.4% in fiscal 2019. Susceptibility to the trading nature of
business persists, too.

* Stretched working capital cycle: Operations are working capital
intensive and should remain so over the medium term. Gross current
assets were 170-200 days in the four fiscals ended March 31, 2019,
driven, in turn, by debtors and inventory of 47 days and 135 days,
respectively. Debtors remain high because the company extends a
long credit period to its customers.

* Weak financial risk profile: Financial risk profile is average.
Debt protection metrics are weak and should remain so over the
medium term due to high reliance on working capital borrowings and
low accrual: interest coverage and net cash accrual to total debt
ratios are estimated at 1.23 times and 0.02 time, respectively, in
fiscal 2019.

Strengths:

* Established distribution network: DVE has a large distribution
network in Fazilka (Punjab), with L1 stores, 47 L2 stores, and 76
L14 stores. Revenue is estimated at INR51.23 crore in fiscal 2019.
Moreover, the firm's healthy relationships with suppliers and
customers should continue to support business risk profile.

Liquidity

Liquidity is adequate. Net cash accrual is expected at INR0.5-0.7
crore per annum over the medium term vis yearly debt obligation of
INR0.33 crore. Bank limit was fully utilised in the 12 months
through April 2019. Current ratio is estimated at 1.59 times as on
March 31, 2019. Financial assistance may also be expected from the
proprietor whenever necessary.

Outlook: Stable

CRISIL believes DVE will continue to benefit from its healthy
relationships with its suppliers and customers. The outlook may be
revised to 'Positive' if sustained growth in revenue strengthens
financial risk profile. The outlook may be revised to 'Negative' if
weak demand, stretch in receivables, or pile-up of inventory
weakens liquidity.

DVE was established 2008 as proprietorship firm. It is engaged in
wholesale and retail distribution of liquor such as Indian made
foreign liquor (IMFL) and country liquor in Punjab.


GREENFIELD AGRO: CRISIL Assigns 'B+' Ratings to INR5.3cr Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Greenfield Agro Industries (GAI).

                       Amount
   Facilities        (INR Crore)     Ratings
   ----------        -----------     -------
   Cash Credit            3          CRISIL B+/Stable (Assigned)   
  
   Long Term Loan         2.3        CRISIL B+/Stable (Assigned)   
  

The rating reflects the firm's vulnerability to climatic
conditions, government regulations, and volatile raw paddy prices,
and its modest scale of operations. These weakness are partially
offset by the extensive experience of the partners in the basmati
rice industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Susceptibility to climatic conditions, government regulations,
and volatile raw material prices: The crop yield of agricultural
commodities is dependent on adequate and timely monsoon.
Vulnerability to the vagaries of rainfall may lead to fluctuations
in availability and the prices of paddy, which, in turn, could
weaken business risk profile. Moreover, the company will remain
susceptible to government regulations and export restrictions.

* Modest scale of operation: GAIs business profile is constrained
by its moderate scale of operations in the intensely competitive
basmati rice industry. GAIs moderate scale of operations will
continue limit its operating flexibility.

Strength

* Extensive experience of the partners: Benefits from the partners'
experience of three decades, and their strong understanding of
market dynamics and healthy relationships with suppliers and
customers should continue to support the business.

Liquidity

Liquidity is adequate and should remain so over the medium term.
Net cash accrual'estimated at INR0.91 crore in fiscal 2019 and
likely to remain stable in fiscals 2020 and 2021'should comfortably
cover yearly debt obligation of INR0.36 crore; surplus cash could
be used to support working capital. Utilisation of cash credit
limit averaged 49% in the 12 months through April 2019. Cash and
bank balance is estimated at INR0.25 crore as of March 31, 2019
(INR0.12 crore a year ago).

Outlook: Stable

CRISIL believes GAI will continue to benefit from the extensive
experience of its partners, and their healthy relationships with
clients. The outlook may be revised to 'Positive' if ramp-up in
revenue and stable profitability strengthen financial risk profile.
The outlook may be revised to 'Negative' if a decline in
profitability, stretch in working capital cycle, or large
debt-funded capital expenditure weakens capital structure.

GAI was established as a partnership firm between Mr Praveen Kumar,
Mr Akshay Kumar, and Ms Alka Gill in May 2017. Commercial
production began in January 2018. The firm mills and sorts basmati
rice. The manufacturing unit is in Karnal, total capacity of which
is 8 tonne per hour.


J.R.P. EXPORTS: CRISIL Lowers Rating on INR2cr Loan to B+
---------------------------------------------------------
CRISIL has revised the ratings on bank facilities of J.R.P. Exports
(JRP) to 'CRISIL B+/Stable/CRISIL A4 Issuer not cooperating'.

                       Amount
   Facilities        (INR Crore)      Ratings
   ----------        -----------      -------
   Export Packing           2         CRISIL B+/Stable (ISSUER
   Credit                             NOT COOPERATING; Revised
                                      from 'CRISIL BB/Stable
                                      ISSUER NOT COOPERATING')

   Proposed Long Term       1.75      CRISIL B+/Stable (ISSUER
   Bank Loan Facility                 NOT COOPERATING; Revised
                                      from 'CRISIL BB/Stable
                                      ISSUER NOT COOPERATING')

   Proposed Short Term      3.75      CRISIL A4 (ISSUER NOT
   Bank Loan Facility                 COOPERATING; Revised from
                                      'CRISIL A4+ ISSUER NOT
                                      COOPERATING')

CRISIL has been consistently following up with JRP for obtaining
information through letters and emails dated December 31, 2018 and
June 12, 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 JRP, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on JRP is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' category or lower'.

Based on the last available information, the ratings on bank
facilities of JRP Revised to be 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.

JRP was setup in 1993 by Mr. S Jagannathan and Mr. N. R.
Palanisamy. The firm manufactures and exports knitted garments like
pajamas, shirts, T-shirts, nighties, Lycra Jerseys, jackets and
sweat shirts for children, men and women. JRP has its manufacturing
facility at Tirupur (Tamil Nadu) with installed capacity of 1.2
lakh pieces per month.


M A FRUITS: CRISIL Lowers Rating on INR6cr Cash Loan to B+
----------------------------------------------------------
CRISIL has revised the ratings on bank facilities of M A Fruits
International Private Limited (MAFIPL) to 'CRISIL B+/Stable Issuer
not cooperating'.

                       Amount
   Facilities        (INR Crore)     Ratings
   ----------        -----------     -------
   Cash Credit              6        CRISIL B+/Stable (ISSUER NOT
                                     COOPERATING; Revised from
                                     'CRISIL BB/Stable ISSUER NOT
                                     COOPERATING')

CRISIL has been consistently following up with MAFIPL for obtaining
information through letters and emails dated February 26, 2019 and
June 12, 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 MAFIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MAFIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.

Based on the last available information, the ratings on bank
facilities of MAFIPL Revised to be 'CRISIL B+/Stable Issuer not
cooperating'.

MAFIPL started operations in April 2016, and trades in fruits.

UKSFM, set up in 1965, trades in fruits such as apples, oranges,
grapes, and pomegranates.

UKSCSPL commenced operations in February 2016, and has set up a
cold storage unit with capacity of 5000 tonne.

The UKS group is based in Coimbatore, Tamil Nadu, and is promoted
by Mr S K Mohamed Jaffer.


MEENAKSHI ASSOCIATES: CRISIL Lowers Rating on INR10cr Loan to D
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Meenakshi Associates Private Limited (MAPL) to 'CRISIL D/CRISIL D'
from 'CRISIL B-/Stable/CRISIL A4' due to continuous overdrawls in
cash credit facility for upto 90 days, delays in meeting vehicle
debt obligations, four times invocation in bank guarantee facility
and five times devolvement in letter of credit facility in past six
months. However, the promoters have extensive experience in
engineering and capital goods industry.

                       Amount
   Facilities        (INR Crore)     Ratings
   ----------        -----------     -------
   Bank Guarantee          10        CRISIL D (Downgraded from
                                     'CRISIL A4')

   Cash Credit              7        CRISIL D (Downgraded from
                                     'CRISIL B-/Stable')

   Letter of Credit         5.5      CRISIL D (Downgraded from
                                     'CRISIL A4')

   Term Loan                .03      CRISIL D (Downgraded from
                                     'CRISIL B-/Stable')

Key Rating Drivers & Detailed Description

Weaknesses

* Delays in debt servicing: Continuous overdrawls in cash credit
facility and delays in repayment of term debt.

* Below-average financial risk profile: Financial risk profile is
expected to remain constrained by the large working capital debt.
Total outside liabilities to tangible networth ratio was high at
4.28 times as on March 31, 2018 (4.09 times as on March 31, 2017).
Besides, debt protection metrics were average, with interest
coverage and net cash accrual to total debt ratios of1.35 times and
0.04 time, respectively, for fiscal 2018).

* Modest scale of operations: Intense competition may continue to
constrain scalability, pricing power, and profitability. Revenue
was INR31.47 crore in fiscal 2018 (INR27.98 crore in fiscal 2017)
and is likely to increase by 4-5% during fiscals 2019 and 2020.

* Large working capital requirement: Operations may remain working
capital intensive over the medium term due to the projected scale
up of operations. Gross current assets were 418 days as on March
31, 2018 (454 days as on March 31, 2017), driven by inventory and
receivables of 313 days and 196 days, respectively (333 days and
134 days). Against this, credit from suppliers was 196 days).

Strength

* Extensive experience of the promoters: Benefits from the
promoters' experience of three decades, their strong understanding
of the local market dynamics, healthy relations with customers and
suppliers, and timely, need-based unsecured loans (outstanding at
INR6.06 crore as on March 31, 2019) should continue to support the
business.

Liquidity

Liquidity is likely to remain stretched over the medium term. Cash
accrual, estimated at INR0.80-0.90 crore in fiscal 2019 and
expected at a similar level in 2020 should comfortably cover yearly
maturing debt of INR0.04 crore. The fund-based limit of INR12.50
crore has been utilised 98% over the 12 months through December
2018. Cash and bank balance was INR0.52 crore as on March 31,
2018.

Incorporated in 1985, Noida-based MAPL, promoted by Mr Ish Kumar
Narang and family, fabricates pressure vessels, heat exchangers,
storage tanks, and chemical gas cylinders mainly for the petroleum
refining and chemical industries.


MRB PATIALA: CRISIL Assigns B+ Rating to INR30cr Term Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of MRB Patiala Storage Private Limited (MRB).

                       Amount
   Facilities        (INR Crore)      Ratings
   ----------        -----------      -------
   Term Loan               30         CRISIL B+/Stable (Assigned)  
   

The rating reflects the company's modest scale of operations, weak
financial risk profile, and exposure to risks related to the
ongoing project. These weaknesses are partially offset by the
extensive industry experience of the promoters and adoption of
latest machinery in a steady industry.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: Scale of operations is modest in the
diversified support services industry. Intense competition
constrains scalability and operating flexibility.

* Weak financial risk profile: Financial risk profile is weak:
gearing expected to be high due to debt funded capex and low
networth , however accrual expected to be sufficient. Debt
protection metrics are expected to be at moderate levels in FY2019.
The project is aggressively funded through a debt-equity ratio of 3
times.

* Exposure to risks related to ongoing project: MRB is scheduled to
commence its project in July 2019.  Demand risk is expected to be
moderate as the industry is highly fragmented, with low entry
barriers and small capital and technological requirement. Time
taken for completion of the project and stabilisation of operations
at the new unit will remain key rating sensitivity factors.

Strengths

* Extensive experience of the promoters: Benefits from the
decade-long experience of the promoters in diversified support
services, their strong understanding of the market dynamics, and
healthy relationships with suppliers and customers should continue
to support the business.

* Adoption of latest machinery in a steady industry: MRB is
currently in the process of setting up a new unit with latest
equipment and technology. Therefore, adoption of latest machinery
in steady diversified support services should support the business
risk profile.

Liquidity

Liquidity should remain stretched: accrual is expected to be
tightly matched against debt obligation. Working capital
requirement is funded mainly through trade credit.

Outlook: Stable

CRISIL believes MRB will continue to benefit from the promoters'
extensive industry experience. The outlook may be revised to
'Positive' if timely stabilisation of operations at the proposed
plant time and sizeable revenue and profitability strengthen the
financial risk profile.  The outlook may be revised to Negative' if
considerable delay in commencement of operations  or substantial
increase in the working capital requirement weakens the financial
risk profile, especially liquidity.

Incorporated in 2017, MRB is currently setting up a silo for
storage of food grains, which should be leased out to Food
Corporation of India (FCI), a Government of India undertaking in
Mohali, Punjab, with an installed capacity of 50,000 tonne per
annum. MRB is an SPV of M/s Baalaa Shree Storage (consortium). Mr
Pawan Bansal, Ms Manisha Goyal, and Ms Ratan Bala are the
promoters. The company will start operations in July 2019.


PANKAJ TRADERS: CRISIL Assigns B+ Ratings to INR10.2cr Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Pankaj Traders (PT).

                       Amount
   Facilities        (INR Crore)     Ratings
   ----------        -----------     -------
   Cash Credit/
   Overdraft facility     6          CRISIL B+/Stable (Assigned)   
  

   Term Loan              4.2        CRISIL B+/Stable (Assigned)   
  

The rating reflects the firm's modest scale and working
capital-intensive operations, and weak financial risk profile.
These weaknesses are partially offset by proprietor's extensive
experience and his funding support.

Analytical Approach
The unsecured loans from Promoters of 1.48 crores are treated as
NDNE as the same is expected to remain in the business over the
medium term.

Key Rating Drivers & Detailed Description

Weaknesses

* Modest scale of operations: Business risk profile is constrained
by small scale in the intensely competitive trading industry. This
will continue to limit operating flexibility.

* Weak financial risk profile: The total outside liabilities to
tangible networth ratio stood at 4.94 times, along with a modest
networth of INR1.39 crores estimated for fiscal 2019.

Strength

* Extensive experience of proprietor: Industry presence of over a
decade has enabled the proprietor to understand market dynamics and
establish healthy relationship with suppliers and customers.

* Moderate debt protection metrics: The firm has average debt
protection measures with interest coverage ratio at 2.10 for fiscal
2019.

Liquidity

Bank limit utilisation was around 95% for the 12 months ended March
31, 2019. Utilisation is expected to remain high on account of
large working capital requirement. Cash accrual is sufficient
INR0.6 cr estimated for fiscal 2019) to meet debt obligation of
INR0.5cr during fiscal 2019. However, the same is supported by need
based funding support from the promoters. Bank limit utilisation
was around 95% for the 12 months ended March 31, 2019. Utilisation
is expected to remain high on account of large working capital
requirement. Cash accrual is sufficient INR0.6 cr estimated for
fiscal 2019) to meet debt obligation of INR0.5cr during fiscal
2019. However, the same is supported by need based funding support
from the promoters.

Outlook: Stable

CRISIL believes PT will continue to benefit from its experience of
proprietor in the agro commodities trading business.  The outlook
may be revised to 'Positive' in case of sustained and significant
revenue growth and cash accruals, supporting its financial risk
profile. The outlook may be revised to 'Negative' if business
stagnates due to weak demand, stretch working capital operations;
thereby adversely affecting liquidity.

Established in 2009 as a proprietorship firm by Mr Pankaj Prakash
Ostwal, PT is based in Deola district, Nashik, and trades in onions
and other agricultural commodities.


PAREKH AGENCIES: CRISIL Maintains B+ Rating in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Parekh Agencies (PA)
continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer not
cooperating'.

                        Amount
   Facilities         (INR Crore)      Ratings
   ----------         -----------      -------
   Bill Discounting        2.7         CRISIL A4 (ISSUER NOT
   under Letter of                     COOPERATING)
   Credit                  

   Cash Credit             2.0         CRISIL B+/Stable (ISSUER
                                       NOT COOPERATING)

   Letter of Credit        4.0         CRISIL A4 (ISSUER NOT
                                       COOPERATING)

   Term Loan               1.8         CRISIL B+/Stable (ISSUER
                                       NOT COOPERATING)

CRISIL has been consistently following up with PA for obtaining
information through letters and emails dated December 31, 2018 and
June 12, 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 PA, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PA is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' category or lower'.

Based on the last available information, the ratings on bank
facilities of PA continues to be 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.

Established in 1990 and based in Indore, Madhya Pradesh, PA is a
family-managed partnership firm of Mr Vijay Parekh, Mr Aditya
Parekh, and Mrs Rooplata Parekh. The firm trades in starch,
pharmaceutical bulk drugs, and imported plastic granules used for
manufacturing bottles for intravenous glucose.

The partners also own Dhanlaxmi Starch Products, which manufactures
modified starch used as an adhesive in various industries. Its
manufacturing facility is near Indore.


PK GLOBAL: CRISIL Lowers Rating on INR6cr Loan to 'D'
-----------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of PK
Global Power Private Limited (PKGPL) to 'CRISIL D/CRISIL D' from
'CRISIL B+/Stable/CRISIL A4'.

                       Amount
   Facilities        (INR Crore)     Ratings
   ----------        -----------     -------
   Bank Guarantee          6         CRISIL D (Downgraded from
                                     'CRISIL A4')

   Cash Credit             4         CRISIL D (Downgraded from
                                     'CRISIL B+/Stable')

   Letter of Credit        2.25      CRISIL D (Downgraded from
                                     'CRISIL A4')

   Term Loan               1.96      CRISIL D (Downgraded from
                                     'CRISIL B+/Stable')

The downgrade reflects delay in repayment of term loan for over 30
days in the past one year owing to weak liquidity.

The ratings reflect PKGPL's modest scale of operation in an
intensely competitive insulator industry, large working capital
requirement and below-average financial risk profile. These
weaknesses are partially offset by the extensive experience of the
promoters and healthy relations with suppliers and customers.

Key Rating Drivers & Detailed Description

Weaknesses:

* Delays in servicing term loan repayments: The downgrade reflects
instances of delays in repayment of principal in the term loan
facilities availed because of weak liquidity.

* Below-average financial risk profile: Despite capital infusion of
INR2.5 crore in September 2016, networth stood at a modest INR6.64
crore as on March 31, 2019. Debt protection metrics are moderate as
reflected in net cash accrual to total debt of 0.04 time and
interest coverage of 1.2 times in fiscal 2019. Gearing, high at
1.52 times as on March 31, 2019, is expected to be at similar level
over the medium term in the absence of any further capital
expenditure plans.

* Working capital intensive operations: Operations are working
capital-intensive as reflected in gross current assets of 594 days
as on March 31, 2019. Domestic raw material suppliers extend credit
of 200-300 days. However, this advantage is lost as the company
also extends credit of 180 - 300 days to customers. Large working
capital requirements keep bank limit fully utilised.

* Modest scale of operations: Business is constrained by the modest
scale of operations, as reflected in revenue of INR6.7 crore in
fiscal 2019. Minimal product differentiation leads to intense
competition. The modest scale of operations is likely to restrict
the financial flexibility.

Strength:

* Extensive experience of promoters: Benefits from the promoters'
experience of over two decades and healthy relations with vendors
and suppliers should continue to support the business.

Liquidity

Liquidity is weak as reflected in delays in interest servicing and
repayments of term loans availed by the company.

PKGPL started operations as a proprietorship firm in 2000 and was
reconstituted as a private limited company in 2017. The company
manufactures electro porcelain disc insulators for high extension
wires. It has been promoted by Mr Prashant Gupta, based out of
Bhopal.


RAJYALAKSHMI RAW: CRISIL Assigns B+ Rating to INR5cr Cash Loan
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the
bank facilities of Rajyalakshmi Raw and Par Boiled Rice Mills
(RRPRM).

                         Amount
   Facilities          (INR Crore)    Ratings
   ----------          -----------    -------
   Proposed Long Term
   Bank Loan Facility        2        CRISIL B+/Stable (Assigned)  
   

   Bank Guarantee            3        CRISIL A4 (Assigned)      

   Cash Credit               5        CRISIL B+/Stable (Assigned)  
   
  
The rating reflects susceptibility to climatic conditions and
volatility in raw material prices and modest scale of operation.
These weaknesses are partially offset by extensive industry
experience of the partners.

Analytical Approach

Unsecured loan of 3.28 crores as on 31 March, 2018 is treated as
neither debt nor equity (NDNE).

Key Rating Drivers & Detailed Description

Weaknesses

* Susceptibility to climatic conditions and volatility in raw
material prices: The crop yield of agricultural commodities is
dependent on adequate and timely monsoon. Thus, RRPRM is exposed to
the risk of limited availability of its key raw material during a
weak monsoon. Also production may be impacted by-pests or crop
infection leading to higher unpredictability in production and
pricing of agri commodities and derived products.

* Modest scale of operation: RRPRMs business profile is constrained
by its modest scale of operations in the intensely competitive
Agricultural products industry.  RRPRMs modest scale of operations
will continue to limit its operating flexibility.

Strength
* Extensive industry experience of the partners: The partners have
an experience of over 30 years in agriculture industry. This has
given them an understanding of the dynamics of the market, and
enabled them to establish relationships with suppliers and
customers.

Liquidity
Liquidity will remain modest, with annual cash accrual expected at
INR0.1-0.2 crore over the medium term, against no debt obligation.
Bank limit utilisation was high, averaging more than 90 percent for
the 12 months through May 2018.

Outlook: Stable

CRISIL believe RRPRM will continue to benefit from the extensive
experience of its partners, and established relationships with
clients.  The outlook may be revised to 'Positive' if ramp-up in
scale of operations and stable profitability strengthen financial
risk profile.  The outlook may be revised to 'Negative' if decline
in profitability or stretch in working capital cycle or large
debt-funded capital expenditure weakens capital structure

RRPRM is located in Ramanapudi (Andhra Pradesh). RRPRM is owned and
managed by P. Ashok Kumar, P. Basava Kumar, B. Ramesh, S.
Satyaseela, P. Venkata Ramaiah and P. Raja Rao. RRPRM is engaged in
rice milling activity such as rice, gunnies and broken rice.


RELIANCE COMMUNICATIONS: Mukesh Ambani Likely to Make Bid
---------------------------------------------------------
India Today reports that Mukesh Ambani's Reliance Industries (RIL)
is likely to bid for the assets of brother Anil Ambani's Reliance
Communications (RCom) during insolvency proceedings.

Highly placed sources told BusinessToday.in that Reliance Jio,
which is owned by Reliance Industries, is keen on acquiring RCom's
airwaves and towers to boost its own telecom infrastructure before
the roll out of 5G services, the report relates.

Mukesh Ambani is also interested in buying his younger brother's
land assets in Navi Mumbai, the report says. Anil Ambani's pet
project RCom owns Dhirubhai Ambani Knowledge City or DAKC, which
Dhirubhai Ambani acquired in the 1990s through the acquisition of
ICI polyester fibre business.

According to an HDFC Realty study, quoted by Anil Ambani at the
company's shareholders' meet in 2018, the DAKC is estimated to be
over INR25,000 crore, India Today discloses.

According to India Today, Reliance Jio had earlier tried to acquire
RCom's 122.4 MHz of spectrum in the 850 MHz band for INR7,300
crore, but the deal was shelved after the Department of Telecom
(DoT) did not grant approval. The DoT had denied permission as Jio
refused to bear RCom's astronomical debt (RCom currently owes
around INR46,000 crore). Jio is already using RCom's airwaves in
the 850 MHz band in 21 circles.

India Today adds that Mukesh Ambani also has an emotional stake in
the buyout. RCom, launched in early 2000s, was a realisation of a
longstanding Ambani family dream to own a telecommunication
company.

Earlier in March, Mukesh Ambani saved his younger brother from
going to jail by paying a debt of INR580 crore owed by Anil's firm
to the Swedish telecom equipment maker Ericsson, the report
recalls. The Supreme Court had threatened to send Anil Ambani to
jail if the debt was not paid.

According to India Today, the Amabani brothers, who were heirs to
one of India's biggest business empire, have been at loggerheads
since the demise of their father Dhirubhai Ambani in 2002.
Dhirubhai's death sparked a feud for control of the Reliance
empire, which ultimately lead to the split of the Reliance Group,
the report notes.

In a deal brokered by their mother Kolkilaben in 2005, Mukesh
Ambani got oil and gas, petrochemicals, refining and manufacturing
sectors while Anil Ambani was given of electricity, telecoms and
financial services, India Today relates.

In the years to come, the two brothers fought via press
conferences, meetings with the ministers, letters to the Prime
Minister, interviews to news channels and even dragged each other
to court. Once again peace deal had to be brokered by their mother,
after which the two brothers 'parted on a very cordial note,' says
India Today.

Over the years, the wealth gap between the two brothers widened.
Today, Mukesh Ambani's wealth stands at USD5,210 crores, while Anil
Ambani's assets value at just US140 crores, according to India
Today.

However, it seems like crisis has brought the two back together,
the report states. Mukesh Ambani's act of paying the Ericson debt
was seen as a development that might break the ice between the
estranged brothers, India Today says.

                    About Reliance Communications

Based in Mumbai, India, Reliance Communications Ltd is a
telecommunications service provider. The Company operates through
two segments: India Operations and Global Operations. India
operations segment comprises wireless telecommunications services
to retail customers through global system for mobile communication
(GSM) technology-based networks across India; voice, long distance
services and broadband access to enterprise customers; managed
Internet data center services, and direct-to-home (DTH) business.
Global operations comprise Carrier, Enterprise and Consumer
Business units. It provides carrier's carrier voice, carrier's
carrier bandwidth, enterprise data and consumer voice services.
The Company owns and operates Internet protocol (IP) enabled
connectivity infrastructure, comprising over 280,000 kilometers of
fiber optic cable systems in India, the United States, Europe,
Middle East and the Asia Pacific region.

As reported in the Troubled Company Reporter-Asia Pacific on
May 10, 2019, The Economic Times said the National Company Law
Tribunal on May 9 allowed Reliance Communications (RCom) to exclude
the 357 days spent in litigation and admitted it for insolvency.
With this, RCom, which owes over INR50,000 crore to banks, has
become the first Anil Ambani group company to be officially
declared bankrupt after the NCLT on May 9 superseded its board and
appointed a new resolution professional to run it and also allowed
the SBI-led consortium of 31 banks to form a committee of
creditors.


RPG INDUSTRIAL: CRISIL Lowers Rating on INR15cr Cash Loan to B+
---------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of RPG Industrial
Product Private Limited (RPG) to 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.

                       Amount
   Facilities        (INR Crore)      Ratings
   ----------        -----------      -------
   Bank Guarantee          .5         CRISIL A4 (ISSUER NOT
                                      COOPERATING; Revised from
                                      'CRISIL A4+ ISSUER NOT
                                      COOPERATING')

   Cash Credit            15          CRISIL B+/Stable (ISSUER
                                      NOT COOPERATING; Revised
                                      from 'CRISIL BB+/Stable
                                      ISSUER NOT COOPERATING')

   Foreign Letter
   of Credit               1          CRISIL A4 (ISSUER NOT
                                      COOPERATING; Revised from
                                      'CRISIL A4+ ISSUER NOT
                                      COOPERATING')

   Term Loan               8.5        CRISIL B+/Stable (ISSUER
                                      NOT COOPERATING; Revised
                                      from 'CRISIL BB+/Stable
                                      ISSUER NOT COOPERATING')

CRISIL has been consistently following up with RPG for obtaining
information through letters and emails dated December 31, 2018 and
June 12, 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 RPG, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on RPG is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' category or lower'.

Based on the last available information, the ratings on bank
facilities of RPG Revised to be 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.

RPG was established in 2000 by Mr Rajiv Gupta and his brother, Mr
Sanjay Gupta. The company initially started with trading in
finished paper and until fiscal 2011 traded in waste paper. In
2011, the company ventured into manufacturing polyester staple
fibre from polyethylene terephthalate bottles, and operations
commenced in March 2013.


SATYAM (FAB) INDUSTRIES: CRISIL Cuts Rating on INR7.7cr Loan to B+
------------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Satyam (Fab)
Industries Private Limited (SFIPL) to 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.

                       Amount
   Facilities        (INR Crore)      Ratings
   ----------        -----------      -------
   Bank Guarantee          2.3        CRISIL A4 (ISSUER NOT
                                      COOPERATING; Revised from
                                      'CRISIL A4+ ISSUER NOT
                                      COOPERATING')

   Cash Credit             7.7        CRISIL B+/Stable (ISSUER
                                      NOT COOPERATING; Revised
                                      from 'CRISIL BB/Stable
                                      ISSUER NOT COOPERATING')

CRISIL has been consistently following up with SFIPL for obtaining
information through letters and emails dated December 31, 2018 and
June 12, 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 SFIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SFIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.

Based on the last available information, the ratings on bank
facilities of SFIPL Revised to be 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.

SFIPL was originally set up in 1980 as a proprietorship firm; the
firm was reconstituted as a private limited company with the
current name in 2010. It manufactures customised fabrication
assemblies such as transformer tanks, stator frames, and frames of
industrial machines used in the engineering and power industries.
Operations are handled by Mr. Sunil Kaushal, who has an industry
experience of more than 35 years, and his son, Mr. Rohit Kaushal.
The company has its own manufacturing facility in Bhopal, Madhya
Pradesh, with an installed capacity of 5000 tonnes per annum.


SENDOZ IMPEX: CRISIL Lowers Rating on INR22cr Cash Loan to B+
-------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Sendoz Impex
Limited (SIL; part of the Sendoz group) to 'CRISIL B+/Stable/CRISIL
A4 Issuer not cooperating'.

                       Amount
   Facilities        (INR Crore)      Ratings
   ----------        -----------      -------
   Bank Guarantee          6          CRISIL A4 (ISSUER NOT
                                      COOPERATING; Revised from
                                      'CRISIL A4+ ISSUER NOT
                                      COOPERATING')

   Cash Credit            22          CRISIL B+/Stable (ISSUER
                                      NOT COOPERATING; Revised
                                      from 'CRISIL BB+/Stable
                                      ISSUER NOT COOPERATING')

   Proposed Long Term      0.5        CRISIL B+/Stable (ISSUER
   Bank Loan Facility                 NOT COOPERATING; Revised
                                      from 'CRISIL BB+/Stable
                                      ISSUER NOT COOPERATING')

CRISIL has been consistently following up with SIL for obtaining
information through letters and emails dated December 31, 2018 and
June 12, 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 SIL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SIL is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' category or lower'.

Based on the last available information, the ratings on bank
facilities of SIL Revised to be 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of SIL and Sendoz Commercials Pvt Ltd
(SCPL). This is because the two companies, together referred to as
the Sendoz group, are in the same business, under a common
management, and have fungible cash flow.

Set up as a closely held public limited company in 1994 by Poddar
family, SIL trades in coal and provides liaison services for
companies with coal linkages. It has been in the coal industry
since 1972. SCPL also has similar operations. The Sendoz group
procures coal mainly through auctions from Coal India Ltd and its
subsidiaries against advance payment; a small proportion comes from
private miners. The group has 24 branch offices across major
coal-bearing areas, and its own stockyards for storage, processing,
and rake loading/unloading. Clientele comprises reputed public and
private sector entities.


SHAROFF STEEL: CRISIL Lowers Rating on INR19cr Cash Loan to B+
--------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Sharoff Steel
Traders (SST) to 'CRISIL B+/Stable Issuer not cooperating'.

                       Amount
   Facilities        (INR Crore)      Ratings
   ----------        -----------      -------
   Cash Credit             19         CRISIL B+/Stable (ISSUER
                                      NOT COOPERATING; Revised
                                      from 'CRISIL BB+/Stable
                                      ISSUER NOT COOPERATING')

CRISIL has been consistently following up with SST for obtaining
information through letters and emails dated December 31, 2018 and
June 12, 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 SST, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SST is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' category or lower'.

Based on the last available information, the ratings on bank
facilities of SST Revised to be 'CRISIL B+/Stable Issuer not
cooperating'.

Established in 1987, SST trades in various types of steel products
such as channels, hot-rolled (HR) plates, and HR coils. Operations
of the Bengaluru-based firm are managed by Mr. Anil Agarwal and his
family.


SHREE HAREKRISHNA: CRISIL Maintains B+ Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Shree Harekrishna
Cotton Industries - Jamnagar (SHKCI) continues to be 'CRISIL
B+/Stable Issuer not cooperating'

                       Amount
   Facilities        (INR Crore)      Ratings
   ----------        -----------      -------
   Cash Credit              6         CRISIL B+/Stable (ISSUER
                                      NOT COOPERATING)

   Cash Term Loan           1.5       CRISIL B+/Stable (ISSUER
                                      NOT COOPERATING)

   Proposed Long Term
   Bank Loan Facility       2.5       CRISIL B+/Stable (ISSUER
                                      NOT COOPERATING)

CRISIL has been consistently following up with SHKCI for obtaining
information through letters and emails dated December 31, 2018 and
June 12, 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 SHKCI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SHKCI is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.

Based on the last available information, the ratings on bank
facilities of SHKCI continues to be 'CRISIL B+/Stable Issuer not
cooperating'

Set up in 2014, SHKCI is a partnership firm promoted by the
Vasjaliya and Varsani families. The firm has started its commercial
operations from November 2014.


SHRIKISHAN AND COMPANY: CRISIL Cuts Rating on INR3cr Loan to B+
---------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Shrikishan And
Company Private Limited (SCPL) to 'CRISIL B+/Stable/CRISIL A4
Issuer not cooperating'.

                       Amount
   Facilities        (INR Crore)      Ratings
   ----------        -----------      -------
   Bank Guarantee          20         CRISIL A4 (ISSUER NOT
                                      COOPERATING; Revised from
                                      'CRISIL A4+ ISSUER NOT
                                      COOPERATING')

   Cash Credit              3         CRISIL B+/Stable (ISSUER
                                      NOT COOPERATING; Revised
                                      from 'CRISIL BB/Stable
                                      ISSUER NOT COOPERATING')

   Proposed Fund-
   Based Bank Limits        2         CRISIL B+/Stable (ISSUER
                                      NOT COOPERATING; Revised
                                      from 'CRISIL BB/Stable
                                      ISSUER NOT COOPERATING')

CRISIL has been consistently following up with SCPL for obtaining
information through letters and emails dated January 23, 2019 and
June 24, 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 SCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SCPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.

Based on the last available information, the ratings on bank
facilities of SCPL Revised to be 'CRISIL B+/Stable/CRISIL A4 Issuer
not cooperating'.

Incorporated in 2005 and promoted by Mr. Sharad Goyal, SCPL
constructs and maintains roads and bridges for government bodies in
Chhattisgarh. The company is registered as a class A contractor
with Public Works Department (PWD), Chhattisgarh.


SUSHIL BAHIRAT: CRISIL Lowers Ratings on INR35cr Loans to B+
------------------------------------------------------------
CRISIL has revised the ratings on bank facilities of Sushil Bahirat
Patil and Associates (SBPA) to 'CRISIL B+/Stable Issuer not
cooperating'.
  
                         Amount
   Facilities          (INR Crore)     Ratings
   ----------          -----------     -------
   Proposed Long Term         4        CRISIL B+/Stable (ISSUER
   Bank Loan Facility                  NOT COOPERATING; Revised
                                       from 'CRISIL BB-/Stable
                                       ISSUER NOT COOPERATING')

   Term Loan                 31        CRISIL B+/Stable (ISSUER
                                       NOT COOPERATING; Revised
                                       from 'CRISIL BB-/Stable
                                       ISSUER NOT COOPERATING')

CRISIL has been consistently following up with SBPA for obtaining
information through letters and emails dated February 26, 2019 and
June 12, 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 SBPA, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SBPA is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' category or
lower'.

Based on the last available information, the ratings on bank
facilities of SBPA Revised to be 'CRISIL B+/Stable Issuer not
cooperating'.

SBPA was set up in 2011 as a partnership firm by Mr Sushil Bahirat
Patil and his wife, Mrs Pritam Bahirat. The firm develops and
leases out commercial properties in Pune (Maharashtra).


SUZLON ENERGY: Misses Dollar Bond Payment Due July 16
-----------------------------------------------------
Anurag Joshi at Bloomberg News reports that Suzlon Energy Ltd.,
which became India's biggest convertible-note defaulter in 2012,
slumped in Mumbai after missing payments on dollar-denominated
convertibles due July 16.

Shares of the stressed wind-turbine maker fell as much as 8.6% in
trading on July 17 after missing a July 16 deadline to repay $172
million outstanding on the securities, according to Bloomberg.
While an earlier debt revamp helped the company's shares surge in
2014-2015, they've since slumped as increased competition has
diluted Suzlon's market share, Bloomberg says.

"The company is working on holistic solution for its debt and
continues to be in discussions with various stakeholders in
relation to its outstanding debt (including the bonds)," it said in
an exchange filing on July 16, Bloomberg relays. The company has a
seven-day grace period to honor the obligation, Bloomberg relates
citing people familiar with the matter, who aren't authorized to
speak publicly and asked not to be identified.

Bloomberg says the stumble at Suzlon adds to strains in India's
credit market, where investors are still reeling from a string of
defaults in the last year, from IL&FS Group to Cox & Kings Ltd. The
wind-turbine maker's bank facility ratings were cut to default by
Care Ratings in April after it failed to meet payback obligations
to its lenders, the report notes.

The company's shares pared losses to 3.9% and were trading at 4.47
rupees as of 2:22 p.m. on July 16 in Mumbai trading, according to
Bloomberg. Some traders in Suzlon's bonds have been pinning their
hopes on a proposed acquisition of the embattled company by
Toronto-based Brookfield Asset Management Inc., Bloomberg notes. A
person familiar with the matter said earlier in July that
Brookfield might make a binding offer for a stake in the company as
soon as July end, Bloomberg says.

Headquartered in Pune, India, Suzlon Energy Ltd (BOM:532667) --
http://www.suzlon.com/-- is engaged in the business of design,  
development, manufacturing and supply of wind turbine generators
(WTGs) of a range of capacities and its components. Its operations
relate sale of WTGs and allied activities, including sale/sub-lease
of land, infrastructure development income; sale of gear boxes, and
sale of foundry and forging components. Others primarily include
power generation operations.


T YADAMMA: CRISIL Assigns B+ Rating to INR4.22cr LT Loan
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the
bank facilities of T Yadamma And Others (TYAO).

                         Amount
   Facilities          (INR Crore)    Ratings
   ----------          -----------    -------
   Proposed Long Term
   Bank Loan Facility       4.22      CRISIL B+/Stable (Assigned)  
   

   Long Term Loan           2.50      CRISIL B+/Stable (Assigned)  
   

   Overdraft                3.28      CRISIL A4 (Assigned)      

The ratings reflect the firm's exposure to inherent risks in the
poultry industry and its modest scale. These weaknesses are
partially offset by the industry experience of the partners.

Key Rating Drivers & Detailed Description

Weaknesses

* Exposure to inherent risks in the poultry industry: The industry
is vulnerable to outbreak of diseases, which declines sales volume
and reduces selling price. Such diseases also have an impact on
production of healthy chicks. Further, the industry is also
affected by seasonal
demand, leading to volatility in product prices.

* Modest scale of operations: Business is constrained by the modest
scale of operations in the intensely competitive poultry industry.
The modest scale will continue to limit the firm's operating
flexibility.

* Below average financial risk profile: Financial risk profile
remains weak because of low networth of INR157 lakhs and high
gearing of over 3 times.

Strength
* Experience of the partners: Benefits from the partners'
experience of over 6 years in the industry, their understanding of
the dynamics of the market, and healthy relations with suppliers
and customers should continue to support the business.

Liquidity
Liquidity is adequate: cash accrual, expected at INR28 lakh per
annum over the medium term, should sufficiently cover yearly debt
obligation of INR20 lakh. Utilisation of bank lines - at 67% over
the 12 months through March 2019 - should remain low on account of
efficient working capital management.

Outlook: Stable

CRISIL believes TYAO will continue to benefit from the experience
of its partners. The outlook may be revised to 'Positive' if
improvement in revenue and profitability and significant equity
infusion strengthen the capital structure and financial risk
profile. The outlook may be revised to 'Negative' if decline in
revenue and profitability or any large capital expenditure weakens
financial risk profile, especially liquidity.

Set up in 2012, TYAO, a partnership concern of Mr T Yadamma, Mr
Keshava Reddy and others, is engaged in poultry and hatchery
business.




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

AGUNG PODOMORO: Moody's Reviews B2 CFR for Downgrade Due to Debt
----------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family
rating of Agung Podomoro Land Tbk (P.T.) to B2 from B1.

At the same time, Moody's has downgraded the backed senior
unsecured rating of the 2024 notes issued by APL Realty Holdings
Pte. Ltd., a wholly owned subsidiary of Agung Podomoro Land, to B2
from B1. The notes are guaranteed by Agung Podomoro Land and some
of its subsidiaries.

The outlook on all ratings was changed to ratings under review for
downgrade from negative.

RATINGS RATIONALE

"The review for downgrade reflects uncertainties around Agung
Podomoro Land's ability to refinance its debt maturities over the
next 12 months, and the company's lack of financial flexibility,
given that the majority of its investment properties, including
hotels, are encumbered," says Jacintha Poh, a Moody's Vice
President and Senior Credit Officer.

"The downgrade reflects Agung Podomoro Land's weak financial
management and its expectation that the company's operating
performance is unlikely to improve in 2019," adds Poh. "Agung
Podomoro Land's credit metrics will therefore likely remain weaker
than the thresholds set for a B1 ratings level."

Agung Podomoro Land obtained a term loan facility in May 2019 to
address the maturity of its outstanding IDR1.3 trillion bonds over
the next 12 months. The company has used part of the loan facility
to refinance its IDR750 billion bond that matured on June 6, 2019.
However, Moody's understands that the availability of funds to
refinance the remaining IDR550 billion bonds (IDR491 billion due in
December 2019 and IDR99 billion due in March 2020) is now
uncertain.

The company's refinancing risk is exacerbated by the maturity of
its IDR1.3 trillion syndicated loan facility. The company is
unable, at this point, to share concrete refinancing plans.

Moody's expects Agung Podomoro Land's credit metrics will remain
weak over the next 12-18 months, with adjusted debt/homebuilding
EBITDA at more than 5.0x and homebuilding EBIT/interest expense at
less than 1.5x, because the company is unlikely to achieve (1)
around IDR3 trillion of core marketing sales in 2019 and 2020; and
(2) conclude the IDR2.5 trillion of industrial land sale at its
Podomoro Industrial Park in Karawang, Greater Jakarta.

Agung Podomoro Land plans to sell one of its investment properties
in the second half of 2019, and use part of the proceeds to reduce
debt. However, the sale is subject to delays and will not support a
sustained improvement in the company's credit metrics.

With respect to Environmental, Social and Governance risks, Moody's
has considered Agung Podomoro Land's weak financial management. The
company also has concentrated ownership by its founder and his
family, but this risk is partially mitigated by the oversight
exercised through independent board directors.

Moody's review will focus on Agung Podomoro Land's ability to
provide a clear and concrete refinancing plan for upcoming
maturities over the next 12-18 months. The lack of such a plan
could lead Moody's to further downgrade the ratings over the next
one to two months.




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

[*] Japan Corporate Bankruptcies Fell to 29-year Low in 1H 2019
---------------------------------------------------------------
The Japan Times, citing Tokyo Shoko Research Ltd., that the number
of corporate bankruptcies in Japan in the January-June period fell
3.7 percent from a year earlier to 3,991, down for the 10th
consecutive first-half period and hitting the lowest level in 29
years.

Total liabilities left by the failed businesses came to JPY762.360
billion, up 2.1 percent, the credit research firm said on July 8,
the Japan Times relays.

The survey covered failures of companies with liabilities of JPY10
million or more, the report says.

The Japan Times relates that despite the decline in the number of
bankruptcies, Tokyo Shoko Research noted that services providers
including restaurants, as well as transport companies, are
struggling with higher manpower costs due to the labor shortage.

The rise in total liabilities, meanwhile, mainly reflected the
collapse of MT Picture Display Co., a Kadoma, Osaka
Prefecture-based cathode-ray tube subsidiary of Panasonic Corp.
with debts of a little over JPY100 billion, the report notes.

The number of companies that went under with liabilities of JPY1
billion or more came to 88, the fewest in 30 years, the report
discloses.

In June alone, 734 businesses went bankrupt, up 6.3 percent year on
year, leaving liabilities of JPY86.957 billion, down 60.3 percent.

A Tokyo Shoko Research official said the first rise in a decade in
combined reserves for possible loan losses at 111 banks in the last
business year suggests a "changing trend" in the attitudes of
banks, which had been willing to accept debt-rescheduling requests
to help prevent bankruptcies, the Japan Times adds.




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

CRYPTOPIA LTD: Co-Founder Blames Ex-Shareholder for Problems
------------------------------------------------------------
Susan Edmunds at Stuff.co.nz reports that details of a scrap
between the failed cryptocurrency exchange Cryptopia and a major
shareholder are spilling into public, with one of the business'
founders unleashing over his version of the dispute.

Cryptopia collapsed in January after an estimated NZ$23 million
worth of assorted cryptocurrencies held in its exchange were hacked
and stolen, Stuff recalls. Police cyber crime experts have
investigated what would rate as one of New Zealand's biggest ever
thefts but no arrests have been made.

Stuff relates that the Christchurch-based trading platform has
since been placed into liquidation, with co-founder Rob Dawson
blaming major shareholder Intranel for decisions and actions which
destabilised the business before the hack was discovered. His
claims have been vigorously denied by Intranel, the report says.

Intranel is another Christchurch-based tech company, and Mr.
Dawson's partner at Cryptopia, Adam Clark, had worked there
previously, the report notes. Intranel provided crucial support to
Cryptopia as it rapidly grew in popularity with cryptocurrency
traders using its platform.

"After the beginning of 2017, when things really started to kick
off and we started experiencing exponential growth at a scary pace,
we started to take Intranel's offers more seriously as neither of
us identified ourselves as businessmen and only wanted to continue
doing the development and innovation work we were already doing,"
Mr. Dawson said in an online post, according to Stuff.

"Intranel made us an offer that for 20 per cent [of Cryptopia],
they would handle all of the business management and development,
things like helping hiring and managing staff, paying tax, lobbying
for regulator guidance, all the 'boring business stuff', and that
they would contract us out four of their [full-time employees] a
discounted rate while they helped us find and hire staff of our
own."

However, Mr. Dawson now claims that Intranel charged Cryptopia
"exorbitant" fees for its staff, while his business found itself
increasingly reliant on Intranel to keep operating.

He said Intranel then used that influence to demand another 5 per
cent of Cryptopia shares from him, taking its total holding to just
over 25 per cent - which, given the spread of share parcels among
other parties, effectively prevented the 75 per cent shareholder
vote needed for major transactions it didn't agree with, Stuff
relates.

Among various allegations and claims, Mr. Dawson has been airing
have been concerns about Intranel billing Cryptopia for projects
and costs which he considered had not been approved or agreed to.
Mr. Dawson has provided Stuff with copies of invoices which suggest
Intranel was billing it hundreds of thousands of dollars for
various services - mostly staff costs but including NZ$71,000 for
"tax costs incurred on Christmas bonus payments".

According to Stuff, Mr. Dawson said Cryptopia had decided to "get
rid of" Intranel before the hack was discovered.

Lawyers for Cryptopia argued last year that there had not been an
appropriate partnership document between the two entities, because
there was no Cryptopia contribution into the development of the
partnership discussion document, Mr. Dawson said, Stuff relays.

The two parties parted ways in November, with Mr. Dawson claiming
that the other major shareholders had told Intranel to "get out".

Stuff relates that Dave Sanders, managing director of Intranel,
said he "absolutely refuted" the allegations made and that they
were factually incorrect.

"We have already provided documentation that supports this to both
the police and the liquidators.  We note part of the liquidator's
responsibility is to investigate any claims of wrongdoing or fraud
within the business, which we welcome and support fully," the
report quotes Mr. Sanders as saying.

"Intranel has not provided services to Cryptopia since the
beginning of November 2018 and before the issue that led to the
company's liquidation. The term of the original services agreement
between the two companies ended on October 1, 2018, and wasn't
renewed.  No-one associated with Intranel has ever been a director
of Cryptopia, or held a C-level role.

"The focus should now be on the customers and creditors of
Cryptopia receiving what they are owed and what is currently tied
up in the company."

Minutes sighted from Cryptopia meetings indicate confusion about
the business' accounts.

Mr. Dawson told Stuff he had received no updates from the police
since before the company was placed into liquidation.

Stuff says the first report from liquidators Grant Thornton into
Cryptopia's failure, pointed to problems with the business prior to
the hack.

It said the rapid growth of cryptocurrency in early 2018 meant the
company scaled-up to manage the increased level of trading. It had
entered into a number of long-term, high-cost contracts to pay for
infrastructure.

"Unfortunately trade volumes, from which the company earned its
revenue, reduced significantly through late 2018."

The liquidators have indicated it will take many months to unravel
the true state of Cryptopia's finances, with the exchange and all
remaining cryptocurrencies held in it frozen indefinitely, adds
Stuff.

                     About Cryptopia Limited

Cryptopia Limited -- https://support.cryptopia.co.nz/csm --
is a cryptocurrency exchange based in New Zealand.

On May 15, 2019, David Ruscoe and Russell Moore from Grant Thornton
were appointed as liquidators to wind up the company's affairs.

Cryptopia Limited filed a Chapter 15 petition (Bankr. S.D. New York
Case No. 19-11688) on
May 24, 2019.  Timothy E. Graulich, Esq., Davis Polk & Wardwell
LLP, in New York, is the U.S. counsel.




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

AVATION PLC: Fitch Affirms BB- LongTerm IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Ratings of
Avation PLC and its subsidiaries, Avation Capital S.A. and Avation
Group Pte. Ltd., at 'BB-'.  Fitch has also affirmed Avation Capital
S.A.'s unsecured notes rating at 'BB-'.  The Outlook is Stable.

These actions are being taken in conjunction with a broader
aircraft leasing industry peer review conducted by Fitch, which
includes nine publicly rated firms.

KEY RATING DRIVERS

The IDR reflects Avation's limited economies of scale and high
aircraft concentration in terms of aircraft type when compared with
larger lessors; the presence of turboprops in the portfolio, which
Fitch regards as niche aircraft; higher exposure to lower
credit-quality lessees; elevated balance sheet leverage as measured
by gross debt/tangible common equity; a primarily secured funding
profile; and the limited operating track record compared to other
higher rated lessors.

The rating is balanced by the company's relatively young average
fleet age of 3.6 years (excluding finance leases) as of end-March
2019, supportive demand dynamics for the majority of Avation's
fleet, solid profitability and measured fleet growth, which Fitch
expects to persist over the next 12 months.

Rating constraints applicable to the aircraft leasing industry more
broadly include: the monoline nature of the business; vulnerability
to exogenous shocks; potential exposure to residual value risk;
sensitivity to oil prices; reliance on wholesale funding sources;
and increased competition.

Avation is one of the largest lessors of ATR turboprops in the
Asia-Pacific region. The company has diversified its aircraft fleet
over the years to a fleet makeup of 35% (based on net book value)
regional aircraft, 43% narrowbody and 22% widebody, but the
portfolio remains small and concentrated by aircraft types compared
with other higher-rated peers.

Avation's franchise is established mainly within the Asia-Pacific
and European airline markets, and the company has grown its
portfolio and increased its customer base to 17 airlines in 2019.
The concentration and exposure to a single lessee, Virgin
Australia, has declined to around 20% in 2019 from 60% in 2015, but
is still considered high compared with larger peers.

Still, Fitch believes that Avation's ATR turboprops benefit from
improved fuel efficiency and lower risk of technological changes
than jet aircraft, due to the use of propeller engines, which may
reduce residual value risk.  Lease rates for turboprops have been
relatively consistent through economic cycles, while residual
values of ATR 72 models have been more resilient than the widely
utilised aircraft types in the Boeing 737 and Airbus A320 families
in light of limited supply but broad demand for short-haul routes.
These dynamics supported Avation's 100% utilisation rate.

Avation's leverage, as measured by gross debt/tangible common
equity, was 4.1x in 2018, and is expected to decline to 3.5x-4.0x
in the near-term due to equity built from capital retention and
debt amortisation. The company's reliance on secured funding has
declined after it raised senior unsecured notes in 2018 to repay
certain junior and senior secured loans. This increased the level
of its unsecured debt and improved Avation's financial flexibility.
The secured debt paydown also enabled Avation to unencumber a pool
of narrowbody and regional aircraft. Unsecured debt accounted for
around 36% of total debt as of end-2018, compared with 18% at
end-June 2017.

Management depth and experience are acceptable for a company of
Avation's scale, with a high reliance on its founder and executive
chairman, Jeff Chatfield, who has a long track record in the
airline and aircraft-leasing business.

The unsecured debt rating is equalised with the company's IDR,
reflecting Fitch's expectation of average recoveries for the senior
unsecured debtholders under a stress scenario. Avation has an
unencumbered pool of approximately USD137 million as of end-2018.

The Stable Outlook reflects Fitch's assessment that while Avation
benefits from supportive demand dynamics for its fleet, modest
diversification and increasing unsecured debt, the ratings remain
constrained by Avation's limited economies of scale when compared
with larger lessors, elevated leverage, primarily secured funding
profile and evolving aircraft portfolio. These supportive elements
of the Stable Outlook are counterbalanced by Fitch's expectation of
longer-term normalisation of aircraft-leasing market conditions,
including the potential for increases in airline bankruptcies,
further aircraft repossessions, reduced financing availability or
increased financing costs.

RATING SENSITIVITIES

Fitch does not expect upward rating momentum to emerge over the
near term. However, Avation's ratings over the long-term could be
positively influenced by improved scale efficiencies, leverage
approaching 3.0x, increased utilisation of unsecured funding
sources and continued demonstration of residual-value risk
management. Fitch would also regard as positive improved fleet,
geographic or lessee diversification, provided such actions are
undertaken at a moderate pace and do not adversely affect
underwriting or pricing terms.

The ratings could be adversely affected by the credit deterioration
of underlying lessees, particularly those that represent a
meaningful portion of Avation's portfolio, which could result in
lower revenue yields and the need to redeploy aircraft. Factors
that could also lead to negative rating momentum include
maintenance of leverage above 4.0x; rapid expansion that is not
accompanied by consistent underwriting standards and commensurate
growth in capital levels and staffing; deterioration in residual
value realisations; or an inability to successfully navigate market
downturns.

The rating assigned to the senior unsecured debt is equalised with
the company's Long-Term IDR and is likely to move in tandem.
However, the unsecured debt rating could be notched below Avation's
IDR should secured debt increase as a percentage of total debt such
that the unencumbered pool contracts and expected recoveries on the
senior unsecured debt were adversely affected.


HYFLUX LTD: Says SGD535-Mil. Rescue Deal is Utico's Valuation
-------------------------------------------------------------
Vivienne Tay at The Business Times reports that Hyflux Ltd said on
July 17 that it has sought clarification from potential white
knight Utico regarding a statement it had made on July 16 valuing
its rescue deal at SGD535 million.

In a regulatory update, the embattled water treatment company
clarified that the SGD300 million equity injection and SGD100
million shareholder loan, along with Utico's current intention to
offer the cash equivalent of 4 per cent stake in the enlarged Utico
group "has not changed," BT relates.

These were the terms stated in a July 11 joint announcement by both
Hyflux and UAE utility Utico, which said at the time that both
parties were still working towards a binding agreement, the report
says.

According to the report, Hyflux said that Utico had assessed the
deal value of its proposed investment as SGD535 million, further to
discussions between Utico, relevant stakeholders and definitive
agreements being entered into between both parties. This amount
also assumes all approvals are obtained and the current commercial
terms being negotiated with creditors are accepted.

"The company is in continued talks with Utico and stakeholders and
material developments will be announced on SGXNet as appropriate,"
Hyflux added.

On July 16, Utico said that the equity valuation of Hyflux is set
at SGD340 million and that the total deal value could be SGD535
million, higher than an earlier failed deal of SGD530 million that
SM Investments (SMI) had proposed, BT reports.

According to the report, Utico's proposed investment, which is
subject to regulatory and other approvals if the deal materialises,
includes a SGD400 million commitment to Hyflux to ensure it remains
a going concern and also to grow the business, along with further
commitment to the PNP shareholders.

Hyflux will remain as a separate listed company with Utico owning
88 per cent, the Utico's statement said.

BT adds that Utico chief executive Richard Menezes also said that
the investment would place both companies with their joint
capabilities and abilities in a stronger position, while creating
synergies for cost savings and new offerings.

                           About Hyflux

Singapore-based Hyflux Ltd -- https://www.hyflux.com/ --
provides various solutions in water and energy areas worldwide. The
company operates through two segments, Municipal and Industrial.
The Municipal segment supplies a range of infrastructure solutions,
including water, power, and waste-to-energy to municipalities and
governments. The Industrial segment supplies infrastructure
solutions for water to industrial customers.  It employs 2,300
people worldwide and has business operations across Asia, Middle
East and Africa.

As reported in the Troubled Company Reporter-Asia Pacific on May
24, 2018, Hyflux Ltd. said that the Company and five of its
subsidiaries, namely Hydrochem (S) Pte Ltd, Hyflux Engineering Pte
Ltd, Hyflux Membrane Manufacturing (S) Pte. Ltd., Hyflux Innovation
Centre Pte. Ltd. and Tuaspring Pte. Ltd. have applied to the High
Court of the Republic of Singapore pursuant to Section 211B(1) of
the Singapore Companies Act to commence a court supervised process
to reorganize their liabilities and businesses.

The Company said it is taking this step in order to protect the
value of its businesses while it reorganises its liabilities.

The Company has engaged WongPartnership LLP as legal advisors and
Ernst & Young Solutions LLP as financial advisors in this process.



                           *********


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
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

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mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
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