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

                     A S I A   P A C I F I C

          Wednesday, February 5, 2020, Vol. 23, No. 26

                           Headlines



A U S T R A L I A

BRAND NEW: First Creditors' Meeting Set for Feb. 12
CABLE BEACH: Second Creditors' Meeting Set for Feb. 12
CBCH GROUP: Collapses Into Voluntary Administration
CBCH Group: First Creditors' Meeting Set for Feb. 12
DINNER BY HESTON: Underpaid Staff by More Than AUD4MM

INTERSTAR MILLENIUM 2004-5: Fitch Affirms Bsf Rating on Cl. B Debt
LATITUDE AUSTRALIA: Moody's Rates AUD31.5MM Class E Notes (P)Ba2
PEPPER SPARKZ 2: Fitch Assigns Final BB-sf Rating to Class F Notes
RADFORD SUPPLIES: First Creditors' Meeting Set for Feb. 12
SARGON CT: First Creditors' Meeting Set for Feb. 13



C H I N A

KANGMEI PHARMACEUTICAL: Defaults on Payments of US$340MM of Bonds
SICHUAN LANGUANG: Moody's Assigns B1 CFR, Outlook Stable


H O N G   K O N G

HONG KONG: Recession Deepens, GDP Shrinks 0.4% in Q4 of 2019


I N D I A

AIR INDIA: Tatas, Singapore Airlines Move Closer to Make Joint Bid
AUTOMARK INDUSTRIES: Ind-Ra Cuts Rating to BB+, Non-Cooperating
AUTOMARK TECHNOLOGIES: Ind-Ra Cuts Rating to BB+, Non-Cooperating
BABA BHUMAN: ICRA Maintains 'B' Rating in Not Cooperating
BALASON TEA: ICRA Lowers Rating on INR6.55cr Loan to B-

BMSS STEEL: Ind-Ra Lowers LT Issuer Rating to 'B+', Outlook Stable
CARAMIA GRANITO: ICRA Reaffirms B+ Rating on INR19.5cr Loan
CHANDAN TEA: ICRA Maintains 'B-' Rating in Not Cooperating
CHENNAI WATER: Ind-Ra Moves D Bank Loan Rating to Non-Cooperating
DCR INFRA: ICRA Maintains 'D' Rating in Not Cooperating

DHIRENDRA NARAYAN: ICRA Maintains B Rating in Not Cooperating
GEMSTONE CERAMIC: ICRA Reaffirms B Rating on INR6.80cr Loan
GOVERDHAN VERMA: ICRA Maintains 'B+' Rating in Not Cooperating
GUPTA SOLVENT: ICRA Maintains 'B+' Rating in Not Cooperating
HALLMARK STEEL: ICRA Lowers Rating on INR6.66cr Loan to B+

IVRCL INDORE: Ind-Ra Moves D Bank Loan Rating to Non-Cooperating
JALPAIGURI DUARS: ICRA Maintains B- Rating in Not Cooperating
KISHORE INFRASTRUCTURES: ICRA Cuts Rating on INR4cr Loan to B+
KRISHNA SAHAKARI: Ind-Ra Assigns 'B' Bank Loan Rating
KUMARAPALAYAM TOLLWAYS: Ind-Ra Affirms 'D' Bank Loan Rating

L&T HALOL: ICRA Maintains 'D' Rating in Not Cooperating Category
LEMOSA TILES: ICRA Migrates 'B+' Rating to Not Cooperating
LOOCUST INCORP: Ind-Ra Affirms Then Withdraws 'D' LT Issuer Rating
M S RAMAIAH: ICRA Raises Rating on INR20cr LT Loan to B+
MATRIX CERAMIC: ICRA Maintains B+ Rating in Not Cooperating

MODEL TANNERS (INDIA): Ind-Ra Cuts LT Rating to BB, Outlook Stable
MODEL TANNERS (MT): Ind-Ra Lowers LT Rating to BB-, Outlook Stable
NAYARA ENERGY: Moody's Downgrades CFR to Ba3, Outlook Negative
NBM IRON: ICRA Maintains 'B-' Rating in Not Cooperating
PRIME LUMBERS: ICRA Maintains 'B-' Rating in Not Cooperating

RAJARATNA MILLS: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
REPUTE FOODS: ICRA Maintains 'B' Rating in Not Cooperating
RESOURCE WORLD: Insolvency Resolution Process Case Summary
S.S. INFRAZONE: Ind-Ra Affirms BB LT Issuer Rating, Outlook Stable
SALEM TOLLWAYS: Ind-Ra Affirms 'D' Bank Loan Rating

SAURABH AGROTECH: ICRA Cuts Rating on INR33cr LT Loan to B+
SHAKTI POLYTEX: ICRA Maintains 'D' Rating in Not Cooperating
SHRI VASANTHRAJ: ICRA Hikes Rating on INR8cr Loans to 'B'
SRI BUCHIYYAMMA: ICRA Moves 'B+' Rating to Not Cooperating
SYNNOVA CERAMIC: ICRA Lowers Rating on INR3.43cr Loan to B-

TCS AND ASSOCIATES: ICRA Cuts Rating on INR39.29cr Loan to B+
UNIVERSAL INDIA: ICRA Maintains 'B' Rating in Not Cooperating
V.P.S. TEXTILES: ICRA Hikes Rating on INR8cr Loans to 'B'
VALENCIA CERAMIC: ICRA Cuts Rating on INR4.0cr Loan to B+
VINAYAK COTTEX: ICRA Maintains 'B' Rating in Not Cooperating

VISHWARAJ SUGAR: Ind-Ra Cuts LT Issuer Rating to BB, Outlook Neg.
YASHVEER CERAMIC: ICRA Keeps 'B' Rating in Not Cooperating


I N D O N E S I A

ALAM SUTERA: Moody's Downgrades CFR to B3, Outlook Negative
PERUSAHAAN GAS: S&P Revises SACP to 'bb+', Outlook Stable


N E W   Z E A L A N D

CASINO BAR: Inland Revenue Seeks to Liquidate Company
CBL CORP: Two Defendants Plead Not Guilty, Opt for Jury Trial
MARAC INSRANCE: Fitch Downgrades IFS Rating to BB+, Outlook Stable


S I N G A P O R E

HYFLUX LTD: Aqua Munda Again Extends Deadline for Debt Buyout


V I E T N A M

ASIA COMMERCIAL: Fitch Upgrades LT IDR to B+, Outlook Stable
MILITARY COMMERCIAL: Fitch Affirms B+ LT IDR, Outlook Stable
VIETCOMBANK: Fitch Affirms BB- LT IDR, Outlook Positive
VIETINBANK: Fitch Affirms BB- LT IDR, Outlook Positive

                           - - - - -


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

BRAND NEW: First Creditors' Meeting Set for Feb. 12
---------------------------------------------------
A first meeting of the creditors in the proceedings of Brand New
Media Pty Ltd will be held on Feb. 12, 2020, at 11:00 a.m. at the
offices of DW Advisory, Level 2, at 32 Martin Place, in Sydney,
NSW.

Ronald John Dean-Willcocks and Anthony Wayne Elkerton of DW
Advisory were appointed as administrators of Brand New Media on
Feb. 3, 2020.

CABLE BEACH: Second Creditors' Meeting Set for Feb. 12
------------------------------------------------------
A second meeting of creditors in the proceedings of Cable Beach
Operations Pty Ltd, trading as Kimberley Sands Resort & Spa, has
been set for Feb. 12, 2020, at 2:00 p.m. at Level 13, 664 Collins
Street, in Docklands, 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 Feb. 11, 2020, at 4:00 p.m.

Andrew Reginald Yao and Gess Michael Rambaldi of Pitcher Partners
were appointed as administrators of Cable Beach on Jan. 7, 2019.

CBCH GROUP: Collapses Into Voluntary Administration
---------------------------------------------------
Matthew Elmas at SmartCompany reports that in what is just the
latest national retailer to fall over this year, CBCH Group, which
trades under the Colette Hayman banner, appointed Vaughan
Strawbridge, Sam Marsden and Jason Tracy of Deloitte Restructuring
Services on Feb. 4.

The business, which is split across five separate companies, has
140 stores across Australia and New Zealand and more than 300
staff, SmartCompany discloses.

According to SmartCompany, booking about AUD140 million in gross
annual sales, CBCH Group has become just the latest high profile
example of Australia's retail reckoning.

Others, including department store Harris Scarfe, fashion chain
Jeanswest and Co-op Bookshops have also collapsed in recent months
as a difficult consumer environment compounds with rising
commercial rents and international competition.

"Colette By Colette Hayman has, unfortunately, been impacted by the
current weak retail environment, as have many others," the report
quotes Mr. Strawbridge as saying in a statement on Feb. 4.

"Our focus is on continuing to trade the business while we seek
either a recapitalisation of the group or a sale of the business.

"Given the strength of the brand we are confident we will be able
to secure a future for the business and preserve the employment of
as many people as possible."

SmartCompany relates that Mr. Strawbridge said he was "confident"
there were sufficient assets to meet all employee entitlements,
while gift cards will also continue to be honored.

Founded in 2010 by husband-and-wife duo Colette and Mark Hayman,
the eponymous chain built a national presence over the last decade
selling affordable handbags, jewellery and other accessories
inspired by high-end fashion trends.  There are currently 126
Colette Hayman stores trading in Australia and 14 in New Zealand.

CBCH Group: First Creditors' Meeting Set for Feb. 12
----------------------------------------------------
A first meeting of the creditors in the proceedings of:

   -- CBCH Group Pty Ltd
   -- CBCH Australia Pty Ltd
   -- CBCH Buying Co Pty Ltd
   -- Colette International Pty Ltd (Administrators

will be held on Feb. 12, 2020, at 1:30 p.m. at Level 1, 33 Erskine
Street, in Sydney, NSW.

Vaughan Neil Strawbridge, Sam Marsden, and Jason Tracy of Deloitte
were appointed as administrators of CBCH Group, et al. on Jan. 31,
2020.

DINNER BY HESTON: Underpaid Staff by More Than AUD4MM
-----------------------------------------------------
Nicole Asher at ABC News reports that Dinner by Heston, which
operates out of Melbourne's Crown Resort, charged up to AUD295 per
head for its "immersive experience" degustation meals.

ABC relates that the leaked creditors' report, compiled by
provisional liquidators BRI Ferrier, details debts of nearly AUD8
million, the majority of which is owed to workers.

"The major financial issue confronting the company is the
underpayment of employee entitlements over a period of four years
from commencement of business until circa June 2019, when the
employment arrangements were changed to comply with employment
legislation," the report, as cited by ABC, said.

Employees of Dinner by Heston were underpaid more than AUD4 million
in wages and another AUD435,000 in entitlements, according to ABC.

"We have been informed that the blueprint for the retainer of the
majority of staff was initially established by a Crown employee,"
the creditors' report read.  "The blueprint was applied over
several years and resulted in the underpayment of employee wages.

"The company self-reported the under-payments to the Fair Work
Ombudsman."

According to ABC, the United Workers Union (UWU) has slammed the
restaurant and Crown for ripping off workers and demanded the
resort take on the responsibility for the wage-theft debt.

"We have requested that Crown repay all unpaid wages and
entitlements owed to our members -- and offer employment to these
members as well as sponsoring those who are on temporary visas,"
ABC quotes UWU national president Jo-anne Schofield as saying.

ABC says BRI Ferrier reported Dinner by Heston was "best described
as a joint venture" between Crown and the restaurant's parent
company Tipsy Cake, registered in Saint Kitts and Nevis in the
Caribbean.

Despite carrying the celebrity chef's name, the restaurant is not
owned by Blumenthal, ABC states.

Crown was charged an annual licensing fee of 1 million pounds
(AUD1.93 million) for the right to house the luxury eatery but the
company has rejected the suggestion it is in a joint venture with
Tipsy Cake, ABC notes.

ABC adds that a Crown spokeswoman said in a statement that Dinner
by Heston was a tenant, it employed its own staff and was
responsible for its own operations.

"Tipsy Cake has asked the court to appoint a liquidator, on the
basis that it is insolvent. In these circumstances, including
ongoing substantial unpaid expenses to Crown, Crown has taken steps
to bring the tenancy to an end," she said.

"While this is disappointing, Crown is working to provide
assistance to Tipsy Cake employees looking for employment within
Crown. The provisional liquidator of Tipsy Cake, however, will need
to deal with employee matters at the first instance."

On its website, Dinner by Heston calls itself "one of the world's
most exciting restaurants" taking "creative inspiration from our
historic and nostalgic culinary past".

ABC relates that Ms. Schofield said: "Crown used the celebrity of
Heston Blumenthal as a drawcard to lure big-spending customers, who
stayed in Crown's hotels and gambled at its casino".

"Crown continued backing Dinner by Heston through the joint venture
that saw them pay rent of only AUD1 a year and a million pounds a
year sent overseas in an intellectual property deal.

"Meanwhile hospitality workers are owed up to AUD35,000, after
working 80 to 90-hour weeks.

"There are workers who face losing sponsored visa status and being
forced to leave the country, because of Crown's move to now evict
Dinner by Heston."

This latest revelation follows action taken by the Fair Work
Ombudsman last year after the suspected multi-million-dollar wage
theft was revealed, adds ABC.

INTERSTAR MILLENIUM 2004-5: Fitch Affirms Bsf Rating on Cl. B Debt
------------------------------------------------------------------
Fitch Ratings affirmed 26 note classes from nine Challenger and
Interstar transactions. These transactions are securitizations of
Australian conforming residential mortgages originated through a
network of mortgage originators and brokers under the Challenger
Millennium Trust and Interstar Millennium Trust Securitization
programs. The notes are issued by Perpetual Trustees Victoria
Limited in its capacity as trustee.

RATING ACTIONS

Interstar Millennium Series 2004-5 Trust

Class AB AU300INTA032; LT AAAsf Affirmed; previously at AAAsf

Class B AU300INTA040;  LT Bsf Affirmed;   previously at Bsf

Interstar Millennium Series 2005-2L Trust

Class A1 46071TAA1;    LT AAAsf Affirmed; previously at AAAsf

Class A2 AU300INTC012; LT AAAsf Affirmed; previously at AAAsf

Class AB AU300INTC020; LT Asf Affirmed;   previously at Asf

Class B AU300INTC038;  LT Bsf Affirmed;   previously at Bsf

Interstar Millennium Series 2005-3E Trust

Class AB AU300INTD010; LT AAAsf Affirmed; previously at AAAsf

Class B AU300INTD028;  LT Bsf Affirmed;   previously at Bsf

Interstar Millennium Series 2006-1 Trust

Class A AU300INTE018;  LT AAsf Affirmed;  previously at AAsf

Class AB AU300INTE026; LT BBBsf Affirmed; previously at BBBsf

Class B AU300INTE034;  LT Bsf Affirmed;   previously at Bsf

Interstar Millennium Series 2006-2G Trust

Class A1 USQ49677AA73; LT AAsf Affirmed;  previously at AAsf

Class A2 USQ49677AB56; LT AAsf Affirmed;  previously at AAsf

Class AB AU0000INBHC6; LT BBBsf Affirmed; previously at BBBsf

Class B AU0000INBHD4;  LT Bsf Affirmed;   previously at Bsf

Interstar Millennium Series 2006-3L Trust

Class A2 AU0000INNHB3; LT AAAsf Affirmed; previously at AAAsf

Class AB AU0000INNHC1; LT Asf Affirmed;   previously at Asf

Class B AU0000INNHD9;  LT Bsf Affirmed;   previously at Bsf

Interstar Millennium Series 2006-4H Trust

Class A2 AU3FN0000816; LT Asf Affirmed;  previously at Asf

Class AB AU3FN0000824; LT BBsf Affirmed; previously at BBsf

Class B AU3FN0000832;  LT Bsf Affirmed;  previously at Bsf

Challenger Millennium Series 2007-1E

Class AB XS0280787226; LT AAAsf Affirmed; previously at AAAsf

Class B XS0280788976;  LT Bsf Affirmed; previously at Bsf

Challenger Millennium Series 2007-2L

Class A AU0000CHUHA5;  LT AAAsf Affirmed; previously at AAAsf

Class AB AU0000CHUHB3; LT Asf Affirmed;   previously at Asf

Class B AU0000CHUHC1;  LT Bsf Affirmed;   previously at Bsf

KEY RATING DRIVERS

Operational Risk: Advantedge Financial Services Pty Ltd
(Advantedge) is the servicer for these transactions. Advantedge is
part of the National Australia Bank Group and has extensive
experience in servicing and managing its mortgage portfolio,
mitigating the transactions' operational risk. Advantedge's
collection timelines, policies and procedures relating to mortgage
collection are largely in line with those of other Australian
conforming mortgage lenders.

Asset Analysis: The asset model was not re-run for all the
transactions, in accordance with Fitch's criteria, as the notes are
rated at the highest possible level (AAAsf or non-model rated cap),
asset composition and performance have not deteriorated materially
since the last asset model analysis, and there have been no
material changes to asset assumptions since the last asset model
analysis.

As of 30 November 2019, 30+ days arrears for all transactions were
above the 3Q19 Dinkum RMBS Index of 1.07%. Arrears for the
transactions, as a percentage, tend to be volatile due to the small
size of the pools, but arrears balances have remained stable over
the past year. 30+ days arrears ranged from 5.0% (Interstar
Millennium Series 2005-3E Trust) to 12.5% (Interstar Millennium
Series 2005-2L Trust).

High arrears have not translated to high level of losses. Losses
have remained low for the transactions ranging from 0.42%
(Interstar Millennium Series 2006-1 Trust) to 1.96% (Interstar
Millenium Series 2006-4H Trust). All loans in the underlying
portfolios have 100% lenders' mortgage insurance (LMI) in place,
provided mainly by QBE Lenders' Mortgage Insurance Limited (Insurer
Financial Strength (IFS) Rating: A+/Stable) and Genworth Financial
Mortgage Insurance Pty Limited (IFS Rating: A+/Negative). All
losses are covered by LMI or excess spread.

Liability Analysis: Cash flow analysis was not performed for all
transactions as all rated notes are rated at the highest possible
level (AAAsf or non-model rated cap), cash flow distributions have
been within Fitch's expectations and there have been no material
changes to cash flow assumptions since the last cash flow model
analysis.

There have been no changes to foreign-exchange swap margins or
applicable foreign-exchange stresses and no significant changes to
transaction structures or asset performance since the May 2016 cash
flow assessment. Therefore, a full assessment of transaction cash
flows was not completed on any of the reviewed transactions.
Challenger Millennium Series 2007-1E, Interstar Millennium Series
2005-2L Trust and Interstar Millennium Series 2006-2G Trust are
exposed to foreign-currency risk in the event that the Euribor or
US dollar Libor turns negative and these trusts have to make
additional payments to the currency-swap provider in the relevant
foreign currency. Excess spread is likely to be sufficient to cover
any payments due by these trusts.

Macroeconomic Factors: Fitch expects stable mortgage performance,
supported by sustained economic expansion in Australia, with a GDP
growth forecast of 2.3% for 2020, a steady labour market and a low
interest-rate environment.

RATING SENSITIVITIES

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


USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

LATITUDE AUSTRALIA: Moody's Rates AUD31.5MM Class E Notes (P)Ba2
----------------------------------------------------------------
Moody's Investors Service assigned provisional ratings to notes to
be issued by Perpetual Corporate Trust Limited, as trustee of
Latitude Australia Personal Loans Series 2020-1 Trust.

Issuer: Latitude Australia Personal Loans Series 2020-1 Trust

AUD100.00 million Class A-S Notes, Assigned (P)Aaa (sf)

AUD245.50 million Class A-L Notes, Assigned (P)Aaa (sf)

AUD48.50 million Class B Notes, Assigned (P)Aa2 (sf)

AUD27.50 million Class C Notes, Assigned (P)A2 (sf)

AUD20.50 million Class D Notes, Assigned (P)Baa2 (sf)

AUD31.50 million Class E Notes, Assigned (P)Ba2 (sf)

The AUD26.50 million Seller Notes are not rated by Moody's.

Latitude Australia Personal Loans Series 2020-1 Trust is an
Australian asset-backed security transaction. It is a cash
securitization of personal loans extended to obligors located in
Australia. It is a static structure. The receivables are typically
unsecured, although a portion of it is partially secured. All
receivables were originated by Latitude Personal Finance Pty
Limited.

Latitude provides sales finance, credit cards, personal loans,
Buy-Now-Pay-Later and consumer credit insurance in Australia and
New Zealand. Latitude originates its lending through direct and
third-party channels. Direct channels include online and call
center-based applications with third-party distribution through
partnership agreements and a network of brokers. The Latitude
Australia Personal Loans Series 2020-1 Trust transaction represents
Latitude's second term ABS transaction and its first term ABS for
2020.

RATINGS RATIONALE

The provisional ratings take into account, among other factors, the
evaluation of the underlying receivables and their expected
performance, the evaluation of the capital structure, the
availability of excess spread over the life of the transaction, the
liquidity facility in the amount of 1.50% of the note balance
subject to a floor of AUD1,200,000, the interest rate swap provided
by Commonwealth Bank of Australia (Aa3/P-1/Aa2(cr)/P-1(cr)), and
the experience of Latitude as servicer and the backup servicing
arrangement with AMAL Asset Management Limited.

Initially, Class A Notes (which include Class A-S and Class A-L),
Class B, Class C, Class D and Class E Notes benefit from 30.9%,
21.2%, 15.7%, 11.6% and 5.3% of note subordination, respectively.
The notes will be repaid on a sequential basis until the credit
enhancement of the Class A Notes is at least 55%, and as long as
cumulative losses are less than 6.5%, where that payment date is on
or before 12 months after the closing date, and 12% after 12
months.

The notes will also be repaid on a sequential basis if the stated
amount of the Class A-S Notes are not zero or there are any
unreimbursed charge-offs on the notes or unreimbursed principal
draws or if the first call option date has occurred. At all other
times, the structure will follow a pro-rata repayment profile
(assuming pro-rata conditions are satisfied).

Moody's analysis also accounts for the risk of the transaction
being over or under-hedged. This risk arises because the notional
amount in the swap agreement is based on the repayment profile of
the rated notes, assuming a prepayment rate of 24% on the
underlying receivables. If prepayments deviate from this
assumption, the transaction is exposed to the risk of being over or
under-hedged. To account for this risk, Moody's ran a number of
faster and slower prepayment scenarios in combination with
associated upward and downward movements in bank bill swap rates.

MAIN MODEL ASSUMPTIONS

Moody's base case assumptions are a default rate of 10.4%,
coefficient of variation (CoV) of 38.7%, and a recovery rate of
15.0%. Moody's assumed default rate, CoV and recovery rate are
stressed compared to the historical levels of 9.8%, 16.8% and 25.5%
respectively. The stress addresses lack of economic stress during
the historical data period (2008-2019).

Methodology Underlying the Rating Action

The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in March
2019.

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

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

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

PEPPER SPARKZ 2: Fitch Assigns Final BB-sf Rating to Class F Notes
------------------------------------------------------------------
Fitch Ratings assigned final ratings to Pepper SPARKZ Trust No. 2's
pass-through floating-rate notes. The issuance consists of notes
backed by a pool of first-ranking Australian automotive and
equipment loan and lease receivables originated by Pepper Asset
Finance Pty Limited, a subsidiary of Pepper Group Pty Limited. The
notes are issued by BNY Trust Company of Australia Limited as
trustee for Pepper SPARKZ Trust No. 2.

The final ratings of the Class B to Class F notes are higher than
the expected ratings, primarily because of the reduction in the
balance of the uncollateralised Class A1-x notes, which increases
the excess spread available to the transaction.

RATING ACTIONS

Pepper SPARKZ Trust No.2

Cl. A1-a AU3FN0052338; LT AAAsf New Rating;  previously AAA(EXP)sf


Cl. A1-x AU3FN0052346; LT AAAsf New Rating;  previously AAA(EXP)sf


Cl. B AU3FN0052353;    LT AA+sf New Rating;  previously AA(EXP)sf

Cl. C AU3FN0052361;    LT A+sf New Rating;   previously A(EXP)sf

Cl. D AU3FN0052379;    LT BBB+sf New Rating; previously BBB(EXP)sf


Cl. E AU3FN0052387;    LT BB+sf New Rating;  previously BB(EXP)sf

Cl. F AU3FN0052395;    LT BB-sf New Rating;  previously B(EXP)sf

Cl. G;                 LT NRsf New Rating;   previously NR(EXP)sf

KEY RATING DRIVERS

Obligor Default Risk: Fitch has derived default and recovery
base-case expectations using Pepper's risk-tier classifications and
applied a granular approach using loss data since 2015. The
analysis is supported by comparable proxy data from similar
Fitch-rated issuers, given the limited historical data available.
Fitch applied base-case gross-loss expectations of 3.1%, 6.2% and
11.0% and 'AAAsf' default multiples of 6.0x, 5.25x and 4.5x for
tier A, B and C, respectively. Fitch applied a recovery base case
of 20% and 'AAAsf' recovery haircut of 60% across all assets.

Its weighted-average (WA) gross default and recovery base cases are
4.8% and 20%, respectively, and are applied on an asset pool of
lease and loan receivables backed by new and used vehicles and
equipment with WA seasoning of 13.7 months and an average contract
balance of AUD23,461. Fitch expects stable asset performance,
supported by sustained economic growth in Australia, with GDP
growth of 2.3% in 2020, a steady labour market and a low
interest-rate environment.

Cash Flow Dynamics: Fitch completed full cash-flow modelling, which
stressed defaults, default timing, prepayments and interest rate
movements, and determined that the notes pass all predetermined
stresses implied at their respective rating levels for timely
payment. The transaction generates excess spread, which supports
the ratings of the notes.

Structural Risk: Fitch evaluated structural risk by reviewing
transaction documentation and structural features. A liquidity
facility, sized at 1.25% of the aggregate invested balance of the
class A, B and C notes, supports the class A, B and C notes. The
transaction includes a class A1-x note that will be issued to fund
the component of the purchase price relating to the unamortised
commission that is paid to introducers in connection with the
origination of the receivables. This will not be collateralised but
will amortise in line with a specified amortisation schedule and
payable from excess spread.

The class A to F notes will receive principal repayments pro rata
upon satisfaction of the pro rata conditions. The credit
enhancement provided from the G note will thus increase as the
class A to F notes continue to amortise.

RATING SENSITIVITIES

Unanticipated increases in the frequency of defaults and loss
severity on defaulted receivables could produce loss levels higher
than Fitch's base case and is likely to result in a decline in
credit enhancement and remaining loss-coverage levels available to
the notes. Decreased credit enhancement may make certain note
ratings susceptible to negative rating action, depending on the
extent of the coverage decline. Hence, Fitch conducts sensitivity
analysis by stressing a transaction's initial base-case
assumptions.

Rating Sensitivity to Increased Default Rates

Notes: A1-a/A1-x/B/C/D/E/F

Original rating: AAAsf/AAAsf/AA+sf/A+sf/BBB+sf/BB+sf/BB-sf

Defaults increase 10%: AAAsf/AAAsf/AAsf/Asf/BBBsf/BBsf/B+sf

Defaults increase 25%: AA+sf/AAAsf/A+sf/A-sf/BBB-sf/BBsf/Bsf

Defaults increase 50%: AA-sf/AAAsf/Asf/BBBsf/BB+sf/B+sf/less than
Bsf

Rating Sensitivity to Reduced Recovery Rates

Notes: A1-a/A1-x/B/C/D/E/F

Original rating: AAAsf/AAAsf/AA+sf/A+sf/BBB+sf/BB+sf/BB-sf

Recoveries decrease 10%: AAAsf/AAAsf/AAsf/A+sf/BBB+sf/BB+sf/BB-sf

Recoveries decrease 25%: AAAsf/AAAsf/AAsf/A+sf/BBB+sf/BB+sf/B+sf

Recoveries decrease 50%: AAAsf/AAAsf/AAsf/Asf/BBBsf/BB+sf/B+sf

Rating Sensitivity to Increased Defaults and Reduced Recoveries

Notes: A1-a/A1-x/B/C/D/E/F

Original rating: AAAsf/AAAsf/AA+sf/A+sf/BBB+sf/BB+sf/BB-sf

Defaults increase 10%/recoveries decrease 10%:
AAAsf/AAAsf/AA-sf/Asf/BBBsf/BBsf/B+sf

Defaults increase 25%/recoveries decrease 25%:
AA+sf/AAAsf/A+sf/A-sf/BBB-sf/BB-sf/less than Bsf

Defaults increase 50%/recoveries decrease 50%:
A+sf/AAAsf/A-sf/BBBsf/BBsf/Bsf/less than Bsf

The class A1-x note benefits from a specified amortisation schedule
and is repaid in a senior position in the waterfall, thus making
its ratings less sensitive when compared to the remaining rated
notes.

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

Form ABS Due Diligence-15E was not provided to or reviewed by,
Fitch in relation to this rating action.

RADFORD SUPPLIES: First Creditors' Meeting Set for Feb. 12
----------------------------------------------------------
A first meeting of the creditors in the proceedings of Radford
Supplies Pty Limited will be held on Feb. 12, 2020, at 11:00 a.m.
at the offices of Hall Chadwick Chartered Accountants, Level 40, at
2 Park Street, in Sydney, NSW.

Richard Albarran and David Allan Ingram of Hall Chadwick Chartered
Accountants were appointed as administrators of Radford Supplies on
Jan. 31, 2020.


SARGON CT: First Creditors' Meeting Set for Feb. 13
---------------------------------------------------
A first meeting of the creditors in the proceedings of:

   -- Sargon CT Holdings Pty Ltd
   -- RE Holdco Pty Ltd
   -- RSE Holdco Pty. Ltd.
   -- SC International Holdings 2 Pty Ltd
   -- Sargon Superannuation Holdings Pty Ltd
   -- Sargon Services Pty Ltd
   -- Sargon Superannuation Holdings SPV Pty Ltd
   -- SC Australian Holdings 1 Pty Ltd

will be held on Feb. 13, 2020, at 3:00 p.m. at the offices of Ernst
& Young, 8 Exhibition Street, in Melbourne, Victoria.

Stewart McCallum and Adam Nikitins of Ernst & Young were appointed
as administrators of Sargon CT on Feb. 3, 2020.



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

KANGMEI PHARMACEUTICAL: Defaults on Payments of US$340MM of Bonds
-----------------------------------------------------------------
Wang Juanjuan and Denise Jia at Caixin Global report that Kangmei
Pharmaceutical Co. Ltd., the Chinese drugmaker marred by a
financial fraud scandal, became the first listed company to default
on a bond issue when the market reopened on Feb. 3 after the
extended Lunar New Year holiday.

Caixin says the supplier of traditional Chinese medicines said in a
statement Feb. 2 that it couldn't make principal and interest
payments and on CNY2.4 billion ($340 million) of bonds because of
tight liquidity. The bonds were issued in 2015 and due in 2022, but
the issuer had an option to raise the coupon rate and investors had
an option to sell back the bonds at the end of the fifth year, the
report relates.

According to the report, Kangmei was scheduled to buy back part of
the bonds and pay interest Jan. 31 when the market was originally
set to reopen after the holiday, but China extended the market
closure till Feb. 3 amid a coronavirus outbreak that has infected
more than 17,000 people and killed more than 360.

Caixin relates that the company said Feb. 3 that it raised CNY1.13
billion to make the buyback payment and interest on the bonds.
Kangmei raised the CNY1.13 billion through selling property assets,
and the money will be used to pay individual bondholders first,
according to several people close to GF Securities, the underwriter
of the bonds.

The drugmaker said it's working on a tiered payment plan and will
continue to raise funds to fill the gap, but there is risk of not
being able to pay in full. To do so, Kangmei would need to raise an
additional CNY1.36 billion, Caixin relays.

Caixin adds that Kangmei said Jan. 23 that a subsidiary planned to
sell project land in Guangzhou to a company affiliated with GF
Securities for no more than CNY1.13 billion.

The underwriter recently received a warning letter from the
securities regulator saying its compliance practices violate
regulations.

Kangmei currently has a total of CNY16.9 billion of outstanding
bonds due 2020 to 2022, mostly with buyback options, Caixin
discloses.

Since Kangmei was exposed for financial reporting fraud in May, the
company faces a credit downgrade and liquidity crunch. It has been
selling assets and borrowing money from related parties to pay
debts, the report notes.

Caixin says the fraud involved CNY88.6 billion of overstatements
between 2016 and 2018. In a months-long investigation into Kangmei,
China's securities regulator found that the company used fake bank
deposit slips to inflate cash reserves, forged documents for
nonexistent business activities, and transferred company funds to
related parties to trade in its own stock.

Kangmei Pharmaceutical Co., Ltd. produces and sells Chinese
medicines in China. It also offers chemical medicines and food
products; and operates hospitals and Chinese medicine pharmacies.


SICHUAN LANGUANG: Moody's Assigns B1 CFR, Outlook Stable
--------------------------------------------------------
Moody's Investors Service assigned a first-time B1 corporate family
rating to Sichuan Languang Development Co., Ltd.

The rating outlook is stable.

RATINGS RATIONALE

"Languang Development's B1 CFR reflects the company's established
track record of developing mass market properties in the Chengdu
region, its adequate liquidity, as well as the notable improvement
in the company's operating scale and geographic diversification
since 2015," says Celine Yang, a Moody's Assistant Vice President
and Analyst.

"However, the B1 CFR is constrained by the moderate size of the
company's land bank, the associated high funding needs to replenish
the land needed to support its business model, and its developing
funding channels," adds Yang, who is also Moody's Lead Analyst for
Languang Development.

Languang Development has a long track record and has established
its brand name in mass market residential property development in
Chengdu since 1990. The company's sales in the Chengdu region
increased to RMB28.7 billion in 2018 from RMB10.2 billion in 2014,
representing a compound annual growth rate of 29.6%.

Languang Development has leveraged its experience in property
development in Chengdu and expanded its nationwide presence since
2015. As a result its sales to Chengdu region fell to 19% of its
total contracted sales for the nine months ended September 30, 2019
from 34% in 2018 and 41% in 2017.

Moody's expects Languang Development's contracted sales to grow to
around RMB110 billion in 2020 from RMB90 billion for the 12 months
ended September 30, 2019, after a 47% year-on-year growth in 2018
and 93% in 2017. Its operating scale is comparable to its high
B-rated Chinese property peers.

Meanwhile, Moody's forecasts that its sales from outside the
Chengdu region will remain at 75%-85% of Languang Development's
total contracted sales over the next 2-3 years, because more than
80% of its land bank are located outside the Chengdu region. The
company's land bank is diversified. In particular, no single city
accounted for more than 15% of its land bank as of June 30, 2019.

The B1 CFR is constrained by its developing funding channels, given
its limited track record in tapping the offshore debt capital
markets. Languang Development's reliance on trust loans and asset
management borrowings is high, and accounted for around 29% of its
total reported debt at September 30, 2019. These borrowings usually
bear higher interest rates and are associated with higher
refinancing uncertainties than bonds or bank loans.

But Moody's expects the company's funding access will improve, as
it strives to diversify its funding channels after its debut
offshore bond issuance in September 2018, and establishment of
deeper strategic cooperation relationship with banks in China.

Languang Development's land bank of 24 million square meters as of
June 30, 2019 - as measured by gross floor area - was roughly
sufficient to support its development and sales over the next
2.0-2.5 years. Its land bank is moderate when compared to some its
B1 rated Chinese property peers. Languang Development's land
business strategy will likely lead to ongoing high funding needs,
due to its land bank replenishment requirements, which, in times of
tighter credit conditions, will result in higher funding costs and
refinancing risks.

Moody's expects that Languang Development's debt leverage will
improve moderately towards 65% in the coming 12-18 months compared
to 57% for the 12 months ended June 30, 2019. The improvement will
be driven by revenue growth, because of the sizable unrecognized
sales from the company's strong contracted sales growth over the
past two to three years.

Meanwhile, adjusted EBIT/interest will decline slightly to
2.4x-2.5x over the next 12-18 months from 2.6x for the 12 months
ended June 30, 2019, driven by the increase in interest expenses.
Such credit metrics are comparable to those of B1-rated Chinese
property peers.

Languang Development's liquidity is adequate. Moody's estimates
that the company's unaudited cash balance totaled RMB21.1 billion
as of September 30, 2019, which, together with Moody's estimation
of its operating cash flow, can cover committed land payments over
the next 12-18 months and debt due within the same period.

In terms of governance considerations, Moody's has taken into
account the potential change of control risk from the company's key
shareholder's concentrated ownership, and the pledging of 28.36% of
the company's total outstanding shares as of December 13, 2019.
This risk is incorporated in the B1 CFR.

Moody's has also considered (1) the fact that independent directors
chair the audit and remuneration committees; (2) the low level of
related-party transactions and dividend payouts; (3) the presence
of other internal governance structures and standards as required
by the Shanghai Stock Exchange; and (4) the company's financial
policy to pursue expansion, which resulted in its elevated
leverage.

The stable rating outlook takes into account Moody's expectation
that Languang Development will (1) sustain its sales growth; (2)
maintain its adequate liquidity position; and (3) improve its debt
leverage.

Moody's could upgrade Languang Development's ratings if the company
(1) demonstrates sustained growth in its contracted sales and
revenue through the economic cycles without sacrificing
profitability; (2) demonstrates prudence in its land acquisition
and financial management; (3) continues to improve its funding
channels and maintains adequate liquidity; and (4) improves its
credit metrics, such that EBIT/interest registers at least 3.0x and
revenue/adjusted debt rises to 75%-80% on a sustained basis.

On the other hand, the company's ratings could come under downward
pressure if Languang Development: (1) generates weak contracted
sales or cash collection; (2) experiences a deterioration of its
funding access or liquidity position; and/or (3) materially
increases its debt leverage.

Credit metrics indicative of a ratings downgrade include
EBIT/interest coverage falling below 2.0x, and/or adjusted
revenue/debt falling below 50%-55% on a sustained basis.

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

Sichuan Languang Development Co., Ltd. primarily develops
residential and commercial properties in China. The company listed
on the Shanghai Stock Exchange in 2015 through a backdoor listing.
Its chairman, Mr. Yang Keng, effectively owned 56.46% of the
company's shares at September 30, 2019.



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

HONG KONG: Recession Deepens, GDP Shrinks 0.4% in Q4 of 2019
------------------------------------------------------------
Taipei Times reports that Hong Kong economy's first recession in a
decade deepened in the fourth quarter of last year, weighed down by
often violent anti-government protests and the US-China trade
dispute, advanced estimates showed on Feb. 3.

According to Taipei Times, the economy shrank by a seasonally
adjusted 0.4 percent in October to December from the previous
quarter, versus a revised 3.0 percent in July to September.

On an annual basis, the economy contracted 2.9 percent, compared
with a revised 2.8 percent in the third quarter.

Economists forecast a 3.9 percent contraction in the final three
months of last year compared with a year earlier, Taipei Times
discloses citing the median of estimates compiled by Bloomberg.

For the whole of last year, real GDP contracted by 1.2 percent, the
first annual decline since 2009.

According to Taipei Times, months of unrest last year in Hong Kong
plunged the financial and trading hub into its worst crisis since
it reverted from British to Chinese rule in 1997.

Analysts predict an even worse first quarter this year, as measures
to restrict cross-border mobility to fight the spread of a new
coronavirus, which originated in mainland China, deal a further
blow to tourism, retail and other business, the report says.

Taipei Times relates that drawing on experience from the 2003 SARS
epidemic in the territory, Aries Wong, a lecturer at Hong Kong
Baptist University's School of Business, estimates that visitor
arrivals from mainland China could drop by an additional 10 to 20
percentage points, and annual economic growth could be cut by 0.5
percentage points if the outbreak subsides by July -- increasing to
1 percentage point if it continues for the whole year.

"Surely the virus is going to add a bit more pressure on tourism
and retail," Taipei Times quotes Mr. Wong as saying.

The negative effects might be limited as the key affected sectors
were already hit hard last year, ING Bank NV economist Iris Pang
said, although that might not be much comfort to shopkeepers or
restaurant owners, Taipei Times relays.

"The impacts are negative on retailers, restaurants, gyms, swimming
pools, mass transportation and inbound and outbound tourism
activities, but as retailers have been hit by the violent protests,
the marginal impact from the coronavirus should be moderate,"
Taipei Times quotes Ms. Pang as saying.




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

AIR INDIA: Tatas, Singapore Airlines Move Closer to Make Joint Bid
------------------------------------------------------------------
Moneycontrol News, citing The Times of India, reports that the
Tatas appears to be 'moving closer' to partner with Singapore
Airlines to make an offer for Air India.

According to Moneycontrol, the Tatas are inching towards a final
decision and are working on the deal's structure. The company may
merge Air India Express with AirAsia India, the TOI report said.

Tata Sons and Singapore Airlines own full-service airline Vistara
as a joint venture (JV). Tata Sons owns a 51 percent stake in
AirAsia India while Malaysia-based AirAsia Berhad owns the
remaining holding, Moneycontrol says.

Moneycontrol notes that the government formally began the bidding
process for Air India on January 27, offering their entire 100
percent stake for sale.

The Tata group has approached AirAsia CEO Tony Fernandes for his
green signal on the Air India Express acquisition, sources told
TOI.

The non-compete clause in the agreement between AirAsia and Tata
Sons does not permit either party from being involved in another
low-cost airline, the report states.

The Tatas founded Air India in 1932 as "Tata Air Services" and
owned it till it was nationalised in 1947.

                          About Air India

Air India Ltd -- http://www.airindia.com/-- is the flag carrier
airline of India owned by Air India Limited (AIL), a Government of
India enterprise. The airline operates a fleet of Airbus and Boeing
aircraft serving various domestic and international airports.  It
is headquartered at the Indian Airlines House in New Delhi.

Since the 2011-12 financial year, the government of India has
pumped more than INR300 billion into the troubled airline, whose
net losses for the year ended March 2019 reached INR85 billion, its
biggest since the 2008 financial crisis and up 59% from losses of
INR53 billion a year earlier, according to the Nikkei.


AUTOMARK INDUSTRIES: Ind-Ra Cuts Rating to BB+, Non-Cooperating
---------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Automark
Industries (India) Limited's (AIIL) Long-Term Issuer Rating to 'IND
BB+' from 'IND BBB' while migrating the rating to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Thus, the rating is based on the best available
information. Therefore, investors and other users are advised to
take appropriate caution while using the rating. The rating will
now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the agency's
website.

The instrument-wise rating actions are:  

-- INR140 mil. Fund-based working capital facilities downgraded
     and migrated to non-cooperating category with IND BB+ (ISSUER

     NOT COOPERATING) rating; and

-- INR40 mil. Non-fund-based working capital facilities
     downgraded and migrated to non-cooperating category with IND
     A4+ (ISSUER NOT COOPERATING) rating.

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

Analytical Approach: Ind-Ra continues to take a consolidated view
of AIIL and its wholly-owned subsidiary, Automark Technologies
(India) Pvt Ltd ('IND BBB'/Stable), together referred to as the
Automark Group, while arriving at the ratings, on account of
significant operational and financial linkages between them. Both
the companies operate in a similar line of business and have common
management.

KEY RATING DRIVERS

The downgrade reflects the Automark Group's stretch in liquidity.

Liquidity Indicator-Stretched:  The group has reported negative
cash flow from operations during FY19 due to higher working capital
cycle. FY19's cash flow from operation stood at negative INR24
million (FY18:  INR11 million). Additionally, the cash and cash
equivalent were low at INR8 million in FY19 (FY18: INR46 million)
against the total outstanding debt of INR236 million in FY19 (FY18:
INR178 million). The working capital cycle days have increased to
142 days from 127 days due to an increase in inventory days to 105
days from 66 days. The rating factor in the group's weak cash flow
from operations/gross interest coverage ratio deteriorated to 0.4x
in FY19 (FY18: 1.5x).

The ratings are constrained by the group's continued medium scale
of operations, as reflected by revenue of INR1,257 million during
FY19 (FY18: INR1,075 million). FY19 revenue grew due to an increase
in orders received.

The ratings are further constrained by the group's average EBITDA
margins, which expanded to 9.6% in FY19 (FY18: 7.9%).  The return
on capital employed stood at 13% in FY19 (FY18:10.25%).

The rating, however, is supported by the promoter's almost a
decade's experience in the manufacturing of thermoplastic road
marking materials.

Automark did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. Information not
provided includes interim FY20 numbers, financial projections for
three years, current outstanding debt exposure and repayment
schedule, details of working capital limits and its utilization and
management certificate.

COMPANY PROFILE

AIIL, a marketing arm of Automark Group, procures road marking
material from Automark Technology (India) and undertakes road
marking contracts.

AUTOMARK TECHNOLOGIES: Ind-Ra Cuts Rating to BB+, Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Automark
Technologies (India) Private Limited's (ATIPL's) Long-Term Issuer
Rating to 'IND BB+' from 'IND BBB' and has simultaneously migrated
the rating to the non-cooperating category. The issuer did not
participate in the rating exercise despite continuous requests and
follow-ups by the agency. Thus, the rating is based on the best
available information. Therefore, investors and other users are
advised to take appropriate caution while using the rating. The
rating will now appear as 'IND BB+ (ISSUER NOT COOPERATING)' on the
agency's website.

The instrument-wise rating actions are:  

-- INR60 mil. Fund-based working capital facilities downgraded
     and migrated to non-cooperating category with IND BB+ (ISSUER

     NOT COOPERATING) / IND A4+ (ISSUER NOT COOPERATING) rating;

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

-- INR23.67 mil. Term loan due on October 2024 downgraded and
     migrated to non-cooperating category with IND BB+ (ISSUER NOT

     COOPERATING) rating.

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

Analytical Approach: Ind-Ra continues to take a consolidated view
of AIIL and its wholly-owned subsidiary, Automark Technologies
(India) Pvt Ltd ('IND BBB'/Stable), together referred to as the
Automark group, while arriving at the ratings, on account of
significant operational and financial linkages between them. Both
companies operate in a similar line of business and have common
management.

The downgrade reflects the deterioration in the group's liquidity
position in FY19, with the cash flow from operations turning
negative due to elongation of the working capital cycle.

KEY RATING DRIVERS

Liquidity Indicator – Stretched: The group's cash flow from
operations turned negative at INR24 million in FY19 (FY18: INR11
million) due to unfavorable changes in working capital.
Additionally, the cash and cash equivalent were low at INR8 million
in FY19 (FY18: INR46 million) against the total outstanding debt of
INR236 million (INR178 million). The working capital cycle
elongated to 142 days in FY19 (FY18: 127 days) due to the increase
in inventory days to 105 days (66 days). Furthermore, the group's
cash flow from operations/ interest coverage ratio remained weak at
0.4x in FY19 (FY18:1.5 x).

The ratings reflect the continued medium scale of operations, as
indicated by revenue of INR1,257 million in FY19 (FY18: INR1,075
million). The revenue increased due to an increase in orders.

The ratings take into consideration the average EBITDA margins. The
margin increased to 9.6% during FY19 (FY18:7.9%) due to a decrease
in the cost of materials consumed. The RoCE was 13% in FY19
(FY18:10.25%).

The rating, however, is supported by the promoter's almost a decade
of experience in the manufacturing of thermoplastic road marking
materials.

Automark did not participate in the rating exercise despite
continuous requests and follow-ups by the agency. The company has
not provided information regarding interim numbers FY20, the
financial projection for three years,  the current outstanding debt
exposure and repayment schedule, details of working capital limits
and utilization, and the management certificate.

COMPANY PROFILE

Incorporated in 2002 Maharashtra-based ATIPL is a 99.99% subsidiary
company of Automark Industries (India) and operates in the niche
segment of road marking. ATIPL specializes in the manufacture of
thermoplastic road marking material/paint. It also manufactures
water-borne marking paint and reflective paint. Its day-to-day
activities are managed by Mr. Mayur Khara and Mr. Amit Khara.

BABA BHUMAN: ICRA Maintains 'B' Rating in Not Cooperating
---------------------------------------------------------
ICRA said the ratings for the INR20.00 crore bank facilities of
Baba Bhuman Shah Ji Rice Mills (BSJR) continue to remain under
Issuer Not Cooperating category. The long-term rating is denoted as
[ICRA]B (Stable) ISSUER NOT COOPERATING with a Stable outlook.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term-Fund      17.00       [ICRA]B (Stable); ISSUER NOT
   Based/CC                        COOPERATING; Rating continues
                                   to remain under 'Issuer Not
                                   Cooperating' category

   Long Term-Fund       3.00       [ICRA]B (Stable); ISSUER NOT
   Based TL                        COOPERATING; Rating continues
                                   to remain under 'Issuer Not
                                   Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.

Incorporated in 2013, BSJR is a partnership firm engaged in
milling, processing and sorting of basmati and non basmati rice.
The firm has its plant at Fazilka (Punjab) with a milling capacity
and sorting capacity of 6 tonnes per hour each. It undertakes
milling of basmati as well as non-basmati rice, however ~80% of its
revenue is derived from basmati rice. The firm sells its products
directly to its customers as well as through commission agents.
BSJR supplies rice mainly in Delhi, Haryana and Punjab. The firm
sells its products mainly to wholesalers in domestic markets who
further export the same to overseas markets.

BALASON TEA: ICRA Lowers Rating on INR6.55cr Loan to B-
-------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Balason
Tea Company Private Limited, as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund based-         6.55        [ICRA]B-(Stable) ISSUER NOT
   Cash Credit                     COOPERATING/ Rating downgraded
                                   from [ICRA]BB- (Stable) and
                                   Continues to remain under
                                   'Issuer Not Cooperating'
                                   Category

   Non-fund based-     0.25        [ICRA]A4 ISSUER NOT
   Bank Guarantee                  COOPERATING/Rating Continues
                                   to remain under 'Issuer Not
                                   Cooperating' category

Rationale

The ratings for the INR6.80 crore bank facilities of Balason Tea
Company Private Limited has downgraded and continued to remain
under 'Issuer Not Cooperating' category.  The rating is now denoted
as "[ICRA]B- (stable)/[ICRA]A4; ISSUER NOT COOPERATING".

The rating downgrade is because of lack of adequate information
regarding Balason Tea Company Private Limited performance and hence
the uncertainty around its credit risk. ICRA assesses whether the
information available about the entity is commensurate with its
rating and reviews the same as per its "Policy in respect of
non-cooperation by the rated entity". The lenders, investors and
other market participants are thus advised to exercise appropriate
caution while using this rating as the rating may not adequately
reflect the credit risk profile of the entity, despite the
downgrade.

As part of its process and in accordance with its rating agreement
with Balason Tea Company Private Limited.  ICRA has been trying to
seek information from the entity so as to monitor its performance,
but despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.

Incorporated in 2001, Balason Tea Company Private Limited
manufactures black tea of CTC variety. The company has no
plantation facility and so has to depend entirely on purchased
green leaves for production of black tea. The factory is located in
Darjeeling district, West Bengal. The annual installed capacity for
production of black tea is 2 million kg. BTCL sells its own produce
in the domestic market and also exports tea, procured from tea
auction centres. The company markets tea under the brand name of
'London Royal', 'Kolkata Royal' and 'Balason Tea'.

BMSS STEEL: Ind-Ra Lowers LT Issuer Rating to 'B+', Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded BMSS Steel
Industries Pvt. Ltd.'s (BSIPL) Long-Term Issuer Rating to 'IND B+'
from 'IND BB- (ISSUER NOT COOPERATING)'. The Outlook is Stable.

The instrument-wise rating actions are:

-- INR45 mil. Fund-based facilities downgraded with IND B+/
      Stable/IND A4 rating;

-- INR80 mil. Non-fund-based facilities downgraded with IND A4
     rating;

-- INR35 mil. Proposed fund-based facilities* downgraded with
     Provisional IND B+/Stable/Provisional IND A4 rating; and

-- INR40 mil. Proposed non-fund-based facilities* downgraded with

     Provisional IND A4 rating.

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

The downgrade reflects BSIPL's poor liquidity position and marginal
fall in both revenue and EBITDA margin.

KEY RATING DRIVERS

Liquidity Indicator- Poor: BSIPL's average utilization of
fund-based limits was 100% and non-fund-based limits stood at 91.9%
during the last 12 months ended December 2019. There have been
multiple instances of overutilization in the fund-based facility, a
maximum of up to 10 days in the last six months ended December
2019. The free cash flow remained negative in FY19 at INR2 million
(FY18: negative INR3 million). The cash and cash equivalent, too,
remained low at INR2.8 million in FY19 (FY18: INR4.6 million).
Furthermore, BSIPL's net cash conversion cycle deteriorated to 59
days in FY19 (FY18: 53 days) on account of an increase in the
debtor days to 101 (92) and increase in the inventory days to 55
(40 days).

The rating factor in BSIPL's continued small scale of operations.
The company's FY19 revenue fell to INR506 million (FY18: INR531
million) due to slow down in the industry and delays in payments
from customers. In 1HFY20, the company achieved revenue of
INR247.65 million. The company has orders ranging from INR55
million-65 million per month, which are executed within 30 days.
Thus, Ind-Ra expects the revenue to remain stable in FY20 based on
the revenue achieved in 1HFY20 and its order book position.

The ratings also factor in slight contraction in BSIPL's healthy
EBITDA margin to 3.8% in FY19 (FY18: 4.0%). The margin contracted
on fall in the absolute EBITDA to INR19 million in FY19 (FY18:
INR21 million) due to an increase in the indirect expenses. Ind-Ra
expects the company's EBITDA margin to remain stable in FY20 on
stable business operations and control in the operating expenses.

The ratings also reflect BSIPL's moderate credit metrics, which
deteriorated on fall in absolute EBITDA. Net leverage (total
adjusted net debt/operating EBITDAR) increased to 3.2x in FY19
(FY18: 2.8x), while interest coverage (operating EBITDA/gross
interest expense) remained flat at 1.5x. Ind-Ra expects the
company's credit metrics to deteriorate in FY20 on account of an
increase in the total debt.

The ratings also factor in BSIPL's high customer concentration
risk, as the company's top three customers accounted for 55.79% of
its total FY19 revenue (FY18: 58.2%) of its total revenue.

The ratings, however, are supported by a promoter's experience of
over three decades of experience in the steel industry and the
company's long-standing ties with its customers and suppliers.

RATING SENSITIVITIES

Negative: A decline in the revenue or EBITDA margin, leading to
interest coverage below 1.3x, with poor liquidity, on a sustained
basis, could be negative for the ratings.

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

COMPANY PROFILE

Incorporated in July 1987, BSIPL processes and trades steel. The
company has its processing unit in Kalamboli (Navi Mumbai) with a
capacity of 400 tons per month. It is having an office in Mumbai
(Charni Road).

CARAMIA GRANITO: ICRA Reaffirms B+ Rating on INR19.5cr Loan
-----------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Caramia
Granito LLP (CGL), as:

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Term Loan           19.50      [ICRA]B+(Stable); reaffirmed
   Cash Credit          9.00      [ICRA]B+(Stable); reaffirmed
   Bank Guarantee       1.50      [ICRA]A4; reaffirmed

Rationale

The ratings reaffirmation continues to factor in CGL's
below-average financial risk profile, marked by moderate scale,
leveraged capital structure, below-average debt coverage indicators
and stretched working capital cycle. The ratings also consider the
intense competition in the tile industry and the vulnerability of
profitability to volatility in raw material and fuel prices. ICRA
further considers the exposure of the company's operations and cash
flows to the cyclicality in the real estate industry (the main
end-user sector).

The ratings, however, favourably factor in the adequate experience
of partners in the tiles industry and the firm's proximity to raw
material sources because of its presence in Morbi (Gujarat).

The Stable outlook on the [ICRA]B+ rating reflects ICRA's opinion
that the firm will continue to benefit from the extensive
experience of its promoters in the tiles industry.

Credit strengths

Extensive experience of promoters in ceramic industry – The
promoters have decade-long experience vide their association with
other companies in the ceramic industry. CGL benefits from the
established marketing channels of Group entities.

Location-specific advantage - The location of the firm's
manufacturing facility in the ceramic tiles manufacturing hub of
Morbi enables it to procure quality raw materials at competitive
prices and save on transportation cost.

Credit challenges

Modest scale of operations - The firm commenced its operations on
June 2018 and reported revenue of INR21.65 crore in 10MFY2019. The
revenue increased to INR32.65 crore in 9MFY2020 on the back of
healthy volume growth. However, the scale of operations is expected
to remain modest, with an estimated revenue of INR40-45 crore by
the end of fiscal FY2020. The operating profitability was 11.57% in
FY2019. However, higher outgo towards depreciation led to loss at
the net level in FY2019.

Below-average financial risk profile – Elevated debt level and
modest net-worth base resulted in a leveraged capital structure as
evident from the gearing of 2.73 times and TOL/TNW of 3.32 times as
on March 31, 2019. The debt-coverage indicators also remained
below-average on the back of weak profitability – Total
Debt/OPBDITA and NCA/TD of 8.90 times and 3% in FY2019,
respectively. The capital structure is likely to improve over
FY2020-22, with the scheduled Instrument repayment of term loan
debt. The company's working capital intensity in FY2019 remained
high, at 34%, owing to elongated receivable and high inventory
holding.

Profitability susceptible to intense competition and cyclicality in
real estate industry – The ceramic tile-manufacturing industry is
fragmented, which results in intense competition and exerts
pressure on the profit margins. Further, the real estate industry
is the major consumer of ceramic tiles and hence CGL's
profitability and cash flows are likely to remain vulnerable to the
cyclicality in the real estate industry.

Vulnerability of profitability to fluctuations in raw material and
fuel costs – Raw material and fuel are the two major
manufacturing cost components that determine the cost
competitiveness of a player in the ceramic industry. Since CGL has
limited control over key input prices such as those of raw material
and fuel, adverse movements in raw material and gas prices can
expose its profitability to fluctuations.

Liquidity position: Stretched

CGL's liquidity position is stretched as the scheduled repayments
in FY2020 and FY2021 are expected to tightly match the cash
accruals. The promoters infused unsecured loan of INR1.21 crore in
the current fiscal, which along with a cushion of INR2.49 crore in
the working capital limit as on November 30, 2019, will support
incremental working capital requirements. The average utilisation
of working capital limit stood moderated at ~56% over 9 months
(March 19-November 19).

Rating sensitivities

Positive triggers:

* Sustained improvement in revenue and profitability, leading to
improvement in key credit metrics.

* Strengthening of net worth, leading to improvement in capital
structure and working capital cycle.

Negative triggers:

* Substantial decline in scale of operations or erosion in
operating margins, leading to moderation in return indicators.

* Any large debt-funded capex or stretch in working capital cycle
adversely impacting the liquidity profile and other key credit
metrics.

Established in April 2017, CGL manufactures soluble salt vitrified
tiles at its facility in Morbi (Gujarat). The unit has an estimated
installed capacity of producing ~56,700 MT of tiles annually. The
unit became fully operational in June 2018. In FY2019, the company
reported a net loss of INR3.50 crore on an operating income (OI) of
INR21.56 crore.

CHANDAN TEA: ICRA Maintains 'B-' Rating in Not Cooperating
----------------------------------------------------------
ICRA said the ratings for the INR11.00 crore bank facilities of
Chandan Tea Industries Private Limited continues to remain under
the 'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B- (Stable)/[ICRA]A4 ISSUER NOT COOPERATING".

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund based-         10.50       [ICRA]B- (Stable) ISSUER NOT
   Cash credit                     COOPERATING; Rating continues
                                   to remain under the 'Issuer
                                   Not Cooperating' category
     
   Non-fund based-      0.50       [ICRA]A4 ISSUER NOT
   Bank Guarantee                  COOPERATING; Rating continues
                                   to remain under the 'Issuer
                                   Not Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.

Incorporated in 1989, Chandan Tea Industries Private Limited
manufactures black tea of CTC variety. The company is being managed
by Agarwal and Bansal family based in Kolkata who are in the tea
industry for a long time. The company has one tea garden named
'Chandan Tea Estate' and a factory in the district of Uttar
Dinajpur, West Bengal. The company has six CTC lines with an annual
installed capacity to produce 2 million kgs of black tea. The
company markets tea under the brand name of 'Jiaguri' and 'Chandan
Tea'.

CHENNAI WATER: Ind-Ra Moves D Bank Loan Rating to Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated Chennai Water
Desalination Ltd's (CWDL) long-term bank loan ratings to the
non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's
website.

The detailed rating actions are:

-- INR3.780 bil. Senior project bank loan (long-term) migrated to

     non-cooperating category with IND D (ISSUER NOT COOPERATING)
     rating; and

-- INR50 mil. Performance guarantee (executed in the form of bank

     guarantee) (long term) migrated to non-cooperating category
     with IND D (ISSUER NOT COOPERATING) rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 6, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings

COMPANY PROFILE

CWDL is a special purpose vehicle that was incorporated to design,
construct, operate and maintain a 100-million-liter-per-day
seawater desalination plant in Minjur, about 35km north of Chennai.

DCR INFRA: ICRA Maintains 'D' Rating in Not Cooperating
-------------------------------------------------------
ICRA has continued the long-term ratings for the bank facilities of
DCR Infra (DI) to the 'Issuer Not Cooperating' category. The rating
is denoted as "[ICRA]D ISSUER NOT COOPERATING".

                   Amount
   Facilities    (INR crore)    Ratings
   ----------    -----------    -------
   Fund based-      6.50        [ICRA]D; ISSUER NOT COOPERATING;
   Term Loan                    Rating continues to remain under
                                'Issuer Not Cooperating' Category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.

Established in January 2014, DCR Infra (DI) is a partnership firm
to build, construct and sell- commercial complex 'Gokul Solitaire'
at Vesu in Surat. Mr. Dharmesh Patel, Mr. Chetan Mania and Mr.
Ronak Patel are the partners of the firm, who have more than one
and half decade of experience in the real estate sector. The
project is located on a plot admeasuring 2419 sq. mtr, and has 125
shops with a total saleable area of 85,698 sq. ft.

DHIRENDRA NARAYAN: ICRA Maintains B Rating in Not Cooperating
-------------------------------------------------------------
ICRA said the ratings for the INR7.60 crore bank facilities of
Dhirendra Narayan Cold Storage Private Limited continues to remain
under the 'Issuer Not Cooperating' category. The rating is denoted
as "[ICRA]B (Stable)/[ICRA]A4 ISSUER NOT COOPERATING".

                       Amount
   Facilities        (INR crore)    Ratings
   ----------        -----------    -------
   Long-term Working      1.25      [ICRA]B (Stable) ISSUER NOT
   Capital loan                     COOPERATING; Rating continues
                                    to remain under the 'Issuer
                                    Not Cooperating' category

   Long term-Bank         0.20      [ICRA]B (Stable) ISSUER NOT
   Guarantee                        COOPERATING; Rating continues
                                    to remain under the 'Issuer
                                    Not Cooperating' category

   Short-term             6.00      [ICRA]A4 ISSUER NOT
   Seasonal Cash                    COOPERATING; Rating continues
   Credit                           to remain under the 'Issuer
                                    Not Cooperating' category

   Long-term/Short        0.15      [ICRA]B (Stable)/[ICRA]A4
   term unallocated                 ISSUER NOT COOPERATING;
   limit                            Rating continues to remain
                                    under the 'Issuer Not
                                    Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.

Dhirendra Narayan Cold Storage Private Limited (DNCS) had set up
its cold storage unit at Dhaniakhali in the Hooghly district of
West Bengal in 1971. Promoted by the Kolkata-based Saha and the
Shaw family, DNCS has a storage capacity of 20,800 metric tonnes
(MT) at present.

GEMSTONE CERAMIC: ICRA Reaffirms B Rating on INR6.80cr Loan
-----------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Gemstone
Ceramic LLP (GCL), as:

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Term Loan           6.80       [ICRA]B (Stable); reaffirmed
   Cash Credit         3.00       [ICRA]B (Stable); reaffirmed
   Bank Guarantee      1.00       [ICRA]A4; reaffirmed

Rationale

The reaffirmation in the ratings factors in GCL's below-average
financial risk profile, marked by the nascent stage of the firm's
operation, a leveraged capital structure, below-average debt
coverage indicators and high working capital intensity. The ratings
also factor in the intense competition in the tile industry and the
vulnerability of the profitability to volatility in raw material
and fuel prices. ICRA further considers the exposure of the
company's operations and cash flows to the cyclicality in the real
estate industry (the main end-user sector).

The ratings, however, favourably factor in the adequate experience
of partners in the ceramic tiles industry. Further, the ratings
draw comfort from the company's proximity to raw material sources
by virtue of its presence in Morbi (Gujarat) and the increase in
its operating income (OI), post the stabilisation of operations in
FY2019.

The Stable outlook on the [ICRA]B rating reflects ICRA's opinion
that the firm will continue to benefit from the extensive
experience of its promoters in the tiles industry.

Credit strengths

Extensive experience of promoters in ceramic industry - The key
promoters, Mr. Ketan Patel, Mr. Hasmukh Patel, Mr. Kamlesh Patel
and Mr. Ashokkumar Kalariya, have extensive experience in the
ceramic industry vide their association with another entity in a
similar business line. The firm also benefits from the established
relationship of the promoters with the dealers.

Location-specific advantage - The location of the firm's
manufacturing facility in the ceramic tiles manufacturing hub of
Morbi enables it to procure quality raw materials at competitive
prices and save on transportation cost.

Credit challenges

Moderate scale of operation; intense industry competition - GCL
commenced its operations in February 2019. The firm reported a
revenue of INR1.43 crore in FY2019. The firm's operation has scaled
up, post stabilisation of operation, as reflected from the revenues
of ~Rs. 18.97 crore in 9MFY2020. However, the overall scale of
operation remains small, with revenue estimated at ~Rs. 24 crore by
the end of fiscal FY2020. Further, the company faces intense
competition from established tile manufacturers as well as
unorganised players, which limits its pricing flexibility.

Below-average financial risk profile – The firm's financial risk
profile remains below-average, marked by leveraged capital
structure and below-average debt coverage indicators. The capital
structure is likely to remain leveraged, with an estimated gearing
of 2.08 times and TOL/TNW of 2.30 times in FY2020. The
debt-coverage indicators are also likely to remain average with an
interest coverage of 2.30 times and DSCR of 1.10 times.

Profitability susceptible to intense competition and cyclicality in
real estate industry – The ceramic tile-manufacturing industry is
fragmented, which results in intense competition and exerts
pressure on the profit margins. Further, the real estate industry
is the major consumer of ceramic tiles and hence GCL's
profitability and cash flows are likely to remain vulnerable to the
cyclicality in the real estate industry.

Vulnerability of profitability and cash flows to cyclicality in
real estate industry - The real estate industry is the key end user
of tiles. Hence, GCL's profitability and cash flows are likely to
remain vulnerable to the inherent cyclicality of the industry.

Vulnerability of profitability to fluctuations in raw material and
fuel costs – Raw material and fuel are the two major
manufacturing cost components that determine the cost
competitiveness of a player in the ceramic industry. Since GCL has
limited control over key input prices such as those of raw material
and fuel, adverse movements in raw material and gas prices can
expose its profitability to fluctuations.

Liquidity position: Stretched

GCL's liquidity position is stretched as the scheduled repayments
in FY2020 and FY2021 are expected to tightly match the cash
accruals. The promoters infused unsecured loan of INR2.97 crore in
the current fiscal, which along with a cushion of INR1.61 crore in
the working capital limit as on November 30, 2019, will support
incremental working capital requirement. The average utilisation of
working capital limit stood moderated at ~48% over 8 months (April
19-November 19).

Rating sensitivities

Positive triggers:

* Sustained improvement in revenue and profitability, leading to
improvement in key credit metrics.

* Strengthening of net worth, leading to improvement in capital
structure and working capital cycle.

Negative triggers:

* Substantial decline in scale of operations or erosion in
operating margins, leading to moderation in return indicators.

* Any large debt-funded capex or stretch in working capital cycle
adversely impacting the liquidity profile and other key credit
metrics.

Established in March 2018, GCL is setting up a greenfield project
at Morbi to manufacture glazed wall tiles. The unit has an
estimated installed capacity of producing ~28,800 MT of tiles
annually. The firm's commercial operation commenced from February
2019. The partners have adequate experience in the ceramic industry
vide their association with another entity.


GOVERDHAN VERMA: ICRA Maintains 'B+' Rating in Not Cooperating
--------------------------------------------------------------
ICRA said the ratings for the INR6.20 crore bank facilities of
Goverdhan Verma Punjab Jewellers Private Limited continue to remain
under Issuer Not Cooperating category. The long-term rating is
denoted as [ICRA]B+ (Stable) ISSUER NOT COOPERATING with a Stable
outlook.

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long Term-Fund      6.20       [ICRA]B+ (Stable); ISSUER NOT
   Based/ CC                      COOPERATING; Rating continues
                                  to remain under 'Issuer Not
                                  Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.

GVPJ was incorporated in 1992 by Mr. Sanjay Verma and is engaged in
the retailing of gold and diamond jewellery and other similar
items. The company has its showroom at Karol Bagh in Delhi.

GUPTA SOLVENT: ICRA Maintains 'B+' Rating in Not Cooperating
------------------------------------------------------------
ICRA has continued the long-term ratings for the bank facilities of
Gupta Solvent Private Limited to the 'Issuer Not Cooperating'
category. The rating is now denoted as "[ICRA]B+(Stable) ISSUER NOT
COOPERATING".

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term-Fund       6.00       [ICRA]B+ (Stable) ISSUER NOT
   Based/CC                        COOPERATING; Rating continues
                                   to remain under the 'Issuer
                                   Not Cooperating' category

   Long Term-Fund       3.50       [ICRA]B+ (Stable) ISSUER NOT
   Based TL                        COOPERATING; Rating continues
                                   to remain under the 'Issuer
                                   Not Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.

Gupta Solvent Private Limited (GSPL) was incorporated in 2007 and
commenced commercial manufacturing of edible oils from July 2016.
The company is engaged in refining of Soya Oil, Palm oil and
Cottonseed oil. The company's plant, located in Morena, Madhya
Pradesh with total refining capacity of 150 tonnes per day (TPD)
translating into annual refining capacity of 45,000 MTPA.

HALLMARK STEEL: ICRA Lowers Rating on INR6.66cr Loan to B+
----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Hallmark
Steel Private Limited, as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term-Fund      6.66        [ICRA]B+(Stable) ISSUER NOT
   Based/CC                        COOPERATING; Rating downgraded
                                   from [ICRA]BB-(Stable) and
                                   continued to the 'Issuer Not
                                   Cooperating' category

Rationale

The rating downgrade is because of lack of adequate information
regarding Hallmark Steel Private Limited performance and hence the
uncertainty around its credit risk. ICRA assesses whether the
information available about the entity is commensurate with its
rating and reviews the same as per its "Policy in respect of
non-cooperation by the rated entity".

The lenders, investors and other market participants are thus
advised to exercise appropriate caution while using this rating as
the rating may not adequately reflect the credit risk profile of
the entity, despite the downgrade.

As part of its process and in accordance with its rating agreement
with Hallmark Steel Private Limited, ICRA has been
trying to seek information from the entity so as to monitor its
performance, but despite repeated requests by ICRA, the entity's
management has remained non-cooperative. In the absence of
requisite information and in line with SEBI's Circular No.
SEBI/HO/MIRSD4/CIR/2016/119, dated November 1, 2016, ICRA's Rating
Committee has taken a rating view based on the best available
information.

Incorporated in 1999, HSPL manufactures valve steel bars used in
automotive engine valves. The company is promoted by Mr. Suniel
Malhotra and Mrs Radhika Malhotra. Its manufacturing facility is in
Bhiwadi (Rajasthan).

IVRCL INDORE: Ind-Ra Moves D Bank Loan Rating to Non-Cooperating
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has migrated IVRCL Indore
Gujarat Tollways' Limited's (IIGTL) long-term bank loans' rating to
the non-cooperating category. The issuer did not participate in the
rating exercise despite continuous requests and follow-ups by the
agency. Therefore, investors and other users are advised to take
appropriate caution while using the rating. The rating will now
appear as 'IND D (ISSUER NOT COOPERATING)' on the agency's website.


The instrument-wise rating actions are:

-- INR11,785.65 bil. Long-term senior project bank loan (long-
     term) migrated to non-cooperating category with IND D (ISSUER

     NOT COOPERATING) rating; and

-- INR70 mil. Bank guarantee (long-term) migrated to non-
     cooperating category with IND D (ISSUER NOT COOPERATING)
     rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 6, 2019. Ind-Ra is unable to provide an update, as the
agency does not have adequate information to review the ratings

COMPANY PROFILE

IIGTL is a special-purpose company that was incorporated to
undertake a 155.15-kilometer expansion of a stretch between Indore
and Gujarat to four lanes from two lanes, and a capacity
augmentation project on a design, build, finance, operate and
transfer basis, both under a 25-year concession from National
Highways Authority of India ('IND AAA'/Stable). The project
achieved a provisional commercial operation date on November 6,
2018.

JALPAIGURI DUARS: ICRA Maintains B- Rating in Not Cooperating
-------------------------------------------------------------
ICRA said the ratings for the INR8.21 crore bank facilities of
Jalpaiguri Duars Tea Company Limited continues to remain under the
'Issuer Not Cooperating' category. The rating is denoted as
"[ICRA]B- (Stable)/[ICRA]A4 ISSUER NOT COOPERATING".

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund based-         7.71        [ICRA]B- (Stable) ISSUER NOT
   Cash Credit                     COOPERATING; Rating continues
                                   to remain under the 'Issuer
                                   Not Cooperating' category

   Non-fund based      0.50        [ICRA]A4 ISSUER NOT
   Bank Guarantee                  COOPERATING; Rating continues
                                   to remain under the 'Issuer
                                   Not Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.

Incorporated in 1920, Jalpaiguri Duars Tea Company Limited
manufactures black tea of CTC variety. The company is being managed
by Agarwal and Bansal family based in Kolkata who are in the tea
industry for a long time. The company has one tea garden named
'Thanjhora Tea Estate' and one factory in the district of
Darjeeling, West Bengal. The company has five CTC lines with an
annual installed capacity to produce 1.2 million kg of black tea.
The company markets tea under the brand name of 'Thanjhora Tea
Estate' and 'Salbari'.

KISHORE INFRASTRUCTURES: ICRA Cuts Rating on INR4cr Loan to B+
--------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Kishore
Infrastructures Private Limited, as:

                      Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Long Term-Fund       4.00       [ICRA]B+(Stable) ISSUER NOT
   Based Limits/CC                 COOPERATING; Rating downgraded
                                   from [ICRA]BB-(Stable) and
                                   Continues to remain under the
                                   'Issuer Not Cooperating'
                                   Category

   Long Term/Short      36.00      [ICRA]B+(Stable)/[ICRA]A4
   Term-Non Fund                   ISSUER NOT COOPERATING;  
   Based limits                    Long term Rating downgraded
                                   from [ICRA]BB-(Stable) and
                                   Continues to remain under the
                                   'Issuer Not Cooperating'
                                   Category

   Long Term/Short      40.00      [ICRA]B+(Stable)/[ICRA]A4
   Term-Unallocated                ISSUER NOT COOPERATING;
   Limits                          Long term Rating downgraded
                                   from [ICRA]BB-(Stable) and
                                   Continues to remain under the
                                   'Issuer Not Cooperating'
                                   category

Rationale

The rating downgrade is because of lack of adequate information
regarding Kishore Infrastructures Private Limited performance and
hence the uncertainty around its credit risk. ICRA assesses whether
the information available about the entity is commensurate with its
rating and reviews the same as per its "Policy in respect of
non-cooperation by the rated entity". The lenders, investors and
other market participants are thus advised to exercise appropriate
caution while using this rating as the rating may not adequately
reflect the credit risk profile of the entity, despite the
downgrade.

As part of its process and in accordance with its rating agreement
Kishore Infrastructures Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance,
but despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.

Kishore Infrastructures Private Limited, incorporated in 2010, is
primarily engaged in rural electrification and civil construction
works. The works mainly include survey works (feasibility study),
installation of 33 KV and 11 KV electricity lines in Uttar Pradesh,
Tamil Nadu, Maharashtra, Jharkhand, Rajasthan etc.


KRISHNA SAHAKARI: Ind-Ra Assigns 'B' Bank Loan Rating
-----------------------------------------------------
India Ratings and Research (Ind-Ra) has rated The Krishna Sahakari
Sakkare Karkhane Niyamit's (TKSSKN) bank facilities as follows:

-- INR500.0 mil. Fund-based working capital facility assigned
     with an IND B/Stable rating.

KEY RATING DRIVERS

TKSSKN's rating is constrained by its weak credit metrics, owing to
high working capital requirements and debt-led Capex in FY18 to
increase its production capacity to 5,500 TCD from 4000 TCD and
power production capacity to 27MW from 12MW. The debt service
coverage ratio (DSCR) has remained below 1x over the last two years
and was 0.82x in FY19 (FY18: 0.59x). TKSSKN's interest cover
increased to 2.10x in FY19 (FY18: 1.01x) and net leverage (net
debt/operating EBITDA) reduced to 5.20x (13.67x), as EBITDA
increased to INR616.36 million (INR167.38 million).

Liquidity Indicator- Stretched: TKSSKN's average maximum
utilization of the fund-based limits was 91.96% for the 12 months
ended December 2019. The average cash conversion cycle is long and
elongated to 620 days in FY19 (FY18: 206 days), marked by high
debtor and inventory levels. Ind-Ra expects the cash conversion
cycle to remain long over the medium term. At FYE19, TKSSKN's cash
and cash equivalents stood at INR28.36 million (FYE18: INR61.65
million). Available funds covered just 6% of debt servicing
requirements in FY19. The company has significant total repayment
obligations of INR509.46 million in FY20.

The rating factors in the company's medium scale of operations are
marked by revenue of INR1,917.76 million in FY19 (FY18: INR2,160.61
million) on a total of 119 crushing days. TKSSKN's total revenue
declined at a CAGR of 5.9% over FY15-FY19 due to lower revenues
from the sale of sugar, the primary source of income. The reduction
in sugar sales was due to the cyclical nature of the sugar
industry. Ind-Ra expects revenue to improve in the near term.

The rating is supported by TKSSKN's comfortable operating margins
of 32.14% in FY19 (FY18: 7.75%). The margins improved in FY19 due
to a 55.08% YoY decrease in the cost of goods sold compared to a
3.45% YoY increase in FY18. Ind-Ra expects the margins to
deteriorate in the near term with an increase in the cost of goods
sold.

The ratings are also supported by over three-decade-long experience
of TKSSKN's promoters in the sugar industry.

RATING SENSITIVITIES

Positive: Future developments could, individually or collectively,
lead to a positive rating action includes:

- consistent operating margins (maintained in excess of 15%)
- net debt/EBIDTA below 5x and DSCR above 1x
- a sustained improvement in the cash conversion cycle
- increased availability of monitorable high-frequency performance
updates

Negative: The following developments could, individually or
collectively, lead to a negative rating action:

- operating margins falling below 9%
- net debt/operating EBIDTA increasing to 10x
- any further deterioration in the cash conversion cycle
- failure to furnish monitorable high-frequency performance
updates

COMPANY PROFILE

TKSSKN came into existence in 1984 after it received an industrial
license from the government of India under the Industrial Act of
1951. The society was registered on March 10, 1981, under Karnataka
Co-operative Societies Act, 1959. The cooperative operates a
5,500TCD sugar plant and a 27MW capacity cogen power plant in
Athani Taluk of Belgaum district in Karnataka.

KUMARAPALAYAM TOLLWAYS: Ind-Ra Affirms 'D' Bank Loan Rating
-----------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed the ratings of
Kumarapalayam Tollways Ltd's (KTL) bank facilities as follows:

-- INR2,304.98 bil. (reduced from INR2,463.48 bil.) Long-term
     senior project bank loan (long-term) affirmed with IND D
     rating; and

-- INR154.95 mil. (reduced from INR 163.86 mil.) Subordinated
     loan (long-term) affirmed with an IND D rating.

KEY RATING DRIVERS

The affirmation reflects continued delays in debt servicing by KTL
due to a tight liquidity position.

RATING SENSITIVITIES

Positive: Timely debt servicing for three consecutive months, will
lead to positive rating action.

COMPANY PROFILE

KTL, which is wholly owned by IVRCL, is a special purpose company
that was set up to widen, operate and maintain a 48km road stretch
on the National Highway-47 between Kumarapalayam and Chengappalli
in Tamil Nadu. Salem Tollways Limited (debt rated 'IND D') is a
project company that was set up to undertake the upgrade and
operation of the adjoining 53km of the same highway. KTL and Salem
Tollways have a cross-default clause in the financing agreements of
both projects.

L&T HALOL: ICRA Maintains 'D' Rating in Not Cooperating Category
----------------------------------------------------------------
ICRA said the ratings for the INR577.37-crore term loans of L&T
Halol Shamlaji Tollway Limited (L&T HSTL) remains under the 'Issuer
Not Cooperating' category. The rating is denoted as '[ICRA]D ISSUER
NOT COOPERATING'.

                   Amount
   Facilities    (INR crore)     Ratings
   ----------    -----------     -------
   Term Loans       577.37       [ICRA]D ISSUER NOT COOPERATING;
                                 Rating continues to remain under
                                 'Issuer Not Cooperating'
                                 Category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA, basis the best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity.

L&T HSTL, a special purpose vehicle (SPV), was incorporated in
September 2008 as a 100% subsidiary of L&T Infrastructure
Development Projects Ltd. (L&T IDPL). The SPV has carried out the
four-laning of 173.06 km of SH-5 from Halol to Shamlaji in Gujarat.
The project was awarded by GSRDCL on build operate transfer (BOT)
basis with a concession period of 20 years, commencing from
September 2009. The commercial operation date (COD) of the project,
achieved in April 2012, was delayed by three months vis-à-vis the
scheduled COD (December 2011). The project road is a part of SH-5
in Gujarat, which starts at Vapi (border of Maharashtra), runs
through the eastern part of Gujarat and finally ends at Shamlaji
(border of Gujarat with Rajasthan). The road is called Eastern
State Highway.

In February 2017, the lenders approved project debt restructuring
under the Strategic Debt Restructuring (SDR) scheme and converted a
part of the outstanding debt for a 51% stake. One of the lenders
was not part of the above restructuring and hence, servicing of its
portion of debt remained irregular.

In July 2019, National Company Law Tribunal (NCLT) ordered the
commencement of a corporate insolvency resolution process (CIRP) of
L&T HSTL and appointed an Interim Resolution Professional (IRP) as
an application was filed by one of the senior lenders with NCLT
against the company.

LEMOSA TILES: ICRA Migrates 'B+' Rating to Not Cooperating
----------------------------------------------------------
ICRA has moved the ratings for the INR9.00 crore bank facilities of
Lemosa Tiles LLP to issuer not cooperating category. The ratings
are denoted as "[ICRA]B+ (Stable) ISSUER NOT COOPERATING"

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund-based-          6.00       [ICRA]B+ (Stable); ISSUER NOT
   Term Loans                      COOPERATING; Rating moved
                                   to 'Issuer Not Cooperating'
                                   category

   Fund-based           3.00       [ICRA]B+ (Stable); ISSUER NOT
   Cash Credit                     COOPERATING; Rating moved
                                   to 'Issuer Not Cooperating'
                                   category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.

LTL was established in April 2016 and is involved in manufacturing
glazed ceramic wall tiles in two sizes viz. 10 X 30 inches and 12 X
24 inches. The manufacturing facility of the firm is located at
Morbi with an installed capacity to manufacture 30,000 metric tonne
(7,000 boxes per day) of glazed ceramic wall tiles per annum. The
unit became fully operational from January 2017.


LOOCUST INCORP: Ind-Ra Affirms Then Withdraws 'D' LT Issuer Rating
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed and withdrawn
Loocust Incorp Apparel Export Private Limited's (Loocust) Long-Term
Issuer Rating of 'IND D'.

The instrument-wise rating actions are:

-- INR150 mil. Term loans (long-term)* due on March 2022 affirmed

     and withdrawn;

-- INR980 mil. Fund-based facilities (short-term)* affirmed and
     withdrawn; and

-- INR420 mil. Non-fund-based facilities (short-term)* affirmed
     and withdrawn.

*Affirmed at 'IND D' before being withdrawn

KEY RATING DRIVERS

The affirmation reflects delays in debt servicing by Loocust during
the three months ended January 20, 2020, owing to a tight liquidity
position.

Ind-Ra is no longer required to maintain the ratings as the agency
has received no-objection certificates from the rated facilities'
lenders. This is consistent with the Securities and Exchange Board
of India's circular dated March 31, 2017, for credit rating
agencies.

COMPANY PROFILE

Founded in 2003, Loocust is a Tirupur-based knitted garment
manufacturer and has 4,246 sewing machines across 10 production
units in and around Tirupur. Loocust acquired Sree Ambaal
Processors Private Limited in March 2015. The latter meets around
50% of Loocust's dyeing requirements.

M S RAMAIAH: ICRA Raises Rating on INR20cr LT Loan to B+
--------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of M S
Ramaiah Foundation (MSRF), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term-          20.00       [ICRA]B+ (Stable); Upgraded
   Term Loan                       From [ICRA]B- (Stable)

   Long Term-           1.25       [ICRA]B+ (Stable); Upgraded
   Cash Credit                     From [ICRA]B- (Stable)

   Long Term-           3.75       [ICRA]B+ (Stable); Upgraded
   Unallocated                     From [ICRA]B- (Stable)

Rationale

The upgrade in the rating considers the extended track record of
timely debt servicing by M S Ramaiah Foundation (MSRF) and the
improvement in MSRF's capital structure following prepayment of its
unsecured loans. The rating continues to derive comfort from the
extensive experience of its promoters in the education sector for
nearly four decades, and the M S Ramaiah Group's strong brand image
and established market position.

The rating, however, continues to remain constrained by the
seasonality in cash inflows against periodic debt repayment
obligations and operational expenditure, which necessitate prudent
cash flow management to ensure regular debt servicing. The rating
is also constrained by the decline in revenues and margins in
FY2019 owing to discontinuation of its management courses
affiliated with the University of Mysore resulting in lower
occupancy levels. MSRF's operations continue to remain vulnerable
to regulatory risks arising from regulatory bodies such as the
University Grants Commission (UCG), the All India Council for
Technical Education (AICTE), the Bar Council of India (BCI),
universities and state governments etc. MSRF is governed on various
aspects of its operations including student intake, infrastructure
requirements, as well as teaching and training quality of the
institutes. The rating also considers stiff competition faced by
its institutes from other institutes and colleges in attracting
quality students and retaining faculties. Besides, the rating
considers MSRF's significant reliance on its management courses for
a bulk of revenues and profits. ICRA also not of the planned
debt-funded capital expenditure for constructing a college building
for Ramaiah Institute of Management Studies.

The Stable outlook on the [ICRA]B+ rating reflects ICRA's opinion
that MSRF will continue to benefit from the extensive experience of
its promoters and its established track record in the education
sector. The financial profile of the trust is likely to remain
stable given the high demand for courses offered by MSRF, coupled
with periodic fee revisions and addition of new courses.

Key rating drivers and their description

Credit strengths

Extensive track record of trustees in higher education sector: Dr.
M R Pattabiram is the Managing Trustee of the foundation and the
Founder Director of all the institutions under MSRF. He is also a
Trustee Member of Gokula Education Trust (GET) for the past 37
years, which is a family-owned trust of M. S. Ramaiah group and
runs various educational institutions offering medical, engineering
and management courses, among others.

Comfortable capital structure and debt coverage metrics: MSRF's
financial risk profile remained comfortable as characterised by its
comfortable capital structure with a gearing of 1.0 times as on
March 31, 2019 compared to 1.3 times as on March 31, 2018. Its debt
protection metrics also stood comfortable with an interest coverage
of 3.8 times, TOL/TNW of 1.1 times, NCA/TD of 21.7% and DSCR of 2.8
times in FY2019.

Credit challenges

Dependence on management courses for bulk of revenues and profits:
MSRF has significant reliance on its management courses, which
contributed around 77% of revenues in FY2019. Going forward, the
management plans to start new courses in its existing colleges to
diversify its revenues.

Seasonality in cash flows- Inherent to the educational
institutions, the cash flows are seasonal in nature against
periodic repayment obligations and operational expenditure, which
necessitate prudent cash flow management to ensure regular
debt servicing.

Exposed to strict regulations framed by various regulatory bodies:
The trust's operations continue to remain vulnerable to strict
regulations framed by regulatory bodies such as UCG, AICTE, BCI,
universities and state governments etc. These bodies frame
regulations on various aspects of its operations including student
intake, infrastructure requirements, as well as teaching and
training quality of the institutes. Any non-compliance or violation
of the regulations may lead to cancellation of affiliation and may
put restriction on new admissions, impacting its revenues and cash
flows.

Stiff competition from other institutes offering similar courses:
The institutes under MSRF face stiff competition from other
established institutions offering similar courses in attracting
students that could impact the occupancy levels and subsequently
the surpluses. However, this risk is partly mitigated by the brand
position enjoyed by the M S Ramaiah Group in and around Bangalore.

Liquidity position: Adequate

The liquidity position of trust remains adequate, supported by
healthy cash flows from operations because of healthy operating
margins and low working capital intensity. The average working
capital utilisation also remained comfortable at 26% between April
2019 and November 2019. Going forward, its cash accruals are
expected to be adequate to meet the debt repayment obligations and
the margin requirements for the expected capital expenditure over
the near to medium term.

Rating sensitivities

Positive triggers – ICRA may upgrade MSRF's rating if the trust
is able to improve its scale of operations and profit margins,
while managing its cash flows efficiently.

Negative triggers – Negative Pressure on MSRF's rating may arise,
if any reduction in the trust's revenues and profitability leads to
tightening of the liquidity position. Any higher-than-estimated
capital expenditure or any higher than estimated withdrawal of
unsecured loans from promoters, leading to weakening in the
liquidity position, may also result in a rating downgrade.

M S Ramaiah Foundation was established as a charitable trust in
2007 to focus on the business education sector. The trust offers
undergraduate and post-graduate courses in the fields of business
management, commerce, arts and law. Dr. M R Pattabiram is the
Managing Trustee of the foundation and the Founder Director of all
the institutions under MSRF.

In FY2019, the trust reported a net profit of INR1.9 crore on an OI
of INR26.1 crore compared to a net profit of INR4.1 crore on an OI
of INR29.2 crore in the previous year.

MATRIX CERAMIC: ICRA Maintains B+ Rating in Not Cooperating
-----------------------------------------------------------
ICRA said the ratings for the INR7.12 crore bank facilities of
Matrix Ceramic. The ratings are denoted as "[ICRA]B+ (Stable)/A4;
ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer
Not Cooperating' category."

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Long-term fund-      5.62      [ICRA]B+ (Stable); ISSUER NOT
   Based limits                   COOPERATING; Rating continues
                                  to remain under 'Issuer Not
                                  Cooperating' category

   Short-term non       1.50      [ICRA]A4; ISSUER NOT
   fund-based limits              COOPERATING; Rating continues
                                  to remain under 'Issuer Not
                                  Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.

Matrix Ceramic is a partnership firm promoted by Mr. Jayesh Aghara
along with his family members and relatives.

Incorporated in 2006, Matrix Ceramic commenced commercial
production of ceramic floor tiles of 12"x12" dimension in September
2007 with a production capacity of 6,500 boxes per day. Currently
the product profile of the firm comprises of ceramic wall tiles of
size 8"x12" and ceramic floor tiles of 12"x12" with a production
capacity to manufacture 9,000 boxes of wall tiles or 8000 boxes of
floor tiles per day. Its plant is located at Morbi in Rajkot
district of Gujarat.


MODEL TANNERS (INDIA): Ind-Ra Cuts LT Rating to BB, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Model Tanners
(India) Private Limited's (MTIPL) Long-Term issuer rating to 'IND
BB' from 'IND BBB-'. The Outlook is Stable.

The instrument wise rating actions are:

-- INR600 mil. Fund based working capital limit downgraded with
     IND BB/Stable/IND A4+ rating; and

-- INR100 mil. Non-fund-based working capital limit downgraded
     with an IND A4+ rating.

KEY RATING DRIVERS

The downgrade reflects the continued decline in MTIPL's small scale
of operations, as reflected by a 16.4% YoY fall in revenue to
INR1,293.4 million in FY19, majorly driven by a decline in demand
for upholstery leather and decline in the global leather prices.
The company recorded revenue of INR767.9 million in 9MFY20. Ind-Ra
expects the company's revenue to further decline in FY20 owing to
the continued weakness in the international leather market.

The ratings reflect continued elongation in MTIPL's working capital
cycle at 176 days in FY19 (FY18: 183; FY17: 174), majorly because
of the high inventory holding and debtors days. MTIPL stocks
finished leather, which has a shelf life of more than a year, due
to which the inventory days increased to 250 days in FY19 (FY18:
221 days) as the management expects the prices of leather to be
stabilized in FY20 and start increasing FY21 onwards. The higher
inventory exposes the company to the risk of inventory losses if
the prices of leather further decline. Ind-Ra expects the company's
inventory holding period to increase further in FY20 as the
inventory of the company remained high at INR761 million, as of
September 30, 2019, compared to INR753 million at FYE19.
Liquidity Indicator - Stretched: MTIPL's average maximum
utilization of its fund-based limit was 73% for the 12 months
period ended December 2019. It reported healthy cash flow from
operations of INR226 million in FY19 (FY18: INR71 million) due to
the favorable changes in the working capital requirement. However,
the liquidity profile of the company is likely to deteriorate in
FY20 and FY21, as a significant increase in the inventory holdings
and reduction in creditors of the company would lead to an increase
the working capital requirement of the company, and this would turn
the cash flow from operations negative. The cash balance of the
company declined to INR20.3 million in FYE19 from INR117.5 million
in FY18.

The ratings are further constrained by the company's modest EBITDA
margin of 10% in FY19 (FY18: 9.5%; FY17: 9.17%) due to its presence
in the highly fragmented leather industry. The margin expanded in
FY19 on a reduction in raw material costs and the company's ability
to maintain a higher realization. The return on capital employed
stood at 6% in FY19. MTIPL margin expanded to 12% in 6MFY20.

The ratings are also constrained by the company's exposure to forex
risks due to the absence of a hedging policy; the company derives
about 80% of its total revenue from exports.

The ratings, however, are supported by MTIPL's comfortable credit
metrics. The interest coverage (operating EBITDA/ gross interest
expense) of the company remained comfortable at 2.6x in FY19 (FY18:
2.8x) and the net leverage (total net debt/ operating EBITDA)
improved to 5.0x (5.7x) due to the lower utilization of its working
capital limits.

The ratings also benefit from its promoters' experience of more
than 30 years in the leather industry.

RATING SENSITIVITIES

Negative: A decline in the profitability, further elongation in the
working capital cycle or any unexpected debt-led capex leading to
interest coverage below 1.5x, could be negative for the ratings.

Positive: A significant increase in the revenue, a decline in the
working capital cycle, and improvement in the liquidity profile of
the company, all on a sustained basis, could be positive for the
ratings.

COMPANY PROFILE

Incorporated in 1994, MTIPL primarily manufactures upholstery
leather for the furniture and automotive sectors. It is part of the
Model Group. The group is managed by Mr. Maqsood Alam, Mr. Marghoob
Alam, Mr. Moid Alam, and Mr. Mehtab Alam.

MODEL TANNERS (MT): Ind-Ra Lowers LT Rating to BB-, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Model Tanners'
(MT) Long-Term Issuer Rating to 'IND BB-' from 'IND BB+'. The
Outlook is Stable.

The instrument-wise rating actions are:

-- INR260 mil. Fund-based working capital limit Long-term rating
     downgraded; Short-term rating affirmed with IND BB-
     /Stable/IND A4+ rating; and

-- INR80 mil. Non-fund-based working capital limit affirmed with
     IND A4+ rating.

KEY RATING DRIVERS

The downgrade reflects MT's continued small scale of operations, as
reflected by revenue of INR703.28 million in FY19 (FY18: INR1,047
million). Revenue declined due to the continued weakness in the
international leather industry. Resultantly, MT's operating profits
declined to INR59.77 million in FY19 (FY18: INR86.8 million). The
company achieved revenue of INR551.3 million in 9MFY20.

The downgrade factors in MT's modest EBITDA margins, which expanded
slightly to 8.50% in FY19 (FY18: 8.3%), as the company did not pass
through the lower raw material prices to its customers. The company
witnessed an improvement in its EBITDA margin in 1HFY20 owing to
the introduction of the shoe upper segment, which is a high-margin
segment.

The ratings also factor in MT's modest credit metrics. Interest
coverage (operating EBITDA/gross interest expense) deteriorated to
2.12x in FY19 (FY18: 2.95x) and net leverage (total net
debt/operating EBITDA) to 7.80x (5.67) due to decline in operating
profits.

The rating factor in the company's presence in a highly regulated
industry, as tanning falls under the government's orange category
of industries, based on their pollution load. Furthermore, the
Uttar Pradesh government had temporarily closed the tanneries from
December 15, 2018, to March 15, 2019, due to the Mahakumbh
preparations. As per the management, tanneries in the Banthar
region, including MT, were unaffected and remained operational.
However, the firm is subject to government and environmental
regulations which might affect the operations of the firm or lead
to additional expenditure to comply with higher environmental
norms.

The rating is constrained by the company's elongated net working
capital cycle which deteriorated to 204 days in FY19 (FY18: 155
days) due to the increase in inventory holding period to 213 days
(126 days). The inventory holding period increased due to the
addition of a new product in the product portfolio and the stocking
of semi-finished leather, which has a shelf life of more than a
year. The company stocked the semi-finished leather as the
management expects its prices to increase going forward.

Liquidity indicator- Stretched: MT's average utilization of working
capital limits stood at 93% till the 12 months ended December 2019.
Furthermore, the company infused unsecured loans to fund its
increased working capital requirements. However, the cash flow from
the operation improved to INR107 million (FY18: INR8.03 million)
due to the increase in creditor days to 110 days (86 days).

The ratings are also constrained by MT's partnership nature of
business; any substantial capital withdrawal would impact the net
worth, and thereby the capital structure of the firm.

The ratings, however, are supported by the promoters' experience,
since 1982, in the leather and hide trading business while being a
part of the Model Group, which produces finished upholstery
leather, leather for shoes, belts, and bags.

RATING SENSITIVITIES

Negative: A decline in the profitability, further elongation in the
working capital cycle or any unexpected debt-led capex leading to
deterioration in the interest coverage below 1.5x, could be
negative for the ratings.

Positive: A significant increase in the revenue, EBITDA margin and
a decline in the working capital cycle, leading to net leverage
falling below 4x, all on a sustained basis, could be positive for
the ratings.

COMPANY PROFILE

Established in December 2013, MT is a partnership firm and
manufactures safety shoes and finished leather from rawhide majorly
for safety shoes. MT is a part of the Model Group. Tabrez Alam,
Zeeshan Alam, and Zain Alam are its partners.

NAYARA ENERGY: Moody's Downgrades CFR to Ba3, Outlook Negative
--------------------------------------------------------------
Moody's Investors Service downgraded Nayara Energy Limited's
corporate family rating to Ba3 from Ba2.

At the same time, Moody's has changed the outlook on the rating to
negative from stable.

RATINGS RATIONALE

"The downgrade to Ba3 reflects the significant deterioration in
Nayara's credit metrics, driven largely by the weak refining margin
environment in Asia," says Sweta Patodia, a Moody's Analyst.

The weak industry conditions are reflected in the Singapore
benchmark refining margins, which declined to around $4.9/bbl for
the fiscal year ending March 2019 (FY2019) from $7.2/bbl in FY2018.
The margins further declined to around $3.4/bbl for the quarter
ended June 2019. The weakness in refining margins was attributable
to weak product demand as well as high differential between Brent
and West Texas Intermediate (WTI) crude oil prices, which kept
feedstock cost elevated for Asian refiners.

Nayara's operating performance was further affected by a planned
maintenance shutdown in December 2018, which resulted in lower
throughput and capacity utilization during the period. In addition,
the implementation of new accounting standards with respect to
operating leases resulted in higher leverage and further weakened
the company's credit metrics.

Consequently, Nayara's leverage -- as measured by debt/EBITDA --
increased to approximately 6.3x for last twelve months ended June
30, 2019 from 3.9x for fiscal year ended March 2018, and interest
cover -- as measured by EBIT/interest -- declined to 1.5x from 2.1x
over the same period.

Tightening regulations on the use of heavy fuel oil in the shipping
industry from January 2020 will result in an increase in demand for
middle distillates and thus lead to some recovery in refining
margins. Moody's expects Nayara to benefit from the new regulations
given its high proportion of light and middle distillate output.
However, the impact of recent outbreak of coronavirus on regional
demand growth of petroleum product remains uncertain.

In addition, the expansion of the company's fuel retail network
along with the deployment of surplus cash towards debt reduction
will support further improvement in its profitability and credit
metrics.

"While we expect Nayara's credit metrics to improve over the next
12-18 months, they will continue to remain weakly positioned", adds
Patodia, who is also Moody's Lead Analyst for Nayara.

In particular, Moody's expects the company's debt/EBITDA to improve
to around 4.7x by March 2021, while its EBIT/interest cover will
improve to around 1.8x over the same period.

Nayara's Ba3 CFR reflects the company's high-complexity and
strategically located refinery which has historically supported
high margins and has a stable operating track record. The rating is
further supported by a supportive shareholder group that includes
PJSC Oil Company Rosneft (Baa3 stable) and a consortium comprising
Trafigura Holdings Pte Ltd and UCP PE Investment Limited.

Nonetheless, the rating remains constrained by its moderate
refinery scale, single-site operations with high reliance on a
primary crude distillation unit and exposure to the inherently
cyclical nature of the industry.

The negative outlook reflects that the regional refining margin
environment continues to remain uncertain and could delay
improvement in Nayara's credit metrics from current levels.

Nayara's rating also considers the following environmental, social
and governance (ESG) factors.

First, Nayara is exposed to increasing environmental regulations
and safety risks associated with its refining business, which is
among the 11 sectors that Moody's has identified as having elevated
environmental risk. However, these risks are somewhat mitigated by
continued strong demand for petroleum products in India, as well as
by the company's track record of environmental compliance and its
high refining complexity.

Second, Nayara is also exposed to governance risks due to its
private and concentrated ownership structure. Nayara's board
consists of 10 directors of which only 2 are independent. However,
this risk is somewhat mitigated by the support from the
shareholders in the form of product offtake, sourcing of crude and
liquidity management.

Nayara has strong liquidity. At June 30, 2019, Nayara had
unrestricted cash and cash equivalents of around INR32 billion
compared to INR64 billion (including short term debt and export
prepayments) of debt maturing over the next 12 months. Moody's
expects the company's cash flows from operations along with
existing cash balances will be sufficient to cover its capex and
debt maturities over the next 12 months. In addition, the company
also has access to INR38.9 billion of undrawn committed working
capital facilities, although Moody's notes that these are less than
364-day facilities.

Given the negative outlook, an upgrade is unlikely over the next
12-18 months. The outlook could return to stable if there is an
improvement in the operating environment which leads to an
improvement in the company's profitability. Specific credit metrics
Moody's would consider to stabilize the outlook include adjusted
debt/EBITDA falling below 4.0x and adjusted EBIT interest cover
above 2.0x on a sustained basis.

Nayara's Ba3 CFR could be downgraded if 1) the operating
environment fails to recover such that Nayara's profitability and
cash flow generation remains depressed; 2) it faces operational
disruption at its refinery; 3) it embarks on material debt-funded
expansions or acquisitions or engages in shareholder distributions
over the next 3-4 years that lead to a material deterioration in
credit metrics from current levels.

Specific credit metrics Moody's would consider for a downgrade
include adjusted debt/EBITDA staying above 4.5x and adjusted EBIT
interest cover below 1.5x.

The principal methodology used in this rating was Refining and
Marketing Industry published in November 2016.

Nayara Energy Limited is a refiner and supplier of petroleum
products in India and overseas. It operates the country's second
largest single-site refinery in Gujarat, with a nameplate capacity
of 405 thousand barrels per day and a high complexity index of
11.8.

NBM IRON: ICRA Maintains 'B-' Rating in Not Cooperating
-------------------------------------------------------
ICRA said the ratings for the INR69.36 -crore bank facilities of
NBM Iron and Steel Trading Private Limited (NMB) continues to
remain under 'Issuer Not Cooperating' category. The ratings are
denoted as "[ICRA]B+ (Stable)/ A4; ISSUER NOT COOPERATING".

                      Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Non fund-based       49.98      [ICRA]A4; ISSUER NOT
   limits                          COOPERATING; Rating continues
                                   to remain under 'Issuer Not
                                   Cooperating' category

   Unallocated          19.38      [ICRA] B- (Stable); ISSUER NOT
   limits                          COOPERATING; Rating continues
                                   to remain under 'Issuer Not
                                   Cooperating' category

   Long-term/Short     (49.00)     [ICRA]B+(Stable)/A4 ISSUER NOT
   Term non fund                   COOPERATING; Rating continues
   based limits                    to remain under 'Issuer Not
                                   Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.

NBM Iron & Steel Trading Private Limited was originally
incorporated in August 1997 as Hussain Sheth Ship Breakers Private
Limited, in Bhavnagar. After temporarily suspending ship-breaking
activities, the company was renamed as NBM Iron and Steel Trading
Private Limited in 2005 and resumed ship-breaking activities in
2009.  Presently, NBM operates from Plot No. 61 (2,178 square
metres) at Alang-Sosiya Ship breaking Yard, Bhavnagar on a  lease
basis from Gujarat Maritime Board (GMB). NBM procures ships from
the international market for the purpose of ship-breaking,
recycling and selling the scrap in the domestic market.

PRIME LUMBERS: ICRA Maintains 'B-' Rating in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR7.25 crore bank facilities of
Prime Lumbers Pvt. Ltd (PLPL) continues to remain under 'Issuer Not
Cooperating' category. The ratings are denoted as "[ICRA]B-
(Stable)/ A4; ISSUER NOT COOPERATING".

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund based-Cash      3.25       [ICRA] B- (Stable); ISSUER NOT
   Credit                          COOPERATING; Rating continues
                                   to remain under 'Issuer Not
                                   Cooperating' category

   Non-Fund based       4.00       [ICRA]A4; ISSUER NOT
   Letter of Credit                COOPERATING; Rating continues
                                   To remain under 'Issuer Not
                                   Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best
available/dated/limited information on the issuers' performance.
Accordingly, the lenders, investors and other market participants
are advised to exercise appropriate caution while using this rating
as the rating may not adequately reflect the credit risk profile of
the entity.

Prime Lumbers Private Limited (PLPL) was incorporated in 2001 and
is engaged in the business of trading of timber logs with its
factory located at Gandhidham (Gujarat). The company is managed by
its promoters, Mr. Rohit Shah and Ms. Bhavna Shah who have long
standing experience in the timber industry through their
association with two of the group concerns, Woodman Veneers Private
Limited (WVPL) and Woodman Trading Private Limited (WTPL). While
WTPL is engaged in the similar business as that of PLPL, WVPL is
engaged in the manufacturing of veneers as well. The company's
product portfolio comprises of various qualities of timber which
primarily finds application in furniture making, construction and
packaging industry. The company imports timber mainly from
Singapore, New Zealand, Africa, Germany and Malaysia.


RAJARATNA MILLS: Ind-Ra Affirms BB Issuer Rating, Outlook Stable
----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed The Rajaratna
Mills Private Limited's (RMPL) Long-Term Issuer Rating at 'IND BB'.
The Outlook is Stable.

The instrument-wise rating actions are:

-- INR97.6 mil. (reduced from INR119.8 mil.) Term loan due on
     January 2023 affirmed with IND BB/Stable rating;

-- INR308.7 mil. (increased from INR250 mil.) Fund-based limits
     affirmed with IND BB/Stable/IND A4+ rating; and

-- INR50.0 mil. (reduced from INR86.5 mil.) Non-fund-based limits

     affirmed with IND A4+ rating.

KEY RATING DRIVERS

Ind-Ra has affirmed the ratings, despite the expectation of a dip
in RMPL's credit profile in FY20 due to the ongoing slowdown in the
textile industry, due to an improvement in the operating
performance and credit profile in FY19.

Revenue grew to INR1,208.0 million in FY19 (FY18: INR1,117.0
million) due to an increase in the order flow. The company booked
revenue of INR720 million in 8MFY20 (8MFY19: INR764.4 million), and
as of January 3, 2020, had an order book of INR85.56 million, to be
completed by February 2020.

The rating factor in RMPL's modest credit metrics. Interest
coverage (operating EBITDA/gross interest expense) improved to 2.8x
in FY19 (FY18: 1.8x) and net leverage (total adjusted net
debt/operating EBITDAR) to 4.3x (6.6x), owing to an increase in
absolute EBITDA to INR110.73 million (INR76.34 million).

The ratings further factor in RMPL's modest EBITDA margin, which
expanded to 9.2% in FY19 (FY18: 6.8%), due to the increase in the
revenue realization and modernization of machinery. The management
expects the company's margin to contract to 8%-9% in the
near-to-medium due to a slowdown in the industry. RMPL's return on
capital employed stood at 9% in FY19 (FY18: 5%).

Liquidity Indicator - Stretched: RMPL's average use of the working
capital limits was 91% during the 12 months ended December 2019. In
FYE19, cash & cash equivalents declined to INR87.40 million (FY18:
INR10.50 million) as against the total outstanding term debt of
INR124.87 million as Of March 31, 2019, which will be repaid by
January 31, 2023.  

Its cash flow from operations declined to INR3.48 million in FY19
(FY18: INR18.29 million), mainly on account of elongation of the
working capital cycle to 142 days (120 days), due to an increase in
inventory days. RMPL's free cash flows remained negative at
INR43.39 million in FY19 (FY18: negative INR58.49 million), due to
the CAPEX incurred towards modernization and capacity expansion.
The company has a repayment obligation of INR15.01 million and
INR37.53 million for FY20 and FY21, respectively.

The ratings, however, are also supported by the promoter and his
family's operational track record of more than a decade in yarn
manufacturing.

RATING SENSITIVITIES

Positive: Any improvement in the revenue and EBITDA margin, leading
to an improvement in the credit metrics, and improvement in the
liquidity position could be positive for the ratings.
Negative: Any decline in the EBITDA margin and new debt-led CAPEX,
leading to deterioration in the credit metrics on a sustained
basis, or a stretch in the liquidity position could be negative for
the ratings.

COMPANY PROFILE

Formed in 1954, RMPL manufactures cotton yarn in Palani, Tamil
Nadu.

REPUTE FOODS: ICRA Maintains 'B' Rating in Not Cooperating
----------------------------------------------------------
ICRA has continued the long-term ratings for the bank facilities of
Repute Foods Pvt. Ltd. (RFPL) to the 'Issuer Not Cooperating'
category. The rating is denoted as "[ICRA]B (Stable) ISSUER NOT
COOPERATING".

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Term Loan           1.92       [ICRA]B (Stable); ISSUER NOT
                                  COOPERATING; Rating continues
                                  to remain under 'Issuer Not
                                  Cooperating' category


   Cash Credit         4.00       [ICRA]B (Stable); ISSUER NOT
                                  COOPERATING; Rating continues
                                  to remain under 'Issuer Not
                                  Cooperating' category

   Unallocated
   Limits              7.08       [ICRA]B (Stable); ISSUER NOT
                                  COOPERATING; Rating continues
                                  to remain under 'Issuer Not
                                  Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.

Incorporated on September 2013, Repute Foods Private Limited (RFPL)
is engaged in processing of cashew kernels from raw cashew nuts
(RCN) with its plant located at Rajkot, Gujarat, having an
installed capacity of processing ~4 ton of cashew kernels per day
(considering the 24 hours processing). The company is also engaged
in sorting and trading of food grains such as raw cashew nuts,
wheat, urad, tuvar, onion, cumin etc. The key promoter Mr. Kishor
Vachhani has long standing experience in agro commodity trading
business though his association with group concerns namely AEM
Investment Ltd, Rajdeep Corporation, Farmrich General Trading LLC
and Repute Exim Private Limited.

RESOURCE WORLD: Insolvency Resolution Process Case Summary
----------------------------------------------------------
Debtor: Resource World Exim Pvt Ltd
        606, Ecohouse
        Vishweshwar Nagar
        Off Aarey Road
        Goregaon (East)
        Mumbai MH 400063
        IN

Insolvency Commencement Date: November 19, 2019

Court: National Company Law Tribunal, Mumbai Bench

Estimated date of closure of
insolvency resolution process: July 19, 2020
                               (180 days from commencement)

Insolvency professional: Yogesh Gyanchand Choudhary

Interim Resolution
Professional:            Yogesh Gyanchand Choudhary
                         Jain & Choudhary Chartered Accountants
                         80/84, Dadiseth Agyari Lane
                         Off No. 22, 2nd Floor
                         Kalbadevi, Mumbai
                         Maharashtra 400002
                         E-mail: ca_yogesh@yahoo.com

                            - and -

                         Pranjal International Resolutions Pvt Ltd
                         101/B Om Sai Niwas
                         Subhash Road, Vile Parle East
                         Mumbai 400057
                         E-mail: ip.resourceworld@gmail.com

Last date for
submission of claims:    February 4, 2020


S.S. INFRAZONE: Ind-Ra Affirms BB LT Issuer Rating, Outlook Stable
------------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed S.S. Infrazone
Private Limited's (SIPL) Long-Term Issuer Rating at 'IND BB'. The
Outlook is Stable.

The instrument-wise rating actions are:

-- INR5 mil. Fund-based limits affirmed with IND BB/Stable/IND
     A4+ rating; and

-- INR495 mil. Non-fund-based limits affirmed with IND A4+
     rating.

KEY RATING DRIVERS

The affirmation takes into consideration SIPL's continued small
scale operations despite an increase of 100.67% in the revenue to
INR1,538 million in FY19. The revenue grew on the back of increased
execution of work orders. The company's order book amounted to
INR1,842.35 million, which is 1.2x of the FY19 revenue, as of
January 2020.

Liquidity Indicator - Poor: SIPL's average maximum utilization of
fund-based facilities was 91.7% for the 12 months ended December
2019, with a few instances of overutilization. The cash flow from
operations increased to INR210.63 million (FY18: INR43.93 million)
and the free cash flow increased to INR188.82 million (FY18:
INR42.53 million) due to an increase in the absolute EBITDA and
improvement in the working capital cycle. The cash balance amounted
to INR114.06 million at end-FY19 (endFY18: INR31million) due to
customer payments received at the year-end.

The ratings reflect comfortable credit metrics due to low debt
levels. The metrics improved in FY19 due to an increase in the
absolute EBITDA to INR151.52million (FY18:108.42million) and a
decline in net borrowings to INR101.20 million (FY18: INR210.70
million). The interest coverage ratio (operating EBITDA/gross
interest expense) improved to 9.8x in FY19 (FY18: 5.2x) and the net
leverage turned negative (1.7x).

The rating continues to be constrained by the company's limited
track record and its high susceptibility to government regulations
due to the tender-based business.

The ratings, however, are supported by the healthy EBITDA margins.
The margin declined to 9.85% in FY19 (FY18: 14.14%; FY17: 10.5%)
owing to an increase in raw material prices and operating expenses,
including royalty charges and labor cess expenses. The  RoCE was
24% in FY19 (FY18: 8%). However, the margins have been volatile due
to the nature of the business.

The ratings continue to benefit from SSIPL's promoters' experience
of more than two decades in the construction business.

RATING SENSITIVITIES

Negative: Further decline in the operating profitability and
deterioration in the liquidity position could be negative for the
ratings.

Positive: Improvement in order book position, with revenue
visibility of 2x and above, along with an improvement in the
liquidity position, could be positive for the ratings.

COMPANY PROFILE

Formed in 2012, SSIPL undertakes construction contracts mainly for
Jhansi Public Works Department, Gorakhpur Public Works Department,
and Lucknow Irrigation Authority. The company has been classified
as Class-I under Central Public Works Department, India (B&R) since
1990 and Class-IA Municipal Corporation of Delhi since 1981.

SALEM TOLLWAYS: Ind-Ra Affirms 'D' Bank Loan Rating
---------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed the ratings of
Salem Tollways Ltd's (STL) bank facilities as follows:

-- INR667.03 mil. (reduced from INR1.083 bil.) Long-term senior
     project bank loan (long-term) affirmed with IND D rating; and

-- INR99.83 mil. (reduced from INR131.7 mil.) Subordinated loan
     (long-term) affirmed with an IND D rating.

KEY RATING DRIVERS

The affirmation reflects STL's continued delays in debt servicing
for the 12 months ended December 2019. STL has represented that
only additional interest charged by one of the lenders is unpaid.

RATING SENSITIVITIES

Positive: Timely debt servicing for three consecutive months will
lead to a positive rating action

COMPANY PROFILE

STL, which is wholly owned by IVRCL, is a special purpose company
set up to widen, operate and maintain a 53km stretch on the
National Highway-47 between Kumarapalayam and Salem in Tamil Nadu.
There is a cross-default clause in the financing documents of STL
and Kumarapalayam Tollways Limited ('IND D'), a special purpose
company set up by IVRCL to widen, operate and maintain a 48km road
stretch on the National Highway-47 between Kumarapalayam and
Chengappalli in Tamil Nadu.

SAURABH AGROTECH: ICRA Cuts Rating on INR33cr LT Loan to B+
-----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Saurabh
Agrotech Private Limited, as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term-Fund      33.00       [ICRA]B+ (Stable) ISSUER NOT
   based-CC                        COOPERATING; Rating downgraded
                                   from [ICRA]BB(Stable) and
                                   continued to remain under the
                                   'Issuer Not Cooperating'
                                   Category

   Long Term-Fund       0.82       [ICRA]B+ (Stable) ISSUER NOT
   based-TL                        COOPERATING; Rating downgraded
                                   from [ICRA]BB(Stable) and
                                   continued to remain under the
                                   'Issuer Not Cooperating'
                                   Category

   Short Term-Fund     20.00       [ICRA]A4 ISSUER NOT
   Based                           COOPERATING; Rating continued
                                   to remain under the 'Issuer
                                   Not Cooperating' category

   Short Term Non       0.10       [ICRA]A4 ISSUER NOT
   Fund Based                      COOPERATING; Rating continued
                                   to remain under the 'Issuer
                                   Not Cooperating' category

Rationale

The rating downgrade is because of lack of adequate information
regarding Saurabh Agrotech Private Limited performance and hence
the uncertainty around its credit risk. ICRA assesses whether the
information available about the entity is commensurate with its
rating and reviews the same as per its "Policy in respect of
non-cooperation by the rated entity". The lenders, investors and
other market participants are thus advised to exercise appropriate
caution while using this rating as the rating may not adequately
reflect the credit risk profile of the entity, despite the
downgrade.

As part of its process and in accordance with its rating agreement
with Saurabh Agrotech Private Limited, ICRA has been trying to seek
information from the entity so as to monitor its performance, but
despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.

Incorporated in 2006, SMDPL is promoted by Tholia family in Jaipur,
Rajasthan. The company is engaged in the business of processing of
milk, milk products and sweets like Rasgulla, Gulab Jamun etc. The
manufacturing plant of the company is located in RIICO Industrial
Area, Kaladera, Rajasthan. SMDPL started its business as a job
worker for Reliance for packaging of pasteurized milk and later on
forward integrated into manufacturing of other products like ghee,
sweets
etc.

Saurabh Agrotech Private Limited (SAPL) was incorporated in 1994 as
a part of the Data Group and commenced commercial production of
edible oils in 2000. SAPL is engaged in manufacturing and sale of
mustard oil and oil cake under the brands "Scooter", "Ashoka" and
"Shivam" in various consumer packaging sizes. The company's plant,
located in Alwar, Rajasthan, has a crushing capacity of 100 tonnes
per day (TPD) of mustard oilseeds –a production capacity of
60,000 MTPA. It also trades in mustard oil and has increased its
trading volumes in the recent years.

SHAKTI POLYTEX: ICRA Maintains 'D' Rating in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR27.00 crore bank facilities of
Shakti Polytex Private Limited (SPPL) to remain under Issuer Not
Cooperating category. The long-term rating is denoted as [ICRA]D
ISSUER NOT COOPERATING.

                     Amount
   Facilities      (INR crore)   Ratings
   ----------      -----------   -------
   Long Term-Fund     18.00      [ICRA]D; ISSUER NOT COOPERATING;
   Based/CC                      Rating continues to remain under
                                 the 'Issuer Not Cooperating'
                                 category

   Long Term-Fund      5.85      [ICRA]D; ISSUER NOT COOPERATING;
   Based TL                      Rating continues to remain under
                                 the 'Issuer Not Cooperating'
                                 category

   Long Term-         3.15       [ICRA]D; ISSUER NOT COOPERATING;
   Unallocated                   Rating continues to remain under
                                 the 'Issuer Not Cooperating'
                                 category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.

SPPL was incorporated in August, 2010, and is engaged in the
manufacturing of RPSF using waste polyethylene terephthalate (PET)
bottles as raw material. The company is based in Agra, Uttar
Pradesh and has a production capacity of 35 tonnes per day (TPD)
currently. SPPL belongs to the Shakti Group which has been promoted
by Mr. Suresh Chand Agarwal and includes other companies engaged in
manufacturing PVC pipes, hand pumps, rubber powder and PET bottles.

SHRI VASANTHRAJ: ICRA Hikes Rating on INR8cr Loans to 'B'
---------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Shri
Vasanthraj Textiles Private Limited (Vasanthraj), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund-based-          4.10       [ICRA]B (Stable); upgraded
   Limits                          from [ICRA]C

   Long Term            3.90       [ICRA]B (Stable); upgraded
   Unallocated Limit               from [ICRA]C

Rationale
The rating upgrade takes into account the scale up and
stabilization of operations in the last two fiscals along with the
extensive experience of the promoters in the textile industry.

The rating is, however constrained by the weak financial risk
profile, characterised by small-scale operations, stretched capital
structure, weak coverage indicators, high working capital intensity
and stretched liquidity profile. The rating also factors in the
vulnerability of the company's profitability to adverse
fluctuations in raw material prices (cotton and polyester) and
regulatory changes, considering the inherently low value-added
business and the stiff competition in the yarn industry.

The Stable outlook on the [ICRA]B rating reflects ICRA's opinion
that Shri Vasanthraj Textiles Private Limited (SVT) will continue
to benefit from the experience of its promoters in the textile
industry.

Key rating drivers

Credit strengths

Experience of promoters in textile industry— The promoters of SVT
have over a decade of experience in the textile industry, resulting
in established relationship with customers.

Stabilisation of operations along with growth in scale – The
company's operations has stabilised along with improvement in scale
over the last two fiscals, as evident from the 41% growth in FY2019
to INR20.97 crore and the 34% growth in FY2018 to INR14.86 crore,
as compared to INR11.10 crore in FY2017.

Credit challenges

Weak financial risk profile – While the company's operating
income grew to INR20.97 crore in FY2019 from INR14.86 crore in
FY2018, the size continues to be small. The capital structure
remained leveraged, with the gearing at 5.26 times in FY2019 owing
to high debt levels and low net worth base. Consequently, the
coverage indicator remained weak, with TD/OPBITDA of 4.86 times,
TOL/TNW of 6.08 times and an NCA/TD of 13% as on March 31, 2019.
The working capital intensity remained stretched with NWC/OI at 19%
in FY2019 (though improved from 29% in FY2018) due to high
inventory.

Profitability remains vulnerable to fluctuations in raw material
prices and regulatory changes – The profit margins are exposed to
fluctuations in raw material prices (cotton and polyester), which
depend on various factors such as seasonality, climatic conditions,
global demand and supply situation, and export policy. Further, it
is also exposed to the regulatory risks with regard to the MSP set
by the Government. Moreover, high inventory stocking exposes it to
inventory holding risk.

Intense competition and fragmented industry structure - The
spinning industry is highly fragmented with presence of numerous
small to mid-sized players. Thus, the company faces stiff
competition, which limits its bargaining power and exerts pressure
on its margins.

Liquidity position: Stretched

The overall liquidity situation is expected to remain tight because
of the high working capital requirements owing to high inventory
and low cash accruals, absence of cushion in the cash credit limits
and expected debt funded capex. Hence, timely support from
promoters through equity infusion/unsecured loans remains crucial
in case of any cash flow mismatch.

Rating sensitivities

Positive triggers - ICRA could upgrade SVT's rating if increase in
scale of operations and profitability leads to higher-than-expected
cash accruals on a sustainable basis, which along with substantial
equity infusion supports the liquidity position. Further, DSCR of
more than 2.5 times on a sustained basis could also lead to an
upgrade.

Negative triggers- Negative pressure on SVT's rating could arise if
there is a substantial decline in revenues and profitability,
leading to lower-than-expected cash accruals. Moreover, any further
stretch in the coverage indicators and working capital cycle or any
major debt-funded capex along with any sizable outflow towards
group entities could also trigger a rating downgrade.

Shri Vasanthraj Textiles Private Limited (Vasanthraj) was
incorporated in 1992 and manufactures cotton polyester yarn of the
fine count range of 60's. Its spinning mill is in R. Vadipatti in
Tamil Nadu and has a spindle capacity of 14400 spindles. It is a
closely-held company promoted by Mr.C.Veluswamy who is also the
promoter of V.P.S Textiles (India) Private Limited, which is into
same line of business.

SVT reported a profit after tax (PAT) of INR0.67 crore on an
operating income (OI) of INR20.97 crore in FY2019, compared to a
profit after tax (PAT) of INR0.12 crore on an OI of INR14.86 crore
in FY2018.

SRI BUCHIYYAMMA: ICRA Moves 'B+' Rating to Not Cooperating
----------------------------------------------------------
ICRA has moved the ratings for the INR25.00-crore bank facilities
of Sri Buchiyyamma Rice Mill (SBRM) to 'Issuer Not Cooperating'
category'. The ratings are denoted as "[ICRA]B+(Stable) ISSUER NOT
COOPERATING".

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term-Fund     12.00        [ICRA]B+(Stable); ISSUER NOT
   Based/CC                        COOPERATING; Rating Moved to
                                   issuer not cooperating
                                   category

   Long Term–         13.00        [ICRA]B+(Stable); ISSUER NOT
   Unallocated                     COOPERATING; Rating Moved to
                                   issuer not cooperating
                                   category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available
information on the issuers' performance. Accordingly, the lenders,
investors and other market participants are advised to exercise
appropriate caution while using this rating as the rating may not
adequately reflect the credit risk profile of the entity.

Sri Buchiyyamma Rice Mill (SBRM), established in 1983 by Mr. K.
Papa Reddy and other partners, is involved in the milling of paddy,
and produces raw and boiled rice. The firm has a milling unit in
Tossipudi in East Godavari district of Andhra Pradesh. SBRM has a
paddy milling capacity of 43,200 MTPA.

SYNNOVA CERAMIC: ICRA Lowers Rating on INR3.43cr Loan to B-
-----------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Synnova
Ceramic Pvt. Ltd. (SCPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Term Loan           3.43        [ICRA]B- (Stable) ISSUER NOT
                                   COOPERATING; Rating downgraded
                                   from [ICRA]BB-(Stable) and
                                   continues to remain under the
                                   'Issuer Not Cooperating'

   Cash Credit         2.50        [ICRA]B- (Stable) ISSUER NOT
                                   COOPERATING; Rating downgraded
                                   from [ICRA]BB-(Stable) and
                                   continues to remain under the
                                   'Issuer Not Cooperating'

   Bank Guarantee      0.40        [ICRA]A4; ISSUER NOT
                                   COOPERATING; Rating continues
                                   to remain under 'Issuer Not
                                   Cooperating' Category

ICRA has continued the long-term and short-term ratings for the
bank facilities of Synnova Ceramic Pvt. Ltd. (SCPL) to the 'Issuer
Not Cooperating' category. The rating is denoted as "[ICRA]B-
(Stable)/[ICRA]A4 ISSUER NOT COOPERATING".

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.

Incorporated in August 2013, Synnova Ceramic Private Limited (SCPL)
is engaged in manufacturing of ceramic sanitary ware products like
wash basins, closets, urinals and pans under the brand" Synnova".
The unit is based out of Surendranagar district in Gujarat and
commenced production in February 2015 with a manufacturing capacity
of 5,75,000 pieces per annum.

TCS AND ASSOCIATES: ICRA Cuts Rating on INR39.29cr Loan to B+
-------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of TCS and
Associates Private Limited, as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term-Fund      39.29       [ICRA]B+ (Stable) ISSUER NOT
   Based/CC                        COOPERATING; Rating downgraded
                                   from [ICRA]BB-(Stable) and
                                   continues to remain under the
                                   'Issuer Not Cooperating'
                                   Category

   Long Term-Fund       0.71       [ICRA]B+ (Stable) ISSUER NOT
   Based TL                        COOPERATING; Rating downgraded
                                   from [ICRA]BB-(Stable) and
                                   continues to remain under the
                                   'Issuer Not Cooperating'
                                   Category

Rationale

The Long-Term rating downgrade is because of lack of adequate
information TCS and Associates Private Limited's performance and
hence the uncertainty around its credit risk. ICRA assesses whether
the information available about the entity is commensurate with its
rating and reviews the same as per its "Policy in respect of
non-cooperation by the rated entity". The lenders, investors and
other market participants are thus advised to exercise appropriate
caution while using this rating as the rating may not adequately
reflect the credit risk profile of the entity, despite the
downgrade.

As part of its process and in accordance with its rating agreement
with TCS and Associates Private Limited, ICRA has been trying to
seek information from the entity so as to monitor its performance,
but despite repeated requests by ICRA, the entity's management has
remained non-cooperative. In the absence of requisite information
and in line with SEBI's Circular No. SEBI/HO/MIRSD4/CIR/2016/119,
dated November 1, 2016, ICRA's Rating Committee has taken a rating
view based on the best available information.

TCS & Associates Private Limited (TCSA) was incorporated in 2002
and commenced with the dealership of Hyundai Motors India Limited.
During 2008, the company received letter of intent for the
dealership of Maruti Suzuki India Limited (MSIL) for Faridabad
district and the dealership operations for the same started during
Q2 FY10. The company runs one showroom and one workshop in
Faridabad. TCSA's workshop was recently awarded by MSIL for having
the best workshop infrastructure in Northern India. The company is
run by Mr. Sanjeev Saluja who is in the line of business since past
~40 years.


UNIVERSAL INDIA: ICRA Maintains 'B' Rating in Not Cooperating
-------------------------------------------------------------
ICRA said the rating for the INR5.00 crore bank facility of
Universal India Agro Foods continue to remain under Issuer Not
Cooperating category. The long-term rating is denoted as [ICRA]B
(Stable) ISSUER NOT COOPERATING with a Stable outlook.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term-Fund      5.00        [ICRA]B (Stable); ISSUER NOT
   Based/CC                        COOPERATING; Rating continues
                                   to remain under 'Issuer Not
                                   Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis dated information on the
issuers' performance. Accordingly, the lenders, investors and other
market participants are advised to exercise appropriate caution
while using this rating as the rating may not adequately reflect
the credit risk profile of the entity.

UIAF was incorporated in 2013 and currently operates a rendering
plant in Meerut. The unit was commissioned in FY2014 and produces
Tallow and Meat and Bone Meal (MBM) from animal waste. The unit
procures animal waste such as bones, fat, and offal from slaughter
houses and produces Tallow which finds usage in soap manufacturing,
lubricants etc. and MBM which is used in cattle/poultry feed. The
company is promoted by Mr. Haji Aas Mohd and Mrs. Shabana Parveen.
The promoter's family has been engaged in trading of meat products
in the unorganized sector for past several years.

V.P.S. TEXTILES: ICRA Hikes Rating on INR8cr Loans to 'B'
---------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of V.P.S.
Textiles (India) Private Limited (VPS), as:

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Fund-based Limits    3.32      [ICRA]B (Stable); upgraded
                                  from [ICRA]C

   Long Term            4.68      [ICRA]B (Stable); upgraded
   Unallocated Limit              from [ICRA]C

Rationale

The rating upgrade takes into account the scale up and
stabilisation of operations in the last two fiscals along with the
extensive experience of the promoters in the textile industry.

The rating is, however, constrained by the weak financial risk
profile, characterised by small-scale operations, stretched capital
structure, weak coverage indicators, high working capital intensity
and stretched liquidity profile. The rating also factors in the
vulnerability of the company's profitability to adverse
fluctuations in raw material prices (cotton and polyester) and
regulatory changes, considering the inherently low value-added
business and the stiff competition in the yarn industry.

The Stable outlook on the [ICRA]B rating reflects ICRA's opinion
that VPS will continue to benefit from the experience of its
promoters in the textile industry.

Key rating drivers

Credit strengths

Experience of promoters in textile industry - The promoters of VPS
have over a decade of experience in the textile industry, resulting
in established relationship with customers.

Stabilisation of operations along with growth in scale – The
company's operations has stabilised along with improvement in scale
over the last two fiscal, as evident from the 28% growth in FY2019
to INR15.84 crore and the 27% growth in FY2018 to INR12.41 crore,
as compared to INR9.76 crore in FY2017.

Credit challenges

Weak financial risk profile – While the company's operating
income grew to INR15.84 crore in FY2019 from INR12.41 crore in
FY2018, the size continues to be small. The capital structure
remained leveraged, with the gearing at 1.34 times in FY2019, owing
to high debt levels. Consequently, the coverage indicator remained
weak, with interest coverage ratio of 2.63 times, TD/OPBITDA of
6.95 times and an NCA/TD of 9% as on March 31, 2019. The working
capital intensity remained stretched with NWC/OI at 36% in FY2019
(though improved from 43% in FY2018) due to high inventory and
stretched receivable days.

Profitability remains vulnerable to fluctuations in raw material
prices and regulatory changes – The profit margins are exposed to
fluctuations in raw material prices (cotton and polyester), which
depend on various factors such as seasonality, climatic conditions,
global demand and supply situation, and export policy. Further, it
is also exposed to the regulatory risks with regard to the MSP set
by the Government. Moreover, high inventory stocking exposes it to
inventory holding risk.

Intense competition and fragmented industry structure - The
spinning industry is highly fragmented with presence of numerous
small to mid-sized players. Thus, the company faces stiff
competition, which limits its bargaining power and exerts pressure
on its margins.

Liquidity position: Stretched

The overall liquidity situation is expected to remain tight because
of the high working capital requirements owing to elongated
receivables and low cash accruals, absence of cushion in the cash
credit limits and expected debt-funded capex. Hence, timely support
from promoters through equity infusion/ unsecured loans remains
crucial in case of any cash flow mismatch.

Rating sensitivities

Positive triggers- ICRA could upgrade VPS's rating if increase in
scale of operations and profitability leads to higher-than-expected
cash accruals on a sustainable basis, which along with improvement
in working capital cycle comforts the liquidity position.

Negative triggers - Negative pressure on VPS's rating could arise
if there is a substantial decline in revenues and profitability,
leading to lower-than-expected cash accruals. Moreover, any further
stretch in the coverage indicators and working capital cycle or any
major debt-funded capex along with any sizable outflow towards
group entities could also trigger a negative rating.

V.P.S. Textiles (India) Private Limited (VPS) was incorporated in
2006 and manufactures cotton polyester yarn of the fine count range
of 60's. Its spinning mill is in R. Vadipatti in Tamil Nadu and has
a spindle capacity of 11,636 spindles. It is a closely-held company
promoted by Mr. C. Veluswamy, who is also the promoter of Shri
Vasanthraj Textiles Private Limited, which is into same line of
business.

VPS reported a profit after tax (PAT) of INR0.46 crore on an
operating income (OI) of INR15.84 crore in FY2019, compared to a
profit after tax (PAT) of INR0.02 crore on an OI of INR12.41 crore
in FY2018.


VALENCIA CERAMIC: ICRA Cuts Rating on INR4.0cr Loan to B+
---------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Valencia
Ceramic Private Limited (VCPL), as:

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Fund Based-         4.00       [ICRA]B+ (Stable) ISSUER NOT
   Cash Credit                    COOPERATING; Rating downgraded
                                  from [ICRA]BB-(Stable) and
                                  continues to remain under the
                                  'Issuer Not Cooperating'
                                  Category

   Fund Based-         3.23       [ICRA]B+ (Stable) ISSUER NOT
   Term Loan                      COOPERATING; Rating downgraded
                                  from [ICRA]BB-(Stable) and
                                  continues to remain under the
                                  'Issuer Not Cooperating'
                                  Category

   Non-fund Based      2.02       [ICRA]A4; ISSUER NOT
   Bank Guarantee                 COOPERATING; Rating continues
                                  to remain under 'Issuer Not
                                  Cooperating' Category

   Fund/Non-fund       4.71       [ICRA]B+ (Stable)/[ICRA]A4;
   Based-Unallocated              ISSUER NOT COOPERATING;
                                  Rating continues to remain
                                  under 'Issuer Not
                                  Cooperating' category

ICRA has continued the long-term and short-term ratings for the
bank facilities of VCPL to the 'Issuer Not Cooperating' category.
The rating is denoted as "[ICRA]B+ (Stable)/[ICRA]A4 ISSUER NOT
COOPERATING".

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.

Incorporated in November 2012, Valencia Ceramic Private Limited
(VCPL) is a digitally printed ceramic glazed wall tiles
manufacturer with its plant in Morbi, Gujarat. VCPL commenced its
operations in August 2013 and currently manufactures wall tiles of
three sizes 12"X12", 12"X18" and 12"X24", which find wide
application in commercial as well as residential buildings. The
company is managed and promoted by Mr. Harshad Vansjariya and Mr.
Rajesh Vansjariya. It has an installed capacity to manufacture
35,700 metric tonnes of wall tiles per annum.


VINAYAK COTTEX: ICRA Maintains 'B' Rating in Not Cooperating
------------------------------------------------------------
ICRA said the rating for the INR7.67 crore bank facilities of
Vinayak Cottex (VC). The ratings are denoted as "[ICRA]B(Stable);
ISSUER NOT COOPERATING; Rating continues to remain under 'Issuer
Not Cooperating' category."

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term fund-    7.67         [ICRA]B (Stable) ISSUER NOT
   Based limits                    COOPERATING; Rating continues
                                   to remain under the 'Issuer
                                   Not Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.

Established in February 2013 as a partnership firm, Vinayak Cottex
(VC) is into the business of ginning and pressing of raw cotton and
crushing of cotton seed. Its manufacturing facility is located at
Amreli (Gujarat) and is equipped with 24 ginning machines, 1
pressing machine and 6 crushing machines with production capacity
of 60 cotton bales per day and 38 MT oil per day. The firm is
promoted and managed by Mr. Kamlesh B. Bokarvadiya, Mr. Kantilal B.
Bokarvadiya, Khimji G. Virpara, Mr. Narendra M. Patel, Mr. Natha
Virpara and Mr. Vikas N. Patel. The promoters have a prior
experience in the cotton industry by virtue of their earlier
association as partners/employee in cotton ginning and pressing
entities.

VISHWARAJ SUGAR: Ind-Ra Cuts LT Issuer Rating to BB, Outlook Neg.
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Vishwaraj Sugar
Industries Limited's (VISL) Long-Term Issuer Rating to 'IND BB'
from 'IND BBB-'. The Outlook is Negative.

The instrument-wise actions are:

-- INR2.150 bil. Fund-based working capital limit downgrade with
     IND BB/Negative A4 rating; and

-- INR35.6 mil. Term loan due on March 2019 withdrawn (paid in
     full).

KEY RATING DRIVERS

The downgrade reflects a continued deterioration in VSIL's credit
metrics due to an increase in its debt for meeting working-capital
requirements, along with a decline in the operating profitability.
The company has breached the negative rating triggers, with the
interest coverage (EBITDA/gross interest expense) falling below 1x
in FY19 (FY18: 1.1x). VSIL's interest coverage was below 1x in FY19
due to increased interest expenses, which were triggered by
elevated debt levels. The net leverage (net debt/EBITDA), too,
deteriorated and continued to remain elevated at 13.6x in FY19
(FY18: 13.1x). FY19 debt increased to INR3,387 million in FY19
(FY18: INR3,143 million) and was mainly used for funding additional
working capital requirements; specifically sugar inventory.

The Negative Outlook reflects likely further weakening of VISL's
credit profile for FY20 owing to the elevated debt levels in
1HFY20. As per 6MFY20, the debt level remained high at INR3,175.66
million.

Liquidity indicator- Stretched: VSIL's cash flow from operation
continued to remain negative in FY19 at INR113 million (FY18:
negative INR754 million). The reduction in the negative cash flow
from the operation was mainly due to an increase in account
payables (a majority of which are cane arrears) to INR1,127 million
in FY19 (FY18: INR269 million). VSIL's gross working capital cycle
continues to remain high at more than 500 days dominated by
inventory days. During FY19, inventory days stood at 480 days
(FY18: 482 days) owing to a sharp fall in sugar prices, coupled
with sugar release quota by the central government.

The peak utilization of working capital limits averaged 93% of
drawing power in the 12 months ended in November 2019. As per the
bank statements' analysis, there have been instances of penal
interest charged on the working capital facilities. During 2HFY20,
VSIL successfully completed an initial public offering. The
proceeds of the same (INR170 million) will be used to fund working
capital requirements for the current sugar season (SS 19-20). Ind
Ra believes that although the IPO proceeds are likely to provide
short-term respite from the tight liquidity, effective circulation
of the proceeds will be dependent on the vagaries of various
industry-specific factors like sugar demand and supply, government
regulations like Minimum Indicative Export Quota and sugar release
quota, etc.

The rating factor in volatility in the sugar industry, which is
characterized by structural weakness in the form of regulated/fixed
input prices (cane costs) and market-linked sugar prices.
Furthermore, intense competition results in the millers paying cane
prices in excess of fair and remunerative prices. This leads to
volatility in the margins of sugar players and results in the
accumulation of cane arrears in the event of an imbalance in demand
and supply, and a consequent crash in prices.

The ratings further factor in VSIL's continued medium scale of
operations. FY19 revenue rose 18% to INR3,068 million primarily on
account of over 40% increase in sugar sales volumes to 71,614
metric tons. However, VSIL could not translate this revenue growth
into EBITDA due to an increase in cane procurement cost to INR30
per kg in FY19 (FY18: INR26.5 per kg). Thus, VSIL's EBITDA margin
remained modest and contracted to 8.1% in FY19 (FY18: 9.1%). The
reduction in EBITDA was mainly on account of higher cane
procurement costs. Its return on capital employed was weak and
stood at 2% for FY19.

In 9MFY20, VSIL completed a CAPEX of enhancing its distillery
capacity from 35-kilo liter per day (KLPD) to 100 KLPD and the
company plans to commence manufacturing of ethanol from SS 2020-21.
Ind-Ra expects this ethanol production to aid EBITDA margins in the
medium term; however, getting a license to manufacture ethanol and
enter tie-ups with oil manufacturing entities to supply ethanol
will be key for VSIL.

The rating, however, is supported by VSIL's fully-integrated nature
of operations, which aids its realizations, especially during
downturns in the sugar segment. The company has a medium-term power
purchase agreement with five electricity supply companies for the
export of surplus power and contracts with oil marketing companies
to supply ethanol at government-regulated rates. Moreover, VSIL has
an operational track record of over 15 years, which has led to
established relationships with customers and suppliers.

RATING SENSITIVITIES

Negative:  A further deterioration in the working capital cycle or
liquidity, or a further deterioration in the operating performance
would be negative for the ratings.

Positive: A significant improvement in the working capital cycle
along with operating performance positions, leading to an
improvement in the interest coverage above 2x on a sustained basis
will be positive for the ratings.

COMPANY PROFILE

Incorporated in 1995, VSIL has an integrated sugar plant with a
cane crushing capacity of 8,500 tons crushed per day, distillery
capacity of 35,000 liters per day and cogeneration capacity of
36.4MW in Bellad-Bagewadi, Karnataka. Additionally, the company has
5,800 case boxes per day Indian-made liquor manufacturing unit and
a 75,000 liter per day vinegar manufacturing unit at the plant.
Considering the recently concluded CAPEX, VSIL's distillery
capacity will increase to 100KLPD.

YASHVEER CERAMIC: ICRA Keeps 'B' Rating in Not Cooperating
----------------------------------------------------------
ICRA has continued the long-term and short-term ratings for the
bank facilities of Yashveer Ceramic (YC) to the 'Issuer Not
Cooperating' category. The rating is denoted as "[ICRA]B
(Stable)/[ICRA]A4 ISSUER NOT COOPERATING".

                     Amount
   Facilities      (INR crore)    Ratings
   ----------      -----------    -------
   Fund based-         5.25       [ICRA]B (Stable); ISSUER NOT
   Term Loan                      COOPERATING; Rating continues
                                  to remain under 'Issuer Not
                                  Cooperating' category

   Fund Based-         3.00       [ICRA]B (Stable); ISSUER NOT
   Cash Credit                    COOPERATING; Rating continues
                                  to remain under 'Issuer Not
                                  Cooperating' category

   Non-fund Based      2.00       [ICRA]A4; ISSUER NOT
   Bank Guarantee                 COOPERATING; Rating continues
                                  to remain under 'Issuer Not
                                  Cooperating' category

ICRA has been trying to seek information from the entity so as to
monitor its performance, but despite repeated requests by ICRA, the
entity's management has remained non-cooperative. The current
rating action has been taken by ICRA basis best available/dated/
limited information on the issuers' performance. Accordingly, the
lenders, investors and other market participants are advised to
exercise appropriate caution while using this rating as the rating
may not adequately reflect the credit risk profile of the entity.

Yashveer Ceramic (YC) is a wall tiles manufacturer with its plant
situated at Morbi, Gujarat. The firm was established in 2010, and
commenced commercial operations from May 2011. Yashveer Ceramics is
promoted by Mr. Vipul Patel having 10 years of experience in
ceramic industry along with other partners. It currently
manufactures wall tiles of sizes 18"x12" and 12"x24" with the
current set of machineries and production facilities.



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

ALAM SUTERA: Moody's Downgrades CFR to B3, Outlook Negative
-----------------------------------------------------------
Moody's Investors Service downgraded the corporate family rating of
Alam Sutera Realty Tbk (P.T.) to B3 from B2.

At the same time, Moody's has downgraded the backed senior
unsecured rating of the 2021 notes and 2022 notes issued by Alam
Synergy Pte. Ltd., a wholly owned subsidiary of Alam Sutera, to B3
from B2. The notes are guaranteed by Alam Sutera and most of its
subsidiaries.

The outlook on the ratings above remains negative.

RATINGS RATIONALE

The ratings downgrade to B3 reflects Moody's expectations that Alam
Sutera's credit metrics and liquidity will weaken, because of a
slowdown in its land sales to China Fortune Land Development Co.,
Ltd. (CFLD, Ba3 stable), and refinancing risk on its US dollar
bond: $175 million due April 2021 and $370 million due April 2022.

"Alam Sutera's marketing sales and cash flow are reliant on
proceeds from land sales to CFLD, which slowed in 2019 and we do
not expect a recovery in 2020," says Jacintha Poh, a Moody's Vice
President and Senior Credit Officer.

"The outlook remains negative to reflect Alam Sutera's maturity
wall, because all of its US-dollar notes will mature in 2021 and
2022," adds Poh. "The company is reliant on external funding, but
there are no committed funds to address the refinancing risk."

In 2019, Alam Sutera achieved core marketing sales of around IDR2.2
trillion, and land sales to CFLD of IDR930 billion, which were
behind the company's full-year marketing sales target of around
IDR4 trillion. In 2020, Alam Sutera targets to achieve core
marketing sales of around IDR3.5 trillion, and land sales to CFLD
of IDR500 billion.

Absent land sales to CFLD, Moody's expects that Alam Sutera's
credit metrics will remain weak over the next 12-18 months.
Leverage, as measured by adjusted debt/homebuilding EBITDA, will
stay elevated, at more than 6.0x. Interest coverage, as measured by
homebuilding EBIT/interest expense, will stay below 2.0x. For the
12 months ended September 30, 2019, Alam Sutera's leverage
registered 6.5x and interest coverage 1.6x.

Alam Sutera held cash and cash equivalents of IDR1.1 trillion as of
September 30, 2019. Moody's expects the company to generate around
IDR800 billion in cash from operations over the next 12-18 months,
which will be insufficient to cover the repayment of its 2021
notes. Consequently, Alam Sutera is reliant on external funding to
address its notes maturity.

Alam Sutera has obtained consent from existing noteholders to incur
up to $185 million secured financing on January 28, 2020. At the
same time, the company shared that it is in discussion with banks
to raise secured Indonesian rupiah loan and investors to
participate in a private placement issuance, but none of these
plans are committed.

In terms of environmental, social and governance factors, Moody's
has considered governance risk stemming from Alam Sutera's (1) weak
financial management, because of its debt maturity wall, which
resulted in significant refinancing risk; and (2) concentrated
ownership by its promoter and a five-member board of commissioners,
of which, only two members are independent. Nonetheless, the
company is run by experienced professionals and has a track record
of reducing land acquisitions to preserve liquidity.

Alam Sutera's B3 ratings reflect volatility in its earnings and
cash flow, driven by reliance on one-off transactions with CFLD,
instead of the company's core business of property development.
Nonetheless, Alam Sutera continues to generate strong gross profit
margins in excess of 50%, because of it large and low-cost land
bank.

The ratings are constrained by Alam Sutera's small scale and
limited geographic diversity. The company is also exposed to the
cyclical property sector, with limited contributions from the more
stable recurring income stream from its investment properties.

Given the negative outlook, a ratings upgrade is unlikely over the
next 12-18 months. Nevertheless, the outlook could return to stable
if Alam Sutera (1) improves its liquidity by addressing the
refinancing risk of its 2021 and 2022 notes; and (2) continues to
execute its core marketing sales, such that adjusted homebuilding
EBIT/interest expense is above 1.0x.

Moody's could downgrade the ratings if (1) Alam Sutera is unable to
address the refinancing risk of its 2021 notes by April 2020; or
(2) there is a protracted weakness in the company's operations or a
material depreciation in the Indonesian rupiah, which could
increase the company's debt servicing obligations, such that
adjusted homebuilding EBIT/interest expense falls below 1.0x.

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

Established in November 1993 and listed on the Indonesian Stock
Exchange in December 2007, Alam Sutera Realty Tbk (P.T.) is an
integrated property developer in Indonesia that focuses on the sale
of land lots in accordance with township planning requirements, as
well as property development in residential and commercial segments
in Indonesia. As of December 31, 2019, the family of The Ning King
owned around 47% of the company.

PERUSAHAAN GAS: S&P Revises SACP to 'bb+', Outlook Stable
---------------------------------------------------------
S&P Global Ratings revised its assessment of the stand-alone credit
profile (SACP) of PT Perusahaan Gas Negara Tbk. (PGN) to 'bb+' from
'bbb-', due to the company's diminished financial flexibility. This
follows its wholly owned subsidiary, PT Saka Energi Indonesia's
(Saka) unexpected cash tax liability of US$255 million payable in
2020.

However, S&P continues to believe that PGN will receive
extraordinary support from its parent, PT Pertamina (Persero), or
the Indonesian government (via Pertamina) when required.

On Jan. 30, 2020, S&P Global Ratings affirmed its long-term issuer
credit rating on PGN and long-term issue rating on the company's
senior unsecured notes at 'BBB-'. The stable outlook on PGN
reflects the outlook on Pertamina, which in turn reflects the
outlook on the sovereign credit rating on Indonesia.

S&P affirmed the ratings on PGN because it continues to believe
that the company will benefit from extraordinary support from
Pertamina or the Indonesian government (via Pertamina), if needed.

PGN's SACP has weakened following diminished financial flexibility.
The company's financial profile has weakened following an
unexpected cash tax liability (including penalties) of its wholly
owned oil and gas subsidiary, Saka, amounting to US$255 million.
The Supreme Court of Indonesia had, in early January 2020, reversed
the Tax Court's decision which was in favor of Saka. S&P
understands that Saka has sufficient unrestricted cash on hand
(US$438 million as of Sept. 30, 2019) to pay for this cash outflow.


As such, S&P now expects PGN's ratio of funds from operations (FFO)
to debt to dip to 13% in the fiscal year ending Dec. 31, 2020,
before recovering to 22% in fiscal 2021. This falls below its
downgrade threshold of 23% for the 'bbb-' SACP.

S&P said, "We had previously expected PGN's credit profile to be
able to withstand likely lower cash flows from Saka. Our earlier
projections were for the company's FFO-to-debt ratio to trend to
about 23% from 2021 after weakening to 21% in 2020, despite Saka's
weak operating performance.

"We see the potential for further downside risk to our estimates.
In our view, Saka could require further support from PGN, due to
its weakened credit profile and limited financial resources. We
continue to expect PGN to provide group support for Saka if needed,
given that Saka remains wholly owned by PGN.

"We have not factored in any potential sale or divestment for Saka
over the next two years. We had previously expected a potential
business reorganization which could lead to a change in Saka's
ownership.

"PGN's predictable gas businesses continue to underpin its credit
profile. Going forward, we expect PGN's earnings to predominantly
come from its gas transmission and distribution
businesses--representing about 80% of total EBITDA, as compared
with our previous expectation of 70%--with the remaining EBITDA
coming from the oil and gas business.

"In our opinion, earnings from the gas business will partly offset
Saka's more volatile oil and gas earnings. In particular, we
estimate PGN's transmission business will contribute an additional
EBITDA of US$100 million-US$150 million per year from 2021. This
will partly offset Saka's lower EBITDA contribution of about US$200
million annually.

"Our base case assumes gas spreads of US$2.15 per unit from fiscal
2020, which is lower than PGN's annualized gas spreads for gas
distribution of US$2.30 per unit in 2019.

"We believe PGN will maintain its important role as the largest gas
transmission and distribution business in Indonesia and remain an
important subsidiary of Pertamina. We continue to believe that PGN
will benefit from extraordinary support from Pertamina and the
government, reflecting our view of the important role PGN plays in
the economy. The consolidation of the oil and gas sector in
Indonesia is part of the government's drive toward creating larger
and stronger state-owned enterprises (SOEs) to realize synergies
and avoid duplication of expensive infrastructure.

"We expect the government to maintain its "golden share" (which
provides the government with special veto rights) in PGN and
continue to influence PGN's strategy, growth, and management.

"The stable outlook on PGN reflects the outlook on Pertamina, which
in turn reflects the outlook on the sovereign credit rating on
Indonesia. We believe PGN will maintain the important role it plays
in the economy, and remain an important subsidiary of Pertamina
following the government's consolidation of SOEs in the oil and gas
segment."

S&P believes a downgrade of PGN is unlikely in the next 12-24
months. However, over the longer term, we will lower our rating on
PGN if:

-- S&P downgrades Indonesia to 'BBB-' and PGN's SACP falls below
'bb+';

-- PGN's SACP falls by three notches to 'b+'; or

-- PGN's importance to, and the likelihood of support from,
Pertamina weakens and PGN's SACP falls by one or more notches.

S&P may lower its assessment of PGN's SACP by one notch if:

-- The company's FFO-to-debt ratio falls below 15% on a sustained
basis; or

-- PGN's capital spending increases substantially beyond US$500
million with no commensurate improvement in cash flows, or the
company and/or its subsidiaries experience further unexpected cash
tax outflows.

S&P is unlikely to raise its ratings on PGN in the next 12-24
months. However, S&P may upgrade the company if: (1) it raises the
rating on Indonesia; and (2) if any of the following occurs:

-- PGN maintains its strategically important relationship within
the Pertamina group and PGN's SACP remains at least at 'bb';

-- PGN's SACP strengthens by two notches to 'bbb' while its role
and importance to the government remains unchanged; or

-- PGN's link and role with the government strengthens, and its
SACP remains at least at 'bb+'.

S&P may revise its assessment of PGN's SACP upward if: (1) PGN
maintains a FFO-to-debt ratio of more than 23% on a sustainable
basis; and (2) S&P has more clarity regarding PGN's plan for the
remaining 49% in PT Pertamina Gas (Pertagas) and the disposal or
potential sale of Saka.

Established in 1965, PGN is the largest integrated natural gas
distribution company in Indonesia, with 10,000 kilometers of gas
pipelines or around 96% of total pipelines in the country. PGN
completed the acquisition of 51% of Pertagas at end-December 2018
as part of the Indonesian government's consolidation of SOEs in the
oil and gas sector.

In April 2018, the government transferred its majority
shareholdings of 56.97% in PGN to Pertamina. The government still
owns its golden share via the "Series A" share in PGN.



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

CASINO BAR: Inland Revenue Seeks to Liquidate Company
-----------------------------------------------------
Liz McDonald at Stuff.co.nz reports that the tax department is
making another attempt to wind up the company behind Christchurch's
Calendar Girls strip club over unpaid debts.

According to Stuff, Inland Revenue has applied to the High Court to
liquidate Casino Bar Ltd, whose holding company Alan Samson Ltd
owns Calendar Girls on Victoria St.

Alan Samson Ltd's sole director and shareholder is Vicki Samson,
and it is also the holding company behind Calendar Girls clubs in
Auckland and Wellington as well as Christchurch's new Lush strip
club in Allen St.

A year ago Inland Revenue filed court papers to take Casino Bar Ltd
to court over NZD79,000 worth of unpaid taxes and GST, KiwiSaver
contributions, penalty payments and interest, Stuff recalls. A deal
was reached after the company said it had experienced accountancy
problems and would pay its debts, the report says.

Stuff says the department's most recent bid dates from mid-November
and a High Court hearing is scheduled for February 20.

According to the report, Calendar Girls' doors remain open and
business manager Scott McCormick said the liquidation bid was over
a NZD20,000 outstanding debt, which would be paid next week. There
had been no need for Inland Revenue to publicise the legal action
and it would not make business any easier, Mr. McCormick said.

Stuff notes that Vicki Samson's son, James Samson, originally owned
the Casino Bar group of businesses and still works in the company.
James Samson took his name off the books after he was imprisoned on
drugs charges in 2004, with his mother and at one time his then
wife Jacqui Le Prou taking ownership.

Other companies in the Calendar Girls stable owned by Alan Samson
Ltd have also run into financial trouble over unpaid taxes,
according to Stuff.

Casino Bar (No 2) Ltd, which operated Calendar Girls in Auckland,
was placed in receivership in 2016 over debts of NZD200,000 and is
also in liquidation. That business is being run by the receiver and
contactors and was in the process of being sold at the time of the
last liquidator's report, Stuff discloses.

Casino Bar (No 3) Ltd, which operated the Wellington club, is also
in liquidation and the business is being run by a subsidiary
company and also likely to be sold, the report notes.

As well as adult entertainment within the clubs, the business
advertises hiring out workers as escorts and for promotions and
strip-o-grams.

Stuff adds that the Christchurch strip club was also the centre of
an employment dispute in 2018 when a stripper claimed she had been
unfairly sacked and that the club ran a system of fining workers
for infringements.

CBL CORP: Two Defendants Plead Not Guilty, Opt for Jury Trial
-------------------------------------------------------------
Victoria Young at BusinessDesk reports that the two defendants
facing Serious Fraud Office charges in relation to the collapse of
CBL Corporation have pleaded not guilty and have opted for a jury
trial.

BusinessDesk relates that former CBL chief executive Peter Harris
-- aided by a walking cane -- briefly appeared in the Auckland
District Court on Feb. 4. He appeared alongside another defendant
who has interim name suppression.

They both pleaded not guilty to all of the Crimes Act charges, the
report says.

According to BusinessDesk, the charges against former director Mr.
Harris include one accounting charge relating to an omission in the
annual report which carries a maximum prison time of 10 years. The
other person also faces this charge.

Mr. Harris also faces five charges of theft by a person in a
special relationship, and two of obtaining by deception, which
carry a maximum prison term of seven years, BusinessDesk relays.

BusinessDesk relates that the SFO has alleged Mr. Harris didn't
disclose aspects of transactions relating to the National Bank of
Samoa and used a fraudulent strategy to avoid scrutiny by New
Zealand regulators. This involved facilitating a EUR12.5 million
(NZD21.4 million) loan to Alpha Insurance, which was obscured by a
series of transactions that made it appear the lender was Singapore
Federal Pacific Group.

BusinessDesk says the fraud squad also claims a CBL agreement with
United Specialty Insurance Company and TexCaz Transborder Insurance
breached RBNZ directions.

The charging documents said Mr. Harris deliberately breached RBNZ
directions relating to transactions totalling NZD26.1m and NZD7.4m
paid to United Specialty Insurance Company.

The anonymous defendant, represented by David Jones QC, has been
bailed to an Auckland address and was told not to contact any SFO
witnesses as part of his bail conditions, BusinessDesk discloses.

BusinessDesk says the three charges against that defendant relate
to false accounting, theft by a person in a special relationship
and obtaining by deception.

Crown prosecutor Brian Dickey is representing the fraud agency
while Mr. Harris is represented by Rachael Reed QC and Lee Salmon
Long's Jack Cundy, the report notes.

According to the report, the case is one of several relating to the
collapse of CBL Corporation, which had a market cap of NZD747
million when it collapsed in 2018.

The Financial Markets Authority has filed two cases against CBL
Corporation, the six directors and its chief financial officer
alleging multiple breaches of the Financial Markets Conduct Act
2013. There are also two class actions under way.

The liquidators have also filed a case against directors and PwC
which was the insurer's actuary, the report notes.

                          About CBL Corp.

Founded in 1973, CBL Corporation Limited together with its
subsidiaries, provided insurance and reinsurance products and
services primarily in New Zealand. It offered financial risk
products, builders' risks, sureties, guarantees, and contractor
bonds primarily in Europe and Scandinavia; deposit guarantees in
Australia; and bonding and fiduciary services to the Mexican
commercial sector. The company also provided a range of specialty
products, such as credit enhancement, surety bonds, specialized
property insurance, aviation, and rural risk in Australia, as well
as distributes construction-sector insurance products in France
through a network of brokers.

CBL Corp. went into voluntary administration in late February 2018,
in a move to prevent other regulators from taking action after the
Reserve Bank moved to have its subsidiary CBL Insurance placed in
interim liquidation.

On Feb. 23, 2018, KordaMentha New Zealand partners Brendon Gibson
and Neale Jackson were appointed Voluntary Administrators by the
Board of CBL Corporation Ltd and certain of its subsidiaries.

The administration relates to New Zealand-domiciled companies.

Messrs. Gibson and Jackson are administrators to these CBL
entities: CBL Corporation Limited; LBC Holdings New Zealand Ltd;
LBC Holdings Americas Ltd; LBC Holdings UK Ltd; LBC Holdings Europe
Ltd; LBC Holdings Australasia Ltd; LBC Treasury Company Ltd;
Deposit Power Ltd; South British Funding Ltd; and CBL Corporate
Services Ltd.

In November 2018, the High Court in Auckland placed CBL Insurance
into liquidation with Kare Johnstone and Andrew Grenfell from
McGrathNicol appointed as liquidators.

MARAC INSRANCE: Fitch Downgrades IFS Rating to BB+, Outlook Stable
------------------------------------------------------------------
Fitch Ratings downgraded New Zealand-based MARAC Insurance
Limited's Insurer Financial Strength Rating to 'BB+' (Moderately
Weak) from 'BBB+'. Fitch has also removed the rating from Rating
Watch Negative. The Outlook is Stable.

The action follows a strategic review by management, which decided
to end the distribution agreement between MIL and its parent,
Heartland Bank Limited (HBL, BBB/Stable), from January 23, 2020 as
the bank plans to focus on its core lending business, especially in
light of tighter regulation. The insurer will be placed in runoff,
ending underwriting of new policies, but will continue to meet
claims from its existing insured portfolio. Management expects all
policies in its existing portfolio to expire in the next five
years, after which the company is likely to be wound up. As a
result, its assessment of MIL's business profile and financial
performance and earnings is now weaker.

At the same time, Fitch expects HBL to continue prioritizing the
preservation of MIL's capital ahead of dividend payments to meet
regulatory requirements during the runoff period. Fitch also
expects operational synergies between MIL and HBL to remain,
facilitating an orderly and effective runoff of MIL's existing
insured portfolio. Fitch therefore continues to regard ownership as
positive to the rating.

KEY RATING DRIVERS

Fitch ranks MIL's business profile as 'Least Favorable' against
other insurers in New Zealand as the ending of the distribution
agreement and the runoff placement will restrict MIL's earnings
generation. Fitch therefore scores the business profile at 'b+'
under its credit-factor scoring guidelines.

MIL wrote only two products, one each in the life and non-life
segments, which were distributed exclusively by HBL in conjunction
with vehicle financing originated by the bank. MIL's operations are
closely integrated with that of the parent. The insurer has no
direct employees and all services are performed by HBL for a
management fee. MIL is a small player with total assets of NZD12.9
million and equity of NZD5.6 million at the end of the financial
year to June 2019 (FY19).

Fitch will continue to monitor MIL's ability to execute an orderly
runoff as well as the loss development within its insured
portfolio. MIL's top line will fall as no new policies are sold,
but so will its expense base, which is primarily driven by
commissions and the management fee. Profitability has been
consistently strong - its return on equity and pre-tax return on
assets averaged 22% and 13%, respectively, over the three years to
FYE19, while the non-life combined ratio averaged 81%.

Fitch believes the capital currently in MIL will remain at the
regulated insurer for the benefit of the policyholders. Management
says it will continue its strategy of maintaining a high-quality
and liquid investment portfolio to back its policyholder
liabilities. MIL held 92% of its total investments in cash and
deposits at FYE19.

The current regulatory requirement of maintaining a minimum
fixed-capital amount of NZD5 million will continue. The insurer
held a NZD0.6 million buffers above the minimum at FYE19 (NZD0.8
million at FYE18). Fitch thinks MIL's low absolute capital level
leaves MIL more susceptible to changes in the external operating
environment as well as larger, more remote operational risks.

RATING SENSITIVITIES

Key downgrade sensitivities:

  - A reduction in the operational synergies MIL enjoys with HBL
that could have an impact on an orderly runoff.

  - A fall in its regulatory capital ratio to close to 105%.

An upgrade of MIL's rating is unlikely as its business is in
runoff.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity, either
due to their nature or the way in which they are being managed by
the entity.



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

HYFLUX LTD: Aqua Munda Again Extends Deadline for Debt Buyout
-------------------------------------------------------------
Lynette Tan at The Business Times reports that Aqua Munda has again
extended its invitation for Hyflux's noteholders and unsecured
creditors to tender offers for their debts to be purchased at a
minimum discount of 85 per cent.

In a press statement on Feb. 3, Aqua Munda said it expects greater
interest from creditors in a "simpler, faster and more timely
cash-only exit" as recent events, including the resignation of
WongPartnership as Hyflux's counsel and the resulting adjournment
of the High Court of Singapore hearing on Jan. 29, "are understood
to have raised significant additional concerns" around Hyflux's
situation, BT relays.

The investor has therefore extended the invitation expiry date from
Jan. 31 to Feb. 22.

In addition, the deadline for offers to be accepted has been
revised from April 3 to April 24. The long-stop date will be July
17.

According to BT, the option to tender is open to holders of
Hyflux's 4.25 per cent notes due in 2018, 4.6 per cent notes and
4.2 per cent notes due in 2019, as well as holders of other senior
unsecured, trade and contingent debts of the water treatment firm
and three of its subsidiaries.

Aqua Munda previously said it is committing SGD208 million to fund
the debt buyout offer, recalls BT. The total principal amount of
debt eligible for the buyout is about SGD1.8 billion, or nearly
two-thirds of Hyflux's total SGD2.8 billion debt.

Hyflux said in a bourse filing on Feb. 3 said that it "will make
the appropriate announcements as and when there are any further
material developments on this matter," BT relays.

                           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 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 engaged WongPartnership LLP as legal advisors and Ernst
& Young Solutions LLP as financial advisors in this process. On
Jan. 29, WongPartnership applied to discharge themselves due to
difficulties relating to "loss of confidence and good cause" in
working with the client.

In November 2019, Hyflux entered into a restructuring deal with
United Arab Emirates-based utility Utico FZC, according to
Reuters.




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

ASIA COMMERCIAL: Fitch Upgrades LT IDR to B+, Outlook Stable
------------------------------------------------------------
Fitch Ratings upgraded Vietnam-based Asia Commercial Joint Stock
Bank's Long-Term Issuer Default Rating to 'B+' from 'B' with a
Stable Outlook and its Viability Rating to 'b+' from 'b'. The
agency also affirmed the rest of ACB's ratings.

KEY RATING DRIVERS

IDR, VIABILITY RATING

ACB's Long-Term IDR is driven by its standalone credit profile, as
reflected in its Viability Rating. The rating upgrade takes into
account ACB's continued improvement in profitability and internal
capital generation, which Fitch expects to be sustained in the near
to medium term. The rating also considers its modest franchise as a
mid-sized private bank in Vietnam and predominantly secured loans.
This is counterbalanced by recent years of rapid credit growth,
whereby asset-quality weakness may manifest in a less benign
operating environment.

ACB is one of the few Vietnamese banks that has adopted the local
Basel II standards. The bank's Fitch Core Capital ratio of 9% at
end-September 2019 remained low by global standards and indicates
the bank's thin capital buffers. Nevertheless, the bank's core
capital is higher than that of other Fitch-rated banks in Vietnam,
and this is likely to improve, supported by rising profitability
and better earnings retention via a share dividend scheme.

ACB's operating profit/risk-weighted assets improved to 2.8% for
9M19 - the highest among Fitch-rated banks in Vietnam - from 1.7%
in the financial year to end-December 2017 (FY17) and 1.4% in FY16,
as credit costs declined and business momentum picked up. This came
about despite a much higher risk-weighted asset base following the
adoption of Basel II. Fitch expects the bank's profitability to
improve further, underpinned by continued robust growth in
higher-yielding retail lending and bancassurance.

ACB's reported problem-loan ratio - including special mention loans
and loans sold to the Vietnam Asset Management Company - stood at a
low 0.9% at end-September 2019. Fitch believes that loan quality
from ACB's recent rapid credit growth is untested through credit
and interest rate cycles, and the under-reporting of problem loans
remains prevalent in the system. However, this is likely to be less
of a concern for ACB in light of its balance sheet clean-up. Fitch
also expects the benign economy to continue to support the bank's
asset quality in the near term.

ACB's funding and liquidity profile remains relatively stable, with
loan/deposit ratio of 86% at end-September 2019. Customer deposits
accounted for roughly 93% of ACB's funding, with low-cost deposits
comprising 17% of total customer deposits and retail clients making
up the majority of its depositors - reflecting its retail-centric
business model.

SUPPORT RATING AND SUPPORT RATING FLOOR

The bank's Support Rating of '5' and Support Rating Floor of 'B-'
reflect Fitch's assessment that state support may be possible but
cannot be relied upon. This takes into account the bank's modest
market share of about 3% of system assets, large banking system
relative to GDP, as well as the sovereign fiscal flexibility, as
reflected in the sovereign's 'BB' rating.

RATING SENSITIVITIES

IDR, VIABILITY RATING

Further Viability Rating and Long-Term IDR upgrade would require
significant and sustainable improvement in ACB's loss-absorption
buffers and profitability, as well as demonstration of tighter risk
controls. This is assuming that its other credit metrics remain
broadly intact.

Conversely, a disproportionate and sustained credit expansion as
the bank chases market share, especially in riskier unsecured
consumer loans, could negatively affect the ratings, if this is not
compensated by a corresponding increase in capitalisation. Stresses
in the economic environment that lead to a material weakening in
its financial profile would also pressure its standalone credit
rating.

SUPPORT RATING AND SUPPORT RATING FLOOR

An upgrade to the Support Rating and Support Rating Floor for ACB
is sensitive to its expectations around the sovereign's ability and
propensity to support the bank.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity, either
due to their nature or the way in which they are being managed by
the entity.

ACB has an ESG Relevance Score of 4 for Corporate Governance. This
reflects its assessment that there is a moderate risk stemming from
its corporate governance. It takes into account the bank's low
independent director representation.

ACB also has an ESG Relevance Score 4 for Financial Transparency.
This incorporates its assessment that Vietnam banks' financial
statement disclosures are generally lacking relative to other
jurisdictions.

MILITARY COMMERCIAL: Fitch Affirms B+ LT IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings affirmed the Long-Term Issuer Default Rating of
Vietnam-based Military Commercial Joint Stock Bank at 'B+' with a
Stable Outlook. At the same time, the agency has affirmed the
Viability Rating at 'b+'.

KEY RATING DRIVERS

IDR, VIABILITY RATING

MB's Long-Term IDR is driven by its standalone credit profile,
which is indicated by its Viability Rating. The bank's Viability
Rating reflects its improving profitability and acceptable funding
and liquidity profile, which are counterbalanced by its modest
franchise and thin, albeit above average, capital buffers. The
ratings also take into consideration the bank's high risk appetite
as well as the risks from its rapid credit growth in recent years.

MB's profitability has been improving due to stronger growth in
high-yielding consumer loans as well as bancassurance business.
Fitch expects this, along with stable credit costs, to support
profitability in the near term. The bank's operating
profit/risk-weighted assets of 2.6% for 9M19 was higher than the
2.3% rated peer average.

MB is one of the few domestic banks that already complies with the
local Basel II standards. The bank's Fitch Core Capital ratio of
8.8% at end-September 2019 (2018: 10.8%) incorporates the effect of
the stricter Basel II risk-weighting calculation and remained
better than that of state-owned peers. MB is reportedly looking to
sell a 7.5% stake to foreign investors, which Fitch estimates could
add 1pp to its capital ratios. Fitch believes the bank's core
capital level is likely to remain below global standards in the
near term, notwithstanding its improving internal capital
generation.

MB's asset quality metrics continue to benefit from a benign
economic environment and rapid loan growth. Its reported
problem-loan ratio, including special-mention loans and loans sold
to the Vietnam Asset Management Company, has been relatively stable
at around 3% in the past few years. Fitch believes that
under-reporting of problem loans remains common in the system,
although at varying degrees among the banks. This may be less of an
issue for MB judging by its relatively better management of legacy
exposures compared with that of most state-owned banks. The quality
of its rapidly growing consumer loans is untested through the
cycle, however, the current conducive operating environment should
mitigate near-term downside risk.

The bank's loan/deposit ratio increased to 88% as at end-September
2019, from 84% in 2017 and 77% in 2016, but its liquidity profile
remains acceptable. The bank is primarily deposit funded, with
customer deposits constituting 80% of total funding. Fitch believes
the bank's funding profile benefits from its indirect state
linkages. MB is 14.4%-owned by Vietnam Military Telecommunications
Group, which is a 100% state-owned corporation.

SUPPORT RATING AND SUPPORT RATING FLOOR

The Support Rating and Support Rating Floor reflect its view that
state support may be possible but cannot be relied upon. The bank's
franchise, with a market share of around 3% of system assets, is
smaller compared with the 9%-12% of other rated state-owned banks.

RATING SENSITIVITIES

IDR, VIABILITY RATING

A significant and sustained improvement in capitalisation and
profitability metrics would be positive for MB's standalone credit
profile, assuming risk controls and asset quality improve in
tandem.

Conversely, excessive credit growth, especially in higher-risk
sectors, such as unsecured consumer loans, would pressure the
bank's ratings, especially if it occurs without a corresponding
increase in loss-absorption buffers and an improvement in risk
controls. A stress in the operating environment leading to a
material weakening of MB's financial profile would also pressure
its standalone credit rating.

SUPPORT RATING AND SUPPORT RATING FLOOR

The Support Rating and Support Rating Floor are sensitive to
perceived changes in the state's ability and propensity to provide
extraordinary support.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity, either
due to their nature or the way in which they are being managed by
the entity.

MB has an ESG Relevance Score of 4 for Corporate Governance. This
reflects its view that there is a moderate risk stemming from its
corporate governance framework. It takes into account the bank's
low independent director representation.

MB also has an ESG Relevance Score 4 for Financial Transparency.
This incorporates its view that Vietnam banks' financial statement
disclosures are generally lacking relative to other jurisdictions.

VIETCOMBANK: Fitch Affirms BB- LT IDR, Outlook Positive
-------------------------------------------------------
Fitch Ratings affirmed Joint Stock Commercial Bank for Foreign
Trade of Vietnam's (Vietcombank) Long-Term Issuer Default Rating at
'BB-'. The Outlook is Positive. At the same time, the agency has
affirmed the bank's Viability Rating at 'b'.

The Positive Outlook is in line with the Outlook on the sovereign
rating (BB/Positive).

KEY RATING DRIVERS

IDR, SUPPORT RATING, SUPPORT RATING FLOOR

The Long-Term IDR and Support Rating Floor of Vietcombank are
driven by Fitch's expectation of a moderate likelihood of state
support to the bank, in times of need. This takes into account its
high systemic importance, quasi-policy function and the
government's controlling stake. Vietcombank is one of the four
largest banks in Vietnam, with market share of about 10%-11% in
system assets and deposits.

The IDR and Support Rating Floor are one notch below the sovereign
rating as Fitch believes that the large size of the banking
industry relative to GDP and the government's improving but still
limited resources may hamper the timeliness of support.

The Positive Outlook on the Long-Term IDR reflects its view of an
improving sovereign ability to provide extraordinary support, if
needed.

VIABILITY RATING

Vietcombank's Viability Rating takes into account its entrenched
domestic franchise, generally stable funding and liquidity profile
and continued improvement in its profitability. This is
counterbalanced by the bank's thin capital buffers and high risk
appetite, characterised by rapid loan growth in recent years which
may lead to rapid deterioration in credit quality in a less benign
operating environment - although this is not its base-case
scenario.

Vietcombank's profitability has been improving in recent years,
buoyed by the strong growth in higher-yielding retail segment and
low credit costs. These factors, along with new bancassurance
partnership, should continue to drive its earnings in the near
term, barring unexpected shocks in the economy. The bank's
operating profit/risk-weighted assets of 2.3% for 2019 was broadly
comparable with that of its Fitch-rated private peers in Vietnam.

Vietcombank is one of the few Vietnamese banks that is already in
compliant with local Basel II standards. Its Basel II-compliant
Fitch Core Capital of 8.2% at end-2019 remained lower than global
norms and indicates the bank's thin loss-absorption buffers. Fitch
expects the bank's capitalisation to improve gradually, helped by
stronger internal capital generation capacity. The proposal to
implement scrip dividend instead of cash payout may also help the
bank to retain more of its earnings.

Vietcombank's reported problem-loan ratio - which includes special
mention loans and bonds sold to the Vietnam Asset Management
Company - of 1.1% at end-2019 has been largely aided by a benign
operating environment and rapid credit growth. Any deterioration in
asset quality is likely to be modest as Fitch expects the economic
environment to remain supportive in the near to medium term. The
under-reporting of non-performing loans remains an issue in the
system, although Fitch believes this is likely to be less of a
concern for Vietcombank, judging from its management of legacy
exposures in recent years.

Vietcombank's funding and liquidity is a relative rating strength.
Its loan/deposit ratio of 79% at end-2019 remained lower than other
Fitch-rated peers, despite sustained rapid credit growth in recent
years. The bank's lower-than-average funding costs reflect the
bank's higher low-cost current and savings deposit mix of 31% at
end-2019, and higher proportion of foreign currency deposits (16%
of total customer deposits) that attract zero interest rate. Fitch
believes that the bank has an advantage over private banks in times
of stress, as depositors are likely to have more confidence in
banks that are majority-owned by the state.

RATING SENSITIVITIES

IDR, SUPPORT RATING, SUPPORT RATING FLOOR

The Long-Term IDR, Support Rating and Support Rating Floor of
Vietcombank are sensitive to movements in the sovereign rating, and
the government's propensity to support the bank. An upgrade of the
sovereign rating would be likely to lift the bank's support-driven
ratings.

VIABILITY RATING

There could be upside to the Viability Rating if the bank were to
sustainably beef up its capital buffers, as indicated by its core
capitalisation ratios. This is assuming that other credit factors,
such as risk appetite and asset quality, remain broadly intact.

Conversely, unrestrained credit growth - possibly through material
weakening in underwriting standards coupled with weakened
balance-sheet strength - would be likely to pressure the bank's
rating. Stresses in the operating environment that lead to a
material weakening in financial profile would also pressure the
bank's standalone credit rating.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity, either
due to their nature or the way in which they are being managed by
the entity.

Vietcombank has an ESG Relevance Score of 4 for Governance
Structure. This reflects its view of a moderate risk of government
influence that negatively affects its standalone credit profile, in
light of the state's controlling stake and government-appointed
board.

Vietcombank has an ESG Relevance Score of 4 for Financial
Transparency. This incorporates its view that Vietnam banks'
financial statement disclosures are generally lacking relative to
other jurisdictions.

VIETINBANK: Fitch Affirms BB- LT IDR, Outlook Positive
------------------------------------------------------
Fitch Ratings affirmed the Long-Term Issuer Default Rating of
Vietnam Joint Stock Commercial Bank for Industry and Trade
(Vietinbank) at 'BB-' with a Positive Outlook. At the same time,
the agency has affirmed the bank's Viability Rating at 'b'.

The Positive Outlook is in line with the Outlook on the sovereign
rating (BB/Positive).

KEY RATING DRIVERS

IDR, SUPPORT RATING AND SUPPORT RATING FLOOR

The Long-Term IDR of Vietinbank is driven by Fitch's expectation
that there would be a moderate likelihood of state support for the
bank in times of need. This explains the bank's Support Rating of
'3'. Its assessment takes into consideration the bank's high
systemic importance, quasi-policy function and the state's
controlling stake. Vietinbank is one of Vietnam's four-largest
banks, with a market share of about 10% of system assets and
deposits.

The IDR and Support Rating Floor are one notch below the sovereign
rating, as Fitch believes the large size of the banking industry
relative to GDP and the government's limited, albeit improving,
fiscal buffers may hamper the timeliness of support.

VIABILITY RATING

Vietinbank's Viability Rating reflects its established domestic
franchise and is supported by strong state linkages. This is,
however, counterbalanced by its thin capital buffers, sub-par asset
quality and profitability, and high risk appetite.

Vietinbank is the only Fitch-rated Vietnamese bank that is yet to
comply with the local Basel II standards. Its Fitch Core Capital of
7.7% at end-September 2019 is low by global measures, and Fitch
expects it to be even lower under the stricter Basel II risk-weight
calculations. Vietinbank is almost already at the 30%
foreign-ownership cap, which limits its ability to raise
significant capital, and the bank has resorted to local Tier 2
issuances to bridge the capital gap as well as lowering its
loan-growth target - a trend that Fitch expects to continue as it
works towards complying with Basel II requirements.

Vietinbank only intensified its effort to recognise some legacy
problem loans in 2018, lagging behind other domestic Fitch-rated
banks. Its reported problem-loan ratio - including special-mention
loans and bad debt sold to the Vietnam Asset Management Company
(VAMC) - of 3.7% at end-September 2019 was higher than that of
other domestic Fitch-rated peers. Fitch expects credit costs
associated with VAMC-issued special bonds and broader problem loans
to continue to weigh on the bank's profitability in the near to
medium term.

Vietinbank remains primarily deposit-funded, with customer deposits
making up 79% of total funding at end-September 2019. Its
loan/deposit ratio has historically been above 100% (end-September
2019: 104%), despite its wide branch network; Fitch expects the
ratio to remain relatively stable but above average. Fitch believes
Vietinbank, like other state-owned banks, has an advantage over
private banks in times of stress, as depositors are likely to have
more confidence in a bank that is majority owned by the state.

RATING SENSITIVITIES

IDR, SUPPORT RATING AND SUPPORT RATING FLOOR

The Long-Term IDR, Support Rating and Support Rating Floor of
Vietinbank are sensitive to movements in the sovereign rating, as
well as its assessment of the state's propensity and ability to
support the bank. An upgrade of the sovereign rating would likely
lift the bank's support-driven ratings.

VIABILITY RATING

Meaningful and sustainable improvements in key financial
indicators, such as capitalisation and asset quality, along with
enhanced risk controls and a reduced risk appetite, would be
positive for the bank's standalone credit profile.

Conversely, prolonged excessive growth that leads to significant
loan impairment and, in turn, lower profitability and
loss-absorption buffers, would pressure its Viability Rating.
Stresses in the economic environment that lead to a material
weakening in the bank's financial profile would also pressure its
standalone credit profile.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3 - ESG issues are credit
neutral or have only a minimal credit impact on the entity, either
due to their nature or the way in which they are being managed by
the entity.

Vietinbank has an ESG Relevance Score of 4 for Corporate
Governance. This reflects its view that there is a moderate risk
stemming from its corporate governance framework. It takes into
account the bank's low independent director representation and the
state's controlling stake.

Vietinbank also has an ESG Relevance Score 4 for Financial
Transparency. This incorporates its view that Vietnam banks'
financial statement disclosures are generally lacking relative to
other jurisdictions.


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

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

Copyright 2020.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
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