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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

          Friday, March 13, 2020, Vol. 23, No. 53

                           Headlines



A U S T R A L I A

ADDCAR MINING: First Creditors' Meeting Set for March 19
AUSTRALIAN NUTRITION: First Creditors' Meeting Set for March 23
CIVIC PLAZA: Second Creditors' Meeting Set for March 19
HARP N BOWL: First Creditors' Meeting Set for March 20
JAYPEE INFRATECH: NCLT OKs NBCC's Bid But With Modifications

LATITUDE AUSTRALIA: DBRS Confirms BB Rating on 4 Class E Notes
SAPPHIRE XVII 2017-2: Moody's Upgrades Class E Notes Rating to Ba1
VIG MARKETING: Second Creditors' Meeting Set for March 19
VIG REAL ESTATE: Second Creditors' Meeting Set for March 19
WELLARD LTD: Faces Class Action Over Misleading Info in Prospectus



C H I N A

ANBANG INSURANCE: US$5.8BB Hotels Sale to Mirae in Peril
GOME RETAIL: S&P Withdraws 'B+' Long-Term Issuer Credit Rating
HOPSON DEVELOPMENT: Fitch Affirms B+ LT IDR, Outlook Stable
XINJIANG ZHONGTAI: S&P Alters Outlook to Neg. & Affirms 'BB+' ICR


H O N G   K O N G

HONG KONG JUNFA: Fitch Affirms B+ LT IDR, Outlook Stable
HONG KONG: Resurrects Chapter 11-Style Corporate Rescue Bill


I N D I A

ALOKA EXPORTS: ICRA Lowers Rating on INR3cr Loan to B+
BHAGAWATI ENTERPRISES: ICRA Withdraws B+ Rating on INR5cr Loan
CONTROLS AND SCHEMATICS: ICRA Reaffirms B- Rating on INR4cr Loan
CYBERWALK TECH: ICRA Reaffirms 'D' Rating on INR68.84cr Loan
DIGHI PORT: NCLT Approves Adani Ports' INR650 Crore Bid

ESWARI GREEN: Ind-Ra Maintains 'B' Loan Rating in Non-Cooperating
FIBRIL TEX: ICRA Assigns B(Stable) Rating to INR25cr Term Loan
GINNI HOLDINGS: ICRA Maintains 'D' Rating in Not Cooperating
GLITTER METALS: ICRA Assigns B+/A4 Rating to INR10cr Loan
GOEL EXIM: ICRA Maintains 'D' Rating in Not Cooperating

JAGANNATH RICE: Ind-Ra Affirms 'BB' Issuer Rating, Outlook Stable
JET AIRWAYS: Gets No Bid; Most Likely to be Liquidated
K2 METALS: ICRA Reaffirms B+ Rating on INR17cr Fund-based Loan
KARUPPASWAMY BUILDERS: ICRA Assigns B+ Rating to INR7cr Loan
MANDOVI CASTING: ICRA Withdraws B Rating on INR2.76cr LT Loan

MYTRAH VAYU INDRAVATI: ICRA Cuts Rating on INR915.90cr Loan to B-
MYTRAH VAYU: ICRA Cuts Rating on INR983.54cr Loan to B-
NEERG ENERGY: Fitch Ups Rating on $475MM Sr. Notes due 2022 to BB-
PRAVEEN ELECTRICAL: ICRA Lowers Rating on INR9cr Loan to 'D'
PRAYAGRAJ POWER: ICRA Withdraws D Rating on INR11,493cr Loans

R.K. DHABHAI: ICRA Maintains 'D' Rating in Not Cooperating
RENEW POWER: S&P Affirms'BB-' Issuer Credit Rating, Outlook Stable
RENEW RG II: Fitch Affirms BB Rating on $525MM Sr. Sec. Notes
SHIVAKRITI INT'L: ICRA Withdraws B+ Rating on INR13cr Loan
SHIVAM COTTON: ICRA Reaffirms B Rating on INR8.0cr Cash Loan

SHREE RAJ: ICRA Maintains 'D' Rating in Not Cooperating
SHREE SHANKAR: ICRA Withdraws B+ Rating on INR6.25cr Cash Loan
SHRI GANESH: ICRA Keeps C- Rating on INR3.0cr LT Loan in Not Coop.
SPARTAN ENGINEERING: ICRA Withdraws B+ Rating on INR25cr Loan
SUBHANG CAPSAS: ICRA Keeps B+ Rating in Not Cooperating

VATSALYA PAPER: ICRA Assigns B+ Rating to INR26.22cr Loan
VEDA BIOFUEL: Ind-Ra Lowers Long Term Issuer Rating to 'D'


I N D O N E S I A

BUMI SERPONG: Fitch Affirms BB- LT IDR, Outlook Stable


M O N G O L I A

MIK HOLDING: Fitch Withdraws B- LT IDR due to Insufficient Info


P H I L I P P I N E S

RIZAL COMMERCIAL: Fitch Affirms Then Withdraws BB+ LT IDR


S I N G A P O R E

HONESTBEE PTE: Lays Off 80% of Staff, Delays Salary Payment
PUMA ENERGY: Moody's Downgrades CFR to B1, Outlook Negative


X X X X X X X X

[*] IMF Makes Available $50 Billion to Help Address Coronavirus

                           - - - - -


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A U S T R A L I A
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ADDCAR MINING: First Creditors' Meeting Set for March 19
--------------------------------------------------------
A first meeting of the creditors in the proceedings of:

    -- Addcar Mining Solutions Pty Ltd;
    -- Addcar Engineers Pty Ltd;
    -- Addcar Holdings Pty Ltd;
    -- Addcar Management Services Pty Ltd;
    -- Addcar Contracting Services Pty Ltd;
    -- Addcar Equipment Hire Pty Ltd;
    -- Addcar Engineers Civil Services Division Pty Ltd;
    -- Pipelion Manufacturing Pty Ltd;
    -- Addcar Highwall Mining Pty Ltd; and
    -- Addcar USA Interest Pty Ltd

will be held on March 19, 2020, at 10:00 a.m. at:

     Newcastle: Quest Newcastle West
                787 Hunter Street
                (Corner of Wood St & Hunter St)
                Newcastle West, NSW

      Brisbane: Flex Meetings, Central Plaza
                345 Queen Street
                Brisbane, Queensland

Jonathan Henry and Jason Preston William Harris of McGrathnicol
were appointed as administrators of Addcar Mining on March 9, 2020.

AUSTRALIAN NUTRITION: First Creditors' Meeting Set for March 23
---------------------------------------------------------------
A first meeting of the creditors in the proceedings of Australian
Nutrition & Sports Limited will be held on March 23, 2020, at 2:30
p.m. at the offices of SV Partners, Level 17, at 200 Queen Street,
in Melbourne, Victoria.

Richard John Cauchi & Michael Carrafa of SV Partners were appointed
as administrators of Australian Nutrition on March 11, 2020.

CIVIC PLAZA: Second Creditors' Meeting Set for March 19
-------------------------------------------------------
A second meeting of creditors in the proceedings of Civic Plaza 88
Management Pty Ltd has been set for March 19, 2020, at 4:00 p.m. at
the offices of The Grace Sydney, at 77 York Street, in Sydney, NSW.


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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 18, 2020, at 4:00 p.m.

Domenico Alessandro Calabretta and Grahame Robert Ward of Mackay
Goodwin were appointed as administrators of Civic Plaza on Feb. 13,
2020.

HARP N BOWL: First Creditors' Meeting Set for March 20
------------------------------------------------------
A first meeting of the creditors in the proceedings of Harp n Bowl
Pty Ltd will be held on March 20, 2020, at 11:00 a.m. at the
offices of IRT Advisory, Suite 601, Level 6, at 20 Queen Street, in
Melbourne, Victoria.

Andrew Poulter of IRT Advisory was appointed as administrator of
Harp n Bowl on March 10, 2020.

JAYPEE INFRATECH: NCLT OKs NBCC's Bid But With Modifications
------------------------------------------------------------
The Hindu BusinessLine reports that in a major relief to the home
buyers of Jaypee Infratech, the National Company Law Tribunal
(NCLT) on March 10 gave approval to the resolution plan of the
State-owned NBCC to complete the project of the debt-ridden real
estate company.

The plan has been approved with certain modifications, the report
says.

"These modifications will be clear once the details are out on
Wednesday," the report quotes Anuj V Jain, Interim Resolution
Professional, Jaypee Infratech, as saying.

BusinessLine relates that NCLT also pointed out that ₹750 crore,
which was deposited by the promoter Jaiprakash Associates Ltd (JAL)
in the Supreme Court, has to be used to complete the stuck projects
of Jaypee Infratech.

Last December, lenders and home buyers voted in favor of NBCC's bid
to acquire Jaypee Infratech, the report recalls. Around 97.36 per
cent votes went in the favor of NBCC's bid, making the resolution
successful in the third attempt.

The other contender was Suraksha Realty, a Mumbai-based real estate
firm, the report notes.

There were 13 banks and more than 23,000 home buyers which had the
voting rights in the Committee of Creditors (CoC), and it was
decided by CoC that home buyers and lenders would vote on both the
bids - NBCC and Suraksha Realty - simultaneously, BusinessLine
relays.

BusinessLine says NBCC, which will develop the project in a phased
manner, is expected to start the work from April 2020 as mentioned
in its revised bids.

Once work commences, the State-owned firm will have to complete the
project in 42 months.

Around 22,000 flats are to be built across various housing projects
that were launched by Jaypee Infratech in Noida and Greater Noida.

                        About Jaypee Infratech

Jaypee Infratech Limited (JIL) is engaged in the real estate
development.  The Company's business segments include Yamuna
Expressway Project and Healthcare.  The Company's Yamuna Expressway
Project is an integrated project, which inter alia includes
construction of 165 kilometers long six lane access controlled
expressway from Noida to Agra with provision for expansion to eight
lane with service roads and associated structures on build, own,
operate and transfer basis.  The Company provides operation and
maintenance of Yamuna Expressway for over 36 years, collection of
toll and the rights for development of approximately 25 million
square meters of land for residential, commercial, institutional,
amusement and industrial purposes at over five land parcels along
the expressway.  The Healthcare business segment includes
hospitals.  The Company has commenced development of its Land
Parcel-1 at Noida, Land Parcel-3 at Mirzapur and Land Parcel-5 at
Agra.

JIL features in the Reserve Bank of India's first list of
non-performing assets accounts and had debt exposure of over
INR9,783 crore as of September 2017.  The parent company,
Jaiprakash Associates Ltd. (JAL), owes more than INR29,000 crore to
various banks.

On Aug. 8, 2017, the National Company Law Tribunal (NCLT),
Allahabad bench accepted lender IDBI Bank's plea and classified JIL
as an insolvent company.  With this, the board of directors of the
company remains suspended.

Anuj Jain was appointed as Interim Resolution Professional (IRP) to
manage the company's business.  The IRP had invited bids from
investors interested in acquiring JIL and completing the stuck real
estate projects in Noida and Greater Noida.

In the first round of insolvency proceedings conducted in 2018, the
INR7,350-crore bid of Lakshdeep, part of Suraksha Group, was
rejected by lenders. The Committee of Creditors (CoC) rejected the
bids of Suraksha Realty and NBCC Ltd in the second round held in
May-June 2018, according to The Economic Times.

On Nov. 6, 2019, the Supreme Court directed completion of Jaypee
Infratech's insolvency process within 90 days and said the revised
resolution plan will be invited only from NBCC and Suraksha Realty,
ET related.

LATITUDE AUSTRALIA: DBRS Confirms BB Rating on 4 Class E Notes
--------------------------------------------------------------
DBRS Ratings Limited confirmed its ratings of the Series 2017-1,
Series 2017-2, Series 2018-1, and Series 2019-1 Notes (the Notes)
issued by Latitude Australia Credit Card Loan Note Trust (the
Issuer) as follows:

Series 2017-1:
-- Class A1 Notes at AAA (sf)
-- Class A2 Notes at AAA (sf)
-- Class B Notes at AA (sf)
-- Class C Notes at A (sf)
-- Class D Notes at BBB (sf)
-- Class E Notes at BB (sf)

Series 2017-2:
-- Class A1 Notes at AAA (sf)
-- Class A2 Notes at AAA (sf)
-- Class B Notes at AA (sf)
-- Class C Notes at A (sf)
-- Class D Notes at BBB (sf)
-- Class E Notes at BB (sf)

Series 2018-1:
-- Class A1 Notes at AAA (sf)
-- Class A2 Notes at AAA (sf)
-- Class B Notes at AA (sf)
-- Class C Notes at A (sf)
-- Class D Notes at BBB (sf)
-- Class E Notes at BB (sf)

Series 2019-1:
-- Class A1 Notes at AAA (sf)
-- Class A2 Notes at AAA (sf)
-- Class B Notes at AA (sf)
-- Class C Notes at A (sf)
-- Class D Notes at BBB (sf)
-- Class E Notes at BB (sf)

The ratings address the timely payment of interest and ultimate
payment of principal on or before the legal final maturity date.

The confirmations follow an annual review of the transaction and
are based on the following analytical considerations:

-- Portfolio performance, in terms of delinquencies, charge-off
rates, principal payment rates, and yield rates;

-- The ability to withstand stressed cashflow assumptions;

-- No purchase termination events have occurred;

-- Current available credit enhancement to the notes to cover the
expected losses at their respective rating levels.

Latitude Australia Credit Card Loan Note Trust is a securitization
of credit card receivables related to credit agreements originated
or acquired by Latitude Finance Australia (Latitude) to customers
in Australia and assigned to the Latitude Australia Credit Card
Master Trust. Each series is currently in its respective revolving
period.

PORTFOLIO PERFORMANCE AND ASSUMPTIONS

As of January 2020, the monthly principal payment rate (MPPR) was
12.7%, the annualized gross charge-off rate was 4.2%, and the
annualized yield rate was 12.6%. DBRS Morningstar maintained its
base case MPPR, charge-off rate, and yield assumptions at 11.3%,
6.3%, and 12.5%, respectively.

As of January 2020, loans that were two- to three months in arrears
represented 0.8% of the outstanding receivables balance, unchanged
from January 2019. Receivables more than three months in arrears
represented 1.3% of the outstanding receivables balance, down from
1.4% in January 2019.

CREDIT ENHANCEMENT AND RESERVES

With respect to Series 2017-1 and Series 2017-2, the Class A1 Notes
each benefit from a credit enhancement of 34.5%. With respect to
Series 2018-1 and 2019-1, the Class A1 Notes each benefit from a
credit enhancement of 32.5%. Credit enhancement to the Class A2,
Class B, Class C, Class D, and Class E Notes is 22.5%, 17.0%,
12.0%, 8.0% and 4.5%, respectively, for all series. Credit
enhancement consists of subordination of the junior notes and the
series-specific Originator variable funding note (VFN) and remained
stable due to the revolving periods.

The Required Retained Principal Ledgers in respect of each series
and the Originator VFN Required Retained Principal Ledger provide
liquidity support to the transaction. The Series Required Retained
Principal Ledger is funded to 1% of the outstanding Notes balance.

Westpac Banking Corporation (Westpac) acts as the account bank for
the transaction. Based on the account bank reference rating of
Westpac at AA, the downgrade provisions outlined in the transaction
documents, and other mitigating factors inherent in the transaction
structure, DBRS Morningstar considers the risk arising from the
exposure to the account bank to be consistent with the rating
assigned to the Class A Notes for each series, as described in DBRS
Morningstar's "Legal Criteria for European Structured Finance
Transactions" methodology.

DBRS Morningstar analyzed the transaction structure in its
proprietary cash flow engine.

Notes: All figures are in Australian dollars unless otherwise
noted.

SAPPHIRE XVII 2017-2: Moody's Upgrades Class E Notes Rating to Ba1
------------------------------------------------------------------
Moody's Investors Service upgraded the ratings on seven classes of
notes issued by three Sapphire residential mortgage-backed
securities.

The affected ratings are as follows:

Issuer: Sapphire XVII Series 2017-2 Trust

Class B Notes, Upgraded to Aa1(sf); previously on Nov 8, 2017
Definitive Rating Assigned Aa2(sf)

Class C Notes, Upgraded to Aa3(sf); previously on Nov 8, 2017
Definitive Rating Assigned A2(sf)

Class D Notes, Upgraded to Baa1(sf); previously on Nov 8, 2017
Definitive Rating Assigned Baa2(sf)

Class E Notes, Upgraded to Ba1(sf); previously on Nov 8, 2017
Definitive Rating Assigned Ba2(sf)

Issuer: Sapphire XVIII Series 2018-1 Trust

Class B Notes, Upgraded to Aa1(sf); previously on Feb 27, 2018
Definitive Rating Assigned Aa2(sf)

Class C Notes, Upgraded to A1(sf); previously on Feb 27, 2018
Definitive Rating Assigned A2(sf)

Issuer: Sapphire XIX Series 2018-2 Trust

Class B Notes, Upgraded to Aa1(sf); previously on Sep 6, 2018
Definitive Rating Assigned Aa2(sf)

RATINGS RATIONALE

The upgrades have been prompted by an increase in the note
subordination available to the affected notes since issuance.
Sequential amortization of the notes has led to the increase in
note subordination.

Sapphire XVII Series 2017-2 Trust

Sapphire XVII Series 2017-2 Trust has been making sequential
principal repayments since issuance because its average 90-plus
days arrears ratio, one of the step-down conditions for pro-rata
principal repayment, has been in breach of the 8% trigger since
November 2019.

Following the February 2020 payment date, the subordination
available for the Class B, Class C, Class D and Class E Notes has
increased to 18.6%, 12.9%, 8.5% and 4.6%, respectively, from 8.5%,
5.9%, 3.9% and 2.1% at the time of issuance.

As of January 2020, 12.3% of the outstanding pool was 30-plus day
delinquent, and 8.1% was 90-plus day delinquent. The deal has
incurred AUD693,579 of losses to date, which have been covered by
excess spread.

Based on the high delinquencies and economic outlook, Moody's has
revised its expected loss assumption to 3.8% of the outstanding
pool by projecting the future losses on delinquent loans. Moody's
loss assumption for the transaction was 2% of the outstanding pool
at the time of issuance.

Moody's has increased its MILAN CE assumption to 23.1% from 18.2%
at issuance, based on the current portfolio characteristics, which
considers the high proportion of loans in arrears.

Sapphire XVIII Series 2018-1 Trust

Sapphire XVIII Series 2018-1 Trust has been making sequential
principal repayments since issuance. The deal was not able to start
making pro-rata principal repayments on the February 2020 payment
date because its average 90-plus days arrears ratio, one of the
step-down conditions for pro-rata principal repayment, was in
breach of the 8% trigger.

Following the February 2020 payment date, the subordination
available for the Class B and Class C Notes has increased to 17.5%
and 12.1%, respectively, from 8.5% and 5.9% at the time of
issuance.

As of January 2020, 18.1% of the outstanding pool was 30-plus day
delinquent, and 11.2% was 90-plus day delinquent. The deal has
incurred AUD232,878 of losses to date, which have been covered by
excess spread.

Based on the high delinquencies and economic outlook, Moody's has
revised its expected loss assumption to 4.5% of the outstanding
pool by projecting the future losses on delinquent loans. Moody's
loss assumption for the transaction was 2% of the outstanding pool
at the time of issuance.

Moody's has increased its MILAN CE assumption to 23.9% from 18% at
issuance, based on the current portfolio characteristics, which
considers the high proportion of loans in arrears.

Sapphire XIX Series 2018-2 Trust

Sapphire XIX Series 2018-2 Trust has been making sequential
principal repayments since issuance. Depending on the loan
performance and the notes amount outstanding, the deal can make
pro-rata principal repayments as early as September 2020, which is
the second anniversary of the issue date.

Following the February 2020 payment date, the subordination
available for the Class B Notes has increased to 11.3% from 7.4% at
the time of issuance.

As of January 2020, 11.6% of the outstanding pool was 30-plus day
delinquent, and 7.9% was 90-plus day delinquent. The deal has
incurred AUD122,844 of losses to date, which have been covered by
excess spread.

Based on the high delinquencies and economic outlook, Moody's has
revised its expected loss assumption to 3.7% of the outstanding
pool by projecting the future losses on delinquent loans. Moody's
loss assumption for the transaction was 2% of the outstanding pool
at the time of issuance.

Moody's has increased its MILAN CE assumption to 19.3% from 17.3%
at issuance, based on the current portfolio characteristics, which
considers the high proportion of loans in arrears.

For all transactions, the MILAN CE and expected loss assumptions
are the two key parameters used by Moody's to calibrate the loss
distribution curve, which is one of the inputs into the cash-flow
model. In its analysis, Moody's has considered model outputs from
two scenarios: (1) no breach of the arrears ratio trigger and
pro-rata principal repayment until the first call date and (2)
continuous breach of the arrears ratio and sequential principal
repayment until deal maturity.

Moody's has also run various expected loss scenarios based on the
observed performance and outlook, including maintaining the closing
expected loss assumption as a percentage of the original pool
balance.

The transactions are Australian RMBS secured by portfolios of
residential mortgage loans, originated by Bluestone Group Pty
Limited, an Australian non-bank mortgage lender. A significant
portion of the portfolio consists of loans extended to borrowers
with impaired credit histories or made on a limited documentation
basis.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
July 2019.

Factors that would lead to an upgrade or downgrade of the ratings:

Factors that could lead to an upgrade of the ratings include (1)
performance of the underlying collateral that is better than
Moody's expectations, and (2) an increase in the notes' available
credit enhancement.

Factors that could lead to a downgrade of the ratings include (1)
performance of the underlying collateral that is worse than Moody's
expectations, (2) a decrease in the notes' available credit
enhancement, and (3) a deterioration in the credit quality of the
transaction counterparties.

VIG MARKETING: Second Creditors' Meeting Set for March 19
---------------------------------------------------------
A second meeting of creditors in the proceedings of:

     -- VIG Marketing and Events Management Pty Ltd;
     -- MP No 3 Holdings Pty Ltd;
     -- MP No 9 Holdings Pty Ltd; and
     -- MP No 10 Holdings Pty Ltd

has been set for March 19, 2020, at 3:30 p.m. at The Grace Hotel,
77 York Street, in Sydney, NSW.
  
The purpose of the meeting is (1) to receive the report by the
Administrator about the business, property, affairs and financial
circumstances of the Company; and (2) for the creditors of the
Company to resolve whether the Company will execute a deed of
company arrangement, the administration should end, or the Company
be wound up.

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 18, 2020, at 4:00 p.m.

Grahame Ward and Domenic Calabretta of Mackay Goodwin were
appointed as administrators of VIG Marketing on Feb. 13, 2020.

VIG REAL ESTATE: Second Creditors' Meeting Set for March 19
-----------------------------------------------------------
A second meeting of creditors in the proceedings of VIG Real Estate
Development Pty Ltd has been set for March 19, 2020, at 3:30 p.m.
at The Grace Hotel, 77 York Street, in Sydney, NSW.

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

Creditors wishing to attend are advised proofs and proxies should
be submitted to the Administrator by March 18, 2020, at 4:00 p.m.

Grahame Ward and Domenic Calabretta of Mackay Goodwin were
appointed as administrators of Real Estate Development on Feb. 13,
2020.


WELLARD LTD: Faces Class Action Over Misleading Info in Prospectus
------------------------------------------------------------------
Jenne Brammer at The West Australian reports that Wellard executive
chairman John Klepec said his company will vigorously defend a
class action that claims the prospectus for its AUD289 million
sharemarket float in 2015 misled and deceived investors.

The West Australian says the class action was filed in the Federal
Court in Melbourne on March 9 by law firm Emanuel Urquhart &
Sullivan on behalf of aggrieved Wellard investors.

ICP Funding has agreed to fund the class action, the report says.

According to The West Australian, the lawsuit is open to investors
who bought shares or long exposure swaps in Wellard between
December 8, 2015 and August 31, 2016.

Wellard listed on the Australian Securities Exchange on Dec. 10,
2015 at a share price of AUD1.39, the report notes.

Four subsequent profit warnings the following year, blamed on
rising Australian cattle prices and issues with live export ships,
sent its share price plunging to 21.5 cents a year later.

The shares have failed to recover. They closed 7.8 per cent down at
4.7 cent on March 8, valuing the Perth-based group at just AUD25
million, The West Australian discloses.

In November, the cash-strapped live exporter announced it was
getting out of the live export trade after 40 years, instead
focusing on chartering its modern vessels to former competitors.

Headquartered in Fremantle, Australia, Wellard Limited --
http://www.wellard.com.au/-- primarily supplies live sheep and
cattle to customers in the Middle East and Asia. It operates
through Trading and Chartering, and Other segments. The Trading and
Chartering segment engages in the business of livestock marketing;
buying livestock from various sources for export to buyers in
international markets; and logistics and transportation activities
for the delivery of livestock, which include the carriage of cargo
owned by third parties through its vessels. The Other segment
processes and distributes meat.




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C H I N A
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ANBANG INSURANCE: US$5.8BB Hotels Sale to Mirae in Peril
--------------------------------------------------------
Gillian Tan at Bloomberg News reports that Anbang Insurance Group
Co.'s sale of a $5.8 billion portfolio of U.S. luxury hotels to
South Korea's Mirae Asset Global Investments Co. is at risk of
collapsing, according to people with knowledge of the matter.

Bloomberg relates that after a lender group led by Goldman Sachs
Group Inc. failed to garner sufficient investor demand for roughly
$4 billion in commercial mortgage-backed securities to finance the
transaction, talks shifted to the provision of a similar amount in
bridge financing in an attempt to keep the deal alive, the people
said, asking not to be identified because the talks are private.

But some participants in the bank syndicate are balking as the
impact of the coronavirus on global travel becomes more evident and
prolonged, some of the people said, Bloomberg relays.

The $4 billion bridge-financing package is far from being finalized
and if Mirae is unable to secure sufficient commitments for the
facility or other alternative financing, the deal may be abandoned,
they said, according to Bloomberg.

A representative from Mirae said the deal is going smoothly and
financing negotiations are progressing. Many lenders are willing to
provide financing for the transaction now due to low interest
rates, the spokesman said, relates Bloomberg.

Bloomberg says revenue at hotels across the globe is expected to
plunge as tourists and corporate travelers cancel plans and
hundreds of conferences get either scrapped or delayed. This has
made some lenders unwilling to commit to certain new loans, in part
because anticipated muted appetite from investors could leave them
saddled with unwanted positions, one of the people said.

Anbang, the poster child for a slew of Chinese companies that went
on global acquisition sprees and accumulated sizable debt loads in
the process, agreed to the sale in September, recalls Bloomberg.
Mirae posted a deposit representing around 10% of the total, a
person familiar with the matter said at the time.

The portfolio of 15 hotels, which Anbang acquired through its
acquisition of Strategic Hotels & Resorts Inc., includes the Westin
St. Francis in San Francisco, Loews Santa Monica Beach Hotel, JW
Marriott Essex House in New York and the Four Seasons in Jackson
Hole, Wyoming, Bloomberg discloses.

In a statement confirming the transaction, Mirae said the deal
established it as a global player and touted the scarcity value and
high barriers to entry of the hotels it had bought. It also said it
had beat out competitors including Blackstone Group Inc.,
Brookfield Asset Management Inc., GIC Pte and Host Hotels & Resorts
Inc, Bloomberg relays.

China's two-year state custody of Anbang ended last month, when the
China Banking and Insurance Regulatory Commission said it had
secured private investors, the report notes.

                         About Anbang Insurance

Anbang Insurance Group Co., Ltd., through its subsidiaries Anbang
Property Insurance Inc., Anbang Life Insurance Inc., Hexie Health
Insurance Co., Ltd, and Anbang Asset Management Co., Ltd., offers
property insurance, life insurance, health insurance, asset
management, insurance sales agency, and insurance brokerage
services. The company provides car insurance, accident insurance,
cargo transportation insurance, credit insurance, life-long
insurance, and medical insurance services.

As reported in the Troubled Company Reporter-Asia Pacific on Feb.
26, 2018, The Strait Times related the Chinese government had
seized control of Anbang Insurance, the troubled Chinese company
that owns the Waldorf Astoria hotel in New York and other marquee
properties around the world, and charged its former chairman with
economic crimes. The Strait Times noted that the move is Beijing's
biggest effort yet to rein in a new kind of Chinese company, in
this case, one that spent billions of dollars around the world over
the past three years buying up hotels and other high-profile
properties.  The rise of these companies illustrates China's
growing economic might, but Chinese officials have grown
increasingly concerned that they were piling up debt to make
frivolous purchases. In a statement posted on its website on Feb.
23, the China Insurance Regulatory Commission said the government
was taking over to ensure the "normal and stable operation" of the
company. "Illegal operations at Anbang may have seriously
endangered the company's solvency, prompting the government to take
control," the statement read.

The Strait Times noted the move also caps the downfall of Anbang
leader Wu Xiaohui. Mr. Wu had married a granddaughter of Mr. Deng
Xiaoping, China's paramount leader in the 1980s and a towering
figure in Chinese politics, and was widely considered politically
connected.

Mr. Wu Xiaohui was later sentenced to 18 years in prison for fraud
and embezzlement, according to Reuters.

GOME RETAIL: S&P Withdraws 'B+' Long-Term Issuer Credit Rating
--------------------------------------------------------------
S&P Global Ratings withdrew its 'B+' long-term issuer credit rating
on GOME Retail Holdings Ltd. at the company's request. The ratings
were on CreditWatch with negative implications at the time of the
withdrawal.

The CreditWatch placement reflected S&P's view that GOME's business
could be affected by the COVID-19 outbreak.


HOPSON DEVELOPMENT: Fitch Affirms B+ LT IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed Hopson Development Holdings Limited's
Long-Term Foreign-Currency Issuer Default Rating at 'B+'. The
Outlook is Stable. Fitch has also affirmed the rating on Hopson's
senior unsecured notes due 2022 at 'B+' with a Recovery Rating of
'RR4', and assigned a senior unsecured rating of 'B+' with a
Recovery Rating of 'RR4'.

Hopson's ratings are supported by the company's high-quality land
bank and consistently moderate leverage. The strong investment
property portfolio also supports Hopson's rating and gives it an
additional funding channel to expand its assets. Hopson's ratings
are constrained by weaker sales visibility and small
contracted-sales scale relative to peers.

KEY RATING DRIVERS

Large, Well-Located Land Bank: Hopson's good-quality land bank
continues to support its ability to meet is higher sales target of
around CNY30 billion in 2020, from CNY21 billion in 2019. Hopson
had 21.4 million sq m of residential land bank at end-June 2019 out
of a total of 29.4 million sq m, including IP sites, with the
majority of it in Beijing, Shanghai and Guangzhou. Much of Hopson's
land bank was acquired many years ago at a low cost, which is
reflected in the company's high EBITDA margins of over 30%.

Moderate Leverage: Hopson has maintained a moderate leverage,
measured by adjusted net debt/adjusted inventory, at just below 40%
in the past five years. Fitch estimates that leverage fell to
around 36% by end-2019, from 37.8% at end-2018, driven by a 42% yoy
increase in contracted sales and improved cash collection. Hopson's
financial policy is somewhat opportunistic and the company has gone
through periods of debt-funded expansion, such as in 2013 and
2017.

Although Hopson is not under pressure to replenish its land bank to
sustain sales, management said that it may speed up land
acquisitions in 2020 to take advantage of market opportunities if
they arise. As a result, Fitch expects a slight increase in
leverage in 2020, but for net-debt to adjusted inventory to remain
well below 50%, the level at which Fitch would consider negative
rating action.

Stability from Investment Properties: Hopson has built up a solid
IP portfolio in the past few years, with gross floor area (GFA) of
around 1.9 million sq m at end-2019 and rental income that has
roughly doubled over the past two years. More than 90% of rental
income is from properties in Beijing, Shanghai and Guangzhou.

Fitch believes  Hopson's IPs still have room for positive rental
reversion because of their growing maturity and prime locations,
despite a more subdued near-term outlook due to the COVID-19
outbreak. Fitch expects recurring EBITDA/gross interest expense to
be stable at 0.4-0.5x in the coming few years, which supports
Hopson's credit profile.

Improved Liquidity: Hopson's liquidity has improved following
strong contracted sales and cash collection in 2019, and the
issuance of offshore debt since 2019. Hopson issued USD500 million
of 7.5% three-year notes in June 2019, and USD500 million of 6.0%
364-day notes in February 2020. Hopson's cash balance of HKD19.4
billion at end-June 2019 was more than enough to cover the HKD14.2
billion in debt maturing within one year. In addition, the company
had more than HKD60 billion in unencumbered assets that can be used
to secure additional debt funding if needed.

ESG - Governance: Hopson has an ESG Relevance Score of 4 for
Governance Structure. Fitch believes  Hopson has sufficient
corporate governance safeguards as a Hong Kong-listed company,
which is evident from its clean record on related-party
transactions for the past five years after checks from independent
directors. Hopson's internal corporate governance is an important
safeguard as its sister companies such as Pearl River Life
Insurance Co., Ltd. and Guangdong Pearl River Investment Holding,
are materially more leveraged than Hopson and may need support from
the Chu family that owns 69% of Hopson.

There has been some increase in purchase of services from related
parties in the past year, though Fitch believes the absolute amount
remains reasonable, with related party purchases accounting for
less than 10% of cost of sales in 1H19. Fitch believes  that the
related party transactions are not a rating constraint at the 'B+'
level.

DERIVATION SUMMARY

Hopson's credit profile is weaker than that of 'BB-' rated
homebuilders given its poorer sales visibility and smaller scale.
Its leverage is comparable to that of Times China Holdings Limited
(BB-/Stable) and Yuzhou Properties Company Limited (BB-/Stable),
but its contracted sales scale of CNY21 billion in 2019 is less
than half the size of those two companies, which justifies the
one-notch difference in their ratings.

Hopson's leverage of 35%-40% is lower than the 45%-50% for 'B+'
rated peers such as Fantasia Holdings Group Co., Limited
(B+/Stable), Helenbergh China Holdings Limited (B+/Stable) and Hong
Kong JunFa Property Company Limited (B+/Stable), but its credit
profile is weighed down by its poor asset churn and lower sales
visibility. Hopson's strong investment property portfolio and
recurring EBITDA/gross interest expense of close to 0.5x are
supportive of its ratings, but not sufficient to move the ratings
higher.

KEY ASSUMPTIONS

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

  - Contracted sales growth of 10%-15% per year in 2020-2022

  - Cash collection rate of 85% in 2020-2022

  - Land premium of CNY16 billion in 2020

  - Common dividends of HKD700 million per year in 2020-2022

Recovery Rating Assumptions:

Its recovery analysis assumes that Hopson would be liquidated in a
bankruptcy scenario because Hopson is an asset trading company.

Fitch has assumed a 10% administrative claim.

Cash balance is adjusted such that only cash in excess of the
higher of accounts payables and three months of contracted sales is
factored in.

Advance rate of 80% applied to net development-property inventory,
as EBITDA margin is more than 30%

Advance rate of 80% is applied to net investment property, which
implies around 6.5% rental yield

Advance rate of 60% is applied to property, plant and equipment

The Recovery Rating is capped at 'RR4' because under Fitch's
Country-Specific Treatment of Recovery Ratings Criteria, China
falls into Group D of creditor friendliness, and instrument ratings
of issuers with assets in the group are subject to a soft cap at
the issuer's Issuer Default Rating.

RATING SENSITIVITIES

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

Positive rating action is not anticipated in the next 24 months

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

Significant decline in contracted sales

Net debt/adjusted inventory above 50% for a sustained period

Material increase in related-party asset transactions that do not
significantly enhance Hopson's business or financial profile and
are beyond the company's business scope

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: Hopson's liquidity improved in 2019
following strong contracted sales and the issuance of the USD500
million of 7.5% senior notes due 2022 in June 2019. The company had
HKD19.4 billion of cash at end-June 2019 and HKD452 million of
pledged cash, which is more than enough to cover the short-term
debt of HKD14.2 billion. The short-term debt mostly consists of
bank loans, which Fitch believes  the company should be able to
roll over.

In February 2020, Hopson issued USD500 million of 364-day notes
with coupon of 6%.

ESG CONSIDERATIONS

Hopson has an ESG Relevance Score of 4 for Governance Structure,
which reflects the shareholding concentration and presence of
highly leveraged related parties.

Except for the matters discussed, the highest level of ESG credit
relevance, if present, 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.

XINJIANG ZHONGTAI: S&P Alters Outlook to Neg. & Affirms 'BB+' ICR
-----------------------------------------------------------------
On March 10, 2020, S&P Global Ratings revised its outlook on
Xinjiang Zhongtai (Group) Co. Ltd. to negative from stable. At the
same time, S&P affirmed its 'BB+' long-term issuer credit rating on
the company and the 'BB+' long-term issue rating on its senior
unsecured notes.

S&P said, "We revised the outlook on Xinjiang Zhongtai to negative
to reflect the risk of weakened interest coverage on a sustained
basis and the prospect that the company's earnings recover slower
than we anticipate. We affirmed the ratings because we do not
expect the company's refinancing activities and liquidity to be
materially affected by the COVID-19 outbreak in China.

"In our view, Xinjiang Zhongtai will benefit from the Chinese
government's liquidity easing policies to alleviate financing
pressure on market participants. On Feb. 13, 2020, the company's
listed subsidiary, Xinjiang Zhongtai Chemical Co. Ltd., issued
Chinese renminbi (RMB) 1.0 billion short-term commercial paper
under the new measures. In addition, we estimate that about
two-thirds of the company's debt maturing in the 12 months ending
Sept. 30, 2020 consists of bank loans. As one of the largest
state-owned enterprises (SOEs) in the Xinjiang Uyghur Autonomous
Region by assets, Xinjiang Zhongtai will likely maintain robust
relationships with domestic banks which support the rollover of its
bank loans.

"However, the company's rating buffer could still tighten, despite
our assumption of an above-trend recovery in China's economy in
2021. We expect Xinjiang Zhongtai's EBITDA to remain lower in 2021
than its peak in 2018, owing to weaker market fundamentals in the
domestic chemical and textile sectors. We anticipate that the
company's EBITDA interest coverage will average 2.05x over
2019-2021. This is marginally above our downgrade trigger of 2.0x.
As such, we removed the one-notch uplift from the company's
stand-alone credit profile which we had applied to reflect its
historically higher interest coverage.

"We believe industry disruptions caused by the COVID-19 outbreak
will hurt Xinjiang Zhongtai's downstream customers considerably.
This poses downside risks to the company's sales volumes this year.
That said, Xinjiang Zhongtai is largely self-sufficient in raw
materials and we do not expect production disruptions.

"We project Xinjiang Zhongtai's EBITDA will drop by 6% in 2020
because of COVID-19, from our estimate of RMB4.8 billion in 2019.
Our base case assumes that China will experience above-trend growth
in 2021 as the economy makes up for lost ground. Accordingly, we
believe the company's EBITDA would rebound in 2021 to RMB6.2
billion as sales volumes and prices normalize. However, the
COVID-19 situation is dynamic and there remains high uncertainty
about the impact of the outbreak on China's economy.

"In our opinion, prices of polyvinyl chloride (PVC) and caustic
soda--the company's key products--will likely remain under pressure
this year as property and industrial activities recover slowly.
Domestic carbide-based PVC prices were resilient and remained flat
year on year in 2019, supported by tighter industry supply owing to
safety incidents and plant shutdowns. However, caustic soda prices
decreased by about 20% in 2019 because of an oversupplied market,
and we expect this to remain the case in 2020. For the first three
quarters of 2019, Xinjiang Zhongtai's reported gross profit was
23.5% lower than the same period in 2018, driven by lower prices
for its chemical and textile products.

"The company's lower capital spending could temper its debt buildup
in 2020-2021. We believe that the bulk of Xinjiang Zhongtai's
capital expenditure (capex) has been funded as of end-2019,
including a production line for purified terephthalic acid,
commonly known as PTA. In addition, some of the company's projects
may be partially funded by a proposed equity financing by its
listed subsidiary, Xinjiang Zhongtai Chemical, which aims to raise
up to RMB3.9 billion. We have not included this in our base case,
given the uncertainty in timing and amount of proceeds from the
equity offering.

"We continue to view Xinjiang Zhongtai as a government-related
entity. The rating on Xinjiang Zhongtai is four notches higher than
the company's 'b' stand-alone credit profile because we see a very
high likelihood that the company will receive extraordinary support
from the Xinjiang government in the event of financial distress."
S&P's assessment is based on Xinjiang Zhongtai's following
characteristics:

-- Very strong link with the Xinjiang government. Xinjiang
Zhongtai is 100% owned by the Xinjiang State-owned Assets
Supervision and Administration Commission (SASAC) and S&P believes
the government intends to maintain its shareholding. The government
has a record of providing subsidies to Xinjiang Zhongtai in the
form of cash injections and equity transfers, and grants favorable
tax rates to support the company's development and expansion in the
chemicals and textiles businesses.

-- Very important role to the Xinjiang government. Xinjiang
Zhongtai is the largest SOE in Xinjiang in terms of both assets and
revenue. As a leading chemical producer in Xinjiang, the company
has widespread influence on the regional economy through the long
value chain of its integrated operations. The company promotes the
employment of ethnic minorities locally and plays an important role
in social stability.

S&P said, "The negative outlook reflects our view that Xinjiang
Zhongtai's leverage and EBITDA interest coverage could remain below
2.0x on a sustained basis, if its earnings recovery is slower than
we anticipate. It also reflects our view that the company's
debt-to-EBITDA ratio could remain high because deleveraging will be
limited by moderate earnings in 2020. We anticipate that the
likelihood of receiving extraordinary government support is
unlikely to change in the next 24 months.

"We could downgrade Xinjiang Zhongtai if its EBITDA interest
coverage falls below 2.0x on a sustained basis. This could happen
if subdued downstream demand leads to EBITDA that is weaker than we
expect. This can also happen if the company's debt and interest
expense are larger than our expectations due to aggressive capital
outlays.

"We could revise the outlook to stable if Xinjiang Zhongtai's
EBITDA interest coverage remains above 2.0x on a sustained basis.
This could happen if downstream demand picks up and supports a
recovery in the company's margins and EBITDA."

Xinjiang Zhongtai mainly engages in the production, sale, and
trading of chemicals and textile products. Its main products
include PVC, caustic soda, butanediol (BDO), viscose staple fiber,
and yarns. The company is China's largest PVC producer in terms of
capacity and is also a large producer of caustic soda.

Xinjiang Zhongtai is 100% owned by the Xinjiang Uyghur Autonomous
Region SASAC of the government of China.




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

HONG KONG JUNFA: Fitch Affirms B+ LT IDR, Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed Hong Kong JunFa Property Company
Limited's Long-Term Foreign-Currency Issuer Default Ratings at
'B+'. The Outlook is Stable. Fitch has also affirmed Junfa's senior
unsecured rating and the rating on Power Best Global Investments
Limited's outstanding bonds at 'B+' with a Recovery Rating at
'RR4'.

Junfa's leverage, measured by net debt/adjusted inventory, in 2019
was just below 50%, which is somewhat high for a 'B+' rating. Fitch
expects leverage to continue to be around 48% given the lower rate
of land replenishment but higher average cost of land acquisition.

Junfa's rating is supported by its strong market position in Yunnan
province in south-west China, as well as its experience in old-town
redevelopment projects. The concentration of Junfa's land bank in
Kunming, the capital of Yunnan, constrains the rating. However, the
risks are mitigated by the high proportion of land that is located
in areas where the local government is focused on regeneration.

KEY RATING DRIVERS

Strong Position in Yunnan: Junfa has strong brand recognition in
Kunming and Yunnan province and was the top-selling developer in
Kunming from 2009 to 2019. Junfa is experienced in old-town
redevelopment projects in Kunming. These projects take much longer
than other primary development projects, but Junfa has demonstrated
a strong track record in relocation of residents, demolition,
development and phased project launches. It has also improved the
infrastructure and landscape surrounding its projects.

The company had CNY39.6 billion in attributable contracted sales in
2019, with an average selling price (ASP) of CNY11,572 per sq m.
Fitch estimates Junfa's attributable contracted sales to increase
by 9% in 2020, mainly driven by increased GFA sold.

Good Quality Land Bank: Junfa had attributable saleable land bank
gross floor area of 13.39 million sq m at end-2019. Much of Junfa's
land bank is in areas that are the focus of government
redevelopment policies. The company's strong experience in urban
redevelopment gives it a competitive advantage in obtaining such
low-cost projects. Fitch estimates Junfa will be able to maintain
EBITDA margin (excluding capitalised interest) of around 30%.

Recurring Income to Increase: Junfa in 2018 acquired a large-scale
wholesale trade centre in Kunming called Luosiwan International
Trade Centre, which has total leasable floor area of 1.37 million
sq m and has been in operation since 2009. The trade centre
provided Junfa with increased stable rental income in 2019.

The trade centre is an important project for the local government
and is part of its plans to develop the area into a second central
business district in Kunming, which will involve some old-town
redevelopment. In addition, Junfa will seek to increase recurring
income with a number of offices, malls and recreational facilities
that will gradually start operating from 2020 and 2021. Fitch
expects Junfa's recurring EBITDA/gross interest expense (including
the acquisition) to increase to about 0.5x from end-2019 from 0.3x
at end-2018.

High but Manageable Leverage: Junfa paid off part of the debt due
to the Luosiwan acquisition in 2018 and leverage at end-2018
decreased to 48%. Fitch estimates that leverage at end-2019 would
be around 49%. Fitch expects Junfa will slow its land acquisitions
in 2020, but Fitch also expects the average acquisition cost of
land to increase, which will keep leverage slightly below 50%.
Fitch expects Junfa to continue its capex on investment properties,
as it maintains stable contracted sales.

ESG - Financial Transparency and Governance: Junfa is not a listed
company and full financial information is not widely available,
although bondholders of its US dollar notes receive full financial
information. Junfa's board does not have independent directors and
ownership is concentrated on one individual. These factors
constrain the rating.

DERIVATION SUMMARY

Junfa's closest peer is Times China Holdings Limited (BB-/Stable)
as the two companies focus on old-town redevelopment projects.
Junfa's land bank is less geographically diversified than Times
China's, although Junfa's local market position is stronger. Times
China's leverage is lower than that of Junfa, which warrants the
one-notch rating gap between the two companies despite Junfa's
stronger recurring income.

Junfa has similar contracted sales scale to Fantasia Holdings Group
Co., Limited (B+/Stable) although Junfa's leverage is higher.
Junfa's contracted sales scale and leverage are in line with 'B+'
peers, such as Hong Yang Group Company Limited (B+/Stable).

Junfa's sales scale, land bank and recurring EBITDA coverage are
better than those of Modern Land (China) Co., Limited (B/Stable),
although their leverage ratios are similar.

KEY ASSUMPTIONS

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

  - 2019 contracted sales and land bank in line with management
guidance

  - Contracted sales to grow by 5% to 10% from 2020 to 2022 while
contracted ASP remains largely flat

  - Saleable land-bank life between three to four years in
2019-2022

  - Land premium temporarily accounted for 47% of sales receipts in
2019 due to Luosiwan acquisition

  - Construction cash outflow to account for around 38% of sales
receipts in 2019-2022

  - Capex of around CNY0.8 billion per year to expand
investment-property business in 2019-2022

KEY RECOVERY RATING ASSUMPTIONS

  - The recovery analysis assumes that HK Junfa would be liquidated
in a bankruptcy because it is an asset-trading company.

  - Fitch has assumed a 10% administrative claim

  - The liquidation estimate reflects Fitch's view of the value of
balance-sheet assets that can be realised in sale or liquidation
processes conducted during a bankruptcy or insolvency proceeding
and distributed to creditors.

  - Cash balance is adjusted such that only cash in excess of the
higher of accounts payables and three months of contracted sales is
factored in

  - Advance rate of 80% applied to on its adjusted inventory, as HK
Junfa has an EBITDA of around 30%.

  - Property, plant and equipment advance rate at 60%

  - 70% advance rate applied to accounts receivable

  - Advance rate of 100% applied to restricted cash, which mainly
were guarantee deposits for construction and buyers' mortgages for
pre-sold properties

Based on its calculation of adjusted liquidation value after
administrative claims, Fitch estimates the recovery rate for the
offshore senior unsecured debt to be within the 'RR4' recovery
range.

RATING SENSITIVITIES

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

  - Net debt/adjusted inventory at 40% or below for a sustained
period

  - EBITDA margin (excluding capitalised interest) at 30% or above
for a sustained period

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

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

  - EBITDA margin (excluding capitalised interest) below 25% for a
sustained period

  - Recurring EBITDA / interest coverage ratio below 0.4x

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: Junfa had cash and cash equivalents of CNY11.1
billion at end-2019, as well as restricted cash of CNY856 million,
which were guarantee deposits for construction and buyers'
mortgages for pre-sold properties. The restricted and unrestricted
cash are adequate to cover the CNY11.7 billion of maturities due in
the next 12 months.

ESG CONSIDERATIONS

Junfa has ESG Relevance Scores of 4 for Financial Transparency and
Governance Structure as it is not a listed company and full
financial information is not widely available, except to the
holders to its offshore bond. Junfa's ownership is concentrated on
one individual and it does not have independent directors on its
board.

Except for the matters discussed, the highest level of ESG credit
relevance, if present, 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.

HONG KONG: Resurrects Chapter 11-Style Corporate Rescue Bill
------------------------------------------------------------
Enoch Yiu at South China Morning Post reports that Hong Kong plans
to introduce Chapter 11-style provisions in its corporate rescue
laws to shield debt-stricken companies from hostile acts while they
reorganise their finances, revisiting a holdover from colonial days
that failed to pass in various attempts through major financial
crises.

The government intends to hold a new round of consultation in the
coming months, before possibly putting a draft bill to the
Legislative Council after the session in October, the Financial
Services and the Treasury Bureau said in an email reply to South
China Morning Post. A statutory corporate rescue procedure and
insolvent trading provisions are being drafted, it added.

A key part of the proposal may include giving debtors a six-month
moratorium from hostile acts, such as winding-up or liquidation
proceedings, while they work on rehabilitation plans or find white
knights, according to people involved in the discussions, the
report relays.

According to the Post, the move underlines the government's efforts
to prevent a wider implosion in corporate failures after gross
domestic product economy shrank last year for the first time since
the global financial crisis. Anti-government protests and the
coronavirus outbreak have now brought many pillars of the economy
to their knees.

"I have already urged the government to speed up the process of
introducing a proper corporate rescue legislation, as that is
important for Hong Kong as an international financial centre," the
report quotes Johnson Kong, president of the Hong Kong Institute of
Certified Public Accountants, as saying. The law is "very urgently
needed" as the current financial crisis is threatening to push
thousands of companies into liquidation, he added.

The Law Reform Commission mooted the proposal in 1996, before the
onset of Asian financial crisis in 1997, the report recalls. A bill
introduced in 2001 failed to pass, and was later modified through
the Sars outbreak in 2003 and the global financial crisis in 2008,
only to stumble because of opposition from some lawmakers and
unionists seeking to protect workers' rights.

"Given the complexity and technicalities of the bill as well as the
concerns expressed by various stakeholders in previous exercises,
we will organise a fresh round of engagement with stakeholders on
specific areas in the draft bill in the next few months," the
Bureau spokesman said in a written reply to the Post. It intends to
finalise the bill for introduction in the first half of the 2020-21
legislative session, he added.

Under Chapter 11 of the US bankruptcy code, debt-stricken companies
can petition for automatic debt moratorium with global effect. Its
Chapter 15 allows foreign companies to apply for worldwide
recognition of debt workout agreements consented by courts in local
jurisdictions.

After its handover to China from the UK in July 1997, the Hong Kong
government has held consultations with industry players through
2018 on the corporate rescue laws, without making any headway,
according to the Post. India and Singapore took advantage of Hong
Kong's inertia to reform their insolvency law in 2016 and 2017.

The Post notes that Singapore amended its Companies Act in March
2017 by infusing some key features of the US Bankruptcy Code,
giving companies access to independent judicial managers to devise
recovery plans and find rescue financing, among others. The
measures, akin to regimes enacted in the UK and Australia, are
aimed at achieving a higher asset-recovery rate to repay
creditors.

"The proposed corporate rescue bill, if it passes, will increase
the chances for companies in finding their white knights according
to international practice," HKICPA's Kong said.

Without such protection from hostile creditors, companies in Hong
Kong are immediately exposed to winding-up or liquidation threats
from any single creditor, putting their assets at risk of fire
sales, according to Derek Lai Kar-yan, vice-chairman of Deloitte
China, the Post relays.

"The lack of corporate rescue procedures have made it difficult for
liquidators to do their jobs," the Post quotes Lai as saying. "At
presents, we will need to convince all creditors one by one to
request them not to submit any winding-up petition, to give more
time for companies to restructure. It will be beneficial to have
this corporate rescue legislation."

While Hong Kong's corporate bankruptcies are far from alarming by
its historical standard, Asia's third-largest capital market is
missing out on diversifying its services economy by luring more
advisory firms and distressed-debt investors to the city, the
report adds.



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

ALOKA EXPORTS: ICRA Lowers Rating on INR3cr Loan to B+
------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Aloka
Exports, as:

                       Amount
   Facilities        (INR crore)    Ratings
   ----------        -----------    -------
   Long-term Fund-        3.00      [ICRA]B+ (Stable); downgraded
   based Limits–                    from [ICRA]BB- (Stable)
   CC/Overdraft          
                                    
   Short-term Fund-      15.00      [ICRA]A4; reaffirmed
   based Limits         

   Short-term Non-        0.60      [ICRA]A4; reaffirmed
   fund Based Limits     

   Long Term & Short      4.86      [ICRA]B+ (Stable) downgraded
   Term–Unallocated                 from [ICRA]BB- (Stable);
   Limited                          [ICRA]A4 reaffirmed

Rationale

The downward revision in the rating reflects the weakening of Aloka
Exports' financial risk profile, as reflected by its shrinking
scale of operations and the worsening cost structure over the last
two years. The operating income declined to INR32.97 crore in
FY2019 from INR48.88 crore in FY2018.

Further, the under-absorption of fixed costs led to an increase in
the operating loss to INR1.51 crore in FY2019 from INR0.74 crore in
FY2018. The ratings also remain constrained by the working
capital-intensive nature of business owing to slow receivables and
high inventory levels. This, coupled with the operating losses, led
to a poor liquidity position, which is somewhat offset by the
credit extended by the suppliers and the infusion of unsecured
loans by the partners.

Further, ICRA takes note of the vulnerability of the profitability
to fluctuations in raw material prices due to high inventory
holding as well as the currency fluctuation risks owing to the
export-oriented business. ICRA also considers the vulnerability of
the profitability to Government incentives as any adverse change
shall affect the firm's margins because of limited margin
flexibility, given the highly competitive international and
domestic markets. ICRA also notes the high customer concentration
and counterparty risks as the top 10 customers accounted for almost
90-95% of the total revenues during the last two years.

Further, due to its partnership status, Aloka remains exposed to
the risk of capital withdrawals, which will have a negative impact
on its net worth.

The ratings, however, continue to favourably factor in the
extensive experience of the partners in the textile industry and
the limited debt levels. This keeps the firm's capital structure at
a comfortable level though the net worth has eroded considerably
over the past few years.

ICRA expects a gradual turnaround in the operations, backed by
several cost-saving measures taken by the firm to control the fixed
costs and restrict the operating losses.

Key rating drivers and their description

Credit strengths

Extensive experience of partners in textile industry - Incorporated
in 1980, Aloka is promoted by the Agrawal family, which has been in
the garment manufacturing business since 1968 with the
incorporation of Silk Asia, a ladies' garments manufacturer and a
sister concern of Aloka. The key promoters and shareholders, Mr.
Chandra Agrawal and Mr. Alok Agrawal, have an experience of around
five decades in the textile industry.

Comfortable capital structure at present - The firm's capital
structure remains comfortable with a gearing of 0.58 times as on
March 31, 2019 and 0.89 times as on December 31, 2019, due to
limited dependency on external borrowings to fund operations.
However, the net worth has eroded considerably over the last few
years. Further, around 50% of the total debt consists of  unsecured
loans from the promoters, which provides comfort to the capital
structure.

Credit challenges

Shrinking scale and worsening cost structure – The firm's
operating income (OI) declined sharply by 32.55% to INR32.97 crore
in FY2019 from INR48.88 crore in FY2018. The operations
deteriorated further in the current fiscal as represented by the
weak sales of INR22.82 crore in 9M FY2020 compared to INR28.92
crore in 9M FY2019. The decline was primarily due to the weak order
inflow from the US and European markets, which drive the major
share of the firm's operating revenues. Further, the
under-absorption of fixed costs led to an increase in the operating
loss to INR1.51 crore in FY2019 from INR0.74 crore in FY2018, with
further losses of up to INR3.22 crore in the current year. The
operating losses, in turn, have led to weak coverage indicators for
the firm.

High working capital intensity due to high inventory holding period
- Aloka's working capital intensity remains high with NWC/OI of
40.22% as on March 31, 2019 compared to 30.28% as on March 31,
2018. This is due to the high inventory holding period and slow
receivables.

Profitability vulnerable to fluctuations in raw material prices and
forex movements; adverse changes in fiscal incentives and stiff
competition restrict margin flexibility - The firm's profitability
remains exposed to adverse fluctuations in raw material prices and
labour costs for fabric processing activities. Given the increased
competition from domestic players as well as international players
in China, Bangladesh and Turkey, the firm's ability to pass on an
increase in costs to its customers remains limited, as reflected by
the decline in the profitability margins over the last five
fiscals. Further, as Aloka derives its revenues mainly from the
export markets, it remains exposed to fluctuations in foreign
exchange rates as there is no formal hedging policy. The firm
receives a number of fiscal benefits such as incentives under the
Duty Drawback Scheme and the Rebate of State and Central Taxes and
Levies (RoSCTL) scheme. However, any adverse change in the fiscal
incentives will affect the firm's margins owing to its limited
margin flexibility, given the highly competitive international and
domestic markets.

High customer and geographical concentration risk - The customer
concentration risk remains high with the top 10 customers
accounting for ~90-95% of the total sales in the last three years.
The US and Europe are the key geographies contributing to the
firm's revenues. Weak demand for products from its customer base in
international markets limits Aloka's scale of operations. Further,
the high customer concentration increases counterparty risks.

Risks inherent in partnership nature of business - Aloka remains
vulnerable to the risks inherent in the partnership nature of the
firm such as the risks of capital withdrawal as evident from the
past. This affects the firm's capital structure.

Liquidity position: Poor

The operating losses as well as the decline in the scale of
operations led to a negative cash flow from operations. The
operating losses, in turn, led to weak coverage indicators and the
financial obligations are primarily served through the partners'
contribution. This, coupled with the limited free cash of INR0.62
crore as on March 31, 2019 and INR0.49 crore as on December 31,
2019, indicates a poor liquidity position, though some buffer is
provided by the sanctioned limit, given the moderate level of
utilisation. However, given the operating losses and the continued
decline in Aloka's scale of operations, the ability of the partners
to infuse capital in a timely manner remains critical for the
timely servicing of the firm's debt obligations.

Rating sensitivities

Positive triggers - The ratings could be upgraded on a significant
scale-up in the operations with a sustained improvement in the
profitability and coverage indicators along with an improvement in
the liquidity position.

Negative triggers - The ratings could be downgraded on a further
decline in the scale of operations and continued losses at the
operating level.

Aloka Exports was incorporated as a proprietary concern in 1980 and
was converted into a partnership firm on October 23, 1987. The firm
is currently positioned as a mid-premium manufacturer and exporter
of customised fashion accessories such as scarves, bandanas, wraps
and semi-garments such as ladies' kurtas, shrugs and ruanas. These
products are manufactured for prominent mass fashion houses based
in Europe, the US and Japan, and are sold under individual client
brands. The firm has sales and design offices in Mumbai, Delhi and
New York.

In FY2019, Aloka reported a net loss of INR4.26 crore on an
operating income (OI) of INR32.97 crore compared to a net loss of
INR3.46 crore on an OI of INR48.88 crore in FY2018. The firm
reported a net loss of INR3.00 crore on an OI of INR22.82 crore in
9M FY2020.

BHAGAWATI ENTERPRISES: ICRA Withdraws B+ Rating on INR5cr Loan
--------------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of
Bhagawati Enterprises, as:

                        Amount
   Facilities         (INR crore)    Ratings
   ----------         -----------    -------
   Cash Credit           (5.00)      [ICRA]B+(Stable); withdrawn

   Letter of Credit      14.00       [ICRA]A4; withdrawn

   External Commercial   (8.00)      [ICRA]A4; withdrawn
   Borrowing/Buyers
   Credit                

   Inland Letter
   of Credit            (16.00)      [ICRA]A4; withdrawn

   Foreign Currency
   Loan                  (3.00)      [ICRA]A4; withdrawn

   Unallocated Limit      6.00       [ICRA]B+(Stable)/[ICRA]A4;
                                     Withdrawn

Rationale

The ratings of [ICRA]B+ and [ICRA]A4 has been withdrawn in
accordance with ICRA's policy on withdrawal and suspension and at
the request of the company and also based on no objection
certificate provided by the banker. ICRA does not have requisite
information to suggest any change in the credit risk since the time
the rating was last reviewed.

Key rating drivers and their description

Key Rating drivers has not been captured as the rated instrument(s)
are being withdrawn.

Established in 1987 as a partnership firm, BE is involved in the
import of round log and cut-to-size Burmese and South African teak
timber as well as hardwood. It caters to the domestic market, with
~70% of its revenues being generated from southern India. The firm
mainly deals in teak wood (which accounts for ~90-95% of the total
sales) and hard wood (~5-10%). The timber traded is used for door
frames, furniture, interiors, etc. Moreover, BE imports Burmese and
African timber routed mainly through Dubai, Singapore and Hong
Kong. The timber is primarily imported through the sea ports of
Mumbai, Tuticorin, Mangalore and Kandla. BE has timber yards at all
these ports to facilitate the warehousing and supply of timber
logs. Its head office is located on Reay Road, Mumbai.

Shree Shankar Vijay Saw Mill (SSVSM) ([ICRA]B+(Stable)/[ICRA]A4
withdrawn in February 2020) is an associate concern of BE, who is
also involved in the same business sector.


CONTROLS AND SCHEMATICS: ICRA Reaffirms B- Rating on INR4cr Loan
----------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Controls
and Schematics Private Limited (CSPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term Fund        4.00        [ICRA]B-(Stable); Reaffirmed
   Based-Cash
   Credit              

   Long-term/Short-     12.00        [ICRA]B-(Stable)/[ICRA]A4;
   Term Non-fund                     Reaffirmed
   Based Limit        
                                   
   Long-term/Short-      1.00        [ICRA]B-(Stable)/[ICRA]A4;
   Term Unallocated                  Reaffirmed
   Limit               
                                   
Rationale

The ratings reaffirmation takes into account CSPL's weak financial
profile as reflected by the operating losses incurred in H1FY2020,
weak debt coverage indicators and tight liquidity position of the
company arising out of stretched receivables and high WIP
inventory. The ratings remain constrained by the company's modest
scale of operations and high customer concentration risk with 70%
of the revenues being derived from a single customer. Weak order
book position further restricts revenue visibility.

The ratings, however, favorably factor in the extensive experience
of the company's promoters in manufacturing control equipment, its
reputed client profile along with the pre-qualification status
obtained from various public-sector undertakings (PSUs) and private
companies.

ICRA believes CSPL will continue to benefit from the extensive
experience of its promoters in the power industry.

Key rating drivers and their description

Credit strengths

Extensive experience of the promoters in the manufacturing of
control equipment – CSPL's operations are overseen by its
Managing Director, Mr. P. P. Reddy, who has been in the power
industry for the last 40 years. He has worked on various turnkey
orders including design, engineering, manufacturing, supply,
erection and commissioning of switchgears.

Reputed client profile; pre-qualification status obtained from PSUs
and private companies – The company has a long track record in
supplying low tension (LT) switchgear products to various state
electricity boards, oil refining companies, thermal power stations,
and leading engineering, procurement and construction (EPC)
contractors amongst others. This has helped CSPL build up a strong
pre-qualification status over the last four decades. Bharat Heavy
Electricals Ltd. (BHEL) is the company's largest customer,
accounting for 70% of the total revenues in FY2019 (79% in FY2018)
and 94% in H1 FY2020.

Credit challenges

Weak financial profile characterised by modest scale, operating
losses and muted debt coverage indicators – The company's
operating revenues grew by 85% to INR15.51 crore in FY2019 from
INR8.38 crore in FY2018 supported by moderate order book position
and smooth execution of the projects. However, it achieved a
revenue of INR6.36 crore during H1FY2020 on account of cautious
slowdown in execution of orders of those clients, where the company
was facing bills realisation issues.  CSPL earned operating profit
of INR0.63 crore in FY2019 (P.Y. net loss of INR0.66 crore).
However, it reported an operating loss of INR1.02 crore on a
turnover of INR6.36 crore in H1 FY2020 as per provisional figures
Consequently, coverage indicators also deteriorated a in H1
FY2020).

High working capital intensity of operations - CSPL's working
capital intensity increased to ~60% as on September 30, 2019 from
49% as on March 31, 2019 due to stretched receivables position. The
outstanding receivables increased due to stretched payments from
BHEL (up to 120-180 days) and BGR Energy Systems (up to 90-120
days).

High customer concentration - CSPL supplies products to various
state electricity boards, oil refining companies, thermal power
stations and leading EPC contractors. However, it has focused more
on clients in the power sector. Overall sales were concentrated
among the top two clients, accounting for ~80% of total sales over
the years. The customer concentration risk remains high for the
company with the top five customers accounting for over 84% of the
total sales in FY2019 and 99% in H1 FY2020, with BHEL alone
contributing ~70% to the total sales in FY2019.

Liquidity position: Poor

The average fund-based working capital utilisation for past 15
months was 78% due to stretched receivables and higher inventory.
The company also had negative net cash accruals of INR0.06 crore in
H1 FY2020 leading to poor liquidity position. However, no capital
expenditure plans in medium term and buffer from INR0.79 crore of
cash and liquid investments in H1 FY2020 provides some comfort.

Rating sensitivities

Positive triggers – ICRA could upgrade CSPL's rating if the
company demonstrates substantial growth in revenues, profitability
and better working capital management on a sustained basis.

Negative triggers – Negative pressure on CSPL's rating could
arise if company incurs continued losses and there is further
weakening of its liquidity profile.

Controls and Schematics Private Limited, incorporated in 1971 as a
limited company, was converted to a private limited company in May
2016. The company undertakes total turnkey orders of LT switchgear
projects comprising the supply of equipment like motor control
centres (MCCs), power control centres (PCCs), bus ducts,
distribution boards and push button stations for process industries
and their erection and commissioning. The company maintains a focus
on customers in the power, refinery and petrochemical sectors. At
present, it has a manufacturing facility in Hyderabad.

CSPL reported a profit after tax (PAT) of INR0.01 crore on an
operating income (OI) of INR15.51 crore in FY2019 compared to a net
loss of INR1.18 crore on an OI of INR8.38 crore in FY2018. As per
the provisional numbers, the company reported a net loss of INR0.13
crore on an OI of INR6.36 crore in H1 FY2020.

CYBERWALK TECH: ICRA Reaffirms 'D' Rating on INR68.84cr Loan
------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Cyberwalk
Tech Park Private Limited (CTPPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long Term–Fund
   Based–Term Loan     68.84       [ICRA]D; Reaffirmed

Rationale

The rating continues to factor in the delays in debt servicing by
Cyberwalk Tech Park Private Limited (CTPPL), given the inadequate
cash flow generation in its single ongoing commercial project.
Given the sluggishness in the demand of commercial space, CTPPL has
been exposed to considerable market risk, which has resulted in
slower-than-expected sales and leasing.

Going forward, the timely servicing of debt repayment commitments
and CTPPL's ability to lease/sell the remaining area at desired
prices and maintain its collection efficiency will remain the key
rating sensitivities. ICRA also notes the extensive experience of
the company's promoters in the real estate sector.

Key rating drivers and their description

Credit strength

Extensive experience of promoters in real estate and other
businesses - The promoters of the company have a well-diversified
background. The Aarone Group (Aarone Promoters Pvt. Ltd), managed
by Mr. Yog Raj Arora and his family members, is a Delhibased
real-estate development Group with a track record of over 28 years
in developing residential and commercial projects. Other promoters
of the Group also have significant experience in their own fields.

Credit challenges

Delays in debt servicing because of inadequate cash flow generation
in project due to slowdown in real estate - CTPPL developed the
first phase of its real estate project named Cyberwalk in FY2013,
for which it availed a total debt of INR113 crore.

Due to subdued sales, the cash flows generated by the company were
inadequate, leading to delay in debt servicing. Despite the
restructuring of debt in August 2016 and ballooning nature of
repayments, it has been making repayments with a lag. The promoters
have been funding the cash flow gaps.

Muted sales velocity with no sales in last three years - The
company has sold around 55% of its saleable area till February
2017. However, there were no sales in the last three years owing to
the weak market conditions and absence of proper connectivity,
limited residential development and levy of toll closer to the
site.

Liquidity position: Poor
CTPPL's liquidity is poor as no sales were made in the last three
fiscals. This is characterised by the lag in repayments being made.


Rating sensitivities
Positive trigger: ICRA could upgrade CTPPL's ratings if the company
repays its debt obligations in a timely manner on a sustained
basis.

CTPPL (erstwhile Sofed Retailer Private Limited) was promoted as a
special purpose vehicle to set up an IT park at Manesar, Gurgaon.
At present, Aarone Promoters Private Limited (owned by the Aarone
Group) is the largest shareholder with a 70.58% stake, followed by
two other promoter groups from Chandigarh with a 14.71% stake each.
The IT park is titled Cyberwalk and is being developed in two
phases, with a total leasable/saleable area of 11.28 lakh sq ft.
While 8.8 lakh sq ft has been developed in phase one, the company
is yet to commence work on phase two. In FY2019, the company
reported a net loss of INR3.3 crore on operating income (OI) of
INR4.4 crore compared with a net loss of INR3.1 crore on an OI of
INR1.1 crore in the previous year.

DIGHI PORT: NCLT Approves Adani Ports' INR650 Crore Bid
-------------------------------------------------------
BloombergQuint reports that the National Company Law Tribunal
(NCLT) has approved INR650 crore resolution plan submitted by Adani
Ports & Special Economic Zone Ltd. for debt-ridden Dighi Port,
located south of Mumbai.

BloombergQuint says the resolution came with a huge 79.2 percent
haircut to the lenders, as they had made a claim of INR3,098 crore.
According to BloombergQuint, the successful bid will give Adani
Ports access to Maharashtra, where it had no presence, even though
the group straddles the entire coastline of the country with 11
operational ports and an under-construction transhipment terminal
at Vizhinjam in southern Kerala.

It can be noted that Dighi Port was the first port to go for
bankruptcy in April 2018. The 16-member committee of creditors led
by Bank of India, which collectively have 99.68 percent voting
shares, has approved APSEZ's revised offer of an upfront cash
payout of INR650 crore, the NCLT said in an order dated March 5,
BloombergQuint relates.

Dighi Port, promoted by industrialist Vijay Kalantri owes INR3,098
crore to the lenders, BloombergQuint discloses. He had made an
offer of INR720 crore, but was rejected by the lenders. Bids by
JNPT, APSEZ and Veritas Consortium were considered by the CoC
initially but finally went with APSEZ, as the flagship company of
the Adani Group, came up with the highest bid, the order said.

APSEZ is the largest port operator in the private sector with 11
facilities across the west and east coasts and operates the
country's largest container terminal at Kandla in Gujarat,
BloombergQuint discloses. In October 2019, the NCLAT had asked the
NCLT Mumbai to decide on APSEZ's bid for Dighi Port.

BloombergQuint says the NCLT had reserved its order over an
application moved by the resolution professional of Dighi Port for
approval of the INR650 crore bid by APSEZ. The resolution process
was delayed as promoter Kalandtri made a counter-offer with a
higher upfront payment of INR720 crore. It can be noted the amended
bankruptcy codes debars defaulters from bidding for an asset
initially promoted by them.

The lenders had voted in favor of APSEZ and rejected the promoters'
offer to settle the dues under Section 12A of the bankruptcy code,
recalls BloombergQuint. In November 2018, government-owned
Jawaharlal Nehru Port Trust, Adani Ports and a consortium of
Veritas India and UV Asset Reconstruction Company had submitted
bids to acquire Dighi Port. But in July 2019, JNPT withdrew its bid
after the NCLT suggested modifications in its offer, BloombergQuint
notes.

                         About Dighi Port

Dighi Port Limited (DPL) has been promoted by Balaji Infra Projects
Ltd (BIPL, holding 51.01%), Infrastructure Leasing & Financial
Services Ltd (IL&FS, holding 39.37%) and Tara India Fund III LLC
(5.46%) as a Special Purpose Vehicle (SPV) for the development of
port at Dighi, Maharashtra. As per the Concession Agreement (CA)
dated March 17, 2002 with Maharashtra Maritime Board (MMB), DPL
would develop, design, finance, construct, operate and maintain the
port on Build, Own, Operate, Share and Transfer (BOOST) basis for a
period of 50 years. The port is located in the Rajpuri Creek, in
Raigad District in the State of Maharashtra on the West Coast of
India.

Dighi Port went into insolvency proceedings in 2018 after the
Mumbai bench of the NCLT allowed a recovery plea by DBM Geotechnics
and Constructions Pvt Ltd, one of its operational creditors, for
nonpayment of dues, according to BloombergQuint.

ESWARI GREEN: Ind-Ra Maintains 'B' Loan Rating in Non-Cooperating
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has maintained Eswari Green
Energy LLP's term loan in 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 continue to appear as 'IND B (ISSUER NOT
COOPERATING)' on the agency's website.

The instrument-wise rating action is:

-- INR200 mil. Term loan due on FY24 maintained in non-
     cooperating category with IND B (ISSUER NOT COOPERATING)
     rating.

Note: ISSUER NOT COOPERATING: The ratings were last reviewed on
February 9, 2018. Ind-Ra is unable to provide an update as the
agency does not have adequate information to review the rating.

COMPANY PROFILE

Eswari Green Energy, a limited liability partnership firm floated
by Eswari Knitting Works, operates a wind project at the
Basavanbagawadi village in Karnataka, with two wind turbine
generators with a capacity of 2MW each.

The partners of Eswari Green Energy are R Balasubramaniam, Baskaran
and B Sundarambhal is the partners.

FIBRIL TEX: ICRA Assigns B(Stable) Rating to INR25cr Term Loan
--------------------------------------------------------------
ICRA has assigned rating to the bank facilities of Fibril Tex Pvt.
Ltd. (FTPL), as:

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Fund Based–            25.00      [ICRA]B(Stable); Assigned
   Term Loans             

Rationale

The assigned rating takes into account the relatively low scale of
operations of FTPL owing to its nascent stage of operations, which
has also resulted in stretched financial risk profile. Furthermore,
the company's profits and cash accruals have remained limited, as
indicated by operating income (OI) of INR1.5 crore in FY2019. The
rating is also constrained by FTPL's stretched working capital
cycle and weak liquidity profile.

The ratings, however, continue to factor in the promoters'
experience of more than a decade in the textiles industry through
involvement in silk manufacturing. The ratings also favourably
factor in the positive business prospects of personal hygiene
products market as improvement in people's living standards have
raised the demand for personal hygiene-related products.

The Stable outlook on the [ICRA]B rating reflects ICRA's opinion
that FTPL will continue to benefit from its experienced management
and positive business prospects.

Key rating drivers and their description

Credit strengths

Extensive experience of promoters in textile industry: The
promoters of the company have been engaged in textile manufacturing
industry for more than a decade, given their involvement in silk
manufacturing through their other entity.

Positive prospects for personal hygiene products market: The
continuous improvement of literacy rates, the enhancement of
consumers' safety and sanitary consciousness, and extended
lifespan, plus improvements in conditions in rural areas, have all
created opportunities for expansion of the personal hygiene
market.

Credit challenges

Nascent stage of business and small scale of operations: The
operations of FTPL begun in FY2019 and thus its scale of operations
is quite low. The company recorded OI of INR1.5 crore in FY2019.
Owing to these, its financial risk profile is also stretched with
low profits and limited cash accruals, helping to build FTPL's net
worth.

Weak liquidity profile and stretched working capital cycle: As its
operations started a few years back, FTPL's liquidity profile is
stretched, characterised by high working intensity. The NWC/OI
remained at ~200% in FY2019.

Liquidity position: Stretched

The liquidity position is stretched due to elongated working
capital cycle and absence of any fund-based working capital
facility. Moreover, the cash balances remained limited at INR0.8
crore as on March 31, 2019.

Rating sensitivities

Positive triggers: FTPL's rating could be upgraded if it able to
improve its scale of operations and financial risk profile.
Specific credit metrics that could lead to an upgrade is TD/OPBITDA
less than 5 times on a sustained basis.

Negative triggers: Any further stretch on working capital cycle
exerting pressure on liquidity could lead to downgrade in FTPL's
rating.

Fibril Tex Private Limited (FTPL) was incorporated in 2014 and is
promoted by two directors namely Mr. Ishan Sharma and Mrs. Manju
Sharma with the main objective of manufacturing of absorbent sap
sheet. The company, based out of Chandigarh, manufactures products
such as diapers, sanitary pads, absorbent sheet, etc. which are
primarily used in the personal hygiene industry.

GINNI HOLDINGS: ICRA Maintains 'D' Rating in Not Cooperating
------------------------------------------------------------
ICRA said the ratings for the INR25.00 crore bank facilities of
Ginni Holdings continue to remain under Issuer Not Cooperating
category. The long-term and short-term ratings are denoted as
[ICRA]D/[ICRA]D ISSUER NOT COOPERATING.

                     Amount
   Facilities      (INR crore)   Ratings
   ----------      -----------   -------
   Long Term-Fund     22.00      [ICRA]D; ISSUER NOT COOPERATING;
   Based/CC                      Rating Continues to remain
                                 under the ‘Issuer Not
                                 Cooperating' category

   Short Term-Non      1.00      [ICRA]D; ISSUER NOT COOPERATING;
   Fund Based                    Rating Continues to remain
                                 under the ‘Issuer Not
                                 Cooperating' category

   Long Term/Short
   Term-Unallocated    2.00      [ICRA]D/[ICRA]D; ISSUER NOT
                                 COOPERATING; Rating continues
                                 to remain in 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.

Ginni Holdings is a manufacturer, wholesaler and trader of gold,
diamonds and silver ornaments/jewellery. Ginni Holdings is a
partnership firm established in the year 2006 and promoted by Mr.
Pradeep Kumar Goel and his family. Ginni Holdings's customers
primarily consist of wholesalers and retailers based in New Delhi
area.

GLITTER METALS: ICRA Assigns B+/A4 Rating to INR10cr Loan
---------------------------------------------------------
ICRA has assigned rating to the bank facilities of Glitter Metals
Pvt. Ltd. (GMPL), as:

                          Amount
   Facilities          (INR crore)    Ratings
   ----------          -----------    -------
   Unallocated Limits      10.00      [ICRA]B+ (Stable)/[ICRA]A4;
                                      Assigned

Rationale

The assigned rating takes into account the modest net worth base of
GMPL, which along with high creditors funding has led to high total
outside liabilities (TOL) to tangible net worth (TNW) ratio.
Furthermore, the rating also considers the thin profitability
margins, cash accruals and vulnerability of profitability to
adverse fluctuations in prices of commoditised copper and steel as
well as foreign exchange rates. However, the company has a forex
hedging mechanism in place and its purchases are order backed,
which provides some comfort. ICRA also notes the high customer and
supplier concentration risk with a sole entity accounting for most
sales and purchases, which intensifies the counter-party credit
risk.

The rating, however, favourably factors in the extensive experience
of GMPL's promoters with more than two decades of experience in the
metals trading and manufacturing industry. The rating also
considers the company's accelerated growth in operating scale
despite its nascent stage of operations and revenue prospects from
favourable Government initiatives towards rural electrification.

Key rating drivers and their description

Credit strengths

Extensive experience of promoters in the non-ferrous metals trading
and manufacturing industry - GMPL's operations are managed by Mr.
Nilesh Bardiya and Mr. Ashish Bedmutha, who have a vast experience
of more than two decades in the metals trading and manufacturing
industry. This has helped GMPL in its initial years of operations.

Accelerated growth in scale despite being in nascent stage of
operations; Government initiatives for electrification provides
revenue prospects - GMPL began operations from October 2016.
Despite its nascent stage of operations, the company's operating
income (OI) has increased substantially at a compounded annual
growth rate (CAGR) of 87.45% to INR248.53 crore in FY2019 from
INR44.19 crore in FY2017, driven by increase in size of orders from
existing customers and new customer acquisition. Further, the
Government's initiatives for rural electrification under the Din
Dayal Upadhya Gram Jyoti Yojana (DDUGJY) and Integrated Power
Development Scheme (IPDS) provides revenue prospects for GMPL.

Credit challenges

High supplier and customer concentration intensifies counter-party
credit risk - GMPL's customer base consists mostly of wire
manufacturers, panel building and switch gear companies, who cater
to the electrical infrastructure, auto and telecom industries. The
business operations of GMPL are highly dependent on a weak
counter-party, which generated ~76% of its total sales and
purchases in FY2019. Such high reliance on a single counter-party
intensifies the concentration risks. Going forward, diversifying
the customer as well as supplier base will be a key monitorable
from a credit perspective.

Thin profitability margins due to significant revenue generated
from trading activities - The company's financial profile is
characterised by thin profitability as reflected from modest
operating margins at 0.37% in FY2018 and 0.32% in FY2019, and
subdued net profit margins (NPM) at 0.10% in FY2018 and 0.28% in
FY2019. With trading activities generating ~63% of revenues in
FY2019, the profitability has remained thin.

Profitability susceptible to fluctuations in copper price and
foreign exchange rates; however, hedging policy in place - Since
oxygen free copper is the primary raw material in manufacturing
copper products, the company's profitability remains vulnerable to
variations in copper prices. Further, since the company is also
involved in trading steel products, fluctuations in steel prices
may also affect its profitability. However, most of the company's
purchases are order backed and its inventory holding period remains
low due to a short manufacturing cycle, which mitigates the risk to
an extent. Moreover, while GMPL derives 9.54% of its revenues from
exports, it procures its raw materials entirely from domestic
markets which exposes its profitability to fluctuations in foreign
exchange rates.

High total outside liabilities to net worth ratio emanating from
reliance on creditors funding and a modest net worth base - GMPL
has a modest net worth base of INR1.32 crore as on March 31, 2019.
Owing to low tangible net worth and high reliance on creditors,
TOL/TNW stood high at 21.23 times as on March 31, 2019.

Sizeable investments for unrelated diversification has led to
strain on liquidity - The company has made sizeable investments as
on March 31, 2019, which has led to strain on its liquidity profile
given the minimal cash flow generation. The investments would be
utilised for unrelated diversification towards land development of
residential real estate project.

Change in export incentives to have a negative impact on revenue
and profitability - The company receives export subsidy of 1.3% for
copper products and 1.6% for steel products under the Merchandise
Exports from India (MEIS) scheme. GMPL also receives duty drawback
incentives of 2% for exports. With such incentives accounting for
~20% of the operating profits, any adverse change in the same will
have a negative impact on revenue and profitability.

Liquidity position: Poor

GMPL's liquidity position is poor given the thin profitability
levels and investments in group companies. The company did not have
any term loans outstanding as on March 31, 2019. However, GMPL had
availed INR0.45 crore of business loan in May 2019, which gives
rise to annual repayment liability of INR0.27 crore over the next
18 months.

GMPL reported a cash balance of INR1.15 crore as on March 31, 2019
out of which INR0.67 crore was unencumbered. The company's fund
flow from operations (FFO) remained modest at less than INR0.50
crore in FY2018 and FY2019. The company has a planned capex, which
will likely keep the free cash flows under pressure in FY2021.

Rating sensitivities

Positive triggers - The ratings may be upgraded if the company is
able to increase its profitability margins and strengthens its
tangible net worth leading to improved TOL/TNW ratio on a sustained
basis.

Negative triggers - The ratings may be downgraded if profitability
levels deteriorate further, if there is a stretch in working
capital cycle and additional loans and advances are made to group
companies, causing strain on liquidity.

Incorporated in 2016, Glitter Metals Pvt Ltd (GMPL) is engaged in
trading, manufacturing and sale of copper wire rods, busbars and
other copper products and components as well as ferrous and
non-ferrous metals. The company started its trading operations from
October 2016, while manufacturing began from its facility at
Nardana MIDC in Dhule district of Maharashtra in January 2017. The
registered office of the company is in Nashik, Maharashtra.

GMPL registered a net profit of INR0.70 crore on an OI of INR248.53
crore in FY2019, against a net profit of INR0.18 crore on an OI of
INR171.08 crore in FY2018.


GOEL EXIM: ICRA Maintains 'D' Rating in Not Cooperating
-------------------------------------------------------
ICRA said the ratings for the INR50.00 crore bank facilities of
Goel Exim India Private Limited continue to remain under Issuer Not
Cooperating category. The long-term rating are denoted as [ICRA]D
ISSUER NOT COOPERATING.

                    Amount
   Facilities     (INR crore)    Ratings
   ----------     -----------    -------
   Long Term-Fund     50.00      [ICRA]D; ISSUER NOT COOPERATING;
   Based/CC                      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.

GEIPL is a manufacturer, wholesaler and trader of gold, diamonds
and silver ornaments/jewellery. The company was incorporated in the
year 2004. The customers of GEIPL are primarily wholesalers and
retailers based in New Delhi area. The company is part of the Delhi
Based Group engaged in the manufacturing, wholesale and retail
sales of gold and diamond. GEIPL had acquired two partnership
firms, namely, Shree Ganpati Impex and Bhavya Gold with effect from
March 15, 2010. The partners of both the firms are shareholders of
the company.

JAGANNATH RICE: Ind-Ra Affirms 'BB' Issuer Rating, Outlook Stable
-----------------------------------------------------------------
India Ratings and Research (Ind-Ra) has affirmed Jagannath Rice
Mill's (JRM) Long-Term Issuer Rating at 'IND BB'. The Outlook is
Stable.

The instrument-wise rating actions are:

-- INR150 mil. (increased from INR 125.5 mil.) Fund-based working

     capital limit affirmed with IND BB/Stable rating; and

-- INR40 mil. Proposed fund-based working capital limit* assigned

     with Provisional IND BB/Stable rating.

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

KEY RATING DRIVERS

The affirmation reflects JRM's continued medium scale operations.
The revenue improved to INR1,223.75 million (FY18: INR1,014.13
million) due to an increase in demand from local customers after
cyclone Fani. Although the company shut operations during the
cyclone, it resumed milling sooner than expected and catered to the
high demand. The company reported revenue of INR991 million in
9MFY20.

The rating factor in JRM's average EBITDA margins, which expanded
to 3.4% in FY19 (FY18: 2.9%) owing to lower-priced stocked
inventory. Ind-Ra expects the margins to sustain over FY20 due to
better realizations, resulting from the stocking of inventory at
lower prices. The company's return on capital employed stood at
14.8% in FY19 (FY18: 12.9%).  

The ratings also take into consideration JRM's weak credit metrics.
The interest coverage ratio (operating EBITDA/gross interest
expense) marginally deteriorated to 1.5x in FY19 (FY18: 1.6x) due
to an increase in the total cost of borrowings. The net leverage
(net debt/operating EBITDA), however, improved to 4.0x in FY19
(FY18: 5.5x) due to improvement in absolute EBITDA. Ind-Ra expects
the company's overall debt to increase as the company has proposed
to take additional fund-based working capital by the end- FY20 of
INR40 million to meet the increased local demand  market and to
fully utilize the total installed capacity, thereby exerting stress
on credit metrics in FY20

Liquidity Indicator - Poor: The maximum average utilization of
fund-based facilities was 97.5% during the 12-months ended in
December 2019. The cash flow from operations improved but continued
to be negative at INR19.31 million in FY19 (FY18: negative INR28.60
million) due to increased utilization of working capital. The free
cash flow, too, was negative at INR27.40 million in FY19 (FY18:
negative INR40.16 million). The cash and cash equivalent stood at
INR5.52 million at end-FY19 (FY18: INR5.46 million).

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

The ratings, however, continue to be supported by JRM's promoters'
experience of more than three decades in the flour milling
industry.

RATING SENSITIVITIES

Negative: Deterioration in the scale of operations, along with
deterioration in the credit metrics with interest coverage reducing
below 1.5x, or deterioration in the liquidity profile will be
negative for the ratings.

Positive: Improvement in the scale of operations, along with
improvement in credit metrics with interest coverage rising above
2.25x while maintaining the liquidity profile, will be positive for
the ratings.

COMPANY PROFILE

JRM is one of the oldest roller flour mills in Bhubaneswar, Odisha.
Founded in 1972, it operates as a partnership firm and sells its
products under the brand Rishta Foods, which is a part of the JRG
Group.

JET AIRWAYS: Gets No Bid; Most Likely to be Liquidated
------------------------------------------------------
Financial Express reports that Jet Airways is unlikely to take off
again since lenders to the beleaguered airline have, so far, not
received any proposals to revive the carrier. FE says the deadline
for submitting bids expired on March 9 and the committee of
creditors met on March 12 to take stock of the situation. Last
month, the lenders had called for fresh expressions of interest
(EoI) after a Russian government-backed entity, Far East
Development Fund, showed early interest in the airline at the
eleventh hour.

While at least two other parties were understood to be interested,
no formal plans were received till March 9, sources told FE. "No
bids were received till the deadline. We will have to see what the
CoC does now," one person aware of the matter said.

In the absence of bidders, lenders may have to consider
liquidation, although the value of the airline's assets have eroded
significantly, another source said, FE relays. Meanwhile, creditors
have filed claims worth over INR35,200 crore against the airline.
"I fear we are very near the end of the road for Jet Airways -- the
proverbial 'chicken or egg' is what killed the airline," Vishesh C
Chandiok, CEO, Grant Thornton India, the firm overseeing the
airline's resolution, wrote on a micro-blogging website last week,
FE relays.

The CoC has so far called for EoIs thrice under the CIRP. Many
entities, including the Hinduja Group and Colombian Synergy Group,
were interested in the airline at some point, but did not take
things forward. The Synergy Group, after engaging with the process
for around four months, got cold feet when lenders could not
guarantee the return of Jet's slots and flying rights in crucial
international locations. In the absence of promising bids, lenders
even initiated the process of monetising some of Jet's assets in
Amsterdam in January.

                         About Jet Airways

Based in Mumbai, India, Jet Airways (India) Limited was one of
India's top airlines founded by Naresh Goyal.  It provided
passenger and cargo air transportation services as well aircraft
leasing services. It operated flights to 66 destinations in India
and international countries.  

On June 20, 2019, the National Company Law Tribunal (NCLT), Mumbai
Bench, accepted an insolvency petition against Jet Airways filed by
its creditors as they attempt to recover some of their dues.

Ashish Chhawchharia of Grant Thornton India has been named as the
resolution professional in the case.  Law firm Cyril Amarchand
Mangaldas will represent the interests of the lenders' consortium,
according to a Reuters report.

Jet Airways on April 17, 2019, halted all flight operations after
its lenders rejected its plea for emergency funds.

Creditors have filed claims worth INR30,907 crore, according to
Financial Express.  The RP has so far admitted claims worth over
INR14,000 crore.

K2 METALS: ICRA Reaffirms B+ Rating on INR17cr Fund-based Loan
--------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of K2 Metals
Private Limited, as:

                      Amount
   Facilities       (INR crore)    Ratings
   ----------       -----------    -------
   Fund-based Limits    17.00      [ICRA]B+ (Stable); Reaffirmed

   Non-fund based
   limits                7.00      [ICRA]A4; Reaffirmed

Rationale

The rating reaffirmation continues to be constrained by KMPL's
moderate-scale operations in a highly-fragmented industry
structure, the limited value-added business and the intense
competition from a large number of players, which keep margin under
check. The ratings also remain constrained by fluctuating
profitability, which is susceptible to adverse fluctuations in
prices of key raw materials due to limited pricing flexibility.
Furthermore, the company's liquidity position remains tight owing
to the working capital-intensive business. Extended credits to
customers and higher inventory holding have entailed high
utilisation of working capital limits.

The rating, however, continues to draw comfort from the extensive
experience of KMPL's promoters in the steel sector, and the
locational advantage enjoyed the company due to its presence near
Pune, which is a major industrial hub of Maharashtra.

ICRA expects KMPL to continue to benefit from the extensive
experience of the promoters in the steel sector, which will enable
the company to acquire new clients and improve its capacity
utilisation in the near to medium term.

Key rating drivers

Credit strengths

Extensive experience of promoter in marketing of steel products -
Mr. Rahul Kulkarni is the key promoter and director of the company.
Prior to the commencement of operations of KMPL, he had worked as a
marketing manager with leading steel-manufacturing companies and
has an experience of around a decade in marketing of steel/allied
products in the domestic as well as the international markets.
Established experience of the promoter in the steel industry would
help KMPL achieve stable growth in the near to medium term.

Proximity to Pune, a major industrial and manufacturing hub of
Maharashtra – The company's manufacturing unit is located at
Jejuri MIDC, which enjoys a locational advantage due to its
proximity to Pune, Mumbai, Navi Mumbai and Thane, which are
considered to be the industrial and manufacturing hubs of
Maharashtra. Proximity to a prospective customer base provides
greater scope to expand business.

Credit challenges

Volatile operating profitability due to fluctuation in raw material
prices - Due to limited value addition, profitability of the
company remains moderate. Further, it has been fluctuating owing to
high inventory maintained by the company and its limited ability to
pass on the price fluctuations, given the intensely
competitive market. Profitability as indicated by OPM decreased to
~5.63% in FY019 from 7.22% in FY2018 and bounced back to 8.97% in
the current year till December 2019, primarily due to changes in
raw material consumption cost. However, with the increase in scale
of operations, the profitability at net level turned positive in
FY2019. The company has achieved a net profit of INR0.40 crore for
FY2019 and 9MFY2020 each against a net loss of INR0.07 crore in
FY2018.

Moderate capital structure and coverage indicators – Debt level
of the company increased to INR23.45 crore as on March 31, 2019 and
further to INR24.36 crore as on December 31, 2019, from INR19.59
crore as on March 31, 2018, primarily due to availment of loans
from NBFCs as well as increase in utilisation of working capital
limits. However, due to limited profits and retention of the same,
the net worth of the company increased marginally leading to
marginal deterioration in capital structure as represented by
increase in gearing level to 1.20 times as on December 31, 2019
from 1.01 times as on March 31, 2018. Moreover, due to higher
interest expenses and moderate profitability, coverage ratio as
represented by OPBDITA/I&F charges and DSCR stood moderate at of
~1.56 times and ~1.16 times, respectively, during FY2019,
marginally lower than that of FY2018.

Working capital intensive business – The working capital
intensity of the business has remained relatively high due to
maintenance of sizeable inventory levels by the company to swiftly
cater to its client during the initial years of its operations.
Additionally, the receivable days remain high at ~45-90 days owing
to extended credits to the customers, resulting in a high working
capital intensity and significantly higher utilisation of working
capital limits. Working capital intensity as indicated by NWC/OI
increased to 24.36% in as on 31st December 2019 from 1.01 times as
on March 31, 2018.

Highly fragmented business characterised by intense competition
impacts margin growth – Due to low-entry barriers, the company
faces stiff competition from several organised and unorganised
players in the domestic and international market, which limits
margins as well as ability to pass on price fluctuation risk to
customers. Nevertheless, tariff barriers and non-tariff barriers on
imports like custom duty on the minimum floor price and the
requirement of Indian Standard certification from the overseas
manufacture, limits competition from the international market.

Liquidity position: Stretched

KMPL had external term loans of INR13.15 crore on its books as on
March 31, 2019. Further, the company is expected to avail an
additional term loan of INR1.50 crore in FY2021 which is expected
to be repaid in three years. On an aggregate level, the company is
expected to have an annual repayment of Rs 3.69 crore in FY2020,
INR3.63 crore in FY2021 and INR3.04 crore in FY2022. Low
profitability and cash accruals along with limited free cash of
INR1.12 crore as on March 31, 2019 and INR2.85 crore as on December
31, 2019, and lower average buffer from untilised sanctioned limit
(average utilisation of 87% over the period of last fifteen month
ended December 2019), indicates a stretched liquidity position.
Going forward, the ability to increase turnover backed by increase
in capacity utilisation and improvement in profitability along with
better working capital management remains critical to increase cash
accruals and improve liquidity profile of the company.

Rating Sensitivities

Upgrade trigger: Significant increase in scale with sustained
increase in profitability, along with improvement in working
capital management leading to improvement in liquidity position of
the company.

Downgrade trigger: Decrease in scale of operations or profitability
or increase in working capital intensity because of adverse credit
terms with customers and suppliers or increase in inventory level
that causes deterioration in liquidity position.

Mr. Rahul Kulkarni and his wife Mrs. Megha Kulkarni founded KMPL in
2009. The company was incorporated with the objective of
manufacturing bright steel bars and wires, particularly targeting
the auto, construction, infrastructure, packaging, farm and
poultry, fancying and engineering sectors. At present, KMPL
manufactures and galvanises steel wires in the size range of 2.5 mm
to 0.9 mm, as well as manufactures nails as per the client's
requirement. It has an annual installed manufacturing capacity of
~24000 MT.

The company reported a net profit of INR0.40 crore on an OI of
INR86.19 crore in FY2019, against a net loss of INR0.07 crore on an
OI of INR49.43 crore in FY2018. The company has achieved a net
profit of INR0.40 crore on an OI of INR53.72 crore during 9MFY2020.

KARUPPASWAMY BUILDERS: ICRA Assigns B+ Rating to INR7cr Loan
------------------------------------------------------------
ICRA has assigned a rating to the bank facility of Karuppaswamy
Builders Private Limited, as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Proposed Term
   Loan Facility        7.00       [ICRA]B+(Stable); Assigned

Rationale

The assigned rating is constrained by the company's modest scale of
operations with high project and geographical concentration, in a
highly cyclical real estate sector. The rating factors in the
company's modest net worth position limiting its financial
flexibility. Nonetheless, ICRA takes note of unsecured loans from
the promoters and proposed equity infusion supporting the project
cash flows. Further, rating considers the dependence on timely
collections and tie-up of bank loan for funding the ongoing
project.

The rating, however, favourably factors in the extensive experience
and established operational track record of the promoters of
Karuppaswamy Builders Private Limited (KBPL), having developed more
than 350 residential units in Chennai. The rating takes comfort
from healthy sales velocity with 34% for the units booked in its
ongoing residential project, Diamond Apartments, in Chennai.

The Stable outlook on the rating reflects ICRA's opinion that KBPL
will continue to benefit from extensive experience of its promoters
in the real estate industry and healthy collections from the
customers for the ongoing project.

Key rating drivers and their description

Credit strengths

Extensive experience of promoters in real estate industry –
Established in 1998, KBPL is involved in construction and real
estate development of residential properties. The company's
directors have vast experience in real estate development and
construction through KBPL and other Group concerns. The Group has
constructed over hundred independent houses and has developed more
than 350 residential units in Chennai.

Healthy sales velocity coupled with moderate collection efficiency
– At present, the company is developing a residential property,
Diamond Apartments, in Porur, Chennai. The project consists of one
tower, comprising 58 residential units and the construction of the
same commenced from December 2019. As of February 2020, it has
demonstrated healthy sales velocity with 20 units (34%) being
already booked, with ~Rs. 3 crore as collections from the
customers.

Credit challenges

Modest scale of operation with one ongoing project – The
company's scale of operations is modest, with KBPL carrying out a
single project, Diamond Apartments. This restricts its operational
and financial flexibility to an extent. KBPL's current market
activities remain concentrated in the Chennai real estate market
leading to geographical concentration risk. Any adverse development
in the region can impact the execution and sales level of its
projects.

Funding risk associated with ongoing project – The rating factors
in the company's modest net worth position limiting its financial
flexibility. Nonetheless, ICRA takes note of unsecured loans from
the promoters and proposed equity infusion supporting the project
cash flows. Further, it is dependent on timely collections and
tie-up of bank loan for funding the project.

Liquidity position: Stretched

The company's liquidity is stretched as its cash flow is highly
depended on timely collection from its customers and tying up of
debt. It has applied for INR7-crore term loan to part-fund the
construction of its ongoing project, Diamond Apartments, which is
expected to improve the liquidity, going forward.

Rating sensitivities

Positive triggers – ICRA could upgrade KBPL's rating if the
company improves financial flexibility by improving its net worth
position and tying up debt and increasing customer collections on a
sustained basis.

Negative triggers – ICRA could downgrade KBPL's rating if
lower-than-expected collection or delay in loan tie up stretched
the company's liquidity position. The rating may be downgraded if
any delay in completion of the project weakens its financial
profile.

Incorporated in 1998, Karuppaswamy Builders Private Limited is
involved in construction and sale of residential property. The
entity was initially set up as a partnership firm and got
registered as a private limited company in 2015. Its promoters have
separate proprietorship concerns of their own namely, Karuppaswamy
Builders, owned by Mr. R. S. Sivasaravanan and Mahendran
Constructions, owned by Mr. Kartick Mahendran. At present, the
company is involved in developing Diamond Apartments, a project
comprising 58 residential units, located in Chennai.

MANDOVI CASTING: ICRA Withdraws B Rating on INR2.76cr LT Loan
-------------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of
Mandovi Casting Private Limited, as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Long-term fund       2.76       [ICRA]B(Stable) Withdrawn
   based limits         

   Short-term non       4.61       [ICRA]A4 Withdrawn
   fund based limits    

   Unallocated          0.44       [ICRA]B(Stable)/[ICRA]A4
   amount                          Withdrawn

Rationale

The ratings assigned for the bank facilities of Mandovi Casting
Private Limited have been withdrawn at the request of the company
and based on the No Objection Certificate received from its banker.
However, ICRA does not have information to suggest that the credit
risk has changed since the time the ratings were last reviewed.

Key rating drivers
Key rating drivers have not been captured as the rated
instrument(s) are being withdrawn.

Mandovi Casting Private Limited was incorporated in 1996 and it
manufactures billets with an installed capacity of 25,000 metric
tonnes per annum (MTPA). The billets manufactured by the company
are primarily used in steel rolling mills and sold entirely in the
domestic market. MCPL's sales are concentrated in Goa, followed by
Maharashtra and Karnataka. It has its registered office and
manufacturing facility in Goa. It has two group companies: Hare
Krishna Metallics Private Limited (rated
[ICRA]BB+(Stable)/[ICRA]A4+ in February 2020) and Mohit Steel
Industries Private Limited.

MYTRAH VAYU INDRAVATI: ICRA Cuts Rating on INR915.90cr Loan to B-
-----------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Mytrah
Vayu (Indravati) Private Limited (MVIPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund-based-        915.90       Downgraded to [ICRA]B- from
   Term Loan                       [ICRA]BB; outlook remains
                                   Negative

   Fund-based–        100.00       Downgraded to [ICRA]B- from
   Cash Credit                     [ICRA]BB; outlook remains
                                   Negative

   Unallocated        134.10       Downgraded to [ICRA]B- from
                                   [ICRA]BB; outlook remains
                                   Negative

Rationale

ICRA's rating revision factors in the continued weakness in the
liquidity position of Mytrah Vayu (Indravati) Private Limited
(MVIPL) due to the large receivable position of over ten months for
supply of power generated from its 105 MW wind power capacity to
Southern Power Distribution Company of Andhra Pradesh Limited
(APSPDCL) and receivable position of nine months for supply of
power generated from its 50.4 MW wind power capacity tied-up with
Jodhpur Vidyut Vitaran Nigam Limited (JVVNL). While the company has
received partial payments from APSPDCL in December 2019-January
2020 at the interim rate of INR2.43 per unit as directed by the
Andhra Pradesh High Court, the overall receivable position
continues to remain high, leading to stretched liquidity position.
Moreover, the uncertainty persists over the tariff issue, with the
Andhra Pradesh Electricity Regulatory Commission (APERC) yet to
decide on the tariff issue.

Earlier, the High Court of Andhra Pradesh vide its order dated
September 24, 2019 set aside the notification issued by the
Government of Andhra Pradesh (GoAP) on review of wind and solar
PPAs tied-up by the state discoms. The high court directed the
state discoms and the developers to approach APERC to decide on the
tariff issue, within a time frame of six months.

Apart from the delay in payments, the high receivable position was
also because APSPDCL withheld the payments to the extent of the
generation-based incentive (GBI) benefit (50 paise per unit) in the
monthly bills from April 2017 to August 2018. The discom filed a
petition and secured a favourable order in July 2018 from the APERC
to reduce the PPA tariff to the extent of the GBI benefit for the
wind power projects commissioned in the state during FY2016 and
FY2017. Subsequently in August 2018, the Andhra Pradesh High Court
imposed a stay on implementation of this order.

This apart, the rating continues to factor in the risks arising
from the vulnerability of cash flows to seasonality and variance in
wind power density across the years, given that the revenues are
linked to the actual units generated and exported. While the
geographic diversity of the wind power assets across two states
provides cushion against the variation in wind availability, the
actual generation track record has remained below the P90 estimate,
despite the improvement in generation by 20.4% on a year-on-year
(YoY) basis in FY2019. The generation by the wind power capacity
declined by 9.8% on a YoY basis in 9M FY2020, partly because of the
grid curtailments witnessed in Andhra Pradesh. This along with the
high leverage level (external debt / OPBDITA at 6.75 times as of
March 2019) is expected to result in weak debt coverage metrics for
the company in the near term.

Also, the debt coverage metrics remain sensitive to any movement in
interest rates. ICRA also notes that the company's operations
remain exposed to regulatory challenges arising from the
implementation of scheduling and forecasting framework, as approved
by the APERC and Rajasthan Electricity Regulatory Commission
(RERC). Further, the financial profile of the Mytrah Group has been
affected because of the delays in realising payments for its
portfolio in Andhra Pradesh and Telangana.

However, the rating favorably factors in the limited demand risks
with presence of long-term PPAs with APSPDCL and JVVNL for the
entire capacity. Further, the rating factors in the presence of
20-year contract (including the first two-year free period) with
Suzlon Global Services Limited, for the operation & maintenance
(O&M) of the wind turbine generators (WTGs). ICRA further draws
comfort from the track record of the Group in developing and
operating renewable power assets aggregating to 1.7 GW across eight
states.

The negative outlook on the rating assigned to MVIPL is in view of
the delays in receiving payments from APSPDCL and JVVNL, the
stretched liquidity position of the company and the timing
uncertainty over the resolution of the tariff issue with APSPDCL.

Key rating drivers and their description

Credit strengths

Limited demand risks - MVIPL has signed long-term PPAs with APSPDCL
and JVVNL for the full capacity at the approved feed-in tariff
rates for a period of 25 years, mitigating demand risks.
Furthermore, the projects are availing GBI benefit of INR0.5 per
unit.

Geographic diversity of the portfolio - The geographic diversity in
the wind farms of the company with 105 MW at Vajrakarur in Andhra
Pradesh and 50.4 MW at Bhesada in Rajasthan, provides comfort
against the risk of variation in wind availability and the
counterparty credit risk to a certain extent.

Long-term O&M contract with Suzlon - The company has signed a
20-year O&M contract with Suzlon Global Services Limited with
pricing fixed for a period of 10 years. The agreement provides
machine availability guarantee for the wind turbine generators
(WTGs), with clauses for liquidated damages in case of shortfall in
machine availability, subject to caps agreed in the contract.

Long tenure of project debt - The debt coverage metrics for the
company are supported by the long-tenure (18.75 years) of the
project debt and the structured repayments.

Demonstrated track record of Mytrah Group - The Group has
demonstrated significant track record in developing and operating
renewable power assets with operational wind power capacity of 1.7
GW spread across eight states.

Credit challenges

Delays persist in receiving payments from APSPDCL and JVVNL - The
counterparty credit risks remain high owing to the exposure to
APSPDCL and JVVNL, given their weak financial profile. While the
company has received partial payments from APSPDCL in December
2019-January 2020 at the interim rate of INR2.43 per unit as
directed by the Andhra Pradesh High Court, the overall receivable
position remains high at over ten months. Also, the receivable
position from JVVNL remains high at nine months with payments
pending for bills raised since April 2019. As a result, the
liquidity position of the company remains stretched.

Uncertainty persists over the tariff issue - The High Court of
Andhra Pradesh vide its order dated September 24, 2019 set aside
the notification issued by the GoAP on review of wind and solar
PPAs tied-up by the state discoms. The high court directed the
state discoms and the developers to approach APERC to decide on the
tariff issue, within a time frame of six months. The final order
from APERC is awaited on the tariff issue.

Weak debt coverage metrics in the near term - The debt coverage
metrics for the company are expected to remain weak in the near
term, given the high leverage level (external debt / OPBDITA at
6.75 times) and lower performance in generation against the P90
estimate by the wind farms under MVIPL. Also, the debt coverage
metrics remain sensitive to any movement in interest rates.

Group's financial profile - The financial profile of the Mytrah
Group has been affected because of the delays in realising payments
for its portfolio in Andhra Pradesh and Telangana.

Debt metrics for the project remain sensitive to PLF levels given
the one-part tariff structure - The debt metrics of the project
remain sensitive to the generation from the wind farms given the
one-part tariff structure; as a result, any adverse variation in
wind conditions may impact PLF and consequently, the cash flows.

Challenges associated with implementation of forecasting and
scheduling regulations - The regulatory challenges from the
implementation of scheduling & forecasting framework for wind power
projects in Andhra Pradesh and Rajasthan pose a risk, given the
limited experience in scheduling and forecasting for the industry
players in India and the variable nature of wind energy
generation.

Liquidity position: Stretched

The liquidity profile of the company is stretched given the long
delays in realising payments from its off-takers, APSPDCL and
JVVNL, along with timing uncertainty over recovery of pending
payments. The company has largely utilised the working capital
facility and the funds in DSRA to meet its obligations. The
available liquidity buffer in the form of DSRA and undrawn working
capital would enable the company to meet about four months of
payments related to O&M, interest and debt repayment as of first
week of January 2020.

Rating sensitivities

Positive triggers - ICRA could revise the outlook on the long-term
to Stable for MVIPL, post resolution of the tariff issue with
APSPDCL and stabilisation of the payment cycle from APSPDCL.
Further, ICRA could upgrade MVIPL's rating if the company achieves
a reduction in average receivable cycle from its off-takers to less
than 180 days on a sustainable basis. Further, demonstration of
generation level in line or above the P90 estimates leading to
healthy cash accruals is another positive trigger. Specific credit
metrics that could lead to an upgrade of MVIPL's rating include,
annual DSCR on project debt greater than 1.10 times on a sustained
basis.

Negative triggers - Negative pressure on MVIPL's rating could arise
if the delays persist in receiving payments from the off-takers and
if the tariff issue with APSPDCL is not resolved in the near term,
leading to further accumulation of receivables and weakening of the
liquidity position. Also, any under-performance in generation by
the wind power capacity leading to weakening of annual DSCR on
project debt to less than 1.00 times would be a negative trigger.

MVIPL incorporated in June 2012 is a special purpose vehicle (SPV)
promoted by Mytrah Energy (India) Private Limited (MEIPL) through
its step-down subsidiary Mytrah Vayu (Bhima) Private Limited
(MVBPL). MVIPL is operating 155.4 MW wind power capacity comprising
of 105 MW at Vajrakarur in Andhra Pradesh and 50.4 MW at Bhesada in
Rajasthan. The project in Andhra Pradesh was fully commissioned in
March 2016, while the project in Rajasthan was fully commissioned
in December 2015. The project has been developed at a total cost of
INR1158.23 crore. The company has tied-up long-term PPAs with the
respective state distribution utilities for the wind power projects
at the feed-in tariff rate of INR4.83 per unit in Andhra Pradesh
and INR5.74 per unit in Rajasthan. The project was developed by
MEIPL with WTGs supplied by Suzlon. MEIPL, incorporated in November
2009, is a leading wind power IPP in India with operational wind
and solar power capacity of 1.7 GW spread across eight states under
various SPVs.

MYTRAH VAYU: ICRA Cuts Rating on INR983.54cr Loan to B-
-------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Mytrah
Vayu (Tungabhadra) Private Limited (MVTPL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund-based-         952.83      Downgraded to [ICRA]B- from
   Term Loan                       [ICRA]BB-; outlook remains
                                   Negative

   Fund-based-          43.00      Downgraded to [ICRA]B- from
   Overdraft                       [ICRA]BB-; outlook remains
                                   Negative


   Unallocated          38.17      Downgraded to [ICRA]B- from
                                   [ICRA]BB-; outlook remains
                                   Negative

   Fund-based-         983.54      Downgraded to [ICRA]B- from
   Term Loan                       [ICRA]BB-; outlook remains
                                   Negative

   Fund-based-          43.00      Downgraded to [ICRA]B- from
   Overdraft                       [ICRA]BB-; outlook remains
                                   Negative

   Unallocated          38.17      Downgraded to [ICRA]B- from
                                   [ICRA]BB-; outlook remains
                                   Negative

Rationale

ICRA's rating revision factors in the continued weakness in the
liquidity position of Mytrah Vayu (Tungabhadra) Private Limited
(MVTPL) due to the large receivable position of over 12 months for
supply of power generated from its 148.9 MW wind power capacity to
Southern Power Distribution Company of Andhra Pradesh Limited
(APSPDCL). While the company has received partial payments from
APSPDCL in December 2019-January 2020 at the interim rate of
INR2.43 per unit as directed by the Andhra Pradesh High Court, the
overall receivable position continues to remain high, leading to
poor liquidity position. Moreover, the uncertainty persists over
the tariff issue, with the Andhra Pradesh Electricity Regulatory
Commission (APERC) yet to decide on the tariff issue. Earlier, the
High Court of Andhra Pradesh vide its order dated September 24,
2019 set aside the notification issued by the Government of Andhra
Pradesh (GoAP) on review of wind and solar PPAs tied-up by the
state discoms. The high court directed the state discoms and the
developers to approach APERC to decide on the tariff issue, within
a time frame of six months. Apart from the delay in payments, the
high receivable position was also because APSPDCL withheld the
payments to the extent of the generation-based incentive (GBI)
benefit (50 paise per unit) in the monthly bills from April 2017 to
August 2018. The discom filed a petition and secured a favourable
order in July 2018 from the APERC to reduce the PPA tariff to the
extent of the GBI benefit for the wind power projects commissioned
in the state during FY2016 and FY2017. Subsequently in August 2018,
the Andhra Pradesh High Court imposed a stay on the implementation
of this order. As a result, the discom has started releasing
monthly payments without withholding the GBI benefit from September
2018 onwards. However, the realisation of payments withheld for
earlier months remains to be seen.

This apart, the rating continues to be constrained by the single
location and the single asset nature of the company's operations,
along with the vulnerability of cash flows to high seasonality and
possible variance in wind power density across the years. This is
because the revenues are linked to the actual units generated and
exported. The rating also factors in the moderation in the project
debt coverage metrics following the refinancing of the project debt
availed from domestic lenders with higher debt (Rs. 57.90 crore)
from a new lender in FY2019. Moreover, the decline in power
generation by the wind power project in the first nine months of
FY2020 by 13.5% on a year-on-year (YoY) basis, is expected to lead
to a further moderation in debt coverage metrics. Also, these
metrics remain sensitive to any movement in interest rates. ICRA
also notes that the company's operations remain exposed to
regulatory challenges arising from the implementation of scheduling
and forecasting framework, as approved by the APERC. Further, the
financial profile of the Mytrah Group has been affected because of
the delays in realising payments for its portfolio in Andhra
Pradesh and Telangana.

However, the rating continues to factor in the limited demand risks
with the presence of long-term PPAs with APSPDCL for the entire
capacity. The rating also factors in the 15-year contract with GE
India Industrial Private Limited (GIIPL), for the operation and
maintenance of the wind turbine generators (WTGs). While the
generation by the wind farm improved by 23.9% on a YoY basis in
FY2019, the generation witnessed a decline of 13.5% on a YoY basis
during the first nine months of FY2020, partly because of the grid
curtailments witnessed in Andhra Pradesh. ICRA further draws
comfort from the track record of the Group in developing and
operating renewable power assets, aggregating to 1.7 GW across
eight states.

The negative outlook on the rating assigned to MVTPL is in view of
the delays in receiving payments from APSPDCL, the stretched
liquidity position of the company and the timing uncertainty over
the resolution of the tariff issue with APSPDCL.

Key rating drivers and their description

Credit strengths

Limited demand risks - MVTPL has signed long-term PPAs with APSPDCL
for the full capacity at the approved feed-in tariff rate for a
period of 25 years, mitigating demand risks. Furthermore, the
project is availing GBI benefit of INR0.5 per unit.

Long-term O&M contract with GIIPL - MVTPL has signed an O&M
contract with GIIPL for a period of 15 years for comprehensive O&M
of the WTGs, with provisions for ensuring adequate machine
availability. In case availability is lower than the agreed level,
GIIPL is liable to pay liquidated damages, subject to a limit
mentioned in the contracts. The pricing under the contract is fixed
for 15 years. The performance of the O&M contractor has remained
satisfactory so far.

Long tenure of project debt - The debt coverage metrics for the
project are supported by the long tenure (15 years) of the project
debt and the competitive interest rate.

Demonstrated track record of Mytrah Group - The Group has
demonstrated significant track record in developing and operating
renewable power assets with operational wind power capacity of 1.7
GW spread across eight states.

Credit challenges

Delays persist in receiving payments from APSPDCL - The
counterparty credit risks remain high owing to the exposure to a
single counterparty – APSPDCL, given its weak financial profile.


While the company has received partial payments from APSPDCL in
December 2019-January 2020 at the interim rate of INR2.43 per unit
as directed by the Andhra Pradesh High Court, the overall
receivable position remains high at over 12 months. As a result,
the liquidity position of the company remains weak.

Uncertainty persists over the tariff issue - The High Court of
Andhra Pradesh vide its order dated September 24, 2019 set aside
the notification issued by the GoAP on review of wind and solar
PPAs tied-up by the state discoms. The high court directed the
state discoms and the developers to approach APERC to decide on the
tariff issue, within a time frame of six months. The final order
from APERC is awaited on the tariff issue.

High leverage level and modest coverage metrics - The refinancing
of project debt with additional debt in FY2019 has increased the
leverage level for the company. While this is being offset to some
extent by the reduction in interest rate, the change in repayment
structure and the decline in generation in the current fiscal is
likely to negatively impact the debt coverage metrics for the
company in the near term. Also, the company's debt coverage metrics
remain sensitive to any revision in interest rates.
Group's financial profile - The financial profile of the Mytrah
Group has been affected because of the delays in realising payments
for its portfolio in Andhra Pradesh and Telangana.

Single asset nature of operations - MVTPL is entirely dependent on
power generation by the wind power project for its revenues and
cash accruals, given the single-part nature of the tariff. As a
result, any adverse variation in wind conditions may impact PLF and
consequently the cash flows. The single location of the company's
operations amplifies this risk.

Challenges associated with implementation of forecasting and
scheduling regulations – The regulatory challenges arising from
the implementation of scheduling and forecasting framework for wind
power projects in Andhra Pradesh poses a risk. This is mainly
because of the limited experience in scheduling and forecasting for
the industry players in India and the variable nature of wind
energy generation.

Liquidity position: Poor

The liquidity profile of the company is constrained by the delays
in realising payments from APSPDCL. As a result, the working
capital facility of the company is fully utilised and the company
has dipped into DSRA towards meeting its obligations. The company
remains dependent on support from its sponsor to meet the payment
obligations, till the payment realisation from its off-taker
improves.

Rating sensitivities

Positive triggers - ICRA could revise the outlook on the long-term
to Stable for MVTPL, post resolution of the tariff issue with
APSPDCL and stabilisation of the payment cycle from APSPDCL.
Further, ICRA could upgrade MVTPL's rating if the wind power
portfolio of the company achieves a reduction in average receivable
cycle from the off-takers to less than 180 days, on a sustainable
basis. In addition, demonstration of generation level in line with
the P90 estimates on a sustained leading to healthy cash accruals
would be a positive trigger. Specific credit metrics that could
lead to an upgrade of MVTPL's rating include, annual DSCR on
project debt greater than 1.10 times on a sustained basis.

Negative triggers - Negative pressure on MVTPL's rating could arise
if the tariff issue with APSPDCL is not resolved in the near term,
leading to further accumulation of receivables and consequent
impact on debt servicing. Also, any under-performance in generation
by the wind power project leading to weakening of annual DSCR on
project debt to less than 1.00 times would be a negative trigger.

MVTPL, incorporated in March 2015, is a special purpose vehicle
(SPV) promoted by Mytrah Energy (India) Private Limited (MEIPL).
Along with MEIPL, GE Capital is also participating in this project
as an investor by infusing 49% of the sponsor contribution (mainly
through CCDs). The company is operating a 148.9 MW wind power
capacity at Aspari in Krunool district of Andhra Pradesh. The
company commissioned 79.9 MW on October 21, 2016 and the remaining
69 MW was declared commissioned by March 31, 2017. The project has
signed two long-term PPAs with APSPDCL at the approved feed-in
tariff rate of INR4.83 per unit. The project was developed by MEIPL
with WTGs supplied by GE India Industrial Private Limited. The
project was developed at a total cost of INR1314 crore. MEIPL,
incorporated in November 2009, is a leading wind power IPP in India
with operational wind and solar power capacity of 1.7 GW spread
across eight states under various SPVs.

NEERG ENERGY: Fitch Ups Rating on $475MM Sr. Notes due 2022 to BB-
------------------------------------------------------------------
Fitch Ratings upgraded the rating on Neerg Energy Ltd's USD475
million 6% senior notes due 2022 to 'BB-', from 'B+' with Recovery
Rating of 'RR4'. The rating on the notes reflects the credit
profile of the assets of the operating entities that form the
restricted group. These operating entities are owned by ReNew Power
Private Limited (BB-/Stable), a company involved in renewable power
generation in India.

The upgrade is driven by strengthening of the linkages between the
restricted group and ReNew due to the cross-default provisions in
ReNew's US dollar notes issued in September 2019 and January 2020
and ReNew's record of providing tangible support to the restricted
group. ReNew provided liquidity support to the restricted group in
the second quarter of the financial year ending March 2020 (2QFY20)
to enable timely service of its debt obligations and alleviate cash
flow pressure following a delay in payments from state-owned
distribution companies.

As a result of the enhanced linkages, Fitch applies a one-notch
rating uplift to the standalone credit profile assessment of the
restricted group.

Neerg Energy is a SPV held by a trust and its ownership is not
linked to the ReNew Group. The SPV used the proceeds of the US
dollar notes to subscribe to masala bonds (offshore bonds
denominated in Indian rupee but settled in US dollars) issued by
the entities in the restricted group. The SPV does not undertake
any business activity other than investing in the masala bonds.

The US dollar noteholders benefit from a first charge over the
masala bonds in addition to a charge over the bank accounts and
100% of the SPV's shares. The masala bonds in turn are secured by a
first charge on all assets (excluding accounts receivable) and cash
flows of the operating entities in the restricted group.

KEY RATING DRIVERS

Rating Uplift on Strengthened Linkages: The enhanced linkages with
ReNew result in Fitch applying a one-notch uplift to the standalone
credit profile of the restricted group. Under the terms of ReNew's
bond, a default on USD75 million or more at any of its restricted
subsidiaries can, subject to certain processes, result in an event
of default on ReNew's bond. Although only two operating entities in
the Neerg Energy's restricted group have at least USD75 million of
debt, all restricted group subsidiaries provide cross guarantees.
Thus, a default by any of them will trigger a cross-default with
Renew's bonds.

ReNew provided INR410 million of liquidity support to the
restricted group in 2QFY20, which is further evidence of
strengthened linkages between the two. However, the uplift is
limited to a notch, as cross-default provisions are significantly
less robust than guarantees and Fitch consider the restricted group
to be only of moderate strategic importance to ReNew due to its
small size relative to ReNew's total capacity, which is likely to
reach 8 GW in the next 24 months.

Seasoned Portfolio, Diversified Operations: The restricted group's
portfolio has an adequate track record, with 32% of capacity
operating for more than five years and 100% for more than two
years. The capacity rose to 606 MW with the addition of a 95 MW
solar project (Mirpur and Malkanoor) in March 2019, which also
expanded the share of more stable solar assets in the portfolio to
34% from 22%. Wind assets make up the rest of the portfolio.
However, the offtake for this project is with distribution
companies in Telangana state, which have taken a long time to make
payments.

Operating Performance Within Expectations: The restricted group's
operating cash flow has been in line with Fitch's expectations,
with a relatively good wind season in FY19 resulting in increase in
average plant loan factor (PLF) to 22.5% (FY18: 20.8%). Higher PLFs
also resulted in an increase in EBITDA margins to 90% in FY19 from
87% in FY18. Fitch expects average PLFs to remain around 22% and
EBITDA margins to also remain around 90%.

Weak Counterparty Profile: The rating on the notes reflects the
weak credit profile of the restricted group's key counterparties -
state-owned power distribution utilities - which account for about
83% of the restricted group's offtake. The rest of the offtake is
sold directly to corporate customers. The utilities in Andhra
Pradesh, Maharashtra and Telangana account for around 65% of the
offtake, resulting in some concentration risks.

Long Receivable Days: The weak financial profiles of the
state-owned utilities and the large share of offtake sold to
utilities from Andhra Pradesh (30%) and Telangana (16%) increased
the restricted group's receivable days. Trade receivable days rose
to 291 by end-September 2019, from 191 at end-March 2019. However,
payments from state-owned utilities have improved since November
2019. Fitch now estimates receivable days to fall below 200 days by
FYE20.

Stable Financial Profile: Fitch expects the restricted group's
financial profile to remain stable over the medium term, although
the FY19 net coverage ratio was weaker than Fitch estimated mainly
due to the increase in debt for the Mirpur and Malkanoor project
and the rise in trade receivables. Fitch expects the restricted
group's net leverage (net adjusted debt/operating EBITDAR) to
improve to 4.5x by FYE22 (FYE19: 5.4x) and EBITDAR net interest
coverage ratio to rise to 1.7x (FYE19: 1.5x). This would be driven
by amortisation of borrowings for the Mirpur and Malkanoor project
and cash accumulation.

Price Certainty, Volume Risks: The restricted group's assets
benefit from long-term power purchase agreements (PPAs) for all its
assets, with tenors of 10-25 years for state utility contracts, and
7-10 years for direct sales. The long-term PPAs provide protection
from price risk, but production volume will vary with resource
availability, which is affected by seasonal and climatic patterns.
Fitch continues to believe that attempts by distribution utilities
in the state of Andhra Pradesh to renegotiate tariffs in their PPAs
will be unsuccessful. Any tariff revision will be treated as event
risk in its credit assessment.

Forex Hedging, Some Refinancing Risk: The restricted group's
earnings are in rupees, but the notes are denominated in US
dollars. However, the SPV has fully hedged its semi-annual coupon
payments and substantially hedged the principal through call
spreads till INR:USD of 100:1 along with 7.5% redemption premium.
The redemption premium on the masala bonds issued by the operating
entities in the restricted group, which is payable to the SPV,
provide an additional cushion.

The US dollar notes face refinancing risk as the cash balance at
the restricted group is not likely to be sufficient to repay the
notes at maturity. However, this risk is mitigated by the long
remaining life of the PPAs and ReNew's strong access to funding
from banks and capital markets.

DERIVATION SUMMARY

ReNew RG II (US dollar notes rated BB) has a higher proportion of
more-stable solar assets (56% of total capacity with the rest from
wind assets) than Neerg Energy and more exposure to industrial and
commercial customers, which account for 25% of offtake. Fitch
expects ReNew RG II to benefit from higher EBITDAR net interest
cover of 2x, helped by covenanted interest income on initial
advances to its parent. This, together with restrictions on
additional indebtedness (excluding working capital debt) and an
interest service reserve account covering six months of interest,
results in the US dollar notes of ReNew RG II being rated two
notches above the Neerg Energy's restricted group's standalone
credit assessment.

Azure Power Energy Ltd. (APEL, US dollar notes rated BB-) benefits
from exposure to stable and predictable solar-based power plants
and a lower counterparty risk profile, with a third of its capacity
contracted to sovereign-backed counterparties. APEL has a stronger
net interest coverage ratio, which Fitch expects to be above 2.0x
by FY22. These factors result in APEL's notes being rated one notch
higher than Neerg Energy's standalone credit assessment.

China-based Concord New Energy Group Limited (CNE, BB-/Stable) has
around 2.3GW of wind-based power capacity in China. The assets are
in areas with low curtailment risk and benefit from a stable
feed-in-tariff regime. The counterparty risk is lower for CNE as it
derives most of its revenue from strong state-owned power grids,
although CNE faces some time lag in receiving subsidies. Fitch also
expects CNE's financial profile to be stronger, with FFO
fixed-charge coverage of around 3x, compared with Neerg Energy's
less than 2x. Hence, the Neerg Energy restricted group's standalone
credit profile is assessed at one notch lower than the rating on
CNE.

KEY ASSUMPTIONS

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

  - PLFs ranging from 18% to 27% for all assets, in line with
historical performance

  - Plant-wise tariff in accordance with respective PPAs

  - EBITDA margins of 87%-92% for all assets, in line with
historical performance

  - Average receivable days to improve to around 170 days by FYE21
(FYE19: 191 days)

  - No new assets to be added to the restricted group

  - No dividend payout in the medium term

RATING SENSITIVITIES

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

  - Upgrade of ReNew's IDR while maintaining linkages with
restricted group along with improvement in restricted group's
EBITDAR net fixed-charge coverage to above 2.0x on and net
leverage, as measured by net adjusted debt/operating EBITDAR, to
below 4.5x on a sustained basis.

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

  - Downgrade of ReNew's IDR or weakening of the restricted group's
linkages with ReNew
  
  - EBITDAR net fixed-charge coverage not meeting Fitch's
expectation of above 1.5x over the medium term

  - Significant, sustained deterioration of the restricted group's
receivable position

  - Failure to adequately mitigate foreign-exchange risk

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: The US dollar notes that mature in February
2022 represent the majority of the borrowings of the restricted
group, which leads to minimal debt maturities over next 18 months,
except for amortisation of the bank loans for Mirpur and Malkanoor
project. Fitch expects the liquidity to remain adequate over the
next 12 months based on its expectations of continuing improvement
in receivables position. Fitch expects ReNew to plan to refinance
the US dollar notes around 12 months prior to the scheduled
maturity.

ESG CONSIDERATIONS

ESG issues are credit neutral or have only a minimal credit impact
on the entity(ies), either due to their nature or the way in which
they are being managed by the entity(ies).

PRAVEEN ELECTRICAL: ICRA Lowers Rating on INR9cr Loan to 'D'
------------------------------------------------------------
ICRA has revised the ratings on certain bank facilities of Praveen
Electrical Works, as:

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

   Long Term-Non-      9.00       [ICRA]D ISSUER NOT COOPERATING;
   Fund Based                     Rating downgraded from
                                  [ICRA]B+(Stable) ISSUER NOT
                                  COOPERATING and continues to
                                  remain under ‘Issuer Not
                                  Cooperating' category

   Long Term/Short     6.00       [ICRA]D ISSUER NOT COOPERATING;
   Term-Unallocated               Rating downgraded from [ICRA]B+
                                  (Stable)/[ICRA]A4 ISSUER NOT
                                  COOPERATING and continues to
                                  remain under ‘Issuer Not
                                  Cooperating' category
Rationale

The rating downgrade reflects delays in Debt Servicing.
The rating is based on limited information on the entity's
performance since the time it was last rated in July 2019. 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 Praveen Electrical Works, 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 01, 2016, ICRA's Rating Committee has taken a rating
view based on the best
available information.

Key rating drivers and their description

Credit strengths: NA

Credit challenges

There have been delays in debt servicing as mentioned the account
been classified as 'Special Mention Account or SMA' during the past
one month. The reason was Delays in repayment of principal and/or
interest on any fund-based bank facility which has a clear mention
of due date like term loan/ working capital demand loan etc.

Liquidity position: Poor
Praveen Electrical Works liquidity profile is poor as reflected by
irregularities in debt servicing by entity.

Praveen Electrical Works was established as a proprietorship firm
in the year 1994 by Mr.Prakash. C. Angadi. The firm is an
electrical contractor and is a registered Class I contractor with
Government of Karnataka. The firm undertakes internal and external
electrification works and caters to various Government departments
in Karnataka such as Hubli Electricity Supply Company Limited,
Karnataka Slum Development Board, Public Works Department and The
Karnataka Power Transmission Corporation Limited among others.

PRAYAGRAJ POWER: ICRA Withdraws D Rating on INR11,493cr Loans
-------------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of
Prayagraj Power Generation Company Limited, as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Term loans         11,493       [ICRA]D; Withdrawn

   Cash credit           700       [ICRA]D; Withdrawn

   Non-fund-based
   Limits (derivates)    212       [ICRA]D; Withdrawn

   Non-fund-based
   limits (working
   capital)              100       [ICRA]D; Withdrawn

Rationale

The ratings have been withdrawn in accordance with ICRA's policy on
withdrawal and suspension, and as desired by the company on receipt
of no objection certificate provided by the bank.

Key rating drivers
Key rating drivers have not been captured as the rated instruments
are being withdrawn.

Liquidity position
Liquidity position has not been captured as the rated instruments
are being withdrawn.

Rating sensitivities
Rating sensitivities have not been captured as the rated
instruments are being withdrawn.

PPGCL was incorporated in February 2007 to set up a 1,980 MW
coal-based thermal power project in Uttar Pradesh. It has an
aggregate power generation capacity of 1,980 MW, comprising three
units of 600 MW each. Commissioning for  the three units was
declared in phases during fiscals 2016, 2017 and 2018. The plant
went through financial stress owing to working capital
unavailability and cost overruns. It was taken over by Resurgent
Power, through its wholly owned subsidiary Renascent Power Ventures
Pvt Ltd (Renascent Power) in December 2019. Resurgent Power signed
a share purchase agreement with a consortium of lenders led by
State Bank of India to acquire 75.01% stake in PPGCL.


R.K. DHABHAI: ICRA Maintains 'D' Rating in Not Cooperating
----------------------------------------------------------
ICRA said the ratings for the INR6.62 crore bank facilities of R.K.
Dhabhai Minerals and Chemicals Private Limited to remain under
Issuer Not Cooperating category. The long-term and short-term
ratings are denoted as [ICRA]D/[ICRA]D ISSUER NOT COOPERATING.

                    Amount
   Facilities     (INR crore)    Ratings
   ----------     -----------    -------
   Long Term-Fund     1.41       [ICRA]D; ISSUER NOT COOPERATING;
   Based/Term Loan               Rating Continues to remain under
                                 the ‘Issuer Not Cooperating'
                                 category

   Long Term-Fund     3.00       [ICRA]D; ISSUER NOT COOPERATING;
   Based/Cash                    Rating Continues to remain under
   Credit                        the ‘Issuer Not Cooperating'
                                 Category

   Short Term–Non     2.21       [ICRA]D; ISSUER NOT
COOPERATING;
   fund Based                    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.

Incorporated in 2007 by Mr. R.K. Dhabhai and his wife Mrs. Urmila
Dhabhai, RK performs job work like grinding, crushing, loading and
transportation of rock phosphate. The company's two operational
units for grinding and crushing are in Rajasthan with a total
grinding capacity of 1,08,000 metric tonnes (MT) per annum and
total crushing capacity of 2,40,000 MT per annum.

RENEW POWER: S&P Affirms'BB-' Issuer Credit Rating, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' long-term issuer credit
rating on ReNew Power Ltd. Restricted Group (RPL RG; BB-/Stable/--)
and its 'BB-' long-term issue rating on the company's senior
secured notes. The outlook is stable.

S&P said, "We affirmed the rating to reflect our view that RPL RG
is core to its stronger parent, ReNew Power Pte. Ltd. (RPL;
BB-/Stable/--), one of the largest renewable energy companies in
India. RPL RG is wholly owned by RPL, and RPL RG's operations are
fully integrated into the parent's. As such, we view that the
parent is fully committed to supporting the company.

"Our 'b+' assessment of RPL RG's stand-alone credit profile (SACP)
reflects the company's stabilizing operating performance on its
static portfolio of wind and solar assets. We believe that RPL RG's
assets should perform at least in line with P90 generation
estimates (generation levels that we expect the company's projects
will be able to achieve at least 90% of the time)."

First-half operational performance for fiscal 2020 (six months
ending September 2019) indicates performance levels of about P75
for solar and P90 for wind assets. Operational stability is further
supported by the fact that RPL RG consists of only operational
assets with no construction risks. S&P expects that this, combined
with long-term fixed-tariff power purchase agreements, and RPL RG's
strong structural features that protect credit quality, will
support cash-flow stability.

Nevertheless, like most Indian renewable companies, RPL RG's credit
profile is weighed down by the company's exposure to the weak
credit quality of Indian state counterparties. While not exposed to
the state of Andhra Pradesh, RPL RG has been experiencing
lengthening payment delays from the states of Telangana, and
Rajasthan. S&P said, "As such, we consider working capital
investment for fiscal 2020 (ending March 31, 2020) to be around
Indian rupee (INR) 3 billion to account for collection delays.
Furthermore, we believe that RPL RG's structural mechanisms that
prioritize debt service, prevent further debt raising, and restrict
cash outflows, will help offset these collection delays and any
operational underperformance."

S&P said, "We expect RPL RG's capital structure to consist of about
INR15 billion of shareholder loans and INR4.4 billion of preference
shares by the end of fiscal 2020. We treat each of these
instruments as non-common equity financing from the parent, RPL.
This is because these instruments are wholly provided by RPL (no
misalignment of interest). We also expect that their terms and
conditions sufficiently reduce RPL's ability to exercise its
creditor rights, supporting these instruments' permanence within
RPL RG's capital structure. However, we would revise our equity
treatment if we believe that, at any stage, these instruments would
no longer be permanent in nature, or would be sold to a third
party, leading to material misalignment in interest.

"The stable outlook on RPL RG reflects our stable rating outlook on
its parent, RPL, and our expectation that RPL RG will remain core
to RPL over the next 24 months.

"On a stand-alone basis, we estimate RPL RG's funds from operations
(FFO) cash interest coverage to be about 1.5x and an FFO-to-debt
ratio of about 5%, assuming P90 asset efficiencies. We expect the
company to maintain a manageable receivables position, and do not
expect parent advances or capital expenditure to increase leverage
or put pressure on liquidity.

"We may lower our rating on RPL RG if we downgrade RPL. This could
happen if RPL's operating performance is weaker than our estimates,
its receivables position considerably worsens, or the company
suffers material project execution delays. These factors could lead
to RPL's FFO cash interest cover to drop below 1.5x on a
sustainable basis. There could also be negative rating pressure on
the credit quality of RPL if the FFO cash interest cover of RPL RG
goes below 1.0x. In a more remote scenario, we may also lower our
rating if we assess that RPL RG is no longer core to RPL. This
could happen if group support weakens from the parent such that it
is not timely or adequate.

"There could be downward pressure on RPL RG's SACP if its operating
performance is weaker than our estimates, its receivables position
considerably worsens, or the company suffers material project
execution delays. These factors could lead to RPL RG's FFO cash
interest cover falling below 1.5x on a sustainable basis. A
deterioration in liquidity due to higher than anticipated negative
working capital movement could also put pressure on the rating.

"We may raise our rating on RPL RG if we upgrade RPL. However, we
believe such a scenario is unlikely in the next 24 months, given
RPL's growth aspirations and high leverage."


RENEW RG II: Fitch Affirms BB Rating on $525MM Sr. Sec. Notes
-------------------------------------------------------------
Fitch Ratings affirmed ReNew RG II's USD525 million senior secured
notes due 2024 at 'BB'. ReNew RG II, is a restricted group of
subsidiaries owned by ReNew Power Private Limited (ReNew;
BB-/Stable).

The rating on the notes reflects the credit profile of the
restricted group of eight entities with an operating capacity of
636MW in solar (56% of total capacity) and wind (44%) power
generation in India. The US dollar notes represent joint and
several obligations of the eight operating entities. The rating
benefits from restrictions on cash outflow and additional
indebtedness of the restricted group and reflects the restricted
group's diversified portfolio of operating solar and wind power
assets and an improving financial profile.

KEY RATING DRIVERS

Strong Structural Enhancements to Notes: The US dollar notes are
issued directly by the asset-owning entities and the transaction
structure includes a static pool of fully operational assets with
no additional indebtedness permitted except for working capital.
The notes are secured by a pledge of at least 51% equity share in
each of the operating entities and substantially all of the assets
in the operating entities. The notes also include a six-month
interest service reserve account (ISRA) and restrictions on cash
outflows via a minimum debt-service coverage ratio (DSCR) of 1.3x.
The notes also benefit from receipt of interest income on advances
extended to the parent.

Stable, Majority Solar Portfolio: Fitch expects the restricted
group's EBITDA to improve to INR6.6 billion by the financial year
ending March 2021 (FY21) from INR5.3 billion in FY19. EBITDA in
FY19 was 11% lower than its estimate due to curtailment faced by
two projects in Rajasthan as two transformers failed and as some
assets generated lower-than-estimated plant load factors (PLFs) in
their first full year of operation. Solving the curtailment at the
two Rajasthan projects and stabilising generation at the other
assets will help improve EBITDA.

Solar power makes up 56% of the restricted group's generation
capacity, and is likely to result in more stable cash flows as
solar power has lower yield volatility than other renewable energy
sources.

Price Certainty, Volume Risks: Fitch believes the long-term
power-purchase agreements (PPAs) for all of the restricted group's
assets offer price certainty and long-term visibility of cash
flows. The restricted group's assets have an average PPA life of
more than 16 years. PPAs with state-owned distribution companies
have life of 13-25 years and account for nearly 75% of ReNew RG
II's capacity. The remaining capacity is contracted to corporate
customers for shorter periods of 8-10 years.

Although the long-term PPAs provide protection from price risk,
production volumes will vary based on resource availability, which
is affected by seasonal and climatic patterns.

Weak Counterparty Profile: The rating reflects the weak credit
profile of the restricted group's key counterparties - state-owned
power distribution companies. State-owned distribution companies
have not defaulted on their payments to the renewable sector to
date, despite payment delays.

The weak financial profile of the state-owned distribution
companies and the offtake concentration in Rajasthan (25% of total
offtake) and Telangana (22%), where the distribution companies have
delayed payments, led to an increase in ReNew RG II's receivable
days to 164 by FYE19 (FYE18: 90 days) and 176 days by end-September
2019. However, the restricted group has seen improvement in payment
receipts from the distribution companies since November 2019. This
should reduce receivable days to below 160 days by FYE20.

Improving Financial Profile: Fitch expects ReNew RG II's financial
profile to improve, supported by positive cash flows from
operations and restrictions on additional indebtedness. Fitch
expects the restricted group's EBITDA net interest coverage to
increase to 2.3x by FYE24 from 2.0x at FYE19, and net leverage (net
adjusted debt/operating EBITDAR) to fall to 4.0x from around 6.5x.
Its financial profile assessment incorporates ReNew's commitment to
maintain sufficient liquidity within the restricted group,
including ReNew's policy of not using the balance in the ISRA for
the payment of coupons.

Forex Hedging, Some Refinancing Risk: The restricted group's
earnings are in rupees, but the notes are in US dollars, resulting
in exposure to foreign-exchange risk. However, ReNew has
substantially hedged the foreign-exchange risk of the majority of
the principal and semi-annual coupon payments of its US dollar
notes. The notes face refinancing risk as the cash balance at the
restricted group is not likely to be sufficient to repay the notes
at maturity. However, this risk is mitigated by the long remaining
life of the PPAs for the restricted group's assets and ReNew's
strong access to banks and capital markets.

ReNew Guarantee: The rating on the notes is not linked to ReNew's
credit quality. ReNew has provided a guarantee to the notes, but
the guarantee may not be available throughout the life of the notes
as it is due to fall away once the restricted group's gross debt to
EBITDA drops below 5.5x. The guarantee does not enhance the rating
on the notes as the credit risk profile of ReNew is assessed as
weaker than that of ReNew RG II. However, Fitch expects the
restricted group to benefit from ReNew's strong capabilities and
track record in development and maintenance of renewable power
projects.

DERIVATION SUMMARY

Greenko Dutch B.V (GBV, US dollar notes: BB), Greenko Solar
(Mauritius) Limited (GSM, US dollar notes: BB-) and Azure Power
Energy Ltd. (APEL, US dollar notes: BB-) are ReNew RG II's close
peers.

GBV's credit profile benefits from a more diversified portfolio
with a total capacity of 1,075MW spread across wind (41%), solar
(37%) and hydro (22%) with a long operating history. The rating on
GBV's notes also benefits from its expectation of improvement in
its financial profile, supported by management's commitment to
deleverage by retaining cash in the restricted group or using it to
add new renewable assets with little or no additional debt. Fitch
expects GBV's EBITDAR net interest cover to exceed 2x in the next
couple of years and net leverage, measured by net adjusted
debt/operating EBITDAR, to fall below 3.5x by FY23.

ReNew RG II has a higher proportion of solar assets, which are more
stable compared with wind and hydro. Fitch expects ReNew RG II to
benefit from higher initial EBITDAR net interest cover of 2x,
helped by covenanted interest income on initial advances to its
parent, which will improve to around 2.3x by FYE24. This, together
with restrictions on any additional indebtedness (excluding
working-capital debt) and the ISRA, leads to a similar overall
assessment, resulting in the same rating for the US dollar notes of
GBV and ReNew RG II.

ReNew RG II has higher exposure to relatively stable solar power
projects than GSM and lower counterparty risk as state-owned
distribution companies account for 75% of its offtake compared with
95% for GSM. ReNew RG II's offtake is also less concentrated by
customers than that of GSM. GSM's leverage profile is better than
that of ReNew RG II, but the net coverage ratios are similar. The
overall credit profile of GSM is weaker than that of ReNew RG II,
which has a stronger structure, and GSM is rated one notch lower
than ReNew RG II.

ReNew RG II's stronger financial profile, driven by its
expectations of stronger credit metrics and more stringent
restrictions on additional indebtedness, leads to its rating being
one notch higher than that of APEL despite the latter's fully solar
asset portfolio and stronger counterparties for nearly one-third of
its capacity.

KEY ASSUMPTIONS

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

  - Plant-load factors ranging from 19% to 29% for all assets

  - Plant-wise tariffs in accordance with respective PPAs

  - EBITDA margins of 79%-91% for all assets over the medium term

  - Average receivable days to improve to around 127 days by FYE21

  - ReNew to pay coupon of 8% per annum on USD120 million of
advances from the restricted group

  - Sufficient cash for operations to be maintained in the
restricted group over and above the six-month ISRA

  - No cash outflow to parent assumed in the fourth and fifth years
of the bond tenor even if DSCR of 1.3x is satisfied to preserve
cash for the bond refinancing

RATING SENSITIVITIES

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

  - Positive rating action is unlikely over the medium term as the
rating reflects anticipated improvement in credit metrics. The
business profile is not expected to change due to the restricted
nature of the pool.

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

  - Failure to reduce net leverage, measured by net adjusted
debt/operating EBITDAR, to below 4.0x by FYE24

  - EBITDAR net fixed-charge coverage of below 2.0x on a sustained
basis, or failure to improve it towards 2.3x by FYE24.

  - Significant, sustained deterioration of the restricted group's
receivable position

  - Significant increase in refinancing risk, including that caused
by major weakening of the parent's credit profile.

  - Failure to adequately mitigate foreign-exchange risk

LIQUIDITY AND DEBT STRUCTURE

Sound Liquidity: The refinancing of all of ReNew RG II's project
level debt by the US dollar notes has resulted in no debt
maturities in the medium term. In addition, Fitch expects free cash
flow to be positive. Management plans to pass on the cash flows
generated by ReNew RG II to the parent as interest on related-party
loans, repayment of related-party loans or inter-company loans
subject to the covenants of the notes - mainly DSCR of more than
1.3x and cash trap requirements. Fitch also expects the restricted
group to maintain minimum cash of about USD30 million, which is
over and above the ISRA and cash trap requirements.

ESG CONSIDERATIONS

ESG issues are credit neutral or have only a minimal credit impact
on the entity(ies), either due to their nature or the way in which
they are being managed by the entity(ies).

SHIVAKRITI INT'L: ICRA Withdraws B+ Rating on INR13cr Loan
----------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of
Shivakriti International Limited (SC), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund Based          13.00       [ICRA]B+(Stable) ISSUER NOT
                                   COOPERATING; Withdrawn

   Non-fund based
   limits              62.00       [ICRA]A4 ISSUER NOT
                                   COOPERATING; Withdrawn

Rationale

The ratings have been withdrawn in accordance with ICRA's policy on
withdrawal and suspension, and as desired by the company on receipt
of no objection certificate provided by the bank. ICRA does not
have adequate information to suggest that the credit risk has
changed since the time the ratings were last reviewed.

Key rating drivers and their description

Key rating drivers have not been captured for the rating withdrawal
due to inadequacy of incremental information since the time the
ratings were last reviewed.

Liquidity position
Liquidity position has not been captured for the rating withdrawal
due to inadequacy of incremental information since the time the
ratings were last reviewed.

Rating sensitivities
Sensitivities have not been captured for the rating withdrawal due
to inadequacy of incremental information since the time the ratings
were last reviewed.

Established in 1988 as a partnership firm, Shivakriti International
Limited (SC) is involved in construction and maintenance of roads
and bridges in Jharkhand. The firm is a registered Class IA
category contractor under Road Construction Department and Rural
Development Department. The firm is promoted by the Hazaribag-based
Kumar family, who have been in the civil-construction business for
around three decades.


SHIVAM COTTON: ICRA Reaffirms B Rating on INR8.0cr Cash Loan
------------------------------------------------------------
ICRA has reaffirmed ratings on certain bank facilities of Shivam
Cotton & Oil Industries' (SCOI), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund-based
   Term Loan           0.13        [ICRA]B(Stable); Reaffirmed

   Fund-based
   Cash Credit         8.00        [ICRA]B(Stable); Reaffirmed

   Unallocated
   Limits              1.52        [ICRA]B(Stable); Reaffirmed


Rationale
The rating reaffirmation remains constrained by the Shivam Cotton &
Oil Industries' (SCOI) weak financial risk profile, characterised
by its relatively small-scale operations, low profitability, weak
coverage indicators and high working capital intensity. The rating
continues to factor in the vulnerability of its profitability to
adverse fluctuations in raw material prices (raw cotton),
considering the inherently low value-added ginning business and the
intense competition in the industry. Further, its operations remain
exposed to regulatory risks with regard to the minimum support
price (MSP), which is set by the Government. ICRA also notes the
potential adverse impact on the firm's net worth and gearing level
in case of any substantial withdrawal from the capital accounts,
given its constitution as a partnership concern.

The rating, however, continues to favourably factor in the
extensive experience of the partners in the cotton industry, and
the proximity of the firm's manufacturing plant to raw material
sources.
The Stable outlook on the [ICRA]B rating reflects ICRA's opinion
that SCOI will continue to benefit from the past experience of the
partners in the cotton industry.

Key rating drivers and their description

Credit strengths

Extensive experience of partners in cotton industry – Established
in 2012, SCOI is managed by six partners, who have extensive
experience in the cotton ginning, pressing and crushing business
through their earlier association with other entities involved in
the cotton industry.

Location-specific advantage – The firm benefits in terms of low
transportation cost and easy access to raw cotton due to the
strategic location of its plant in the Saurashtra region of
Gujarat, an area of high cotton acreage and quality cotton crop.

Credit challenges

Weak financial risk profile – The firm's operating income (OI)
moderated by ~9% to INR31.79 crore in FY2019 from INR34.92 crore in
FY2018 due to a decline in sales volume of cotton bales. The
operating margin continues to remain low and moderated to 1.30% in
FY2019 from 2.58% in FY2018, owing to an increase in input costs
and low value-added operations. The net profit margin, however,
increased to 0.87% in FY2019 from 0.82% in FY2018, supported by the
receipt of VAT subsidy income in FY2019. The total debt moderated
in FY2019 to INR4.96 crore against INR7.60 crore in FY2018, with
the repayment of the entire term loan and lower utilisation of cash
credit limits. The capital structure, thereby, improved with a
gearing of 0.99 times as on FY2019-end against 1.66 times as on
FY2018-end. The debt protection metrics, however, remained weak
with interest coverage of 1.23 times (against 2.26 times in FY2018)
and Total Debt/OPBDITA of 11.96 times in FY2019 (against 8.43 times
in FY2018) due to moderation in the operating profitability. The
working capital intensity remained high, with NWC/OI at 22% in
FY2019, because of high inventory levels as on FY2019-end.

Vulnerability of profitability to adverse fluctuations in raw
material prices and regulatory changes – The firm's profitability
remains exposed to fluctuations in raw material (raw cotton)
prices, which depend on various factors such as seasonality,
climatic conditions, international demand and supply situations,
and export policy. Further, it is exposed to regulatory risks with
regards to the MSP set by the Government.

Intense competition and fragmented industry structure – The firm
faces intense competition from other small and unorganised players
in the industry, given commoditisation and low entry barriers. This
limits its pricing flexibility and bargaining power with customers
and puts pressure on its revenues and margins.

Risk associated with partnership constitution – SCOI, being a
partnership firm, is exposed to adverse capital structure risk,
wherein any substantial capital withdrawal could negatively impact
its net worth and capital structure.

Liquidity position: Adequate

SCOI's liquidity is adequate due to adequate cushion in working
capital limits (average utilisation stood at 37% from October 2018
to September 2019) and no impending debt repayments. Going forward,
the liquidity is expected to remain adequate given that there is no
major capex plan in the medium term; however, any substantial
capital withdrawal will remain a key monitorable.

Rating sensitivities

Positive Triggers - ICRA could upgrade SCOI's rating if substantial
growth in revenues and profitability leads to higher-than-expected
cash accruals, which along with better working capital management
strengthens the financial risk profile.

Negative Triggers - Negative pressure on SCOI's rating could arise
if any decline in revenues and profitability leads to
lower-than-expected cash accruals, or if any significant
debt-funded capital expenditure, or capital withdrawal or stretch
in the working capital impacts the capital structure and liquidity
profile.

Established in 2012, as a partnership firm, Shivam Cotton & Oil
Industries is in the business of ginning and pressing of raw cotton
and crushing of cottonseeds. Its manufacturing unit, located in
Saraya, Rajkot, is equipped with 24 ginning machines, one pressing
machine and five expellers with an input capacity of 19,200 metric
tonne per annum (MTPA) of raw cotton. At present, SCOI is managed
by six partners who have extensive experience in this industry.

In FY2019, the firm reported a net profit of INR0.28 crore on an
operating income of INR31.79 crore, as compared to a net profit of
INR0.29 crore on an operating income of INR34.92 crore in FY2018.
In H1 FY2020, on a provisional basis, the firm reported an
operating income of INR11.00 crore.

SHREE RAJ: ICRA Maintains 'D' Rating in Not Cooperating
-------------------------------------------------------
ICRA said the ratings for the INR30.00 crore bank facilities of
Shree Raj Mahal Diamonds Pvt. Ltd to remain under Issuer Not
Cooperating category. The long-term and short-term ratings are
denoted as [ICRA]D/[ICRA]D ISSUER NOT COOPERATING  monitor its
performance, but despite repeated requests by ICRA, the entity's
management has remained non-cooperative.

                    Amount
   Facilities     (INR crore)    Ratings
   ----------     -----------    -------
   Long Term-Fund     30.00      [ICRA]D; ISSUER NOT COOPERATING;
   Based/CC                      Rating Continues to remain under
                                 the 'Issuer Not Cooperating'
                                 category

   Short Term-       (20.00)     [ICRA]D; ISSUER NOT COOPERATING;
   Interchangeable               Rating Continues to remain under
                                 the 'Issuer Not Cooperating'
                                 category

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.

SRMD was incorporated in 2010 and is a part of the Delhi based
Shree Raj Mahal Group, which is engaged in the manufacturing,
wholesale and retail sales of gold and diamond. SRMDPL is a closely
held company promoted by Mr. Pradeep Kumar Goel and Mr. Ashok Kumar
Goel. The group has presence largely in gold jewellery and its
customers are primarily wholesalers and retailers based in New
Delhi.

SHREE SHANKAR: ICRA Withdraws B+ Rating on INR6.25cr Cash Loan
--------------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of Shree
Shankar Vijay Saw Mill (SSVSM), as:

                       Amount
   Facilities        (INR crore)    Ratings
   ----------        -----------    -------
   Cash Credit           6.25       [ICRA]B+(Stable); withdrawn

   Foreign Currency
   Loan                 (3.75)      [ICRA]A4; withdrawn

   Letter of Credit     12.50       [ICRA]A4; withdrawn

   Inland Letter of
   Credit               (7.50)      [ICRA]A4; withdrawn

   Letter of Comfort   (10.00)      [ICRA]A4; withdrawn

   Import Letter
   of Credit           (20.00)      [ICRA]A4; withdrawn

   Unallocated Limit     2.50       [ICRA]B+(Stable)/[ICRA]A4;
                                    Withdrawn

Rationale
The ratings of [ICRA]B+ and [ICRA]A4 has been withdrawn in
accordance with ICRA's policy on withdrawal and suspension and at
the request of the company and also based on no objection
certificate provided by the banker. ICRA does not have requisite
information to suggest any change in the credit risk since the time
the rating was last reviewed.

Key rating drivers and their description

Key Rating drivers has not been captured as the rated instrument(s)
are being withdrawn.

Liquidity position: Not Applicable

Rating sensitivities: Not Applicable

Established in 1944 as a partnership firm, SSVSM is involved in the
import of round log and cut-to-size Burmese and South African teak
timber and hardwood. It caters to the domestic market with ~70%
revenues being generated from southern India. SSVSM mainly deals in
teak wood (~90-95% of its total sales) and hard wood (~5- 10% of
the total sales). The traded timber is used for door frames,
furniture, interiors, etc. The firm imports Burmese and African
timber routed mainly through Dubai, Singapore and Hong Kong. The
timber is primarily imported through the sea ports of Mumbai,
Tuticorin, Mangalore and Kandla. BE has timber yards at all these
ports to facilitate the warehousing and supply of timber logs. It
has timber yards at all these ports to facilitate the warehousing
and supply of timber logs. SSVSM's head office is on Reay Road in
Mumbai. Bhagawati Enterprises ([ICRA]B+(Stable)/[ICRA]A4 withdrawn
in February 2020)) is an associate concern of SSVSM, which is
involved in the same business sector.

SHRI GANESH: ICRA Keeps C- Rating on INR3.0cr LT Loan in Not Coop.
------------------------------------------------------------------
ICRA said the ratings for the INR6.00 crore bank facilities of Shri
Ganesh Fire Equipments (P) Limited continue to remain under Issuer
Not Cooperating category. The long-term rating is denoted as
[ICRA]C- ISSUER NOT COOPERATING and short-term rating is denoted as
[ICRA]A4 ISSUER NOT COOPERATING.

                    Amount
   Facilities     (INR crore)   Ratings
   ----------     -----------   -------
   Long Term-Fund      3.00     [ICRA]C-; ISSUER NOT COOPERATING;
   Based/CC                     Continues to remain under the
                                'Issuer Not Cooperating' category

   Short Term–Non      3.00     [ICRA]A4; ISSUER NOT
COOPERATING;
   Fund Based                   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.

Shri Ganesh Udyog (India) was established in 1981 as a
proprietorship firm of Mr. Shri Gahesh Lal. Subsequently the firm
was reconstituted into a private limited company (Shri Ganesh Fire
Equipment Private Limited - SGFEPL) in 2010.  Currently, it is
being managed by Mr. Lal's son, Mr. Raj Kishore. The company has
three manufacturing facilities, two in Delhi and one in Bihar.
SGFEPL, an ISO 9001:2008 certified company has been engaged in the
manufacturing of complete range of fire fighting vehicles, pumps,
equipments and accessories. SGFEPL is engaged in fabrication of
fire fighting vehicles like water tender, foam tender, DCP tender,
crash fire tender, trailer fire pumps etc. and special purpose
vehicles such as water cannon vehicles for riot control
operations.


SPARTAN ENGINEERING: ICRA Withdraws B+ Rating on INR25cr Loan
-------------------------------------------------------------
ICRA has withdrawn the ratings on certain bank facilities of
Spartan Engineering Industries Private Limited, as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   LT Scale: Fund      4.48        [ICRA]B+ (Stable) ISSUER NOT
   Based term                      COOPERATING; Withdrawn
   loan limits         
                                   

   LT Scale: Fund     25.00        [ICRA]B+ (Stable) ISSUER NOT
   Based cash                      COOPERATING; Withdrawn
   credit limits      
                                   
   LT Scale: Fund     14.00        [ICRA]A4 ISSUER NOT
   Based term                      COOPERATING; Withdrawn
   loan limits        
                                   
   ST Scale:           0.02        [ICRA]A4 ISSUER NOT
   Unallocated                     COOPERATING; Withdrawn
   Limits             
                                   
   ST Scale:          (4.32)       [ICRA]A4 ISSUER NOT
   Interchangeable                 COOPERATING; Withdrawn
   Limits            
                                   
Rationale

The ratings assigned to Spartan Engineering Industries Private
Limited have been withdrawn at the request of the company, based on
the no-objection certificate provided by its banker. ICRA is
withdrawing the rating and that it does not have information to
suggest that the credit risk has changed since the time the rating
was last reviewed. ICRA has withdrawn the Stable outlook on the
long-term rating.

Key rating drivers and their description

Key rating drivers have not been captured as the rating is being
withdrawn.

Liquidity position
Not captured as the rating is being withdrawn.

Rating sensitivities
Not captured as the rating is being withdrawn.

Spartan manufactures passenger and material hoists, bar-cutting and
bar-bending machines used in construction activities. It also
trades in imported construction equipment, such as rope suspended
platforms, rack and pinion hoists, tower cranes, wire hoists and
spares. The company has branch offices in Ahmedabad, Bangalore,
Chennai, Hyderabad, Kolkata, New Delhi, Noida and Pune. Based at
Andheri, Mumbai, the company's manufacturing activities are carried
out from two rented manufacturing facilities at Ambernath in the
outskirts of Mumbai.


SUBHANG CAPSAS: ICRA Keeps B+ Rating in Not Cooperating
-------------------------------------------------------
ICRA said the long-term rating for the bank facilities of Subhang
Capsas Pvt. Ltd. (SCPL) continues to remain under 'Issuer Not
Cooperating' category.

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Cash Credit          4.50       [ICRA]B+(Stable) ISSUER NOT
                                   COOPERATING; Rating continues
                                   to remain in 'Issuer Not
                                   Cooperating' category

   Term Loan            1.46       [ICRA]B+(Stable) ISSUER NOT
                                   COOPERATING; Rating continues
                                   to remain in 'Issuer Not
                                   Cooperating' category

   Unallocated Limits   0.54       [ICRA]B+(Stable) ISSUER NOT
                                   COOPERATING; Rating continues
                                   to remain in '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 issuer's 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 December 2011, SCPL is in the business of
manufacturing moulded products for packaging solutions. It
manufactures blow moulded containers with capacity ranging from 1
litre to 120 litres. The firm caters to customers across various
business segments such as chemicals, pesticides, food and
processing and lube oil.

VATSALYA PAPER: ICRA Assigns B+ Rating to INR26.22cr Loan
---------------------------------------------------------
ICRA has assigned rating to the bank facilities of Vatsalya Paper
Industries LLP's (VPIL), as:

                     Amount
   Facilities      (INR crore)     Ratings
   ----------      -----------     -------
   Fund-based
   Term Loan           26.22       [ICRA]B+ (Stable); Assigned

   Fund-based
   Cash Credit         17.00       [ICRA]B+ (Stable); Assigned

   Non-fund-based
   Bank Guarantee       1.70       [ICRA]A4; Assigned

   Unallocated
   Limits               2.57       [ICRA]B+(Stable)/A4; Assigned

   Fund-based
   Term Loan           26.22       [ICRA]B+ (Stable); Assigned

   Fund-based
   Cash Credit         17.00       [ICRA]B+ (Stable); Assigned

   Non-fund-based
   Bank Guarantee       1.70       [ICRA]A4; Assigned

   Unallocated
   Limits               2.57       [ICRA]B+(Stable)/A4; Assigned


Rationale

The assigned ratings are constrained by VPIL weak financial risk
profile, characterised by operating losses, poor capital structure
and coverage indicators, stretched liquidity with high working
capital intensity and almost full utilisation of working capital
limits. The rating is further constrained by the lack of
diversification in the product portfolio and the vulnerability of
its profit margins to volatility in waste paper prices, power and
fuel (coal) cost and foreign currency exchange. Also, the
fragmented industry structure and the intense competition exert
pricing pressure and keep the profitability under check. ICRA also
notes that VIPL is a partnership firm and any significant
withdrawals from the capital account could adversely impact its net
worth and thereby its credit profile.

The ratings, however, favourably factor in the experience of VPIL's
promoters in the kraft paper manufacturing industry and the
location advantage that the firm has by virtue of its proximity to
the port (which eases its imports from the overseas market) and
customers.

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

Key rating drivers and their description

Credit strengths

Extensive experience of partner in paper industry - The key
promoter, Mr. Ankit Dalmia, has more than eight years of experience
in the kraft paper manufacturing industry through his association
with Sankalp Paper Industries Pvt. Ltd. and Sankalp Paper Mills
Pvt. Ltd.

Proximity to raw material sources and customers - The firm enjoys
location-specific advantage owing to its proximity to the Kandla
and Mundra ports, as it meets its raw material requirement through
imported waste papers. The firm also benefits in terms of proximity
to customers as it sells kraft paper primarily to textile players
in Gujarat and Maharashtra.

Credit challenges

Weak financial risk profile – VPIL commenced its operations in
September 2018 and reported revenue of INR54.4 crore in seven
months of operations in FY2019, which further increased to INR92.6
crore in 9MFY2020. VPIL reported an operating loss of INR2.3 crore
and a net loss of INR11.5 crore in FY2019. VPIL's capital structure
and coverage indicators are poor due to initial debt-funded capex
and erosion of net worth due to loss. The working capital intensity
(NWC/OI) remained high (33% in FY2019) with almost full utilisation
of working capital limits.

Product concentration risk and fragmented industry structure –
VPIL deals in a single product, i.e. kraft paper, and thus remains
exposed to product concentration risk. Further, the kraft paper
industry is highly fragmented with stiff competition from numerous
organised as well as unorganised players.

Volatility of profitability to adverse fluctuations in waste paper,
power and fuel cost and adverse currency fluctuations- Waste kraft
paper (i.e. used corrugated boxes, old newspapers, used white
paper, etc) comprises the major raw material cost, followed by
power and fuel (coal) cost. Thus, VPIL's contribution margins (and
thus the profitability) remain exposed to volatility in waste paper
and coal prices. Also, as the firm imports in foreign currency and
does not hedge its exposure, thus its profitability remains
vulnerable to adverse foreign exchange fluctuations.

Risk inherent in partnership firm - Higher reliance on external
debt has resulted in an aggressive capital structure for the firm.
Furthermore, any capital withdrawal, given the partnership
constitution, could adversely impact the capital structure as seen
in the recent past.

Liquidity position: Stretched

VPIL's liquidity position remains stretched, marked by sizeable
debt repayment and almost full utilisation of cash credit limits,
more so as expected cash flows will remain tight to support
repayments. Hence, scaling up of operations and sustaining
profitability levels as per expected parameters will remain
critical. Further, the promoter's support in case of cash flow
mismatches would also remain crucial.

Rating sensitivities

Positive triggers: ICRA could upgrade VPIL's ratings if the firm
demonstrates sustained improvement in its scale and profitability,
which lead to higher-than-expected cash accruals. Moreover, a
strong net worth and improvement in working capital management,
which improve the debt coverage indicators and the liquidity on a
sustained basis may lead to a rating upgrade.
Negative triggers: Negative pressure on the VPIL's ratings could
arise if a substantial decline in revenue and profitability leads
to inadequate cash accruals. Additionally, any capital withdrawal
or substantial debt-funded capex or a stretch in the working
capital cycle that further weakens the debt coverage indicators and
the liquidity profile will be a credit negative.

Established in March 2017, Vatsalya Paper Industries LLP (VPIL) is
a limited liability partnership (LLP) promoted by Mr. Ankit Dalmia
and Vinay fashion LLP to manufacture of kraft paper. VPIL's
commenced its operations in September 2018 with an installed
capacity to manufacture 81,250 MTPA of kraft paper. The firm
manufactures kraft paper with burst factor (BF) range of 14-28 at
its plant located in Surat, Gujarat. The key promoter, Mr. Ankit
Dalmia, has experience in manufacturing kraft paper through his
association with Sankalp Paper Industries Pvt. Ltd. and Sankalp
paper Mills Pvt. Ltd.

In FY2019, the firm reported a net loss of INR11.51 crore on an
operating income of INR54.4 crore.

VEDA BIOFUEL: Ind-Ra Lowers Long Term Issuer Rating to 'D'
----------------------------------------------------------
India Ratings and Research (Ind-Ra) has downgraded Veda Biofuel
Limited's (VBFL) Long-Term Issuer Rating to 'IND D (ISSUER NOT
COOPERATING)' from 'IND BB- (ISSUER NOT COOPERATING)'. 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 instrument-wise rating action is:

-- INR773 mil. Long-term loans downgraded with IND D (ISSUER NOT
     COOPERATING) rating.

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

KEY RATING DRIVERS

The downgrade reflects the National Company Law Tribunal’s order
dated February 12, 2019, to commence the liquidation of VBFL.

RATING SENSITIVITIES

Positive: Timely debt servicing for at least three consecutive
months could result in an upgrade.

COMPANY PROFILE

Formed in 2010, VBFL manufactures extra neutral alcohol/ethanol /
industrial alcohol, with carbon dioxide and cattle feed as
by-products and generates power from its 3MW captive power plant.



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

BUMI SERPONG: Fitch Affirms BB- LT IDR, Outlook Stable
------------------------------------------------------
Fitch Ratings affirmed Indonesia-based homebuilder PT Bumi Serpong
Damai Tbk's Long-Term Foreign-Currency Issuer Default Rating at
'BB-'. The Outlook is Stable.

BSD's rating is supported by a large, low-cost land bank at its
flagship project in BSD City where the company has developed a
low-risk township development model, which has enabled it to
maintain positive operating cash flows. The affirmation factors in
its expectation of a pre-sales recovery, supported by moderate
growth in its residential segments, and pent-up demand for
commercial land-bank sales in BSD City, which will help the company
return to its historically low leverage after 2021. Fitch has also
adjusted BSD's sensitivities to better align them with those of its
peers.

KEY RATING DRIVERS

Lower Attributable Pre-Sales: BSD's attributable pre-sales, which
excludes land sales to joint ventures but includes pre-sales at
joint ventures, dipped to IDR4.2 trillion in 2019, the lowest in
the past five years and below the IDR5 trillion Fitch expects for a
'BB-' rating. Nevertheless, Fitch expects sales to recover to
around IDR5.0 trillion in 2020 and IDR5.5 trillion in 2021, driven
by the pent-up demand for commercial land bank, and growth in the
residential segment. BSD is on track to book IDR300 billion in
commercial land sales in 1Q20 versus its full-year expectation of
IDR800 billion. BSD has maintained stable pre-sales in its township
residential segment at around IDR2.5 trillion per year in the past
three years, and Fitch expects an increase of around 5%-10%
annually. This will be supported by new product launches in
existing and new townships.

The decline in 2019 pre-sales was primarily driven by lower
commercial land-bank sales in BSD City, which tend to be more
volatile and bulkier than residential sales. BSD only booked IDR300
billion of commercial land sales in 2019, lower than the average of
around IDR1.5 trillion in the past five years. BSD said commercial-
land pipeline sales remain strong, but transactions took longer to
close. This was likely due to potential buyers holding off during
the presidential election up to the inauguration in October.

Large, Low-Cost Land Bank: BSD's large and low-cost land bank in
BSD City contributes to its positive operating cash flows and low
leverage. BSD had enough land for at least 15 years of pre-sales at
BSD City as of end-2019. BSD's ability to cater to a wide spectrum
of product demand and price points through multiple projects within
BSD City, and its capacity to switch between products to match
demand, mitigate the company's concentration risk from the
township. BSD's large land bank also provides the company with
financial flexibility to scale back land acquisitions when
pre-sales are weak. BSD acquired land bank of only IDR600 billion
in 2019 versus an average of IDR1.5 trillion in 2016-2018.

New Products Support BSD City: The shortfall in commercial land
sales was moderated by higher residential pre-sales at BSD City
from the launch of new products priced at IDR1 billion per unit or
lower to target first-time home buyers. BSD City's total
residential pre-sales of around IDR1.7 trillion in 2019 were higher
than its IDR1.5 trillion expectation. Fitch believes residential
pre-sales are more favourable than commercial land sales as they
lend greater stability to the company's cash flows.

Capex Drives Up Leverage: BSD has been increasing its
non-development income through acquisitions or the building of
investment properties in Jakarta. BSD acquired two office towers in
Jakarta's central business district in 2017, and is constructing
three new offices and a new shopping mall, which is due to open in
July 2020. BSD is also investing in a 10km toll-road project, with
the first 5km opening in 2021. These investments contributed to the
increase in BSD's net debt to IDR7 trillion by end-2019 from IDR3
trillion in 2017.

Fitch believes BSD has sufficient rating headroom to execute these
investments, supported by its large, low-cost land bank and record
in achieving at least IDR5 trillion in attributable pre-sales.
Fitch expects BSD's leverage, measured as net debt/adjusted
inventory, to rise to 32% in 2021 as the company's capex schedule
peaks, but remain within its negative sensitivity of below 40%. BSD
has no plans for significant debt-funded capex after 2021, and this
should help the company deleverage. The risk from its elevated
leverage is offset by BSD's rising non-development EBITDA, which
Fitch expects will increase to around IDR2 trillion by 2022 from
IDR1.2 trillion in 2019, providing a comfortable net interest
coverage ratio of around 2x.

Weak Linkage with Parent: Fitch assesses the strength of the ties
between BSD and its parent, Sinar Mas Land Limited (SML), and their
relative profiles. Fitch assesses the legal and operational linkage
as weak, and believe BSD displays a stronger credit profile than
SML, which could constrain BSD's rating. The weak linkage is
reflected in the moderate ring-fencing at BSD under its US dollar
bond documentation as well as Indonesian stock-exchange
regulations, which limit related-party transactions and prevent BSD
from carrying out related-party transactions if they are
loss-making. BSD's acquisition of Sinarmas MSIG Tower in 2017 from
an affiliated company was not classified as a conflict of interest
based on local regulations as it was related to the company's core
business. BSD and SML also maintain separate operations and have no
intercompany transactions.

Currency Risks Manageable: BSD does not contractually hedge its
exposure to currency fluctuations arising from its US dollar bonds
and domestically derived cash flows. However, the impact on the
company from depreciation in the rupiah in the short term is
mitigated by BSD's policy of maintaining a US dollar cash balance
of at least six months of its monthly requirements, although in
practice cash and equivalents denominated in US dollars have been
much higher (end-September 2019: USD58 million in cash and time
deposits and USD179 million in mutual-fund investments). Fitch
believes BSD's US dollar cash and cash equivalents and its high
profit margins from property sales mitigate foreign-currency risks
over the short-to-medium term.

DERIVATION SUMMARY

BSD's rating can be compared with that of other Indonesian property
developers such as PT Ciputra Development Tbk (BB-/Negative) and PT
Pakuwon Jati Tbk (BB/Stable) as well Chinese developer KWG Group
Holdings Limited (BB-/Stable).

Ciputra's significant exposure to the middle-low market and the
residential segment has limited the flexibility in its product
offerings to a greater degree than BSD. As a result, Fitch believes
there is greater risk for Ciputra than for BSD in generating
attributable pre-sales of IDR5 trillion, which is reflected in
Ciputra's Negative Outlook. Both their profiles benefit from large,
low-cost land banks and strong franchises in township developments.
Ciputra and BSD also have adequate non-development coverage, and
have maintained a relatively low leverage profile for their
ratings. Therefore, both are rated at the same level.

Pakuwon is rated one notch higher than BSD due to its large
non-development income base relative to its debt. The
non-development income provides better cash flow stability than
BSD's exposure to the volatility in property-development sales.
Pakuwon's stronger profile relative to BSD's is also supported by a
more conservative balance sheet, indicated by leverage that is
significantly lower than that of BSD.

KWG, like BSD, also benefits from a low-cost land bank that
supports high and stable margins. KWG benefits from a strong
foothold in China's Guangzhou city where land prices are lower than
those in other Tier 1 cities, while BSD has a large land-bank
inventory at a historical acquisition cost of around IDR0.5
million/sq m.

KWG has larger and more diversified property-development projects
versus BSD's concentrated development in BSD City. However, this is
compensated by BSD's longer land-bank reserve life of more than 15
years compared with around five years for KWG, and its
non-development income stream. As a result, both companies are
rated at the same level.

KEY ASSUMPTIONS

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

  - Attributable pre-sales to improve to IDR4.8 trillion in 2020
and IDR5.4 trillion in 2021

  - Land sale to joint venture of IDR2 trillion executed as planned
in 2020 and 2021

  - Capex totalling IDR3 trillion in 2020 and IDR2 trillion in
2021

RATING SENSITIVITIES

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

  - Non-development EBITDA less income attributable to
minorities/net interest expense at more than 2.5x

  - Non-development EBITDA less income attributable to minorities
of more than USD120 million with top five assets contributing less
than 50%

  - Leverage, measured as net debt/net inventory, at less than 30%

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

  - If non-development EBITDA less income attributable to
minorities/net interest expense remains above 1x, leverage will be
sustained above 40%

  - Attributable pre-sales of less than IDR5 trillion on a
sustained basis

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity, Laddered Maturities: BSD plans to call its
USD300 million bond when the call date is due in April 2020, using
the proceeds from a USD300 million bond issued in January 2020.
BSD's next significant maturity after the refinancing is a USD270
million note due in 2023. BSD's liquidity is supported by a large
cash balance, diversified funding access to domestic and
international bond markets and access to bank loans. BSD's large
pool of unpledged assets also provides the company with additional
financing avenues if required. BSD had at least around IDR24
trillion (USD1.7 billion) of unpledged assets at end-2019, and
IDR1.9 trillion in undrawn committed bank lines for construction.

BSD's property-development model allows for financing flexibility,
including timing construction costs with sales, and the
discretionary nature of acquiring land bank. BSD's long land
reserve life also means that the company has the flexibility to
conserve cash when pre-sales are low.

SUMMARY OF FINANCIAL ADJUSTMENTS

Income attributable to minorities is deducted from non-development
EBITDA, versus dividends attributable to minorities previously,
since income is now larger than actual dividends paid.

Unamortised debt issuance cost is added back to debt to reflect
fair value of the debt. Land bank for development, advances for
land-bank purchases, and advances from customers are part of
working capital due to the nature of BSD's business in land
development and sales.

ESG CONSIDERATIONS

ESG issues are credit neutral or have only a minimal credit impact
on the entity(ies), either due to their nature or the way in which
they are being managed by the entity(ies).



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

MIK HOLDING: Fitch Withdraws B- LT IDR due to Insufficient Info
---------------------------------------------------------------
Fitch Ratings has withdrawn the Long-Term Issuer Default Ratings on
MIK Holding JSC and Mongolian Mortgage Corporation HFC LLC,
collectively referred to as MIK, at 'B-' with a Stable Outlook.
Fitch has also withdrawn the rating of 'B-' with a Recovery Rating
of 'RR4' of the USD300 million 9.75% senior notes due 2022 issued
by MIK HFC and guaranteed by MIK Holding.

The ratings were withdrawn due to insufficient information being
provided.

KEY RATING DRIVERS

Fitch is withdrawing the ratings as MIK has chosen to stop
participating in the rating process. Therefore, Fitch will no
longer have sufficient information to maintain the ratings.
Accordingly, Fitch will no longer provide ratings or analytical
coverage for MIK.

RATING SENSITIVITIES

No longer relevant as the ratings have been withdrawn.

The issuer has chosen to stop participating in the rating process.
Therefore, Fitch will no longer have sufficient information to
maintain the ratings.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance was a score of 3 when Fitch affirmed the
ratings in March 2019 - 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.

Prior to withdrawal, Fitch assessed MIK to have ESG Relevance
Scores of 4 for group structure and 5 for management and strategy
due to MIK's evolving business model, which is considered highly
sensitive to government policy. This had a negative impact on the
credit profile and was relevant to the ratings in conjunction with
other factors. The ESG scores have also been withdrawn.



=====================
P H I L I P P I N E S
=====================

RIZAL COMMERCIAL: Fitch Affirms Then Withdraws BB+ LT IDR
---------------------------------------------------------
Fitch Ratings affirmed Rizal Commercial Banking Corporation's
Long-Term Issuer Default Ratings at 'BB+', and its Viability Rating
at 'bb+'. Its Outlooks are Stable. Concurrently, Fitch is
withdrawing all ratings on RCBC for commercial reasons.

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

KEY RATING DRIVERS

There has been no material change in RCBC's credit profile since
the previous rating actions on November 7, 2019.

RATING SENSITIVITIES

Rating sensitivities are not applicable as the ratings have been
withdrawn.

ESG CONSIDERATIONS

ESG issues are credit neutral or have only a minimal credit impact
on the entity(ies), either due to their nature or the way in which
they are being managed by the entity(ies).



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

HONESTBEE PTE: Lays Off 80% of Staff, Delays Salary Payment
-----------------------------------------------------------
Choo Yun Ting at The Business Times reports that struggling
start-up Honestbee has laid off about 80 per cent of its staff in
the wake of the temporary closure of its grocery store Habitat.

Staff have also been told that payment of their salaries and
Central Provident Fund (CPF) contributions for last month will be
delayed "until further funding can be secured," BT relates.

In a statement on March 10, a spokesman for the firm said the job
cuts were made as it "does not foresee operating Habitat (at) its
full strength over the next few weeks," the report relays.

According to BT, the start-up had closed Habitat temporarily from
Feb. 10, citing the coronavirus outbreak and a fall in the
supermarket's walk-in traffic as reasons.

The majority of the 100 or so employees who have been laid off, out
of Honestbee's headcount of 130 here, were "operational staff in
culinary, service, retail and warehousing" at Habitat, the
spokesman said.

The temporary closure of Habitat has impacted the firm's revenues,
which led to the job cuts and delayed payment of salaries, the
spokesman, as cited by BT, added.

On how the laid-off staff will be paid, Honestbee said the closure
"has made it difficult for the company to commit on payment terms
until further funding can be secured", but it has "no intention of
shortchanging its employees".

The Business Times reported that some of Honestbee's foreign
employees were notified that their work passes had been cancelled
by the Ministry of Manpower (MOM) before they were informed by the
start-up about their retrenchment.

These employees' work passes were cancelled in tandem with their
retrenchment, the firm said.

One management staff member was "voluntarily made redundant", BT
reported.

This is not the first time the start-up has been late in paying its
employees, the report notes. It has owed more than 200 of its
former employees around $1 million in salaries and CPF
contributions previously. Those payments were completed at the
start of last month, an MOM spokesman confirmed in an earlier
statement.

BT says the Tripartite Alliance for Dispute Management had
previously received claims from more than 60 of the start-up's
former employees for non-payment of salaries.

The start-up, which is currently under court protection from its
creditors -- it owes them about US$230 million (SGD320 million) --
moved out of its Delta House headquarters into an Upper East Coast
Road shophouse unit last month.

According to BT, Honestbee has moved kitchen equipment and
furniture to the unit and intends to set up a food and beverage
outlet.

                           About honestbee

Headquartered in Singapore, Honestbee Pte. Ltd. --
https://honestbee.sg/ -- is an online grocery and food delivery
service as its core business, a concierge service, and also aparcel
delivery service for its B2B clients.

As reported in the Troubled Company Reporter-Asia Pacific on Aug.
7, 2019, Inside Retail Asia said that sinking in debts of around
US$180 million, Honestbee is seeking court protection from
creditors to allow it to restructure.   The company has applied to
the High Court to commence a process which reportedly would give it
six months protection from creditors lodging winding up procedures
or other legal attempts to recover what they are owed.

Honestbee has received demands from creditors claiming SGD6
million, and owes about US$209 million to its largest creditors,
the embattled grocery startup revealed in an affidavit filed at a
Singapore High Court pre-trial conference on August 6, according to
The Business Times.

PUMA ENERGY: Moody's Downgrades CFR to B1, Outlook Negative
-----------------------------------------------------------
Moody's Investors Service downgraded Puma Energy Holdings Pte.
Ltd's corporate family rating to B1 from Ba3. Concurrently, Moody's
has affirmed Puma Energy's Ba3-PD probability of default rating as
well as the Ba3 ratings assigned to Puma International Financing
S.A.'s senior unsecured notes guaranteed by Puma Energy. The
outlook for both entities remains negative.

RATINGS RATIONALE

The downgrade of CFR reflects the increase in consolidated
financial leverage resulting from Puma Energy's repurchase of
11.04% of its ordinary shares from Trafigura Pte Ltd., following
the latter's buy-back of the shares from Cochan Holdings. Puma
Energy will finance the $390 million share repurchase with a
shareholder loan from Trafigura. This shareholder loan does not
qualify for equity treatment under Moody's Hybrid Equity Credit,
Cross-Sector Rating Methodology.

In 2020, Moody's expects any uplift in Puma Energy's adjusted
EBITDA to be modest. The Angola-based operations are unlikely to
stage any meaningful recovery given the uncertainty over the
phasing of any future pump price adjustments, even though
continuing volume growth and operational efficiency improvements
should more than offset the loss of contributions from the sale of
the Paraguay and Australia businesses, scheduled to be closed in Q1
and Q2 2020 respectively.

Although Puma Energy intends to use the combined proceeds of around
$450 million raised from the divestments to pay down debt, Moody's
believes that the shareholder loan contracted to fund the share
repurchase will keep the group's adjusted total debt to EBITDA
around 5.7x by year-end 2020.

However, Moody's affirmation of the Ba3 backed senior unsecured
ratings reflects the subordinated status of the Trafigura
shareholder loan, which will rank behind Puma Energy's senior debt
obligations. The shareholder loan agreement will include neither
event of default nor acceleration rights clauses. Interest on the
loan will be non-cash and added to the principal amount, which will
be repayable either in one single instalment on January 25, 2027 or
from the proceeds of an equity capital increase. Nevertheless,
Moody's notes that the shareholder loan ranks senior to all equity
and therefore is not aligned with the interests of all equity
holders.

RATING OUTLOOK

The negative outlook largely reflects the persistent pressure
weighing on Puma Energy's operating profitability and the execution
risk associated with its deleveraging strategy amid considerable
uncertainty weighing on the global macro-economic environment.

The stabilisation of the outlook will be predicated on Puma
Energy's ability to achieve some, even modest, recovery in
operating results in 2020 while successfully completing the
recently announced divestments. This should allow some material
deleveraging with adjusted total debt to EBITDA falling back below
a level of 5.5x in the next 12-18 months.

ESG CONSIDERATIONS

Refining and marketing is among the 11 sectors identified by
Moody's with elevated credit exposure to environmental risk. The
sector is exposed to a decrease in demand for oil products in the
long term and tightening regulations. However, Puma Energy's strong
focus on developing markets in Africa, Central and South America,
and Asia should leave it relatively sheltered from a potential
rapid uptake of electric vehicles.

From a corporate governance standpoint, Moody's views positively
Cochan's reduced influence following the reduction of its stake to
5% in Puma Energy's share capital. Moody's understands that Puma
Energy shareholders' agreement will be amended so that Cochan
ceases to have certain rights, including the right to appoint a
director to the company's board.

Global commodity trader Trafigura will continue to hold less than
50% of the voting right in Puma Energy and will be in minority at
the Board. Trafigura supplies about two-thirds of the refined oil
products distributed and marketed by Puma Energy, which also uses
its parent's trading platforms to hedge its fuel inventories. In
this context, Moody's notes that any material weakening of
Trafigura's credit profile may have a detrimental effect on Puma
Energy. Sonangol, the state oil company of Angola, which is the
group's other major shareholder, with a 31.5% stake, supplies all
of Puma Energy's oil products distributed in Angola.

Trafigura and Sonangol have historically provided financial support
for Puma Energy's growth via shareholder loans, committed borrowing
facilities, capital increases and conversion of loans to equity.
Following the appointment of Rene Medori, as independent Chairman,
Puma Energy's counts eight board members. Three are appointed by
Trafigura, two by Sonangol two are independent and the last one is
Puma Energy CEO.

LIQUIDITY

Moody's views Puma Energy's current liquidity position as adequate
despite its limited access to multiyear committed bank facilities.
As of the end of September 2019, Puma Energy held unrestricted cash
and cash equivalents of around $543 million and had total
availabilities under committed bank credit lines of $760 million,
of which $370 million under RCFs expiring within 12 months. In
addition, Puma continues to have access to a $500 million committed
shareholder loan from Trafigura, which remains undrawn and was
extended to September 2023. This compares with debt (including
lease) liabilities falling due within 12 months of $518 million as
of the end of September 2019. Also, Moody's expects tight working
capital management and moderation in capital spending to help Puma
Energy remain FCF positive in the next 12-18 months and within the
financial covenants governing its bank facilities.

STRUCTURAL CONSIDERATIONS

The one-notch uplift reflected in the Ba3 rating assigned to Puma
International Financing S.A.'s senior unsecured notes relative to
the B1 CFR reflects the positive uplift provided by the $390
million PIK subordinated shareholder loan.

Also, the senior unsecured notes rank pari passu with other debt
located at various operating subsidiaries of the group. The bulk of
the group's trade payables are contracted at the HoldCo level while
the shift in the group's funding strategy towards HoldCo debt in
recent years, has led to the reduction in OpCo debt versus HoldCo
debt from 75% in December 2013 to less than 10% in September 2019.
This change in the funding strategy reduces the amount of priority
debt at various operating subsidiaries of the group, effectively
ranking the bondholders pari passu with debt at the OpCo level.

WHAT COULD CHANGE THE RATINGS UP/DOWN

The ratings may be downgraded should Puma Energy fail to (i)
achieve a material and sustainable recovery in operating
profitability; (ii) reduce financial leverage after its planned
divestments so that Moody's-adjusted total debt to EBITDA falls
below 5.5x in the next 12-18 months; or (iii) maintain adequate
liquidity, including insufficiently pro-active management of its
debt maturity profile.

While highly unlikely at this juncture, a rating upgrade would
require (i) some material strengthening in the group's business
profile underpinning a sustained improvement in operating
profitability and (ii) some permanent deleveraging ensuring that
Moody's-adjusted total debt to EBITDA keeps below 4.5x.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Midstream
Energy published in December 2018.

COMPANY PROFILE

Puma Energy Holdings Pte. Ltd is an integrated midstream and
downstream oil products group active in Africa, Latin America,
North East Europe, the Middle East and Asia-Pacific. Trafigura
Beheer B.V., a global commodity and logistics firm, established
Puma Energy in 1997 as a storage and distribution network in
Central America, and the company has since grown into a global
network operating across 46 countries worldwide, with approximately
7.6 million cubic metres of storage capacity and a network of
approximately 3,000 retail service stations across Africa, Latin
America, Asia and Australia. In the twelve months to the end of
September 2019, Puma Energy sold 25 million cubic metres of oil
products and its facilities handled around 16 million cubic metres
of petroleum products.



===============
X X X X X X X X
===============

[*] IMF Makes Available $50 Billion to Help Address Coronavirus
---------------------------------------------------------------
Jesse Pound at CNBC reports that International Monetary Fund
Managing Director Kristalina Georgieva announced a $50 billion aid
package on March 11 to help fight the coronavirus.

Ms. Georgieva said on CNBC's "Squawk Alley" that the money is
available "immediately" and is for low-income and emerging market
countries.

Most of the money will be interest-free, and countries do not need
to have a preexisting program with the IMF to participate, she
said, CNBC relays.

"What we're doing right now is reviewing country by country what
are the financial needs, and engaging with these countries to make
sure they are aware of this resource and we can immediately respond
to them," CNBC quotes Ms. Georgieva as saying. "We're in an early
stage of engagement, but I can assure you that we will act very
quickly as requests come."

There are more than 90,000 confirmed cases of the coronavirus
around the world, and the outbreak has spread to six continents,
the report notes. The epidemic has led to severe travel
restrictions in key economic hubs in China and Italy.

The IMF would like to see the money used first to bolster
health-care systems and then for targeted fiscal stimulus programs
and to help liquidity, Ms. Georgieva said, CNBC relays. The
organization is also working with the World Bank to help countries
obtain some of the medical equipment, such as medical masks and
respiratory equipment, that is used to combat the virus.

According to CNBC, the World Bank announced a $12 billion program
on March 9 to help poor nations deal with the health and economic
consequences of the epidemic.

Countries around the world should also consider creating measures
to help the economy during an economic slowdown, such as offering
lines of credit to smaller businesses and programs to pay workers
who have to stay home, CNBC says.

"We think it is now the time to put in place precautionary measures
should the outbreak become more severe," Ms. Georgieva, as cited by
CNBC, said.

She said earlier on March 11 at an event in Washington, D.C., that,
"We are faced with a generalized weakening in demand, and that goes
through confidence and through spillover channels, including trade
and tourism, commodity prices, tightened financial conditions.

"They call for an additional policy response to support demand and
ensure an adequate supply of credit," she added.

The announcement comes amid coordinated action from global central
banks, CNBC notes. The U.S. Federal Reserve announced a 50 basis
point cut on March 10 and the Bank of Canada followed up with a
move of the same magnitude on March 11, CNBC adds.


                           *********


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
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
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mail.  Additional e-mail subscriptions for members of the same
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thereof are US$25 each.  For subscription information, contact
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