/raid1/www/Hosts/bankrupt/TCRAP_Public/200506.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Wednesday, May 6, 2020, Vol. 23, No. 91
Headlines
A U S T R A L I A
CARRIAGEWORKS LIMITED: First Creditors' Meeting Set for May 14
DALCASSIAN CONSULTING: First Creditors' Meeting Set for May 12
EMBASSY FOODS: First Creditors' Meeting Set for May 13
ENCOREFX (AUSTRALIA): Second Creditors' Meeting Set for May 13
FRESH START: Vincents Appointed as Administrator
MEZETHES SALAMANCA: Second Creditors' Meeting Set for May 15
ORIENT HOUSE: First Creditors' Meeting Set for May 14
SUNDANCE ENERGY: Bank Debt Trades at 16% Discount
C H I N A
FUWEI FILMS: Posts RMB11.4 Million Net Income in 2019
ROAN HOLDINGS: Delays Filing of Annual Report Over COVID-19
I N D I A
BEST IT WORLD: CRISIL Lowers Rating on INR145cr Loan to 'D'
GURU RENUKA: CRISIL Keeps B on INR5.65cr Loans in Not Cooperating
HANUMAN INFRA: CRISIL Maintains D Debt Ratings in Not Cooperating
IL&FS LTD: Chinese Firm Emerges as Top Bidder for Stake in CYEL
JET AIRWAYS: RP Asks SpiceJet to Pay Up for Leased Engines
KAMATCHI TRADERS: CRISIL Keeps B+ Debt Rating in Not Cooperating
KHAREWALI STEEL: CRISIL Keeps D on INR35cr Loan in Not Cooperating
MAKRANIA OIL: CRISIL Keeps B- on INR6cr Loan in Not Cooperating
MASTER INDIA: CRISIL Keeps D on INR31.5cr Loans in Not Cooperating
MAXOUT INFRASTRUCTURES: CRISIL Keeps D Ratings in Not Cooperating
MOGALS EDUCATIONAL: CRISIL Keeps 'D' Ratings in Not Cooperating
N V KHAROTE: CRISIL Maintains 'D' Debt Ratings in Not Cooperating
NALANDA BUILDERS: CRISIL Keeps 'D' Debt Ratings in Not Cooperating
NITYASHRADDHA LIFECARE: CRISIL Keeps B Rating in Not Cooperating
NOMAX ELECTRICAL: CRISIL Keeps B on INR16cr Loan in Not Cooperating
OMEGA SOLAR: CRISIL Withdraws B+ Ratings on INR50cr Loans
P.D. AGRO PROCESSORS: CRISIL Keeps B Debt Rating in Not Cooperating
PANAMA PAPERS: CRISIL Keeps B Debt Ratings in Not Cooperating
POOJA INDUSTRIES: CRISIL Keeps D on INR6cr Loans in Not Cooperating
POONAM TRADING: CRISIL Keeps D on INR25cr Loans in Not Cooperating
PRAKRUTI LIFE: CRISIL Keeps D on INR8.03cr Loans in Not Cooperating
PUJA QUENCH: CRISIL Keeps B on INR7cr Loans in Not Cooperating
PUPNEJA RICE: CRISIL Maintains 'D' Debt Ratings in Not Cooperating
RAJENDRA INDUSTRIES: CRISIL Keeps B Debt Rating in Not Cooperating
ROAR RESORT: CRISIL Keeps 'B' on INR10cr Loan in Not Cooperating
SAFE DEVELOPMENT: CRISIL Keeps D Debt Ratings in Not Cooperating
SHAMLAL COMPANY: CRISIL Keeps D Debt Ratings in Not Cooperating
SHIV TOOLS: CRISIL Keeps D on INR12cr Loans in Not Cooperating
SHRISTHI LPG: CRISIL Keeps B on INR5cr Loan in Not Cooperating
SIMRAN FOOD: CRISIL Lowers Rating on INR13cr Cash Loan to B+
SUNRISE CASHEW: CRISIL Assigns B+ Rating to INR10cr Cash Loan
SUPER JEWELLERS: CRISIL Keeps D on INR10cr Debt in Not Cooperating
I N D O N E S I A
BUKIT MAKMUR: Fitch Alters Outlook on 'BB-' LT IDR to Negative
TUNAS BARU: Moody's Alters Outlook on Ba3 CFR to Negative
M A L A Y S I A
BLUINC MEDIA: Shuts Operations Amid Digital Challenges, Pandemic
N E W Z E A L A N D
Q CARD TRUST 2019-1: Fitch Affirms Bsf Ratings on 3 Tranches
S I N G A P O R E
HIN LEONG: High Court Grants Interim Judicial Management
SEN YUE: Engages External Auditor to Review Financial Results
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A U S T R A L I A
=================
CARRIAGEWORKS LIMITED: First Creditors' Meeting Set for May 14
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of
Carriageworks Limited will be held on May 14, 2020, at 11:00 a.m.
via conference call.
Phil Quinlan and Morgan Kelly of KPMG were appointed as
administrators of Carriageworks Limited on May 4, 2020.
DALCASSIAN CONSULTING: First Creditors' Meeting Set for May 12
--------------------------------------------------------------
A first meeting of the creditors in the proceedings of Dalcassian
Consulting Pty Ltd will be held on May 12, 2020, at 10:00 a.m. via
electronic facilities.
Robert Michael Kirman and Robert Conry Brauer of McGrathNicol were
appointed as administrators of Dalcassian Consulting on April 30,
2020.
EMBASSY FOODS: First Creditors' Meeting Set for May 13
------------------------------------------------------
A first meeting of the creditors in the proceedings of Embassy
Foods Pty Ltd will be held on May 13, 2020, at 10:30 a.m. at Level
19, 2 Riverside Quay, in Southbank, Victoria.
Martin Ford and Michael Fung of PricewaterhouseCoopers were
appointed as administrators of Embassy Foods on May 1, 2020.
ENCOREFX (AUSTRALIA): Second Creditors' Meeting Set for May 13
--------------------------------------------------------------
A second meeting of creditors in the proceedings of EncoreFX
(Australia) Pty Ltd has been set for May 13, 2020, at 12:00 p.m.
via teleconference.
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 May 12, 2020, at 12:00 p.m.
Adam Nikitins and Stewart McCallum of Ernst & Young were appointed
as administrators of EncoreFX (Australia) on March 30, 2020.
FRESH START: Vincents Appointed as Administrator
------------------------------------------------
Steven Staatz of Vincents was appointed as administrator of Fresh
Start Equity Pty Ltd (Former Business Names: "Fit Fare", "Daily
Fare", "Fare and Frolic" & "The Food Code") on May 4, 2020.
MEZETHES SALAMANCA: Second Creditors' Meeting Set for May 15
------------------------------------------------------------
A second meeting of creditors in the proceedings of Mezethes
Salamanca Pty Ltd, trading as Mezethes Greek Taverna, has been set
for May 15, 2020, at 11:00 a.m. via teleconference.
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 May 14, 2020, at 4:00 p.m.
Shelley-Maree Brooks of Rodgers Reidy was appointed as
administrator of Mezethes Salamanca on
April 1, 2020.
ORIENT HOUSE: First Creditors' Meeting Set for May 14
-----------------------------------------------------
A first meeting of the creditors in the proceedings of Orient House
Investments Pty. Limited will be held on May 14, 2020, at 11:00
a.m. via teleconference facilities only.
John McInerney and Said Jahani of Grant Thornton Australia Limited
were appointed as administrators of Orient House on May 4, 2020.
SUNDANCE ENERGY: Bank Debt Trades at 16% Discount
-------------------------------------------------
Participations in a syndicated loan under which Sundance Energy
Australia Ltd is a borrower were trading in the secondary market
around 84 cents-on-the-dollar during the week ended Fri.,
April 24, 2020, according to Bloomberg's Evaluated Pricing service
data.
The USD250 million term loan is scheduled to mature on April 26,
2023. As of April 24, 2020, the full amount has been drawn and is
outstanding.
Sundance Energy Australia Limited explores for and produces oil and
natural gas. The Company operates onshore oil and gas properties in
the Cooper Basin in Australia and in Hughes County, Oklahoma, in
the U.S.
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C H I N A
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FUWEI FILMS: Posts RMB11.4 Million Net Income in 2019
-----------------------------------------------------
Fuwei Films (Holdings) Co., Ltd. reported net income of RMB11.36
million on RMB335.62 million of net sales for the year ended Dec.
31, 2019, compared to a net loss of RMB22.17 million on
RMB333.52 million of net sales for the year ended Dec. 31, 2018.
As of Dec. 31, 2019, the Company had RMB465.97 million in total
assets, RMB257.78 million in total liabilities, and RMB208.19
million in total equity.
Shandong Haoxin Certified Public Accountants Co., Ltd., in Weifang,
the People's Republic of China, the Company's auditor since 2020,
issued a "going concern" qualification in its report dated April
28, 2020 citing that the Company has a significant working capital
deficiency as of Dec. 31, 2019, the Company needs to raise
additional funds to meet its obligations and sustain its
operations. These conditions raise substantial doubt about the
Company's ability to continue as a going concern.
Net cash provided by operating activities was RMB54.4 million for
the year ended Dec. 31, 2019.
Net cash used in investing activities was RMB12.6 million in 2019
mainly attributable to the increased expenditure of purchasing
fixed assets.
Net cash used in financing activities was RMB2.3 million for the
year ended Dec. 31, 2019, which was mainly due to changes in the
amount of notes payable and loans from related party.
A full-text copy of the Form 20-F is available for free at the
Securities and Exchange Commission's website at:
https://is.gd/Ghhq3F
About Fuwei Films
Headquartered in Weifang Shandong, People's Republic of China,
Fuwei Films (Holdings) Co., Ltd. develops, manufactures, and
distributes plastic film using the biaxially-oriented stretch
technique, otherwise known as BOPET film (biaxially-oriented
polyethylene terephthalate). The film is light-weight, non-toxic,
odorless, transparent, glossy, temperature and moisture-resistant,
making it suitable for many forms of flexible packaging, printing,
laminating, aluminum-plating and other applications. In addition,
it retains high dielectric strength and volume resistance even at
high temperatures, which are essential qualities for electrical and
electronic uses. The Company's BOPET film is widely used in
consumer based packaging (such as food, pharmaceutical, cosmetics,
tobacco and alcohol industries), imaging (such as printing plates
and microfilms), electronics and electrical industries (such as PCB
products, capacitors and motor insulation), as well as in magnetic
products (such as audio and video tapes). The Company markets its
products under its brand name of "Fuwei Films".
ROAN HOLDINGS: Delays Filing of Annual Report Over COVID-19
-----------------------------------------------------------
Roan Holdings Group Co., Ltd. said in a Form 6-K filed with the
Securities and Exchange Commission that it will be relying on the
order issued by the SEC on March 25, 2020 providing conditional
relief to public companies that are unable to timely comply with
their filing obligations as a result of the novel coronavirus
(COVID-19) outbreak (Release No. 34-88465) to delay the filing of
its Annual Report on Form 20-F for the year ended Dec. 31, 2019 due
to circumstances related to COVID-19.
As a result of the outbreak and spread of COVID-19, and government
and business continuity measures adopted in response thereto, the
Company closed its offices or had limited business operations from
the Chinese New Year holiday until early March 2020. In addition,
the Company said, COVID-19 has caused severe disruptions in
transportation, limited access to its facilities and limited
support from workforce employed in its operations. As a result,
the Company may experience delays in the provision of financial
guarantee services and consulting services for its customers. This
has hampered the ability of the Company to complete its financial
statements and prepare the Annual Report in time to be filed by the
original due date of April 30, 2020. The Company expects, in
reliance on the Order, to file the Annual Report with the SEC no
later than June 14, 2020.
The COVID-19 outbreak affected the Company's operations and
financial results during the first quarter of 2020. While the
impact of COVID-19 outbreak on the Company's performance for the
year remains to be seen, the Company expects it to have a material
impact on its operations and financial results for fiscal 2020.
The Company will include in its risk factors for the Annual Report
on Form 20-F for the year ended Dec. 31, 2019 the following new
risk factors specific to COVID-19:
"Public health epidemics or outbreaks such as COVID-19 could
adversely impact our business.
"Our business, financial condition and results of operations may be
negatively impacted by risks related to natural disasters, extreme
weather conditions, health epidemics and other catastrophic
incidents, such as the COVID-19 outbreak and spread, which could
significantly disrupt our operations. In December 2019, a novel
strain of coronavirus (COVID-19) emerged in Wuhan, Hubei Province,
China. The COVID-19 outbreak and spread has caused lockdowns,
quarantines, travel restrictions, and closures of businesses and
schools. Due to the COVID-19 outbreak, our facilities remained
closed or had limited business operations after the Chinese New
Year holiday until early March 2020. In addition, COVID-19 has
caused severe disruptions in transportation, limited access to our
facilities and limited support from workforce employed in our
operations, and as a result, we may experience the delays in
provision of financial guarantee services and consulting services
to our customers. Although we have taken all possible measures to
overcome the adverse impact derived from the COVID-19 outbreak and
have resumed our normal business activities in early March 2020, it
is estimated that a lower amount of revenue and profit during the
period from February to April 2020. The extent to which the
coronavirus impacts our results for fiscal year 2020 will depend on
certain future developments, including the duration and spread of
the outbreak, emerging information concerning the severity of the
coronavirus and the actions taken by governments and private
businesses to attempt to contain the coronavirus, all of which is
uncertain at this point."
About Roan Holdings
Founded in 2009, Roan (formerly known as China Lending) is a
non-bank financial corporation and provides comprehensive financial
services to micro-, small- and medium-sized enterprises, and
individuals. Roan is engaged in asset management, supplier chain
financing, and business factoring. Roan has moved its headquarter
from Urumqi, the capital of Xinjiang Autonomous Region, to
Hangzhou, the capital of Zhejiang province.
China Lending reported a net loss US$94.13 million for the year
ended Dec. 31, 2018, compared to a net loss of US$54.78 million for
the year ended Dec. 31, 2017. As of June 30, 2019, the Company had
US$55.40 million in total assets, US$108.26 million in total
liabilities, $9.99 million in convertible redeemable Class A
preferred shares, and a total deficit of $62.85 million.
Friedman LLP, in New York, the Company's auditor since 2017, issued
a "going concern" qualification in its report dated April 26, 2019,
on the Company's consolidated financial statements for the year
ended Dec. 31, 2018, citing that the Company has incurred
significant losses and is uncertain about the collection of its
loans receivables and extension of defaulted loans. These
conditions raise substantial doubt about the Company's ability to
continue as a going concern.
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I N D I A
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BEST IT WORLD: CRISIL Lowers Rating on INR145cr Loan to 'D'
-----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Best It
World India Private Limited (BIWIPL) to 'CRISIL D/CRISIL D' from
'CRISIL BB+/Stable/CRISIL A4+'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 80 CRISIL D (Downgraded from
'CRISIL BB+/Stable')
Letter of Credit 145 CRISIL D (Downgraded from
'CRISIL BB+/Stable')
Proposed Long Term 25 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL BB+/Stable')
The downgrade reflects delay in servicing term debt and continuous
overdrawals in its working capital limits for more than 30 days.
This is due to stretch in working capital cycle leading to weak
liquidity.
The ratings reflect BIWIPL's modest profitability margin, working
capital intensive distribution business, and subdued debt
protection metrics. These weaknesses are partially offset by
BIWIPL's Established market position in information technology (IT)
product distribution and longstanding relationships with suppliers
and customers.
Analytical Approach
Unsecured loans of INR4.72 crore as on March 31, 2018 from
promoters have been treated as debt.
Key Rating Drivers & Detailed Description
Weakness:
* Delays in Servicing of Debt: There has been delays in servicing
of term debt and instances of overdrawals in the working capital
facilities for more than 30 days due to delayed receivables.
* Modest profitability margin and working capital-intensive
distribution business: The distribution business is marked by
modest profitability margin and working capital intensity.
Consequently, operating profitability remains low at 2-3% over the
five years through fiscal 2018; improvement in profitability has
been muted in fiscal 2019 on account of losses booked on sharp
foreign exchange fluctuations and impacted sales of IT peripherals
because of limited availability of CPUs. With discontinuation of
loss making mobile business, the profitability was expected to
improve significantly, however stagnant scale and intense
competition, led to modest profitability. Though company received
fresh equity funds at the fag end of fiscal 2018, the business
scale up using the funds was very limited.
The value division (including peripherals, security, tablets, and
networking) within the IT products segment, is moderately working
capital intensive marked by high inventory and moderate debtor.
Despite limited international competition in its domestic IT
business, BIWIPL extends credit of 30-45 days to enable its channel
partners grow the business. Further it maintains inventory of over
two months. This leads to large working capital requirement.
However, this is partially alleviated by the extended credit
offered by suppliers.
* Subdued debt protection metrics: BIWIPL's debt protection
metrics were weaker in 2018; its interest coverage and net cash
accruals to adjusted debt (NCAAD) ratios are at 1.2 times and 0.04
times respectively for fiscal 2018. BIWIPL's debt protection
metrics was estimated to improve with the managements measures to
reduce interest cost (retirement of high cost ICDs), lower debt
levels and complete discontinuance of the loss making mobile
segment, leading to increase in profitability over medium term,
However because of muted profitability and cash accruals, the debt
protection metrics were to remain subdued - interest coverage and
NCAAD are estimated at 1.5 times and 0.05 time respectively for
fiscal 2019.
Strengths:
* Established market position in information technology (IT)
product distribution and longstanding relationships with suppliers
and customers: The company has an established brand, 'i-Ball', and
strong distribution network of 2,800 distributors and access to
over 30,000 retail shops. Large product profile and vast
distribution network across India benefits the business. The
promoters have also developed strong relationships with suppliers
and customers. With aggressive marketing, strong distribution
network and emphasis on quality standards, the company has
developed a strong market position.
Liquidity Poor
The liquidity of company is poor marked by delay in servicing of
term debt and instances of overdrawals in the working capital
facilities for more than 30 days. Improvement in the working
capital management thus improving its liquidity will remain a key
rating driver.
Rating Sensitivity factors
Upward Factors
* Timely servicing of debt for more than 90 days.
* Improvement in working capital cycle
Mumbai-based BIWIPL, incorporated in 1996, distributes and markets
computer systems, computer peripherals, networking, laptop, tablet
and allied accessories under the brand, 'i-Ball'. The company is
promoted by Mr Sandeep Parasrampuria, Mr. Rakesh Shah, Mr Anil
Parasrampuria, Mr. Sunil Kedia and Mr. Vijay Dalmia.
There has been fresh equity infusion of INR50 crore by Mr
Charandeep Singh and Mr Varun Daga on February 28, 2018.
GURU RENUKA: CRISIL Keeps B on INR5.65cr Loans in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sree Guru Renuka Rice
Industries (SGRRI) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5.62 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term .03 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with SGRRI for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020, among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SGRRI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SGRRI is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SGRRI continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Set up as a proprietorship firm in 2006 by Mr. B M Nanjiah, SGRRI
processes paddy into rice. It has an installed milling capacity of
about 500 tonne per day at Davangere, Karnataka.
HANUMAN INFRA: CRISIL Maintains D Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sree Hanuman Infra
Private Limited (SHIPL) continues to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 5 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 5 CRISIL D (ISSUER NOT
COOPERATING)
Overdraft 1 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term
Bank Loan Facility 4 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SHIPL for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SHIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SHIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SHIPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Incorporated in 2005, SHIPL is promoted by Mr. Chavali
Ramanjaneyulu and his family. The firm undertakes civil
construction works such as construction of roads and railway
tunnels.
IL&FS LTD: Chinese Firm Emerges as Top Bidder for Stake in CYEL
---------------------------------------------------------------
Outlook India reports that in a major step towards resolving around
Rs2,500 crore debt, the PingAn Insurance (Group) Company of China
has turned out to be the highest bidder for the IL&FS stake in
Chinese Chongqing Yuhe Expressway Co Ltd (CYEL).
According to Outlook India, sources said PingAn has bid for the
IL&FS stake in CYEL at an aggregate equity valuation of around $250
million, covering 100 per cent debt of CYEL.
IL&FS holds 49 per cent stake in CYEL through its Singapore-based
subsidiary ITNL International Pvt Ltd (IIPL). The balance majority
stake in CYEL is held by Chongqing Expressway Group (CEG).
PingAn Insurance (Group) Company is one of the largest financial
services companies in the world. It is ranked seventh on the Forbes
Global 2000 list and 29th on the Fortune Global 500 list. The
company is listed on the stock exchanges in Hong Kong and
Shanghai.
People in the know of the developments said that in-principle
approval has been received from IIPL lenders for completing the
transaction and lenders of CYEL are being approached for their
respective approvals, Outlook India relays.
According to the report, sale proceeds of the agreement would
largely be used to pay the senior secured lenders in IIPL, the bond
holders and unsecured inter-corporate loans.
Once approved, this will resolve nearly INR2,500 crore of the
overall IL&FS debt.
Outlook India adds that an IL&FS spokesperson said: "IL&FS Group is
in the process of discussing the definitive documents with the H1
bidder. The deal is expected to close in couple of months. The Yuhe
asset is held by a wholly owned Singapore based subsidiary of ITNL
and the sale proceeds are sufficient enough to take care of the
debt obligations of the Chinese entity as well as the external
secured debt obligations of the Singapore entity."
"The lenders to the Chinese asset would continue to remain invested
in the project debt. While in-principle approvals from the project
and other lenders are in place, other approvals for the transaction
would be sought once the definitive documents have been executed
with the H1 bidder," he added.
Chongqing Yuhe Expressway Company Limited currently holds a
concession for a toll-based expressway of approximately 58.72 km in
China Mainland, over which it has the right to collect toll from
users, the report notes.
Around 13.25 years of the term of the current concession remain as
of March 31, 2019, and Chongqing Yuhe Expressway Company Limited
has the rights to collect toll from users and subsidies from the
Chinese government for the balance period of the concession.
ITNL Offshore PTE Ltd (IOPL) and IL&FS International PTE Ltd (IIPL)
are two Singapore based subsidiaries of IL&FS Transport Network
Limited (ITNL), a subsidiary of IL&FS, Outlook India discloses.
About IL&FS
Infrastructure Leasing & Financial Services Limited (IL&FS) --
https://www.ilfsindia.com/ -- is an infrastructure development and
finance company based in India. It focuses on the development and
commercialization of infrastructure projects, and creation of value
added financial services. The company operates in Financial
Services, Infrastructure Services, and Others segments.
As reported in the Troubled Company Reporter-Asia Pacific, the
Indian Express related that the Indian government, in October 2018,
stepped in to take control of crisis-ridden IL&FS by moving the
National Company Law Tribunal (NCLT) to supersede and reconstitute
the board of the firm which has defaulted on a series of its debt
payments. This was said to be an attempt to restore the confidence
of financial markets in the credibility and solvency of the
infrastructure financing and development group.
JET AIRWAYS: RP Asks SpiceJet to Pay Up for Leased Engines
----------------------------------------------------------
The Hindu BusinessLine reports that the Resolution Professional of
the grounded Jet Airways has served a notice to SpiceJet seeking
payment for engines that were leased out to the latter.
BusinessLine says Jet Airways was dragged to the National Computer
Law Tribunal (NCLT) over unpaid dues in June 2019. The tribunal had
considered Jet Airways as a 'going concern', after which a few of
Jet Airways' assets had been leased out to industry players in
order to recover some cost.
Some of the engines from aircraft flown by Jet Airways were mounted
on the fleet of SpiceJet. SpiceJet was to pay a lease amount for
the same. These engines are owned by Jet Airways.
While the RP declined to comment, sources confirmed that a notice
has been served to SpiceJet for payment of lease amounts on the
engines of Jet Airways, according to BusinessLine.
BusinessLine adds that when contacted SpiceJet spokesperson said,
"SpiceJet denies having any outstanding towards Jet Resolution
Professionals.
"If at all there is any amount to be recovered by Jet Resolution
Professional, that has to be from the aircraft lessor and not
SpiceJet.
SpiceJet has paid lessors on whose aircraft these engines are
mounted in full. As per our arrangement with lessor of aircraft,
the lessor has agreed to hold SpiceJet harmless against any
disputes emanating from the operations of previous operator of
these engines/aircraft." This comes even as the Indian aviation
industry is severely hit because of the on-going Covid-19 pandemic
and the nation-wide lockdown. According to CAPA, an aviation
consultancy firm, domestic airlines are set to incur losses worth
$1.75 billion in the first quarter of the current financial year.
SpiceJet too isn't immune to it.
Chairman Ajay Singh had, last month, said: "What we are facing is a
global phenomenon, and no airline in the world is immune to the
impact. Tough times don't last, tough people, do. SpiceJet was born
of adversity, and it is the same adversity that brings out the best
in each and every one of us," BusinessLine relays.
The pandemic has also forced the Gurgaon-based airline to slash
capacity and staff salaries, and its credit rating was recently
downgraded, adds BusinessLine.
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.
KAMATCHI TRADERS: CRISIL Keeps B+ Debt Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Sri Kamatchi Traders
(SKT) continues to be 'CRISIL B+/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL B+/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SKT for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SKT, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SKT is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of SKT continues to be 'CRISIL B+/Stable Issuer not
cooperating'.
SKT, set up in 1985 as a partnership firm in Chennai, processes
pulses, mainly urad dal, to produce flour used by food processing
players. The firm's operations are managed by managing partner Mr S
C Moha.
KHAREWALI STEEL: CRISIL Keeps D on INR35cr Loan in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Kharewali Steel
Private Limited (SVIPL) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 35 CRISIL D (ISSUER NOT COOPERATING)
CRISIL has been consistently following up with SVIPL for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SVIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SVIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SVIPL continues to be 'CRISIL D Issuer not
cooperating'.
Incorporated in 1995, SVIPL is promoted by Mr. Pravin Khade, Mr.
Rajesh Grover and Mr. Narendra Sharma. Company is engaged in
trading of MS structural steels (angles, plates, channels TMT bars
etc.) and has started manufacturing of TMT bars.
MAKRANIA OIL: CRISIL Keeps B- on INR6cr Loan in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Makrania Oil Mill
(MOM) continues to be 'CRISIL B-/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B-/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MOM for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MOM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MOM is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of MOM continues to be 'CRISIL B-/Stable Issuer not
cooperating'.
MOM was set up in 2003 as a proprietorship firm by Mr Kishan Kumar.
It manufactures and sells mustard oil. The processing facility at
Charkhi Dadri, Haryana, has installed capacity of around 300 tonne
per day.
MASTER INDIA: CRISIL Keeps D on INR31.5cr Loans in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Master India Brewing
Co. (MIBC) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 4.5 CRISIL D (ISSUER NOT
COOPERATING)
Long Term Loan 27.0 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with MIBC for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MIBC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MIBC is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MIBC continues to be 'CRISIL D Issuer not
cooperating'.
MIBC, set up as a partnership firm in fiscal 2010, manufactures
beer. The firm is promoted by Mr. Deepak Burman, Mr. Jitendra
Newatia, Mr. Rajesh Kumar Jalan, and Master (India) Brewing Co
Ltd.
MAXOUT INFRASTRUCTURES: CRISIL Keeps D Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Maxout
Infrastructures Private Limited (MIPL) continues to be 'CRISIL
D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 12 CRISIL D (ISSUER NOT COOPERATING)
Cash Credit 8 CRISIL D (ISSUER NOT COOPERATING)
CRISIL has been consistently following up with MIPL for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MIPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
MIPL, incorporated in 2007, undertakes railway projects, and
develops roads, bridges, sewage water treatment plants, waste and
waste water treatment plants and works, mainly in North India. The
company is promoted and managed by Mr. Pramod Kumar Singh and his
brother Mr. Praveen Kumar Singh.
MOGALS EDUCATIONAL: CRISIL Keeps 'D' Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Mogals Educational
and Charitable Trust (MECT) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 16 CRISIL D (ISSUER NOT
COOPERATING)
Overdraft 1 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 1 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with MECT for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of MECT, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on MECT is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of MECT continues to be 'CRISIL D Issuer not
cooperating'.
MECT, based in Nagercoil (Tamil Nadu), was established in 2004 by
Mr Mohamed Eakieem. The trust offers undergraduate, graduate, and
post-graduate courses in engineering, and teacher training courses
through MET College of Education, MET Engineering College, and MET
Teacher Training College.
N V KHAROTE: CRISIL Maintains 'D' Debt Ratings in Not Cooperating
-----------------------------------------------------------------
CRISIL said the ratings on bank facilities of N V Kharote
Constructions Private Limited (NVKCPL) continues to be 'CRISIL
D/CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bank Guarantee 7.83 CRISIL D (ISSUER NOT
COOPERATING)
Cash Credit 6 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 0.17 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with NVKCPL for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of NVKCPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on NVKCPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of NVKCPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
NVKCPL, incorporated in 1992, executes turnkey water supply and
lift irrigation projects for government agencies. The Pune-based
company specialises in manufacturing and laying out of pipes along
with related civil, electrical and fabrication activities.
NALANDA BUILDERS: CRISIL Keeps 'D' Debt Ratings in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Nalanda Builders and
Developers India Limited (NBDIL) continues to be 'CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (ISSUER NOT
COOPERATING)
Overdraft 2 CRISIL D (ISSUER NOT
COOPERATING)
Proposed Long Term 23 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 20 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with NBDIL for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of NBDIL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on NBDIL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of NBDIL continues to be 'CRISIL D Issuer not
cooperating'.
Incorporated in September 2005, NBDIL undertakes residential real
estate development in Agra, Jhansi, and Vrindavan (all in Uttar
Pradesh). The company is promoted by Mr Santosh Katara, Dr Sharad
Bhaduria, and Mr Radhey Shyam Sharma, and their families. The
promoters are first-generation entrepreneurs, who set up the
business in 2003 as a partnership firm, which was reconstituted as
a private limited company in 2005.
NITYASHRADDHA LIFECARE: CRISIL Keeps B Rating in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Nityashraddha
Lifecare Private Limited (NLPL) continues to be 'CRISIL B/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 8 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with NLPL for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of NLPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on NLPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of NLPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of NLPL and Nityashraddha Lifecare (NL),
together referred as the NL group. This is because NL has extended
loan and property to NLPL.
Incorporated in 2013 and promoted by Dr. Thakur and Mr. Deshpande
and their families, the NL group is setting up a 100-bed
multi-speciality hospital in Pune.
NOMAX ELECTRICAL: CRISIL Keeps B on INR16cr Loan in Not Cooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Nomax Electrical
Steel Private Limited (NESPL) continues to be 'CRISIL B/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 16 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with NESPL for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of NESPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on NESPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of NESPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Established in 1981 as a proprietorship firm (Eastern Electricals)
by Mr. Moinuddin Mondal and reconstituted as a private limited
company in April 2, 2007, NESPL manufactures cold-rolled
grain-oriented silicon steel transformer cores for low and high
frequency distribution and power transformers. Facilities
admeasuring 90,000 square feet are in Kolkata and are ISO 9001:
2000 accredited. The cores are processed as per customer
specifications.
OMEGA SOLAR: CRISIL Withdraws B+ Ratings on INR50cr Loans
---------------------------------------------------------
Due to inadequate information, CRISIL, in line with SEBI
guidelines, had migrated the rating of Omega Solar Projects Private
Limited (Omega) to 'CRISIL B+/Stable Issuer Not Cooperating'.
CRISIL has withdrawn its rating on bank facility of Omega following
a request from the company and on receipt of a 'no dues
certificate' from the banker. Consequently, CRISIL is migrating the
ratings on bank facilities of Omega from 'CRISIL B+/Stable Isuer
Not Cooperating' to 'CRISIL B+/Stable'. The rating action is in
line with CRISIL's policy on withdrawal of bank loan ratings.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 48 CRISIL B+/Stable (Migrated
from 'CRISIL B+/Stable ISSUER
NOT COOPERATING'; Rating
Withdrawn)
Proposed Long Term 2 CRISIL B+/Stable (Migrated
Bank Loan Facility from 'CRISIL B+/Stable ISSUER
NOT COOPERATING'; Rating
Withdrawn)
Omega, set up in 2009, operates a 10.5 megawatt (MW) solar power
plant in Sangrur, Punjab.
P.D. AGRO PROCESSORS: CRISIL Keeps B Debt Rating in Not Cooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of P.D. Agro Processors
(PDAP) continues to be 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Term Loan 4.55 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with PDAP for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PDAP, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PDAP is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of PDAP continues to be 'CRISIL B/Stable Issuer not
cooperating'.
PDAP was established in July 2013 as a partnership firm by Mr.
Bhupender Agarwal and Ms. Kamla Agarwal. The firm processes
non-basmati rice (Sona Masuri, Samba Masuri, HMT) at its unit in
Rae Bareilly, Uttar Pradesh, which has installed milling and
sorting capacity of 15 tonne per hour. PDAP commenced operations in
January 2014.
PANAMA PAPERS: CRISIL Keeps B Debt Ratings in Not Cooperating
-------------------------------------------------------------
CRISIL said the ratings on bank facilities of Panama Papers Private
Limited (PPPL) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 7.5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term .5 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
Term Loan 4.0 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with PPPL for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PPPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PPPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of PPPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Incorporated in 2005 and promoted by Mr. Bhavesh Patel, PPPL
manufactures absorbent kraft paper used in the lamination and
packaging industry. The company has manufacturing facility in
Morbi,Gujarat.
POOJA INDUSTRIES: CRISIL Keeps D on INR6cr Loans in Not Cooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Pooja Industries
(Indore) (PI) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 5 CRISIL D (ISSUER NOT COOPERATING)
Term Loan 1 CRISIL D (ISSUER NOT COOPERATING)
CRISIL has been consistently following up with PI for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PI is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of PI continues to be 'CRISIL D Issuer not
cooperating'.
PI established in 1991 is a partnership firm engaged in the
manufacturing and trading of torches and torch parts. Mr. Jagdish
Agrawal, Narendra Agrawal and Mr. Aman Agrawal oversee the day to
day operations of the firm. PII has its manufacturing facility at
Indore, Madhya Pradesh and sells its torches under the 'Cosmos'
brand.
POONAM TRADING: CRISIL Keeps D on INR25cr Loans in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Poonam Trading
Company (PTC) continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 8 CRISIL D (ISSUER NOT
COOPERATING)
Inland/Import 17 CRISIL D (ISSUER NOT
Letter of Credit COOPERATING)
CRISIL has been consistently following up with PTC for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PTC, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PTC is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of PTC continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
Set up in 1998 and based in Tenkasi, Tamil Nadu, PTC trades in and
processes timber. It is promoted and managed by Mr. Navin Patel and
Mr. Haresh Patel.
PRAKRUTI LIFE: CRISIL Keeps D on INR8.03cr Loans in Not Cooperating
-------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Prakruti Life Science
Private Limited (PLSPL) continues to be 'CRISIL D/CRISIL D Issuer
not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Long Term Loan 7 CRISIL D (ISSUER NOT COOPERATING)
Overdraft 1.03 CRISIL D (ISSUER NOT COOPERATING)
CRISIL has been consistently following up with PLSPL for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PLSPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PLSPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of PLSPL continues to be 'CRISIL D/CRISIL D Issuer not
cooperating'.
PLSPL, set up in 2012 and based in Udupi, Karnataka, is part of the
Prakruti group. It undertakes contract manufacturing of
pharmaceutical drugs. Operations are managed by Mr M R Shetty.
PUJA QUENCH: CRISIL Keeps B on INR7cr Loans in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Puja Quench
Distributors India Private Limited (PQPL) continues to be 'CRISIL
B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 3 CRISIL B/Stable (ISSUER NOT
COOPERATING)
Proposed Long Term 4 CRISIL B/Stable (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with PQPL for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020, among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PQPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PQPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of PQPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
The Delhi-based PQPL was set up as a proprietorship concern in 2003
and reconstituted as a private limited company in 2010. The company
is primarily engaged in trading bulk milk and soft-drinks. It is a
carrying and forwarding agent for Coca Cola India Pvt Ltd, for
soft-drinks, and supplies milk in bulk quantities to co-packers,
milk traders and dairies.
PUPNEJA RICE: CRISIL Maintains 'D' Debt Ratings in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Pupneja Rice Mills
(PRM) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 13.15 CRISIL D (ISSUER NOT
COOPERATING)
Long Term Loan .20 CRISIL D (ISSUER NOT
COOPERATING)
Warehouse Financing 6.00 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with PRM for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of PRM, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on PRM is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of PRM continues to be 'CRISIL D Issuer not
cooperating'.
PRM was established in 1982 as a partnership firm in Jalalabad,
Punjab. The firm was founded by Mr. Suraj Chand, along with his
son, Mr. Hari Chand, and their partner, Mr. Ramesh Kumar. In 2006,
Mr. Suraj Chand and Mr. Ramesh Kumar retired from the firm, and
subsequently, Mr. Hari Chand's sons, Mr. Sunny Pupneja and Mr.
Rajan Pupneja took over the business. PRM hulls and mills paddy
rice. It has a processing mill with a capacity of 5 tonne per
hour.
RAJENDRA INDUSTRIES: CRISIL Keeps B Debt Rating in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Rajendra Industries
(RI) continues to be 'CRISIL B/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 6 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with RI for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of RI, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on RI is consistent
with 'Scenario 1' outlined in the 'Framework for Assessing
Consistency of Information with CRISIL BB' rating category or
lower'.
Based on the last available information, the ratings on bank
facilities of RI continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Set up in Karnataka in 1950 as a partnership firm by Mr. Ravindra
Kumar Kothari, Mr. Vinod Kumar Kothari, Mr. Sunil Kumar Kothari,
and Ms. Sheetal Kumar Kothari, RI gins and presses raw cotton and
makes cotton bales at its facility in Karnataka. It supplies to
local customers.
ROAR RESORT: CRISIL Keeps 'B' on INR10cr Loan in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Roar Resort Private
Limited (RRPL) continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Term Loan 10 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with RRPL for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of RRPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on RRPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of RRPL continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Incorporated in 2015, RRPL is promoted by Mr Raghav Gupta and Ms
Rupesh Gupta. The company is engaged in the hospitality business
and operates a resort (four-star category) in Jim Corbett National
Park. The resort started operations in April 2016.
SAFE DEVELOPMENT: CRISIL Keeps D Debt Ratings in Not Cooperating
----------------------------------------------------------------
CRISIL said the ratings on bank facilities of Safe Development Alms
Trust (SDAT) continues to be 'CRISIL D Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Long Term 12.5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
Proposed Term Loan 7.5 CRISIL D (ISSUER NOT
COOPERATING)
Term Loan 15 CRISIL D (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SDAT for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SDAT, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SDAT is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SDAT continues to be 'CRISIL D Issuer not
cooperating'.
SDAT is a registered charitable trust constituted by the Minority
Community of Muslims, with its headquarters at Karuna Hospital
Campus at Melamuri in Palakkad. Since its inception in 1993, the
trust has been in the medical education and healthcare segments.
SHAMLAL COMPANY: CRISIL Keeps D Debt Ratings in Not Cooperating
---------------------------------------------------------------
CRISIL said the ratings on bank facilities of Shamlal Company India
Private Limited (SCIPL) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Bill Discounting 3.5 CRISIL D (ISSUER NOT
COOPERATING)
Loan Against 2 CRISIL D (ISSUER NOT
Property COOPERATING)
Proposed Long Term 4.5 CRISIL D (ISSUER NOT
Bank Loan Facility COOPERATING)
CRISIL has been consistently following up with SCIPL for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SCIPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SCIPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SCIPL continues to be 'CRISIL D Issuer not
cooperating'.
Set up as partnership firm (Shamlal and Company) in Salem, Tamil
Nadu, in 1957 by Mr. Shamlal Bajaj and Mr. Desraj Bajaj, and
reconstituted as a private limited company. SCIPL is engaged in
dying, processing and printing of fabric, and also trades in grey
fabric. The company used to trade in iron ore but discontinued that
business after ban on iron ore mining.
SHIV TOOLS: CRISIL Keeps D on INR12cr Loans in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Shiv Tools
Engineering Private Limited (STEPL) continues to be 'CRISIL D
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 11 CRISIL D (ISSUER NOT COOPERATING)
Long Term Loan 1 CRISIL D (ISSUER NOT COOPERATING)
CRISIL has been consistently following up with STEPL for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of STEPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on STEPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of STEPL continues to be 'CRISIL D Issuer not
cooperating'.
STEPL was set up in 1996 as a proprietorship firm by Mr Bhikkan
Singh and was reconstituted as a private limited company in 2004.
The company is managed by Mr Singh, his wife, and their two sons.
STEPL initially manufactured dyes, paints, and tools for
automobiles and tractors. It has now diversified into manufacturing
external body parts for automobiles and tractors. Its registered
office is in Faridabad (Haryana).
SHRISTHI LPG: CRISIL Keeps B on INR5cr Loan in Not Cooperating
--------------------------------------------------------------
CRISIL said the ratings on bank facilities of Shristhi LPG Botling
Plant Private Limited (SLPG) continues to be 'CRISIL B/Stable
Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Proposed Term Loan 5 CRISIL B/Stable (ISSUER NOT
COOPERATING)
CRISIL has been consistently following up with SLPG for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SLPG, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SLPG is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SLPG continues to be 'CRISIL B/Stable Issuer not
cooperating'.
Incorporated in April 2017, SLPG has been promoted by Mr Anurag
Kumar Chaudhary and his wife, Ms Divya Singh. The company proposes
to set up an LPG bottling plant and market the same under its own
brand in Assam. Operations are expected to start in April 2018.
SIMRAN FOOD: CRISIL Lowers Rating on INR13cr Cash Loan to B+
------------------------------------------------------------
CRISIL said the ratings on bank facilities of Simran Food Private
Limited (SFPL) Revised to 'CRISIL B+/Stable Issuer not cooperating'
from 'CRISIL BB-/Stable Issuer not cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 13 CRISIL B+/Stable (ISSUER NOT
COOPERATING; Revised from
'CRISIL BB-/Stable ISSUER NOT
COOPERATING')
CRISIL has been consistently following up with SFPL for obtaining
information through letters and emails dated September 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SFPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SFPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SFPL Revised to 'CRISIL B+/Stable Issuer not
cooperating' from 'CRISIL BB-/Stable Issuer not cooperating'.
SFPL, set up in 1998 by Mr. Vijay Gupta, manufactures wheat
products such as maida and wheat flour. The manufacturing facility
is in Varanasi, Uttar Pradesh.
SUNRISE CASHEW: CRISIL Assigns B+ Rating to INR10cr Cash Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Sunrise Cashew Industries (SCI).
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL B+/Stable (Assigned)
The rating reflects the small scale of SCI's operations amid
intense competition and susceptibility to agricultural commodity
prices and changes in yield. These weaknesses are partially offset
by the extensive experience of the partners and a moderate
financial risk profile.
Key Rating Drivers & Detailed Description
Weakness:
* Small scale of operations amid intense competition: Firm has
small scale of operations indicated by revenue of INR9.61 crore for
fiscal 2019. The domestic cashew trading/processing industry
comprises numerous organised and unorganised players. The
consequent intense competition may continue to constrain
scalability, pricing power and profitability.
* Susceptibility to agricultural commodity prices and changes in
yield: The agro based nature of industry exposes firm to
volatility in agricultural commodity prices and changes in yield.
The availability of cashew as well as its price are subject to
vagaries in monsoon and climatic changes.
Strengths:
* Extensive experience of the partners: Benefits from the
partners' experience of over two decades, their strong
understanding of local market dynamics, and healthy relations with
suppliers and customers should continue to support the business.
* Moderate financial risk profile: Networth was moderate and Total
outside liabilities to adjusted networth ratio (TOLANW) was low
(INR11.34 crore and 0.13 time as on March 31, 2019). Debt
protection metrics was satisfactory; with interest coverage and net
cash accrual to adjusted debt ratios of 1.13 times and 0.93 time,
respectively, in fiscal 2019. Financial metrics are expected to
remain average over the medium term.
Liquidity Poor
Liquidity is poor, with annual cash accrual expected at over Rs.1.1
crore over the medium term. However nil debt obligation against the
same. Bank limit utilisation was moderate for the 12 months through
January 2020. Impact of cash generating ability and receipt of
rental income amidst the Covid-19 outbreak will be a key
monitorable. Current ratio was moderate at 1.7 times as on March
31, 2019.
Outlook: Stable
CRISIL believes SCI will continue to benefit from the extensive
experience of the partners, and established relationships with
clients.
Rating Sensitivity factors
Upward factors
* Revenue growth of 20% along with steady profitability
* Stability in the prices of cashew
Downward factors
* Lower-than-expected rental income, leading to cash accrual below
INR0.5 crore
* Larger-than-expected, debt-funded capital expenditure, leading to
high gearing
SCI was set up in 2001 as partnership firm by Mr Altaf Shaikh and
Mr Xaboddin Xec. This firm processes raw cashew nuts into cashew
kernels; it has four processing units in Valpoi, Goa.
SUPER JEWELLERS: CRISIL Keeps D on INR10cr Debt in Not Cooperating
------------------------------------------------------------------
CRISIL said the ratings on bank facilities of Super Jewellers
Private Limited (SJPL) continues to be 'CRISIL D Issuer not
cooperating'.
Amount
Facilities (INR Crore) Ratings
---------- ----------- -------
Cash Credit 10 CRISIL D (ISSUER NOT COOPERATING)
Term Loan 0.2 CRISIL D (ISSUER NOT COOPERATING)
CRISIL has been consistently following up with SJPL for obtaining
information through letters and emails dated November 30, 2019 and
March 9, 2020 among others, apart from telephonic communication.
However, the issuer has remained non cooperative.
'The investors, lenders and all other market participants should
exercise due caution while using the rating assigned/reviewed with
the suffix 'ISSUER NOT COOPERATING'. These ratings lack a forward
looking component as it is arrived at without any management
interaction and is based on best available or limited or dated
information on the company.
Detailed Rationale
Despite repeated attempts to engage with the management, CRISIL
failed to receive any information on either the financial
performance or strategic intent of SJPL, which restricts CRISIL's
ability to take a forward looking view on the entity's credit
quality. CRISIL believes information available on SJPL is
consistent with 'Scenario 1' outlined in the 'Framework for
Assessing Consistency of Information with CRISIL BB' rating
category or lower'.
Based on the last available information, the ratings on bank
facilities of SJPL continues to be 'CRISIL D Issuer not
cooperating'.
Set up as a partnership firm in 2002, and reconstituted as a
private limited company in 2004, SJPL has been promoted by Mr Ajay
Garg and Mr Diniv Singla. The company retails in gold, diamond, and
silver jewellery from its showroom in Bhatinda.
=================
I N D O N E S I A
=================
BUKIT MAKMUR: Fitch Alters Outlook on 'BB-' LT IDR to Negative
--------------------------------------------------------------
Fitch Ratings has revised the Outlook on Indonesia-based PT Bukit
Makmur Mandiri Utama's Long-Term Foreign-Currency Issuer Default
Rating to Negative from Stable and has affirmed the IDR at 'BB-'.
Fitch has also affirmed the company's outstanding senior unsecured
notes at 'BB-'.
The Outlook revision reflects its expectations that BUMA's
weakening credit metrics will lower its rating headroom; this
follows a revision of its volume and price assumptions. Fitch
expects the company's overburden removal volume to decline in 2020,
before modestly improving in 2021, as coal miners cut production
volume amid the challenging economic conditions caused by the
coronavirus pandemic.
The Negative Outlook also reflects the execution risk associated
with the company's plan to add new customers to offset its expected
decline in volume following the loss of its contract with PT Kideco
Jaya Agung at the end of 2020. Fitch has also lowered its pricing
forecasts for BUMA following the revision of its coal-price
assumptions.
BUMA's rating reflects its leading position as Indonesia's
second-largest mining contractor, with a market share of about 15%
and a satisfactory operational record with customers. The rating
also reflects the concentration risk the company faces, with about
80% of its volume coming from only three counterparties, and the
highly cyclical nature of the domestic coal contracting industry.
KEY RATING DRIVERS
Volume Slowdown: Fitch expects overburden volume to decline by
about 10% in 2020, from 380 billion cubic metres (bcm) in 2019, due
to the consequences of the coronavirus pandemic, before improving
in 2021-2023. Fitch expects most Indonesian coal miners to cut
production due to weak demand on account of the pandemic, leading
to BUMA's volume decline. Furthermore, one of BUMA's key customers,
Kideco, which Fitch expects to contribute about 5%-6% of 2020
volume, will not extend its contract with BUMA beyond 2020 on
expiry.
New Contracts Wins Key: BUMA expects part of the lost volume to be
covered by rising coal production at some of its key customers from
2021. We, however, expect BUMA to be increasingly dependent on new
customers to drive volume growth. Fitch believes BUMA will become
more selective in choosing customers, after facing operational
issues with some newer customers in 2017-2019. Nevertheless, Fitch
thinks the company is exposed to execution risk in signing new
customers, especially if market conditions remain challenging.
Weakening Credit Metrics: Fitch forecasts BUMA's FFO net leverage
to rise to 4.0x in 2020, which is above its negative rating
sensitivity of 3.3x, driven by volume and price weakness. Leverage
should improve to around 3.0x in 2021, supported by a recovery in
mining volume to close to 2019 levels and a marginal improvement in
realisation, reflecting its expectations of coal-price changes. The
volume improvement, in its view, hinges on the company's ability to
win new contracts. About 70% of BUMA's coal-mining contracts are
linked to coal prices and are affected by coal-price movements.
Lease Adjustments: Fitch has revised its treatment of leases and
now accounts for all leases, including financial leases, as
operating expenses, in line with its revised Corporate Rating
Criteria. Fitch now treats depreciation from leased assets and
interest on financial leases as operating costs, and deducts these
from EBITDA, while excluding financial leases from debt.
Consequently, Fitch recalibrated upgrade and downgrade thresholds
following the change in criteria, taking into account BUMA's
business profile and other financial factors.
The adjustments result in BUMA's EBITDA margin falling to 19.3% in
2019, compared with 33.7% in 2018. In comparison, BUMA's
(unadjusted) EBITDAR margins, which excludes lease-related
adjustments, weakened to 30.3% in 2019 (2018: 35.8%) due to cost
pressure amid the company's weakened volume growth.
Cost Optimisation. Fitch expects costs to fall from 2020, after
peaking in 2019, as the company optimises its capacity to match the
lower volume base. BUMA had already let go of 1,500 employees in
2019 and plans to continue to lower staff numbers to match its
lower volume expectations. BUMA entered 2019 with a capacity, both
in terms of equipment and employees, to support higher overburden
removal volume, in line with its earlier expectation of robust
industry-wide growth.
Lower Capex: Fitch expects equipment capacity to remain high, but
with a minimal contribution to the cost base, as BUMA plans to park
its spare equipment in line with its lower volume expectation. This
will reduce its repair and maintenance expenses, which Fitch
believes will lower its capex requirements over the next three
years. Fitch expects capex to be primarily maintenance related and
remain at around USD100 million a year over 2020-2022. BUMA expects
capex during its next equipment-replacement cycle, in around
2023-2024, to be lower due to its Certified Machine Rebuild
programme, which extends the life for certain equipment at about
70% of the market price.
Customer Concentration: Fitch expects BUMA's customer concentration
to further increase, to only five counterparties, after its
contract with Kideco ends this year. BUMA's counterparties dropped
to six from seven after it stopped operations at the Pada Idi site
in mid-2019. About half of its revenue comes from PT Berau Coal,
with the portion further increasing until it signs new contracts to
diversify its customer base.
Fitch believes the risk associated with customer concentration is
partly mitigated by BUMA's long relationships with key customers
and high contract renewal rates. It takes the non-renewal of
Kideco's contract as a one-off case that was part of Kideco's
strategy to gradually migrate to the coal-mining services of its
associate. Coal miners also generally prioritise payments to mining
contractors to ensure the continuity of operations.
Strong Market Position: BUMA's key customers - Berau Coal, PT Adaro
Indonesia (BBB-/Stable) and PT Indonesia Pratama, a subsidiary of
PT Bayan Resources Tbk (BB-/Stable) - which Fitch expects to
contribute about 80% of BUMA's 2020 volume, have an efficient cost
position. Berau Coal and Adaro also have a more than 15 year
relationship with BUMA. Fitch expects BUMA to maintain its position
as Indonesia's second-largest coal-mining contractor.
DERIVATION SUMMARY
BUMA's closest rated peers are PT ABM Investama Tbk (B+/Negative)
and Emeco Holdings Limited (B+/Stable). BUMA's one-notch
differential to ABM's rating is justified by its stronger business
profile, driven by its better mine-contracting business in terms of
efficiency, with higher margins and market share. BUMA also has a
larger scale than ABM, in an industry where scale is important. ABM
benefits from its diversified business, although the improvement in
its mining-contractor business was offset by weakness in its
coal-mining business in the low coal-price environment. BUMA's
financial profile is also stronger than that of ABM.
BUMA has better revenue visibility than Australia-based
equipment-rental company, Emeco, and a stable operating profile
that stems from its long-term contracts with miners and integration
in the production stage. Emeco's financial profile has improved
over the last few years and is now comparable with that of BUMA.
However, BUMA benefits from the stickiness of its coal-mining
contracts, unlike Emeco, underscoring the one-notch differential
between the two ratings.
KEY ASSUMPTIONS
- Volume to decline by about 10% in 2020, followed by a recovery
of 8% in 2021. Post that, Fitch factors in marginal 2%-3% growth in
2022-2023.
- Costs of goods sold to decline to USD1.26/bcm in 2020 (2019:
USD1.38/bcm; 2018: USD1.27/bcm) and to range between USD1.28 -
1.30/bcm over 2021-2023.
- Capex of USD80 million in 2020, USD100 million in 2021-2022 and
USD110 million in 2023.
- No dividend payouts through to 2023.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
Fitch does not expect positive rating action in the near-term due
to the Negative Outlook on BUMA's IDR. The Outlook will be revised
to Stable if BUMA is able to sustain credit metrics at levels
stronger than its negative sensitivities from 2021. This would be
driven by maintaining volume as it substitutes the declining volume
from existing counterparties with new contracts.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- Weakening market position, including failure to retain major
customers, as well as contract volume and cash flow generation
falling short of Fitch's expectations, leading to deteriorating
credit metrics
- FFO net leverage sustained above 3.3x
- FFO adjusted net leverage above 4.0x for a sustained period
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.
LIQUIDITY AND DEBT STRUCTURE
Liquidity to Tighten: Fitch expects liquidity to tighten over the
next 18 months, with BUMA's cash balance falling after a
challenging 2020. BUMA's 2020 liquidity should be supported by its
cash balance of USD98 million at end-2019 and neutral free cash
flow against debt maturities of about USD44 million. However, BUMA
will need to refinance USD70 million of debt maturing in 2021 and
USD350 million of bonds maturing in 2022. BUMA has an outstanding
leasing facility of about USD15 million, which it can use for
maintenance capex, but the company does not have any undrawn and
committed bank facilities to support further pressure on
liquidity.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the Applicable Criteria.
ESG CONSIDERATIONS
The highest level of ESG credit relevance, if present, is a score
of 3. This means ESG issues are credit-neutral or have only a
minimal credit impact on the entity(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).
TUNAS BARU: Moody's Alters Outlook on Ba3 CFR to Negative
---------------------------------------------------------
Moody's Investors Service has affirmed Tunas Baru Lampung Tbk
(P.T.)'s Ba3 corporate family rating, along with the Ba3 rating on
the backed senior unsecured bond issued by TBLA International Pte.
Ltd., a wholly owned subsidiary of TBLA.
At the same time, Moody's has revised the outlook on these ratings
to negative from stable.
RATINGS RATIONALE
"The change in TBLA's outlook to negative from stable reflects its
expectation that its credit metrics and liquidity position will
remain stretched over the next 12 months, amid a challenging
operating environment," says Maisam Hasnain, a Moody's Assistant
Vice President and Analyst.
"At the same time, the affirmation of TBLA's Ba3 ratings reflects
the favorable long-term domestic demand fundamentals of its dual
commodity business of palm oil and sugar," adds Hasnain, who is
also Moody's Lead Analyst for TBLA.
The rapid and widening spread of the coronavirus outbreak,
deteriorating global economic outlook, falling oil prices, and
asset price declines are creating a severe and extensive credit
shock across many sectors, regions and markets. The combined credit
effects of these developments are unprecedented.
Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety. Its action reflects the impact on TBLA of the breadth
and severity of the shock, and the broad deterioration in credit
quality it has triggered.
Moody's estimates that, as a result of muted earnings growth and an
increase in debt, TBLA will maintain adjusted debt/EBITDA of
4.0x-4.2x, and adjusted EBITA/interest of 1.6x-1.8x over the next
12-18 months. This would be in breach of the downward triggers for
its Ba3 ratings of 4.0x and 2.75x, respectively.
While palm oil and sugar sales could temporarily increase in 1Q
2020 as customers stockpile inventory, earnings growth over the
next 12 months will be tempered by slowing economic growth due to
the coronavirus outbreak, which will weigh on domestic consumption
and disrupt economic activity.
Given the considerable decline in petroleum prices, demand for
TBLA's biodiesel, which generated 27% of consolidated revenue in
2019, could decline as the price differential between biodiesel and
diesel increases.
This risk is partly mitigated by the contract TBLA has with the
state-owned oil and gas company Pertamina (Persero) (P.T.) (Baa2
stable) to sell around 340,000 tons of biodiesel in 2020, up
considerably from 217,000 tons sold in 2019. TBLA has not reported
any delays or cancellations under this contract thus far.
Moody's expects TBLA's liquidity will remain weak, with TBLA's
internal cash sources being insufficient to meet its cash needs
over the next 12-15 months. This is primarily driven by TBLA short
term debt which gets rolled over each year, and its medium-term
notes maturing in December 2020 (IDR411 billion) and in March 2021
(IDR239 billion).
While the company has a track record of meeting scheduled
maturities, and management has historically been proactive in
managing its capital structure, current market conditions could
prove challenging for TBLA's refinancing efforts.
TBLA has stated it had IDR2.7 trillion of undrawn short-term credit
facilities as of December 31, 2019 which can provide temporary
liquidity relief. Moody's expects TBLA's banks to continue to roll
over these facilities. Any perceived difficulty in TBLA being able
to extend these facilities will indicate a deterioration in its
liquidity profile, and likely lead to a negative ratings action.
Any weakness in earnings will also reduce headroom under financial
maintenance covenants on TBLA's bank loans. In particular, Moody's
estimates TBLA will have minimal headroom under its debt service
coverage ratio of above 120% on some of its bank loans by the end
of 2020.
The rating also considers TBLA's exposure to environmental, social
and governance risks as follows.
Firstly, the rating considers the increasing stakeholder scrutiny
around environmental and social risks associated with the palm oil
sector. To help mitigate these risks, TBLA is pursuing a number of
initiatives including land and water management, and community and
labor relations.
TBLA also has two cooking oil refineries and one kernel-crushing
plant certified by the Roundtable on Sustainable Palm Oil. The RSPO
is an association of palm oil industry stakeholders that promotes
the growth and use of sustainable palm oil products
However, unlike the other palm oil companies that Moody's rates,
TBLA is not seeking RSPO certification for all its palm oil estates
and processing facilities. Around 75% of its palm oil products are
sold domestically, where customer demand for RSPO-certified palm
oil is lower than that in importing countries, although this could
change over time.
Secondly, with respect to governance, while TBLA has a concentrated
ownership structure, this is balanced by its listed status, long
operating track record and Moody's expectation that TBLA will
maintain conservative financial policies in terms of debt-funded
capital spending and shareholder returns.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade of TBLA's ratings is unlikely over the next 12-18
months, given the negative outlook.
The outlook could return to stable if TBLA (1) increases earnings
and strengthens its credit metrics; and (2) improves its liquidity
such that its cash sources are sufficient to meet its planned needs
over the next 12 months, with sufficient headroom remaining under
its financial covenants.
Specific indicators that Moody's would consider for a change in
outlook to stable include adjusted debt/EBITDA staying below 4.0x
and adjusted EBITA/interest expense above 2.75x, on a sustained
basis.
Moody's could downgrade the ratings if (1) TBLA is unable to grow
earnings or deviates from its stated prudent financial policies;
(2) palm oil and sugar prices or sales volumes decline, leading to
protracted weakness in TBLA's financial metrics; or (3) there is a
deterioration in TBLA's liquidity, including any perceived delays
in its proactively refinancing near-term debt maturities, a
reduction in its undrawn credit facilities, or a further reduction
in headroom under its financial covenants.
Specific indicators for a downgrade include adjusted debt/EBITDA
above 4.0x and adjusted EBITA/interest expense below 2.75x on a
sustained basis.
The principal methodology used in these ratings was Protein and
Agriculture published in May 2019.
Headquartered in Jakarta and incorporated in 1973, Tunas Baru
Lampung Tbk (P.T.) is a producer of palm oil and sugar products. As
of December 31, 2019, TBLA was 28%-owned by Sungai Budi (P.T.) and
27%-owned by Budi Delta Swakarya (P.T.). These two major
shareholders are equally owned by Mr. Widarto, who serves as the
executive chairman of TBLA, and Mr. Santoso Winata, who is the
president commissioner of TBLA.
===============
M A L A Y S I A
===============
BLUINC MEDIA: Shuts Operations Amid Digital Challenges, Pandemic
----------------------------------------------------------------
The Star reports that magazine publisher BluInc Media Sdn Bhd has
ceased operations due to challenges arising from the digital
disruption and Covid-19.
The publisher, well known for producing magazines such as CLEO,
HerWorld, Jelita, Marie Claire, among others, ceased operations on
April 30, The Star discloses.
Its chief executive officer Datin Azliza Tajuddin said the business
had already been under tremendous challenge over the years from the
digital disruption, the report relates.
"While we had made increasing investments to build our digital
capabilities, it was still unclear whether we had gained sufficient
traction while the losses continued to increase.
"With the current movement control order (MCO) to contain Covid-19,
the losses continued even more for the months of March and April,
and this trend is expected to continue for the next few months.
"It is uncertain that we will be able to see any light at the end
of the tunnel," said Azliza in a note to the staff at BluInc Media,
The Star relays.
She said the board of directors decided to cease operations of
BluInc's print and digital publications, the report adds.
BluInc has been in the publishing sphere for almost four decades,
with over 20 magazines in three languages.
=====================
N E W Z E A L A N D
=====================
Q CARD TRUST 2019-1: Fitch Affirms Bsf Ratings on 3 Tranches
------------------------------------------------------------
Fitch Ratings has affirmed the ratings on notes issued by The New
Zealand Guardian Trust Company Limited in its capacity as trustee
of Q Card Trust. The transaction, a securitisation of New Zealand
credit card receivables, is an asset-backed note programme
featuring a multiclass structure that will purchase eligible
receivables from related entities of FlexiGroup (New Zealand)
Limited (flexigroup) on a revolving basis.
The social and market disruption caused by the coronavirus and the
related containment measures did not negatively affect the ratings,
because there is sufficient credit enhancement to Fitch's base case
scenario of the impacts and adequate liquidity to support the
current ratings.
The Stable Outlook is based on the notes' ability to withstand the
sensitivity to higher defaults stemming from the pandemic.
Q Card Trust
- A-2017-2 NZFPFD1011R3; LT AAAsf Affirmed
- A-2017-4 NZFPFD1013R9; LT AAAsf Affirmed
- A-2018-1 NZFPFD1022R0; LT AAAsf Affirmed
- A-2018-2 NZFPFD1023R8; LT AAAsf Affirmed
- A-2019-1 NZFPFD1030R3; LT AAAsf Affirmed
- A-2019-2 NZFPFD1033R7; LT AAAsf Affirmed
- A-2019-3 NZFPFD1034R5; LT AAAsf Affirmed
- B-2017-1 NZFPFD1016R2; LT AAsf Affirmed
- B-2018-1 NZFPFD1025R3 LT AAsf Affirmed
- B-2019-1 NZFPFD1031R1; LT AAsf Affirmed
- B-2019-2 NZFPFD1035R2; LT AAsf Affirmed
- C-2017-1 NZFPFD1017R0; LT Asf Affirmed
- C-2018-1 NZFPFD1026R1; LT Asf Affirmed
- C-2019-1 NZFPFD1032R9; LT Asf Affirmed
- C-2019-2 NZFPFD1036R0; LT Asf Affirmed
- D-2017-1 NZFPFD1018R8; LT BBBsf Affirmed
- D-2018-1 NZFPFD1027R9; LT BBBsf Affirmed
- D-2019-1 NZFPFD1037R8; LT BBBsf Affirmed
- E-2017-1 NZFPFD1019R6; LT BBsf Affirmed
- E-2018-1 NZFPFD1028R7; LT BBsf Affirmed
- E-2019-1 NZFPFD1038R6; LT BBsf Affirmed
- F-2017-1 NZFPFD1020R4; LT Bsf Affirmed
- F-2018-1 NZFPFD1029R5; LT Bsf Affirmed
- F-2019-1 NZFPFD1039R4; LT Bsf Affirmed
- VFN; LT AAAsf Affirmed
KEY RATING DRIVERS
Coronavirus-Related Economic Shock: Fitch has made assumptions
about the spread of the coronavirus and the economic impact of the
related containment measures. As a base-case (most likely)
scenario, Fitch assumes a global recession in 1H20 driven by sharp
economic contraction in major economies, with a rapid spike in
unemployment, followed by a recovery that begins in 3Q20 as the
health crisis subsides. As a downside (sensitivity) scenario in the
Rating Sensitivities section, Fitch takes into consideration a more
severe and prolonged period of stress, with recovery to pre-crisis
GDP levels delayed until around the middle of the decade.
Coronavirus-Related Impact: The measures put in place to limit the
spread of the virus are affecting New Zealand's economy, with many
businesses temporarily shut down with little or no income. Fitch
expects this to affect the performance of credit cards,
particularly charge-offs, across all rating levels.
Stable Historical Performance, Collateral Characteristics:
Historical performance has been mostly stable and remained in line
with all steady-state assumptions at end-March 2020. Gross
charge-offs averaged 3.3% over the past 12 months. Monthly payment
rate (MPR), a measure of how quickly consumers are paying off their
credit-card debt, steadily increased to an average of 9.6% over the
12 months, remaining above Fitch's steady-state assumption of 7.5%.
The increase in MPR reflects the portfolio's changing composition
towards a rising portion of open-loop credit cards, such as QCard
Mastercard and Flight Centre Mastercard, and a decreasing portion
of existing closed-loop cards. Yield has also remained steady over
the past year, averaging 19.2%.
Fitch's' baseline expectation is that given the evolving
coronavirus pandemic, asset performance will deteriorate in the
near term. Fitch expects recovery post the pandemic to commence in
3Q20, but the 'return to normal' is likely be protracted. Fitch
forecasts New Zealand's GDP to shrink by 5.9% in 2020, with
unemployment rising to 7.9%. This deterioration of macroeconomic
conditions is partially offset by a low official cash rate of 0.25%
and the application of central bank and government stimulus
measures.
Fitch took into consideration the historical performance of the Q
Card portfolio in reviewing the steady-state assumptions, as well
as the performance of a comparable US-credit card transaction
during the global financial crisis and flexigroup's response to the
crisis. Fitch has increased the steady state for charge-offs by
1.3x as a result.
Fitch increased the charge-off steady state to 5.85%, from 4.50%,
to account for expected longer-term worsening of asset performance.
Charge-off multiples were adjusted to reflect Fitch's
through-the-cycle approach and resulted in an approximate 5%
increase in charge-offs at 'AAAsf', up to a 30% increase in
charge-offs at 'Bsf'. There were no changes made to the MPR or
yield steady states. Fitch also revised the 'AAAsf' purchase-rate
stress to 90% to align it with comparable transactions.
Potential performance deterioration at a portfolio level is
partially mitigated by temporary support measures, such as reduced
or deferred payments or interest offered by flexigroup. Fitch also
reviewed the ability of the transaction to survive a significant
proportion of borrowers taking up payment assistance and determined
that, given the significant excess spread, it can withstand up to
67% of borrowers receiving total payment deferrals. The transaction
can also use principal to pay interest. This is well above the
issuer's estimated figure for take-up of 3.0% and the current
take-up, 2.5%.
The transaction was cash-flow modelled using the revised
steady-state assumptions, with the notes passing all relevant
cash-flow modelling stresses. The Stable Outlook is based on the
notes' ability to withstand the higher charge-off rate applied to
take into account the effects of the coronavirus pandemic. A
summary of the steady states and rating stresses applied in the
cash flow modelling analysis is shown below.
Charge-offs: 5.85%
MPR: 7.5%
Gross yield: 17.00%
Purchase rate: 100%
Rating Stresses:
Ratings: AAAsf / AAsf / Asf / BBBsf / BBsf / Bsf
Charge-offs (increase): 3.80x / 3.30x / 2.60x / 2.10x / 1.70x /
1.30x
MPR (% decrease): 35.00% / 30.00% / 25.00% / 20.00% / 10.00% /
5.00%
Gross yield (% decrease): 35.00% / 30.00% / 25.00% / 20.00% /
15.00% / 10.00%
Purchase rate (% decrease): 90.00% / 85.00% / 75.00% / 65.00% /
55.00% / 45.00%
Originator and Servicer Quality: Fitch reviewed flexigroup's
servicing capabilities and found that the operations were
comparable with those of other credit card providers in APAC.
flexigroup's servicing and collections teams in Auckland, Adelaide,
Manilla and Sydney are currently working remotely, with no
disruption to servicing procedures at present. flexigroup is not
rated and servicer disruption risk is mitigated through back-up
arrangements. The nominated back-up servicer is AMAL New Zealand
Limited, which would step in upon servicer termination.
Counterparty Risk: Fitch's rating on the notes is dependent on the
financial strength of certain counterparties. Fitch believes this
risk is currently mitigated as evident from the ratings of the
applicable counterparties to the transaction. Counterparty risk was
evaluated in the initial transaction analysis through the review of
transaction documentation, legal opinion and structural features.
Interest Rate Risk: Interest rate risk is currently mitigated by a
combination of interest rate swaps and available credit
enhancement.
RATING SENSITIVITIES
Coronavirus Downside Scenario Sensitivity:
Fitch believes its current assumptions are adequate to sustain its
base coronavirus pandemic scenario. Fitch also examined a downside
scenario that envisions a re-emergence of infections in major
economies and no meaningful recovery until around the middle of the
decade. This stress, while only employed to examine rating
sensitivity, would result in downgrades to classes A, B and C, but
would not affect the ratings of classes D, E or F.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
Long-term asset performance improvement, such as decreased
charge-offs, increased MPR or increased portfolio yield, driven by
a sustainable positive change to underlying asset quality. This
would contribute to a positive revision of Fitch's asset
assumptions, which could positively affect the notes' ratings.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
A longer pandemic than Fitch expects that deteriorates
macroeconomic fundamentals and consumers' financial position in New
Zealand beyond Fitch's baseline scenario. Credit enhancement ratios
cannot fully compensate for credit losses and cash flow stresses
associated with the assigned ratings, all else being equal.
Downgrade Sensitivity:
Fitch evaluated the sensitivity of the ratings to decreased yields,
increased charge-offs and decreased MPRs over the life of the
transactions. The model indicates that note ratings are sensitive
to an increase in defaults and a reduction in MPRs, with less
sensitivity to lower yields.:
Rating sensitivity to increased charge-off rate:
Current ratings: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf', 'BBsf', 'Bsf'
Increase steady state by 25%: 'AA+sf'; 'AA-sf'; 'Asf', 'BBBsf';
'BBsf'; 'Bsf'
Increase steady state by 50%: 'AA+sf'; 'A+sf'; BBB+sf', 'BBB-sf';
'BB-sf', 'Bsf'
Increase steady state by 75%: 'AAsf'; 'Asf'; 'BBBsf', 'BB+sf';
'B+sf', 'Bsf'
Rating sensitivity to reduced MPR:
Current ratings: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf'; 'BBsf','Bsf'
Decrease steady state by 15%: 'AA+sf'; 'AA-sf'; 'Asf', 'BBBsf';
'BBsf', 'Bsf'
Decrease steady state by 25%: 'AA-sf'; 'Asf'; 'A-sf', 'BBBsf';
'BBsf', 'Bsf'
Decrease steady state by 35%: 'A+sf'; 'BBBsf'; 'BBBsf', 'BBB-sf';
'BBsf', 'Bsf'
Rating sensitivity to reduced yield:
Current rating: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf', 'BBsf', 'Bsf'
Decrease steady state by 15%: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf',
'BBsf', 'Bsf'
Decrease steady state by 25%: 'AAAsf'; 'AA-sf'; 'Asf', 'BBBsf',
'BBsf', 'Bsf'
Decrease steady state by 35%: 'AAAsf'; 'AA-sf'; 'A-sf', 'BBBsf',
'BB-sf', 'Bsf'
Rating sensitivity to combined increase in charge-off rate and
reduced MPR:
Current rating: 'AAAsf'; 'AAsf'; 'Asf', 'BBBsf', 'BBsf', 'Bsf'
Increase steady state by 25% and decrease by 15%: 'AAsf'; 'Asf';
'BBB+sf'; 'BBB-sf'; 'BBsf', 'Bsf'
Increase steady state by 50% and decrease by 25%: 'A+sf'; 'BBB+sf';
'BBB-sf'; 'BBsf'; 'B+sf', 'Bsf'
Increase steady state by 75% and decrease by 35%: 'BBB+sf';
'BBB-sf'; 'BBsf'; 'B+sf'; 'Bsf'
Upgrade Sensitivity:
Rating sensitivity to decreased charge-offs:
Current rating: 'AAAsf', 'AAsf', 'Asf', 'BBBsf', 'BBsf', 'Bsf'
Decrease steady state by 25%: AAAsf; AA+sf; AA-sf; Asf; BBB+sf,
'BBB-sf'
Some of the outstanding subordinate tranches of Q Card Trust may be
able to support higher ratings based on the output of Fitch's
proprietary cash flow model. Enhancement levels are set to maintain
a constant rating level per class of issued notes and may provide
more than the minimum enhancement necessary to retain issuance
flexibility, since the credit card programme is set up as a
continuous funding programme and requires that any new issuance or
note reductions do not affect the rating of existing tranches.
Therefore, Fitch may decide not to assign or maintain ratings above
the current outstanding ratings in anticipation of future issuance
or reductions.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from AAAsf to Dsf. Best- and worst-case scenario credit ratings are
based on historical performance.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. There were no findings that were material to
this analysis. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information as part
of its ongoing monitoring.
Prior to the transaction closing, Fitch did not review the results
of a third-party assessment conducted on the asset portfolio
information.
As part of its ongoing monitoring, Fitch conducted a review of a
small targeted sample of flexigroup's origination files and found
the information contained in the reviewed files to be adequately
consistent with the originator's policies and practices and the
other information provided to the agency about the asset
portfolio.
Overall, Fitch's assessment of the asset pool information relied
upon for the agency's rating analysis according to its applicable
rating methodologies indicates that it is adequately reliable.
SOURCES OF INFORMATION
The data used to develop the rating included the following
information from the following sources:
- Issuer and servicer report as of the interest payment date in
April 2020 and provided by flexigroup.
- Discussions and updates from the servicer in April 2020.
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING
The principal sources of information used in the analysis are
described in the applicable criteria. In addition, the following
sources of information, which are not discussed in the criteria,
were used and are described under the Sources of Information
section.
The issuer has informed Fitch that not all relevant underlying
information used in the analysis of the rated notes is public.
ESG CONSIDERATIONS
The highest level of ESG credit relevance, if present, is a score
of 3. This means ESG issues are credit-neutral or have only a
minimal credit impact on the entity(ies), either due to their
nature or to the way in which they are being managed by the
entity(ies).
=================
S I N G A P O R E
=================
HIN LEONG: High Court Grants Interim Judicial Management
--------------------------------------------------------
Anita Gabriel at The Business Times reports that hammered by a US$4
billion debt pile and an ongoing probe by Singapore's white-collar
crime buster, the city-state's largest oil trader Hin Leong Trading
(HLT) was granted interim judicial management on April 27 by the
High Court.
According to BT, Goh Thien Phong and Chan Kheng Tek of
PricewaterhouseCoopers Advisory Services (PwC) have been appointed
as interim judicial managers.
They have eight weeks to file a preliminary report which will
include an assessment on whether the commodity trader can be
restructured or rehabilitated, BT says.
The virtual hearing at the Singapore High Court was earlier
scheduled for April 30 after the trading firm filed an application
for judicial management (JM) in mid-April, but the session was
brought forward to April 27 instead following requests from some
lenders, BT understands.
BT relates that HLT had earlier sought a debt moratorium from the
court but has since withdrawn the application after its bank
lenders pushed for it to go down the JM route.
Sources said the lenders were more comfortable with the interim
judicial managers taking charge of the company's affairs after it
came to light that HLT had hid from its financial statements some
US$800 million in losses incurred from futures trading, the report
adds.
The troubles at HLT, which is part of a massive empire comprising
one of the world's largest owners of oil tankers and Singapore's
third-largest bunkering firm, have roiled the oil and gas sector
amid a crippling pandemic-led oil crisis.
"It's shock and horror, really. Everything happened so fast and
nobody has had much time to process it," said a representative for
one of over 23 creditors exposed to the group.
The fallout has been widespread, with claims coming in fast and
furious.
On April 27, a wholly-owned power generation unit of Sembcorp
Industries launched legal proceedings to assert ownership over
gasoil reserves that are Universal Terminal - a commercial storage
facility on Jurong Island that is part-owned by the Hin Leong
Group. It cited the possibility that the gasoil reserves designated
for Sembcorp Cogen may be subject to competing claims by one or
more third parties for the move.
About Hin Leong
Hin Leong Trading (Pte.) Ltd. provides petroleum products and
transportation services. The Company offers oil, lubricants,
grease, and diesel products, as well grants storage, terminalling,
trucking, and marine logistics services. Hin Leong Trading serves
customers globally.
Hin Leong Trading and shipping unit Ocean Tankers (Pte.) Ltd. filed
for court protection from creditors on April 17, 2020, as the
former struggles to repay debts of almost US$4 billion.
Hin Leong posted a positive equity of US$4.56 billion and net
profit of US$78 million in the period ended October 31, according
to the people, who asked not to be identified as the matter is
sensitive, according to Bloomberg News.
But Hin Leong told its creditors this month that total liabilities
reached US$4.05 billion as of early April, while assets were just
US$714 million, leaving a hole of at least US$3.34 billion,
according to screenshots of the presentation to a group of bankers
seen by Bloomberg News.
The balance sheet of the company showed no equity at all as of
April 9, 2020, and warned that "figures obtained from the company
are subject to verification," Bloomberg News added.
As reported in Troubled Company Reporter-Asia Pacific on April 24,
2020, The Financial Times said that Hin Leong is seeking to appoint
PwC as an independent manager to run the business as it pursues a
debt restructuring of almost $4 billion. The company will
withdraw the bankruptcy protection filing it submitted on April 17
and instead ask Singapore's High Court to appoint PwC as a third
party to run the company, a process known as judicial management.
SEN YUE: Engages External Auditor to Review Financial Results
-------------------------------------------------------------
Rachel Chia at The Business Times reports that the board of
Catalist-listed Sen Yue Holdings has roped in its external auditors
Deloitte & Touche to assist in reviewing specific areas of its
financial results for the half year ended March 31, in light of the
"challenging economic environment" amid the novel coronavirus
pandemic.
BT relates that the audit committee will discuss with the external
auditors to finalise the scope of the review, which is expected to
cover the areas of accounts receivables, inventory and bank
facilities including loan covenants, the waste management firm
announced on May 4.
In particular, Sen Yue's management had proposed a percentage of
provisions to be made for overdue accounts receivables, considering
factors such as the historical credit loss rate and the impact of
the Covid-19 outbreak on the collectability of the accounts
receivables, according to BT.
This proposed provision will be subject to the external auditor's
review, Sen Yue said in a separate filing on May 4 in response to
the Singapore Exchange's (SGX) queries. The review will determine
the amount of provisions and/or impairment to be made.
BT says the company had disclosed on April 27 that it expected the
amount of provisions to be made for doubtful debts to be material,
based on the management's preliminary assessment.
According to BT, Sen Yue first announced the interim review on
April 29, when it said that its wholly-owned subsidiary, SMC
Industrial, had received a letter of demand by a bank for the
repayment of outstanding past due payments. The letter of demand
was later withdrawn upon full repayment on April 28.
The review is meant to look into SMC's and the Sen Yue group's
financial positions and to address SGX's previous queries, the
report states.
Pending the completion of the review, the majority of Sen Yue's
board decided to convert its trading halt into a suspension of
trading on May 4, although executive chairman Koh Mia Seng
disagreed with this decision as he felt that the review may be
conducted without a voluntary suspension, BT notes.
The halt, called on April 28, was meant to provide time for SMC to
make full repayment to the bank and for the board to review the
subsidiary's financial position.
BT meanwhile reports that chairman Mr Koh, who is also Sen Yue's
controlling shareholder with a 37.5 per cent stake, is looking to
remove five directors including the chief executive officer Neo Gim
Kiong.
BT relates that Mr. Koh on April 20 sent a requisition notice
requesting the company convene an extraordinary general meeting
(EGM) for shareholders to consider the removal of the five
individuals from the board and the appointment of two independent
directors.
One reason for the proposed board restructuring is that the
company's net profit after tax "has not been up to expectations in
the last three years", and these low earnings have contributed
partially to the "poor performance" of Sen Yue's share price, Mr
Koh said in the notice. He believes that bringing in new board
members to set and develop strategies to grow and expand the
company, will help maximise shareholder value, adds BT.
About Sen Yue
Sen Yue Holdings Limited is an investment holding company. The
Company is principally engaged in three business verticals: e-waste
management solutions, commodities trading, and surface coating and
related services. The Company provides holistic e-waste management
solutions to local and overseas customers. It offers e-waste
management solutions in Singapore to recycle lithium-ion batteries.
The Company’s commodities trading and processing business
activities is an extension of its e-waste management business by
creating new value in metal scraps. Its surface coating and related
services offer protection from corrosion and extend the service
life of its customers' products and components, while staying
environmentally friendly.
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